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2019 06 12 HC HOUSING COMMISSION MINUTES 1 MAY 1, 2019 SPECIAL MEETING HOUSING COMMISSION MINUTES WEDNESDAY, May 1, 2019 A special meeting of the Housing Commission (Commission) was called to order at 4:00 p.m. by Chairperson Long. PLEDGE OF ALLEGIANCE Commissioner Long led the audience in the Pledge of Allegiance. ROLL CALL: PRESENT: Commissioners Casto, Davidson, McDonough, Mejia-Gaeta, and Chairperson Long ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATION - None CONSENT CALENDAR 1. APPROVE HOUSING COMMISSION MINUTES DATED MARCH 13, 2019 Motion – A motion was made and seconded by Commissioners Casto/Gaeta-Mejia to approve the Consent Calendar as submitted. Motion passed unanimously. BUSINESS SESSION 1. REVIEW AND APPROVE ACCOUNTS RECEIVABLE WRITE-OFF AND UNCLAIMED PROPERTY POLICY Finance Director Campos presented the staff report, which is on file in the City Manager’s Department. The Commission and staff discussed the current process for accounts receivables, details on what would be included in the accounts receivable write-off and unclaimed property policy. The Commission expressed their positive feedback on how adopting this policy would show best practice for the City of La Quinta. Motion – A motion was made and seconded by Commissioners McDonough/Davidson to recommend Council approval of the accounts receivable write-off and unclaimed property policy. Motion passed unanimously. 2. RECOMMEND APPROVAL OF CONTRACT SERVICES AGREEMENT WITH BECKY CAHA FOR HOUSING COMPLIACE AND MONTIORING CONSENT CALENDAR ITEM NO. 1 HOUSING COMMISSION MINUTES 2 MAY 1, 2019 SPECIAL MEETING Assistant to City Manager Villalpando presented the staff report, which is on file in the City Manager’s Department. The Commission asked why a form of consumer price index increase is not included in the agreement for possible cost of living increases during the agreement. Staff explained that a set fee for 5 years was negotiated with the City’s banking services and the contract has also been shortened to 5 years. Motion – A motion was made and seconded by Commissioners Casto/McDonough to recommend approval of the contract services agreement of up to $71,000 with Becky Caha for housing compliance and monitoring. Motion passed unanimously. STUDY SESSION 1. DISCUSSION OPTIONS FOR AFFORDABLE HOUSING DEVELOPMENT Finance Director Campos and Assistant to City Manager Villalpando presented the staff report, which is on file in the City Manager’s Department. Assistant to City Manager Villalpando announced Angela Ferreira’s promotion to City Manager’s Analyst. The Commission and staff discussed the different possible options for affordable housing projects for fiscal year 2019/20 and status of the current housing project with Coachella Valley Rescue Mission. The Commission mentioned to staff that they would like to continue to see innovative ideas in upcoming affordable housing development projects. Assistant to City Manager Villalpando gave a summary of total cost for Washington Street Apartment (WSA) project. WSA project’s total cost is 42,000 with the city contributed $11,000,000 in funds and $7,000,000 in land. The Commission requested details on the air units for WSA and the reason they were chosen. Staff responded that they would have more details on these air units at the next Commission meeting on Wednesday, June 12, 2019 and that this next meeting would be Chairperson Long’s last commission meeting DEPARTMENTAL REPORTS – None COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners McDonough/Casto to adjourn this meeting at 4:53 p.m. Motion passed unanimously. Respectfully submitted, Reyna Camarena, Management Assistant City of La Quinta, California City of La Quinta HOUSING COMMISSION MEETING: June 12, 2019 STAFF REPORT AGENDA TITLE: DISSCUSS AND APPROVE THE FISCAL YEAR 