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Home My WebLink About04 HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR FISCAL YEAR 2015-20164 Agenda Item Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: DECEMBER 20, 2016 TO: JEFFREY C. PARKER, CITY MANAGER & HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: TUSTIN HOUSING AUTHORITY SUBJECT: HOUSING SUCCESSOR AGENCY ANNUAL REPORT FOR FISCAL YEAR 2015-2016 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") 2015-2016 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 2015-2016. • 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 20, 2016 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 2015-2016 was audited as part the City's annual independent audit prepared by White Nielson Diehl Evans LLP. The City's FY 2015-2016 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 LIVIIHAF: 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 20, 2016 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. Vlll. 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, 2016 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 20, 2016 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, 2006 to January 1, 2016 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.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 20, 2016. Jerry Graig J nine Hernandez Economic;ev�.l pmt & Housing Manager anagement Assistant Tustin K6usjnb Authority Tustin Housing Authority Attachment: Housing Successor Agency FY 2015-2016 Annual Report