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2022 03 09 HC HOUSING COMMISSION AGENDA Page 1 of 4 MARCH 9, 2022 REGULAR QUARTERLY 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 REGULAR QUARTERLY MEETING WEDNESDAY, MARCH 9, 2022, AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility In Effect Pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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. 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 a specific agenda item or matters not on the agenda are requested to follow the instructions listed below: Written Public Comments – can be provided in-person during the meeting or emailed to Management Analyst Doug Kinley at DKinley@LaQuintaCA.Gov no later than 3:00 p.m. on the day of the meeting, and 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 Chair, a brief summary of any public HOUSING COMMISSION AGENDA Page 2 of 4 MARCH 9, 2022 REGULAR QUARTERLY MEETING comment is asked to be read, to the extent the Commission Secretary can accommodate such request. If emailed, the email “subject line” must clearly state “Written Comments” and list the following: 1) Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written Comments *** TELECONFERENCE PROCEDURES *** Verbal public comments via Teleconference – members of the public may attend and participate in this meeting by teleconference via Zoom and use the “raise your hand” feature when public comments are prompted by the Commission Chair; the City will facilitate the ability for a member of the public to be audible to the Housing Commission and general public and allow him/her to speak on the item(s) requested. Please note – members of the public must unmute themselves when prompted upon being recognized by the Commission Chair, in order to become audible to the Housing Commission and the public. Only one person at a time may speak by telephone and only after being recognized by the Housing Commission’s Chairperson. ZOOM LINK: https://us06web.zoom.us/j/84928069200 Meeting ID: 849 2806 9200 Or join by phone: (720) 707 – 2699 ****************************** CALL TO ORDER ROLL CALL: Commissioners: Casto, Davidson, Pacheco, Schuknecht, and 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 by providing written public comments either in-person or via email as indicated above; or provide verbal public comments either in-person or via teleconference by joining the meeting virtually at https://us06web.zoom.us/j/84928069200 and use the “raise your hand” feature when prompted by the Chairperson. Members of the public attending the meeting in-person are requested to complete a “Request to Speak” form and submit it to the Commission Secretary. Please limit your comments to three (3) minutes (or approximately 350 words). The Housing Commission values your comments; however, in accordance with State law, no action shall be taken on HOUSING COMMISSION AGENDA Page 3 of 4 MARCH 9, 2022 REGULAR QUARTERLY MEETING any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Government Code § 54954.2(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 SPECIAL MEETING MINUTES OF JANUARY 26, 2022 BUSINESS SESSION 1.RECEIVE AND FILE FISCAL YEAR 2020/21 HOUSING AUTHORITY YEAR-END BUDGET REPORT 2.RECEIVE AND FILE FISCAL YEAR 2021/22 MID-YEAR HOUSING AUTHORITY BUDGET REPORT 3.RECOMMEND APPROVAL TO THE HOUSING AUTHORITY TO ADOPT A RESOLUTION AUTHORIZING THE APPLICATION TO, AND PARTICIPATION IN, THE STATE OF CALIFORNIA’S PROHOUSING DESIGNATION PROGRAM 4.RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS FOR FISCAL YEAR 2022/23 STUDY SESSION 1.DISCUSS FUNDING OPTION FOR GALILEE CENTER STAFF REPORTS AND INFORMATIONAL ITEMS – NONE COMMISSIONERS’ ITEMS – NONE ADJOURNMENT The next regular quarterly meeting of the La Quinta Housing Commission will be held on June 8, 2022, commencing at 4:00 p.m., at the La Quinta City Hall, 78495 Calle Tampico, La Quinta, CA 92253, and via Zoom. HOUSING COMMISSION AGENDA Page 4 of 4 MARCH 9, 2022 REGULAR QUARTERLY MEETING DECLARATION OF POSTING I, Doug Kinley, Management Analyst, 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 March 3, 2022. DATED: March 4, 2022 Doug Kinley III Doug Kinley, Management Analyst City of La Quinta, California PUBLIC NOTICES •The La Quinta City Hall Study Session Room and Council Chambers are 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 takes 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 3 JANUARY 26, 2022 SPECIAL MEETING HOUSING COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, JANUARY 26, 2022 CALL TO ORDER A special meeting of the La Quinta Housing Commission (Commission) was called to order at 4:07 p.m. by Commissioner Pacheco. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted 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.). PRESENT: Commissioners Casto, Davidson, Pacheco, and Chairperson Gaeta-Mejia (joined the meeting after roll call) ABSENT: Commissioner Schuknecht, Chairperson Gaeta-Mejia CHAIRPERSON GAETA-MEJIA JOINED THE MEETING AT 4:08 P.M. STAFF PRESENT: Director of Business Unit and Housing Development Villalpando, Management Analyst Kinley, Management Specialist Griffin, and Commission Secretary Camarena PLEDGE OF ALLEGIANCE Commissioner Pacheco led the audience in the Pledge of Allegiance. CONFIRMATION OF AGENDA – Confirmed. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA Management Analyst Kinley said the City has not received any WRITTEN PUBLIC COMMENTS or requests to provide VERBAL COMMENTS for this meeting as of 4:07 p.m. and staff would continue to be monitor email HOUSING COMMISSION MINUTES Page 2 of 3 JANUARY 26, 2022 SPECIAL MEETING communications and teleconference attendance for the duration of the meeting, should any requests by the public are received. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None COMMISSIONER’S ITEMS – taken out of Agenda order per the Commission’s consensus Commissioner Davidson provided a brief tribute to Mr. Gary Harland who recently passed away. Mr. Harland was an air force veteran, resident of the La Quinta affordable housing community of Washington Street Apartments, and a former Housing Commissioner. CONSENT CALENDAR 1. APPROVE MEETING MINUTES OF SEPTEMBER 8, 2021 MOTION – A motion was made and seconded by Commissioners Casto/Davidson to approve the Consent Calendar as recommended. Motion passes: ayes (4), noes (0), abstain (0), absent 1 (Schuknecht). BUSINESS SESSION 1. RECOMMEND THE HOUSING AUTHORITY APPROVE PURCHASE AND SALE AGREEMENT WITH MANNINO LIVING TRUST TO ACQUIRE CERTAIN PROPERTY LOCATED ON THE NORTH SIDE OF HIGHWAY 111, WEST OF DUNE PALMS (APN 600-390-024) Director Villalpando presented the staff report which is on file at the City Manager’s Office. Commission and staff discussed the location of the vacant lot, potential available option for developing the property as outlined in the staff report, and possibility to connect the property to regional the CV Link Project. MOTION – A motion was made and seconded by Commissioners Davidson /Casto to recommend that the Housing Authority approve purchase and sale agreement with Mannino Living Trust to acquire certain property located on the north side of Highway 111, West of Dune Palms (APN: 600-390-024). Motion passes: ayes (4), noes (0), abstain (0), absent 1 (Schuknecht). STUDY SESSION - None HOUSING COMMISSION MINUTES Page 3 of 3 JANUARY 26, 2022 SPECIAL MEETING STAFF REPORTS AND INFORMATIONAL ITEMS – None COMMISSIONER’S ITEMS – considered as noted above out of Agenda order ADJOURNMENT There being no further business, a motion was made and seconded by Commissioners Casto/Gaeta-Mejia to adjourn the meeting at 4:21 p.m. Motion passes: ayes (4), noes (0), abstain (0), absent 1 (Schuknecht). Respectfully submitted, Reyna Camarena REYNA CAMARENA, Commission Secretary City of La Quinta, California City of La Quinta HOUSING COMMISSION MEETING: March 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2020/21 HOUSING AUTHORITY YEAR-END BUDGET REPORT RECOMMENDATION Receive and file 2020/21 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 $366,684 higher than budgeted and overall expenditures were $544,852 under budget. • The Report will be presented and approved by the Housing Authority on April 19, 2022. BACKGROUND/ANALYSIS Total adjusted revenues were over budget by $366,684; mostly due to loan repayments, second trust deed payments, and rent revenue. Total expenditures were under budget by $544,852; mostly due to savings in the Dune Palms land acquisition purchase. Revenues, expenditures, and fund balances are discussed in the Fiscal Year- End 2020/21 Housing Authority Budget Report (Attachment 1). ALTERNTIVES No alternatives are applicable. Prepared by: Claudia Martinez, Finance Director Attachment: 1. Fiscal Year-End 2020/21 Housing Authority Budget Report BUSINESS SESSION ITEM NO. 1 HOUSING AUTHORITY FISCAL YEAR-END 2020/21 BUDGET REPORT The La Quinta Housing Authority oversees three 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, 2021. REVENUES Total revenues, after non-cash adjustments, were over budget by $366,684, mostly due to loan repayments, second trust deed payments, and rent revenue. 