HOUSING SUCCESSOR ANNUAL REPORT
South San Francisco Housing Successor
Fiscal Year 2024-25
TABLE OF CONTENTS
INTRODUCTION ...................................................................................................................................................... 2 City as Housing Successor ................................................................................................................................... 2 Scope of This Housing Successor Annual Report ................................................................................................ 2 Assets Transferred to the Housing Successor...................................................................................................... 2 BACKGROUND ........................................................................................................................................................ 3 Legal Requirements Pertaining to Housing Successors ....................................................................................... 3 Permitted Uses of Housing Asset Funds............................................................................................................... 4 Limits on the Accumulation of Housing Funds (Excess Surplus).......................................................................... 6 HOUSING ASSET FUND ACTIVITY ........................................................................................................................ 7 Deposits and Fund Balance .................................................................................................................................. 7 Expenditures ......................................................................................................................................................... 7 Ending Cash and Fund Balance............................................................................................................................ 8 Housing Successor Portfolio ................................................................................................................................. 8 Real Properties and Disposition Status ............................................................................................................. 9 Loans Receivable ............................................................................................................................................ 11 COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS .......................................................................... 12 Proportionality Requirements .............................................................................................................................. 12 Senior Rental Housing Limit Compliance............................................................................................................ 14 Excess Surplus.................................................................................................................................................... 14 OTHER INFORMATION ......................................................................................................................................... 17 Homeownership Unit Inventory ........................................................................................................................... 17 Transfers to Other Housing Successors ............................................................................................................. 19 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS ................................................. 20 APPENDIX 2 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS...................................................... 21 APPENDIX 3 – HOUSING ASSET TRANSFER FORM ......................................................................................... 23 South San Francisco Housing Successor Annual Report 2024-25 2 INTRODUCTION
This Housing Successor Agency Annual Report (“Annual Report”) presents information on Fiscal Year (“FY”) 2024-25 expenditures and activities as required by Health and Safety Code (“HSC”) Section 34176.1(f), including but not limited to a housing successor’s compliance with certain expenditure activities over the year as well as a five-year planning period. This Annual Report is required of any housing successor to a former redevelopment agency.
City as Housing Successor
The City of South San Francisco (“City”) is the Housing Successor Agency (“Housing Successor”) to the former South San Francisco Redevelopment Agency (“Agency”) which was dissolved with all other redevelopment agencies statewide by the Legislature in 2012. At the time of dissolution, a housing successor was to be selected to transfer and be responsible for the remaining assets and liabilities of a former redevelopment agency. The City elected to be the Housing Successor to the Agency by adoption of Resolution No. 08-2012 on January 25, 2012.
Scope of This Housing Successor Annual Report
This Annual Report is limited to the Housing Successor’s activities as it relates to its role as a housing successor and is not necessarily comprehensive of all of the City's housing activities. This may include, but is not limited to, financial activities, property disposition, loan administration, monitoring of covenants, and affordable housing development. This Annual Report describes compliance with various annual, fiveyear, and ten-year housing expenditure and production requirements. FY 2024-25 is the first year of the current five-year compliance period for income proportionality, which began July 1, 2024, and ends June 30, 2029.
This Annual Report is an addendum to the City’s Housing Element Annual Progress Report. Both are due to the California Department of Housing and Community Development (“HCD”) by April 1 annually.
The Housing Successor’s audited financial statements will be posted on the City’s website when available and are incorporated herein by reference.
Assets Transferred to the Housing Successor
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the affordable housing activities of the Agency were transferred South San Francisco Housing Successor Annual Report 2024-25 3 to the Housing Successor. As one of its first duties as a housing successor, the City prepared and submitted to the California Department of Finance (“DOF”) an inventory of housing assets to be transferred from the former Agency. The inventory was enumerated on a Housing Asset Transfer Form (“HAT”) which included:
1. Real properties;
2. Personal properties;
3. Loans receivable; and
4. Rents/operations
All items on the HAT were reviewed and ultimately approved by the DOF on August 31, 2012. A copy of the HAT is provided as Appendix 3. Once approved by DOF and as directed by law, the City, acting as housing successor, transferred these assets to the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”, Fund 241). Approval of the HAT set in motion a series of obligations by the City as a housing successor, as described in the following section.
