Item 429/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna Reynosa
Dept:
City Manager Dept: Economic Development and
Housing Department
Date: 1/27/2026
Subject: Recieve and file the Housing Authority Annual Report as Housing Authority and as Housing Successor for fiscal year 2024-2025. (Joint Action Item with the Housing Authority)
OBJECTIVE
To provide the City Council and Housing Authority Commissioners the Housing Authority Report as Housing Authority and Housing Successor for Fiscal Year 2024-2025.
BACKGROUND
In 2012, upon the dissolution of redevelopment agencies, the Garden Grove Housing Authority assumed the housing assets and functions of the former Garden Grove Agency for Community Development ("Former Agency"). As a result, the Housing Authority as Housing Successor ("Housing Successor") is responsible for housing monitoring, administration, and certain housing production requirements.
In 2014, the Governor signed into law SB 341 requiring Housing Successors to conduct an annual report of their housing activities associated with their assumed assets and functions of the Former Agency.
DISCUSSION
The attached report includes all of the sections required by the statute. Additionally, the report was provided via email on December 19, 2025 thereby satisfying the requirement that the information be provided to the City Council and Housing Authority as Housing Successor prior to December 31, 2025.
A detailed description of the Housing Successor activities undertaken during FY 24-25, as well as the state of the Low and Moderate Income Housing Asset Fund (LMIHAF) are detailed in the attached report, with a brief summary provided below:
Receipt of $3,000,000.00 into the LMIHAF in repayment of Former Agency loans
Item 429/2025
Total deposits into the LMIHAF of $3,164,557.92, which includes $3,000,000.00 in Educational Revenue Augmentation Fund (ERAF) and Supplemental Educational Revenue Augmentation Fund (SERAF) repayments, $38,163.45 in interest, $17,000.00 in First Time Home Buyer loan repayment and $109,394.47 in miscellaneous revenue, bringing the total ending balance of the LMIHAF to $3,164,557.92.
Total expenditures from the LMIHAF of $2, 890,976.02, which includes $67,469.92 for monitoring and administration, as well as $146,006.10 to provide rapid rehousing and homelessness prevention services.
Total statutory value of housing assets owned by the Housing Successor of $24,689,712.27, whic h includes $14,819,524.53 in real property and $9,870,187.74 in loans and grants receivable.
As part of the annual reporting process, the Housing Successor must perform three tests to ensure compliance with the statue. These tests include the Extremely Lo w Income Test, the Senior Housing Test, and the Excess Surplus Test.
Extremely Low Income Test
The Housing Successor is required to expend at least 30% of funds in the LMIHAF on the development of rental housing affordable to and occupied by households earning 30% or less of the Area Median Income (AMI). The Extremely Low Income Test calculates all expenditures on the development of housing over a five (5) year period (2020 -2025) to ensure at least 30% of said funds were expended on units for households at or below 30% AMI. The Housing Successor did not expend funds on the development of rental housing, thus the test is not applicable to this report.
Senior Housing Test
The Housing Successor is limited in the number of rental units it develops for occupancy by senior citizens. This test requires the Housing Successor to compare the total number of housing units assisted by the City, Housing Successor, and/or Former Agency to the number of housing units assisted by the same entities for occupancy by senior citizens over the prior 10-year period. The percentage of housing units for senior may not exceed 50% of the total number of assisted units.
Between July 1, 2015 and June 30, 2025, the City, Housing Successor, and Former Agency assisted a total of 210 housing units, with 16 of those developed for occupancy by senior citizens. The Housing Successor’s percentage of senior housing over the past 10 years is 7.6%, which falls below the 50% threshold.
Excess Surplus Test
An “excess surplus” is defined as an unencumbered amount of funds in the LMIHAF that exceeds $1,000,000 or the aggregate amount deposited into the account during the Housing Successor’s preceding four Fiscal Years ($6,308,837.00), whichever is greater. The ending balance of the LMIHAF is $1,528,674.40, there is no excess surplus.
Item 429/2025
Inventory of Homeownership Units
The Former Agency assisted 55 Garden Grove homeowners with down payment assistance loans. Of the 55 original loans, the Former Agency has lost a total of 35 housing units due to loans being repaid and affordability covenants expiring. The Housing Successor has received a total of $423,900.69 in loan repayments since February 1, 2012, with $51,124.22 being repaid during FY 24-25.
Housing Choice Voucher Program
The Garden Grove Housing Authority provides rental assistance to up to 2546 families per month, with 2362 Section 8 Housing Choice Vo uchers (aka Section 8), 109 Emergency Vouchers and 75 Mainstream Vouchers. The lease-up rate by month for FY 202 4-25 was as follows:
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
It is recommended that the City Council and Housing Authority Commissioners:
Receive and file the Housing Authority Annual Report as Housing Authority and Housing Successor for Fiscal Year 2024-2025.
By: Monica Covarrubias, Sr. Project Manager
ATTACHMENT(S)
1. FY 24-25 Garden Grove Housing Authority Annual Report # OF UNIT LEASED
MONTH HCV EHV MAINSTREAM
Jul-24 2255 102 73
Aug-24 2253 101 73
Sep-24 2251 101 73
Oct-24 2247 100 75
Nov-24 2234 99 74
Dec-24 2242 96 72
Jan-25 2234 97 69
Feb-25 2215 95 70
Mar-25 2216 94 69
Apr-25 2214 94 71
May-25 2204 92 71
Jun-25 2206 93 71