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 accordance with accounting regulations, a portfolio value adjustment of $230,857 was recorded in order to recognize current market values. This amount has been recorded 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. On June 30, 2020, the portfolio was earning a 1.82% rate of return and on June 30, 2021 the return was 0.95%. The fiscal year to date rate of return is Housing Authority Revenues Final Budget Actual Variance Housing Authority Fund 1,901,756 2,269,056 367,300 RDA Low-Mod Housing Fund 35,000 322,490 287,490 2011 Bond Fund 201,000 3,582 (197,418) Total Revenues 2,137,756 2,595,128 457,372 Non-Cash Adjustments Investments Fair Market Value Adjustment 230,857 230,857 RDA Loan Interest Earned, Extraordinary Gain (321,545) (321,545) Total Adjusted Revenues 2,504,440 366,684 ATTACHMENT 1 0.77% as of December 2021, and while rates for longer dated securities have risen over the past few months, LAIF remains low, which will reduce interest earnings going forward. • Extraordinary Gain revenue of $321,545 in the RDA Low-Mod Housing Fund records the annual former Redevelopment Agency loan repayment interest earned in FY 2020/21. 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. EXPENSES Housing Authority expenses by fund are summarized below and detailed in Exhibit B. There were no carryovers from FY 2020/21 to FY 2021/22 needed. HOUSING AUTHORITY FUND (241) This fund recognizes administrative expenses and housing activities for several Authority owned properties in the La Quinta Cove and the recent addition of Dune Palms Mobile Estates. Combined administration savings of $106,100 were recognized for salaries and benefits, professional program oversight, legal services, and rental expenses. Additional savings of $92,455 were due to rental expenses for the cove properties and an overage of $25,267 was due to professional services associated with the starting costs for Dune Palms Mobile Estates. Housing Authority Expenditures Final Budget Actual Variance Housing Authority Fund Administration 893,062 786,962 (106,100) La Quinta Cove Properties 250,000 157,545 (92,455) Dune Palms Mobile Estates 127,000 152,267 25,267 RDA Low-Mod Housing Fund 300,000 300,000 - 2011 Bond Fund 6,185,000 5,813,436 (371,564) Total Expenditures 7,755,062 7,210,210 (544,852) Funds not being carried over are recognized as Restricted Fund balance in the Housing Fund. As of June 30, 2021, the available balance in this fund was $12,059,978. 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, 2021 is $30,234,740; with $6,046,948 or 20% recognized in this fund as a future receivable. In FY 2020/21, a total of $300,000 was expensed for homelessness programs in the greater Coachella Valley which had a positive impact and helped address the additional need brought on by the pandemic. As of June 30, 2021, the available balance in this fund was $2,792,552. 2011 BOND FUND (249) This fund is restricted to future housing projects. In FY 20/21, the City acquired the Dune Palms Mobile Estates Park located on Dune Palms Road utilizing these funds. As of June 30, 2021, the available balance in this fund was $11,484,043. FUND BALANCES Below is a summary of Housing Authority fund balances as of June 30, 2021. These funds are restricted for housing programs. Housing Funds Fund Balance as of 6/30/21 Housing Authority Fund (241)12,059,978 Low-Mod Housing Fund (243)2,792,552 2011 Bond Fund (249)11,484,043 TOTAL HOUSING FUNDS 26,336,573 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 241 - HOUSING AUTHORITY 190,627 200,000 170,000 130,011241-9101-41900 Allocated Interest 239,559 0 0 (122,128)241-9101-41910 GASB 31 Interest 131,261 300 300 366241-9101-41915 Non-Allocated Interest 1 0 0 1241-9101-42301 Miscellaneous Revenue 107,695 0 0 0241-9101-42706 Loan Repayments 58,789 0 0 0241-9101-43500 Home Sale Proceeds 60,000 25,000 196,000 385,447241-9101-43504 2nd Trust Deed Repayments 0 0 1,061,456 1,219,485241-9101-45000 Sale of Other Assets 386,692 0 0 0241-9101-49500 Transfers In 0 0 0 