2026-00569 Sacramento Housing and Redevelopment Agency Annual Comprehensive Financial Report for the Year Ended December 31, 2024, and Single Audit — Sacramento City Council, February 24, 2026

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00569 2/24/2026
Sacramento Housing and Redevelopment Agency Annual Comprehensive Financial Report for the Year Ended December 31, 2024, and Single Audit
File ID: 2026-00569
Location: Citywide
Recommendation: Receive and file.

Contact: Kay Giunta, Assistant Director of Finance, (916) 449-6325, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Kay Giunta, Assistant Director of Finance, (916) 449-6325, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-ACFR-SHRA
3-SHARP AFS
4-Norwood AFS
5-Presentation
Description/Analysis
Issue Detail: The audit firm of CliftonLarsonAllen has audited the basic financial statements of the Sacramento Housing and Redevelopment Agency (SHRA) and issued its unmodified (clean) opinion that these documents for the year ending December 31, 2024, are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America.

The Annual Comprehensive Audit Report (ACFR) is organized into four major sections. First is the Introductory Section, which includes a transmittal letter summarizing economic conditions, budget initiatives, and other related documents. Next is the Financial Section, which is comprised of the independent auditor’s report and the Management Discussion and Analysis (MD&A), which provides a narrative overview of the financial statements and compares changes from year to year. The basic financial statements follow the MD&A and report on the financial position and results of operations of SHRA as a whole and the financial performance of SHRA’s governmental funds, proprietary funds, and component units. Footnotes to the financial statements are included to provide additional information. The Required Supplementary Information is unaudited and includes data on the Agency’s changes in Other Post-Employment Benefits (OPEB) and pension obligations. Finally, the

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File ID: 2026-00569 2/24/2026
Supplementary Information Section provides detailed supporting data that goes beyond the basic financial statements and required supplementary information (RSI), which includes financial schedules required by the U.S. Department of Housing and Urban Development, and statistical data summarizing selected financial, demographic, and operational trends.

The audit includes the following entities:
· Sacramento Housing and Redevelopment Agency
· Housing Authority of the City of Sacramento
· Housing Authority of the County of Sacramento
· Norwood Avenue Housing Corporation (NAHC)
· Sacramento Housing Authority Asset Repositioning Program, Inc. (SHARP) · Sacramento Housing Development Corporation
· Shasta Hotel Corporation
Policy Considerations: There are no policy implications as a result of this informational report.

Economic Impacts: None.

Environmental Considerations:

California Environmental Quality Act (CEQA): Pursuant to Cal. Code Regs., tit. 14., section 15378 subds. (b)(2) and (5), the recommended action is not considered a “project,” as it constitutes an administrative activity that will not result in direct or indirect physical changes to the environment.

Alternatively, if a determination is made that the action does constitute a project subject to CEQA, the recommended action is exempt pursuant to Cal. Code Regs., tit. 14, section 15061(b)(3), as it does not have the potential to have a significant effect on the environment.

National Environmental Policy Act (NEPA): Pursuant to 24 C.F.R. section 58.34(a)(1) and (3) (2025), the recommended action is considered an administrative and management activity exempt from NEPA review. With respect to the laws and authorities specified in section 58.6, the recommended action does not involve activity that would require compliance with:
· 24 C.F.R. section 51.300-305;
· 16 U.S.C. section 3501 (Coastal Barrier Resources Act); or · 42 U.S.C. sections 4001-4128, 5154(a) (Flood Disaster Protection Act and National Flood Insurance Reform Act).

Sustainability: Not applicable.

Commission/Committee Action: The Sacramento Housing and Redevelopment Commission received this report at its meeting on December 3, 2025.

Rationale for Recommendation: Receive and file only as an informational report.

Financial Considerations: Not applicable.

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File ID: 2026-00569 2/24/2026
Local Business Enterprise (LBE)/M/WBE & Section 3 Considerations: The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply.

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SACRAME

NTO HOUSING AND REDEVELOPMENT AGENCY

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2024

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2024

INTRODUCTORY SECTION
Letter of Transmittal 1
Directory of Officials and Executive Staff 10
Governing Bodies and Administration Organization Chart 12 Department/Division Organization Chart 13

FINANCIAL SECTION
Independent Auditors’ Report 15
Management’s Discussion and Analysis 20

BASIC FINANCIAL STATEMENTS
Statement of Net Position 28
Statement of Revenues, Expenses, and Changes in Net Position 29 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 30
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 31
Statement of Cash Flows 32

COMPONENT UNITS
Combining Statement of Net Position 34
Combining Statement of Activities 35
NOTES TO BASIC FINANCIAL STATEMENTS 36
REQUIRED SUPPLEMENTARY INFORMATION – UNAUDITED
Schedule of the Agency’s Changes in Net Pension Liability 75 Schedule of Agency Contributions – Pension 76
Schedule of the Agency’s Changes in Net OPEB Liability 77 Schedule of Agency Contributions – OPEB 78

SUPPLEMENTARY INFORMATION

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2024

FINANCIAL DATA SCHEDULES
Statement of Net Position – City 80
Statement of Revenue, Expenses, and Changes in Net Position – City 82 Statement of Net Position – County 84
Statement of Revenue, Expenses, and Changes in Net Position – County 85 STATISTICAL SECTION – UNAUDITED
Net Position by Component 89
Component Changes in Net Position 91
Ratios of Outstanding Debt by Type 95
Demographic and Economic Statistics 96
Principal Employers 98
Full-Time Equivalent Agency Employees by Function/Program 99 Operating Indicators by Function 101

INTRODUCTORY SECTION

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February 3, 2026

City Council, Housing Authority
of the City of Sacramento
Board of Supervisors, Housing Authority
of the County of Sacramento
Sacramento Housing and Redevelopment Commission
Sacramento Housing Development Corporation
Sacramento, California

State law requires that the Sacramento Housing and Redevelopment Agency (the Agency) publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) a pplied to governmental entities. The financial statements are to be audited by certified public accountants in accordance with auditing standards generally accepted in the United States and the standa rds applicable to financial audits contained in Government Auditing Standards, issued by the Comptr oller General of the United States. Pursuant to that requirement, we hereby issue this Annual Comprehensive Financial Report (ACFR) of the Agency for the year ended December 31, 2024.

Management assumes full responsibility for the co mpleteness and reliability of the information contained in this report. To provide a reasonab le basis for making these representations, Agency management has established a comprehensive intern al control framework that is designed both to protect the Agency’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Agency’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their bene fits, the Agency’s comp rehensive framework of internal controls has been designed to provide reas onable, rather than absolute, assurance that the financial statements will be free from material mi sstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The Agency’s financial statements have been aud ited by CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the indepe ndent audit was to provide reasonable assurance that the financial statements of the Agency as of and for the year ended December 31, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statem ents, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Agency’s financial statements as of and for the year ended December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report, which can be found on pages 14-17.

801 12
th Street
Sacramento, CA 95814
www.shra.org

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Management’s discussion and analysis (MD&A) im mediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic fi nancial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE AGENCY

The Agency is located in Sacramento, California. Th e City of Sacramento (C ity), established in 1849, serves as the capito l for the State of California and is the center of state government . Sacramento also serves as the seat of Sacramento County government . It is the seventh largest populated county in California and continues to see a migration of pe ople from the San Francisco Bay Area and Southern California. The California Depart ment of Finance estimates populat ion on January 1, 2024 at 520,407 for the City and 1,578,938 for the County of Sacram ento (County). Sacramento encompasses 99 square miles and is located in the northern section of Cali fornia’s burgeoning Central Valley. Sacramento is a charter city and operates under a Council-Manager form of government.

The Agency is a joint powers authority formally created in 1982, with operations beginning in 1973. The Agency’s purpose is to provide co mmon professional st affing to the City and County of Sacramento to administer and manage its housing authorities and the city and c ounty federal housing and community development entitlement funds. The Ag ency is a separate legal entity and is not a component unit of the City or County of Sacramento. The Agency receives no City or County general funds and is not included in the Annual Comprehensive Financial Report of either the City or County of Sacramento.

The members of the joint powers agency included the City and County of Sacramento, the Housing Authorities of the City and County of Sacramento and the Redevelopment Agencies of the City and County of Sacramento. On February 1, 2012, all Rede velopment Agencies in the State of California were eliminated and replaced with a Successor Agency responsible for the wind down of former redevelopment agency activ ities and obligations. On February 1, 2012, the legal and treasury functions related to the administration and management of the former redeve lopment activities and payment of debt for the former redevelopment agencies of the City and County of Sacramento were assumed within the City and County management structure. However, all housing assets and housing functions of the former redevelopment agencies we re assumed by the Housing Authority of the City and the Housing Authority of the County to be staffed, managed and administered by the Agency.

The Agency serves as the fiscal agent/administrator and provides the exclusive staffing for the Housing Authorities of the City and County of Sacramento . The Housing Authorities of the City and County were formed in July 1939 and June 1940, respectively. Additionally, since June of 1982 the Agency administers and manages the federal Community Development Block Grant Programs (CDBG) and Home Investment Partnership Progra ms (HOME) for the City and Coun ty of Sacramento. In 2012 with changes to federal regulations re lated to Homeless Continuum of Ca re funding, the Agency assumed administration of Housing Opportunities for Persons with AIDS (HOPWA), a federal grant program from the County of Sacramento. Also in 2012, the Agency assumed administ ration of the Emergency Solutions Grant (ESG) and Continuum of Care (S helter Plus Care) programs from the County of Sacramento.

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The governing board of the Agency is the Sacr amento Housing and Redevelopment Commission (Commission). The Commission’s authority to approve housing related projects, programs, and budgets is limited to what is delegated to them by the governing boards of the Agency members. The City Council serves as the City Housing Authority and the City Redevelopment Agency Successor Agency governing boards and retained the power to appr ove City housing related projects, programs, and budgets. The County Board of Supervisors serves as the County Housing Authority and the County Redevelopment Agency Successor Agency governing boards and retained power to approve County related housing agenda items. The Co mmission also serves in an advisory capacity for each Agency member and the Commission has oper ational authority within the budge t and policy direction approved by the City Council and County Board of Supervisors.

The Agency has defined its reporting entity in acco rdance with Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations Ar e Component Units, and GASB Statement No. 61, The Financial Reporting Entity: Omnibus , which provides guidance for determining which governmental activities, organizatio ns, and functions should be includ ed in its reporting entity. The component units discussed in the following paragra phs are included in the Agency's reporting entity because of the significance of their operational or financial relationships with the Agency. Blended component units, although le gally separate entities are, in substance, part of the government’s operations. The discretely presented component units are reported in a separate column in the government-wide financial statements (see note below for description) to emphasize that they are legally separate from the Agency. Complete financial statem ents of individual component units can be obtained from the Finance Department of the Agency.

Blended Component Unit

Foundation Uniting Needs and Dollars (FUND, Inc.) – A nonprofit corpora tion established to maintain or aid charitable activities serving the public . It is a component unit of the Agency because the purpose of this corporation is to promote and s upport the activities and programs of the Agency. The Board of Directors of FUND, Inc. is comprised of the members of the Commission. Acting in its capacity as the Board of Director s, the Commission approves the FUND, Inc. budget. The Executive Director of the Agency serves as the Executive Director of FUND, Inc.

Norwood Avenue Housing Corporation (NAHC) – A nonprofit public benefit corporation with a governing board comprised of three Agency staff a ppointed by the Executive Director of the Agency and two community represen tatives. It is a compone nt unit because through c ontractual arrangements, the Agency bears some responsibil ity for financial and operational ma tters of NAHC, as well as having the ability to impose its will on the NAHC.

Sacramento Housing Authority Asset Repositioning Program, Inc. – As a nonprofit public benefit corporation, the Sacramento Hous ing Authority Repositioning Program, Inc. (SHARP), was formed for the purpose of serving as the general partner of th e entity that owns, rehabilitates, and operates former public housing properties acquired through U.S. Department of Housing and Urban Development (HUD)’s assets demolition and disposition process. The purpose of SHARP is to allow the Housing Authority of the City of Sacramento and the Housin g Authority of the County of Sacramento to leverage private sector capital to make improvements to housing inventory removed from the federal Public Housing program through HUD’s asset disposition process. SHARP board members are appointed by the Agency’s Executive Director. Assets transfe rred to SHARP are rehabilitated thro ugh various financing structures including the use of limited partnerships that are able to benefit from the use of tax credit financing.

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Discretely Presented Component Units

Shasta Hotel Corporation (Corporation) - A nonprofit corporation wi th a governing board comprised of Agency staff and representative s of selected nonprofit housing and so cial service enti ties. It is a component unit because the general partner’s govern ing board members serve at the direction of the Executive Director of the Agency, and through contract ual arrangements, the Agen cy is responsible for financial and operational matters of the Partnership. The Corporation is the General Partner of the following limited partnership:

Shasta Hotel Housing Associates, LP – A California limited partnership created for the purpose of acquisition, construction, rehabilita tion, ownership, maintenance, a nd operation of an historic 80 unit low income rental housing project in Sacramen to, California. The Partnership is comprised of the following three entities: (1) Shasta Hotel Housing Associates LLC, as managing general partner (2) JSCO Shasta Hotel LLC, as administrative general partner and (3) Wincopin Circle limited liability limited partnership.

Twin Rivers Phase 3, LP – A California limited partnership that wa s formed to construct, own hold for investment, manage, lease and operate an 84-unit mixed-income rental housing development for low- income families located in Sacr amento, California and operating unde r the name of Mirasol Village Block C(the Project). Since the Agen cy (1) holds majority interest of the Partnership but (2) does not have a financial benefit or burden (3) the Partnerships debts will not be paid by the Agency and (4) the Partnership does not entirely or excl usively provide services to the Ag ency, nor entirely benefitting the Agency, the Partnership is considered to be a component unit of the Agency.

Budget

The annual budget of the Agency, consisting of th e operating and project budgets, is adopted on a calendar year basis. Prior to th e end of the calendar year, the Ex ecutive Director submits a proposed operating budget to the governing bodies for review and approval. The budget is legally enacted through passage of resolutions prior to January 1 of each y ear. The budget adoption resolution specifies that the legal level of budgetary control is at the fund level. Budgeted expenditures repr esent original appropriations adjusted by supplemental budgetary appropriation amendments.

The Agency prepares its operating budgets using acc ounting methods that match the type of program being funded. For programs supported by federal or state grants, lo cal taxes, or special revenues, budgets are prepared to match the lif e of each project, which may la st several years. For long-term development and capital projects, budgets are adopted for the full le ngth of the project to ensure resources are available from start to finish. As th e Agency has transitioned to operating more like a business, annual budgets are also prep ared for enterprise-typ e activities, internal services, and certain component units. While not legally re quired, this practice strengthens accountability, transparency, and financial oversight across all Agency operations.

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FACTORS AFFECTING ECONOMIC CONDITION

The information presented in the financial statements is perhaps best underst ood when it is considered from the broader perspective of the specific environment within which the Agency operates.

Local Economy

Sacramento’s economy remains resilient, but pers istent challenges in hous ing affordability and employment continue to affect the region’s most vul nerable residents. In 2024, the average rent across Sacramento County was approximate ly $1,712 per month, with t ypical one-bedroom apartments averaging $1,650 and larger units nearing $1,995. Year-over-year rent growth of 4–5% outpaced both inflation and wage growth, making it increasingly difficult for low-income households to keep up.

Today, more than 83% of extremel y low-income renters spend over half their inco me on housing, a rate that signals severe housing cost burden across the county.

While Sacramento has benefited from steady employ ment in government, healthcare, and education sectors, the local une mployment rate in 2024 averaged 4.8%, slightly above the statewide average. Job losses in retail, hospitality, and service industries, where wages are typically lower, hit renters the hardest, particularly those already struggling to afford rapidly rising housing costs. For many households, even short periods of unemployment or underemployment can trigger housing instability.

These economic conditions directly impact SHRA’s programs. Federal and state resources, such as Housing Choice Vouchers, often lag behind actual mark et rents, limiting the number of available units families can access. Meanwhile, higher construction a nd rehabilitation costs driven by inflation and labor shortages reduce the efficiency of local affordable housing inve stments. Together, these pressures highlight the need for ongoing innovation, strong public-private partnerships, and a continued commitment to preserving and expanding affordable housing across Sacramento’s neighborhoods.

Long-Term Financial Planning

The Agency adopted conservative fiscal strategies during prior years in anti cipation of a progressive decline in resources. Although the economy appears to be stabilizing on a national and local level, the Agency continues to actively seek out ways to c ontinue to improve work processes and implement initiatives that streamline and cons olidate services and functions to remain as cost effective and as efficient an organization as possible.

Some of the guiding principles of the Agency's long-term planning budget include:

 Protecting “core services” to th e greatest extent possible, with delivery of housing programs, public services and capital projects being a major priority;  Managing program activities by fo cusing on the efficiency of program delivery and the maximization of results;
 Consideration of the long-term financial sustainability;  Using partnerships with community based organizations and privat e entities whenever practical; and
 Developing budget plans that deal with the immediate needs of the Agency and employ strategies that address the long-term needs of the communities we serve.

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Relevant Financial Policies

The Agency is committed to increasing the supply of affordable housing and in past years has worked closely with the City and County in the development of inclusionary ordinances, a ten year plan to end chronic homelessness, and other policies to in crease rental housing produc tion and homeownership opportunities. SHRA has developed a multi-faceted Homeless Housing Solution Strategy designed to serve homeless individuals and families in Sacram ento using Housing Authority resources. This strategy, to be enacted over a thr ee year period, includes se veral options that will serve a total of 1,755 homeless families through vouchers. As a lender and developer, the Agency strives to efficiently manage its resources in order to address the range of needs and reach special populations, the workforce population, and those who are moving out of the rental market to buy their first homes.

2024 Accomplishments

The Agency continues to employ strategies to addre ss affordable housing needs, though not at the same volume as in the pre-redevelopment era. While federal and local fundi ng remains a constant challenge, SHRA has been remarkably successful in securi ng competitive grants and developing public-private- nonprofit partnerships that provide significant leveragi ng ability and assist in accomplishing our goal to improve housing and communities. As such, our perfor mance continues to be regarded as a model for best practices in affordable housing preservation and production.

Some highlights of the Agency’s accomplishments during 2024 include the following:

 Agency administered over $190 million in Housing Choice Voucher federal funding, providing housing stability for more than 12,000 households. This achievement was made possible through strong partnerships with over 3,000 landlords, whos e collaboration ensures that families, seniors, and individuals across our community have safe, affordable places to call home. By combining federal resources with local partnerships, the Agency con tinues to strengthen neighborhoods, support economic vitality, and expand access to opportunity, ensuring critical housing support reached the community and advancing the agency ’s mission of providing safe, affordable housing.

 SHRA celebrated the opening of Mutual Housing on the Boulevard, a transformative affordable housing community along the Stockt on Boulevard transit corridor in South Sacramento. This $7 million investment by SHRA, leveraging loan commitments and tax-exempt revenue bonds, delivered 127 new apartments for extremely lo w-income families, expanding access to safe, stable housing in a high-need neighborhood. Th rough 67 Project-Based Vouchers, including 50 units dedicated to families experiencing homel essness under the No Place Like Home program, the development provides not just housing, but a pathway to stability and opportunity. By joining forces with state and local partners, SHRA advanced a model of public-private collaboration that strengthens communities, revitalizes neighborhoods, and ensure s that some of Sacramento’s most vulnerable residents have a place to call home.

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 In October, SHRA marked the completion of the RVP Group LP Senior-Preferred Development, a milestone in expanding housing opportunities fo r Sacramento’s aging population. This $80+ million investment (leveragi ng 4% Low-Income Housing Tax Credits and SHRA financing tools) delivered 183 high-quality, affordable units across three scattered sites, including a landmark 16-story high-rise that adds vibrancy and density to the urban core. Designed with seniors in mind, the development integrates s upportive resident services to promote health, independence, and community connection. By a ligning local resources with federal tax credit equity, SHRA and its partners not only created safe and affordable homes but also generated substantial economic impact, st imulating jobs during construc tion and ensuring long-term housing stability for hundreds of Sacramento’s most vulnerable seniors.

 SHRA dramatically expanded access to housing, completing more than 1,400 new homes across Sacramento, including 303 permanent supportive housing units for individuals and families overcoming homelessness, and 1,102 affordable un its for working families, seniors, and those struggling with rising rents. By surpassing annual housing production goals many times over, and by prioritizing efficient unit design in the do wntown core, SHRA turned local and federal resources into real homes that provide safety, stability, and opportunity for thousands of residents.

 SHRA advanced affordable housing production by committing approximately $15.2 million in Multifamily Loan assistance to four developm ents: South Area Homekey (Elise), San Juan II, Auburn Oaks, and Shilo Arms. These investment s will deliver long-ter m affordability and stability for low-income households, while levera ging state and federal resources to maximize impact. By strategically deploying loan funds, SHRA strengthened public-private partnerships, supported the creation and preservation of afford able homes, and reinfo rced its mission to expand housing opportunities for Sacramento’s most vulnerable residents.

INITIATIVES

Sacramento Housing and Redevelopment Agency ha s several major projects and initiatives underway that will shape Sacramento’s housing landscape in 2025 and beyond. The redevelopment of Mirasol Village remains a signature effort, transforming the former Twin Rivers public housing site into a vibrant mixed-income community with approximately 427 new homes, including one-for-one replacement of all 218 original public housing units. With an estimated investment of over $300 million, this redevelopment is financed through a combination of Low-Income Housing Tax Credits (LIHTC), federal Choice Neighborhoods Initiative funds, state and local housing grants, and SHRA-issued tax-exempt bonds and loans. The final residential phase of Mirasol Village is scheduled for completion in 2026.

In addition, Sacramento Housing and Redevelopmen t Agency is advancing the City-County Affordable Housing Plan, which sets annual production goal s of 300 new permanent supportive housing units and 100 additional affordable units. As of mid-2025, more than 649 pe rmanent supportive housing units and over 1,000 affordable units are in the development or construction pipeline. These projects are supported by diverse funding streams, including the federal HOME Investment Partners hips Program, Project- Based Vouchers, the State’s No Place Like Home Program, Permanent Local Housing Allocation (PLHA) funds, and local Housing Trus t Fund resources. To ensure that future projects are financially feasible, Sacramento Housing and Redevelopment Agen cy and its partners have also adopted zoning code amendments that reduce barr iers to permanent supportive housi ng development, along with new impact fee waiver and deferral programs that lo wer upfront development costs. Collectively, these investments and policy tools expa nd Sacramento’s affordable housin g supply, preserve long-term affordability, and advance Sacramento Housing and Redevelopment’s mission to serve extremely low-, very low-, and low-income residents throughout the community.

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ACKNOWLEDGEMENTS

The preparation of this Annual Co mprehensive Financial Report would not have been possible without the exceptional commitment of the Finance Department staff. Their professionalism, attention to detail, and pursuit of excellence are reflecte d on every page of this report, a nd we extend our deepest gratitude for their service. We also wish to recognize and sincerely thank the Agency’s Commission, the City Council, and the County Board of Supervisors for their steadfast support an d shared vision. Their leadership and partnership are vital to ensuring th e Agency’s financial streng th and to advancing our mission of meeting the housing, redevelopment, and economic needs of the communities we serve.

Respectfully submitted,

LA SHELLE DOZIER
Executive Director

JAMES SHIELDS
Deputy Director of Administration

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SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

SACRAMENTO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

For the Year Ended December 31, 2024

ACKNOWLEDGEMENT

Prepared by the Sacramento Housing and Redevelopment Agency Finance Department

James Shields, Deputy Director of Administration
Kay Worthington, Finance Manager
Rupi Tamana, Finance Manager
Vijay Kumar, Accountant
Karen Pimentel, Accountant
Brian Garcia, Accountant
Helen Huang, Accountant
April Ling, Finance Specialist
Barbara Reisinger, Accounting Technician

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SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

DIRECTORY OF OFFICIALS
December 31, 2024

COUNTY HOUSING AUTHORITY

Phil Serna Rich Desmond District 1 District 3 Patrick Kennedy Rosario Rodriguez District 2 District 4 Patrick Hume – District 5

CITY HOUSING AUTHORITY
Kevin McCarty
Mayor

Lisa Kaplan Caity Maple District 1 District 5 Roger Dickinson Eric Guerra District 2 District 6

Karina Talamantes Rick Jennings, II District 3 District 7

Phil Pluckebaum Mai Vang

District 4 District 8

HOUSING AND REDEVELOPMENT COMMISSION

Stephanie Duncan Chris Janzen
Sam Starks Martin Ross Andrés Ramos Alicia Jefferson Darrel Woo Cecile Nunley Darlene Nordstrom Lisa Felder

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SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

EXECUTIVE STAFF

Executive Director (Appointed) ............................................................. .La Shelle Dozier Director of Finance………… ……………………………..……………..Irene de Jong Deputy Executive Director of Administration .......................................... James Shields Deputy Executive Director of Development .......................................... Kecia Boulware General Counsel….... ...................................................................................... Brad Nakano Director of Housing… ..................................................................................... Wilma Wilson Director of Homeless Innovation .............................................................. Sarah O’Daniel Interim Director of Housing Choice Vouchers .................................... MaryLiz Paulson Assistant Director….. ................................................................................ Victoria Johnson Assistant Director….. ............................................................................. Christine Weichert Public Information Officer .............................................................................. Angela Jones

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FINANCIAL SECTION

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INDEPENDENT AUDITORS’ REPORT

Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the business-type activities and the aggregate discretely presented component units of the Sacramento Housing and Redevelopment Agency (Agency) as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.

In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of the Agency, as of December 31, 2024, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the financial statements of Norwood Avenue Housing Corporation and Affiliated Entities (Corporation), which is a blended component unit and represents 4% of the assets and deferred outflows, 1% of net position, 2% of the revenues of the business-type activities of the Agency as of December 31, 2024. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Corporation, is based solely on the report of the other auditors.

We did not audit the financial statements of Twin Rivers Phase 3, LP (Partnership) which is a discretely presented component unit and represents 98% of the assets, 178% of net deficit, 99% of the revenues of the aggregate discretely presented component unit s as of December 31, 2024. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Partnership, is based solely on the report of the other auditors.

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Basis for Opinions
We conduct
ed our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards appli cable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 5 to the financial statements, the Authority restated beginning balances due to a change in reporting entity and correct errors related to the sale of capital assets in the prior year. Our opinions are not modified with respect to these matters.

As discussed in Note 6 to the financial statements, the 2024 financial statements have been restated to correct the omission of a discretely presented component unit not being reported. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and f air presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal c ontrol relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

Honorable Members of the Sacramento City Council,
Housing Authority of the City of Sacramento, County Board of Supervisors, Housing Authority of the County of Sacramento
and Sacramento Housing and Redevelopment Commission
Sacramento Housing and Redevelopment Agency
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In performing an audit in accordance with GAAS
and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement of the financial stat ements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Sacramento Housing and Redevelopment Agency’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial do
ubt about Sacramento Housing and Redevelopment Agency’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those cha
rged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the U nited States of America require that the Management’s Discussion and Analysis, Schedule of the Agency’s Changes in Net Pension Liability, Schedule of Agency’s Contributions – Pension, Schedule of the Agency’s Changes in Net OPEB Liability and the Schedule of Agency C ontributions - OPEB as listed in the table of contents, be presented to supplement the basic financial statement s. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS by us and other auditors. In our opinion, the Combining Fund Statements and the financial data schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated February 3, 2026, on our consideration of the Sacramento Housing and Redevelopment Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sacramento Housing and Redevelopment Agency’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering County’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Roseville, California
February 3, 2026
Honorable Members of the Sacramento City Council,
Housing Authority of the City of Sacramento, County Board of Supervisors, Housing Authority of the County of Sacramento
and Sacramento Housing and Redevelopment Commission
Sacramento Housing and Redevelopment Agency

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MANAGEMENT’S DISCUSSION AND ANALYSIS

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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This portion of the Sacramento Housing and Redevelopment Agency’s (Agency) annual financial report presents a narrative overview and analysis of the Agency’s financial activities for the year ended December 31, 2024. Please read this in conjunction with the transmittal letter at the beginning of this report and the Agency’s financial statements following this section. All dollar amounts are expressed in thousands unless otherwise indicated.

FINANCIAL HIGHLIGHTS

The assets and deferred outflows of resources of the Agency exceeded liabilities and deferred inflows of resources at the end of the 2024 year by $773,324 (net position). A more detailed explanation of the major categories of the Agency’s net position is discussed below:

 $147,269 is the Agency’s net investment in capital assets.

 $5,989 is restricted for specific purposes (restricted net position).

 The unrestricted net position of $620,066 is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted components of net position.

 The change in classification from restricted to unrestricted net position in FY 2024 is due to the change in financial reporting and only classifying restricted cash/investments as restricted net position.

The Agency’s net position increased in the current year by $75,451 primarily as a result of stronger cost control measures that demonstrate sound fiscal discipline and conservative spending practices.

OVERVIEW OF FINANCIAL STATEMENTS

This management discussion and analysis is intended to serve as an introduction to the Agency’s basic financial statements. The Agency’s basic financial stat ements are comprised of two components: 1) the financial statements and 2) notes to the basic financial statements. This report also contains required and other supplementary information in addition to the basic financial statements themselves.

The financial statements included in this report are:

The statement of net position presents information on all Agency assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position .

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating.

The statement of revenues, expenses, and changes in net position presents information showing how net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., grant revenue, accounts payable and earned but unused vacation leave).

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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OVERVIEW OF FINANCIAL STATEMENTS (CONTINUED)

The statement of cash flows presents the net cash provided by or used by operating activities, investing and capital and related financing activities.

Component units included as a separate column in the Agency’s basic financial statements consist of legally separate entities whose inclusion is necessary for the fair presentation in accordance with generally accepted accounting principles. Included within this grouping are: Sacramento Housing Development Corporation and Shasta Hotel Corporation.

Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the financial statements.

ANALYSIS OF AGENCY WIDE STATEMENT OF NET POSITION

The schedule below shows comparative statement of net position data from FY 2024 and FY 2023:

2024 2023 $ Change % Change
ASSETS
Current and Other Assets 764,610 $ 707,225 $ 57,385 $ 8.11% Capital Assets 177,971 177,985 (14) -0.01% Total Assets 942,581 885,210 57,371 6.48% DEFERRED OUTFLOWS OF RESOURCES 8,300 16,627 (8,327) -50.08%

LIABILITIES
Long-Term Liabilities 124,750 137,163 (12,413) -9.05% Other Liabilities 50,970 66,514 (15,544) -23.37% Total Liabilities 175,720 203,677 (27,957) -13.73% DEFERRED INFLOWS OF RESOURCES 1,837 287 1,550 540.07%

NE T POSITION
Net Investment in Capital Assets 147,269 146,344 925 0.63% Restricted 5,989 488,621 (482,632) -98.77% Unrestricted 620,066 62,908 557,158 885.67% Total Net Position 773,324 $ 697,873 $ 75,451 10.81%

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Agency, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $773,324 at the close of the most recent fiscal year. Combined net position increased by 10.8% from 2023.

Current and other assets of Agency had a net increase of $57,371 from 2023.

Deferred outflows of resources had a net decrease of $8,327 which relates to GASB 68 and 75.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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ANALYSIS OF AGENCY WIDE STATEMENT OF NET POSITION (CONTINUED)

Long-term liabilities and other liabilities had a net decrease of $27,957.

Deferred inflows of resources had a net increase of $1,550 from the prior year due to GASB 68 and 75.

ANALYSIS OF AGENCY WIDE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET

POSITION

Total revenues of the Agency increased by $14,953 from the prior year, and total expenses decreased nearly $31,829 from the prior year. These fluctuations are discussed in more detail on the following pages.

