HomeMy WebLinkAbout17 - PH-6 - FY2021-2022 Proposed Housing Authority B - 6/1/20211
CITY COUNCIL/HOUSING
AUTHORITY AGENDA REPORT
MEETING DATE: JUNE 1, 2021 ITEM NUMBER: PH-6
SUBJECT: FISCAL YEAR 2021-22 PROPOSED HOUSING AUTHORITY BUDGET
DATE: JUNE 1, 2021
FROM: FINANCE DEPARTMENT
PRESENTATION BY: CAROL MOLINA, FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: CAROL MOLINA, FINANCE DIRECTOR,
(714) 754-5036
RECOMMENDATION:
Staff recommends that the City Council and the Housing Authority:
Adopt the Joint Resolution Approving the Housing Authority Budget including Housing
and Community Development expenses for FY 2021-2022 (Attachment 1).
BACKGROUND:
On January 17, 2012, under the California Housing Authorities Law, Health and Safety
Code Section 34200, et seq. (“HAL”), the City Council established the Costa Mesa
Housing Authority (“Housing Authority”). 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, including this Housing Authority acting as the
housing successor under the Dissolution Law and a housing authority under the HAL.
2
Under Health and Safety Code Section 34176,1 the State Department of Finance (“DOF”)
issued a decision letter in January 2013 that confirmed that the Housing Authority holds
all affordable housing assets of the Former Agency as listed in a certain housing asset
transfer schedule prepared by the Housing Authority and submitted to the DOF in July
2012. Therefore, under the Dissolution Law, all housing assets of the housing successor
are held and administered by the Housing Authority in an account called the Low to
Moderate Income Housing Asset Fund (“LMIHAF”) and subject to the requirements of
Sections 34176 and 34176.1, as amended. The City’s Development Services Department
Housing and Community Development Division (“City HCD”) oversees the LMIHAF
program.
With limited exceptions, the DOF prohibits spending Redevelopment Property Tax Trust
Fund (“RPTTF”) monies on housing related expenditures. Due to the DOF’s refusal to
allow housing costs to be billed to the Successor Agency, staff recommends the
continued funding of housing activities of the housing successor from five primary
sources: (1) program income from the housing assets; (2) 20% of each annual repayment
from the reinstated City/Agency loan approved by DOF; (3) revenues generated from the
James St./W.18th St. Properties (as explained below); (4) investment income; and (5) fund
balance.
Section 34176.1 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.
For the first category, the term administrative costs is defined as “monitoring and
preserving the long-term affordability of units subject to affordability restrictions or
covenants entered into by the [former] redevelopment agency or the housing successor”
and general administration of authorized housing activities. The maximum amount that
can be budgeted and expended for administrative costs is the greater of (a) $200,000 or
(b) an amount equal to five percent (5%) of the sum of (i) the statutory value of real
property owned by the housing successor, plus (ii) all loans and grants receivable, plus
(iii) the value of real property purchased and loans and grants made by the housing
successor.
For the second category, the LMIHAF can spend a maximum amount of $250,000 “for
homeless prevention and rapid rehousing services for individual and families who are
homeless or would be homeless but for this assistance, including the provision of short-
term or medium-term rental assistance, contributions toward the construction of local or
regional homeless shelters, housing relocation and stabilization services including
housing search, mediation, or outreach to property owners, credit repair, security or utility
deposits, utility payments, rental assistance for a final month at a location, moving cost
assistance, and case management, or other appropriate activities for homelessness
prevention and rapid rehousing of persons who have become homeless.”
1 Statutory references are to the California Health and Safety Code unless otherwise stated.
3
After budgeting for those two categories, the remaining funds in the LMIHAF must be
directed to “development” of affordable housing, as explained in more detail later in this
report. The term “development” is defined in Section 34176.1 to include various activities:
“new construction, acquisition and rehabilitation, substantial rehabilitation …, acquisition
of long-term affordability covenants on multifamily units …, or the preservation of an
assisted housing development …”.
