HOUSING SUCCESSOR ANNUAL REPORT
FOR FISCAL YEARS 2013-14 THROUGH 2023-24
City of Lake Elsinore
TABLE OF CONTENTS
INTRODUCTION ................................ ................................ ................................ .................... 1 Scope of this Housing Successor Annual Report ................................ ................................ .. 1 Assets Transferred to the Housing Successor ................................ ................................ ..... 1 BACKGROUND ................................ ................................ ................................ ...................... 3 Legal Requirements Pertaining to Housing Successors ................................ ........................ 3 Permitted Uses of Housing Asset Funds ................................ ................................ ............. 3 Limits on the Accumulation of Housing Funds (Excess Surplus) ................................ ............ 6 HOUSING ASSET FUND ACTIVITY ................................ ................................ ......................... 6 Deposits ................................ ................................ ................................ ........................... 6 Ending Cash and Fund Balance ................................ ................................ .......................... 7 Expenditures ................................ ................................ ................................ ..................... 9 Expenditure Proportionality ................................ ................................ .............................. 10 Housing Asset Fund Portfolio ................................ ................................ ........................... 12 Real Property and Disposition Status ................................ ................................ ................ 14 Loans Receivable ................................ ................................ ................................ ............ 15 Senior Rental Housing Limit Compliance ................................ ................................ ........... 16 Excess Surplus ................................ ................................ ................................ ............... 17 OTHER INFORMATION ................................ ................................ ................................ ........ 19 Transfers to Other Housing Successors ................................ ................................ ............ 19 Homeownership Unit Inventory ................................ ................................ ......................... 19 APPENDIX 1 – HOUSING ASSET TRANSFER FORM ................................ ............................. 20 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS ......................... 21 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS ............................. 22
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 1 INTRODUCTION
Following the dissolution of redevelopment in 2012, all former redevelopment agencies in California were required to designate a housing successor agency to receive all existing housing assets and assume any ongoing housing responsibilities of the former agency related to its mandated 20% set aside of revenue for affordable housing. The City of Lake Elsinore (“City”) established itself as the Housing Successor Agency (“Housing Successor”) to the former Lake Elsinore Redevelopment Agency (“Agency”) with the adoption of Resolution No. 2012-001 dated January 10, 2012. In addition to overseeing housing assets and ensuring that all remaining funds are spent on affordable housing efforts, housing successors must report annually on their activities as required by Senate Bill 341. The Housing Successor Annual Report (“Annual Report”) details the act ivity of the Housing Successor. It establishes whether it complies with various expenditure and asset requirements as outlined in the Health and Safety Code (“HSC”) Section 34176.1(f). The Annual Report for the previous fiscal year shall be provided to the housing successor’s governing body and posted on its website. This cumulative report covers the activities of the City as the Housing Successor from Fiscal Year (“FY”) 2013-14 through FY 2023-24.
SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT
The Annual Report is limited to the City’s activities as they relate to its role as Housing Successor, rather than all housing functions of the City in general, and describes compliance with various annual, five-year, and ten -year housing expenditure and production requirements . Since the dissolution of the former Redevelopment Agency, the City has maintained all transferred assets, liabilities, and housing activities in the Lake Elsinore Housing Asset Fund (Fund 617).
ASSETS TRANSFERRED TO THE HOUSING SUCCESSOR
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the former Redevelopment Agency were transferred to the designated housing successor. The Housing Successor prepared a Housing Asset Transfer (“HAT”) Form that provided an inventory of all housing assets transferred from the Agency to the Housing Successor. This included:
1. Real properties;
2. Personal property;
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 2 3. Low- and Moderate-Income Housing Fund (“LMIHF”) encumbrances;
4. Loans/Grants Receivables;
5. Rents/ Operations; and
6. Deferrals.
The HAT was approved by the California Department of Finance (“DOF”) on September 17, 2012. It is important to distinguish that housing successor assets that were not transferred from the former Agency or generated by or purchased with assets from the former Agency are not subject to HSC Section 34176.1.
A copy of the HAT is provided as Appendix 1.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 3 BACKGROUND
This section summarizes the legal requirements for use of housing successor assets that are addressed in this Report.
LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS
In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:
1. Expenditures and housing production are subject to income and age targets.
2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered cash balance based on certain thresholds.
3. Properties must be developed with affordable housing or sold within five to ten years of the DOF approving the HAT.
Appendix 2 provides a more detailed summary of the reporting requirements that are addressed in this Report.
PERMITTED USES OF HOUSING ASSET FUNDS
Pursuant to HSC Section 34176.1, former Agency assets and the revenues generated by those assets, are to be maintained in a Low- and Moderate-Income Housing Asset Fund (“Housing Asset Fund” ). In the case of Lake Elsinore, Housing Successor funds and activity are recorded in Fund 617, which is Lake Elsinore’s Housing Asset Fund. Housing Asset Funds may be spent on:
• Administrative costs for the operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted annually for inflation , as determined annually by the State’s Department of Housing and Community Development )”HCD”), or o 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable on the HAT (“Portfolio”), whichever is greater.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 4 Since dissolution, the Housing Successor’s property and loan portfolio had an asset value large enough that 5% of this amount has always exceeded the alternative annual limit of $200,000 adjusted for inflation. Therefore, the Housing Successor’s administrative spending limit for every fiscal year since dissolution has been higher than the HCD $200,000 limit adjusted annually for inflation.
• Homeless prevention and rapid rehousing services up to $250,000 per year , if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Lake Elsinore is eligible for this expense because the former Agency had met its inclusionary housing and replacement housing production requirements upon dissolution.
• Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five- or ten-year period.
Five-Year Income Proportionality on Development Expenditures: Any Housing Asset Funds may be spent on the development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined in HSC Section 33413 as new construction, acquisition , rehabilitation, or the preservation of affordable housing developments.
During each five -year compliance period , at least 30 percent of total development expenditures must assist extremely low-income households (up to 30 percent AMI), while no more than 20 percent may assist low-income households (between 60-80 percent AMI). The remaining balance of such expenditures may be used on very low -income households (households earning between 30 -60 percent AMI) so long as the minimum expenditures on very low households are met.
Housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80 percent AMI, as long as it was 20 percent or less of the total expenditures during the five -year compliance period.
Should a housing successor not spend at least 30 percent of its development expenditures on extremely low -income households, or exceed the amount spent on low -income
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 5 households, future expenditures are subject to greater restriction s until these proportionality targets are met.
Specifically, if a housing successor is unable to spend at least 30 percent of its development expenditures on extremely low units, it is required to increase this spending on extremely low- income units to 50 percent until compliant with the 30 percent threshold; a housing successor that spends more than 20 percent of its development expenditures on low-income units cannot spend any further funds on low -income developments until it is at or below the 20 percent threshold. As such, tracking these expenditure s and their progress over the corresponding five-year period is an important function of the Annual Report.
This Report covers the Housing Successor’s expenditures during the entire first and second five-year compliance periods.
Ten-Year Age Proportionality: If more than 5 0 percent of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior housing.
It is important to stress that housing successor expenditure and production requirements are measured on different timeframes:
• One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance is evaluated annually and resets every year.
• Five-Year Limit: Expenditures by Income Level. Compliance is evaluated over a fixed five-year period set by law, the first five-year period being July 1, 2013, to June 30, 2019, the second period being July 1, 2019, to June 30, 2024.
• Ten-Year Limit: Number of Senior Deed -Restricted Units Assisted. Compliance is evaluated based on a rolling ten-year period that is different every year.
Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 6 LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS
SURPLUS)
State law limits how much cash a housing successor may retain and, if it fails to commit and spend these funds in a reasonable timeframe, the housing successor must transfer unspent funds to HCD for use on State housing programs.
HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Fund cash based on the greater of:
• $1,000,000, or
• The total amount of deposits made into the Housing Asset Fund over the preceding four years.
Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.
As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.
HOUSING ASSET FUND ACTIVITY
This section of the Report details the Housing Successor’s activities since dissolution, beginning with FY 2013-14 to FY 2021-22, as reported in the City’s Fund 617.
DEPOSITS
Tables 1.1 and 1.2 below report the value of funds that were deposited into the Housing Asset Fund each fiscal year. Deposits have consisted of fair market value adjustments on investments, interest on investments, principal and interest payments on loans, miscellaneous revenue, land sale proceeds, and fund transfers.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 7 Table 1.1 – Housing Asset Fund Deposits FYs 2013-14 through FY 2018-19
Table 1.2 – Housing Asset Fund Deposits FYs 2019-20 through FY 2023-24
ENDING CASH AND FUND BALANCE
Tables 2.1 and 2.2 below show t he Housing Asset Fund balance at the end of each fiscal year since dissolution. The fund balance consists of cash, assets, and receivables held by the Housing Successor, less accounts payable, reserves, obligations, and unavailable revenue.
Deposit Type FY 2013-142 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FMV on Investments 33,886$ 56,457$ (90,623)$ (55,740)$ 105,402$ Investment Interest 1,019,758 130,371 95,904 55,889 77,912 Loan Repayments1 - - - 479,632 2,076,084 Misc. Revenue - - - - 5,000 Sale of Land - - - - 3,530,928 Gain/ Loss - - - - 2,250 Transfers - - - - - Total 3,952,097$ 1,053,644$ 186,829$ 5,281$ 479,781$ 5,797,576$ Source: City of Lake Elsinore
1 Includes ROPS obligations repayments
2 Deposit total for FY 2013-14 as reported in the Annual Comprehensive Financial Report. Deposit type detail was unavailable.
N/A
Deposit Type FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FMV on Investments 54,118$ (57,271)$ (594,306)$ 18,198$ 552,456$ Investment Interest 148,008 161,300 143,984 360,249$ 956,489$ Loan Repayments1 2,305,418 5,566,378 9,234,661 2,032,766$ 483,966$ Misc. Revenue - 2,400 51,491 12,503$ 11,892$ Sale of Land - - - - - Gain/ Loss - - - - - Transfers - 2,255,171 - - - Total 2,507,543$ 7,927,977$ 8,835,831$ 2,423,716$ 2,004,803$ Source: City of Lake Elsinore
1 Includes ROPS obligations repayments
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 8 Table 2.1: Housing Asset Fund - Ending Year Balance FY 2013-14 through FY 2018-19
Table 2.1: Housing Asset Fund - Ending Year Balance FY 2013-14 through FY 2023-24
Balance Type FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Claim on Pooled Cash 5,130,999$ 5,923,346$ 6,564,748$ 6,199,502$ 4,635,471$ 3,501,201$ Investments - CAMP 4,170,548 4,991,266 5,053,057 5,131,495 - - Accounts Receivable 491,323 - - 9,770 - - Interest Receivable - - 10,772,113 11,526,782 12,321,004 Loan Receivables 32,627,440 32,381,184 31,819,059 31,273,186 39,175,437 42,365,107 Lakeview 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Mission Trail - - - - 7,520,000 7,520,000 Cottages - - - - 714,210 5,074,276 City Third Lien Mortgage Assist - - - - - - Pottery Court 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 Habitat for Humanity - - - - - 65,000 Mission Cottages (Bridge) - - - - - - 1995 Housing 18,040,440 18,040,440 18,040,440 18,040,440 18,040,439 18,040,440 SERAF Advances 3,750,000 3,503,744 2,941,619 2,395,746 2,063,788 828,391 Accrued Interest Receivable 9,591,978 9,265,691 10,012,936 24,822 4,260 15,659 Due from SARDA - Summerly DDA Obligation - - - - 2,074,276 - Land Held for Resale 48,369 48,369 48,369 768,369 768,369 768,369 Accounts Payable (759,631) (11,360) (18,404) (28,026) (30,698) (312,494) Retention Payable - (752,000) (752,000) Summerly DDA Obligation - Pledged Housing - (920,884) (1,186,406) (1,566,533) - - Unavailable Revenue (9,591,461) (9,252,179) (9,995,810) (10,772,113) (13,601,058) (12,321,004) Unearned Revenue - - - - - (973,052) Reserve - Land Held for Resale - - (48,369) (768,369) (768,369) (1,536,737) Total Asset Balance 41,709,565$ 42,425,432$ 42,249,180$ 41,044,216$ 43,032,471$ 43,076,052$ Source: City of Lake Elsinore
