Report to Housing Authority
Tuesday, February 07, 2017
Consent
SUBJECT:
Title
SUBMITTAL OF THE CARSON HOUSING AUTHORITY'S ANNUAL REPORT AS REQUIRED BY STATE SENATE BILL 341 (HOUSING AUTHORITY)
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I. SUMMARY
Following the dissolution of redevelopment in California a number of bills were passed by the state to clarify certain provisions of Assembly Bill X1 26 (the “Dissolution Act”). Under the Dissolution Act, housing successors received housing assets of their former redevelopment agencies and were obligated to monitor existing housing assets and meet the housing requirements of their former redevelopment agencies. Senate Bill 341 (SB 341) was enacted in 2013 and imposed new housing requirements on housing successors. The City of Carson (City) elected to have the Carson Housing Authority (Authority) serve as the housing successor to the former Carson Redevelopment Agency. As part of the new requirements under SB 341, the Authority must provide an annual housing report (Annual Report) to the Authority Board and post the report online. The Authority’s Annual Report is provided in this staff report as Exhibit No. 1.
II. RECOMMENDATION
Recommendation
RECEIVE and FILE.
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III. ALTERNATIVES
TAKE another action the Board deems appropriate.
IV. BACKGROUND
The Authority’s Annual Report provides information regarding the Authority’s activities in Fiscal Year 14-15. The report includes information on housing fund expenditures, real property held by the Authority and expenditure targeting by income level. A summary of key sections in the Authority’s Annual Report is provided below; please refer to Exhibit No. 1 for details.
• Housing Fund Deposits: Amounts deposited by the Authority into the housing asset fund for the entire Fiscal Year 14-15 was $952,425.
• Housing Fund Balance: The balance in the housing asset fund as of June 30, 2015 was $22.7 million, the majority of the funds are bond proceeds issued in 2010 for housing purposes.
• Annual Expenditures: Fiscal Year 14-15 expenditures for housing included $3.13 million in costs for the acquisition of property for development of Bella Vita, a 64-unit senior affordable housing community located at 401 Sepulveda Blvd. (Bella Vita).
• Real Property: The statutory value of land held for resale by the Authority in Fiscal Year 14-15 was $8.0 million.
• ROPS Funding for Housing: There are two projects that are housing related enforceable obligations and are funded through the ROPS process, namely, they are annual rent subsidies for two affordable housing communities. Funding from the ROPS for these items totaled $213,132 in Fiscal Year 14-15.
• Homeownership Unit Inventory: As of June 30, 2015, there remained 85 homeowner units that had received assistance from the Authority, or the former redevelopment agency, and had active deed restrictions recorded against the property.
It is important to note that in addition to requiring the Authority to provide the Annual Report, the Authority must also comply with new spending limits. Under SB 341 the Authority is required to spend 80 percent of its funds on households earning 60 percent or less of the area median income. This differs from previous requirements when expenditures for moderate income households were allowed.
There is also a new requirement for complying with age restrictions. If the number of assisted units that are restricted to seniors exceeds 50 percent of the units assisted within a 10-year rolling period, the Authority cannot assist any additional senior housing projects until the number of family units is at least 50 percent of the total units assisted. For the Authority, the number of assisted rental projects that were constructed within this timeframe that are restricted to seniors currently equals less than the 50 percent maximum. However, when the Bella Vita senior housing project is completed, the percentage of age restricted units will increase to over 50 percent. As the Authority is currently in the process of providing assistance to two new family low income housing projects, the Authority is, and is expected to continue to be, in compliance with this requirement. For the 10-year rolling period ending in 2015, 45.2 percent of the units assisted by the Authority were senior units.
Information from the Authority’s audited financial statements (Exhibit No. 2), as provided in the City’s Comprehensive Annual Financial Report (CAFR), and other City and Authority resources, was used to complete the Annual Report.
The Authority’s Annual Report will be posted online as required by SB 341.
V. FISCAL IMPACT
None.
VI. EXHIBITS
1. Annual Report. (pgs. 4 - 19)
2. Authority Audited Financial Statements from the City’s CAFR. (pgs. 20-25)
Prepared by: Amelia Soto, A/Project Manager