2018 04 18 HC Special1
AFFORDABLE
HOUSING
LA QUINTA HOUSING AUTHORITY
WHAT IS AFFORDABLE
HOUSING?
Any housing that has rent or sales price restrictions
Common income categories:
• Extremely Low Income: 0-30% of Area Medina Income
(AMI)
• Very Low Income: 30% to 50% of AMI
• Lower Income: 50% to 80% of AMI; the term may also
be used to mean 0% to 80% of AMI
• Moderate Income: 80% to 120% of AMI
2
WHAT ARE AFFORDABLE
HOUSING COST?
Affordable housing cost:
- Not exceed more than 30% of gross household income
- Includes rent or mortgage payments, common utilities
and property taxes and insurance on owner-occupied
housing.
2017 Riverside County Income Limits
3
WHAT FUNDS DO WE HAVE?
•Housing Fund
•Low-Moderate Income
•2011 Bonds
HOUSING FUND (241)
Revenue from:
-Previously owned Washington Street Apartments
- La Quinta Rental Properties
*Washington Street Apartments will go away next fiscal
year
Cash: $10,114,006
Revenues: $1,012,800
Expenses: ($1,192,920)
Ending Balance: $9,933,886
4
Development Guidelines Summarized:
• 20% of the development must be for those that are
considered low income
• 1/2 of the development must be for those that are
considered to be very low income
• Once a year the Housing Authority must file with the
clerk and the Department of Housing a report of its
activities the proceeding year
• Must pay prevailing wage for construction costs
HOUSING FUND (241)
HOUSING FUND (241)
Health and Safety Codes:
34312.3 (c) (1) (A)
34312.3 (2) (A)
34314
34328
5
LOW - MODERATE HOUSING
FUND (243)
Cash: $1,211,638
Revenue: $610,405
Expenses: ($259,000)
Ending Balance: $1,563,043
Revenue is from RDA loan repayment
LOW - MODERATE HOUSING
FUND (243)
Development Guidelines Summarized:
Must create units for :
• those earning 80% or less
• 30% of the units for extremely low income
• 20% of units for very low income
•Annual report from 2014-2019, then once every 5 years to
show compliance with extremely low requirement
•If extremely low requirement not met in any 5 year report
at least 50% of remaining funds will be used to develop
rental housing for those are extremely low income
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LOW - MODERATE HOUSING
FUND (243)
Development Guidelines Summarized
Continued:
• If the agency exceeds the expenditure limit for low
income in any 5 year report then the agency shall not
expend any more funds on that income level
• Senior housing shall be restricted if the total number
of senior units exceeds more than 50% of the total
units in the proceeding 10 year timeframe
• May expend up to $250k per fiscal year for homeless
prevention or rapid rehousing services, if housing
obligations are met
LOW - MODERATE HOUSING
FUND (243)
Required Housing Covenants:
• 55 year for rental units
• 45 year for owner-occupied units
• 15 year for mutual self-help housing
• Anything developed after Jan. 1, 2008 must have
a Notice of Affordability Restrictions on Transfer of
Property
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LOW - MODERATE HOUSING
FUND (243)
Health and Safety Codes:
34716.1
34176.1 (3a)
34176.1 (B)
34176.1 (C)
34176.1 (b)
33334.3
2011 BONDS (249)
Cash: $25,556,705
Revenues: $0
Expenses: ($9,400,000)
Ending Balance: $16,166,705
$9,400,000 is allocated to the Washington Street
Apartments rehabilitation
8
2011 BONDS (249)
Bond money must be used to develop:
Moderate or low income housing
Question, Comments, Ideas