Balance Type FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Claim on Pooled Cash 4,913,479$ 7,422,938$ 17,894,674$ 26,565,264$ 36,292,011$ Investments - CAMP - - - - - Accounts Receivable 380 - 2,546 - 2,701 Interest Receivable 11,727,074 8,858,748 6,002,503 4,631,768 4,879,988 Loan Receivables 41,536,716 42,456,716 40,406,716 34,743,495 27,179,260 Lakeview 1,100,000 1,100,000 - - - Mission Trail 7,520,000 7,520,000 7,520,000 7,520,000 7,520,000 Cottages 5,074,276 5,074,276 5,074,276 5,074,276 5,074,276 City Third Lien Mortgage Assist - 35,000 35,000 35,000 35,000 Pottery Court 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 Habitat for Humanity 65,000 - - - - Mission Cottages (Bridge) - 950,000 - - - 1995 Housing 18,040,440 18,040,440 18,040,440 12,377,219 4,812,984 SERAF Advances - - - - - Accrued Interest Receivable 9,131 7,058 35,929 150,800 307,167 Due from SARDA - Summerly DDA Obligation 911,996 438,760 500,651 - - Land Held for Resale 768,369 768,369 768,369 768,369 418,369 Accounts Payable (2,289,116) (180,045) (45,667) (73,892) (80,474) Retention Payable (752,469) - - - - Summerly DDA Obligation - Pledged Housing - - - (1,069,534) (1,858,093) Unavailable Revenue (11,727,074) (7,775,632) (6,002,503) (4,631,768) (4,879,988) Unearned Revenue (741) (741) - - - Reserve - Land Held for Resale - - - - - Total Asset Balance 45,097,745$ 51,996,170$ 59,563,217$ 61,084,501$ 62,260,940$ Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 9 EXPENDITURES
Housing successors may expend Housing Asse t Funds to cover administrative costs, homeless prevention and rapid rehousing programs, or assist in affordable housing development . Administrative and homeless prevention expenditures are subject to annual compliance limits , while housing development expenditures are subject to five-year proportionality requirements.
Tables 3.1 and 3.2 below illustrate the Housing Successor’s compliance with annual expenditure limits each fiscal year since dissolution. The Housing Successor’s administrative expenditures are limited to $200,000 per year adjusted for inflation , as determined by HCD , or 5% of the Housing Successor’s property and loan portfolio value, whichever is greater. The Housing Successor’s property and loan value has always been large enough such that 5% of the portfolio value has exceeded the HCD limit .
Administrative spending has consistently been less than the applicable expenditure limit and, therefore, the Housing Successor has complied with this requirement since dissolution . To date, the Housing Successor has not spent any funds on homeless prevention or rapid rehousing programs and is therefore in compliance with the $250,000 annual limit.
Table 3.1 Housing Asset Fund Expenditures Annual Compliance FY 2013-14 to FY 2018-19
FY 2013-141 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 2 Administration
Expenditures 198,051$ 169,101$ 49,189$ 110,118$ 58,059$ 516,366$ HCD Limit 200,000$ 201,600$ 203,000$ 207,200$ 211,500$ 215,500$ Portfolio Limit 1,633,790$ 1,621,478$ 1,593,371$ 1,602,078$ 1,997,190$ 2,156,674$ Compliant (Yes/No) Yes Yes Yes Yes Yes Yes
Homeless Prevention
Expenditures -$ -$ -$ -$ -$ -$ Limit 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Compliant (Yes/No) Yes Yes Yes Yes Yes Yes
Source: City of Lake Elsinore
1Expenditures for FY 2013-14 found in the Annual Comprehensive Financial Report. It is unclear from the report how exactly the expenses are broken down, so this report assumes that all expenses were spent on administrative uses. 2Administrative expenditures increased in 2018-19 due to legal fees permitted to be paid by the statute as a result of a successful lawsuit against the Department of Finance.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 10 Table 3.2 Housing Asset Fund Expenditures Annual Compliance FY 2019-20 to FY 2023-24
EXPENDITURE PROPORTIONALITY
The Housing Successor has expended Housing Asset F unds to assist various affordable housing development projects since FY 2013 -14. These expenditures are subject to income proportionality requirements by AMI level within fixed five-year compliance periods.
Table 4.1 below illustrates the Housing Successor’s expenditures on affordable housing developments during the first five -year compliance period , which ended with FY 2018 -19. For this first period, the Housing Successor did not satisfy one of the income proportionality requirements, since it failed to spend at least 30 percent of its total housing development expenditures on extremely low -income households (those earning less than 30 percent AMI ). The Housing Successor spent a total of approximately $12 million on affordable housing developments in the following income categories: $11,970,393 (99.8%) was allocated to very low-income households (earning between 30-60 percent AMI) such as the Mission Trail Apartments and Cottages at Mission Trail; $19,528 (0.2%) assisted a Habitat for Humanity project for a low income household (earning between 60-80 percent AMI ); and no expenditures were allocated to extremely low-income households;.
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Administration
Expenditures 61,637$ 180,244$ 47,992$ 83,482$ 78,763$ HCD Limit 220,400$ 223,400$ 239,000$ 254,500$ 263,100$ Portfolio Limit 2,115,254$ 2,161,254$ 2,058,754$ 1,775,593$ 1,379,881$ Compliant (Yes/No) Yes Yes Yes Yes Yes
Homeless Prevention
Expenditures -$ -$ -$ -$ -$ Limit 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Compliant (Yes/No) Yes Yes Yes Yes Yes
Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 11 Table 4.1: Housing Asset Fund Expenditures – Five-Year Compliance
As a consequence of not meeting the proportionality requirement in the first period for at least 30% of expenditures to be allocated for extremely low-income households, the Housing Successor was required to allocate 50 percent of all subsequent housing development expenditures to extremely low-income households. In the following FY 2019 -20, the Housing Successor spent $2,255,171 to purchase a property at 215 West Graham to be developed as affordable housing for extremely low-income households. This expenditure was more than 80 percent of annual development expenditures for that fiscal year.
