2014 11 18 HAHOUSING AUTHORITY
AGENDA
CITY HALL COUNCIL CHAMBERS
788-495 Calle Tampico La Quinta
SPECIAL MEETING ONN TUESDAY, NOVEMBER 18, 2014 AT 4:00 P.M.
CALL TO ORDER
ROLL CALL:
Authority Members: Adolph,, Evans, Franklin, Osbborne, Chairperson Henderson
VERBAL ANNOUNCEMENT ũũ AB 23 \[AUTHORIITY SECRETARY\]
CLOSED SESSION
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this ttime, members of the ppublic may address thee Housing AAuthority onn any matteer not
listed onn the agendaa. Please ccomplete a "request to speak" formm and limit your commments
to three minutes. The Housinng Authorityy values your commennts; howeveer in accorddance
with Staate law, no action shall be taken oon any item not appearring on the agenda unleess it
is an emergency item authorizeed by GC 544954.2(b).
CONFIRRMATION OOF AGENDDA
ANNOUUNCEMENTTS, PRESENNTATIONSS, AND WRRITTEN COMMUNICAATIONS -
NNONE
CONSENNT CALENDAR
NOTE: CConsent Calendar itemss are routine in nature and can be approved bby one motion.
PPAGE
4
1. APPROVEE MINUTESS OFOCTOOBER 21, 22014
2. APPROVEE THE HHOUSING SUCCESSSOR ANNNUAL REPPORT 6
REGARDINNG THE LLOW ANDD MODERAATE INCOOME HOUSSING
HOUSING AUTHORITY AAGENDA 1
NOVEMBEER 14, 2014
ASSET FUND PURSUANT TO CALIFORNIA HEALTH AND
SAFETY CODE SECTION 34176.1(F) FOR THE LA QUINTA
HOUSING AUTHORITY
BUSINESS SESSION ũ MNMD
STUDY SESSION ũ MNMD
REPORTS AND INFORMATIONAL ITEMS - NONE
DEPARTMENTAL REPORTS - NONE
CHAIR AND BOARD MEMBERS' ITEMS ũ MNMD
PUBLIC HEARINGS ũ MNMD
ADJOURNMENT
The next regular quarterly meeting of the Housing Authority will be held on January
20, 2014 at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
DECLARATION OF POSTING
I, Susan Maysels, Authority Secretary of the La Quinta Housing Authority, do
hereby declare that the foregoing agenda for the La Quinta Housing Authority was
posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on
the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on
November 14, 2014
DATED: November 14, 2014
SUSAN MAYSELS, Authority Secretary
La Quinta Housing Authority
HOUSING AUTHORITY AGENDA 2
NOVEMBER 14, 2014
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special
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777-7103, twenty-four (24) hours in advance of the meeting and accommodations
will be made.
Any writings or documents provided to a majority of the Housing Authority
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.
HOUSING AUTHORITY AGENDA 3
NOVEMBER 14, 2014
CONSENT:1
HOUSING AUTHORITY MINUTES
TUESDAY, OCTOBER 21, 2014
A regular meeting of the La Quinta Housing Authority was called to order at 5:54 p.m.
by Chairperson Henderson.
PRESENT: Authority Members Adolph, Evans, Franklin, Osborne, Chair Henderson
ABSENT: None
VERBAL ANNOUNCEMENT AB 23
was made by the Authority Secretary
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
None
CONFIRMATION OF AGENDA
Confirmed
CONSENT CALENDAR
1. APPROVE MINUTES OF JULY 15, 2014
MOTION A motion was made and seconded by Authority Members Evans/Franklin to
approve the Consent Calendar as recommended. Motion passed unanimously.
BUSINESS SESSION
None
REPORTS AND INFORMATION ITEMS
None
CHAIR AND BOARD MEMBERS' ITEMS
None
PUBLIC HEARINGS
None
ADJOURNMENT
There being no further business, it was moved and seconded by Authority Members
Franklin/Evans to adjourn at 5:55 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Authority Secretary
La Quinta Housing Authority
HOUSING AUTHORITY MINUTES 1 OCTOBER 21, 2014
CITY MEETING DATE: November 18, 2014
ITEM TITLE: APPROVAL OF HOUSING SUCCESSOR
ANNUAL REPORT 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
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 2
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve 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:
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requirement for Housing Successors to Redevelopment Agencies. The Report
must be presented to the Housing SubbdrrnqŬr fnudqmhmf ancx vhsghm rhw
months of the end of each fiscal year.
The Report provides the Housing Authority a comprehensive representation
ne sgd BhsxŬr gntrhmf assets and activities.
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website and flied with the State Department of Housing and Community
Development (HCD).
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
In October 2013, the Governor approved Senate Bill 341, which requires the
Housing Successor to the La Quinta Redevelopment Agency to submit annual
reports. The La Quinta Housing Authority is the Housing Successor. The report
6
ltrs oqnuhcd sgd Gntrhmf RtbbdrrnqŬr Knw and Moderate Income Housing Asset
Fund balance, deposits, expenditures, transfers, current projects, acquisitions,
obligations, income test, senior housing test, and excess surplus test. The Report
must be presented to the Housing SuccerrnqŬr fnudqmhmf ancx vhsghm rhw lnmsgr
of the end of each fiscal year.
The Housing Successor Annual Report for Fiscal Year 2013/2014 Fiscal Year for
the City of La Quinta Housing Authority (Attachment 1) reflects the following
findings:
A total of $1,008,204 was deposited into the Low and Moderate Income
Housing Asset Fund (LMIHAF), a majority of the deposits originated from
rental revenue generated by City-owned affordable housing properties (28
cove homes and 72 Washington Street Apartment Units).
