Alameda City Council
September 1, 2026

Supplemental Memo 1 for Item 7-A, September 1, 2026 City Council Meeting 1

To: Honorable Mayor and Members of the City Council

From: Gerry Beaudin, City Manager

Date: September 1, 2026

Supplemental Memo 2 regarding Item 7-A: Commitment Letter for MidPen Housing

SUPPLEMENTAL INFORMATION

This memo is being provided to supplement the staff report already published for the September 1, 2026 City Council meeting , as well as the first supplemental memo providing questions and answers about the Stardust Gardens project.

The Alameda Housing Authority has stated that its primary reason for being unable to issue vouchers is an anticipated budget shortfall. To explore this claim, City staff commissioned an independent analysis of the budget situation as it relates to industry practice was necessary.

The City hired VPCC, Inc., a consultant team of David Vargas and Milan Odzinec, to conduct analysis of the Alameda Housing Authority’s budget documentation that is available online.

Both Mr. Vargas and Mr. Odzinec are former senior executive staff at HUD with extensive federal voucher experience. Mr. Vargas is a Certified Public Accountant. More about their firm and their experience can be found on their website: https://www.govpcc.com/.

Additionally, City staff tonight will discuss an item that went before the San Francisco Housing Authority Board of Commissioners last Thursday , August 27, and the agenda and packet can be accessed through the following link: https://bit.ly/4gyb9Ww . Item 9.C authorized the Executive Director to sign a commitment letter for 60 vouchers for a Treasure Island supportive housing development. It is quite similar to RESHAP, in that it provides replacement housing for residents in Navy -era homes , and will terminate 60 existing vouchers for reissuance in the new development. The staff report states that “This action does not present a significant financial exposure for the Authority ” due to the planned cancellation and reissuance of the 60 existing vouchers.

The San Francisco Housing Authority further uses the project’s AHSC grant application as the competitive process for issuance of the vouchers although the application reflected uncommitted vouchers as Stardust Gardens did. AHA states this is not permissible under HUD guidelines, but the City has received correspondence from HCD seeming to allow applicants to show uncommitted vouchers.

Respectfully submitted,
Abigail Thorne-Lyman, Director of Base Reuse and Economic Development

Supplemental Memo 1 for Item 7-A, September 1, 2026 City Council Meeting 2

Exhibit:

1. Memorandum from VPCC, Inc. Analyzing AHA Shortfall Claim

2. Attachments referred to in Memorandum as follows:
a. AHA Presentation to Board of Commissioners, May 21, 2025 (Item 6.A) b. AHA Fiscal Year 2024-2025 Audit
c. AHA Board of Commissioners, May 20, 2026, Item 12.C accepting a report on shortfall prevention measures
d. AHA Budget Presentation to Board of Commissioners, June 17, 2026 (Item 7.A)
e. AHA Board of Commissioners Presentation on Stardust Garden Vouchers, August 19, 2026
f. AHA Board of Commissioners Presentation on PBV Policy, May 21, 2025 (Item 6.C)
g. PIH Notice 2013-28

Exhibit 1

www.alamedahsg.org
Budget Presentation
For Fiscal Year 2025-2026
July 1, 2025 to June 30, 2026
May 21, 2025
Louie So, Chief Financial Officer
Exhibit 2a
Budget Introduction
• Requested budget authority is for the period of July 1, 2025 through June 30, 2026 (Fiscal Year 2025-2026)
• Budget authority by the Board of Commissioners allows Alameda Housing Authority to operate and provide quality, affordable and safe housing in the City of Alameda
• Important tool to control the sources (money in) and uses (money out) • Variance between actual and budget are reported in the quarterly finance memorandum
• Independent Public Accounting Firm (Novogradac & Company LLP) also reviews as part of their financial audit process
• Staff is presenting a balanced budget for Fiscal Year 2025-2026 2 Fiscal Year 2025-2026 Budget Summary
• AHA’s operations are highly dependent on federal sources of funding, and any substantial changes may require a mid-year budget revision. The federal budget is slated to be approved no later than September 30, 2025.

Staff is monitoring the various proposals by executive and congressional leaders affecting funding sources impacting AHA.
• Positive Cash Flow: $2,391,713
• Capital Improvements Plan: $7,843,060
• Cash and investments at May 2025: in excess of $22 Million • Cash Balance includes loan balances that must be repaid or refinanced • Planned use pursuant to the Board approved Reserves Policy • Maintain sufficient cash reserves for operations
• Not including HUD Held Reserves restricted per Cash Management Rules 3 Budget Structure
Fiscal Year 2025-2026 Budget
• Conservative approach
• Cash Flow inflow opportunities not budgeted for include:
• Property tax refunds pursuant to AB 1528
• Potential grant income (e.g. Housing Trust Fund matching funds) • Cash Flow from residual receipts in which AHA/AAHC act as soft lenders • A detailed budget approach with review and input from each Director and Executive Director. To establish budget, we combined historical budget data, trailing monthly actual information and expected changes in the next fiscal year
4 Budget Structure
Housing Authority of the City of Alameda (“AHA”)
• All internal departments (Executive, Data & Policy, Human Resources, Housing Programs, Housing Development, Property Management, Asset Management, Administration + Services, Finance) • Properties owned by AHA (Scattered Sites, Parrot Gardens, Independence Plaza) • Successor Agency to the Community Improvement Commission, Ombudsman program Alameda Affordable Housing Corporation (“AAHC”)
• All members of the AHA Board of Commissioners also serve on the AAHC Board of Directors • Presented here in operating budget on a consolidated basis but will be approved in separate Board item in the AAHC Board of Directors meeting
• “Blended Component Unit” – AHA and AAHC are so intertwined, HUD deems that the 2 legal entities are to be presented as 1 • All properties owned by AAHC (Eagle Village, Parrot Village, Esperanza, Anne B. Diament, China Clipper, Scattered Site) • Alameda Affordable Housing Trust Fund
Does not include Island City Development (“ICD”)
• Rosefield Village, Everett Commons, Littlejohn Commons, Estuary I, Linnet Corner, North Housing Predevelopment, The Poplar • Separate calendar year budget 2026 will be brought to the Island City Development Board of Directors later in 2025 5 Budget Structure
6 As AHA and AAHC have
common control, the
budget is presented on
a consolidated basis.

Budget Structure
• Operating Income and Expenses (Attachment A)
• Housing Assistance Payments (HAP pass-through income and expenses) (Attachment B)
• Capital Improvement Plan (CIP) (Attachment C)
7 Fiscal Year 2025-2026 Budget Highlights
(Attachment A – Board of Commissioners Memo)
8 Operating Income
• Fiscal Year 2025-2026 Budgeted Total Operating Income is $256,613 (1%) higher than Fiscal Year Budgeted 2024-2025 Operating Income Income sources:
• Rental income from tenants in AHA & AAHC-owned properties (flat revenue budgeted) • Rental subsidy (HAP) received for voucher recipients in AHA & AAHC-owned properties • Tax Increment Funding for Independence Plaza (funding will sunset in 2026) – In November 2024, converted to Restore-Rebuild (Faircloth to RAD with 120 vouchers • Federal Grant Income for the Family Self Sufficiency (FSS) program of approximately $135,000 • Administrative Fee Income from HUD:
• Only to cover the cost of administration for Housing Department programs • Included at a proration of 93.3%
• Other income – interest income, developer fee, asset management fees, non-federal grant income (Alameda Unified School District Recognized Obligation Payment Schedule funds (AUSD ROPS))
9 AHA and AAHC Properties
• Excess cash may be used for capital projects and to subsidize Housing Programs Department which has historically ran as a deficit. Most properties are cash flowing, with the exception of the smaller properties
• Property Operations - All properties are managed by FPI Management, with LifeSteps as the Resident Services provider
• Individual Property Budgets will be presented to the Board of Commissioners in June 2025
• Detail review by FPI Management, Property Operations and Asset Management
• These budgets will be standalone budgets with no AHA allocated costs 10 Operating Expenses
• Fiscal Year 2025-2026 total budgeted operating expenses is relatively flat at $152,134 (-1%) lower than the prior fiscal year budgeted amounts
• This includes:
• Salary and Benefits – Substantial decrease of $3.2 Million from the prior fiscal year • March 2025 – Staff presented a decrease of Full Time Equivalents from 60 to 53 for the Schedule of Authorized Position effective July 1, 2025
• These costs is still the biggest driver of AHA operating expense (50.9%) • Budgeted a Cost of Living Adjustments (“COLA”) (budget at 4%) • Staff will come back to BOC in August 2025 with COLA data based on the Consumer Price Index • Vacant positions included in budget
• Technology budget includes hardware and software updates, continue support remote working, defensive cybersecurity management, hardware deployment and server solutions, and online client services. • Again, Third Party Management manages AHA/AAHC’s properties, with a 3% escalator to most property operating expenses.
• Administering Alameda Affordable Housing Trust Fund, Successor Agency to the Community Improvement Commission Assets, Ombudsman Program
• Satellite Office at South Shore Center
11 Fiscal Year 2025-2026 Budget Highlights
12 HAP Budget Highlights
(Attachment B of the Board of Commissioners Memorandum) 13 Housing Assistance Payments
(HAP Pass-Through)
• A substantial push in lease up is expected, including filling of vacant AHA/AAHC vacant project-based vouchers and lease up in Estuary I and Linnet Corner
• It is expected that AHA will be in HAP shortfall again in the next Fiscal Year 2025-2026
• The federal budget will need to be finalized by September 30, 2025.

Staff will monitor funding levels and any major funding shortfalls to the Fiscal Year 2025-2026 will need a AHA budget revision 14 Housing Assistance Payments
15 Housing Assistance Payments
16 Alameda LandlordsHAP
Income
HAP
Expense
HUD remits HAP to AHA, then AHA remits HAP to
Alameda landlords.

AHA and AAHC are also Alameda landlords and
budgeted to receive approximately $11+ Million in HAP
annually
Capital Improvement Plan (CIP)
(Attachment C of the Board of Commissioners Memorandum) 17 Capital Improvement Projects
• Primary Sources to pay for these include:
• Cash flow from the specific property,
• Including approved tax increment funding for Independence Plaza (sunset in 2026) – Restore-Rebuild (Faircloth to RAD) Vouchers will stabilize property ahead of the sunset • Replacement reserves held by lenders/bond holders which are generally to specific properties (subject to their approval)
• AHA held reserves pursuant to the Board approved Reserves Policy • Priorities on these projects will focus on life safety and projects related to long term deferred maintenance
• Priorities are presented as High, Medium and Low
• Work is ambitious and priorities may change
18 Capital Improvement Projects
19 Housing Programs Department Operating Deficit
20 • Fiscal Year 2025-2026 Net Loss expected - $1,200,000 • Cost issues – 10th year of losses
• HUD has not provided sufficient administrative fee income to support the Housing Program • Actual projected loss for FY 2024-25 is lower than expected due to staff vacancies and cost efficiencies (of approximately $800k).
• Streamlining initiatives with HUD and MTW flexibility • Staffing may need to be reallocated/reduced in future years to balance the Housing Programs Department budget
• Proposed Board Action
• Approve fund transfer of up to $1,200,000 in next fiscal year, as needed, from property operating income to the Housing Programs Department and or from Moving-to-Work fungible funds 21 Housing Programs Operating Deficit
Fiscal Year 2026-2027
July 1, 2026 through June 30, 2027
22 • Staff are also monitoring events that are slated to occur shortly after the end of Fiscal Year 2025-2026, including:
• Refinancing of the mortgage balloon payment of Eagle Village and Parrot Village due August 1, 2026 (refinance not permitted earlier than May 2026). • Developer fee income associated with low-income housing tax credit project partnerships (e.g. Rosefield Village, Estuary I and Linnet corner) • Carrying costs needed for The Poplar and Estuary II prior to tax credit allocation awards • Ongoing operating environment changes from federal public policy 23 Fiscal Year 2026-2027
Staff Recommendation
24 Staff Recommendation
• Adoption of the Housing Authority of the City Alameda’s Budget for Fiscal Year 2025-2026 and execution of HUD Form 52574 (PHA Board Resolution Approving Operating Budget)
25 www.alamedahsg.org
Thank you to the Board of Commissioners
and AHA staff!

HOUSING AUTHORITY OF THE CITY OF ALAMEDAFINANCIAL STATEMENTS ANDSUPPLEMENTARY INFORMATIONJUNE 30, 2025WITHREPORT OF INDEPENDENT AUDITORS Exhibit 2b
HOUSING AUTHORITY OF THE CITY OF ALAMEDATABLE OF CONTENTSJUNE 30, 2025ContentsPageReport of Independent Auditors 1-3Management's Discussion and Analysis 4-9 Financial Statements:Statement of Net Position 10-11Statement of Revenues, Expenses and Changes in Net Position 12Statement of Cash Flows 13-14Notes to Financial Statements 15-56Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards57-58Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 59-61Supplementary Information:Schedule of Expenditures of Federal Awards 62Notes to Schedule of Expenditures of Federal Awards 63Schedule of Findings and Questioned Costs 64-65Required Pension Information 66-67Required Other Post Employment Benefit Information 68-70Schedule of Residual Cash Flows 71Financial Data Schedule 72-81 REPORT OF INDEPENDENT AUDITORSTo the Board of CommissionersHousing Authority of the City of Alameda:OpinionsWe have audited the accompanying financial statements of the business-type activities (primary government) and thediscretely presented component unit of Housing Authority of the City of Alameda (the "Authority") as of and for the yearended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Authority's basicfinancial statements, as listed in the accompanying table of contents.In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to abovepresent fairly, in all material respects, the financial position of the primary government and the discretely presentedcomponent unit of the Authority, as of June 30, 2025, and the changes in their financial position and where applicable,their cash flows, for the year then ended in accordance with accounting principles generally accepted in the United Statesof America.We did not audit the financial statements of the discretely presented component unit (Island City Development andSubsidiaries). Those statements, which were prepared in accordance with the accounting standards issued by theFinancial Accounting Standards Board, were audited by other auditors whose report has been furnished to us. We haveapplied audit procedures on the conversion adjustments to the financial statements of the discretely presented componentunit, to conform those financial statements to present in accordance with the accounting standards issued by theGovernmental Accounting Standards Board. Our opinions, as they relate to the amounts included for the discretelypresented component unit, prior to these conversion adjustments, are based solely on the reports of the other auditors. Basis for OpinionsWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generalof the United States. The financial statements of the discretely presented component unit were not audited in accordancewith Government Auditing Standards. Our responsibilities under those standards are further described in the Auditors'Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of theAuthority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating toour audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.Responsibilities of Management for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance withaccounting principles generally accepted in the United States of America, and for the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error.In preparing the financial statements, management is required to evaluate whether there are conditions or events,considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern fortwelve months beyond the financial statement date, including any currently known information that may raise substantialdoubt shortly thereafter.1 Auditors' Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions.Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that anaudit conducted in accordance with auditing standards generally accepted in the United States of America andGovernment Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are consideredmaterial if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment madeby a reasonable user based on the financial statements.In performing an audit in accordance with auditing standards generally accepted in the United States of America andGovernment Auditing Standards, we:Exercise professional judgment and maintain professional skepticism throughout the audit.Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, anddesign and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,evidence regarding the amounts and disclosures in the financial statements.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theAuthority's internal control. Accordingly, no such opinion is expressed.Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade by management, as well as evaluate the overall presentation of the financial statements.Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantialdoubt about the Authority's ability to continue as a going concern for a reasonable period of time.We are required to communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit, significant audit findings, and certain internal control related matters that we identified duringthe audit.Required Supplementary InformationAccounting principles generally accepted in the United States of America require that the management’s discussion andanalysis and required pension and other post employment benefit information be presented to supplement the basicfinancial statements. Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing thebasic financial statements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generally accepted in theUnited States of America, which consisted of inquiries of management about the methods of preparing the informationand comparing the information for consistency with management’s responses to our inquiries, the basic financialstatements, and other knowledge we obtained during our audit of the basic financial statements. We do not express anopinion or provide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance. 2 Accounting principles generally accepted in the United States of America require that the management’s discussion andanalysis and required pension and other post employment benefit information be presented to supplement the basicfinancial statements. Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing thebasic financial statements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generally accepted in theUnited States of America, which consisted of inquiries of management about the methods of preparing the informationUnited States of America, which consisted of inquiries ofand comparing the information for consistency with management’s responses to our inquiries, the basic financialstatements, and other knowledge we obtained during our audit of the basic financial statements. We do not express anopinion or provide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance. Required Supplementary Information Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise theAuthority's basic financial statements. The schedule of expenditures of federal awards is presented for the purpose ofadditional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and is not a required part of the basicfinancial statements. The accompanying financial data schedule is also not a required part of the basic financialstatements and is presented for the purposes of additional analysis as required by the U.S. Department of Housing andUrban Development.The schedule of expenditures of federal awards and financial data schedule are the responsibility of management andwere derived from and relate directly to the underlying accounting and other records used to prepare the financialstatements. Such information has been subjected to the auditing procedures applied in the audit of the basic financialstatements and certain additional procedures, including comparing and reconciling such information directly to theunderlying accounting and other records used to prepare the basic financial statements or to the basic financialstatements themselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the schedule of expenditures of federal awards and financial data schedule arefairly stated, in all material respects, in relation to the basic financial statements as a whole.The schedule of residual cash flows have not been subjected to the auditing procedures applied in the audit of the financialstatements and accordingly, we do not express an opinion or provide any assurance on them.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated March 24, 2026 on ourconsideration of the Authority's internal control over financial reporting and on our tests of its compliance with certainprovisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the Authority's internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards inconsidering the Authority's internal control over financial reporting and compliance.March 24, 2026Toms River, New Jersey3

MANAGEMENT'S DISCUSSION AND ANALYSIS
HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 4 This section of the Housing Authority of the City of Alameda’s (the "Authority") annual financial report presents a discussion and analysis of the financial activities of the Authority and its affiliated consolidated entities for the fiscal year ended June 30, 2025. The following management's discussion and analysis will present the results of the Authority’s operations, which includes Alameda Affordable Housing Corporation (“Primary Government”). Please note that the financial activities of the Authority’s calendar year affiliate, Island City Development, are not included in this discussion. Key financial information for the current fiscal year ending June 30, 2025 will be compared with those of the prior year ended June 30, 2024. Financial Highlights The assets and deferred outflows of the Authority exceeded its liabilities and deferred inflows at the close of fiscal year resulting in a net position of $136,098,468 at June 30, 2025, as opposed to $130,048,322 at June 30, 2024. Total assets and deferred outflows of resources at June 30, 2025 were $189,586,314. Total assets and deferred outflows of resources at June 30, 2024, were $185,076,862. Capital assets, net of accumulated depreciation was $83,867,396 at June 30, 2025, from $82,056,035 at June 30, 2024. Capital assets are reflected at cost, less accumulated depreciation for all purchased capital assets. Total liabilities and deferred inflows of resources at June 30, 2025, were $53,487,846. Total liabilities and deferred inflows of resources at June 30, 2024 were $55,028,540. Total operating and non-operating revenues for the Authority for fiscal year 2025 and 2024 were $63,162,381 versus $56,687,500, respectively. The primary sources of revenue were governmental grants including Section 8 Housing Choice Vouchers Program Housing Assistance Payment ("HAP") grants, County of Alameda grants via the Shelter Plus Care federal passthrough program, City of Alameda grants, Alameda Unified School District pass-through grants, tenant rents collected from the Authority-owned properties and interest income. Total operating and non-operating expenses for the Authority for fiscal year 2025 and 2024 were $57,108,908 versus $52,581,210, respectively. This is driven by higher housing assistance payments to Alameda landlords (increase of $3,910,149 fiscal year over year) and higher administrative expenses (increase of $979,320 year over year). The higher administrative expenses are driven mostly from budgeted salary and benefits costs from the permanent employees and temporary contractors. The major program expenditure, as reflected on the statement of revenues, expenses, and changes in net position, was for HAP. There were $34,915,015 of HAP expenses for fiscal year 2025 versus $31,004,866 in fiscal year 2024. For fiscal year 2025 and 2024, please note that $11,365,527 and $9,678,290, are not presented in the financial statement presentation for both Grant Revenues and HAP, as these payments are paid from HUD to the Authority as landlord for Authority-owned properties. These amounts are removed and eliminated from financial statement presentation only. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial statements, which are comprised of a statement of net position, statement of revenues, expenses, and changes in net position, statement of cash flows and notes to the financial statements.

HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 5 Government-Wide Financial Statements The government-wide financial statements report information of the Authority as a whole, net of inter- program activity. The statement of net position presents information on the Authority’s assets and deferred outflows, and liabilities and deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The statement of revenues, expenses, and changes in net position presents information showing how the Authority’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The statement of cash flows presents the change in the Authority’s cash and cash equivalents during the most recent fiscal year. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Authority uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Some programs are required to be established by U.S Department of Housing and Urban Development ("HUD"). However, the Authority also administers other programs to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using grants and other moneys. All of the funds of the Authority are classified on the face of the financial statements as one enterprise housing fund as a result of Governmental Accounting Standards Board ("GASB") Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. Enterprise funds account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. They are reported using the full accrual method of accounting in which all assets and all liabilities associated with the operation of these funds are included on the statement of net position. The focus of enterprise funds is on income measurement, which together with the maintenance of equity, is an important financial indication. Notes to the Basic Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the fund financial statements. Component Units In fiscal year ended June 30, 2018, the Authority created a new blended component unit, Alameda Affordable Housing Corporation ("AAHC"). The financial statements for AAHC are not presented separately except under Note 18 of the financial statements. As a non-profit corporation, AAHC is required to file informational tax returns. As is more fully described in Note 1, the government-wide financial statements include the financial information of Island City Development (a California non-profit corporation), a discretely presented component unit of the Authority. A complete audited financial statement is separately issued for Island City Development and its subsidiary limited partnerships and limited liability companies, as the financial year is on a calendar year basis. As a non-profit corporation, Island City Development is required to file an informational tax return. These aforementioned reports may be obtained at the Authority's website at www.alamedahsg.org and at www.islandcitydevelopment.org or at the Authority’s administrative office located at 701 Atlantic Avenue, Alameda, California. These aforementioned reports may be obtained at the Authority's website at www.alamedahsg.org and at www.islandcitydevelopment.org or at the Authority’s administrative office located at 701 Atlantic Avenue, Alameda, California. As is more fully described in Note 1, the government-wide financial statements include the financial information of Island City Development (a California non-profit corporation), a discretely presented component unit of the Authority. A complete audited financial statement is separately issued for Island City Development and its subsidiary limited partnerships and limited liability companies, as the financial year is on a calendar year basis. As a non-profit corporation, Island City Development is required to file an informational tax return. Component Units In fiscal year ended June 30, 2018, the Authority created a new blended component unit, Alameda Affordable Housing Corporation ("AAHC"). The financial statements for AAHC are not presented separately except under Note 18 of the financial statements. As a non-profit corporation, AAHC is required to file informational tax returns.

HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 6 Supplementary Information The schedule of expenditures of federal awards, the pension and Other Post Employment Benefits (“OPEB”) schedules, and the financial data schedule are presented for purposes of additional analysis as required by the GASB Statements, the Uniform Guidance at 2 CFR 200 Subpart F, and the requirements of HUD. These schedules can be found in the supplementary information sections of this report. Financial Analysis The Authority uses funds to help it control and manage money for particular purposes. A portion of the Authority’s net position reflects the investment in capital assets (e.g., land, buildings and improvements, furniture, equipment and machinery), net of any debt incurred to finance the acquisition of those assets. The Authority uses these capital assets to provide services to clients; consequently, these assets are not available for future spending. Budgetary Highlights An agency-wide budget was prepared for the fiscal year ending June 30, 2025. The budget was primarily used as a management tool. Budgets are prepared in accordance with the accounting procedures prescribed by the applicable funding agency and revised during the year as appropriate. Comparative Statements of Net Position (Primary Government Only) The following table reflects the statement of net position at June 30, 2025, compared to the prior fiscal year ended June 30, 2024. Financial Accounts June 30, 2025 June 30, 2024$ Variance % VarianceCurrent Assets 28,356,984 29,1 81,002 (824,018) -3%Other noncurrent assets 7 5,1 61 ,863 7 0,627 ,232 4,534,631 6%Capital assets, net of accumulated depreciation 83,867 ,396 82,056,035 1 ,81 1,361 2%Total Assets 187 ,386,243 181,864,269 5,521 ,974 3%Deferred outflow of resources 2,200,07 1 3,212,593 (1,01 2,522) -32%T otal Assets & Deferred Outflows of Resources 189,586,314 185,07 6,862 4,509,452 2%Current liabilities 5,158,382 5,193,329 (34,947) -1%Noncurrent liabilities 29,535,051 30,940,228 (1,405,17 7) -5%Total liabilities 34,693,433 36,1 33,557 (1,440,124) -4%Deferred inflow of resources 18,7 94,413 18,894,983 (100,570) -1%Net investment in capital assets 57 ,501 ,239 53,7 17 ,400 3,7 83,839 7%Restricted 3,481,295 1,97 3,57 4 1 ,507 ,7 21 76%Unrestricted 7 5,115,934 7 4,357 ,348 7 58,586 1%T otal Net Position 136,098,468 130,048,322 6,050,146 5% 7 4,357 ,348Unrestricted 7 5,115,934 7 4,357 ,348Unrestricted 7 5,115,934Unrestricted 7 5,115,934 1%7 58,586 1%7 58,586 HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 7 Comparative Statements of Revenues, Expenses, and Changes in Net Position (Primary Government Only) The following table presents the statement of revenues, expenses, and changes in net position for the fiscal year ended June 30, 2025, compared to the prior fiscal year ended June 30, 2024.

Changes to Total Revenues and Total Expenses were discussed in the Financial Highlights section. Please note that the Change in net position is similar to the concept of operating income (with accounting adjustments) of $6,053,473 and generally, cash flow is higher than budgeted for that fiscal year due to cost savings due to staff vacancies and other operating savings. As noted previously HAP received from HUD as income by the Authority and paid to Authority-owned properties are eliminated from financial statement presentation, with a net zero effect on Net Position. Analysis of the Authority’s Overall Financial Position and Results of Operations As indicated in the above comparative statements, the Authority’s net position as of June 30, 2025 was $136,098,468, increased from $130,048,322 as of June 30, 2024. Changes in Capital Assets (Primary Government Only) The following presents the changes in fixed assets (net of accumulated depreciation) at June 30, 2025, versus the prior fiscal year ended June 30, 2024. Additional information pertaining to capital assets is found in Note 4 to the financial statements.

Financial Accounts June 30, 2025 June 30, 2024$ Variance % VarianceOperating Rev enuesGrants and Other Rev enues 57 ,990,494 50,918,8667,07 1,628 14%Tenant Rents 4,306,965 4,7 17 ,7 27 (410,7 62) -9%Non-Operating RevenuesInterest Income 864,922 1,050,907 (185,985) -1 8%T otal Rev enues 63,162,381 56,687 ,500 6,47 4,881 11%Operating ExpensesAdministrativ e 12,7 02,460 11 ,7 23,140 97 9,320 8%Utilities 7 98,965 900,812 (101 ,847) -11%Maintenance 3,638,7 68 3,67 3,266 (34,498) -1 %Protectiv e Services, Insurance and General 1,305,562 1,435,669 (1 30,107 ) -9%Tenant Serv ices 959,67 7 1,01 9,853 (60,17 6) -6%Housing Assistance Pay ments 34,915,01 5 31,004,866 3,91 0,149 13%Depreciation (Non-Cash) 1,822,7 37 1,7 62,308 60,429 3%Non-operating expenses:Interest Expense 965,7 24 1,061,296 (95,57 2) -9%T otal Expenses 57 ,108,908 52,581,210 4,527,698 9%Change in net position 6,053,47 3 4,106,290 1,947 ,183 47%Other Gain/(Loss) (3,327 ) (654,964) 651,637 -99%Net position, beginning 130,048,322 126,596,996 3,451,326 3%Net position, ending 136,098,468 130,048,322 6,050,146 5%Financial Accounts June 30, 2025 June 30, 2024$ Variance % VarianceLand 60,7 26,239 60,7 26,239 - 0%Construction in progress 4,199,632 2,501,992 1 ,697,640 68%Buildings and improvements 56,37 3,010 54,436,551 1 ,936,459 4%Equipment 431 ,7 39 431,7 40 (1 ) 0%T otal Capital Assets 121,7 30,620 118,096,522 3,634,098 3%less: Accumulated Depreciation (37 ,863,224) (36,040,487 ) (1,822,7 37 ) 5%Capital Assets, net of Accum ulated Depreciation 83,867 ,396 82,056,035 1,811,361 2% HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 8 Changes in Long-Term Debt (Primary Government Only) The following presents the changes in long-term debt at June 30, 2025, versus the prior fiscal year of June 30, 2024. Additional information pertaining to long-term debt is found in Note 10 to the financial statements. Unfunded Pension Liability and Other Post Employment Benefits Liability Stabilization In 2016, the Authority made a payment of $1,000,000 to CalPERS for retirement costs associated with the Authority’s pension liability. In May 2020, the Board of Commissioners approved an additional discretionary payment of $1,000,000 to prefund pension liabilities by June 30, 2020 and directed the Authority’s staff to fund the balance of the unfunded pension liability through the soft-fresh start payment mechanism. This mechanism will allow the Authority to pace the contribution based on its ability to fund the liability. If the unfunded pension liability is within 90%-110% of funding level as expected of the soft-fresh start payment mechanism, no action will be taken. If the unfunded pension liability is below 90% or above the 110% of funding level pursuant to the soft-fresh start payment mechanism, the Authority will escalate to the Board of Commissioners on whether there is any necessary course of action. Staff have reviewed the updated actuarial projections provided by Nicolay Consulting Group. No action is deemed necessary as the unfunded pension liability funding level is within 90%-110%. At the issuance of this report, the funding level is projected to be 97% of the soft-fresh start mechanism, assuming the published 11.6% CalPERS net investment return for the 12-mnoth period ending June 30, 2025. Note that the current long-term discount rate published by CalPERS is at 6.8%, and future investment performance will have an impact on this rate. It is still anticipated that the unfunded accrued liability will be fully paid down in the early 2040s. Furthermore, during the fiscal year ended June 30, 2018, the Authority entered into an agreement and funded a CalPERS sponsored California Employers’ Retiree Benefit Trust (“CERBT”) Fund to pre-fund the Authority’s Other Post Employment Benefit (“OPEB”) liabilities. The Authority is expected to withdraw earnings from this CERBT on an annual basis. Both the CalPERS and OPEB trust fund audited financial statements may be obtained from the CalPERS administrative offices located at 400 Q Street, Sacramento, California or at http://www.calpers.ca.gov. Although subject to change based on earnings of the investments and continued required contributions to fund the liability, it is projected that the unfunded accrued liabilities owed to CalPERS will be fully paid by the 2040’s. The Housing Authority of the City of Alameda staff will continue to monitor this periodically and report to the Board of Commissioners. Further information on the pension, including pension and liabilities can be found in Note 14 to the financial statements. Economic Factors The Authority is primarily dependent upon the federal government, specifically HUD for the funding of operations. Therefore, the Authority is affected more by the federal budget than by state or local economic conditions. Changes in HUD grants affect the number of households that can be assisted under these federally funded programs on an ongoing basis. In addition, HUD alerted the Authority in March 2025 that there will be a reduction of funding to the Emergency Housing Voucher program. HUD will not provide any additional calendar year HAP renewal funding for this program beyond calendar year 2025, with any remaining amounts available to cover Emergency Housing Vouchers in 2026 only. The Authority’s annual revenues for the Housing Choice Vouchers Program is based primarily upon the amounts received each year from HUD, which does not correlate directly to the amounts expended each year for administrative costs and housing assistance payments expenses associated with the Housing Choice Vouchers Program. Therefore, for any given fiscal year the Authority’s revenues for the Housing Choice Vouchers Program may be more or less than the expenses for the program. The Authority also provides project-based vouchers to Authority owned and legal affiliates’ owned projects, as Financial Account June 30, 2025 June 30, 2024$ Variance % VarianceLong-Term Debt 26,347 ,328 28,453,7 7 4 (2,106,446) -7 % HOUSING AUTHORITY OF THE CITY OF ALAMEDA MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED JUNE 30, 2025 9 these vouchers are attached specifically to the apartment and not to the tenant. These vouchers make the apartment’s revenue more stable and predictable. The year of expiration of the project-based voucher contract is as follows: 1. Park Alameda (The Alameda Islander, LP) – 20272. Breakers at Bayport (The Breakers at Bayport, LP) – 20283. Jack Capon Villa (Jack Capon Villa, LP) – 20294. Stargell Commons (Stargell Commons, LP) – 20325. Littlejohn Commons (Sherman and Buena Vista, LP) – 20336. Anne B. Diament Plaza (AAHC) – 20387. China Clipper Plaza (AAHC) – 20388. Lincoln Willow (AAHC) – 20389. Stanford House (AAHC) – 203810. Everett Commons (Everett and Eagle, LP) – 203811.Parrot Village (AAHC) – 203912. Shinsei Gardens Apartments (Shinsei Gardens Apartment, LP) – 203913.Independence Plaza (Housing Authority of the City of Alameda) – 2040 and 204414. Rosefield Village (Constitution and Eagle, LP) – 204215. Estuary I (Lakehurst and Mosley, LP) – 204516. Linnet Corner (Mabuhay and Lakehurst, LP) – 204517. Esperanza (AAHC) - 2045Requests for Information This financial report is designed to provide citizens, taxpayers, and creditors with a general overview of the Authority’s finances and to show the Authority’s accountability for the money it receives. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Chief Financial Officer at the Housing Authority of the City of Alameda, 701 Atlantic Avenue, Alameda, California 94501.