2024 2023 $ Change % Change

OPERATING REVENUES
Federal, State and Local Grants 360,879 $ 332,746 $ 28,133 $ 8.45% Charges for Services 24,745 33,099 (8,354) -25.24% Rental Income Subsidy 3,169 2,804 365 13.02% Miscellaneous 24,201 29,391 (5,190) -17.66% Total Revenues 412,994 398,041 14,953 3.76%

OPERAT ING EXPENSES
Employee Services 41,247 29,454 11,793 40.04% Administrative Services 2,124 18,823 (16,699) -88.72% Services and Supplies 71,982 120,464 (48,482) -40.25% Utilities 6,760 5,560 1,200 21.59% Claims and Judgments 72 77 (5) -6.42% Depreciation 6,985 7,057 (72) -1.03% Housing Assistance Payments 219,402 198,966 20,436 10.27% Total Expenses 348,572 380,401 (31,829) -8.37% OPERATING GAIN (LOSS) 64,422 17,640 46,782 265.21%

NONOPERATING REV ENUES (EXPENSES)
Investment Earnings 12,301 12,022 279 2.32% Gain on Sale of Capital Assets - 20,460 (20,460) -100.00% Interest Expense (637) (1,635) 998 -61.04% Total Nonoperating
Revenues (Expenses) 11,664 30,847 (19,183) -62.19%

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS 76,086 48,487 27,599 56.92% Capital Contributions(Distributions) (635) - (635) -100% CHANGE IN NET POSITION 75,451 48,487 26,964 55.61% Net Position, Beginning Balance, As Restated 697,873 649,386 48,487 7.47% NET POSITION - END OF YEAR, AS RESTATED 773,324$ 697,873 $ 75,451 $ 10.81%

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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ANALYSIS OF AGENCY WIDE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET

POSITION (CONTINUED)

Total revenues for the Agency showed an increase of approximately 4% from the prior year. Total expenses decreased by 8%, a slower rate than total revenues. These fluctuations are discussed in more detail below.

Revenue

 Federal, State and Local grants increased by $28,133 due to increase in Housing Choice Voucher program funding.

 Charges for Services decreased by $8,342 due to the expiration of COVID-related funding, which had temporarily contributed to additional revenues,

 Miscellaneous revenue decrease by $5,190 due to procedural changes that reclassified items into more appropriate revenue categories.

Expenses

 Employee services increased by $11,793 due to cost-of-living adjustments (COLA) and higher pension costs.

 Administrative services decreased by $16,699 due to the expiration of COVID-related funding and the reduced need for associated administrative support

 Services and supplies decreased by $48,482 due to the expiration of COVID-related funding and reduced program needs.

 Housing assistance payments increased due to increased lease ups and increased contract rents.

 Gain on sale of capital assets decrease due to no sale of capital assets during FY 2024.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. The Agency’s investment in capital assets as of December 31, 2024, amounted to $177,971. This investment in capital assets includes land, building and improvements, property and equipment, and construction in progress.

Capital assets for the Agency are presented below.

2024 2023 $ Change % Change
Land 34,351 $ 34,351 $ - $ 0.00% Building and Improvements 128,290 134,144 (5,854) -4.36% Property and Equipment 1,493 1,568 (75) -4.78% Construction in Progress 13,837 7,922 5,915 74.67% Total 177,971 $ 177,985 $ (14) $ -0.01%

The items below contributed to the decrease in investment in capital assets for the Agency by $14:

 The decrease in buildings and improvements and in property and equipment was due to recording of depreciation for the Agency’s capital assets.

 Construction in progress increased in the City and County AMP funds.

Long-term Debt. At the end of December 31, 2024, the Agency had long-term debt outstanding of $60,957. This is a net decrease of $1,457 from the prior year.

2024 2023 $ Change % Change
Notes Payable 60,957 $ 62,414 $ (1,457) $ -2.33%

Decreases are attributable to annual principal payments.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The Agency has both Housing Authority and Hous ing Successor Agency functions. As such, its revenues and expenditures are dependent on external factors such as the availability of federal funding.

BUDGET SUMMARY

The 2025 Budget recommends total expenses of $327.1 million and is comprised of the Housing Assistance Payments (HAP) Budget of $199.9 million; Operating Budget of $57 .1 million; the Capital Projects Budget of $61.1 million; the Public Services Budget of $5.8 million; and the Debt Service and Financial Transactions Budget of $3.2 million.

The 2025 Budget represents a $1.4 million, less than 1% percent increase in net appropriations compared with the prior year, which is a modest increase, driven primarily by growth in Housing Assistance Payments, offset by reductions in Operating, Capital, and Public Services budgets.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET (CONTINUED)

BUDGET SUMMARY (CONTINUED)

The Agency's funding sources are independent of the City or County’s General Fund. In addition, over eighty percent of the Agency's funding originates from federal appropriations allocated to the Department of Housing and Urban Development (HUD). Given this structure, the Agency has continued to adopt a fiscally conservative approach when developing the 2025 funding outlook.

Consistent with prior years, the 2025 Budget reflects the Agency’s Mission, Vision, and Goals by:
 Continuing to maximize leasing of vouchers in the HCV program.  Continuing to pursue new funding opportunities to decrease reliance on traditional  funding sources for the creation and preservation of affordable housing.  Continuing to focus on the rehabilitation and repositioning of former Public Housing properties.

Some of the guiding principles used to develop the Agency’s budget include:
 Protecting “core services” to the greatest extent possible, with delivery of housing programs, public services and capital projects being a major priority;  Managing program activities by focusing on the efficiency of program delivery and the maximization of results;
 Consideration of the long term financial sustainability;  Fostering partnerships with community based organizations and private entities whenever practical; and
 Developing budget plans that deal with the immediate needs of the Agency and employ strategies to address the long-term needs of the communities we serve.

The Agency continues to face structural challenges that impact long-term sustainability. Such challenges include:
 Aging Housing Inventory – The public housing portfolio continues to face significant modernization and capital needs. However, federal Capital Fund appropriations remain insufficient to meet these demands.

 Transition to NSPIRE Standards – The implementation of HUD’s NSPIRE inspection, requires additional staff training, system updates, and quality assurance efforts to maintain compliance.

 Limited Federal Funding Growth – While housing demand continues to rise, federal appropriations are not expected to keep pace, creating pressure on both rental assistance programs and capital investments.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2024
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET (CONTINUED)

BUDGET SUMMARY (CONTINUED)

 Need for Diversified Funding – The Agency must expand efforts to leverage private investment, Housing Tax Credits, and the Rental A ssistance Demonstration (RAD) program to modernize units and preserve long-term affordability.

 Rising Construction and Operating Costs – Inflationary pressures in labor, materials, and utilities increase the cost of developing, maintaining, and operating affordable housing.

Despite these challenges, the Agency remains optimistic about its ability to deliver award-winning affordable housing and invest in community revitalization. Through strategic partnerships and innovative financing strategies, the Agency will continue to enhance Sacramento’s quality of life by expanding access to safe, affordable housing opportunities.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the Agency’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Deputy Director of Finance and Administration, Sacramento Housing and Redevelopment Agency, 801 12 th Street, Sacramento,
California, 95814.

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BASIC FINANCIAL STATEMENTS

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF NET POSITION
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
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Business-Type Component
Activ ities Units
ASSETS
Cash and Investments 132,938 $ 151 $
Receivables, Net 56,008 145
Prepaid Items 2,076 9
Restricted Cash and Inv estments 9,997 -
Other Long-Term Assets 124 -
Interest Receivable 6,221 -
Notes Receivable, Net 557,246 -
Advances to Primary Government - 1,000 Capital Assets:

Land and Construction in Progress 48,188 2,654 Depreciable Buildings and Improvements,
and Property and Equipment, Net 129,783 42,258 Total Assets 942,581 46,218

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - Pension 5,346 -
Deferred Outflows - OPEB 2,954 -
Total Deferred Outflows of Resources 8,300 -

LIABILITIES
Accounts Payable and Accrued Liabilities 13,237 176 Interest Payable 6,175 555
Unearned Revenue 26,523 3
Deposit and Trust Liability 4,035 18
Due to Primary Government - 3
Advances from Component Unit 1,000 -
Long-Term Liabilities:

Due Within One Year 3,139 -
Due In More Than One Year: 61,334 46,334
Developer Fees Payable - 550
Net Pension Liability 55,764 -
Net OPEB Liability 4,513 -
Total Liabilities 175,720 47,640

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB 1,837 -
Total Deferred Inflows of Resources 1,837 -

NET POSITION
Net Investment in Capital Assets 147,269 -
Restricted:

Debt Service 1,592 -
Housing Operations 3,409
Housing Choice Vouchers 238 -
Community Development 750 -
Unrestricted 620,066 (1,422)
Total Net Position 773,324 $ (1,422) $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
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Operating Capital Grants Net Revenue (Expense) - Primary Government Charges for Grants and and Governmental Business-Type Component Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Units Primary Government:

GOVERNMENTAL ACTIVITIES
Governmental Activities - $ - $ - $ - $ - $ - $ - $ - $

BUSINESS-TYPE ACTIVITIES
Local Housing 42,261 23,259 5,048 - - (1 3,954) (1 3,954) - Public Housing 26,869 5,231 9,524 - - (1 2,1 1 4) (1 2,1 1 4) - Housing Choice Vouchers 232,335 636 224,788 - - (6,91 1 ) (6,91 1 ) - Housing Operations 23,1 51 22,576 42,1 22 5,009 - 46,556 46,556 - Community Development 38,939 44 50,641 - - 1 1 ,746 1 1 ,746 - Community Social Services 1 1 ,1 04 1 ,695 23,493 - - 1 4,084 1 4,084 - Interest Expense 637 - - - - (637) (637) - Total Business-Type Activities 375,296 53,441 355,61 6 5,009 - 38,770 38,770 - Total Primary Government 375,296 $ 53,441 $ 355,61 6$ 5,009 $ - $ 38,770$ 38,770 $ - $

COMPONENT UNIT
Local Housing 2,884 $ 360 $ - $ - $ - $ - $ - $ (2,524)$

GENERAL REVENUES
Investment Earnings/Losses - $ 1 2,303$ 1 2,303 $ 4 $ M iscellaneous - 24,378 24,378 - Payment to Primary Government - - - (1 1 5) Total General Revenues and Transfers - 36,681 36,681 (1 1 1 ) CHANGE IN NET POSITION - 75,451 75,451 (2,635) Net Position, Beginning of Year, as Previously Presented 440,223 257,650 697,873 1 ,276 Change Within Financial Reporting Entity, See Note 1 (440,223) 440,223 - - Error Correction - - - (63) Net Position, Beginning of Year, Restated - 697,873 697,873 1 ,21 3 NET POSITION - END OF YEAR, AS RESTATED -$ 773,324$ 773,324 $ (1 ,422) $ Program Revenues

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
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City County Mental Nonmajor Total
City County Housing Housing Health Governmental Governmental HOME HOME Successor Successor Services Funds Funds

REV ENUES
Revenues - $ - $ - $ - $ - $ - $ - $

EXPENDITURES
Expenditures - - - - - - -

EXCESS OF REV ENUES OV ER EXPENDIT URES - - - - - - - Fund Balances - Beginning of Year 2,175 8,840 69,662 17,735 (5,479) 175,752 268,685 Change Within Financial Reporting Entity, See Note 1 (2,175) (8,840) (69,662) (17,735) 5,479 (175,752) (268,685) FUND BALANCES - END OF YEAR -$ - $ - $ - $ - $ - $ - $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
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Count y Housing Sacrament o Norwood Government al
Choice, M ainstream Housing Authority Avenue Housing City Nonmajor Activities and Emergency A sset Reposit ioning Corporat ion and A f f ordable Ent erprise B usiness-Type Int ernal H ousing Vouchers Repositioning Program, Inc. Affiliated Entities Housing Funds Activities Total Service Funds

OPERATING REVENUES
Federal, St at e and Local Grant s - $ - $ - $ - $ - $ - $ 360,879$ 360,879 Charges for Services - - - - - - 24,745 24,74 5 - Rental Income Subsidy - - - - - - 3,1 69 3,1 69 - M iscellaneous - - - - - - 24,201 24,201 - Tot al Operat ing Revenues - - - - - - 41 2,994 41 2,994 -

OPERATING EXPENSES
Employee Services - - - - - - 41 ,24 7 41 ,24 7 - Administrative Services - - - - - - 2,1 24 2,1 24 - Services and Supplies - - - - - - 71 ,982 71 ,982 - Utilities - - - - - - 6,760 6,760 - Claim s and Judgm ents - - - - - - 72 72 - Depreciation - - - - - - 6,98 5 6,98 5 - Housing Assistance Payments - - - - - - 21 9,402 21 9,402 - Tot al Operat ing Expenses - - - - - - 348,572 348,572 - OPERATING INCOM E (LOSS) - - - - - - 64,422 64,422 -

NONOPERATING REVENUES (EXPENSES)
Invest ment Earnings - - - - - - 1 2,301 1 2,301 - Interest Expense - - - - - - (637) (637) - Total Nonoperating
Revenues (Expenses) - - - - - - 1 1 ,664 1 1 ,664 -

INCOM E (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS - - - - - - 76,086 76,086 - Capital Contributions(Distributions) (635) (635) Transfers In - - - - - - 1 6,1 74 1 6,1 74 - Transfers Out - - - - - - (1 6,1 74) (1 6,1 74) - CHANGE IN NET POSITION - - - - - - 75,451 75,451 - Net Posit ion, B eginning of Y ear, as Previously Present ed (10,013) 52,41 7 1 3,1 70 3,83 7 59,662 1 37,082 - 256,1 5 5 (1 ,1 31 ) Change Within Financial Reporting Entity, See Note 5
M ovement of Cont inuing Operat ions wit hin Ent erprise Funds 10 , 0 13 (52,41 7) (1 3,1 70) (3,837) (59,662) (1 37,082) 256,1 55 1 ,1 31 1 ,1 31 Change Within Financial Reporting Entity, See Note 5
M ovement of Cont inuing Operat ions f rom
Government al Funds - - - - - - 268,685 268,685 - Change Within Financial Reporting Entity, See Note 5
M ovement of Cont inuing Operat ion f rom Government al Activitie s - - - - - - 1 73,033 1 73,033 - Ne t P osition , Be gin n in g of Ye a r, Re sta te d - - - - - - 697,873 697,873 - NET POSITION - END OF YEAR -$ - $ - $ - $ - $ - $ 773,324$ 773,324 $ - $ Business-Type Activities - Enterprise Funds

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
(32)

Business-Type
Activ ities

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Charges for Services and Miscellaneous 49,266 $ Cash Received from Federal, State and Local Grants 317,486 Cash Receiv ed from Rental Income Subsidy 3,169
Cash Paid to Employees for Services (34,608)
Cash Paid to Suppliers for Goods and Services (85,673)
Cash Paid for Administrative Expense (2,124)
Cash Paid for Housing Assistance Payment (219,398)
Cash Paid for Claims and Judgment (72)
Net Cash Provided by Operating Activities 28,046

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets (6,969)
Capital Contributions (635)
Principal Payments on Notes Payable (3,052)
Proceeds from Debt 1,595
Interest Paid (638)
Net Cash Used by Capital and Related Financing Activities (9,699)

CASH FLOWS FROM INVESTING ACTIVITIES
Payments on Notes Receivables 1,978
Issuance of Notes Receiv ables (75,661)
Interest Receiv ed 12,271
Net Cash Used by Investing Activities (61,412)
CHANGE IN CASH AND CASH EQUIVALENTS (43,065)
Cash and Cash Equivalents - Beginning of Year, As Previously Reported - Change Within the Financial Reporting Entity 186,000
CASH AND CASH EQUIVALENTS - END OF YEAR 142,935$

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and Investments 132,938$
Restricted Cash and Investments 9,997
Total 142,935$

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
(33)

Business-Type
Activ ities

RECONCILIATION OF OPERATING INCOME TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income 64,422$
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities:

Depreciation and Amortization 6,985
Change in Assets and Liabilities:

Accounts Receiv able (26,082)
Due from Other Funds (43,418)
Prepaid Items (648)
Accounts Payable (4,471)
Accrued Liabilities 3,608
Accrued Interest 6,041
Due to Other Funds 36,890
Unearned Revenue (17,311)
Deposit and Trust Liability 320
Compensated Absences (99)
Pollution Remediation (1,195)
Net Pension Liability (3,641)
Net Pension Liability and Related Deferred Outflows 7,322 Net OPEB Liability (3,235)
Net OPEB Liability and Related Deferred Inflows 1,548
Net OPEB Liability and Related Deferred Outflows 1,010
Total Adjustments (36,376)
Net Cash Provided by Operating Activities 28,046 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMBINING STATEMENT OF NET POSITION

COMPONENT UNITS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
(34)

Sacramento
Housing Shasta Total
Development Hotel Twin Rivers Component
Corporation Corporation Phase 3, LP Units
ASSETS
Cash and Investments - $ 107 $ 44 $ 151 $ Receivables, Net 145 145
Advances to Primary Government 1,000 - - 1,000 Prepaid Expenses 9 9
Capital Assets:

Land - - 2,654 2,654 Depreciable Buildings and Improvements, and
Property and Equipment, Net - - 42,258 42,258 Total Assets 1,000 107 45,111 46,218

LIABILITIES
Accounts Payable and Accrued Liabilities - - 176 176 Unearned Revenue - - 3 3 Deposit and Trust Liability - - 18 18 Due to Primary Government 3 - 3 Interest Payable - - 555 555 Long-Term Liabilities:

Due within One Year - - - - Due in More than One Year - - 46,334 46,334 Developer Fees Payable - - 550 550 Total Liabilities 3 - 47,637 47,640

NET POSITION
Unrestricted 997 107 (2,526) (1,422) Total Net Position (Deficit) 997 $ 107 $ (2,526) $ (1,422) $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMBINING STATEMENT OF ACTIVITIES

COMPONENT UNITS
YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

See accompanying Notes to Basic Financial Statements.
(35)

Net (E xpense) Revenue - P rim ary Governm ent
Sacramento
Operating Capital Housing Shasta Total
Charges for Grants and Grants and Development Hotel Tw in Rivers Component Functions/Programs Expenses Services Contributions Contributions Corporation Corporation Phase 3, LP Units

COM PONENT UNITS
Sacramento Housing Development Corporation
Local Housing 3 $ - $ - $ - $ (3) $ - $ - $ (3) $ Shasta Hotel Corporation
Local Housing - 5 - - - 5 - 5 Tw in Rivers Phase 3, LP
Local Housing 2,881 355 - - - - (2,526) (2,526) Total Component Units 2,884 $ 360 $ - $ - $ (3) $ 5 $ (2,526)$ (2,524) $

GENERAL REV ENUES
I nvestm ent E arnings - $ 4 $ - $ 4 $ Transf ers, Net - (115) - (115) Total General Revenues - (111) - (111) CHANGE IN NET POSITION (3) (106) (2,526) (2,635) Net Position, Beginning of Year, as Previously Presented 1,063 213 - 1,276 E rror Correction (63) - - (63) Net Position, Beginning of Year, Restated 1,000 213 - 1,213 NET POSITION - END OF YEAR 997$ 107 $ (2,526)$ (1,422) $ Program Revenues

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(36)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Sacramento Housing and Redevelopment Agency (Agency) is a joint powers authority formally created in 1982 (but operating since 1973) to provide common professional staffing to the City of Sacramento (City) and County of Sacramento (County) to administer and manage its housing authorities, redevelopment agencies and the city and county federal housing and community development entitlement funds. The Agency is a separate legal entity and is not a component unit of the City or County of Sacramento. The Agency receives no City or County general funds and the Agency is not included in the Annual Comprehensive Financial Report of either the City or County of Sacramento.

The members of the joint powers authority included the City and County of Sacramento, the Housing Authorities of the City and County of Sacramento and the Redevelopment Agencies of the City and County of Sacramento (or their Successor Agency). On February 1, 2012, all Redevelopment Agencies in the State of California were eliminated and replaced with a Successor Agency responsible for the wind down of former redevelopment agency activities and debt. On February 1, 2012, the legal and treasury functions related to the administration and management of the former redevelopment activities and payment of debt for the former redevelopment agencies of the City and County of Sacramento were assumed within the City and County management structure.

However, all housing assets and housing functions of the former redevelopment agencies were assumed by the Housing Authority of the City and the Housing Authority of the County to be staffed, managed and administered by the Agency.

The Agency serves as the fiscal agent/administrator and provides the exclusive staffing for the Housing Authorities of the City and County of Sacramento. The Housing Authorities of the City and County were formed in July 1939 and June 1940, respectively. Additionally, since June of 1982 the Agency has administered and managed the federal Community Development Block Grant Program (CDBG) and Home Investment Partnership Program (HOME) fo r the City and County of Sacramento. In 2012 and 2013 with changes to federal regulations related to Homeless Continuum of Care funding, the Agency assumed administration of several federal grant programs from the County of Sacramento including Housing Opportunities for Persons with AIDS (HOPWA), Shelter Plus Care and Emergency Solutions Grants (ESG).

The governing board of the Agency is t he Sacramento Housing and Redevelopment Commission (Commission). The Commission’s authority to approve housing related projects, programs and budgets is limited to what is delegated to them by the governing boards of the Agency members. The City Council serves as the governing board for the City Housing Authority and the City Redevelopment Agency Successor Agency and has retained the power to approve City housing related projects, programs, and budgets.

The County Board of Supervisors serves as the governing board for the County Housing Authority and the County Redevelopment A gency Successor Agency and has retained power to approve County related housing agenda items. The Commission also serves in an advisory capacity for each Agency member and the Commission has operational authority within the budget and policy direction approved by the City Council and County Board of Supervisors.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(37)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
The Agency has defined its reporting entity in accordance with Governmental Accounting Standards Board (GASB) Statem ents. The Agency also has adopted GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB No. 14 and No. 84, and a supersession of GASB Statement No. 32, GASB Statement No. 90, Majority Equity Interests – An Amendment of GASB Statements No.14 and No. 61 . This statement helps clarify situations in which a government’s purpose for holding a majority equity interest met both the definition of an investment and the criteria to be reported as a component unit. The component units discussed in the following paragraphs are included in the Agency's reporting entity because of the significance of their operational or financial relationships with the Agency.

Blended component units, although legally separate entities are, in substance, part of the government’s operations. The discretely presented component units are reported in a separate column in the financial statements (see note below for description) to emphasize that they are legally separate from the Agency.

Blended Component Units
Housing Authority of the City of Sacramento (HACS)
HACS is responsible for the development and implementation of housing programs and activities within the City of Sacramento, California. The Authority provides rent assistance and affordable housing to low-income families under a variety of programs including, the Conventional Public Housing, Emergency Housing, and others.

HACS was established by a resolution of the Sacramento City Council on July 7, 1939.

The Authority is governed by a nine-member Board who concurrently sit as members of the Sacramento City Council.

Housing Authority of the County of Sacramento
HACOS is responsible for the development and implementation of housing programs and activities within the County of Sacrament o, California. The Authority provides rent assistance and affordable housing to low-income families under a variety of programs including, the Conventional Public Housing, Housing Choice Voucher program, Emergency Housing, and others.

HACOS was established by a resolution of the County Board of Supervisors in 1940.

HACOS is governed by a six-member Board of Commissioners and County Supervisors.

Both HACS and HACOS are managed by the A gency, which is a joint powers authority formally created in 1982 (but operating since 1973) to provide common professional staffing to the City of Sacramento (City) and County of Sacramento (County) to administer and manage its housing authorities, redevelopment agencies and the city and county federal housing and community development entitlement funds.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(38)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Blended Component Units (Continued)
Housing Authority of the County of Sacramento (Continued) Foundation Uniting Needs and Dollars (FUND, Inc.) – A nonprofit corporation established to maintain or aid charitable activi ties serving the public. FUND, Inc. is a component unit of the Agency because the purpose of this corporation is to promote and support the activities and programs of the Sacramento Housing and Redevelopment Agency. The Board of Directors of FUND, Inc. is comprised of the members of the Commission. Acting in its capacity as the Board of Directors, the Commission approves the FUND, Inc. budget. The Executive Director of the Agency serves as the Executive Director of FUND, Inc.

Norwood Avenue Housing Corporation and Affiliated Entities (NAHC) – A nonprofit public benefit corporation with a governing board comprised of three Agency staff appointed by the Executive Director of the Agency and two community representatives.

NAHC is a blended component unit of SHARP because through contractual arrangements, the Agency bears some responsibility for financial and operational matters of NAHC, as well as having the ability to impose its will on the NAHC by appointing and removing its board members. These consolidated statements include the activity of New Phoenix Park I, LLC and New Phoenix Park II, LLC which are wholly owned by the entity.

Sacramento Housing Authority Repositioning Program, Inc. (SHARP) – As a nonprofit public benefit corporation, the Sacramento Housing Authority Repositioning Program, Inc. (SHARP, Inc.), was formed for the purpose of serving as the general partner of the entity that will own, rehabilitate, and operate former public housing properties acquired through U.S. Department of Housing and Urban Development’s (HUD) assets demolition and disposition proce ss. The purpose of SHARP, Inc. is to allow the Housing Authority of the City of Sacramento and the Housing Authority of the County of Sacramento to leverage private sector capital to make improvements to housing inventory removed from the federal Public Housing program through HUD’s asset disposition process. Assets transferred to SHARP, Inc. will be rehabilitated through various financing structures including th e use of limited partnerships that will be able to benefit from the use of tax credit financing. Separately issued financial statements may be obtained by contacting the Agency.

Discretely Presented Component Units
Sacramento Housing Development Corporation (SHDC) – A nonprofit public benefit corporation created to serve as the general partner of Riverview Plaza Associates (RPA). It is a component unit of the Agen cy because the governing board of SHDC is the County Board of Supervisors. The Agency does not appoint any of the board members. The Housing Authority of the City of Sacramento is legally obligated to finance any deficits of SHDC. Also, the Executive Director of the Agency serves as the Executive Director of SHDC. SHDC is the General Partner in Riverview Plaza Associates.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(39)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Discretely Presented Component Units (Continued)
Shasta Hotel Corporation (Corporation) – A nonprofit corporation with a governing board comprised of 2 Agency staff and 3 representatives of selected nonprofit housing and social service entities. It is a component unit because the general partner’s governing board members serve at the direction of the Executive Director of the Agency and through contractual arrangements, the Agency is responsible for financial and operational matters of the Partnership. The Corporation was created to benefit both the Agency as well as the City and County of Sacramento.

Since the Agency (1) appoints the entire voting members of the Corporation’s board of directors; (2) can impose its will on the Corporations by significantly influencing its programs, activities, and levels of service provided by the Corporations; (3) does not have substantively the same governing body; and (4) the Corporations do not entirely or exclusively provide services to the Agency, nor entirely benefitting the Agency, the Corporations are considered to be discrete component units of the Agency.

Twin Rivers Phase 3, LP (Partnership) – A California limited partnership that was formed to construct, own hold for investment, manage, lease and operate an 84-unit mixed-income rental housing development for low-income families located in Sacramento, California and operating under the name of Mirasol Village Block C(the Project). Since the Agency (1) holds majority interest of the Partnership, (2) does not have a financial benefit or burden (3) the Partnerships debts will not be paid by the Agency and (4) the Partnership does not entirely or exclusively provide services to the Agency, nor entirely benefitting the Agency, the Corporations are considered to be discrete component units of the Agency. The financial statements for this Partnership can be obtained from the Agency.

B. Basis of Accounting and Financial Statement Presentation The financial statements of the Agency are reported using the economic resources measurement focus and the accrual basis of accounting, whereby all revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Depreciation and amortization of assets is recognized in the statement of revenues, expenses, and changes in net position. All assets and deferred outflows and liabilities and deferred inflows associated with the operation of the Agency are included in the statement of net position.

Based on compelling reasons offered by HUD, the Agency reports its operations under the governmental proprietary fund type. .Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Agency’s enterprise funds are rental income from its public housing units. Operating expenses for enterprise funds include employee services, services and supplies, administrative expenses, utilities, depreciation on capital assets, claims and judgements and housing assistance payments to landlords. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(40)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Liabilities, and Net Position

1. Cash and Investments
Under the terms of the joint powers agreement the Agency’s Director of Finance is the treasurer of the joint powers agency. However, since 1980 the City Treasurer manages the Agency’s cash and investments, except those that must be legally segregated. The share of each fund in the pooled cash accounts is separately accounted for and investment earnings is apportioned monthly to funds that are legally required to receive interest based on the relationship of a fund’s average daily balance to the total pooled cash and investments.

The balance of pooled cash is maintained at a level sufficient to meet current operating requirements. Cash in excess of current requirements is invested.

Investments for the Agency are stated at fair value.

The City Treasurer is responsible for the regulatory oversight of its pool. The Agency formally requested that the City invest the Agency’s funds in compliance with Section 53601 of the California Government Code and the City Council adopted a revised investment policy to accommodate the Agency’s request.

Investment of funds serves to maximize investment income and is accomplished by various custodial financial institutions vested with responsibility for administering funds under the control of the City Treasurer. The fair value of investments is determined monthly.

Investment earnings on bond proceeds are recorded in the City and County Housing Successor funds.

2. Receivables and Payables
Notes receivable amounts primarily represent loans made for redevelopment, economic development, and property rehabilitation. The Agency has created an allowance for loan losses for receivables that the Agency has identified as potentially uncollectible. If the amounts become uncollectible, they will be written-off and charged against the allowance when the determination is made. The allowance for loan losses as of December 31, 2024 was $3,232 for the Agency.

Accounts receivable amounts primarily represent rental revenues from housing authority tenants, fraud recovery revenues in the Housing Choice Vouchers program and developer fees. The Agency has created an allowance for tenant accounts receivables that the Agency has identified as potentially uncollectible. If the amounts become uncollectible, they will be written-off and charged against the allowance when the determination is made. The allowance for accounts receivable as of December 31, 2024 was $765.

Amounts reported as due from other governments represent receivables from federal, state, and local governments for various programs.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(41)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Liabilities, and Net Position (Continued)

3. Prepaid Items
Prepaid items represent costs for goods and/or services, which will benefit periods beyond December 31, 2024.

4. Restricted Cash and Investments
Certain proceeds of debt issuances, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position and balance sheet because their use is limited by applicable debt covenants. In addition, certain cash and investments are restricted by grantors for replacement, tenant security deposits and insurance impounds.

5. Capital Assets
Capital assets include land, construction in progress, buildings and improvements, and property and equipment. Capital assets are recorded at actual historical cost; donated capital assets, donated works of art and similar items are recorded at acquisition value. Capital assets are depreciated using the straight-line method over the following estimated useful lives: 40 years for buildings and improvements, and 5 to 10 years for property and equipment. It is the policy of the Agency to capitalize all land, construction in progress, buildings and improvements, and property and equipment with an initial, individual cost of more than $5. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets lives are not capitalized.

6. Deferred Outflows and Inflows of Resources
The Agency recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a consumption of net assets by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net assets by the government that is applicable to a future reporting period.

The Agency’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Note 3B and 3C.

For pension, the measurement date of June 30, 2024, per the June 30, 2023, actuarial report produced by the California Public Employee’s Retirement System (CalPERS). For OPEB plan the actuarial report produced by a third-party actuary, has a measurement date of December 31, 2023.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(42)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Liabilities, and Net Position (Continued)

7. Compensated Absences
An employee accumulates vacation time in accordance with the employee’s respective Memorandum of Understanding. The amount of vacation vested and accrued depends on years of service and date of hire. Vacation vested may be accumulated up to various maximum hours and is paid in full upon retirement. Sick leave time may be accumulated without limit.

Annually, employees with accrued sick leave of 500 hours or more, and who have used twenty-four (24) hours or less of sick leave by December 1 of the current calendar year, may cash out up to sixteen (16) hours sick leave in pay period 26 by submitting a written request to Human Resources. Sick leave used for any reason protected by law is not considered in determining eligibility for this cash out.

At retirement with less than fifteen (15) years of service, Represented, Confidential, and Exempt employees may convert all accrued but unused sick leave to retirement service credit pursuant to Section 20965 of the Government Code; or at retirement with fifteen (15) or more years of service, may cash out up to thirty-three and one third (33 1/3%) percent of 1,040 hours of accrued but unused sick leave and convert the balance to retirement service credit or convert all accrued but unused sick leave to retirement service credit.

The liability for compensated absences reported in the business-type activities statements consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave.

8. Unearned Revenue
Unearned revenue represents resources received before the Agency has a legal claim to them and the earnings process has not been completed. Monies are collected prior to providing the goods and/or services to satisfy the obligations. As of December 31, 2024, unearned revenues was $26,523 for the Agency.

