Housing Authority
HOUSING
AUTHORITY
ATTACHMENT 8
Proposed Budget for
Fiscal Year 2023-2024
2 City of Costa Mesa, California
On January 17, 2012, the City Council established the Costa Mesa Housing Authority in accordance with California Housing Authorities Law, Health, and Safety Code Section 34200, et seq. Also on that date by resolution, the City Council selected the Housing Authority to serve as the housing successor and to assume the housing assets, duties, functions and obligations of the former Costa Mesa Redevelopment Agency (Former Agency) as of February 1, 2012. These actions occurred due to the mandatory dissolution of all California redevelopment agencies under the requirements of Division 24, Parts 1.8 and 1.85 of the California Health and Safety Code (Dissolution Law). The Dissolution Law sets forth the processes and obligations of all successor agencies. These entities are separate from the city (or county) that formed the former agency and charged with winding down the affairs of former redevelopment agencies. Further, the Dissolution Law sets forth the functions, obligations and requirements of housing successors.
Section 34176.1 of the California Health and Safety Code establishes certain limitations on expenditures by housing successors. Thus, each fiscal year the Housing Authority’s funding is limited in two categories: (1) administrative costs, and (2) homelessness prevention and rapid rehousing.
Covenant Monitoring and Administration - 11500
Rental Rehabilitation — 20425
Offers deferred loans to owner of multi-family properties to make improvements and repair code violations. Loans were originated in the 90s and deferred unless the owner sells transfers or defaults on the property.
Housing Authority Administration — 20600
Provides administration support such as conducting required board meetings, maintaining financial records and preparing annual reports, etc.
Costa Mesa Family Village — 20620
Costa Mesa Family Village is a three-parcel, 72-unit multi-family rental project, to which the Housing Authority holds the ground lease. The 55-year ground lease expires in year 2038. Annual lease payment is the greater of 8 percent of gross receipts or $108,000.
First Time Homebuyer Program — 20625
Offers deferred loans to first time homebuyers for home purchase in the City. Loans were extended prior to year 2009 under various terms.
Habitat For Humanity — 20630
The Housing Authority holds interest to the land used for the development of five single-family homes by Habitat for Humanity in year 2004. The Housing Authority maintains enforceable covenants on the properties. No loan repayment is required unless the owner defaults.
Single Family Rehabilitation Program — 20640
Offers deferred loans to homeowners to make home improvements and fix code violations. The loans were extended in year 2009 and deferred until the property is sold or refinanced.
St. John Manor — 20650
St. Johns Manor is a 36-unit senior rental project. The Housing Authority’s loan to this project was paid off in fiscal year 2018-19.
Costa Mesa Village — 20655
Costa Mesa Village is a 96-unit single room occupancy (SRO) project jointly funded by the Costa Mesa Housing Authority, Orange County Housing Authority and the developer. The Housing Authority’s loan to this project was paid off in fiscal year 2014-15.
3City of Costa Mesa, California
Housing
AutHority
Housing Development And Preservation Of Affordable Housing - 11500 James/West 18th Street Property — 20635
The James/West 18th Property is four affordable housing projects with 30 rental units, owned and operated by the Housing Authority. The Authority acquired the projects through a foreclosure process in fiscal year 2015-16.
Homeless Outreach And Bridge Shelter Operation - 14300
Homeless Outreach — 20605
Homeless Outreach’s primary activities are community outreach and working with various organizations and governmental agencies to identify housing solutions for Costa Mesas homeless population. The General Fund will provide funding for program expenses in excess of the Low and Moderate Income Housing Asset Funds (LMIHAFs) $250,000 allowance for this category.
Bridge Shelter Operation — 20606
Another new component to the Housing Authority is the operation of the City’s permanent bridge shelter program, which is located at 3175 Airway Avenue. This program provides transitional housing and support services for up to 72 homeless adults. Beginning in fiscal year 2022-23, the cities of Costa Mesa and Newport Beach enter into a Memorandum of Understanding (MOU) to allocate 20 of the 72 shelter beds to Newport Beach’s use.
Proposed Budget for
Fiscal Year 2023-2024
4 City of Costa Mesa, California
Budget Narrative
The Fiscal Year 2023-24 budget for the Housing Authority is approximately $4 million, a decrease nearly 8 percent, compared to the adopted budget for Fiscal Year 2022-23. With the relocation to a permanent homeless shelter facility, the City has entered into a partnership with the City of Newport Beach, increasing the number of beds to expand its solution to offer shelter beds to those in need during inclement weather.
