2017 05 16 SA SpecialSUCCESSOR AGENCY 1 MAY 16, 2017
SPECIAL MEETING
NOTICE OF SPECIAL MEETING
OF THE SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY
TO THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF LA QUINTA AND TO
THE CITY CLERK/AUTHORITY SECRETARY:
NOTICE IS HEREBY GIVEN that a special meeting of the Successor Agency of
the City of La Quinta is hereby called to be held on May 16, 2017 commencing with
open session at 4:00 p.m. at La Quinta City Hall, 78-495 Calle Tampico, La Quinta,
California.
Dated: May 12, 2017 /s/ Linda Evans
L i n d a E v a n s , C h a i r p e r s o n
Attest:
______________________________
Susan Maysels
Successor Agency Secretary
DECLARATION OF POSTING
I, Susan Maysels, La Quinta Successor Agency Secretary, do hereby declare that the
foregoing notice for the Special La Quinta Successor Agency meeting of May 16, 2017,
was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and
on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111 on May
12, 2017.
DATED: May 12, 2017
Susan Maysels, Agency Secretary
La Quinta Successor Agency
SUCCESSOR AGENCY TO RDA AGENDA 1 MAY 16, 2017
SPECIAL MEETING
SUCCESSOR AGENCY
To The La Quinta Redevelopment Agency
AGENDA
CITY HALL COUNCIL CHAMBERS
78-495 Calle Tampico, La Quinta
SPECIAL MEETING
TUESDAY, MAY 16, 2017 AT 4:00 P.M.
CALL TO ORDER
ROLL CALL: Agency Members: Fitzpatrick, Peña, Radi, Sanchez, Chairperson Evans
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the Successor Agency on any matter
not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. The Successor Agency values your comments; however in
accordance with State law, no action shall be taken on any item not appearing on the
agenda unless it is an emergency item authorized by GC 54954.2(b).
CLOSED SESSION – None
CONFIRMATION OF AGENDA
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one
motion.
PAGE
1. APPROVE MINUTES OF JANUARY 17, 2017 5
Successor Agency agendas and staff
reports are now available on the City’s
web page: www.la-quinta.org
SUCCESSOR AGENCY TO RDA AGENDA 2 MAY 16, 2017
SPECIAL MEETING
2. RECEIVE AND FILE HOUSING SUCCESSOR ANNUAL REPORT FOR
FISCAL YEAR 2015/16 REGARDING THE LOW AND MODERATE
INCOME HOUSING ASSET FUND PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE SECTION 34176.1 (F) FOR THE LA QUINTA
HOUSING AUTHORITY
7
BUSINESS SESSION – None
STUDY SESSION – None
PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – None
CHAIR AND BOARD MEMBERS' ITEMS
REPORTS AND INFORMATIONAL ITEMS – None
ADJOURNMENT
*************************************
For information about the next special meeting of the City as Successor Agency to the
La Quinta Redevelopment Agency, please contact the City Clerk’s Office at 760-777-
7103.
DECLARATION OF POSTING
I, Susan Maysels, Agency Secretary of the City as Successor Agency to the La Quinta
Redevelopment Agency, do hereby declare that the foregoing agenda was posted near
the entrance to the Council Chambers at 78-495 Calle Tampico and on the bulletin
boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas and the Stater
Brothers Supermarket at 78-630 Highway 111, on May 12, 2017.
DATED: May 12, 2017
SUSAN MAYSELS, Agency Secretary
Successor Agency to the
La Quinta Redevelopment Agency
SUCCESSOR AGENCY TO RDA AGENDA 3 MAY 16, 2017
SPECIAL MEETING
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special
equipment is needed for the hearing impaired, please call the City Clerk’s Office at
777-7103, twenty-four (24) hours in advance of the meeting and accommodations
will be made.
If special electronic equipment is needed to make presentations to the Successor
Agency, arrangement should be made in advance by contacting the City Clerk's
Office at 777-7103. A one (1) week notice is required.
