HomeMy WebLinkAbout02 - CC-4 - Housing Authority Budget for FY 14-15 - 5/20/2014CITY COUNCIL/HOUSING AUTHORITY
AGENDA REPORT
MEETING DATE: MAY 20, 2014 ITEM NUMBER:
SUBJECT: HOUSING AUTHORITY BUDGET FOR FY14-15
DATE: APRIL 23, 2014
FROM: DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND COMMUNITY
DEVELOPMENT
PRESENTATION BY: WILLA BOUWENS-KILLEEN, PRINCIPAL PLANNER
SILVIA KENNERSON, MANAGEMENT ANALYST
FOR FURTHER INFORMATION WILLA BOUWENS-KILLEEN, PRINCIPAL PLANNER
CONTACT: 714. 754.5153 willa.bouwens-killeen@costamesaca.gov
SILVIA KENNERSON, MANAGEMENT ANALYST
714. 754.5023 silvia.kennerson@costamesaca.gov
RECOMMENDED ACTIONS
CITY COUNCIL:
Approve the Housing Authority Budget for Housing and Community Development (HCD)
expenses for FY14-15. (Exhibit A)
HOUSING AUTHORITY:
Approve the Housing Authority Budget for Housing and Community Development (HCD)
expenses for FY14-15. (Exhibit A)
BACKGROUND
On January 17, 2012, pursuant to the California Housing Authorities Law, Health and
Safety Code Section 34200, et seq., the City Council established the Costa Mesa
Housing Authority (Housing Authority). Also on that date, the City Council selected the
Housing Authority to be the housing successor and, as of February 1, 2012, to assume
the housing assets, duties, functions and obligations of the former Costa Mesa
Redevelopment Agency. These actions occurred due to the dissolution of the former
Redevelopment Agency pursuant to Assembly Bill x1 26, the California Supreme
Court's decision in California Redevelopment Association, et al. v. Matosantos, and
Assembly Bill 1484 (together, "Dissolution Laws") that caused the dissolution of all
California redevelopment agencies.
Pursuant to Section 34176, added by AB x1 26 and amended by AB 1484, the State
Department of Finance (DOF) issued a decision letter in January 2013 that confirms the
Housing Authority holds all affordable housing assets of the former Redevelopment
Agency as listed in a housing asset schedule prepared by Costa Mesa and submitted to
the DOF on August 1, 2012.
The DOF prohibits the use of Redevelopment Property Tax Trust Fund (RPTTF) monies
to be used 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 through program income.
ANALYSIS
Costa Mesa is legally responsible for its housing assets and functions. In FY14-15, the
Housing Authority, as housing successor, will receive approximately $90,000 in program
income from the ground lease rent from Costa Mesa Family Village as well as other
programs (i.e. residual receipts payments on certain affordable housing project loans
and repayments on loans made under the Rental Rehabilitation and First Time
Homebuyer Programs). These monies are used for the City's monitoring, compliance,
enforcement, and annual audit of affordable housing assets, but first need to be
appropriated to the Housing Authority.
The proposed Housinq Authoritv budget for FY 14-15 is as follows:
Existing Programs
Legal Costs
Consulting Costs
Total
First Time Homebuyer
$10,000
$ 5,000
$15,000
Civic Center Barrio
$10,000
$ 5,000
$15,000
Habitat for Humanity
$10,000
$ 5,000
$15,000
St. John's Manor
$0
$ 5,000
$ 5,000
Costa Mesa Family Village
$10,000
$0
$10,000
Costa Mesa Village/SRO
$ 5,000
$ 5,000
$10,000
Housing Audit
$0
$10,000
$10,000
Loan Impairment Analysis
$0
$10,000
$10,000
Grand Total $90,000
As a note, the amount of revenues can vary from year to year.
FISCAL IMPACT
No fiscal impact is anticipated because the funds are anticipated to be received from the
housing assets. At this time, the City has an estimated $90,000 of program income for
FY14-15. However, because Costa Mesa is legally obligated to continue to maintain its
housing assets and perform housing functions, the General Fund may be impacted if the
financial statements result in a lower ground lease rent; if residual receipts loans result in
low loan payments; and/or few to no rehabilitation loans or First Time Homebuyer loans
are repaid. Due to reduced staffing, consulting and legal costs will continue to be incurred
to monitor and enforce the housing assets and obligations pursuant to the Dissolution
Laws, as well as federal program requirements and regulations.
LEGAL IMPACT
There is no adverse legal impact anticipated by the Council and Housing Authority.
CONCLUSION
Staff recommends the Council and Housing Authority approve a budget for the Housing
Authority for FY14-15 and if/when monies in excess of the estimated $90,000 are
received that such monies are accounted for in the new Housing Authority Budget for
use by HCD for administering monitoring, compliance and enforcement (by staff,
consultants, and counsel).
GARY ARMSTRONG
Economic and Development Services
Director/Deputy CEO
COLLEEN O'DONOGHUE
Assistant Finance Director
Exhibit A: Joint Citv Council/CMHA Resolution
WILLA BOUWENS-KILLEEN, AICP
Principal Planner
SILVIA KENNERSON
Management Analyst