For the second five-year compliance period, f rom FY 2019 -20 through FY 202 3-24, the Housing Successor spent approximately $5.7 million on development activities . Of that total, $2,735,487 (48%) has been allocated to extremely low -income households, including an upcoming project known as the Riley Senior Apartments , while $2,880,904 (51%) has been allocated to very low -income units at the Cottages at Mission Trail, and $59,576 (1%) has been allocated to low-income households. The Housing Successor has complied with housing asset fund expenditure limits for the second five -year period, as shown in Table 4.2 below.
Ext. Low Other Ext. Low Very Low Low
Rental Units Units <30% AMI 30-60% AMI 60-80% AMI
FY 2013-14 $0 $0 $0 $0 $0
FY 2014-15 $0 $0 $0 $0 $0
FY 2015-16 $0 $0 $0 $0 $0
FY 2016-17 $0 $80,725 $0 $80,725 $0
FY 2017-18 $0 $8,234,210 $0 $8,234,210 $0
FY 2018-19 $0 $3,674,987 $0 $3,655,459 $19,528
Total Expenditures $0 $11,989,921 $0 $11,970,393 $19,528 SB 341 Limitation >30% <70% >30% N/A <20%
Five-Year Period Proportion 0% 100% 0% 99.8% 0.2%
Compliant (Yes/No) No No No N/A Yes
First Five-Year Period (FY 2013-14 through FY 2018-19)
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 12 Table 4.2: Housing Asset Fund Expenditures – Second Five-Year Compliance
The Housing Successor will continue to monitor and ensure that it meet s all annual and five -year compliance requirements for all administrative, homeless assistance, and housing development expenditures for the next five-year compliance period.
HOUSING ASSET FUND PORTFOLIO
The Housing Successor portfolio includes seven land parcels and four loans transferred from the former Agency on the HAT , as well as SERAF and 1995 Housing Interfund loan payments due from the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) .
Since dissolution, the Housing Successor has acquired several new properties and loans. Tables 5.1 and
5.2 below detail all of the Housing Successor’s real property (at purchase values) and loans receivable (at principal value without accrued interest) for each fiscal year since dissolution.
Ext. Low Other Ext. Low Very Low Low
Rental Units Units <30% AMI 30-60% AMI 60-80% AMI
FY 2019-20 $2,255,171 $468,841 $2,255,171 $458,131 $10,710 FY 2020-21 $0 $849,308 0 819,308 30,000
FY 2021-22 $395,133 $825,658 395,133 807,610 18,048
FY 2022-23 $23,096 $795,855 $23,096 $795,855 $0
FY 2023-24 $62,087 $818 $62,087 $0 $818
Total Expenditures $2,735,487 $2,940,480 $2,735,487 $2,880,904 $59,576 SB 341 Limitation >30% <70% >30% N/A <20%
48% 52% 48% 51% 1%
Compliant (Yes/No) Yes Yes Yes N/A Yes
Source: City of Lake Elsinore
Second Five-Year Period (FY 2019-20 through FY 2023-24)
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 13 Table 5.1: Real Properties and Loans Receivable FY 2013-14 to FY 2018-19
Table 5.2: Real Properties and Loans Receivable FY 2019-20 to FY 2023-24
Asset FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19 Real Properties
HAT Properties (7 parcels) 48,369 48,369 48,369 48,369 48,369 48,369 Land held for resale 720,000 720,000 720,000 Subtotal 48,369 48,369 48,369 768,369 768,369 768,369 Loan Receivables
Loan - Lakeview Apartments 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Loan - Pottery Court 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 Loan - 1995 Housing Interfund 18,040,440 18,040,440 18,040,440 18,040,440 18,040,440 18,040,440 Loan - Mission Trail Apartments - - - - 7,520,000 7,520,000 Loan - Cottages @ Mission trail - - - - 714,210 5,074,276 Loan - Habitat for Humanity - - - - - 65,000 Loan - Mission Cottages Bridge - - - - - - Loan - City Third Lien Mortgage Assist - - - - - - Loan - SERAF Advances 3,750,000 3,503,744 2,941,619 2,395,746 2,063,788 828,391 Subtotal 32,627,440$ 32,381,184$ 31,819,059$ 31,273,186$ 39,175,438$ 42,365,107$ Portfolio Value 32,675,809 32,429,553 31,867,428 32,041,555 39,943,807 43,133,476 Source: City of Lake Elsinore
Ending Year Balance
Asset FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 Real Properties
HAT Properties (7 parcels) 48,369 48,369 48,369 48,369 48,369 Land held for resale 720,000 720,000 720,000 720,000 370,000 Subtotal 768,369 768,369 768,369 768,369 418,369 Loan Receivables
Loan - Lakeview Apartments 1,100,000 1,100,000 - - - Loan - Pottery Court 9,737,000 9,737,000 9,737,000 9,737,000 9,737,000 Loan - 1995 Housing Interfund 18,040,440 18,040,440 18,040,440 12,377,219 4,812,984 Loan - Mission Trail Apartments 7,520,000 7,520,000 7,520,000 7,520,000 7,520,000 Loan - Cottages @ Mission trail 5,074,276 5,074,276 5,074,276 5,074,276 5,074,276 Loan - Habitat for Humanity 65,000 - - - - Loan - Mission Cottages Bridge - 950,000 - - - Loan - City Third Lien Mortgage Assist - 35,000 35,000 35,000 35,000 Loan - SERAF Advances - - - - - Subtotal 41,536,716$ 42,456,716$ 40,406,716$ 34,743,495$ 27,179,260$ Portfolio Value 42,305,085 43,225,085 41,175,085 35,511,864 27,597,629 Source: City of Lake Elsinore
Ending Year Balance
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 14 REAL PROPERTY AND DISPOSITION STATUS
HSC Sections 33334.16 and 34176.1(e) require that all real properties acquired by the former Agency prior to February 1, 2012, and transferred to the Housing Successor, be developed for affordable housing purposes or disposed of within five years from the date DOF approved the HAT, or September 17, 2017.