1,820241-9102-42305 Miscellaneous Reimbursements 299,692 288,000 288,000 290,939241-9103-43502 Rent Revenue/LQRP 0 0 186,000 363,115241-9104-42112 Rent Revenue/Tenant/Dune Palms Total:1,474,316 513,300 1,901,756 2,269,056 243 - RDA LOW-MOD HOUSING FUND 40,939 35,000 35,000 28,268243-0000-41900 Allocated Interest 54,515 0 0 (27,323)243-0000-41910 GASB 31 Interest 173,558 0 0 321,545243-0000-48500 Extraordinary Gain Total:269,013 35,000 35,000 322,490 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 4,326 0 0 0248-0000-41900 Allocated Interest Total:4,326 0 0 0 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 8,054 0 1,000 5,696249-0000-41900 Allocated Interest 82,284 0 0 (81,406)249-0000-41910 GASB 31 Interest 313,604 200,000 200,000 79,292249-0000-41915 Non-Allocated Interest Total:403,942 200,000 201,000 3,582 HOUSING AUTHORITY REVENUE 2,151,596 748,300 2,137,756 2,595,128 190,627 200,000 170,000 130,011 239,559 0 0 (122,128) 131,261 300 300 366 1 0 0 1 107,695 0 0 0 58,789 0 0 0 60,000 25,000 196,000 385,447 0 0 1,061,456 1,219,485 386,692 0 0 0 0 0 0 1,820 299,692 288,000 288,000 290,939 0 0 186,000 363,115 1,474,316 513,300 1,901,756 2,269,056 40,939 35,000 35,000 28,268 54,515 0 0 (27,323) 173,558 0 0 321,545 269,013 35,000 35,000 322,490 4,326 0 0 0 4,326 0 0 0 8,054 0 1,000 5,696 82,284 0 0 (81,406) 313,604 200,000 200,000 79,292 403,942 200,000 201,000 3,582 2,151,596 748,300 2,137,756 2,595,128 CITY OF LA QUINTA HOUSING AUTHORITY FUNDS REVENUE DETAILS EXHIBIT A 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements. 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 50 - Salaries and Benefits 136,322 246,900 246,900 253,048241-9101-50101 Permanent Full Time 578 0 0 385241-9101-50105 Salaries - Overtime 900 3,000 3,000 650241-9101-50110 Commissions & Boards 193 400 400 185241-9101-50150 Other Compensation 11,131 16,800 16,800 20,263241-9101-50200 PERS-City Portion 261 0 0 4,208241-9101-50215 Other Fringe Benefits 24,158 57,500 57,500 40,720241-9101-50221 Medical Insurance 330 0 0 542241-9101-50222 Vision Insurance 1,259 0 0 2,118241-9101-50223 Dental Insurance 67 0 0 113241-9101-50224 Life Insurance 578 1,500 1,500 975241-9101-50225 Long Term Disability 3,400 5,700 5,700 5,700241-9101-50230 Workers Comp Insurance 2,002 3,600 3,600 3,716241-9101-50240 Social Security-Medicare 105 0 0 82241-9101-50241 Social Security-FICA 50 - Salaries and Benefits Totals:181,285 335,400 335,400 332,705 60 - Contract Services 78,218 100,000 142,700 82,963241-9101-60103 Professional Services 5,000 5,000 5,000 5,000241-9101-60106 Auditors 3,849 35,000 35,000 12,109241-9101-60153 Attorney 60 - Contract Services Totals:87,067 140,000 182,700 100,073 62 - Maintenance & Operations 1,211 500 500 209241-9101-60320 Travel & Training 2,470 2,000 2,000 1,513241-9101-60420 Operating Supplies 62 - Maintenance & Operations Totals:3,681 2,500 2,500 1,722 64 - Other Expenses 0 20,000 20,000 0241-9101-60480 Contributions 64 - Other Expenses Totals:0 20,000 20,000 0 69 - Internal Service Charges 6,000 8,000 8,000 8,000241-9101-91843 Property & Crime Insurance 14,000 14,000 14,000 14,000241-9101-91844 Earthquake Insurance 24,800 52,400 52,400 52,400241-9101-98110 Information Tech Charges 69 - Internal Service Charges Totals:44,800 74,400 74,400 74,400 99 - Transfers Out 0 0 278,062 278,062241-9101-99900 Transfers Out 99 - Transfers Out Totals:0 0 278,062 278,062 9101 - Housing Authority - Admin Totals:316,833 572,300 893,062 786,962 9103 - Housing Authority - LQRP 62 - Maintenance & Operations 298,218 250,000 250,000 157,545241-9103-60157 Rental Expenses 62 - Maintenance & Operations Totals:298,218 250,000 250,000 157,545 9103 - Housing Authority - LQRP Totals:298,218 250,000 250,000 157,545 9104 - Dune Palms Mobile Estates 60 - Contract Services 0 0 22,000 56,960241-9104-60103 Professional Services 0 0 105,000 95,307241-9104-60157 Rental Expense 60 - Contract Services Totals:0 0 127,000 152,267 9104 - Dune Palms Mobile Estates Totals:0 0 127,000 152,267 241 - HOUSING AUTHORITY Totals:615,051 822,300 1,270,062 1,096,775 136,322 246,900 246,900 253,048 578 0 0 385 900 3,000 3,000 650 193 400 400 185 11,131 16,800 16,800 20,263 261 0 0 4,208 24,158 57,500 57,500 40,720 330 0 0 542 1,259 0 0 2,118 67 0 0 113 578 1,500 1,500 975 3,400 5,700 5,700 5,700 2,002 3,600 3,600 3,716 105 0 0 82 181,285 335,400 335,400 332,705 78,218 100,000 142,700 82,963 5,000 5,000 5,000 5,000 3,849 35,000 35,000 12,109 87,067 140,000 182,700 100,073 1,211 500 500 209 2,470 2,000 2,000 1,513 3,681 2,500 2,500 1,722 0 20,000 20,000 0 0 20,000 20,000 0 6,000 8,000 8,000 8,000 14,000 14,000 14,000 14,000 24,800 52,400 52,400 52,400 44,800 74,400 74,400 74,400 0 0 278,062 278,062 0 0 278,062 278,062 316,833 572,300 893,062 786,962 298,218 250,000 250,000 157,545 298,218 250,000 250,000 157,545 298,218 250,000 250,000 157,545 0 0 22,000 56,960 0 0 105,000 95,307 0 0 127,000 152,267 0 0 127,000 152,267 615,051 822,300 1,270,062 1,096,775 CITY OF LA QUINTA HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements. 