BACKGROUND
This Section summarizes the legal requirements for use of housing successor assets that are addressed in this Annual Report.
Legal Requirements Pertaining to Housing Successors
In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:
1. Expenditures and housing production are subject to income and age targets.
2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered Housing Asset Fund balance based on certain thresholds.
3. Properties must be developed with affordable housing within five to ten years of DOF’s approval of the HAT.
South San Francisco Housing Successor Annual Report 2024-25 4 Appendix 1 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.
Permitted Uses of Housing Asset Funds
Pursuant to HSC Section 34176.1, Housing Asset Funds may be spent on:
• Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted for inflation, or
o 5 percent of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”).
HCD has annually published an adjusted limit amount for administrative costs, reflecting the change in the Consumer Price Index from the prior year. Although HCD has not yet published the update for FY 2024-25, applying the same methodology and index HCD has previously used would yield a limit adjusted for inflation for FY 2024-25 of $270,700. The net value of the Housing Successor’s real property and loans receivable (after an allowance for uncollectible) is $6,989,107, of which 5 percent is $356,037, which is higher than the HCD limit. Therefore, South San Francisco’s FY 2024-25 annual administrative cost limit is $356,037, the greater of these amounts.
• Homeless prevention and rapid rehousing services up to $500,000 per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. South San Francisco is eligible for this expense because it did not have any outstanding inclusionary or replacement housing requirements upon dissolution. • Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five-year period.
Five-Year Income Proportionality on Development Expenditures: Housing Asset Funds may be spent on development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined in HSC Section 33413 and includes “new construction, substantial rehabilitation, the acquisition of long-term affordability South San Francisco Housing Successor Annual Report 2024-25 5 covenants, or the preservation of assisted housing development that is eligible for prepayment or termination or for which the expiration of rental restrictions is scheduled to occur within five years.”
Over each successive five-year compliance period beginning in 2014, at least 30 percent of development expenditures must assist extremely low-income households (30 percent AMI), while no more than 20 percent may assist low-income households (between 60-80 percent AMI). The balance of the funds may be used on very low-income households (defined as households earning between 30-60 percent of AMI).
The Housing Successor was compliant with Housing Asset Fund income proportionality expenditure requirements during the first five-year compliance period from July 1, 2014, through June 30, 2019, and the second five-year compliance period from July 1, 2019, through June 30, 2024. The current (third) five-year compliance period is July 1, 2024, to June 30, 2029.
Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80 percent AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period.
Should a housing successor not spend at least 30 percent of its development expenditures for extremely low-income households, or exceeds the amount spent on low-income households, future expenditures are subject to greater restrictions until these proportionality targets are met. Specifically, if a housing successor is unable to spend at least 30 percent of its development expenditures on extremely low-income units, it is required to increase this spending to 50 percent until compliant with the 30 percent threshold; a housing successor that spends more than 20 percent of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20 percent threshold.
As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of this Annual Report.
South San Francisco Housing Successor Annual Report 2024-25 6 Ten-Year Age Proportionality on Units Assisted: If more than 50 percent of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing.
It is important to stress that Housing Successor expenditure and production requirements are measured on different timeframes:
• One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance evaluated annually and resets every year.
• Five-Year Limit: Expenditures by Income Level. Compliance evaluated over a fixed five-year period set by law, the current period being July 1, 2024, to June 30, 2029. • Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance evaluated based on a rolling ten-year period that is different every year, the current period being FY 2014-15 to FY 2024-25.
Appendix 2 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.
Limits on the Accumulation of Housing Funds (Excess Surplus) State law limits how much cash a housing successor may retain and, if it fails to commit or spend these dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds to be transferred to HCD for use on State housing programs.
HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Funds based on the greater of:
• $1,000,000, or
• The total amount of deposits made into the Housing Asset Fund over the preceding four years.
Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining South San Francisco Housing Successor Annual Report 2024-25 7 balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.
As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.
HOUSING ASSET FUND ACTIVITY
This section describes FY 2024-25 Housing Asset Fund activity and balances.
Deposits and Fund Balance
The Housing Successor had net deposits of $372,755 in the Housing Asset Fund during FY 2024-25 from a variety of sources, as shown in Table 1.