FINANCIAL STATEMENTS
HOUSING AUTHORITY OF THE CITY OF ALAMEDASTATEMENT OF NET POSITIONAS OF JUNE 30, 2025ASSETSPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Current assets: Cash and cash equivalents $ 23,101,019 $ 3,660,769 $ 26,761,788 Tenant security deposits 481,185 123,160 604,345 Accounts receivable, net 4,537,092 91,940 4,629,032 Leases receivable, current portion 23,971 - 23,971 Prepaid expenses 72,303 711,410 783,713 Accrued interest receivable 141,414-141,414Total current assets 28,356,9844,587,27932,944,263Non-current assets: Restricted cash 2,873,888 1,203,356 4,077,244 Notes receivable 71,057,487- 71,057,487 Capital assets, net 83,867,396 122,553,976 206,421,372 Leases receivable, net of current portion 243,795 19,286,55719,530,352 Right of use asset - leases, net 123,792 - 123,792 OPEB asset 607,407- 607,407 Other assets, net of current portion 255,494466,314721,808Total non-current assets 159,029,259143,510,203302,539,462Total assets 187,386,243148,097,482335,483,725DEFERRED OUTFLOWS OF RESOURCESPension plan 1,992,282 - 1,992,282OPEB Plan 207,789-207,789Total deferred outflows of resources 2,200,071-2,200,071Total assets and deferred outflows of resources $ 189,586,314$ 148,097,482$ 337,683,796See accompanying notes to financial statements.10 Cash and cash equivalents $ 23,101,019 $ 3,660,769 $ 26,761,788 HOUSING AUTHORITY OF THE CITY OF ALAMEDASTATEMENT OF NET POSITION (continued)AS OF JUNE 30, 2025LIABILITIESPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Current liabilities:Accounts payable $ 1,709,426 $ 8,702,372 $ 10,411,798Accounts payable - HUD 16,142 - 16,142Accounts payable - other government - 1,804,465 1,804,465Accrued expenses 251,973 - 251,973Accrued compensated absences, current 414,596 - 414,596Tenant security deposits 464,274 122,454 586,728Accrued interest payable 1,240,7774,235,599 5,476,376Current portion of bonds and notes payable 568,808 382,259 951,067Unearned revenue 158,699 2,161 160,860Lease liability, current 76,174 - 76,174Other current liabilities 257,51330,024287,537Total current liabilities 5,158,38215,279,33420,437,716Non-current liabilities:Accrued compensated absences, net of current portion 152,988 - 152,988Long-term portion of bonds and notes payable 25,778,520 106,604,994 132,383,514Accrued pension 3,537,095 - 3,537,095Lease liability, net of current portion 66,448 - 66,448Other non-current liabilities -1,503,9691,503,969Total non-current liabilities 29,535,051108,108,963137,644,014Total liabilities 34,693,433123,388,297158,081,730DEFERRED INFLOWS OF RESOURCESPension plan 414,028 - 414,028OPEB plan 807,274 - 807,274GASB 87 - lease receivable 162,930 - 162,930GASB 87 - ground leases 17,410,181-17,410,181Total deferred inflows of resources 18,794,413-18,794,413NET POSITIONNet position:Net investment in capital assets 57,501,239 15,566,723 73,067,962Restricted 3,481,295 1,203,356 4,684,651Unrestricted 75,115,9347,939,10683,055,040Total net position 136,098,46824,709,185160,807,653Total liabilities, deferred inflows, and net position $ 189,586,314$ 148,097,482$ 337,683,796See accompanying notes to financial statements.11$ 337,683,796$ 148,097,482$ 148,097,482Total liabilities, deferred inflows, and net position $ 189,586,314Total liabilities, deferred inflows, and net position $ 189,586,314Total liabilities, deferred inflows, and net position $ 189,586,314160,807,65324,709,185Total net position 136,098,468Total net position 136,098,468Net investment in capital assets 57,501,239 15,566,723 73,067,962Restricted 3,481,295 1,203,356 4,684,65183,055,040Net investment in capital assets 57,501,239 15,566,723 73,067,962Restricted 3,481,295 1,203,356 4,684,6517,939,106Net investment in capital assets 57,501,239 15,566,723 73,067,962Restricted 3,481,295 1,203,356 4,684,651Unrestricted 75,115,934Net position:Net investment in capital assets 57,501,239 15,566,723 73,067,962Restricted 3,481,295 1,203,356 4,684,651Unrestricted 75,115,934NET POSITION HOUSING AUTHORITY OF THE CITY OF ALAMEDASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR THE YEAR ENDED JUNE 30, 2025PrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Operating revenues:Tenant revenue $ 4,306,965 $ 3,372,880 $ 7,679,845HUD operating grants 48,327,355 - 48,327,355Other government grants 5,086,902 - 5,086,902Other revenues 4,576,2372,916,8687,493,105Total operating revenues 62,297,4596,289,74868,587,207Operating expenses:Administrative 12,702,460 840,224 13,542,684Tenant services 959,677264,526 1,224,203Utilities 798,965 150,733 949,698Ordinary repairs and maintenance 3,638,768 569,822 4,208,590Protective services 3,081 - 3,081Insurance 791,807314,734 1,106,541General 510,674 677,386 1,188,060Housing assistance payments 34,915,015 - 34,915,015Depreciation 1,822,7372,445,3824,268,119Total operating expenses 56,143,1845,262,80761,405,991Operating income 6,154,2751,026,9417,181,216Non-operating revenues (expenses):Investment income 864,922 - 864,922Interest expense (965,724) (1,597,120) (2,562,844)Loss on sale of fixed assets (3,327)-(3,327)Net non-operating expenses (104,129)(1,597,120)(1,701,249)Income (loss) before special items 6,050,146 (570,179) 5,479,967Special items -2,848,4122,848,412Change in net position 6,050,146 2,278,233 8,328,379Net position, beginning of year 130,048,32222,430,952152,479,274Net position, end of year $ 136,098,468$ 24,709,185$ 160,807,653See accompanying notes to financial statements.12 Change in net position 6,050,146 2,278,233 8,328,379
HOUSING AUTHORITY OF THE CITY OF ALAMEDASTATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30, 2025PrimaryGovernmentCash Flows from Operating Activities:Cash received from tenants and other $ 5,352,042Cash received from grantors 53,391,420Cash paid to suppliers and vendors (40,733,556)Cash paid to employees (12,708,681)Net cash provided by operating activities 5,301,225Cash Flows from Capital and Related Financing Activities:Purchase of capital assets (3,634,098)Principal payments on lease (15,291)Principal payments on bonds and notes payable (2,106,446)Interest paid on long term debt (921,132)Net cash used in capital and related financing activities (6,676,967)Cash Flows from Investing Activities:Issuance of notes receivable (7,588,861)Proceeds from repayment of notes receivable 4,624,678Interest received on investments 862,659Net cash used in investing activities (2,101,524)Net decrease in cash, cash equivalents, and restricted cash (3,477,266)Cash, cash equivalents and restricted cash, beginning of year 29,933,358Cash, cash equivalents and restricted cash, end of year $ 26,456,092Reconciliation of cash, cash equivalents and restricted cash to the Statement of Net Position is as follows:Cash and cash equivalents $ 23,101,019Tenant security deposits 481,185Restricted cash 2,873,888Cash, cash equivalents and restricted cash$ 26,456,092See accompanying notes to financial statements.13 HOUSING AUTHORITY OF THE CITY OF ALAMEDASTATEMENT OF CASH FLOWS (continued)FOR THE YEAR ENDED JUNE 30, 2025PrimaryGovernmentReconciliation of operating income to net cash provided by operating activities:Operating income $ 6,154,275Adjustments to reconcile operating income to net cash provided by operating activities:Depreciation 1,822,737Construction in progress expensed during the year (3,327)Amortization on right of use asset 67,521Bad debts 83,907Changes in assets, deferred outflows of resources, liabilities, anddeferred inflows of resourcesAccounts receivable, net (3,601,795)Prepaid expenses 15,465Lease receivable 27,649Right-of-use assets (255,494)OPEB asset (558,686)Deferred outflows of resources 1,012,522Accounts payable 396,426Accrued compensated absences 211,460Accrued expenses (6,221)Tenant security deposits (18,811)Unearned revenue (18,633)Other current liabilities 88,760Accrued pension liability (15,960)Deferred inflows of resources (100,570)Net cash provided by operating activities $ 5,301,225See accompanying notes to financial statements.14 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTSJUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA. OrganizationThe Housing Authority of the City of Alameda (the "Authority") is a governmental, publiccorporation created on August 8, 1940, by a resolution of the City of Alameda City Council. TheAuthority is governed by a seven-member Board of Commissioners which is appointed by themayor of the City of Alameda, California (the "City"). However, the Authority is not considered tobe a component unit of the City or any other primary government. Two members of the Board ofCommissioners are participants in programs administered by the Authority. The Board ofCommissioners are selected to serve for either two-year or four-year terms. The Authority isresponsible for operating certain safe, decent, sanitary, and affordable low-rent housing programsin the City under programs administered by the U.S. Department of Housing and UrbanDevelopment ("HUD"). These programs provide housing for eligible families under the UnitedStates Housing Act of 1937, as amended. B. Basis of Accounting / Financial Statements PresentationThe Authority's financial statements are prepared in accordance with accounting principlesgenerally accepted in the United States of America ("GAAP"). The Governmental AccountingStandards Board (GASB) is responsible for establishing GAAP for state and local governmentsthrough its pronouncements (Statements and Interpretations). The programs of the Authority are organized as separate accounting entities. Each program isaccounted for by a separate set of self-balancing accounts that comprise its assets, deferredoutflows of resources, liabilities, deferred inflows of resources, net position (program equity),revenues, and expenses. The individual programs account for the governmental resourcesallocated to them for the purpose of carrying on specific programs in accordance with laws,regulations, or other restrictions, including those imposed by HUD. The programs of theAuthority are combined and considered an enterprise fund. An enterprise fund is used to accountfor activities that are operated in a manner similar to those found in the private sector.The Authority's enterprise fund is accounted for using the economic resources measurementfocus and the accrual basis of accounting. Revenues, expenses, gains, and losses from assets andliabilities resulting from exchange and exchange-like transactions are recognized when theexchange takes place. The Authority's financial statements are prepared in accordance with GASB 34, Basic FinancialStatements and Management's Discussion and Analysis for State and Local Governments, asamended ("GASB 34"). GASB 34 requires the basic financial statements to be prepared using theeconomic resources measurement focus and the accrual basis of accounting and requires thepresentation of a Statement of Net Position, a Statement of Revenues, Expenses and Changes inNet Position and Statement of Cash Flows. GASB 34 also requires the Authority to includeManagement's Discussion and Analysis as part of the Required Supplementary Information. The Authority's primary source of non-exchange revenue relates to grants and subsidies. Inaccordance with GASB 33, Accounting and Financial Reporting for Non-exchange Transactions("GASB 33"), grant and subsidy revenue are recognized at the time eligible program expendituresoccur and/or the Authority has complied with the grant and subsidy requirements.On January 30, 2008, HUD issued PIH Notice 2008-9 which requires that unused housingassistance payments ("HAP") under proprietary fund reporting should be reported as restrictednet position, with the associated cash and investments also being reported as restricted. Anyunused administrative fees should be reported as unrestricted net position, with the associatedassets being reported on the financial data schedule as unrestricted. 15On January 30, 2008, HUD issued PIH Notice 2008-9 which requires that unused housingassistance payments ("HAP") under proprietary fund reporting should be reported as restrictednet position, with the associated cash and investments also being reported as restricted. Anyunused administrative fees should be reported as unrestricted net position, with the associatedassets being reported on the financial data schedule as unrestricted.

HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)B. Basis of Accounting / Financial Statements Presentation (continued)Both administrative fee and HAP revenue continue to be recognized under the guidelines setforth in GASB 33. Accordingly, both the time and purpose restrictions as defined by GASB 33 aremet when these funds are available and measurable, not when these funds are expended. TheSection 8 Housing Choice Vouchers program is no longer a cost reimbursement grant; therefore,the Authority recognizes unspent administrative fee and HAP revenue in the reporting period asrevenue for financial statement reporting.In accordance with 2 CFR 200.305(b)(9), any investment income earned up to $500 on thesefunds may be retained by the Authority. Amounts in excess of $500 must be remitted annually tothe Department of Health and Human Services, Payment Management System.C. Measurement Focus and Basis of AccountingProprietary funds distinguish operating revenues and expenses from non-operating items.Operating revenues and expenses generally result from providing services and producing anddelivering goods in connection with proprietary funds’ principal ongoing operations. Theprincipal operating revenues of the Authority’s funds are rent and maintenance charges toresidents, operating grants and subsidies from HUD, and administration fees earned.Operating expenses for proprietary funds include the administrative costs of providing services toresidents and the housing assistance payments to residents. All revenues and expenses notmeeting this definition are reported as non-operating revenues and expenses. D. Reporting EntityIn accordance with GASB 61, The Financial Reporting Entity Omnibus - An Amendment of GASBStatements No. 14 and No. 34, the Authority's financial statements include those of the Authorityand any component units. Component units are legally separate organizations whose majority ofofficials are appointed by the primary government or the organization is fiscally dependent on theprimary government and there is a potential for those organizations either to provide specificfinancial benefits to, or impose specific financial burdens on, the primary government. Anorganization has a financial benefit or burden relationship with the primary government if anyone of the following conditions exist: 1. The primary government (Authority) is legally entitled to or can otherwise access theorganization's resources.2. The primary government is legally obligated or has otherwise assumed the obligation to financethe deficits of, or provide financial support to, the organization.3. The primary government is obligated in some manner for the debt of the organization.Based upon the application of these criteria, this report includes the following discretelypresented component unit:16 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)D. Reporting Entity (continued)Discretely Presented Component UnitIsland City DevelopmentIsland City Development (a California nonprofit corporation) was established in 2014 primarily toengage in acquiring, developing, rehabilitating, owning, and managing affordable housing forlow-income and moderate-income individuals and families in the City. The executive director ofthe Authority appoints the members of the nonprofit corporation's board of directors. Thenonprofit corporation is on a calendar year end basis of December 31, 2024, and the financialactivity is reported in a separate column to emphasize that they are legally separate from theprimary government and are included under the "Discretely Presented Component Unit" columnon the Statement of Net Position and Statement of Revenues, Expenses, and Changes in NetPosition.Audited financial statements are issued separately for the discretely presented component unitnoted above, and may be obtained from the Authority, 701 Atlantic Avenue, Alameda, CA 94501.Island City Development is the 0.1% special limited partner for Stargell Commons LP, createdFebruary 20, 2015, to own and operate a 32-unit Low- Income Housing Tax Credit property at2700 Bette Street in Alameda known as Stargell Commons. This property was completed in May2017.Island City Development is the sole member of Del Monte Senior LLC, the 0.01% managinggeneral partner of Sherman and Buena Vista LP, created June 23, 2016, for the purposes ofdeveloping and owning a 31-unit Low-Income Housing Tax Credit property at 1031 Buena VistaAvenue in Alameda known as Littlejohn Commons. This property was completed in August 2018.Island City Development is the sole member of 2437 Eagle Avenue LLC, the 0.01% managinggeneral partner of Everett and Eagle LP, created November 22, 2016, for the purposes ofdeveloping and owning a 20-unit Low-Income Housing Tax Credit property at 2437 Eagle Avenuein Alameda known as Everett Commons. This property was completed in December 2018. Island City Development is the sole member of Rosefield, LLC, the 0.01% managing generalpartner of Constitution and Eagle, LP, created December 18, 2018, for the purpose of building 78units and renovation of 14 units (total 92 units) on the 700 block of Buena Vista Avenue known asRosefield Village. The property started the construction and rehabilitation process in the summerof 2020 and construction was completed in the summer of 2022. Island City Development is the sole Member of ICD Lakehurst, LLC, the 0.01% managing generalpartner of Lakehurst and Mosley LP, created for the purposes of developing and owning a 47 unitLow-Income Housing Tax Credit property at 500 Mosley Avenue in Alameda known as Estuary I.This property was completed in July 2025.Island City Development is the sole Member of ICD Mabuhay, LLC, the 0.01% managing generalpartner of Mabuhay and Lakehurst LP, for the purposes of developing and owning a 64 unit Low-Income Housing Tax Credit property at 2000 Lakehurst Circle in Alameda known as LinnetCorner. This property was completed in 2025.Island City Development created the following subsidiary legal entities in anticipation ofdevelopment and acquisitions:ICD Webster LLC (dissolved in 2024)ICD Mosley LLCMosley and Mabuhay LP17 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Discretely Presented Component Unit (continued)Island City Development (continued)In 2024, Island City Development created a wholly owned subsidiary company ICD Shinsei,LLC. On March 30, 2024, ICD Shinsei, LLC acquired a 99.99% limited partnership interest for$1 and was admitted as the substitute limited partner in Shinsei Gardens Apartment, L.P., a 39-unit affordable housing complex located in Alameda, California known as Shinsei GardensApartments.Notes receivable between the Authority and Island City Development (discretely presentedcomponent unit) are presented in Note 6. Blended Component UnitsAlameda Affordable Housing Corporation ("AAHC")Alameda Affordable Housing Corporation ("AAHC") was established November 1, 2017, as asupporting organization of the Authority. Its primary role is to be a title holding entity forAuthority-owned properties. AAHC received federal tax exempt status under Section 501(c)3 in2017. The board of directors is comprised of all of the current Authority's Board of Commissionersand the directors' terms run concurrent with the commissioners'. In July 2021, a Local Housing Trust Fund was established by AAHC known as the AlamedaAffordable Housing Trust Fund. A service agreement for the years 2021 through 2025 wasexecuted between AAHC and the Authority with an effective date of July 21, 2021. An amendmentto the services agreement was entered effective September 9, 2024 to extend the agreed uponservices to 2027. For more information on the trust and funding awards, please visit:https://www.alamedahsg.org/about-us/alameda-affordable-housing-corporation/The Alameda Affordable Housing Trust Fund has received matching fund grants from the State ofCalifornia, and have deployed the funds to Island City Development (for the benefit of the futureEstuary II project) in the amount of $3,750,000, Lakehurst and Mosley, LP (Estuary I) in theamount of $5,000,000, and Mabuhay and Lakehurst, LP (Linnet Corner) in the amount of$3,438,000. These funds are notes payable to AAHC and are further discussed in the Note 10.Additionally, Independence Plaza Apartments, owned by the Authority, has received a fundingcommitment of $1,000,000and have been informed they can submit a full application onceAlameda Affordable Housing Trust Fund receives the State aware of Local Housing Trust Funds.Notes receivable and any accrued interest receivable and payable, between the Authority andAAHC are eliminated from financial statement presentation upon consolidation.Although they are eliminated from financial statement payment presentation, presented beloware the June 30, 2025 principal balances due to the Authority form AAHC:1. Note receivable from AAHC Anne B. Diament Plaza to the Authority - $6,426,9322. Note receivable from AAHC China Clipper Plaza to the Authority - $2,707,7653. Note receivable from AAHC Lincoln Willow Apartments to the Authority - $662,4664. Note receivable from AAHC Stanford House to the Authority - $757,5455. Note receivable from AAHC Parrot Village to the Authority - $3,258,5876. Note receivable from AAHC Eagle Village to the Authority - $10,221,0467. Note receivable from AAHC Esperanza to the Authority - $16,703,7108. Note receivable from AAHC Scattered Site (Pulte) - $3,750,00018 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)E. Description of ProgramsThe Authority maintains its accounting records by program. A summary of the significantprograms operated by the Authority is as follows:Moving to Work Demonstration ProgramThe purpose of this Moving to Work Demonstration Program ("MTW") is to give the Authorityand HUD the flexibility to design and test various approaches for providing and administeringhousing assistance that: reduce cost and achieve greater cost effectiveness; give incentives tofamilies to obtain employment and become economically self-sufficient; and increase housingchoices for low-income families to obtain employment and become economically self-sufficient,and increase housing choices for low-income families.State and Local ProgramsPeriodically, the Authority administers various grants from the State of California and/or theCounty and City of Alameda. These activities as well as the Authority's internal service funds arereported in this fund. Additionally, Regulatory Agreement and Declaration of RestrictiveCovenants ("Regulatory Agreements") are filed and recorded with the County of Alameda for allproperties owned on behalf of the Authority and its affiliates. These Agreements restrict units tobe rented to and occupied by low-income households for an affordable rent.Some of these Regulatory Agreements offers the Authority the First Right of Refusal to acquirethe property at the end of the 15 year low-income housing tax credit compliance period.The Authority has executed Regulatory Agreements with 3rd parties with loans secured bymultifamily apartment assets. These 3rd parties and loans are reflected in the Notes Receivablesection in Note 6.On December 15, 2022, the Authority and Vue Alameda Owner LP (owner of Rica VistaApartments) entered in a Regulatory Agreement. In connection with the restrictions of theRegulatory Agreement, Vue Alameda Owner LP also must pay a monitoring fee of $300 perAuthority assisted unit per year (subject to adjustment per the consumer price index), a HousingQuality Standards fee of $35 for each Authority assisted unit per year, and an annual assetmanagement fee in the amount of $10,000.Additionally, Regulatory Agreements are entered into with 3rd parties with no loans secured bymultifamily apartment assets. On June 12, 2024, the Authority and OAHS Playa Del Alameda LP(owner of Playa Del Alameda Apartments) entered into a Regulatory Agreement. In connectionwith the restrictions of the Regulatory Agreement, OAHS Playa Del Alameda LP must pay anannual monitoring fee of $150 per unit per year.PIH Family Self Sufficiency ProgramThe purpose of the Family Self-Sufficiency Program is to promote the development of localstrategies to coordinate the use of assistance under the Housing Choice Voucher and PublicHousing programs with public and private resources to enable participating families to increaseearned income and financial literacy, reduce or eliminate the need for welfare assistance, andmake progress toward economic independence and self-sufficiency.Emergency Housing VouchersThe purpose of Emergency Housing Vouchers is to assist individuals and families who areexperiencing homelessness; at risk of experiencing homelessness; fleeing, or attempting to flee,domestic violence, dating violence, sexual assault, stalking, or human trafficking; or were recentlyhomeless and for whom providing rental assistance will prevent the family’s homelessness orhaving high risk of housing instability. As the program is temporary, funding for these vouchers isexpected to run out in 2026. 19 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)E. Description of Programs (continued)Section 8 Moderate Rehabilitation Single Room OccupancyThe Section 8 Moderate Rehabilitation Single Room Occupancy Program provides rentalassistance to homeless individuals. Under the program, HUD enters into Annual ContributionsContracts with Public Housing Agencies (PHAs) in connection with the moderate rehabilitation ofresidential properties that, when rehabilitation is completed, will contain multiple single roomdwelling units.Shelter Plus CareThrough the County of Alameda, the Shelter Plus Care Program provides rental assistance, inconnection with supportive services funded from sources other than this program, to homelesspersons with disabilities (primarily persons who are seriously mentally ill; have chronic problemswith alcohol, drugs, or both; or have acquired immunodeficiency syndrome and related diseases)and their families. The program provides assistance through four components: (1) Tenant-basedRental Assistance; (2) Sponsor-based Rental Assistance; (3) Project-based Rental Assistance; (4)and Single Room Occupancy for Homeless Individuals.Veterans Affairs Supportive HousingVeterans Affairs Supportive Housing (VASH) is a housing program that helps homeless veteransand veterans at high risk of homelessness get stable housing and support services. HUD providesthe housing vouchers, and the U.S. Department of Veterans Affairs provides case managementand supportive services. Restore-Rebuild (formerly known as Faircloth-to-RAD)In November 2024, the Authority was transferred the 186 unit senior project Independence Plazafrom AAHC, and utilized the Restore-Rebuild program to protect affordability by converting 120units with project based vouchers. As part of this legal transaction, the loan serviced byNorthmarq was fully paid off, and the notes receivable from AAHC was cancelled by the Authorityin the amount of $32,086,304.F. Use of Management EstimatesThe preparation of financial statements in accordance with accounting principles generallyaccepted in the United States requires management to make estimates and assumptions thataffect certain reported amounts of assets and liabilities, and disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period. Significant estimates include the allowance for doubtfulaccounts, accrued expenses and other liabilities, depreciable lives of properties and equipment,amortization of leasehold improvements and contingencies. Actual results could differsignificantly from these estimates.G. Cash and Cash EquivalentsHUD requires housing authorities to invest excess funds in obligations of the United States,Certificates of Deposit or any other federally insured investment.20 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)G. Cash and Cash Equivalents (continued)HUD also requires that deposits be fully collateralized at all times. Acceptable collateralizationincludes FDIC insurance and the market value of securities purchased and pledged to the politicalsubdivision. Pursuant to HUD restrictions, obligations of the United States are allowed as securityfor deposits. Obligations furnished as security must be held by the Authority or with anunaffiliated bank or trust company for the account of the Authority.For the statement of cash flows, cash and cash equivalents include all cash balances and highlyliquid investments with a maturity of three months or less at time of purchase. It is the Authority'spolicy to maintain collateralization in accordance with HUD requirements.H. Accounts Receivable, NetRents are due from tenants on the first day of each month. As a result, tenants receivable balancesprimarily consist of rents past due and vacated units. An allowance for doubtful accounts isestablished to provide for accounts, which may not be collected in the future for any reason.Collection losses on accounts receivable are charged against the allowance for doubtful accounts.Also included in accounts receivable are those amounts that tenants owe the Authority aspayment for committing fraud or misrepresentation. These charges usually consist of retroactiverent and other amounts that may be determined by a formal written agreement or by a courtorder. The Authority recognizes a receivable from HUD and other governmental agencies for amountsbilled but not received and for amounts unbilled, but earned as of year-end.I. Allowance for Doubtful AccountsThe Authority periodically reviews all accounts receivable to determine the amount, if any, thatmay be uncollectable. If it is determined that an account or accounts may be uncollectable, theAuthority prepares an analysis of such accounts and records an appropriate allowance againstsuch amounts. J. Prepaid ExpensesPrepaid expenses represent amounts paid as of year-end that will benefit future operations.K. Notes ReceivableThe Authority has utilized development funds in accordance with HUD guidelines to assist in theconstruction and redevelopment of numerous affordable housing developments through theissuance of mortgage notes. When preparing financial statements in accordance with GAAP,management is required to make estimates as to the collectability of such mortgage notes. Whenestimating collectability, management analyzes the value of the underlying mortgaged property,the property’s ability to generate positive cash flow, and current economic trends and conditions. Management utilizes these estimates and judgments in connection with establishing an allowancefor uncollectable amounts during an accounting period.21 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)L. Lease ReceivableLease receivables are recognized at the net present value of the leased assets at a borrowing rateeither explicitly described in the lease agreement or implicitly determined by the Authority.M. Right-of-Use Assets and Lease LiabilitiesLessees are required to recognize a lease liability and an intangible right-of-use lease asset at theinception of the lease term. The lease liability is the present value of future payments expected tobe made over the course of the lease, and the right-of-use assets are measured as the initialamount of lease liability, plus any payments made to the lessor at or before the time ofcommencement of the lease and minus any lease incentives received from the lessor.The Authority uses its risk-free rate at the commencement date in determining the present valueof lease payments. The lease agreements do not contain any material residual value guarantees ormaterial restrictive covenants. Lease expense for lease payments is recognized on a straight-linebasis over the lease term.N. Capital Assets, NetCapital assets are stated at cost. Expenditures for repairs and maintenance are charged directly toexpense as they are incurred. Expenditures determined to represent additions or betterments arecapitalized. Upon the sale or retirement of capital assets, the cost and related accumulateddepreciation are eliminated from the accounts and any related gain or loss is reflected in theStatement of Revenues, Expenses and Changes in Net Position. Depreciation is calculated usingthe straight-line method based on the estimated useful lives of the following asset groups:Buildings 40 YearsSite improvements 15 YearsFurniture and equipment 5 - 10 YearsThe Authority has established a capitalization threshold of $5,000.O. Impairment of Long Lived AssetsThe Authority evaluates events or changes in circumstances affecting long-lived assets todetermine whether an impairment of its assets has occurred. If the Authority determines that acapital asset is impaired, and that the impairment is significant and other-than-temporary, thenan impairment loss will be recorded in the Authority's financial statements. During the yearended June 30, 2025, there were no impairment losses incurred.P. Inter-Program Receivables and PayablesInter-program receivables and payables are all classified as either current assets or currentliabilities, and are the result of the use of a concentrated account depository as the commonpaymaster for most of the programs of the Authority. Cash settlements are made monthly. Allinter-program balances are reconciled, and inter-program receivables and payables balances netto zero. In accordance with GASB 34, inter-program receivables and payables are eliminated forfinancial statement purposes. Detail balances by program are found in the Financial DataSchedule of this report. 22 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Q. Deferred Outflows / Inflows of ResourcesIn addition to assets, the Statement of Net Position will sometimes report a separate section fordeferred outflows of resources. This separate financial statement element represents aconsumption of net position that applies to a future period and so will not be recognized as anoutflow of resources until that time.In addition to liabilities, the Statement of Net Position will sometimes report a separate sectionfor deferred inflows of resources. This separate financial statement element represents anacquisition of net position that applies to a future period and so will not be recognized as aninflow of resources until that time. R. Accounts Payable and Accrued LiabilitiesThe Authority recognizes a liability for goods and services received but not paid for as of year-end. It also recognizes a liability for wages and fringe benefits related to services performed atyear-end but not yet paid to employees or taxing authorities.S. Unearned RevenueThe Authority's unearned revenue primarily consists of the prepayment of rent by residents, thecurrent portion of prepaid ground leases and the receipt of HUD and other grant fundingapplicable to future periods prior to incurring the corresponding expense.T. Accrued Compensated AbsencesCompensated absences are those absences for which employees will be paid in accordance withthe Authority's Personnel Policy. A liability for compensated absences that is attributable toservices already rendered and that are not contingent on a specific event that is outside thecontrol of the Authority and its employees, is accrued as employees earn the rights to the benefits.Compensated absences that relate to future services or that are contingent on a specific event thatis outside the control of the Authority and its employees are accounted for in the period in whichsuch services are rendered or in which such event takes place.U. Net Position ClassificationsNet position is classified in three components:Net investment in capital assets - Consists of resources including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,notes, or other borrowings that are attributable to the acquisition, construction or improvementof those assets.Restricted net position - Consists of resources with constraints placed on the use either by (1)external groups such as creditors, grantors, contributors, laws or regulations of othergovernments; or (2) law through constitutional provisions or enabling legislation.Unrestricted net position - All other net position that do not meet the definition of "restricted" or"net investment in capital assets."23Unrestricted net position - All other net position that do not meet the definition of "restricted" or"net investment in capital assets."Restricted net position - Consists of resources with constraints placed on the use either by (1)external groups such as creditors, grantors, contributors, laws or regulations of othergovernments; or (2) law through constitutional provisions or enabling legislation.Net investment in capital assets - Consists of resources including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,notes, or other borrowings that are attributable to the acquisition, construction or improvementof those assets.Net position is classified in three components:U. Net Position Classifications HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)V. Use of Restricted Assets When both restricted and unrestricted resources are available for a particular restricted use, it isthe Authority’s policy to use restricted resources first, and then unrestricted resources as needed.W. Operating Revenues and ExpensesThe Authority defines its operating revenues as income derived from charges to residents andothers for services provided as well as government subsidies and grants used for operatingpurposes. The Authority receives annual operating subsidies from HUD, subject to limitationsprescribed by HUD. Operating subsidies from HUD are recorded in accordance with GASB 33and are accounted for as revenue. Other contributions from HUD that are for development andmodernization of capital assets are reflected separately in the accompanying financial statementsas capital grants. Operating expenses are costs incurred in the operation of its program activitiesto provide services to residents and others. The Authority classifies all other revenues andexpenses as non-operating.X. TaxesThe Authority and its legal affiliates are generally exempt from Federal Income and CaliforniaIncome Taxes. Certain legal affiliates, such as limited liability companies and limitedpartnerships, may have to pay California franchise taxes. The Authority and AAHC are generallyexempted from secured property taxes with the County of Alameda. Legal affiliates such as Low-Income Housing Tax Credit limited partnerships with an approved welfare tax exemption are alsoexempt from property taxation with the County of Alameda.Y. PensionsFor purposes of measuring the net pension liability, deferred outflows of resources and deferredinflows of resources related to pensions, and pension expense, information about the fiduciarynet position of the California Public Employees' Retirement System ("CalPERS") and additionsto/deductions from CalPERS's fiduciary net position have been determined on the same basis asthey are reported by CalPERS. For this purpose, benefit payments (including refunds of employeecontributions) are recognized when due and payable in accordance with the benefit terms.Investments are reported at fair value.Z. Other Post Employment Benefits ("OPEB")The Authority provides a defined benefit health care program to its retired employees.Contributions for this plan are made on a pay-as-you-go basis. The Authority used actuarialreports supplied by OPEB consultants for the purpose of measuring the net OPEB liability,deferred outflows of resources, deferred inflows of resources, and expenses related to the plan.AA. Budgets and Budgetary AccountingThe Authority adopts annual, appropriated operating budgets for all its programs receivingfederal expenditure awards and are used as a management tool throughout the accounting cycle.All budgets are prepared on a HUD basis, which differs with accounting principles generallyaccepted in the United States of America. All appropriations lapse at HUD's program year end orat the end of grant periods. 24 When both restricted and unrestricted resources are available for a particular restricted use, it isthe Authority’s policy to use restricted resources first, and then unrestricted resources as needed.V. Use of Restricted Assets HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)BB. Economic DependencyThe Section 8 Housing Choice Vouchers program of the Authority is economically dependent onsubsidies from HUD. Although the Authority receives these subsidies, as administrative feeincome, the Housing Choice Vouchers program operates at a deficit. The Board ofCommissioners has authorized the budget to advance funds from local programs to support theHousing Choice Vouchers program.CC. Risk ManagementThe Authority is exposed to various risks related to torts; theft of, damage to and destruction ofassets; errors and omissions; injuries to employees; and natural disasters. Significant losses arecovered by commercial insurance for all major programs and there have been no significantreductions in insurance coverage. Claims expenditures and liabilities are reported when it isprobable that a loss has occurred, the amount of the loss can be reasonably estimated, and saidamount exceeds insurance coverage. Settlement amounts have not exceeded insurance coveragefor the last three years.NOTE 2. CASH AND CASH EQUIVALENTS AND RESTRICTED CASHAs of June 30, 2025, the Authority had funds on deposit in checking, savings and money marketaccounts. The carrying amount of the primary government's cash and cash equivalents (includingrestricted cash) was $26,456,092, and the bank balances were $22,276,301. This difference is dueto the timing of a $4,000,000 investment in the California Asset Management Fund (“CAMP”) onJune 30, 2025, received by the CAMP servicer on July 1, 2025.Cash CategoryPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Unrestricted $ 23,101,019 $ 3,660,769 $ 26,761,788Tenant security deposits 481,185 123,160 604,345Restricted 2,873,8881,203,3564,077,244Total cash, cash equivalents, and restricted cash $ 26,456,092$ 4,987,285$ 31,443,377Of the primary government's bank balances, $1,445,270 was covered by federal depositoryinsurance and the remaining $20,831,031 was collateralized with the pledging financialinstitution as of June 30, 2025. Custodial credit risk is the risk that, in the event of a bank failure,the government's deposits may not be returned to it. As of June 30, 2025, the Authority's bankbalances were not exposed to custodial credit risk.25Of the primary government's bank balances, $1,445,270 was covered by federal depositoryinsurance and the remaining $20,831,031 was collateralized with the pledging financialinstitution as of June 30, 2025. Custodial credit risk is the risk that, in the event of a bank failure,the government's deposits may not be returned to it. As of June 30, 2025, the Authority's bankbalances were not exposed to custodial credit risk.$ 31,443,377Total cash, cash equivalents, and restricted cash $ 26,456,092$ 4,987,285$ 31,443,377Unrestricted $ 23,101,019 $ 3,660,769 $ 26,761,788Tenant security deposits 481,185 123,160 604,3454,077,244Unrestricted $ 23,101,019 $ 3,660,769 $ 26,761,788Tenant security deposits 481,185 123,160 604,345Restricted 2,873,8881,203,356Unrestricted $ 23,101,019 $ 3,660,769 $ 26,761,788Tenant security deposits 481,185 123,160 604,345Restricted 2,873,888TotalReporting Entity(MemorandumOnly)PrimaryGovernmentDiscretelyPresentedComponentUnitCash CategoryAs of June 30, 2025, the Authority had funds on deposit in checking, savings and money marketaccounts. The carrying amount of the primary government's cash and cash equivalents (includingrestricted cash) was $26,456,092, and the bank balances were $22,276,301. This difference is dueto the timing of a $4,000,000 investment in the California Asset Management Fund (“CAMP”) onJune 30, 2025, received by the CAMP servicer on July 1, 2025.NOTE 2. CASH AND CASH EQUIVALENTS AND RESTRICTED CASHNOTE 2. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 3. ACCOUNTS RECEIVABLE, NETAccounts receivable, net consists of the following as of June 30, 2025:DescriptionPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Accounts receivable - HUD $ 282,111 $ - $ 282,111Accounts receivable - PHA Projects 345,060 - 345,060Accounts receivable - other government 1,646 - 1,646Accounts receivable - tenants, net 111,574 45,203 156,777Accounts receivable - miscellaneous 3,796,70146,7373,843,438Total accounts receivable, net $ 4,537,092$ 91,940$ 4,629,032Accounts Receivable - HUDAs of June 30, 2025, Accounts receivable - HUD consisted of amounts due to the Authority foramounts expended under grant agreements that have not yet been reimbursed. Managementestimates the amounts to be fully collectible and therefore no allowance for doubtful accounts hasbeen established.Accounts Receivable - PHA ProjectsAccounts receivable - PHA Projects represents amounts owed to the Authority by other PublicHousing Authorities for administrative fees and Port-in HAP expense under the portabilityprovisions of the MTW program. Management estimates the amounts to be fully collectible andtherefore no allowance for doubtful accounts has been established. Accounts Receivable - Other GovernmentAccounts receivable - other government represents amounts owed to the Authority by otherfederal agencies and state and local governments. Management estimates the amounts to be fullycollectible and therefore no allowance for doubtful accounts has been established. Accounts Receivable - Tenants, NetTenant accounts receivable represents amounts owed to the Authority by tenants for outstandingrent. The balance of the primary government is shown net of an allowance for doubtful accountsof $451,333.Accounts Receivable - MiscellaneousAccounts receivable - miscellaneous consists of amounts owed from managed properties andother miscellaneous sources from normal ongoing operations. Management estimates theamounts to be fully collectible and therefore no allowance for doubtful accounts has beenestablished.26 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 4. CAPITAL ASSETS, NETThe following is a summary of the primary government's changes in capital assets for the yearended June 30, 2025: DescriptionJune 30,2024 Additions Dispositions TransfersJune 30, 2025Non-depreciable capital assets: Land $ 60,726,239 $ - $ - $ - $ 60,726,239 Construction in progress 2,501,9921,697,640--4,199,632 Total 63,228,2311,697,640--64,925,871Depreciable capital assets: Buildings 54,436,552 1,936,458 - - 56,373,010 Furniture and equipment 431,739---431,739 Total 54,868,2911,936,458--56,804,749Less: accumulated depreciation 36,040,4871,822,737--37,863,224Net capital assets $ 82,056,035$ 1,811,361$ -$ -$ 83,867,396Depreciation expense for the primary government for the fiscal year ended June 30, 2025,amounted to $1,822,737.The following is a summary of the discretely presented component unit's capital assets activity forthe year ended June 30, 2025:DescriptionJune 30,2024 Additions Dispositions TransfersJune 30, 2025Non-depreciable capital assets: Land $ 5,370,720 $ - $ - $ - $ 5,370,720 Construction in progress 9,522,47948,362,761--57,885,240 Total 14,893,19948,362,761--63,255,960Depreciable capital assets: Buildings 66,280,340 - - - 66,280,340 Furniture and equipment 2,632,875---2,632,875 Total 68,913,215---68,913,215Less: accumulated depreciation 7,178,6142,445,382(8,797)-9,615,199Net capital assets $ 76,627,800$ 45,917,379$ 8,797$ -$ 122,553,976Depreciation expense for the discretely presented component unit for the fiscal year ended June30, 2025, amounted to $2,445,382.27 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 5. RESTRICTED DEPOSITSRestricted deposits consist of the following as of June 30, 2025:Cash CategoryPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Housing assistance payment reserves$ 394,747$ - $ 394,747Emergency housing voucher reserves 59,472 - 59,472Replacement reserves 2,224,399 - 2,224,399Project reserves 195,270 1,203,356 1,398,626Tenant security deposits481,185123,160604,345Total restricted deposits $ 3,355,073$ 1,326,516$ 4,681,589Housing assistance payment reserves are restricted for use only in the MTW program.Emergency housing voucher reserves are restricted to be used on future housing assistancepayments related to the program. Replacement reserves are required to be set aside for future project expenditures in accordancewith regulatory agreements.Project reserves are reserves that are required to be set aside for future project expendituresaccording to the respective regulatory agreement.Tenant security deposits represent amounts held by the Authority on behalf of tenants. Upontermination, the tenant is due amounts deposited plus interest earned less any amounts chargedfor damage to the unit.NOTE 6. NOTES RECEIVABLE Outstanding notes receivable for the primary government as of June 30, 2025 consisted of thefollowing:DescriptionAmountEffective January 5, 2004, Resources for Community Development enteredinto a promissory note with the Authority for an amount not to exceed$2,015,000 for the Breakers at Bayport property located at 459 NeptuneGardens Avenue. This loan was assigned to the Breakers at Bayport LP onOctober 14, 2004. This loan accrues no interest and is secured by theunderlying property. Payments shall be deferred until maturity, January 5,2059. $ 1,408,79028 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 6. NOTES RECEIVABLE (continued)DescriptionAmountEffective March 9, 2007, Taplin and Taplin entered into a promissory notewith the Authority for $23,600 for the property in the City of Alameda. OnApril 30, 2019, Taplin and Taplin entered into the First Amendment toPromissory Note, which removed the balloon payment set for March 9,2021. The amendment also contained a provision to change the potentialamount of interest owed to be the lesser of 5% simple interest or sharedappreciation. If the principal amount is paid after March 9, 2011, theborrower must also pay a share of the appreciation of the property, ascalculated in the note. 23,600Effective December 18, 2007, Nebeker entered into a promissory note withthe Authority for $31,800 for the property in the City of Alameda. OnMarch 13, 2019, Nebeker entered into the First Amendment to PromissoryNote, which removed the balloon payment set for December 18, 2022. Theamendment also contained a provision to change the potential amount ofinterest owed to be the lesser of 5% simple interest or shared appreciation.If the principal amount is paid after December 19, 2012, the borrower mustalso pay a share of the appreciation of the property, as calculated in thenote.31,800Effective January 23, 2008, Moore entered into a promissory note with theAuthority for $31,800 for the property in the City of Alameda. If theprincipal amount is paid after January 23, 2013, the borrower must alsopay a share of the appreciation of the property, as calculated in the note.The original note stipulates a balloon payment due at the earlier occurrenceof January 23, 2023 or upon default, refinancing, sale or transfer of theproperty. On May 15, 2024, Moore executed the First Amendment toPromissory Note, which removed the balloon payment set for January 23,2023 except for the provisions indicated in that Promissory Note, includingmaterial default, appointment of a receiver or trustee to take possession ofthe property, and any attachment of any involuntary liens. The amendmentalso contained a provision to change the potential amount of interest owedto the interest rate of 5% simple interest or shared appreciation and furtherdefined in the First Amendment to Promissory Note. 31,800Effective March 24, 2008, Resources for Community Development ("RCD")entered into a promissory note with the Community ImprovementCommission of Alameda for an amount not to exceed $4,000,000, locatedat 401 Willie Stargell Avenue. The loan was assigned to RCD's affiliateShinsei Gardens Apartments, LP on March 24, 2008, and modified onMarch 24, 2008, and modified again on May 14, 2010. As redevelopmentagencies in the State of California was ruled unconstitutional, any assetsoriginally sourced from Community Improvement Commission fundingwas ultimately transferred to the Authority as Successor Agency in 2012. Aportion of funds of this loan are retained by the City of Alameda, and aportion is retained by the Authority which is the principal balancepresented. This loan accrues no interest and is secured by the underlyingproperty. Payments shall be deferred until March 23, 2063. ShinseiGardens Apartments LP, is an affiliate of Island City Development. 1,215,86929 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 6. NOTES RECEIVABLE (continued)DescriptionAmountEffective September 27, 2011, Alameda Islander, LP entered into apromissory note with the Authority for $8,600,000 for the Park Alamedaproperty located at 2428 Central Avenue. This loan accrues no interest andis secured by the underlying property. Payments shall be deferred untilSeptember 27, 2068. 8,600,000Effective January 11, 2013, Jack Capon Villa, LP entered into an amendedand restated promissory note with the Authority for an amount not toexceed $1,400,000 for the Jack Capon Villa property located at 2216Lincoln Avenue. Simple interest accrues at 3% per annum, and the note issecured by the underlying property. Payments shall be deferred untilJanuary 17, 2068. 1,400,000Effective January 11, 2013, Jack Capon Villa, LP entered into a promissorynote with the Authority for the amount of $200,000 for the Jack CaponVilla property located at 2216 Lincoln Avenue. Simple interest accrues at3% per annum, and the note is secured by the underlying property.Principal and interest shall be due and payable on January 13, 2070. 201,067Effective November 24, 2015, Stargell Commons, LP entered into a loanagreement with the Authority for the amount of $2,000,000 for the StargellCommons property, located at 2700 Bette Street. The loan bears simpleinterest at 3% per annum and is secured by underlying property. Annualpayments shall be made equal to the lender's share of residual receipts. Theprincipal and interest are due and payable on December 2, 2072. StargellCommons, LP, is an affiliate of Island City Development (discretelypresented component unit). 2,000,000Effective December 1, 2016, Sherman and Buena Vista, LP (LittlejohnCommons), an entity that is related to the Authority via the discretelypresented component unit, entered into a loan agreement with theAuthority for the amount of $3,600,000 for the Del Monte Senior propertyat 1301 Buena Vista Avenue. The loan bears interest at 2.26% compoundedannually and is secured by the underlying property. Annual payments shallbe made equal to the lender's share of residual receipts. The principal andinterest are due and payable on December 31, 2073. 3,520,516Effective December 1, 2016, Sherman and Buena Vista, LP (LittlejohnCommons), an entity that is related to the Authority via the discretelypresented component unit, entered into a loan agreement with theAuthority for the amount of $3,410,000 for the Del Monte Senior propertyat 1301 Buena Vista Avenue. The loan bears interest at 2.26% compoundedannually and is secured by the underlying property. Annual payments shallbe made equal to the lender's share of residual receipts. The principal andinterest are due and payable on December 31, 2073. 3,410,00030 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 6. NOTES RECEIVABLE (continued)DescriptionAmountEffective June 21, 2017, Everett and Eagle, LP (Everett Commons), anentity that is related to the Authority via the discretely presentedcomponent unit, entered into a promissory note with the Authority for theamount of $4,250,000 for the 2437 Eagle Avenue property. The noteaccrues interest at 2.68% compounded annually and is secured by theunderlying property. Annual payments shall be made equal to the lender'sshare of residual receipts. The principal and interest are due and payable onDecember 31, 2074. 4,250,000Effective August 1, 2020, Constitution and Eagle, LP (Rosefield Village), anentity that is related to the Authority via the discretely presentedcomponent unit, entered into a loan agreement with the Authority for theamount of $16,576,088 for the Rosefield Village Apartments. The loanbears interest at 1.12% compounded annually. Annual payments shall bemade equal to the lender's share of residual receipts. The principal andinterest are due and payable on December 31, 2077. The loan is secured byreal property. 16,576,088Effective August 1, 2020, Constitution and Eagle, LP (Rosefield Village), anentity that is related to the Authority via the discretely presentedcomponent unit, entered into a loan agreement with the Authority for anamount not to exceed $8,143,052, for the acquisition, construction, andrehabilitation of the Rosefield Village Apartments. The loan bears nointerest. The principal and interest shall be due and payable on the earliestof (a) the expiration of the term, (b) the date the development is sold, or (c)an event of default. Beginning May 1, 2023, payments shall be made equalto the Authority's share of residual receipts. The loan matures on December31, 2077 and is secured by the deed of trust. 8,018,052Effective December 15, 2022, Vue Alameda Owner LP (Rica VistaApartments) entered into a note with the Authority in the amount of$10,000 related to the Rica Vista Apartments. The note bears interest at 3%and matures on December 1, 2077. The note is secured by a deed of trust. 10,000Effective November 14, 2022, Island City Development, discretely presentedcomponent unit, entered into a note with the Authority, via the AlamedaAffordable Housing Trust Fund, in the final amount of $3,750,000. Thenote bears simple interest at 3% per annum, beginning January 1, 2025. Thenote matures on January 1, 2080 and is unsecured. 3,750,000On January 1, 2024, the Authority entered into a loan agreement withLakehurst and Mosley, LP (Estuary I), an entity that is related to theAuthority via the discretely presented component unit, in an amount not toexceed $5,000,000. The loan bears interest at 3% per annum and matureson June 30, 2081. Payments of principal and interest commence on May 1,2025 and shall be equal the Authority's proportionate share of residualreceipts. The loan is secured by a deed of trust. 5,000,00031 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 6. NOTES RECEIVABLE (continued)DescriptionAmountOn January 1, 2024, the Authority entered into a loan agreement withMabuhay and Lakehurst LP (Linnet Corner), an entity that is related to theAuthority via the discretely presented component unit in an amount not toexceed $3,438,000. The loan bears no interest and matures on June 30,2081. Payments of principal commence on May 1, 2025 and shall be equalthe Authority's proportionate share of residual receipts. The loan is securedby a deed of trust.3,438,000On March 1, 2024, the Authority entered into a note with Mabuhay andLakehurst LP (Linnet Corner), an entity that is related to the Authority viathe discretely presented component unit, in the amount of $945,000(sourced from the Federal Home Loan Bank Affordable Housing Program).The note shall not bear interest and payment of principal will be due andpayable at maturity on June 30, 2081. The note is secured by a deed of trust. 945,000On January 1, 2024, the Authority entered into a note with Lakehurst andMosley LP (Estuary I), an entity that is related to the Authority via thediscretely presented component unit, in the amount of $660,000 (sourcedfrom the Federal Home Loan Bank Affordable Housing Program). The noteshall not bear interest and payment of principal will be due and payable atmaturity on June 30, 2081. The note is secured by a deed of trust. 660,000On January 1, 2024, the Authority entered into a note with Lakehurst andMosley LP (Estuary I), an entity that is related to the Authority via thediscretely presented component unit, in the amount of $2,061,601. Thenote bears interest at 5.03% per annum. Payments of principal and interestcommence on May 1, 2025 and shall be equal the Authority's proportionateshare of residual receipts. The loan matures on June 30, 2081 and issecured by a deed of trust. 2,061,601The Authority entered into repayment agreements with individuals as partof the Authority's security deposit loan program. These loans are non-interest bearing, unsecured, and have various maturity dates. 5,304On January 1, 2024, the Authority entered into a note with Lakehurst andMosley LP (Estuary I) in the amount of $3,000,000. The note bears simpleinterest at 3% per annum. Payments of principal and interest commence onMay 1, 2025 and shall be equal the Authority's proportionate share ofresidual receipts. The loan matures on June 30, 2081 and is secured by adeed of trust.3,000,000On May 15, 2024, the Authority entered into a note with Island CityDevelopment in the amount of $1,500,000 for predevelopment work of theNorth Housing parcel. The note bears no interest and is unsecured. Thenote matures on January 31, 2039, at which time the total principal amountis due in full. 1,500,000Total notes receivable $ 71,057,48732 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 6. NOTES RECEIVABLE (continued)Notes receivable amounts due within the next five fiscal years and thereafter are as follows:June 30, 2026 $ 02027 157,4562028 -2029 02030 0 Thereafter 70,900,031$ 71,057,487There is no interest accrued on any of the notes receivable due to uncertainty of collection basedon the varying terms of the individual notes, which includes no provision for interest, deferral ofpayments, and future valuation determinations of the properties. Interest income will be recordedby the Authority as received. NOTE 7. LEASE RECEIVABLEOn October 1, 1992, the Authority entered into a lease agreement to lease real property (the“property lease”) as a lessor with Alameda Family Services. The property lease has subsequentlybeen amended on several occasions, with the most recent occurring on March 5, 2021 The term ofthe most recent amended property lease was for ten years, commencing on October 1, 2020 andterminating on September 31, 2031. The Authority recorded an initial lease receivable in theamount of $345,027. As of June 30, 2025, the value of the lease receivable was $267,766. Atcommencement of the commercial lease, base rent in the amount of $2,288 was due on the first ofeach month, with a 3% increase annually. The implicit interest rate on the property lease was 5%.The value of the deferred inflows of resources as of June 30, 2025 was $162,930. For the yearended June 30, 2025, the Authority recognized lease revenue in the amount of $21,871 andinterest income in the amount of $10,099.On May 1, 2005, the Authority entered into a lease agreement to lease office space (the “officespace lease”) as a lessor with the Home Town Donut Shop. The office space was for a period of tenyears with an option to extend the term for an additional ten years, which commenced on May 1,2005 and terminates on April 30, 2025. The Authority recorded an initial lease receivable in theamount of $18,562. As of June 30, 2025, the value of the lease receivable was $0. Atcommencement of the office space lease, base rent in the amount of $273 was due on the first ofeach month. The base rent increased to $393 in June of 2022. The implicit interest rate on theoffice space lease was 5%. The value of the deferred inflows of resources as of June 30, 2025 was$0. For the year ended June 30, 2025, the Authority recognized lease revenue in the amount of$4,114 and interest income in the amount of $96. This lease has been terminated by the lessor in2026.33 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 8. RIGHT-OF-USE ASSETS AND LEASE LIABILITYOn April 1, 2021, the Authority entered into a lease agreement (the “South Shore Center Lease”)as a lessee to rent office space. The term of the South Shore Center Lease was for twenty-four(24) months, commencing on April 1, 2021, with two extension options for twelve months each.At commencement of the South Shore Center Lease, base rent in the amount of $5,813 was dueon the first of each month, and the South Shore Center Lease had an implicit interest rate of 5%.During the year ended June 30, 2024, the Authority exercised an option to extend the SouthShore Center Lease an additional two years, which resulted in an additional right of use asset inthe amount of $128,508. As of June 30, 2025, the value of the right-of-use asset was $123,792,net of accumulated amortization in the amount of $273,609. Amortization expense for the yearended June 30, 2025 totaled $67,521. Rent and interest expense for the year ended June 30, 2025amounted to $72,467 and $9,109, respectively.The following is a summary of the Authority's changes in right-of-use asset for the year endedJune 30, 2025: Description June 30, 2024 Additions Dispositions June 30, 2025Right-of-use asset $ 397,401 $ - $ - $ 397,401Less: accumulated amortization 206,08867,521-273,609Net right-of-use asset $ 191,313$ (67,521)$ -$ 123,792The lease liability as of June 30, 2025 was $142,622. As of June 30, 2025, the Authority had future minimum payments under this lease as follows:PrincipalInterestTotal Payment 2026 $ 76,174 $ 5,402 $ 81,576 2027 66,4481,53267,980Total $ 142,622$ 6,934$ 149,556NOTE 9 COMPENSATED ABSENCESIt is the Authority's policy to permit employees to accumulate earned but unused vacation leaveup to a maximum of their annual accrual rate plus 10 days, up to a maximum of 250 hours at anytime, although certain management employees may have a maximum 350 hours at any time.Adjustments to the vacation accruals caps are periodically updated in the Authority's EmployeeHandbook and can be referenced in that document.It is the Authority's policy to permit employees to accumulate earned but unused sick leave;however, the value of unused sick leave is not payable upon separation from the Authority.Unused sick leave can be turned into extra service credit when a separating employee retire underCalPERS.34 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 9 COMPENSATED ABSENCES (continued)As of June 30, 2025, accrued compensated absences of the Primary Government amounted to$567,584, and consisted of the following activity for the year then ended:DescriptionPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Beginning compensated absences $ 356,124 $ - $ 356,124Compensated absences earned 211,460 - 211,460Compensated absences redeemed ---Ending compensated absences 567,584 - 567,584Less: current portion 414,596-414,596Compensated absences, net of current portion $ 152,988$ -$ 152,988NOTE 10. BONDS AND NOTES PAYABLEBonds and notes payable for the primary government consisted of the following as of June 30,2025:DescriptionAmountA promissory note agreement for $235,900 was entered into with the City onJuly 15, 1996, for three condominiums, owned by the Authority, at thefollowing addresses: 2137 Otis Drive, 2209 Otis Drive, 1825 Shoreline Drive.This note bears no interest. Payment on this note was deferred until December31, 2006, at which time semi-annual payments of principal are due based onan amortization schedule, which is based on estimated cash flow of theproperties. For the year ended June 30, 2025, annual payments of principaltotaled $6,863. The note is secured by real property and matures onDecember 31, 2055. $ 207,054A promissory note agreement for $282,700 was entered into with the City onJuly 26, 1996, for four condominiums, owned by the Authority, at thefollowing addresses: 955 Shorepoint Court and 965 Shorepoint Court. Thisnote bears no interest. Payment on this note is deferred until December 31,2026, at which time semi-annual payments of principal are due based on anamortization schedule, which is based on estimated cash flow of theproperties. The note is secured by real property and matures on December 31,2055. 282,700A promissory note agreement for $570,000 was entered into with the City onJune 18, 1998, for the China Clipper property, owned by AAHC, at 460 BuenaVista Avenue. This note bears interest at 3% per annum. Both interest andprincipal payments on this loan are deferred until the note's due date of June30, 2057. The loan is secured by real property. 570,00035 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)DescriptionAmountA promissory note agreement for $380,000 was entered into with the Countyof Alameda on September 1, 2009, for the Lincoln House property, owned bythe Authority, at 745 Lincoln Avenue. The note bears simple interest at 3% perannum. The principal and accrued interest are due and payable on July 30,2067. Principal and interest are payable annually throughout the term of theloan based on Residual Receipts as defined in the note. The note is secured byreal property. 380,000A promissory note agreement for $536,400 was entered into with the Countyof Alameda on September 1, 2009, for the 1917 Sherman Street property,owned by the Authority. The note bears simple interest at 3% per annum. Theprincipal and accrued interest are due and payable on July 30, 2067. Principaland interest are payable annually throughout the term of the loan based onResidual Receipts as defined in the note. The loan is secured by real property.536,400A promissory note agreement for $96,000 was entered into with the City onNovember 21, 2013, for the Anne B. Diament property, owned by AAHC, at920 Park Street. The note bears no interest. The principal is deferred untilNovember 22, 2028, at which time the loan will be due in the full amount. Theloan is secured by real property. 96,000On June 30, 2014, the Authority entered into a mortgage note totaling$14,291,000 with Amerisphere Multifamily Finance, LLC. The mortgage isserviced by NorthMarq Capital. The note is secured by the property referred toas the Esperanza Apartments, owned by the Authority, at 1903 Third Street.The note bears interest at 5.63% per annum and requires combined monthlyprincipal and interest payments totaling $82,312. The note matures and ispayable in full on July 1, 2044. This loan was transferred from the Authority toAlameda Affordable Housing Corporation with no change in terms on July 1,2021. 11,537,777On June 30, 2014, the Authority entered into a mortgage note totaling$7,500,000 with Amerisphere Multifamily Finance, LLC. The mortgage isserviced by NorthMarq Capital. The note is secured by the property referred toas the Independence Plaza at 703 Atlantic Avenue. The note bears interest at3.75% per annum and requires combined monthly principal and interestpayments totaling $64,758. The note was scheduled to originally mature onJuly 1, 2026, but was paid in full as of June 30, 2025. -The Authority entered into a note with the Bank of Marin through the FederalHome Loan Bank Affordable Housing Program, on Mach 1, 2024 in theamount of $945,000 for the benefit of Linnet Corner (Mabuhay andLakehurst, LP). The note bears no interest and is secured by a deed of trust.The loan shall not amortize and payment of principal shall be due on thematurity date of June 30, 2081. 945,00036 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)DescriptionAmountThe Authority entered into a loan with Community Housing Fund, LLC (the"Lender") on December 14, 2023 with a maximum principal amount of$3,337,000. A portion of the loan proceeds in the amount of $266,960 (the"interest holdback") shall be held back by the Lender to pay for interest due onthe loan. On the first day of each month, the Lender will withdraw from theinterest holdback the amount of interest due on the loan for the precedingmonth. After the interest holdback is depleted, the Authority shall utilize itsown funds to make principal and interest payments under the note. The loanmatures on January 1, 2028 and is secured by a deed of trust on The Poplarproperty located at 2615 Eagle Avenue. 2,645,456On July 15, 2021, the Authority transferred a loan totaling $9,300,000 withthe AAHC concurrent with a refinance event. The loan is serviced by PNCBank, National Association, and is secured by the properties referred to asEagle Village and Parrot Village and owned by AAHC. The loan bears interestat 2.59% per annum and requires combined monthly principal and interestpayments totaling $37,183. The loan matures on August 1, 2026. The Authorityhas plans to refinance this loan, which would extend the maturity date. 8,486,941The Authority entered into an note with the Bank of Marin through the FederalHome Loan Bank Affordable Housing Program on January 1, 2024 in theamount of $660,000 for the benefit of Estuary I owned by Lakehurst andMosley, LP. The note bears no interest and is secured by a deed of trust. Theloan shall not amortize and payment of principal shall be due on the maturitydate of June 30, 2081. 660,000Total bonds and notes payable 26,347,328Less: current portion 568,808Bonds and notes payable, excluding current portion $ 25,778,520Annual debt service for principal and interest over the next five years and in five-year incrementsthereafter is as follows:YearPrincipalInterestTotal2026 $ 568,808 $ 860,879 $ 1,429,6872027 8,728,250 656,873 9,385,1232028 3,033,748 599,454 3,633,2022029 410,726 577,020 987,7462030 434,456 553,290 987,7462031-2035 2,579,085 2,359,646 4,938,7312036-2040 3,415,338 1,523,393 4,938,7312041-2045 3,595,763 437,532 4,033,2952046-2050 - - -2051-2055 - - -2056-2060 1,059,754 - 1,059,7542061-2065 - - -2066-2070 916,400 - 916,4002081 1,605,000-1,605,000$ 26,347,328$ 7,568,087$ 33,915,41537 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)Debt activity for the primary government for the year ended June 30, 2025 consisted of thefollowing:DescriptionJune 30, 2024 AdvancesPrincipalReductionsJune 30, 2025Bonds and notes payable$ 28,453,774$ -$ (2,106,446)$ 26,347,328Accrued interest payable as of June 30, 2025 and interest expense for the year then ended for theprimary government totaled $1,240,777 and $965,724, respectively.A summary of the Authority's discretely presented component unit bonds and notes payable areas follows:Notes payable to the Authority as evidenced by a Note Receivable (see Note 6): AmountIsland City Development has a $7,500,000 payable to Alameda Affordable Housing Trust Fund $ 5,250,000Sherman and Buena Vista LP (Littlejohn Commons) has a $3,520,516 payableto the Authority 3,520,516Sherman and Buena Vista LP (Littlejohn Commons) has a $3,410,000 payable to the Authority 3,410,000Everett and Eagle LP (Everett Commons) has a $4,250,000 payable to the Authority 4,250,000Constitution and Eagle LP (Rosefield Village) has a $8,018,052 payable to the Authority 8,018,052Constitution and Eagle LP (Rosefield Village) has a $16,576,088 payable to the Authority 16,576,088Lakehurst and Mosley LP (Estuary I) has a $660,000 payable to the Authority 660,000Lakehurst and Mosley LP (Estuary I) has a has a $3,000,000 payable to the Authority 3,000,000Lakehurst and Mosley LP (Estuary I) has a $2,061,601 payable to the Authority 2,061,601Mabuhay and Lakehurst (Linnet Corner) has a $945,000 payable to the Authority 945,000 Total primary government loans to discretely presented component unit $ 47,691,25738 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)Bonds and Notes Payable by Island City Development, Discrete Component Unit and its legalentities through 12/31/2024:DescriptionAmountSherman and Buena Vista LP (Littlejohn Commons)Note payable to Compass Bank, an Alabama banking corporation, providesconstruction financing in the maximum amount of $10,322,328. The note issecured by a construction and permanent leasehold deed of trust with absoluteassignment of leases and rents, security agreement and fixture filing. The noteprovides for interest only payments based on one-month LIBOR plus 1.80% perannum through the conversion date. The interest rate was 4.15% at December31, 2018. In February 2019, the construction loan was partially paid off with thelimited partner's capital contributions, with the remaining balance convertedinto a permanent loan of $2,429,400 with California Community ReinvestmentCorporation ("CCRC"). The Partnership entered into a promissory noteagreement with CCRC for the permanent loan, with an interest rate of 5.39%,which requires monthly payments of principal and interest, and matures onMarch 1, 2034.$ 1,719,707Note payable to the City of Alameda, secured by a subordinate deed of trust,borrowings up to $195,740, simple interest at 3.00% per annum, payable fromResidual Receipts and unpaid principal and interest are due on April 1, 2073. 174,589Everett and Eagle LP (Everett Commons)Note payable to JPMorgan Chase Bank, N.A., a national banking association,provides construction financing in the maximum amount of $9,858,528. Thenote is secured by a construction and deed of trust, assignment of rents,security agreement and fixture filing. The note provides for interest-onlypayments based on adjusted one-month LIBOR plus 1.85% per annum throughthe conversion date (4.35% as if December 31, 2018). In July 2019, theconstruction loan was partially repaid and concurrently converted to a$3,330,168 permanent loan that bears interest of 5.55% that requires monthlypayments of principal and interest of $17,993. The note matures on September21, 2039. 3,154,609Note payable to the City of Alameda, secured by a subordinated leasehold deedof trust, assignment of rents, security agreement and fixture filing, borrowingsup to $153,282, simple interest at 3.00%, payable from residual receipts;unpaid principal and interest are due on December 31, 2074. 153,282Note payable to County of Alameda (County Loan), in the maximum amount of$1,000,000, secured by a subordinated leasehold deed of trust, assignment ofrents, security agreement and fixture filing, simple interest at 3.00%, payablefrom residual receipts and unpaid principal and interest are due on December31, 2074. 1,000,00039 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)DescriptionAmountConstitution and Eagle LP (Rosefield Village)Note payable in the amount of $8,093,414 dated August 1, 2020 and payable tothe County of Alameda (County A1 Loan) and secured by a deed of trust. Theloan bears simple interest at a rate of 3.00%. Principal and interest paymentsare made on May 1 of each calendar as residual receipts permits. Maturity dateis August 1, 2075. 8,093,414Note payable in the amount of $633,912 dated August 1, 2020 and payable tothe City of Alameda (CDBG loan) and secured by a deed of trust. The loan bearssimple interest at a rate of 2.33%. Principal and interest payments are made asresidual receipts permit. Maturity date is April 1, 2074 633,912Note payable in the amount of $515,683 dated March 24, 2021 and payable tothe City of Alameda (HOME Fund) and secured by a subordinate deed of trust.The loan bears simple interest at a rate of 3.00% per annum. Principal andinterest payments are made on May 1 from residual receipts and all unpaidprincipal and interest are due August 5, 2075. 516,683Note payable to Greystone Servicing Company LLC with maximum borrowingsof $13,858,000, secured by a deed of trust, accrues interest at 3.44% andrequires monthly payments of $51,113. The Greystone Loan is due on September1, 2040. 12,245,350Lakehurst and Mosley LP (Estuary I)Note payable to the California Municipal Finance Authority ("CFMA") in theprincipal amount of $27,184,366, secured by a deed of trust. The loan accruedinterest at a rate equal to daily SOFR plus 2.5% (6.72% as of December 31,2024). Interest-only payments are due monthly through the construction loanmaturity on December 1, 2026, at which time the loan shall convert to thepermanent phase. During the permanent phase, principal and interest paymentsare due monthly through the term loan maturity date, at which time alloutstanding principal and accrued interest shall be due and payable. 15,596,079Note payable to AAHC in the amount of $3,438,000. The note bears no interestand is secured by a deed of trust. Commencing May 1, 2025, annual principalpayments from residual receipts, through maturity on June 30, 2081, at whichtime outstanding principal shall by due and payable. 3,438,000Note payable to Bank of America, N.A. in the principal amount of $25,319,089,secured by a deed of trust. The loan accrues interest at a rate equal to dailySOFR, plus 2.5% (6.81% as of December 31, 2024). Interest only payments aredue monthly through maturity on June 30, 2026, at which time all outstandingprincipal and accrued interest shall be due and payable. 8,308,249Note payable to AAHC in the principal amount of $5,000,000. The note accruessimple interest at 3.00% and is secured by a deed of trust. Commencing on May1, 2025, annual principal and interest payments from residual receipts, throughmaturity on June 30, 2081, at which time all outstanding principal and accruedinterest shall by due and payable. 5,000,00040 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 10. BONDS AND NOTES PAYABLE (continued)DescriptionAmountVarious notes payable to the City of Alameda in the principal amounts totaling$1,398,282, which accrue simple interest at 3.00% and are secured by deeds oftrust. Commencing on May 1, 2026, annual principal and interest paymentsfrom residual receipts, through maturity on June 30, 2081, at which time alloutstanding principal and accrued interest shall by due and payable. 1,398,282Total bonds and notes payable to other lenders 61,432,156Less: unamortized debt issuance costs (2,136,160)Total bonds and notes payable $ 106,987,253Bonds and notes payable for the discretely present component unit is shown net of debt issuancecosts totaling $2,136,160. Future maturities of bonds and notes payable for the discretelypresented component unit are as follows:December 31, 2025 $ 382,2592026 24,303,8372027 417,5812028 436,0262029 456,320 Thereafter 83,127,390Total bonds and notes payable $ 109,123,413Accrued interest payable as of June 30, 2025 and interest expense as of and for the year thenended for the discretely presented component unit totaled $4,235,599 and $1,597,120,respectively.For the year ended June 30, 2025, the effective interest rates approximated the stated interestrates. NOTE 11. OTHER LIABILITIESNon-current liabilities of the primary government as of June 30, 2025 consisted of the following:Description June 30, 2024 Additions Payments June 30, 2025Amounts due withinone YearBonds and notes payable $28,453,774 $ - $ (2,106,446) $26,347,328 $ 568,808Accrued pension liability 3,553,055 1,420,600 (1,436,560) 3,537,095 -Compensated absences 356,124 211,460 - 567,584 414,596Other liabilities 250,492 175,795 (168,774) 257,513 257,513Lease liability 215,089-(72,467)142,62276,174Total long-term liabilities $32,828,534$ 1,807,855$ (3,784,247)$30,852,142$ 1,317,09141 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 11. OTHER LIABILITIES (continued)Non-current liabilities of the discretely presented component unit as of June 30, 2025 consistedof the following:Description June 30, 2024 Additions Payments June 30, 2025Amounts due withinone YearBonds and notes payable $ 70,131,336 $40,207,415 $ (3,351,498) $ 106,987,253 $ 382,259Other liabilities 158,7061,452,254(76,967)1,533,99330,024Total long-term liabilities $70,290,042$41,659,669$ (3,428,465)$ 108,521,246$ 412,283NOTE 12. RESTRICTED NET POSITIONRestricted net position consists of the following as of June 30, 2025:DescriptionPrimaryGovernmentDiscretelyPresentedComponentUnitTotalReporting Entity(MemorandumOnly)Housing assistance payment reserves $ 394,747$ - $ 394,747Replacement reserves 2,224,399 - 2,224,399Project reserves 195,270 1,203,356 1,398,626Emergency housing vouchers 59,472 - 59,472OPEB asset 607,407-607,407Total restricted net position $ 3,481,295$ 1,203,356$ 4,684,651Housing assistance payment reserves are restricted for use only in the Moving to WorkDemonstration programs.Replacement reserves represent funds held in reserve for future project expenditures inaccordance with various regulatory agreements.Project reserves are reserves that are required to be set aside for future project expendituresaccording to the respective regulatory agreement.Emergency housing vouchers reserves are restricted for use only in the Emergency HousingVouchers Program for program expenditures.OPEB assets are restricted for future benefits in the Authority's OPEB Plan. 42 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 13. COMMITMENTS AND CONTINGENCIESThe Authority receives financial assistance from HUD in the form of grants and subsidies.Entitlement to the funds is generally conditional upon compliance with terms and conditions ofthe grant agreements and applicable regulations, including the expenditure of funds for eligiblepurposes. Substantially all grants, entitlements and cost reimbursements are subject to financialand compliance audits by HUD. As a result of these audits, costs previously reimbursed could bedisallowed and require repayments to HUD. As of June 30, 2025, the Authority estimates that no material liabilities will result from suchaudits.NOTE 14. PENSION PLANA. Plan DescriptionThe plan is a cost-sharing multiple-employer defined benefit pension plan administered byCalPERS. A full description of the pension plan benefit provisions, assumptions for fundingpurposes but not accounting purposes and membership information, is listed in the June 30, 2021Annual Actuarial Valuation Report. This report is a publicly available valuation report that can beobtained at CalPERS' website under "Forms and Publications". All qualified permanent andprobationary employees are eligible to participate in the Authority's cost-sharing multiple-employer defined benefit pension plans administered by CalPERS. Benefit provisions under theplans are established by State statute and the Authority's resolution. CalPERS issues publiclyavailable reports that include a full description of the pension plans regarding benefit provisions,assumptions and membership information that can be found on the CalPERS website.B. Benefits ProvidedCalPERS provides service retirement and disability benefits, annual cost of living adjustmentsand death benefits to plan members, who must be public employees and beneficiaries. Benefitsare based on years of credited service, equal to one year of full-time employment. Members withfive years of total service are eligible to retire at age 50 with statutorily reduced benefits. Allmembers are eligible for non-duty disability benefits after 10 years of service. The death benefit isone of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the OptionalSettlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specifiedby the Public Employees' Retirement Law.43 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 14. PENSION PLAN (continued)B. Benefits Provided (continued)The plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:Miscellaneous PlanHire date Prior to January 1,2013On or AfterJanuary 1, 2013Benefit formula 2% @ 55 2% @ 62Benefit vesting formula 5 years of service 5 years of serviceBenefit payments Monthly or life Monthly or lifeRetirement age 50-63 52-67Monthly benefits, as a % of eligiblecompensation1.426% to 2.418% 1.0% to 2.5%Required employee contribution rates 7.00% 8.25%Required employer contribution rates 13.31% + $104,052 8.18% + $12C. ContributionsSection 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that theemployer contribution rates for all public employers be determined on an annual basis by theactuary and shall be effective on the July 1 following notice of a change in the rate. Fundingcontributions for the Miscellaneous Plan are determined annually on an actuarial basis as of June30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance thecosts of benefits earned by employees during the year, with an additional amount to finance anyunfunded accrued liability. The Authority is required to contribute the difference between theactuarially determined rate and the contribution rate of employees. The Authority's contributionsto the plan for the measurement year ended June 30, 2024, were $624,893. The Authority'scontributions to the pension plan after the measurement year were $695,280 in 2025.D. Pension Liabilities, Pension Expense, Deferred Outflows of Resources, DeferredInflows of Resources Related to PensionsThe Authority's net pension liability of $3,537,095 is measured as the proportionate share of thenet pension liability. The net pension liability was measured as of June 30, 2024, and the totalpension liability was determined by an actuarial valuation as of June 30, 2023. The Authority’sproportion of the net pension liability was based on a projection of the Authority’s long-termshare of the contributions to the pension plan relative to the projected contributions of allparticipating employers, actuarially determined. At June 30, 2024, the Authority’s proportion was0.07106 percent, which was an increase of 0.007313 percent from its proportion measured as ofJune 30, 2023.For the year ended June 30, 2025, the Authority recognized pension expense of $1,420,600. AtJune 30, 2025, the Authority reported deferred outflows of resources and deferred inflows ofresources related to pensions from the following:44 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 14. PENSION PLAN (continued)D. Pension Liabilities, Pension Expense, Deferred Outflows of Resources, DeferredInflows of Resources Related to Pensions (continued)DeferredOutflows ofResourcesDeferredInflows ofResourcesChanges in Assumptions $ 90,911 $ -Adjustments due to differences in proportions 696,651 -Differences between expected and actual experience 305,814 11,932Net differences between actual and projected earnings on pension plan investments 203,626 -Net differences between proportionate share of required contribution and actual contribution - 402,096Contribution subsequent to the measurement date 695,280-Total $ 1,992,282$ 414,028The $695,280 reported as deferred outflows of resources related to pensions, will be recognizedas a reduction of the net pension liability in the year ended June 30, 2026. Other amountsreported as deferred outflows of resources and deferred inflows of resources related to pensionswill be recognized in pension expense as follows: Years ending June 30: Amount 2026 $ 491,911 2027 451,595 2028 9,247 2029 (69,779)$ 882,974E. Actuarial Methods and Assumptions Used to Determine Total Pension LiabilityThe total pension liabilities were determined using the following assumptions:Valuation date June 30, 2023Measurement date June 30, 2024Salary increase Varies by entry age and service Discount rate 6.90%Inflation 2.30Investment rate of return 6.90%, net of pension plan investment andadministrative expenses; includes inflation Post retirement benefit increase The lessor of contract COLA or 2.50% untilPurchasing Power Protection Allowance Flooron Purchasing Power Applies, 2.5% thereafter45 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 14. PENSION PLAN (continued)E. Actuarial Methods and Assumptions Used to Determine Total Pension Liability(continued)The mortality table used was developed based on CalPERS-specific data. The probabilities ofmortality are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019. Pre-retirement and Post-retirement mortality rates include generational improvement using 80% ofScale MP-2020 published by the Society of Actuaries. For more details on this table, please refer tothe 2021 CalPERS Experience Study and Review of Actuarial Assumptions report that can befound on the CalPERS website. The long-term expected rate of return on pension plan investments was determined using abuilding-block method in which best-estimate ranges of expected future real rates of return(expected returns, net of pension plan investment expense and inflation) are developed for eachmajor asset class. In determining the long-term expected rate of return, CalPERS took into account long-termmarket return expectations as well as the expected pension fund cash flows. Projected returns forall asset classes are estimated and, combined with risk estimates, are used to project compound(geometric) returns over the long term. The discount rate used to discount liabilities was informedby the long-term projected portfolio return. The expected real rates of return by asset class are asfollows: Asset ClassNew StrategicAllocationReal Return (a) (b)Global Equity - Cap-weighted30.00%4.54%Global Equity - Non-Cap-weighted 12.00% 3.84%Private Equity 13.00% 7.28%Treasury 5.00% 0.27%Mortgage-backed Securities 5.00% 0.50%Investment Grade Corporates 10.00% 1.56%High Yield 5.00% 2.27%Emerging Market Debt 5.00% 2.48%Private Debt 5.00% 3.57%Real Assets 15.00% 3.21%Leverage (5.00%)(0.59%)100.00%(a) an expected inflation of 2.30% used for this period(b) figured are based on the 2021-22 Asset Liability Management studyF. Discount RateThe discount rate used to measure the total pension liability was 6.90 percent. The projection ofcash flows used to determine the discount rate assumed that employee contributions will be madeat the current contribution rate and that contributions from employers will be made at statutorilyrequired rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciarynet position was projected to be available to make all projected future benefit payments of currentactive and inactive employees. Therefore, the long-term expected rate of return on pension planinvestments was applied to all periods of projected benefit payments to determine the totalpension liability. 46 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 14. PENSION PLAN (continued)G. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes inthe Discount Rate The following presents the Authority’s proportionate share of the net pension liability calculatedusing the discount rate of 6.90 percent, as well as what the Authority’s proportionate share of thenet pension liability would be if it were calculated using a discount rate that is 1-percentage-pointlower or 1-percentage-point higher than the current discount rate: 1% Decrease (5.90%)Current Discount Rate(6.90%)1% Increase (7.90%)Net pension liability $ 7,172,164$ 3,537,095$ 544,897NOTE 15. OTHER POST EMPLOYMENT BENEFITSA. Plan descriptionThe Authority participates in the CalPERS 2% at 55 Public Agency Miscellaneous Employees'pension plan for all regular employees hired before January 1, 2013, and 2% at 62 for those hiredon or after January 1, 2013. Employees who retire with a CalPERS pension (at least age 50, or age52 for employees hired on or after January 1, 2013, with five years of services) are eligible forpost-employment medical benefits.The Authority contributes the minimum amount provided under Government Code Section22825 of the Public Employees Medical and Hospital Care Act ($157 per month in 2024,increasing to $158 in 2025). Retirees must contribute any premium amounts in excess of theAuthority's contributions described above. Amounts paid by the Authority continue for thelifetime of the retiree and any surviving spouse, subject to CalPERS' eligibility requirements.During the July 1, 2017 to June 30, 2018 measurement period, the Authority entered into anagreement with CalPERS whereby the Authority participates in the California Employers’ RetireeBenefit Trust Fund Program ("CERBT"), an agent-multiple employer post-employment healthplan, to prefund other post-employment benefits through CalPERS. The financial statements forCERBT may be obtained by writing the California Public Employees’ Retirement System,Constituent Relations Office, CERBT (OPEB), P.O. Box 242709, Sacramento, California 94229-2709, or by calling 888-225-7377.B. Plan Membership InformationActive plan members 46Inactive plan members or beneficiaries currently receiving benefits 12Total 5847 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 15. OTHER POST EMPLOYMENT BENEFITS (continued)C. Funding PolicyThe Authority intends to contribute the full actuarially determined contribution to the plan eachyear. Contributions would be made up of cash contributions made to the trust as well as anybenefit payments (implicit and explicit) unreimbursed by the trust.Actuarial Methods and AssumptionsValuation date June 30, 2024Measurement date June 30, 2024Payroll increases 3.25% annual increasesDiscount rate 6.40%Investment rate of return 6.00%, net of OPEB plan investment expenseNet investment return 6.40%, based on the CERBT Strategy 1investment policyInflation rate 2.50%Mortality rates were based on the most recent experience study for CalPERS members. D. Discount RateGASB 75 requires the use of a discount rate that considers the availability of the OPEB plan’sfiduciary net position associated with the OPEB of current active and inactive employees and theinvestment horizon of those resources.OPEB plans with irrevocable trust accounts can utilize a discount rate equal to the long-termexpected rate of return to the extent that the OPEB plan’s fiduciary net position is projected to besufficient to make projected benefit payments and the OPEB plan assets are expected to beinvested using a strategy to achieve that return. To determine if the OPEB plan assets are sufficient, a calculation of the projected fiduciary netposition and the amount of projected benefit payments is compared in each period. When OPEBplan assets are determined to not be sufficient, a blended rate is calculated. For OPEB plans that do not have irrevocable trust accounts, GASB 75 requires a discount rateequal to the yield or index rate for 20-year, tax-exempt general obligation municipal bonds withan average rating of AA/Aa or higher. The Authority has an irrevocable trust account for prefunding OPEB liabilities. Plan assets areexpected to be sufficient. The discount rate used to measure the total OPEB liability is equal to thelong-term expected rate of return. 48 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 15. OTHER POST EMPLOYMENT BENEFITS (continued)D. Discount Rate (continued)The long-term expected rate of return on OPEB plan investments was determined using abuilding-block method in which best-estimate ranges of expected future real rates of return(expected returns, net of OPEB plan investment expense and inflation) are developed for eachmajor asset class. These ranges are combined to produce the long-term expected rate of return byweighting the expected future real rates of return by the target asset allocation percentage and byadding expected inflation. The target allocation and best estimates of real rates of return for eachmajor asset class, based on published capital market assumptions, are summarized in thefollowing table: Investment ClassAssumed AssetAllocation Real Rate ofReturnGlobal Equity49.00%6.80%Fixed income 23.00% 3.70%TIPS 5.00% 2.80%REITs 20.00% 6.0%Other (Commodities) 3.00% 3.40%E. Changes in the Net OPEB Liability (Asset)The total OPEB liability (asset) shown below is based on an actuarial valuation performed as ofJune 30, 2024, and a measurement date of June 30, 2024:Total OPEBLiabilityPlan FiduciaryNet PositionNet OPEBLiability (Asset)Balance at June 30, 2023 $ 1,403,434$ 1,452,552$ (49,118)Changes for the year:Service cost 110,025 - 110,025Interest 89,459 - 89,459Differences between expected and actual experience (602,081) - (602,081)Changes of assumptions 3,655 - 3,655Net investment income - 160,218 (160,218)Benefit payments (45,617) (45,617) -Administrative expense -(871)871Net changes (444,559)113,730(558,289)Balance at June 30, 2024 $ 958,875$ 1,566,282$ (607,407)49 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 15. OTHER POST EMPLOYMENT BENEFITS (continued)F. Sensitivity of the Net OPEB Liability (Asset) Due to Changes in the Discount RateThe following table represents the net OPEB liability (asset), calculated using the current discountrate of 6.40%, as well as what it would be if it were calculated using a discount rate that is onepercentage point lower (5.40%) or one percentage point higher (7.40%) than the current rate:1% Decrease (5.40%)Current Discount Rate(6.40%)1% Increase (7.40%)Net OPEB liability (asset) $ (472,723)$ (607,407)$ (719,446)G. Sensitivity of the Net OPEB Liability (asset) Due to Changes in the Health CareCost Trend RateThe following table represents the net OPEB liability (asset) of the Authority, calculated using thecurrent health care cost trend rate as well as what it would be if it were calculated using a trendrate that is one percentage point lower or one percentage point higher than the current rate:1% Decrease Discount Rate 1% Increase Net OPEB liability (asset) $ (738,417)$ (607,407)$ (445,756)H. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEBFor the year ended June 30, 2025, the Authority recognized an OPEB benefit in the amount of$121,270. At June 30, 2025, the Authority reported deferred outflows of resources and deferredinflows of resources from the following sources:DeferredOutflows ofResourcesDeferredInflows ofResourcesChanges in Assumptions $ 167,132 $ 61,297Differences between expected and actual experience 12,491 745,977Net differences between projected and actual earnings 28,166-Total $ 207,789$ 807,274Amounts reported as deferred outflows of resources and deferred inflows of resources related toOPEB will be recognized in OPEB expense as follows: 50 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 15. OTHER POST EMPLOYMENT BENEFITS (continued)H. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB(continued)Years ending June 30:Recognized DeferredOutflows/Inflows ofResources 2026 $ (94,193) 2027 (44,168) 2028 (109,415) 2029 (92,352) 2030 (61,845) Thereafter (197,512)$ (599,485)NOTE 16. GUARANTEESAAHC (Esperanza Apartments)Related to the Esperanza property located at 1903 3rd Street, the Authority entered into aMultifamily Loan and Security Agreement dated June 30, 2014. The Authority and the now legalowner AAHC continues to act as the guarantor for this non-recourse permanent loan.Sherman and Buena Vista LP (Littlejohn Commons)Related to the Littlejohn Commons Senior property located at 1301 Buena Vista Avenue, theAuthority entered into a guaranty agreement dated December 1, 2016, and attached as Exhibit Eto the amended and restated limited partnership agreement of Sherman and Buena Vista LP forall of its obligations under that agreement, including partnership management duties,development completion, operating deficits, tax credit delivery, and repurchase obligations. TheAuthority is released from this operating deficit obligation after two consecutive years of 1.15 debtservice coverage ratio after stabilized occupancy and no sooner than 2020. As of June 30, 2025,the outstanding operating deficit obligation is no longer in effect.Everett and Eagle LP (Everett Commons)Related to the Everett Commons property located at 2437 Eagle Avenue, the Authority enteredinto a guaranty agreement dated June 27, 2017, and attached as Exhibit D to the first amendedand restated limited partnership agreement of Everett and Eagle LP for performance of all itsobligations under that agreement, including construction completion, operating deficits, liquidity,and tax credit delivery. The operating deficit loan guarantee obligation is up to $314,000. TheAuthority is released from this operating deficit obligation after two consecutive years of 1.15 debtservice coverage ratio after stabilized occupancy and no sooner than 2024. As guarantor, theAuthority must also maintain liquid assets of at least $850,000 in bank deposits in aggregate withIsland City Development until all obligations are met.51 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 16. GUARANTEES (continued)Constitution and Eagle LP (Rosefield Village)Related to the Rosefield Village property located at the cross street of Constitution and EagleAvenue, the Authority entered into a guaranty agreement dated August 2020, and attached asExhibit D to the first amended and restated limited partnership agreement of Constitution &Eagle LP for performance of all its obligations under that agreement, including constructioncompletion, operating deficits, liquidity and tax credit delivery. The operating deficit loanguarantee is up to $792,000. The Authority is released from this operating deficit obligation aftertwo consecutive years of 1.15 debt service coverage ratio after stabilized occupancy and no soonerthan 2024. Related to the Rosefield Village property located at the cross street of Constitution andEagle Avenue, the Authority entered into a payment and performance guaranty dated August2020, with Bank of America, N.A. related to a construction loan of $40,322,758. As of June 30,2025, the operating deficit loan guarantee is no longer in effect.Lakehurst and Mosley (Estuary I)Related to the Estuary I property that is in construction in progress located at 500 MosleyAvenue, the Authority and its affiliates entered into multiple legal agreements, including the Bankof America, N.A. construction loans (recourse), limited partnership agreement for Lakehurst andMosley LP amongst other soft lenders. Various guarantees have been made by the Authority andits legal affiliates, including a payment guaranty on the construction loan of $25 Million,Performance Guaranty to complete by August 2025 (including prompt payment of applicableproperty assessments and maintenance of insurance coverage), Loss of Subsidy Guaranty and anOperating Deficit Guaranty up to $487,000 by Island City Development (discretely presentedcomponent unit) for 2 years commencing in year 3 after stabilization, totaling 5 years.Mabuhay and Lakehurst LP (Linnet Corner)Related to the Linnet Corner property that is in construction in progress located at 2000Lakehurst Circle, the Authority and its affiliates entered into multiple legal agreements, includingthe Bank of America, N.A. construction loan (recourse), limited partnership agreement forMabuhay and Lakehurst LP amongst other soft lenders. Various guarantees have been made bythe Authority and its legal affiliates, including Payment Guaranty, Covenant Guaranty,Performance Guaranty to complete by October 2025 (including prompt payment of applicableproperty assessments and maintenance of insurance coverage) and a Loss of Subsidy Guaranty.NOTE 17. GROUND LEASESThe Authority was the lessor in several ground leases as of June 30, 2025. Upon the adoption ofGASB 87 in fiscal year 2022, certain prepaid ground leases were reclassified to deferred inflows ofresources on the Authority's Statement of Net Position. These ground leases consisted of thefollowing:On December 1, 2016, the Authority entered into a ground lease agreement with Sherman andBuena Vista LP, a subsidiary of Island City Development, for the property located at 1301 BuenaVista Avenue known as Littlejohn Commons. The lease term is 99 years, ending December 31,2115. Unearned rent for the entire lease term of $3,410,000 was received on December 15, 2016.Unearned revenue will be amortized over the term of the life. As of June 30, 2025, the balance indeferred inflows of resources was $3,114,390. On August 1, 2020, the Authority entered into a ground lease agreement with Constitution andEagle, LP, a subsidiary of Island City Development, for the property known as Rosefield Villageand located at 717, 727 Buena Vista Avenue and 738, 740, 742, 746 Eagle Avenue. The lease termis 75 years, ending December 31, 2095. Prepaid rent for the entire lease term of $13,110,000 waspaid via the execution of a seller note on August 1, 2020. As of June 30, 2025, the balance indeferred inflows of resources was $12,265,114.52 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 17. GROUND LEASES (continued)On January 1, 2024, the Authority entered into a ground lease agreement with Lakehurst andMosley, LP to develop land by constructing units thereon such that land and improvements willcontain 45 units of housing known as Estuary I. The lease term is 99 years, ending December 31,2123. Prepaid rent for the entire lease term of $2,061,601 was paid via the execution of a sellernote on the closing date. As of June 30, 2025, the balance in deferred inflows of resources was$2,030,677.As of June 30, 2025, the future rental income to be recognized under the prepaid ground leases isas follows:Years ending June 30: Amount 2026 $ 229,860 2027 229,860 2028 229,860 2028 229,860 2030 229,860 Thereafter 16,260,881$ 17,410,181The remaining ground leases do not meet the reporting requirements of GASB 87, and areidentified below. On December 1, 1998, the Authority entered into a ground lease agreement with Regent Street.CLT Condominiums located at 1129-1131 Regent Street. The lease term is 99 years, ending in2097. Pursuant to the ground lease agreement, the base annual rent is adjusted by the consumerprice index. As of the fiscal year ending June 30, 2025, that amount is $2,748.On May 7, 2001, the Authority entered into a ground lease agreement with Santa Clara Ave CLTCondominiums located at 2201-2203 Santa Clara Avenue and 1502 Walnut Street. The lease termis 99 years, ending in 2100. Pursuant to the ground lease agreement, the base annual rent isadjusted by the consumer price index. As of the fiscal year ending June 30, 2025, that amount is$2,616. On March 14, 2003, the Authority entered into a ground lease agreement with RCD, as amendedby the First Amendment to Ground Lease dated October 14, 2004, for the Breakers at Bayportdevelopment located at 459 Neptune Gardens Avenue. The lease term is 75 years, ending March31, 2081. On October 14, 2004, the lease was assigned to Breakers at Bayport, LP. The rent will beamortized over the term of the lease in the amount of $1, annually.On October 4, 2006, the Authority entered into a ground lease agreement with RCD for theShinsei Gardens Apartments, located at 401 Willie Stargell Avenue. The lease term is 75 years,ending March 31, 2081. On March 24, 2008, the lease was assigned to Shinsei GardensApartments, LP. The rent will be amortized over the term of the lease in the amount of $1,annually. Island City Development has an equity interest in Shinsei Gardens Apartments, LP,please refer to Note 1 – Discretely Presented Component UnitOn May 25, 2012, the Authority entered into a ground lease agreement with Housing Consortiumof the East Bay ("HCEB") and Satellite Housing, Inc. for the Jack Capon Villas, located at 2216Lincoln Avenue. The rent for the entire lease term, $100, was prepaid at lease signing. The leaseterm is 75 years, ending May 25, 2087. In November 2012, the lease was assigned to Jack CaponVillas, LP. The rent will be amortized over the term of the lease in the amount of $1, annually.53 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 17. GROUND LEASES (continued)On November 14, 2015, the Authority entered into a ground lease agreement with StargellCommons, LP for the property located at 2700 Bette Street known as Stargell CommonsApartments. The lease term is 99 years, ending December 31, 2114. Initial rent of $400,000 plus$1 per year for the entire term. Prepaid rent for the entire lease term of $99 was paid onDecember 2, 2015. The rent will be amortized over the term of the lease in the amount of $4,041,annually. Island City Development has an equity interest in Stargell Commons, LP, please refer toNote 1 – Discretely Presented Component UnitOn June 1, 2017, the Authority entered into a ground lease agreement with Everett and Eagle LP,a subsidiary of Island City Development, for the property located at 2437 Eagle Street known asEverett Commons. The lease term is 99 years, ending June 1, 2116. Prepaid rent for the entirelease term of $9,900 was paid on June 29, 2017. The rent will be amortized over the term of thelease in the amount of $100, annually.On May 1, 2018, the Authority entered into a ground lease agreement with AAHC, blendedcomponent unit, for the property known as Anne B. Diament located at 920 Park Street. The leaseterm is 75 years, ending May 1, 2093. Prepaid rent for the entire lease term of $75 was paid onMay 1, 2018. The rent will be amortized over the term of the lease in the amount of $1, annually.On May 1, 2018, the Authority entered into a ground lease agreement with AAHC, blendedcomponent unit, for the property known as China Clipper Plaza located at 460 Buena VistaAvenue. The lease term is 75 years, ending May 1, 2093. Prepaid rent for the entire lease term of$75 was paid on May 1, 2018. The rent will be amortized over the term of the lease in the amountof $1, annually.On May 1, 2018, the Authority entered into a ground lease agreement with AAHC, blendedcomponent unit, for the property known as Lincoln Willow Apartments located at 2101-2103Lincoln Avenue. The lease term is 75 years, ending May 1, 2093. Prepaid rent for the entire leaseterm of $75 was paid on May 1, 2018.The rent will be amortized over the term of the lease in theamount of $1, annually.On May 1, 2018, the Authority entered into a ground lease agreement with AAHC, blendedcomponent unit, for the property known as Stanford House and located at 1917 Stanford Avenue.The lease term is 75 years, ending May 1, 2093. Prepaid rent for the entire lease term of $75 waspaid on May 1, 2018. The rent will be amortized over the term of the lease in the amount of $1,annually.On March 1, 2024, the Authority entered into a a ground lease agreement with Mabuhay andLakehurst, LP, a subsidiary of Island City Development, to develop land by constructing unitsthereon such that land and improvements will contain 64 units of housing known as LinnetCorner. Commencing on May 1, 2025, and on May 1 of each calendar year thereafter through theend of the Lease Term (December 31, 2123), Mabuhay and Lakehurst, LP shall pay to theAuthority annual rent equal to the lesser of the sum of $65,450 (which is equal to 4.25% of$1,540,000) plus any unpaid rent for a previous calendar year together with any interest thereonas provided by Cash Flow (as defined by the ground lease agreement). To the extent not paid withrespect to any calendar year, the rent shall accrue and bear interest at 4.40%, compoundedannually, until paid. Any unpaid rent shall be due from Mabuhay and Lakehurst, LP to theAuthority upon any termination of the lease.54 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 18. CONDENSED FINANCIAL INFORMATION FOR THE BLENDED COMPONENTUNITAlamedaAffordableHousingCorporationAssets:Current assets $ 2,248,193Capital assets, net 10,223,151Other non-current assets 12,804,325Deferred outflows of resources 189,453Total assets and deferred outflows of resources 25,465,122Liabilities:Current 46,133,829Non-current 20,639,931Deferred inflows of resources 301,395Total liabilities 67,075,155Net Position:Net investment in capital assets (10,467,565)Restricted 333,842Unrestricted (31,476,310)Net position $ (41,610,033)Operating revenues:Tenant revenue $ 3,222,972Government grants 9,892,863Other revenues 280,130Total operating revenues 13,395,965Operating expenses:Administrative 4,657,935Tenant services 726,113Maintenance and utilities 3,466,442Protective services 1,263Insurance 497,934General expenses 192,541Depreciation 830,979Total operating expenses 10,373,207Other income (expense)Interest income 39,589Interest expense (925,205)Net other expense (885,616)Net income before transfers 2,137,142Transfer in (out)* 21,317,850Total special items and transfers 21,317,850Net income $ 23,454,992* This is a non-cash related party transaction with the Authority and is eliminated frompresentation upon consolidation.55 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO FINANCIAL STATEMENTS (continued)JUNE 30, 2025NOTE 19. SUBSEQUENT EVENTSEvents that occur after the financial statement date but before the financial statements wereavailable to be issued must be evaluated for recognition or disclosure. The effects of subsequentevents that provide evidence about conditions that existed at the financial statement date arerecognized in the accompanying financial statements. Subsequent events which provide evidenceabout conditions that existed after the financial statement date require disclosure in theaccompanying notes to the financial statements. Management evaluated the activity of theAuthority through March 24, 2026 (the date the financial statements were available to be issued)and determined that the following subsequent events require disclosure:Estuary I (Lakehurst and Mosley, LP ) and Linnet Corner (Mabuhay and Lakehurst, LP) have fullyleased up. It is anticipated these 2 properties will convert to permanent financing in 2026.Additionally, as the loan between AAHC and PNC Bank, National Association, that is secured bythe properties known as Eagle Village and Parrot Village will August 1, 2026, staff has issued arequest for proposals with lenders to for refinancing options. 56 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDSTo the Board of CommissionersHousing Authority of the City of Alameda:We have audited, in accordance with the auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States, the financial statements of the business type activities (primarygovernment) and the discretely presented component unit of the Housing Authority of the City of Alameda (the"Authority") as of, and for the year ended June 30, 2025 and the related notes to the financial statements, whichcollectively comprise the Authority's financial statements, and have issued our report thereon dated March 24,2026.Our report includes a reference to other auditors who audited the financial statements of Island CityDevelopment and Subsidiaries, the discretely presented component unit, as described in our report on thefinancial statements of the Authority. The audit of Island City Development and Subsidiaries was notperformed in accordance with Government Auditing Standards. This report does not include the resultsof testing of internal control over financial reporting or compliance and other matters for Island CityDevelopment and Subsidiaries.Report on Internal Control Over Financial ReportingIn planning and performing our audit of the financial statements, we considered the Authority's internal controlover financial reporting (internal control) to determine the audit procedures that are appropriate in thecircumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express anopinion on the effectiveness of the Authority’s internal control.A deficiency in internal control exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internalcontrol, such that there is a reasonable possibility that a material misstatement of the entity’s financial statementswill not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or acombination of deficiencies, in internal control that is less severe than a material weakness, yet important enoughto merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses orsignificant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internalcontrol that we consider to be material weaknesses. However, material weaknesses or significant deficiencies mayexist that were not identified.57 Report on Compliance and Other MattersAs part of obtaining reasonable assurance about whether the Authority's financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thefinancial statements. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government Auditing Standards.Purpose of this ReportThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and theresults of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or oncompliance. This report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the Authority’s internal control and compliance. Accordingly, this communication is notsuitable for any other purpose.March 24, 2026Toms River, New Jersey 58 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVERCOMPLIANCE REQUIRED BY THE UNIFORM GUIDANCETo the Board of CommissionersHousing Authority of the City of Alameda:Report on Compliance for Each Major Federal ProgramOpinion on Each Major Federal ProgramWe have audited the Housing Authority of the City of Alameda's (the "Authority") compliance with the types ofcompliance requirements described in the Uniform Guidance that could have a direct and material effect on eachof the Authority’s major federal programs for the year ended June 30, 2025. The Authority's major federalprograms are identified in the summary of auditors' results section of the accompanying schedule of findings andquestioned costs. In our opinion, the Authority complied, in all material respects, with the types of compliance requirementsreferred to above that could have a direct and material effect on each of its major federal programs for the yearended June 30, 2025.Basis for Opinion on Each Major Federal ProgramWe conducted our audit of compliance in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance).Our responsibilities under those standards and the Uniform Guidance arefurther described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordancewith relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Ouraudit does not provide a legal determination of the Authority’s compliance with the compliance requirementsreferred to above.Responsibilities of Management for ComplianceManagement is responsible for compliance with the requirements referred to above and for the design,implementation, and maintenance of effective internal control over compliance with the requirements of laws,statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Authority’s federalprograms.59 Auditors' Responsibilities for the Audit of ComplianceOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliancerequirements referred to above occurred, whether due to fraud or error, and express an opinion on the Authority’scompliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assuranceand therefore is not a guarantee that an audit conducted in accordance with generally accepted auditingstandards, Government Auditing Standards, and the Uniform Guidance, will always detect materialnoncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higherthan for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control. Noncompliance with the compliance requirementsreferred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, itwould influence the judgment made by a reasonable user of the report on compliance about the Authority’scompliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government AuditingStandards, and the Uniform Guidance, we:Exercise professional judgment and maintain professional skepticism throughout the audit.Identify and assess the risks of material noncompliance, whether due to fraud or error, and design andperform audit procedures responsive to those risks. Such procedures include examining, on a test basis,evidence regarding the Authority’s compliance with the compliance requirements referred to above andperforming such other procedures as we considered necessary in the circumstances.Obtain an understanding of the Authority’s internal control over compliance relevant to the audit in order todesign audit procedures that are appropriate in the circumstances and to test and report on internal controlover compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinionon the effectiveness of the Authority’s internal control over compliance. Accordingly, no such opinion isexpressed.We are required to communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and any significant deficiencies and material weaknesses in internal controlover compliance that we identified during the audit.Report on Internal Control over ComplianceA deficiency in internal control over compliance exists when the design or operation of a control over compliancedoes not allow management or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on atimely basis. A material weakness in internal control over compliance is a deficiency, or combination ofdeficiencies, in internal control over compliance, such that there is a reasonable possibility that materialnoncompliance with a type of compliance requirement of a federal program will not be prevented, or detected andcorrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or acombination of deficiencies, in internal control over compliance with a type of compliance requirement of afederal program that is less severe than a material weakness in internal control over compliance, yet importantenough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors'Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies ininternal control over compliance that might be material weaknesses or significant deficiencies in internal controlover compliance. Given these limitations, during our audit we did not identify any deficiencies in internal controlover compliance that we consider to be material weaknesses, as defined above. However, material weaknesses orsignificant deficiencies in internal control over compliance may exist that were not identified.Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control overcompliance. Accordingly, no such opinion in expressed.60 Purpose of this ReportThe purpose of this report on internal control over compliance is solely to describe the scope of our testing ofinternal control over compliance and the results of that testing based on the requirements of the UniformGuidance. Accordingly, this report is not suitable for any other purpose.March 24, 2026Toms River, New Jersey 61 SUPPLEMENTARY INFORMATION
HOUSING AUTHORITY OF THE CITY OF ALAMEDASCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2025FederalGrantor/Program TitleALNumberFederalExpendituresU.S. Department of Housing and Urban Development:Housing Voucher ClusterSection 8 Housing Choice Vouchers 14.871 $ 1,466,812Emergency Housing Voucher 14.EHV 1,306,276Total Housing Voucher Cluster 2,773,088Section 8 Project-Based ClusterSection 8 Moderate Rehabilitation Single Room Occupancy 14.249 295,299Total Section 8 Project-Based Cluster 295,299Moving to Work Demonstration Program 14.881 45,964,888Family Self Sufficiency Program 14.896 117,088Subtotal United States Department of Housing and Urban Development - Direct Programs 49,150,363U.S. Department of Housing and Urban Development - Pass Through Programs:County of Alameda:Shelter Plus Care 14.238 465,195Subtotal Pass Through Programs - County of Alameda 465,195Subtotal U.S. Department of Housing and Urban Development - Pass Through Programs: 465,195Total Expenditures of Federal Awards $ 49,615,558 See Notes to Schedule of Expenditures of Federal Awards.62 HOUSING AUTHORITY OF THE CITY OF ALAMEDANOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2025NOTE 1. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes thefederal grant activity of the Authority under programs of the federal government for the year endedJune 30, 2025. The information in the Schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of operations of the Authority, it is not intended to anddoes not present the financial position, changes in net position or cash flows of the Authority.Therefore, some amounts presented in the Schedule may differ from amounts presented in, or usedin the preparation of the financial statements.NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3. INDIRECT COST RATEThe Authority has elected not to use the ten percent de minimis indirect cost rate allowed under theUniform Guidance. 63 HOUSING AUTHORITY OF THE CITY OF ALAMEDASCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2025I. Summary of Auditors' ResultsFinancial Statement Section1. Type of auditors' report issued: Unmodified2. Internal control over financial reportinga. Material weakness(es) identified? Nob. Significant deficiency(ies) identified? None Reported3. Noncompliance material to the financial statements? NoFederal Awards Section1. Internal control over compliance:a. Material weakness(es) identified? Nob. Significant deficiency(ies) identified? None reported2. Type of auditors' report on compliance for major programs: Unmodified3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No4. Identification of major programs:AL NumberName of Federal ProgramHousing Voucher Cluster:14.871 Section 8 Housing Choice Vouchers Program14.EHV Emergency Housing Vouchers14.881 Moving to Work Demonstration Program5. Dollar threshold used to distinguish between Type A and Type B Programs: $1,488,4676. Auditee qualified as low-risk Auditee? Yes64 HOUSING AUTHORITY OF THE CITY OF ALAMEDASCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)FOR THE YEAR ENDED JUNE 30, 2025II. Financial Statement FindingsThere were no findings relating to the financial statements which are required to be reported in accordancewith Government Auditing Standards. III. Federal Award Findings and Questioned CostsThere were no findings or questioned costs relating to federal awards.IV. Schedule of Prior Year Audit FindingsNone. 65 HOUSING AUTHORITY OF THE CITY OF ALAMEDAREQUIRED PENSION INFORMATIONFOR THE YEAR ENDED JUNE 30, 2025SCHEDULE OF THE AUTHORITY'S PENSION PLAN CONTRIBUTIONSJune 30,2016June 30,2017June 30,2018June 30,2019June 30,2020June 30,2021June 30,2022June 30,2023June 30,2024June 30,2025Actuarially determined contribution $ 1,393,004 $ 1,322,171 $ 336,127$ 381,431 $ 436,954 $ 549,515 $ 591,704 $ 641,420 $ 660,948 $ 624,893Contributions in relationto the contractuallyrequired contribution 1,393,0041,322,171336,127381,431436,9541,549,515591,704641,420660,948624,893(Over) / under funded $ -$ -$ -$ -$ -$(1,000,000)$ -$ -$ -$ -Authority's covered employee payroll $ 2,717,587$ 2,752,784$ 3,906,839$ 4,030,351$ 3,464,574$ 5,232,709$ 5,377,022$ 5,462,735$ 5,432,200$ 6,707,668Contributions as apercentage of coveredemployee payroll %51.26%48.03%8.60%9.46%12.61%29.61%11.00%11.74%12.17%9.32 See report of independent auditors.66
HOUSING AUTHORITY OF THE CITY OF ALAMEDAREQUIRED PENSION INFORMATION (continued)FOR THE YEAR ENDED JUNE 30, 2025SCHEDULE OF THE AUTHORITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY FOR THE LAST TEN FISCAL YEARS***Measurement DateJune 30,2016June 30,2017June 30,2018June 30,2019June 30,2020June 30,2021June 30,2022June 30,2023June 30,2024June 30,2025Authority's proportion of thenet pension liability (asset) %0.0676%0.0485%0.0540%0.5392%0.0613%0.0447%(0.0407)%0.0631%0.0711%0.0731Authority's proportionateshare of the net pensionliability (asset) $ 1,854,640$ 1,684,952$ 2,127,040$ 2,032,192$ 2,454,725$ 1,884,641$ (772,808)$ 2,952,246$ 3,553,055$ 3,537,095Authority's covered employee payroll $ 3,634,051$ 2,752,784$ 3,906,839$ 4,030,351$ 3,464,574$ 5,232,709$5,377,022$ 5,462,735$ 5,432,200$ 6,707,668Authority's proportionateshare of the net pensionliability (asset) as apercentage of its covered-employee payroll %51.04%61.21%54.44%50.42%70.85%36.02%(14.37)%54.04%65.41%52.73Plan fiduciary net position as apercentage of the totalpension liability %79.89%75.87%75.39%77.69%77.73%77.71%90.49%87.64%86.10%86.87Changes in Actuarial Assumptions and Benefit Terms:No changes noted.See report of independent auditors.67 HOUSING AUTHORITY OF THE CITY OF ALAMEDAREQUIRED OTHER POST EMPLOYMENT BENEFIT INFORMATIONFOR THE YEAR ENDED JUNE 30, 2025SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS***Total OPEB Liability (Asset):June 30,2018June 30,2019June 30,2020June 30,2021June 30,2022June 30,2023June 30,2024June 30,2025Service cost $ 162,835 $ 56,590 $ 56,628 $ 59,460 $ 66,881 $ 70,225 $ 86,710 $ 110,025Interest 74,812 89,980 70,891 76,779 69,169 75,712 82,095 89,459Differences between expected and actual experience (3,275) (348,070) (2,338) (161,314) (1,621) 19,184 - (602,081)Changes of assumptions(1,482,802) (17,137) - (41,226) - (48,586) 214,309 3,655Benefit payments, including refunds of employee contributions (30,448)(38,634)(48,803)(45,387)(45,929)(49,945)(40,572)(45,617)Net change in total OPEB liability (asset) (1,278,878)(257,271)76,378(111,688)88,50066,590342,542(444,559)Plan fiduciary net position - beginning 2,477,2611,198,383941,1121,017,490905,802994,3021,060,8921,403,434Plan fiduciary net position - ending $ 1,198,383$ 941,112$ 1,017,490$ 905,802$ 994,302$1,060,892$ 1,403,434$ 958,875See report of independent auditors.68 HOUSING AUTHORITY OF THE CITY OF ALAMEDAREQUIRED OTHER POST EMPLOYMENT BENEFIT INFORMATION (continued)FOR THE YEAR ENDED JUNE 30, 2025SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS*** (continued)Total OPEB Liability (Asset):June 30,2018June 30,2019June 30,2020June 30,2021June 30,2022June 30,2023June 30,2024June 30,2025Plan Fiduciary Net Position:Contributions - employer $ 1,012,388 $ 38,634 $ 124,079 $ 45,387$ 45,929 $ 49,945 $ 40,572 $ -Net investment income (loss) (6,213) 76,420 68,342 42,246 340,154 (211,087) 87,690 160,218Benefit payments, including refunds of employee contributions (30,448) (38,634) (48,803) (45,387) (45,929) (49,945) (40,572) (45,617)Administrative expense (5)(520)(240)(584)(468)(399)-(474)Net change in plan fiduciary net position 975,722 75,900 143,378 41,662 339,686 (211,486) 87,690 114,127Plan fiduciary net position - beginning -975,7221,051,6221,195,0001,236,6621,576,3481,364,8621,452,552Plan fiduciary net position - ending $ 975,722$1,051,622$ 1,195,000$ 1,236,662$ 1,576,348$ 1,364,862$ 1,452,552$ 1,566,679Authority's net OPEB liability (asset) $ 222,661$ (110,510)$ (177,510)$ (330,860)$ (582,046)$ (303,970)$ (48,721)$ (607,407)Plan fiduciary net position as a percentage ofthe total OPEB liability (asset) %81.42 %111.74 %117.45 %136.53 %158.54 %128.65 %103.47%163.00Covered payroll $ 3,906,839$4,030,351$ 3,464,574$3,240,026N/A$ 5,462,735$ 5,301,871$5,808,207Authority's net OPEB liability (asset) as apercentage of its covered-employeepayroll%5.70 %(2.74) %(5.12) %(10.21) N/A%(5.56) %(0.92) %(10.46)*** = These amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However,until a full 10-year trend is compiled, the Authority will present information for those years for which information is available.Changes in Actuarial Assumptions:No changes noted.Changes in Benefit Terms:No changes noted.See report of independent auditors.69 HOUSING AUTHORITY OF THE CITY OF ALAMEDAREQUIRED OTHER POST EMPLOYMENT BENEFIT INFORMATIONFOR THE YEAR ENDED JUNE 30, 2025SCHEDULE OF THE AUTHORITY'S OPEB PLAN CONTRIBUTIONS***June 30,2018June 30,2019June 30,2020June 30,2021June 30,2022June 30,2023June 30,2024June 30,2025Actuarially determined contribution $ 128,377 $ 78,605 $ 60,751 $ 63,789 $ 71,750 $ - $ - $ -Contributions in relation to the contractually required contribution (1,012,388)(38,634)(124,079)(45,387)45,92949,94540,57245,617(Over) / under funded $ (884,011)$ 39,971$ (63,328)$ 109,176$ 25,821$ (49,945)$ (40,572)$ (45,617)Authority's covered-employee payroll $ 3,906,839$ 4,030,351$ 3,464,574$3,240,026N/A$ 5,462,735$ 5,301,871$5,808,207Contributions as a percentage of covered employee payroll %(25.91)%(0.96)%(3.58)%(1.40)N/A%0.91%0.77%0.79*** = These amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However,until a full 10-year trend is compiled, the Authority will present information for those years for which information is available. See report of independent auditors.70 HOUSING AUTHORITY OF THE CITY OF ALAMEDASCHEDULE OF RESIDUAL CASH FLOWSFOR THE YEAR ENDED JUNE 30, 20251416 ShermanStreet (ShermanStreet)745 Lincoln St(Lincoln House)Operating income:Net rental income $ 211,331 $ 83,452Other income 1,129 502Tenant bad debt realized -(34,929)Total operating income 212,46049,025Expenses:Administrative expenses 12,039 5,351Management fee 5,292 2,352Utilities expenses 24,562 5,761Operating and maintenance expense 27,660 18,038Taxes and insurance 16,153 7,179Other general expenses 166,266124,272Total expenses 251,972162,953Residual deficit $ (39,512)$ (113,928)**Statement of Residual Cash Flows reflects section 3d of the promissory notes between the Authority and the County ofAlameda dated March 15, 2011 (for the property located at 1416 Sherman Street, Alameda, California) and datedSeptember 1, 2009 (for the property located at 745 Lincoln Avenue, Alameda, California). Other general expenses denoteowner’s central cost allocation.

