The Anaheim City Council agreed to issue roughly $712,000 in supplemental bonds and accept a $500,000 grant to finish converting the Tampico Motel into 32 units of permanent supportive housing for people experiencing homelessness.
The move followed a construction crew’s discovery of an improperly abandoned swimming pool beneath the building — located at at 151 S. Cenpla Way and formerly addressed at 120 S. State College Blvd. — that added roughly $1 million in unanticipated costs.
Officials reported the discovery forced demolition of much of the structure, soil remediation and reconstruction of the foundation and framing. That exhausted the project’s contingency fund and left a gap of about $500,000.
“This unexpected work added approximately $1,000,000 to the project’s existing cost,” said Grace Stepter, the city’s director of housing and community development, who presented the staff report.
“The surrounding soil was heavily saturated and there was extensive mold,” Stepter said. “Addressing these conditions required demolition of much of the building, soil remediation and reconstruction of the foundation and structural framing.”
The financing was approved during a joint public hearing of the City Council and the Anaheim Housing Authority and included a $500,000 grant from CalOptima Health, which is the Orange County Health Authority, and the supplemental bond adjustment needed to preserve the project’s tax-credit financing.
Neither the city nor the housing authority is obligated to repay the bonds, which are the project’s responsibility, Stepter said.
“Wells Fargo is funding enhanced supportive services that will allow (the city) to provide greater services for 15 years above and beyond the project’s anticipated standard services,” Stepter added.
Councilwoman Natalie Meeks questioned why the no one knew about the pool, and city staff members explained the pool sat completely beneath the existing building, which had been expanded multiple times since the 1960s, so it was never on the list of items to inspect.
The motel conversion will provide permanent supportive housing for young adults exiting the system, with 31 supportive units and one manager’s unit.
The site was acquired in May 2022 using $5 million secured by state Sen. Tom Umberg, D-Santa Ana.
Officials anticipated completion of the supportive housing units in February.
The AI platform Civilio assisted this report.
