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HomeMy WebLinkAbout04 THA ANNUAL MEETING/ANNUAL REPORTAgenda Item 4_ Reviewed: AGENDA REPORT City Manager Finance Director JA MEETING DATE: SEPTEMBER 18, 2012 TO: JEFFREY C. PARKER, CITY MANAGER & HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: TUSTIN HOUSING AUTHORITY SUBJECT: TUSTIN HOUSING AUTHORITY ANNUAL MEETING AND ANNUALREPORT SUMMARY Pursuant to the Tustin Housing Authority Bylaws and State of California Housing Authorities Law of the California Health and Safety Code, the Tustin Housing Authority is holding an annual meeting and receiving and filing the annual report for the preceding fiscal year. RECOMMENDATION It is recommended the Tustin Housing Authority ( "Housing Authority ") Commissioners take the following actions: • Open their Annual Meeting and receive and file the Annual Report for Fiscal Year ( "FY ") 2011 -2012 and transmit such report to the Tustin City Council. • Close their Annual Meeting It is recommended the City Council take the following actions: Receive and file the Housing Authority's Annual Report for FY 2011 -2012. • Direct that a copy of the Housing Authority's Annual Report for FY 2011 -2012 be filed with the City Clerk and ex- officio Clerk of the City Council of the City of Tustin and the California State Department of Housing and Community Development. FISCAL IMPACT The only fiscal impact of this action has been the staff time necessary to prepare the annual report. Pursuant to Section 34328.1, the Department of Housing and Community Development could request the Housing Authority reimburse the Agenda Report September 18, 2012 Page 2 department for the cost of processing the report. The Housing Authority is requesting relief from this requirement. BACKGROUND /DISCUSSION The California Housing Authorities Law of the California Health and Safety Code ( "HSC ") requires that the Housing Authority submit to the legislative body and the California State Department of Housing and Community Development ( "HCD ") an annual report for the preceding fiscal year. On March 15, 2011, the City Council approved Resolution No. 11 -20 establishing the Housing Authority in accordance with the California Housing Authorities Law (CHAL). On April 19, 2011, the Housing Authority Commissioners ( "Commissioners ") adopted Resolution HA No. 11 -01 approving the By -Laws for the Housing Authority. On January 17, 2012, the Commissioners adopted Resolution HA No. 12 -01, approving the assumption of housing assets and functions previously performed by the former Tustin Community Redevelopment Agency ( "Agency "). The assumption of assets and functions became effective February 1, 2012. In accordance with Section 34328 of CHAL, the Housing Authority shall annually file on the first day of October with the City Clerk and HCD a complete report of its activities for the preceding year. The report shall contain information adequate for the City or HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. The report shall also make either directly or through any national, regional, or state housing association or organization of which it may be a member, recommendations with reference to additional legislation or other action which it deems necessary to carry out the purposes of CHAL. As a result of assuming the Agency's assets and functions, the report is broken out into two sections. Section One outlines compliance with HSC Section 34312.3 and Section Two lists the activities associated with the assumption of the Agency's housing assets and functions. Pursuant to Section 34328.1 of CHAL, Section One of the annual report contains the following: 1. Recommendations for needed legislation to carry on properly a program of housing and community development in this state. 2. Data on terminations of tenancies of victims of domestic violence in housing authority units, and terminations of Section 8 vouchers of victims of domestic violence. Agenda Report September 18, 2012 Page 3 a. The data shall be included in all cases where a notice of termination was given, regardless of whether the termination was based in whole or in part on activity related to the domestic violence, and whether the notice resulted in the victim vacating the premises or actual termination of the voucher. b. For each termination, the report shall briefly specify steps taken, if any, by the authority to address the situation or assist the victim prior to the termination, and, if known, the subsequent housing obtained by the victim. If no steps were taken, the authority may include an explanation of why none were deemed necessary. c. The report shall include data on terminations of all victims of domestic violence, as reported or known to the authority, its employees, or agents, whether or not an arrest was made or any report was filed. d. The report may include any other information regarding domestic violence victim terminations deemed relevant by the authority. e. For purposes of this section, "domestic