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 64 - Other Expenses 350,779 250,000 300,000 300,000243-0000-60532 Homelessness Assistance 64 - Other Expenses Totals:350,779 250,000 300,000 300,000 0000 - Undesignated Totals:350,779 250,000 300,000 300,000 243 - RDA LOW-MOD HOUSING FUND Totals:350,779 250,000 300,000 300,000 350,779 250,000 300,000 300,000 350,779 250,000 300,000 300,000 350,779 250,000 300,000 300,000 350,779 250,000 300,000 300,000 CITY OF LA QUINTA HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements. 2019/20 Actuals 2020/21 Original Budget 2020/21 Final Budget 2020/21 Actuals 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 0000 - Undesignated 68 - Capital Expenses 0 6,125,000 6,125,000 5,813,436249-0000-74010 Land Acquisition 0 60,000 60,000 0249-0000-80050 Affordable Housing Project Development 68 - Capital Expenses Totals:0 6,185,000 6,185,000 5,813,436 0000 - Undesignated Totals:0 6,185,000 6,185,000 5,813,436 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) Totals:0 6,185,000 6,185,000 5,813,436 0 6,125,000 6,125,000 5,813,436 0 60,000 60,000 0 0 6,185,000 6,185,000 5,813,436 0 6,185,000 6,185,000 5,813,436 0 6,185,000 6,185,000 5,813,436 CITY OF LA QUINTA HOUSING AUTHORITY FUNDS EXPENSE DETAILS BY FUND EXHIBIT B 2020/21 YEAR-END BUDGET REPORT Unaudited, final numbers will be reported in the 2020/21 Financial Statements. City of La Quinta HOUSING COMMISSION MEETING: March 9, 2022 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2021/22 MID-YEAR HOUSING AUTHORITY BUDGET REPORT RECOMMENDATION Receive and file fiscal year 2021/22 Mid-Year Housing Authority Budget Report. EXECUTIVE SUMMARY • The Fiscal Year 2021/22 First Quarter Housing Authority Budget Report (Attachment 1) provides an update of the Authority’s fiscal activities from July to December 2021. • A budget report is prepared quarterly to assess the adopted budget and incorporate adjustments based on current economic conditions and operational requirements. • The Report will be presented for approval to the Housing Authority on April 19, 2022. 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 2021/22 Budget have been excluded from the report. ALTERNATIVES The Commission may request additional information, deny, or delay the approval of budget adjustment recommendations. Prepared by: Claudia Martinez, Finance Director Attachment 1: Fiscal Year 2021/22 Mid-Year Housing Authority Budget Report BUSINESS SESSION ITEM NO. 2 HOUSING AUTHORITY FISCAL YEAR 2021/22 MID-YEAR BUDGET REPORT The annual budget is a living document, which allows for flexibility and adjustments to accommodate current business needs and updated projections. All funds are continuously monitored. This report provides a recap of fiscal year-to-date activity and recommended adjustments. The following is a summary of budgetary adjustments requested for the second quarter of fiscal year (FY) 2021/22. Account details are provided in Exhibit A and discussed in this report. REVENUES Total revenue increase of $425,000 is requested for Fund 241: • FY 20/21 was the first full year of Dune Palms Mobile Home Estates and an additional $425,000 is needed to account for actual rent revenues. EXPENSES The expense adjustments are recommended for a total of $249,545 and are detailed below: • An increase of $32,000 for professional services for the management of the Dune Palms Mobile Estates • An increase of $175,000 for operating expenses, repair, and maintenance for the Dune Palms Mobile Estates to account for a full fiscal year of expenses since acquiring the property • An increase of $12,000 for professional services to support affordable housing compliance and monitoring. • An increase of $30,545 to account for the acquisition of a unit at the Dune Palms Mobile Home Park