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2025 06 11 HCHOUSING COMMISSION AGENDA Page 1 of 4 JUNE 11, 2025 HOUSING COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico, La Quinta WEDNESDAY, JUNE 11, 2025, AT 5:00 P.M. Members of the public may listen to this meeting by tuning-in live via www.laquintaca.gov/livemeetings. CALL TO ORDER Roll Call: Commissioners Christopherson, Pacheco, Paltin, and Chairperson Gaeta-Mejia Vacancy: One (1) PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the Commission on any matter not listed on the agenda pursuant to the “Public Comments – Instructions” listed at the end of the agenda. 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 § 54954.2(b)]. CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1.RECEIVE AND FILE SPECIAL MEETING MINUTES DATED APRIL 16, 2025 5 Housing Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov HOUSING COMMISSION AGENDA Page 2 of 4 JUNE 11, 2025 STUDY SESSION – None DEPARTMENTAL REPORTS – None COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the La Quinta Housing Commission will be held September 10, 2025, commencing at 5:00 p.m. at the La Quinta City Hall Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Laurie McGinley, Secretary of the Housing Commission of the City of La Quinta, do hereby declare that the foregoing Agenda for the Commission meeting of June 11, 2025, was posted on the City’s website, near the entrance to the Council Chamber at 78495 Calle Tampico and the bulletin board at 51321 Avenida Bermudas, on June 6, 2025. DATED: June 6, 2025 Laurie McGinley, Housing Commission Secretary City of La Quinta, California Public Notices Agenda packet materials are available for public inspection: 1) at the Clerk’s Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, California 92253; and 2) on the City’s website at https://www.laquintaca.gov/business/boards-and-commissions/housing- BUSINESS SESSION PAGE 7 21 1.RECOMMEND HOUSING AUTHORITY APPROVE FISCAL YEAR 2025/26 PROPOSED HOUSING AUTHORITY BUDGET 2.RECOMMEND HOUSING AUTHORITY APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES, INC. DBA LA QUINTA PALMS REALTY, INC FOR PROPERTY MANAGEMENT SERVICES 3.RECOMMEND HOUSING AUTHORITY APPROVE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING WITH J&H ASSET PROPERTY MANAGEMENT, INC. FOR PROPERTY MANAGEMENT SERVICES AT DUNE PALMS MOBILE ESTATES 23 HOUSING COMMISSION AGENDA Page 3 of 4 JUNE 11, 2025 commission in accordance with the Brown Act [Government Code § 54957.5; AB 2647 (Stats. 2022, Ch. 971)].  The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please contact Commission Secretary at (760) 777-7114, 24-hours in advance of the meeting and accommodations will be made.  If background material is to be presented to the Commission during a Commission meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the Commission Secretary for distribution. It is requested that this takes place prior to the beginning of the meeting. PUBLIC COMMENTS – INSTRUCTIONS Members of the public may address the Commission on any matter listed or not listed on the agenda as follows: WRITTEN PUBLIC COMMENTS can be provided either in-person during the meeting by submitting 15 copies to the Commission Secretary, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to LMcGinley@LaQuintaCA.gov, no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to the Commission, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Chair, a brief summary of public comments is asked to be reported. If written public comments are emailed, the email subject line must clearly state “Written Comments” and should include: 1) full name, 2) city of residence, and 3) subject matter . VERBAL PUBLIC COMMENTS can be provided in-person during the meeting by completing a “Request to Speak” form and submitting it to the Commission Secretary; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Members of the public shall be called upon to speak by the Chair. In accordance with City Council Resolution No. 2022-028, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the Commission Secretary by completing a “Request to Speak” form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments. Verbal public comments are defined as comments provided in the speakers’ own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Chair. Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the Commission Secretary to be disseminated to the Commission, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Chair. HOUSING COMMISSION AGENDA Page 4 of 4 JUNE 11, 2025 All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City’s Internet Web site and any other Internet Web-based platform or other Web-based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Government Code § 7920.000 et seq.]. TELECONFERENCE ACCESSIBILITY – INSTRUCTIONS Teleconference accessibility may be triggered in accordance with AB 2449 (Stats. 