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Home My WebLink AboutPH-2 - 26-309 - 8. FY 2026-27 Housing Authority Budget - 6/2/2026Housing AuthorityHOUSING AUTHORITY Attachment 8 On January 17, 2012, the City Council established the Costa Mesa Housing Authority in accordance with California Housing Authorities Law, Health, and Safety Code Section 34200, et seq. Also on that date by resolution, the City Council selected the Housing Authority to serve as the housing successor and to assume the housing assets, duties, functions and obligations of the former Costa Mesa Redevelopment Agency (Former Agency) as of February 1, 2012. These actions occurred due to the mandatory dissolution of all California redevelopment agencies under the requirements of Division 24, Parts 1.8 and 1.85 of the California Health and Safety Code (Dissolution Law). The Dissolution Law sets forth the processes and obligations of all successor agencies. These entities are separate from the city (or county) that formed the former agency and charged with winding down the affairs of former redevelopment agencies. Further, the Dissolution Law sets forth the functions, obligations and requirements of housing successors. Section 34176.1 of the California Health and Safety Code establishes certain limitations on expenditures by housing successors. Thus, each fiscal year the Housing Authority’s funding is limited in two categories: (1) administrative costs, and (2) homelessness prevention and rapid rehousing. The Behavioral Health Bridge Housing (BHBH) Program was created by Assembly Bill 179 (AB179), which allocated $1.5 billion to the Department of Health Care Services (DHCS) for allocation to counties to support planning, implementation, and infrastructure costs for the CARE Act. The City was awarded BHBH funds in FY 2024-25 by the County to assist homeless individuals who are experiencing serious behavioral health conditions by providing temporary housing and support services. Covenant Monitoring and Administration - 11500 Rental Rehabilitation — 20425 Offers deferred loans to owner of multi-family properties to make improvements and repair code violations. Loans were originated in the 1990s and deferred unless the owner sells transfers or defaults on the property. Housing Authority Administration — 20600 Provides administration support such as conducting required board meetings, maintaining financial records and preparing annual reports, etc. Costa Mesa Family Village — 20620 Costa Mesa Family Village is a three-parcel, 72-unit multi-family rental project, to which the Housing Authority holds the ground lease. The 55-year ground lease expires in year 2038. Annual lease payment is the greater of 8 percent of gross receipts or $108,000. First Time Homebuyer Program — 20625 Offers deferred loans to first time homebuyers for home purchase in the City. Loans were extended prior to year 2009 under various terms. Habitat For Humanity — 20630 The Housing Authority holds interest to the land used for the development of five single-family homes by Habitat for Humanity in 2004. The Housing Authority maintains enforceable covenants on the properties. No loan repayment is required unless the owner defaults. Single Family Rehabilitation Program — 20640 Offers deferred loans to homeowners to make home improvements and fix code violations. The loans were extended in year 2009 and deferred until the property is sold or refinanced. St. John Manor — 20650 St. Johns Manor is a 36-unit senior rental project. The Housing Authority’s loan to this project was paid off in Fiscal Year 2018-19. Proposed Budget for Fiscal Year 2026-2027 320 City of Costa Mesa, California Costa Mesa Village — 20655 Costa Mesa Village is a 96-unit single room occupancy (SRO) project jointly funded by the Costa Mesa Housing Authority, Orange County Housing Authority and the developer. The Housing Authority’s loan to this project was paid off in Fiscal Year 2014-15. Housing Development And Preservation Of Affordable Housing - 11500 James/West 18th Street Property — 20635 The James/West 18th Property is four affordable housing projects with 30 rental units, owned and operated by the Housing Authority. The Authority acquired the projects through a foreclosure process in Fiscal Year 2015-16. Homeless Outreach And Bridge Shelter Operation - 14300 Homeless Outreach — 20605 Homeless Outreach’s primary activities are community outreach and working with various organizations and governmental agencies to identify housing solutions for Costa Mesas homeless population. The General Fund will provide funding for program expenses in excess of the Low and Moderate Income Housing Asset Funds (LMIHAFs) $250,000 allowance for this category. Bridge Shelter Operation — 20606 Another new component to the Housing Authority is the operation of the City’s permanent bridge shelter program, which is located at 3175 Airway Avenue. This program provides transitional housing and support services for up to 100 homeless adults. Behavioral Health Bridge Housing Program- 20670 The primary focus of the BHBH Program is to assist individuals experiencing homelessness who have serious behavioral health conditions that prevent them from accessing resources and securing permanent housing. Beginning in Fiscal Year 2023-24 a Memorandum of Understanding between the Orange County Health Care Agency (OCHCA) and the City of Costa Mesa was entered to establish BHBH services. 