violence" has the meaning set forth in Section 6211 of the Family Code. 3. Pursuant to Section 34328, the Housing Authority's annual report shall contain information adequate for the City and HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. In accordance with Section 34312.3, the authority may do any of the following and report accordingly: a. Issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with and determined necessary to the multifamily rental housing. b. Make or undertake commitments to make construction loans and mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. c. Purchase or undertake, directly or indirectly through lending institutions, commitments to purchase, construction loans, and mortgage loans originated in accordance with a financing agreement with the authority to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing or make loans to lending institutions under terms and conditions which, in addition to other provisions determined by the authority, shall require the lending institutions to use the net proceeds of the loans for the making, directly or indirectly, of construction loans or mortgage Agenda Report September 18, 2012 Page 4 loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. 4. Any activities where the authority developed, rehabilitated, or financed housing projects or participated in the development, rehabilitation, or financing of housing projects; or purchased, sold, leased, owned, operated, or managed housing projects so assisted, subject to all of the requirements of Section 34312.3 shall be reported. 5. A reporting breakdown of occupancy by income levels and rents for housing projects assisted by the authority that demonstrate compliance with the following: a. Not less than 20 percent of all units in housing projects are available for occupancy on a priority basis to persons of low income and base rents are adjusted for household size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sect 1437f) or its successor. b. Not less than one -half of the units are occupied by, or made available to, very low income households, as defined by Section 50105 and rental payments for those units do not exceed the amount derived by multiplying 30 percent times 50 percent of the median adjusted gross income for Orange County, adjusted for family size. 6. Any indebtedness incurred pursuant to a mortgage loan finance under the terms of Section 34312.3 that is subject to acceleration and the balance owing declared immediately due and payable upon any sale of an owner - occupied residence to a purchaser who does not meet the required qualifications for borrowers as established by the authority. 7. Certification of the authority is requiring the owners of housing projects assisted pursuant to Section 34312.3 to accept as tenants, on the same basis as all other prospective tenants, in the units reserved for very low income households, any very low income households who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall not permit a selection criteria to be applied to Section 8 certificate holders that is any more burdensome than the criteria applied to all other prospective tenants. 8. Certification that no resident in housing units assisted pursuant to Section 34312.3 shall be denied continued occupancy or ownership because, after admission, the resident's family income increases to exceed the eligibility level. However, the authority shall ensure that percentage requirements of this section shall continue to be met by providing the next available unit or units to persons of Agenda Report September 18, 2012 Page 5 low income or by taking other actions to satisfy the percentage requirements of this section. 9. In determining whether the percentage requirements of subdivision (c) have been achieved, the following terms and conditions shall be applied: a. The requirement that 20 percent or 15 percent, as the case may be, of the housing units assisted by an authority pursuant to this section shall be available on a priority basis, or occupied by, households whose adjusted gross income does not exceed the applicable limits prescribed by subdivision (c) shall apply to the aggregate number of units assisted by an authority pursuant to this section. b. This section applies only to housing units first assisted after January 1, 1983, and the percentage requirements of subdivision (c) shall be complied with by January 1, 1986, and on January 1 of each even - numbered year thereafter. c. The percentage requirements of subdivision (c) shall be achieved within each of the following categories: (1) rental housing developments; (2) homeownership developments; and (3) rehabilitation financing. Housing units provided by rehabilitation financing shall not be counted within either of the first two categories. 10. Units required to be reserved for occupancy by subdivision (c) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. 