Report to Housing Authority
Tuesday, May 02, 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 15-16. 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 15-16 was $1.71 million.
• Housing Fund Balance: The balance in the housing asset fund as of June 30, 2016 was $22.9 million, the majority of the funds are bond proceeds issued in 2010 for housing purposes.
• Real Property: The statutory value of land held for resale by the Authority in Fiscal Year 15-16 was $3.14 million.
• ROPS Funding for Housing: There are two housing related enforceable obligations that are funded through the ROPS process; 1) debt service for the Authority’s housing bonds; and 2) annual rent subsidies for two affordable housing communities. Previously, funds for debt service on the 2010 Housing Bonds were transferred from the ROPS, via the Successor Agency, to the Housing Authority for payment. Effective in 2014-15, those costs are being paid directly by the Successor Agency. Funding from the ROPS for the rent subsidies totaled $210,475 in Fiscal Year 15-16.
• Homeownership Unit Inventory: As of June 30, 2016, there were 81 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 10-year rolling period ending in 2016, 37.3 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 - 20)
2. Authority’s Audited Financial Statements from the City’s CAFR. (pgs. 21-122)
Prepared by: Amelia Soto