HomeMy WebLinkAbout09 HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR FISCAL YEAR 2014-2015tTY 0
(.. r AGENDA REPORT
ST
Agenda Item 9
Reviewed:
City Manager
Finance Director NA
MEETING DATE: DECEMBER 15, 2015
TO: JEFFREY C. PARKER, CITY MANAGER & HOUSING AUTHORITY
EXECUTIVE DIRECTOR
FROM: TUSTIN HOUSING AUTHORITY
SUBJECT: HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR
FISCAL YEAR 2014-2015
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") 2014-2015 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 2014-2015.
• Direct that a copy of the Housing Successor Agency Annual Report be posted on the
City of Tustin's website at www.tustinca.org
FISCAL IMPACT
The only fiscal impact of this action has been the staff time necessary to prepare the
annual report.
Agenda Report
December 15, 2015
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 2014-2015 was
audited as part the City's annual independent audit prepared by White Nielson Diehl
Evans LLP. The City's FY 2014-2015 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 XIII, inclusive, pursuant to Section 34176.1(f) of the Dissolution Law. Sections I
and XIII are new additions pursuant to the passage of AB 1793:
I. Amount Received Pursuant to Section 34191.4: This section provides a total
amount of funds received pursuant to Section 34191.4(b)(3)(A).
II. 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.
Agenda Report
December 15, 2015
Page 3
III. 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.
IV. 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.
V. 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.
VI. 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.
VII. 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.
VIII. 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.
IX. 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.
X. 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, 2015 and whether the statutory
thresholds have been met. However, reporting of the Income Test is not required until
2019.
XI. 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
Agenda Report
December 15, 2015
Page 4
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, 2005 to January 1, 2015
XII. 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.
XIII. Inventory of Homeownership Units: This section provides an inventory of
homeownership units assisted by the former redevelopment agency or the housing
successor that are subject to covenants or restrictions or to an adopted program that
protects the former redevelopment agency's investment of moneys from the Low and
Moderate Income Housing Fund pursuant to Section 33334.3(f).
Once the City Council receives and files the attached report, the report will be posted on
the City's website at www.tustinca.orq. 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 15, 2015.
Jerry Craigi Janine Hernandez
Economic Develo me ousing Manager LIVlanagement Assistant
Tustin Hous n'g'Authority Tustin Housing Authority
Afta he ment: Housing Successor Agency FY 2014-2015 Annual Report
HOUSING SUCCESSOR ANNUAL REPORT
REGARDING THE
LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2014-2015 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 15, 2015. This Report sets forth
certain details of the Tustin Housing Authority (Housing Successor) activities during Fiscal
Year 2014-2015 (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 2014-2015 (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. Sections I and XIII are new additions
pursuant to the passage of AB 1793:
I. Amount Received Pursuant to Section 34191.4: This section provides a total
amount of funds received pursuant to Section 34191.4(b)(3)(A).
II. 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.
III. 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.
IV. 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.
V. 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
VI. 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.
VII. 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.
VIII. 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.
IX. 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.
X. 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, 2015 and whether the statutory
thresholds have been met. However, reporting of the Income Test is not required until
2019.
XI. 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, 2005 to June 30, 2015.
XII. 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.
XIII. Inventory of Homeownership Units: This section provides an inventory of
homeownership units assisted by the former redevelopment agency or the housing
successor that are subject to covenants or restrictions or to an adopted program that
protects the former redevelopment agency's investment of moneys from the Low and
Moderate Income Housing Fund pursuant to Section 33334.3(f).
Tustin Housing Authority Page 2
This Report is to be provided to the Housing Successor's governing body by December 31, 2015.
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.org.
I. AZ���UNT ECEIVE� F'U SI_IANT Tia SE��TIC�rJ 3 1 tis 1 �1
The Housing Successor did not receive any funds pursuant to Section 34191.4(b)(3)(A).
IIo AMOUNT DEPOSITED INTO Im-WHAF
A total of $25,0.53 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.
III. E�JC�I('J�� :ALAN��E CSF L v IHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $1,681,664, of which
there are no funds held for items listed on the RODS.
I C>E�r-;-IF'Tlc��J ��F EXPE�JC�ITU�ES F'c� � L IHAF
The following is a description of expenditures from the LMIHAF by category:
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
Fiscal Year
$271,596
Monitoring & Administration Expenditures
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
$271,596
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
Statutory Value of Real Property Owned by Housing Authority $354,927
Value of Loans and Grants Receivable $1,049,733
Total Value of Housing Successor Assets $1,404,660
VI. 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.
`v'll. F'' EJECT C�ES�-:' IPTICi�fJ'y
The Housing Successor does not receive or hold property tax revenue pursuant to the FOPS.
V1I1I. _ fff1 1JF 41)
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:
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 Housing Authority Page 4
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(x) 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.org, under Successor Agency.
There are no replacement housing obligations.
Inclusionary/PrroducUon 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.org, under Successor Agency.
There are no inclusionary housing obligations.
X. EXTREMELY -LOW INCOME TEST
Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the
LIViIHAF 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
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 2014-2015.
period.
Tustin Housing Authority Page 5
The dousing Successor is to calculate the percentage of units of deed -restricted rental housing
restricted to seniors and assisted by the dousing 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 dousing Successor, the former redevelopment agency
and/or City within the same time period. If this percentage exceeds 50%, then the dousing
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, 2005 to June 30, 2015:
Housing Test
July 1,
2005Senior
207
# of Assisted Senior Rental Units
Heritage Place
54
Year
Coventry Court
153
9 of Tota0 Assusted RenW Unks
469
Amalfi
37
$1,760,319.58
Anton Legacy
225
$988,629.92
Senoor Housing percentage
44%
Maio", T11
Excess Surplus is defined in Section 34176.1(4) 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
g rester.
The following provides the Excess Surplus test for the preceding four Fiscal Years:
Given that the Housing Authority has 35 years remaining of monitoring our 270 plus affordable
housing units, and there is no other funding source for monitoring and administrative expenses,
the balance of funds is encumbered and there is no Excess Surplus.
Tustin Housing Authority Page 6
FY 2011/12
Year
(Beginning
Beginning Balance
$7,900,055.85
$867,455.01
$1,760,319.58
$1,591,919.04
Add: Deposits
$988,629.92
$940,128.48
$396,438.52
$27,713.49
(Less)
($8,021,230.76)
($47,263.91)
($564,839.06)
$262,030.54
Expenditures
Ending Balance
$867,455.01
$1,760,319.58
$1,591,919.04
$1,357,601.99
Given that the Housing Authority has 35 years remaining of monitoring our 270 plus affordable
housing units, and there is no other funding source for monitoring and administrative expenses,
the balance of funds is encumbered and there is no Excess Surplus.
Tustin Housing Authority Page 6
XI I. Tia' Y F Hip E��W JE' SHIP U�Jl�'
(A) Based on reporting requirements as of .dune 30, 2015, our inventory of homeownership units
is 305: 304 units with affordability restrictions; and one unit with a single family rehabilitation
loan.
(B) Since February 1, 2012, the number of units lost to the portfolio is four: one first time
homebuyer loan paid off on an affordable unit; two rehabilitation loans paid off on single family
units; and one rehabilitation loan on a single family unit lost to foreclosure.
(C) An amount of $24,862.20, was returned for the first time homebuyer loan, and an amount of
$12,272, was returned for the two rehabilitation loans.
(v) u Ile I usLin dousing Authority does i of contract with a..� outside entity to manage our units.
Tustin Housing Authority Page 7