11. Multifamily rental housing financed pursuant to Section 34312.3 shall not be subject to the requirements of subparagraph (B) of paragraph (1) and paragraph (2) of subdivision (c), and the requirements of subdivision (d), if all of the following requirements are fulfilled: a. The Housing Authority offers each tenant a homeownership opportunity when the bonds are retired. b. A special trust fund or account which is funded with bond issuance proceeds or developer contributions, or both, is established no later than the time that the multifamily rental housing is first occupied. The initial funding of the account shall be no less than 5 percent of the face value of the bonds issued for the multifamily rental housing project. Upon repayment of the bonds, these funds, and all interest accruing thereon, less any amounts necessary to pay outstanding claims, shall be used to assist housing units for persons of very low income. Agenda Report September 18, 2012 Page 6 c. The requirements of subparagraph (A) of paragraph (1) and subparagraph (A) of paragraph (2) of subdivision (c) shall remain in effect for the periods required by Section 103(b)(1 2)(B) of Title 26 of the United States Code. 12. It is the intent of the Legislature, and the Legislature declares, that housing authorities are the local entities with primary responsibility for providing housing for low- income and very low income households within their jurisdictions. However, recognizing that housing projects only for low- income households cannot be adequately assisted or developed with currently available funds, and that excess funds from housing projects assisted pursuant to this section can be utilized to further assist in the provision of housing for lower income households, it is the intent of the Legislature that the authorization of this section is to be used to enhance and supplement the traditional housing authority role of providing housing only for low- income households. 13. The authority shall provide the Department of Housing and Community Development funds as requested by the department to reimburse the department for the cost of processing the report required by this section. ANALYSIS The Housing Authority has not participated in the construction or acquisition of housing projects as defined by CHAL and Section One of the attached annual report acknowledges the lack of activity accordingly. Section Two lists activity linked to former Agency functions and assets. Staff will be available to respond to any questions at the Housing Authority and City Council meeting of September 18, 2012. As a result of the recommended actions, the Housing Authority FY 2011 -2012 Annual Report will be submitted to the Department of Housing and Community Development prior to October 1, 2012. Jerry Craig Program M Tustin Hou hment: Tustin Housing Authority FY 2011 -2012 Annual Report TUSTIN BUILDING OUR FUTURE HONORING OUR PAST TUSTIN HOUSING AUTHORITY ANNUAL REPORT FY 2011 - 2012 TUSTIN HOUSING AUTHORITY FY 2011 -2012 ESTABLISHED The Tustin Housing Authority ( "Housing Authority ") was established on March 15, 2011 and the By -Laws were adopted on April 19, 2011. On January 17, 2012, pursuant to California Health and Safety Code Section 34176, the Housing Authority assumed all housing assets and functions previously performed by the former Tustin Community Redevelopment Agency ( "Agency "). The assumption of assets and functions became effective February 1, 2012. ANNUAL REPORT In accordance with Section 34328 of California Housing Authorities Law ( "CHAL "), the Housing Authority is filing on the first day of October with the City Clerk and with the Department of Housing and Community Development ( "HCD ") a complete report of its activities for the preceding year. The report is broken out into two sections: 1) compliance information adequate for the City and HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section; and 2) a breakdown of activities associated with the assumption of housing assets and functions from the former Agency. SECTION ONE shall also make either directly or through any national, regional, or state housing association or organization of which it may be a member, recommendations with reference to additional legislation or other action which it deems necessary to carry out the purposes of CHAL. SECTION ONE — COMPLIANCE WITH CHAL Pursuant to Section 34328.1 of CHAL, the annual report contains the following: 1. Recommendations for needed legislation to carry on properly a program of housing and community development in this state. a. The Housing Authority does not have any recommendations for needed legislation at this time. 2. Data on terminations of tenancies of victims of domestic violence in housing authority units, and terminations of Section 8 vouchers of victims of domestic violence. a. The Housing Authority does not currently own or operate housing authority units or issue Section 8 vouchers. As a result, the authority does not have any data to report. 