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HomeMy WebLinkAbout07 HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR FISCAL YEAR 2013-2014Agenda Item 7 Reviewed: AGENDAREPORT City Manager Finance Director N/A MEETING DATE: DECEMBER 16, 2014 TO: JEFFREY C. PARKER, CITY MANAGER & HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: TUSTIN HOUSING AUTHORITY SUBJECT: HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR FISCAL YEAR 2013 -2014 SUMMARY In accordance with Senate Bill 341's amendments to Health & Safety Code Section ( "HSC ") 34176, the Tustin Housing Authority, serving as the Housing Successor Agency to the former Tustin Community Redevelopment Agency, has prepared an annual report for filing with the Tustin Housing Authority Commission and the Tustin City Council. RECOMMENDATION It is recommended the Tustin Housing Authority Commissioners take the following actions: • Receive and file the Housing Successor Agency Annual Report for Fiscal Year ( "FY ") 2013 -2014 and transmit such report to the Tustin City Council. It is recommended the City Council take the following actions: • Receive and file the Housing Successor's Annual Report for FY 2013 -2014. • Direct that a copy of the Housing Successor Agency Annual Report be posted on the City of Tustin's website at www.tustinca.orq FISCAL IMPACT The only fiscal impact of this action has been the staff time necessary to prepare the annual report. Agenda Report December 16, 2014 Page 2 ALIGNMENT WITH STRATEGIC PLAN The Housing Successor Agency Annual Report documents how the provision of and management of Tustin's affordable housing contributes to Goal A of the City's Strategic Plan, enhancing the vibrancy and quality of life in all neighborhoods and areas of the community. BACKGROUND /DISCUSSION On March 15, 2011, the City Council approved Resolution No. 11 -20 establishing the Tustin Housing Authority ( "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 Housing Authority's assumption of assets and functions became effective February 1, 2012, establishing the Housing Authority as the Housing Successor Agency for the former Agency. On October 13, 2013, Senate Bill ( "SB ") 341 was chaptered into law, amending the Health & Safety Code Section ( "HSC ") 34176 to address particular provisions and functions related to the new housing successor entities of former redevelopment agencies. SB 341 requires all housing successor entities to file an annual report within six months after the end of each fiscal year ( "FY "), starting with the FY ending in 2014, and to provide an independent financial audit to the legislative body. The purpose is to provide the governing body of the housing successor an annual report on the housing assets and activities of the housing successor under Part 1.85, Division 24 of the HSC, in particular sections 34176 and 34176.1 (Dissolution Law). The Low and Moderate Income Housing Asset Fund ( "LMIHAF ") for FY 2013 -2014 was audited as part the City's annual independent audit prepared by White Nielson Diehl Evans LLP. The City's FY 2013 -2014 Comprehensive Annual Financial Report will be presented to the City Council in January, including the LMIHAF review. This Annual Report is separate from the audit and conforms with and is organized into sections I. through XI., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law: I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited. II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited. Agenda Report December 16, 2014 Page 3 III. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized. IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts. V. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing. VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project. VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project. VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor's progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor's plans to meet unmet obligations, if any. IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five year period, with the time period beginning January 1, 2014 and whether the statutory thresholds have been met. However, reporting of the Income Test is not required until 2019. X. Senior Housing Test: This section provides the percentage of units of deed - restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed - restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten -year period reviewed is January 1, 2004 to January 1, 2014 Agenda Report December 16, 2014 Page 4 XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor's plan for eliminating the excess surplus. Once the City Council receives and files the attached report, the report will be posted on the City's website at www.tustinca.org. The former redevelopment agency's Implementation Plans are currently posted on the City's website. Staff will be available to respond to any questions at the Housing Authority Commission and City Council meeting of December 16, 2014. Jerry Craig Economic D_ ev pm & using Manager Tustin Hous' A ority Housing Successor Agency FY 2013 -2014 Annual Report HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2013 -2014 PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f) FOR THE TUSTIN HOUSING AUTHORITY This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of December 16, 2014. This Report sets forth certain details of the Tustin Housing Authority (Housing Successor) activities during Fiscal Year 2013 -2014 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law). The following Report is based upon information prepared by Housing Successor staff and information contained within the independent financial audit of the City of Tustin's Low and Moderate Income Housing Asset Fund for Fiscal Year 2013 -2014 (Fiscal Year) as prepared by White Nielson Diehl Evans LLP (Audit), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I. through XI., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law: I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited. II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited. III. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized. IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts. Tustin Housing Authority Page 1 V. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing. VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project. VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project. VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor's progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor's plans to meet unmet obligations, if any. IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five year period, with the time period beginning January 1, 2014 and whether the statutory thresholds have been met. However, reporting of the Income Test is not required until 2019. X. Senior Housing Test: This section provides the percentage of units of deed - restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed - restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten -year period reviewed is July 1, 2004 to June 30, 2014. XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor's plan for eliminating the excess surplus. This Report is to be provided to the Housing Successor's governing body by December 31, 2014. In addition, this Report and the former redevelopment agency's pre - dissolution Implementation Plans are to be made available to the public on the City's website, www.tustinca.orq. Tustin Housing Authority Page 2 I. AMOUNT DEPOSITED INTO LMIHAF A total of $28,022 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, there are no funds held for items listed on the ROPS. II. ENDING BALANCE OF LMIHAF At the close of the Fiscal Year, the ending balance in the LMIHAF was $1,928,207, of which there are no funds held for items listed on the ROPS. III. DESCRIPTION OF EXPENDITURES FROM LMIHAF The following is a description of expenditures from the LMIHAF by category: IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the "statutory value of real property' means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor. Tustin Housing Authority Page 3 Monitoring & Administration Expenditures Fiscal Year $240,170 Homeless Prevention and Rapid Rehousing Services Expenditures $0 Housing Development Expenditures ➢ Expenditures on Low Income Units ➢ Expenditures on Very-Low Income Units ➢ Expenditures on Extremely -Low Income Units ➢ Total Housing Development Expenditures $0 Total LMIHAF Expenditures in Fiscal Year $240,170 IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the "statutory value of real property' means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor. Tustin Housing Authority Page 3 V. DESCRIPTION OF TRANSFERS The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year. VI. PROJECT DESCRIPTIONS The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS. VII. STATUS OF COMPLIANCE WITH SECTION 33334.16 Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property. With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset. The following provides a status update on the real property or properties housing asset(s) that were acquired prior to February 1, 2012 and compliance with five -year period: Address of Property Date of Acquisition Deadline to Initiate Status of Housing Development 14554 Newport 5/26/2011 N/A Sold to Moderate Avenue, #3, Tustin Income Family, (Moderate Income 12/2/2013 Unit The following provides a status update on the project(s) for property or properties that have been acquired by the Housing Successor using LMIHAF on or after February 1, 2012: Tustin H ousing Authori ty Page 4 of tatus of Housing tatus Succ uccessor Activity 7Avenue 7ort 8/9/13 sold to a 777 ncome 7household in 2015. Tustin H ousing Authori ty Page 4 VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the Fourth Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas (FY 2010-2011 to FY 2014- 2015) and the Second Five-Year Implementation Plan for the MCAS Tustin Redevelopment Project Area (FY 2008-2009 to FY 2012-2013) for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. The former redevelopment agency's Implementation Plans are posted on the City's website at www.tustinca.orcl, under Redevelopment. [There are n . o replacement housing obligations. Inclusionary/Production Housing. According to the Fourth Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas (FY 2010-2011 to FY 2014-2015) and the Second Five-Year Implementation Plan for the MCAS Tustin Redevelopment Project Area (FY 2008-2009 to FY 2012-2013) for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency's Implementation Plans are posted on the City's website at www.tustinca.orn, under Redevelopment. There are no inclusionary housing obligations. IX. EXTREMELY-LOW INCOME TEST Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the LMIHAF to be expended for development of rental housing affordable to and occupied by households earning 30% or less of the AMI. If the Housing Successor fails to comply with the Extremely-Low Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest fiscal year following the report on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance With the Extremely-Low Income requirement. This information is not required to be reported until 2019 for the 2014 — 2019 period. The Housing Successor Agency has utilized funds only for administration and monitoring of housing units subject to Affordable Housing Agreements of the former Agency. There were no funds expended for the development of rental housing during FY 2013-2014. X. SENIOR HOUSING TEST The Housing Successor is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 10 years in relation to the aggregate number of units of deed- restricted rental housing assisted by the Housing Successor, the former redevelopment agency Tustin Housing Authority Page 5 and /or City within the same time period. If this percentage exceeds 50 %, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed - restricted rental units. The following provides the Housing Successor's Senior Housing Test for the 10 year period of July 1, 2004 to June 30, 2014: Senior Housing Test # of Assisted Senior Rental Units July 1, 2004 to June 30, 2014 207 Heritage Place 54 Coventry Court 153 # of Total Assisted Rental Units 469 Amalfi ** 37 $867,455.01 Anton Legacy ** 225 Add: Deposits Senior Housing Percentage 44% ** Amalfi and Anton Legacy commenced construction prior to June 30, 2014. Units are deed - restricted as required by recorded DECLARATION OF AFFORDABLE HOUSING COVENANTS AND REGULATORY AGREEMENTS, but Housing Successor funds were not utilized for the construction. XI. EXCESS SURPLUS TEST Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the Housing Successor's preceding four Fiscal Years, whichever is greater. The following provides the Excess Surplus test for the preceding four Fiscal Years: Since the Excess Surplus calculation relates to a four year calculation and the Housing Successor has not been in existence for that period, the determination is that during this period there is no Excess Surplus. Tustin Housing Authority Page 6 FY i Year • r r Beginning Balance $7,900,055.85 $867,455.01 $1,760,319.58 N/A Add: Deposits $988,629.92 $940,128.48 $396,438.52 N/A (Less) ($8,021,230.76) ($47,263.91) ($564,839.06) N/A Expenditures Ending Balance $867,455.01 $1,760,319.58 $1,591,919.04 N/A Since the Excess Surplus calculation relates to a four year calculation and the Housing Successor has not been in existence for that period, the determination is that during this period there is no Excess Surplus. Tustin Housing Authority Page 6