2022, Ch. 285), codified in the Brown Act [Government Code § 54953], if a member of the Housing Commission requests to attend and participate in this meeting remotely due to “just cause” or “emergency circumstances,” as defined, and only if the request is approved. In such instances, remote public accessibility and participation will be facilitated via Zoom Webinar as detailed at the end of this Agenda. *** TELECONFERENCE PROCEDURES*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT Pursuant to Government Code § 54953(f) [AB 2449, Stats. 2022, Ch. 285, Rubio]. 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 Chair; the City will facilitate the ability for a member of the public to be audible to the Commission and general public and allow him/her/they to speak on the item(s) requested. Please note – members of the public must unmute themselves when prompted upon being recognized by the Chair, in order to become audible to the Commission and the public. Only one person at a time may speak by teleconference and only after being recognized by the Chair. ZOOM LINK: https://us06web.zoom.us/j/84928069200 Meeting ID: 849 2806 9200 Or join by phone: (253) 215 – 8782 Written public comments – can be provided in person during the meeting or emailed to LMcGinley@LaQuintaCA.gov any time prior to the adjournment of the meeting, and will be distributed to the Commission, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Chair, a brief summary of any public comment is asked to be read, to the extent the Committee can accommodate such request. HOUSING COMMISSION MINUTES Page 1 of 2 APRIL 16, 2025 SPECIAL MEETING HOUSING COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, APRIL 16, 2025 CALL TO ORDER A special meeting of the La Quinta Housing Commission (Commission) was called to order at 5:00 p.m. by Chairperson Gaeta-Mejia. PRESENT: Commissioners Christopherson, Pacheco, Paltin, and Chairperson Gaeta-Mejia ABSENT: None VACANCY: One (1) PLEDGE OF ALLEGIANCE Chairperson Gaeta-Mejia led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR 1.RECEIVE AND FILE MEETING MINUTES DATED DECEMBER 11, 2024 MOTION – A motion was made and seconded by Commissioners Christopherson / Paltin to receive and file the Consent Calendar as presented. Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 0, vacancy – one (1). BUSINESS SESSION 1.RECOMMEND HOUSING AUTHORITY APPROVAL FOR LOCAL HOMELESS PREVENTION PROGRAMS FUNDING FOR FISCAL YEAR 2025/26 Senior Management Analyst Kinley and Administrative Technician Camarena presented the staff report, which is on file in the Clerk’s Office. The Commission discussed the process for local homeless prevention programs partners to request additional funding if such need arises due to rising costs and economic conditions; and current and future expansion plans for these programs. CONSENT CALENDAR ITEM NO. 1 5 HOUSING COMMISSION MINUTES Page 2 of 2 APRIL 16, 2025 SPECIAL MEETING PUBLIC SPEAKER: Philip Bettencourt, La Quinta – expressed support for the funding recommendation; noted the City of Newport Beach, California, collaborates with third- party organizations to assist the unhoused population; and thanked staff, the Commission, and the Housing Authority for their continued support of these programs. MOTION – A motion was made and seconded by Commissioners Pacheco/Paltin to recommend Housing Authority funding approval to provide assistance to local homeless service providers and homeless prevention partners for fiscal year 2025/26 in the amount of $375,000, as follows: A.$125,000 to Coachella Valley Rescue Mission B.$125,000 to Martha’s Village and Kitchen C.$125,000 to Coachella Valley Association of Governments Motion passed: ayes – 4, noes – 0, abstain – 0, absent – 0, vacancy – one (1). DEPARTMENTAL REPORTS – None COMMISSIONERS’ ITEMS Staff thanked the Commission for their attendance and participation at the annual Special Joint Meeting of the City Council, Boards, Commissions, and Committees, held on March 20, 2025; and noted that there is one vacancy on the Commission, and the City is actively recruiting applications from residents interested to serve, and annual interviews to be conducted by the Housing Authority are scheduled for June 17, 2025. ADJOURNMENT There being no further business, a motion was made and seconded by Commissioners Christopherson/Paltin to adjourn this meeting at 5:16 p.m. Motion passed: ayes – 4, noes –0, abstain – 0, absent – 0, vacancy – one (1). Respectfully submitted, Laurie McGinley, Commission Secretary/Management Specialist City of La Quinta, California 6 City of La Quinta HOUSING COMMISSION MEETING: June 11, 2025 STAFF REPORT AGENDA TITLE: RECOMMEND HOUSING AUTHORITY APPROVE FISCAL YEAR 2025/26 PROPOSED HOUSING AUTHORITY BUDGET RECOMMENDATION Recommend Housing Authority approve the fiscal year 2025/26 proposed Housing Authority Budget. EXECUTIVE SUMMARY  The proposed 2025/26 Housing Authority Budget is presented to the Commission for review and approval. The Housing Authority reviewed the proposed budget on June 3, 2025.  The proposed budget has a surplus of $457,407 for the year.  