A notorious Anaheim motel is set to be converted into housing for at-risk young adults
The first transitional age permanent supportive housing project in Orange County inched closer to having a move-in date in Anaheim.
On Tuesday, the Anaheim City Council approved a cooperation agreement with Jamboree Housing Corp. to convert the site of the former Tampico Motel into housing for youth between ages 18 and 24 who are transitioning out of the foster care system or are otherwise at risk of being homeless.
“It is our goal that this is a stepping stone for them,†said Grace Stepter, executive director of the Anaheim Housing Authority. “They [will] not age out of the program.â€
The city is also closing a $6.9-million funding gap for the project.
Anaheim City Council approved the $5.3-million purchase of the property under its motel conversion program.
Two years ago, Anaheim had originally envisioned the site as housing for seniors who were either recently homeless or at risk of becoming unhoused.
State Sen. Tom Umberg had earmarked $5.5 million in state funds to go towards a motel-conversion purchase in the city. CalOptima also provided $2 million for the future project.
When Anaheim acquired the half-acre property for $5.3 million in April 2023, Jamboree Housing Corp. followed with a proposal seeking to offer 32 studio rental units to a much younger demographic that has never had a permanent supportive housing project address its needs in the county.
City officials selected Jamboree in a competitive bid over one other potential developer.
The total development cost of the 32-room Tampico Motel conversion at State College Boulevard and Lincoln Avenue is estimated to run about $26 million. The existing building will not be torn down.
While most of the project’s funding will come from federal tax credits and bond financing, Jamboree asked the Anaheim Housing Authority for a $6.9-million loan to close a financial gap. The developer also requested that the city issue $20 million in bonds.
The youth housing project, which would be 100% affordable at extremely low-income levels, found broad support among council members, who only had clarifying questions about it.
“At one time, this motel had the highest calls for service in the city,†said Councilman Stephen Faessel, who represents District 5 where the conversion will take place. “I’m very happy that the Tampico [Motel] is going to be completely rebuilt.â€
Faessel took the motel conversion’s complex web of funding as a prime example why council members would consider introducing an Anaheim Local Housing Trust Fund law later on in the meeting, which they did.
Responding to questions from Councilwoman Natalie Meeks, Stepter assured that the future housing site would have a parking management plan, as currently only 12 parking spaces are allotted for incoming tenants.
She also stated that the bus stop at the intersection made the location “prime†for the target demographic who don’t always own cars.
Councilwoman Natalie Rubalcava cited concerns about guarding the new housing development against crime at the intersection, particularly around the bus stop.
“What’s the plan to make sure that our youth are protected if we’re not providing enough parking spaces and they will be expected to take public transportation?†she asked. “How are we addressing that? Right now we’re not doing a good job.â€
As part of Project Homekey, three former motels along or near Beach Boulevard in Stanton are now permanent supportive housing sites.
Stepter noted that a gated entrance would lead into the housing site with buffers added along the back of the building. Conversations are also ongoing about what to do with a walkway that cuts through to a neighborhood of single-family homes.
“The one thing our department does pride itself is [that] once we build, we don’t walk away,†she said. “If there are issues, we will remain there and we will address them collaboratively with Jamboree.â€
Once opened, on-site social services will be required and offered at the future housing site.
The project-based voucher system that will move tenants in will only put an income ceiling when people are applying for housing. If future tenants get on solid financial footing through stable housing and services, their share of the rent would increase, accordingly, up to 30% of their total income.
Once a tenant exceeds that mark, they effectively “graduate†out of the program.
After half an hour of discussion, the funding plan for the Tampico Motel conversion found favor with all council members, who voted unanimously to advance it.
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