Anaheim Creates Housing Trust Fund

The City Council in Anaheim has voted to establish a housing trust fund to finance affordable housing developments, backed by a $30M donation from Walt Disney Co.

The trust fund, which also will be bankrolled by grants from state and federal agencies, will help finance affordable housing projects, fund down payment assistance programs for would-be home buyers and may provide eviction prevention help to tenants, the Orange County Register reported.

Disney’s $30M donation is part of a long-term deal approving the theme park giant’s DisneylandForward plan, a $1.9B expansion and upgrade of its resort in Anaheim. Disney will provide half of the donation this year and the balance in five years.

What will be known as the Anaheim Local Housing Trust Fund, may also be funded by impact fees on real estate developments and tourism assessments on hotel rooms. The latter would come from the Anaheim Tourism Improvement District, which is funded by a 2% assessment on hotel room stays.

In April, the City Council unanimously approved Disney’s plan for DisneylandForward.

In January, the entertainment giant unveiled a 10-year plan to develop an immersive theme park on the west side of Disneyland. It includes a commitment to spend more than $100 million on infrastructure in Anaheim as well as the $30M donation to help build affordable housing.

In exchange for Disney’s commitment to fund road and park improvements and fund new affordable housing, the city is granting Disney the flexibility to choose where it builds new theme park areas, hotels and restaurants within its existing footprint in Anaheim, an area that spans 500 acres.

Disney’s development agreement with the city spans 40 years, lasting until 2064.

The deal includes $8 million for city parks. Disney will buy some streets from Anaheim, including Magic Way, Hotel Way and part of Clementine for $40M to make way for the expansion, part of a $90M investment to fund street improvements. Another $10M from Disney will fund the expansion of a sewer main line along Katella Avenue.

According to city officials, Disney’s $30M commitment is the largest corporate contribution to affordable housing in Anaheim to date, the report said.

City officials indicated earlier this year that Disney’s donation may be augmented with city funds and used to help Anaheim compete for housing grants. Last year, Finamore Place, a $61 million, 102-unit affordable housing complex in the resort district, included a contribution from Disney.

In a March report to the city, Los Angeles-based consultants HR&A Advisors recommended as a strategy to create more affordable homes in the city to form a housing trust fund as well as requiring affordable housing to be part of new developments.