2021 01 12 HC Special MeetingHOUSING COMMISSION 1 JANUARY 12, 2021
SPECIAL MEETING
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 Tuesday, January 12,
2021 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 emergency meeting by
teleconference. The emergency meeting is called for the following purpose:
CONSENT CALENDAR
1. APPROVE REGULAR MEETING MINUTES OF SEPTEMBER 9, 2020
BUSINESS SESSION
1. RECEIVE AND FILE FISCAL YEAR 2019/2020 HOUSING
AUTHORITY YEAR-END BUDGET REPORT
2. RECEIVE AND FILE FISCAL YEAR 2020/21 FIRST QUARTER
HOUSING AUTHORITY BUDGET REPORT
3. RECOMMEND FUNDING OPTION FOR AREA HOMELESS
PREVENTION PROGRAMS FOR FY 2020/21
4. RECOMMEND THE HOUSING AUTHORITY APPROVE DRAFT SCOPE
OF SERVICES TO BE PROVIDED BY J&H ASSET PROPERTY MGT.,
INC. FOR RESIDENTIAL PROPERTY MANAGEMENT SERVICES AT
DUNE PALMS MOBILE HOME PARK
STAFF REPORTS AND INFORMATIONAL ITEMS
1. UPDATE ON THE REGIONAL HOUSING NEEDS ASSESSMENT
MANDATE
2. INFORMATIONAL UPDATE ON HOUSING ELEMENT UPDATE
HOUSING COMMISSION 2 JANUARY 12, 2021
SPECIAL MEETING
Dated: January 12, 2021 /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 January 12, 2021 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 , 2020.
MONIKA RADEVA, City Clerk
HOUSING COMMISSION AGENDA 1 January 12, 2021
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
TUESDAY, JANUARY 12, 2021 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:
HOUSING COMMISSION AGENDA 2 January 12, 2021
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.
******************************
HOUSING COMMISSION AGENDA 3 January 12, 2021
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
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one
motion.
1. APPROVE REGULAR MEETING MINUTES OF SEPTEMBER 9, 2020
BUSINESS SESSION
1. RECEIVE AND FILE FISCAL YEAR 2019/2020 HOUSING AUTHORITY YEAR-
END BUDGET REPORT
2. RECEIVE AND FILE FISCAL YEAR 2020/21 FIRST QUARTER HOUSING
AUTHORITY BUDGET REPORT
3. RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION
PROGRAMS FOR FY 2020/21
4. RECOMMEND THE HOUSING AUTHORITY APPROVE DRAFT SCOPE OF
SERVICES TO BE PROVIDED BY J&H ASSET PROPERTY MGT., INC. FOR
RESIDENTIAL PROPERTY MANAGEMENT SERVICES AT DUNE PALMS
MOBILE HOME PARK
STUDY SESSION – NONE
STAFF REPORTS AND INFORMATIONAL ITEMS
1. UPDATE ON THE REGIONAL HOUSING NEEDS ASSESSMENT MANDATE
HOUSING COMMISSION AGENDA 4 January 12, 2021
SPECIAL MEETING
2. INFORMATIONAL UPDATE ON HOUSING ELEMENT UPDATE
COMMISSIONERS’ ITEMS – NONE
ADJOURNMENT
*********************************
The next regular quarterly meeting of the La Quinta Housing Commission will
be held on March 10 , 2021, 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, Housing 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 January 11, 2021.
DATED: January 8 , 2021
Doug Kinley III
Doug Kinley, Housing 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.
HOUSING COMMISSION MINUTES Page 1 of 2 SEPTEMBER 9, 2020
HOUSING COMMISSION
MINUTES
TUESDAY, SEPTEMBER 9, 2020
CALL TO ORDER
A meeting of the La Quinta Housing Commission (Commission) was called to
order at 4:00 p.m. by Commissioner Casto.
This meeting was held by teleconference pursuant to Executive orders N -25-
20, N-29-20, N-33-20, and N-35-20, executed to 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 of the Ralph M. Brown Act
(Government Code § 54950 et seq.).
PRESENT: Commissioners Casto, Davidson, Pacheco
ABSENT: Chairperson Gaeta-Mejia, Commissioner McDonough
STAFF PRESENT: Management Specialist Kinley, Management Analyst and
Commission Secretary Camarena
PLEDGE OF ALLEGIANCE
Commissioner Casto led the audience in the Pledge of Allegiance.
CONFIRMATION OF AGENDA - Confirmed
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
Management Specialist Kinley said no requests for WRITTEN PUBLIC
COMMENTS or VERBAL COMMENTS have been received for this meeting.
ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS
- None
CONSENT CALENDAR
1. APPROVE SPECIAL MEETING MINUTES DATED JUNE 10, 2020
HOUSING COMMISSION MINUTES Page 2 of 2 SEPTEMBER 9, 2020
MOTION – A motion was made and seconded by Commissioners
Davidson/Pacheco to approve the Consent Calendar as recommended. Motion
passed – ayes (3), noes (0), abstain (2), absent (2 – Davidson, Gaeta-Mejia).
BUSINESS SESSION - None
STUDY SESSION – None
STAFF REPORTS AND INFORMATIONAL ITEMS
1. AFFORDABLE HOUSING DEVELOPMENT OPPORTUNITIES FOR
CALENDAR YEAR 2020-21 – VERBAL UPDATE BY HOUSING SPECIALIST
DOUG KINLEY
Management Analyst Ferreira provided an update for two projects upcoming
in FY 20/21. First, acquisition of the Dune Palms Mobile Home Park is in its
due diligence period, with more information being available by end of calendar
year 2020. Second, continuing efforts to market and sell Housing Authority
lots currently being appraised for market value.
Management Specialist Kinley informed the Commission of the United Lift
program, put together by local affordable housing advocate Lift to Rise and
the United Way organization, which provides for residents who need rental
assistance. City staff has been working with Lift to Rise in sharing the
information of the program to our residents and social media. Also discussed
was the COVID-19 Small Business Emergency Economic Relief Program. Staff
invited the Commission to attend the September 15, 2020 Council Meeting for
staff’s presentation of the program’s status.
COMMISSIONER’S ITEMS – None
ADJOURNMENT
There being no further business, a motion was made and seconded by
Commissioners Casto/Davidson to adjourn the meeting at 4:22 p.m. Motion
passed – ayes (3), noes (0), abstain (2), absent (2 – Davidson, Gaeta-Mejia).
Respectfully submitted,
Reyna Camarena
REYNA CAMARENA, Commission Secretary
City of La Quinta, California
City of La Quinta
HOUSING COMMISSION MEETING: January 12, 2021
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 HOUSING
AUTHORITY YEAR-END BUDGET REPORT
RECOMMENDATION
Receive and file 2019/20 Housing Authority Year-End Budget Report.
EXECUTIVE SUMMARY
• After closing the prior fiscal year, Finance presents a year-end summary
that compares the final budget to actual transactions.
• Overall revenue was $476,575 lower than budgeted.
• Overall expenditures were $437,995 under budget and $320,762 would
be carried over to fiscal year (FY) 2020/21.
• The Report was presented and approved by the Housing Authority on
December 15, 2020.
BACKGROUND/ANALYSIS
Total adjusted revenues were under budget by $476,575; mostly due lagging
proceeds from the sale of other assets, which will be recognized in FY 2020/21.