If background material is to be presented to the Successor Agency during a
meeting, please be advised that eight (8) copies of all documents, exhibits, etc.,
must be supplied to the City Clerk for distribution. It is requested that this take
place prior to the beginning of the meeting.
Any writings or documents provided to a majority of the Successor Agency
regarding any item on this agenda will be made available for public inspection at
the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta,
California, 92253, during normal business hours.
4
CITY AS SUCCESSOR AGENCY TO RDA 1 JANUARY 17, 2017
SPECIAL MEETING
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
TUESDAY, JANUARY 17, 2017
A Special Meeting of the La Quinta City Council in their capacity as Successor Agency
to the La Quinta Redevelopment Agency (SA) was called to order at 5:32 pm by
Chairperson Evans.
PRESENT: Agency Members Fitzpatrick, Peña, Radi, Sanchez, Chair Evans
ABSENT: None
CLOSED SESSION – None
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None
CONFIRMATION OF AGENDA – Confirmed
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None
CONSENT CALENDAR
1.APPROVE MINUTES OF NOVEMBER 1, 2016
MOTION – A motion was made and seconded by Agency Members Peña/Radi to
approve the Consent Calendar as submitted. Motion passed unanimously.
BUSINESS SESSION
1.ADOPT RESOLUTION APPROVING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE OF THE FORMER LA QUINTA REDEVELOPMENT AGENCY FOR THE
PERIOD OF JULY 1, 2017 TO JUNE 30, 2018
MOTION – A motion was made and seconded by Agency Members Radi/Peña to adopt
Resolution No. SA 2017-001 as recommended:
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULE 17-18 FOR THE PERIOD OF JULY 1, 2017 THROUGH
JUNE 30, 2018
Motion passed unanimously.
2. ADOPT RESOLUTION APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE
BUDGET FOR THE PERIOD OF JULY 1, 2017 TO JUNE 30, 2018
CONSENT CALENDAR ITEM NO. 1
5
CITY AS SUCCESSOR AGENCY TO RDA 2 JANUARY 17, 2017
SPECIAL MEETING
MOTION – A motion was made and seconded by Agency Members Fitzpatrick/Peña to
adopt Resolution No. SA 2017-002 as recommended:
A RESOLUTION OF THE CITY OF LA QUINTA ACTING AS THE SUCCESSOR
AGENCY TO LA QUINTA REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY
1, 2017 THROUGH JUNE 30, 2018
Motion passed unanimously.
STUDY SESSION – None
PUBLIC HEARINGS – None
DEPARTMENTAL REPORTS – None
CHAIR AND AGENCY MEMBERS' ITEMS – None
REPORTS AND INFORMATIONAL ITEMS – None
ADJOURNMENT
There being no further business, it was moved and seconded by Agency Members
Radi/Peña to adjourn at 5:35p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Agency Secretary
6
City of La Quinta
SUCCESSOR AGENCY MEETING: May 16, 2017
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE HOUSING SUCCESSOR ANNUAL REPORT FOR FISCAL
YEAR 2015/16 REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1 (F) FOR THE LA
QUINTA HOUSING AUTHORITY
RECOMMENDATION
Receive and file the La Quinta Housing Successor Annual Report regarding the Low and
Moderate Income Asset Fund pursuant to California Health and Safety Code Section
34176.1 (f).
EXECUTIVE SUMMARY
•The Housing Successor Annual Report (Report) is part of a State requirement for
Housing Successors to Redevelopment Agencies.
•The Report provides a comprehensive representation of the City’s housing assets
and activities.
•The Report will be posted on the City’s website and filed with the City Clerk.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
The Report must provide the Housing Successor’s Low and Moderate Income Housing
Asset Fund (LMIHAF) balance, deposits, expenditures, transfers, current projects,
acquisitions, obligations, income test, senior housing test, and excess surplus test.