A total of $606,109 was expended from the LMIHAF for maintenance,
monitoring and administration expenses.
A total of $71,045,715 in assets owned by the Housing Successor was
reported, assets consist of notes and loans, land, building and improvements.
Senior Housing Test reflects that 41.4 percent of 868 total Housing
Successor Assisted rental units are restricted to seniors. If funding becomes
available, the Housing Successor can expend funds for the development of
an additional 74 senior units.
The Housing Successor reports no computed excess surplus; therefore no
plan exists for eliminating the excess surplus.
ALTERNATIVES:
The Housing Authority Board may elect to delay, modify, or reject the Annual
Report and direct staff accordingly.
Report prepared by: Les Johnson, Community Development Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Housing Successor Annual Report
7
ATTACHMENT 1
HOUSING SUCCESSOR ANNUAL REPORT
November 13, 2014
LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2013-14
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE
LA QUINTA HOUSING AUTHORITY
8
9
HOUSINGSUCCESSORANNUALREPORTTABLEOFCONTENTS
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. ......................... 5
INCOME TEST ................................................................................................................................ 5
SENIOR HOUSING TEST ............................................................................................................... 5
TABLE 5: SENIOR HOUSING TEST
EXCESS SURPLUS TEST .............................................................................................................. 5
TABLE 6: EXCESS SURPLUS TEST
10
11
Housing Successor Annual Report
November 13, 2014
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 2013-14
(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.
At the time this Report was drafted, the Housing Successor contracted with Lance, Soll
& Lunghard, LLP (“Auditor”) to prepare a compliance audit of the City’s Housing
Successor Funds. The Audit is expected to be complete in December, 2014, however
the audited figures were provided by the Auditor for the purpose of this report.
This Report must be provided to the Housing Successor’s governing body by December
31, 2014 (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 $1,008,204 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.
The majority of these deposits originated from rental revenues generated at City-owned
affordable housing properties.
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 $5,085,847, of
which $0 is held for items listed on the ROPS.
LA QUINTA HOUSING AUTHORITY
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Housing Successor Annual Report
November 13, 2014
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 $606,109
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 $606,109
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 $606,109
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 $33,454,586
Land $33,367,239
Building and Improvements $3,478,579
Accumulated Depreciation $745,311
Total Assets $71,045,715
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.
Coral Mountain Construction complete; project is fully occupied
(176 units affordable to very low, low and
moderate income households)
LA QUINTA HOUSING AUTHORITY
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Housing Successor Annual Report
November 13, 2014
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
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. 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 the determination by
DOF to not allow the use of 2011 bond proceeds. Pursuant to ROPS 13-14B, the project
shall be developed with $20,017,753 in bond proceeds. The bond proceeds 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.
Coral Mountain Apartments
The Development and Disposition Agreement for Coral Mountain was approved by the
City Council via Resolution 2011-003 and effective January 4, 2011. The developer
completed construction of 176 units in 2014. Of the 176 units, 36 units are restricted to
very low income households, 138 units are restricted to low income households, and 2
are restricted to moderate income households. The project was financed with a
combination of a construction loan from Citi Bank ($24,400,000), California Tax Credit
Allocation Committee 4% Tax Credits ($16,816,069), and a loan from the La Quinta
Housing Authority ($29,000,000).
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.
LA QUINTA HOUSING AUTHORITY
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Housing Successor Annual Report
November 13, 2014
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:
TABLE 4: SECTION 33334.16 COMPLIANCE
Address of Property Date of Deadline to Status of Housing Successor
Acquisition InitiateActivity
Development
Activity
Dune Palms Road and 6/8/2006 6/8/2016 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-004) conceptual plans
Dune Palms Road and 6/13/2006 6/13/2016 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-009) conceptual plans
Dune Palms Road and 1/17/2007 1/17/2017 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-003) conceptual plans
Dune Palms Road and 4/27/2007 4/27/2017 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-008) conceptual plans
Washington Street and Hidden 10/15/2007 10/15/2017 City has received approval of
River Road Development Plan and
(APN 609-040-028) Conditional Use Permit
Avenida Mendoz and Avenida 11/30/2007 11/30/2017 City has initiated site
Montezumaprogramming and developed
(APN 773-077-014) conceptual plans
Dune Palms Road and 6/12/2009 6/12/2019 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-002) conceptual plans
Dune Palms Road and 1/26/2010 1/26/2020 City has initiated site
Westward Ho Drive programming and developed
(APN 600-030-005) 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.
LA QUINTA HOUSING AUTHORITY
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Housing Successor Annual Report
November 13, 2014
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
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
January 1, 2004 to January 1, 2014.
TABLE 5: SENIOR HOUSING TEST
Unit Category # of Units
Assisted Senior Rental Units 360
Total Assisted Rental Units 868
Senior Housing Test (%) 41.4%
EXCESS SURPLUS TEST
The Housing Successor does not presently retain a computed excess surplus pursuant
to
LA QUINTA HOUSING AUTHORITY
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Housing Successor Annual Report
November 13, 2014
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 does not currently have a computed excess surplus.
TABLE 6: EXCESS SURPLUS TEST
FY 2013-14
Unencumbered Amount (Available Housing Successor Funds) $3,001,795
Aggregate Deposited for Last Four Years $21,099,508
Greater of Aggregate Deposited for Last Four Years or $1,000,000 $21,099,508
Computed Excess Surplus None
LA QUINTA HOUSING AUTHORITY
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