Total expenditures were under budget by $437,995 with $320,762 to be
carried over to FY 2020/21 for the housing element update and drainage
improvements.
Revenues, expenditures, carryovers, and fund balances are discussed in the
Fiscal Year-End 2019/20 Housing Authority Budget Report (Attachment 1).
ALTERNTIVES
No alternatives are applicable.
Prepared by: Karla Romero, Finance Director
Attachment 1: Fiscal Year-End 2019/20 Housing Authority Budget Report
BUSINESS SESSION ITEM NO. 1
HOUSING AUTHORITY
FISCAL YEAR-END 2019/20 BUDGET REPORT
The La Quinta Housing Authority oversee four funds, which are restricted for
affordable housing programs. This report focuses on significant activities and
variances from the final budget during the fiscal year (FY) ended June 30,
2020.
REVENUES
Total revenues, after non-cash adjustments were under budget by $476,575.
Revenues are summarized by fund below and detailed in Exhibit A.
Larger revenue variances from the final budget are described below.
• Use of Money and Property includes the annual fair market value
adjustment to the Authority’s investments; noted as GASB 31 Interest
on the revenue line items. In FY 2019/20 the portfolio holdings were
valued greater than book value due to market conditions, therefore a
positive adjustment in three of the funds in the total amount of
$376,358 was recorded. This amount has been reduced as an
adjustment to revenues, as it is not cash received nor anticipated to be
received in the future.
The Authority’s investments have a five-year horizon with laddered
maturities. The Authority has worked diligently to leverage highly
restricted investments under volatile market conditions. At June 30,
2019, the portfolio was earning a 2.04% rate of return and on June 30,
Housing Authority Revenues Final Budget Actual Variance
Housing Authority Fund 1,688,256 1,474,316 (213,940)
RDA Low-Mod Housing Fund 40,000 269,013 229,013
2004 Bond Fund - 4,326 4,326
2011 Bond Fund 350,000 403,942 53,942
Total Revenues 2,078,256 2,151,597 73,341
Non-Cash Adjustments
Investments Fair Market Value Adjustment (376,358) (376,358)
RDA Loan Interest Earned, Extraordinary Gain (173,558) (173,558)
Total Adjusted Revenues 1,601,681 (476,575)
ATTACHMENT 1
2020 the return was 1.82%. Today the average investment purchases
are yielding about a 0.50% return, which will reduce interest earnings
going forward.
• Miscellaneous Revenue includes interest earned on two outstanding
receivable notes; Coral Mountain Partners and LINC Housing earned
$121,857 and $8,805 respectively in FY 2019/20.
• In FY 2019/20, the Authority approved the sale of portions of real
property at 46150-46176 Dune Palms Road to the City of La Quinta for
a future park and drainage improvements. Due to COVID impacts the
transaction was delayed and revenues in the amount of $1,061,456
were transferred to the Authority in FY 2020/21.
• A Transfer In for $386,692 was recorded to close out the 2004 Bond
Fund, which was used for the Washington Street Apartments
improvement and expansion project.
• Extraordinary Gain revenue
of $173,558 in the RDA
Low-Mod Housing Fund
records the annual former
Redevelopment Agency loan
repayment interest earned
in FY 2019/20. The loan
repayments are structured
to pay all principal first, then
interest. Each year the City
records the payment
received and interest
earned in accordance with
the State Department of
Finance approved loan
repayment schedule. This
amount is also reduced from
revenues as an adjustment
because it is earned, but not
received until a future date.
ATTACHMENT 1
EXPENSES
Housing Authority expenses by fund are summarized below and detailed in
Exhibit B.
Carryovers from FY 2019/20 to FY 2020/21, detailed in Exhibit C, increased
by $47,200 from the original anticipated amount of $278,062 to $320,762.
HOUSING AUTHORITY FUND (241)
This fund recognizes administrative expenses and housing activities for
several Authority owned properties in the La Quinta Cove. Overall expenses
were $4,996 greater than the previous year.
Combined savings of $97,844 were recognized for salaries and benefits,
professional program oversight, legal services, and rental expenses. Of this
amount $42,700 is being carried over to FY 2020/21 to ensure proper funding
for the ongoing State mandated housing element update. This fund also had
savings of $278,062 from Transfers Out to the Capital Improvement Fund,
which are also being carried over for drainage improvements which will benefit
the housing parcel located adjacent to the future skate park on Dune Palms
and Westward Ho.
Housing Authority Expenditures Final Budget Actual Variance
Housing Authority Fund
Administration 673,957 316,833 (357,124)
La Quinta Cove Properties 317,000 298,218 (18,782)
RDA Low-Mod Housing Fund 351,000 350,779 (221)
2004 Bond Fund 390,500 388,632 (1,868)
2011 Bond Fund 60,000 - (60,000)
Total Expenditures 1,792,457 1,354,462 (437,995)
Capital Project Carryovers 278,062
Operational/Contractual Carryovers 42,700
Total Carryovers 320,762
Total Expenditures After Carryovers 1,792,457 1,675,224 (117,233)
ATTACHMENT 1
Funds not being carried over are recognized as Restricted Fund balance in the
Housing Fund. As of June 30, 2020, the available balance in this fund was
$11,338,100.
LOW-MOD HOUSING FUND (243)
Revenue in this fund is solely derived from Redevelopment Agency loan
repayments and interest earnings. Annually loan repayments are allocated
80% to the General Fund and 20% to the Low -Mod Housing Fund. The total
outstanding loan balance as of June 30, 2020 is $32,587,178; with
$6,517,436 or 20% recognized in this fund as a future receivable.
In FY 2019/20, a total of $350,779 was expensed for homelessness programs
in the greater Coachella Valley. This amount included $101,001 carried over
from 2018/19 to 2019/20. As of June 30, 2020, the available balance in this
fund was $2,580,132.
2004 BOND FUND (248) & 2011 BOND FUND (249)
WSA’s rehabilitation and relocation plan expenses were incorporated in the
2004 and 2011 Bond Fund budgets, these bonds were refinanced in 2014 and
2016 respectively. The final relocation expenses were paid in FY 2019/20 from
the 2004 Bond. To close out the project and fund, $386,692 was transferred
from the 2004 Bond Fund to the Housing Authority Fund, which is also
restricted for housing programs. The 2011 Bond Fund had an ending balance
of $17,159,715 as of June 30, 2020.
FUND BALANCES
Below is a summary of Housing Authority fund balances as of June 30, 2020.
These funds are restricted for housing programs.