Final budget adoption is scheduled for June 17, 2025. FISCAL IMPACT The preliminary Housing Authority budget projects revenues of $2,597,187 (inclusive of the annual loan repayment of $715,187) and expenditures of $2,139,780, resulting in a surplus of $457,407. BACKGROUND/ANALYSIS The intent of this meeting is to provide further details on the budget and obtain approval from the Commission prior to final adoption by the Housing Authority. Each Housing Fund section contains notes to explain changes from 2023/24 actuals, changes in 2024/25, and projections for 2025/26. The budget format is similar to the prior fiscal year and includes a fund balance summary and year to year comparison summary chart. After approval from the Housing Commission, Staff will provide any updates to the Housing Authority on June 17, 2025, and recommend for final adoption. Should there be substantial changes (an increase or decrease of more than 10% in revenues or expenses), the proposed budget would be presented at a special meeting to the Housing Commission for reapproval prior to adoption. Attachment 1 provides a narrative of Housing Authority revenue and expenses including BUSINESS SESSION ITEM NO. 1 7 the Successor Agency (former Redevelopment Agency) loan repayment to the Authority. Line item details for these revenues and expenses are located in Exhibit A of the Attachment. ALTERNATIVES The Commission may recommend further adjustments to the budget. Per State law, the Authority must adopt a budget by June 30. Prepared by: Virginia Ortega, Finance Manager Approved by: Claudia Martinez, Housing Authority Finance Director Jon McMillen, Housing Authority Executive Director Attachment: 1. Fiscal Year 2025/26 Proposed Budget 8 HOUSING AUTHORITY 2025/26 PROPOSED BUDGET The Housing Authority budget provides resources for the evaluation of future affordable housing projects and programs, ongoing operational needs, and property maintenance, as well as legal and auditing services as required by the Authority. The summary is designed to provide an overview of the Housing Authority Funds. Line item details for revenues and expenses are located in Exhibit A of the Attachment. A preliminary review of the proposed budget will be presented to the Housing Commission on June 11, 2025 and is scheduled for adoption on June 17, 2025. The 2025/26 Authority budget has three active funds restricted to housing operations. Estimated Fund Balance, revenues, and expenditures for each fund are summarized below: REVENUES When all funds are combined, there is a 23% increase in revenues from the current 2024/25 current budget to the proposed 2025/26 budget. All three funds reflect increases in allocated or non- allocated interest due to projected earnings from investments currently held within the City’s portfolio. Fund 241 also includes an anticipated increase from rent revenue. The Housing Authority Fund (241) has an overall increase of $214,000 due to a combination of allocated interest estimates and increased rent revenue projections for the upcoming year. The RDA Low-Mod Housing Fund (243) recognizes the annual loan repayment from the Last and Final Recognized Obligation Payment Schedule (ROPS) for the Successor Agency (former Redevelopment Agency). For 2025/26 the total loan repayment is $3,575,934, which is allocated 80% to the General Fund ($2,860,747) and 20% to the Housing Authority Fund ($715,187). Any of the Housing Authority portion of the revenue not expended will be recognized in reserves in Fund 243. The final loan repayment is scheduled for fiscal year 2029/30. Remaining outstanding loan repayments after 2025/26 total $14,597,984 of which $2,919,597 will be allocated to the Housing Authority. The overall increase in this fund of $70,000 is attributed to allocated interest. ATTACHMENT 1 9 The SA 2011 Low/Mod Bond (249) has an overall increase of $68,000, mainly attributed to non- allocated interest earnings. EXPENSES The Housing Authority Fund (241) has an overall estimated decrease of 15%, which is due in large part to the $350,000 decrease in Building/Site Improvements in the proposed budget resulting from an expected $430,000 in carryover from the current year to continue building improvements at Dune Palms Mobile Home Estates. These enhancements include landscape improvements, wall and fencing repairs, pool demolition, and upgrades to common areas comprising of the recreation hall, laundry area, and office. Increases in salary and benefits and contract services, including consulting and recording fees, are attributed to the current economy and inflationary impacts. For RDA Low-Mod Housing Fund (243), revenues received from loan repayments have been used for homelessness programs as approved by the Authority each fiscal year. Pursuant to California Health and Safety Code’s Community Development and Housing law, if the Authority has fulfilled certain obligations, the Authority may expend up to $500,000 per fiscal year for homelessness prevention, an increase from $250,000 with the Governor’s approval of AB1782 in July of 2024. The proposed budget of $325,000 