9. Long-Term Obligations
In the financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bonds payable are reported net of the applicable bond premium or discount.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(43)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

10. Pensions
For purposes of measuring, the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Agency’s CalPERS plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are report ed at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

11. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB and OPEB expense, information about the fiduciary net position of the Agency’s California Public Employees Retirement System (CalPERS) Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

12. Net Position
Net position is categorized as net investment in capital assets, restricted and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. This net position is mainly restricted by HUD and the Health and Safety Code.

Unrestricted Net Position – This category represents the net position of the Agency, not restricted for any project or other purpose.

13. Statement of Cash Flows
For the purposes of the statement of cash flows, cash and cash equivalents have been defined as all highly liquid investments (including restricted cash and investments) with a maturity of three months or less from the date of purchase and pooled cash and investments.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(44)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

14. Estimates
The preparation of the basic financial statements in conformity with accounting principles generally accepted in the United St ates of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

D. New Accounting Standards Adopted
Effective January 1, 2024, the Author ity implemented GASB Statement No. 101, Compensated Absences. This statement updated the recognition and measurement guidance for compensated absences and associated salary-related payments and amended certain previously required disclosures. The impact to the Authority was not material and no adjustment was required.

NOTE 2 DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
At December 31, 2024, total Agency cash and investments were as follows:

Discretely
Presented
Primary Component
Government Units Total
Cash and Investments 132,938 $ 151 $ 133,089 $ Restricted Cash and Investments 9,997 - 9,997 Total Cash and Investments 142,935$ 151 $ 143,086 $

At December 31, 2024, the Agency’s pooled cash and investments consist of the following:

Cash - Primary Government 32,432 $
Investments - Primary Government 110,503
Subtotal 142,935
Cash - Discretely Presented Component Units 151
Total Cash and Investments 143,086 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(45)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
The table below identifies the investment types that are authorized for the Agency, including its discretely presented component units, by California Government Code Section 53601 and pursuant to the Agency’s investment policy. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Agency, rather than the general provisions of the Agency’s investment policy.

Maximum Percentage of Investment in Minimum
Authorized Investment Type Maturity Portfolio One Issuer Rating Local Agency Bonds 5 years No limit No limit None
U.S. Treasury Obligations 5 years No limit No limit None U.S. Agency Securities 5 years No limit No limit None
Bankers Acceptance 180 days 40% 30% None
Commercial Paper 270 days 25% 10% A1/P1
Negotiable Certificates of Deposit 5 years 30% 30% None Repurchase Agreements 1 year No limit No limit None
Reverse Repurchase Agreements 92 days 20% No limit None Medium Term Notes (Corporate and
Depository Debt Securities) 5 years 30% No limit A
Mutual Funds (that invest in
allow able securities) N/A 20% 10% AAA
Money Market Mutual Funds N/A 20% 10% AAA
Collateralized Bank Deposits 5 years No limit No limit None Mortgage Pass-through Securities 5 years 20% No limit AA Time Deposits 5 years No limit No limit None
County Pooled Investment N/A No limit No limit None
Joint Pow ers Authority Pool N/A No limit No limit None Local Agency Investment Fund (LAIF) N/A No limit No limit None

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity its fair value is to changes in market interest rates.

The Agency has investments held with the City of Sacramento in pooled investments.

The investments of these funds follow the policy of the City Treasurer. The City’s investment policy limits interest rate risk by requiring compliance with the California Government Code for investments of public funds. As a means of limiting its exposure to fair value losses arising from rising interest rates, one of the ways that the City Treasurer manages the Agency’s exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(46)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits and securities lending transactions: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The California Government Code limits the total of all securities lending transactions to 20% of the fair value of the investment portfolio.

At December 31, 2024, the carrying amount of the Agency’s deposits is $32,432 and the bank balance is $36,204. Of the bank balance, $2,000 is covered by federal depository insurance, and $31,295 is collateralized with securities held by the pledging financial institution, in accordance with the State of California Government Code. As of December 31, 2024, $3,243 is not collateralized which is related to the blended component units.

At December 31, 2024, the carrying amount of the Agency’s discretely presented component units deposits is $151 and the bank balance is $151. Of the bank balance, $-0- is insured and $151 is collateralized with securities held by the pledging financial institution.

Concentration of Credit Risk

31.95%, or $35,458, of the Agency’s investment portfolio at year-end is in U.S. Agency Securities. There is no limitation on amounts invested in U.S. Agency Securities. Of the $41,209, or 37.13%, of the Agency’s investment portfolio invested in corporate bonds and municipal bonds, investments in any one issuer that represents 5% or more of the Agency’s total investments are as follows:

% of Portfolio Amount
Federal Farm Credit Bank 10.9% 12,110 $
Federal Home Loan Bank 8.7% 9,665
Federal Home Loan Mortgage Association 5.7% 6,364
Federal National Mortgage Association 5.2% 5,855

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(47)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Agency’s investment policy limits credit risk by requiring compliance with California Government Code for purchase of investments, as described in detail in Note 3.A above.

Participation in External Investment Pools
The Agency is also a voluntary participant in the Investment Trust of California (CalTrust) which is a Joint Powers Authority governed by a Board of Trustees made up of local treasurers and investment officers. The Board of Trustees sets overall policy for CalTrust, and selects and supervises the activities of the Investment Manager and other agents.

As of December 31, 2024, the Agency’s investment in CalTrust is $17,146, of which $1,470 was invested in the Money Market Fund and $15,676 in the Short-Term pool.

The fair value of the position in the pool is the same as the value of the pooled shares.

The County’s combined pool has invested in the State’s Local Agency Investment Fund (LAIF). This fund is not registered with the Securities and Exchange Commission as an investment company but is required to invest according to CGC. Market valuation is conducted quarterly. LAIF provided a fair value dollar factor of 0.996316042 for its portfolio as of June 30, 2024. The fair value of the investments in LAIF is the pool participant’s amount invested balance multiplied by the fair value dollar factor. As of June 30, 2024, 3.00% of the LAIF pool includes Medium-term and Short-term Structured notes and Asset-backed securities. The Local Investment Advisory Board, which consists of five members as designated by statute, provides oversight for LAIF.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(48)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Participation in External Investment Pools (Continued)
As of December 31, 2024, the Agency’s pooled investments and credit ratings are as follows:

Credit Rating
(S&P)/Moody's Under 1 1 to 5 Fair Value
Cash in Banks Not Rated - $ - $ 36,470$ Less Outstanding Checks Not Rated - - (4,563) Certificates of Deposit Not Rated - 481 481 Total - 481 32,388
CalTrus t Not Rated - 17,146 17,146 LAIF Fidelity Fund Not Rated - 10,102 10,102 Supranationals AAA 485 495 980 Corporate Bonds AAA - 955 955 Corporate Bonds AA+ 977 478 1,455 Corporate Bonds AA 1,469 - 1,469 Corporate Bonds A 8,984 6,690 15,674 Corporate Bonds A- 4,079 8,077 12,156 Corporate Bonds A+ 7,104 1,924 9,028 Corporate Bonds AA- - 473 473 U.S. Agency Securities - Federal Agriculture
Mortgage Corp Not Rated - 976 976 U.S. Agency Securities - Federal Home
Loan Bank AA+ 2,935 7,218 10,153
U.S. Agency Securities - Federal Farm
Credit Bank AA+ 3,421 8,688 12,109 U.S. Agency Securities - Federal Home Loan
Mortgage Corp. AA+ 5,865 499 6,364 U.S. Agency Securities - Federal National
Mortgage Association AA+ 4,869 986 5,855 Municipal Bonds AA+ 729 - 729 Municipal Bonds AA 2,631 1,250 3,881 Municipal Bonds AA- 998 - 998 Total Cash and Investments -
Business-Type Activities 44,546 $ 66,438 $ 142,891 $ Remaining Maturity in Years

As of December 31, 2024, the cash and investments of the discretely presented component units of the Agency are as follows:

Fair Value
Cash in Banks 151$

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(49)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Fair Value Measurement and Application
The City Treasurer manages the Agency’s cash and investments in an exclusive external pool and categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowes t priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.

Level 2 – Inputs to the valuation methodology include:

 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in inactive markets;  Inputs other than quoted prices that are observable for the asset or liability; and
 Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used, need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes obser vable requires judgment by the City’s management in accordance with the revised investment policy adopted by the City Council to accommodate the Agency’s request that the City invest the Agency’s funds in accordance with Section 53601 of the California Government Code.

City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(50)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Fair Value Measurement and Application (Continued)
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

Deposits and withdrawals in governmental investment pools, such as CalTrust Investment Pools, are made on the basis of $1 and not fair value. Accordingly, the Agency’s measured fair value of its proportionate share in these types of investments is based on uncategorized inputs not defined as a Level 1, Level 2, or Level 3 input.

The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of the Agency’s investments:

 When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.

 For investments classified within Level 2 of the fair value hierarchy, the City’s custodians generally use a multi-dimensional r elational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others.

There have been no changes in the methods and assumptions used at December 31, 2024. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(51)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. Cash and Investments (Continued)
Fair Value Measurement and Application (Continued)
The Agency has the following recurring fair value measurements as of December 31, 2024:

Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Balance at Assets Inputs Inputs
12/31/2024 (Level 1) (Level 2) (Level 3)
Investments by Fair Value Level:

Corporate Bonds/Notes 41,210 $ - $ 41,210$ - $ Municipal Bonds 5,608 - 5,608 - Supranationals 980 - 980 - U.S. Agency Securities 35,457 - 35,457 - Total Investments by Fair Value Level 83,255$ - $ 83,255$ - $ Investments Measured at Net Asset Value:

Local Agency Investment Fund (LAIF) 10,102$
Investments Not Categorized:

Investment Trust of California (CalTrust) 17,146
Total Agency Pooled Investments 110,503$
Fair Value Measurements Using:

B. Receivables
Receivables as of December 31, 2024 for the Agency are as follows:

Due from Allowance Gross Allowance
Accounts Other for Total Notes for Loan Net Notes
Receivable Governments Uncollectibles Receivables Receivable Losses Receivable Business-Type Activities 21 ,059$ 35,71 4$ (765) $ 56,008$ 560,479 $ (3,232) $ 557,247$ Total 21 ,059 $ 35,71 4$ (765) $ 56,008$ 560,479$ (3,232) $ 557,247$ Accounts Receivable Notes Receivable

Generally, notes receivable are not expected to be collected within one year. The notes receivable are from 1) the federal HOME pr ogram ($156,089); 2) the Housing Successor program ($82,918); 3) Housing Trust program ($60,996), 4) CDBG ($23,624), 5)Asset Repositioning ($56,263), 6) City Affordable Housing ($30,840) and 4) other projects ($149,749).

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(52)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. Capital Assets
Capital asset activity for the year ended December 31, 2024 was as follows:

B eginning Ending
B alance Increases Decreases B alance
Primary Government
Capital Assets, Nondepreciable:

Land 34,351 $ - $ - $ 34,351$ Const ruct ion in Progress 7,922 5,91 5 - 1 3,83 7 Total Capital Assets, Nondepreciable 42,273 5,91 5 - 48,1 88 Capital Assets, Depreciable:

B uildings and Improvement s 271,590 1 ,056 - 272,646 Propert y and Equipment 3,308 - - 3,308 Total Capital Assets, Depreciable 274,898 1 ,056 - 275,954 Less: Accumulated Depreciation for:

Buildings a nd Im provem ents (1 37,446) (6,91 0) - (1 44,356) Propert y and Equipment (1,740) (75) - (1 ,81 5) Total Accumulated Depreciation (1 39,1 86) (6,985) - (1 46,1 71 ) Total Capital Assets, Depreciable, Net 1 35,71 2 (5,929) - 1 29,783 Primary Government Capital Assets, Net 1 77,98 5$ (1 4) $ - $ 1 77,971$

Component unit capital asset activity for the year ended December 31, 2024 was as follows:

Beginning Ending
Balance Increases Decreases Balance
Component Unit Activities
Capital Assets, Nondepreciable:

Land -$ 2,654$ - $ 2,654$ Total Capital Assets, Nondepreciable- 2,654 - 2,654 Capital Assets, Depreciable:

Buildings and Improvements - 42,149 - 42,149 Property and Equipment 19 789 (19) 789 Total Capital Assets, Depreciable 19 42,939 (19) 42,939 Less Accumulated Depreciation for:

Buildings and Improvements - (681) - (681) Property and Equipment (19) - 19 - Total Accumulated Depreciation (19) (681) 19 (681) Total Capital Assets, Depreciable, Net - 44,912 - 44,912 Component Unit Activities Capital Assets, Net -$ 44,912$ - $ 44,912$

D. Payables
Payables as of December 31, 2024 for the Agency are summarized as follows:

Accounts Accrued Net Total
Payable Liabilities Payables
Business-Type Activities 8,548 $ 4,689 $ 13,237 $ Total 8,548 $ 4,689 $ 13,237 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(53)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Debt
Long-term debt payable at December 31, 2024 for the Agency and component units is comprised of the following individual issues:

Interest Balance
Rates 12/31/2024
Direct Borrowings:

Primary Government - Notes Payable:

City B-05-MC-06-0003 4.96% - 5.77% 894 $
City B-17-MC-06-0003 2.56% 10,755
City of Sacramento 4995 Stockton Boulevard 3.00% 10,000 Wong Center Affordable Housing 3.00% 3,500
Capital Park Hotel Affordable Housing Development 0.00% 6,000 *801 12th Street Bank of America 5.17% 3,293
County Public Housing (AMP 3) - City of Citrus
Heights (HCD) 1.00% 996
County Public Housing (AMP 3) - City of Citrus
Heights (HTF) 0.00% 1,177
Norwood Avenue Housing Corporation and Affiliated
Entities - New Phoenix Park I 2.36% 7,649
Norwood Avenue Housing Corporation and Affiliated
Entities - New Phoenix Park II 5.63% 5,400
Norwood Avenue Housing Corporation and Affiliated
Entities - New Phoenix Park II 3.00% 11,818
Total Long-Term Debt 61,482 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(54)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Debt (Continued)
Notes Payable
$5,500 Community Development Block Grant Note Payable authorized and issued September 14, 2006, due in installments of $146 to $461 from February 2007 through August 2026 w ith interest payable semiannually at 4.96% to 5.77% for the purpose of financing the Globe Mills project. This note is collateralized by and payable from the City Redevelopment Successor Agency. Failure to pay principal or interest in accordance w ith the agreement, may result in the loss of guarantee of current and future obligations. 894$ $16,490 Community Development Block Grant Note Payable authorized and issued July 31, 2018, due in installments of $306 to $1,098 from August 2020 through August 2039 w ith interest payable semiannually at 2.56% for the purpose of financing the Tw in Rivers project. This note is collateralized by and payable from future CDBG entitlements. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lende r 10,755
$10,000 City of Sacramento Loan authorized and issued June 2022, due in installments of $25 to $50 from 2043 through 2077 w ith interest payable monthly at 3.00% for the purpose of financing the Agency’s Stockton Boulevard Affordable Housing Project. Due in full in 2077.

Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 10,000 $3,500 City of Sacramento Loan authorized and issued June 2022, due in installments of $25 to $50 from 2043 through 2077 w ith interest payable monthly at 3% for the purpose of financing the Wong Affordable Housing Project. Due in full in 2077. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 3,500 $6,000 City of Sacramento Loan authorized and issued June 2022, due in full August 2077 at

3.00% for the purpose of financing the Capital Park Hotel Affordable Housing Project.

Failure to pay principal or interest in accordance w ith the agreement, may result in all unpai 6,000 principal and interest to become due immediately, at the discretion of the lender. $13,000 Bank of America Note Payable authorized and issued June 2008, due in installments of $87 from July 2008 through June 2028 w ith interest payable monthly at 5.17% for the purpose of financing the Agency’s administration building at 801 - 12th Street. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal 3,293 and interest to become due immediately, at the discretion of the lender.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(55)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Debt (Continued)
Notes Payable (Continued)
$1 million County Public Housing (AMP 3) Note Payable to the City of Citrus Heights (California Housing and Community Development Housing Trust Fund (HCD)). Loan Payments on the HCD Loan shall equal 75% of project residual receipts, but only to the extent that the project has excess cash flow . One percent (1.00%) simple interest shall accrue on the HCD Loan. The HCD Loan shall be for a term of thirty (30) years.

There is no amortization requirement on the HCD loan other than the repayment of residual receipts as noted above. Any remaining balance shall be forgiven on the thirtieth (30th) anniversary from the effective date of September 2009. This loan is to significantly rehabilitate and provide security improvements to tw o county public housing developments. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 996$
$1.2 million County Public Housing (AMP 3) Note Payable to the City of Citrus Heights (Housing Trust Fund). The loan shall be for a term of fifty-five (55) years w ith no interest. Provided that the loan is not in default, no repayment is due to the lender.

The remaining balance shall be forgiven on the fifty-fifth (55 th) anniversary of the
effective date of September 2009. This loan is to significantly rehabilitate and provide security improvements to tw o county public housing developments. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 1,177 Housing and Urban Development (HUD) note dated September 1, 2021, payable to Lument Capital, LLC in the original amount of $9,450,000 related to New Phoenix I.

The note bears interest at 2.36% per annum and requires monthly payments of principal and interest in the amount of $64,287 through April 1, 2029 and $20,426 from May 1, 2029 through October 1, 2056. The note is secured by a first deed of trus t
encumbering the rental property and is nonrecourse debt. During the years ended December 31, 2023 interest expense of $186,846 w as incurred, of w hich $15,042 remains payable as of December 31, 2024. Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 7,649
Multifamily loan in the original amount of $6,000,000 dated August 31, 2022, payable to Orix Real Estate Capital, LLC related to New Phoenix Park II. The note bears interest at

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(56)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Debt (Continued)
Notes Payable (Continued)
Note payable to the Multifamily Housing Program (MHP) State of California Department of Housing and Community Development (the Department), dated December 20, 2006, in the amount of $9,100,000 in principal plus $2,831,668 in accrued interest w as assumed by New Phoenix Park II on September 1, 2022. The note bears simple interest of 3.0% per annum and is secured by a deed of trust. Payment of the entire unpaid principal amount, together w ith all accrued but unpaid interest, is due on December 20, 2061. Interest payments in the amount of 0.42% per annum on the unpaid principal balance of the loan are to be paid annually beginning December 31, 2006 and continuing 2006 and continuing annually thereafter, up to and including December 31, 2035.

Commencing December 31, 2036 and continuing annually thereafter, annual loan payments in an amount equal to the lesser of (1) the full amount of interest accruing on the unpaid principal amount advanced under the Loan Documents for the immediately preceding tw elve (12) month period, or (2) the amount determined by the Projects to be necessary to cover the costs of continued monitoring of the Projects for compliance w ith the requirements of the Program. Additional payments are to be made only to the extent that net cash flow is available, as is defined in the regulatory agreement. Interest expense charged as December 31, 2024 w as $270,614.

Failure to pay principal or interest in accordance w ith the agreement, may result in all unpaid principal and interest to become due immediately, at the discretion of the lender. 11,818 $ Total Notes Payable 61,482
Less: Current P ortion (2,774)
Less: Unamortized Mortgage Fees (525)
Mortgage Notes Payable, Long-Term 58,183 $

Bonds and Notes Payable
The following is a summary of changes in long-term liabilities for the fiscal year ended December 31, 2024:

Beginning Ending Due Within
Balance Additions Retirements Balance One Year
Business-Type Activities
Direct Borrow ings:

Notes Payable 62,414 $ 1,595 $ (3,052) $ 60,957 $ 2,774 $ Pollution Remediation 1,243 - (1,195) 48 - Compensated Absences (1) 3,567 - (99) 3,468 365 Total Governmental Activities
Long-Term Liabilities 67,224 $ 1,595 $ (4,346) $ 64,473 $ 3,139 $

(1) The change in compensated absence liability is presented as a net change.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(57)

NOTE 2 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. Long-Term Debt (Continued)
Bonds and Notes Payable (Continued)
Annual debt service requirements of governmental activities to maturity are as follows:

Year Ending December 31, Principal Interest Total
2025 2,774 $ 124 $ 2,898 $ 2026 3,028 76 3,104 2027 2,650 26 2,676 2028 2,240 4 2,244 2029 1,462 - 1,462 2030 - 2034 7,873 - 7,873 2035 - 2039 5,286 - 5,286 2040 - 2044 730 - 730 2056 - 2061 15,414 - 15,414 2077 19,500 - 19,500 Totals 60,957 $ 230 $ 61,187 $ Notes Payable

The following is a summary of changes in long-term liabilities for the fiscal year ended December 31, 2024 for the discretely presented component units:

Beginning Ending Due Within
Balance Additions Retirements Balance One Year
Component Unit Activities
Notes Payable
Citibank, N.A. - $ 39,906$ - $ 39,906$ - $ Housing Authority of County of Sacramento - 2,000 - 2,000 - Housing Authority of the City of Sacramento - 4,050 - 4,050 - Housing Authority of County of Sacramento -
Ground Lease - 378 - 378 - Total Component Unit Activities
Long-Term Obligations - $ 46,334$ - $ 46,334$ - $

Pollution Remediation Obligations
The Agency has obligated itself to commence environmental assessment and remediation activities on five projects. The nature and source of pollutants on these projects are primarily petroleum and met als including arsenic, cadmium, and lead, and PCEs. The total estimated costs of $1,438 for remediation of these projects were derived by environmental remediation consultants. These estimates may change resulting from the oversight agency (Sacramento Count y Environmental Management Department, Department of Toxics Substances Control, State or local Water Board, or the Environmental Protection Agency) input and also from price increases or reductions, technology, or changes in applicable laws or regulations. Estimated recoveries of $1,390 will reduce the cost of remediation. The source of these estimated recoveries will be from EPA grants. Other funding sources for remediation include CDBG, CNI, NSP, and property management funds. The estimated costs are recorded as long-term liabilities on the governmental activities statement of net position in the amount of $48.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(58)

Pledged Revenues
The Agency pledged a portion of future Community Development Block Grant (CDBG) entitlement and program income revenues to repay all Section 108 notes payable (City B-97-MC-06-0003, City B-05-MC-06-0003, and City B-17-MC-06-0003). The Section 108 notes are payable from CDBG and Redevelopment Agency Successor Agency (RASA) fund revenues through August 2026. The RASA is reimbursing the Agency for the Globe Mills loan as this was located in the old redevelopment areas. CDBG entitlement funds will still back these loan payments in the event the RASA ends the reimbursement. As of December 31, 2024, the total remaining principal and interest on the notes was $10,755.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(59)

NOTE 3 OTHER INFORMATION
A. Risk Management
The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries and illnesses of employees; wrongful employment practices; and natural disasters. The Agency maintains an internal service fund to account for and finance its risks of loss. Under these programs the Agency maintains a deductible for the following risks up to the maximum amount per claim as follows: general liability, $25; property, $50; auto liability, $-0-; auto physical damage, $1; and employment practice liability, $50.

For general liability, the Agency covers the first $25 per claim. Excess liability coverage is obtained from HAI Group and is provided through the pool up to $5,000 for each occurrence. Settled claims have not exceeded this commercial coverage in any of the past three years.

For property, the Agency covers the first $50 per claim. Excess property coverage is obtained from HAI Group and covers up to maximum limit of $100,000 per occurrence.

Settled claims have not exceeded this commercial coverage in any of the past three years.

For automotive insurance, the Agency obt ains automotive liability coverage from HAI Group up to $5,000. The insurance group contracts with Travelers for auto physical damage and collision. The Agency covers the first five hundred dollars per claim on the collision.

For this policy year, the Agency has purchased employment liability insurance from Arthur Gallagher Insurance Brokers with Hiscox as the carrier. The policy provides a maximum of $2 million per occurrence/aggregate per policy year with a $50 retention/deductible for indemnifiable claims. Workers compensation insurance is provided through California Housing Workers Compensation Authority (CHWCA), a risk sharing pool. For workers’ compensation claims, the pool covers the Agency’s claims within the statutory limit. Should actual losses among participants be greater than anticipated, the Agency will be assessed its pro rata share per that deficiency.

Conversely, if the actual losses are less than anticipated, the Agency will be refunded its pro rata share of the excess.

The operating funds no longer make contributions to the internal service fund based on historical cost and/or actuarial estimates of amounts needed to pay prior and current year claims. The accrued amount in the Self Insurance internal service fund will remain as a reserve for future catastrophic claims that cannot be paid by a single department.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(60)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan

1. General Information about the Pension Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the Agency’s Miscellaneous Plan, an agent multiple-employer public employee defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute. CalPERS issues publicly available reports that include a full description of the pension plan including benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits for employees who are not “new members” under the California Public Employee Pension Reform Act of 2013 (PEPRA) are part of the 2% at 55 CalPERS retirement formula. Accordingly, all new employees hired on or after January 1, 2013, are considered “new members” under the PEPRA and are part of the 2% at 62 CalPERS retirement formula as described in PEPRA. In addition, “new members” are subject to the equal sharing and contribution requirements of California Government Code Sections 7522.30(a) and (c) and must pay at least 50% of the normal cost of their pension benefit.

All full-time Agency employees are required to participate in CalPERS. Benefits for employees who are not “new members” vest after five years of credited service.

Employees who retire at or after age 50 with five years of credited service are entitled to an annual retirement benefit payable monthly for life, in an amount equal to 1.426% to 2.418% of their average salary, during their highest year of employment, for each year of credited service. Benefits for “new members” vest after five years of credited service. New members who retire at or after age 52 with five years of credited service are entitled to an annual retirement benefit payable monthly for life, in an amount equal to 1.0% to 2.5% of their average salary, during the highest three years of employment, for each year of credited service. These benefit provisions and all other requirements are established by state statute within the Public Employees’ Retirement Law and Agency resolution. CalPERS issues a separate comprehensive annual financial report.

All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

Copies of the CalPERS’ annual financial report may be obtained from the CalPERS Executive Office – 400 P Street – Sacramento, CA 95814. A separate report for the Agency’s plan is not available.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(61)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan (Continued)

1. General Information about the Pension Plan (Continued) Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at December 31, 2024, are summarized as follows:

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.0% at 55 2.0% at 62
Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a Percent
of Eligible Compensation 1.426% to 2.418% 1.0% to 2.5%
Required Employee
Contribution Rates 7% 7.25%
Required Employer
Contribution Rates 23.295% 23.295%

Employees Covered – At measurement date June 30, 2024, the following employees were covered by the benefit terms for each Plan:

Retirees 572
Active Employees 216
Total 788

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions fo r the plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The Agency is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plan from the Agency were $6,380 for the year ended December 31, 2024.

2. Net Pension Liability
The Agency’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures.

A summary of principal assumptions and methods used to determine the net pension liability is shown below.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(62)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan (Continued)

2. Net Pension Liability (Continued)
Actuarial Assumptions – The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liabilities based on the following actuarial methods and assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.300%
Payroll Growth 2.800%
Projected Salary Increase Varies by entry age and service Investment Rate of Return 6.80%
(1)
Mortality 2021 CalPERS Experience Study (2)
(1) Net of pension plan investment expenses, including inflation. (2) The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019.

Pre-retirement and Post-retirement mortality rates include 15 years of mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

Further details of the 2021 Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was

6.90% for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contr ibutions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Ther efore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(63)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan (Continued)

2. Net Pension Liability (Continued)
Discount Rate (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the long-term expected real rate of return by asset class.

The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed Asset
Asset Class Allocation Real Return (1), (2)
Global Equity - Cap-Weighted 30.00 % 4.54%
Global Equity - Noncap-Weighted 12.00 3.84%
Priv ate Equity 13.00 7.28%
Treasury 5.00 0.27%
Mortgage-Backed Securities 5.00 0.50%
Investment Grade Corporates 10.00 1.56%
High Yield 5.00 2.27%
Emerging Market Debt 5.00 2.48%
Private Debt 5.00 3.57%
Real Assets 15.00 3.21%
Leverage (5.00) -0.59%
Total Core Fund 100.00 %
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(64)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan (Continued)

3. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each plan follows:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balance - Beginning of Year 196,196 $ 136,504 $ 59,692 $ Changes in the Year:

Service Cost 3,003 - 3,003 Interest on the Total Pension
Liability 13,239 - 13,239 Changes in Assumptions: - - - Changes of Benefit Terms - - - Difference betw een Actual
and Expected Experience 498 - 498 Contribution - Employer - 6,380 (6,380) Contribution - Employee - 1,614 (1,614) N et I nvestm ent I ncom e - 12,783 (12,783) Administrative Expenses - (108) 108 Other Miscellaneous Income -
(E xpense) - - - Benefit Payments, Including
Refunds of Employee
Contributions (12,572) (12,572) - Net Changes 4,168 8,097 (3,929) Balance - End of Year 200,365 $ 144,601 $ 55,764 $ Increase (Decrease)
Primary Government

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the Agency for each Plan, calculated using the discount rate for each Plan, as well as what the Agency’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

1% Decrease Current 1% Increase
in Rate Discount Rate In Rate
(5.90%) (6.90%) (7.90%)
Net Pension Liability 79,285 $ 55,764 $ 36,211 $ Primar y Government

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(65)

NOTE 3 OTHER INFORMATION (CONTINUED)
B. Pension Plan (Continued)

4. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended December 31, 2024, the Agency recognized pension expense of $7,778. At December 31, 2024, the Agency reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 2,268 $ - $
Differences Between Actual and Expected
Experience 721 -
Changes in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments 2,358 - Total 5,346 $ - $
Primar
y Government

$2,268 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending Dec 31,
Primary
Government
Amount
2025 610 $
2026 3,703
2027 (527)
2028 (708)

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(66)

NOTE 3 OTHER INFORMATION (CONTINUED)
C. Postemployment Health Benefits (OPEB)

1. Plan Description
The Agency’s defined benefit postemployment healthcare plan provides premium coverage for medical and dental benefits to eligible retired agency employees and their families up to a maximum that depends on the participant’s unit and/or coverage level. The Agency established an irrevocable trust to prefund the other postemployment benefits annual required contribution through the California Employer’s Retiree Benefit Trust Program (CERBT). The funds in the CERBT are held in trust and administered by the C alifornia Public Employees’ Retirement System (CalPERS) as an agent multiple-em ployer plan (plan). Benefit provisions are established and may be amended by Agency labor agreements which are approved by the City Council and County Board of Supervisors. The Agency’s Other Postemployment Benefits (OPEB) plan finan cial statements are included in the CalPERS ACFR. Copies of the CalPERS’ ACFR may be obtained from the CalPERS Executive Office – 400 P Street – Sacramento, CA 95814.

The Agency provides allowances for health benefits for all employees who retire from the Agency and for their survivors and dependents. Participants have the choice of enrolling in one of several health plans and one of two dental plans. Postemployment health benefits for the Agency varies by the participant’s years of service and job classification at the time of retirement. The Agency covers the participant’s health and dental benefits under these plans up to the allotted benefit allowance.

In, addition, if claims experience of employees and retirees are pooled when determining premiums, retiree premiums are based on a pool of members which, on average, are younger and healthier. For certain types of coverage such as medical insurance, this results in an “implicit subsidy” of retiree premiums by active employee premiums since the retiree premiums are low er than they would have been if retirees were insured separately. GASB 75 and Actuarial Standards of Practice generally require that an implicit subsidy of retiree premium rates be valued as an OPEB liability. The implicit rate subsidy for pre-Medicare retirees is determined as the projected difference between (a) retiree medical claim costs by age and (b) premiums charged for retiree coverage.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(67)

NOTE 3 OTHER INFORMATION (CONTINUED)
C. Postemployment Health Benefits (OPEB) (Continued)

2. Employees Covered – OPEB
At measurement date December 31, 2023, the following employees were covered by the benefit terms of each Plan:

Participants
by Group
Inactive Employees or Beneficiaries Currently
Receiving Benefits 267
Inactive Employees Entitled to but not yet Receiving
Pension Benefits 38
Active Employees 236
Total 541

3. Contributions
Agency contributions to the Plan occur as benefits are paid to retirees and/or to the OPEB Trust. Benefit payments may occur in the form of direct payments for premiums and taxes (explicit subsidies) and/ or indirect payments to retirees in the form of higher premiums for active employ ees (implicit subsidies). Contributions recognized by the plan from the employer for the year ended December 31, 2024 was $1,437.