Housing Authority Fund (241) 11,338,100
Low-Mod Housing Fund (243) 2,580,132
2011 Bond Fund (249)17,159,715
TOTAL HOUSING FUNDS 31,077,947
Housing Fund Fund Balance
as of 6/30/20
ATTACHMENT 1
2018/19
Actuals
2019/20
Original Budget
2019/20
Final Budget
2019/20
Actuals
241 - HOUSING AUTHORITY
339,095 110,000 230,000 190,627241-9101-41900 Allocated Interest
0 0 0 239,559241-9101-41910 GASB 31 Interest
771 0 0 131,261241-9101-41915 Non-Allocated Interest
1001241-9101-42301 Miscellaneous Revenue
0 0 0 107,695241-9101-42706 Loan Repayments
58,814 0 58,800 58,789241-9101-43500 Home Sale Proceeds
187,892 50,000 50,000 60,000241-9101-43504 2nd Trust Deed Repayments
0 0 1,061,456 0241-9101-45000 Sale of Other Assets
0 0 0 386,692241-9101-49500 Transfers In
286,872 288,000 288,000 299,692241-9103-43502 Rent Revenue/LQRP
Total:873,444 448,000 1,688,256 1,474,316
243 - RDA LOW-MOD HOUSING FUND
55,555 22,000 40,000 40,939243-0000-41900 Allocated Interest
0 0 0 54,515243-0000-41910 GASB 31 Interest
0 0 0 173,558243-0000-48500 Extraordinary Gain
Total:55,555 22,000 40,000 269,013
248 - SA 2004 LO/MOD BOND FUND (Refinanced i
17,587 0 0 4,326248-0000-41900 Allocated Interest
Total:17,587 0 0 4,326
249 - SA 2011 LOW/MOD BOND FUND (Refinanced
3,289 0 0 8,054249-0000-41900 Allocated Interest
0 0 0 82,284249-0000-41910 GASB 31 Interest
487,581 270,000 350,000 313,604249-0000-41915 Non-Allocated Interest
Total:490,870 270,000 350,000 403,942
HOUSING AUTHORITY REVENUE 1,437,457 740,000 2,078,256 2,151,596
339,095 110,000 230,000 190,627
0 0 0 239,559
771 0 0 131,261
1001
0 0 0 107,695
58,814 0 58,800 58,789
187,892 50,000 50,000 60,000
0 0 1,061,456 0
0 0 0 386,692
286,872 288,000 288,000 299,692
873,444 448,000 1,688,256 1,474,316
55,555 22,000 40,000 40,939
0 0 0 54,515
0 0 0 173,558
55,555 22,000 40,000 269,013
17,587 0 0 4,326
17,587 0 0 4,326
3,289 0 0 8,054
0 0 0 82,284
487,581 270,000 350,000 313,604
490,870 270,000 350,000 403,942
1,437,457 740,000 2,078,256 2,151,596
CITY OF LA QUINTA
HOUSING AUTHORITY FUNDS REVENUE DETAILS
EXHIBIT A
2019/20 YEAR-END BUDGET REPORT
Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020.
ATTACHMENT 1
2018/19
Actuals
2019/20
Original Budget
2019/20
Final Budget
2019/20
Actuals
241 - HOUSING AUTHORITY
9101 - Housing Authority - Admin
Salaries and Benefits
130,085 142,000 143,595 136,322241-9101-50101 Permanent Full Time
000578241-9101-50105 Salaries - Overtime
750 3,000 3,000 900241-9101-50110 Commissions & Boards
196 200 200 193241-9101-50150 Other Compensation
10,878 10,600 10,600 11,131241-9101-50200 PERS-City Portion
2,262 0 0 261241-9101-50215 Other Fringe Benefits
22,129 31,800 31,800 24,158241-9101-50221 Medical Insurance
337 0 0 330241-9101-50222 Vision Insurance
1,482 0 0 1,259241-9101-50223 Dental Insurance
58 0 0 67241-9101-50224 Life Insurance
587 900 900 578241-9101-50225 Long Term Disability
2,600 3,400 3,400 3,400241-9101-50230 Workers Comp Insurance
1,936 2,100 2,100 2,002241-9101-50240 Social Security-Medicare
92 0 0 105241-9101-50241 Social Security-FICA
50 - Salaries and Benefits Totals:173,391 194,000 195,595 181,285
Contract Services
59,667 81,000 121,000 78,218241-9101-60103 Professional Services
5,000 5,000 5,000 5,000241-9101-60106 Auditors
13,453 25,000 25,000 3,849241-9101-60153 Attorney
60 - Contract Services Totals:78,120 111,000 151,000 87,067
Maintenance & Operations
1,611 3,000 3,000 1,211241-9101-60320 Travel & Training
153 0 0 0241-9101-60400 Office Supplies
1,377 1,500 1,500 2,470241-9101-60420 Operating Supplies
62 - Maintenance & Operations Totals:3,141 4,500 4,500 3,681
Insurance
10,000 6,000 6,000 6,000241-9101-91843 Property & Crime Insurance
63 - Insurance Totals:10,000 6,000 6,000 6,000
Internal Service Charges
20,000 14,000 14,000 14,000241-9101-91844 Earthquake Insurance
18,100 24,800 24,800 24,800241-9101-98110 Information Tech Charges
69 - Internal Service Charges Totals:38,100 38,800 38,800 38,800
Transfers Out
0 0 278,062 0241-9101-99900 Transfers Out
99 - Transfers Out Totals:0 0 278,062 0
9101 - Housing Authority - Admin Totals:302,753 354,300 673,957 316,833
9103 - Housing Authority - LQRP
Maintenance & Operations
307,302 255,000 317,000 298,218241-9103-60157 Rental Expenses
62 - Maintenance & Operations Totals:307,302 255,000 317,000 298,218
9103 - Housing Authority - LQRP Totals:307,302 255,000 317,000 298,218
241 - HOUSING AUTHORITY Totals:610,055 609,300 990,957 615,051
130,085 142,000 143,595 136,322
000578
750 3,000 3,000 900
196 200 200 193
10,878 10,600 10,600 11,131
2,262 0 0 261
22,129 31,800 31,800 24,158
337 0 0 330
1,482 0 0 1,259
58 0 0 67
587 900 900 578
2,600 3,400 3,400 3,400
1,936 2,100 2,100 2,002
92 0 0 105
173,391 194,000 195,595 181,285
59,667 81,000 121,000 78,218
5,000 5,000 5,000 5,000
13,453 25,000 25,000 3,849
78,120 111,000 151,000 87,067
1,611 3,000 3,000 1,211
153 0 0 0
1,377 1,500 1,500 2,470
3,141 4,500 4,500 3,681
10,000 6,000 6,000 6,000
10,000 6,000 6,000 6,000
20,000 14,000 14,000 14,000
18,100 24,800 24,800 24,800
38,100 38,800 38,800 38,800
0 0 278,062 0
0 0 278,062 0
302,753 354,300 673,957 316,833
307,302 255,000 317,000 298,218
307,302 255,000 317,000 298,218
307,302 255,000 317,000 298,218
610,055 609,300 990,957 615,051
CITY OF LA QUINTA
HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND
EXHIBIT B
2019/20 YEAR-END BUDGET REPORT
Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020.
ATTACHMENT 1
2018/19
Actuals
2019/20
Original Budget
2019/20
Final Budget
2019/20
Actuals
243 - RDA LOW-MOD HOUSING FUND
0000 - Undesignated
Other Expenses
166,666 250,000 351,000 350,779243-0000-60532 Homelessness Assistance
64 - Other Expenses Totals:166,666 250,000 351,000 350,779
0000 - Undesignated Totals:166,666 250,000 351,000 350,779
243 - RDA LOW-MOD HOUSING FUND Totals:166,666 250,000 351,000 350,779
166,666 250,000 351,000 350,779
166,666 250,000 351,000 350,779
166,666 250,000 351,000 350,779
166,666 250,000 351,000 350,779
CITY OF LA QUINTA
HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND
EXHIBIT B
2019/20 YEAR-END BUDGET REPORT
Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020.
