The URL can be used to link to this page

Home My WebLink AboutItem # 11 Housing Successor Annual Report - Exhibit A Report Date: December 22, 2016 To: Mayor and City Council Grant Yates, City Manager Barbara Leibold, City Attorney From: Jason Simpson, Assistant City Manager Subject: Housing Successor Annual Report for Fiscal Year 2015-16 ____________________________________________________________________________ Attached please find the Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) prepared pursuant to California Health and Safety Code Section 34176.1(f). This Report sets forth certain details of the Lake Elsinore Housing Successor (Housing Successor) activities during fiscal year 2015-2016 (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). HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2015-16 CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f) FOR THE CITY OF LAKE ELSINORE, CALIFORNIA 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). This Report sets forth certain details of the Lake Elsinore Housing Successor (Housing Successor) activities during fiscal year 2015-2016 (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 City staff and information contained in the independent audit of the Low and Moderate Income Housing Asset Fund for Fiscal Year 2015-2016. This Report conforms with and is organized into sections I. through XIII., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law: I. Amount Received pursuant to Section 34191. 4 (b)(3)(A). This section requires the disclosure of the amount the City received pursuant to Section 34191.4(b)(3)(A). The City of Lake Elsinore did not receive any payments pursuant to Section 34191.4(b)(3)(A) during fiscal 2015-16. 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. A total of $186,829 in interest earnings (including GASB 31 FMV adjustments) was deposited into the LMIHAF during the fiscal year. Of the total funds deposited into the LMIHAF, a total of $0 was deposited for items listed on the ROPS. Notation only: On July 1, 2016 $545,873 in SERAF payments was received but applies to FY2016-17. 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. HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 2 ___________________________________________________________________________ At the close of the fiscal year, the ending cash balance in the LMIHAF was $11,617,805, of which $1,053,645 was held for item 12 listed on the ROPS. The following table is the Balance Sheet as of June 30, 2016. Note that there is a dispute with the State Department of Finance with respect to certain loans receivable from the Successor Agency. Staff believes additional Redevelopment Property Tax Trust Funds (RPTTF) are owed to the Low and Moderate Income Housing Asset Fund (LMIHAF) by the Successor Agency, but the Department of Finance has denied recent RPTTF requests to make payments on that loan receivable held by the LMIHAF. 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. There were $49,189 in expenditures from the LMIHAF for monitoring and administration and $265,522 for Housing activities under a DDA during the fiscal year. V. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts. Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the LOW AND MODERATE INCOME HOUSING FUND (SARDA) BALANCE SHEET AS OF JUNE 30, 2016 ASSETS CASH AND INVESTMENTS 11,617,805.28$ LOAN RECEIVABLE FROM SUCCESSOR AGENCY 30,994,995.16 LOAN RECEIVABLE ‐ LAKEVIEW APARTMENTS 1,100,000.00 LOAN RECEIVABLE ‐ POTTERY COURT 9,737,000.00 LAND HELD FOR RESALE 48,368.54 TOTAL ASSETS 53,498,168.98$ LIABILITIES ACCOUNTS PAYABLE 18,403.87$ DA OBLIGATION ‐ LAING/SUMMERLY 1,186,406.00 TOTAL LIABILITIES 1,204,809.87 DEFERRED INFLOWS OR RESOURCES UNAVAILABLE REVENUE ‐ INTEREST ON LOANS RECEIVABLE 10,012,936.42 FUND BALANCE 42,280,422.69 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE 53,498,168.98$ HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 3 ___________________________________________________________________________ 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 purchased by the Housing Successor. Further, the value of loans and grants receivable is included in the reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor. 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. The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c) (2) during the fiscal year. 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. The Housing Successor is holding $1,186,406 for item 12 listed on the ROPS. These funds are held solely for purposes of affordable housing projects to be developed by a party to the Summerly DDA described in line 12 of the ROPS. The developer has submitted a proposal for an affordable housing development and is in the process of assembling additional financing for the project. VIII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. ASSET DESCRIPTION AMOUNT LOAN RECEIVABLE ‐ LAKEVIEW APARTMENTS 1,100,000$ LOAN RECEIVABLE SERAF 2,941,619 LOAN RECEIVABLE FROM SUCCESSOR AGENCY 30,994,995 LOAN RECEIVABLE ‐ POTTERY COURT 9,737,000 ACCRUED INTEREST RECEIVABLE 10,012,936 LAND HELD FOR RESALE 48,369 54,834,919$ HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 4 ___________________________________________________________________________ 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 housing asset(s) that were acquired prior to February 1, 2012 and compliance with the five-year period for initiating development activities: Address of Property Date of Acquisition Deadline to Initiate Development Activity Status of Housing Successor Activity 375-293-029 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. 