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7 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 2024-25 Low and Moderate Income Housing Asset Fund (LMIHAF) Annual Report.
1. City Council Motion to Note and File the FY 2024-25 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 16, 2025 calendar
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RECOMMENDATION
That the City Council approve a motion to Note and File the FY 2024- 25 Low and Moderate Income Housing Asset Fund (LMIHAF) Annual Report, required by the State of California Health & Safety Code sections related to the dissolution of Redevelopment.
ANALYSIS
The FY 2024-25 LMIHAF Annual Report is being provided to the City Council and Housing Authority as required by State law. 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 LMIHAF within six months of the end of the fiscal year. This audit is included in the FY 2024-25 Glendale Annual Comprehensive Financial Report (ACFR) that will be submitted to the City Council at their evening meeting on December 9, 2025. Information in the ACFR was used to prepare this LMIHAF Annual Report.
There are thirteen items included 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 2024-25 $672,770 was deposited into the fund. The sources of deposits were repayment of two loans as well as monthly payments from borrowers under the City’s First Time Homebuyer Program and Interest Income.
Fund Balance: As of June 30, 2025, the LMIHAF balance was approximately $3.8 million.
Expenditures: Approximately $1.1M was expended in FY 2024-25 for projects and administration. The largest expenses were tied to construction costs for Citrus Crossing (900 E Broadway) and Harrower Village (920 E Broadway), and purchase of a condo unit to preserve affordability in the Doran Gardens condominium development.
Extremely Low Income Housing State law requires that the Authority must expend at least 30% of the LMIHAF for development of rental housing affordable to and occupied by households earning 30% or less of the AMI. If the Authority fails to comply with the Extremely-Low Income requirement in any five-year report, then the Authority must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest fiscal year following the report until the Authority demonstrates compliance with the Extremely-Low Income requirement.
Of the 174 affordable units funded with LMIHAF, 29 were reserved for extremely low income households. That amounts to 16.67% of the funding, well below the 30% minimum. Therefore, the next affordable housing project(s) will have to target extremely low income households at a rate of 50% of the Authority’s LMIHAF until the Authority is in compliance with the Extremely Low Income requirement.
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, 2015 through January 1, 2025) as 3 2
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 50.6% (389 of 768 units) of affordable rental housing constructed during the ten years was senior housing. Over the history of the affordable housing program in Glendale, 823 of 1,425 affordable units assisted (60%) are restricted to seniors. An additional 405 affordable units are currently in construction or predevelopment phase, of which 160 units (approximately 39%) 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 111 LMIHAF homeownership units that were restricted as affordable prior to February 1, 2012 were still restricted in FY 2024-25. 12 of these units were lost. 2 were paid off and 10 expired as they reached their 30-year loan term. As required by State law, the LMIHAF Annual Report will be posted on the Community Development Department website prior to December 31, 2025 following presentation of the report to the City Council and Housing Authority.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
There is no fiscal impact associated with this report.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Staff has determined that the activity of noting and filing this report is exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Title 14 of the California Code of Regulations (“CEQA Guidelines”) Section 15061(b)(3), as the mere acceptance of a report on deposits and expenditures into the Low and Moderate Income Housing Asset Fund will not allow for or promote physical changes in the environment and, therefore, it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. Further, the activity is arguably not a Project under CEQA and is therefore not subject to CEQA review pursuant to CEQA Guidelines, Sections 15378(a) & 15378(b)(4), because it does not have a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and because it constitutes creation of a government funding mechanism or governmental fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES NOT RECOMMENDED BY STAFF
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1. The City Council and Housing Authority may 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.
2. The City Council and Housing Authority may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
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 2024-25