2020 05 06 HC Special MeetingHOUSING COMMISSION 1 MAY 6, 2020
SPECIAL MEETING
NOTICE AND CALL OF SPECIAL MEETING
OF THE LA QUINTA HOUSING COMMISSION
TO THE MEMBERS OF THE LA QUINTA HOUSING COMMISSION AND TO
THE COMMISSION SECRETARY:
NOTICE IS HEREBY GIVEN that a Special Meeting of the La Quinta
Housing Commission is hereby called to be held on Wednesday, May 6,
2020 starting at 4:00 p.m.; at La Quinta City Hall located at 78495 Calle
Tampico, La Quinta, CA 92253. Pursuant to Executive Orders N-25-20, N-29-
20, N-33-20, and N-35-20, executed by the Governor of California in response
to the state of emergency relating to novel coronavirus disease 2019 (COVID-
19) and enabling teleconferencing accommodations by suspending or waiving
specified provisions in the Ralph M. Brown Act (Government Code § 54950 et
seq.), members of the Housing Commission, the City Manager, City
Attorney, City Staff, and City Consultants may participate in this special
meeting by teleconference. The special meeting is called for the following
purpose:
CONSENT CALENDAR
1.APPROVE MINUTES DATED MARCH 11, 2020
2.RECEIVE AND FILE THE LA QUINTA HOUSING AUTHORITY
ANNUAL REPORT FOR FISCAL YEAR 2018/19 PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34328, AND
MAKE A RECOMMENDATION TO THE HOUSING AUTHORITY
3.RECEIVE AND FILE HOUSING SUCCESSOR ANNUAL REPORT FOR
FISCAL YEAR 2018/19 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, AND MAKE A RECOMMENDATION
TO THE HOUSING AUTHORITY
BUSINESS SESSION
1.REVIEW FISCAL YEAR 2020/21 PROPOSED HOUSING AUTHORITY
BUDGET, AND MAKE RECOMMENDATION TO THE HOUSING
AUTHORITY
2.APPROVE CONTRACT SERVICES AGREEMENT WITH LA
QUINTA PALMS REALTY TO PROVIDE RESIDENTIAL PROPERTY
MANAGEMENT SERVICES
HOUSING COMMISSION 2 MAY 6, 2020
SPECIAL MEETING
Dated: May 5, 2020 /s/ Veronica Gaeta-Mejia
Veronica Gaeta-Mejia, Chairperson
Attest:
MONIKA RADEVA, City Clerk
DECLARATION OF POSTING
I, Monika Radeva, City Clerk, do hereby declare that the foregoing notice for
the La Quinta Housing Commission Special Meeting of May 5, 2020 was
posted on the outside entry to the Council Chamber at 78495 Calle Tampico
and on the bulletin boards at 51321 Avenida Bermudas and 78630 Highway
111 on May 5, 2020.
MONIKA RADEVA, City Clerk
HOUSING COMMISSION AGENDA 1 May 6, 2020
SPECIAL MEETING
Housing Commission agendas and staff
reports are available on the City’s web
page: www.LaQuintaCA.gov
HOUSING COMMISSION
AGENDA
CITY HALL COUNCIL CHAMBER
78495 Calle Tampico, La Quinta
SPECIAL MEETING
WEDNESDAY, MAY 6, 2020 AT 4:00 P.M.
******************************
SPECIAL NOTICE
Teleconferencing and Telephonic Accessibility In Effect
Pursuant to Executive Orders N-25-20, N-29-20, N-33-20, and N-35-20,
executed by the Governor of California in response to the state of emergency
relating to novel coronavirus disease 2019 (COVID-19) and enabling
teleconferencing accommodations by suspending or waiving specified
provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.),
members of the Housing Commission, the City Manager, City Attorney, City
Staff, and City Consultants may participate in this meeting by teleconference.
Additionally, pursuant to the above-referenced executive orders, the public is
not permitted to physically attend at City Hall the meeting to which this
agenda applies, but any member of the public may listen or participate in the
open session of this meeting as specified below.
Members of the public wanting to listen to this meeting may do so by tuning-
in live via http://laquinta.12milesout.com/video/live.
Members of the public wanting to address the Housing Commission, either
for public comment or for a specific agenda item, or both, are requested to
send an email notification to Housing Specialist Doug Kinley at
DKinley@LaQuintaCA.Gov, and specify the following information:
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HOUSING COMMISSION AGENDA 2 May 6, 2020
SPECIAL MEETING
1) Full Name 4) Public Comment or Agenda Item Number
2) City of Residence 5) Subject
3) Phone Number 6) Written or Verbal Comments
The email “subject line” must clearly state “Written Comments” or “Verbal
Comments.”
Verbal public comments – requests to speak must be emailed to Housing
Specialist Doug Kinley no later than 3:00 p.m. on the day of the meeting;
the City will facilitate the ability for a member of the public to be audible to the
Housing Commission and general public for the item(s) by contacting him/her via
phone and queuing him/her to speak during the discussion.
Only one person at a time may speak by telephone and only after being
recognized by the Housing Commission’s Chairperson.
Written public comments, received prior to the adjournment of the meeting, will
be distributed to the Housing Commission, incorporated into the agenda packet
and public record of the meeting, and will not be read during the meeting unless,
upon the request of the Housing Commission Chairperson, a brief summary of any
public comment is asked to be read, to the extent the Commission Secretary can
accommodate such request.
It would be appreciated that any email communications for public comments
related to the items on the agenda, or for general public comment, are provided to
the City Manager’s Office at the email address listed above prior to the
commencement of the meeting. If that is not possible, and to accommodate public
comments on items that may be added to the agenda after its initial posting or
items that are on the agenda, every effort will be made to attempt to review emails
received by the City Manager’s Office during the course of the meeting. The
Housing Commission’s Chairperson will endeavor to take a brief pause before action
is taken on any agenda item to allow the Commission Secretary to review emails
and share any public comments received during the meeting. All emails received
by the City Manager’s Office, at the email address above, until the adjournment of
the meeting, will be included within the public record relating to the meeting.
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HOUSING COMMISSION AGENDA 3 May 6, 2020
SPECIAL MEETING
CALL TO ORDER
ROLL CALL: Commissioners: Casto, Davidson, McDonough, Pacheco, Chairperson
Gaeta-Mejia
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
At this time, members of the public may address the Housing Commission on
any matter not listed on the agenda. Please email “Written Public Comments” to
DKinley@LaQuintaCA.gov and limit your comments to three (3) minutes
(approximately 350 words). The Commission 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 the Brown Act
[Government Code Section 54654.2(b)].
CONFIRMATION OF AGENDA
ANNOUNCEMENT, PRESENTATIONS, AND WRITTEN COMMUNICATION -
None
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one
motion.
