Galloway Caught With Her Hand in the Affordable Housing Cookie Jar

Lorri Galloway robs from the Poor to Give to the Rich…and the Rich Remember her Campaign

Today’s photo is the Elm Street Commons project. It is a 100% affordable housing project, located on Elm Street just west of Anaheim Blvd. To make way for these enormous apartments, a single family, historic home was removed, and another lot was absorbed. At first, we just felt sorry for the poor saps who were left behind on the street, to be forever dwarfed by a gargantuan stucco box. But wait, there’s more!

It seems the funding on this project got a little creative. On November 28, 2006, SADI, the developer for Elm Street Commons, came to City Council to have their standard DDA approved through the Housing Authority. Standard practice in Anaheim is to give the developer money, to be paid back over time, 85% to the City, and the developer keep 15% as profit. The 85% is then recycled into more housing projects, which keeps Anaheim building apartments for the working poor. Whether you agree with building subsidized housing or not, it is an efficient system. In the development of the Elm Street Commons, the City offered many millions of dollars in direct funding, plus incentives added later such as a sewer project the developer decided the City should do. Rather than approve the otherwise ordinary deal, now-convicted-felon Richard Chavez pulled the development from the Consent Calendar, allowing discussion. In the end, the City Council, led by Chavez and backed by Lorri Galloway, changed the condition of the agreement, bumping the developer’s profit from the standard 15% to a whopping and unprecedented 50% profit for a private corporation!!

Mayor Curt Pringle admonished Council not to approve this deal, saying, “By taking money out of that pot and not returning it to that pot it limits the amount of affordable housing we will do in the future.” The change meant that the developer would not be paying back 35% of the cost of the project to a revolving fund, and therefore that 35% would not be available for housing the working poor in the future. Why would Chavez propose such a move? Seems the same folks had filtered money through a shady PAC (Hometown Voter) just before the vote, funding an Independent Expenditure on behalf of Richard Chavez’ failed re-election. Why would Lorri Galloway take money from the very people she claims to champion? Perhaps the answer is in her Council statement, as she looked at the developer and admonished him, “I hope you acknowledge how much Council has been supportive of you.”

Well the developers at Elm Street Commons sure did remember to acknowledge that 35% jump in their profits, funded by robbing Anaheim’s working poor. Again funneling money through PAC filings with Treasurer Kinde Durkee, who is frequently under investigation by the FPPC, a donation of $15,000 was made by Elm Street, which funded the Clear Channel billboards Lorri has all over the City. They also underwrote a large mailing, and the graphic arts for the mail piece

But wait, it gets stickier. Jump over to the filings for Orange County Leaders for Change, and you see Elm Street money mixed with a donation from SunCal, administered by the same Treasurer, Kinde Durkee, and spent on the campaigns of both Lorri Galloway and Diane Singer. If you recall, both Diane and Lorri backed SunCal’s attempt to strip the Resort District of an income-producing parcel in exchange for affordable housing subsidies. Developers, developers everywhere, and they all seem linked to what they can take from Anaheim, through the "leadership" of Lorri Galloway.

Watch the City Council meeting yourself here at http://anaheim.granicus.com/MediaPlayer.php?view_id=2&clip_id=72

This item begins about 38 minutes into the meeting. We are trying to pull the section of video to make it easier to view, and will post it here if we can get that to work.

Lorri Galloway used her position on the Anaheim City Council to take money from affordable housing funds and increase the profits of a developer who is now financing her campaign expenses. She does not deserve another four years on the City Council. This race is getting down to the finish line, and the polls show it will be a tight race. No matter whom you might support for City Council, we ask everyone who reads this and is as disgusted as we were, please forward this page to every Anaheim voter you know. Felon (and Galloway employee) Richard Chavez was defeated by roughly 200 votes. Lorri Galloway can be defeated, if we all work together. Please help.

Join your neighbors by voting No On Galloway on November 4, and share this information with every Anaheim voter you know.