ANALYSIS:
The Housing Authority is legally responsible for its housing assets and functions. In FY
2021-2022, the Housing Authority is projected to receive the following revenues:
Table 1 – Housing Authority Revenues
Program Revenues Amount
Costa Mesa Family Village Ground Lease Payments * $120,000
Investment Income * 23,400
Loan Repayments – FTHB, Single Family Rehab, etc. (a) * 6,000
RDA Loan Repayment from DOF (ROPS 21-22) (b) * 381,141
James St./W.18th St. Properties Rental Income * 250,000
State SB2 Grant for Shelter Operation ** 528,581
Homeless Shelter Contribution from Newport Beach ** 1,000,000
General Fund Transfer-in ** 1,713,827
Use of LMIHAF Fund Balance * 37,261
Total Revenues and Use of Fund Balance $4,060,210
* Restricted revenue resources for LMIHAF functions.
** Revenue resources for the Homeless Outreach and Shelter programs.
(a) Repayments from loans extended under the Single-Family Rehabilitation and First Time Home
Buyer Programs.
(b) From the seventh annual payment on the reinstated City/Agency loan under Section 34191.4
due to the mandate to set aside and deposit into the LMIHAF 20% of the DOF-authorized
payment on the City/Agency loan as reported on ROPS 21-22.
The LMIHAF funds will be earmarked to pay (1) the eligible administrative costs, including
covenant monitoring, (2) housing development and preservation of affordable housing
units at James St./W.18th St. Properties, and (3) homeless prevention and rapid
rehousing services including personnel costs up to $250,000.
4
COVENANT MONITORING AND ADMINISTRATION EXPENDITURE BUDGET
As explained above, under Section 34176.1, the Housing Authority, as the housing
successor, is limited per fiscal year in the maximum amount which may be expended for
administrative costs including covenant monitoring. Staff completed the calculations for the
maximum amount of housing successor administrative costs in FY 2021-2022, i.e., the
greater of (1) $200,000 or (2) 5% of assets, which is $278,152.
In Exhibit A to Attachment 1, staff has summarized the Housing Authority’s proposed
expense category by program. The estimated FY 2021-2022 Administrative Costs
including Covenant Monitoring Expenditures total $237,982. This budget consists of
approximately $86,900 in staff time, $111,100 in legal, consulting and financial audit
services, and $40,000 in contingency (20%).
Staff also recommends that, by approval of this budget, the Housing Authority authorize
staff to incur costs up to the statutory maximum subject to the availability of funds, and to
modify the amounts within the above line items subject to adequate funds so long as the
maximum statutory amount of $278,152 is not exceeded.
HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING
The Dissolution Law does not limit the amount of LMIHAF monies for “development”,
including preservation of affordable housing.
Thus, the Housing Authority FY 2021-2022 budget for “development” will continue to
include estimated fees for City staff, legal counsel and consulting services to assess
development options, negotiate with developers and potentially select a developer for an
acquisition/substantial rehabilitation or other type of project that would cause an extended
and renewed 55-year term of affordable housing for certain City owned affordable housing
properties such as the James Street/West 18th Street property comprised of 30 units in
eight buildings.
The proposed FY 2021-2022 budget for Housing Development and Preservation of
Affordable Housing as shown in Exhibit A to Attachment 1 total $329,820. The budget
includes $41,720 in staff time, $112,500 in legal and consulting services, and $175,600
in property maintenance, repairs and management.
Table 2 - Low and Moderate Income Housing Asset Fund (LMIHAF) FY 2021-22 Proposed Budget
REVENUES BY FUNDING SOURCE AMOUNT
Costa Mesa Family Village Ground Lease $ 120,000
James Street/West 18th Street Rental Income 250,000
Investment Income 23,400
Loan Repayments 6,000
RDA Loan Repayment from DOF (Annual ROPS) 381,141
Use of Fund Balance 37,261
Total Housing Authority Revenues $ 817,802
5
EXPENSE CATEGORY BY PROGRAM
Covenant Monitoring And Administration 237,982
Housing Development And Preservation Of Affordable Housing 329,820
Net Housing Authority Funds Grand Total to Homelessness
Program 250,000
Total Housing Authority Expenditures $ 817,802
HOMELESS OUTREACH
The Homeless Outreach program combines the City’s Network for Homeless Solutions
with the Housing Authority’s Homeless Prevention and Rapid Rehousing Program. Both
programs serve the same functions and offer a broad range of services to homeless
individuals, such as assisting with housing options; creating a social service registry;
establishing a network of nonprofit and faith-based organizations; providing outreach
services; and reconnecting new homeless persons to their families and services in their
city/state of origin. The Homeless Outreach program is a collaborative effort between City
staff, volunteers, community churches, and non-profit and private organizations to
address homelessness at Costa Mesa.
