Housing Authority
HOUSING
AUTHORITY
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.
The Behavioral Health Bridge Housing (BHBH) Program was created by Assembly Bill 179 (AB179), which allocated $1.5 billion to the Department of Health Care Services (DHCS) for allocation to counties to support planning, implementation, and infrastructure costs for the CARE Act. The City was awarded BHBH funds in FY 2024-25 by the County to assist homeless individuals who are experiencing serious behavioral health conditions by providing temporary housing and support services.
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 1990s 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 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.
Proposed Budget for
Fiscal Year 2025-2026
280 City of Costa Mesa, California
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.
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 85 homeless adults. Beginning in fiscal year 2024-25, the cities of Costa Mesa and Newport Beach enter into a Memorandum of Understanding (MOU) to allocate 20 of the 85 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.
281City of Costa Mesa, California
housIng
authorIty
Budget Narrative
The Fiscal Year 2025-26 budget for the Housing Authority is approximately $5.6 million, a decrease of $900,000, or 15 percent, compared to the adopted budget for Fiscal Year 2024-25. With the expansion of a permanent homeless shelter facility, the City continues to grow its partnerships with the City of Newport Beach, and homeless services contractor Mercy House and Bracken’s Kitchen, to increase the number of beds and meals to better serve the people experiencing homelessness year round.
FY 22-23
Actuals
FY 23-24
Adopted
Budget
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
REVENUES BY FUNDING SOURCE
Behavioral Health Services $ 972,051 $ 972,051 Costa Mesa Family Village Ground Lease $ 168,102 $ 120,000 150,000 200,000 James Street 248,386 250,000 250,000 250,000
Investment Income 38,282 23,400 31,550 -
Loan Repayments 216,065 6,000 200,000 390,000 RDA Loan Repayment from DOF (Annual ROPS) 258,209 381,141 - - State SB 2 Grant - 821,579 324,000 -
General Fund Contribution 1,638,708 1,264,993 1,264,993 1,264,993 Other Governmental Agencies 1,250,000 1,000,000 1,326,000 1,359,219 Donations 3,891 - - -
Use of Fund Balance - 301,364 1,549,646 834,559 Transfers in from (State Grants) 3,650,000 231,839 454,308 750,000 Total Housing Authority Revenues $ 7,471,643 $ 4,400,316 $ 6,522,548 $ 6,020,822 FY 22-23
Actuals
FY 23-24
Adopted
Budget
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
EXPENSE CATEGORY BY PROGRAM
COVENANT MONITORING AND ADMINISTRATION - 11500
Rental Rehabilitation - 20450
Housing Authority Administration - 20600
Salaries and Benefits $ 67,6 45 $ 62,021 $ 106,347 $ 111,698 Maintenance and Operations 14,862 9,381 60,000 60,000 Subtotal Housing Authority Administration $ 82,507 $ 71,403 $ 166,347 $ 171,698
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 $ - $ - $ 11,000 $ 11,000 Subtotal First Time Homebuyer Program $ - $ - $ 11,000 $ 11,000
Proposed Budget for
Fiscal Year 2025-2026
282 City of Costa Mesa, California
FY 22-23
Actuals
FY 23-24
Adopted
Budget
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
COVENANT MONITORING AND ADMINISTRATION - 11500 (Continued) Habitat for Humanity - 20630
Maintenance and Operations $ 645 $ - $ 7 ,000 $ 7 ,000 Fixed Assets 46,231 50,854 - -
Subtotal Habitat for Humanity $ 46,876 $ 50,854 $ 7,000 $ 7,000
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 $ - $ - $ 5,000 $ 5,000 Subtotal St. John Manor $ - $ - $ 5,000 $ 5,000
Costa Mesa Village - 20655
Maintenance and Operations $ - $ - $ 3,100 $ 3,100 Subtotal Costa Mesa Village $ - $ - $ 3,100 $ 3,100
Subtotal Covenant Monitoring and Admin. $ 130,716 $ 122,257 $ 217,447 $ 222,798
HOUSING DEVELOPMENT AND PRESERVATION OF AFFORDABLE HOUSING - 11500
James/West 18th Street Property - 20635
Salaries and Benefits $ 34,727 $ 40,107 $ 62,930 $ 65,226 Maintenance and Operations 164,440 262,122 202,500 $ 202,500 Fixed Assets - - 27,600 27,600
Subtotal James/West 18th Street Property $ 199,167 $ 302,229 $ 293,030 $ 295,326
HOMELESS OUTREACH AND BRIDGE SHELTER OPERATION - 11310|11500|14300|11100
CDBG-CV - 20435
Salaries and Benefits $ 7,529 $ 1,136 $ - $ - Maintenance and Operations $ 497, 324 $ 170,027 $ - $ - Subtotal Homeless Outreach $ 504,852 $ 171,163 $ - $ -
Tenant Based Rental Assistance - 20448
Salaries and Benefits $ - $ - $ 292,978 $ 208,315 Subtotal Homeless Outreach $ - $ - $ 292,978 $ 208,315
Homeless Outreach - 20605 *
Salaries and Benefits $ 866,756 $ 1,145,954 $ 1,588,407 $ 1,535,536 Maintenance and Operations 50,036 63,659 108,243 108,243 Fixed Assets 300 - - -
Subtotal Homeless Outreach $ 917,093 $ 1,209,613 $ 1,696,650 $ 1,643,779
283City of Costa Mesa, California
housIng
authorIty
FY 22-23
Actuals
FY 23-24
Adopted
Budget
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
Bridge Shelter Operation - 20606 10,701,004
Maintenance and Operations $ 2,064,021 $ 3,246,644 $ 2,678,553 $ 2,678,553 Fixed Assets - 33,233 - -
Subtotal Bridget Shelter Operation $ 2,064,021 $ 3,279,877 $ 2,678,553 $ 2,678,553
Behavioral Health Services - 20670 1,944,102
Salaries and Benefits $ - $ - $ 284,050 $ 284,050 Maintenance and Operations $ - $ - $ 688,001 $ 688,001 Subtotal Behavioral Health Services $ - $ - $ 972,051 $ 972,051
TOTAL HOUSING AUTHORITY
Salaries and Benefits $ 976,657 $ 1,249,219 $ 2,334,712 $ 2,204,825 Maintenance and Operations 2,792,661 3,751,833 3,788,397 3,788,397 Fixed Assets 46,531 84,087 27,600 27,600
Total Housing Authority $ 3,815,849 $ 5,085,139 $ 6,150,709 $ 6,020,822 Proposed Budget for
Fiscal Year 2025-2026
284 City of Costa Mesa, California