Agenda Item AGENDA STAFF REPORT ASR
Control 23-000958 |
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MEETING
DATE: |
12/19/23 |
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legal entity taking action: |
Orange
County Housing Authority acting as the Housing Successor Agency |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
OC
Community Resources (Approved) |
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Department contact person(s): |
Dylan
Wright (714) 480-2788 |
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Julia
Bidwell (714) 480-2991 |
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Subject: FY 2022-23 Housing Successor Agency
Annual Report
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
No
Legal Objection |
Consent
Calendar |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 12/20/2022 #3, 1/24/2012 #32 |
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RECOMMENDED
ACTION(S):
1. |
Receive and file
the FY 2022-23 Housing Successor Agency Annual Report. |
2. |
Authorize the
Orange County Housing Authority Executive Director or designee to make any
adjustments, as may be necessary, based on the final Annual Comprehensive
Financial Report. |
SUMMARY:
Receiving and filing of the FY
2022-23 Housing Successor Agency Annual Report will support the County of
Orange's compliance with State of California’s redevelopment dissolution law
requirements.
BACKGROUND
INFORMATION:
On January 1, 2014, Senate Bill 341
(SB 341) became effective and amended the California Health and Safety Code
(HSC 34176.1), Section 34176.1, requiring redevelopment housing successor
agencies to prepare an annual report containing: 1) an independent financial
audit report; 2) statements relating to income, types of expenditures and fund
balances; 3) updates on any activities related to fund transfers, recognized
obligation payments and housing successor owned property; and 4) any excess
surplus funds, as described by law. On January 24, 2012, the Board of
Supervisors (Board) approved the Orange County Housing Authority (OCHA) to act
as Housing Successor Agency (Housing Successor) for the former redevelopment
agency, Orange County Development Agency (OCDA). On December 20, 2022, the Board
approved the FY 2021-22 Housing Successor Agency Annual Report (Annual Report).
The FY 2022-23 Annual Report was
prepared pursuant to HSC 34176.1 and includes a fiscal statement prepared by
the Housing Successor and a summary of information related to the Housing
Successor’s housing activities. These activities include ongoing monitoring of
deed restricted affordable units, tenant-based rental assistance, rapid
rehousing program and creation of new housing units that will be affordable to
households earning less than 30 percent and no more than 80 percent of the Area
Median Income (AMI). An independent financial audit of the Housing Successor
prepared by Eide Bailly LLP, as part of the County of Orange's (County) Annual
Comprehensive Financial Report, was utilized to develop this Annual Report.
This Annual Report relates only to those assets that were transferred from the
former OCDA and does not represent the entirety of OCHA operations.
In FY 2022-23, the Housing
Successor continued to support the development of units for the benefit of
extremely low-income households countywide through the 2016 Permanent
Supportive Housing Notice of Funding Availability (NOFA) and the 2020
Supportive Housing NOFA, which leveraged Housing Successor funds with grants, low-income
housing tax credits and other public and private sources of funds. The County
released a 2023 Supportive Housing NOFA in March 2023, making up to $67.1
million in capital and 210 project-based vouchers available for supportive
housing developments; however, Housing Successor funds were limited and not
made available through that NOFA.
SB 341 reinstated a requirement to
prevent housing successors from accumulating an excess surplus in the Low- and
Moderate-Income Housing Asset Fund (Housing Asset Fund), which is generally
defined as unencumbered cash that exceeds the greater of $1 million or the
aggregate amount deposited into the Housing Asset Fund in the preceding four
years. OCHA previously accrued an excess surplus in the Housing Asset Fund in FY
2018-19, but in the last Annual Report, it was reported that the FY 2018-19
excess surplus was expended by June 30, 2022. The excess surplus funds for FY
2018-19 were expended and encumbered prior to June 30, 2022. Additionally, OCHA
has not accumulated an excess surplus in FY 2022-23.
SB 341 states that if a housing
successor has excess surplus, the housing successor shall encumber the excess
surplus within three fiscal years. If the housing successor fails to comply
with this, the housing successor, within 90 days of the end of the third fiscal
year, shall transfer any excess surplus to the California State Department of
Housing and Community Development (HCD). With the elimination of excess surplus
for FY 2018-19, OCHA will not be required to transfer funds over to HCD.
In the future, all funds expended
by OCHA as the Housing Successor will continue to go towards the development of
units restricted to households earning at or below 30 percent of AMI and, as
such, OCHA will continue to be in compliance with the five-year expenditure
requirement. OCHA will continue to ensure it meets all expenditure requirements
going forward through the current five-year compliance period of July 1, 2019,
through June 30, 2024.
No deficiencies were noted in the
Annual Report with regard to the Housing Successor's internal controls over
financial reporting in FY 2022-23. In compliance with HSC 34176.1, this Annual
Report is being submitted to its legislative body for review prior to December
31, 2023, and shall be placed on the Housing Successor website
(www.ochcd.org/housing-development/orange-county-housing-authority-housing-successor).
Compliance
with CEQA:
This action is not a project within the meaning of California Environmental
Quality Act (CEQA) Guidelines Section 15378 and is therefore not subject to
CEQA, since it does not have the potential for resulting in either a direct
physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment. The approval of this agenda item does not
commit the County to a definite course of action in regard to a project since
it is to receive and file the FY 2022-23 Annual Report. This proposed activity
is therefore not subject to CEQA. Any future action connected to this approval
that constitutes a project will be reviewed for compliance with CEQA.
FINANCIAL
IMPACT:
N/A
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - FY 2022-23 Housing Successor Agency Annual Report
Attachment B - California Health and Safety Code Section 34176.1
Attachment C - SB 341