ATTACHMENT 1
2018/19
Actuals
2019/20
Original Budget
2019/20
Final Budget
2019/20
Actuals
248 - SA 2004 LO/MOD BOND FUND (Refinanced in 201
9002 - ? Missing Department Description - 9002
Transfers Out
0 0 0 386,692248-9002-99900 Transfers Out
99 - Transfers Out Totals:0 0 0 386,692
002 - ? Missing Department Description - 9002 Totals:0 0 0 386,692
9102 - Housing Authority - Wash St Apts
Contract Services
0 0 145,000 0248-9102-60103 Professional Services
954,480 0 245,500 1,939248-9102-60159 Relocation Benefits
80,735 0 0 0248-9102-60185 Design/Construction
60 - Contract Services Totals:1,035,215 0 390,500 1,939
9102 - Housing Authority - Wash St Apts Totals:1,035,215 0 390,500 1,939
2004 LO/MOD BOND FUND (Refinanced in 2014) Totals:1,035,215 0 390,500 388,632
0 0 0 386,692
0 0 0 386,692
0 0 0 386,692
0 0 145,000 0
954,480 0 245,500 1,939
80,735 0 0 0
1,035,215 0 390,500 1,939
1,035,215 0 390,500 1,939
1,035,215 0 390,500 388,632
CITY OF LA QUINTA
HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND
EXHIBIT B
2019/20 YEAR-END BUDGET REPORT
Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020.
ATTACHMENT 1
2018/19
Actuals
2019/20
Original Budget
2019/20
Final Budget
2019/20
Actuals
249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 20
0000 - Undesignated
Contract Services
7,376,024 0 0 0249-0000-60188 Construction
60 - Contract Services Totals:7,376,024 0 0 0
Capital Expenses
0 20,000 60,000 0249-0000-80050 Affordable Housing Project Develop
68 - Capital Expenses Totals:0 20,000 60,000 0
0000 - Undesignated Totals:7,376,024 20,000 60,000 0
11 LOW/MOD BOND FUND (Refinanced in 2016) Totals:7,376,024 20,000 60,000 0
7,376,024 0 0 0
7,376,024 0 0 0
0 20,000 60,000 0
0 20,000 60,000 0
7,376,024 20,000 60,000 0
7,376,024 20,000 60,000 0
CITY OF LA QUINTA
HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND
EXHIBIT B
2019/20 YEAR-END BUDGET REPORT
Unaudited, final numbers will be reported in the 2019/20 Financial Statements issued in December 2020.
ATTACHMENT 1
Vendor/Program Account Number Description Estimated Revised
Housing Element Update, State Mandate 241-9101-60103 Professional Services - 42,700$
Housing Retenion Basin, Drainage
Improvements 241-9101-99900 Transfers Out to Capital
Improvement Fund 278,062 278,062$
$ 278,062 $ 320,762
Revised Continuing Appropriations/Carryovers from 2019/20 to 2020/21
TOTAL AUTHORITY CARRYOVERS
NOTE: In June 2020 when the budget was adopted all carryovers were estimates based on projected invoices to end fiscal year
2019/20. Upon completion of the final audit (October 2020), Finance verified account balances and additional carryover
recommendations based on current budgetary needs and constraints due to COVID. In no event shall a carryover exceed the revised
per account amount noted above.
ATTACHMENT 1
City of La Quinta
HOUSING COMMISSION MEETING: January 12, 2021
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2020/21 FIRST QUARTER
HOUSING AUTHORITY BUDGET REPORT
RECOMMENDATION
Receive and file fiscal year 2020/21 First Quarter Housing Authority Budget
Report.
EXECUTIVE SUMMARY
• The Fiscal Year 2020/21 First Quarter Housing Authority Budget Report
(Attachment 1) provides an update of the Authority’s fiscal activities from
July to September 2020.
• A budget report is prepared quarterly to assess the adopted budget and
incorporate adjustments based on current economic conditions and
operational requirements.
• The Report was presented and approved by the Housing Authority on
December 15, 2020.
BACKGROUND/ANALYSIS
Throughout the fiscal year staff monitors the budget and proposes adjustments
to reflect current conditions and ongoing operational needs. Requests are
reviewed and discussed before recommending approval in the budget report
(Attachment 1). Funds with no adjustments from the originally presented
2020/21 Budget have been excluded from the report.
The Report was presented and approved by the Housing Authority Board on
December 15, 2020.
ALTERNATIVES
No alternatives are applicable.
Prepared by: Karla Romero, Finance Director
Attachment 1: Fiscal Year 2020/21 First Quarter Housing Authority Budget
Report
BUSINESS SESSION ITEM NO. 2
HOUSING AUTHORITY
FISCAL YEAR 2020/21 FIRST QUARTER BUDGET REPORT
The following is a summary of budgetary adjustments requested for the first
quarter of fiscal year (FY) 2020/21. Account details are provided in Exhibit A
and discussed in this report.
REVENUES
Total revenue increases of $1,202,456 described as follows:
• A reduction of $30,000 to interest earnings based on interested earned
in the prior year and current market conditions yielding lower interest
returns
• An increase of $171,000 for second trust deed repayments. To date
three outstanding balances have been repaid. This adjust reflects
current activity.
• An increase of $1,061,456 in the sale of other assets to recognize the
approved sale of portions of real property located at 46150-46176 Dune
Palms Road to the City of La Quinta for a future park and drainage
improvements. Due to COVID impacts the transaction was delayed and
revenues in the amount of $1,061,456 were transferred to the Authority
in FY 2020/21.
EXPENSES
During the first quarter, there are no proposed expenditure adjustments for
any Authority fund.
Fund Revenues Expenses
Housing Authority Fund (241)1,202,456$ -$
Low-Mod Housing Fund (243)- -
2011 Bond Fund (249)- -
TOTAL FUND ADJUSTMENTS 1,202,456$ -$
2020/21 FIRST QUARTER
RECOMMENDED HOUSING AUTHORITY ADJUSTMENTS
ATTACHMENT 1
City of La Quinta
Housing Authority
FY 2020/21 Recommended First Quarter Budget Adjustments
Exhibit A
Account No. Description Revenues Expenses
241-9101-41900 Allocated Interest (30,000)
241-9101-43504 Second Trust Deed Repayments 171,000
241-9101-45000 Sale of Other Assets 1,061,456
-
Account No. Description Revenues Expenses
NO ADJUSTMENTS - -
Account No. Description Revenues Expenses
NO ADJUSTMENTS - -
TOTAL ALL HOUSING AUTHORITY FUNDS 1,202,456 -
Housing Authority (241)
Low-Mod Housing (243)
2011 Bond (249)
ATTACHMENT 1
City of La Quinta
HOUSING COMMISSION MEETING: January 12, 2021
STAFF REPORT
AGENDA TITLE: RECOMMEND FUNDING OPTION FOR AREA HOMELESS
PREVENTION PROGRAMS FOR FY 2020/21
RECOMMENDATION
Recommend approval to the Housing Authority of funding options to provide
assistance to area homeless service providers and homeless prevention partners;
Coachella Valley Rescue Mission (CVRM) and Martha’s Village and Kitchen (MVK)
EXECUTIVE SUMMARY
• The Housing Commission (Commission) and Housing Authority
(Authority) agreed on the allocation of $250,000 of Housing Authority
funds to area homeless service providers and homeless prevention
partners in previous Fiscal Year (FY) 2019/2020.
• Staff continues receiving metrics regarding the success of this funding
and can track how it positively impacts the City of La Quinta and greater
Coachella Valley community.