3. Pursuant to Section 34328, the annual report contains information adequate for the City and HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. a. The Housing Authority did not issue revenue bonds, make or undertake commitments, or purchase or undertake commitments associated with multifamily rental housing. 4. Any activities where the authority developed, rehabilitated, or financed housing projects or participated in the development, rehabilitation, or financing of housing projects; or purchased, sold, leased, owned, operated, or managed housing projects so assisted, subject to all of the requirements of Section 34312.3. a. The Housing Authority does not have any activity to report. 5. A reporting breakdown of occupancy by income levels and rents for housing projects assisted by the authority that demonstrate compliance. a. The Housing Authority does not have any activity to report. 6. Any indebtedness incurred pursuant to a mortgage loan finance under the terms of Section 34312.3 that is subject to acceleration and the balance owing declared immediately due and payable upon any sale of an owner - occupied residence to a purchaser who does not meet the required qualifications for borrowers as established by the authority. a. The Housing Authority does not have any activity to report 7. Certification that the authority shall require the owners of housing projects assisted pursuant to Section 34312.3 to accept as tenants, on the same basis as all other prospective tenants, in the units reserved for very low income households, any very low income households who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall not permit a selection criteria to be applied to Section 8 certificate holders that is any more burdensome than the criteria applied to all other prospective tenants. a. The Housing Authority does not have any activity to report 8. A determination that no resident in housing units assisted pursuant to Section 34312.3 was denied continued occupancy or ownership because, after admission, the resident's family income increased to exceed the eligibility level. However, the authority shall ensure that percentage requirements of this section shall continue to be met by providing the next available unit or units to persons of low income or by taking other actions to satisfy the percentage requirements of this section. a. The Housing Authority does not have any activity to report. 9. A determination in whether the percentage requirements of subdivision (c) of Section 34312.3 have been achieved. a. The Housing Authority does not have any activity to report. 10. Units required to be reserved for occupancy by subdivision (c) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. a. The Housing Authority does not have any activity to report. 11. Determination that multifamily rental housing financed pursuant to Section 34312.3 is not subject to the requirements of subparagraph (B) of paragraph (1) and paragraph (2) of subdivision (C), and the requirements of subdivision (D), as a result of fulfilling all requirements. a. The Housing Authority does not have any activity to report. 12. It is the intent of the Legislature, and the Legislature declares, that housing authorities are the local entities with primary responsibility for providing housing for low income and very low income households within their jurisdictions. However, recognizing that housing projects only for low income households cannot be adequately assisted or developed with currently available funds, and that excess funds from housing projects assisted pursuant to this section can be utilized to further assist in the provision of housing for lower income households, it is the intent of the Legislature that the authorization of this section is to be used to enhance and supplement the traditional housing authority role of providing housing only for low income households. a. On February 1, 2012, the Housing Authority assumed all housing assets and functions previously performed by the former Agency. SECTION TWO details the expanded role the Housing Authority has assumed. 13. The authority shall provide HCD funds as requested by the department to reimburse the department for the cost of processing the report required by this section. a. The Housing Authority has not participated in the construction or acquisition of housing projects as defined by CHAL and the lack of activity is reported in Section One accordingly. As a result, the Housing Authority is requesting relief from HCD's requirement the authority reimburse the department. SECTION TWO — ASSUMPTION OF AGENCY ASSETS & FUNCTIONS Effective February 1, 2012, the Housing Authority assumed the housing assets and functions of the former Agency. The assumption included three hundred five (305) covenant - restricted affordable housing ownership units, two (2) covenant - restricted senior affordable housing rental projects and two (2) loan- restricted affordable housing rental four - plexes. The functions the Housing Authority assumed are detailed in the following FY 2011 -2012 activities report: 