California Government Code (CGC) Section 53646 requires the Housing Authority of the County of Contra Costa (Authority) to present the Board of Commissioners with a quarterly investment report that provides a complete description of the Authority’s portfolio. The report is required to show the


issuers, type of investments, maturity dates, par values (equal to market value here) and the current market values of each component of the portfolio, including funds managed by third party contractors. It must also include the source of the portfolio valuation (in HACCC’s case it is the issuer). Finally, the report must provide certifications that (1) all investment actions executed since the last report have been made in full compliance with the Investment Policy and; (2) the Housing Authority will meet its expenditure obligations for the next six months. (CGC 53646(b)).
The state-mandated report has been amended to indicate the amount of interest earned and how the interest was used or allocated. The amended report is attached.
In summary, the Authority had $24,013.78 in interest earnings for the quarter ending December 31, 2011. That interest was earned within discrete programs and most of the interest earned is available only for use within the program which earned the interest. Further, interest earnings may be restricted to specific purposes within a given program. For example, interest earned on excess housing choice voucher (Section 8) housing assistance payments (HAP) funds constituted 63.76% of the interest earned last quarter.
The use of these funds is not only restricted to use within the Section 8 program, but also is limited to the funding of future HAP costs. The Authority is not permitted to utilize this money for any other purpose under HUD regulations. Non-restricted interest earnings within both the voucher and public housing programs must be used solely within those programs, but such interest earnings can be used more broadly. The interest earned in the State and Local fund can be used for any purpose within the Authority’s scope of operations.

The interest earned for the quarter ending 12/31/11 is shown below. A more detailed report is attached.

Public Housing Housing Choice Voucher Housing Choice Voucher Rental Rehabilitation State & Local
Fund Fund Fund

Non-Restricted Restricted Non-Restricted Restricted Non-Restricted
Interest Earned Interest Earned Interest Earned Interest Earned Interest Earned

$1,927.65 $15,310.07 $2,596.73 $456.24 $3,723.09