Agenda

Return

C. 87

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	March 23, 2021

Contra

Costa

County

Subject:

Housing Successor Annual Report for Fiscal Year 2019-20

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 03/23/2021

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Maureen Toms, 925-674-7878

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: March 23, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

RECEIVE the Housing Successor Annual Report for Fiscal Year 2019-20, DIRECT staff to file the report with the Department of Housing and Community Development, and post the report on the County website.

FISCAL IMPACT:

There is no impact to the General Fund in regards to receiving and filing this annual report or extending the timeline for initiating development.

BACKGROUND:

The County is the housing successor to the former Contra Costa County Redevelopment Agency (“Redevelopment Agency”), dissolved on February 1, 2012. Each housing successor is required to prepare an annual report on how it is meeting requirements imposed by Health and Safety Code Section 34176.1.

BACKGROUND: (CONT'D)

The annual report is required to contain the following: (1) a summary of housing successor duties; (2) the balance of the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”); (3) an inventory of properties held in the Housing Asset Fund; and (4) reports on performance thus far in meeting the income and age proportionality requirements of Health and Safety Code Section 34176.1.

The report is due to the California Department of Housing and Community Development by April 1st each year and must be posted on the County’s website. This report brings the Housing Successor into compliance with reporting requirements. The report for Fiscal Year 2019-20 is being presented to the Board of Supervisors for its reference.

The County’s progress on major requirements is summarized below. The balance of the Housing Asset Fund as of June 30, 2020, was approximately $8.5 million, of which $6.09 million is bond proceeds issued prior to dissolution for affordable housing purposes. The Housing Successor received $379,848 in revenue during 2019-20.

As the Housing Successor, the County owned 60 parcels with a statutory value of $6.67 million as of June 30, 2020.

The amount the Housing Successor spent for housing monitoring and administrative costs is well below the current limit as required by Health and Safety Code 34176.1(a)(1). Allowable administrative expenses for fiscal year 2019-20 were limited to, an amount equal to 5.0 percent of the total of the amount of loans receivable and statutory value of land held for resale. Table 1 of the report shows actual expenditures and the maximum allowable for each fiscal year.

Non-administrative expenditures from the Housing Asset Fund were focused on expenditures related to Heritage Point, Orbisonia Heights, Rodeo Senior and Rodeo Plaza Housing Projects. The Heritage Point project consists of a four story, 42-unit multifamily apartment building completed in early 2020. A Master Development Agreement and Disposition and Development Agreements for Orbisonia Heights, Rodeo Senior and Rodeo Plaza are being drafted.

Pursuant to Health and Safety Code Section 33334.16, activities to develop properties acquired by the Former Redevelopment Agency for affordable housing must be initiated within five (5) years from the date of acquisition; otherwise, the properties must be sold and the proceeds returned to the Successor Agency's Low and Moderate Income Housing Asset Fund. The deadline may be extended only once by an additional five (5)-year period if the Board of Supervisors, by resolution, affirms its intent that the properties be used for the development of affordable housing. Since the dissolution of redevelopment in California, Section 34176.1 (e) of the Health and Safety Code establishes the commencement of the initial five (5)-year timeline of Health and Safety Code Section 33334.16 for various assets owned by the Housing Successor as the date of the Final Decision by DOF, which date was February 6, 2013. The deadline was extended by resolution to February 6, 2023.

CONSEQUENCE OF NEGATIVE ACTION:

The County will be out of compliance with the requirements of Health and Safety Code Section 34176.1.