The Report for 2015/16 presents the following findings:
•$6,015,322 was deposited into the LMIHAF during the fiscal year. These deposits
originated from rental revenues generated from the Housing Successor’s-owned
affordable housing properties and a $5,000,000 loan repayment from Coral
Mountain. No money was designated for items listed on the Recognized
Obligations Payment Schedule (ROPS).
•$727,431 was expended from LMIHAF for maintenance, monitoring and
administration expenses.
•$67,061,169 in assets owned by the Housing Successor was reported, assets
consist of notes and loans, land, building and improvements.
CONSENT CALENDAR ITEM NO. 2
7
• Senior Housing Test reflects that 40.2 percent of 896 total Housing Successor
Assisted rental units are restricted to seniors. If funding becomes available, the
Housing Successor can expend funds to develop or secure an additional 88
senior units.
• The Housing Successor reports no computed excess surplus; therefore, no plan
exists for eliminating the excess surplus.
The Report has been submitted to the California Department of Housing and
Community Development to comply with California Health and Safety Code Section
34176.1(f).
ALTERNATIVES
As this is a State requirement, there is no other alternative.
Prepared by: Gil Villalpando, Management Specialist
Approved by: Frank J. Spevacek, City Manager
Attachment: 1. La Quinta Housing Successor Annual Report
8
HOUSING SUCCESSOR ANNUAL REPORT
December 30, 2016
LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2015-16
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE
LA QUINTA HOUSING AUTHORITY
9
HOUSING SUCCESSOR ANNUAL REPORT TABLE OF CONTENTS
INTRODUCTION ............................................................................................................................. 1
AMOUNT DEPOSITED INTO LMIHAF ........................................................................................... 1
ENDING BALANCE OF LMIHAF ................................................................................................... 1
DESCRIPTION OF EXPENDITURES FROM LMIHAF ................................................................... 2
TABLE 1: DESCRIPTION OF LMIHAF EXPENDITURES
STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR ................................. 2
TABLE 2: STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR
DESCRIPTION OF TRANSFERS ................................................................................................... 2
PROJECT DESCRIPTIONS ............................................................................................................ 2
TABLE 3: PROJECT DESCRIPTIONS
STATUS OF COMPLIANCE WITH SECTION 33334.16................................................................ 3
TABLE 4: SECTION 33334.16 COMPLIANCE
DESCRIPTION OF OUTSTANDING OBLIGATIONS UNDER SECTION 33413. ......................... 4
INCOME TEST ................................................................................................................................ 4
SENIOR HOUSING TEST ............................................................................................................... 5
TABLE 5: SENIOR HOUSING TEST
EXCESS SURPLUS TEST .............................................................................................................. 5
TABLE 6: EXCESS SURPLUS TEST
10
Housing Successor Annual Report
December 30, 2016
LA QUINTA HOUSING AUTHORITY
Page 1
INTRODUCTION
This Housing Successor Annual Report (“Report”) addresses the requirements of
California Health and Safety Code Section 34176.1(f) regarding the Low and Moderate
Income Housing Asset Fund (“LMIHAF”). This Report outlines the financial and housing
covenant details of the La Quinta Housing Authority (“Housing Successor”) for 2015-16
(the “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”).
This report includes discussion on the deposits to, ending balance of, and expenditures
from the LMIHAF. A description of the Housing Successor’s assets, and any transfers of
assets to other housing successor agencies are addressed as well. The report also
discusses the Housing Successor’s current projects, acquisitions of any real property
since February 1, 2012, or any outstanding obligations. Finally, as required by law, three
separate test are discussed – the income test, senior housing test, and excess surplus
test.
This Report is to be provided to the Housing Successor’s governing body by December
31, 2016 (six months after the end of the Fiscal Year). 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. (http://www.la-quinta.org)
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 $6,015,322 was deposited into the LMIHAF during the Fiscal Year. Of the total
funds deposited into the LMIHAF, a total of $0 was held for items listed on the ROPS.
