P a g e | 1
August 11, 2026
ITEM TITLE
Authorize Housing Funding and Appropriations: Authorize Housing Successor Agency Funding Allocations for Fiscal Year 2026-27 and Appropriate Funds
Report Number: 26-0255
Location: 205 27th Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Approve a resolution of the Chula Vista Housing Authority authorizing and appropriating $800,000 from the Low and Moderate Income Housing Asset Fund for administration costs and homeless prevention services. (4/5 Vote Required)
SUMMARY
The Chula Vista Housing Authority, acting in its capacity as the Housing Successor (as defined in California Health and Safety Code Section 34176) to the Redevelopment Agency of the City of Chula Vista (“City”), administers the Low and Moderate Income Housing Asset Fund (“Housing Fund”). Staff recommends appropriating Housing Fund monies totaling $300,000 for administration and $5 00,000 for homelessness prevention services.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Pro ject” as defined under Section 15378 of the CEQA Guidelines because it will not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the CEQA Guidelines, the activity is not subject to CEQA.
P a g e | 2
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing and Homeless Advisory Commission will be notified of these needed allocations for fiscal year 2026-27 at their next meeting.
DISCUSSION
Background
The Redevelopment Agency of the City, along with all redevelopment agencies statewide, was dissolved by the State legislature in 2012. At the time of dissolution, the remaining assets and liabiliti es of the former redevelopment agency were required to be assumed by a Housing Successor, as defined in California Health and Safety Code (HSC) Section 34176.
Pursuant to H SC Section 34176(b)(2), the Chula Vista Housing Authority was designated as the Housing Successor. All rights, powers, committed assets, liabilities, duties, and obligations associated with the affordable housing activities of the agency were transferred t o the Housing Authority, who acting as the Housing Successor, transferred these assets to the Housing Fund. As of June 30, 202 5, the unencumbered balance of the Housing Fund was $15.1 million.
Under HSC Section 34176.1, Housing Funds may be spent on:
1. Administrative costs for the operation of the housing successor, at the greater of : (a) $200,000 per year, adjusted for inflation ($ 270,700 for fiscal year 2024-25); o r (b) Five percent ( 5%) of the statutory value of real property owned by the Housing Successor and the value of loans and grants receivable ($1,321,640 for fiscal year 2024-25);
2. Homeless prevention and rapid rehousing services up to $ 500,000 per year (as of January 1, 2025 , Assembly Bill 1782 increased the limit from $250,000); and
3. Affordable housing development assisting households with up to 80 percent of the Area Median Income (AMI), subject to specific income and age targets over a five-year period.
State law also limits the amount of uncommitted funds a housing successor may retain. Funds that exceed this amount are known as the “Excess Surplus,” calculated based on the greater of the following:
$1,000,000; or
The total amount of deposits made into the Housing Fund over the preceding four (4) years.
Once an excess surplus is determined, the Housing Successor must account for these funds separately and commit said monies within three (3) years. Excess Surplus funds may be claimed by the California Department of Housing and Community Development (HCD) if not committed within a timely manner.
Entering fiscal year 2026-27, the Housing Fund had encumbered all required Excess Surplus and this year’s balance of $2,780,892 must be encumbered by Fiscal Year 2027-28.
Administration ($300,000)
Pursuant to HSC Section 34176.1(a)(1), the City reported an available administrative cost limit [HSC Section 34176.1(a)(1)] of $1,321,640 for fiscal year 2024-25. Because eligible administrative costs are primarily limited to compliance and monitoring-related activities, staff is proposing to commit $300,000 in fiscal year P a g e | 3
26-27 Housing Funds for administration of Housing Successor activities. This allocation incl udes the extension of existing contracts with RSG, Inc., which performs inspections and compliance reviews of Housing Authority assets, and Housing Compliance Services, which maintains a portal for compliance reporting.
Homeless Prevention Services ($500,000)
As of January 1, 2025, Assembly Bill 1762 increased the limit up to $500,000 in Housing Fund monies which may be used for Homeless Prevention Services per year if the former redevelopment agency did not have any outstanding inclusionary housing or repl acement housing production requirements as of 2012 [HSC Section 34176.1(a)(2)]. The City is eligible for this expense because it did not have any outstanding inclusionary or replacement housing requirements upon dissolution and intends to commit $500,000 towards the Homeless Prevention Program in fiscal year 2026-27 Housing Funds, towards the operations of the Chula Vista Village at Otay.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property h oldings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.0(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact to the City's General Fund as all costs associated with the program are covered by Housing Funds. This action will allocate surplus funds from the Housing Fund in the amount of $300,000 for administration in the Supplies and Services category and $500,000 for Homelessness Prevention Services/Shelter Operations program in the Other Expenses category of the Housing Fund.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact associated with this resolution.
ATTACHMENTS
None.
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services