• Staff recommends the Commission consider providing the following
allocations for FY 2020/2021 totaling $200,000:
o $100,000 to CVRM
o $100,000 to MVK
FISCAL IMPACT
Authority funds are available in account number 243-0000-60532.
BACKGROUND/ANALYSIS
Staff recommends providing $100,000 to CVRM and MVK, a larger allocation
than previous fiscal year’s $83,333, due to the metrics provided showing the
additional need brought on by the COVID-19 pandemic and the knowledge of
these facilities providing benefit to the Coachella Valley and City of La Quinta.
BUSINESS SESSION ITEM NO. 3
Each organization will continue to be required to provide a quarterly report on
their use of the funds, indicate how many individuals from La Quinta were
assisted, and what services they utilized.
ALTERNATIVE
The Housing Commission can recommend this option to the Housing Authority,
or direct staff with a new option.
Prepared by: Doug Kinley, Housing Specialist
Approved by: Gil Villalpando, Assistant to City Manager
City of La Quinta
HOUSING COMMISSION MEETING: January 12, 2021
STAFF REPORT
AGENDA TITLE: RECOMMEND FOR HOUSING AUTHORITY APPROVAL THE DRAFT
SCOPE OF SERVICES TO BE PROVIDED BY J&H ASSET PROPERTY MGT., INC. FOR
RESIDENTIAL PROPERTY MANAGEMENT SERVICES AT DUNE PALMS MOBILE HOME
PARK
RECOMMENDATION
Recommend for Housing Authority approval the draft scope of services to be provided
by J&H Asset Property Mgt., Inc. for residential property management services at Dune
Palms Mobile Home Park in an amount not to exceed approximately $84,720 for the
first eighteen months, scheduled to retroactively begin on the date escrow closes
through June 30, 2022; and authorize the Executive Director to execute the
forthcoming related agreement.
EXECUTIVE SUMMARY
• As part of acquisition of the mobile home park at 4600 Dune Palms Road, the
Housing Authority (Authority), in a commitment to a seamless transition for
residents of the park, assumed the contract for the current property
management firm, J&H Asset Property Mgt., Inc. (J&H).
• To conclude the assumed contract and to remain in compliance with the
Authority’s contractual standards, a new agreement is currently being finalized
between the City and J&H.
• The assumed contract is on a month-to-month basis and will be converted to an
initial eighteen (18) month term with an optional extension of two (2) years
through June 30, 2024.
FISCAL IMPACT
J&H would provide residential property management services for a fee as detailed
below. The total contract cost is for a not-to-exceed amount of $84,720 for the initial
contract term of three and one-half (3 ½) years. An optional extension of two (2) years
is available, with costs subject to a potential increase of 3% each fiscal year.
A budget adjustment for Park revenues and expenses will be added during the 2020/21
Mid-Year Budget Report. At that time, funds would become available in the Housing
Authority budget (241-9104-60103, Professional Services).
BUSINESS SESSION ITEM NO. 4
Fiscal Year Monthly Amount Fiscal Year Amount
2020/21 2,720$ 16,320$ *
2022/23 2,800$ 33,600$
2023/24 2,900$ 34,800$
TOTAL CONTRACT AMOUNT 84,720$
Fee Per Audit 500$
* Six months, from January - June 2021.
BACKGROUND/ANALYSIS
In June 2020, the City of La Quinta entered into escrow for the acquisition of the Dune
Palms Mobile Home Park (DPMHP). During the due diligence process, it was deemed
appropriate for the wellbeing of the residents of the DPMHP to retain the services of
the existing property management company, J&H. The City assumed the existing
contract for property management services through escrow and must now formally
contract with J&H to comply with contractual standards required of all service providers.
J&H have acted as property management for DPMHP since February 2006, and have
extensive experience in providing upkeep for the park, including maintaining all legally
required licensing and management of fees due to the State of California, answering
calls from residents regarding property maintenance requests and inquiries, rent
collections, and facilitating operations for the mobile home park.
Upon finalization of the Contract, with the attached Scope of Services (Attachment 1),
and the Authority’s approval, the initial term of the Agreement would be retroactive to
the date escrow closes, expire on June 30, 2022, with an option to renew for one two-
year extension, beginning July 1, 2022, and expiring on June 30, 2024. The City has
the right to terminate the Agreement at any time with a 60-day written notice.
ALTERNATIVES
The Commission may elect to not recommend approval of this Scope of Services.
However, staff does not recommend this alternative due to the immediate need for
these ongoing services and established history of the firm.
Prepared by: Angela Ferreira, Management Analyst
Approved by: Gilbert Villalpando, Assistant to City Manager
Attachment: 1. Draft Scope of Services with J&H Asset Management, Inc.
Page 1
_______ Agent Initials _______ Owner Initials
J & H ASSET PROPERTY MGT., INC.
PROPERTY MANAGEMENT AGREEMENT
This Agreement is made this 19th day of January 2020 by and between La Quinta Housing Authority, a
public body, corporate and politic
(hereinafter “Owner”) and J & H Asset Property Mgt., Inc. (hereinafter “Agent”).
In consideration of the property management services to be rendered by Agent pursuant to this
Agreement, Owner hereby designates Agent as the exclusive Agent and representative of the Owner for
the purpose of management and operation for Owner’s account of the following described property
, referred to herein as the “Property” and is defined as constituting all real property, including land and
improvements and furnishing, fixtures and equipment (FF&E) thereon, owned by Owner (or the City of
La Quinta, a California municipal corporation (“City”)) but expressly excluding any and all “coaches”
(commonly referred to as “mobile home units” or “mobile homes”) owned by any other person(s) or
entity(ies) other than Owner or the City, which occupy a “lot” or are otherwise located on the real
property owned by Owner or the City, at the following address:
La Quinta Housing Authority
Dune Palms Mobile Estates
46400 Dune Palms Road
La Quinta, CA 92253
Agent and Owner agree that their respective authorities, duties and responsibilities with respect to
the Property shall be as follows:
I. Duties of Agent
A. On assuming the management of the Property, Agent shall thoroughly inspect the
Property and submit a written report to Owner. The written report shall contain the
opinion of Agent concerning the present degree of efficiency under which the
Property is to be operated and recommend changes, if necessary, in the management
structure of the Property, in the rehabilitation of the Property, and in any other areas
that will improve the efficient management of the Property. After conferring with
Owner and obtaining approval to make any necessary improvements Agent will
undertake completion of the improvements as authorized and directed by the Owner.
B. Agent shall take all reasonably necessary actions to collect rental charges or other
income when due from tenants of said Property in accordance with the terms of their
tenancies and may execute all receipts of other documents reflecting receipt of said
sums on behalf of Owner. All rental charges or other income shall be deposited into
an authorized Owner owned bank account as designated by the Owner and as
described in Section I-J of this agreement.
Page 2
_______ Agent Initials _______ Owner Initials
C. Owner hereby warrants and represents to Agent that it has the lawful and proper
responsibility and authority to employ Agent as provided herein. To the extent that
Agent enters into contracts or obligations which have been pre-approved by Owner in
writing and are reasonably and properly incurred pursuant to the terms of this
Agreement for the benefit of the Property, Owner shall indemnify, defend (with
counsel of Owner’s choice), and hold harmless Agent against claims, damages, and
loss resulting from the ownership of the Property by Owner and, unrelated to Agent’s
management and/or other rights and obligations under this Agreement, and Owner
shall pay and discharge said contracts and obligations in the event Agent shall be
discharged by Owner. Owner shall further indemnify, defend (with counsel of
Owner’s choice), and hold harmless Agent against damages, claims, loss, cost of
expense arising out of actual or alleged defects in design or construction of the
Property or in any breach or alleged breach of any legal duty or obligation which is
by law the responsibility of Owner as owner of the Property and unrelated to Agent’s
management and/or other rights and obligations under this Agreement.