1.APPROVE MINUTES DATED MARCH 11, 2020
2.RECEIVE AND FILE THE LA QUINTA HOUSING AUTHORITY ANNUAL REPORT
FOR FISCAL YEAR 2018/19 PURSUANT TO CALIFORNIA HEALTH AND SAFETY
CODE SECTION 34328, AND MAKE A RECOMMENDATION TO THE HOUSING
AUTHORITY
3.RECEIVE AND FILE HOUSING SUCCESSOR ANNUAL REPORT FOR FISCAL YEAR
2018/19 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, AND MAKE A
RECOMMENDATION TO THE HOUSING AUTHORITY
BUSINESS SESSION
1.REVIEW FISCAL YEAR 2020/21 PROPOSED HOUSING AUTHORITY BUDGET,
AND MAKE RECOMMENDATION TO THE HOUSING AUTHORITY
2.APPROVE CONTRACT SERVICES AGREEMENT WITH LA QUINTA PALMS
REALTY TO PROVIDE RESIDENTIAL PROPERTY MANAGEMENT SERVICES
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HOUSING COMMISSION AGENDA 4 May 6, 2020
SPECIAL MEETING
STUDY SESSION - None
COMMISSIONERS’ ITEMS - None
ADJOURNMENT
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The next regular quarterly meeting of the La Quinta Housing Commission will
be held on June 10, 2020, commencing at 4:00 p.m., at the La Quinta
Study Session Room, 78495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Doug Kinley, Management Specialist, do hereby declare that the foregoing
Agenda for the La Quinta Housing Commission meeting was posted on the City’s
website, near the entrance to the Council Chambers at 78495 Calle Tampico, and
the bulletin boards at the Stater Brothers Supermarket at 78630 Highway 111,
and the La Quinta Cove Post Office at 51321 Avenida Bermudas, on May 5, 2020.
DATED: May 5, 2020
Doug Kinley, Management Specialist
City of La Quinta, California
PUBLIC NOTICES
•The La Quinta City Hall Study Council Chamber is handicapped accessible. If
special equipment is needed for the hearing impaired, please call the City Clerk’s
office at (760) 777-7092, 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
Commission, arrangements should be made in advance by contacting the City
Clerk’s office at (760) 777-7092. A one (1) week notice is required.
•If background material is to be presented to the Commission during a Housing
Commission meeting, please be advised that eight (8) copies of all documents,
exhibits, etc., must be supplied to the Secretary 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 Commission regarding
any item(s) on this agenda will be made available for public inspection at The
Hub counter at City Hall located at 78-495 Calle Tampico, La Quinta, California,
92253, during normal business hours.
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HOUSING COMMISSION MINUTES Page 1 of 2 MARCH 11, 2020
HOUSING COMMISSION
MINUTES
WEDNESDAY, MARCH 11,2020
A special meeting of the La Quinta Housing Commission (Commission) was called to order at
4:00 p.m. by Chairperson Gaeta-Mejia.
PRESENT: Commissioners: Casto, Davidson, McDonough, Pacheco, and Chairperson
Gaeta-Mejia
PLEDGE OF ALLEGIANCE
Chairperson Gaeta-Mejia led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None
CONFIRMATION OF AGENDA – Confirmed
ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS - None
CONSENT CALENDAR
1.APPROVE HOUSING COMMISSION MINUTES DATED JANUARY 29, 2020
Motion – A motion was made and seconded by Commissioners McDonough/Davidson to
approve the Consent Calendar as submitted. Motion passed: Unanimously
BUSINESS SESSION –
1.RECOMMEND REVISED FUNDING OPTION FOR AREA HOMELESS
PREVENTION PROGRAMS
Management Specialist Kinley presented the funding changes and options for the Homeless
Prevention Program; provided a brief summary of the budget allocation changes for 2019
and requested Commission’s input.
Staff and Commission discussed the revisions made regarding the 2020 Homeless Program
Funding between Coachella Valley Rescue Mission (CVRM), Martha’s Village and Kitchen
(MVK) and Coachella Valley Association of Government (CVAG);Linc Housing trial program
being put on hold, Desert Healthcare District no longer matching funding provided by local
cities and the 2 revision options. Option 1 to provide $83,333 to CVRM, $83,333 to MVK and
$83,333 to CVAG. Option 2 with amendment that funds stay in the City of La Quinta. to
provide $83,333 to CVRM, $83,333 to MVK and $100,000 to CVAG. Commission agreed to
recommend option 1.
Motion – A motion was made and seconded by Commissioners Gaeta-Mejia/Davidson to
approve the recommendation as submitted. Motion passed:ayes 4, noes 1.
1.RECOMMEND FUNDING FOR HABITAT FOR HUMANITY OF THE COACHELLA
VALLEY
CONSENT CALENDAR ITEM NO. 1
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HOUSING COMMISSION MINUTES Page 2 of 2 MARCH 11, 2020
Management Specialist Kinley presented the staff report, which is on file in the City
Manager’s Department.
Staff communicated the proposal of internal funding for up to $20,000 to Habit for
Humanity of Coachella Valley which would be geared towards helping local senior residents.
Funding would be accompanied by a memorandum of understanding with reporting
requirements defined for all expenditures.
Motion – A motion was made and seconded by Commissioners Casto/McDonough to approve
the recommendation as submitted. Motion passed: unanimously.
STUDY SESSION - None
DEPARTMENTAL REPORTS
1.LOCAL EARLY ACTION PLANNING (LEAP) GRANTS PROGRAM APPLICATION
Management Specialist Kinley presented departmental report, which is on file in the City
Manager’s Department.
Staff informed Commission of the $150,000 funds coming from Local Early Action Planning
Grant Program (LEAP); this grant is a one-time non-competitive program that the city has
participated in to assist with items such as regional housing needs and affordable housing.
2.BROWN ACT INFORMATION
Assistant to City Manager Villalpando and Commission discussed the Brown Act; meetings
must be open to the pubic; regular meetings being posted 72 hours in ad vance; special
meetings and joint meetings must be posted 24 hours in advance; teleconference meeting
details; agenda packets and the Housing Commission scope of purview.
REPORTS AND INFORMATIONAL ITEMS - NONE
COMMISSIONERS’ ITEMS - None
ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners
McDonough/Davidson to adjourn this meeting at 5:03 p.m. Motion passed: unanimously.
Respectfully submitted,
Reyna Camarena, Management Assistant
City of La Quinta, California
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City of La Quinta
HOUSING COMMISSION MEETING: May 6, 2020
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE THE LA QUINTA HOUSING AUTHORITY ANNUAL
REPORT FOR FISCAL YEAR 2018/19 PURSUANT TO CALIFORNIA HEALTH AND SAFETY
CODE SECTION 34328, AND MAKE RECOMMENDATION TO THE HOUSING AUTHORITY
RECOMMENDATION
Recommend the Housing Authority receive and file the Fiscal Year 2018/19 La Quinta
Housing Authority Annual Report.
EXECUTIVE SUMMARY
•California Health and Safety Code Section 34328 requires the Housing Authority
(Authority) to prepare and file an Annual Report (Report).
•The Report (Attachment 1) presents all Authority activities for 2018/19.
•The Report will be posted on the City’s website and filed with the City Clerk.
FISCAL IMPACT – None.
BACKGROUND/ANALYSIS
The Report reviews the Authority’s assets, budget, housing unit compliance, and
affordable housing activities during 2018/19, and includes the following findings:
•No bonds were issued nor were any affordable housing commitments made.
•After transferring ownership of the Washington Street Apartments project to
Coachella Valley Housing Coalition on March 15, 2018, the project has been
completed and is open officially as of November 21, 2019.
•The Authority remains in compliance with the Housing Affordability requirement
wherein 50 percent of 1284 total Authority assisted rental units are available to
persons of very-low income.
•The Authority has 395 silent second trust deed loans, and 1 residential
rehabilitation loan, all of which provide affordability covenants and are monitored
for compliance.
•The Authority did not issue any domestic violence related termination notices.
ALTERNATIVES
As this is a receive and file action no alternatives are presented.