If the Housing Successor is unable to meet this deadline, the law allows for a five -year extension via adoption of a resolution. The City adopted a Resolution on October 24, 2017 , extending the property disposition deadline to September 17, 2022. In the event that physical development for this purpose had not begun by the end of the extended period, properties should be sold, and the proceeds deposited into the Housing Fund. The Housing Successor has continued to evaluate potential sale and development opportunities but has not successfully disposed of all properties to date.
The former Agency transferred seven land parcels to the Housing Successor pursuant to the HAT, which are further described below:
• Land Parcels Transferred on the HAT (APN 375-293-029, 375-293-030, 375-321-029, 375-321- 030, 375-321-031, 375-321-032, 375-321-033): These seven (7) parcels were transferred to the Housing Successor on the HAT. These are tax defaulted parcels that the County foreclosed on which the former Agency purchased in 2009. To date none of the parcels have been developed.
The Housing Successor is currently evaluating the feasibility of developing the parcels with affordable housing, however, many of the parcels are small and may be difficult to develop. The Housing Successor may sell the properties to the City in which case proceeds would be deposited in the Housing Asset Fund.
Since dissolution, the Housing Successor has acquired property for the purposes of developing affordable housing. This property is not subject to the 2022 disposition deadline, as it was acquired post dissolution:
• Land Held for Resale: In FY 2016-17, the City Council of Lake Elsinore approved the purchase of sixteen (16) Successor Agency parcels using Housing Asset Funds for use as affordable housing.
The parcels were purchased at a fair market value of $720,000. Twelve (12) of the parcels, located along Spring Street, would be difficult to develop . Therefore, the City is considering purchasing the parcels to use as additional library parking. No offer has been made on these parcels yet. The remaining four (4) parcels, located on Pottery and Spring Streets, are currently under negotiation with a developer to build affordable housing units.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 15 LOANS RECEIVABLE
Four (4) Affordable Housing Development loans were transferred from the former Agency to the Housing Successor as part of the Housing Asset Transfer Form approved by DOF on September 17, 2012. Since dissolution, the Housing Successor has issued additional loans to assist several housing development projects.
• Lakeview Apartments: The Housing Successor provided a total of $1,100,000 in 2010 to assist in the development of the Lakeview Apartments, a two -phase multi-family rental project. Phase I includes 88 units designated for low-income (80% AMI), while Phase II is designated for very low (50% AMI) and low-income (80% AMI) households. As of FY 2021 -22, this loan has been completely repaid.
• Pottery Court: The Housing Successor assisted with the acquisition and construction of a new 113-unit multi-family rental project located at 295 W Summer Ave . All units in the project are required to be rented to very low-income (50% AMI) households. In 2011, the Housing Successor issued a loan with a principal amount of $9,737,000 in Housing Asset Funds to the Pottery Court Apartments. The loan accrue s interest at a rate of 3% per year. As of FY 2 023-24, the loan remains outstanding.
• Mission Trail Apartments : In 2016, the Housing Successor loaned $7,520,000 to assist the acquisition and construction of the Mission Trail Apartments, a new 81 -unit multi-family project.
The project includes 21 units restricted to occupancy by very low-income (50% AMI) and 59 units for low-income (80% AMI) households. The loan accrues interest at a rate of .5% per year. As of FY 2023-24, the loan remains outstanding.
• Cottages at Mission Trail: The Housing Successor loaned a total of $5,074,276 in 2017 to assist the development of the Cottages at Mission Trail. The 143-unit multi-family project includes units restricted to occupancy by very low (50% AMI) and low-income (60% AMI) households. As of FY 2023-24, the outstanding balance of this loan is $5,074,276, which includes interest accrued at 3% per year. Later in 20 20, a bridge loan was issued in the amount of $950,000, which was entirely repaid in 2021.
• APN: (377-292-033): The Housing Successor provided a $65,000 loan to Habitat For Humanity for the relocation and construction of a single-family owner-occupied housing project. $35,000 of the total loan was used for land acquisition, while the remaining $30,000 was dedicated to project
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 16 development. Per the project agreement, the $30,000 portion of the loan was deemed fully satisfied upon the sale of the project to a qualified homebuyer. The remaining $35,000 portion was assumed by the buyer. The home was purchased in FY 2020 -21, and the remaining outstanding balance is $35,000.
The Housing Successor also holds two (2) former Redevelopment Agency Loans which were transferred to the Housing Successor at dissolution. These loans constitute enforceable obligations on the Recognized Obligation Payments Schedul e (“ROPS”) of the Successor Agency and are repaid to the Housing Successor with Redevelopment Property Tax Trust Fund (RPTTF) monies. • 1995 Housing Interfund Loan: In 1995, the Lake Elsinore Public Financing Authority ( “PFA”) issued its 1995 Series A Tax Allocation Bonds and Series B Subordinate Tax Allocation Revenue Bonds to repay prior loans and finance low - and moderate -income housing and other redevelopment activities. The PFA loaned the proceeds of the bonds to the former Agency, which were deposited into the Agency’s low - and moderate-income housing fund. The low- and moderate-income housing fund then loaned the monies to the redevelopment Project Areas, to be repaid to the low- and moderate-income housing fund with future property tax increment. The Housing Fund (Interfund) Loan is listed as Item 20 on the Successor Agency ROPS. Payments made in any given year are calculated and disbursed based on available RPTTF after deductions for payment of all other debts and obligations of the Agency. • SERAF Advances: The Housing Successor is entitled to repayment of advances made in 2009- 2010 by the former Redevelopment Agency’s low - and moderate-income housing fund to make payments into the Supplemental Educational Revenue Augmentation Fund (“SERAF”) . The loan was to be repaid by the Successor Agency in installments beginning FY 2014-2015 in the amount of $3,750,000. Repayment of the SERAF advances is limited by a formula set forth in AB 1484 and has a priority over repayment of certain other advances. The balance of the loan was fully repaid in FY 2019-20.