Staff recommends appropriation of $979,642 for staffing and $100,100 for operational
costs for a total program appropriation budget of $1,079,742. Section 34176.1 authorizes
the Housing Authority as housing successor to allocate up to $250,000 each fiscal year
to help offset for homeless prevention and rapid rehousing services costs, primarily
focusing on community outreach efforts.
COSTA MESA BRIDGE SHELTER
In response to a court order to provide a certain number of shelter beds, the City opened
a temporary homeless bridge shelter at the Church of Nazarene/Lighthouse Church
(located at 1885 Anaheim Avenue) in April 2019. The City also purchased a permanent
shelter site that was completed in the early part of 2021.
To prepare for future federal and state shelter funding opportunities, the Housing
Authority accounts for all shelter operating activities, including shelter operator contract,
utilities, external rents, maintenance, and other operational costs.
In March 2021, the Costa Mesa Bridge Shelter on Airway Avenue was completed and
opened, and a partnership was established between the City and Newport Beach. The
permanent shelter will serve as a temporary home for as many as 70 men and women in
need. It is intended to help homeless individuals and residents who are touched by
homelessness.
Senate Bill 2 – New Affordable Housing and Jobs Act Fee (SB 2) will provide $528,581
toward shelter operating expenses.
6
Table 3 - Homeless Outreach and Bridge Shelter Operations FY 2021-22 Proposed Budget
REVENUES BY FUNDING SOURCE AMOUNT
Housing Authority Fund $ 250,000
State SB 2 Grant 528,581
General Fund Contribution 1,713,827
Other Governmental Agencies 1,000,000
Total Revenues $ 3,492,408
EXPENSE CATEGORY BY PROGRAM
Homeless Outreach 1,079,742
Bridge Shelter Operation 2,412,666
Total Expenditures $ 3,492,408
Net Surplus/(Deficit) $ 0
FISCAL REVIEW:
The Housing Authority’s FY 2021-2022 budget consists of funding from a variety of
resources with distinct purposes. The City HCD LMIHAF component of the Housing
Authority covers administration costs including covenant monitoring, housing
development and preservation of affordable housing costs (James St/W. 18th Street
Properties), and homeless prevention and rapid rehousing costs up to $250,000 (part of
the Homeless Outreach program). The LMIHAF programs included in Table 2 have no
fiscal impact to the City’s General Fund subsidy since they are funded exclusively from
the Housing Authority’s program income, investment income, deposits of 20% of the
annual City/Agency loan repayment, fund balance, and rental income from the James
St./W.18th Street Properties.
For the FY 2021-2022 budget, staff has estimated that the LMIHAF programs will receive
$817,802 in restricted revenues and use of fund balance to pay for $817,802 in program
expenditures. At this time, there is approximately $3.8 million still available LMIHAF fund
balance. The Housing Authority’s FY 2021-2022 total appropriation budget by program is
summarized as follows:
Table 4 – FY 2021-2022 Proposed Budget
Programs Appropriation
Administrative Costs including Covenant Monitoring
$ 237,982
Housing Dev. & Preservation of Affordable Housing 329,820
Homeless Outreach 1,079,742
Bridge Shelter 2,412,666
TOTAL APPROPRIATION $4,060,210
7
LEGAL REVIEW:
The City Attorney’s Office reviewed and approved this report and the attached resolution
as to form.
