HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 1
HOUSING SUCCESSOR ANNUAL REPORT
REGARDING THE
LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2023-2024
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE
HOUSING AUTHORITY OF THE CITY OF SANTA ANA
Thi
s Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of December 17, 2024. This Report sets forth certain details of the Housing Authority of the City of Santa Ana (Housing Successor) activities during Fiscal Year 2023-2024 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).
The following Report is based upon information prepared by Housing Successor staff and information contained within the independent financial audit of the Low and Moderate Income Housing Asset Fund, as incorporated in the City of Santa Ana’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023-2024 (Fiscal Year) as prepared by CliftonLarsonAllen LLP (Audit), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I. through XII., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law:
I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.
II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on t
he ROPS must be distinguished from the other amounts deposited.
III. Description of Expenditures from LMIHAF: This section provides a description of the ex
penditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized.
IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 2 V. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.
VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.
VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.
VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor’s plans to meet unmet obligations, if any.
IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five year period, with the time period beginning January 1, 2014 and whether the statutory thresholds have been met. Information is provided covering the period of July 1, 2019 – June 30, 2024.
X. Senior Housing Test: This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten-year period reviewed is January 1, 2014 to December 31, 2023.
XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.
XII. Inventory of Homeownership Units: This section provides an inventory of homeownership units assisted by the former redevelopment agency or the Housing Successor that are subject to covenants or restrictions or to an adopted program that EXHIBIT 1
HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 3 protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to Section 33334.3(f).
This Report is to be provided to the Housing Successor’s governing body by December 31, 2024. The final audit opinion was presented at the December 3, 2024 City Council meeting. In addition, this Report and the former redevelopment agency’s pre-dissolution Implementation Plans are to be made available to the public on the City’s website (https://www.santa- ana.org/successor-agency-oversight-board/ .)
I. AMOUNT DEPOSITED INTO LMIHAF
A total of $317,160 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, a total of $0 was held for items listed on the ROPS.
II. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $4,061,524 of which $0 is held for items listed on the ROPS.
III. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:
FY 2023/24
Monitoring & Administration Expenditures $ 225,653 Homeless Prevention and Rapid Rehousing Services Expenditures $0 Housing Development Expenditures
Expenditures on Moderate Income Units $0
Expenditures on Low Income Units $0
Expenditures on Very-Low Income Units $0
Expenditures on Extremely-Low Income Units $1,491,252 Total Housing Development Expenditures $0
Total LMIHAF Expenditures in Fiscal Year $ 1,716,905
IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 4 The following provides the statutory value of assets owned by the Housing Successor.
As of End of
Fiscal Year
Statutory Value of Real Property Owned by Housing Authority $ 75,000 Value of Loans and Grants Receivable $ 22,592,121
Total Value of Housing Successor Assets $ 22,667,121
V. DESCRIPTION OF TRANSFERS
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.
VI. PROJECT DESCRIPTIONS
The following is a description of project(s) for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS as well as the status of the project(s):
Project Name Status of Project
N/A All former projects on the ROPS have been
completed.
VII. STATUS OF COMPLIANCE WITH SECTION 33334.16
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset.
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 5 The following provides a status update on the real property or properties housing asset(s) that were acquired prior to February 1, 2012 and compliance with five-year period:
Address of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
Remnant parcels at
Spurgeon & E. 22nd
St.
10/30/2002 2/14/2018
This remnant parcel has been
included in Request for Proposals
(“RFP”) # 18-056 issued on July 2,
2018; RFP # 19-063 issued on July
3, 2019; RFP # 21-136 issued on
December 8, 2021; and RFP # 23-
156 issued on October 19, 2023.
All of the RFPs have been issued
for the development of affordable
housing on this parcel. There has
been no award from RFP # 23-156
at this time.
801, 809 & 809 ½ E.
Santa Ana Blvd. 7/29/2009 2/14/2018
On December 7, 2021, the Housing
Authority entered into a 99-year
Ground Lease with Shelter
Providers of Orange County, Inc.
DBA HomeAid Orange County for
the development of the FX
Residences, a multifamily
affordable housing project with 16
units for people experiencing
homelessness. In October 2022,
the developer closed on their
construction loan financing and a
groundbreaking ceremony was
held in June 2023. Construction
officially started in July 2023. The
anticipated completion date of the
project is December 2024.
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 6
The following provides a status update on the project(s) for property or properties that have been acquired by the Housing Successor using LMIHAF on or after February 1, 2012:
Address of Property
Date of
Acquisition
Deadline to
Initiate
Development
Activity
Status of Housing Successor
Activity
N/A
Address of Property
Date of
Acquisition
Deadline to
Initiate
De
velopment
Activity
Status of Housing Successor
Activity
826 N. Lacy 7/29/2009 2/14/ 2018
On November 17, 2020, the Housing
Authority entered into a 99-year
Gr
ound Lease for the development
of two (2) affordable
homeownership opportunities for
moderate income families. In
August 2022, Habitat held a
groundbreaking ceremony and
obtained all building permits to
commence construction. The
construction was completed in
November 2023 and both homes
have been sold to income qualified
families.