SENIOR RENTAL HOUSING LIMIT COMPLIANCE
The Housing Successor complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. Due to the nature of the ten-year rolling compliance period, Table 6 below only reports on the current ten-year period, which is FY 201 4-15 through FY 202 3-24. The Housing Successor, City, and former Agency have assisted four projects in the past ten years, of which one 16 -unit project is restricted to seniors. Of th e
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 17 total units assisted in the rolling ten-year period, only 4 percent have been restricted to seniors. Therefore, the Housing Successor is in compliance with this requirement.
Table 6: Deed-Restricted Units Assisted – 10-Year Compliance
EXCESS SURPLUS
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered amount that exceeds the greater of $1 million, or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. Any excess surplus accumulated by a housing successor must be eliminated or encumbered within three fiscal years. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year.
The Housing Successor’s potential for an excess surplus was calculated for each fiscal year sin ce dissolution using the beginning cash balance, deposit amounts, and encumbrances as recorded in Fund 617. This calculation matches the excess surplus methodology applied by HCD prior to redevelopment dissolution. The excess surplus calculation for each fiscal year is shown in Table 8.
Table 8: Excess Surplus FY 2013-14 through FY 2023-24
Property Address Date Senior
Units % Non-Senior
Units % Total
Units
Mission Trail Apartments 32585 Mission Trail FY 17-18 0 0% 81 100% 81 Cottages at Mission Trail 32675 Mission Trail FY 19-20 0 0% 143 100% 143 Riley Street Senior Apartments 200 N. Riley Street FY 21-22 16 100% 0 0% 16 The Anchor 215 W. Graham Ave FY 19-20 0 0% 14 100% 14
Total 16 6% 238 94% 254
Total Deed-Restricted Senior Units: 6%
Source: City of Lake Elsinore
FY 2014-15 through FY 2023-24
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Unencumbered Balance Calculation
Cash Beginning Balance 5,545,629 5,130,999 5,923,346 6,564,748 6,199,502 4,635,471 Encumbrances - - - 12,594,276 12,594,276 4,425,066 Unencumbered Amount 5,545,629$ 5,130,999$ 5,923,346$ -$ -$ 210,405$ Surplus Limit Calculation
Current Year Deposits 3,952,097 1,053,644 186,829 5,281 479,781 5,797,576 Preceeding Four Years of Deposits 5,636,289 9,588,386 10,642,030 10,828,858 5,197,850 1,725,534 $1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Greater Number 5,636,289$ 9,588,386$ 10,642,030$ 10,828,858$ 5,197,850$ 1,725,534$ Excess Surplus Calculation
Unencumbered less Greater Number (90,660) (4,457,387) (4,718,684) (10,828,858) (5,197,850) (1,515,129) Excess Surplus None None None None None None
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 18 Up until the most recent Fiscal Year t he Housing Successor ha d always had an unencumbered cash balance less than the surplus limit and had not accumulated an excess surplus in any fiscal year since FY 2013-14. In the most recent fiscal year the Housing Successor accumulated an excess surplus of $2,041,832 which must be spent or encumbered by fiscal year 2026-27.
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Unencumbered Balance Calculation
Cash Beginning Balance 3,501,201 4,913,479 7,422,938 17,894,674 24,565,264 Encumbrances 2,959,778 1,196,476 120,000 902,433 828,364 Unencumbered Amount 541,422$ 3,717,003$ 7,302,938$ 16,992,241$ 23,736,900$ Surplus Limit Calculation
Current Year Deposits 2,507,543 7,927,977 8,835,831 2,423,716 2,004,803 Preceeding Four Years of Deposits 6,469,466 8,790,181 16,712,878 25,068,927 21,695,068 $1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Greater Number 6,469,466$ 8,790,181$ 16,712,878$ 25,068,927$ 21,695,068$ Excess Surplus Calculation
Unencumbered less Greater Number (5,928,044) (5,073,178) (9,409,939) (8,076,686) 2,041,832 Excess Surplus None None None None 2,041,832$
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 19 OTHER INFORMATION
TRANSFERS TO OTHER HOUSING SUCCESSORS
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1.
HOMEOWNERSHIP UNIT INVENTORY
Table 9 presents an inventory of affordable homeowner units assisted by the former Agency or Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies.
Table 9: Assisted Unit Inventory - Homeownership
Project Name / Address Unit No.
Covenant
Expiration
Affordability
Period (Yrs)
Agency Loan
amount
APN: 377-292-033 N/A 10/10/64 45 35,000$
Assisted Unit Inventory - Homeownership
Source: City of Lake Elsinore
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 20 APPENDIX 1 – HOUSING ASSET TRANSFER FORM
Attached as a separate document.
Former Redevelopment Agency: The Redevelopment Agency of the City of Lake Elsinore Successor Agency to the Former
Redevelopment Agency: City of Lake Elsinore as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Entity Assuming the Housing Functions
of the former Redevelopment Agency: City of Lake Elsinore Entity Assuming the Housing Functions
Contact Name: James R. Riley Title Director of Admin. Services Phone 951-674-3124, 212 [email protected]
Entity Assuming the Housing Functions
Contact Name: Barbara Leibold Title City Attorney/ Agency Counsel Phone 949-457-6300, 104 [email protected]
The following Exhibits noted with an X in the box are included as part of this inventory of housing assets:
Exhibit A - Real Property X
Exhibit B- Personal Property X
Exhibit C - Low-Mod Encumbrances X
Exhibit D - Loans/Grants Receivables X
Exhibit E - Rents/Operations X
Exhibit F- Rents
Exhibit G - Deferrals X
Prepared By: James R. Riley
Date Prepared: 8/1/2012
E-Mail Address
E-Mail Address
All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list.
DEPARTMENT OF FINANCE
HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)
Exhibit A - Real Property
Item #
Carrying Value
of Asset
Total
square
footage
Is the property
encumbered by
a low-mod
housing
covenant?