4. Net OPEB Liability
Actuarial Assumptions – The Total OPEB liabilities in the December 31, 2023 actuarial valuations were determined using the following actuarial assumptions.

Discount Rate 6.15 as of December 31, 2023
Inflation 2.50%
Salary Increases 3.00% per annum, in aggregate
Investment Rate of Return 6.15%
Healthcare Trend Rate 6.0% for 2026

5. OPEB Discount Rate
The discount rate used to measure the total OPEB liability was 6.15%, which is an increase in the discount rate of 6.10% in the prior year, for the Plan which is the long term expected return of trust assets.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(68)

NOTE 3 OTHER INFORMATION (CONTINUED)
C. Postemployment Health Benefits (OPEB) (Continued)

6. Changes in Net OPEB Liability. Plan total including discretely presented component units
The changes in the net OPEB liability for the OPEB Plan as of December 31, 2024 are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance - Beginning of Year 24,072 $ 1 6,289 $ 7,783 $ (Valuation Date December 31 , 2023)
Changes Recognized for the
M easurement Period:

Service Cost 949 - 949 Interest 1 ,486 - 1 ,486 Changes in Assumptions (1 21 ) - (1 21 ) Changes of Benefit Terms - - - Difference Between Expected
and Actual Experience (2,01 1 ) - (2,01 1 ) Contribution - Employer - 1 ,437 (1 ,437) Contribution - Employee - - - Net Investment Income - 2,1 44 (2,1 44) Benefit Payments (1 ,437) (1 ,437) - Administrative Expenses - (8) 8 Other M iscellaneous Expense - - - Net Changes (1 ,1 35) 2,1 35 (3,270) Balance - End of Year 22,937 $ 1 8,424 $ 4,51 3 $ (M easurement Date December 31 , 2023)
Primary Government
Increase (Decrease)

7. OPEB Discount Rate Sensitivity
The following presents the Agency’s Net OPEB liability, as well as what the net OPEB liability would be if it were calculated us ing healthcare cost trends that are 1 percentage point lower or higher than the current discount rate.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate 1% Decrease Current 1% Increase
Rate Discount Rate Rate

5.15% 6.15% 7.15%
Net OPEB Liability - Primary
Government 7,158 $ 4,513 $ 2,305 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(70)

NOTE 3 OTHER INFORMATION (CONTINUED)
C. Postemployment Health Benefits (OPEB) (Continued)

7. OPEB Discount Rate Sensitivity (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate for Health Care Costs
1% Decrease Current Rates 1% Increase

5.00% 6.00% 7.00%
Decreasing to Decreasing to Decreasing to

2.90% 3.90% 4.90%
Net OPEB Liability - Primary
Government 2,787 $ 4,513 $ 6,753 $

8. OPEB Expense and Deferred outflows/inflows of Resources Related to OPEB Deferred Resources as of Fiscal Year-End and Expected Future Recognition The exhibit below shows deferred resources as of the fiscal year ended December 31, 2024. All contributions subsequent to the measurement date will be recorded in OPEB expense in the following y ear and are excluded from the following amortization table.

Deferred Deferred
Outflows of Inflows of
Resources Resources
Contributions Subsequent to
Measurement Date 1,633 $ - $
Differences Between Actual and
Expected Experience - (1,740)
Changes in Assumptions 245 (97)
Net Differences Between Projected and Actual - - Earnings on Pension Plan Investments 1,077 - Total 2,954 $ (1,837) $
Primary Government

Year Ending December 31,
Primary
Government
Amount
2025 (27) $
2026 46
2027 299
2028 (612)
2029 (222)

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(70)

NOTE 3 OTHER INFORMATION (CONTINUED)
D. Commitments and Contingencies

1. Mortgage Insured Bonds
The City and the County of Sacramento, between 1980 and 2024, issued multifamily mortgage bonds totaling $21,797,445. The bonds were issued to provide funds for the purchase of home mortgages in the Sacramento County area. The Agency was appointed by the City and the County of Sacramento to administer the mortgage revenue bond program. As a public entity, the Agency can issue tax-exempt bonds, the proceeds of which can provide acquisition, construction, and permanent financing for multi-family housing projects. Interest paid on the bonds is exempt from federal and state income tax, so bondholders will accept a below-market yield from the bonds. These savings are, in turn, passed on to the project owner in the form of a below-market rate loan, with interest rates approximately one to two percent below prevailing market rates. As a conduit issuer, the bonds do not constitute a liability of the Agency, but are instead secured solely by the project financed with the bonds.

2. Litigation
The Agency is a defendant in various litigation matters. Of these matters, management and the Agency’s legal counsel is unaware of any matter that will have a material effect to the December 31, 2024 financial statements if there were to be an unfavorable outcome against the Agency.

3. Contractual Obligations
At December 31, 2024, the outstanding contractual obligations for the Agency are $68,480,227. These obligations are primarily for housing operations, project site improvements, and structural rehabilitation.

4. Contingent Liabilities
The Agency receives funding from a number of federal, state, and local assistance programs, comprised principally of Community Development Block Grants and Housing and Urban Development Housing Programs. These programs are subject to financial and compliance review by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the Agency expects such amounts, if any, to be immaterial. Receipt of these federal, state, and local grant revenues is not assured in the future.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(71)

NOTE 4 BLENDED COMPONENT UNITS CONDENSED FINANCIAL INFORMATION Condensed combining statements for the Authority and its blended component units as of December 31, 2024 are shown below:

LIABILITIES
Current Liabilit ies 16,482 1 1 ,720 1 28,894 1 7,992 75,089 Noncurrent Liabilities 46,300 21 ,963 - - 23,452 91 ,71 5 Total Liabilities 62,782 33,683 1 28,894 41 ,444 1 66,804 Deferred Inflows of Resources 371 586 - - - 957

NET POSITION
Net Investment in Capital Assets 88,324 34,01 2 - 29,854 1 3,025 1 65,21 5 Restricted 4,277 957 - - 3,348 8,582 Unrestricted 1 1 6,676 31 ,343 1 ,604 (1 5,339) (1 4,329) 1 1 9,955 Total Net Position 209,277 $ 66,31 2 $ 1 ,604 $ 1 4,51 5$ 2,044 $ 293,752 $ Condensed St at ement s of Net Posit ion

Housing A ut horit y Housing A ut horit y Foundat ion Sacrament o Norwood of t he of t he Unit ing Needs Housing A ut horit y A venue Housing City of County of and Dollars Repositioning Corporation and Sacramento Sacramento (FUND, Inc.) Program, Inc. Affiliated Entities Total Operat ing Revenues 39,695 $ 245,427 $ 796 $ 5,649 $ 8,063 $ 299,630 $ Operat ing Expenses (52,473) (256,282) (3) (4,266) (9,221 ) (322,245) Operat ing Income (Loss) (12,778) (1 0,855) 793 1 ,383 (1 ,1 58) (22,61 5) Nonoperat ing Revenues (Expenses) 2,772 1 ,1 79 1 (38) - 3,91 4 Gain (Loss) Before Capital
Cont ribut ions and Transf ers (10,006) (9,676) 794 1 ,345 (1 ,1 58) (1 8,701 ) Capit al Cont ribut ions and Transf ers 4,872 3,1 38 792 - (635) 8,1 67 Change in Net Posit ion (5,134) (6,538) 1 ,586 1 ,345 (1 ,793) (1 0,534) Net Position, 1 2/31 /24, Restated 21 4,41 1 72,850 1 8 1 3,1 70 3,837 304,286 Net Position - End of Year 209,277 $ 66,31 2 $ 1 ,604 $ 1 4,51 5$ 2,044 $ 293,752 $ and Changes in Net Posit ion
Condensed St at ement s of Revenues, Expenses,

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(72)

NOTE 4 BLENDED COMPONENT UNITS CONDENSED FINANCIAL INFORMATION (CONTINUED)
Housing A ut horit y Housing A ut horit y Foundat ion Sacrament o Norwood of t he of t he Unit ing Needs Housing A ut horit y A venue Housing City of County of and Dollars Repositioning Corporation and Sacramento Sacramento (FUND, Inc.) Program, Inc. Affiliated Entities Total Cash Flows From Operating Activities (1 3,004)$ (9,897) $ 1 ,586 $ 3,946 $ (31 1 ) $ (1 7,680)$ Cash Flows From Noncapital
Financing Act ivit ies - - - - (972) (972) Cash Flows From Capital
and Relat ed Financing A ct ivit ies (7,400) (6,439) - (4,71 3) - (1 8,552) Cash Flows From Investing
Activities 1 ,448 - - 897 (603) 1 ,742 Change In Cash and
Cash Equivalent s (18,956) (1 6,336) 1 ,586 1 30 (1 ,886) (35,462) Cash And Cash Equivalents -
B eginning Of Y ear 31,959 27,341 1 9 5,230 3,524 68,073 Cash And Cash Equivalents -
End Of Year 1 3,003 $ 1 1 ,005 $ 1 ,605 $ 5,360 $ 1 ,638 $ 32,61 0 $

RECONCILIATION OF CHANGES

IN OPERATING INCOM E (LOSS)

TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES
Operat ing Income (Loss) (2,552) $ (2,950) $ 1 ,586 $ 3,01 9 $ (1 ,81 1 )$ (2,708) $ A djust ment s t o Reconcile Operat ing
Income (Loss) to Net Cash Provided
(Used) by Operat ing A ct ivit ies:

Depreciation 1 ,972 1 ,804 - 981 1 ,704 6,461 Decrease (Increase) in
Operat ing Asset s (28,536) (22,032) - (655) 289 (50,934) Increase (Decrease) in
Operating Liabilities 1 6,1 1 2 1 3,281 - 601 (492) 29,502 Tot al A djust ment s (10,452) (6,947) - 927 1 ,501 (1 4,971 ) Net Cash Provided (Used)
by Operat ing A ct ivit ies (13,004)$ (9,897) $ 1 ,586 $ 3,946 $ (31 1 ) $ (1 7,680)$ Condensed St at ement s of Cash Flows

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(73)

NOTE 5 CHANGE IN REPORTING ENTITY AND CORRECTION OF ERROR During fiscal year 2024, all governmental funds, enterprise funds, and internal service funds were moved to a single reporting unit. The reason for this change is management wanted to be consistent with HUD’s guidance on presenti ng housing authorities as proprietary funds.

This also included adding a statement of cash flows for the discretely presented component units. In addition, the discretely presented component units adjusted beginning net position due to a correction of an error related assets and liabilities that were not properly disposed or transferred in prior year during the sale of Riverview Plaza Associates properties. This correction of error impacted several asset and liability accounts.

Governmental Business-Type Component
Activities Activities Unit
Fund Balance / Net Position January 1, 2024,
as Previously Stated 440,223 $ 257,650 $ 1,276 $ Change Within Financial Reporting Entity (440,223) 440,223 - Correction of an Error - - (63) Net Position January 1, 2024, as Restated - $ 697,873$ 1,213 $

NOTE 6 RESTATEMENT OF PREVOUSLY ISSUED FINANCIAL STATEMENTS Subsequent to the financial statements being issued, an error was identified related to the inclusion of a related component unit. The component unit should have been included in the financial statements as a discretely presented component unit.

The impact of the restatement on the statement of net position and statement of activities as of and for the year ended December 31, 2024, is presented below. The restatement had no impact on beginning net position.

Component
Units Component
As Previously Units
Reported As Restated Change
Assets 1,107 $ 46,218 $ 45,111 $
Liabilities 3 47,637 47,634
Net Position 1,104 (1,422) (2,526) Revenue 3 360 357
Expenses 5 2,884 2,879

(74)

REQUIRED SUPPLEMENTARY INFORMATION

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
SCHEDULE OF THE AGENCY’S CHANGES IN NET PENSION LIABILITY AS OF JUNE 30 OF THE LAST TEN YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)

(75)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

TOTAL PE NSION LIABILITY
Service Cost 1,786 $ 1,767 $ 2,014 $ 2,163 $ 2,345 $ 2,194 $ 2,238 $ 2,722 $ 3,112 $ 3,004 $ Interest on Total Pension Liability 10,507 10,801 11,010 11,295 11,784 12,040 12,112 12,467 12,945 13,239 Changes of Assumptions (2,432) - 8,574 (823) - - - 4,681 - - Changes of Benefit Terms - - - - - - - - 335 - Differences betw een Expected
and Actual Experience (1,856) (641) (261) 465 2,768 (246) (145) 357 2,760 498 Benefit Payments, Including Refunds
of Employee Contributions (7,603) (7,996) (8,418) (9,102) (9,855) (10,585) (10,687) (11,307) (11,817) (12,572) Other Miscellaneous Income (Expense) - - - - - - - - 182 - Net Change in Total Pension Liability 402 3,931 12,919 3,998 7,042 3,403 3,518 8,921 7,516 4,169 Total Pension Liability -
Beginning of Year 144,545 144,947 148,878 161,797 165,795 172,837 176,240 179,759 188,680 196,196 Total Pension Liability - End of Year (a) 144,947$ 148,878 $ 161,797 $ 165,795 $ 172,837 $ 176,240 $ 179,759 $ 188,680 $ 196,196 $ 200,365 $

PLAN FIDUCIARY NET POSITION
Contributions - Employer 1,976 $ 2,358 $ 2,937 $ 3,333 $ 3,892 $ 4,459 $ 5,076 $ 5,684 $ 6,081 $ 6,380 $ Contributions - Employee 814 922 910 1,012 1,040 1,032 1,193 1,379 1,334 1,614 Net I nvestm ent I ncom e 2,611 608 12,134 9,751 7,811 6,066 27,601 (10,973) 8,094 12,783 Benefit Payments, Including Refunds
of Employee Contributions (7,603) (7,996) (8,418) (9,102) (9,855) (10,585) (10,687) (11,307) (11,817) (12,572) Administrative Expense (128) (70) (162) (182) (87) (174) (123) (91) (96) (108) Other Miscellaneous Income (Expense) - - - (346) - - - - - - Net Change in Fiduciary Net Position (2,330) (4,178) 7,401 4,466 2,801 798 23,060 (15,308) 3,595 8,097 Plan Fiduciary Net Position -
Beginning of Year 116,199 113,869 109,691 117,092 121,558 124,359 125,157 148,217 132,909 136,504 Plan Fiduciary Net Position -
End of Year (b) 113,869 $ 109,691 $ 117,092 $ 121,558 $ 124,359 $ 125,157 $ 148,217 $ 132,909 $ 136,504 $ 144,601 $ Plan Net Pension Liability (a) - (b) 31,078 $ 39,187 $ 44,705 $ 44,237 $ 48,478 $ 51,083 $ 31,542 $ 55,771 $ 59,692 $ 55,764 $ Plan Fiduciary Net Position as a
Percentage of the Total Pension 78.56% 73.68% 72.37% 73.32% 71.95% 71.02% 82.45% 70.44% 69.58% 72.17% Covered Payroll 11,897 $ 11,807 $ 12,168 $ 13,264 $ 14,196 $ 13,268 $ 13,783 $ 15,467 $ 17,731 $ 17,161 $ Plan Net Pension Liability (Asset) as a
Percentage of Covered Payroll 261.23% 331.90% 367. 40% 333.51% 341.49% 385.01% 228.85% 360.58% 336.65% 324.94%

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes that occurred on or before the Measurement Date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credits (a.k.a. Golden Handshakes).

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. None in 2020 or 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5% discount rate.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
SCHEDULE OF AGENCY CONTRIBUTIONS – PENSION
AS OF JUNE 30 OF THE LAST TEN YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)

(76)

Contributions in
Relation to the Contributions as
Actuarially Actuarially Contribution a Percentage of
Fiscal Determined Determined Deficiency Covered Covered Year Ending Contribution (1) Contribution (1) (Excess) Payroll Payroll 6/30/2014 1,976$ (1,976) $ - $ 11,897$ 16.61% 6/30/2015 2,358 (2,358) - 11,807 19.97% 6/30/2016 2,937 (2,937) - 12,168 24.14% 6/30/2017 3,333 (3,333) - 13,264 25.13% 6/30/2018 3,892 (3,892) - 14,196 27.42% 6/30/2019 4,460 (4,460) - 13,268 33.61% 6/30/2020 5,075 (5,075) - 13,783 36.82% 6/30/2021 5,684 (5,684) - 15,467 36.75% 6/30/2022 6,080 (6,080) - 17,731 34.29% 6/30/2023 6,380 (6,380) - 17,162 37.18%

(1) Employers are assumed to make contributions equal to the actuarially determined contributions.

However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Notes to Schedule of Plan Contributions:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report, applicable to all years presented above.

Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization For details, see June 30, 2021 Funding Valuation Report.

Method/Period:

Asset Valuation Method Fair Value of Assets. For details, see June 30, 20201 Funding Valuation Report
Inflation 2.3%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.8%
Investment Rate of Return 6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation
Retirement Age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
SCHEDULE OF THE AGENCY’S CHANGES IN NET OPEB LIABILITY
LAST TEN FISCAL YEARS ENDED DECEMBER 31*
(AMOUNTS EXPRESSED IN THOUSANDS)

(77)

Reporting Year Reporting Year Reporting Year Reporting Year Reporting Year Reporting Year Reporting Year (Measurement Date) (Measurement Date) (Measurement Date) (Measuremen t Date) (Measurement Date) (Measurement Date) (Measurement Date) 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 (12/31/2017) (12/31/2018) (12/31/2019) (12/31/2020) (12/31/2021) (12/31/2022) (12/31/2023)

TOTAL OPEB LIABILITY
Service Cost 368 $ 380 $ 435 $ 408 $ 462 $ 921 $ 949 $ Interest on Total OPEB Liability 1,296 1,300 1,256 1,192 1,152 1,439 1,486 Change in Benefit Terms - - - - 4,095 - - Changes in Assumptions - 910 (242) 853 270 - (121) Differences between Expected (782) - (146) - (2,011) and Actual Experience 38 - - - - - - Change in Benefit Terms
Benefit Payments (1,587) (1,746) (1,652) (1,594) (1,590) (1,671) (1,437) Net Change in Total OPEB Liability 115 844 (985) 859 4,244 689 (1,135) Total OPEB Liability - Beginning of Year 18,306 18,421 19,265 18,280 19,139 23,383 24,072 Total OPEB Liability - End of Year 18,421 $ 19,265 $ 18,280 $ 19,139 $ 23,383 $ 24,072 $ 22,937 $

PLAN FIDUCIARY NET POSITION
Contributions - Employer 1,587 $ 1,747 $ 1,652 $ 1,522 $ 1,590 $ 1,671 $ 1,437 $ Contributions - Employee - - - - - - -

Net Investment Income 1,926 (936) 2,717 2,038 2,366 (3,345) 2,144 Benefit Payments, Including Refunds
of Employee Contributions (1,587) (1,747) (1,652) (1,522) (1,590) (1,671) (1,437) Administrative Expense (6) (6) (7) (7) (9) (8) (8) Net Change in Plan Fiduciary Net Position 1,920 (942) 2,710 2,030 2,357 (3,354) 2,135 Plan Fiduciary Net Position -
Beginning of Year 11,568 13,488 12,546 15,256 17,286 19,643 16,289 Plan Fiduciary Net Position -
End of Year 13,488 $ 12,546 $ 15,256 $ 17,286 $ 19,643 $ 16,289 $ 18,424 $ Net OPEB Liability - End of Year 4,933 $ 6,719 $ 3,024 $ 1,853 $ 3,740 $ 7,783 $ 4,512 $ Plan Fiduciary Net Percentage as a
Percentage of the Total OPEB Liability 73.22% 65.12% 83.46% 90.32% 84.01% 67.67% 80.33% Covered Payroll 13,809 $ 14,461 $ 14,825 $ 14,936 $ 16,415 $ 19,022 $ 19,022 $ Net OPEB Liability as a
Percentage of Covered Payroll 35.72% 46.46% 20.40% 12.41% 22.78% 40.91% 23.72%

Note to Schedule:

Change in Assumptions:
*Historical information is required only for the measurement periods for which GASB 75 is applicable.

Future years’ information will be displayed up to 10 years as information becomes available.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
SCHEDULE OF AGENCY CONTRIBUTIONS – OPEB
LAST TEN FISCAL YEARS ENDED DECEMBER 31*
(AMOUNTS EXPRESSED IN THOUSANDS)

(78)

Contributions as
Actuarially Contributions Contribution a Percentage of
Fiscal Determined Relation to the Deficiency Covered Covered Year Ending Contribution (ADC) ADC (Excess) Payroll Payroll 12/31/2018 862 $ 1,747 $ (885) $ 14,460 $ 12.08% 12/31/2019 813 1,652 (839) 14,825 11.14% 12/31/2020 693 1,522 (829) 14,936 10.19% 12/31/2021 706 1,589 (883) 16,415 9.68% 12/31/2022 720 1,670 (950) 19,022 8.78% 12/31/2023 1,266 1,437 (171) 18,932 7.59% 12/31/2024 1,296 1,633 (337) 18,123 9.01%

*Historical information is required only for the measurement periods for which GASB 75 is applicable.

Future years’ information will be displayed up to 10 years as information becomes available.

(79)

SUPPLEMENTARY INFORMATION

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF NET POSITION – CITY
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(80)

Line Family Section 8 Emergency Blended Total Discrete Total Item Project Shelter Self Moderate Rental State/ Component Business Enterprise Component Reporting # Accounts Description Totals Plus Care Sufficiency Rehab Assistanc e ROSS Local Unit Activities COCC Elimination Fund Units Entity

CURRENT ASSETS
Cash:
111 Unrestricted 9,620,100 $ - $ - $ 146,419$ 56,530 $ - $ 179,130$ 11,817,620$ 1,289,021 $ - $ - $ 23,108,820$ 107,451 $ 23,216,271$ 113 Other Restricted - - - - - - - 1,601,986 892,828 - - 2,494,814 - 2,494,814 114 Tenant Security Deposits 330,153 - - - - - - 239,798 142,145 - - 712,096 - 712,096 115 Restricted for Payment of Current Liabilities - - - - - - - 1,873,418 - - - 1,873,418 - 1,873,418 100 Total Cash 9,950,253 - - 146,419 56,530 - 179,130 15,532,822 2,323,994 - - 28,189,148 107,451 28,296,599 Accounts and Notes Receivable:
122 HUD Other Projects 6,509,585 - 109,739 - - 116,987 - - - - - 6,736,311 - 6,736,311 124 Other Government 1,822 - - - - - - - 304,544 - - 306,366 - 306,366 125 Miscellaneous 1,402 - - - - - - 2,961,667 5,479,651 283,312 - 8,726,032 29 8,726,061 126 Tenants 1,275,905 - - - - - - 646,225 4,810,791 - - 6,732,921 - 6,732,921 126.1 Allowance for Doubtful Accounts - Tenants (148,648) - - - - - - (50,409) (456,228) - - (655,285) - (655,285) 126.2 Allowance for Doubtful Accounts - Other (2,015) - - - - - - - - - - (2,015) - (2,015) 129 Accrued Interest Receivable - - - - - - - - 6,036,490 - - 6,036,490 - 6,036,490 120 Total Receivables, Net of
Allowances for Uncollectible 7,638,051 - 109,739 - - 116,987 - 3,557,483 16,175,248 283,312 - 27,880,820 29 27,880,849 131 Investments - Restricted - - - - - - - - - - - - - - 132 Investments - Restricted 347,745 - - - - - - - - - - 347,745 - 347,745 142 Prepaid Expenses and Other Assets - - - - - - - 258,928 291,151 - - 550,079 - 550,079 144 Inter Program Due From 1,000,000 - - - - - 6,475,701 203,081 35,079,387 - (42,758,169) - - - 150 Total Current Assets 18,936,049 - 109,739 146,419 56,530 116,987 6,654,831 19,552,314 53,869,780 283,312 (42,758,169) 56,967,792 107,480 57,075,272

NONCURRENT ASSETS
Capital Assets:
161 Land 3,508,200 - - - - - - 8,285,648 5,533,339 - - 17,327,187 - 17,327,187 162 Buildings 69,081,879 - - - - - - 65,407,093 15,234,853 - - 149,723,825 - 149,723,825 163 Furniture, Equipment, and Machinery - 709,745 - - - - 2,502 - - 42,066 - - 754,313 - 754,313 Dwelling - - - - - - - - - - - - - - 166 Accumulated Depreciation (38,056,970) - - - - - - (5,908,160) (8,709,935) - - (52,675,065) - (52,675,065) 167 Construction in Progress 7,396,930 - - - - - - - 185 - - 7,397,115 - 7,397,115 160 Total Capital Assets, Net of Accum Depr
Accumulated Depreciation 42,639,784 - - - - 2,502 - 67,784,581 12,100,508 - - 122,527,375 - 122,527,375 Notes, Loans, and Mortgages
171 Receivable - Noncurrent - 295,000 - - - - 2,473,967 - 88,386,717 - - 91,155,684 1,000,000 92,155,684 174 Other Assets - - - - - - - 124,132 - - - 124,132 - 124,132 180 Total Noncurrent Assets 42,639,784 295,000 - - - 2,502 2,473,967 67,908,713 100,487,225 - - 213,807,191 1,000,000 214,807,191 200 Deferred Outflows of Resources 732,367 - - - - - - - 722,913 200,222 - 1,655,502 - 1,655,502 290 Total Assets and Deferred Outflows
of Resources 62,308,200 $ 295,000 $ 109,739 $ 146,419 $ 56,530 $ 119,489 $ 9,128,798 $ 87,461,027 $ 155,079,918 $ 483,534 $ (42,758,169)$ 272,430,485 $ 1,107,480 $ 273,537,965 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF NET POSITION – CITY (CONTINUED)
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(81)

Line Family Section 8 Emergency Blended Total Discrete Total Item Project Shelter Self Sufficiency Moderate Rental State/ Component Business Enterprise Component Reporting # Accounts Description Totals Plus Care Program Rehab Assistance ROSS Local Unit Activities COCC Elimination Fund Units Entity

CURRENT LIABILITIES
312 Accounts Payable < 90 Days 1,666,834 $ - $ - $ - $ 6,672$ 554 $ 352 $ 2,349,350$ 758,001 $ 13,523 $ - $ 4,795,286$ 141 $ 4,795,427$ 321 Accrued Wage/Payroll Taxes Payable 77,497 - - - 1,384 5,408 - - 142,248 32,047 - 258,584 - 258,584 325 Accrued Interest Payable - - - - - - - 6,127,314 - - - 6,127,314 - 6,127,314 341 Tenant Security Deposits 339,736 - - - - - - 239,798 142,595 - - 722,129 - 722,129 342 Deferred Revenues 83,690 - - - - - - 222,735 880,479 - - 1,186,904 - 1,186,904 343 Current Portion of Long-Term Debt - Capital - - - - - - - 889,999 - - - 889,999 - 889,999 345 Other Current Liabilities 54,369 - - - - - 123,071 170,000 1,617,728 103,972 - 2,069,140 3,358 2,072,498 346 Accrued Liabilities - Other 59,419 - - - - - 1,400 15,500 356,201 - - 432,520 - 432,520 347 Interprogram (Due to) 4,762,861 - 109,739 13,696 82,756 218,629 2,215,405 27,010,356 8,161,882 182,845 (42,758,169) - - - 310 Total Current Liabilities 7,044,406 - 109,739 13,696 90,812 224,591 2,340,228 37,025,052 12,059,134 332,387 (42,758,169) 16,481,876 3,499 16,485,375

NONCURRENT LIABILITIES
351 Capital Projects / Mortgage Revenue Bonds - - - - - - - 33,313,793 - - - 33,313,793 - 33,313,793 353 Noncurrent Liabilities - Other 347,746 - - - - - 170,000 - 470,536 - - 988,282 - 988,282 357 Accrued Pension and OPEB Liabilities 5,338,860 - - - - - - - 5,203,623 1,455,865 - 11,998,348 - 11,998,348 350 Total Noncurrent Liabilities 5,686,606 - - - - - 170,000 33,313,793 5,674,159 1,455,865 - 46,300,423 - 46,300,423 300 Total Liabilities 12,731,012 - 109,739 13,696 90,812 224,591 2,510,228 70,338,845 17,733,293 1,788,252 (42,758,169) 62,782,299 3,499 62,785,798 400 Deferred Inflows of Resources 160,686 - - - - - - - 166,441 44,190 - 371,317 - 371,317 EQUITY
508.4 Net Investment in Capital Assets 42,639,784 - - - - 2,502 - 33,580,789 12,100,508 - - 88,323,583 - 88,323,583 511.4 Restricted Net Position - - - - - - - 3,347,604 929,206 - - 4,276,810 - 4,276,810 512.4 Unrestricted Net Position 6,776,718 295,000 - 132,723 (34,282) (107,604) 6,618,570 (19,806,211) 124,150,470 (1,348,908) - 116,676,476 1,103,981 117,780,457 513 Total Equity/Net Position 49,416,502 295,000 - 132,723 (34,282) (105,102) 6,618,570 17,122,182 137,180,184 (1,348,908) - 209,276,869 1,103,981 210,380,850 600 Total Liabilities, Deferred Inflows and
Equity/Net Position 62,308,200 $ 295,000 $ 109,739 $ 146,419 $ 56,530 $ 119,489 $ 9,128,798 $ 87,461,027 $ 155,079,918 $ 483,534 $ (42,758,169)$ 272,430,485 $ 1,107,480 $ 273,537,965

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – CITY YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(82)

REVENUE
70300 Net Tenant Rental Revenue 3,020,073 $ - $ - $ - $ - $ - $ - $ 2,824,530$ 690,844 $ - $ - $ 6,535,447$ - $ 6,535,447$ 70400 Tenant Revenue - Other 131,618 - - - - - - 68,062 31,846 - - 231,526 - 231,526 70500 Total Tenant Revenue 3,151,691 - - - - - - 2,892,592 722,690 - - 6,766,973 - 6,766,973 70600 HUD PHA Operating Grants 6,579,247 - 109,739 132,083 - 116,987 - 8,713,411 501,285 - - 16,152,752 - 16,152,752 70610 Capital Grants 4,871,532 - - - - - - - - - - 4,871,532 - 4,871,532 70710 Management Fees - - - - - - - - - 1,037,438 (1,037,438) - - - 70720 Asset Management Fees - - - - - - - - - 90,120 (90,120) - - - 70730 Bookkeeping Fees - - - - - - - - - 110,288 (110,288) - - - 70750 Other Fee Revenue - - - - - - - - - 350,000 (350,000) - - - 70800 Other Governmental Grants - - - - 1,062,281 - - - 4,500,000 - - 5,562,281 - 5,562,281 71100 Investment Income - Unrestricted 339,395 - - 4,098 - - 127,904 - 3,122,605 8,696 - 3,602,698 - 3,602,698 71300 Proceeds from Disposition of Assets Held for Sale - - - - - - - - - - - - - - 71500 Other Revenue 1,084,679 - - - 1,918 - - 2,191,200 6,914,719 1,020,941 - 11,213,457 4,500 11,217,957 71600 Gain or Loss on the Sale of Fixed Assets - - - - - - - - - - - - - - 72000 Investment Income - Unrestricted 504,732 - (5) (2,660) 43,263 - 178,525 - 85,186 36,084 - 845,125 5,810 850,935 70000 Total Revenue 16,531,276 - 109,734 133,521 1,107,462 116,987 306,429 13,797,203 15,846,485 2,653,567 (1,587,846) 49,014,818 10,310 49,025,128