See report of independent auditors.71
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Balance Sheet SummaryFiscal Year End: 06/30/20256.1 Component Unit -Discretely Presented14.896 PIH Family Self-Sufficiency Program14.238 Shelter Plus Care$3,660,769 $5,257$1,203,356$123,160$4,987,285 $5,257 $0$10,973 $123,057$46,737$454,545 $320-$409,342 $0$0 $0 $0$91,940 $10,973 $123,377$711,410$0$5,790,635 $16,230 $123,377$5,370,720$66,280,340$2,632,875-$9,615,199$57,885,240$122,553,976 $0 $0$1,646$19,752,871 $1,972$142,306,847 $3,618 $0$21,790$148,097,482 $41,638 $123,377 176 Investments in Joint Ventures 180 Total Non-Current Assets 200 Deferred Outflow of Resources 290 Total Assets and Deferred Outflow of Resources 160 Total Capital Assets, Net of Accumulated Depreciation 171 Notes, Loans and Mortgages Receivable - Non-Current 172 Notes, Loans, & Mortgages Receivable - Non Current - Past Due 173 Grants Receivable - Non Current 174 Other Assets 165 Leasehold Improvements 2 State/Local$21,371,337
166 Accumulated Depreciation 167 Construction in Progress 168 Infrastructure$3,619,865 161 Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration$445,453 $54,119-$360,033 -$29,010 143.1 Allowance for Obsolete Inventories 144 Inter Program Due From 145 Assets Held for Sale$279,027 143 Inventories$21,834 150 Total Current Assets$0 $0$50,029,385-$21,109$36,104$0 $443,689 131 Investments - Unrestricted 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability$36,199 142 Prepaid Expenses and Other Assets$77,798,988$317,074$1,150,673 $59,575,566$0 $2,568,247$6,010,773$20,924,340 $19,549,541$54,576 $189,972-$21,877,491 -$15,942,134$4,199,632$88,381 $57,066$9,882,672 126 Accounts Receivable - Tenants 126.1 Allowance for Doubtful Accounts -Tenants 126.2 Allowance for Doubtful Accounts - Other 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts$58,868,487$0 $10,223,151 $73,640,416$12,188,000$296,271 $622,395$189,453 $1,422,318$0 $22,707,422 $133,131,298$0 $25,465,122 $212,352,604 113 Cash - Other Restricted 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 122 Accounts Receivable - HUD Other Projects 124 Accounts Receivable - Other Government 125 Accounts Receivable - Miscellaneous$53,816,498$1,445,480$141,414 111 Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 100 Total Cash 121 Accounts Receivable - PHA Projects$0 $2,088,359 $23,629,312$0$79,242 $014.871 Housing Choice Vouchers6.2 Component Unit -Blended$320,054 $2,099,615$322,825 $158,360$0 See report of independent auditors. 72
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Balance Sheet SummaryFiscal Year End: 06/30/20256.1 Component Unit -Discretely Presented14.896 PIH Family Self-Sufficiency Program14.238 Shelter Plus Care2 State/Local14.871 Housing Choice Vouchers6.2 Component Unit -Blended $8,702,372 $722 $7,221$4,235,599$1,804,465$122,454$2,161$382,259$30,024$0 $12,144$15,279,334 $12,866 $7,221$106,604,994$1,503,969$22,165$108,108,963 $22,165 $0$123,388,297 $35,031 $7,221$12,493$15,566,723$1,203,356 $1,972$7,939,106 -$7,858 $116,156$24,709,185 -$5,886 $116,156$148,097,482 $41,638 $123,377 600 Total Liabilities, Deferred Inflows of Resources and Equity - Net 513 Total Equity - Net Assets / Position 512.4 Unrestricted Net Position 511.4 Restricted Net Position 355 Loan Liability - Non Current 356 FASB 5 Liabilities 300 Total Liabilities 357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities 310 Total Current Liabilities 508.4 Net Investment in Capital Assets 400 Deferred Inflow of Resources 351 Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 342 Unearned Revenue 344 Current Portion of Long-term Debt - Operating Borrowings 348 Loan Liability - Current 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities 346 Accrued Liabilities - Other 347 Inter Program - Due To 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government 341 Tenant Security Deposits 311 Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion$1,229,765$86,885 $112,872$0$129,427$145,983 $187,672$461,700 $779,077$1,608$317,187 $147,087$31,847 $28,026$227,891 $54,711$567,200$44,488,051 $51,085$139,358 $177,359$0 $46,595,529 $2,769,262$20,123,517 $5,655,003$0$66,448$54,714 $49,280$8,722,763$0 $66,773,760 $11,492,025$0 $2,952,032$0 $20,178,231$0 -$10,467,565 $67,964,975$301,395 $18,155,691$0 $333,842 $2,598,218$0 -$31,476,310 $112,141,695$0 $25,465,122 $212,352,604$0 -$41,610,033 $182,704,888 See report of independent auditors. 73
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Balance Sheet SummaryFiscal Year End: 06/30/2025 176 Investments in Joint Ventures 180 Total Non-Current Assets 200 Deferred Outflow of Resources 290 Total Assets and Deferred Outflow of Resources 160 Total Capital Assets, Net of Accumulated Depreciation 171 Notes, Loans and Mortgages Receivable - Non-Current 172 Notes, Loans, & Mortgages Receivable - Non Current - Past Due 173 Grants Receivable - Non Current 174 Other Assets 165 Leasehold Improvements 166 Accumulated Depreciation 167 Construction in Progress 168 Infrastructure 161 Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 143.1 Allowance for Obsolete Inventories 144 Inter Program Due From 145 Assets Held for Sale 143 Inventories 150 Total Current Assets 131 Investments - Unrestricted 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets 126 Accounts Receivable - Tenants 126.1 Allowance for Doubtful Accounts -Tenants 126.2 Allowance for Doubtful Accounts - Other 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts 113 Cash - Other Restricted 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 122 Accounts Receivable - HUD Other Projects 124 Accounts Receivable - Other Government 125 Accounts Receivable - Miscellaneous 111 Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 100 Total Cash 121 Accounts Receivable - PHA Projects