2019/20 PROPOSED HOUSING AUTHORITY BUDGET RECOMMENDATION Approve the fiscal year 2019/20 Housing Authority Budget and recommend approval by the Housing Authority. EXECUTIVE SUMMARY • An overview of the proposed Housing Authority Budget was presented to the Commission on May 1, 2019 and to the Housing Authority on May 21. • Revenues are flat and overall expenditures have decreased as a result of Washington Street Apartments rehabilitation and expansion project, which does not include additional funding in 2019/20. • Final budget adoption is scheduled for June 18, 2019. FISCAL IMPACT The preliminary Housing Authority budget projects revenues of $741,000 and expenditures of $879,300. Unappropriated loan repayment revenues of $635,000 will remain in housing reserves. BACKGROUND/ANALYSIS Staff provided an overview of the proposed budget to the Commission on May 1 and subsequently to the Housing Authority on May 21. There were no further recommendations for adjustments at either meeting. The intent of this meeting is to provide further details on the budget and obtain approval from the Commission prior to final adoption by the Housing Authority. Each section contains notes to explain changes from 18/19 to 19/20. The budget format has been updated to a landscape view with the addition of year- to-date revenues and expenses and percentage change from the current 2018/19 to proposed 2019/20 budget. Attachment 1 provides a narrative of Housing Authority revenue and expenses including the Redevelopment Agency loan repayment to the Authority. Line BUSINESS ITEM NO. 1 item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The Commission may recommend further adjustments to the budget. Per State law, the Authority must adopt a budget by June 30. Prepared by: Karla Romero, Agency Finance Director Attachment: 1. Fiscal Year 2019/20 Proposed Budget Overview Housing Authority Budget 2019/20 PROPOSED BUDGET OVERVIEW The summary is designed to provide an overview of the Housing Authority Funds. Line item details for revenues and expenses are located in Exhibit A of the Attachment. A preliminary verbal update of the proposed budget was provided to the Housing Commission on May 1 and to the Housing Authority on May 21. The budget is scheduled for adoption on June 18. The budget provides resources for the evaluation of future affordable housing projects and programs, ongoing operational needs and property maintenance, as well as legal and auditing services as required by the Authority. REVENUES When all funds are combined, there is no anticipated change in revenues from 2018/19 to 2019/20, however, the sources of those revenues are changing. Due to higher fund balances, interest earnings are increasing in all funds while second trust deed repayments have been lowered due to unpredictable home sales. Repayments are typically recognized with a quarterly budget adjustment when they are received. EXPENSES Any used budgeted expenses in 2018/19 for Washington Street Apartments rehabilitation and expansion project will be carried to 2019/20. There are no new appropriations presented for this ongoing project. The operating Housing Authority Fund (241) has an anticipated increase of $6,800 which is largely attributed to an increase in professional services for the management of affordable housing programs. The RDA Low-Mod Housing Fund recognizes the annual loan repayment from the Last and Final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency). For 2019/20 the total loan repayment is $3,175,327, which is allocated 80% to the General Fund ($2,540,262) and 20% ($635,065) to the Housing Authority Fund. These revenues will be recognized in reserves in each fund and are not allocated to current expenses. The final loan repayment is scheduled for fiscal year 2029/30. Funding being budgeted for homeless programs. The Authority has two bond funds, one of which is being exhausted with the Washington Street Apartments Project (2004 Bond). The 2011 Bond is anticipated to have a balance of $16.3 million at June 30, 2019 and a $20,000 budget for 2019/20 provides for the ability to evaluate future affordable housing projects and programs. 