1. The Housing Authority assisted twelve (12) existing homeowners sell their affordable housing units to income - eligible homeowners. Functions included the following: a. Provided existing homeowners with the maximum affordable housing price the homeowner could sell their home; and b. Reviewed required application documents to determine income - eligibility of prospective homebuyers; and c. Reviewed title reports, appraisals, and purchase documentation in order to calculate the "silent second" the City would record against the property; and d. Prepared affordable housing documents for signature by both parties; and e. Followed up with the escrow company to insure all affordable housing documents were recorded against the property as prepared. In addition to affordable ownership sales activity, the Housing Authority assumed the functions of administering the Residential Rehabilitation Program and facilitating new affordable ownership purchases. As a result of the passage of A131X 26, the Residential Rehabilitation Program was suspended for FY 2011- 2012. All housing developments which included affordable housing ownership units have been completed and the affordable housing units were sold prior to FY 2011 -2012. There are currently no affordable housing ownership units planned for construction. The following table summarizes activity by income category for New Purchase, Resale and Rehab activity: Ownership Income Level New Purchases Resales Rehab TOTAL Very Low Income 0 0 0 0 Low Income 0 3 0 3 Moderate Income 0 9 0 9 TOTAL 0 12 0 12 2. The Housing Authority assisted thirteen (13) affordable homeowners refinance their existing mortgage by subordinating the City's Silent Second to the new first mortgage. As a result of refinancing, affordable homeowners saved on average $143.20 per month. 3. The Housing Authority assumed the function of monitoring the affordable housing ownership units. The 305 units are located within eight (8) housing developments, each with different monitoring criteria. Prior to the end of FY 2011 -2012, the Housing Authority mailed out two hundred seventy -seven "Annual Owner Certification" forms which required completion by the homeowner and submission of requested documentation. The remaining twenty -eight units did not require monitoring. Monitoring responses were being submitted during FY 2012 -2013 and will be included in the Housing Authority's FY 2012 -2013 Annual Report. 4. Of the 305 units the Housing Authority assumed, eighteen (18) are transitional housing units with three (3) non - profit agencies managing six (6) units each. As part of the Agency's annual monitoring, staff requested an annual report from each of the agencies for FY 2011 — 2012. The following is a summary of the activity occurring in FY 2011 - 2012: a. Twenty -five (25) families were served. Sixteen (16) men, thirty -three (33) women, and forty -nine (49) children. b. As of June 30, 2012, there were seventeen (17) families, with thirteen (13) men, twenty -four (24) women, and forty -two (42) children in the program. c. Eight (8) families have moved into permanent housing, seven (7) of which are in unsubsidized housing. d. Twenty -two (22) adults were employed before entering the program and one (1) additional adult obtained employment while in the program. While in the program, two (2) individuals received a promotion and nine (9) received raises. e. Five (5) adults were attending college before entering the program and seven (7) adults enrolled into either college, a trade school or GED program during the program. Three (3) adults received either a college degree, trade school certificate, High School diploma or completed their GED during the program. Two (2) students either completed their GED or obtained a High School diploma during the program. f. Eighteen (18) families received counseling or life skills training during the program, totaling over eight hundred hours. 5. The Housing Authority assumed the functions of monitoring the two (2) covenant - restricted senior affordable housing rental projects (Heritage Place and Coventry Court) and two (2) loan- restricted affordable housing four - plexes. There are 53 affordable units (17 — very low; and 36 — low) and one manager's unit at Heritage Place. As of June 30, 2012, all 53 units were leased. Coventry Court began leasing in the first quarter of 2012. Upon completion, 153 of the 240 units will be affordable (36 — very low; 61 — low; and 56 — moderate). As of June 30, 2012, 35 very low, 61 low, and 6 moderate units were leased. The Residential Rehab Program for Multifamily housing requires 51% of the tenants to be moderate income eligible. Of the eight (8) loan- restricted units, six (6) are currently rented by very low income households and two (2) are rented by low income households. The following table summarizes activity by income category for Rental Housing activity: Rental Housing Income Level Rehab Senior Very Low Income 6 52 Low Income 2 97 Moderate Income 0 6 TOTAL 8 155