D. Agent shall do everything reasonably necessary for the proper management of the
Property, including, without limitation thereto, periodic inspections, handling all
tenant requests and negotiations, supervision of maintenance, arrangement for any
improvements and alterations as may be required of Owner, purchasing all materials
and supplies, contracting with independent contractors to supply services, and
expending such sums, as Agent deems necessary to accomplish the foregoing. Agent
shall obtain approval from Owner for any expenditure for repairs, improvements or
work in excess of $1,000.00 for any one item, except monthly or recurring operating
charges and/or emergency repairs in excess of the maximum, if in the opinion of
Agent such repairs are necessary to prevent additional damage or a greater total
expenditure or to protect the Property from danger to maintain services or conditions
to the tenants as called for by their tenancy. The Agent shall notify the Owner
promptly whenever emergency repairs have been ordered.
E. Agent shall obtain approval of the Owner to negotiate leases or other uses of the
Property, including leases for lots on the Property, and month-to-month tenancies
with existing and prospective tenants upon terms and conditions approved by Owner.
F. Agent shall have the right to hire managers and other Property employees, if any,
reasonably required in the operation of the Property. The cost of onsite personnel
shall not be charged against the Agent fee set forth in Section II, and Owner will
reimburse Agent for all payroll related costs and services, including any benefits
offered to Property employees. Agent shall set the terms of compensation and
duties of the Property’s employees based on similar industry trends. Compensation
and duties shall be disclosed to the Owner on an annual basis in January of each year.
All on-site personnel will be employees of WJ Professional Services.
G. The employees of the park will be employees of WJ Professional Services, LLC
(owned by J and H Asset Property Mgt., Inc.).
Page 3
_______ Agent Initials _______ Owner Initials
a) To avoid cashflow discrepancies the monthly amounts necessary to fund Owner’s
on-site operations, will be prefunded by the Owner, including, all the costs
associated with the salaries, wages, workers compensation insurance, taxes, etc.
paid for all on-site staff, which will be paid by Owner to WJ Professional
Services, LLC, in advance after billing to Owner from WJ Agent.
b) Agent shall be responsible for initial payment of all federal, state and local
payroll taxes and for contributions for unemployment insurance, social
security, and other benefits imposed or assessed under any provision of law
or by regulation, and which are measured by salaries, wages or other
remuneration paid or payable by Agent to its employees engaged in any
work in connection with this Agreement or the Property. The Agent shall
be responsible for the withholding and payment of any income tax required
to be withheld from the wages and salaries of said employees under any
applicable law or regulation.
Owner will reimburse Agent for State, Federal and Local Taxes, and for
contributions for unemployment insurance, social security, and other
benefits imposed or assessed under any provision of law or by regulation.
Owner will reimburse salaries, wages or other remuneration paid or
payable by Agent to its employees, along with all Worker’s Comp
Premiums associated with the employees.
c) Other costs and expenses of each such person for standard employment will be
borne by Agent and reimbursed by Owner. Such items may include: Medical
Insurance, Retirement Plans, and payroll processing fees, including but not
limited to bi-weekly, quarterly, end of the year, human resources onboarding and
employment service fees. All other costs and expenses of each such person will be
borne by Agent and reimbursed by Owner. Such items may include: medical
insurance, retirement plans, payroll processing fees, including but not limited to
bi-weekly processing fees per employee, quarterly filing fees, end of the year
filing fees, garnishment fees, HR onboarding charges, including the HR trainings
(sexual harassment, OSHA, and any other applicable trainings), background
checks, and other unknown fees which would be discussed with owner at
appropriate time. Any costs and expenses of employment that are discretionary,
such as a bonus or similar non-salary or non-rate-based cost or expense, shall be
subject to prior Owner approval.
H. Agent shall manage the Property in the full compliance with all the laws and
regulations of the County of Riverside, the City of La Quinta, the State of California,
and the United States. Agent shall advise Owner of any code or ordinance violations
immediately.
Agent shall defend (with counsel approved by Owner in its reasonable discretion),
indemnify and hold harmless Owner from and against any loss, damage, claim,
cost, charge or expense (including direct, indirect, consequential loss, damage,
claim, cost, charge or expense) including reasonable attorney’s fees and other
Page 4
_______ Agent Initials _______ Owner Initials
costs of litigation, incurred by Owner in connection with injury to or death of any
person or damage to the Property of a third party arising out of Agent’s
management and/or performance of the Agreement to the extent that such loss,
damage claim cost, charge or expense is caused by the negligence, bad faith,
intentional or willful misconduct of Agent or its employees or agents, or any
person or entity whose negligence, bad faith, intentional or willful misconduct
would be imputed to Agent. As a requirement Dune Palms Mobile Estates will be
included under Agent’s blanket Employment Practices Liability Insurance/3rd
Party Policy.
I. Agent must deposit all revenues from the Property into a specific property
management fund of Owner, subsequently referred to as the “account”. The account
must be maintained at all times in a national or state bank that is a member of the
Federal Deposit Insurance Corporation. Agent must not commingle any of the
revenues described above with any funds or other property of Agent.
J. The Agent shall establish a specific property management trust fund of Agent,
subsequently referred to as the “trust account”. The Owner shall deposit $50,000 in
the trust account, Agent shall pay all items with respect to the Property for which
payment is provided in this Agreement, including the compensation of Agent from
the trust account. After such payments, within fifteen (15) days, but no more than
twice a month, Agent shall prepare a reimbursement request for Owner to replenish
said trust account. The reimbursement request shall include copies of paid invoices
and checks issued, and an invoice with the total to be reimbursed to the trust account.
Agent shall also provide monthly income and expense reports referred to in Section
L.
K. Agent shall keep and maintain full and accurate books and records of the collections
and all expenditures incurred in the connection with the management and operations
of the Property. The books, accounts and records are to be maintained at the principal
place of business of Agent. Agent will, during regular business hours, make the
books, accounts and records required to be maintained under the terms of this
agreement, available to Owner, or the representative of Owner, for examination,
copying, auditing and reporting by providing a written request for documents, which
shall be provided in electronic format by the Agent to the Owner. Agent understands
the Owner is subject to multiple external year-round audits and reporting
requirements and Owner agrees any work associated with gathering records for audits
shall be reimbursement to Agent at a flat rate of $500 per audit. Agent shall
establish a bank account in the name of Dune Palms Mobile Estates for the payment
of all operating expenses incurred through renting, servicing, maintaining or repairing
the Property and such other expenses in connection with the Property.
Agent must furnish Owner, no later than the end of the next succeeding month, a
detailed statement of all revenues and expenditures for each preceding month which
are held in the trust account. A summary of all current and prospective rental
concessions given to induce tenants to occupy the Property, as well as such other
information relating to the operation and management of the Property shall be
Page 5
_______ Agent Initials _______ Owner Initials
available to Owner for inspection and copying upon request. Agent is to retain, for
safekeeping and storage, all original invoices, statements, purchase orders, billings
and other documents delivered to Agent with respect to the Property. Agent, on
payment of reasonable costs incurred, must make available to Owner, copies of all or
any portion of any invoice, statement, purchase order, billing report, or other
documents received from Agent with respect to the Property.