CONCLUSION:
Staff recommends that the City Council and Housing Authority:
Adopt the Joint Resolution Approving the Housing Authority Budget including Housing
and Community Development expenses for FY 2021-2022 (Attachment 1).
The total budget is $4,060,210, including $817,802 earmarked for City HCD LMIHAF
programs with the listed contingency amounts and subject to the availability of funds to
expend up to the statutory maximums. Staff estimates total shelter operating costs to be
$2.4 million. The City of Newport Beach will be providing $1 million annually towards
shelter operating expenses. The General Fund will provide the remaining balance for
shelter operations to ensure preventative measures are successful, including hygiene and
facility cleaning supplies, food, and other facility operational costs.
CAROL MOLINA
Finance Director
LORI ANN FARRELL HARRISON KIMBERLY HALL BARLOW
City Manager City Attorney
Attachment: 1. Joint Resolution Housing Authority FY2021-2022 Proposed Budget
FY 2021-22
HOUSING
AUTHORITY
Proposed Budget
June 1, 2021
v v
1
HOUSING AUTHORITY OVERVIEW
•Separate legal entity formed by the City under California Health and
Safety Code 34200.
•Housing successor to the dissolved Costa Mesa Redevelopment Agency
(RDA) and holds the former RDA’s housing assets.
•Low to Moderate Income Housing Asset Fund (LMIHAF) expenditure
limits are set by the Health and Safety Code and subject to annual state
reporting.
•Expenditures above LMIHAF limits are funded from other sources (i.e.
SB2 grants, General Fund contributions and donations).
v v
2
PROPOSED FISCAL YEAR 2021-22 HOUSING
AUTHORITY REVENUES
LMIHAF Revenues and Use of Fund Balance:
Costa Mesa Family Village Ground Lease 120,000$
James Street/West 18th Street Rental Income 250,000
Investment Income 23,400
Loan Repayments 6,000
^ Successor Agency Loan Repayment 381,141
* Use of Fund Balance 37,261
817,802
Other Funding Sources:
State SB 2 Grant 528,581
Annual Shelter Contribution Newport Beach 1,000,000
General Fund Contribution 1,713,827
3,242,408
4,060,210$
^ of this amount, $250,000 is dedicated to homeless outreach program.
* Available Housing Authority fund balance as of 4/30/2021 is approximately $3.8 million.
Total Housing Authority Revenues
v v
3
PROPOSED FISCAL YEAR 2021-22 HOUSING
AUTHORITY EXPENDITURES
Program Expenditures
Covenant Monitoring and Administration 237,982$ *
Housing Development and Preservation
of Affordable Housing 329,820 *
Homeless Outreach 1,079,742 **
Bridge Shelter 2,412,666 ***
4,060,210$
* LMIHAF funding
** LMIHAF funding up to $250,000, remaining is from restricted sources and General Fund
*** Restricted sources and General Fund funding
Total Housing Authority Expenditures
v v
4
PROPOSED FISCAL YEAR 2021-22 HOUSING
AUTHORITY HOMELESS SERVICES FUNDING
SOURCES
Funding Sources
Housing Authority 250,000$
State SB 2 Grant 528,581
Annual Shelter Contribution Newport Beach 1,000,000
General Fund Contribution 1,713,827
3,492,408$
Expenditures
Homeless Outreach 1,079,742$
Bridge Shelter Operations 2,412,666
3,492,408$
Total Funding Sources
Total Expenditures
QUESTIONS?