14.EHV EmergencyHousing Voucher 14.249 Section 8 Moderate Rehabilitation Single Room Occupancy14.HCV MTW Demonstration Program for HCV program14.881 Moving to Work Demonstration ProgramELIM Total$76,142 $83,983 $118,820 $26,761,788$1,203,356$59,472 $394,747 $2,873,888$604,345$0$135,614 $83,983 $0 $513,567 $0 $31,443,377$345,060 $345,060$68,839 $282,111$3,442 $162,133 $4,111,204$954,437-$798,385$0 $0 $0-$50,029,385 $0$41,181 $63,015-$41,181 -$62,290$141,414$0 $3,442 $0 $576,032 -$50,029,385 $5,036,566$783,713$11,796 -$328,870 $0$135,614 $87,425 $0 $1,101,395 -$50,358,255 $37,263,656$66,096,959$106,754,221$2,877,423$41,744 $187,191$5,684 $15,899,129-$43,599 -$47,478,423$62,084,872$0 $0 $0 $3,829 $0 $206,421,372$1,000 $71,057,487$1,646$93,044 -$26,989 $20,739,564$1,000 $0 $0 $96,873 -$26,989 $298,220,069$566,510 $2,200,071$136,614 $87,425 $0 $1,764,778 -$50,385,244 $337,683,796 See report of independent auditors. 74
$76,142 $83,983 $118,820 $26,761,788
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Balance Sheet SummaryFiscal Year End: 06/30/2025 600 Total Liabilities, Deferred Inflows of Resources and Equity - Net 513 Total Equity - Net Assets / Position 512.4 Unrestricted Net Position 511.4 Restricted Net Position 355 Loan Liability - Non Current 356 FASB 5 Liabilities 300 Total Liabilities 357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities 310 Total Current Liabilities 508.4 Net Investment in Capital Assets 400 Deferred Inflow of Resources 351 Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 342 Unearned Revenue 344 Current Portion of Long-term Debt - Operating Borrowings 348 Loan Liability - Current 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities 346 Accrued Liabilities - Other 347 Inter Program - Due To 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government 341 Tenant Security Deposits 311 Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion14.EHV EmergencyHousing Voucher 14.249 Section 8 Moderate Rehabilitation Single Room Occupancy14.HCV MTW Demonstration Program for HCV program14.881 Moving to Work Demonstration ProgramELIM Total$0 $0$41,368 $105 $300,818 $10,411,798$52,216 $251,973$80,941 $414,596$5,476,376$16,142 $16,142$1,804,465$586,728$59,472 $39,354 $160,860$951,067$5,541,334 -$50,029,385 $81,109$282,602$9 -$328,870 $0$100,849 $16,247 $0 $6,014,663 -$50,358,255 $20,437,716$132,383,514$0$1,570,417$48,994 $152,988$589,887 -$26,989 $3,537,095$0 $0 $0 $638,881 -$26,989 $137,644,014$100,849 $16,247 $0 $6,653,544 -$50,385,244 $158,081,730$324,834 $18,794,413$0 $3,829 $73,067,962$59,472 $0 $487,791 $4,684,651-$23,707 $71,178 $0 -$5,705,220 $83,055,040$35,765 $71,178 $0 -$5,213,600 $0 $160,807,653$136,614 $87,425 $0 $1,764,778 -$50,385,244 $337,683,796 See report of independent auditors. 75
512.4 Unrestricted Net Position-$23,707 $71,178 $0 -$5,705,220 $83,055,040$5,541,334 -$50,029,385 $81,109

Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/20256.1 Component Unit -Discretely Presented14.896 PIH Family Self-Sufficiency Program14.238 Shelter Plus Care$3,372,880$3,372,880 $0 $0$117,088$0$465,195$2,916,868 $251$6,289,748 $117,339 $465,195$402,849 $77,883 $39,590$65,043$84,084$8,236$40,204$67,464$72,460$140,088 $3,230$840,224 $118,087 $42,820$54,826$209,700 $2,165$264,526 $2,165 $0$45,955$33,772$988$70,018$150,733 $0 $0 70500 Total Tenant Revenue 70600 HUD PHA Operating Grants 70610 Capital Grants$20,970 70710 Management Fee2 State/Local$1,073,85414.871 Housing Choice Vouchers6.2 Component Unit -Blended$3,202,002 70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other $10,139$0 $3,222,972 $1,083,993$1,466,812 71200 Mortgage Interest Income 70750 Other Fees 70700 Total Fee Revenue 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70800 Other Government Grants $9,892,863 70000 Total Revenue 71600 Gain or Loss on Sale of Capital Assets 72000 Investment Income - Restricted 71500 Other Revenue 71100 Investment Income - Unrestricted 71400 Fraud Recovery 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets$280,130 $3,152,262-$3,327 91100 Administrative Salaries 91200 Auditing Fees 91300 Management Fee$23,359 $29,654$199,667 $88,605$16,228$710,936 $965,420$743,732 $843,657 91000 Total Operating - Administrative 91800 Travel 91810 Allocated Overhead 91500 Employee Benefit contributions - Administrative 91600 Office Expenses 91700 Legal Expense$27,052 $26,342 91400 Advertising and Marketing 91310 Book-keeping Fee 91900 Other$270,229 $108,513$112,767$5,066,048$1,222$0 $4,657,935$9,599 92100 Tenant Services - Salaries 92200 Relocation Costs 92000 Asset Management Fee$348,722$89,159 92500 Total Tenant Services 92300 Employee Benefit Contributions - Tenant Services 92400 Tenant Services - Other$21,537$98,097$266,695 $67,865$0 $726,113 $196,860$261,445$40,286$40,198$16,476 93300 Gas 93400 Fuel 93100 Water 93200 Electricity $141,336$67,203 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense 93500 Labor 93600 Sewer 93000 Total Utilities$123,871$0 $593,855 $195,057$1,466,812 $13,435,554 $11,152,632$2,673,361 $3,002,635$39,589 $825,333$6,094,371 See report of independent auditors. 76
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/20256.1 Component Unit -Discretely Presented14.896 PIH Family Self-Sufficiency Program14.238 Shelter Plus Care2 State/Local14.871 Housing Choice Vouchers6.2 Component Unit -Blended $569,822$569,822 $0 $0$0 $0 $0$314,734$557$314,734 $557 $0$528,103$149,283$677,386 $0 $0$1,597,120$1,597,120 $0 $0$4,414,545 $120,809 $42,820$1,875,203 -$3,470 $422,375$424,353$2,445,382$6,859,927 $120,809 $467,173 94100 Ordinary Maintenance and Operations - Labor 94200 Ordinary Maintenance and Operations - Materials and Other $323,605 $121,037 95300 Protective Services - Other 95500 Employee Benefit Contributions - Protective Services 95100 Protective Services - Labor 95200 Protective Services - Other Contract Costs$63,631$507,749 94000 Total Maintenance 94300 Ordinary Maintenance and Operations Contracts 94500 Employee Benefit Contributions - Ordinary Maintenance $30,122$722,539$129,142$2,295,721 96130 Workmen's Compensation 96140 All Other Insurance 96110 Property Insurance 96120 Liability Insurance 95000 Total Protective Services 96300 Payments in Lieu of Taxes 96400 Bad debt - Tenant Rents 96200 Other General Expenses 96210 Compensated Absences 96100 Total insurance Premiums 96800 Severance Expense 96000 Total Other General Expenses$124,119$0 $2,872,587 96500 Bad debt - Mortgages 96600 Bad debt - Other 96720 Interest on Notes Payable (Short and Long Term) 97100 Extraordinary Maintenance 97200 Casualty Losses - Non-capitalized 97000 Excess of Operating Revenue over Operating Expenses 96730 Amortization of Bond Issue Costs 97400 Depreciation Expense 97500 Fraud Losses 97300 Housing Assistance Payments 97350 HAP Portability-In 96710 Interest of Mortgage (or Bonds) Payable 96900 Total Operating Expenses 96700 Total Interest Expense and Amortization Cost 97800 Dwelling Units Rent Expense 90000 Total Expenses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds $832$1,263$0 $1,263 $832$393,960 $133,324$952 $870$83,309 $61,226$19,713 $42,155$0 $497,934 $237,575$125,619 $86,487$66,922 $14,013$2,972$0 $192,541 $103,472$925,205 $40,519$0$0 $925,205 $40,519$0 $10,467,433 $6,562,902$1,466,812 $2,968,121 $4,589,730$1,466,812$830,979 $990,316$1,466,812 $11,298,412 $7,553,218 See report of independent auditors. 77
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/20256.1 Component Unit -Discretely Presented14.896 PIH Family Self-Sufficiency Program14.238 Shelter Plus Care2 State/Local14.871 Housing Choice Vouchers6.2 Component Unit -Blended $14$2,848,412 $0$2,848,412 $14 $0$2,278,233 -$3,456 -$1,978$382,259 $0 $0$22,430,952 -$2,430 $118,1341716 2161636 216 10070 Extraordinary Items, Net Gain/Loss 10040 Operating Transfers from/to Component Unit 10050 Proceeds from Notes, Loans and Bonds 10010 Operating Transfer In 11030 Beginning Equity 11040 Prior Period Adjustments, Equity Transfers and Correction of Errors 11020 Required Annual Debt Principal Payments 10092 Inter Project Excess Cash Transfer Out 10093 Transfers between Program and Project - In 10080 Special Items (Net Gain/Loss) 10091 Inter Project Excess Cash Transfer In 10020 Operating transfer Out 10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses 10094 Transfers between Project and Program - Out 10100 Total Other financing Sources (Uses) 10030 Operating Transfers from/to Primary Government 10060 Proceeds from Property Sales 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11210 Number of Unit Months Leased 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling Rents 11100 Changes in Allowance for Doubtful Accounts - Other 11190 Unit Months Available 11170 Administrative Fee Equity 11180 Housing Assistance Payments Equity$21,317,850 -$21,317,850$0$0 $21,317,850 -$21,317,850$0 $23,454,992 -$17,718,436$0 $834,570 $1,588$0 -$65,065,025 $200,423,324$0$01032 4950 1614720 4762 1514 See report of independent auditors. 78
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/2025 70500 Total Tenant Revenue 70600 HUD PHA Operating Grants 70610 Capital Grants 70710 Management Fee 70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other 71200 Mortgage Interest Income 70750 Other Fees 70700 Total Fee Revenue 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70800 Other Government Grants 70000 Total Revenue 71600 Gain or Loss on Sale of Capital Assets 72000 Investment Income - Restricted 71500 Other Revenue 71100 Investment Income - Unrestricted 71400 Fraud Recovery 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 91100 Administrative Salaries 91200 Auditing Fees 91300 Management Fee 91000 Total Operating - Administrative 91800 Travel 91810 Allocated Overhead 91500 Employee Benefit contributions - Administrative 91600 Office Expenses 91700 Legal Expense 91400 Advertising and Marketing 91310 Book-keeping Fee 91900 Other 92100 Tenant Services - Salaries 92200 Relocation Costs 92000 Asset Management Fee 92500 Total Tenant Services 92300 Employee Benefit Contributions - Tenant Services 92400 Tenant Services - Other 93300 Gas 93400 Fuel 93100 Water 93200 Electricity 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense 93500 Labor 93600 Sewer 93000 Total Utilities

14.EHV EmergencyHousing Voucher 14.249 Section 8 Moderate Rehabilitation Single Room Occupancy14.HCV MTW Demonstration Program for HCV program14.881 Moving to Work Demonstration ProgramELIM Total$7,648,736$31,109$0 $0 $0 $0 $0 $7,679,845$1,299,847 $295,299 $45,148,309 $48,327,355$0$0 $0-$11,365,527 $5,086,902$864,922$10,584 $10,584$1,133,010 $7,482,521-$3,327$1,299,847 $295,299 $45,148,309 $1,143,594 -$11,365,527 $69,448,802$76,549 $57,020 $1,215,053 $7,544,940$301 $13,861 $132,218$372,356$8,236$507,803 $2,224,363$534,696 $2,189,549$278,184 $729,386$14,096 $67,490$120,007 $274,146$76,549 $57,321 $0 $2,683,700 $0 $13,542,684$516,315$89,159$1,703 $39,468$17,621 $15,215 $579,261$17,621 $0 $0 $16,918 $0 $1,224,203$5,839 $411,336$3,883 $219,189$331 $84,998$164,157$70,018$0 $0 $0 $10,053 $0 $949,698 See report of independent auditors. 79
71100 Investment Income - Unrestricted
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/2025 94100 Ordinary Maintenance and Operations - Labor 94200 Ordinary Maintenance and Operations - Materials and Other 95300 Protective Services - Other 95500 Employee Benefit Contributions - Protective Services 95100 Protective Services - Labor 95200 Protective Services - Other Contract Costs 94000 Total Maintenance 94300 Ordinary Maintenance and Operations Contracts 94500 Employee Benefit Contributions - Ordinary Maintenance 96130 Workmen's Compensation 96140 All Other Insurance 96110 Property Insurance 96120 Liability Insurance 95000 Total Protective Services 96300 Payments in Lieu of Taxes 96400 Bad debt - Tenant Rents 96200 Other General Expenses 96210 Compensated Absences 96100 Total insurance Premiums 96800 Severance Expense 96000 Total Other General Expenses 96500 Bad debt - Mortgages 96600 Bad debt - Other 96720 Interest on Notes Payable (Short and Long Term) 97100 Extraordinary Maintenance 97200 Casualty Losses - Non-capitalized 97000 Excess of Operating Revenue over Operating Expenses 96730 Amortization of Bond Issue Costs 97400 Depreciation Expense 97500 Fraud Losses 97300 Housing Assistance Payments 97350 HAP Portability-In 96710 Interest of Mortgage (or Bonds) Payable 96900 Total Operating Expenses 96700 Total Interest Expense and Amortization Cost 97800 Dwelling Units Rent Expense 90000 Total Expenses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds

14.EHV Emergency Housing Voucher 14.249 Section 8 Moderate Rehabilitation Single Room Occupancy14.HCV MTW Demonstration Program for HCV program14.881 Moving to Work Demonstration ProgramELIM Total $444,642$2,304 $195,077$41,338 $3,414,630$154,241$0 $0 $0 $43,642 $0 $4,208,590$986 $3,081$0 $0 $0 $986 $0 $3,081$3,277 $845,295$858 $2,680$24,542 $169,634$27,064 $88,932$0 $0 $0 $55,741 $0 $1,106,541$16,057 $198,604 $954,870$230,218$2,972$16,057 $0 $0 $198,604 $0 $1,188,060$2,562,844$0$0 $0 $0 $0 $0 $2,562,844$110,227 $57,321 $0 $3,009,644 $0 $24,785,701$1,189,620 $237,978 $45,148,309 -$1,866,050 -$11,365,527 $44,663,101$1,196,049 $238,084 $41,828,763 -$11,365,527 $33,788,534$1,126,481 $1,126,481$1,442 $4,268,119$1,306,276 $295,405 $0 $45,966,330 -$11,365,527 $63,968,835 See report of independent auditors. 80
Submission Type: Audited/Single AuditCity of Alameda Housing Authority (CA062)Alameda, CAEntity Wide Revenue and Expense SummaryFiscal Year End: 06/30/2025 10070 Extraordinary Items, Net Gain/Loss 10040 Operating Transfers from/to Component Unit 10050 Proceeds from Notes, Loans and Bonds 10010 Operating Transfer In 11030 Beginning Equity 11040 Prior Period Adjustments, Equity Transfers and Correction of Errors 11020 Required Annual Debt Principal Payments 10092 Inter Project Excess Cash Transfer Out 10093 Transfers between Program and Project - In 10080 Special Items (Net Gain/Loss) 10091 Inter Project Excess Cash Transfer In 10020 Operating transfer Out 10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses 10094 Transfers between Project and Program - Out 10100 Total Other financing Sources (Uses) 10030 Operating Transfers from/to Primary Government 10060 Proceeds from Property Sales 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11210 Number of Unit Months Leased 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling Rents 11100 Changes in Allowance for Doubtful Accounts - Other 11190 Unit Months Available 11170 Administrative Fee Equity 11180 Housing Assistance Payments Equity

14.EHV Emergency Housing Voucher 14.249 Section 8 Moderate Rehabilitation Single Room Occupancy14.HCV MTW Demonstration Program for HCV program14.881 Moving to Work Demonstration ProgramELIM Total $45,148,309 -$45,148,309 $0-$45,148,309 $45,148,309 $0-$14 $0 $0$0 $0 $2,848,412$0 $0 -$45,148,309 $45,148,295 $0 $2,848,412-$6,429 -$106 $0 $325,559 $0 $8,328,379$0 $0 $0 $0 $1,218,417$42,194 $71,284 $0 -$5,539,159 $152,479,274$0$0599 360 0 23676 34163599 360 0 19677 29484 See report of independent auditors. 81

To: Honorable Chair and Members of the Board of Commissioners From: Siyuan (Steven) Zhou, Management Analyst
Date: May 20, 2026
Re: Accept a report on the shortfall prevention measures recommended by HUD; Approve the Board Chair and Executive Director to sign a letter to HUD on behalf of the Board of Commissioners, as needed; And Authorize Staff to apply for HUD funding for shortfall as needed.

BACKGROUND
At the February 18, 2026 Board of Commissioners meeting, the Housing Authority of the City of Alameda (AHA) staff was asked to look into potential Housing Assistance Payments (HAP) saving measures due to lack of federal funding and AHA being in HUD shortfall for 4 times (since year 2016).

At this time AHA is showing a projected $3M in shortfall for the year end. On the expense side, this assumes 100% leasing of vacant PBV by August 2026, and average

3.6% increase in rents, as well as implementation of the current higher utility allowances. On the income side, per PIH Notice 2026-12 HAP is expected to be prorated at 100%. A 4.7% inflation factor was used, but this funding level has not been released yet.

DISCUSSION
AHA entered shortfall in 2025 and has remained in shortfall since. In December 2025, AHA received shortfall funds from the Department of Housing and Urban Development (HUD) of $759,551. That allowed AHA to not terminate any families in 2025 due to shortfall. While in shortfall, a Public Housing Authority (PHA) works with a HUD shortfall team and is given a plan of action. AHA's plan stated that it could not issue new vouchers, could not absorb ports, and should review other cost-saving measures. AHA evaluated options, and this report updates the Board on its decisions.

According to the PIH Notice 2025-28 issued on November 17, 2025, PHAs have the option of taking the following actions to reduce HAP costs. These are divided into three categories with multiple strategies under each category.

Exhibit 2c
Category 1: Standard Regulatory Compliance and Sound Program Management Practices:1. Ensuring Correct Voucher sizeAHA audited Project-Based Voucher (PBV) right-sizing efforts in early 2026 and has contacted 19 program participants about right-sizing. AHA does this regularly and will continue to work to ensure the correct sizing of the voucher. Changes can take up to 6 months to take effect according to HUD regulation due to AHA’s voucher being issued for 180 days. In addition, some families right-size by adding a live-in aide or requesting an extra bedroom under reasonable accommodation, so the amount of HAP does not decrease.The AHA reviews Housing Choice Voucher families for correct voucher size and will conduct a review in the next six months. This normally results in minimal HAP savings as voucher sizes are reviewed at interims and regular reexaminations due to a Moving to Work (MTW) activity.2. Reviewing Payment StandardsAHA reviewed its payment standards and lowered its payment standards effective March 19, 2026, for all new admissions, unit transfers and incoming portability. The payment standards were lowered May 2, 2026, for the processing of reexaminations, but the AHA never waived HUD's requirement to decrease the payment standard at the second regular reexamination after the decrease.AHA does, however, have a MTW activity that changes the payment standard at the time of a family composition change rather than the following regular reexamination. This ensures the change is made timely. The estimated savings of the new payment standards is $195,000 for this calendar year.3. Utility AllowancesPer the notice, there are three utility activities to review.i.Reviewing Utility Rates: AHA contracted with a third-party consultant to review its utility allowances. New utility allowances were implemented with an effective date of April 1, 2026. This is likely to result in an increase to HAP expenditures not a decrease.ii. Ensuring Accuracy of individual Utility allowance: AHA is planning to conduct another audit on all Housing Choice Vouchers (HCV) units to ensure accuracy, but this is conducted periodically. The AHA only has two utility allowances to simplify and ensure the correct calculation. This is not expected to produce any significant HAP savings.iii. Implementing Utility Allowance Flexibilities: AHA is looking into this and is going to conduct a site survey to see which of our units/properties meets the Leadership in Energy and Environmental Design (LEED) or Energy Star standards. However, it is likely that only a few newer buildings would qualify and again any savings is not expected to be significant. Adding another utility allowance makes (ii) in this list harder to ensure and requires more audits. Also, staff have experience with allowances that were not clear or had requirements so obscure that it took individual unit inspections and large amounts of paperwork to document a unit's compliance with an alternative utility allowance.4. Conducting Rent ReasonablenessAHA always conducts rent reasonableness checks for both Housing Choice Voucher (HCV) and PBV units.HUD recommends a PHA request landlords to voluntarily and temporarily reduce rents or defer rent increases to assist with shortfall. While the AHA was under the Landlord Cohort research restrictions, the AHA was not permitted to discourage owners from participating in the program.However, with the receipt of the e-mail from HUD (discussed in the Data and Policy Overview), the AHA will evaluate whether this would harm the program more than the benefits received from the saved HAP. The AHA property management department is requesting modest or no increases for most of AHA's portfolio, which is the largest recipient of HAP. This is in part because the rent reasonable rents for older units in the City of Alameda are holding steady or dropping. 5. Evaluating Entering New PBV HAP Contracts.All pending Agreements to Enter into a Housing Assistance Payment (AHAP) contracts have been fulfilled. There is one outstanding HAP commitment which cannot proceed to AHAP during shortall – this is for Estuary II. The AHA will not be entering into any new HAP or AHAP contracts during the rest of the time it is in shortfall. The AHA will evaluate PBV HAP contract extensions as it would if it were not in shortfall as this does not save the AHA any HAP because new HCVs would need to be issued to the families if the contract was not renewed and per unit costs for HCV units ($2,026) is higher than PBV units ($2,004).6. Determining PBV Rent to Owner AHA reviews all PBV rents to owner on July 1, 2026, under an MTW activity that changes the PBV rent increases to July 1 rather than the anniversary of the HAP contract. The evaluation of PBV rent increases is currently underway. The AHA received requests to increase rents on approximately 50 PBV units. This is not expected to result in HAP savings unless the rent increase requests are deemed not reasonable and the rents for the unit are decreased to match the reasonable amount. Category 2: Additional Actions PHAs May Consider to Lower Program Costs1. Reducing or Stopping Voucher Issuance to Applicants AHA has not issued vouchers to applicants since prior to 2025 due to the AHA being in and out of shortfall the last few years. This is in part due to HUD's funding formula not keeping up with the rising rents in the area. For example, Assembly Bill 1482 allows owners to raise rents by the lesser of 5% plus the Consumer Price Index of 10% (6.3% in 2025), but AHA's last renewal factor was 2.9%. 2. Increasing Minimum RentAHA's current minimum rent is $50, which is the maximum a non-MTW agency can set. As an MTW expansion agency, under the Landlord Cohort, AHA was restricted from implementing such rent-related activities. However, based on the e-mail discussed in the Data and Policy Overview, AHA will review the activities again and evaluate whether the activities are appropriate to implement, including raising the minimum rent. To implement activities, the AHA will need to do a revised Annual Plan and MTW Supplement for FY2026-2027 or wait until FY2028. There are 68 families paying minimum rent. The savings in HAP would be paid by the family. Any expected HAP saving from this is expected to be in the range of $1,700 to $6,800 per month if we raised the minimum rent between $75 to $150 per month. 3. Stopping Portability AbsorptionAHA has already stopped absorbing new portable families and elected to bill the initial PHA. There was no absorption of vouchers in 2025. There are no additional savings to be found with this strategy.4. Reducing Subsidy StandardsFor the most part, the AHA's subsidy standard allows one bedroom for every two people. There are a couple of exemptions such as a larger voucher is given to allow the head of household to not share a bedroom with a minor and an extra bedroom is given for a live-in-aide.The AHA looked at three (3) options here:Option One: AHA could change its subsidy standard to two heartbeats per room to save HAP. Any person with an approved reasonable accommodation for an extra bedroom would be exempted from this. The maximum savings for AHA would be a strict policy of two heartbeats per bedroom. AHA could save $103,595 a month on HAP with the households paying on average an additional $200 per month. Five hundred twenty-four (524) families would be affected and the maximum increase in the total tenant portion of rent would be $384.AHA's household's average income is $2,094 monthly. This measure would lead to an average increase of 9.4% in the tenant's portion of rent. Any HAP that AHA saves will be paid by the participants. An average increase of almost 10% of tenant portion of rent is pretty steep for most AHA households. This is also likely to be challenged by legal aid firms. Option Two: AHA could, however, reduce the impact to families including a person with a disability by changing the subsidy standard to be less strict than two heartbeats per bedroom as in the first scenario. For example, AHA could offer an extra bedroom for the live-in aide. In this case, AHA's monthly saving on HAP would be $83,980 with an average of $170 increase to total tenant portion of rent and 494 households would be affected. The average increase per household would be 8.1%. As you will see with the next paragraph, this would only benefit families with a member with a disability and would mostly adversely affect families with one adult and one minor in the household. Option Three: The last option is the least strict subsidy standard change where AHA still allows a household with the first adult and one minor child to have separate bedrooms and then after that everyone must share a bedroom (2 per person). This is different from our current standards in that if the household had two adult family members that are not head of household and co-head/spouse, these two family members would not receive a 2-bedroom subsidy standard but would only receive a 1-bedroom subsidy standard. In this case, AHA's monthly saving on HAP would be $18,704 with an average increase of $83.5 to total tenant portion of rent and 224 households would be affected. The average increase per household would be 4%. As the scenarios become more complex, staff are more likely to make errors.In all these scenarios, it assumes either the participant will absorb the increase or the participant will move. The tight housing market makes moves very difficult within Alameda and families may be displaced to other jurisdictions and to new school districts or away from their jobs or support network. It would also require families to come up with new security deposits when they move. These scenarios do not take into account additional administrative costs for AHA or the higher risk of errors under options two and three.Category 3: Further Cost Savings Actions that Require HUD Approval:1. Denying Portability and Moves within the PHA JurisdictionThe best way to evaluate this is to look at the monthly per unit cost (PUC) of the units. This is an average across bedroom size and is the way HUD funds HAP. The PUC average overall is $2,196 for May 2026.The first option under this category is to restrict portability moves. The average PUC for families who have used portability to move out of AHA's jurisdiction is about $2,106 for May. This is lower than the PUC for families living in AHA's jurisdiction ($2,197 for May 2026). Another way to look at it is according to Census Tract, median gross rent pricing for zip codes 94501 and 94502 is $2,474 while medium gross rent for the County of Alameda is $2,357, so port-outs to the County would be lower on average. Tenants who move to other lower cost areas like Contra Costa may find even cheaper housing than this.The second option under this category would be to restrict moves within the City of Alameda if the move would require a higher HAP payment. Since the AHA entered shortfall, there have been 49 transfers. Of these, 11 were from the PBV to the HCV program. Since the AHA suspended conversions from PBV to HCV effective when it entered into shortfall except in cases of reasonable accommodation or VAWA, these 11 are excluded from the average change in HAP as they could not be restricted under this activity. That leaves 38 households considered. Fifteen (15) of the 38 resulted in a HAP decrease and 23 resulted in a HAP increase. The HAP saved monthly over all of the 38 families is $3,934. This is not enough of a savings for the AHA to restrict moves within the AHA's jurisdiction. It takes a lot of time for the staff to document move restrictions and these must be reviewed by the HUD Field Office. The HAP saved is less than 2 PUC units for AHA ($3,934 versus $2,197). 2. Rescinding Vouchers Issued to ApplicantsAHA only has one current searching voucher that was issued to an applicant prior to shortfall, and no new vouchers will be issued to applicants. The outstanding voucher was extended due to reasonable accommodation and therefore would affect only a family having difficulties finding a unit due to a disability. The AHA is discussing the option of rescinding the voucher with the family's legal counsel due to the family already being housed in an assistance program (not HCV) and if cuts happen, this family would be cut first. There are no significant savings to be made under this option.3. Requesting a Waiver to Apply Decreases in Payment Standards During the HAP Contract Term ImmediatelySimilar to actions that discourage landlords from participating in the program, AHA could not implement this will being under the cohort restriction. As we were just notified by HUD that the restrictions were lifted for the Landlord Cohort, AHA will submit a waiver to apply decreases in payment standards during the HAP contract term immediately.4. Request approval to Establish Payment Standards Below 90 Percent of the Applicable FMRDue to the nature of AHA’s jurisdiction, this action would make rents unaffordable for AHA’s participants. The AHA did lower its payment standards from the approved MTW Activity level of 120% to the normal maximum under the program of 110%.Staff continue to look for ways to save HAP without displacing or overburdening its families.Applying for short fall funding in 2026. On May 6, 2026, HUD issued PIH notice 2026-12 where it listed additional requirements for PHAs to apply for additional funding when in shortfall. AHA has been under shortfall numerous times since 2018. AHA is waiting for HUD’s letter stating which category AHA falls under. Some options for shortfall funding require a letter from the Board of Commissioners. Staff are seeking approval for the Board Chair and Executive Director to sign a letter to HUD on behalf of the Board of Commissioners, if needed.