for the 2025/26 homelessness programs, in addition to $50,000 to be carried forward from the current year, will allocate $375,000 in funding in the next fiscal year for local homeless service providers and homeless prevention partners in the Coachella Valley. The SA 2011 Low/Mod Bond (249) is anticipated to have a fund balance of $436,000 on June 30, 2025. A $150,000 budget for 2025/26 provides for the ability to evaluate future affordable housing projects and programs. The decrease in expenses of approximately $500,000 compared to FY 2024/25 is due to one-time costs for utility improvements at vacant real property located at Highway 111 and Dune Palms Road during the current year. 10 Housing Authority EXHIBIT A 11 Housing Fund Revenues 2024/25 Original 2024/25 Current Variance Original vs. Current 2025/26 Proposed Variance Current vs. Adopted % Change 241 - Housing Authority 1,452,000 1,452,000 -1,666,000 214,000 15% 243 - RDA Low-Mod Housing 60,000 60,000 -130,000 70,000 117% 249 - SA 2011 Low/Mod Bond 18,000 18,000 -86,000 68,000 378% Total Revenues 1,530,000 1,530,000 - 1,882,000 352,000 23% RDA Loan Repayment 701,163 701,163 - 715,187 14,024 Total Operating Revenues 2,231,163 2,231,163 - 2,597,187 366,024 Housing Fund Expenditures 2024/25 Original 2024/25 Current Variance Original vs. Current 2025/26 Proposed Variance Current vs. Adopted % Change 241 - Housing Authority 1,715,440 1,965,440 (300,660) 1,664,780 (300,660) -15% 243 - RDA Low-Mod Housing 250,000 350,000 (25,000) 325,000 (25,000) -7% 249 - SA 2011 Low/Mod Bond 250,000 657,003 (507,003) 150,000 (507,003) -77% Total Expenditures 2,215,440 2,972,443 (832,663) 2,139,780 (832,663) -28% Budget Surplus/(Deficit)15,723 (741,280) 832,663 457,407 HOUSING AUTHORITY 2025/26 BUDGET SUMMARY 12 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 340 - Charges for Services 526 0 0 0 0 0 0%241-9101-42301 Miscellaneous Revenue 340 - Charges for Services Totals:526 0 0 0 0 0 0% 360 - Use of Money & Property 416,365 200,000 200,000 90,244 365,000 165,000 83%241-9101-41900 Allocated Interest 165,958 0 0 0 0 0 0%241-9101-41910 GASB 31 Interest 0 1,000 1,000 0 0 (1,000)-100%241-9101-41915 Non-Allocated Interest 80,124 0 0 0 0 0 0%241-9101-42706 Loan Repayments 148,869 100,000 100,000 11,300 100,000 0 0%241-9101-43504 2nd Trust Deed Repaymen ts 118,416 0 0 0 0 0 0%241-9101-45000 Sale of Other Assets 360 - Use of Money & Property Totals:929,732 301,000 301,000 101,544 465,000 164,000 54% 9101 - Housing Authority - Admin Totals:930,258 301,000 301,000 101,544 465,000 164,000 54% 9103 - Housing Authority - LQRP 360 - Use of Money & Property 200,000 0 0 0 0 0 0%241-9103-43501 Miscellaneous Revenue/LQR P 351,454 350,000 350,000 247,958 350,000 0 0%241-9103-43502 Rent Revenue/LQRP 360 - Use of Money & Property Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9103 - Housing Authority - LQRP Totals:551,454 350,000 350,000 247,958 350,000 0 0% 9104 - Dune Palms Mobile Estates 360 - Use of Money & Property 791,622 800,000 800,000 662,797 850,000 50,000 6%241-9104-42112 Rent Revenue/Tenant/Dun e Palms 0 1,000 1,000 0 1,000 0 0%241-9104-42302 Miscellaneous Revenue/Du ne Palms 360 - Use of Money & Property Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 9104 - Dune Palms Mobile Estates Totals:791,622 801,000 801,000 662,797 851,000 50,000 6% 241 - HOUSING AUTHORITY Totals:2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 15% 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 360 - Use of Money & Property 143,666 60,000 60,000 31,085 130,000 70,000 117%243-0000-41900 Allocated Interest 45,354 0 0 0 0 0 0%243-0000-41910 GASB 31 Interest 360 - Use of Money & Property Totals:189,020 60,000 60,000 31,085 130,000 70,000 117% 370 - Miscellaneous 68,161 0 0 0 0 0 0%243-0000-48500 Extraordinary Gain 370 - Miscellaneous Totals:68,161 0 0 0 0 0 0% 0000 - Undesignated Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 24243 - RDA LOW-MOD HOUSING FUND Totals:257,181 60,000 60,000 31,085 130,000 70,000 117% 526 0 0 0 0 0 526 0 0 0 0 0 416,365 200,000 200,000 90,244 365,000 165,000 165,958 0 0 0 0 0 0 1,000 1,000 0 0 (1,000) 80,124 0 0 0 0 0 148,869 100,000 100,000 11,300 100,000 0 118,416 0 0 0 0 0 929,732 301,000 301,000 101,544 465,000 164,000 930,258 301,000 301,000 101,544 465,000 164,000 200,000 0 0 0 0 0 351,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 551,454 350,000 350,000 247,958 350,000 0 791,622 800,000 800,000 662,797 850,000 50,000 0 1,000 1,000 0 1,000 0 791,622 801,000 801,000 662,797 851,000 50,000 791,622 801,000 801,000 662,797 851,000 50,000 2,273,334 1,452,000 1,452,000 1,012,299 1,666,000 214,000 143,666 60,000 60,000 31,085 130,000 70,000 45,354 0 0 0 0 0 189,020 60,000 60,000 31,085 130,000 70,000 68,161 0 0 0 0 0 68,161 0 0 0 0 0 257,181 60,000 60,000 31,085 130,000 70,000 257,181 60,000 60,000 31,085 130,000 70,000 3 13 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed 25/26 vs. Current 24/25 % Change in Budget 249 - SA 2011 LOW/MOD BOND FUND financed in 2016) 0000 - Undesignated 340 - Charges for