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LANCASTER HOUSING AUTHORITY
HOUSING SUCCESSOR ANNUAL REPORT
REGARDING THE
LOW AND MODERATE INCOME HOUSING ASSET
FUND FOR FISCAL YEAR 2024-2025
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1 (f)
FOR THE
LANCASTER HOUSING AUTHORITY
This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1 (f) and is dated as of December 30, 2025. This Report sets forth certain details of the Lancaster Housing Authority (Housing Successor) activities during Fiscal Year. The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).
The following Report is based upon information prepared by Housing Successor staff and information contained within the independent financial audit of the Low and Moderate Income Housing Asset Fund of the City of Lancaster for Fiscal Year 2024-2025, as prepared by White Nelson Diehl Evans LLP (Independent Auditors), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into Item Numbers 1-13, inclusive, pursuant to Section 34176.1 (f) of the Dissolution Law:
1. Loan Repayments : Amount the city, county, or city and county received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4.
2. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Pursuant to subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of Section 34191.4, any amounts deposited for items listed on the Recognized Oblig ation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.
3. Ending Balance of LMIHAF : This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.
4. Description of Expenditures from LMIHAF : This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized.
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5. Statutory Value of Assets Owned by Housing Successor : This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.
6. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.
7. Project Descriptions : This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.
8. Status of Compliance with Section 33334.16 : This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.
9. Description of Outstanding Obligations under Section 33413 : This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor 's progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor's plans to meet unmet obligations, if any.
10. Income Test: This section provides the information required by Section a. 34176.1 (a)(3)(8), or a description of expenditures by income restriction for five -year period, with the time period beginning January 1 ,2014 and whether the statutory thresholds have been met.
11. Senior Housing Test: This section provides the percentage of units of deed -restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years i n relation to the aggregate number of units of deed -restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period.
12. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor's plan for eliminating the excess surplus.
13. Inventory of Assisted Homeownership Units: An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants
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or restrictions or to an adopted program that protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3.
This Report is to be provided to the California Department of Housing and Community and is to be made available to the public on the city’s website, www.cityoflancasterca.org.
1. LOAN REPAYMENTS
Total repayments pursuant to HSC 34191.4(b)(3)(A) were $0.00 for the fiscal year.
2. AMOUNT DEPOSITED INTO LMIHAF
A total of $174,130 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, $0.00 were pursuant to HSC 34191.4(b)(3)(B); $0.00 were pursuant to 34191.4(b)(3)(C); and $0.00 were for items listed on the ROPS.
3. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $39,008,450 of which $0.00 is held for items listed on the ROPS.
4. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:
Monitoring & Administration Expenditures $1,145,311
Homeless Prevention and Rapid Rehousing
Services Expenditures
$0
Housing Development Expenditures $0
Total LMIHAF Expenditures in Fiscal Year $1,145,311
5. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the "statutory value of real property" means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181 (f), and the purchase price of property(ies) purchased by
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the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.
The following provides the statutory value of assets owned by the Housing Successor:
As of End of
Fiscal Year
Statutory Value of Real Property Owned by Housing Authority $40,892,805 Value of Loans and Grants Receivable $23,153,922
Total Value of Housing Successor Assets $64,046,728
6. DESCRIPTION OF TRANSFERS
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1 (c)(2) during the Fiscal Year.
7. PROJECT DESCRIPTIONS
The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.
8. STATUS OF COMPLIANCE WITH SECTION 33334.16
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the prope rty as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset.
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Please see the attachment titled "Item #8 — Status of Compliance with Section 33334.16, Real Property Assets" for a status update on the real properties housing assets that were acquired prior to February 1, 2012 and compliance with five-year period.
9. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the 2009/10 through 2013/2014 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor, as there were no replacement housing obligations.
Inclusionary/Production Housing: According to the 2009/2010 through 2013/2014 Implementation Plan for the former redevelopment agency, the following inclusionary/production housing obligations were transferred to the Housing Successor:
An inclusionary housing deficiency of 977 units. Since the plan was approved, 454 inclusionary housing units have been added, reducing the inclusionary housing deficiency to 523 units through Fiscal Year 24/25.
The former redevelopment agency's Implementation Plans are posted on the City's website at www.cityoflancasterca.org.
10. EXTREMELY-LOW INCOME TEST
Section 34176.1 (a)(3)(B) requires that the Housing Successor must require at least 30% of the LMIHAF to be expended for development of rental housing affordable to and occupied by households earning 30% or less of the AMI. If the Housing Successor fails to comply with the Extremely-Low Income requirement in any five-year report, then the Housing Successor 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 on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance with the Extremely Low Income requirement.
11. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 11 years in relation to the agg regate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment agency and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in th e LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed-restricted rental units.
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The following provides the Housing Successor's Senior Housing Test for the 12-year period of Fiscal Year 10/11 through Fiscal Year 24/25:
Senior Housing Test 10/11 through 24/25
# of Total Assisted Rental Units 328 units
Senior Housing Percentage 35.36%
# of Assisted Senior Rental Units 116 units
12. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1 (d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1 or the aggregate amount deposited into the account during the Housing Successor's preceding four Fiscal Years, whichever is greater).
Pursuant to attachment titled "Item #12 - Excess Surplus Test," the Housing Successor LMIHAF has Excess Surplus.
13. INVENTORY OF ASSITED HOMEOWNERSHIP UNITS
An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency's investment of moneys from the Lo w and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3.
This Report is to be provided to the California Department of Housing and Community and is to be made available to the public on the city’s website, www.cityoflancasterca.org.
Item #12 - Excess Surplus Test
Computation of Low & Moderate Housing Funds
Excess Surplus
FY 24/25 Calculation
7/1/2024 Opening Fund Balance $41,368,312
Less Unavailable Amounts:
Land held for resale ($40,892,805)
ERAF/SERAF loans (7,912,442)
Predissolution loans (principal only; int. is deferred) (11,628,831) Grants/ Loans receivable (3,612,649)
($64,046,728)
Available Low & Mod Income Housing Funds ($22,678,415)
Limitation (greater of $1,000,000 or amount deposited during the housing successor’s preceding four fiscal years, whichever is greater)
Revenues for last four fiscal years:
FY 2020/21 696,797
FY 2021/22 606,356
FY 2022/23 578,431
FY 2023/24 2,620,922
Amount deposited during the housing successor’s preceding four fiscal years $4,502,506
Base Limitation $1,000,000
Greater Amount 4,502,506
Computed Excess/ Surplus (27,180,921)
Yes