ANAHEIM : Developer-Charity Housing Plan Is OKd

The City Council on Tuesday approved construction of a 124-unit apartment complex that will be partially owned by charitable groups as a source of nonprofit income.

The council voted unanimously in favor of Brookhollow Apartments, a long-debated development project to be constructed by the William Lyon Co. near the corner of Crescent Avenue and Brookhollow Street.

“We’re very happy,” said Shirley O’Connor, project manager for the William Lyon Co. “We want to start building.”

The company will give 20% ownership of the development to three charities. The groups using the rental income for their work will be the Anaheim Interfaith Shelter, with 10% ownership, and California Lutheran Homes and the Orangewood Children’s Foundation, with 5% ownership each.

The project also sets aside about 25 units as affordable housing for low-income families.

The city has courted the housing project since 1989, hoping that the partnership with the nonprofit group would encourage other private developers to consider that option.

The project had raised fears among school officials, who have been increasingly frustrated by the growing student enrollment from new housing projects in the city. They had argued that even small residential developments pose a problem to the already overcrowded Anaheim City School District.

But school officials on Tuesday gave preliminary approval to an offer from the developer to help offset additional enrollment generated by Brookhollow. Details of the plan were not released, but the main compoment will likely include consulting services from the developer to help the district devise better ways of using school space, according to Lisa Stipkovich, the city’s executive director of community development.

“Maybe (the developer will offer) some creative uses for current school sites,” Stipkovich said. She added that the city Redevelopment Agency may offer the school district some financial assistance to help with overcrowding, but no decision has been made.

The agreement with the William Lyon Co. will go before the board of the Anaheim City School District at its next meeting June 11.