Services 0 0 0 4,483 0 0 0%249-0000-42301 Miscellaneous Revenue 340 - Charges for Services Totals:0 0 0 4,483 0 0 0% 360 - Use of Money & Property 4,616 3,000 3,000 0 0 (3,000)-100%249-0000-41900 Allocated Interest 23,261 0 0 0 0 0 0%249-0000-41910 GASB 31 Interest 86,083 15,000 15,000 75,125 86,000 71,000 473%249-0000-41915 Non-Allocated Interest 360 - Use of Money & Property Totals:113,960 18,000 18,000 75,125 86,000 68,000 378% 390 - Other Financing Sources 1,387,009 0 0 0 0 0 0%249-0000-49500 Transfers In 390 - Other Financing Sources Totals:1,387,009 0 0 0 0 0 0% 0000 - Undesignated Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 249 - SA 2011 LOW/MO249 BOND FUND (Refinanced in 2016) Totals:1,500,969 18,000 18,000 79,607 86,000 68,000 378% 0 0 0 4,483 0 0 0 0 0 4,483 0 0 4,616 3,000 3,000 0 0 (3,000) 23,261 0 0 0 0 0 86,083 15,000 15,000 75,125 86,000 71,000 113,960 18,000 18,000 75,125 86,000 68,000 1,387,009 0 0 0 0 0 1,387,009 0 0 0 0 0 1,500,969 18,000 18,000 79,607 86,000 68,000 1,500,969 18,000 18,000 79,607 86,000 68,000 The Housing Authority budget invests in programs and projects that preserve and increase the supply of affordable housing in the City. 241 Housing Authority Fund: Second Trust Deed Payments and Home Sale Proceeds vary from year-to-year. Additional repayment of silent second trust deeds are recognized upon receipt. 241-9101-45000, Sale of Other Assets revenues in FY 2023/24 reflect the purchase and sale agreement between the City of La Quinta and the La Quinta Housing Authority for vacant parcels to be used for future low/moderate affordable housing. 243 RDA Low-Mod Housing Fund: The 2025/26 former Redevelopment Agency loan repayment of $715,187 will be recognized in reserves within this Fund. 249 Successor Agency (SA) 2011 Low/Mod Bund Fund: In FY 2023/24, fund was used for the acquisition of the vacant property located west of the Home Depot Center on Highway 111, on the northeast corner of Highway 111 and Dune Palms Road proposed to be developed as an affordable housing development with a connecting thoroughfare to CV Link. Remaining bond funds continue to earn interest and are available for future housing projects. 14 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 241 - HOUSING AUTHORITY 9101 - Housing Authority - Admin 50 - Salaries and Benefits 308,362 322,000 322,000 299,614 328,800 6,800 2%241-9101-50101 Permanent Full Time 58 0 0 111 0 0 0%241-9101-50105 Salaries - Overtime 500 1,800 1,800 450 1,800 0 0%241-9101-50110 Commissions & Boards 145 200 200 125 200 0 0%241-9101-50150 Other Compensation 27,150 31,200 31,200 26,454 30,400 (800)-3%241-9101-50200 PERS-City Portion 4,875 3,640 3,640 8,955 9,380 5,740 158%241-9101-50215 Other Fringe Benefits 53,229 70,000 70,000 46,186 70,900 900 1%241-9101-50221 Medical Insurance 455 0 0 399 0 0 0%241-9101-50222 Vision Insurance 2,747 0 0 2,225 0 0 0%241-9101-50223 Dental Insurance 175 0 0 158 0 0 0%241-9101-50224 Life Insurance 1,764 2,000 2,000 1,831 2,100 100 5%241-9101-50225 Long Term Disability 13,400 13,400 13,400 10,050 13,700 300 2%241-9101-50230 Workers Comp Insurance 4,479 4,800 4,800 4,353 4,800 0 0%241-9101-50240 Social Security-Medicare 56 0 0 59 0 0 0%241-9101-50241 Social Security-FICA 50 - Salaries and Benefits Totals:417,394 449,040 449,040 400,970 462,080 13,040 3% 60 - Contract Services 75,228 75,000 75,000 78,397 110,000 35,000 47%241-9101-60103 Professional Services 5,000 5,000 5,000 0 5,000 0 0%241-9101-60106 Auditors 33,905 25,000 25,000 26,538 25,000 0 0%241-9101-60153 Attorney 200,000 0 0 0 0 0 0%241-9101-60157 Rental Expenses 60 - Contract Services Totals:314,133 105,000 105,000 104,935 140,000 35,000 33% 62 - Maintenance & Operations 467 1,000 1,000 0 1,000 0 0%241-9101-60320 Travel & Training 734 2,000 2,000 987 2,000 0 0%241-9101-60420 Operating Supplies 62 - Maintenance & Operations Totals:1,201 3,000 3,000 987 3,000 0 0% 69 - Internal Service Charges 9,300 9,300 9,300 6,975 9,700 400 4%241-9101-91843 Property & Crime Insuran ce 18,200 18,200 18,200 13,650 18,700 500 3%241-9101-91844 Earthquake Insurance 80,900 80,900 80,900 60,675 81,300 400 0%241-9101-98110 Information Tech Charges 69 - Internal Service Charges Totals:108,400 108,400 108,400 81,300 109,700 1,300 1% 9101 - Housing Authority - Admin Totals:841,128 665,440 665,440 588,192 714,780 49,340 7% 9103 - Housing Authority - LQRP 62 - Maintenance & Operations 379,320 350,000 350,000 210,512 350,000 0 0%241-9103-60157 Rental Expenses 62 - Maintenance & Operations Totals:379,320 350,000 350,000 210,512 350,000 0 0% 9103 - Housing Authority - LQRP Totals:379,320 350,000 350,000 210,512 350,000 0 0% 308,362 322,000 322,000 299,614 328,800 6,800 58 0 0 111 0 0 500 1,800 1,800 450 1,800 0 145 200 200 125 200 0 27,150 31,200 31,200 26,454 30,400 (800) 4,875 3,640 3,640 8,955 9,380 5,740 53,229 70,000 70,000 46,186 70,900 900 455 0 0 399 0 0 2,747 0 0 2,225 0 0 175 0 0 158 0 0 1,764 2,000 2,000 1,831 2,100 100 13,400 13,400 13,400 10,050 13,700 300 4,479 4,800 4,800 4,353 4,800 0 56 0 0 59 0 0 417,394 