Fund Revenues Expenses Housing Authority Fund (241)425,000$ 219,000$ Low-Mod Housing Fund (243)- - 2011 Bond Fund (249)- 30,545 TOTAL FUND ADJUSTMENTS 425,000$ 249,545$ 2021/22 SECOND QUARTER RECOMMENDED HOUSING AUTHORITY ADJUSTMENTS ATTACHMENT 1 City of La Quinta Housing Authority Exhibit A FY 2021/22 Recommended Second Quarter Budget Adjustments Account No. Description Revenues Expenses 241-9104-42112 Rent Revenue/Tenant/Dune Palms 425,000 241-9104-60103 Professional Services 32,000 241-9104-60157 Rental Expense 175,000 241-9101-60103 Professional Services 12,000 Account No. Description Revenues Expenses NO ADJUSTMENTS - - Account No. Description Revenues Expenses 249-0000-74010 Land Acquisition - 30,545 TOTAL ALL HOUSING AUTHORITY FUNDS 425,000 249,545 Housing Authority (241) Low-Mod Housing (243) 2011 Bond (249) City of La Quinta HOUSING COMMISSION MEETING: March 9, 2022 STAFF REPORT AGENDA TITLE: RECOMMEND APPROVAL TO THE HOUSING AUTHORITY TO ADOPT A RESOLUTION AUTHORIZING THE APPLICATION TO, AND PARTICIPATION IN, THE STATE OF CALIFORNIA’S PROHOUSING DESIGNATION PROGRAM RECOMMENDATION Recommend approval to the Housing Authority (Authority) to adopt a resolution authorizing the Authority’s Executive Director, or Designee, to submit a Prohousing Designation Program application to the California Department of Housing and Community Development (HCD). EXECUTIVE SUMMARY • Staff is pursuing the designation of “prohousing” from HCD. • Jurisdictions must meet application criteria and enact prohousing policies that contribute to the acceleration of housing production. • If granted, this designation would award the Authority additional points or preference in various State-funded grant programs. FISCAL IMPACT - None BACKGROUND/ANALYSIS In July 2019, Assembly Bill 101 (AB 101) enacted Government Code section 65589.9, which established the Prohousing Designation Program (PDP). The PDP, overseen by HCD, awards additional points or preference in the scoring of competitive applications for State-funded programs that support housing, transportation, infrastructure, land use, and related objectives. HCD further defined PDP regulations and began accepting applications on July 1, 2021, on a continuous, year-round basis. Applications must meet certain criteria including the adoption of a formal resolution for the PDP. Jurisdictions must also adopt a housing element in compliance with Housing Element Law requirements and enact prohousing policies. The State defines prohousing policies as policies which are, “reasonably likely to accelerate, streamline, or encourage housing production.” Some examples include setting favorable zoning and land use for increased density, streamlining BUSINESS ITEM NO. 3 approval processes to reduce timeframes, reducing permit and development impact fees, and other similar policies. The Authority is facing the statewide challenge of providing an adequate supply of affordable housing, and continues to pursue new sources of local, state, and federal affordable housing funding to create more affordable housing choices. If approved by HCD, the Authority has an opportunity to become one of the few jurisdictions in the State to receive Prohousing designation – gaining a competitive advantage for grant funding and future incentives as they are added to the program. ALTERNATIVES The Commission may elect to not pursue this designation. Prepared by: Approved by: Jeremy Griffin, Management Specialist Gilbert Villalpando, Director Attachment: 1.Draft Resolution Authorizing the Application to, and Participation in, the Prohousing Designation Program RESOLUTION NO. HA 2022 – XXX A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING APPLICATION TO, AND PARTICIPATION IN, THE PROHOUSING DESIGNATION PROGRAM WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (“Program”), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; and WHEREAS, the Department of Housing and Community Development (“Department”) has adopted emergency regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program (“Program Regulations”), as authorized by Government Code section 65589.9, subdivision (d); and WHEREAS, the La Quinta Housing Authority (“Applicant”) desires to submit an application for a Prohousing Designation (“Application”). NOW, THEREFORE, BE IT RESOLVED by the La Quinta Housing Authority of the City of La Quinta, California, as follows: SECTION 1. Applicant is hereby authorized and directed to submit an Application to the Department. SECTION 2. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law. SECTION 3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production. Examples of such local laws, policies, and action include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that it ATTACHMENT 1 Resolution No. HA 2022 - XXX Application to Prohousing Designation Program Adopted: _______ ___, 2022 Page 2 of 3 commits itself to affirmatively furthering fair housing pursuant to Government Code section 8899.50. SECTION 4. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”). SECTION 5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law. SECTION 6. The Applicant’s Executive Director is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program. SECTION 7. The Applicant’s Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Housing Authority held on this day of , 2022, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ STEVE SANCHEZ, Chairperson La Quinta Housing Authority, California Resolution No. HA 2022 - XXX Application to Prohousing Designation Program Adopted: _______ ___, 2022 Page 3 of 3 ATTEST: __________________________________________ MONIKA RADEVA, Authority Secretary La Quinta Housing Authority, California (AUTHORITY SEAL) APPROVED AS TO FORM: ________________________________________ WILLIAM H. IHRKE, Authority Attorney La Quinta Housing Authority, California City of La Quinta HOUSING COMMISSION MEETING: March 9, 2022 STAFF REPORT AGENDA TITLE: RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS FOR FISCAL YEAR 2022/23 RECOMMENDATION Recommend approval to the Housing Authority of funding option to provide assistance to area homeless service providers and homeless prevention partners; Coachella Valley Rescue Mission (CVRM), Martha’s Village and Kitchen (MVK), and Coachella Valley Association of Governments (CVAG). EXECUTIVE SUMMARY • The Housing Commission (Commission) and Housing Authority (Authority) agreed on the allocation of $300,000 of Housing Authority funds to area homeless service providers and homeless prevention partners in previous Fiscal Year (FY). • Staff receives metrics quarterly regarding this funding and can track impacts of this program for the City of La Quinta and greater Coachella Valley community. • Staff recommends the Commission consider recommending the following allocations for FY 2022/23 totaling $300,000: - $100,000 to CVRM - $100,000 to MVK - $100,000 to CVAG FISCAL IMPACT Authority funds are available in account number 243-0000-60532. BACKGROUND/ANALYSIS Staff recommends providing $100,000 to CVRM, MVK, and CVAG, for services related to homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, BUSINESS SESSION ITEM NO. 4 housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a lo cation, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. 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. Staff will provide quarterly reports to the Housing Commission and Housing Authority for tracking purposes. ALTERNATIVE The Housing Commission can recommend this option to the Housing Authority, or direct staff with a new option. Prepared by: Doug Kinley, Management Analyst Approved by: Gil Villalpando, Director City of La Quinta HOUSING COMMISSION: March 9, 2022 STAFF REPORT AGENDA TITLE: DISCUSS FUNDING REQUEST FOR GALILEE CENTER RECOMMENDATION Discuss a funding request for Galilee Center. EXECUTIVE SUMMARY • Galilee Center (Galilee) requested $5,000 in funding from the Community Services Grants Program for Fiscal Year 2021/2022. • The Grant Review Committee reviewed and recommended funding of $1,500 to be provided. • City Council approved the recommendation during the October 5, 2021, City Council Meeting, noting that services provided by Galilee may coincide with Housing and Homeless Prevention. • Galilee has requested the Housing Commission (Commission) and Housing Authority (Authority) consider an ongoing allocation of $5,000 annually to support the center. FISCAL IMPACT – None BACKGROUND/ANALYSIS The Galilee Center is located in Mecca, an unincorporated community part of the Eastern Riverside County and Coachella Valley area. Galilee was founded in 2010 and is managed by Gloria Gomez and Claudia Castorena, who began the center’s work after retiring from their work as founders of Martha’s Kitchen. Galilee currently provides multiple services to