Prepared by: Doug Kinley, Management Specialist
Approved by: Gilbert Villalpando, Assistant to City Manager
Attachment: 1. La Quinta Housing Authority Annual Report
CONSENT CALENDAR ITEM NO. 2
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
Washington Street Apartments Rehabilitation Project - 2019
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
Introduction
About This Annual Report
SUMMARY
California Health and Safety Code (“HSC”) Section 34328 states that “at least once a year,
an authority shall file with the clerk of the respective city or county and with the
Department of Housing and Community Development (“HCD”) a report of its activities for
the preceding year“(“Annual Report”). This Annual Report for the La Quinta Housing
Authority (“Authority”) covers all the activities that have occurred during the 2018-19
Fiscal Year (“FY 18-19”), including housing unit compliance with affordability
requirements, activities concerning existing debt obligations, as well as land transactions
and development.
LEGAL AUTHORITY
It is the intent of the State legislature that housing authorities function as local entities
with the primary responsibility of providing housing for very low- and low-income
households. As such, housing authorities are distinct, autonomous, legal entities that
derive their powers from State statute. The HSC, beginning with Section 34200, provides
for the functioning of a local housing authority through a resolution of the local governing
body. In the case of the City of La Quinta (“City”), the City Council of the City of La Quinta
(“City Council”) resolved that the Authority could exercise its powers. The resolution
adopted by the City Council must be accompanied by a finding that either of the following
is true: (1) unsanitary or unsafe housing exists in the city or (2) there is a shortage of
safe or sanitary housing available to persons of low income. On September 15, 2009, the
City Council adopted Resolution No. 2009-005, confirming that both aforementioned
findings have been met to establish a housing authority in accordance with the California
Housing Authorities Law (Health and Safety Code Section 34200, et. seq.). The Authority
adopted Bylaws and Rules of Procedure on October 6, 2009 by Resolution HA 2009-001,
which was amended by the Authority on April 15, 2014.
ABx1 26 dissolved redevelopment agencies in California effective February 1, 2012.
Health and Safety Code Section 34176(b)(2) allows the local housing authority to assume
all rights, powers, assets, liabilities, duties, and obligations associated with the housing
activities of a dissolved redevelopment agency. On January 17, 2012, the La Quinta
Housing Authority adopted resolution HA 2012-002, electing to be the “housing successor”
to the dissolved La Quinta Redevelopment Agency.
Health and Safety Code Section 34179 requires the formation of oversight boards to
approve transactions related to former redevelopment agencies. The Oversight Board of
the Successor Agency to La Quinta Redevelopment Agency was established on March 7,
2012. The Oversight Board subsequently approved the transfer of affordable housing
properties to the La Quinta Housing Authority on April 18, 2012 via resolutions OB 2012-
008 and OB 2012-009.
OBJECTIVES OF THE HOUSING AUTHORITY
The Authority was established to own rental properties in the City of La Quinta that were
scheduled for substantial rehabilitation, and to hold title to vacant properties that will be
developed with single and multi-family housing. A detailed inventory of Authority
properties is presented in Tables 1a, 1b, and 1c. The Authority contracts with private
entities to manage the occupied properties. The Authority’s objectives are:
• Provide safe and sanitary housing opportunities for La Quinta residents;
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
• Rehabilitate properties that exhibit unsafe or unhealthy characteristics; and
• Increase, improve, and preserve the community’s affordable housing stock.
CONTENTS OF THE HOUSING AUTHORITY’S ANNUAL REPORT
This Annual Report has been developed to:
• Summarize the Authority’s activities during FY 18-19, including any bond issuances,
and loan or finance agreements that the Authority has entered into;
• Show compliance with requirements of HSC Section 34312.3 such as the minimum
amount of housing units affordable to lower income in projects assisted by the
Authority, and document established base rents and/or maximum rental payments
for lower income households; and
• Document any domestic violence tenancy or Section 8 voucher termination as
required by HSC Section 34328.1.
HOUSING AUTHORITY DEBT OBLIGATIONS
Pursuant to HSC Section 34328.1, the Authority must provide a complete report of all
bond, loan and financing agreement transactions during the prior fiscal year. Authority
activities permitted by HSC Section 34312.3 include issuing bonds, loans and financing
agreements for multi-family rental housing projects.
There were no new bond, loan or financing agreement transactions during FY 18-19.
LAND TRANSACTIONS AND DEVELOPMENT
HSC Section 34312.3 permits housing authorities to undertake activities related to:
• The development, rehabilitation, or financing of housing projects;
• The purchase, sale, lease, ownership, operation, or management of housing
projects assisted by the Authority; conveyance of surplus lands to a developer for
permitted purposes; and
• Establish a special trust fund or account funded with bond proceeds or developer
funds.
Washington Street Apartments ownership was transferred to the Coachella Valley Housing
Coalition (CVHC) on March 15, 2018. The work that has been completed as part of the
affordable housing project includes, demolition, utility infrastructure upgrades, and
rehabilitation of existing units, and the construction of 68 new units and associated
community center.
A combination of housing funds, bond proceeds, and tax credit financing was used to pay
for the design, architectural, engineering, and project management services in addition to
vertical construction and rehabilitation. The Project has been completed as of November
21, 2019.
HOUSING AUTHORITY ASSETS
Housing Authority assets include real property assets owned or managed by the Authority
and include a breakdown of the current and anticipated income levels at each property
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
where applicable. All Real Property Assets are shown on Table 1a and 1b. A summary
of the seven (7) long-term loans made by the former La Quinta Redevelopment Agency to
affordable housing developers is provided in Table 1c. These loans have been assumed
by the Authority due to redevelopment dissolution.
Real Property Inventory
Table 1a
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
HOUSING UNIT COMPLIANCE
As set forth by HSC Sections 34328 and 34328.1, housing authorities are required to:
• Show compliance with requirements of HSC Section 34312.3 such as the minimum
amount of housing units affordable to lower income households in projects assisted
by the Authority, and document established base rents and/or maximum rental
payments for these households; and
• Document any domestic violence tenancy or Section 8 voucher termination as
required by HSC Section 34328.1.
The following subsections provide a summary of the Authority’s progress toward the
requirements listed above.
Housing Affordability Requirement
The authority shall require the owners of housing projects assisted pursuant to this
section to accept as tenants, on the same basis as all other prospective tenants, in the
units reserved for very low income households, any very low income households who are
recipients of federal certificates for rent subsidies pursuant to the existing program under
Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its
successor. The authority shall not permit a selection criteria to be applied to Section 8
certificate holders that is any more burdensome than the criteria applied to all other
prospective tenants.
No resident in housing units assisted pursuant to this section shall be denied continued
occupancy or ownership because, after admission, the resident's family income increases
to exceed the eligibility level. However, the authority shall ensure that percentage
requirements of this section shall continue to be met by providing the next available unit
or units to persons of low income or by taking other actions to satisfy the percentage
requirements of this section.
Table 2 provides a summary of the Authority assumed enforcement responsibility for
affordability covenants within privately-owned, former redevelopment-agency properties
and shows how the current affordability mix of the Authority’s assisted projects meet
established requirements within HSC Section 34312.3.
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
The Authority has 395 silent second trust deed loans, and 1 residential rehabilitation loan,
all of which provide affordability covenants on these properties. Silent second trust deed
loans are not repaid unless there is a default on affordability covenants. Interest
assessed only if there is a default on affordability covenants. (Due to the length of this
list, it is attached as Table 5 of this report.)