1126 & 1146
Washington 9/5/2007 2/14/2018
On July 25, 2022, the Housing
Authority entered into a 65-year
Gr
ound Lease with Washington
Santa Ana Housing Partners, L.P. for
the development of the Crossroads
at Washington, a multifamily
affordable housing project with 86
units for extremely low-income
families. Construction is underway
and the anticipated completion date
of the project is in September 2024.
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 7 VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the FY 2010 – FY 2015 Implementation Plan for the former redevelopment agency, the following replacement housing obligations were transferred to the Housing Successor:
One (1) very-low income five-bedroom unit was removed in 2005. The replacement housing obligation transferred to the Housing Successor was fulfilled in a previous fiscal year with the WBBB project that accommodated a five-bedroom unit within the site.
At the end of Fiscal Year 2022-2023, the Housing Successor has met all replacement housing obligations transferred from the former redevelopment agency.
Inclusionary/Production Housing. According to the FY 2010 – FY 2015 Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency’s Implementation Plans are posted on the City’s website at https://www.santa-ana .org/successor- agency-oversight-board/
IX. EXTREMELY-LOW INCOME TEST
Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the LMIHAF to be expended for development of rental housing affordable to and occupied by households earning 30% or less of the AMI. If the Housing Successor fails to comply with the Extremely-Low Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest fiscal year following the report on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance with the Extremely-Low Income requirement.
This information below is for the period of July 1, 2019 – June 30, 2024:
AMI FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 Totals 80% - 120% $0 $0 $0 $0 $0 $0
50% - 80% $16,632 $0 $0 $0 $0 $16,632
30% - 50% $26,867 $0 $0 $0 $0 $26,867
0% - 30% $43,499 $0 $0 $0 $1,491,252 $1,534,751
Totals $86,998 $0 $0 $0 $1,491,252 $1,578,250
% of Funds
Expended on 30%
or Less of AMI
50.00% 0.00% 0.00% 0.00% 100.00% 97.24%
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HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 8 X. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment agency and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed-restricted rental units.
The following provides the Housing Successor’s Senior Housing Test for the 10 year period of January 1, 2014 to December 31, 2023:
Senior Housing Test 1/1/2014 – 12/31/2023
# of Assisted Senior Rental Units 0
# of Total Assisted Rental Units 541
Senior Housing Percentage 0%
XI. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the Housing Successor’s preceding four Fiscal Years, whichever is greater.
The following provides the Excess Surplus test for the preceding four Fiscal Years:
FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Beginning Balance $29,197,585 $26,417,704 $27,246,424 $27,621,931 Add: Deposits $170,606 $1,246,112 $483,734 $317,160
(Less) Expenditures $2,950,487 $417,392 $108,227 $1,201,803 Ending Balance $26,417,704 $27,246,424 $27,621,931 $26,737,288 EXHIBIT 1
HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 9 The LMIHAF does not have an Excess Surplus. (Refer to calculation below.)
XII. INVENTORY OF HOMEOWNERSHIP UNITS
(A) A s of June 30, 2024, there was a total of 54 homeownership units and 912 rental units subject to covenants or restrictions. Of this total, all 966 units had affordability restrictions.
(B) During FY 2023-24, three (3) single family units were lost to the portfolio as the borrowers paid off the loans earlier than the original maturity date but two single family homes were added as a result of the sale of the two Habitat for Humanity homes.
$26,737,288
(22,592,121)
(
75,000)
(112,893)
(2,882)
(4,829)
(735,964)
Available Low Income Housing Funds 3,213,599
2020 – 2021 170,606
2021 – 2022 1,246,112
2022 – 2023 483,734
2023 – 2024 317,160
Total deposits for the preceding four fiscal years 2,217,612 Base limitation 1,000,000
Greater Amount 2,217,612
995,987Computed Excess Surplus – June 30, 2024
Fund Balance – June 30, 2023
Less Unavailable Amounts:
Loans and notes
Land held for resale
Restricted cash and investments with fiscal agent
Liabilities – Accounts payables & deposits
Deferred inflows of revenues
Project Commitments and Monitoring
Limitation (Greater of $1,000,000 or Four Years Deposits):
Aggregate amounts deposited for preceding four fiscal years EXHIBIT 1
HOUSING AUTHORITY OF THE CITY OF SANTA ANA – FY 2023/24 Page 10 (C) There were no funds returned to the Housing Successor as part of an adopted program that protects the former redevelopment agency’s investment of moneys from the former Low and Moderate Income Housing Fund in FY 2022-23. (D) The Housing Authority of the City of Santa Ana has not contracted with any outside entity for the management of the units.
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