These deposits originated from rental revenues generated at City-owned affordable
housing properties and a $5,000,000 loan repayment from Coral Mountain.
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.
At the close of the Fiscal Year, the ending balance in the LMIHAF was $17,330,789, of
which $0 is held for items listed on the ROPS.
11
Housing Successor Annual Report
December 30, 2016
LA QUINTA HOUSING AUTHORITY
Page 2
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 was a total of $727,431
expended from the LMIHAF, divided into the following categories:
TABLE 1: DESCRIPTION OF LMIHAF EXPENDITURES
Description of Expenditures Total Expenditures
Maintenance, Monitoring and Administration Expenditures $727,431
Homeless Prevention and Rapid Rehousing Services Expenditures $0.00
Housing Development Expenditures (Total of Next Three Lines) $0.00
Expenditures on Low Income Units $0.00
Expenditures on Very Low Income Units $0.00
Expenditures on Extremely Low Income Units $0.00
Total LMIHAF Expenditures in Fiscal Year $727,431
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.
TABLE 2: STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR
Asset Type Statutory Value of Assets
Notes and Loans $34,274,203
Land $33,367,241
Building and Improvements $3,478,579
Accumulated Depreciation $1,092,807
Total Assets $67,061,169
DESCRIPTION OF TRANSFERS
The Housing Successor did not make any transfers in the Fiscal Year.
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 following
is a description of project(s) for which the Housing Successor receives or holds property
tax revenue pursuant to the ROPS as well as the status of the project(s):
TABLE 3: PROJECT DESCRIPTIONS
Project Name Status
Washington Street Apartments In position to begin vertical construction;
seeking new funding mechanisms.
Washington Street Apartments
Washington Street Apartments (“WSA”) is a 72 unit single-story apartment complex
affordable to seniors and disabled adults with household incomes ranging from
extremely low income to low income. The project consists entirely of one-bedroom
12
Housing Successor Annual Report
December 30, 2016
LA QUINTA HOUSING AUTHORITY
Page 3
apartments. Rents are subsidized pursuant to the US Department of Agriculture Rural
Development program.
The Redevelopment Agency acquired WSA and a vacant adjacent parcel in 2007 with
the intention of substantially rehabilitating the existing units and developing an additional
68 units. The sources of development financing were proposed to be a combination of
2004 and 2011 bond proceeds. Pursuant to ROPS 13-14B, the project shall be
developed with $20,017,753 in bond proceeds. Presently, the rehabilitation of the
existing units and development of additional units is unable to proceed until alternate
financing sources become available to replace funding that was lost as a result of a
determination by the Department of Finance to not allow 2011 bond proceeds. City Staff
has been working with an Affordable Housing Developer to secure 9% tax credit
financing to replace the use of 2011 bond proceeds. A combination of housing funds,
bond proceeds, and tax credit financing will be used to pay for design, architectural,
engineering, and project management services in addition to vertical construction and
rehabilitation of WSA.
The former Redevelopment Agency acquired WSA pursuant to California
Redevelopment Law Health and Safety Code Section 33334.1. Health and Safety Code
Section 33334.16 required former redevelopment agencies to initiate activities, such as
zone changes or disposition and development agreements within five years of acquiring
a property. Pursuant to Health and Safety Code Section 33334.16, the legislative body is
authorized to extend the deadline to initiate activities by an additional five years upon
affirming the intention to develop housing affordable to households of low and moderate
income. In 2011, the Housing Authority extended development of WSA by adopting
Resolution 2011-070.
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.