Base & Maximum Rents
The Housing Authority monitors to ensure compliance of rental payments charged for its
housing units and will make necessary adjustments to bring any rental payments that
exceed the listed amounts in Table 3 into compliance.
Table 3
Domestic Violence
State law requires that a housing authority annually disclose data related to domestic
violence incidents in units owned or operated by the housing authority. Specifically, the
data must include:
• Data on termination of tenancies and/or Section 8 vouchers of victims of domestic
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
• Summary of steps taken by the housing authority to address any termination of
tenancies and/or Section 8 vouchers of victims of domestic violence.
In Fiscal Year 2018-19, there were no terminations of tenancies or Section 8 vouchers of
victims of domestic violence in units owned or operated by the Authority.
AUTHORITY BUDGET Table 4 presents the Authority’s actual expenditures for FY 2018-
19 as well as the estimated budget to be requested for FY 2019-20.
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5 COUNTINUED
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5 COUNTINUED
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5 COUNTINUED
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5 COUNTINUED
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
SINGLE FAMILY OWNERSHIP TABLE 5 COUNTINUED
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City of La Quinta Housing Authority
Fiscal Year 2018-19 Annual Report ATTACHMENT 1
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City of La Quinta
HOUSING COMMISSION MEETING: May 6, 2020
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE HOUSING SUCCESSOR ANNUAL REPORT FOR
FISCAL YEAR 18/19 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, AND MAKE
RECOMMENDATION TO THE HOUSING AUTHORITY
RECOMMENDATION
Recommend the Housing Authority 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 the Housing Authority a comprehensive representation of
the City’s housing assets and activities.
•Once filed, the Report will be made available to the public 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 2018/19 reflects the following findings:
•A total of $1,437,457 was deposited into the LMIHAF; the majority of the
deposits originated from rental revenue generated by City-owned affordable
housing properties and a $121,857 loan repayment from Coral Mountain.
•A total of $776,721 was expended from LMIHAF for maintenance, monitoring,
administration expenses, and homeless prevention funding.
•A total of $59,192,877 in assets owned by the Housing Successor was reported,
assets consist of notes and loans, land, building and improvements and
accumulated depreciation.
•Senior Housing Test reflects that 22 percent of 1284 total Housing Successor
Assisted rental units are restricted to seniors.
•The Housing Successor reports no computed excess surplus; therefore, no plan
exists for eliminating the excess surplus.
CONSENT CALENDAR ITEM NO. 3
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The Report will be 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 receive and file action no alternatives are presented.
Prepared by: Doug Kinley III, Management Specialist
Approved by: Gilbert Villalpando, Assistant to City Manager
Attachment: 1. La Quinta Housing Successor Annual Report
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ATTACHMENT 1
HOUSING SUCCESSOR ANNUAL REPORT
April 30, 2020
LOW- AND MODERATE-INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2018-19
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE
LA QUINTA HOUSING AUTHORITY
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ATTACHMENT 1
HOUSING SUCCESSOR ANNUAL REPORT TABLE OF CONTENTS
INTRODUCTION ............................................................................................................................. 1
AMOUNT DEPOSITED INTO LMIHAF ........................................................................................... 1
ENDING BALANCE OF LMIHAF ................................................................................................... 1
DESCRIPTION OF EXPENDITURES FROM LMIHAF ................................................................... 1
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
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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 2018-19
(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, 2019 (six months after the end of the Fiscal Year); however, due to a delay in finalizing
the Citywide Financial Statements for fiscal year 2018/19, the submittal of this report was
delayed. 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.laquintaca.gov)
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 $1,437,457 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 $121,857 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 fund balance (inclusive of notes receivables) in
the LMIHAF was $22,041,097, of which $0 is held for items listed on the ROPS.
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 $776,721
expended from the LMIHAF, divided into the following categories:
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TABLE 1: DESCRIPTION OF LMIHAF EXPENDITURES
Description of Expenditures Total Expenditures
Maintenance, Monitoring and Administration Expenditures $610,055
Homeless Prevention and Rapid Rehousing Services Expenditures $166,666
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 $776,721
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* $33,923,705
Land $25,009,379
Building and Improvements $742,453
Less Accumulated Depreciation $482,660
Total Assets $59,192,877
*Increase in Notes and Loans is a result of adding 20% of the successor agency loan repayment
balance as of June 30, 2019. The DOF approved in the Last and Final ROPS on November 22,
2017.
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 Demolition, Sitework, Infrastructure
Improvements and Construction started in
April 2018
Washington Street Apartments
Washington Street Apartments ownership was transferred to the Coachella
Valley Housing Coalition (CVHC) on March 15, 2018.The work to be completed
as part of the affordable housing project includes demolition, utility
infrastructure upgrades, and rehabilitation of existing units, and the
construction of 68 new units and an associated community center. A
combination of housing funds, bond proceeds, and tax credit financing is being
used to pay for the design, architectural, engineering, and project
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management services in addition to vertical construction and rehabilitation.
The project was been completed on November 21, 2019.
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:
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 600-030-009)
6/13/2006 6/13/2016
Deadline met- 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
Deadline met- 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
Deadline met- City has
initiated site programming and
developed conceptual plans
Avenida Mendoza and
Avenida Montezuma
(APN 773-077-014)
11/30/2007 11/30/2017
Deadline met- 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
Deadline met- 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
Deadline met- City has
initiated site programming and
developed conceptual plans
Calle Tamazula south of
Avenida La Fonda
(APN 770-174-002)
10/31/1990 08/31/2022
Deadline met – Sold to private
party in 12/2019, will remain in
listing until next year’s Report.
Deposited proceeds into the
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Low- and Moderate-Income
Housing Fund.
Avenida Navarro between
Calle Durango/Calle Sonora
(APN 773-234-015)
02/01/1993 08/31/2022
Deadline met – Sold to private
party in 03/2019, will remain in
listing until next year’s Report.
Deposited proceeds into the
Low- and Moderate-Income
Housing Fund.
Avenida Herrera and Calle
Sonora
(APN 773-223-022)
03/03/2011 08/31/2022
City to market vacant property
and place proceeds of sale
into the Low- and Moderate-
Income Housing Fund.
Avenida Villa between Calle
Durango/Calle Sonora
(APN 733-234-015)
03/03/2011 08/31/2022
City to market vacant property
and place proceeds of sale
into the Low- and Moderate-
Income Housing Fund.
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. In
2017, the Housing Authority approved a second resolution (Resolution 2017-005)
extending the period during which it may retain property for an additional five (5) years.
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.
The Housing Successor has not historically tracked expenditures on extremely low-
income households. 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). This fiscal year 18/19, the Housing Successor
is tracking expenditures by income level such that the Housing Authority can report on
expenditures by household income over a five-year period, as shown in Table 5. The
recorded development spent on development can be tracked to the Washington Street
Apartments project, having been completed in November 2019 officially. Of the 140 units,
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a total of 24 units are deed restricted to 30% AMI or lower. With an estimated cost of
$71,428/Unit of development costs, there has been approximately $1,714,286 spent on
Extremely Low-Income development.
TABLE 5: INCOME TEST - $ SPENT ON DEVELOPMENT
Category of Income $ Spent
LMIHAF Spent on Extremely Low-Income Households $1,714,286 Spent on
ELI (A)
Total LMIHAF (Five Year Total - FY 14/15 through 18/19) $10,000,000 Total
LMIHAF (B)
Extremely Low-Income Test (A)/(B) 17%
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
2008 to 2018.
