INTRODUCTION
This Housing Successor Annual Report (“Report”) addresses the requirements of California Health and Safety Code Section 34176.1(f) regarding the Low and Moderate Income Housing Asset Fund (“LMIHAF”). This Report outlines the financial and housing covenant details of the Cathedral City Housing Successor Agency (“Housing Successor”) for Fiscal Year 2024- 2025 (the “Fiscal Year”). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (“Dissolution Law”).
This report includes discussion on the deposits to, ending balance of, and expenditures from the LMIHAF. A description of the Housing Successor’s assets, and any transfers of assets to other housing successor agencies are addressed as well. The report also discusses the Housing Successor’s current projects, acquisitions of any real property since February 1, 2012, or any outstanding obligations. Finally, as required by law, three separate tests are discussed – the income test, senior housing test, and excess surplus test.
The financial portion of the Report is based on the independent financial audit of the Low and Moderate Income Housing Asset Fund for Fiscal Year 2024-2025 as prepared by LSL, LLP (“Auditor”) as part of the audit for the City of Cathedral City. The financial audit was provided to the City Council on December 26, 2025 and is separate from this annual summary report. In addition, this Report and the former redevelopment agency’s pre-dissolution Implementation Plans are available to the public on the City’s website. (http://www.cathedralcity.gov)
LOAN PAYMENTS RECEIVED
This section provides the total amount of loan repayments received during the fiscal year pursuant to the loan repayment formula described in Section 34191.4(b)(3)(A).
There was no outstanding loan between the City and the redevelopment agency. Therefore, there were no monies received/deposited in accordance with Section 34191.4(b)(3)(A).
AMOUNT DEPOSITED INTO LMIHAF
This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited pursuant to Section 34191.4(b)(3)(B) and (C), and any amounts deposited for items listed on the Recognized Obligation Payment Schedule (“ROPS”) must be distinguished from the other amounts deposited.
A total of $331,809 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, a total of $0 was held for items listed on the ROPS. These deposits originated from housing program loan repayments.
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
ENDING BALANCE OF LMIHAF
This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.
At the close of the Fiscal Year, the ending balance in the LMIHAF was $11,898,668, of which $0 was held for items listed on the ROPS.
DESCRIPTION OF EXPENDITURES FROM LMIHAF
This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized. There was a total of $189,586 expended from the LMIHAF, divided into the following categories:
TABLE 1: DESCRIPTION OF LMIHAF EXPENDITURES
STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR
This section provides the statutory value of real property owned by the Housing Successor, the value of loans, loan interest and grants receivables, and the sum of these two amounts.
TABLE 2: STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR
Total ExpendituresMaintenance, Monitoring, and Administration Expenditures $ 197,541 Homeless Prevention and Rapid Rehousing Services Expenditures (Relocation)Housing Development Expenditures (Total of Next Three Lines)Expenditures on Moderate Income Units $ - Expenditures on Low Income Rental Units $ - Expenditures on Very-Low Income Rental Units $ - Expenditures on Extremely-Low Income Rental Units $ - Total LMIHAF Expenditures in Fiscal Year $ 197,541 (All assistance was for rental units)Cap on Administration Expenditures:5% of Statutory Value of Assets or $263,100, whichever is greater $ 760,644 Description of Expenditures - Current Year Asset TypeLoans (Many of which are forgivable)$14,805,818 Land (Real Property) 532,996 Total Assets$15,338,814 Statutory Value of Assets 22 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
DESCRIPTION OF TRANSFERS
The Housing Successor did not make any transfers to other agencies in the Fiscal Year.
PROJECT DESCRIPTIONS
The Housing Successor did not have any projects for which it receives or holds property tax revenue pursuant to the ROPS.
STATUS OF COMPLIANCE WITH SECTION 33334.16
This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time period described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date of the DOF approved such property as a housing asset.
The following provides a status update on the real property or properties housing asset(s) acquired prior to February 1, 2012 and compliance with the five-year period. Table 3A is a listing of the remaining housing assets. Table 3B is a listing of housing assets sold and/or donated in prior fiscal years.