2017/18Actual Revenues2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget2019/20 vs. Current 18/19% Change in Budget241 - HOUSING AUTHORITY(426)000 000 %241-0000-41900 Allocated Interest305,277000000 %241-0000-42706 Loan Repayments93,800000000 %241-0000-45000 Sale of Other Assets78,18235,00075,000225,118110,00035,00047 %241-9101-41900 Allocated Interest79500619000 %241-9101-41915 Non-Allocated Intere1,001000000 %241-9101-42301 Miscellaneous Reven00058,814000 %241-9101-43500 Home Sale Proceeds122,7710188,000187,89250,000(138,000)-73 %241-9101-43504 2nd Trust Deed Rep5,281000000 %241-9102-41916 Non-Allocated Intere137,308000000 %241-9102-42112 Rent Revenue/Tena(1,501)000 000 %241-9102-42113 Rent Variance - WSA3,308000000 %241-9102-42302 Miscellaneous Reven304,474000000 %241-9102-43520 Federal Government293,991280,000280,000216,783288,0008,0003 %241-9103-43502 Rent Revenue/LQRPFund Totals:1,344,262315,000543,000689,226448,000(95,000)-17 %243 - RDA Low-Mod Housing Fund17,8768,00018,00033,33222,0004,00022 %243-0000-41900 Allocated InterestFund Totals:17,8768,00018,00033,33222,0004,00022 %248 - SA 2004 LO/MOD BOND FUND (R(8,367)010,00013,3940(10,000)-100 %248-0000-41900 Allocated Interest00001,0001,0000 %248-0000-41915 Non-Allocated IntereFund Totals:(8,367)010,00013,3941,000(9,000)-90 %249 - SA 2011 LOW/MOD BOND FUND 52,38530,00000000 %249-0000-41900 Allocated Interest181,6490170,000355,003270,000100,00059 %249-0000-41915 Non-Allocated IntereFund Totals:234,03430,000170,000355,003270,000100,00059 %NON-GENERAL FUND REVENUE1,587,806353,000741,0001,090,955741,00000 %(426)000 00305,2770000093,8000000078,18235,00075,000225,118110,00035,00079500619001,0010000000058,81400122,7710188,000187,89250,000(138,000)5,28100000137,30800000(1,501)000 003,30800000304,47400000293,991280,000280,000216,783288,0008,0001,344,262315,000543,000689,226448,000(95,000)17,8768,00018,00033,33222,0004,00017,8768,00018,00033,33222,0004,000(8,367)010,00013,3940(10,000)00001,0001,000(8,367)010,00013,3941,000(9,000)52,38530,0000000181,6490170,000355,003270,000100,000234,03430,000170,000355,003270,000100,0001,587,806353,000741,0001,090,955741,0000CITY OF LA QUINTAHOUSING AUTHORITY REVENUE DETAILS2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19.241 Fund Second Trust Deed Payments vary from year-to-year. Additional repayment of silent second trust deeds are recognized upon receipt. 2017/18Actual Expenses2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget19/20 vs. Current 18/19% Change in Budget241 - HOUSING AUTHORITY9101 - Housing Authority - AdminSalaries and Benefits18,755145,300142,60078,526142,000(600)0 %241-9101-50101 Permanent Full Time1,5503,0003,0004503,00000 %241-9101-50110 Commissions & Boards4300300162200(100)-33 %241-9101-50150 Other Compensation6,0329,2009,9006,90710,6007007 %241-9101-50200 PERS-City Portion010010000(100)-100 %241-9101-50210 PERS-Survivor Benefits5001,223000 %241-9101-50215 Other Fringe Benefits1,86831,10031,50011,80331,8003001 %241-9101-50221 Medical Insurance3200176000 %241-9101-50222 Vision Insurance6500695000 %241-9101-50223 Dental Insurance180036000 %241-9101-50224 Life Insurance1503,2003,200314900(2,300)-72 %241-9101-50225 Long Term Disability3,0002,6002,6001,9503,40080031 %241-9101-50230 Workers Comp Insurance2662,1002,2001,1692,100(100)-5 %241-9101-50240 Social Security-Medicare1020054000 %241-9101-50241 Social Security-FICA50 - Salaries and Benefits Totals:31,845196,900195,400 103,466194,000(1,400)-1 %Contract Services63,76865,00070,00049,31781,00011,00016 %241-9101-60103 Professional