TABLE 6: SENIOR HOUSING TEST
Unit Category # of Units
Assisted Senior Rental Units 280
Total Assisted Rental Units 1284
Senior Housing Test (%) 22%
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 7: EXCESS SURPLUS TEST
FY 2018-19
Unencumbered Amount (Available Housing Successor Funds) $11,412,397
Aggregate Deposited for Last Four Years $12,784,296
Greater of Aggregate Deposited for Last Four Years or $1,000,000 $12,784,296
Computed Excess Surplus None
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City of La Quinta
HOUSING COMMISSION MEETING: May 6, 2020
STAFF REPORT
AGENDA TITLE: REVIEW FISCAL YEAR 2020/21 PROPOSED HOUSING
AUTHORITY BUDGET, AND MAKE RECOMMENDATION TO THE HOUSING
AUTHORITY
RECOMMENDATION
Approve the fiscal year 2020/21 Housing Authority Budget and recommend
approval by the Housing Authority.
EXECUTIVE SUMMARY
•The proposed 2020/21 Housing Authority Budget is presented to the
Commission for review and approval and will subsequently be presented
to the Housing Authority on May 19.
•The proposed budget has a surplus of $486,267.
•Final budget adoption is scheduled for June 16, 2020.
FISCAL IMPACT
The preliminary Housing Authority budget projects revenues of $1,601,067
(inclusive of the annual loan repayment) and expenditures of $1,114,800.
Unappropriated loan repayment revenues of $647,767 will remain in housing
reserves.
BACKGROUND/ANALYSIS
Each Housing Fund section contains extensive notes to explain changes from
2018/19 actuals, changes in 2019/20, and projections for 2020/21. The budget
format is similar the prior fiscal year with additional comparison summary
charts.
After approval from the Housing Commission, Staff will provide an overview of
the proposed budget to the Housing Authority on May 19. If there are no
further significant recommendations for adjustments at either meeting. The
final budget will be adopted by the Housing Authority on June 16, 2020.
Should there be substantial changes (an increase or decrease of more than
10% in revenues or expenses), then proposed budget would be presented to
BUSINESS SESSION ITEM NO. 1
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the Housing Commission for reapproval prior to adoption.
Attachment 1 provides a narrative of Housing Authority revenue and expenses
including the Redevelopment Agency loan repayment to the Authority. Line
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 2020/21 Proposed Budget
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ATTACHMENT 1
Housing Authority
2020/21 PROPOSED BUDGET
The Housing Authority 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 for the Authority. COVID-19 impacts
continue to be evaluated and play a key role in budgetary discussions. With
unemployment rates rising and unknown economic conditions for the foreseeable
future, affordable housing will play a key role for communities. At the same time, many
municipal and state governments are also facing revenue shortfalls while striving to
maintain appropriate service levels.
La Quinta is not imune to these challeges. However, the City and Agency have been
prudent in their use of revenues, leveraging other resources for affordable housing
projects, establishing effective external partnerships, and long-term financial planning.
The 2020/21 Authority budget has three active funds restricted to housing operations.
Line item details for these revenues and expenses are located in Exhibit A.
REVENUES
When all funds are combined, there is no significant anticipated change in revenues
from the original 2019/20 budget to the proposed 2020/21 budget. Due to higher fund
balances, interest earnings remain strong in all funds. However, as investments mature
under current economic conditions, these revenues will decline accordingly.
Second trust deed repayments have been lowered due to unpredictable home sales.
Sale of other assets in 2019/20 for $1,061,456 reflect Housing Authority land purchased
by the City. Repayments and land purchases are typically recognized with a quarterly
budget adjustment when they are received or are anticipated to occur.
FUND
#FUND NAME
TOTAL
REVENUES
TOTAL
EXPENSES
SURPLUS /
(DEFICIT)
241 HOUSING AUTHORITY FUND 563,300 804,800 (241,500)
243*RDA LOW-MOD HOUSING FUND 687,767 250,000 437,767
249 SA 2011 LOW/MOD BOND 350,000 60,000 290,000
1,601,067 1,114,800 486,267
HOUSING AUTHORITY FUNDS
SUMMARY OF REVENUES AND EXPENDITURES BY FUND FOR 2020/21
GRAND TOTAL
* General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual
Successor Agency loan repayments as approved with the last and final recognized obligation payment schedule. The
repayment for FY 2020/21 is $647,767.
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ATTACHMENT 1
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 2020/21 the total loan repayment is $3,238,833,
which is allocated 80% to the General Fund ($2,591,066) and 20% ($647,767) 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. Remaining outstanding loan repayments after 2020/21 total
$31,790,103 of which $6,358,021 will be allocated to the Housing Authority.
EXPENSES
The operating Housing Authority Fund has new employee allocations resulting in an
increase of $148,005 to salaries and benefits. The new allocations reflect current and
anticipated work performed for the Authority. The transfer out in 2019/20 is for
retention basin improvements next to the City’s XPark, which will be partially utilized
by the authority. There are no additional transfers out proposed in 2020/21.
Revenues received from loan repayments have been used for homeless programs as
approved by the Authority each fiscal year. The proposed budget for 2020/21 homeless
programs is $250,000.
The Authority had two bond funds, one of which was exhausted with the Washington
Street Apartments Project (2004 Bond) in 2019/20. The remaining 2011 Bond is
anticipated to have a balance of $17.1 million at June 30, 2020 and a $60,000 budget
for 2020/21 provides for the ability to evaluate future affordable housing projects and
programs.
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2020 212020CITY OF
LA QUINTA
HOUSING AUTHORITY
PROPOSED BUDGET
EXHIBIT A
ATTACHMENT 1
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ATTACHMENT 1
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FUND
#FUND NAME
ESTIMATED
AVAILABLE
FUND BALANCE
July 1, 2020
ESTIMATED
REVENUES
ESTIMATED
EXPENDITURES
ESTIMATED
ENDING FUND
BALANCE
June 30, 2021
241 HOUSING AUTHORITY FUND 10,800,000 563,300 804,800 10,558,500
243*RDA LOW-MOD HOUSING FUND 2,600,000 687,767 250,000 3,037,767
249 SA 2011 LOW/MOD BOND 17,100,000 350,000 60,000 17,390,000
30,500,000 1,601,067 1,114,800 30,986,267
CITY OF LA QUINTA ESTIMATED ENDING FUND BALANCES
FISCAL YEAR ENDING JUNE 30, 2021
GRAND TOTAL
* General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual
Successor Agency loan repayments as approved with the last and final recognized obligation payment schedule. The
repayment for FY 2020/21 is $647,767.
CITY OF LA QUINTA HOUSING AUTHORITY FY 2020/21 PROPOSED BUDGETATTACHMENT 1
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As of 5/1/2020
Housing Fund Revenues
2019/20
Original
2019/20
Current
Variance
Original vs
Current
2020/21
Proposed
Variance
Current vs.