EXPENSES
Administrative:
91100 Administrative Salaries 1,768,191 - 26,810 - 18,600 108,135 - 953,902 1,789,083 489,913 - 5,154,634 - 5,154,634 91200 Auditing Fees 9,678 - - - - - - 29,783 59,780 2,876 - 102,117 3,150 105,267 91300 Management Fee 931,613 - - - - - - - 105,825 - (1,037,438) - - - 91310 Bookkeeping Fee 99,038 - - - - - - - 11,253 - (110,291) - - - 91400 Advertising and Marketing 1,289 - - - - - - - 114 268 - 1,671 - 1,671 91500 Employee Benefit Contributions - Administrative 1,410,738 - 46,851 - 19,229 72,445 - 147,756 2,324,479 - - 4,021,498 - 4,021,498 91600 Office Expenses 184,783 - - - 13,495 8,194 - 5,759 94,555 7,339 - 314,125 - 314,125 91700 Legal Expense 160,152 - - - - - - 7,000 39,870 - - 207,022 - 207,022 91800 Travel 4,864 - - - - 976 - 2,345 7,354 52 - 15,591 - 15,591 91900 Other 729,656 - - - 548,876 - - 218,466 3,521,604 1,450,127 (350,000) 6,118,729 - 6,118,729 Total Administrative 5,300,002 - 73,661 - 600,200 189,750 - 1,365,011 7,953,917 1,950,575 (1,497,729) 15,935,387 3,150 15,938,537 92000 Asset Management Fee 90,120 - - - - - - - - - (90,120) - - - Tenant Services:
92200 Relocation Costs 756,169 - - - - - 5,554 50,173 229,069 - - 1,040,965 - 1,040,965 92400 Other 159,245 - - - - 1,730 - 1,810,339 549,383 20,267 - 2,540,964 - 2,540,964 Total Tenant Services 915,414 - - - - 1,730 5,554 1,860,512 778,452 20,267 - 3,581,929 - 3,581,929 Utilities:
93100 Water 484,923 - - - - - - 173,069 377,848 - - 1,035,840 - 1,035,840 93200 Electricity 401,946 - - - - - - 613,905 369,881 602 - 1,386,334 - 1,386,334 93300 Gas 121,464 - - - - - - 17,193 117,017 - - 255,674 - 255,674 93600 Sewer 925,973 - - - - - - 226,824 669,661 - - 1,822,458 - 1,822,458 93800 Other Utilities Expense 443,895 - - - - - - 139,450 326,413 - - 909,758 - 909,758 Total Utilities 2,378,201 - - - - - - 1,170,441 1,860,820 602 - 5,410,064 - 5,410,064 Ordinary Maintenance and Operations:
94100 Labor (3) - - - - - (1) - 44,382 - - 44,378 132 44,510 94200 Materials and Other 1,046,904 - - - - 810 - 637,020 489,502 66,459 - 2,240,695 - 2,240,695 94300 Contracts 5,479,430 - - - - - (1) 2,722,547 2,562,673 - - 10,764,649 - 10,764,649 Total Ordinary Maintenance and Operations 6,526,331 - - - - 810 (2) 3,359,567 3,096,557 66,459 - 13,049,722 132 13,049,854 Protective Services:
95200 Other Contract Costs 543,995 - - - - - - 4,936 199,906 - - 748,837 - 748,837 95300 Other 179,806 - - - - - - 29,242 196,367 - - 405,415 - 405,415 Total Protective Services 723,801 - - - - - - 34,178 396,273 - - 1,154,252 - 1,154,252

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – CITY (CONTINUED) YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(83)

Family Section 8 Emergency Blended Total Discrete Total Line Project Shelter Self Sufficiency Moderate Rental State/ Component Business Enterprise Component Reporting Item # Accounts Description Totals Plus Care Program Rehab Assistance ROSS Local Unit Activities COCC Elimination Fun d Units Entity EXPENSES (Continued)
Insurance Premiums
96110 Property Insurance - $ - $ - $ - $ - $ - $ - $ 69,024$ 236,500 $ - $ - $ 305,524$ - $ 305,524$ 96120 Liability Insurance 6,721 - - - - - - 40,309 52,921 - - 99,951 - 99,951 96130 Workmen's Compensation 74,154 - 936 - 375 1,456 - 10,144 69,051 11,601 - 167,717 - 167,717 96140 All Other Insurance 401,472 - - - - - - 765 77,920 5,419 - 485,576 - 485,576 96100 Total Insurance Premiums 482,347 - 936 - 375 1,456 - 120,242 436,392 17,020 - 1,058,768 - 1,058,768 General Expenses:
96200 Other General Expenses - - 21,319 20,780 2,998 1,872 16,192 2,342,457 1,557,474 181,348 - 4,144,440 208 4,144,648 96210 Compensated Absences - - 14,144 - 5,362 25,535 - 62,332 571,393 153,866 - 832,632 - 832,632 96300 Payments in Lieu of Taxes - - - - - - - - - - - - - - 96400 Bad Debt - Tenant Rents 65,305 - - - - - - 77,597 274,374 - - 417,276 - 417,276 96600 Bad Debt - Other - - - - - - 123,071 - - - - 123,071 - 123,071 96000 Total General Expenses 65,305 - 35,463 20,780 8,360 27,407 139,263 2,482,386 2,403,241 335,214 - 5,517,419 208 5,517,627 96720 Interest on Notes Payable - - - - - - - 1,183,287 492,478 - - 1,675,765 - 1,675,765 96900 Total Operating Expenses 16,481,521 - 110,060 20,780 608,935 221,153 144,815 11,575,624 17,418,130 2,390,137 (1,587,849) 47,383,306 3,490 47,386,796

EXCESS OF OPERATING REVENUE
OVER OPERATING EXPENSES 49,755 - (326) 88,954 498,527 (104,166) 161,614 2,221,579 (1,571,645) 263,430 3 1,607,725 6,820 1,614,545 97100 Extraordinary Maintenance 1,427,941 - - - - - 100,975 211,162 527,994 - - 2,268,072 - 2,268,072 97200 Casualty Losses - Noncapitalized - - - - - - - - - - - - - - 97300 Housing Assistance Payments 226,594 - - 137,711 458,714 - - - 12,870 - - 835,889 - 835,889 97400 Depreciation Expense 1,613,077 - - - - - - 1,894,966 269,348 - - 3,777,391 - 3,777,391 97700 Debt Principal Repayment - - - - - - - - - - - - - - 90000 Total Expenses 19,749,133 - 110,060 158,491 1,067,649 221,153 245,790 13,681,752 18,228,342 2,390,137 (1,587,849) 54,264,658 3,490 54,268,148 Other Financing Sources (Uses):
10010 Operating Transfer In 4,194,529 - - - 115,304 - - - - - (4,309,833) - - - 10020 Operating Transfer Out (4,194,529) - - - - - - - - - 4,309,833 115,304 (115,304) - 10030 Operating Transfers from/to Primary Government - - - - - - - - - - - - - - 10100 Total Other Financing Sources (Uses) - - - - 115,304 - - - - - - 115,304 (115,304) - 10000 EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENSES (3,217,857)$ - $ (326)$ (24,970)$ 155,117 $ (104,166) $ 60,639 $ 115,451 $ (2,381,857)$ 263,430 $ 3 $ (5,134,536)$ (108,484) $ (5,243,020) $ Memo Account Information
11020 Required Annual Debt Principal Payments - - - - - - - - - - - - - - 5084:5124 Beginning Equity 52,634,359 295,000 326 157,693 (189,399) (936) 6,557,931 17,006,731 139,562,041 (1,612,338) - 214,411,408 1,275,576 215,686,984 11040 Prior Period Adjustments, Equity - - - - - - - - - - - - (63,111) (63,111)

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF NET POSITION – COUNTY
DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(84)

Resident
Line PIH Family Opportunity Housing Emergency Emergency Choice Total Item Project Continuum FSS Self Supportive Choice Housing Mainstream Rental State/ Neighborhood Business Central Office Reporting # Accounts Description Totals of Care Forfeitures Sufficiency Services Vouchers Vouchers Vouchers Assistance Local Grants Activities Cost Cen ter Elimination Entity

CURRENT ASSETS
Cash:
111 Unrestricted 212,408 $ 2,051 $ 23,844 $ - $ - $ 156,039$ 647,093 $ 128,677 $ 171,200 $ 4,789,453 $ - $ 644,634$ 984,005 $ - $ 7,759,404$ 113 Other Restricted - - - - - 275,784 48,960 - - 2,130,081 - 456,873 - - 2,911,698 114 Tenant Security Deposits 184,324 - - - - - - - - - - 6,988 - - 191,312 100 Total Cash 396,732 2,051 23,844 - - 431,823 696,053 128,677 171,200 6,919,534 - 1,108,495 984,005 - 10,862,414 Accounts and Notes Receivable:
121 PHA Projects - - - - - 367,034 - - - - - - - - 367,034 122 HUD Other Projects 3,726,936 3,684,153 - 176,300 - - - - - - - - - - 7,587,389 125 Miscellaneous 348 - - - - - - - - 5,390,415 - - - - 5,390,763 126 Tenants 249,658 - - - - - - - - - - - - - 249,658 1261 Allowance for Doubtful Accounts - Tenants (45,602) - - - - - - - - - - - - - (45,602) 126.2 Allowance for Doubtful Accounts - Other - - - - - (36,703) - - - - - - - - (36,703) 128 Fraud Recovery - - - - - 148,836 - - - - - - - - 148,836 128.1 Allowance for Doubtful Accounts - Fraud - - - - - (14,884) - - - - - - - - (14,884) 120 Total Receivables, Net of
Allowances for Uncollectibles 3,931,340 3,684,153 - 176,300 - 464,283 - - - 5,390,415 - - - - 13,646,491 131 Investments - Unrestricted 77,461 - - - - - - - - 61,484 - - - - 138,945 132 Investments - Restricted 115,051 - - - - 177,991 - - - - - - - - 293,042 142 Prepaid Expenses and Other Assets - - - - - - - - - - - 132 - - 132 144 Interprogram (Due from) - - - - - - - - 61,388 8,452,673 - - 5,149,008 (13,663,069) - 145 Assets Held for Sale - - - - - - - - - - - - - - - 150 Total Current Assets 4,520,584 3,686,204 23,844 176,300 - 1,074,097 696,053 128,677 232,588 20,824,106 - 1,108,627 6,133,013 (13,663,069) 24,941,024

NONCURRENT ASSETS
Capital Assets:
161 Land 3,865,558 - - - - - - - - - - 45,302 - - 3,910,860 162 Buildings 68,626,877 - - - - - - - - - - 1,910,527 - - 70,537,404 163 Furniture, Equipment, and Machinery - Dwelling 259,553 - - - - 156,696 - - - - - - - - 416,249 164 Furniture, Equipment, and Machinery - Administration - - - - - - - - - - - - - - - 166 Accumulated Depreciation (44,476,888) - - - - (122,988) - - - - - (517,649) - - (45,117,525) 167 Construction in Progress 6,438,956 - - - - - - - - - - - - - 6,438,956 160 Total Capital Assets, Net of
Accumulated Depreciation 34,714,056 - - - - 33,708 - - - - - 1,438,180 - - 36,185,944 Notes, Loans, and Mortgages Receivable -
171 Noncurrent - - - - - - - - - 3,432,499 18,372,791 14,982,897 - - 36,788,187 180 Total Noncurrent Assets 34,714,056 - - - - 33,708 - - - 3,432,499 18,372,791 16,421,077 - - 72,974,131 200 Deferred Outflows of Resources 275,772 - - - - 1,931,786 53,536 19,781 - 321,453 - - 64,042 - 2,666,370 290 Total Assets and Deferred Outflows 39,510,412 $ 3,686,204 $ 23,844 $ 176,300 $ - $ 3,039,591$ 749,589 $ 148,458 $ 232,588 $ 24,578,058$ 18,372,791 $ 17,529,704 $ 6,197,055 $ (13,663,069) $ 100,581,525 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – COUNTY (CONTINUED) YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(85)

CURRENT LIABILITIES
312 Accounts Payable < 90 Days 491,468 $ 1,766 $ - $ - $ - $ 486,754$ 6,386 $ 3,982 $ 6,768 $ - $ 1 $ 14,362$ 6,074 $ - $ 1,017,561$ 321 Accrued Wage/Payroll Taxes Payable 35,131 5,844 - 4,234 - 285,310 7,630 5,076 40,271 48,754 - 397 11,739 - 444,386 322 Accrued Compensated Absences - - - - - - - - - - - 2,513 - - 2,513 331 Accounts Payable - HUD PHA Programs - - - - - - - - - - - - - - - 341 Tenant Security Deposits 190,870 - - - - 1,901 - - - - - 6,988 - - 199,759 342 Unearned Revenues 61,842 - - - - - 31,168 - - 458,974 - 269,105 - - 821,089 345 Other Current Liabilities - - - - - 1,082 - - - 5,839,483 1 - 3,349,998 - 9,190,564 346 Accrued Liabilities - Other 42,320 740 - - - - - - - 800 - - - - 43,860 347 Interprogram (Due to) 4,266,902 3,682,389 - 184,855 - 4,592,883 101,507 577,562 242,835 - 7,567 6,569 - (13,663,069) - 310 Total Current Liabilities 5,088,533 3,690,739 - 189,089 - 5,367,930 146,691 586,620 289,874 6,348,011 7,569 299,934 3,367,811 (13,663,069) 11,719,732

NONCURRENT LIABILITIES
351 Capital Projects / Mortgage Revenue Bonds 2,173,397 - - - - - - - - - - - - - 2,173,397 353 Noncurrent Liabilities - Other 195,425 - - - - 177,991 - - - - - - - - 373,416 357 Accrued Pension and OPEB Liabilities 2,005,134 - - - - 14,061,956 409,892 141,082 - 2,335,202 - - 463,476 - 19,416,742 350 Total Noncurrent Liabilities 4,373,956 - - - - 14,239,947 409,892 141,082 - 2,335,202 - - 463,476 - 21,963,555 300 Total Liabilities 9,462,489 3,690,739 - 189,089 - 19,607,877 556,583 727,702 289,874 8,683,213 7,569 299,934 3,831,287 (13,663,069) 33,683,287 400 Deferred Inflows of Resources 60,871 - - - - 425,276 10,375 4,558 - 71,097 - - 14,288 - 586,465 EQUITY
508.4 Net Investment in Capital Assets 32,540,659 - - - - 33,708 - - - - - 1,438,180 - - 34,012,547 511.4 Restricted Net Position - - - - - - 225,109 13,198 - 261,484 - 456,873 - - 956,664 512.4 Unrestricted Net Position (2,553,607) (4,535) 23,844 (12,789) - (17,027,270) (42,478) (597,000) (57,286) 15,562,264 18,365,222 15,334,717 2,351,480 - 31,342,562 513 Total Equity/Net Position 29,987,052 (4,535) 23,844 (12,789) - (16,993,562) 182,631 (583,802) (57,286) 15,823,748 18,365,222 17,229,770 2,351,480 - 66,311,773 600
Total Liabilities, Deferred Inflows and
Net Position 39,510,412 $ 3,686,204 $ 23,844 $ 176,300 $ - $ 3,039,591$ 749,589 $ 148,458 $ 232,588 $ 24,578,058$ 18,372,791 $ 17,529,704 $ 6,197,055 $ (13,663,069) $ 100,581,525 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – COUNTY (CONTINUED) YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(86)
Resident
PIH Family Opportunity Housing Emergenc y Emergency Choice Total Reporting Total Line Project Continuum FSS Self Supportive Choice Housing Mainstream Rental State/ Neighborhood Business Central Office Entity Before Repo rting Item # Accounts Description Totals of Care Forfeitures Sufficienc y Services Vouchers Vouchers Vouchers Ass istance Local Grants Activities Cos t Center Elimination Elimination Entity

REVENUE
70300 Net Tenant Rental Revenue 1,567,277 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,567,277$ - $ 1,567,277$ 70400 Tenant Revenue - Other 4,589 - - - - - - - - - - - - 4,589 - 4,589 70500 Total Tenant Revenue 1,571,866 - - - - - - - - - - - - 1,571,866 - 1,571,866 70600 HUD PHA Operating Grants 2,945,163 5,995,912 - 176,301 - 211,660,953 8,923,803 3,284,344 - - - - - 232,986,476 - 232,986,476 70610 Capital Grants 3,137,664 - - - - - - - - - - - - 3,137,664 - 3,137,664 70710 Management Fees - - - - - - - - - - - - 3,657,944 3,657,944 (3,657,944) - 70720 Asset Management Fees - - - - - - - - - - - - - - - - 70730 Bookkeeping Fees - - - - - - - - - - - - 1,170,368 1,170,368 (1,170,368) - 70750 Other Fee Revenue - - - - - - - - - - - - 260,000 260,000 (260,000) - 70800 Other Governmental Grants - - - - - - - - 7,051,219 - - - - 7,051,219 - 7,051,219 71100 Investment Income - Unrestricted 18,848 27 - - - 24,956 12,558 10,194 108,598 395,059 - 72,387 90,355 732,982 - 732,982 Proceeds from Disposition of
71300 Assets Held for Sale - - - - - - - - - - - - - - - - 71500 Other Revenue 383,485 - 12,767 - - 6,211 - - 550,709 2,630,645 - 2,092 186,193 3,772,102 (78,720) 3,693,382 Gain or Loss on the Sale of
71600 Fixed Assets - - - - - - - - - - - - - - - - 72000 Investment Income - Unrestricted 253,468 66 131 - - 90,270 13,787 3,321 - 29,027 (1) 58,487 15,420 463,976 - 463,976 70000 Total Revenue 8,310,494 5,996,005 12,898 176,301 - 211,906,791 8,950,148 3,297,859 7,710,526 3,054,731 (1) 132,966 5,380,280 254,928,998 (5,167,032) 249,761,966

EXPENSES
Administrative:
91100 Administrative Salaries 738,150 173,527 - 60,467 - 3,999,563 120,318 42,574 605,302 648,771 - 972 167,164 6,556,808 - 6,556,808 91200 Auditing Fees 796 - - - - 206,268 - - 44,957 5,977 - - 4,329 262,327 - 262,327 91300 Management Fee 540,343 - - - - 2,982,257 135,346 - - - - - - 3,657,946 (3,657,946) - 91310 Bookkeeping Fee 57,443 - - - - 1,112,925 - - - - - - - 1,170,368 (1,170,368) - 91400 Advertising and Marketing 27 - - - - 1,216 - - 6,711 230 - - 268 8,452 - 8,452 Employee Benefit Contributions -
91500 Administrative 285,136 99,814 - 86,505 - 3,745,858 333,876 22,598 637,156 1,692,339 - - (547,633) 6,355,649 - 6,355,649 91600 Office Expenses 106,929 - - - - 841,221 60 - 64,393 14,006 - 259 3,115 1,029,983 - 1,029,983 91700 Legal Expense 44,593 - - - - 17,813 - - - 422 - - - 62,828 - 62,828 91800 Travel 3,884 - - - - 12,873 - - - 9,014 - - 69 25,840 - 25,840 91900 Other 84,911 17,337 - 5,991 - 2,067,608 14,985 - 2,683,625 427,041 1 363,918 3,662,791 9,328,208 (338,720) 8,989,488 Total Administrative 1,862,212 290,678 - 152,963 - 14,987,602 604,585 65,172 4,042,144 2,797,800 1 365,149 3,290,103 28,458,409 (5,167,034) 23,291,375 92000 Asset Management Fee - - - - - - - - - - - - - - - - Tenant Services:
92200 Relocation Costs 540,386 - - - - 1,828 - - - - - - - 542,214 - 542,214 92400 Other 62,563 141,035 - - - - - - - - - - 16,354 219,952 - 219,952 Total Tenant Services 602,949 141,035 - - - 1,828 - - - - - - 16,354 762,166 - 762,166 Utilities:
93100 Water 441,243 - - - - - - - - - - - - 441,243 - 441,243 93200 Electricity 195,867 - - - - - - - - - - 708 - 196,575 - 196,575 93300 Gas 43,220 - - - - - - - - - - - - 43,220 - 43,220 93600 Sewer 392,827 - - - - - - - - - - 689 - 393,516 - 393,516 93800 Other Utilities Expense 223,210 - - - - 77 - - - - - 13,136 - 236,423 - 236,423 Total Utilities 1,296,367 - - - - 77 - - - - - 14,533 - 1,310,977 - 1,310,977 Ordinary Maintenance and
Operations:
94100 Labor 136,504 - - - - - - - - - - - - 136,504 - 136,504 94200 Materials and Other 514,271 - - - - 477,012 13,329 4,504 - 85,851 (1) 46,425 16,245 1,157,636 - 1,157,636 94300 Contracts 1,969,723 - - - - 281,552 5,460 3,982 28,030 20 - 1,633 - 2,290,400 - 2,290,400 Total Ordinary
Maintenance and
Operations 2,620,498 - - - - 758,564 18,789 8,486 28,030 85,871 (1) 48,058 16,245 3,584,540 - 3,584,540 Protective Services:
95200 Other Contract Costs 38,864 - - - - 277,891 - - - - - - - 316,755 - 316,755 95300 Other 102,873 - - - - 2,311 - - - - - - - 105,184 - 105,184 Total Protective Services 141,737 - - - - 280,202 - - - - - - - 421,939 - 421,939

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FINANCIAL DATA SCHEDULE
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – COUNTY (CONTINUED) YEAR ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(87)

Resident
PIH Family Opportunity Housing Emergency Emergency Choice Total Line Project Continuum FSS Self Supportive Choice Housing Mainstream Rental State/ Neighborhood Business Central Office Enterprise Item # Accounts Description Totals of Care Forfeitures Sufficiency Services Vouchers Vouchers Vouchers Assistance Local Grants Activities Cos t Center Elimination Fund EXPENSES (Continued)
Insurance Premiums
96110 Property Insurance 68 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 68 $ 96120 Liability Insurance 3,385 - - - - 65,801 - - - - - - - - 69,186 96130 Workmen's Compensation 31,408 1,064 - 1,916 - 78,821 1,947 1,103 11,628 10,147 - - 4,919 - 142,953 96140 All Other Insurance 242,420 - - - - - - - - - - - - - 242,420 96100 Total Insurance Premiums 277,281 1,064 - 1,916 - 144,622 1,947 1,103 11,628 10,147 - - 4,919 - 454,627 General Expenses:
96200 Other General Expenses 123,285 - - 11,000 - 653,779 4,761 579 539,896 252,346 - 1,400 102,494 - 1,689,540 96210 Compensated Absences 182,245 38,144 - 23,210 - 1,169,930 28,687 16,144 184,366 195,517 - - 55,818 - 1,894,061 96300 Payments in Lieu of Taxes 75,393 - - - - - - - - - - - - - 75,393 96400 Bad Debt - Tenant Rents - - - - - 31,395 - - - - - - - - 31,395 96600 Bad Debt - Other - - - - - - - - - - - - - - - 96000 Total General Expenses 380,923 38,144 - 34,210 - 1,855,104 33,448 16,723 724,262 447,863 - 1,400 158,312 - 3,690,389 96720 Interest on Notes Payable - - - - - - - - - 17,780 - - - - 17,780 96900 Total Operating Expenses 7,181,967 470,921 - 189,089 - 18,027,999 658,769 91,484 4,806,064 3,359,461 - 429,140 3,485,933 (5,167,034) 33,533,793 97000 EXCESS OF OPERATING REVENUE
OVER OPERATING EXPENSES 1,128,527 5,525,084 12,898 (12,788) - 193,878,792 8,291,379 3,206,375 2,904,462 (304,730) (1) (296,174) 1,894,347 2 216,228,173 97100 Extraordinary Maintenance 108,284 - - - - - - - - - - - - - 108,284 97200 Casualty Losses - Noncapitalized - - - - - - - - - - - - - - - 97300 Housing Assistance Payments 166,469 5,528,850 - - - 200,455,919 8,324,781 3,957,942 2,420,426 - - - - - 220,854,387 97400 Depreciation Expense 1,735,558 - - - - 20,414 - - - - - 47,764 - - 1,803,736 90000 Total Expenses 9,192,278 5,999,771 - 189,089 - 218,504,332 8,983,550 4,049,426 7,226,490 3,359,461 - 476,904 3,485,933 (5,167,034) 256,300,200 Other Financing Sources (Uses):
10010 Operating Transfer In 2,746,625 - - - - - - - - - - - - (2,746,625) - 10020 Operating Transfer Out (2,746,625) - - - - - - - - - - - - 2,746,625 - 10100 Total Other Financing Sources (Uses) - - - - - - - - - - - - - - - 10000 EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENSES (881,784)$ (3,766) $ 12,898 $ (12,788) $ - $ (6,597,541)$ (33,402) $ (751,567) $ 484,036 $ (304,730) $ (1) $ (343,938)$ 1,894,347 $ 2 $ (6,538,234)$ Memo Account Information
11020 Required Annual Debt Principal Payments - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5084:5124 Beginning Equity 30,868,836 (769) 10,946 (1) - (10,396,021) 216,033 167,765 (541,322) 16,128,459 18,365,223 17,573,708 457,133 - 72,849,990 11040 Prior Period Adjustments, Equity Transfers, and
Corrections of Errors - - - - - - - - - - - - - - -

(88)

STATISTICAL SECTION

This part of the Agency’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Agency’s overall financial health.

Financial Trends – These schedules contain trend information to help the reader understand how the Agency’s financial performance and well-being have changed over time.

 Net Position by Component
 Changes in Net Position

Debt Capacity – This schedule presents information to help the reader assess the affordability of the Agency’s current levels of outstanding debt and the Agency’s ability to issue additional debt in the future.

 Ratios of Outstanding Debt by Type

Demographic and Economic Information – This schedule offers demographic and economic indicators to help the reader understand the environment within which the Agency’s financial activities take place.

 Demographic and Economic Statistics
 Principal Employers

Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the Agency’s financial report relates to the services the Agency provides and the activities it performs.

 Full-time Equivalent Agency Employees by Function/Program  Operating Indicators by Function
 Capital Assets by Function

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NET POSITION BY COMPONENT
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(89)

2015 (1) 2016 2017 2018 (2) 2019 (3)
Governmental Activities:

Net Investment in Capital Assets 24,321 $ 25,938 $ 25,008 $ 24,937 $ 24,080 $ Restricted 325,230 338,927 349,470 363,970 371,728 Unrestricted (8,706) (9,963) (15,752) (25,796) (24,570) Total Governmental Activities
Net Position 340,845$ 354,902 $ 358,726 $ 363,111 $ 371,238 $ Business-Type Activities:

Net Investment in Capital Assets 161,366 $ 156,568 $ 151,897 $ 142,172 $ 139,742 $ Restricted 1,141 2,552 806 806 2,589 Unrestricted 50,465 56,330 56,813 51,978 57,363 Total Business-Type Activities
Net Position 212,972$ 215,450 $ 209,516 $ 194,956 $ 199,694 $ Primary Government:

Net Investment in Capital Assets 185,687 $ 182,506 $ 176,905 $ 167,109 $ 163,822 $ Restricted 326,371 341,479 350,276 364,776 374,317 Unrestricted 41,759 46,367 41,061 26,182 32,793 Total Primary Government
Net Position 553,817$ 570,352 $ 568,242 $ 558,067 $ 570,932 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

NET POSITION BY COMPONENT (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(90)

2020 2021 2022 2023 2024
Governmental Activities:

Net Investment in Capital Assets 23,952 $ 22,929 $ 19,499 $ 22,694 $ - $ Restricted 381,576 428,178 453,174 483,378 - Unrestricted (33,881) (40,137) (54,070) (65,849) - Total Governmental Activities
Net Position 371,647$ 410,970 $ 418,603 $ 440,223 $ - $ Business-Type Activities:

Net Investment in Capital Assets 119,832 $ 100,324 $ 86,903 $ 123,650 $ 147,269 $ Restricted 1,952 4,214 1,539 5,243 5,989 Unrestricted 88,028 109,484 136,267 128,757 620,066 Total Business-Type Activities
Net Position 209,812$ 214,022 $ 224,709 $ 257,650 $ 773,324 $ Primary Government:

Net Investment in Capital Assets 143,784 $ 123,253 $ 106,402 $ 146,344 $ 147,269 $ Restricted 383,528 432,392 454,713 488,621 5,989 Unrestricted 54,147 69,347 82,197 62,908 620,066 Total Primary Government
Net Position 581,459$ 624,992 $ 643,312 $ 697,873 $ 773,324 $ Source: Agency Comprehensive Annual Financial Reports
(1) Fiscal year 2015 beginning net position w as restated due to the implementation of GASB 68. (2) Fiscal year 2018 beginning net position w as restated due to the implementation of GASB 75. (3) Fiscal year 2019, blended component units are included in business-type activities. Norw ood Avenue Housing Corporation and Sacramento Housing Authority Repositioning Program, Inc. are included in the Agency's Government Wide numbers as they are blended component units in the current year and w ere not presented that w ay in prior years. In prior years, they w ere included in the statements as discretely presented component units.

Note: The negative unrestricted net positions are mainly the result of redevelopment debt that does not produce capital assets.

Note: The negative unrestricted net positions w ere due to the implementation of GASB 68 and GASB 75.