449,040 449,040 400,970 462,080 13,040 75,228 75,000 75,000 78,397 110,000 35,000 5,000 5,000 5,000 0 5,000 0 33,905 25,000 25,000 26,538 25,000 0 200,000 0 0 0 0 0 314,133 105,000 105,000 104,935 140,000 35,000 467 1,000 1,000 0 1,000 0 734 2,000 2,000 987 2,000 0 1,201 3,000 3,000 987 3,000 0 9,300 9,300 9,300 6,975 9,700 400 18,200 18,200 18,200 13,650 18,700 500 80,900 80,900 80,900 60,675 81,300 400 108,400 108,400 108,400 81,300 109,700 1,300 841,128 665,440 665,440 588,192 714,780 49,340 379,320 350,000 350,000 210,512 350,000 0 379,320 350,000 350,000 210,512 350,000 0 379,320 350,000 350,000 210,512 350,000 0 15 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 9104 - Dune Palms Mobile Estates 60 - Contract Services 116,883 100,000 100,000 84,300 100,000 0 0%241-9104-60103 Professional Services 428,068 400,000 400,000 333,370 400,000 0 0%241-9104-60157 Rental Expense 0 0 0 2,381 0 0 0%241-9104-60159 Relocation/Temp Housing 60 - Contract Services Totals:544,952 500,000 500,000 420,052 500,000 0 0% 68 - Capital Expenses 99,064 200,000 450,000 10,716 100,000 (350,000)-78%241-9104-72110 Building/Site Improvemen ts 68 - Capital Expenses Totals:99,064 200,000 450,000 10,716 100,000 (350,000)-78% 9104 - Dune Palms Mobile Estates Totals:644,015 700,000 950,000 430,768 600,000 (350,000)-37% 241 - HOUSING AUTHORITY Totals:1,864,463 1,715,440 1,965,440 1,229,471 1,664,780 (300,660)-15% 116,883 100,000 100,000 84,300 100,000 0 428,068 400,000 400,000 333,370 400,000 0 0 0 0 2,381 0 0 544,952 500,000 500,000 420,052 500,000 0 99,064 200,000 450,000 10,716 100,000 (350,000) 99,064 200,000 450,000 10,716 100,000 (350,000) 644,015 700,000 950,000 430,768 600,000 (350,000) 1,864,463 1,715,440 1,965,440 1,229,471 1,664,780 (300,660) 241 Housing Authority Fund: These funds are used to account for the housing activities of the Housing Authority which are to promote and provide quality affordable housing. 16 Fund: 241 - HOUSING AUTHORITY Permanent Full Time 328,800.00241-9101-50101 20% - City Manager (80% City Manager) 10% - Finance Director (90% Finance) 10% - City Clerk Director (90% City Clerk) 40% - Director- Business Unit & Housing Development (60% City Manager) 60% - Sr. Management Analyst (40% Information Technology Fund) 60% - Management Specialist (40% City Manager) 80% - Administrative Techniciant (20% City Manager) Housing Authority Member Stipends (5) Housing Commissioner Stipends Professional Services 110,000.00241-9101-60103 Housing compliance services Travel & Training 1,000.00241-9101-60320 For housing related training and staff development Rental Expenses 350,000.00241-9103-60157 Expenses associated with 28 homes owned by the Authority which are located in the La Quinta Cove Professional Services 100,000.00241-9104-60103 For residential property management services at Dune Palms Mobile Estates Rental Expense 400,000.00241-9104-60157 Expenses associated with 102 units owned by the Authority which are located in North La Quinta 17 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 243 - RDA LOW-MOD HOUSING FUND 0000 - Undesignated 64 - Other Expenses 250,000 250,000 350,000 300,800 325,000 (25,000)-7%243-0000-60532 Homelessness Assistance 64 - Other Expenses Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 0000 - Undesignated Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 24243 - RDA LOW-MOD HOUSING FUND Totals:250,000 250,000 350,000 300,800 325,000 (25,000)-7% 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) 250,000 250,000 350,000 300,800 325,000 (25,000) 243 RDA Low-Mod Housing Fund: The 2025/26 former Redevelopment Agency loan repayment of $715,187 will be recognized in reserves within this Fund. These funds are used to account for the housing activities of the Housing Authority which are to promote and provide quality affordable housing. 18 2023/24 Actuals 2024/25 Original Budget 2024/25 Current Budget 2024/25 YTD Activity* 2025/26 Proposed Budget 25/26 vs. Current 24/25 % Change in Budget 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 0000 - Undesignated 68 - Capital Expenses 3,587,121 0 0 0 0 0 0%249-0000-74010 Land Acquisition 900 250,000 657,003 746,407 150,000 (507,003)-77%249-0000-80050 Affordable Housing Projec t Development 68 - Capital Expenses Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 0000 - Undesignated Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 249 - SA 2011 LOW/M249 BOND FUND (Refinanced in 2016) Totals:3,588,021 250,000 657,003 746,407 150,000 (507,003)-77% 3,587,121 0 0 0 0 0 900 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) 3,588,021 250,000 657,003 746,407 150,000 (507,003) 249 Successor Agency Bond Fund: These funds are restricted per individual bond covenants and were used for the acquisition of the vacant propoerty located west of the Home Depot Center on Highway 111, on the northeast corner of Highway 111 and Dune Palms Road. This property is proposed to be developed as an affordable housing development with a connecting thoroughfare to CV Link. Remaining funds are available for future housing projects. For FY 2025/26, budget will be used for investment in design and development of projects. 