Proposed % Change
-
241 - Housing Authority 448,000 1,688,256 1,240,256 563,300 (1,124,956)-67%
243 - RDA Low-Mod Housing 22,000 40,000 18,000 40,000 - 0%
249 - SA 2011 Low/Mod Bond 270,000 350,000 80,000 350,000 - 0%
Total Revenues 740,000 2,078,256 1,338,256 953,300 (1,124,956) -54%
RDA Loan Repayment 635,065 635,065 - 647,767 12,702
Total Operating Revenues 1,375,065 2,713,321 1,338,256 1,601,067 (1,112,254)
Housing Fund Expenditures 2019/20
Original
2019/20
Current
Variance
Original vs
Current
2020/21
Proposed
Variance
Current vs.
Proposed % Change
241 - Housing Authority 609,300 990,957 381,657 804,800 (186,157) -19%
243 - RDA Low-Mod Housing 250,000 351,000 101,000 250,000 (101,000) -29%
249 - SA 2011 Low/Mod Bond 20,000 60,000 40,000 60,000 - 0%
Total Expenditures 879,300 1,401,957 522,657 1,114,800 (287,157) -20%
Budget Surplus/(Deficit)495,765 1,311,364 815,599 486,267
HOUSING AUTHORITY 2020/21 BUDGET SUMMARY
CITY OF LA QUINTA HOUSING AUTHORITY FY 2020/21 PROPOSED BUDGETATTACHMENT 1
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2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget241 - HOUSING AUTHORITY9101 - Housing Authority - Admin340 - Charges for Services1000 000 %241-9101-42301 Miscellaneous Revenue340 - Charges for Services Totals:1000 000 %360 - Use of Money & Property339,095110,000230,000150,852250,00020,0009 %241-9101-41900 Allocated Interest771005993003000 %241-9101-41915 Non-Allocated Interest58,814058,800118,7890(58,800)-100 %241-9101-43500 Home Sale Proceeds001,061,45600 (1,061,456)-100 %241-9101-45000 Sale of Other Assets360 - Use of Money & Property Totals:398,680110,0001,350,256 270,239250,300 (1,099,956)-81 %380 - Transfers In187,89250,00050,000025,000(25,000)-50 %241-9101-43504 2nd Trust Deed Repayme380 - Transfers In Totals:187,89250,00050,000025,000(25,000)-50 %9101 - Housing Authority - Admin Totals:586,572160,0001,400,256 270,239275,300 (1,124,956)-80 %9103 - Housing Authority - LQRP360 - Use of Money & Property286,872288,000288,000224,726288,00000 %241-9103-43502 Rent Revenue/LQRP360 - Use of Money & Property Totals:286,872288,000288,000 224,726288,00000 %9103 - Housing Authority - LQRP Totals:286,872288,000288,000 224,726288,00000 %241 - HOUSING AUTHORITY Totals:873,444448,0001,688,256 494,965563,300 (1,124,956)-67 %243 - RDA LOW-MOD HOUSING FUND0000 - Undesignated360 - Use of Money & Property55,55522,00040,00031,01840,00000 %243-0000-41900 Allocated Interest360 - Use of Money & Property Totals:55,55522,00040,00031,01840,00000 %0000 - Undesignated Totals:55,55522,00040,00031,01840,00000 %3 - RDA LOW-MOD HOUSING FUND Totals:55,55522,00040,00031,01840,00000 %248 - SA 2004 LO/MOD BOND FUND (Refin0000 - Undesignated340 - Charges for Services0001,820000 %248-0000-42305 Miscellaneous Reimbursem340 - Charges for Services Totals:0001,820000 %1000 001000 00339,095 110,000 230,000 150,852 250,000 20,0007710059930030058,814058,800118,7890(58,800)001,061,45600 (1,061,456)398,680110,0001,350,256 270,239250,300 (1,099,956)187,89250,00050,000025,000(25,000)187,89250,00050,000025,000(25,000)586,572160,0001,400,256 270,239275,300 (1,124,956)286,872288,000288,000224,726288,0000286,872288,000288,000 224,726288,0000286,872288,000288,000 224,726288,0000873,444448,0001,688,256 494,965563,300 (1,124,956)55,55522,00040,00031,01840,000055,55522,00040,00031,01840,000055,55522,00040,00031,01840,000055,55522,00040,00031,01840,00000001,820000001,82000CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY REVENUESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 141CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget360 - Use of Money & Property17,587005,307000 %248-0000-41900 Allocated Interest360 - Use of Money & Property Totals:17,587005,307000 %0000 - Undesignated Totals:17,587007,127000 % BOND FUND (Refinanced in 2014) Totals:17,587007,127000 %249 - SA 2011 LOW/MOD BOND FUND (Re0000 - Undesignated360 - Use of Money & Property3,289005,646000 %249-0000-41900 Allocated Interest487,581270,000350,000280,502350,00000 %249-0000-41915 Non-Allocated Interest360 - Use of Money & Property Totals:490,870270,000350,000 286,148350,00000 %0000 - Undesignated Totals:490,870270,000350,000 286,148350,00000 %BOND FUND (Refinanced in 2016) Totals:490,870270,000350,000 286,148350,00000 %17,587005,3070017,587005,3070017,587007,1270017,587007,127003,289005,64600487,581270,000350,000280,502350,0000490,870270,000350,000 286,148350,0000490,870270,000350,000 286,148350,0000490,870270,000350,000 286,148350,0000CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY REVENUESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 142CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget241 - HOUSING AUTHORITY9101 - Housing Authority - Admin50 - Salaries and Benefits130,085142,000143,595101,226254,800111,20577 %241-9101-50101 Permanent Full Time00040 000 %241-9101-50105 Salaries - Overtime7503,0003,0007503,00000 %241-9101-50110 Commissions & Boards196200200163400200100 %241-9101-50150 Other Compensation10,87810,60010,6008,18017,5006,90065 %241-9101-50200 PERS-City Portion2,26200210000 %241-9101-50215 Other Fringe Benefits22,12931,80031,80018,66657,50025,70081 %241-9101-50221 Medical Insurance33700256000 %241-9101-50222 Vision Insurance1,48200974000 %241-9101-50223 Dental Insurance580052000 %241-9101-50224 Life Insurance5879009004431,50060067 %241-9101-50225 Long Term Disability2,6003,4003,4002,5505,2001,80053 %241-9101-50230 Workers Comp Insurance1,9362,1002,1001,4823,7001,60076 %241-9101-50240 Social Security-Medicare920078000 %241-9101-50241 Social Security-FICA50 - Salaries and Benefits Totals:173,391194,000195,595 135,070343,600148,00576 %60 - Contract Services59,66781,000121,00053,874100,000(21,000)-17 %241-9101-60103 Professional Services5,0005,0005,0005,0005,00000 %241-9101-60106 Auditors13,45325,00025,0003,37035,00010,00040 %241-9101-60153 Attorney60 - Contract Services Totals:78,120111,000151,00062,244140,000(11,000)-7 %62 - Maintenance & Operations1,6113,0003,0001,211500(2,500)-83 %241-9101-60320 Travel & Training153000000 %241-9101-60400 Office Supplies1,3771,5001,5002,4702,00050033 %241-9101-60420 Operating Supplies62 - Maintenance & Operations Totals:3,1414,5004,5003,6812,500(2,000)-44 %63 - Insurance10,0006,0006,0004,5008,0002,00033 %241-9101-91843 Property & Crime Insuran63 - Insurance Totals:10,0006,0006,0004,5008,0002,00033 %69 - Internal Service Charges20,00014,00014,00010,50014,00000 %241-9101-91844 Earthquake Insurance18,10024,80024,80018,60046,70021,90088 %241-9101-98110 Information Tech Charges69 - Internal Service Charges Totals:38,10038,80038,80029,10060,70021,90056 %99 - Transfers Out00278,06200(278,062)-100 %241-9101-99900 Transfers Out99 - Transfers Out