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 period 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 of 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:
13
Housing Successor Annual Report
December 30, 2016
LA QUINTA HOUSING AUTHORITY
Page 4
TABLE 4: SECTION 33334.16 COMPLIANCE
Address of Property Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
Dune Palms Road and
Westward Ho Drive
(APN 600-030-004)
6/8/2006 6/8/2016 City has initiated site
programming and developed
conceptual plans
Dune Palms Road and
Westward Ho Drive
(APN 600-030-009)
6/13/2006 6/13/2016 City has initiated site
programming and developed
conceptual plans
Dune Palms Road and
Westward Ho Drive
(APN 600-030-003)
1/17/2007 1/17/2017 City has initiated site
programming and developed
conceptual plans
Dune Palms Road and
Westward Ho Drive
(APN 600-030-008)
4/27/2007 4/27/2017 City has initiated site
programming and developed
conceptual plans
Washington Street and Hidden
River Road
(APN 609-040-028)
10/15/2007 10/15/2017 City has received approval of
Development Plan and
Conditional Use Permit
Avenida Mendoza and
Avenida Montezuma
(APN 773-077-014)
11/30/2007 11/30/2017 City has initiated site
programming and developed
conceptual plans
Dune Palms Road and
Westward Ho Drive
(APN 600-030-002)
6/12/2009 6/12/2019 City has initiated site
programming and developed
conceptual plans
Dune Palms Road and
Westward Ho Drive
(APN 600-030-005)
1/26/2010 1/26/2020 City has initiated site
programming and developed
conceptual plans
Health and Safety Code Section 33334.16 required former redevelopment agencies to
initiate activities, such as zone changes or disposition and development agreements
within five years of acquiring a property. Pursuant to Health and Safety Code Section
33334.16, the legislative body is authorized to extend the deadline to initiate activities by
an additional five years upon affirming the intention to develop housing affordable to
households of low and moderate income. In 2011, the Housing Authority extended
development of the abovementioned properties by adopting Resolution 2011-070.
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. The Housing Successor did not acquire property on or after February 1, 2012.
DESCRIPTION OF OUTSTANDING OBLIGATIONS UNDER SECTION 33413.This section
describes the outstanding inclusionary 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
plans to meet unmet obligations, if any. The housing successor does not have any
obligations to fulfill under Section 33413.
INCOME TEST
14
Housing Successor Annual Report
December 30, 2016
LA QUINTA HOUSING AUTHORITY
Page 5
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 time
period beginning on January 1, 2014 and whether the statutory thresholds have been
met. Reporting of the Income Test is not required until 2019.
The Housing Successor has not historically tracked expenditures on extremely low
income households. At this time, the Housing Successor does not possess sufficient
information to provide details of expenditures on extremely low income households over
the last five years. Expenditures in the previous Fiscal Year can be distributed based on
known household incomes (refer to Table 1 for the distribution of expenditures by
household income level for the Fiscal Year). Going forward, however, the Housing
Successor will be tracking expenditures by income level such that the Housing Authority
can report on expenditures by household income over a five year period.
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
2006 to 2016.
TABLE 5: SENIOR HOUSING TEST
Unit Category # of Units
Assisted Senior Rental Units 360
Total Assisted Rental Units 896
Senior Housing Test (%) 40.2%
EXCESS SURPLUS TEST
The Housing Successor does not presently retain a computed excess surplus pursuant
to Health and Safety Code Section 34176.1. For the purpose of this section of the
Report, pursuant to Section 34176.1(d), “’excess surplus’ shall mean 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 greater.” If the Unencumbered Amount (See Table 6) does
not exceed the greater of the aggregate amount deposited into the LMIHAF during the
preceding four fiscal years or $1,000,000, whichever is greater, there is no excess
surplus. The Housing Successor computed excess surplus is noted below in table 6.
TABLE 6: EXCESS SURPLUS TEST
FY 2014-15
Unencumbered Amount (Available Housing Successor Funds) $8,985,687
Aggregate Deposited for Last Four Years $27,087,391
Greater of Aggregate Deposited for Last Four Years or $1,000,000 $27,087,730
Computed Excess Surplus None
15
16