321City of Costa Mesa, California Housing AutHority Budget Narrative The Fiscal Year 2026-27 budget for the Housing Authority is approximately $4.5 million, a decrease of $299,260, or 6 percent, compared to the adopted budget for Fiscal Year 2025-26. The decrease of $299,260 is primarily due to lower costs for shelter services. FY 23-24 Actuals FY 24-25 Adopted Budget FY 25-26 Adopted Budget FY 26-27 Proposed Budget REVENUES BY FUNDING SOURCE Behavioral Health Services $ 972,051 $ 972,051 Costa Mesa Family Village Ground Lease $ 231,776 $ 200,000 200,000 200,000 James/W. 18th Street Property 248,386 250,000 250,000 300,000 Investment Income 90,317 23,400 - - Loan Repayments 115,500 200,000 390,000 390,000 RDA Loan Repayment from DOF (Annual ROPS) - 381,141 - - State SB 2 Grant - 324,000 - - General Fund Contribution 1,264,993 1,264,993 1,264,993 1,264,993 Other Governmental Agencies 1,266,243 1,000,000 1,359,219 446,205 Donations 1,532 - - - Use of Fund Balance - 1,549,646 834,559 2,108,103 Transfers in from (State Grants) 2,662,644 454,308 750,000 - Total Housing Authority Revenues $ 5,881,391 $ 5,647,488 $ 6,020,822 $ 5,681,352 FY 23-24 Actuals FY 24-25 Adopted Budget FY 25-26 Adopted Budget FY 26-27 Proposed Budget EXPENSE CATEGORY BY PROGRAM COVENANT MONITORING AND ADMINISTRATION - 11500 Housing Authority Administration - 20600 Salaries and Benefits $ 62,021 $ 114,319 $ 111,697 $ 70,696 Maintenance and Operations 9,381 31,303 60,000 60,000 Subtotal Housing Authority Administration $ 71,403 $ 145,622 $ 171,697 $ 130,696 Costa Mesa Family Village - 20620 Maintenance and Operations $ - $ - $ 5,000 $ - Subtotal Costa Mesa Family Village $ - $ - $ 5,000 $ - First Time Homebuyer Program - 20625 Maintenance and Operations $ - $ - $ 11,000 $ - Subtotal First Time Homebuyer Program $ - $ - $ 11,000 $ - Habitat for Humanity - 20630 Maintenance and Operations $ - $ - $ 7,000 $ 7,000 Fixed Assets 50,854 56,505 - - Subtotal Habitat for Humanity $ 50,854 $ 56,505 $ 7,000 $ 7,000 Single Family Rehabilitation Program - 20640 Maintenance and Operations $ - $ - $ 20,000 $ - Subtotal Single Family Rehabilitation Prog.$ - $ - $ 20,000 $ - Proposed Budget for Fiscal Year 2026-2027 322 City of Costa Mesa, California FY 23-24 Actuals FY 24-25 Adopted Budget FY 25-26 Adopted Budget FY 26-27 Proposed Budget COVENANT MONITORING AND ADMINISTRATION - 11500 (Continued) St. John Manor - 20650 Maintenance and Operations $ - $ - $ 5,000 $ - Subtotal St. John Manor $ - $ - $ 5,000 $ - Costa Mesa Village - 20655 Maintenance and Operations $ - $ - $ 3,100 $ - Subtotal Costa Mesa Village $ - $ - $ 3,100 $ - Subtotal Covenant Monitoring and Admin.$ 122,257 $ 202,127 $ 222,797 $ 137,696 HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING - 11500 James/West 18th Street Property - 20635 Salaries and Benefits $ 40,107 $ 50,035 $ 65,226 $ 60,070 Maintenance and Operations 262,122 189,594 202,500 $ 202,500 Fixed Assets - - 27,600 27,600 Subtotal James/West 18th Street Property $ 302,229 $ 239,629 $ 295,326 $ 290,170 HOMELESS OUTREACH AND BRIDGE SHELTER OPERATION - 11310|11500|14300|11100 CDBG-CV - 20435 Salaries and Benefits $ 1,136 $ 2,109 $ - $ - Maintenance and Operations $ 170,027 $ 21,860 $ - $ - Subtotal Homeless Outreach $ 171,163 $ 23,968 $ - $ - Tenant Based Rental Assistance - 20448 Salaries and Benefits $ - $ 255,389 $ 208,314 $ 221,075 Maintenance and Operations $ - $ 375,765 $ - $ - Subtotal Homeless Outreach $ - $ 631,153 $ 208,314 $ 221,075 Homeless Outreach - 20605 * Salaries and Benefits $ 1,145,954 $ 1,355,216 $ 1,535,537 $ 1,664,517 Maintenance and Operations 63,659 281,803 108,243 108,243 Subtotal Homeless Outreach $ 1,209,613 $ 1,637,019 $ 1,643,780 $ 1,772,760 Bridge Shelter Operation - 20606 10,570,601 Maintenance and Operations $ 3,246,644 $ 2,333,618 $ 2,678,553 $ 2,278,553 Fixed Assets 33,233 - - - Subtotal Bridget Shelter Operation $ 3,279,877 $ 2,333,618 $ 2,678,553 $ 2,278,553 Behavioral Health Services - 20670 2,873,479 Salaries and Benefits $ - $ 166,888 $ 284,050 $ 293,097 Maintenance and Operations $ - $ 471,904 $ 688,001 $ 688,001 Fixed Assets - 281,539 - - Subtotal Behavioral Health Services $ - $ 920,330 $ 972,051 $ 981,098 323City of Costa Mesa, California Housing AutHority FY 23-24 Actuals FY 24-25 Adopted Budget FY 25-26 Adopted Budget FY 26-27 Proposed Budget TOTAL HOUSING AUTHORITY Salaries and Benefits $ 1,249,219 $ 1,943,955 $ 2,204,824 $ 2,309,455 Maintenance and Operations 3,751,833 3,705,847 3,788,397 3,344,297 Fixed Assets 84,087 338,043 27,600 27,600 Total Housing Authority $ 5,085,139 $ 5,987,845 $ 6,020,821 $ 5,681,352 Proposed Budget for Fiscal Year 2026-2027 324 City of Costa Mesa, California