Totals:00278,06200(278,062)-100 %9101 - Housing Authority - Admin Totals:302,753354,300673,957 234,595554,800(119,157)-18 %9103 - Housing Authority - LQRP62 - Maintenance & Operations307,302255,000317,000237,455250,000(67,000)-21 %241-9103-60157 Rental Expenses130,085142,000143,595101,226254,800111,20500040 007503,0003,0007503,000019620020016340020010,87810,60010,6008,18017,5006,9002,262002100022,12931,80031,80018,66657,50025,70033700256001,4820097400580052005879009004431,5006002,6003,4003,4002,5505,2001,8001,9362,1002,1001,4823,7001,60092007800173,391194,000195,595 135,070343,600148,00559,66781,000121,00053,874100,000(21,000)5,0005,0005,0005,0005,000013,45325,00025,0003,37035,00010,00078,120111,000151,00062,244140,000(11,000)1,6113,0003,0001,211500(2,500)153000001,3771,5001,5002,4702,0005003,1414,5004,5003,6812,500(2,000)10,0006,0006,0004,5008,0002,00010,0006,0006,0004,5008,0002,00020,00014,00014,00010,50014,000018,10024,80024,80018,60046,70021,90038,10038,80038,80029,10060,70021,90000278,06200(278,062)00278,06200(278,062)302,753354,300673,957 234,595554,800(119,157)307,302255,000317,000237,455250,000(67,000)CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 143CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget62 - Maintenance & Operations Totals:307,302255,000317,000 237,455250,000(67,000)-21 %9103 - Housing Authority - LQRP Totals:307,302255,000317,000 237,455250,000(67,000)-21 %241 - HOUSING AUTHORITY Totals:610,055609,300990,957 472,049804,800(186,157)-19 %307,302255,000317,000 237,455250,000(67,000)307,302255,000317,000 237,455250,000(67,000)610,055609,300990,957 472,049804,800(186,157)CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 144CLICK HERE to Return to Agenda
Fund: 241 - HOUSING AUTHORITYPermanent Full Time254,800.00241-9101-5010120% - City Manager (80% City Manager)10% - Finance Director (90% Finance)10% - City Clerk (90% City Clerk)40% - Assistant to City Manager (60% City Manager) 60% - Management Analyst (40% Information Technology Fund)60% - Management Specialist (40% City Manager)80% - Management Assistant (20% City Manager)In 2020/21, staff has been reallocated to meet businessdemands.City Council Member Stipends (5)Professional Services100,000.00241-9101-60103Expense increase in 2019/20 due to recent request for proposalresponses. Travel & Training500.00241-9101-60320Rental Expenses250,000.00241-9103-60157In FY 2016/17 these expenses were budgeted in accountnumber 241-9102-60159.CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSE NOTESFY 2020/21 PROPOSED BUDGETATTACHMENT 145CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget243 - RDA LOW-MOD HOUSING FUND0000 - Undesignated64 - Other Expenses166,666250,000351,000100,000250,000(101,000)-29 %243-0000-60532 Homelessness Assistance64 - Other Expenses Totals:166,666250,000351,000 100,000250,000(101,000)-29 %0000 - Undesignated Totals:166,666250,000351,000 100,000250,000(101,000)-29 %3 - RDA LOW-MOD HOUSING FUND Totals:166,666250,000351,000 100,000250,000(101,000)-29 %166,666250,000351,000100,000250,000(101,000)166,666250,000351,000 100,000250,000(101,000)166,666250,000351,000 100,000250,000(101,000)166,666250,000351,000 100,000250,000(101,000)243 Fund the 2020/21 former Redevelopment Agency loan repayment of $647,767 will be recognized in reserves within this Fund. CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 146CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget248 - SA 2004 LO/MOD BOND FUND (Refin9102 - Housing Authority - Wash St Apts60 - Contract Services00145,00000(145,000)-100 %248-9102-60103 Professional Services954,4800245,5001,7390(245,500)-100 %248-9102-60159 Relocation Benefits80,735000000 %248-9102-60185 Design/Construction60 - Contract Services Totals:1,035,2150390,5001,7390(390,500)-100 %Housing Authority - Wash St Apts Totals:1,035,2150390,5001,7390(390,500)-100 % BOND FUND (Refinanced in 2014) Totals:1,035,2150390,5001,7390(390,500)-100 %00145,00000(145,000)954,4800245,5001,7390(245,500)80,735000001,035,2150390,5001,7390(390,500)1,035,2150390,5001,7390(390,500)1,035,2150390,5001,7390(390,500)248 Fund was fully used for the Washington Street Apartment rehabilitation and expansion project. CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 147CLICK HERE to Return to Agenda
2018/19Actuals2019/20Original Budget2019/20Current Budget2019/20YTD Activity*2020/21Proposed Budget20/21 vs. Current 19/20% Change in Budget249 - SA 2011 LOW/MOD BOND FUND (Re0000 - Undesignated60 - Contract Services7,376,024000000 %249-0000-60188 Construction60 - Contract Services Totals:7,376,024000000 %68 - Capital Expenses020,00060,000060,00000 %249-0000-80050 Affordable Housing Projec68 - Capital Expenses Totals:020,00060,000060,00000 %0000 - Undesignated Totals:7,376,02420,00060,000060,00000 %BOND FUND (Refinanced in 2016) Totals:7,376,02420,00060,000060,00000 %7,376,024000007,376,02400000020,00060,000060,0000020,00060,000060,00007,376,02420,00060,000060,00007,376,02420,00060,000060,0000249 Fund was partially used for the Washington Street Apartment rehabilitation and expansion project. Remaining funds are available for future housing projects. CITY OF LA QUINTA HOUSING AUTHORITYHOUSING AUTHORITY EXPENSESFY 2020/21 PROPOSED BUDGET* As of 4/27/2020ATTACHMENT 148CLICK HERE to Return to Agenda
City of La Quinta
HOUSING COMMISSION MEETING: May 6, 2020
STAFF REPORT
AGENDA TITLE: APPROVE CONTRACT SERVICES AGREEMENT WITH LA QUINTA
PALMS REALTY FOR RESIDENTIAL PROPERTY MANAGEMENT SERVICES
RECOMMENDATION
Recommend the Housing Authority approve contract services agreement with La Quinta
Palms Realty for residential property management services in an amount not to exceed
$42,000 annually for the first three years; and authorize the Executive Director to
execute the agreement.
EXECUTIVE SUMMARY
•In February and March 2019, staff solicited proposals for residential property
management services and La Quinta Palms Realty (LQPR) was selected.
•As the current vendor, LQPR would provide continued residential property
management services of our 28 homes in the La Quinta Cove for low-income
persons.
•The current contract with LQPR is set to expire June 30, 2020, and the new
contract will begin July 1, 2020, with an initial term set for expiration on June 30,
2023.
FISCAL IMPACT
LQPR would provide residential property management services for a fee of $3,500 per
month, or $42,000 per year. The total contract cost is not-to-exceed $126,000 for the
initial contract term of three (3) years. Two extensions of one (1) year each are optional,
with costs subject to a potential 5% increase in total from the original annual fee. Funds
are available in the Housing Authority budget (241-9101-60103, Professional Services).