Table 1
Housing Asset Fund Deposits FY 2024-25
Expenditures
The Housing Successor expended a total of $354,280 during FY 2024-25. Of the total amount expended, $46,479 was spent on administrative costs and $176,160 was spent on homeless prevention and rapid rehousing (Emergency Rental Assistance). Both amounts were below their respective expenditure limits, with a maximum administrative cost limit for FY 2024-25 of $356,037 (based on 5 percent of the Housing Successor's Portfolio Balance) and a Homeless Prevention/Rapid Rehousing cost limit of $500,000. The City also expended $131,641 for an affordable housing development project, Rotary Gardens.
Source Amount
Rent Revenue $ 140,134
Interest Income - Investments 92,058
Interest Income - Loans/ Advances 13,402
Interest Income - Lease GASB 87 34,953
Unrealized Gains/Losses 50,847
Equity Sharing Revenue 41,361
Total $ 372,755
Source: City of South San Francisco Finance Department
South San Francisco Housing Successor Annual Report 2024-25 8 Ending Cash and Fund Balance
The Housing Asset Fund had an ending asset balance $4,145,547 as of June 30, 2025, as summarized in Table 2.
Table 2
Housing Asset Fund Assets Ending Balance FY 2024-25
Housing Successor Portfolio
The Housing Successor Portfolio as of FY 2024-25 includes four properties and twelve loans receivable.
A new loan in the amount of $131,641 for a housing development at 500 Linden Ave, also known as Rotary Gardens, was added in FY 2024-25. The Portfolio had a net value of $7,120,748 as of FY 2024- 25, as detailed in Table 3. Note that the Loans Receivable are mostly offset by an “Allowance for Uncollectible” indicating that the City does not anticipate repayment. This is because many of the loans do not become due and payable unless a property is sold or other conditions are met.
Asset Amount
Cash $ 2,551,359
Cash Premium/Discount Amortization 44,002
Cash Unrealized Gains/Losses 7,710
Accounts Receivable - Other 5,149
Allowance for Uncollectibles (22,819,410)
Accrued Interest Receivable 15,174
Loans Receivable 23,193,301
Lease Receivable GASB 87 1,148,263
Ending Balance $ 4,145,547
Source: City of South San Francisco Finance Department
South San Francisco Housing Successor Annual Report 2024-25 9 Table 3
Portfolio Value of Real Properties and Loans Receivable FY 2024-25
REAL PROPERTIES AND DISPOSITION STATUS
Pursuant to the approved HAT, the former Agency transferred eight properties to the Housing Successor, including four multifamily properties, two single family homes, and two parcels of land (land under existing buildings).
HSC Section 34176.1(e) requires all real properties acquired by a redevelopment agency prior to February 1, 2012, and transferred to the housing successor to be developed pursuant to the requirements detailed in HSC Section 33334.16. All property that falls within these parameters must be developed for affordable housing purposes or sold by August 31, 2017. If the Housing Successor is unable to develop or dispose of these properties within the five-year period, the law allows for a five-year extension via adoption of a resolution. All Housing Successor properties transferred on the Housing Asset Transfer Form are subject to this provision.
The City meets the property disposition requirement because all properties transferred from the former Agency to the Housing Successor are already operating as affordable housing or have been sold.
Descriptions of the properties and their disposition status are below.
Properties Disposed
Asset Amount
Real Properties
339 - 341 Commercial 804,086
714 - 718 Linden 524,428
630 Baden - Land 948,244
636 El Camino - Land 4,470,000
Subtotal $ 6,746,758
Loans Receivable
First-Time Homebuyer Loans (3) $ 150,376
Developer Loans (12) 23,043,024
Allowance for Uncollectibles (22,819,410)
Subtotal $ 373,990
Total Portfolio Value $7,120,748
Source: City of South San Francisco Finance Department
South San Francisco Housing Successor Annual Report 2024-25 10 • 310 - 314 MILLER (APNs 012-311-230, 240, & 250) – Three properties consisting of 13,000 square feet total were donated in May 2016 to Rotary Plaza, Inc. for $1 for the purpose of developing affordable multifamily housing. The property has 81 affordable units, which are to remain affordable for no less than 55 years.
