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Attachment A
ANNUAL REPORT
REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2022-2023
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE SANTA MONICA HOUSING SUCCESSOR
This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f). This Report sets forth certain details of the Santa Monica Housing Successor (Housing Successor) activities during fiscal year 2022-2023 (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).
This Report conforms with and is organized into sections I. through XI. inclusive, pursuant to Section 34176.1(f) of the Dissolution Law:
I . Amount the City received from City-Agency loans
This section provides the total amount of funds received from repayment of City-Agency loans during the Fiscal Year pursuant to Section 34191.4(b)(3)(A).
Fiscal Year 2020-2021 was the final year that the City received payment pursuant to 34191.4(b)(3)(A) from the repayment of City-Agency loans.
II. Amounts Deposited into LMIHAF
This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year, distinguishing between amounts deposited pursuant to 34191.4(b)(3)(B) and 34191.4(b)(3)(C), amounts deposited for other items listed on the Recognized Obligation Payment Schedule (ROPS), and other amounts deposited.
Pursuant to 34191.4(b)(3)(B) and 34191.4(b)(3)(C) $0 was deposited into the LMIHAF during the Fiscal Year, of which none of the funds deposited into the LMIHAF were held for items listed on the ROPS. Other amounts deposited into the LMIHAF during Fiscal Year were $560,746 from residual receipts (affordable housing loan repayments) and interest income.
III. Ending Balance of LMIHAF
This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.
At the close of the Fiscal Year, the ending balance in the LMIHAF was $13,580,560 of which $0 was held for items listed on the ROPS.
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IV. Description of Expenditures from LMIHAF
This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized.
The following table provides the description of expenditures from the LMIHAF by category.
Expenditure Description Amount
Monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or housing successor. Includes expenditures for administration of affordable housing activities.
$ 411,602
Homeless Prevention and rapid rehousing services $ 0
Development of affordable housing pursuant to 34176.1(a)(3)(A) $ 121,748 Total LMIHAF Expenditures $ 533,350
V. Statutory Value of Assets Owned by Housing Successor Thissection providesthe statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.
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 purchased by the Housing Successor. Further, the value of loans and grants receivable is included in the reported assets held in the LMIHAF.
The following table provides the statutory value of assets owned by the Housing Successor.
Description Amount
Statutory Value of Real Property $ 11,060,000
Value of Loans and Grants Receivable $ 152,632,983
Total Value of Housing Successor Assets $ 163,692,983
VI. Description of Transfers
This section describes transfers, if any, to another housing successor agency made in previous fiscal years, 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.
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c) (2) during the Fiscal Year.
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VII. 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.
The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.
VIII. 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.
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.
The following table provides a status update on the real property acquired by the former redevelopment agency prior to February 1, 2012 and transferred to the Housing Successor.
Property Address Date
Acquired
DOF Approved
Transfer Date
Status as of June 30, 2021
1725 Ocean Avenue 4/11/2000 10/2/2013 The property was developed with 160 affordable apartments.
1751 Cloverfield
Bld.
10/3/2003 10/2/2013 The property was developed as congregate housing and emergency shelter providing 55
affordable beds.
2018 19th Street 6/26/2009 10/2/2014 The property was sold. All sales proceeds were deposited in the LMIHAF.
IX. 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 plans to meet unmet obligations, if any.
There are no outstanding inclusionary or replacement housing obligations pursuant to Section 33413. The former Redevelopment Agency’s Implementation Plan is posted on the City’s website at:
http://www.smgov.net/uploadedFiles/Departments/HED/Housing_and_Redevelopment/RDA/Attach%20A %202009%205%20Yr%20Implementation%20Plan%20-%20FINAL.pdf Santa Monica Housing Successor Page | 4
X. Income Test
This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for the period beginning January 1, 2014 and whether the statutory thresholds have been met for 2019, and every five years thereafter, from January 1, 2014, through the end of the latest fiscal year covered in the report.
This information is next required to be reported in the Fiscal Year 2023-24.
XI. Senior Housing Test
Thissection providesthe percentage 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 ten 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.
The following table provides the Housing Successor’s Senior Housing Test for the ten-year period from July 1, 2013 through June 30, 2023.
Description Amount
Number of Assisted Senior Rental Units 126
Number of Total Assisted Rental Units 423
Senior Housing Percentage 30%
XII. Excess Surplus Test
This section provides the amount of Excess Surplus in the LMIHAF (defined as unencumbered funds exceeding one million or the aggregate amount deposited in the fund over the preceding four fiscal years, whichever is greater), the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus within three fiscal years.
This report calculates the excess surplus per the Health and Safety Code definition, which states that “the ‘excess surplus’ shall mean 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 table provides the calculation of the Excess Surplus test.
Description Amount
LMIHAF Balance $ 13,580,560
Less Encumbrances $ (0)
Unencumbered balance $ 13,580,560
Less the greater of $1,000,000 or the aggregate amount deposited into the account during the housing successor’s preceding four fiscal years, whichever is greater $ (13,813,851)
Excess Surplus $ None
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XIII. Inventory of homeownership units
This section provides an inventory of homeownership units that were assisted by the former Redevelopment Agency or Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the investment of moneys from the LMIHF pursuant to Section 33334.3(f) and includes any losses of units to the portfolio, funds returned to the Housing Successor, and whether an outside entity has been contracted to manage these units.
The Housing Successor does not have any homeownership units that were assisted by the former Redevelopment Agency or the Housing Successor.