Note: Change in reporting entity in FY 2024 w hich resulted in the operations being reported as a single reporting unit.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMPONENT CHANGES IN NET POSITION
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(91)

2015 2016 2017 2018 2019
Expenses:

Governmental Activities:

Housing Operations 8,740 $ 12,985 $ 17,837 $ 10,417 $ 15,590 $ Community Development 23,495 17,914 18,514 23,656 19,954 Community Social Services 4,841 5,240 5,957 6,853 8,162 Interest Expense 786 741 688 632 571 Total Governmental Activities Expenses 37,862 36,880 42,996 41,558 44,277 Business-Type Activities:

Local Housing 4,022 4,636 6,717 8,999 8,121 Public Housing 22,607 24,768 25,042 29,749 28,040 Housing Choice Vouchers 109,844 110,219 109,914 113,644 114,210 Housing Operations - - - - - Community Development - - - - - Community Social Services - - - - - Interest Expense - - - - - Total Business-Type Activities Expenses 136,473 139,623 141,673 152,392 150,371 Total Primary Government Expenses 174,335 176,503 184,669 193,950 194,648 Program Revenues:

Governmental Activities:

Charges for Services:

Housing Operations 1 693 1,287 893 2,123 Community Development 17 5
2 4 5 Community Social Services 2,137 1,152 1,212 999 1,496 Operating Grants and Contributions:

Housing Operations 10,212 9,072 8,183 13,086 14,834 Community Development 20,005 21,657 14,934 23,457 6,969 Community Social Services 4,115 4,506 4,544 6,381 7,036 Capital Grants and Contributions:

Housing Operations 5,693 6,578 6,594 6,271 6,753 Community Development - - - 6,753 - Total Governmental Activities
Program Revenues 42,180 43,663 36,756 57,844 39,216 Business-Type Activities:

Charges for Services:

Local Housing 3,811 3,974 3,966 4,009 4,583 Public Housing 6,712 7,073 7,852 7,949 8,249 Housing Choice Vouchers - - - - - Housing Operations - - - - - Community Development - - - - - Community Social Services - - - - - Operating Grants and Contributions:

Local Housing 1,047 1,108 1,165 1,044 1,153 Public Housing 10,218 10,477 11,617 11,300 10,896 Housing Choice Vouchers 110,747 113,912 105,720 110,144 115,205 Housing Operations - - - - - Community Development - - - - - Community Social Services - - - - - Capital Grants and Contributions:

Public Housing - - - - - Housing Operations - - - - - Total Business-Type Activities
Program Revenues 132,535 136,544 130,320 134,446 140,086 Total Primary Government
Program Revenues 174,715 180,207 167,076 192,290 179,302 Net (Expenses) Revenues:

Governmental Activities 4,318 6,783 (6,240) 16,286 (5,061) Business-Type Activities (3,938) (3,079) (11,353) (17,946) (10,285) Total Primary Government Net Expenses 380 3,704 (17,593) (1,660) (15,346)

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMPONENT CHANGES IN NET POSITION (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(92)

2020 2021 2022 2023 2024
Expenses:

Governmental Activities:

Housing Operations 20,638 $ 99,295 $ 101,338 $ 48,093 $ - $ Community Development 37,660 33,195 56,723 50,846 - Community Social Services 24,800 13,929 26,195 20,359 - Interest Expense 535 1,767 1,476 1,824 - Total Governmental Activities Expenses 83,633 148,186 185,732 121,122 - Business-Type Activities:

Local Housing 14,471 19,067 16,224 36,878 42,261 Public Housing 24,906 20,355 22,328 21,575 26,869 Housing Choice Vouchers 127,449 145,127 158,563 189,202 232,335 Housing Operations - - - - 23,151 Community Development - - - - 38,939 Community Social Services - - - - 11,104 Interest Expense - - - - 637 Total Business-Type Activities Expenses 166,826 184,549 197,115 247,655 375,296 Total Primary Government Expenses 250,459 332,735 382,847 368,777 375,296 Program Revenues:

Governmental Activities:

Charges for Services:

Housing Operations 1,499 10,288 15,931 - - Community Development 3 -
- - - Community Social Services 1,281 941 1,582 1,587 - Operating Grants and Contributions:

Housing Operations 17,253 114,634 98,029 58,946 - Community Development 23,006 23,764 42,063 45,043 - Community Social Services 22,502 11,873 30,843 20,346 - Capital Grants and Contributions:

Housing Operations 8,823 3,577 3,532 7,677 - Community Development - - - - - Total Governmental Activities
Program Revenues 74,367 165,077 191,980 133,599 - Business-Type Activities:

Charges for Services:

Local Housing 11,508 12,381 13,534 39,926 23,259 Public Housing 8,172 7,978 7,808 1,166 5,231 Housing Choice Vouchers - 421 14 19 636 Housing Operations - - - - 22,576 Community Development - - - - 44 Community Social Services - - - - 1,695 Operating Grants and Contributions:

Local Housing 1,765 4,139 5,058 1,511 5,048 Public Housing 12,076 11,433 9,826 10,068 9,524 Housing Choice Vouchers 127,239 144,780 157,523 188,609 224,788 Housing Operations - - - - 42,122 Community Development - - - - 50,641 Community Social Services - - - - 23,493 Capital Grants and Contributions:

Public Housing - - 7,880 - - Housing Operations - - - - 5,009 Total Business-Type Activities
Program Revenues 160,760 181,132 201,643 241,299 414,066 Total Primary Government
Program Revenues 235,127 346,209 393,623 374,898 414,066 Net (Expenses) Revenues:

Governmental Activities (9,266) 16,891 6,248 12,477 - Business-Type Activities (6,066) (3,417) 4,528 (6,356) 38,770 Total Primary Government Net Expenses (15,332) 13,474 10,776 6,121 38,770 Source: Agency Comprehensive Annual Financial Reports
Note: Norwood Avenue Housing Corporation and Sacramento Housing Authority Repositioning Program, Inc. are included in the Agency's Government-Wide numbers as they are blended component units in the current year and were not presented that way in prior years. In prior years, they were included in the statements as discretely presented component units.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMPONENT CHANGES IN NET POSITION (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(93)

2015 2016 2017 2018 2019
General Revenues, Transfers and
Changes in Net Position:

Governmental Activities:

Tax Increment -$ - $ - $ - $ - $ Investment Earnings 3,828 2,248 4,595 3,009 5,763 Gain (Loss) on Disposal of Capital Assets - - - - 2,785 Income from Assets Held for Resale - - - - - Miscellaneous 9,041 8,148 8,485 5,618 8,776 Special Items - - - - - Transfers (2,978) (3,122) (3,016) (3,443) (4,136) Total Governmental Activities 9,891 7,274 10,064 5,184 13,188 Business-Type Activities:

Investment Earnings 1,404 1,353 1,312 1,693 1,566 Gain on Sale of Capital Assets - - - - - Miscellaneous 766 1,082 1,091 1,117 1,801 Special Items - - - - - Transfers 2,978 3,122 3,016 3,443 4,136 Total Business-Type Activities 5,148 5,557 5,419 6,253 7,503 Total Primary Government 15,039 12,831 15,483 11,437 20,691 Change In Net Position Before
Extraordinary Item:

Governmental Activities 14,209 14,057 3,824 14,717 8,127 Business-Type Activities 1,210 2,478 (5,934) (11,693) (2,782) Total Primary Government Before
Extraordinary Item 15,419 16,535 (2,110) 3,024 5,345 Change In Net Position:

Governmental Activities 14,209 14,057 3,824 14,717 8,127 Business-Type Activities 1,210 2,478 (5,934) (11,693) (2,782) Total Primary Government 15,419 $ 16,535 $ (2,110) $ 3,024 $ 5,345 $

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

COMPONENT CHANGES IN NET POSITION (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(94)

2020 2021 2022 2023 2024
General Revenues, Transfers and
Changes in Net Position:

Governmental Activities:

Tax Increment -$ - $ - $ - $ - $ Investment Earnings 4,900 9,045 1,106 5,464 - Gain (Loss) on Disposal of Capital Assets 1,772 2,527 (7,763) 1,220 - Income from Assets Held for Resale
Miscellaneous 5,380 15,861 11,632 8,797 - Special Items
Transfers (6,542) (5,001) (3,590) (2,218) - Total Governmental Activities 5,510 22,432 1,385 13,263 - Business-Type Activities:

Investment Earnings 1,254 982 (3,301) 6,557 12,303 Gain on Sale of Capital Assets
Miscellaneous 5,026 - - 19,240 - Special Items 6,806 1,642 5,870 1,088 24,378 Transfers 6,542 5,001 3,590 2,218 - Total Business-Type Activities 19,628 7,625 6,159 29,103 36,681 Total Primary Government 25,138 30,057 7,544 42,366 36,681 Change In Net Position Before
Extraordinary Item:

Governmental Activities (3,756) 39,323 7,633 25,740 - Business-Type Activities 13,562 4,208 10,687 22,747 75,451 Total Primary Government Before
Extraordinary Item 9,806 43,531 18,320 22,747 75,451
Change In Net Position:

Governmental Activities (3,756) 39,323 7,633 25,740 - Business-Type Activities 13,562 4,208 10,687 22,747 75,451 Total Primary Government 9,806 $ 43,531 $ 18,320 $ 48,487 $ 75,451 $ Source: Agency Comprehensive Annual Financial Reports
Note: Norwood Avenue Housin
g Corporation and Sacramento Housing Authority Repositioning Program, Inc. are included in the Agency's Government-Wide numbers as they are blended component units in the current year and were not presented that way in prior years. In prior years, they were included in the statements as discretely presented component units.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

RATIOS OF OUTSTANDING DEBT BY TYPE
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS)

(95)

Business-Type
Governmental Activities Activities
Percentage of
Mortgage Total Actual Taxable Percentage
Fiscal Notes Tax Allocation Notes Primary Value of of Personal Per Year Payable Bonds Payable Government Property (2) Income (1) Capita (1)

2015 15,530$ - $ 2,412$ 17,942 $ *N/A 0.03% 12 2016 14,330 - 2,361 16,691 *N/A 0.02% 11 2017 13,137 - 2,306 15,443 *N/A 0.02% 10 2018 11,736 - 2,245 13,981 *N/A 0.02% 9 2019 10,830 - 3,540 14,370 *N/A 0.02% 9 2020 17,512 - 3,518 21,030 *N/A 0.02% 14 2021 15,599 - 35,139 50,738 *N/A 0.06% 33 2022 36,844 - 28,291 65,135 *N/A 0.07% 41 2023 34,954 - 27,460 62,414 *N/A 0.06% 39 2024 42,363 - 18,594 60,957 *N/A 0.06% 38 Source: Agency Comprehensive Annual Financial Reports
Note: Details regarding the Agency's outstanding debt can be found in the notes to the financial statements. (1) See the "Demographic and Economic Statistics" table for personal income and population figures.

Based on County of Sacramento population.
(2) Estimated actual value of taxable property cannot be easily determined as the property owned by the Agency is not reassessed annually. Reassessment normally occurs when ownership changes.

Prior amounts were based on assessed values of redevelopment properties. With the dissolution of redevelopment that no longer applies.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

DEMOGRAPHIC AND ECONOMIC STATISTICS
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS EXCEPT PER CAPITA AMOUNT)

(96)

2015 2016 2017 2018 2019
City Population (1) 480 486 493 501 508 City Assessed Value (1) 39,067,503 $ 40,897,784 $ 43,485,723 $ 46,645,376 $ 50,352,401 $ County Population (2) 1,478 1,497 1,514 1,531 1,541 County Assessed Value (2) 130,274,313 $ 136,123,278 $ 143,368,927 $ 152,390,356 $ 162,630,815 $ Unemployment Rate % (2) 7.3% 6.0% 5.4% 4.6% 3.8%
Personal Income (2) 65,486,553 $ 70,110,138 $ 72,878,458 $ 76,832,120 $ 80,969,087 $ Per Capita Personal Income (2) 44,303 $ 46,845 $ 48,122 $ 50,197 $ 52,544 $ City Public Housing Authority
Low Income Housing Units (3) 1,759 1,699 1,699 1,699 1,699 County Public Housing Authority
Low Income Housing Units (3) 1,035 1,013 1,013 1,013 1,013 City Housing Choice Vouchers (3) N/A N/A N/A N/A N/A County Housing Choice Vouchers (3) (4) 12,063 12,107 11,424 11,238 11,231

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

DEMOGRAPHIC AND ECONOMIC STATISTICS (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024
(AMOUNTS EXPRESSED IN THOUSANDS EXCEPT PER CAPITA AMOUNT)

(97)

2020 2021 2022 2023 2024
City Population (1) 510 516 518 518 520 City Assessed Value (1) 54,559,257 $ 58,370,363 $ 61,560,495 $ 66,383,000 $ 71,378,461 $ County Population (2) 1,552 1,559 1,589 1,588 1,584 County Assessed Value (2) 173,197,285 $ 183,407,871 $ 193,004,346 $ 208,581,964 $ 223,617,404 $ Unemployment Rate % (2) 3.7% 9.3% 7.0% 3.9% 4.4%
Personal Income (2) 85,959,000 $ 90,908,707 $ 98,241,828 $ 98,105,641 $ 103,143,749 $ Per Capita Personal Income (2) 55,266 $ 58,307 $ 61,829 $ 61,775 $ 65,104 $ City Public Housing Authority
Low Income Housing Units (3) 1,661 1,469 1,316 1,316 1,257 County Public Housing Authority
Low Income Housing Units (3) 863 863 863 863 863 City Housing Choice Vouchers (3) N/A N/A N/A N/A N/A
County Housing Choice Vouchers (3) (4) 11,378 11,473 11,399 12,021 13,384 Sources:
(1) City of Sacramento Comprehensive Annual Financial Report, Fiscal Year Ended June 30. (2) County of Sacramento Comprehensive Annual Financial Report, Fiscal Year Ended June 30. The Bureau of Economic Analysis revised population and per capita personal income to reflect Census Bureau midyear population estimates for 2010-2017 available as of March 2018.
(3) These statistics have been provided to assist in the analysis of the Agency's financial position. Demographic information specific to the City and County can be found in their annual reports. Amounts are not reported in thousands. (4) The City and County Housing Choice Voucher programs were combined into a single County program during 2005.

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

PRINCIPAL EMPLOYERS
JUNE 30, 2024 AND 2015

(98)

Percentage of Percentage of
Total County Total County
Employer Employees (a) Rank Employment Employees (b) Rank Employment (b) State of California 113,610 1 16.21% 74,329 1 11.44% UC Davis Health System 16,075 2 2.29% 9,706 3 1.49% Sacramento County 13,611 3 1.94% 10,598 2 1.63% Kaiser Permanente 11,856 4 1.69% 6,464 7 0.99% U.S. Government 10,699 5 1.53% 9,668 4 1.49% Sutter / California Health Services 10,129 6 1.45% 8,817 5 1.36% Dignity / Mercy Health Care 7,353 7 1.05% 6,286 8 0.97% San Juan Unified School District 5,346 8 0.76% 7,523 6 1.16% City of Sacramento 5,075 9 0.72% N/A N/A N/A Intel Corporation 4,300 10 0.61% 6,200 9 0.95% Elk Grove Unified School District N/A N/A N/A 5,758 10 0.89% Total 198,054 28.25% 145,349 22.37% (a) Source: Sacramento Business Journal Annual Book of Lists Current Year. (b) Source: Sacramento County ACFR, as of June 30.

June 30, 2024 June 30, 2015

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FULL-TIME EQUIVALENT AGENCY EMPLOYEES BY FUNCTION/PROGRAM FOR THE TEN YEARS ENDED DECEMBER 31, 2024

(99)

Function/Program 2015 2016 2017 2018 2019
Administration 37.60 41.60 44.00 43.20 44.20
Housing 156.00 155.00 157.00 162.00 161.00
Community Development 31.40 28.40 29.00 27.30 31.30
Affiliated Organizations 0.00 0.00 0.00 0.00 0.00
Total Agency 225.00 225.00 230.00 232.50 236.50

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

FULL-TIME EQUIVALENT AGENCY EMPLOYEES BY FUNCTION/PROGRAM (CONTINUED) FOR THE TEN YEARS ENDED DECEMBER 31, 2024

(100)

Function/Program 2020 2021 2022 2023 2024
Administration 48.70 49.70 54.70 56.70 56.70
Housing 162.00 168.00 224.00 224.00 224.00
Community Development 35.30 34.30 34.30 39.30 39.30
Affiliated Organizations 0.00 0.00 0.00 0.00 3.00
Total Agency 246.00 252.00 313.00 320.00 323.00
Source: Agency Annual Budgets

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

OPERATING INDICATORS BY FUNCTION
FOR THE TEN YEARS ENDED DECEMBER 31, 2024

(101)

2015 2016 2017 2018 2019
Affordable Housing (1):

Public Housing Units Occupied 2,693 2,633 2,712 2,712 2,712 Housing Choice Vouchers Utilized 11,967 11,934 11,424 11,238 11,231 Multi-Family Housing Units Assisted (2) 624 504 220 534 735 Homeownership Assistance (3) 94 90 146 75 85
Neighborhood Development:

Planning Activities 1 0 0 0 0
Infrastructure Projects (4) 8 6 5 9 9
Community Facilities (5) 1 2 4 7 7
Economic Development:

Commercial Loans - - - - -

SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY

OPERATING INDICATORS BY FUNCTION (CONTINUED)
FOR THE TEN YEARS ENDED DECEMBER 31, 2024

(102)

2020 2021 2022 2023 2024
Affordable Housing (1):

Public Housing Units Occupied 2,112 2,712 2,179 2,096 2,120 Housing Choice Vouchers Utilized 11,378 11,473 11,399 12,021 13,384 Multi-Family Housing Units Assisted (2) 767 711 776 562 1,050 Homeownership Assistance (3) 43 36 37 4 1
Neighborhood Development:

Planning Activities 0 0 1 2 1
Infrastructure Projects (4) 17 6 15 14 12
Community Facilities (5) 4 12 28 22 11
Economic Development:

Commercial Loans - - - - - Source: Agency annual budgets and Consolidated Annual Performance Evaluation Reports (CAPER's) (1) Includes units encumbered by regulatory restrictions to maintain affordability (2) Includes both new and rehabilitated units
(3) Includes developer assistance to build or rehabilitate affordable units, and direct assistance to homebuyers (4) Typical projects are traffic improvements to increase safety (5) Typical projects are libraries, community centers and parks

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2024 SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2024 INDEPENDENT AUDITORS REPORT 1BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION 4STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 5 STATEMENT OF CASH FLOWS 6 NOTES TO BASIC FINANCIAL STATEMENTS 7 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. SeeCLAglobal.com/disclaimer.

CliftonLarsonAllen LLPCLAconnect.com
(1)
INDEPENDENT AUDITORS REPORT Board of Directors Sacramento Housing Authority Repositioning Program, Inc. Sacramento, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the business-type activities and the discretely presented component unit of the Sacramento Housing Authority Repositioning Program, Inc. (Corporation), a California nonprofit public benefit corporation and a component unit of the Sacramento Housing and Redevelopment Agency (Agency), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the Corporations basic financial statements, as listed in the table of contents. In our opinion, based on our audit, and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities and the discretely presented component unit of the Sacramento Housing Authority Repositioning Program, Inc., as of December 31, 2024, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of Twin Rivers Phase 3, LP (Partnership which is a discretely presented component unit) and represents 100% of the assets, 100% of net deficit, 100% of the revenues of the discretely presented component units as of December 31, 2024. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Partnership, is based solely on the report of the other auditor. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Sacramento Housing Authority Repositioning Program, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 9 to the financial statements, the 2024 financial statements have been restated to correct the omission of a discretely presented component unit not being reported. Our opinions are not modified with respect to this matter.

Board of Directors Sacramento Housing Authority Repositioning Program, Inc. (2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Sacramento Housing Authority Repositioning Program, Inc.s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout theaudit.Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, and design and perform audit procedures responsive tothose risks. Such procedures include examining, on a test basis, evidence regarding theamounts and disclosures in the financial statements.Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of Sacramento Housing AuthorityRepositioning Program, Inc.s internal control. Accordingly, no such opinion is expressed.Evaluate the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluate the overallpresentation of the financial statements.Conclude whether, in our judgment, there are conditions or events, considered in theaggregate, that raise substantial doubt about Sacramento Housing AuthorityRepositioning Program, Inc.s ability to continue as a going concern for a reasonableperiod of time.

Board of Directors Sacramento Housing Authority Repositioning Program, Inc. (3)
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Management has omitted the managements discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

CliftonLarsonAllen LLP Roseville, California February 2, 2026 SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) STATEMENT OF NET POSITION DECEMBER 31, 2024 (AS RESTATED) See accompanying Notes to Basic Financial Statements. (4) Sacramento DiscretelyHousing Authority PresentedRepositioning ComponentASSETSProgram, Inc. UnitCURRENT ASSETSCash and Cash Equivalents 10,225,314$ 44,453$ Accounts Receivable 548,237 145,145 Allowance for Uncollectable-TARS(50,409) - Developer Fee Receivable 2,455,024 - Total Current Assets 13,178,166 189,598 NONCURRENT ASSETSRestricted Cash - Security Deposits 77,207 - Prepaid Insurance and Impound Deposits 173,597 9,391Nondepreciable Capital Assets 2,595,835 2,654,200Depreciable Capital Assets, Net 27,269,077 42,257,930 Due From Related Party 112,888 - Total Noncurrent Assets 30,228,604 44,921,521 Total Assets 43,406,770$ 45,111,119$ LIABILITIES AND NET POSITIONCURRENT LIABILITIESAccounts Payable 1,529,168$ 176,264$ Accrued Liabilities 91,080 - Unearned Revenue 105,158 2,808 Tenant Security Deposits 77,207 18,369 Developer Fees Due to SHRA 1,900,500 - Notes Payable, Current Portion 3,799,297 - Interest Payable 80,379 555,372Total Current Liabilities 7,582,789 752,813 NONCURRENT LIABILITIESDeveloper Fees Payable - 550,000 Notes Payable, Net of Current Portion 21,309,195 46,334,085 Total Current Liabilities 21,309,195 46,884,085 Total Liabilities 28,891,984 47,636,898 NET POSITIONNet Investment in Capital Assets 4,756,420(1,421,955) Unrestricted 9,758,366(1,103,824) Total Net Position 14,514,786 (2,525,779) Total Liabilities and Net Position 43,406,770$ 45,111,119$ SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2024 (AS RESTATED) See accompanying Notes to Basic Financial Statements. (5) Sacramento DiscretelyHousing Authority PresentedRepositioning ComponentProgram, Inc. UnitOPERATING REVENUESManagement Fees 128,542$ -$ Developer Fees 974,026 - Miscellaneous Income 231,002 - Tenant Rent 1,087,995 354,615 Maintenance Charges to Tenants 58,121 365 Rental Income Subsidy 3,168,993 - Total Operating Revenues 5,648,679 354,980 OPERATING EXPENSESAdministrative Services 538,854 112,949 Services and Supplies 2,687,529 219,710 Depreciation Expense 1,027,546 680,611 Total Operating Expenses 4,253,929 1,013,270 OPERATING INCOME1,394,750 (658,290) NONOPERATING REVENUES (EXPENSES)Interest Income - - Interest Expense(38,286) (1,455,549) Asset Management Fees - (35,000) Organization and Start-Up Costs - (376,940) Property Tax - -Contributions to Related Entity - -Contributions from Related Entity- -Total Nonoperating Revenues (Expenses) (38,286) (1,867,489) CHANGE IN NET POSITION1,356,464 (2,525,779) Net Position - Beginning of Year 13,158,322 - NET POSITION - END OF YEAR14,514,786$ (2,525,779)$ SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024 See accompanying Notes to Basic Financial Statements. (6) SacramentoHousing AuthorityRepositioning Program, Inc.CASH FLOWS FROM OPERATING ACTIVITIESCash Receipts from Tenants 1,067,083$ Cash Receipts from Development Fees 1,171,552 Cash Receipts from Development Fees on Behalf of SHRA 1,900,500 Cash Receipts from Maintenance Fees 58,121 Cash Receipts from Management Fees 128,542 Cash Receipts from Rental Income Subsidy 3,168,993Cash Receipts from Miscellaneous Income 244,688 Cash Paid for Administrative Expenses(538,854)Cash Paid to Suppliers for Goods and Services (1,665,843)Net Cash Provided by Operating Activities 5,534,782 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPurchase of Capital Assets(690,279)Net Cash Used by Capital and Related Financing Activities (690,279)CASH FLOWS FROM INVESTING ACTIVITIESInterest Received 20,959 Net Cash Provided by Investing Activities 20,959 NET INCREASE IN CASH AND CASH EQUIVALENTS4,865,462 Cash and Cash Equivalents - Beginning of Year 5,359,852 CASH AND CASH EQUIVALENTS - END OF YEAR10,225,314$ RECONCILIATION OF CHANGES IN OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIESOperating Income 1,394,750$ Depreciation 1,027,546 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:Decrease in Accounts Receivable(20,912)Increase in Developer Fee Receivable 197,526Increase in Unearned Revenue 13,686Increase in Developer Fee Due to SHRA 1,900,500 Decrease in Prepaid Insurance(124,843)Increase in Due From Related Party 71,954 Increase in Accounts Payable 1,074,575 Net Cash Provided by Operating Activities 5,534,782$ SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (7)
NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS The Sacramento Housing Authority Repositioning Program, Inc. (the Corporation or SHARP), a component unit of the Sacramento Housing and Redevelopment Agency (the Agency), is a nonprofit public benefit corporation organized for charitable purposes. The Corporation was formed on June 2, 2009 to benefit and support the City of Sacramento, the County of Sacramento, the Housing Authority of the County of Sacramento (HACOS), and the Housing Authority of the City of Sacramento (HACS) and its purposes by (1) acquiring, providing, developing, financing, rehabilitating, owning, and operating decent, safe, and sanitary housing affordable to persons and households of low income and by (2) assisting HACOS and HACS in combating blight and promoting social welfare through community-based development activities. The Corporation serves as the general partner of entities that will own, rehabilitate and operate former public housing properties acquired through the Department of Housing and Urban Developments (HUD) asset disposition process. The purpose of the Corporation is to allow the HACS and HACOS to leverage private sector capital to make improvements to housing inventory removed from the federal Public Housing program through HUDs asset disposition process. Assets transferred to the Corporation will be rehabilitated through various financing structures including the use of limited partnerships that will be able to benefit from the use of tax credit financing. The Corporation is the sole member in twelve separate Limited Liability Companies (LLC). Ten of the LLCs serves as the one Managing General Partner in the Low Income Tax Credit Partnerships noted below: The Washington Plaza Housing Associates, LLC (WPHA LLC) owns a 0.01% interest in Washington Plaza Housing Associates, L.P. (WPHA LP), a low income housing apartment project located in Sacramento, California with 76 units. The Sierra Vista Housing Associates, LLC (Sierra Vista LLC) owns a 0.01% interest in Sierra Vista Housing Associates, L.P. (Sierra Vista LP), a low income housing apartment project located in Sacramento, California with 78 units. The Sutterview Housing Associates, LLC (Sutterview LLC) owns a 0.01% interest in Sutterview Housing Associates, L.P. (Sutterview LP), a low income housing apartment project located in Sacramento, California with 77 units. The Marisol Village Block A, LLC (Marisol A LLC) owns a 0.0049% interest in Twin Rivers Phase 1 L.P. (TRP1 LP), a multi-phase low income housing apartment project located in Sacramento, California with 104 units. The Marisol Village, LLC (Marisol LLC) owns a 0.0049% interest in Twin Rivers Phase 2 L.P. (TRP2 LP), a multi-phase low income housing apartment project located inSacramento, California with 123 units.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (8)
NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS (CONTINUED) The Marisol Village Block C, LLC (Marisol C LLC) owns a 0.0049% interest in Twin Rivers Phase 3 L.P. (TRP3 LP), a multi-phase low income housing apartment project located in Sacramento, California with 85 units. The Marisol Village Block D, LLC (Marisol D LLC) owns a 0.0049% interest in Twin Rivers Phase 4 L.P. (TRP4 LP), a multi-phase low income housing apartment project located in Sacramento, California with 116 units. This project is under construction during 2024. The RAD Pilot, LLC (RAD LLC) owns a 0.01% interest in RAD Pilot, L.P. (RAD LP), 6 scattered sites consisting of low income housing projects located in Sacramento, California with 124 units. This project is under construction during 2024. The Central City I, LLC (Central City I LLC) owns a .009% interest in Central City I L.P. (Central City LP) which consists of two separate high rise buildings of low income housing located in Sacramento, California with 192 units. The RVP Group, LLC (RVP Group LLC) owns a .01% interest in RVP Group LP. (RVP Group LP) which consists of a housing development to consist of 183 residential units located in seven buildings in Sacramento, California that are still under construction as of December 31, 2024. The five remaining LLCs are wholly owned investment and development companies. SHARP Investment, LLC is the investment management company for wholly owned assets. SHARP Investment, LLC has purchased a portfolio of scattered site residential properties of 216 low-income units. The purchase occurred in two stages in 2020 and 2021. SHARP Development, LLC is a wholly owned development company. Development activities are focused on the financing, acquisition, rehabilitation, and development of properties identified for disposition by the City and County of Sacramento Housing Authority. These properties will be developed through low-income housing tax credit syndications and partnerships utilizing the Housing and Urban Developments Rental Assistance Demonstration program. The decision to include component units in the reporting entity was made by applying the criteria set forth in the Government Accounting Standards Board (GASB) Statements relating to reporting entity requirements (Statements No. 97 and 90). The Corporation is the sole managing member of all Limited Liability Companies, has substantially the same governing board, financial burden exists or benefit on the primary organization, and financial accountability as a result of fiscal dependency. Only the LLCs that have activity during the year have been presented in Note 8.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (9)
NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS (CONTINUED) The Corporation is governed by a five-member board of directors who are appointed by the Executive Director of the Agency. The board of directors approve the Corporations annual budget and amendments to the Articles of Incorporation and Bylaws. Pursuant to the Corporations Bylaws, the Executive Director of the Agency can remove members of the board of directors with or without cause. Upon future dissolution of the Corporation, and after paying or adequately providing for the debts and obligations of the Corporation, the remaining assets will be distributed to HACS for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. SHARP is organized as a nonprofit public benefit corporation. SHARPs mission is to execute the Sacramento Housing and Redevelopment Agencys (Agency) housing portfolio redevelopment efforts utilizing various ownership and financing structures including low-income housing tax credit partnerships and direct private ownership. Although a separate legal entity, Government accounting standards require the Corporation to be reported as a blended component unit of the Agency for financial reporting purposes. Discretely Presented Component Unit Twin Rivers Phase 3, LP (Partnership) A California limited partnership that was formed to construct, own hold for investment, manage, lease and operate an 84-unit mixed-income rental housing development for low-income families located in Sacramento, California and operating under the name of Mirasol Village Block C (the Project). Since the Corporation (1) holds majority interest of the Partnership, (2) does not have a financial benefit or burden (3) the Partnerships debts will not be paid by the Corporation and (4) the Partnership does not entirely or exclusively provide services to the Corporation, nor entirely benefitting the Corporation, the Partnership is considered to be a discrete component unit of the Corporation. The financial statements for this Partnership can be obtained from the Agency. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The basic financial statements of the Corporation have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), as applied to governmental units. The GASB is the accepted standards setting body for establishing governmental accounting and financial reporting principles. Enterprise funds are accounted for on an economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows occur. Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the funds principal ongoing operations. The principal operating revenues of the Corporation are developer fees, management fees, and a rental income subsidy. Operating expenses for the Corporation include employee and administrative services, services and supplies, and utilities. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (10)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Cash Equivalents The Corporations cash includes amounts in demand deposit accounts. For purposes of the statement of cash flows, cash and cash equivalents are defined as short-term highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity date of three months or less from the date of purchase. As of December 31, 2024, the Corporation did not have any investments. Accounts Receivable As of December 31, 2024, the balance in accounts receivable primarily consisted of tenant accounts receivable. Other Assets The Corporations contributions to the LLCs and the LPs are reported in the statement of net position as other assets. Contributions were previously made to WPHA LLC, WPHA LP, Sutterview LLC, and Sutterview LP. Capital Assets Capital assets, which are defined by the Corporation as assets with an initial, individual cost of more than $5,000, are stated at cost. Depreciation is calculated using the straight-line method based on an estimated useful life of 40 years for buildings and improvements. Net Position The Corporation utilizes a net position presentation. Net position can be categorized as net investment in capital assets, restricted, and unrestricted. As of December 31, 2024, the Corporation reported both net investment in capital assets and unrestricted net position. Unrestricted net position represents amounts that are not restricted as to their use. Operating Revenues Operating revenues of the Corporation consist of partnership management fees and developer fees earned as the managing general partner of the WPHA LP, Sierra Vista LP, Sutterview LP, TRP2 LP (Marisol Village), and RVP Group LP, as well as tenant rent and HAP subsidies from properties owned by Sierra Asset Management company and SHARP Investment Corp. Administrative Expenses Administrative expenses include audit, legal, insurance and other expenses incurred by the Corporation in support of the Agency in its mission to improve the living conditions of low-and moderate-income people through the acquisition, development, rehabilitation, and management of affordable housing.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (11)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes The Corporation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and from state income taxes under Section 23701(d) of the California Revenue and Taxation Code. As such, no provision is made for federal and state income taxes. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 3 CASH AND INVESTMENTS At December 31, 2024, the Corporations cash and cash equivalents was $10,225,314 and restricted cash was $77,207, in a single demand deposit account with two financial institution and insured up to $250,000 by the Federal Depository Insurance Corporation (FDIC). Although the Corporation is not a government entity, its agreement with the financial institution is established as part of an agreement with the bank under the Agency. Therefore, its deposits are subject to collateralization as required by California Government Code. At December 31, 2024, the carrying amount of the Corporations discretely presented component units deposits is $44,453 and the bank balance is $44,453. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Corporations investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of December 31, 2024, the Corporation was not exposed to custodial credit risk.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (12)
NOTE 4 CAPITAL ASSETS Information on additions and retirements of capital assets is presented below: Balance BalanceJanuary 1, December 31, 2024 Additions Retirements Adjustments 2024Capital Assets, Not Being Depreciated:Land 2,595,835$ -$ -$ -$ 2,595,835$ Capital Assets, Being Depreciated:Intangible Assets 11,244 - - - 11,244 Buildings and Improvements 30,165,407 690,279 - - 30,855,686 Total Depreciable Assets 30,176,651 690,279 - - 30,866,930 Less: Accumulated Depreciation for:Intangible Assets - (9,595) - (9,595) Buildings and Improvements (2,570,307) (1,017,951) - (3,588,258) Total Accumulated Depreciation (2,570,307) (1,027,546) - - (3,597,853) Total Depreciable Assets, net 27,606,344 (337,267) - - 27,269,077 Total Capital Assets, Net 30,202,179$ (337,267)$ -$ -$ 29,864,912$ Depreciation expense for the year ended December 31, 2024 totaled $1,027,546.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (13)
NOTE 4 CAPITAL ASSETS (CONTINUED) Information on discretely presented component unit additions and retirements of capital assets is presented below: Balance BalanceJanuary 1, December 31, 2024 Additions Retirements Adjustments 2024Capital Assets, Not Being Depreciated:Land -$ 2,244,806$ -$ -$ 2,244,806$ Capital Assets, Being Depreciated:Buildings and Improvements - 42,149,374 - - 42,149,374 Furnishings - 789,167 - - 789,167 Total Depreciable Assets - 42,938,541 - - 42,938,541 Less: Accumulated Depreciation for:Buildings and Improvements - (601,694) - (601,694) Furnishings - (78,917) - (78,917) Total Accumulated Depreciation - (680,611) - - (680,611) Total Depreciable Assets, net - 42,257,930 - - 42,257,930 Total Capital Assets, Net -$ 44,502,736$ -$ -$ 44,502,736$ Depreciation expense for the year ended December 31, 2024 totaled $680,611.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (14)
NOTE 5 RELATED PARTY TRANSACTIONS Partnership Management Fee Partnership management fees from WPHA LP, Sierra Vista LP, and Sutterview LP, for which each of the LLCs serves as general partner, are payable to the general partner in an annual amount equal to $20,000, increasing by 3% per annum as defined in the Partnership Agreement. As of December 31, 2024, partnership management fees payable from WPHA LP, Sierra Vista LP, and Sutterview LP to the Corporation totaled $26,878, $26,094, and $26,095, respectively. Partnership Management Fees from RAD Pilot LP, for which RAD Pilot LLC serves as General Partner, are payable to the general partner in an annual amount of $8,000, increasing by 3% per annum as defined in the Partnership agreement. As of December 31, 2024, partnership management fees for the year totaled $9,004 and $34,473 are payable from prior years. Partnership Management Fees from Central City I LP, for which Central City I LLC serves as General Partner, are payable to the general partner in an annual amount of $15,000, increasing by 3% per annum as defined in the Partnership agreement. As of December 31, 2024, partnership management fees for the year totaled $15,450. The annual partnership management fee from each limited partnership is cumulative and is earned, but payable, only to the extent that cash flow is available for distribution in any year as defined in the respective Partnership Agreements. Administrative Services Agreement The Corporation has entered into an agreement with the HACS to provide administrative services related to asset management, operations and filing of required documents on behalf of the Corporation. The asset management fee paid pursuant to the Administrative Services Agreement was $75,000. Transition Reserve Fund Contribution On December 1, 2013, the Corporation entered into a funding agreement with WPHA LP to fund the shortfall, if any, of the required Transition Reserve Fund in the amount of $360,000 per the Limited Partnership agreement. The Transition Reserve Fund would be funded upon the Stabilization Date of the property. In consideration for the Corporations agreement to fund the shortfall, the Limited Partnership agrees that it will direct the Trustee to disburse the funds, if any, from the Transition Reserve Fund after the 5th anniversary of the Stabilization Date to the Corporation until such time the Corporation has been reimbursed in full for the amount funded. As of December 31, 2024, the total amount funded by the Corporation was $27,838.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (15)
NOTE 6 FINANCIAL COVENANTS Washington Plaza Housing Associates, L.P. Pursuant to the Continuing Guaranty and related agreements, the Washington Plaza Housing Associates, L.P. shall maintain Net Worth and Liquidity (both as hereinafter defined) of not less than $850,000 until the Deficit Release (after five years of achieving a debt service coverage ratio of 1.15 measured as of the end of each Fiscal Year after Bond Loan Conversion has been achieved), and a minimum liquidity of $500,000 from and after the Deficit Release. Sutterview Housing Associates, L.P. Sutterview Housing Associates, L.P. shall maintain Net Worth and Liquidity (both as hereinafter defined) of not less than (a) $850,000 during the period between (i) the later of the Stabilization Date or Loan Conversion and (ii) the date on which the obligation of the General Partner to make Operating Deficit Contributions under Section 5.14 of the Limited Partnership Agreement terminates, and (b) $500,000 during the period between the date on which the obligation of the General Partner to make Operating Deficit Contributions under Section 5.14 of the Limited Partnership Agreement terminates and the expiration of the Compliance Period. As used in the Limited Partnership Agreement, the term Net Worth means the Corporations total assets minus the Corporations total liabilities, determined in accordance with generally accepted accounting principles, consistently applied. As used in the Limited Partnership Agreement, the term Liquidity refers to cash, cash equivalents and/or marketable securities which are unencumbered and freely transferable. Pursuant to the agreements and approval of all parties, on December 29, 2017, Windfield Hill, Inc. withdrew as a member of the General Partner and the Corporation replaced BRIDGE Housing Corporation as guarantor. Sierra Vista Housing Associates, L.P. On or after the date of the Limited Partners final capital contribution to the Sierra Vista LP, provided that if (a) there is no default by the General Partner or under the Guaranty, (b) the Corporation provides evidence acceptable to the Limited Partner in its sole discretion that the Corporation has a minimum liquidity of $1,100,000, and (c) the General Partner provides evidence that the Corporation and the Agency are parties to an approved Administrative Services Agreement, then (i) Winfield Hill, Inc. may withdraw as a member of the General Partner or assign all of its membership interest in the General Partner to the Corporation such that the Corporation is the sole member of the General Partner, and (ii) the Corporation may replace BRIDGE Housing Corporation as guarantor provided that the Corporation executes the Guaranty and that such Guaranty shall include the following provision: (iii) the Corporation shall maintain a minimum liquidity of $1,100,000. Pursuant to the agreements and approval of all parties, on December 27, 2017, Windfield Hill, Inc. withdrew as a member of the General Partner and the Corporation replaced BRIDGE Housing Corporation as guarantor.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (16)
NOTE 6 FINANCIAL COVENANTS (CONTINUED) RAD Pilot, L.P. RAD Pilot, L.P. shall maintain Unencumbered Liquid Assets in an amount not less than (i) Two Million Five Hundred Thousand Dollars ($2,500,000) from the date of the LimitedPartnership Agreement until the Limited Partners payment of the Third Installment ofCapital Contributions, and (ii) Five Hundred Thousand Dollars ($500,000) from the LimitedPartners payment of the Third Installment of Capital Contributions until the end of theCompliance Period.Central City I L.P. Central City I L.P. shall maintain the minimum liquidity (cash and marketable securities) of $2,000,000 in the aggregate (from and after Final Closing, the minimum liquidity shall be reduced to $1,000,000) and a minimum net worth (determined in Accordance with generally accepted accounting principles) of $5,000,000 in the aggregate. RVP Group, L.P. RVP Group, L.P.. shall maintain the minimum liquidity (cash and marketable securities) of $1,000,000 in the aggregate and a minimum net worth (determined in Accordance with generally accepted accounting principles) of $1,000,000 in the aggregate. In addition, RVP Group, L.P. is required to fund a replacement reserve with an initial deposit of $350,000 upon payment of the fourth installment of the LPs capital contribution. Upon achieving stability, the general partner is required to fund the reserve at $300 per unit per year, increasing annually by 3% per annum. RVP Group, L.P. is also required to fund an operating reserve in the amount of $1,384,654 upon payment of the fourth installment of the LPs capital contribution. As of December 31, 2024, the replacement reserve and operating reserve have not been funded as the fourth installment of the capital contribution has not yet been made.