Source of
low-mod
housing
covenant b/
Date of
transfer to
Housing
Successor
Agency
Construction
or acquisition
cost funded
with Low-Mod
Housing Fund
monies
Construction
or acquisition
costs funded
with other
RDA funds
Construction
or acquisition
costs funded
with non-RDA
funds
Date of
construction
or
acquisition
by the
former RDA
Interest in
real property
(option to
purchase,
easement,
etc.)
1 $10,633.21 5,033 No CRL 02/01/2012 $10,633.21 $0 $0 10/23/2009 Fee Simple 2 $12,087.15 5,925 No CRL 02/01/2012 $12,087.15 $0 $0 10/23/2009 Fee Simple 3 $5,093.32 2,688 No CRL 02/01/2012 $5,093.32 $0 $0 10/23/2009 Fee Simple 4 $14,245.21 2,556 No CRL 02/01/2012 $14,245.21 $0 $0 10/23/2009 Fee Simple 5 $1,634.51 2,287 No CRL 02/01/2012 $1,634.51 $0 $0 10/23/2009 Fee Simple 6 $1,634.51 2,645 No CRL 02/01/2012 $1,634.51 $0 $0 10/23/2009 Fee Simple 7 $3,040.63 2,217 No CRL 02/01/2012 $3,040.63 $0 $0 10/23/2009 Fee Simple 8 N/A 4.3 Acres Yes
CRL;HOME;
Tax Credit;
Hope VI 02/01/2012 $9,737,000.00 $0 $0 05/26/2009 Deed of Trust 9 N/A 4.3 Acres Yes CRL 02/01/2012 $9,737,000.00 $0 $0 05/26/2009 Covenants 10 N/A 4.43 Acres Yes CRL 02/01/2012 $1,100,000.00 $0 $0 10/12/2010 Deed of Trust 11 N/A 4.43 Acres Yes CRL 02/01/2012 $1,100,000.00 $0 $0 10/12/2010 Covenants 12 N/A 4.43 Acres Yes CRL 02/01/2012 $0 $0 $0 10/12/2010 Covenants 13 N/A
5.29 Acres Yes
MFHRB; CRL 02/01/2012 $0 $0
$5,000,000
MFHRB 11/01/1999 Covenants
14 15
16 17
18 19
20 Regulatory Agreement
Regulatory Agreement
Land
Deed of Trust
Regulatory Agreement
Deed of Trust
Regulatory Agreement
375-321-030
375-321-031
375-321-032
375-321-033
374-071-028 & 374-072-042
Land
Land
Land
Land
Land
374-071-028 & 374-072-042
2,556
2,287
2,645
379-111-012
379-111-012
379-111-011
379-111-015
Square footage
reserved for low-
mod housingLegal Title and Description
5,033
5,925
2,688
375-293-029
375-293-030
375-321-029
b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
2,217
4.3 Acres
4.3 Acres
4.43 Acres
4.43 Acres
4.43 Acres
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Type of Asset a/
Land
a/ Asset types may include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
5.29 Acres
Exhibit B - Personal Property
Item #
Carrying Value
of Asset
Date of
transfer to
Housing
Successor
Agency
Acquisition
cost funded
with Low-Mod
Housing Fund
monies
Acquisition
costs funded
with other RDA
funds
Acquisition
costs funded
with non-
RDA funds
Date of
acquisition by
the former RDA
1 N/A 02/01/2012 N/A N/A N/A Various
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 a/ Asset types any personal property provided in residences, including furniture and appliances, all housing-related files and loan documents, office supplies, software licenses, and mapping programs, that were acquired for low and moderate income housing purposes, either by purchase or through a loan, in whole or in part, with any source of funds.
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Type of Asset a/ Description
Books & Records
Books & records used
for Affordable Housing
Assets, liabilities,
rights and obligations
Exhibit C - Low-Mod Encumbrances
Item # Contractual counterparty
Total amount
currently
owed for the
Enforceable
Obligation
Is the property
encumbered by
a low-mod
housing
covenant?
Source of low-
mod housing
covenant b/
Current owner of
the property
Construction or
acquisition cost
funded with Low-
Mod Housing
Fund monies
Construction or
acquisition costs
funded with
other RDA funds
Construction or
acquisition costs
funded with non-
RDA funds
Date of
construction or
acquisition of
the property
1 Civic Partners-Elsinore LLC $ 537,309 No CRL
Civic Partners-
Elsinore LLC TBD TBD TBD TBD
2 Various payees pursuant to Civic-
McMillin DDA $15,000/Year Yes CRL
Civic Partners-
Elsinore LLC;
McMillian-
Summerly LLC TBD $0 TBD TBD
3 Various payees pursuant to Pottery
Court DDA $6,000/Year Yes CRL
Pottery Court
Housing
Associates L.P. $9,737,000 $0 $0 5/26/2009
4 Various payees pursuant to
Lakeview LMV II Loan Agreement $6,000/Year Yes CRL
LMV II Affordable
L.P. $1,100,000 $0 $0 10/12/2010
5 Various payees pursuant to
regulatory agreement Lakeview
Village $6,000/Year Yes MFHRB; CRL Dav A North Lake $0 $0 MFHRB
$5,000,000 11/01/1999
6 Various payees to administer
housing fund loan $5,000/Year No CRL N/A TBD $0 TBD N/A 7 Various payees to administer
SERAF loan $3,000/Year No CRL N/A TBD $0 TBD N/A
8 9
10 11
12 13
14 15
16 17
18 19
20 Low-Mod Housing
Low-Mod Housing
Low-Mod Housing
N/A
N/A
12/26/2002
5/26/2009
10/12/2010
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Date contract for
Enforceable
Obligation was
executed
Type of housing built
or acquired with
enforceably obligated
funds a/
Low-Mod Housing 12/26/2002
Low-Mod Housing
11/01/1999
12/01/1995
2009/10
a/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed- income housing with commercial space.
b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
Exhibit D - Loans/Grants Receivables
Item #
Amount of the loan
or grant
Date the loan or
grant was issued
Purpose for which
the funds were
loaned or granted
Are there
contractual
requirements
specifying the
purposes for which
the funds may be
used?
