The Anaheim City Council approved the plan for how to use $15 million from Disney towards affordable housing, with some changes to how money will be allocated.
Anaheim Affordable Housing
According to The Orange County Register, the city council wants to prioritize helping first-time homebuyers through a loan assistance program over building more affordable housing units, although money will still go to the latter.
Disney gave Anaheim this first $15 million as part of the DisneylandForward plan, which was approved last spring. Though primarily an expansion plan for Disneyland Resort, it also included Disney committing $30 million toward affordable housing. They are providing the first $15 million this year and the second $15 million in five years.
The city is also receiving $1 million from a federal grant, for a total of $16 million to allocate to different affordable housing projects. As outlined prior to the May 29 council meeting, the money will go to three projects: building more affordable housing units, providing loan assistance to homebuyers, and providing funding for low-income families at risk of eviction.
The original proposal asked for $9.5 million to go toward the “Build More Homes Initiative,” but council members pointed out Anaheim has spent years building affordable rental units and said they should put more focus on making new homeowners. Instead, $5 million will go to building more units.
Another $5 million will go to the down payment assistance program, which will help homebuyers by providing a “silent second mortgage” of $50,000. This loan will not need to be paid off until the homeowners sell, refinance, or pay off their home.
The council decided to set aside $4.5 million of the $16 million as reserves in case they would rather use it for the loan program instead of building more homes.
Councilmembers said helping homebuyers will keep people invested in the community and make a more long-term difference in people’s lives. They will allocate more money to the loan assistance program if there is a high enough demand for it.
Some councilmembers are concerned the $50,000 loan will not be enough in the current housing market. Councilmember Ryan Balius said, “I think it has to be more.”
Councilmember Natalie Rubalcava cited data that indicates buying a home in Orange County, California requires a household income of $373,000 a year. In the late 1990s, Rubalcava benefited from a down payment assistance program in Anaheim, receiving $30,000 for her first home, which cost $250,000.
The $50,000 number was determined through discussions with local realtors, said Grace Ruiz-Stepter, director of Anaheim’s housing and community development department.
Councilmember Natalie Meeks asked for a report to see if $50,000 is enough and how popular the program is once it has launched.
“Although you’ve heard from the realtors, ‘it makes an impact,'” said Meeks, there is a difference between making a difference and being “life-changing, as pulling them out of poverty. I think those are two different answers, potentially.”
Another $1 million is allocated for helping low-income families at risk of eviction.
Disney also promised $10 million for sewer improvements on Katella Avenue and $8 million for Anaheim city parks. They committed to spending between $1.9 billion and $2.5 billion on Disneyland Resort over a decade. Projects in the works include an expansion to Avengers Campus with the new attractions Avengers: Infinity Defense and Stark Flight Lab, plus a new “Avatar” land.
Disney is also funding an affordable housing project in Florida, near Walt Disney World. This project was approved by Orange County Commissioners last fall.
For more Disneyland Resort news and info, follow Disneyland News Today on Twitter, Facebook, and Instagram. For Disney Parks news worldwide, visit WDWNT.