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (17)
NOTE 7 NOTES PAYABLE On October 9, 2020, the Corporation (borrower) entered into a promissory note agreement with the Housing Authority of the County of Sacramento (HACOS) (lender) in the amount of $11,735,229 for the purchase of 43 scattered site properties throughout the County of Sacramento. On March 10, 2021, the Corporation (borrower) entered into a promissory note agreement with the Housing Authority of the City of Sacramento (HACS) in the amount of $31,645,440 for the purchase of 116 scattered site properties throughout the City of Sacramento. In April 2022 the Corporation adjusted the notes as of December 31, 2021 to a total of $28,273,374 ($7,910,833 for HACOS and $19,981,785 for HACS). The annual installment payments are set at approximately $498,108 with expected payoff in November 2039 for HACOS and approximately $1,393,622 with expected payoff in April 2038 for HACS. As of December 31, 2024, the balance on the notes payable is $7,526,270. During 2024, the Board approved an extension on the annual payment until 2025. Annual debt service requirements to maturity are as follows: Year Ending December 31,Principal Interest Total2025 1,351,520$ 142,804$ 1,494,324$ 2026 436,361 61,747 498,108 2027 440,724 57,384 498,108 2028 445,131 52,977 498,108 2029 449,583 48,525 498,108 2028-2034 2,316,257 174,283 2,490,540 2035-2039 2,086,694 56,131 2,142,825 Total 7,526,270$ 593,851$ 8,120,121$ The following is a summary of the direct borrowing notes payable transactions for the above loan for the year ended December 31, 2024: Balance Balance AmountJanuary 1, December 31, Due Within2024 Additions Retirements 2024 One Year7,526,270$ -$ -$ 7,526,270$ 1,351,520$ SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (18)
NOTE 7 NOTES PAYABLE (CONTINUED) On February 19, 2021, the Corporation (borrower) entered into a direct borrowing promissory note agreement with the Housing Authority of the City of Sacramento (HACS) (lender) in the amount of $31,645,440 for the purchase of 116 scattered site properties throughout the City of Sacramento. The note bears interest at 1.0% and is payable in annual installments of approximately $1,393,622 over the course of 27 years commencing on March 1, 2022. As of December 31, 2024, the balance on the note payable is $17,582,222. During 2024, the Board approved an extension on the annual payment until 2025. Year Ending December 31,Principal Interest Total2025 2,447,777$ 339,467$ 2,787,244$ 2026 1,242,277 151,345 1,393,622 2027 1,254,700 138,922 1,393,622 2028 1,267,247 126,375 1,393,622 2029 1,279,920 113,702 1,393,622 2028-2034 5,464,098 396,321 5,860,419 2035-2039 4,626,203 117,048 4,743,251 Total 17,582,222$ 1,383,180$ 18,965,402$ The following is a summary of the direct borrowing notes payable transactions for the above loan for year ended December 31, 2024. Balance Balance AmountJanuary 1, December 31, Due Within2024Additions Retirements 2024 One Year17,582,222$ -$-$17,582,222$ 2,447,777$ Annual debt service requirements to maturity for the discretely presented component unit is as follows: Year Ending December 31,Principal Interest Total2026 39,906,085$ -$ 39,906,085$ 2079 6,428,000 - 6,428,000Total 46,334,085$ -$ 46,334,085$ The following is a summary of the direct borrowing notes payable transactions for the above loan for year ended December 31, 2024. Balance Balance AmountJanuary 1, December 31, Due Within2024 Additions Retirements 2024 One Year46,334,085$ -$ 46,334,085$ -$ SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (19)
NOTE 8 CONDENSED COMBINING INFORMATION FOR BLENDED COMPONENT UNITS

SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (20)
NOTE 8 CONDENSED COMBINING INFORMATION FOR BLENDED COMPONENT UNITS (CONTINUED) SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (21)
NOTE 8 CONDENSED COMBINING INFORMATION FOR BLENDED COMPONENT UNITS (CONTINUED) SACRAMENTO HOUSING AUTHORITY REPOSITIONING PROGRAM, INC. (A COMPONENT UNIT OF THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY) NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 (22)
NOTE 9 RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Subsequent to the financial statements being issued, an error was identified related to the inclusion of a component unit. The component unit should have been included in the financial statements as a discretely presented component unit. The restatement did not result in a restatement of net position.

CONSOLIDATED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS’ REPORT

NORWOOD AVENUE HOUSING CORPORATION

AND AFFILIATED ENTITIES
December 31, 2024 and 2023

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NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES December 31, 2024 and 2023

TABLE OF CONTENTS
Independent Auditor’s Report ....................................................................................................................... 1 Consolidated Statements of Financial Position ............................................................................................. 4 Consolidated Statements of Activities .......................................................................................................... 6 Consolidated Statements of Changes in Net Assets - Net Assets Without Donor Restrictions ................................................................................................................................................ 8 Consolidated Statements of Cash Flows ....................................................................................................... 9 Notes to Consolidated Financial Statements ............................................................................................... 10 Supplementary Information
Consolidating Schedule of Financial Position .......................................................................................... 19 Consolidated Schedule of Activities ........................................................................................................ 21 Other Reports
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ...................................... 22 Summary of Audit Findings and Recommendations ................................................................................ 24

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550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
Norwood Avenue Housing Corporation and Affiliated Entities Opinion
We have audited the accompanying financial statem ents of Norwood Avenue Housing Corporation and Affiliated Entities (the Corporation) which comprise th e consolidated statements of financial position as of December 31, 2024 and 2023, and the related consolidated st atements of operations, changes in net assets and cash flows for the years then ended and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Corporation as of December 31, 2024 and 2023, and the results of its operations, changes in net assets and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing st andards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United St ates. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section or our report. We are required to be independent of the Corporation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles ge nerally accepted in the United States of America; this includes the design, implementation, and maintenance of intern al control relevant to the preparation and fair presentation of financial statements that are free fro m material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going concern within one after the date that the financial statements are available to be issued.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit con ducted in accordance with generally accepted auditing To the Board of Directors
Norwood Avenue Housing Corporation and Affiliated Entities 2 standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from an error, as fraud may involve collusion, forger y, intentional omissions, misrepresentations, or the override of internal control. Misst atements are considered material if there is substantial likelihood that, individually or in the aggregate, they would influe nce the judgement made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgement and maintain professional skepticism throughout the audit.  Identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit pr ocedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control re levant to the audit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgement, there are cond itions or events, considered in the aggregate, that raise substantial doubt about the Corporati on’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant a udit findings, and certain internal control related matters that we identified during the audit.

Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.

The accompanying supplementary info rmation on pages 19 to 21 is presented for the purposes of additional analysis and is also not a required part of the basic financial statements. Such information is the responsibility of management a nd was derived from and relates directly to the underlying accounting and other records used to prepare the financial stat ements. The information has been subjected to the auditing procedures applied in the audit of the b asic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statem ents or to the financial statements themselves, and other additional procedures in accordance with auditi ng standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated August 13, 2025 on our consideration of the Corporation’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters.

The purpose of that report is to describe the scope of our testing of internal control over financial To the Board of Directors
Norwood Avenue Housing Corporation and Affiliated Entities 3 reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s internal control over financial reporting and compliance.

August 13, 2025
2024 2023

CURRENT ASSETS
Cash and cash equivalents 1,475,014 $ 3,374,427 $
Tenant accounts receivable, net 110,415 102,459 Accounts receivable - other 262,864 Due from affiliates 201,828
Prepaid expenses 85,331 90,865
Total current assets 1,872,588 3,830,615

DEPOSITS HELD IN TRUST - FUNDED
Tenant security deposits 162,591 149,341

NON-PROJECT FUNDS HELD FOR NAHC
NAHC cash 22

RESTRICTED DEPOSITS
Replacement reserve 1,415,051 1,261,890
Operating deficit reserve 557,508 549,062
Transition reserve 557,508 549,062
Bond proceeds reserve 604,262 600,344
Other reserves 458,367 394,698
Total restricted deposits 3,592,696 3,355,056

RENTAL PROPERTY
Land, buildings and improvements 68,495,860 68,130,215 Land improvements 7,447,975 7,447,975
Furniture and equipment 1,387,471 1,387,471
77,331,306 76,965,661
Accumulated depreciation (39,964,086) (38,259,809)
Total rental property, net of depreciation 37,367,220 38,705,852

OTHER ASSETS
Developer fee receivable 481,886 481,886
Total other assets 481,886 481,886
TOTAL ASSETS 43,476,981 $ 46,522,772 $

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES December 31, 2024 and 2023

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Continued)
4 2024 2023

CURRENT LIABILITIES
Accounts payable 560,263 $ 135,659 $
Accrued expenses 167,583 127,393
Prepaid rent 24,885 65,566
Due to affiliates 186,588 102,285
Deferred income 92,692 384,749
Accrued interest payable - first mortgage and bonds 41,222 43,706 Current maturities of long-term debt - first mortgages and bonds 889,999 859,013 Total current liabilities 1,963,232 1,718,371

DEPOSITS LIABILITY
Tenant security deposits 162,591 148,841

LONG-TERM LIABILITIES
Mortgages and bonds payable, net of current maturities - first mortgage 11,634,017 12,495,684
Mortgages payable, net of current maturities - other mortgages 21,679,776 21,792,975 Accrued interest payable 6,005,713 6,523,880
Total long-term liabilities 39,319,506 40,812,539
TOTAL LIABILITIES 41,445,329 42,679,751

NET ASSETS - NET ASSETS
WITHOUT DONOR RESTRICTIONS 2,031,652 3,843,021
TOTAL LIABILITIES AND NET ASSETS 43,476,981 $ 46,522,772 $ See notes to consolidated financial statements

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CONTINUED December 31, 2024 and 2023
5 2024 2023
Rental revenue
Rental income 8,669,474 $ 7,669,968 $
Vacancies and concessions (1,326,593) (1,012,497)
Other operating income 63,574 84,337
Total rental revenue, net 7,406,455 6,741,808
Rental - operating expenses
Administrative 1,464,249 1,558,301
Operating and maintenance 3,582,421 2,318,356
Utilities 582,726 529,910
Taxes and insurance 642,073 628,026
Total operating expenses 6,271,469 5,034,593
Net rental operating income 1,134,986 1,707,215
Rental - other income (expense)
Interest income 33,338 10,174
Miscellaneous income 2,874
Interest expense - first mortgage and bonds (511,911) (559,631) Interest expense - other loans (633,090) (651,995) Other financial expense (35,205) (35,205)
Depreciation (1,704,277) (1,729,073)
Total other income (expense) (2,851,145) (2,962,856) Net decrease in net assets from rental activities (1,716,159) (1,255,641)

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

CONSOLIDATED STATEMENTS OF ACTIVITIES
Years ended December 31, 2024 and 2023
(Continued)
6 2024 2023
Corporate expenses
Professional services 8,150 $ 50,037 $
Directors' and officers insurance 2,039 2,039 Permits and fees 21 100
Other expense 85,000 90,363
Total corporate expenses 95,210 142,539
Net decrease in net assets from corporate activities (95,210) (142,539)

TOTAL DECREASE IN NET ASSETS -
WITHOUT DONOR RESTRICTIONS (1,811,369) $ (1,398,180) $

See notes to consolidated financial statements

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

CONSOLIDATED STATEMENTS OF ACTIVITIES - CONTINUED
Years ended December 31, 2024 and 2023
7 Total
Balance, January 1, 2023 5,241,201 $
Decrease in net assets - without donor restrictions (1,398,180) Balance, December 31, 2023 3,843,021
Decrease in net assets - without donor restrictions (1,811,369) Balance, December 31, 2024 2,031,652 $
See notes to consolidated financial statements
Years ended December 31, 2024 and 2023

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NET ASSETS - NET ASSETS WITHOUT DONOR RESTRICTIONS

CONSOLIDATED STATEMENTS OF CHANGES IN
8 2024 2023
Cash flows from operating activities
Decrease in net assets - unrestricted (1,811,369)$ (1,398,180)$ Adjustments to reconcile decrease in unrestricted
net assets to net cash provided by operating activities Depreciation 1,704,277 1,729,073
Amortization of mortgage fees included in interest expense 28,331 28,331 Changes in:

Tenant accounts receivable, net (7,956) 32,832 Accounts receivable - other 262,864 115,256
Prepaid expenses 5,534 (48,423)
Accounts payable 424,604 58,019
Accrued expenses 40,190 (38,444)
Deferred income (292,057) 377,354
Accrued interest (520,651) 611,390
Due to affiliates (117,525) 2,612
Tenant security deposits 13,750 (8,909)
Prepaid rent (40,681) (138,155)
Net cash (used) provided by operating activities (310,689) 1,322,756 Cash flows from investing activities
Purchase of fixed assets (365,645) (75,294)
Deposits to reserves (915,668) (1,143,293)
Withdrawals from reserves 678,028 1,479,991
Net cash (used) provided by investing activities (603,285) 261,404 Cash flows from financing activities
Principal payments on mortgages and bonds payable - first mortgage (859,012) (831,033) Principal payments on mortgages payable - other mortgage (113,199) Net cash used in financing activities (972,211) (831,033) Net (decrease) increase in cash and cash equivalents (1,886,185) 753,127 Cash, cash equivalents and restricted cash, beginning 3,523,790 2,770,663 Cash, cash equivalents and restricted cash, ending 1,637,605 $ 3,523,790 $ Supplemental disclosure of cash flow information
Cash paid for interest 1,665,652$ 1,067,435 $
Reconciliation of cash, cash equivalents and restricted cash balances:

Cash and cash equivalents 1,475,014$ 3,374,427$
Tenant security deposits 162,591 149,341
NAHC cash 22
Total cash, cash equivalents and restricted cash 1,637,605 $ 3,523,790 $ See notes to consolidated financial statements

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2024 and 2023
9 NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2024 and 2023
10 NOTE A - ORGANIZATION AND NATURE OF OPERATIONS
The Norwood Avenue Housing Corporation and Affiliated Entities, A Component Unit of the Sacramento Housing and Redevelopment Agency, (the Corpor ation), is a non-profit non-stock public benefit corporation established on Septem ber 11, 1991 to develop and a dvance the social, economic and charitable welfare of the community and to improve the living conditions of low- and moderate-income people through the acquisition, deve lopment, rehabilitation, and mana gement of affordable housing.

Operations consists of the rental of two low- income housing projects and the management of its partnership investments in affordable housing properties.

The Executive Director of the Sacramento Housing and Redevelopment Agency (the Agency) appoints the Corporation’s Board of Directors, which appr oves the annual budget and amendments to the Articles of Incorporation and Bylaws. Upon fu ture dissolution of the Corporation, remaining assets will revert to the Agency. Accordingly, the Corporation is consider ed to be a governmental unit for financial reporting purposes. Although the Corporation is legally se parate from the Agency, governmental accounting standards require the Corporation to be reported as a component unit of the Agency for financial reporting purposes.

Financial Statements Presentation: The Corporati on is required to report in formation regarding its financial position and activities according to two classes of net assets: net assets with donor restrictions and net assets without donor restrictions. Furthermor e, information is required to segregate program service expenses from management and general expe nses. Interest earnings on net assets with donor restrictions are recognized as net assets without donor restrictions.

Donor-restricted contributions are reported as increa ses in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statement of activities. The Corporation has no net assets with donor restrictions.

Principles of Consolidation: The consolidated financial statements include the accounts of the Corporation and two of its affiliates. All significan t inter-company transactions and balances have been eliminated in consolidation.

The Corporation is a sole owner of the following pr operties that are consolidated in these Norwood financial statements.
— The Corporation owns 100% interest in New Phoenix Park I, LLC, which was formed on November 5, 2021, a low income housing ap artment project located in Sacramento, California with 178 units.
— The Corporation owns 100% interest in New Phoenix Park II, LLC, which was formed on November 5, 2021, a low-income housing ap artment project located in Sacramento, California, with 182 units. On August 31, 2022, New Phoenix Park II, LLC acquired the assets of Phoenix Park II, L.P.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting of Basis: The financial statements have been prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America.

Accordingly, income is recognized as earned and expenses as incurred, regardless of the timing of payments.

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
11 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash Equivalents: All highly liquid instruments with an original maturity of three months or less are considered to be cash equivalents.

Restricted Deposits: In accordance w ith loan and partnership agreements , the Corporation is required to set aside amounts for the replacement of property and ot her project expenditures. Restricted deposits are held in separate accounts and generally are not available for operating purposes.

Tenant Accounts Receivable: Tenant accounts receivable are charged to bad debts expense when they are determined to be uncollectible based upon the peri odic review of the accounts by management. U.S. generally accepted accounting principles (GAAP) require that the allowance method be used to recognize bad debts; however, the effect of using the direct write-off method is not materially different from the results that would have been obtained under the allowance method.

Rental Property: Rental property is carried at co st and includes all direct costs of development and construction. Depreciation is provide d for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated useful service lives ra nging from 5 to 40 years using the straight-line method. Maintenance and repair costs are charged to operating expenses as incurred. Upon disposal of depreciable property, the appropriate property account s are reduced by the related costs and accumulated depreciation. Any resulting gains and losses are reflected in the statement of operations.

Impairment of Long-Lived Assets: The Corporati on reviews its investment in rental property for impairment whenever events or changes in circum stances indicate that the carrying amount of the asset may not be recoverable. When recovery is review ed, if the undiscounted cash flows estimated to be generated by the property are less than its carrying amount, management compares the carrying amount of the property to its fair value in order to determine whether an impairment loss has occurred. The amount of the impairment loss is equal to the excess of the as set’s carrying value over its estimated fair value. No impairment loss was recognized during the years ended December 31, 2024 and 2023.

Rental Income: Residential rental income is rec ognized as rents become due. Rental payments received in advance are deferred until earned. All leases between the Corporation and tenants of the property are operating leases.

Advertising and Marketing Costs: Advertising and marketing costs are expensed as incurred.

Use of Estimates: The preparation of financial st atements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statemen ts and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes: The Corporation has applied for an d received a determination letter from the Internal Revenue Service (IRS) to be treated as a tax-exempt entity pursuant to Section 501(c)(3) of the Internal Revenue Code. For the years ended December 31, 2024 and 2023, management believes that all activities of the Corporation were within its tax exempt guide lines and the Corporation did not have any unrelated business income. The Corporation is required to file tax returns with the IRS and other taxing authorities.

Accordingly, these financial statements do not reflect a provision for income taxes and the Corporation has no other tax positions which must be considered for disclosure.

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
12 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Corporation’s federal returns for the years e nded December 31, 2023, 2022, and 2021 could be subject to examination by federal taxing authorities, ge nerally for three years after they are filed. The Corporation’s state returns for the years ended December 31, 2023, 2022, 2021, and 2020 could be subject to examination by state taxing authorities, generally for four years after they are filed.

The consolidated partnerships are pass-through enti ties for income tax purposes and are not subject to income taxes. All items of taxable income, deducti ons and tax credits are passed through to, and are reported by, their owners on their respective income ta x returns. The Partnerships’ federal tax status as pass-through entities is based on their legal status as partnerships. The Partnerships are required to file tax returns with the Internal Revenue Service and othe r taxing authorities. Accordingly, these financial statements do not reflect a provision for income tax es and the Partnerships ha ve no other tax positions which must be considered for disclosure.

Subsequent Events: The Corporation evaluated all ev ents or transactions that occurred after December 31, 2024 and up to August 13, 2025, the date the financial statements were issued. During this period, the Corporation did not have any recognizable or nonrecognizable subsequent events.

NOTE C - HOUSING ASSISTANCE PAYMENT CONTRACT AGREEMENT
The Housing Authority of the City of Sacramento h as contracted with the Corporation to make housing assistance payments to the Corporatio n on behalf of qualified tenants. There are two agreements, one for New Phoenix Park I that expires February 19, 2034 and one for New Phoenix Park II that expires on December 31, 2029. During the years ended December 31, 2024 and 2023, the Corporation received housing assistance payments of $5, 544,418 and $5,062,626 resp ectively, which are included as rental income in the consolidated statement of activities.

NOTE D - MANAGEMENT FEE
The Corporation has entered into agreements with the John Stewart Company, an unrelated party, to provide services in connection with the rent-up, leasi ng and operation of the Part nerships. Management fees for New Phoenix Park I were charged at a rate of 5.49% of gross collections per month and varied month to month during the years ended December 31, 2024 and 2023. Management fees for New Phoenix Park II were charged $14,742 per month fo r the years ended December 31, 2024 and 2023, respectively. Management fees incurred and charge d to operations during the years ended December 31, 2024 and 2023, were $369,852 and $359 ,414, respectively. In addition, the John Stewart Company charges the Corporation a bookkeeping fee of $4,680 per month. Bookkeeping fees incurred and charged to operations during the years ended December 31, 2024 and 2023 were $56,160 and $56,160, and are included in miscellaneous operating expenses on the statement of operations.

NOTE E - RELATED PARTY TRANSACTIONS
Due from Affiliates: The amounts reported as Due fr om Affiliates represents asset management, equity distributions to Norwood from New Phoenix Park 1 and New Phoenix Park II that are held by the Agency (SHRA) and not yet transferred to Norwood. The am ounts owed from the Agency at December 31, 2024 was $201,717. There were no amounts owed from the Agency at December 30, 2023.

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
13 NOTE E - RELATED PARTY TRANSACTIONS (Continued)
Compensation: According to the Memorandum of Understanding for Funding and Administrative Services Agreement as of June 5, 2012, the Corpora tion is to reimburse the Agency on an annual basis $85,000 as payment for staff services used to support ongoing operations and exis ting project oversight.

The fee shall be paid on a lump sum basis within 90 days of fiscal year end. The 2024 and 2023 payments were not made as of December 31, 2024 . The amounts payable at December 31, 2024 and 2023 were $170,000 and $85,000, respectively.

Asset Management Fee: In 2020, the investor and special limited partners exited the Phoenix Park I, L.P.

The limited partners were replaced by Shasta Hotel Corpor ation (SHC), an affiliate of the Corporation.

On September 29, 2021, Phoenix Park I, L.P. was sold New Phoenix Park I, LLC, but still owed SHC $16,588 in asset management fees. As Phoenix Park I, L.P. no longer existed, the liability was transferred to the Corporation. As of December 31, 2024 and 2023, this amount was still owed to SHC.

NOTE F - DEVELOPMENT FEE
According to the Assignment and Assumption Agr eement between JHC-Hotel Berry LLC, a California Limited Liability Company, and Norwood Avenue Housing Corporation, a development fee is to be paid to the Corporation in the amount of $493,000 from JHC in consideration of the predevelopment activities performed by the Corporation in connection with th e entitlement development rehabilitation of the Hotel Berry Project. As of December 31, 2024 and 2023, $481,886 has not been paid and was accrued as a receivable.

NOTE G - MORTGAGES AND BONDS PAYABLE
The Corporation’s mortgages and bonds payable consist of the following at December 31:

Interest Interest
Payable Principal Payable Principal
First Mortgages and Bonds
$ 15,042 $ 7,648,631 $ 16,190 $ 8,232,079 2024 2023
Housing and Urban Development (HUD) note dated
September 1, 2021, payable to Lument Capital, LLC in the original amount of $9,450,000 related to New Phoenix I. The note bears interest at 2.36% per annumand requires monthly paym ents of principal and interest in the am ount of $64,287 through April 1, 2029 and $20,426 from May 1, 2029 through October 1, 2056. The note is secured by a first deed of trust encum bering the rental property and is nonrecourse debt.

During the years ended December 31, 2024 and 2023 interest expense of $186,846 and $200,467 was incurred.

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
14 NOTE G - MORTGAGES AND BONDS PAYABLE (Continued)
Interest Interest
Payable Principal Payable Principal
First Mortgages and Bonds (Continued)
$ 26,180 $ 5,400,026 $ 27,516 $ 5,675,590 Total First Mortgages and Bonds 41,222 13,048,657 43,706 13,907,669 Less: Current portion (41,222) (889,999) (43,706) (859,013) Less: Unam ortized m ortgage fees (524,641) (552,972) Total - 11,634,017 - 12,495,684 Other Mortgages
2,321,246 4,062,867 2,422,151 4,062,867 61,764 11,818,469 288,318 11,931,668
Multifam ily loan in the original am ount of $6,000,000 dated August 31, 2022, payable to Orix Real Estate Capital, LLC related to New Phoenix Park II. The note bears interest at

5.63% per annum and requires m onthly paym ents of principal and interest of $49,440 through Septem ber 2037. The note is secured by a first deed of trust encumbering the rental property and is nonrecourse debt. During the years ended December 31, 2024 and 2023 interest expense of $316,378 and $330,833, respectively, was incurred.
2024 2023
Note payable to the Housing Authority of the City of
Sacram ento, dated February 19, 2004, in the am ount of $4,062,867 was assumed by the New Phoenix Park I on
Septem ber 29, 2021. The note bears interest of 3% on the first $1,644,117 and 4.94% on the remaining balance, and is
secured by a subordinated deed of trust. Principal paym ents are deferred until 2059. Interest paym ents are to be m ade m onthly, until paid in full, only to the ex tent that residual receipts incom e is available, as defined in the loan
agreement. During the years ended December 31, 2024 and 2023, interest expense of $168,413 and $205,037, respectively, was incurred.

Note payable to the Multifam ily Housing Program (MHP)
State of California Departm ent of Housing and Com m unity Development (the Department), dated December 20, 2006, in the am ount of $11,931,668 was assum ed by New Phoenix
Park II on Septem ber 1, 2022. The note bears sim ple interest of 3.0% per annum and is secured by a deed of trust.

Paym ent of the entire unpaid principal am ount, together with all accrued but unpaid interest, is due on Decem ber 20, 2061.