L. Within 30 days after the end of each calendar year, Agent must prepare and deliver to
Owner, a detailed statement of revenues received, and expenditures incurred and paid
during the calendar year that results from operation of the Property.
II. Duties of Owner
A. Owner agrees to promptly furnish Agent with all documents and records of Property
reasonably necessary in order to manage the Property, including but not limited to,
leases, amendments and correspondence pertaining thereto, reports on existing
service contracts, copies of all insurance policies and any required endorsements
which are carried during the term of this Agreement.
B. Except for Agent’s negligence, bad faith, intentional or willful misconduct in Agent’s
management and/or other performance of this Agreement, Owner shall indemnify and
hold Agent harmless from any and all costs, expenses, attorney's fees, suits, liabilities,
damages from the ownership of the Property unrelated to Agent’s management and/or
performance and/or exercise of other rights and obligations under this Agreement..
C. Owner agrees to carry bodily injury, property damage and personal injury public
liability insurance in limits of not less than $1,000,000 combined single limit
coverage of $500,000 property damage insurance. Owner agrees that at all times
during the continuance of this Agreement all bodily injury, property damage and
personal injury, property insurance and any other coverage carried by Owner on the
Property shall, by the appropriate endorsement of all policies evidencing such
insurance and without cost to Agent, be extended to insure Agent (except as
otherwise provided in this Agreement) as well as Owner, as follows: J & H Asset
Property Management Inc. is hereby named as an additional insured, except to the
extent of its negligence, bad faith, intentional or willful misconduct.
Further, Owner agrees to consider all reasonable recommendations of Agent with
respect to insurance coverage to minimize the cost thereof and the possibility of
bodily injury, property damage and loss of rental income.
D. The cost of onsite personnel shall not be charged against the Agent fee set forth in
Section II, and Owner will reimburse Agent for all payroll related costs and
services, including any benefits offered to Property employees as referred under
Duties of Agent Section 1- F.
Page 6
_______ Agent Initials _______ Owner Initials
E. The employees of the park will be employees of WJ Professional Services, LLC
(owned by J and H Asset Property Mgt., Inc.). As referred under Duties of Agent –
Section I-G- (a, b, c)
F. All on-site offices must be equipped with a working computer, printer, and secure
access that meet the minimum requirements needed to run the on-line Agent and
Accounting software programs.
G. Owner agrees to reimburse Agent, upon reasonable demand and documentation of
expenditures, to the full extent of all monies paid by Agent for Owner's Property in
carrying out the purpose of this Agreement provided. The Owner will be paying all
invoices until a trust account is setup and the prefunded deposit is provided
from the Owner to J&H to pay vendors. Upon on a mutually agreed upon date,
but no later than March 31, 2021, J&H will process all invoices and payroll and
will send all items to the Owner for approval to pay from the trust account.
H. In the event that any governmental agency, authority or department should order the
repair, alteration or removal of any structure or matter on the Property, and if after
written notice of the same to the Owner by such body or Agent or others to make
such repairs, alterations or removal, Agent shall be answerable to such body for any
and all penalties and fines whatsoever imposed because of such failure on Owner's
part.
I. Owner shall pay for its property management service a flat monthly fee as
indicated in the below schedule. Partial months shall be pro-rated based on the
daily average.
1. January __, 2021 through June 31, 2022 - $2,720.00
2. July 1, 2022 through June 31, 2023 - $2,800.00
3. July 1, 2023 through June 31, 2024 - $2,900.00
J. From the trust account, Agent on behalf of the Owner shall:
1. Pay all operating expenses incurred through renting, servicing,
maintaining or repairing the Property and such other expenses in
connection with the Property.
2. Pay such sums to lenders as may be designated in writing on loans secured
by or otherwise affecting the Property.
3. Pay real and personal property taxes and other taxes or assessments levied
and assessed against the Property.
4. Pay fees for computer billing service for monthly rent statements, and,
payroll processing / filing fees for project employees.
Page 7
_______ Agent Initials _______ Owner Initials
III. Miscellaneous
A. Upon its adoption by all parties hereto, this Agreement shall become
retroactively effective as of the ___ day of January 2021, and shall continue in
full force and effect for a period of one year and six months with the
possibility to extend for an additional two years through June 30, 2024 from
the effective date, subject to Owner’s right to cancel this Agreement by not
less than sixty (60) days advance written notice at any time during said period.
B. On the voluntary sale of the Property by Owner and the delivery of the deed
of conveyance for such sale, this Agreement shall automatically terminate
unless otherwise agreed in writing by the parties hereto. Owner must notify
Agent of the sale of the Property as soon as such sale is negotiated.
C. This Agreement will terminate in the event of a total condemnation of the
Property by any governmental agency other than the City as may be
authorized by applicable law. If there is a partial condemnation of the
Property, this Agreement may be terminated at the option of Owner. Owner
will be entitled to all consequential damages awarded as a result of any
eminent domain proceeding.
D. Nothing in this Agreement is to be deemed to create or is to be construed as
creating in Agent any property interest. in the Property.
E. Agent must at all times during the term of this Agreement maintain such
licenses and permits as are required for any of the various services to be
performed by Agent on behalf of Owner. Agent is an independent contractor
and not an employee of Owner for any purpose.
F. This Agreement shall be binding upon the parties hereto. their legal
representatives, heirs, trustees, and successors and permitted assigns and may
not be assigned by Agent without the prior written consent of the Owner.
G. The drafting, execution and delivery of this Agreement by the parties have
been induced by no representations, statements, warranties, or agreements
other than those expressed in it. This Agreement embodies the entire
understanding of the parties, and there are no further or other agreements or
understandings, written or oral, in effect between the parties relating to the
subject matter of it unless expressly referred to in this Agreement. This
Agreement may not be modified unless such modification is in writing and
signed by both parties to this Agreement.
Page 8
_______ Agent Initials _______ Owner Initials
H. Where legal assistance is required for such matters as enforcing the collection
of rents or eviction. proceedings, such action shall be made through legal
counsel designated by management with the prior written consent of Owner in
its reasonable discretion unless such action must commence and proceed
immediately to prevent injury to any persons or the Property. With respect to
other legal matters, Owner also shall be consulted and give its prior written
consent as to selection of legal counsel and general legal action. Should either
party bring suit to enforce any of the terms of this Agreement, the prevailing
party will be entitled to recover court costs and reasonable attorneys' fees.
I. Any notice required under the terms herein shall be deemed. given, if
delivered in person or by e-mail delivery with confirmation of receipt by the
intended recipient party, or within 15 days upon the placing of it in the United
States Mail, postage prepaid, and addressed or otherwise actually delivered to
the address designated below. Either party to this Agreement may change the
address at which it receives written notices by so notifying the other party in
writing.
J. Agent is an equal opportunity non-discriminatory employer. Agent and Owner
each mutually agree that there shall be no discrimination against or
segregation of any person or group of persons on account of race, color,
religion, creed, sex or national origin, or any other legally protected
classification under federal, state, or local law, in leasing, transferring use
occupancy, tenure or enjoyment of the Property nor practices of
discrimination or segregation with reference to the selection, location number,
use or occupancy of tenants.
AGENT OWNER
J & H ASSET PROPERTY MGT., INC.
