Housing Authority
HOUSING
AUTHORITY
ATTACHMENT 7
317 City of Costa Mesa, California
Proposed Budget for
Fiscal Year 2024-2025
On January 17, 2012, the City Counc il estab lished the Costa Mesa Housi ng Author ity in acc ordance with Calif ornia Housing Authorities Law, Heal th, and Safety Code Sect ion 3420 0, et seq . Also on th at date by re solution, the City Council selected the Housi ng Author ity to ser ve as the housi ng succe ssor and to ass ume the housi ng asset s, duties, functions and oblig ations of the forme r Costa Mesa Redev elopment Agenc y (Form er Agenc y) as of Febru ary 1, 2012. These acti ons occu rred due to th e mand atory dissolu tion of al l Cali fornia rede velopment agen cies unde r the requirements of Div ision 24, Parts 1.8 and 1.85 of the Calif ornia Healt h and Safet y Code (Diss olution Law). The Dissolution Law sets forth the proce sses and oblig ations of all succe ssor agenc ies. These entit ies are separ ate from the city (or co unty) that forme d the forme r agenc y and charg ed with windi ng down the affai rs of for mer redevelopment agencies. Further, the Dissolution Law sets forth the functions, obligations and requirements of housing successors.
Section 34176.1 of the Calif ornia Healt h and Safet y Code estab lishes certa in limit ations on exp enditures by hou sing successors. Thus , each fisca l year the Housin g Auth ority’s fund ing is li mited in tw o cate gories: (1) admin istrative costs, and (2) homelessness prevention and rapid rehousing.
The Behavioral Health Bridge Housing (BHBH) Program was created by Assembly Bill 179 (AB179), which allocated $1.5 billion to the Depar tment of Healt h Care Servi ces (DHCS ) for alloc ation to count ies to suppo rt plann ing, implementation, and infrastructure costs for the CARE Act.
Covenant Monitoring and Administration - 11500
Rental Rehabilitation — 20425
Offers deferred loans to own er of mul ti-family prope rties to mak e impro vements and repai r code viola tions. Loans were originated in the 90s and deferred unless the owner sells transfers or defaults on the property.
Housing Authority Administration — 20600
Provides administration suppo rt such as con ducting requi red board meeti ngs, maint aining financ ial recor ds and preparing annual reports, etc.
Costa Mesa Family Village — 20620
Costa Mesa Famil y Villa ge is a three -parcel, 72-un it multi -family renta l proje ct, to whi ch the Housi ng Author ity holds the groun d lease . The 55-ye ar groun d lease expir es in yea r 2038. Annua l lease payme nt is the great er of 8 percent of gross receipts or $108,000.
First Time Homebuyer Program — 20625
Offers deferred loans to firs t time homeb uyers for home purch ase in the City. Loans were exten ded prior to yea r 2009 under various terms.
Habitat For Humanity — 20630
The Housing Autho rity holds inter est to th e land used for the devel opment of five singl e-family homes by Ha bitat for Humanity in yea r 2004. The Housi ng Author ity maint ains enfor ceable coven ants on the prope rties. No loa n repayment is required unless the owner defaults.
Single Family Rehabilitation Program — 20640
Offers deferred loans to hom eowners to mak e home impro vements and fix code viola tions. 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-un it senio r renta l proje ct. The Housi ng Author ity’s loan to thi s proje ct was paid off in fisc al year 2018-19.
318City of Costa Mesa, California
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Costa Mesa Village — 20655
Costa Mesa Villa ge is a 96-un it singl e room occup ancy (SRO) proje ct joint ly funde d by the Costa Mesa Housi ng Authority, Orang e Count y Housi ng Author ity and the devel oper. The Housi ng Author ity’s loan to thi s proje ct was paid off in fiscal year 2014-15.
Housing Development And Preservation Of Affordable Housing - 11500 James/West 18th Street Property — 20635
The James/West 18th Prope rty is fou r affor dable housi ng proje cts with 30 ren tal units , owned and opera ted 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 agenc ies to ide ntify housi ng solut ions for Costa Mesas homel ess popul ation. The Gener al Fund will provide fundi ng for progr am expen ses in exc ess of the Low and Moder ate Incom e Housi ng Asset Funds (LMIHAFs) $250,000 allowance for this category.
Bridge Shelter Operation — 20606
Another new compo nent to the Housi ng Author ity is the opera tion of the City’ s perma nent bridg e shelt er progr am, which is located at 317 5 Airway Avenu e. This progr am provi des trans itional housi ng and suppo rt servi ces for up to 72 homeless adult s. Begin ning in fisc al year 2023- 24, the citie s of Cos ta Mesa and Newpor t Beach enter into a Memorandum of Understanding (MOU) to allocate 20 of the 72 shelter beds to Newport Beach’s use.
Behavioral Health Bridge Housing Program- 20670
The primary focus of the BHBH Program is to assist individuals experiencing homelessness who have serious behavioral health conditions that prevent them from accessing resources and securing permanent housing. A Memorandum of Understanding between the Orange County Health Care Agency (OCHCA) and the City of Costa Mesa was entered to establish BHBH services.
Proposed Budget for
Fiscal Year 2024-2025
319 City of Costa Mesa, California
Budget Narrative
The Fiscal Year 2024-2 5 budge t for the Housi ng Author ity is appro ximately $4.6 milli on, an incre ase of $600, 000, or 15 percent, compared to the adopted budget for Fiscal Year 2023-24. With the expansion of permanent homeless shelter facility, the City continues to grow its partnerships with the City of Newport Beach, and homeless services contractor Mercy House and Brack en’s Kitch en, to incre ase the numbe r of beds and meals to bette r serve the people experiencing homelessness year round.