Interest paym ents in the am ount of 0.42% per annum on the unpaid principal balance of the loan are to be paid annually beginning Decem ber 31, 2006 and continuing annually
thereafter, up to and including December 31, 2035.

Com m encing Decem ber 31, 2036 and continuing annually thereafter, annual loan paym ents in an am ount equal to the l e s s e ro f( 1 )t h ef u l la m o u n to fi n t e r e s ta c c r u i n go nt h e unpaid principal am ount advanced under the Loan
Docum ents for the im m ediately preceding twelve (12) m onth period, or (2) the am ount determ ined by the Project to be necessary to cover the costs of continued m onitoring of the Project for com pliance with the requirem ents of the Program .

Additional paym ents are to be m ade only to the ex tent that net cash flow is available, as is defined in the regulatory agreem ent. Interest ex pense charged to operations during the years ended December 31, 2024 and 2023 was $270,614 and $273,000, respectively.

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
15 NOTE G - MORTGAGES AND BONDS PAYABLE (Continued)
Interest Interest
Payable Principal Payable Principal
Other Mortgages (Continued)
$ 1,140,900 $ 1,213,307 $ 1,179,888 $ 1,213,307 2,481,803 4,585,133 2,633,523 4,585,133 Total Other Mortgages 6,005,713 21,679,776 6,523,880 21,792,975 Total $ 6,005,713 $ 33,313,793 $ 6,523,880 $ 34,288,659 Note payable to the Agency (predevelopm ent loan A), dated October 1, 2004, in the amount of $2,286,163 was assumed by New Phoenix Park II on September 1, 2022. The note bears interest at 3.0% per annum and is secured by a deed of trust and assignment of rents. The loan matures on October 1, 2059. Interest paym ents are to be m ade m onthly only to the ex tent that residual receipts are available, as defined. Interest ex pense charged to operations during the year and four m onths ended Decem ber 31, 2024 and 2023 was $36,400 and $36,400, res pectively.
2024 2023
Note payable to the Agency (predevelopm ent loan B), dated October 1, 2004, in the amount of $7,093,587 was assumed by New Phoenix Park II on September 1, 2022. The note bears interest at 3.0% per annum and is secured by a deed of trust.

The note m atures on the first day of the Six Hundred and Six ty-first (661st) calendar m onth following the date of the origination of the perm anent loan, but not later than the first day of the Six Hundred and Eighty-fifth (685th) calendar m onth following the date of the origination of the
construction loan. Interest paym ents begin the first day of the first calendar m onth following the construction loan origination. All m onthly paym ents are to be m ade only to the ex tent that residual receipts are available, as defined in the loan agreement. Interest ex pense charged to operations during the year and four m onths ended Decem ber 31, 2024 and 2023 was $138,019 and $135,558, respectively.

Mortgage costs of $598,710 are amortized over the term of the loan using the straight-line method. GAAP requires that the effective yield method be used to am ortize financing costs; however, the effect of using the straight-line method is not materially different fr om the results that would have been obtained under the effective yield method. As of December 31, 2024 and 2023, accumulated amortization of mortgage costs was $74,069 and $45,738, respectively.

Future principal payments on the above notes payabl e for each of the next five years and thereafter following December 31, 2024 are as follows:

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
16 NOTE G - MORTGAGES AND BONDS PAYABLE (Continued)
2025 889,999$
2026 921,398
2027 954,143
2028 987,578
2029 670,584
Thereafter 30,304,731
Total 34,728,433
Less current maturities (889,999)
Less unamortized mortgage fees (524,641)
Net long-term portion 33,313,793$
There are various restrictive covenants under short-te rm borrowings and long-term debt relating to the occurrence of material adverse changes in financ ial conditions, compliance with regulatory program requirements, and limitations on add itional indebtedness. Management believes the Organization was in compliance with these covenants at December 31, 2024 and 2023.

NOTE I – DISTRIBUTIONS
All increases and decreases in net assets are allocated in accordance with specific criteria as defined in the respective partnership agreements of the Corporation’s consolidated affiliates.

Also, distributions are restricted to cash available fo r distribution as defined in the respective partnership agreements of the Corporation’s consolidated affiliates.

NOTE J – CONCENTRATION OF CREDIT RISK
Financial instruments exposed to concentra tions of credit risk at December 31, 2024 and 2023 included cash in banks of $1,349,870 and $3,223,698, respectively, which was not federally insured.

NOTE K – CONTINGENCIES
The consolidated partnership’s low-income housing tax credits are contingent on their ability to maintain compliance with applicable sections of Section 42 . Failure to maintain compliance with occupant eligibility, and/or unit gross rent or to correct nonc ompliance within a specified time period could result in recapture of previous tax credits plus interest. In addition, such potential noncompliance may require an adjustment to capital contributions by the limited partners.

NOTE L – CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS The majority of the Corporation’s assets are comprise d of two low-income housing rental projects. The Corporation’s operations are concentrated in the multi-family real estate market. In addition, the Corporation operates in a heavily regulated environmen t. The operations of the Corporation are subject to administrative directives, rules and regulations of go vernment agencies, including but not limited to, the

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
17 NOTE L – CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS (Continued) Agency. Such administrative dir ectives, rules and regulations are subject to change with little or inadequate notice or inadequate funding to pay for the related cost, including administrative burden, to comply with a change.

NOTE M – CONDENSED FINANCIAL INFORMATION OF NORWOOD AVENUE HOUSING

CORPORATION
Condensed statement of financial position as of Decem ber 31, 2024 and 2023, a nd the related condensed statement of activities for the years then ended for Norwood Avenue Housing Corporation is presented as follows:
2024 2023

CURRENT ASSETS
Cash and cash equivalents 1,313,361 $ 816,557 $
Developer fee receivable 481,886 481,886
Due from SHRA 201,717
Total current assets 1,996,964 1,298,443

NONCURRENT ASSETS
Management fee receivable 12,051
Total noncurrent assets 12,051
TOTAL ASSETS 1,996,964 $ 1,310,494 $

CURRENT LIABILITIES
Due to SHRA 170,000 $ 85,000 $
Due to SHC 16,588 16,588
Total current liabilities 186,588 101,588
NET ASSETS 1,810,376 1,208,906
TOTAL LIABILITIES AND NET ASSETS 1,996,964$ 1,310,494 $ 2024 2023
Revenues
Partnership management income 61,878 $ 12,051 $
Other operating income 2,874
Total revenue corporate 61,878 14,925
Expenses
Administrative fee 85,000 85,000
Professional services 8,150 50,037
Other expense 2,060 7,502
Total corporate expenses 95,210 142,539
Total decrease in net assets (33,332) $ (127,614) $

STATEMENTS OF FINANCIAL POSITION

STATEMENTS OF ACTIVITIES

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2024 and 2023
18 NOTE N – AVAILABILITY AND LIQUIDITY
The following represents the Corporation’s financial assets at December 31:
2023 2022
Financial assets at year end:

Cash and cash equivalents 1,475,014 $ 3,374,427 $
Tenant accounts receivable, net 110,415 102,459
Accounts receivable - other 262,864
Financial assets available to meet general expenditures over the next twelve months 1,585,429 $ 3,739,750 $

The Corporation’s cash is maintained mostly in checking and savings accounts, totaling $1,475,014 and $3,374,427 at December 31, 2024 and 2023, respectively, pr oviding the Corporation with the needed liquidity to meet cash needs for general expenditur es within one year of the balance sheet date. The Corporation also has cash balances ma intained in various restricted r eserves that can be used to pay certain expenses, but withdrawals from these reserves must be approved by the State.

SUPPLEMENTARY INFORMATION

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Total Before
Norwood New Phoenix New Phoenix Consolidating Consolidating Ave Park I Park II Entries Entries Totals

CURRENT ASSETS
Cash and cash equivalents 1,313,361 $ 42,504 $ 119,149 $ 1,475,014 $ 1,475,014 $ Tenant accounts receivable, net 55,029 55,386 110,415 110,415 Due from affiliates 201,717 111 201,828 (168) 201,660 Prepaid expenses 50,099 35,232 85,331 85,331 Total current assets 1,515,078 147,743 209,767 1,872,588 (168) 1,872,420

DEPOSITS HELD IN TRUST - FUNDED
Tenant security deposits 79,746 82,845 162,591 162,591

RESTRICTED DEPOSITS
Replacement reserve 658,062 756,989 1,415,051 1,415,051 Operating deficit reserve 557,508 557,508 557,508 Transition reserve 557,508 557,508 557,508
Bond proceeds reserve 604,262 604,262 604,262
Other reserves 245,092 213,275 458,367 458,367
Total restricted deposits 1,507,416 2,085,280 3,592,696 3,592,696

RENTAL PROPERTY
Land 411,840 5,277,973 5,689,813 1,758,162 $ 7,447,975 Buildings and improvements 13,209,936 21,341,471 34,551,407 33,944,453 68,495,860 Furniture and equipment 1,387,471 1,387,471 13,621,776 26,619,444 40,241,220 37,090,086 77,331,306 Accumulated depreciation (1,065,583) (1,244,724) (2,310,307) (37,653,779) (39,964,086) Total rental property, net of depreciation 12,556,193 25,374,720 37,930,913 (563,693) 37,367,220

OTHER ASSETS
Developer fee receivable 481,886 481,886 481,886
Total other assets 481,886 - - 481,886 481,886 TOTAL ASSETS 1,996,964 $ 14,291,098 $ 27,752,612 $ 44,040,674 $ (563,861) $ 43,476,813 $

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

SUPPLEMENTARY INFORMATION

CONSOLIDATING SCHEDULE OF FINANCIAL POSITION
December 31, 2024
19 Total Before
Norwood New Phoenix New Phoenix Consolidating Consolidating Ave Park I Park II Entries Entries Totals

CURRENT LIABILITIES
Accounts payable 255,128$ 305,135 $ 560,263 $ 560,263 $ Accrued expenses 84,520 83,063 167,583 167,583
Prepaid rent 9,946 14,939 24,885 24,885
Due to affiliates 186,588 $ 168 186,756 (168) 186,588 Deferred income 37,784 54,908 92,692 92,692
Accrued interest payable - first
mortgage and bonds 15,042 26,180 41,222 41,222
Current maturities of long-term
debt - first mortgages and bonds 597,367 292,632 889,999 889,999 Total current liabilities 186,588 999,787 777,025 1,963,400 (168) 1,963,232

DEPOSITS LIABILITY
Tenant security deposits 79,746 82,845 162,591 162,591

LONG-TERM LIABILITIES
Mortgages and bonds payable, net of
current maturities - first mortgage 6,775,449 4,858,568 11,634,017 11,634,017 Mortgages payable, net of current
maturities - other mortgages 4,062,867 17,616,909 21,679,776 21,679,776 Accrued interest payable 2,321,246 3,684,467 6,005,713 6,005,713 Total long-term liabilities 13,159,562 26,159,944 39,319,506 39,319,506 TOTAL LIABILITIES 186,588 14,239,095 27,019,814 41,445,497 (168) 41,445,329

NET ASSETS - NET ASSETS
WITHOUT DONOR RESTRICTIONS 1,810,376 52,171 732,798 2,595,345 (563,693) $ 2,031,652 TOTAL LIABILITIES AND NET ASSETS 1,996,964$ 14,291,266 $ 27,752,612 $ 44,040,842 $ (563,861) $ 43,476,981 $

SUPPLEMENTARY INFORMATION
CONSOLIDATING SCHEDULE OF FINANCIAL POSITION - Continued December 31, 2024

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES 20 Total Before
Norwood New Phoenix New Phoenix Consolidating Consolidating Ave Park I Park II Entries Entries Totals
Rental revenue
Rental income 4,271,910 $ 4,397,564 $ 8,669,474 $ 8,669,474 $ Vacancies and concessions (646,504) (680,089) (1,326,593) (1,326,593) Other operating income 35,258 28,316 63,574 63,574
Total rental revenue, net 3,660,664 3,745,791 7,406,455 7,406,455 Rental - operating expenses
Administrative 762,867 701,382 1,464,249 1,464,249
Operating and maintenance 1,828,157 1,754,264 3,582,421 3,582,421 Utilities 303,779 278,947 582,726 582,726
Taxes and insurance 313,902 328,171 642,073 642,073
Total operating expenses 3,208,705 3,062,764 6,271,469 6,271,469 Net rental operating income 451,959 683,027 1,134,986 1,134,986 Rental - other income (expense)
Interest income 6,134 27,204 33,338 33,338
Interest expense - first
mortgage and bonds (195,533) (316,378) (511,911) (511,911) Interest expense - other loans (168,413) (464,677) (633,090) (633,090) Other financial expense (35,205) (35,205) (35,205) Depreciation (331,545) (535,875) (867,420) (836,857) $ (1,704,277) Annual fee from affiliates 61,878 $ 61,878 (61,878) Annual fee to affiliates (25,000) (36,878) (61,878) 61,878 Total other income (expense) 61,878 (714,357) (1,361,809) (2,014,288) (836,857) (2,851,145) Net (decrease) increase in net
assets from rental activities 61,878 (262,398) (678,782) (879,302) (836,857) (1,716,159) Corporate expenses
Professional services 8,150 8,150 8,150
Directors' and officers insurance 2,039 2,039 2,039
Permits and fees 21 21 21
Administrative services 85,000 85,000 85,000
Total corporate expenses 95,210 95,210 95,210

TOTAL INCREASE (DECREASE)

IN NET ASSETS - WITHOUT
DONOR RESTRICTIONS (33,332) (262,398) (678,782) (974,512) (836,857) (1,811,369) Net assets, beginning of year 1,208,906 404,341 1,956,610 3,569,857 273,164 3,843,021 Capital contributions from (to)
affiliated properties 634,802 (89,772) (545,030) NET ASSETS AT END OF YEAR 1,810,376$ 52,171$ 732,798$ 2,595,345$ (563,693)$ 2,031,652$

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

SUPPLEMENTARY INFORMATION

CONSOLIDATED SCHEDULE OF ACTIVITIES
Year ended December 31, 2024
21 (This page intentionally left blank.)

OTHER REPORTS

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550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
22 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Norwood Avenue Housing Corporation and Affiliated Entities, A Component Unit of the Sacramento Housing and Redevelopment Agency We have audited, in accordance with the auditing st andards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United St ates, the financial statements of Norwood Housing Corporation and Affiliated Entities (the Corporation) , which comprise the statement of financial position as of December 31, 2024, and the related statements of activities, changes in net assets, and cash flows for the year then ended, and the related notes to the fina ncial statements, and have issued our report thereon dated August 13, 2025.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Corporation’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effec tiveness of the Corporation’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Corporation’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned func tions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be preven ted, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of defici encies, in internal control that is less severe than a material weakness, yet important e nough to merit attention by those charged with governance.

Our consideration of internal control was for the lim ited purpose described in the first paragraph of this section and was not designed to identify all deficienci es in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these lim itations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and recommendations as items 2024-1 and 2024-2 that we consider to be significant deficiencies.

To the Board of Directors
Norwood Avenue Housing Corporation and Affiliated Entities 23 Compliance and Other Matters
As part of obtaining reasonable assurance about whethe r the Corporation’s financial statements are free from material misstatement, we performed tests of its compliance with certa in provisions of laws, regulations, contracts, and grant agreements, noncomplia nce with which could have a direct and material effect on the financial statements. However, provi ding an opinion on compliance with these provisions was not an objective of our audit and, accordingly, we do not express such an opi nion. The results of our tests disclosed no instances of noncompliance or othe r matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the sc ope of our testing of internal control and compliance and the result of that testing, an d not to provide an opi nion on the effectiveness of the Corporation’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s in ternal control and compliance.

Accordingly, this communication is not suitable for any other purpose.

August 13, 2025

NORWOOD AVENUE HOUSING CORPORATION AND AFFILIATED ENTITIES

SUMMARY OF AUDIT FINDINGS AND RECOMMENDATIONS
December 31, 2024
24 Findings and Recommendations:
2024-1
Finding: We recorded an audit adjustment to remove a double accrual for the 2023 asset management fee receivable from New Phoenix Park I, one of the affiliated entities included in the Norwood consolidated financial statements, which was accrued in 2023 and received in 2024.

Recommendation: The Corporation needs to ensure that resources are provided to ensure that the books are closed and available for audit closer to the end of the fiscal year. The Corporation also needs to ensure as part of the closing process that the net assets at the beginning of the year match the ending audited balances from the prior year, and to ensure that for any fees accrued on the affiliates that there is a corresponding receivable recorded in Norwood’s general ledger. 2024-2
Finding: During our audit, we noted approxi mately $200,000 of 2024 distributions and asset management fees received from affiliated entities were deposited into a bank account within SHRA in error. The amount is reported in Note M as due from SHRA.

Recommendation: We recommend the Corporati on establish policies and procedures to ensure cash received is deposited into the correct bank accounts.

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©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.Audit PresentationYear ended December 31, 2024Sacramento Housing and Redevelopment Agency1

©2023 CliftonLarsonAllen LLP2Agenda•Audit Scope and Process•Audit Opinions and Communications•Financial Statement Highlights •Significant Audit Changes•Upcoming GASB Pronouncements ©2023 CliftonLarsonAllen LLP3
Audit ScopeReport on the organization’s financial statementsReport on internal control over Financial Reporting on Compliance and Other Matters under Government Auditing StandardsReport on internal control over compliance with major program requirements (federal awards)Required governance communication lettersSubmission to REAC & Federal Audit Clearinghouse (DCF)

©2023 CliftonLarsonAllen LLP
4 Audit Process
Internal controlsRevenue recognitionSignificant estimatesSingle AuditRISK-BASED APPROACHDebt/Notes ReceivablesGroup Audit ©2023 CliftonLarsonAllen LLP5Financial statementOne material weaknesses noted.No significant deficiencies noted.Federal awardsTwo material weaknesses noted.Three significant deficiencies noted.

Financial statementFinancial statement audit opinion is unmodified..Federal awardsFederal awards audit opinion is unmodified..audit opinion is unmodified.AUDIT OPINIONS AUDIT RESULTS 5 ©2023 CliftonLarsonAllen LLP6
Programs Tested Public and Indian Housing14.850Housing Voucher Cluster14.871/14.879Capital Fund Program14.872Community Development Block Grants14.218COVID-19 Coronavirus State and Local Fiscal Recovery Funds21.027COVID-19 Emergency Rental Assistance21.023 ©2023 CliftonLarsonAllen LLP
Financial Statement - Significant Deficiency 2024-001: Financial Close ProcessThe trial balance provided for the audit required significant reconciliations and additional adjustments to properly reflect the financial activity for the year .

©2023 CliftonLarsonAllen LLP
Federal Awards – Material Weakness (County)2024-002: HCVP Eligibility InspectionsDuring our testing of 60 files for HCVP eligibility criteria we noted 23 of 60 files tested had annual recertifications that were not processed within the regulatory period of 12 months.

©2023 CliftonLarsonAllen LLP
Federal Awards – Significant Deficiency (County)2024-003: HCVP HQS Failed Inspections During our testing of 40 files for HQS inspection criteria we noted 1 of 40 files tested had a failed inspection that was not reinspected in a timely manner ..

©2023 CliftonLarsonAllen LLP
Federal Awards – Significant Deficiency (County)2024-004: Annual HQS Inspections During our testing of 60 files for HQS inspection criteria we noted 1 of 60 files tested had no annual inspection completed since November 2022.

©2023 CliftonLarsonAllen LLP
Federal Awards – Material Weakness (City & County)2024-005: Public Housing Eligibility During our testing of 40 files for eligibility, we noted 16 of 40 files tested had the following exceptions: - City: 8 instances where the annual certification was not completed on an annual basis.- County: 7 instances where the annual certification was not completed on an annual basis.- County: 1 instance where the annual recertification was not completed in 2024 and the last recertification had not been conducted since 2022.

©2023 CliftonLarsonAllen LLP
Federal Awards – Significant Deficiency (City & County)2024-006: Emergency Solutions Grant - Subrecipient Payments During our testing of 29 payments to subrecipients in 2023, 10 were not done within 30 days after receiving the payment request. A follow-up selection was made in 2024 which was also not paid on time.

©2023 CliftonLarsonAllen LLP13
Governance CommunicationsEstimates•We evaluated significant estimates and are comfortable with them•Other Post-employment Benefits (OPEB) Liability•PensionOther•Reissuance of Financial Statements•46 adjusting journal entries •4 uncorrected misstatements noted1.GASB 1012.GASB 67 Calculation3.Immaterial prior period adjustments 4.Accrued Interest Overall•Auditors Responsibility under general accepted audit standards (GAAS)•No changes from planned scope•Implementation of GASB 101, Compensated Absences Difficulties•No significant difficulties•No disagreements with management•No management consultations with other accounting firms ©2023 CliftonLarsonAllen LLPFinancial Statement Activity ©2023 CliftonLarsonAllen LLP
Statement of Net Position – Significant ChangesTotal Assets – Increased due to the following:•A/R from Governments – Increased by $21M primarily due to CDBG, HOME, ARPA, CFP and Shelter Plus Care Grants•Increase in Notes Receivables of $74M - Loans issued to RVP , Howe Avenue, Twin Rivers 3 & 4 and San Juan Mutual.Total Liabilities – Decreased due to the following:•Unearned revenue being recognized of $17.2 M for the ERA and Mental Health Services Program•Principal Payments on debt of $3M offset by additions of $1.6M•Pension liability decreased $4M while the OPEB liability decreased by $1.3M.Deferred Outflows/Inflows – Deferred outflows decreased $8,327 and deferred inflows increased $1,550 in FY24 due to GASB 68 and 75 actuarial report changes. 2024 2023 $ ChangeASSETSCurrent and Other Assets 764,610$ 707,225$ 57,385$ Capital Assets 177,971 177,985 (14) Total Assets 942,581 885,210 57,371 DEFERRED OUTFLOWS OF RESOURCES8,300 16,627 (8,327) LIABILITIESLong-Term Liabilities 124,750 137,163 (12,413) Other Liabilities 50,970 66,514 (15,544) Total Liabilities 175,720 203,677 (27,957) DEFERRED INFLOWS OF RESOURCES1,837 287 1,550 NET POSITIONNet Investment in Capital Assets 147,269 146,344 925 Restricted 5,989 488,621 (482,632) Unrestricted 620,066 62,908 557,158 Total Net Position 773,324$ 697,873$ 75,451 ©2023 CliftonLarsonAllen LLP
Statement of Revenues, Expenses, and Change in Net PositionOperating Revenues:•Federal, State, and Local Grants – Increased by $28,133 due to an increase in Housing Choice Voucher program funding.•Changes for Services – Decreased by $8,342 due to the expiration of COVID-related funding.•Miscellaneous– Decreased by $5,190 mainly due to reclassifications of revenues.Operating Expenses:•Employee Services– Increased by $11,793 due to cost-of-living adjustments (COLA) and higher pension costs.•Administrative Services – Decrease by $16,699 due to the expiration of COVID-related funding and reduced need for associated administrative support.•Services and Supplies – Decrease by $48,482 due to the expiration of COVID-related funding and reduced program needs.•Housing Assistance Payments – Increase by $20,436 due to increased lease ups and contract rents during FY2024.Nonoperating Revenues:•Gain on Sale of Capital Assets – Decrease by $20,460 due to no sale of capital assets during FY2024. Prior year gain was related to the sale of properties to RVP Group. 2024 2023 $ ChangeOPERATING REVENUESFederal, State and Local Grants 360,879 87% 332,746 84% 28,133 Charges for Services 24,745 6% 33,099 8% (8,354) Rental Income Subsidy 3,169 1% 2,804 1% 365 Miscellaneous 24,201 6% 29,390 7% (5,189) Total Revenues 412,994 100% 398,040.00 100% 14,954 OPERATING EXPENSESEmployee Services 41,247 12% 29,454 8% 11,793 Administrative Services 2,124 1% 18,823 5% (16,699) Services and Supplies 71,982 21% 120,464 32% (48,482) Utilities 6,760 2% 5,560 1% 1,200 Claims and Judgments 72 0% 77 0% (5) Depreciation 6,985 2% 7,057 2% (72) Housing Assistance Payments 219,402 63% 198,966 52% 20,436 Total Expenses 348,572 100% 380,401 100% (31,829) OPERATING GAIN (LOSS) 64,422 17,640.00 46782 Nonoperating Revenues, Net 11,664 30,847 (19,183) INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 76,086 48,487 27,599 Capital Contributions(Distributions) (635) - (635) CHANGE IN NET POSITION 75,451 48,487 26,964 ©2023 CliftonLarsonAllen LLP
Statement of Net Position – City (CA005)Overall Activity•Total Assets– Increase in HUD AR due from HOME, CDBG and CFP which created a decrease in cash and increase in interfunds. The HOME and CDBG program are not presented on the Financial Data Schedule so you do not see the large increase in Notes Receivables being issued in these programs.•Total Liabilities – Shift in presentation of Accrued Interest Payable from LT liabilities to Current liabilities in FY 2024. Overall increase comes from increase in Accounts Payable of $2.6M due to the increase in A/R’s from HOME/CDBG/CFP which impacted the timing of payments for the City.•Net Position – Shift in accrued interest presentation impacted this presentation between categories Overall, net position decreased due to changes on the income statement (No gain on sale in FY 2024). 2024 2023 $ ChangeASSETSCurrent Assets57,075,243 64,982,439 (7,907,196) Capital Assets122,527,975 122,374,239 153,736 Noncurrent and Other Assets92,279,816 86,176,799 6,103,017 Total Assets271,883,034 273,533,477 (1,650,443) DEFERRED OUTFLOWS OF RESOURCES1,655,502 2,769,562 (1,114,060) LIABILITIESCurrent Liabilities16,486,214 6,480,710 10,005,504 Long-Term Liabilities46,300,423 54,079,080 (7,778,657) Total Liabilities62,786,637 60,559,790 2,226,847 DEFERRED INFLOWS OF RESOURCES371,317 56,261 315,056 NET POSITIONNet Investment in Capital Assets88,321,692 80,702,778 7,618,914 Restricted4,276,810 4,299,062 (22,252) Unrestricted117,782,080 130,685,148 (12,903,068) Total Net Position210,380,582 215,686,988 (5,306,406) ©2023 CliftonLarsonAllen LLP
Statement of Revenues, Expenses, and Changes in Net Position – City (CA005)Overall Activity•Majority of the decreases in revenues and expenses was due to Big Trees/Pine Knolls/ Riverview being sold to RVP Group LP for a gain of $18.7 M which occurred in 2023. This also saw a decrease in associated revenues collected from these properties and the associated expenses decreasing.•Decrease in tenant revenue due to increase in vacancies at properties.•Other Governmental grants increased due to increase funds for the HomeKey Program, Green Means Go and Pro Housing Incentive Pilot.•Increase in Utilities is due to new projects being completed and decrease in vacancies.•Decrease in Other General expences is due to there being no write-downs on the forgivable loans in FY 2024.2024 2023 $ ChangeOPERATING REVENUESTenant Revenue 6,766,973 14% 10,427,442 12% (3,660,469) Federal Grants 21,024,654 43% 21,617,029 26% (592,375) Other Government Grants 5,562,281 11% 3,337,917 4% 2,224,364 Investment Income 4,465,692 9% 5,895,157 7% (1,429,465) Miscellaneous 11,204,100 23% 42,617,816 51% (31,413,716) Total Revenues 49,023,700 100% 83,895,361 100% (34,871,661) OPERATING EXPENSESAdministrative Services 15,939,410 29% 16,292,034 28% (352,624) Tenant Services 3,581,927 7% 2,959,916 5% 622,011 Utilities 5,420,303 10% 3,842,550 7% 1,577,753 Maintenance 13,049,857 24% 12,987,488 23% 62,369 Protective Services 1,154,251 2% 1,381,452 2% (227,201) Insurance Premiums 1,058,646 2% 975,505 2% 83,141 Other General Expoense 5,505,483 10% 8,717,898 15% (3,212,415) Interest Expense 1,675,765 3% 2,065,886 4% (390,121) Extraordinary Maintenance 2,268,072 4% 2,114,077 4% 153,995 Casualty Losses - Non-capitalized - 0% 203 0% (203) Housing Assistance Payments 835,889 2% 1,232,440 2% (396,551) Depreciation Expense 3,777,391 7% 5,018,760 9% (1,241,369) Total Expenses 54,266,994 100% 57,588,209 100% (3,321,215) CHANGE IN NET POSITION (5,243,294) 26,307,152 (31,550,446) ©2023 CliftonLarsonAllen LLP
Statement of Net Position – County (CA007)•Current Assets – Increase in HUD AR due from HOME, CDBG and CFP which created a decrease in cash. In addition, the ERA and the Mortgage Revenue Bond funding was spent during FY 2024.•Deferred Outflows/Inflows – Deferred outflows decreased $4.3M and deferred inflows increased $500K in FY24 due to GASB 68 and 75 actuarial report changes.•Liabilities remained consistent to prior year . Couple changes to note:•Unearned revenue decrease by $7M in the ERA program.•Decrease in Pension and OPEB liability.•Net Position –Overall, net position decreased due to changes on the income statement. 2024 2023 $ ChangeASSETSCurrent Assets 24,940,674 29,982,266 (5,041,592) Capital Assets 36,185,947 35,310,228 875,719 Noncurrent and Other Assets 72,974,133 72,209,087 765,046 Total Assets 134,100,754 137,501,581 (3,400,827) DEFERRED OUTFLOWS OF RESOURCES266,431 4,595,700 (4,329,269) LIABILITIESCurrent Liabilities 11,719,891 10,919,779 800,112 Long-Term Liabilities 21,963,556 22,932,058 (968,502) Total Liabilities 33,683,447 33,851,837 (168,390) DEFERRED INFLOWS OF RESOURCES586,465 86,868 499,597 NET POSITIONNet Investment in Capital Assets 34,012,548 33,136,804 875,744 Restricted 956,665 1,185,211 (228,546) Unrestricted 31,342,113 38,527,333 (7,185,220) Total Net Position 66,311,326 72,849,348 (6,538,022) ©2023 CliftonLarsonAllen LLP
Statement of Revenues, Expenses, and Changes in Net Position – County (CA007)Overall Activity•Federal Grants revenue increased in the HCVP , EHV and Shelter Plus Care programs.•Other Governmental Grants decreased due to the ERA program coming to a close during the year .•Increase in Administrative Services is related to mainly to the increase in salaries and benefits.•Decrease in the tenant services is related to a significant decrease in relocation costs in AMP 3.•Housing Assistance Payments increased consistently with the increase in HAP funding for the HCVP funding of $35M. Decrease in the ERA program as that program was ending during the year .2024 2023 $ ChangeOPERATING REVENUESTenant Revenue 1,571,866 1% 2,340,986 1% (769,120) Federal Grants 236,124,140 95% 200,888,089 86% 35,236,051 Other Government Grants 7,051,219 3% 26,195,730 11% (19,144,511) Investment Income 1,196,957 0% 1,133,304 0% 63,653 Miscellaneous 3,826,986 2% 4,102,015 2% (275,029) Total Revenues 249,771,168 100% 234,660,124 100% 15,111,044 OPERATING EXPENSESAdministrative Services 23,299,709 9% 21,954,018 9% 1,345,691 Tenant Services 759,866 0% 2,909,329 1% (2,149,463) Utilities 1,338,489 1% 1,637,646 1% (299,157) Maintenance 3,584,542 1% 2,787,910 1% 796,632 Protective Services 421,939 0% 508,245 0% (86,306) Insurance Premiums 453,201 0% 505,238 0% (52,037) Other General Expoense 3,690,650 1% 4,081,743 2% (391,093) Interest Expense 17,780 0% 18,009 0% (229) Extraordinary Maintenance 84,707 0% 51,789 0% 32,918 Housing Assistance Payments 220,856,227 86% 199,197,261 85% 21,658,966 Depreciation Expense 1,803,736 1% 1,780,264 1% 23,472 Total Expenses 256,310,846 100% 235,431,452 85% 20,879,394 CHANGE IN NET POSITION (6,539,678) (771,328) (5,768,350) ©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.©2025 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

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Sacramento City CouncilFebruary 24, 2026

Sacramento City Council
February 24, 2026