• 380 ALTA VISTA (APN 013-232-170) - A single-family home sits on this 9,100-square foot lot. It was initially purchased by the Agency to remove blighting conditions and illegal bedrooms in the home. The property was sold in October 2016 and $1,016,276 in sales proceeds were deposited into the Housing Asset Fund. The funds will be used for affordable housing purposes as required by law.
Properties Retained
• 339 – 341 COMMERCIAL (APN 012-333-050) - This 2,500-square foot lot contains two duplexes.
The City purchased the property in 1999 with funding from the former Agency, as well as HOME funds, to mitigate the blighted property and create affordable housing units. • 714 – 718 LINDEN (APN 012-145-430) - A triplex sits on this 3,500-square foot lot located near the City’s Downtown core. The City initially helped the owner rehabilitate the property in return for charging affordable rents. In 2005, when the affordability restriction expired and the owner intended to sell the property, the City purchased the property with funding from the former Agency to preserve the units’ affordability.
• 630 BADEN (APN 012-241-230) - The Housing Successor owns 95,309-square feet of land under the Magnolia Plaza Senior Apartments, a 125-unit affordable senior apartment complex. The City purchased the Magnolia/Baden property from a local school district using funding from the former Agency and leases the land to Magnolia Plaza Associates as affordable housing. • 636 EL CAMINO (APN 014-160-040) - The Housing Successor owns 87,121-square feet of land under an affordable multifamily development operated by MidPen Housing. The former Agency entered into a $9,988,434 loan agreement and ground lease with MP South City II, L.P. in March 2011 for the development of affordable units. The project consists of 108 affordable units, which are to remain affordable for no less than 75 years.
South San Francisco Housing Successor Annual Report 2024-25 11 LOANS RECEIVABLE
The former Agency initially transferred thirty-three loan agreements as part of the approved HAT. There are currently fourteen remaining loans receivable as of FY 2024-25. The outstanding loans are described below:
• Three First-Time Homebuyer Loans are administered by the Housing Successor with an outstanding balance of $150,376 as of June 30, 2025. The loans were issued to assist low and moderate-income first-time home buyers. Since the former Agency’s dissolution, twenty out of twenty-one loans that had been transferred were paid off, and 2 new loans have been issued. • Twelve Developer Loans are administered by the Housing Successor with an outstanding balance of $23,043,024 as of June 30, 2025. The loans were issued to develop affordable housing throughout the City.
o A total of twelve developer loans were transferred on the HAT, of which two have been paid off since dissolution.
o A new loan to developer ROEM was added in FY 2020-21 to assist a scattered development project at two locations: 201-219 Grand Avenue and 418 Linden Avenue.
The Grand Avenue development comprises 47 residential units and about 5,000 square feet of ground-floor commercial space located on former RDA property. The Linden Avenue development comprises 37 residential units on former City land. The project is governed by a Development Agreement as well as an Affordable Housing Regulatory Agreement. As of October 2023, both projects have received certificates of occupancy and are currently operational.
o A new loan was also added in FY 24-25 to assist a housing development at 500 Linden Avenue. The Rotary Gardens development comprises 80 residential units It is important to note that $22.8 million of the loans receivable value is offset by the "Allowance for Uncollectibles" account, as shown in the asset balance in Table 2. This is because many of the loans are not due and payable unless a property is sold or other conditions are met.
South San Francisco Housing Successor Annual Report 2024-25 12 COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS
During the 2024-25 Fiscal Year, the Housing Successor was in compliance with all annual, five-, and tenyear planning period requirements as described in this section.
Proportionality Requirements
As summarized in Figure 1 below, the Housing Successor fully complied with all Housing Asset Fund spending restrictions:
• During FY 2024-25, the Housing Successor expended $46,479 on allowable administrative expenses which is well under the current year maximum limit of $356,037. The annual limit on administrative expenses is the greater of $200,000 (plus inflation), or 5 percent of the Housing Successor Portfolio balance. As shown in Table 3, the Portfolio balance is $6,989,107, of which 5 percent is $356,037.
• During FY 2024-25, the Housing Successor used $176,160 of Housing Asset Funds for homeless prevention or rapid rehousing expenses and was therefore in compliance with the $500,000 spending restriction.