RESOLUTION NO. 21-xx
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA AND THE COSTA
MESA HOUSING AUTHORITY ADOPTING A BUDGET FOR THE HOUSING AUTHORITY FOR FISCAL
YEAR 2021-2022
THE CITY COUNCIL OF THE CITY OF COSTA MESA AND THE COSTA MESA HOUSING
AUTHORITY DO HEREBY FIND AND DECLARE AS FOLLOWS:
WHEREAS, the City Council, by Resolution adopted on January 17, 2012, declared the need
for a housing authority to function in the City of Costa Mesa, established the “Costa Mesa Housing
Authority” (“Housing Authority”), and declared that the members of the City Council are the
Commissioners of the Housing Authority pursuant to the California Housing Authorities Law,
commencing with Health & Safety Code Section 34200, et seq. (“HAL”); and
WHEREAS, the City of Costa Mesa is a California municipal corporation and general law city
(“City”); and
WHEREAS, the City and Housing Authority desire to establish an annual budget for the
Housing Authority; and
WHEREAS, the establishment of a budget for Fiscal Year 2021-2022 (“FY 21-22”) has been
prepared by the City Manager and Executive Director of the Housing Authority; and
WHEREAS, the budgeting process establishes the plan of expenditures and the priorities of
the Housing Authority and the Housing and Community Development division of the Development
Services Department of the City, in particular as to the functions, duties, and operations of the
Housing Authority pursuant to the HAL and as to the affordable housing assets, functions, and duties
created by dissolution of the former Costa Mesa Redevelopment Agency pursuant to Parts 1.8 and
1.85 of Division 24, of the California Health and Safety Code (“Dissolution Law”); and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa and the
Costa Mesa Housing Authority as follows:
SECTION 1. The annual budget for the Housing Authority for Fiscal Year 2021-2022, as
prepared and submitted by the City Manager/Executive Director, attached hereto as Exhibit A, is
hereby approved and adopted.
ATTACHMENT 1
SECTION 2. To ensure appropriate service levels and to carry out the statutory obligations
of the HAL and Dissolution Law, the City Manager/Executive Director is authorized to expend funds
or transfer funds among operating budgets or project budgets within adopted appropriations as
needed and as permitted by law.
SECTION 3. The City Clerk and Housing Authority Secretary shall certify to the adoption of
this Resolution.
PASSED AND ADOPTED this 1st day of June 2021.
CITY COUNCIL:
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
COSTA MESA HOUSING AUTHORITY:
_______________________________
John Stephens, Chair
ATTEST: APPROVED AS TO FORM:
________________________ _______________________________
Brenda Green, Secretary Kimberly Hall Barlow, General Counsel
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa and Secretary of the Costa Mesa
Housing Authority, DO HEREBY CERTIFY that the above and foregoing Resolution No. 21-__ is the
original joint resolution of the City Council and Housing Authority that was duly passed and
adopted by the City Council of the City of Costa Mesa and the Costa Mesa Housing Authority at a
regular meeting held on the 1st day of June 2021, by the following roll call vote, to wit:
CITY COUNCIL:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
HOUSING AUTHORITY:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa
Mesa this 1st day of June 2021.
_________________________________
BRENDA GREEN
City Clerk and Housing Authority Secretary
Y
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.
R E NTA L R E H A B I L I T A T I O N – 2 0 4 2 5
Offers deferred loans to owner of multi-family properties to make improvements and repair code violations. Loans
were originated in the 90s and deferred unless the owner sells transfers or defaults on the property.
H O US I N G A U T H O R I T Y A D M I NI S T R A T I O N - 2 0 6 0 0
Provides administration support such as conducting required board meetings, maintaining financial records and
preparing annual reports, etc.
C O S T A M E S A F A M I L Y V I LL A GE – 2 0 6 2 0
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.
FI R S T T I M E H O M E B U Y E R P R O GR A M - 2 0 6 2 5
Offers deferred loans to first time homebuyers for home purchase in the City. Loans were extended prior to year
2009 under various terms.
H A B I T A T F O R H U M A N I T Y – 2 0 6 3 0
The Housing Authority holds interest to the land used for the development of five single-family homes by Habitat
for Humanity in year 2004. The Housing Authority maintains enforceable covenants on the properties. No loan
repayment is required unless the owner defaults.
S I NG LE FA M I L Y R E H A B I L I T A T I O N P R O GR A M – 2 0 6 4 0
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.
COSTA MESA HOUSING AUTHORIT
C O V E N A N T M O N I T O R I N G A N D A D M I N I S T R A T I O N - 1 1 5 0 0
EXIBIT "A" TO ATTACHMENT 1
S T. JO H N M A N O R – 2 0 6 5 0
St. John’s Manor is a 36-unit senior rental project. The Housing Authority’s loan to this project was paid off in
fiscal year 2018-19. The Housing Authority expects to reinvest the loan repayment into another similar rental
project.