Services6,0505,0005,0005,0005,00000 %241-9101-60106 Auditors7,1665,00000000 %241-9101-60125 Temporary Agency Servic32,61825,00025,00011,57525,00000 %241-9101-60153 Attorney60 - Contract Services Totals:109,603100,000100,00065,892111,00011,00011 %Maintenance & Operations1,0182,0002,0001,6113,0001,00050 %241-9101-60320 Travel & Training00094 000 %241-9101-60400 Office Supplies2,2172,0002,0009561,500(500)-25 %241-9101-60420 Operating Supplies62 - Maintenance & Operations Totals:3,2354,0004,0002,6614,50050013 %Insurance010,00010,0007,5006,000(4,000)-40 %241-9101-91843 Property & Crime Insuran63 - Insurance Totals:010,00010,0007,5006,000(4,000)-40 %Internal Service Charges20,00020,00020,00015,00014,000(6,000)-30 %241-9101-91844 Earthquake Insurance8,40018,10018,10013,57524,8006,70037 %241-9101-98110 Information Tech Charges69 - Internal Service Charges Totals:28,40038,10038,10028,57538,8007002 %9101 - Housing Authority - Admin Totals:173,083349,000347,500 208,094354,3006,8002 %9102 - Housing Authority - Wash St AptsContract Services1,193,428000000 %241-9102-60160 Financial Expenses60 - Contract Services Totals:1,193,428000000 %18,755145,300142,60078,526142,000(600)1,5503,0003,0004503,00004300300162200(100)6,0329,2009,9006,90710,600700010010000(100)5001,223001,86831,10031,50011,80331,800300320017600650069500180036001503,2003,200314900(2,300)3,0002,6002,6001,9503,4008002662,1002,2001,1692,100(100)10200540031,845196,900195,400 103,466194,000(1,400)63,76865,00070,00049,31781,00011,0006,0505,0005,0005,0005,00007,1665,000000032,61825,00025,00011,57525,0000109,603100,000100,00065,892111,00011,0001,0182,0002,0001,6113,0001,00000094 002,2172,0002,0009561,500(500)3,2354,0004,0002,6614,500500010,00010,0007,5006,000(4,000)010,00010,0007,5006,000(4,000)20,00020,00020,00015,00014,000(6,000)8,40018,10018,10013,57524,8006,70028,40038,10038,10028,57538,800700173,083349,000347,500 208,094354,3006,8001,193,428000001,193,42800000CITY OF LA QUINTAHOUSING AUTHORITY EXPENSES2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19. 2017/18Actual Expenses2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget19/20 vs. Current 18/19% Change in BudgetMaintenance & Operations206,828000000 %241-9102-60157 Rental Expenses62 - Maintenance & Operations Totals:206,828000000 %Debt Service79,256000000 %241-9102-61609 Interest Expense - Provid10,192000000 %241-9102-61610 Interest Expense - USDA36,600000000 %241-9102-61680 Principal Payment - Provid15,388000000 %241-9102-61681 Principal Payment - USDA67 - Debt Service Totals:141,436000000 %Housing Authority - Wash St Apts Totals:1,541,692000000 %9103 - Housing Authority - LQRPMaintenance & Operations153,309255,000255,000174,707255,00000 %241-9103-60157 Rental Expenses62 - Maintenance & Operations Totals:153,309255,000255,000 174,707255,00000 %9103 - Housing Authority - LQRP Totals:153,309255,000255,000 174,707255,00000 %241 - HOUSING AUTHORITY Totals:1,868,084604,000602,500 382,801609,3006,8001 %206,82800000206,8280000079,2560000010,1920000036,6000000015,38800000141,436000001,541,69200000153,309255,000255,000174,707255,0000153,309255,000255,000 174,707255,0000153,309255,000255,000 174,707255,00001,868,084604,000602,500 382,801609,3006,800CITY OF LA QUINTAHOUSING AUTHORITY EXPENSES2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19.241-9102-XXXX Washington Street Apartment expenses were removed in 2018/19 with the transfer of ownership to the Coachella Valley Housing Coalition. 2017/18Actual Expenses2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget19/20 vs. Current 18/19% Change in Budget243 - RDA Low-Mod Housing Fund0000 - UndesignatedOther Expenses259,000250,000267,667166,666250,000(17,667)-7 %243-0000-60532 Homelessness Assistance64 - Other Expenses Totals:259,000250,000267,667 166,666250,000(17,667)-7 %0000 - Undesignated Totals:259,000250,000267,667 166,666250,000(17,667)-7 %243 - RDA Low-Mod Housing Fund Totals:259,000250,000267,667 166,666250,000(17,667)-7 %259,000250,000267,667166,666250,000(17,667)259,000250,000267,667 166,666250,000(17,667)259,000250,000267,667 166,666250,000(17,667)259,000250,000267,667 166,666250,000(17,667)CITY OF LA QUINTAHOUSING AUTHORITY EXPENSES2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19. 