FY 20-21
Actuals
FY 21-22
Adopted
Budget
FY 22-23
Adopted
Budget
FY 23-24
Proposed
Budget
REVENUES BY FUNDING SOURCE
Costa Mesa Family Village Ground Lease $ 131,989 $ 120,000 $ 120,000 $ 120,000 James Street 273,391 264,000 250,000 250,000
Investment Income 102,263 38,000 23,400 21,550 Loan Repayments 5,111 7,000 6,000 6,000
RDA Loan Repayment from DOF (Annual ROPS) 258,209 258,209 381,141 - State SB 2 Grant 528,581 528,581 821,579
General Fund Contribution 2,438,345 1,177,203 1,713,827 1,264,993 Other Governmental Agencies 1,000,000 1,000,000 Donations 5,290 -
CDBG CV Funds 668,000 -
Use of Fund Balance 68,116 37,261 301,364
Transfers in from ARPA 231,839
Total Housing Authority Revenues $ 3,214,598 $ 3,129,109 $ 4,060,211 $ 4,017,325 FY 20-21
Actuals
FY 21-22
Proposed
Budget
FY 22-23
Adopted
Budget
FY 23-24
Proposed
Budget
EXPENSE CATEGORY BY PROGRAM
COVENANT MONITORING AND ADMINISTRATION - 11500
Rental Rehabilitation - 20450
Maintenance and Operations $ - $ 366 $ - $ -
Rental Rehabilitation $ - $ 366 $ - $ -
Housing Authority Administration - 20600
Salaries and Benefits $ 73,536 $ 63,383 $ 86,882 $ 75,060 Maintenance and Operations 7,617 16,910 100,000 60,000 Subtotal Housing Authority Administration $ 81,152 $ 80,293 $ 186,882 $ 135,060
Costa Mesa Family Village - 20620
Maintenance and Operations $ - $ - $ 5,000 $ 5,000 Subtotal Costa Mesa Family Village $ - $ - $ 5,000 $ 5,000
First Time Homebuyer Program - 20625
Maintenance and Operations $ 65 $ 151 $ 11,000 $ 11,000 Subtotal First Time Homebuyer Program $ 65 $ 151 $ 11,000 $ 11,000
Habitat for Humanity - 20630
Maintenance and Operations $ 2,975 $ 640 $ 7,000 $ 7,000 Fixed Assets 211,860 42,379 - -
Subtotal Habitat for Humanity $ 214,834 $ 43,019 $ 7,000 $ 7,000 5City of Costa Mesa, California
Housing
AutHority
FY 20-21
Actuals
FY 21-22
Proposed
Budget
FY 22-23
Adopted
Budget
FY 23-24
Proposed
Budget
COVENANT MONITORING AND ADMINISTRATION - 11500 (Continued) Single Family Rehabilitation Program - 20640
Maintenance and Operations $ 1,677 $ - $ 20,000 $ 20,000 Subtotal Single Family Rehabilitation Prog. $ 1,677 $ - $ 20,000 $ 20,000
St. John Manor - 20650
Maintenance and Operations $ - $ 7,793 $ 5,000 $ 5,000 Subtotal St. John Manor $ - $ 7,793 $ 5,000 $ 5,000
Costa Mesa Village - 20655
Maintenance and Operations $ 9,893 $ 6,658 $ 3,100 $ 3,100 Subtotal Costa Mesa Village $ 9,893 $ 6,658 $ 3,100 $ 3,100
Subtotal Covenant Monitoring and Admin. $ 307,621 $ 137,913 $ 237,982 $ 186,160
HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING - 11500
James/West 18th Street Property - 20635
Salaries and Benefits $ 27,832 $ 35,719 $ 41,720 $ 32,654 Maintenance and Operations 144,728 149,289 260,500 202,500 Fixed Assets - - 27,600 27,600
Subtotal James/West 18th Street Property $ 172,559 $ 185,007 $ 329,820 $ 262,754
HOMELESS OUTREACH AND BRIDGE SHELTER OPERATION - 11310/11500/14300
CDBG-CV - 20435
Salaries and Benefits $ - $ 15,703 $ - $ -
Maintenance and Operations $ 343,244 $ 746,195 $ - $ - Subtotal Homeless Outreach $ 343,244 $ 761,899 $ - $ -
Homeless Outreach - 20605 *
Salaries and Benefits $ 738,444 $ 810,764 $ 1,096,551 $ 1,039,901 Maintenance and Operations 78,372 36,530 108,243 108,243 Subtotal Homeless Outreach $ 816,816 $ 847,294 $ 1,204,794 $ 1,148,144
Bridge Shelter Operation - 20606 8,806,360
Maintenance and Operations $ 1,934,556 $ 2,031,270 $ 2,420,267 $ 2,420,267 Subtotal Bridget Shelter Operation $ 1,934,556 $ 2,031,270 $ 2,420,267 $ 2,420,267
TOTAL HOUSING AUTHORITY
Salaries and Benefits $ 839,811 $ 925,569 $ 1,225,153 $ 1,147,615 Maintenance and Operations 2,523,125 2,995,801 2,940,110 2,842,110 Fixed Assets 211,860 42,379 27,600 27,600
Total Housing Authority $ 3,574,796 $ 3,963,748 $ 4,192,863 $ 4,017,325 Proposed Budget for
Fiscal Year 2023-2024
6 City of Costa Mesa, California