residents of Thermal, Mecca, and surrounding locations, including shelter, food, medical care, clothing, and emergency relief services for children and seniors. Galilee has requested $5,000 grants from the City of La Quinta’s Community Services Grant Program successfully before, receiving $1,000 in the 2018/19 program, and $1,500 from the 2021/22 program. Staff recommended approval of these grants as they assisted in relieving the impacts of COVID-19 and food availability for those in need in the area. During the October 5, 2021, meeting, a STUDY SESSION ITEM NO. 1 discussion of services provided by Galilee that may be related to housing activities supported by the La Quinta Housing Commission and Authority were brought up by presenters of their services, resulting in direction by City Council for staff to bring to the Commission for their review and guidance. Staff seeks direction from the Commission regarding if this request should be approved, and, if approved, what appropriate funding source(s) would be used. Prepared by: Doug Kinley III, Management Analyst Approved by: Gilbert Villalpando, Director POWER POINTS HOUSING COMMISSION MEETING MARCH 9, 2022 Housing Commission Meeting Regular Quarterly Meeting March 9, 2022 1 Housing Commission Meeting March 9, 2022 B1 – Fiscal Year-End 2020/21 Housing Authority Budget Report 2 Overall Revenues •$366,684 over budget due to: –Trust deed repayments, actual rent revenue, vacant parcel sale •Two non-cash adjustments –(-$230,857) fair market value –$321,545 RDA loan interest earnings •$647,767 RDA loan repayment in 2020/21 •Bond Fund revenue from interest only 3 Overall Expenses •Housing Authority Fund under budget by $106,100 –Savings in payroll, legal, and consultant expenses •2011 Bond Fund savings –Land acquisition for Dune Palms Mobile Estates 4 Available Fund Balances Fund Fund Balance Housing Authority $12,059,978 Low-Mod Housing $2,792,552 2011 Bond $11,484,043 Total $26,336,473 Receivable in Low-Mod Housing Fund RDA Loan Balance $6,046,948 Principal $3,267,819 Interest $2,779,129 5 Housing Authority Meeting March 9, 2022 B2 –Fiscal Year Q2 2021/22 Mid-Year Housing Authority Budget Report 6 Overview & Adjustments •Revenue Adjustment –Actual rent revenues for Dune Palms Mobile Home Estates •Expenditure Adjustments –Professional services and operating expenses –Acquisition of a parcel unit 7 Housing Commission Meeting March 9, 2022 B3 – Application to HCD’s Prohousing Designation Program 8 Background •Established in July 2019 by Assembly Bill 101 •Overseen by CA HCD •Awards additional points or scoring preference for State-funded programs •Open for applications July 2021 9 Prohousing Criteria •Updated Housing Element must have prohousing policies •Adoption of formal resolution to apply •Application must score 30 out of possible 69 points across four categories 10 Questions/Comments 11 Housing Commission Meeting March 9, 2022 B4 – Recommend Funding Option for Area Homeless Prevention Programs 12 Homeless Program Funding •In 2021, the Housing Authority approved a budget allocation for the following contributions: –$100,000 to Coachella Valley Rescue Mission (CVRM) –$100,000 to Martha’s Village and Kitchen (MVK) –$100,000 to Coachella Valley Association of Governments for the CV Housing First Program (CVAG) 13 Funding Use by Organizations •Martha’s Village and Kitchen –Over 300 individuals placed into permanent affordable housing •Coachella Valley Rescue Mission –Over 5000 unique individuals sheltered •CV Housing First (CVAG) –Over 75 Chronically Homeless Housed 14 FY 2022/23 Homeless Program Funding •Proposed Allocation: $300,000 –$100,000 to CVRM –$100,000 to MVK –$100,000 to CVAG 15 Questions, Comments, Guidance by the Commission? 16 Housing Commission Meeting March 9, 2022 S1 – Funding Option for Galilee Center 17 Galilee Center Background •Founded in 2010 •501(c)(3) nonprofit providing food, clothing and basic needs for local disadvantaged communities in the East Coachella Valley •Over 112,000 people served since opened (50,000 children) 18 City of La Quinta Grant Request •Applied Community Services Grants Program funding successfully •21/22 Community Services Grants Program recommended Commission/Authority Review •Request for $5,000 annual allocation for services 19 Galilee Center Presentation 20 Thoughts and Recommendations? 21 Housing Commission Meeting Next Regular Meeting Date: June 8, 2022 22 23