19 20 City of La Quinta HOUSING COMMISSION MEETING: June 11, 2025 STAFF REPORT AGENDA TITLE: RECOMMEND HOUSING AUTHORITY APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH JC DESERT ENTERPRISES, INC DBA LA QUINTA PALMS REALTY, INC FOR PROPERTY MANAGEMENT SERVICES RECOMMENDATION Recommend Housing Authority approve Amendment No. 2 to Agreement for Contract Services for property management services with JC Desert Enterprises, Inc. dba La Quinta Palms Realty, Inc.; and authorize the Executive Director to execute the amendment. EXECUTIVE SUMMARY The City contracts property management services for its affordable housing properties inventory for qualified low-income residents. On May 19, 2020, the La Quinta Housing Authority (Authority) approved a 3-year Agreement for Contract Services with La Quinta Palms Realty (LQPR) for property management services, following the competitive request for proposals (RFP) public procurement process conducted in 2020. In November 2022, the Authority executed an Assignment, Assumption, and Consent Agreement with JC Desert Enterprises, Inc. dba La Quinta Palms Realty, Inc. (JC Desert), who assumed LQPR’s contractual obligations for the services due to LQPR’s dissolution; the agreement expired June 30, 2023. In June 2023, the Authority executed Amendment No. 1 with JC Desert extending the agreement through June 30, 2025. Proposed Amendment No. 2 (Attachment 1) with JC Desert will extend the services through June 30, 2027. FISCAL IMPACT Estimated costs per fiscal year (FY) for the proposed two-year term extension under Amendment No. 2 are not to exceed $46,296 ($3,858 monthly). If approved, the total not- to-exceed amount under the agreement is $306,792 as detailed in the table below. Funds are available in the Authority’s FY 2025/26 budget Professional Services account 241- 9101-60103, and future FYs will be budgeted in accordance with the agreement. BUSINESS SESSION ITEM NO. 2 21 Term Compensation Original 3-Year Term FY 2020/21 ($3,500 per month) $42,000 FY 2021/22 ($3,500 per month) $42,000 FY 2022/23 ($3,500 per month) $42,000 Original 3-year Term Total: $126,000 Amendment No. 1 – 2-Year Term FY 2023/24 ($3,675 per month) $44,100 FY 2024/25 ($3,675 per month) $44,100 Amendment No. 1 Total: $88,200 Proposed Amendment No. 2 – 2-Year Term FY 2025/26 ($3,858 per month) $46,296 FY 2026/27 ($3,858 per month) $46,296 Proposed Amendment No. 2 Total: $92,592 Grand Total: $306,792 BACKGROUND/ANALYSIS In February 2020, the City published an RFP for property management services for the Authority’s affordable housing properties inventory for qualified low-income residents in La Quinta; and received one proposal from LQPR. On May 19, 2020, the Authority executed a 3-year agreement with LQPR for the services, which was set to expire on June 30, 2023. In November 2022, following LQPR’s dissolution, the Authority executed an Assignment, Assumption, and Consent Agreement with JC Desert. Under this agreement, JC Desert assumed all of LQPR’s contractual obligations with the Authority, and now operates under the Department of Real Estate as a dba of La Quinta Palms Realty, Inc. (License No. 02198183). In June 2023, the Authority executed Amendment No. 1 with JC Desert extending the agreement term through June 30, 2025. The proposed Amendment No. 2 with JC Desert, if approved, will extend the term of the agreement for two additional years, through June 30, 2027. The Authority may terminate the agreement at any time with a 30-day written notice. ALTERNATIVES The Commission may elect not to recommend Authority approval of the proposed Amendment No. 2, however, staff does not recommend this alternative due to the immediate need for these services. Prepared by: Laurie McGinley, Management Specialist Approved by: Gilbert Villalpando, Director of Business Unit and Housing Development 22 City of La Quinta HOUSING COMMISSION MEETING: June 11, 2025 STAFF REPORT AGENDA TITLE: RECOMMEND HOUSING AUTHORITY APPROVE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING WITH J&H ASSET PROPERTY MANAGEMENT, INC. FOR PROPERTY MANAGEMENT SERVICES AT DUNE PALMS MOBILE ESTATES RECOMMENDATION Recommend Housing Authority approve Amendment No. 1 to the Memorandum of Understanding with J&H Asset Property Management, Inc. for property management services at Dune Palms Mobile Estates. EXECUTIVE SUMMARY The La Quinta Housing Authority (Authority) has contracted with J&H Asset Property Management, Inc. (J&H) for property management services for the Dune Palms Mobile Estates (Park) since the Authority acquired the Park in 2021. The current Memorandum of Understanding (MOU) with J&H for these services expires June 30, 2025. Proposed Amendment No. 1 to the MOU, if approved, will extend the term of the MOU through June 30, 2025; and will ensure continuity and consistency of services for the Park and its residents, as well as maintain compliance with contractual requirements. FISCAL