TABLE 3A: SECTION 33334.16 COMPLIANCE
APNDate AcquiredDOF Transfer ApprovalOriginal Cost Status of Activity675-030-022 2011 9/7/2012 $ 10,640 675-030-039 2011 9/7/2012 23,846675-030-047 2011 9/7/2012 10,773675-030-049 2011 9/7/2012 69,950675-030-050 2011 9/7/2012 86,235687-196-001-006 2000 9/7/2012 331,552687-198-001-006 2000 9/7/2012 0TOTAL $ 532,996 23 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
TABLE 3B: SECTION 33334.16 COMPLIANCE
Continued on next page
APNDate AcquiredDOF Transfer ApprovalOriginal Cost Status of Activity660-360-012 2009 9/7/2012 $106,000 Sold FY 19/20-Housing Fund Replenished675-271-040 2004 9/7/2012 8,074 Sold FY 17/18-Housing Fund Replenished675-292-010 2006 9/7/2012 5,537 Sold FY 16/17-Housing Fund Replenished677-291-021 1993 9/7/2012 16,500 Sold FY 17/18-Housing Fund Replenished677-291-022 1994 9/7/2012 13,000 Sold FY 17/18-Housing Fund Replenished677-331-003 1993 9/7/2012 10,400 Sold FY 18/19-Housing Fund Replenished677-373-008 1995 9/7/2012 34,600 Sold FY 18/19-Housing Fund Replenished677-382-005 1993 9/7/2012 15,250 Sold FY 17/18-Housing Fund Replenished677-382-006 1993 9/7/2012 15,250 Sold FY 17/18-Housing Fund Replenished677-382-007 2003 9/7/2012 30,325 Sold FY 17/18-Housing Fund Replenished677-382-008 2001 9/7/2012 26,744 Sold FY 17/18-Housing Fund Replenished677-383-001 1993 9/7/2012 16,750 Sold FY 17/18-Housing Fund Replenished677-383-002 1993 9/7/2012 16,750 Sold FY 17/18-Housing Fund Replenished677-393-003 2004 9/7/2012 10,000 Sold FY 17/18-Housing Fund Replenished677-441-011 2003 9/7/2012 3,000 Sold FY 18/19-Housing Fund Replenished677-441-012 2003 9/7/2012 3,000 Sold FY 18/19-Housing Fund Replenished677-442-015 2004 9/7/2012 2,688 Sold FY 18/19-Housing Fund Replenished677-445-014 2004 9/7/2012 2,252 Sold FY 18/19-Housing Fund Replenished677-510-061 2011 4/28/2014 0 Sold FY 18/19-Housing Fund Replenished678-081-019 2004 9/7/2012 7,481 Sold FY 16/17-Housing Fund Replenished680-251-055 1995 9/7/2012 6,727 Sold FY 17/18-Housing Fund Replenished680-301-001 2005 9/7/2012 130,000 Sold FY 17/18-Housing Fund Replenished680-301-002 2005 9/7/2012 130,000 Sold FY 17/18-Housing Fund Replenished680-401-010 1996 9/7/2012 4,840 Sold FY 16/17-Housing Fund Replenished680-442-039 1998 4/28/2014 0 Sold FY 16/17-Housing Fund Replenished680-482-018 4/28/2014 0 Sold FY 17/18-Housing Fund Replenished687-197-002 2001 9/7/2012 46,434 Sold FY 17/18-Housing Fund Replenished687-197-006 2005 9/7/2012 125,000 Sold FY 17/18-Housing Fund Replenished687-197-007 2005 9/7/2012 150,000 Sold FY 17/18-Housing Fund Replenished687-197-014 1999 9/7/2012 70,220 Sold FY 17/18-Housing Fund Replenished687-212-001 1995 9/7/2012 97,190 Sold FY 16/17-Housing Fund Replenished687-212-002 1995 9/7/2012 82,000 Sold FY 16/17-Housing Fund Replenished687-212-003 1995 9/7/2012 31,000 Sold FY 16/17-Housing Fund Replenished687-212-004 1995 9/7/2012 32,000 Sold FY 16/17-Housing Fund Replenished687-212-005 1995 9/7/2012 41,999 Sold FY 16/17-Housing Fund Replenished687-213-001 2006 9/7/2012 197,785 Sold FY 17/18-Housing Fund Replenished687-213-003 2005 9/7/2012 90,750 Sold FY 17/18-Housing Fund Replenished687-213-004 2005 9/7/2012 90,750 Sold FY 17/18-Housing Fund Replenished687-213-007 2006 9/7/2012 195,500 Sold FY 17/18-Housing Fund Replenished687-213-008 2002 9/7/2012 71,538 Sold FY 17/18-Housing Fund Replenished687-213-010 2002 9/7/2012 70,990 Sold FY 17/18-Housing Fund Replenished687-213-011 2008 9/7/2012 282,635 Sold FY 17/18-Housing Fund Replenished 24 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
Health and Safety Code Section 33334.16 required former redevelopment agencies to initiate activities, such as zone changes or disposition and development agreements within five years of acquiring a property. Pursuant to Health and Safety Code Section 33334.16, the legislative body is authorized to extend the deadline to initiate activities by an additional five years upon affirming the intention to develop housing affordable to households of low and moderate income.