FY 21-22
Actuals
FY 22-23
Adopted
Budget
FY 23-24
Adopted
Budget
FY 24-25
Proposed
Budget
REVENUES BY FUNDING SOURCE
Beahavirol Health Services $ 972,051
Costa Mesa Family Village Ground Lease $ 131,989 $ 120,000 $ 120,000 $ 150,000 James Street 273,391 264,000 250,000 $ 250,000 Investment Income 102,263 38,000 23,400 31,550 Loan Repayments 5,111 7,000 6,000 200,000
RDA Loan Repayment from DOF (Annual ROPS) 258,209 258,209 381,141 - State SB 2 Grant 528,581 821,579 324,000
General Fund Contribution 2,438,345 1,713,827 1,264,993 1,264,993 Other Governmental Agencies 1,000,000 1,326,000 Donations 5,290 -
CDBG CV Funds 668,000 -
Use of Fund Balance 68,116 301,364 1,549,646 Transfers in from ARPA 231,839 222,469
Total Housing Authority Revenues $ 3,214,598 $ 3,665,733 $ 4,400,316 $ 6,290,709 FY 21-22
Actuals
FY 22-23
Adopted
Budget
FY 23-24
Adopted
Budget
FY 24-25
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 Benefi ts $ 63,383 $ 67,6 45 $ 75,060 $ 106,347 Maintenance and Operations 16,910 14,862 60,000 60,000 Subtotal Housing Authority Administration $ 80,293 $ 82,507 $ 135,060 $ 166,347
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 $ 151 $ - $ 11,000 $ 11,000 Subtotal First Time Homebuyer Program $ 151 $ - $ 11,000 $ 11,000
320City of Costa Mesa, California
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FY 21-22
Actuals
FY 2
2-23
Adopted
Budget
FY 2 3-24
Adopted
Budget
FY 2 4-25
Proposed
Budget
Habitat for Humanity - 20630
Maintenance and Operations $ 640 $ 645 $ 7 ,000 $ 7 ,000 Fixed Assets 42,379 46,231 - -
Subtotal Habitat for Humanity $ 43,019 $ 46,876 $ 7,000 $ 7,000 CO
VENANT MONITORING AND ADMINISTRATION - 11500 (Continued) Single Family Rehabilitation Program - 20640
Maintenance and Operations $ - $ 1,333 $ 20,000 $ 20,000 Subtotal Single Family Rehabilitation Prog. $ - $ 1,333 $ 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 $ 6,658 $ - $ 3,100 $ 3,100 Subtotal Costa Mesa Village $ 6,658 $ - $ 3,100 $ 3,100 Subtotal Covenant Monitoring and Admin. $ 137,913 $ 130,716 $ 186,160 $ 217,447 HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING - 11500 James/West 18th Street Property - 20635
Salaries and Benefit s $ 35,719 $ 34,727 $ 32,654 $ 62,930 Maintenance and Operations 149,289 164,440 202,500 342,500 Fixed Assets - - 27,600 27,600
Subtotal James/West 18th Street Property $ 185,007 $ 199,167 $ 262,754 $ 433,030 HOMELESS OUTREACH AND BRIDGE SHELTER OPERATION - 11310|11500|14300|11100 CDBG-CV - 20435
Salaries and Benefit s $ 15,703 $ 7,529 $ - $ -
Maintenance and Operations $ 746,195 $ 497, 324 $ - $ - Subtotal Homeless Outreach $ 761,899 $ 504,852 $ - $ - Tenant Based Rental Assistance - 20448
Salaries and Benefit s $ - $ - $ - $ 292,978
Subtotal Homeless Outreach $ - $ - $ - $ 292,978
Homeless Outreach - 20605 *
Salaries and Benefit s $ 810,764 $ 866,756 $ 1,039,901 $ 1,588,407 Maintenance and Operations 36,530 50,036 108,243 108,243 Fixed Assets - 300 - -
Subtotal Homeless Outreach $ 847,294 $ 917,093 $ 1,148,144 $ 1,696,650 Bridge Shelter Operation - 20606 9,194,111
Proposed Budget for
Fiscal Year 2024-2025
321 City of Costa Mesa, California
FY 21-22
Actuals
FY 2
2-23
Adopted
Budget
FY 2 3-24
Adopted
Budget
FY 2 4-25
Proposed
Budget
Maintenance and Operations $ 2,031,270 $ 2,064,021 $ 2,420,267 $ 2,678,553 Subtotal Bridget Shelter Operation $ 2,031,270 $ 2,064,021 $ 2,420,267 $ 2,678,553 Behavioral Health Services - 20670 972,051
Salaries and Benefit s $ - $ - $ - $ 284,050
Maintenance and Operations $ - $ - $ - $ 688,001
Subtotal Behavioral Health Services $ - $ - $ - $ 972,051
TOTAL HOUSING AUTHORITY
Salaries and Benefit s $ 925,569 $ 976,657 $ 1,147,615 $ 2,334,712 Maintenance and Operations 2,995,801 2,792,661 2,842,110 3,928,397 Fixed Assets 42,379 46,531 27,600 27,600
Total Housing Authority $ 3,963,748 $ 3,815,849 $ 4,017,325 $ 6,290,709 322City of Costa Mesa, California
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