IMPACT Estimated fiscal year costs under the proposed Amendment No. 1 to the MOU with J&H are not to exceed $39,620, based on a $3,260 monthly cost, and a $500 annual audit fee. Payments will be made in monthly installments for services rendered and invoiced in accordance with the agreement. BACKGROUND/ANALYSIS The Authority acquired the Park in 2021 and retained J&H as property manager to ensure a seamless transition for residents. J&H has provided consistent management services for the Park since February 2006, including maintaining all legally required California State licensing and reporting, BUSINESS SESSION ITEM NO. 3 23 maintenance requests from residents, rent collections, and facilitating operations for the Park. On March 16, 2021, the Authority approved an agreement with J&H for property management services, which expired June 30, 2024. In 2024, the Authority executed an MOU to continue the services through June 30, 2025. Proposed Amendment No. 1 to the MOU with J&H will extend the term trough June 30, 2026; fiscal year compensation is detailed under the Fiscal Impact section of this report. The Authority may terminate the MOU at any time with a 30-day written notice. All other terms and conditions of the original agreement and MOU remain unchanged. ALTERNATIVES The Commission may elect not to recommend Authority approval of the proposed Amendment No. 1 to the MOU, however, staff does not recommend this alternative due to J&H’s the immediate need for these services. Prepared by: Approved by: Laurie McGinley, Management Specialist Gilbert Villalpando, Director of Business Unit and Housing 24 POWER POINTS HOUSING COMMISSION MEETING JUNE 11, 2025 June 11, 2025 1 Housing Commission Regular Quarterly Meeting June 11, 2025 Pledge of Allegiance 1 2 June 11, 2025 2 Housing Commission Meeting June 11, 2025 Confirmation of Agenda Housing Commission Meeting June 11, 2025 Consent Calendar Item 3 4 June 11, 2025 3 Housing Commission Meeting June 11, 2025 B1 – Discuss and Approve FY 2025/26 Proposed Housing Authority Budget Revenue Projections Fund 241 – Adjustments to rent revenue & interest earnings Fund 243 – Includes annual loan repayment $715,187 & interest earnings Fund 249 – Anticipated interest earnings 5 6 June 11, 2025 4 Expense Projections Fund 241 – Rental expenses, site improvements, legal fees, and salaries & benefits Fund 243 – Homelessness funding Fund 249 - Evaluate future affordable housing projects, no anticipated land purchases Housing Fund Balances * General Fund and RDA Low-Mod Housing Fund estimates are for unappropriated reserves and included annual Successor Agency loan repayments as approved with the last and final recognized obligation payment schedule. The repayment for FY 2025/26 is $715,187. 7 8 June 11, 2025 5 FY 2025/26 Proposed Budget Next Steps • Budget Adoption on 06/17/2025 • Monitor and adjust as needed For the latest budget information visit: www.laquintaca.gov/business/finance/budget Questions and Recommendations 9 10 June 11, 2025 6 Housing Commission Meeting June 11, 2025 B2 – Recommend Housing Authority Approve Amendment 2 with JC Desert Enterprises 11 12 June 11, 2025 7 Contract Background •JC Desert Enterprises (formerly La Quinta Palms Realty) provides property management services for the Housing Authority’s inventory of Cove Homes provided to qualified low-income residents. •The initial Agreement was for a term from July 1, 2020, through June 30, 2023 Current and Proposed Amendments •Current Amendment 1: July 1, 2023, extended the term for 2 additional years, expiring July 1, 2025 •Proposed Amendment 2: Begin July 1, 2025, for a two-year term to expire June 30, 2027. •The annual cost is not to exceed $46,296 per year ($3,858 monthly). 13 14 June 11, 2025 8 Total Cost of Contract Annual BaseMonthly BaseFiscal Year $42,000/yr$3,500 Original 3-year Term 2020/21-2022/23 (3-Years) $44,100/yr$3,675 Amendment No. 1 2023/24-2024/25 (2-Years) $46,296/yr$3,858 Proposed Amendment No. 2 2025/26-2026/27 (2-Years) $306,792 TOTAL CONTRACT SUM (inclusive of all previous terms and extensions) Questions and Recommendations 15 16 June 11, 2025 9 Housing Commission Meeting June 11, 2025 B3 – Recommend Housing Authority Approve Amendment 1 with J&H Asset Property Management 17 18 June 11, 2025 10 Contract Overview • Property Management of Dune Palms Mobile Estates: J&H Asset Property Management The current term expires June 30, 2025. • Proposed Amendment No. 1 to the MOU, which extends the agreement for an additional year, through June 30, 2026, and updates the compensation schedule. • Would ensure continued, experienced management for the benefit of park residents and maintains compliance with contractual requirements. Management Fee Fiscal Year AmountMonthly AmountFiscal Year $39,120 $3,260 2025/26 Fee Per Audit (1/year): $500 $39,620 TOTAL CONTRACT AMOUNT Cost Summary for Services 19 20 June 11, 2025 11 Questions and Recommendations 21 22 June 11, 2025 12 Housing Commission Meeting Next Regular Quarterly Meeting September 10, 2025 Classified 23 24