APNDate AcquiredDOF Transfer ApprovalOriginal Cost Status of Activity687-214-002 2002 9/7/2012 141,285 Sold FY 14/15-Housing Fund Replenished687-214-007 2004 9/7/2012 33,647 Sold FY 17/18-Housing Fund Replenished687-214-008 2002 9/7/2012 153,152 Sold FY 17/18-Housing Fund Replenished687-215-001 1995 9/7/2012 30,926 Sold FY 16/17-Housing Fund Replenished687-215-002 1999 9/7/2012 34,505 Sold FY 16/17-Housing Fund Replenished687-215-003 1996 9/7/2012 19,700 Sold FY 16/17-Housing Fund Replenished687-215-004 9/7/2012 0 Sold FY 16/17-Housing Fund Replenished687-216-014 2004 9/7/2012 90,500 Sold FY 17/18-Housing Fund Replenished687-241-038 2001 9/7/2012 96,004 Sold FY 17/18-Housing Fund Replenished670-197-005 2004 9/7/2012 12,923 Sold FY 16/17-Housing Fund Replenished675-242-005 2004 9/7/2012 16,417 Sold FY 16/17-Housing Fund Replenished675-271-036 2004 9/7/2012 13,797 Sold FY 17/18-Housing Fund Replenished675-271-037 2004 9/7/2012 17,909 Sold FY 17/18-Housing Fund Replenished675-271-041 2004 9/7/2012 14,490 Sold FY 17/18-Housing Fund Replenished675-271-042 2004 9/7/2012 14,491 Sold FY 17/18-Housing Fund Replenished675-302-015 2004 9/7/2012 21,481 Sold FY 17/18-Housing Fund Replenished675-362-012 2004 9/7/2012 15,846 Sold FY 16/17-Housing Fund Replenished677-510-046 2010 9/7/2012 748,146 Sold FY 17/18-Housing Fund Replenished677-443-004 2004 9/7/2012 2,192 Sold FY 17/18-Housing Fund Replenished677-443-005 2004 9/7/2012 2,192 Sold FY 17/18-Housing Fund Replenished680-252-022 2004 9/7/2012 20,807 Sold FY 17/18-Housing Fund Replenished680-302-021 2004 9/7/2012 20,568 Sold FY 17/18-Housing Fund Replenished680-401-008 2004 9/7/2012 3,065 Sold FY 16/17-Housing Fund Replenished680-421-031 2004 9/7/2012 10,762 Sold FY 17/18-Housing Fund Replenished680-432-011 2004 9/7/2012 11,949 Sold FY 17/18-Housing Fund Replenished687-241-027 2003 9/7/2012 94,568 Sold FY 17/18-Housing Fund Replenished660-360-004 2005 9/7/2012 36,040 Sold, Housing Fund Replenished660-360-005 2005 9/7/2012 39,043 Sold, Housing Fund Replenished660-360-006 2005 9/7/2012 40,044 Sold, Housing Fund Replenished677-332-003 2007 9/7/2012 95,000Exchanged FY 2015/16 for other property of equal current fair market value–Table 3B677-410-009 2006 9/7/2012 2,870,000Exchanged FY 2015/16 for other property of equal current fair market value–Table 3B687-215-006 2008 9/7/2020 175,000 Sold FY 17/18-Housing Fund ReplenishedTOTAL $7,187,408 25 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
Table 3C provides a status update on the project(s) for property or properties acquired by the Housing Successor using LMIHAF on or after February 1, 2012.
TABLE 3C: SECTION 33334.16 COMPLIANCE
DESCRIPTION OF OUTSTANDING OBLIGATIONS UNDER SECTION 33413.
This section describes the outstanding inclusionary housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor plans to meet unmet obligations, if any.
The former redevelopment agency had an outstanding inclusionary housing obligation of 910 units through February 1, 2012. The Housing Successor does have a significant land inventory that can be committed towards partially fulfilling this obligation and is partnering with non-profit housing entities to identify available funding sources that may make development of affordable housing feasible on some of this land.
INCOME TEST
This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for a five-year period, beginning on January 1, 2014 and whether the statutory thresholds have been met. Reporting of the Income Test is required starting in 2019 (FY 2019-2020 report). Due to funding constraints, no expenditures had been made between Fiscal Year 2014-2015 through Fiscal Year 2019-2020.
The following expenditures are outlined on Table 4:
During FY 2020-2021 and FY 2021-2022, expenditures resulted in:
o the rehabilitation of 222 assisted units, and
o 59 new units, which were completed in November 2022.