C O S T A M E S A V I L L A G E – 2 0 6 5 5
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. The Housing Authority expects to reinvest the loan repayment into another similar
housing project.
J A M E S /W E S T 1 8 T H S T R E E T P R O P ER TY – 2 0 6 3 5
The James/W est 18th Property is four affordable housing projects with 30 rental units, owned and operated by
the Housing Authority. The Authority acquired the projects through foreclosure process in fiscal year 2015-16.
H O M E L E S S O U T R E A C H - 2 0 6 0 5
An addition to the Housing Authority’s homeless prevention and rapid rehousing services is the transfer of the
Network for Homeless Solutions program from the City Manager’s Office to the Housing Authority, as approved
by the City Council during the 2018-19 Mid-Year Budget Review. Homeless Outreach’s primary activities are
community outreach and working with various organizations and governmental agencies to identify housing
solutions for Costa Mesa’s homeless population. The General Fund will provide funding for program expenses
in excess of the Low and Moderate Income Housing Asset Fund’s (LMIHAF’s) $250,000 allowance for this
category.
B R I D GE S H E L T E R O P E R A T I O N – 2 0 6 0 6
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 72 homeless adults. Beginning in fiscal year 2020-21, the cities of Costa Mesa and Newport Beach enter into
a Memorandum of Understanding (MOU) to allocate 20 of the 72 shelter beds to Newport Beach’s use.
C O S T A M E S A H O U S I N G A U T H O R I T Y (C O N T I N U E D )
H O U S I N G D E V E L O P M E N T A N D P R E S E R V A T I O N O F A F F O R D A B L E H O U S I N G - 1 1 5 0 0
H O M E L E S S O U T R E A C H A N D B R I D G E S H E L T E R O P E R A T I O N - 1 4 3 0 0
COSTA MESA HOUSING AUTHORITY (CONTINUED)
BUDGET NARRATIVE
The Fiscal Year 2021-22 budget for the Housing Authority is approximately $4 million, an increase nearly 30 percent,
compared to the adopted budget for Fiscal Year 2020-21. W ith the relocation to a permanent homeless shelter facility,
the City has entered into a partnership with the City of Newport Beach, increasing the number of beds to expand its
solution to offer shelter beds to those in need during inclement weather.
FY 20-21 FY 21-22
FY 18-19 FY 19-20 Adopted Proposed
Actuals Actuals Budget Budget
REVENUES BY FUNDING SOURCE
Costa Mesa Family Village Ground Lease $ 1 24,742 $ 1 31,989 $ 1 20,000 $ 1 20,000
James Street/W est 18th Street Rental Income 253,727 273,391 264,000 250,000
Investment Income 109,584 102,263 38,000 23,400
Loan Repayments 6,574 5,111 7,000 6,000
Other Reimbursement 12,500 - -
RDA Loan Repayment from DOF (Annual ROPS) 320,775 258,209 258,209 381,141
State SB 2 Grant - 528,581 528,581
General Fund Contribution 1,003,400 2,438,345 1,177,203 1,713,827
Other Governmental Agencies 1,000,000
Contributions 14,000 -
Donations - 5,290 -
CDBG CV Funds - 668,000
Use of Fund Balance 68,116 37,261
Total Housing Authority Revenues
EXPENSE CATEGORY BY PROGRAM
$ 1,845,302 $ 3,214,600 $ 3,129,109 $ 4,060,210
FY 20-21 FY 21-22
FY 18-19 FY 19-20 Adopted Proposed
Actuals Actuals Budget Budget
COVENANT MONITORING AND ADMINISTRATION - 11500
Rental Rehabilitation - 20450
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations 2,364 - - -
Fixed Assets - - - -