BACKGROUND/ANALYSIS
In February 2020, staff solicited request for proposals (RFP) for residential property
management services and received one proposal. Staff conducted outreach during the
first week of the RFP period, requesting proposals from local vendors such as Real
Property Management, Abode Communities, Hyder Property Management, and RPM
Company. Outreach was conducted through email and phone, with several of these
companies stating they’d review the RFP and respond. The one proposal received during
the three weeks the RFP was open was La Quinta Palms Realty’s.
LQPR is based out of La Quinta and has provided services to the Coachella Valley since
its establishment in 1982 and has provided services to the City of La Quinta for several
years as our residential property management team.
Upon the Authority’s approval, the initial term of this Agreement would begin July 1,
2020, expire on June 30, 2023, with an option to renew for two extensions, each being
one additional year (Attachment 1). The City has the right to terminate the Agreement
at any time with a 30-day written notice.
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Cost summary for the services are as follows:
YEAR MONTHLY BASE ANNUAL BASE NOT TO EXCEED
2020/2021 $3,500 $42,000 $42,000
2021/2022 $3,500 $42,000 $42,000
2022/2023 $3,500 $42,000 $42,000
INITIAL 3-YEAR TERM $126,000 $126,000
2023/2024 $3,675 $44,100 $44,100
2024/2025 $3,675 $44,100 $44,100
OPTIONAL EXTENSIONS (2-YEARS) $88,200 $88,200
TOTAL CONTRACT NOT TO EXCEED $214,200 $214,200
ALTERNATIVES
The Commission may elect to not recommend approval of this Agreement. However,
staff does not recommend this alternative due to LQPR’s excellent services performed
thus far for the City, and familiarity with the work to be performed.
Prepared by: Doug Kinley, Management Specialist
Approved by: Gilbert Villalpando, Assistant to City Manager
Attachment: 1.Contract Services Agreement with La Quinta Palms Realty
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POWER POINTS
HOUSING
COMMISSION
SPECIAL
MEETING
MAY 6, 2020
Housing Commission ‐ Special Meeting May 6, 2020
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Housing Commission
Special Meeting
May 6, 2020
Housing Commission Meeting
May 6, 2020
B1 – Review Fiscal Year 2020/21 Proposed
Housing Authority and Make
Recommendation to the Housing Authority
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Housing Commission ‐ Special Meeting May 6, 2020
2
FY 2020/21 Budget Schedule
Jan. 11 – Community Workshop
April 7 ‐ CIP – City Council
May 5 – City Council
May 6 – Housing Commission
May 13 – Financial Commission
May 19 – City Council
June 2 – City Council
June 3 – Financial Commission
June 16 – City Council & Authority
Budget Adoption
Revenue Projections
Fund 241 – No anticipated changes to rental income
Fund 241 – Interest earnings may be reduced, currently at $250,000
Fund 243 – Includes annual loan repayment $647,767
Fund 249 ‐ Interest earnings may be reduced, currently at $350,000
Housing Fund Revenues
2019/20
Original
2019/20
Current
Variance
Original vs
Current
2020/21
Proposed
Variance
Current vs.
Proposed % Change
-
241 - Housing Authority 448,000 1,688,256 1,240,256 563,300 (1,124,956)-67%
243 - RDA Low-Mod Housing 22,000 40,000 18,000 40,000 - 0%
249 - SA 2011 Low/Mod Bond 270,000 350,000 80,000 350,000 - 0%
Total Revenues 740,000 2,078,256 1,338,256 953,300 (1,124,956) -54%
RDA Loan Repayment 635,065 635,065 - 647,767 12,702
Total Operating Revenues 1,375,065 2,713,321 1,338,256 1,601,067 (1,112,254)
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Housing Commission ‐ Special Meeting May 6, 2020
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Expense Projections
Fund 241 – Professional services, legal fees, upgrades and repairs, insurances,
information technology charges
Fund 243 – Homelessness funding
Fund 249 ‐ Evaluate future affordable housing projects
Housing Fund Expenditures 2019/20
Original
2019/20
Current
Variance
Original vs
Current
2020/21
Proposed
Variance
Current vs.
Proposed % Change
241 - Housing Authority 609,300 990,957 381,657 804,800 (186,157) -19%
243 - RDA Low-Mod Housing 250,000 351,000 101,000 250,000 (101,000) -29%
249 - SA 2011 Low/Mod Bond 20,000 60,000 40,000 60,000 - 0%
Total Expenditures 879,300 1,401,957 522,657 1,114,800 (287,157) -20%
Where we stand today?
FUND
#FUND NAME
TOTAL
REVENUES
TOTAL
EXPENSES
SURPLUS /
(DEFICIT)
241 HOUSING AUTHORITY FUND 563,300 804,800 (241,500)
243* RDA LOW-MOD HOUSING FUND 687,767 250,000 437,767
249 SA 2011 LOW/MOD BOND 350,000 60,000 290,000
1,601,067 1,114,800 486,267
HOUSING AUTHORITY FUNDS
SUMMARY OF REVENUES AND EXPENDITURES BY FUND FOR 2020/21
GRAND TOTAL
* General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual Successor Agency
loan repayments as approved with the last and final recognized obligation payment schedule. The repayment for FY 2020/21 is
$647,767.
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Housing Commission ‐ Special Meeting May 6, 2020
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Housing Fund Balances
FUND
#FUND NAME
ESTIMATED
AVAILABLE
FUND
BALANCE
July 1, 2020
ESTIMATED
REVENUES
ESTIMATED
EXPENDITURES
ESTIMATED
ENDING FUND
BALANCE
June 30, 2021
241 HOUSING AUTHORITY FUND 10,800,000 563,300 804,800 10,558,500
243* RDA LOW-MOD HOUSING FUND 2,600,000 687,767 250,000 3,037,767
249 SA 2011 LOW/MOD BOND 17,100,000 350,000 60,000 17,390,000
30,500,000 1,601,067 1,114,800 30,986,267
CITY OF LA QUINTA ESTIMATED ENDING FUND BALANCES
FISCAL YEAR ENDING JUNE 30, 2021
GRAND TOTAL
* General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual
Successor Agency loan repayments as approved with the last and final recognized obligation payment schedule. The
repayment for FY 2020/21 is $647,767.
What’s next?
•Housing Authority review on 5/19/2020
•Budget Adoption on 6/19/2020
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Housing Commission Meeting
May 6, 2020
B2 – RECOMMEND THE HOUSING AUTHORITY APPROVE
CONTRACT SERVICES AGREEMENT WITH LA QUINTA PALMS
REALTY TO PROVIDE RESIDENTIAL PROPERTY MANAGEMENT
SERVICES
Contract for
Residential
Property
Management
Services
The City of La Quinta sent a Request for Proposals out in
February 2020 soliciting vendors that can provide Residential
Property Management Services for the Housing Authority.
Staff solicited proposals directly from several firms, both local
and recommended by neighboring cities. We received one
proposal from the incumbent, La Quinta Palms Realty.
After 16 years of service to the City, Staff is recommending La
Quinta Palms Realty as the approved vendor to provide
continued Residential Property Management Services for the
Housing Authority.
The new Contract will begin July 1, 2020, have an initial term of
three years until June 30, 2023, with an option of two 1‐year
extensions. Total Contract is a not‐to‐exceed amount of
$214,200 w/ extensions.
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Questions?
Housing Commission Meeting
Next Meeting Date
June 10, 2020
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