These are the requirements for shortfall funding.A. Must immediately Adopt Cost-Saving Measures and Work with the Shortfall Prevention Team.AHA has adopted cost saving measures outlined above and is actively working with HUD’s shortfall prevention team.B. Must Submit a Complete Application by the Deadline.Staff will ensure that the application is submitted by the deadline.C. Must Not Transition EHV families to a Turnover HCV.AHA has not transitioned EHV families into HCV.D. Must Not Issue Tenant-based Vouchers (with Limited Exceptions)AHA has not issued Housing Choice Vouchers since 2023 and ceased issuing FUP tenant-based vouchers in 2025.E. Must Not Absorb VouchersAHA stopped portability absorption since 2024/2025.F. Must Not Issue New Requests for Proposals or Select New PBV Proposals or Projects (with Limited Exceptions)AHA does not have any plans to release a Request for Proposals for PBV.G. Must adhere to limitations on Extraordinary Operating Cost Factor (OCF) Request for RAD properties.This does not apply to AHA at this time.H. Must not approve PBV Substantial Rehabilitation Requests if they Require Issuance of Additional Tenant-based Vouchers.This does not apply to AHA at this time.I. Must not Add Units to PBV Contracts (with limited Exceptions)AHA will not add units to non-RAD PBV Contracts during shortfall.J. Must Continue to Meet Contractual Obligations Associated with PBV ContractsAHA will continue to fulfill its contractual obligations associated with PBV contracts.

K. May Submit Regulatory Waivers to Achieve Cost Savings:AHA will submit waiver to apply decreases in the payment standard during the HAP contract term immediately.Other restrictions include: Immediately cease the use of any exception payment standards and MTW payment standards above the basic range, including the use of exception payment standard Small Area Fair Market Rents. AHA has decreased payment standards from 120% to 110% on May 2, 2026. AHA does not use Small Area Fair Market Rents.May only issue vouchers in permitted tenant-based leasing categories with prior HUD SPT approval, excluding statutorily required issuances(such as for TPVs for Section 8 project-based rental assistance (PBRA)opt-outs)AHA is in compliance with this restriction.As part of the application, include a letter from the board chair that includes:i. An acknowledgement that the PHA is at high risk of having to terminate assistance, including termination of PBV HAP contracts, if applicable, and that the board has reviewed the termination of assistance policies in the PHA’s Administrative Plan.ii. Identification of policies, procedures, and other actions that PHA will take to ensure prudent financial oversight and management that will help ensure the PHA avoids shortfalls in future years, along with a timeline for implementation.AHA plans to submit a letter from Board Chair along with the application A copy of the final letter will be provided to all Commissioners once it has been sent.FISCAL IMPACTAHA could potentially save from $73,925 to $268,595 on monthly HAP payments if AHA were to implement reduced subsidy standards but these savings would be paid by the participants. CEQAN/A RECOMMENDATIONAccept a report on the shortfall prevention measures recommended by HUD; Approve the Board Chair and Executive Director to sign a letter to HUD on behalf of the Board of Commissioners, as needed; And Authorize Staff to apply for HUD funding for shortfall as needed. ATTACHMENTS1.AHA PPT Federal Funding OptionsRespectfully submitted, Siyuan (Steven) Zhou, Management Analyst
1 www.alamedahsg.org
Budget Presentation
For Fiscal Year 2026-2027
For the period form July 1, 2026 to June 30, 2027
June 17, 2026
Board of Commissioners Meeting
Budget Introduction
• Requested budget authority is for the period of July 1, 2026 through June 30, 2027 (Fiscal Year 2026-2027)
• Budget authority by the Board of Commissioners allows Alameda Housing Authority and Alameda Affordable Housing Corporation to operate and provide quality, affordable and safe housing in the City of Alameda
• Important tool to control the sources (money in) and uses (money out)
• Variance between actual and budget are reported in the quarterly finance memorandum
• Staff is presenting a balanced budget for Fiscal Year 2026-2027 2 1
2 Exhibit 2d
2 Budget Structure
3 As AHA and AAHC have
common control, the
budget is presented on
a combined basis.

Budget Structure
Housing Authority of the City of Alameda (“AHA”)
• All internal departments (Executive, Data & Policy, Human Resources, Housing Programs, Housing Development, Property Management, Asset Management, Administration and Finance) • Properties owned by AHA (Scattered Sites, Parrot Gardens, Independence Plaza) • Successor Agency to the Community Improvement Commission, Ombudsman program Alameda Affordable Housing Corporation (“AAHC”)
• All members of the AHA Board of Commissioners also serve on the AAHC Board of Directors • Presented here in operating budget on a consolidated basis but will be approved in separate Board item in the AAHC Board of Directors meeting
• “Blended Component Unit” – AHA and AAHC are so intertwined, HUD deems that the 2 legal entities are to be presented as 1 • All properties owned by AAHC (Eagle Village, Parrot Village, Esperanza, Anne B. Diament, China Clipper, Scattered Site) • Alameda Affordable Housing Trust Fund
Does not include Island City Development (“ICD”)
• Rosefield Village, Everett Commons, Littlejohn Commons, Estuary I, Linnet Corner, North Housing Predevelopment, The Poplar • Separate calendar year budget 2027 will be brought to the Island City Development Board of Directors later in 2026 4 3
4 3
Fiscal Year 2026-2027 Budget Summary
• Conservative Approach in Budgeting
• AHA’s operations are highly dependent on federal sources of funding, and any substantial changes may require a mid-year budget revision.
• Items of note for Fiscal Year 2026-2027:
• Third Party Property Management Servicer Provider Transition • General Counsel Transition
• Paydown of $8.24 million Mortgage Ballon Payment for AAHC Eagle Village and Parrot Village • Remediation work for Independence Plaza due to fire and flooding • Expiration of Annual Independence Plaza Tax Increment Funding from the City of Alameda on June 30, 2026 • Staff anticipates that AHA will be very close to or in HAP shortfall for the rest of 2026. • Emergency Housing Vouchers sunset due to limited federal funding • Positive Cash Flow: $44,021
• Capital Improvements Plan: $7,228,828 (to be expended through Fiscal Year 2027-2028) • Cash and investments in June 2026: in excess of $30 Million • Cash Balance includes loan balances that must be repaid or refinanced in 2028 • Planned use pursuant to the Board approved Reserves Policy • Maintain sufficient cash reserves for operations
• Not including HUD Held Reserves restricted per Cash Management Rules • In July 2026, after the $8.24 million Mortgage Balloon Payment paydown, cash is expected to be at $22 Million 5 Budget Structure
• Operating Income and Expenses (Attachment 1)
• Housing Assistance Payments (HAP pass-through income and e
xpenses) (Attachment 2)
• Capital Improvement Plan (CIP) (Attachment 3)
• Schedule of Authorized Positions for Fiscal Year 2026-2027 (A
ttachment 4)
• Pay Schedule for Fiscal Year 2026-2027 (Attachment 5) 6 5
6 4
Fiscal Year 2026-2027 Budget Highlights
(Attachment 1 – Board of Commissioners Memo)
7 Operating Income
• Fiscal Year 2026-2027 Budgeted Total Operating Income is $24,432,793, 319,422 (1%) low
er than Fiscal Year Budgeted 2025-2026 Operating Income Income sources:
• Rental income from tenants in AHA & AAHC-owned properties (flat revenue budgeted) • Rental subsidy (HAP) received for voucher recipients in AHA & AAHC-owned properties • Tax Increment Funding for Independence Plaza expires on June 30, 2026 ($2+ million). In No
vember 2024, converted to Restore-Rebuild with 120 vouchers to stabilize the property ahead of the expiration of the City of Alameda funding. As of June 2026, there are 87 out of 120 units leased
in the next month, but some units have to be re-leased after repairs. The 87 Restore- Rebuild vouchers (annualized) generate $1.5 million income for the property so far. • Federal Grant Income for the Family Self Sufficiency (FSS) program of approximately $150,000 • Administrative Fee Income from HUD:
• Only to cover the cost of administration for Housing Department programs • Included at a proration of 88% in 2026, a drop from 93.3% in Fiscal Year 2025-2026 – a reduction of $388k. • Other income – interest incomes, developer fees, asset management fees, non-federal grant inc
ome including Alameda Unified School District funds for The Poplar project 8 7
8 5
AHA and AAHC Properties
• Excess cash may be used for capital projects and to subsidize Housing Pr
ograms Department which has historically ran as a deficit. Most properties are cash flowing, with the exception of the smaller properties • Property Operations - All properties are managed by third party property manag
ement (currently with Asset Living), with LifeSTEPS as the Resident Services provider
• Property Management – Phased transition of AHA/AAHC properties are expected to begin in the summer 2026 through the end of the calendar year • Resident Services – LifeSTEPS contracts ends on December 31, 2026. A request for pr
oposals will be published in the summer of 2026.
• Individual Property Budgets are presented in the AHA and AAHC board pack
ets
• These budgets will be standalone budgets with no AHA allocated costs 9 Operating Expenses
• Fiscal Year 2026-2027 total budgeted operating expenses is higher than prior year budget by $2 million (9%)
• This includes:
• Salary and Benefits at $12,545,148 (13% increase from budget) • Attachment 4 – Fiscal Year 2026-2027 Schedule of Authorized Positions • Attachment 5 – Salary Schedule for Fiscal Year 2026-2027 • In Fiscal Year 2025-2026, hiring was held back due to HUD funding uncertainty, and AHA relied on temporary staff, interns and consultants. It has also been a challenging hiring market. Staff may come back and eliminate some positions if there are internal promotions. Board can expect a revised schedule of positions in August 2026 with the COLA.
• Technology budget includes hardware and software updates, continue support remote working, defensive cybersecurity management, hardware deployment (laptop/cell phones) and server solutions, online client services, procurement databases and human resources information system • Third Party Management manages AHA/AAHC’s properties, and including Resident Services • Administering Alameda Affordable Housing Trust Fund, Successor Agency to the Community Improvement Commission Assets, Ombudsman Program
• Legal counsel costs, independent financial auditors, trainings, consultants and other back-office costs. • Satellite Office at South Shore Center
10 9
10 6
Schedule of Authorized Positions
• Attachment 4 showcases the change of the Fiscal
Year 2026-2027 Schedule of Authorized Positions
(and some of these may be filled at a lower level)
• Executive Department – No net change in FTE, with a
r
eclassification of the Senior Executive Assistant to
Senior Management Analyst
• Administration and Services Department –1 F T E
reduction, with a removal of the Assistant Director of
Adminis
trative Services, an addition of the Customer
Service Specialist and a reduction of the Program
Assistant
• Data and Policy Department – 1 FTE increase, addition of the
Principal Management Analyst position
• Property Operations Department – 2 FTE increase,
LIHTC Compliance Manager and 1 additional Property
Oper
ations Specialist I
• Total – Net increase of 2 FTE (from 58 to 60)
11 Salary Schedule Fiscal Year 2026-2027
• Attachment 5 is the Salary Schedule for Fiscal
Y
ear 2026-2027
• Non-Exempt employees – are presented on the
top of the hourly rate, including their FLSA
classification and pay steps (Step 1 through Step
5)
• Exempt employees are presented on the bottom
with their monthly salary, including their FLSA
classification and pay steps (Step 1 through 5)
12 11
12 7
Salary Schedule Fiscal Year 2026-2027 (continued)
• An updated Pay Schedule that reflects the changes to the Schedule of Authoriz
ed Positions is being brought to the Board.
• Chang
es reflected are:
• Addition of the Customer Service Specialist position at Salary Range 23. • Changing the name of Intern and Fellow to Management Intern and Management Fellow, respectively. There is no change to the pay range. • Addition of the LIHTC Compliance Manager position at Salary Range 45. • Clarification that the Director of Housing Programs is at Salary Range 56 and correcting an administrative error in the schedule.
• Moving the Director of Human Resources and the Director of Property Operations to Salary Range 60 to account for increased responsibilities. • Note: A compensation study of all positions will be conducted this year. 13 Fiscal Year 2026-2027 Budget Highlights
14 13
14 8
HAP Budget Highlights
(Attachment 2 of the Board of Commissioners Memorandum) 15 Housing Assistance Payments
(HAP Pass-Through)
• A substantial push in lease up is expected, including filling of vacant AHA/AAHC vacant project-based vouchers and lease up in Estuary I and Linnet Corner
. HAP use is expected to increase with upcoming rent
increases effective July 1, 2026. For example, 20 units were leased at Independent Plaza in the past two months. HAP use is reported monthly to the Board.
• Fiscal Year 2025-2026 was overbudgeted, and in Fiscal Ye ar 2026-2027
c
onservative estimated of HAP is utilized due to initiatives to minimize HAP shortf
all.
• Measures taken to date seems to be working to limit HAP shortfall. • It is expected that AHA will be in or around HAP shortfall in calendar year 2026.

Based on outdated data, HUD believes AHA to be out of shortfall.

HUD r
equires agencies “at risk of shortfall” to closely monitor HAP . 16 15
16 9
Housing Assistance Payments
17 Housing Assistance Payments
18 Alameda LandlordsHAP
Income
HAP
Expense
HUD remits HAP to AHA, then AHA remits HAP to
Alameda landlords.

AHA and AAHC are also Alameda landlords and budgeted
to receive approximately $12+ Million in HAP annually
17 18
10 Capital Improvement Plan (CIP)
(Attachment 3 of the Board of Commissioners Memorandum) 19 Capital Improvement Projects
• Primary Sources to pay for these include:
• Cash flow from the specific property
• Replacement reserves held by lenders are generally to specific properties (subject to lender approval)
• AHA held reserves pursuant to the Board approved Reserves Policy • Priorities on these projects will focus on life safety and projects r
elated to long term deferred maintenance
• Independence Plaza remediation from the flood and fire is the highest priority
• W
ork is ambitious and priorities may change
20 19
20 11
Capital Improvement Projects
21 Housing Programs Department Operating Deficit
22 21
22 12
• Fiscal Year 2026-2027 Net Loss expected - $1,000,000
• Cost issues – 11th year of losses
• HUD has not provided sufficient administrative fee income to support the Housing Program • Actual projected loss for FY 2025-26 is lower than expected due to staff vacancies and cost efficiencies (of approximately $500k).
• Staffing may need to be reallocated/reduced in future years to balance the Housing Programs Departmen
t budget
• Proposed Board Action
• Approve fund transfer of up to $1,000,000 in next fiscal year, as needed, from property operating income t
o the Housing Programs Department and or from Moving-to-Work fungible funds 23 Housing Programs Operating Deficit
Staff Recommendation
• Adopt the Resolution to Approve the Combined Housing Authority of the City of
Alameda (“AHA”) and Alameda Affordable Housing Corporation (“
AAHC”) One-Year Budget for Fiscal Year July 1, 2026 to June 30, 2027 including appr
oval of: A) Summary of the Fiscal Year 2026-2027 Budget and r
elated income and expenses; B) Housing Assistance Payment (HAP) P
assthrough Budget and related expenditure of HUD-held HAP reserves; C) Capit
al Improvement Plan (CIP) Budget and related use of property and ag
ency reserves and any surplus operating cash from Fiscal Year 2026-2027 t
o cover these expenses; D) Transfer by the Executive Director of up to $1,000,000 in this budget year, as needed, from AHA/AAHC property r
eserves or from Moving-To-Work fungible funds to cover deficits in the Housing Pr
ograms Department administrative operating budget; andE) Adopt the R
evised Schedule of Authorized Positions for Fiscal Year 2026- 2027 and Pay Schedule for Fiscal Year 2026-2027.
24 23
24 13
www.alamedahsg.org
Thank you to the Board of Commissioners
and AHA staff
25 AGENDA SPECIAL MEETING OF THE BOARD OF COMMISSIONERS DATE & TIME Wednesday, August 19, 2026 - 6:00 PM

LOCATION
Independence Plaza, 703 Atlantic Avenue, Alameda - Ruth Rambeau Memorial Community Room

PUBLIC PARTICIPATION Public access to this meeting is available as follows:

To Attend In-Person -
Independence Plaza, 703 Atlantic Avenue, Alameda - Ruth Rambeau Memorial Community Room

Join Zoom Meeting
https://us06web.zoom.us/j/85229497654?pwd=ERF4c2daq8Agm7t8SwqaXfix0iHEve.1

Meeting ID: 852 2949 7654
Passcode: 141405

Persons wishing to address the Board of Commissioners are asked to submit comments for the public speaking portion of the Agenda as follows:
• Send an email with your comment(s) to [email protected] and [email protected] prior to or during the Board of Commissioners meeting
• Call and leave a message at (510) 871-7435.

When addressing the Board, on agenda items or business introduced by Commissioners, members of the public may speak for a maximum of three minutes per agenda item when the subject is before the Board.

Persons in need of special assistance to participate in the meetings of the Housing Authority of the City of Alameda Board of Commissioners, please contact (510) 747- 4325 (voice), TTY/TRS: 711, or [email protected]
. Notification 48 hours prior to
the meeting will enable the Housing Authority of the City of Alameda Board of Commissioners to make reasonable arrangements to ensure accessibility or language assistance.

1. ROLL CALL

Exhibit 2e
Special Meeting of the Board of Commissioners August 19, 2026

2. REMOTE PARTICIPATION PURSUANT TO RALPH M. BROWN ACT (Government Code Section 54950 et seq.) (“Brown Act”) : The Chair will identify whether any Directors are attending the meeting via teleconference pursuant to the Brown Act.

3. COMMISSIONER RECUSALS

4. Public Comment (Non-Agenda Item(s))

5. AGENDA

5.A.

1. Adopt a Resolution to Authorize the Executive Director to Issue a Letter of Commitment to Award 30 Project-Based Vouchers for the Stardust Gardens development, located at 2408 Pan Am Way, Alameda, Subject to Conditions and With an Estimated Cost of $1.1-$1.3 Million per year for 20 Years, and/or

2. Authorize the Executive Director to Request a Regulatory Waiver or a Request a Moving to Work Demonstration Program Waiver from the U.S.

Department of Housing and Urban Development (HUD) to Waive Compliance from Regulations Otherwise Applicable to Competitive Awards of Project-Based Vouchers, and/or

3. Authorize the Executive Director to Open a Competition for Project-Based Vouchers, subject to a Review of Housing Authority Financial Capability to Award Project-Based Vouchers and to Compliance with All Applicable Regulations, and/or

4. Authorize the Executive Director to take any Action or Direction as the Board of Commissioners May Provide in Response to the Request for Project-Based Vouchers for Stardust Gardens.

6. ADJOURNMENT

* * * Note * * *
• Documents related to this agenda are available on-line at:
https://www.alamedahsg.org/meetings/
• Know Your RIGHTS Under The Ralph M. Brown Act: Government’s duty is to serve the public, reaching its decisions in full view of the public. The Board of Commissioners exists to conduct the business of its constituents. Deliberations are conducted before the people and are open for the people’s review, subject to limited statutory exceptions. In order to assist the Housing Authority’s efforts to accommodate persons with severe allergies, environmental illnesses, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the Housing Authority accommodate these individuals.

To: Honorable Chair and Members of the Board of Commissioners

From:

Vanessa Cooper, Executive Director
Date:

August 19, 2026
Re:

1. Adopt a Resolution to Authorize the Executive Director to Issue a Letter of Commitment to Award 30 Project-Based
Vouchers for the Stardust Gardens development, located at 2408 Pan Am Way, Alameda, Subject to Conditions and
With an Estimated Cost of $1.1-$1.3 Million per year for 20 Years, and/or

2. Authorize the Executive Director to Request a Regulatory Waiver or a Request a Moving to Work Demonstration
Program Waiver from the U.S. Department of Housing and
Urban Development (HUD) to Waive Compliance from
Regulations Otherwise Applicable to Competitive Awards of Project-Based Vouchers, and/or

3. Authorize the Executive Director to Open a Competition for Project-Based Vouchers, subject to a Review of Housing
Authority Financial Capability to Award Project-Based
Vouchers and to Compliance with All Applicable
Regulations, and/or

4. Authorize the Executive Director to take any Action or Direction as the Board of Commissioners May Provide in
Response to the Request for Project-Based Vouchers for
Stardust Gardens.

BACKGROUND
On August 11, 2026, the Housing Authority of the City of Alameda (AHA) received a formal request for 30 PBV units (16 two-bedroom units and 14 three-bedroom units) for Stardust Gardens, which is the first phase of the City’s Rebuilding the Existing Supportive Housing at Alameda Point (RESHAP). AHA estimates an annual cost of approximately $1.1 - $1.3M. The commitment would go under contract (AHAP) in May or June of 2027.

DISCUSSION
The attached slide deck “08-19-2026 Staff Report RESHAP” discusses the issues related to this request and the request itself is attached. Two supplemental presentations on the AHSC and MHP applications (“Current Status Estuary II - Supplementary Presentation” and "Special Meeting Stardust Gardens Competition Analysis - Supplementary Presentation") on the Estuary II status are included as background only.

FISCAL IMPACT
This request is for approximately $26M in Housing Assistance Payments over 20 years.

Legal fees for the work to assess RESHAP request exceed $45,000 to date.

CEQA
N/A

RECOMMENDATION

1. Adopt a Resolution to Authorize the Executive Director to Issue a Letter of Commitment to Award 30 Project-Based Vouchers for the Stardust Gardens development, located at 2408 Pan Am Way, Alameda, Subject to Conditions and With an Estimated Cost of $1.1-$1.3 Million per year for 20 Years, and/or

2. Authorize the Executive Director to Request a Regulatory Waiver or a Request a Moving to Work Demonstration Program Waiver from the U.S. Department of Housing and Urban Development (HUD) to Waive Compliance from Regulations Otherwise Applicable to Competitive Awards of Project-Based Vouchers, and/or

3. Authorize the Executive Director to Open a Competition for Project-Based Vouchers, subject to a Review of Housing Authority Financial Capability to Award Project-Based Vouchers and to Compliance with All Applicable Regulations, and/or

4. Authorize the Executive Director to take any Action or Direction as the Board of Commissioners May Provide in Response to the Request for Project-Based Vouchers for Stardust Gardens.

ATTACHMENTS

1. 08-19-2026 Staff Report RESHAP

2. DRAFT Resolution - Special BOC Meeting (08.19.26)

3. Stardust Gardens PBV Request Letter_executed

4. Current Status Estuary II - Supplementary Presentation

5. Special Meeting Stardust Gardens Competition Analysis - Supplementary Presentation

Respectfully submitted,

Vanessa Cooper, Executive Director

8/19/2026
1 www.alamedahsg.orgAugust 19, 2026SPECIAL BOARD OF COMMISSIONERS MEETING Agenda Item 5.A. www.alamedahsg.orgAgenda1. Overview of the Housing Authority of the City of Alameda (AHA) and the PBV Program2. Overview of AHA’s PBV Selection Policies - Allocation Policy, MTW Activity, and Administrative Plan Policies3. PBV Selection Considerations4. PBV Selection Methods 5. Overview of RESHAP and City’s Request6. Compliance Review7. Risk Analysis8. Review of Potential Next Steps9. Questions 1 2

8/19/2026
2 www.alamedahsg.orgOverview of AHA and PBV Program
www.alamedahsg.orgOverview of the AHA
Established in 1940 in Alameda, California. About 2,000 vouchers across all programs which includes:•Housing Choice Vouchers (HCV)•Project Based Vouchers (PBV)•Veteran’s Affairs Supportive Housing Vouchers (VASH)•Family Unification Program Vouchers (FUP)•Shelter Plus Care Vouchers•Moderate Rehabilitation SRO Vouchers•Emergency Housing Choice Vouchers (EHV)•Stability Vouchers (SV)Current portfolio of over 880 affordable units with 700+ units in the development/acquisition pipeline.Designated an MTW Expansion agency on March 23, 2022, under the Landlord Incentive Cohort. 3 4

8/19/2026
3 www.alamedahsg.orgWhat are Project Based Vouchers (PBV)?•Part of the Housing Choice Voucher (HCV) program Annual Contributions Contract (ACC)•Ties an HCV to a specific unit under a long-term contract•Under HOTMA initial contract can be up to 20 years•One extension up to an additional 20 years•HUD put strict limits on PBV as too many PBV can limit housing choice•MTW allows AHA to go to a higher percentage of PBV but there is still a limit www.alamedahsg.orgWhy are PBV important?•Brings significant federal subsidy to the project for 20 to 40 years •PBV developers can use this additional income in several ways including, but not limited to:•To make funding applications more competitive•To obtain higher rents for low-income units, thus housing lower-income tenants•LIHTC rent restrictions do not apply to PBV units •To serve lower income tenants (50% AMIs or below)•To supplement the operating budget, for example to pay for additional services. •To borrow against in the development/construction stage 5 6

8/19/2026
4 www.alamedahsg.orgAHA’s Typical PBV Award Process
Determine PBV Cap and Adequate Budget Headroom1
Determine PBV Cap and Adequate Budget HeadroomOpen PBV Competition2 Open PBV CompetitionSelect PBV Proposal3
Select PBV ProposalSend Contingent Award Letter4
Send Contingent Award LetterConfirm Adequate Budget for PBV Award5 Confirm Adequate Budget for PBV AwardExecute Agreement to Enter into Housing Assistance Payments6 Execute Agreement to Enter into Housing Assistance PaymentsExecute Housing Assistance Payments Contract7 Execute Housing Assistance Payments Contract8
Fund PBV Vouchers
www.alamedahsg.orgOverview of AHA’s PBV Policies
7 8

8/19/2026
5 www.alamedahsg.orgAHA’s PBV Allocation PolicyOn May 21, 2025, the Housing Authority Board of Commissioners approved the Project-Based Voucher Allocation Policy.In this Allocation Policy, the Housing Authority stated that in order to allow more complexes to benefit from PBV and reduce the federal subsidy at a complex, the AHA limits the number of PBV units on a contract to 40.Board stated a preference for new build projects•prioritize new construction www.alamedahsg.orgAHA’s Approved MTW ActivitiesApproved MTW Activity 2022-10 Elimination of PBV Selection Process for PHA owned Projects without Improvement, Development, or Replacement•AHA can award project-based voucher units to a property owned by a single-asset entity (S.A.E.) of the AHA without engaging in a PBV selection process. Approved MTW Activity 2022-08 Increase PBV Cap •AHA can increase the number of authorized PBV units to the lower of 50 percent of its total authorized units or annual budget authority. 9 10

8/19/2026
6 www.alamedahsg.orgPBV Selection Considerations
www.alamedahsg.orgPBV Selection ConsiderationsGoverned both by the Title 24 of the Code of Federal Regulations, Part 983 and the Housing Authority's Administrative Plan, the Housing Authority must consider:•If this award fits within the Housing Authority’s overall PBV Cap?•If the Housing Authority is in or at risk of shortfall? •Will there be available funding for the date at which an AHAP is required. Will this award put the Housing Authority into shortall? •Does the award adhere to HUD’s PBV selection regulations?•Does the project meet other criteria including environmental review, subsidy layering reviews, and fair housing? 11 12

8/19/2026
7 www.alamedahsg.orgConsideration: PBV CapWith the approved MTW activity, AHA can project-base 50 percent of the lower of its total authorized units (ACC) or annual budget authority. •Total ACC is 2064 of which 50% is 1032 units•Annual budget authority is $46,467,099 of which 50% is $23,233,549•Average per unit per month HAP cost is $2,195•Average per unit per year HAP cost is $26,340•50% of annual budget authority would fund approximately 882 PBV units •Note: does not include special vouchers recently moved to MTW– pending clarification from HUD.Lifetime cap for AHA – Any significant upward increase would rely on new vouchers from HUD or a substantial increase in budget authority www.alamedahsg.orgAdditional PBV CapacityNote: does not include special vouchers recently moved to MTW– pending clarification from HUD. 882 unitsCurrent PBV cap 583 unitsCurrently under PBV HAP contract40 unitsAwarded but not funded (Estuary II)259 unitsPBV Capacity for Additional Units Under PBV Cap13 14