22880 Savi Ranch Parkway
Yorba Linda, CA 92887
La Quinta Housing Authority
Attn. Executive Director
78495 Calle Tampico
La Quinta, CA 92253
e-mail: finance@laquintaca.gov
e-mail:
with copy to:
Rutan & Tucker, LLP
Attn. William H. Ihrke, Esq.
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
e-mail: bihrke@rutan.com
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS
AGREEMENT THE DAY AND YEAR FIRST ABOVE WRITTEN.
Page 9
_______ Agent Initials _______ Owner Initials
AGENT: J & H ASSET PROPERTY MGT., INC.
By: __________________________
James Joffe, President
Date: __________________________
OWNER:
LA QUINTA HOUSING AUTHORITY,
a public body, corporate and public
By: ______________________________
Jon McMillen, Executive Director
ATTEST:
_______________________________
Monika Radeva, City Clerk
APPROVED AS TO FORM:
______________________________
William H. Ihrke, City Attorney
POWER POINTS
HOUSING
COMMISSION
SPECIAL
MEETING
JANUARY 12, 2021
1/12/2021
1
Housing Commission Meeting
January 12, 2021
Housing Commission Meeting
January 12, 2021
B1 – Fiscal Year-End 2019/20
Housing Authority Budget Report
1
2
1/12/2021
2
Overall Revenues
•$476,575 received under budget after adjustments
–$1,061,456 deferred to FY 2020/21
•Two non-cash adjustments
–$376,358 fair market value
–$173,558 RDA loan interest earnings
•$635,066 RDA loan repayment in 2019/20
•Bond Fund revenues from interest only
Overall Expenses
•Housing Authority Fund under budget by
$375,124
–Savings in payroll, legal, consultant expenses
–Carryover of $320,762 to 2020/21
•Low-Mod & Bond Fund savings
–To remain in each fund
–2004 Bond has been closed out
3
4
1/12/2021
3
Available Fund Balances
Fund Fund Balance
Housing Authority $11,338,100
Low-Mod Housing $2,580,132
2011 Bond $17,159,715
Total $31,077,947
Receivable in Low-Mod Housing Fund
RDA Loan Balance $6,6,517,436
Principal $3,915,586
Interest $2,601,850
Housing Commission Meeting
January 12, 2021
B2 – Fiscal Year Q1 2020/21
Housing Authority Budget Report
5
6
1/12/2021
4
Housing Commission Meeting
January 12, 2021
B2 – Fiscal Year Q1 2020/21
Housing Authority Budget Report
VERBAL UPDATE BY STAFF
Housing Commission Meeting
January 12, 2021
B3 – Recommend Funding Option for Area
Homeless Prevention Programs for FY 21/22
7
8
1/12/2021
5
FY 19/20
Homeless
Program
Funding
•In 2020, the Housing Authority
approved a budget allocation for
the following contributions in
FY 19/20:
–$83,333 to the Coachella Valley
Rescue Mission
–$83,333 to Martha’s Village and
Kitchen
–$83,333 to Path of Life
Ministries, run by Coachella
Valley Association of
Governments
FY 2020/21 Homeless Program Funding
Proposed
•Proposed Allocation: $200,000
–$100,000 to Coachella Valley Rescue Mission
–$100,000 to Martha’s Village and Kitchen
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10
1/12/2021
6
Thoughts?
Housing Commission Meeting
January 12, 2021
B4 – J&H Asset Property Management, Inc. –
Scope of Services
11
12
1/12/2021
7
Scope of Services Overview
•As part of acquisition, Housing Authority has assumed existing contract
•J&H has acted as property management since 02/2006
•New contract drafted to bring standards into compliance as a service provider
Scope of Services Terms
•Term Length: Retroactively to begin January 2021 through June 2022
•One-Time extension for 2 years, July 2022 through July 2024
•Total Contract Not-To-Exceed: $110,910
13
14
1/12/2021
8
Housing Commission Meeting
January 12, 2021
INFORMATIONAL ITEM No. 1
Regional Housing Needs Assessment (RHNA) Update
What is the RHNA?
REGIONAL HOUSING
NEEDS ASSESSMENT
(RHNA)
REQUIREMENT OF STATE
HOUSING LAW
DETERMINES HOUSING
NEEDS EVERY 8 YEARS
15
16
1/12/2021
9
RHNA Allocation
Process
•Income levels:
–Extremely Low
–Very Low
–Low
–Moderate
–Above Moderate
RHNA
Allocation
Process
5th Cycle ending
6th Cycle beginning
New
“Methodology”
17
18
1/12/2021
10
City of La Quinta’s RHNA
5th Cycle: 364
Dwellings
6th Cycle: 1,526
Dwellings
(09/03/2020)
Very-Low
27%
Low
18%
Moderate
19%
Above Moderate
36%
6th Cycle RHNA Allocation
City of La Quinta as of 09/03/2020
TOTAL UNITS
1,526
Affordable
(≤80% AMI)
45%
687 UNITS
Market
(>80% AMI)
55%
839 UNITS
19
20
1/12/2021
11
What’s the remaining
RHNA Timeline?
Oct. 2019 – Jan. 2020
HCD reviews
Feb. 2020 – July
2020
Appeal Period
July 2020
Final Hearings
Oct. 2020 – Oct. 2021
Implementation
21
22
1/12/2021
12
Housing Commission Meeting
January 12, 2021
INFORMATIONAL ITEM No. 2
Housing Element Update
Background
•Housing Element is one of the required
elements of the General Plan
•It is the only Element that must be
updated on a State-mandated schedule
•It is intended to provide the City
direction on achieving its anticipated
housing demand for an 8-year period.
23
24
1/12/2021
13
Background
•Accomplishments:
–Washington Street Apartments
•Major Rehabilitation of 72 units
•Construction of 68 new units, 24 of which are affordable
to very low-income households, 44 for low-income
households.
–Coral Mountain Apartments
•176 units, 36 for very low-income households, 138 for
low-income households, and 2 for moderate income
households.
Background
•The City’s 2014-2021 Regional Housing Needs Allocation:
2014–2021 Regional Housing Needs Assessment
Household Income Levels
Income as a Percent of
County Median RHNA Allocation
Units
Constructed
VeryLow Less than 50%91 60
Low 51%–80% 61 136
Moderate 81%–120% 66 47
Above-Moderate Over 120% 146 690+
Total 1 364 933+
Source: Regional Housing Needs Assessment for Southern California, September 2012,prepared by SCAG.
1 Total number of units and percentage are affected by rounding error.
25
26
1/12/2021
14
Background
•The City’s 2022-2029 Regional Housing Needs Allocation:
2022-2029 RHNA Allocation
Household Income Levels
Income as a Percent of
County Median RHNA Allocation
VeryLow Less than 50%419
Low 51%–80%268
Moderate 81%–120%296
Above-Moderate Over 120%543
Total 1,526
Background
•The City will continue to partner with affordable
housing developers to facilitate the development of
affordable housing units.
27
28
1/12/2021
15
Next Steps
•Upcoming workshops:
–Community Workshop, January 13th
•Complete document for review by the
Department of Housing & Community
Development
•Planning Commission and City Council
hearings late summer 2021
Housing Commission Input
•Comments and suggestions welcome
at this meeting or at upcoming
workshops
29
30
1/12/2021
16
Housing Commission Meeting
Next Regular Meeting Date
March 10, 2021
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32