Repayment date, if
the funds are for a
loan
Interest rate
of loan
Current
outstanding loan
balance
1 9,737,000.00$ 05/26/2009 Affordable Housing Yes Year 2067 3.00% 9,737,000.00$ 2 243,425.50$
3 1,100,000.00$ 10/12/2010 Affordable Housing Yes Year 2067 3.00% 1,100,000.00$ 4 26,583.00$
5 1,000,000.00$ 05/26/2009 Affordable Housing Yes Year 2067 3.00% 1,000,000.00$ 6 47,500.00$
7 18,040,439.74$ (1) 12/01/1995
RDA Projects;
Repayment of Debt Yes Various Various 18,040,439.74$ (1) 8 16,504,559.79$ (1) 16,504,559.79$ (1)
9 10
11 12
13 14
15 16
17 18
Notes:
(1).
As of February 1, 2012.
Loan
Loan Interest
Loan
Loan Interest
Loan
Loan Interest
Pottery Court Housing
Associates, L.P.
Was the Low-Mod
Housing Fund
amount issued for a
loan or a grant?
Person or entity to whom
the loan or grant was
issued
Loan Interest
Loan
LMV II Affordable, L.P.
Pottery Court Housing
Associates, L.P.
RDA Project Areas 1,2, 3
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Exhibit E - Rents/Operations
Item #
Type of property with
which they payments
are associated b/ Property owner
Entity that
collects the
payments
Entity to which
the collected
payments are
ultimately
remitted
Purpose for
which the
payments are
used
Is the property
encumbered
by a low-mod
housing
covenant?
Source of low-
mod housing
covenant c/
Item # from
Exhibit A the
rent/operation
is associated
with (if
applicable)
1 Low-Mod Housing
Pottery Court
Housing Associates,
L.P. Housing Agency Housing Agency
Low-Mod
Housing Yes CRL 8,9
2 Low-Mod Housing
LMV II Affordable,
L.P. Housing Agency Housing Agency
Low-Mod
Housing Yes CRL 10,11,12
3 Low-Mod Housing TBD Housing Agency Housing Agency
Low-Mod
Housing No CRL Exhibit D: 7,8
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements. b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
a/ May include revenues from rents, operation of properties, residual receipt payments from developers, conditional grant repayments, costs savings and proceeds from refinancing, and principal and interest payments from homebuyers subject to enforceable income limits.
Type of payment a/
Loan Repayment
Residual Receipt Payment
Loan Repayment
Exhibit F - Rents
Item #
Type of property
with which the
payments are
associated b/
Property
owner
Entity that
collects the
payments
Entity to which
the collected
payments are
ultimately
remitted
Purpose for
which the
payments are
used
Is the property
encumbered
by a low-mod
housing
covenant?
Source of low-
mod housing
covenant c/
Item # from
Exhibit A the rent
is associated
with (if
applicable)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
Type of payment a/
N/A
a/ May include rents or home loan payments.
Exhibit G - Deferrals
Item #
Fiscal year in
which funds
were deferred Amount deferred
Interest rate
at which
funds were
to be repaid
Current amount
owed
Date upon which
funds were to be
repaid
1 FY 2009/2010 3,750,000.00$ N/A 3,750,000.00$ FY 2014/2015 2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 City of Lake Elsinore
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Purpose for which
funds were deferred
H&S Sec. 33690
(SERAF)
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 21 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT
REQUIREMENTS
Health and Safety Code Section 34176.1(f)
Housing Asset
Fund
Revenues &
Expenditures
Total amount deposited in the Housing Asset Fund for the fiscal year.
Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”).
Statement of balance at the close of the fiscal year.
Description of Expenditures for the fiscal year, broken out as follows:
• Homeless prevention and rapid rehousing
• Administrative and monitoring
• Housing development expenses by income level assisted
Description of any transfers to another housing successor for a joint project.
Other Assets and
Active Projects
Description of any project(s) funded through the ROPS.
Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing).
Other “portfolio” balances, including:
• Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund
• Value of loans and grants receivable
Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low- and Moderate-Income Housing Fund.
Obligations &
Proportionality
Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor.
Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle.
Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies.
Amount of any excess surplus, and, if any, the plan for eliminating it.
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 22 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE
REQUIREMENTS
Health and Safety Code Section 34176.1
Expense Category Limits Allowable Uses
Administration
and Compliance
Monitoring
Annual Limit
(Limit varies
each year)
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration
• Compliance monitoring to ensure compliance with
affordable housing and loan agreements
• Property maintenance at Housing Successor -owned
properties
Capped at $200,000 and adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.
Homeless
Prevention and
Rapid Rehousing
Solutions
Annual Limit
$250,000
maximum per
fiscal year
• Services for individuals and families who are homeless or would be homeless but for this assistance, including:
• Contributions toward the construction of local or regional homeless shelters
• Housing relocation and stabilization services including housing search, mediation, or outreach to property owners • Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become
homeless.
Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long -term affordability covenants on
multifamily units
• Preservation of at -risk units whose affordable rent
restrictions would otherwise expire over the next five years
Lake Elsinore Housing Successor Annual Report FY 2013-14 through FY 2023-24 23 Health and Safety Code Section 34176.1
Expense Category Limits Allowable Uses
Income
Targets
Fixed Five-Year
Compliance
Period
(First Period:
FY 2013-14 to
2018-19
Second Period:
FY 2019-20 to
FY 2023-24)
Every five years, Housing Asset Funds must meet income
targets:
• At least 30% on extremely low-income rental households (up to 30% AMI or “Area Median Income”)
• No more than 20% on low-income households (60-80%
AMI)
Moderate and above moderate-income households may not be assisted (above 80% AMI).
Failure to comply with the extremely low-income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low- income rental units until in compliance.
Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income
categories until in compliance.
Age Targets
Rolling Ten-
Year Period
For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.
If a housing successor fails to comply, Housing Asset Funds may not be spent on deed -restricted rental housing restricted to seniors until in compliance.