8/19/2026
8 www.alamedahsg.orgDemand Exceeds SupplyIn 2024 AHA issued a Letter of Interest process to ascertain demand. The process showed that there were pending requests for at least 480 additional PBVs, including: •40 for Poplar •280 for North Housing•RESHAP 160Other verbal requests since then have indicated a need for additional operating subsidy to build the next phase at the base and for Operation Dignity (requested 200 vouchers). www.alamedahsg.orgConsideration: Budget24 CFR 983.6(c): PHA determination. The PHA is responsible for determining the amount of budget authority that is available for project-based vouchers and for ensuring that the amount of assistance that is attached to the units is within the amounts available under the ACC. 24 CFR 983.58(a): Analysis of units and budget. A PHA must calculate the number of authorized voucher units that it is permitted to project-base in accordance with § 983.6 and determine the amount of budget authority that it has available for project-basing in accordance with § 983.5(b), before it issues a request for proposals in accordance with §983.51(b)(1), makes a selection based on a previous competition in accordance with §983.51(b)(2), amends an existing HAP contract to add units in accordance with §983.207(b), or noncompetitively selects a project in accordance with § 983.51(c). selects a project in accordance with § 983.51(c). 15 16

8/19/2026
9 www.alamedahsg.orgAHA’s Shortfall History•On July 29, 2025, HUD notified the Housing Authority that it had entered shortfall (Housing Authority’s Total Funding exceeds projected HAP expenses through calendar year end). •As of the date of the letter, the Housing Authority was required to immediately suspend the issuance of vouchers. (See May 2025 Board memo for entire list of activities that AHA had to implement.)•On May 26 2026, HUD notified the Housing Authority that it was out of shortfall but was still required to ensure any new voucher issuance, including PBV awards, does not put the Housing Authority back in shortfall. •Any actions taken by AHA that cause shortfall may make AHA ineligible for shortfall funding resulting in termination of assistance to families.•Throughout 2025 and 2026, AHA has engaged in repeated communications with City staff regarding its inability to issue vouchers particularly due to the stalled development of AHA’s own Estuary II project due to a lack of funds. www.alamedahsg.orgHUD’s Recent Funding Changes For the first time, HUD has created separate groups when considering funding for Housing Authorities in shortfall. (HUD PIH Notice 2026-12 page 50 – 52)•Housing Authorities that will be in shortfall for the first or second time since 2016•Housing Authorities that will be in shortfall for the third, fourth, or fifth time since 2016•Housing Authorities that will be in shortfall for the sixth or more time since 2016•With each subsequent group, the requirements and actions to take to receive shortfall funding become more extensive and restrictive. The likelihood of receiving the shortfall funds also decreases with each subsequent group. Based on the funding and HAP set aside trends for 2025 and 2026 and what is expected in 2027, any expenses that HUD does not fund would have to be paid out of non-federal funds, AHA would not get renewed for this funding in the next year and would be on the hook every year thereafter. 17 18

8/19/2026
10 www.alamedahsg.orgBudget ProjectionsBased on HUD’s two-year-tool, the most recent calculations, assuming a conservative but realistic approach, show the following:•December 31, 2026 – Expect to utilize all of HUD’s 2026 funding and about $1.3M in reserves. Expect to have about $1.8M remaining in reserves. •December 31, 2027 - Expect to utilize all of HUD’s 2027 funding, the remaining $1.8M in reserves, and would still have to cover$369,889.Assumptions:•All HUD shortfall cost saving measures done in early 2025 remain in place.•No AHAP is issued for RESHAP or Estuary II in 2027.•No one is pulled from the HCV waitlist until 2028. AHA last pulled from the list in 2023.•AHA foregoes reimbursement from HUD for program expenses from HAP (budgeted $1M per year) and covers these from non-federal funds.•AHA waives any use of the MTW local nontraditional funds of $1M for housing development in 2026 and 2027 and covers these from non-federal funds.•For 2027, the Housing Authority does not issue any more vouchers and the inflation factor www.alamedahsg.orgPBV Selection Methods
19 20

8/19/2026
11 www.alamedahsg.orgConsideration: PBV Selection MethodsThe Housing Authority is responsible for awarding PBV units to a project. The policies related to this must be stated in the Housing Authority’s Administrative Plan and be pursuant to Title 24 of the Code of Federal Regulations, Part 983.As stated in Chapter 16 of the AHA’s Administrative Plan, there are 3 PBV selection methods:1. For a property owned by a single-asset entity of the AHA, the AHA can award PBV units without engaging in a PBV selection process. (MTW Activity 2022-10);2. AHA may solicit proposals by using a Request For Proposals (RFP) to select proposals on a competitive basis in response to the AHA request; or3. AHA may select proposals based on the project’s previous submission and award under a federal, state, or local government housing assistance competition subject to other requirements discussed later in this presentation www.alamedahsg.orgMethod #1 – Self-Award•AHA awards a PBV contract to a property owned by a single-asset entity of the AHA without engaging in a PBV selection process (approved MTW activity)•AHA has not used this process to date to award vouchers. •Overview of Recent contracts:•IP RAD - approved separately under under RAD and Restore Rebuild regulations•Estuary I – selected with RFP competition in 2021•Linnet Corner – selected with RFP competition in 2022 21 22

8/19/2026
12 www.alamedahsg.orgMethod #2 - RFPOpen a Request for Proposals (RFP)•Must meet HUD requirements and the requirements of the Administrative Plan •Housing Authority must make its own determination regarding available funding and adhering to applicable HUD requirements regarding such a competition•The RFP may not limit proposals to a single site or impose restrictions that explicitly or practically preclude owner submission of proposals for PBV housing on different sites (Title 24 of the Code of Federal Regulations, Part 983 Subpart B Section 51 (b) (1))•The minimum time for the competition to be open is 3 weeks. Board approvals, issuing of the RFP and outreach including publishing in the newspaper, as well as submission and the view of applications also add to the timeline. www.alamedahsg.orgMethod #3 – Rely on Prior CompetitionPursuant to Title 24 of the Code of Federal Regulations, Part 983 Subpart B Section 51 (b) (2):“The PHA may select, without issuing an RFP , a proposal for housing assisted under a Federal, State, or local government housing assistance, community development, or supportive services program that required competitive selection of proposals, where the proposal has been selected in accordance with such program's competitive selection requirements within three years of the PBV proposal selection date. The PHA may not select a housing assistance proposal using this method if the competition involved any consideration that the project would receive PBV assistance.” 23 24

8/19/2026
13 www.alamedahsg.orgRequest from the City and RESHAP
www.alamedahsg.org
RESHAPMidPenAlameda Point CollaborativeBuilding FuturesOperation DignityDeveloper & Managing General PartnerStardust Gardens LP 80 units of new development25 26

8/19/2026
14 www.alamedahsg.orgRequest from the City/RESHAP (1)On August 11, 2026, the Housing Authority received a formal request for no less than 30 PBV units (16 two-bedroom units and 14 three-bedroom units)for Stardust Gardens, which is the first phase of the City’s Rebuilding the Existing Supportive Housing at Alameda Point (RESHAP). RESHAP estimates an annual cost of more than $1.1M. The commitment would go under AHAP in May or June of 2027. www.alamedahsg.orgRequest from the City/RESHAP (2)This request was made so that MidPen can apply for tax credits no later than September 8, 2026 and so by Friday August 21, 2026, RESHAP and the City are asking AHA to do one of the following:•Issue a commitment letter without a competition, relying on their 2026 MHP award as an alternative competition for the purposes of awarding these vouchers, subject to compliance with federal requirements and other conditions. (PBV Selection Method #3)•As an alternative, open a new competition. The requesters claim that the application will not be competitive in the tax credit competition without receipt of such a commitment letter by August 21, 2026. (PBV Selection Method #2) 27 28

8/19/2026
15 www.alamedahsg.orgReview of PBV Selection Method #1Stardust Gardens is not owned by a single-asset entity of the AHA. The AHA only has approval from HUD to award a PBV contract to a property owned by a single-asset entity of the AHA without engaging in a PBV selection process (approved MTW activity).The AHA would have to request and be approved for an additional waiver from HUD to be able to issue a commitment letter without a competition to Stardust Gardens. www.alamedahsg.orgTimeline of Relevant Stardust Gardens Funding Applications Affordable Housing and Sustainable Communities (AHSC) Program • May 2025 - Applied for Award• December 2025 –Received Award• Application included the award of PBV units for a term of 20 years• The AHA never committed to these PBV unitsMultifamily Housing Program (MHP) • June 2026 – Applied for Award• August 2026 – Expect to Receive Award• Application included award of AHSC but did not explicitly state the award of PBV unitsLow-Income Housing Tax Credits (LIHTC) Program •September 2026 –Applying for Award•Requesting PBV commitment for this application29 30

8/19/2026
16 www.alamedahsg.orgRESHAP’s 2025 AHSC Application

1. he extent of such assistance would have to be fleshed out. HUD rules most likely would not count any such City contribution in the AHA’s voucher funding renewal formula, per Notice PIH 2013-28. Thus, the City contribution likely would have to be on a continuing basis over the 20 years. If MidPen is requesting a 20 year HAP contract with a renewal option, it would need to be for 40 years. We encourageyou to look to adding the funds directly to project or support the operations and the TCAC tie breaker. AHA is still reviewing its budget position.

The screenshot below is from RESHAP’s 2025 AHSC application which includes PBV units from the Housing Authority for a contract term of 20 years under the which “Income from Subsidies” section. AHA has not committed an award of PBVs to MidPen or to RESHAP . www.alamedahsg.orgAHSC Consideration of Vouchers1. The application shows voucher income necessary to meet the State Uniform Multifamily Regulation underwriting requirements for 15 years of positive cash flow. This is a threshold requirement.2. The application shows voucher income necessary to support a permanent loan of $6,590,000. Without vouchers, this loan is not available and there is a funding gap.3. The application shows vouchers as ‘YES’ in section 33. The number of vouchers listed is 20 and the term is 20 years.4. The market study requires 40 vouchers for feasibility, in particular 20 vouchers for the homeless units.5. The $1,170,000 funding commitment from the Federal Home Loan Bank Affordable Housing Program requires 39 homeless units. Homeless units typically require vouchers or other operating subsidies, as is indicated in the market study. 31 32

8/19/2026
17 www.alamedahsg.orgAHA’s History Regarding RESHAP’s AHSC Application•AHA was never informed by the City, MidPen, or APC of the application or the insertion of AHA’s vouchers therein•AHA staff met regularly with the Mayor and City staff during this period and it was not mentioned•APC is required to disclose such applications under the North Housing MOU with AHA but failed to do so •AHA found out about the award in the press•AHA wrote to the City and RESHAP in January 2026 to inform them of the lack of vouchers and their concerns about the AHSC application.

In
www.alamedahsg.orgStardust GardensPotential MHP TimelineDecember 10, 2025 AHSC award made to Stardust GardensAugust 21, 2026 Accept MHP GAP funding of $15 millionSeptember 8, 2026 Apply for bonds/tax credits to CDLAC/CTCAC, as required by MHPDecember 9, 2026 CDLAC/CTCAC anticipated awardMay 9, 2027 180 days from CDLAC award –bond issuance, construction start.December 10, 2027 AHSC last date to close (secure all perm financing 24 mo. from award)May 2029 Two years (est.) construction timeline to completionIf 9/8/26 CDLAC application is unsuccessful, the project can work with State HCD to allow for future 4% or 9% applications, likely February 2027, which push the timeline out by five months+. 33 34

8/19/2026
18 In the Housing Authority's experience, this could take anywhere from half a year to two years to complete, assuming HUD would return with additional question and requests for documentation. www.alamedahsg.orgMHP Application Includes AHSC Award www.alamedahsg.orgMHP GAP Application•Requires AHSC award for eligibility•Reduced total development costs by $1.2 million•Reduced operating costs by 30%.•Reduced perm loan by 90%•Affordability remains at average of 36% AMI (extremely low income on average) and target population says ‘formerly homeless.’ 35 36

8/19/2026
19 www.alamedahsg.orgRESHAP Request Pt. 1 – Rely on MHP ApplicationPursuant to Title 24 of the Code of Federal Regulations, Part 983 Subpart B Section 51 (b) (2):“The PHA may not select a housing assistance proposal using this method if the competition involved any consideration that the project would receive PBV assistance.”RESHAP’s MHP Application relies on AHSC Award whose loan and cash flow relies in part on the inclusion of uncommitted PBV units. www.alamedahsg.orgHUD’s Response to PBV Policy Revisions (1)Commenters asked HUD to remove or narrow the requirement that a prior competitive selection not involve any consideration that the project would receive PBV assistance. One commenter specifically proposed limiting the restriction to situations where points were awarded for PBVs. HUD rejected that approach, explaining that allowing anticipated PBV assistance to influence the earlier competition could give a project an advantage and undermine the integrity of both the PBV selection process and the other federal, state, or local funding competition.Federal Register / Vol. 79, No. 122 / Wednesday, July 25, 2014 / Rules and Regulations, P . 36155, 36156. 37 38

8/19/2026
20 www.alamedahsg.orgHUD’s Response to PBV Policy Revisions (2)Please note, in response to a commenter’s suggestion to drop the requirement that “if the competition involved any consideration that the project would receive PBV assistance” (24 CFR 983.51(b)(2)), in the final rule, HUD responded in the Preamble: “HUD understands the limitations presented by the commentor because of the provision that prohibits a PHA from selecting a housing assistance proposal that included any consideration that the project would receive PBV assistance; however, this provision maintains the integrity of a competitive selection method and will not be revised in this final rule.” Federal Register / Vol. 89, No. 89 / Tuesday, May 7, 2024 / Rules and Regulations, P . 38224, 38265. www.alamedahsg.orgEstimated Budget for RESHAP PBVRESHAP Request for 30 PBV units:•AHA estimates these 30 vouchers could cost up to $1.3M per year (assuming homeless families come in with little or no income) and up to $26M over a 20-year contract•When APC cancels its current PBV contract for 25 PBV units, the AHA has to issue an HCV for each household according to regulations. AHA expects to pay $784k per year for this HCV assistance. This amount could be mitigated to the extent households voluntarily trade in their HCV for PBV at Stardust Gardens.•Total expected costs are about $2M per year•All parties agrees that per HUD regulation the current APC contract cannot transfer to Stardust Gardens LP without a waiver. AHA has offered to submit a HUD or MTW waiver already anticipated the end of the contract in the future. 39 40

8/19/2026
21 www.alamedahsg.orgBudget ConsiderationsDecember 31, 2027 - Expect to utilize all of HUD’s 2027 funding, the remaining $1.8M in reserves, and would still have to cover $369,889.Total new expected costs for RESHAP’s request are about $1.3M per year •We don’t expect to have any reserves by the end of 2027 and may be notified by HUD that we are in shortfall. •Per HUD PIH Notice 2026-12 “PHAs in confirmed shortfall may not issue new requests for proposals (RFPs) or select new PBV proposals or projects after the shortfall confirmation.” The only exceptions to this are RAD PBV HAP contracts and RFPs, PBV proposals or projects pursuant to a CY 2025 or CY 2026 allocation of Tenant Protection Vouchers. Neither of these exceptions apply to this case. •Estuary II which was already selected in the 2021 PBV competition and is expected to cost about $1.1M per year for 40 homeless units will have to be delayed again. www.alamedahsg.orgPotential Next Steps
41 42

8/19/2026
22 www.alamedahsg.orgAHA’s Review of RESHAP’s Request AHA staff have reviewed the requests extensively including:•Review of all applicable HUD regulations and AHA policies•Discussions with HUD in July 2026 and August 2026•Discussions with Legal Counsel•Discussions with HCD (the prior awarding agency) •Requests for documentation from MidPen•Review of the AHSC and MHP application At this time, AHA staff are proposing, as possibilities, the following next steps. www.alamedahsg.orgOption #1Authorize the Executive Director to Issue a Letter of Commitment to Award 30 Project-Based Vouchers for the Stardust Gardens Development, located at 2408 Pan Am Way, Alameda, Subject to Conditions and With an Estimated Cost of $1.1-$1.3 Million per year for 20 Years 43 44

8/19/2026
23 www.alamedahsg.orgOption #1 Considerations1. HUD’s two-year tool shows a shortfall position in 2027.2. AHA cannot award PBV to an outside party without a competition. This would bypass both federal regulation and the AHA’s Administrative Plan.3. AHA cannot rely on MHP as per HUD regulations that “The PHA may not select a housing assistance proposal using this method if the competition involved any consideration that the project would receive PBV assistance.” 4. A PBV application, site selection, and proforma was not completed and submitted for AHA’s review. The AHA would have to rely on the commitment letter’s conditions to be protected if the project does not comply with federal requirements. www.alamedahsg.orgOption #1 Risks and Consequences1. The Housing Authority’s Insurance may not defend the Housing Authority in a lawsuit if the Housing Authority knowingly ignored HUD’s regulation or direction.2. HUD could challenge AHA’s grounds for providing such a letter, given HUD’s regulations and that the MHP application relied on the AHSC award for which the application contains income from Project-Based Vouchers.3. HUD has broad authority to penalize a housing authority that does not adhere to its contractual obligation to administer its programs in compliance with HUD requirements and likely would consider whether individuals knowingly took these actions. That broad authority could include rescission of a contract award, reimbursement with non-federal funds or in a particularly egregious case, receivership for the Section 8 program and/or debarment for officials who authorized such actions4. There is also a risk of legal action from other parties who were not given the same opportunity. 45 46

8/19/2026
24 www.alamedahsg.orgOption #2Authorize the Executive Director to Request a Regulatory Waiver or a Request a Moving to Work Demonstration Program Waiver from the U.S. Department of Housing and Urban Development (HUD) to Waive Compliance from Regulations Otherwise Applicable to Competitive Awards of Project-Based Vouchers www.alamedahsg.orgOption #2 DetailsIf the Housing Authority were to request that HUD waive the regulations listed above it could do so in two ways:•Submitting a waiver directly to the HUD Field Office; and/or•Requesting the regulations be waived as part of an activity in the Moving to Work SupplementFor example, AHA could submit a waiver request to HUD to rely on the MHP completion A waiver provides the clearest feedback from HUD and best assurance for any issues where clarity is needed. 47 48

8/19/2026
25 www.alamedahsg.orgOption #2 Details (2)•RESHAP also proposes a local preference limited to the RESHAP area of the former base. •HUD regulations at 24 CFR 982.207(b)(ii) state that an area smaller than a county or municipality may not be used as a residency preference area. Any change would require HUD or MTW waiver and would be a Significant Amendment to the Administrative Plan which would generally be done post award of the vouchers. •AHA cannot provide a site-specific preference at this time but could work with RESHAP , subject to Board approval, to submit a waiver if RESHAP is awarded vouchers. www.alamedahsg.orgOption #2 ConsiderationsIssues:•Can be a lengthy, staff-intensive, and uncertain process to draft and obtain waivers.Benefits:•Would receive an approval from HUD which could protect the Housing Authority from liabilities resulting from the exceptions being requested to HUD and Housing Authority policy. 49 50

8/19/2026
26 www.alamedahsg.orgOption #3Authorize the Executive Director to Open a Competition for Project-Based Vouchers, subject to a Review of Housing Authority Financial Capability to Award Project-Based Vouchers and to Compliance with All Applicable Regulations www.alamedahsg.orgOption #3 Considerations1. Does not meet RESHAP’s timeline.2. HUD’s Two-year tool currently still shows a shortfall for 2027 which is when the AHAP would be signed and is considered an obligation by HUD.3. Budget information should be much clearer after September 1 when the new FMRs should be published, and assuming HUD uses the same methodology for 2027, the Replacement Funding Inflation Factor can be properly calculated. 4. A new competition is the cleanest way to provide vouchers and limits liability to the agency and allows a proper due diligence period to occur. It also allows for fair access to funds from other parties who may be seeking PBV. It would also be consistent with AHA’s prior practice. 51 52

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27 www.alamedahsg.orgOption #4Authorize the Executive Director to take any Action or Direction as the Board of Commissioners May Provide in Response to the Request for Project-Based Vouchers for Stardust Gardens www.alamedahsg.orgThank you!Questions?
53 54

HOUSING AUTHORITY OF THE CITY OF ALAMEDA

Resolution No.

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING

AUTHORITY OF THE CITY OF ALAMEDA APPROVING A LETTER OF COMMITMENT TO RESHAP WITH AN AWARD OF 30 PROJECT -BASED VOUCHERS FOR STARDUST GARDENS LP, LOCATED AT 2408 PAN AM WAY, ALAMEDA,

CALIFORNIA SUBJECT TO CONDITIONS AS SET FORTH THEREIN AND WITH AN ESTIMATED COST OF $1.1 TO $1.3 MILLION PER YEAR FOR 20 YEARS , AND

AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AND TRANSMIT THE

LETTER OF COMMITMENT TO RESHAP

RECITALS

WHEREAS, established in 1940, the Housing Authority of the City of Alameda (“AHA”) administers the federal Housing Choice Voucher and Project-Based Voucher (“PBV”) programs in the City of Alameda, along with various other housing programs; and

WHEREAS, on August 11, 2026, the Housing Authority received a formal request for 30 PBV units for Stardust Gardens LP, which is the first phase of the City of Alameda’s Rebuilding the Existing Supportive Housing at Alameda Point project (RESHAP); and

WHEREAS, the RESHAP project is a plan to construct and manage permanent supportive housing on an approximately 8-acre campus located at the former Alameda Naval Air Station at 2408 Pan Am Way, Alameda, California; and

WHEREAS, the request for 30 PBV units for Stardust Gardens LP includes 16 two-bedroom units and 14 three-bedroom units at an approximate annual cost of more than $1.1 to $1.3 million.

NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE HOUSING

AUTHORITY OF THE CITY OF ALAMEDA DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Board of Commissioners hereby authorizes a Letter of Commitment to be issued to RESHAP with an award of 30 project- based vouchers for Stardust Gardens LP, located at

2 | P a g e
2408 Pan Am Way, Alameda, California, subject to conditions as set forth therein and with an estimated cost of $1.1 to $1.3 million per year for 20 years.

SECTION 3. The Board of Commissioners hereby delegates the final form of the Letter of Commitment to the Executive Director, subject to legal counsel approval as to form.

SECTION 4. The Board of Commissioners authorizes the Executive Director to execute and transmit the final Letter of Commitment to RESHAP.

SECTION 5. The Clerk of the Board shall certify to the adoption of this Resolution, which, shall in turn, have immediate effect.

PASSED, APPROVED, and ADOPTED this 19th day of August 2026.

Ayes: XX Commissioners:

Nayes: XX Commissioners:

Abstain: XX Commissioners:

Absent: XX Commissioners:

[SIGNATURE PAGE FOLLOWS]

ATTEST:

Vanessa M. Cooper Vadim Sidelnikov, Vice Chair
Secretary/Executive Director Board of Commissioners

Approved as to form:

General Counsel Name,
General Counsel,
General Counsel Firm Name

Adopted: August 19, 2026

Docusign Envelope ID: 9ACEACD0-D15C-8210-82A6-8FBC595BF230 August 11, 2026
Ms. Vanessa Cooper
Executive Director
Housing Authority of the City of Alameda
701 Atlantic Avenue
Alameda, CA 94501
RE: Stardust Gardens - Formal Request for Project-Based Section 8 Vouchers Dear Ms. Cooper:

The City of Alameda (City), MidPen Housing Corporation (MidPen), and Alameda Point Collaborative (APC) formally request an allocation of budget sufficient to fund not less than 30 dwelling units using a Project-Based Vouchers (PBV) housing assistance payment (HAP) agreement with the Housing Authority of the City of Alameda (AHA) for Stardust Gardens, which is the first phase of the City’s Rebuilding the Existing Supportive Housing at Alameda Point (RESHAP)1. The following also details the context, proposed implementation timeline, procurement options, and budget mitigation.

Context
Alameda Naval Air Station (Alameda NAS) was subject to the Base Closure and Realignment Act (BRAC) and as part of the award by the United States Department of Defense (DOD) to the City, the City committed to a housing plan, approved by DOD and HUD, that would provide housing to the homeless or persons at risk of homelessness.2 To meet the HUD approved requirements, the City must continuously provide a minimum number of housing units serving this population. While it is possible to apply for Low-Income Housing Tax Credits (LIHTC) with the funding already secured, without a PBV commitment, Stardust Gardens cannot serve the existing extremely low-income residents at Alameda Point and would not meet the requirements of the approved housing plan.

Current PBV Obligations
AHA currently budgets approximately SIMM to provide 25 PBVs for APC residents at risk of homelessness at Alameda Point under a PBV housing assistance payments agreement (PBV HAP) (throughout this letter, the current PBV HAP for Alameda Point is referred to as the Alameda Point PBV HAP). As set forth below, APC would terminate the Alameda Point PBV HAP concurrently with the AHA funding the new PBV HAP once Stardust Gardens is placed in service. Existing residents at Alameda Point will be given a de facto “right of return” because they will receive a preference to move into Stardust Gardens once it is complete.

The requested PBV budget for Stardust Gardens will allow MidPen and APC to continue serving the City’s most vulnerable households, remaining in compliance with the DOD and HUD obligations, while maintaining professional on-site management and operations. Stardust Gardens will primarily serve existing APC residents at risk of homelessness who currently reside at Alameda Point, replacing the aging former Navy housing that is provided at Alameda Point with new affordable apartments that include modern, accessible, and more habitable units, improved infrastructure, and enhanced community spaces.

MidPen and APC have structured the Stardust Gardens request for 30 PBVs to limit the financial impact on AHA while aligning with the budget value of the existing Alameda Point PBV HAP. The 30 PBVs requested are necessary to support the project’s long-term financial sustainability. See summary table below.

Docusign Envelope ID: 9ACEACD0-D15C-8210-82A6-8FBC595BF230 ^Estimate based on AHA Payment Standards effective 3/19/26 assuming utility allowance for electricity, electric cooking, gas heating, gas hot water and garbage.

UNIT TYPE EXISTING

ALAMEDA

POINT PBV

HAP UNITS

ESTIMATED

ALAMEDA POINT
PBV HAP BUDGET*

STARDUST

GARDENS PBV

REQUEST

ESTIMATED FUTURE

STARDUST GARDENS

PBV CONTRACT
BUDGET
Two-
Bedroom
10 16
Three-
Bedroom
9 14
Four-
Bedroom
6 TOTAL 25 $1,093,068 30 $1,049,640
Request
MidPen and APC request that AHA provide a PBV commitment letter for Stardust Gardens for the September 8, 2026 tax credit and tax-exempt bond application. This commitment is critical to the because the PBVs provide the long-term rental subsidy necessary to support the project’s operating costs required to serve households at-risk of homelessness. Importantly, AHA is being asked to make the commitment now, but the PBVs would not be utilized until Stardust Gardens is completed and placed in service. At that time, AHA would enter into a new PBV HAP Agreement for Stardust Gardens, at a budget value comparable to the existing APC PBV contract, concurrent with termination of the existing APC PBV HAP Agreement. AHA, MidPen, and APC would work together to coordinate that transition consistent with the proposed timeline below.

AHA currently
funds 25 PBV
units at APC
Alameda Point
housing
AHA issues
commitment
letter for Stardust
Gardens by 9/2/26 Stardust Gardens Construction
Feb 2029: Stardust
Gardens
completes
construction &
begins move-ins
2026 2027
MidPen & APC
submit Stardust
Gardens tax credit
application by
9/8/26
2028 2029___________
Feb 2029: Existing
APC contract
terminates
Feb 2029: AHA & MP
Stardust Gardens
Associates, L.P.
execute new PBV
Contract
State of California Department of Housing and Community Development Multifamily Housing Program Procurement
As a matter of federal regulation, PHAs may award PBV HAP without issuing or undertaking a request for proposal (RFP) process as long as it is permitted in AHA’s PHA Administrative Plan.3 MidPen competed for funding under the California Department of Housing and Community Development (HCD) Multifamily Housing Program (MHP) in June 2026 and expects to receive and award by August 17, 2026.

The MHP application did not include any project-based vouchers. MHP is a state housing assistance program that complies with the competitive award parameters set forth in the federal regulations.

Accordingly, AHA, as a PHA and housing authority enabled under California law, has the statutory and regulatory authority under federal and state law to award Stardust Gardens a PBV commitment without issuing an RFP because Stardust Gardens underwent the MHP competitive selection process and the MHP award was granted within three years of MidPen’s PBV proposal.

Docusign Envelope ID: 9ACEACD0-D15C-8210-82A6-8FBC595BF230 If AHA can identify a legal reason that the MHP program would not otherwise comply with the parameters of the federal regulations, another alternative would be for AHA to hold their own competitive process to which Stardust Gardens could apply.

Budget Risk Mitigation
When the Alameda Point PBV HAP is eventually terminated, we understand that AHA is required to offer the existing households a tenant protection voucher (TPV) under Section 8(t) of the United States Housing Act of 1937 (Housing Act of 1937).

In the unlikely scenario that residents living in an existing APC Project-Based Voucher unit elect to move to a non-subsidized unit instead of Stardust Gardens, the City is prepared to propose funding support for AHA, solely restricted to Alameda Point, if such a deficit was realized because of Stardust Gardens.

To better understand and quantify this potential budget impact, MidPen and APC have retained the services of relocation consultant, Autotemp, who is beginning relocation interviews with existing residents this month. The goal is to provide existing households with more information about their housing options and to gain a clearer picture of their likely choices ahead of the commencement of Stardust Gardens construction.

We are eager to partner with AHA to realize the long-term vision of replacing aging housing and catalyze new housing and neighborhood amenities at Alameda Point. We look forward to meeting with you and your team on Wednesday, August 12, 2026 to discuss this request further. Thank you for your consideration.
z------Signed by:
—3eDAD630DDDr4Dp-------
Gerry Beaudin
City Manager
City of Alameda
Abby Goldware Potluri
Senior Vice President
MidPen Housing Corporation
x------Signed by:
-------1038D90rnaA4C3------------------------------------- Andrea Urton
Executive Director
Alameda Point Collaborative
1 AHA is a Moving to Work (MTW) public housing agency (PHA) and a housing authority enabled under California law. The MTW program is a demonstration program administered by the United States Department of Housing and Urban Development (HUD) with select PHAs. Participation in the MTW required AHA to enter into an MTW agreement with HUD. AHA executed its MTW Agreement in 2022 and has both amended and supplemented its MTW arrangement, with HUD’s approval from time to time, as recently as July of this year.

AHA enjoys statutory and regulatory relief unavailable to most of the nation’s 3,000 or so PHAs. That relief includes AHA’s ability to “funge” its operating, capital, and HCV appropriation as it decides, provided such decisions are publicly disclosed and in compliance with AHA’s annual HUD-approved PHA Administrative Plan.

Further, like all MTW PHAs, AHA is not subject to many of the restrictions imposed on PHAs with respect to the