Subtotal Rental Rehabilitation $ 2 ,364 $ - $ - $ -
Housing Authority Administration - 20600
Salaries and Benefits $ 88,103 $ 85,054 $ 91,725 $ 86,882
Maintenance and Operations 24,186 10,176 84,000 100,000
Fixed Assets - - -
Subtotal Housing Authority Administration $ 112,289 $ 95,230 $ 175,725 $ 186,882
Costa Mesa Family Village - 20620
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations - - 5,000 5,000
Fixed Assets - - - -
Subtotal Costa Mesa Family Village $ - $ - $ 5 ,000 $ 5 ,000
COSTA MESA HOUSING AUTHORITY (CONTINUED)
FY 20-21 FY 21-22
FY 18-19 FY 19-20 Adopted Proposed
Expense Category by Program Actuals Actuals Budget Budget
COVENANT MONITORING AND ADMINISTRATION - 11500 (continued)
First Time Homebuyer Program - 20625
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations 2,298 - 16,000 11,000
Fixed Assets - - - -
Subtotal First Time Homebuyer Program $ 2 ,298 $ - $ 1 6,000 $ 1 1,000
Habitat for Humanity - 20630
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations - - 7,000 7,000
Fixed Assets - - - -
Subtotal Habitat for Humanity $ - $ - $ 7 ,000 $ 7 ,000
Single Family Rehabilitation Program - 20640
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations 282 - 20,000 20,000
Fixed Assets - - - -
Subtotal Single Family Rehabilitation Prog. $ 2 82 $ - $ 2 0,000 $ 2 0,000
St. John Manor - 20650
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations 5,209 - 5,000 5,000
Fixed Assets - - - -
Subtotal St. John Manor $ 5 ,209 $ - $ 5 ,000 $ 5 ,000
Costa Mesa Village - 20655
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations 914 - 2,100 3,100
Fixed Assets - - - -
Subtotal Costa Mesa Village $ 9 14 $ - $ 2 ,100 $ 3 ,100
Subtotal Covenant Monitoring and Admin. $ 1 23,356 $ 9 5,230 $ 2 30,825 $ 2 37,982
HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING - 11500
James/West 18th Street Property - 20635
Salaries and Benefits $ 4 1,686 $ 3 7,142 $ 4 3,500 $ 4 1,720
Maintenance and Operations 212,477 142,011 231,000 260,500
Fixed Assets - - 27,600
Subtotal Civic Center Barrio $ 2 54,163 $ 1 79,152 $ 2 74,500 $ 3 29,820
COSTA MESA HOUSING AUTHORITY (CONTINUED)
FY 20-21 FY 21-22
FY 18-19 FY 19-20 Adopted Proposed
Expense Category by Program Actuals Actuals Budget Budget
HOMELESS OUTREACH AND BRIDGE SHELTER OPERATION - 11500/14300
Homeless Outreach - 20605 *
Salaries and Benefits $ 343,957 $ 723,081 $ 922,684 $ 979,642
Maintenance and Operations 113,339 159,169 104,100 100,100
Fixed Assets 1,668 425 - -
Subtotal Homeless Outreach $ 458,964 $ 882,674 $ 1,026,784 $ 1,079,742
* The Homeless Outreach program was previously divided between the Housing Authority (program 11500) and
the City Manager's Office (program 50250). The City Council approved consolidating all homeless outreach
and shelter programs under the Housing Authority during the 2018-19 Mid-Year Budget Review.
Bridge Shelter Operation - 20606
Salaries and Benefits $ - $ - $ - $ -
Maintenance and Operations $ 7 02,769 1,810,961 1,597,000 2,412,666
Fixed Assets 105,668 - - -
Subtotal Bridget Shelter Operation $ 8 08,437 $ 1 ,810,961 $ 1 ,597,000 $ 2 ,412,666
TOTAL HOUSING AUTHORITY
Salaries and Benefits $ 4 73,746 $ 8 45,277 $ 1 ,057,909 $ 1 ,108,244
Maintenance and Operations 1,063,838 2,122,317 2,071,200 2,924,366
Fixed Assets 107,336 425 - 27,600
Total Housing Authority $ 1,644,919 $ 2,968,018 $ 3,129,109 $ 4,060,210