375-293-030 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. Strickland Ave (APN 375- 321-029) 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. Strickland Ave (APN 375- 321-030) 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. Chaney St at Morton Ave (APN 375- 321-031) 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. Chaney St at Morton Ave (APN 375- 321-032) 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 5 ___________________________________________________________________________ Chaney St at Morton Ave (APN 375- 321-033) 10/23/2009 09/17/17 The housing successor is evaluating the feasibility of developing the parcel for housing affordable to extremely low income households. As of June 30, 2016, the Housing Successor does not own any real property acquired after February 1, 2012. 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. Replacement Housing: According to the former Redevelopment Agency’s (RDA) Redevelopment and Housing Implementation Plan for 2009-2014 (the “2014 Plan”), no replacement housing obligations were transferred to the Housing Successor. Inclusionary/Production Housing: According to the 2014 Plan, a replacement housing obligation of 357 units was transferred to the Housing Successor by the former RDA. The Housing Successor is in the process of updating its inclusionary housing obligation, because, though units affordable to low and very low income households have been constructed since 2009, there has been significant development of non-affordable housing, likely increasing the Housing Successor’s replacement housing obligation. The Housing Successor has completed or is in the process of negotiating the development several affordable housing developments which will satisfy a portion of the inclusionary housing obligation. The former RDA’s Implementation Plans are posted to the City’s website at www.lake- elsinore.org. X. Extremely-Low Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for a five-year period, with the period beginning January 1, 2014 and whether the statutory thresholds have been met. However, reporting of the Extremely-Low Income Test is not required until 2019. There is nothing to report at this time. HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 6 ___________________________________________________________________________ XI. Senior Housing Test: This section provides the percentage 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 ten 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, 2006 through June 30, 2016. The following provides the Housing Successor’s Senior Housing Test- Reporting requirements for Implementation Plans pursuant to CRL Section 33490 (a)(2)(C)(iv): Description 06- 07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 # of Assisted Senior Rental Units 0 0 0 0 0 0 0 0 0 0 # of Total Assisted Rental Units 78 78 78 228 228 339 339 339 339 339 Senior Housing Percentage 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% XII. Excess Surplus Test: This section provides the amount of excess surplus (unencumbered funds) in the LMIHAF, exceeding one million or the aggregate amount deposited in the fund over the preceding four fiscal years 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. The LMIHAF has had an excess surplus since June 30, 2015. At June 30, 2016, excess surplus was $10,828,859. In accordance with Health & Safety Code Section 34176.1(d), any excess surplus shall be encumbered within three fiscal years. The Housing Successor will meet the requirement to encumber the excess surplus within three fiscal years as during fiscal 2016-2017, the Housing Successor has encumbered or will encumber the excess surplus for the projects and in the amounts set forth below. HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING FUND FOR FISCAL YEAR 2015-16 Page 7 ___________________________________________________________________________ XIII. Inventory of Homeownership Units Subject to Covenants or Restrictions. This section provides an inventory of homeownership units assisted by the Housing Successor that are subject to covenants or restriction or to an adopted program that protects the investment of moneys from the LMIHAF. The Housing Successor does not have any homeownership units subject to covenants or restrictions. PERIOD AMOUNT FISCAL YEAR 2011‐2012 ‐$ FISCAL YEAR 2012‐2013 5,636,289 FISCAL YEAR 2013‐2014 3,952,097 FISCAL YEAR 2014‐2015 1,053,644 FISCAL YEAR 2015‐2016 186,829 TOTAL 10,828,859$ GREATER OF $1,000,000 or Previous Four Fiscal Years' Deposits 10,828,859$ Encumbered as of June 30, 2016 1,186,406$ Encumbered in Fiscal Year 2016‐17: C and C Housing DDLA 7,520,000$ The Cottages 2,122,453$ 10,828,859$ Excess Surplus (0)$