Between FY 2022-2023 and FY 2024-2025 there were no expenditures other than maintenance monitoring and administration expenditures.
APNDate AcquiredAcquisition MethodOriginal Cost Status of Activity678-060-001 2016 Land swap w/ City $99,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-002 2016 Land swap w/ City 50,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-003 2016 Land swap w/ City 99,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-004 2016 Land swap w/ City 99,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-005 2016 Land swap w/ City 99,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-049 2016 Land swap w/ City 50,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-050 2016 Land swap w/ City 50,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-051 2016 Land swap w/ City 99,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-052 2016 Land swap w/ City 50,000 Donated FY20/21, DDA Veteran Housing (UHC)678-060-053 2016 Land swap w/ City 99,000 Donated FY20/21, DDA Veteran Housing (UHC)TOTAL $794,000 26 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
TABLE 4: INCOME TEST
Note: Although there are expenditures being reported as “Expenditures on Low Income Rental Units”, these units are under 60% of the area median income (AMI).
SENIOR HOUSING TEST
This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former Redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report, the ten-year period reviewed is July 1, 2015 to June 30, 2025.
TABLE 5: SENIOR HOUSING TEST
EXCESS SURPLUS TEST
The Housing Successor has a computed excess surplus pursuant to Health and Safety Code Section 34176.1. For the purpose of this section of the Report, pursuant to Section 34176.1(d), “’excess surplus’ shall mean an unencumbered amount in the account (cash) that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the housing successor’s preceding four fiscal years, whichever is greater.” If the Unencumbered Amount (See Table 6) does not exceed the greater of the aggregate amount deposited into the LMIHAF during the preceding four fiscal years or $1,000,000, whichever is greater, there is no excess surplus. The Housing Successor currently has a computed excess surplus of $1,808,616.
Total Expenditures PercentageHomeless Prevention and Rapid Rehousing Services Expenditures (Relocation)Housing Development Expenditures (Total of Next Three Lines)Expenditures on Moderate Income Units $ - 0%Expenditures on Low Income Rental Units $ 491,525 18%Expenditures on Very-Low Income Rental Units $ 1,393,944 50%Expenditures on Extremely-Low Income Rental Units $ 879,650 32%Total LMIHAF Expenditures since Fiscal Year 2014-15 $ 2,765,120 100%(All assistance was for rental units)Five Year Cash Expenditure by Income Unit CategoryAssisted Senior Rental Units 222 Total Assisted Rental Units 281 Senior Housing Test (%) 79%# of Units 27 Housing Successor Annual Report
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CATHEDRAL CITY HOUSING SUCCESSOR AGENCY
TABLE 6: EXCESS SURPLUS TEST
HOMEOWNERSHIP UNITS SUBJECT TO COVENANTS/RESTRICTIONS
The Housing Successor is required to provide an inventory of homeownership units assisted by the former redevelopment agency of the housing successor subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Asset Fund. The inventory shall include the following information:
(a) Number of units.
(b) For the first report, the number of units lost to the portfolio after February 1, 2012 and the reason(s) for the loss. For subsequent reports, the number of units lost to the portfolio in the last fiscal year and the reason for the losses.
(c) Any funds returned to the Housing Successor as part of an adopted program that protects the former redevelopment agency’s investment of money from the Low and Moderate Income Housing Asset Fund.
(d) Whether the Housing Successor has contracted with an outside entity for the management of the units, and, if so, the identity of the entity.
The inventory of homeownership units is included in Table 7 below.
TABLE 7: HOMEOWNERSHIP UNITS SUBJECT TO COVENANTS/RESTRICTIONS
FY 2024-2025Housing Successor Funds (Cash) $ 2,851,694 Encumbered Housing Successor Funds - Unencumbered Balance $ 2,851,694 Aggregate Deposited for Last Four Years $ 1,043,078 Greater of Aggregate Deposited for Last Four Years or $1,000,000 $ 1,043,078 Computed Excess Surplus $ 1,808,616 Computed Excess Surplus FY 2024-2025Total number of homeownership units assisted by the former 131 redevelopment agency as of February 1, 2012Number of units lost after February 1, 2012 (02/01/2012 – 06/30/2025) 58 Reason for loss – Sale/Foreclosure Number of units lost this reporting period (07/01/2024 – 06/30/2025) - Reason for loss – Affordability Restriction ExpiredFunds returned to Housing Successor 07/01/2024 – 06/30/2025) $ - Contract with outside entity for management of units and the Not Applicableidentity of the entityInventory of Homeownership Units 28