{{section.number}}1
4 8
3 9
CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: Request to Note and File the FY 2022-23 Low and Moderate Income Housing Asset Fund (LMIHAF) Annual Report.
1. City Council Motion to Note and File the FY 2022-23 LMIHAF Annual Report in accordance with California Health & Safety Code 34176.1(f).
COUNCIL ACTION
EXECUTIVE SUMMARY
State Law requires jurisdictions to annually report on deposits and expenditures into the Low and Moderate Income Housing Asset Fund. The report also provides information on the results of required tests that demonstrate who benefits from the fund. Staff reports the information each year to the City Council and Housing Authority, and posts the information on the City's website.
Item Type: Action Item
Approved forDecember 12, 2023 calendar
2 {{section.number}}1
RECOMMENDATION
That the City Council approve a motion to Note and File the FY 2022- 23 Low and Moderate Income Housing Asset Fund Annual Report (LMIHAF) required by the State of California Health & Safety Code sections related to the dissolution of Redevelopment.
ANALYSIS
The LMIHAF is the name of the fund that received housing assets transferred from the 20% Redevelopment Housing Set Aside Fund to the Housing Authority with the dissolution of Redevelopment. State law also requires an independent financial audit of the LMIHAF within 6 months of the end of the fiscal year. This audit is included in the FY 2022-23 Glendale Comprehensive Annual Financial Report (CAFR) that will be submitted to the City Council at their evening meeting on December 12, 2023. Information in the CAFR was used to prepare this LMIHAF Annual Report.
There are 13 items in the report, including information on financial deposits, expenditures, and transfers into and out of the fund; the year end fund balance and value of property held within the fund; and the fact that at year end there was not an “excess surplus” condition in the fund. Shown below are some noteworthy items in the report.
Deposits: In FY 2022-23 $779,814 was deposited into the fund. The greatest sources of these deposits were $192,833 – a repayment of a multifamily development loan, and $122,808 – a repayment of a first time homebuyer loan.
Fund Balance: As of June 30,2023, the LMIHAF balance was approximately $5.5 million.
Expenditures: Approximately $3.9M was expended in FY 2022-23 for projects and administration. The largest expense was $2.2M toward the purchase of 426 Piedmont Avenue.
Senior Housing: The “Senior Housing Test” in the report requires calculating the percentage of senior rental housing assisted by the City and Housing Authority using any resources during the last ten years (January 1, 2013 through January 1, 2023) as compared to all rental housing assisted during that time. Glendale passed this “test” and so use of LMIHAF for affordable senior citizen units is not restricted in the next year.
According to State law the percentage of senior rental housing assisted by the City must remain below 50% of all housing. If senior units exceed 50% future LMIHAF cannot be spent until the percentage reduces below that level. The test for this ten-year period shows that 33% (257 of 780 units) of affordable rental housing constructed during the ten years was senior housing. Over the history of the affordable housing program in Glendale, 697 of 1,289 affordable units assisted (54%) are restricted to seniors. An additional 502 affordable units are currently in construction, of which 257 units (approximately 51%) are restricted to seniors.
First Time Home Buyer (FTHB) Loans: An inventory of 20% Redevelopment Set Aside assisted homeownership units originated prior to February 1, 2012 and their current status is required. The annual report also must state whether any of these units were lost as affordable housing in the last year. The report shows that 113 LMIHAF homeownership units that were restricted as affordable prior to February 1, 2012 were still restricted in FY 3 {{section.number}}1
2022-23. Two of these units “lost” affordability during the year and is no longer restricted as an affordable home. In both cases, the FTHB borrower sold their home to a market rate home buyer and paid off the outstanding FTHB loan as was permitted by their loan agreement. The LMIHAF received a total of $215,736 in FY 2022-23 for these loans. As required by State law, the LMIHAF Annual Report will be posted on the Community Development Department website prior to December 31, 2023 following presentation of the report to the City Council and Housing Authority.
STAKEHOLDERS/OUTREACH
N/A
FISCAL IMPACT
There is no fiscal impact associated with this report.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
N/A
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES
Alternative 1: Approve the motion to note and file the FY 2022-23 Annual LMIHAF report.
Alternative 2: Elect not to approve the motion to note and file the report. It is a requirement of State law that this report be prepared, presented to the City Council and posted on the City website.
Alternative 3: The City Council and Housing Authority may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Prepared by:
Peter Zovak, Assistant Director of Community Development Michael Fortney, Principal Housing Project Manager
Pamela Jackson, Housing Coordinator
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Housing Successor Annual Report Regarding the Low and Moderate Income Housing Asset Fund for Fiscal Year 2022-23