2017/18Actual Expenses2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget19/20 vs. Current 18/19% Change in Budget248 - SA 2004 LO/MOD BOND FUND (Refin9102 - Housing Authority - Wash St AptsContract Services00145,00000(145,000)-100 %248-9102-60103 Professional Services228,87001,200,000882,5610 (1,200,000)-100 %248-9102-60159 Relocation Benefits106,2900106,94780,7350(106,947)-100 %248-9102-60185 Design/Construction12,823000000 %248-9102-60198 Planning & Development60 - Contract Services Totals:347,98201,451,947 963,2960 (1,451,947)-100 %Housing Authority - Wash St Apts Totals:347,98201,451,947 963,2960 (1,451,947)-100 % BOND FUND (Refinanced in 2014) Totals:347,98201,451,947 963,2960 (1,451,947)-100 %00145,00000(145,000)228,87001,200,000882,5610 (1,200,000)106,2900106,94780,7350(106,947)12,82300000347,98201,451,947 963,2960 (1,451,947)347,98201,451,947 963,2960 (1,451,947)347,98201,451,947 963,2960 (1,451,947)CITY OF LA QUINTAHOUSING AUTHORITY EXPENSES2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19.248 Fund was fully used for the Washington Street Apartment rehabilitation and expansion project. 2017/18Actual Expenses2018/19Original Budget2018/19Current Budget2018/19YTD Activity*2019/20Proposed Budget19/20 vs. Current 18/19% Change in Budget249 - SA 2011 LOW/MOD BOND FUND (Re0000 - UndesignatedContract Services2,023,97507,376,000 7,376,0240 (7,376,000)-100 %249-0000-60188 Construction60 - Contract Services Totals:2,023,97507,376,000 7,376,0240 (7,376,000)-100 %Capital Expenses0040,000020,000(20,000)-50 %249-0000-80050 Affordable Housing Projec68 - Capital Expenses Totals:0040,000020,000(20,000)-50 %0000 - Undesignated Totals:2,023,97507,416,000 7,376,02420,000 (7,396,000)-100 %BOND FUND (Refinanced in 2016) Totals:2,023,97507,416,000 7,376,02420,000 (7,396,000)-100 %2,023,97507,376,000 7,376,0240 (7,376,000)2,023,97507,376,000 7,376,0240 (7,376,000)0040,000020,000(20,000)0040,000020,000(20,000)2,023,97507,416,000 7,376,02420,000 (7,396,000)2,023,97507,416,000 7,376,02420,000 (7,396,000)CITY OF LA QUINTAHOUSING AUTHORITY EXPENSES2019/20 PROPOSED BUDGET* Year-to-Date totals are as of 5/10/19.249 Fund is partially being used for the Washington Street Apartment rehabilitation and expansion project. Remaining funds are available for future housing projects. Housing Commission Meeting June 12, 2019 B1 –Approve 2019/20 Proposed Budget What’s Changed for 2019/20? Housing Authority •Removed Washington Street Apartments •Updated Salary Allocations Low-Mod Fund •RDA Loan Repayments recognized in this Fund $635,065 •Homelessness Funding Continued 2004 and 2011 Bond Funds •Expenses for Evaluation of Future Projects •Unspent Funds will be Carried over in October to 2019/20 Fund Balances Summary Unspent balance is carried over to 19/20 Fund #Funding Source Cash Revenues Expenses Ending Balance 241 Housing Fund 11,259,500 543,000 (602,500) 11,200,000 243 Low-Mod Fund 1,027,054 640,613 (267,667) 1,400,000 248 2004 Bond 1,451,900 10,000 (1,461,900) - 249 2011 Bond 23,546,000 170,000 (7,416,000) 16,300,000 37,284,454 1,363,613 (9,748,067) 28,900,000 Current Budget for 2018/19 Estimated at June 30, 2019 Fund #Funding Source Cash Revenues Expenses Ending Balance 241 Housing Fund 11,200,000 448,000 (609,300) 11,038,700 243 Low-Mod Fund 1,400,000 657,065 (250,000) 1,807,065 248 2004 Bond - - - - 249 2011 Bond 16,300,000 270,000 (20,000) 16,550,000 28,900,000 1,375,065 (879,300) 29,395,765 Estimated at June 30, 2020 Preliminary Budget for 2019/20 Questions & Discussion