• The Housing Successor spent $131,641 on affordable housing development-related expenditures during FY 2024-25 for Extremely Low-Income (30% AMI or below) rental units. This year is the first year in the current five-year compliance period. Since this is the only housing development expenditure thus far, the Housing Successor currently meets the five-year income proportionality targets.
South San Francisco Housing Successor Annual Report 2024-25 13 Figure 1: FY 2024-25 Housing Asset Fund Expenditure Summary The Housing Successor met all Housing Asset Fund expenditure requirements throughout this five-year compliance period of July 1, 2024, through June 30, 2029, and will ensure it continues to do so in the future five-year compliance periods.
Failure to comply with the extremely low income requirement in any five-year compliance period would result in the Housing Successor having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance. Exceeding the expenditure limit for low-income households earning between 60-80 percent AMI in any five-year reporting period will result in the Housing Successor not being able to expend any additional funds on these income categories until in compliance. $46,479
/$356,037
$176,160
/$500,000
$131,641
(100%)
$0 $0
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Administration/
Monitoring
Homeless Prevention/
Rapid Rehousing
Ext. Low
<30% AMI
(30% minimum)
Very Low
31-59% AMI
(no limit)
Low
60-80% AMI
(20% maximum)
South San Francisco Expenditure Limit Compliance
Limit Expenditure
Annual Limits Five-Year Compliance
South San Francisco Housing Successor Annual Report 2024-25 14 Senior Rental Housing Limit Compliance
Pursuant to HSC Section 34176(b), a maximum of 50 percent of deed-restricted rental housing units assisted by the former Agency, Housing Successor, or City in the previous 10 years may be restricted to seniors. The Housing Successor complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The Housing Successor, City, and former Agency collectively assisted 521 deed-restricted rental units in the last ten years, 163 of which are restricted to seniors. Within the last 10 years, 31 percent of the deedrestricted units assisted by the Housing Successor, City, and former Agency are restricted to seniors, well below the limit. Table 4 details units assisted by project.
Table 4
Deed-Restricted Senior Rental Units Assisted Prior Ten Years Excess Surplus
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered cash balance that exceeds the greater of either $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. If the Housing Successor accumulates any surplus, these funds must be expended or encumbered within three fiscal years or transferred to HCD within 90 days of the end of the third fiscal year.
The Housing Successor previously committed to spend $1,076,383 as a predevelopment loan for an upcoming project at 500 and 522 Linden. The housing successor spent a portion of the committed funds Property Senior Units % Non-Senior
Units % Total Units
310 Miller 81 100% 0 0% 81
201-219 Grand Avenue (ROEM) 0 0% 47 100% 47
418 Linden Avenue (ROEM) 0 0% 37 100% 37
1051 Mission Road 0 0% 158 100% 158
432 Baden 0 0% 36 100% 36
201 Baden 82 100% 0 0% 82
Rotary Gardens 0 0% 80 100% 80
Total 163 358 521
Total Deed-Restricted Senior Units: 31%
Source: City of South San Francisco
South San Francisco Housing Successor Annual Report 2024-25 15 this year, leaving $944,742 encumbered. The Housing Successor committed an additional $235,000 to fund homelessness prevention through the City’s Emergency Rental Assistance Program. With this commitment the City will eliminate their prior two year’s outstanding excess surplus amounts for FY 2022- 23 and 2023-24 as shown in Tables 5a and 5b below.
Table 5a
FY 2022-23 Excess Surplus Elimination
Remaining Excess Surplus from Prior Year as of 7/1/24
FY 2022-23 $ 234,191
Elimination of Prior Year Excess Surplus
Expenditures
FY 24-25 Total Expenses $ (354,280)
Encumbrances
FY 24-25 Predevelopment and Homeless
Prevention Commitment1 $ (1,179,742)
Remaining Prior Year Excess Surplus None
Source: City of South San Francisco Finance Department
1 The City adopted a resolution committing $1,076,383 in Housing Asset Funds to assist 65 affordable family units being built at 500 and 522 Linden. The Housing Sucessor spent a portion of the encumbered funds this year, leaving $944,742 encumbered. On December 10, 2025, the City Council approved an allocation of $235,000 towards homelessness prevention through the City’s Emergency Rental Assistance Program.
South San Francisco Housing Successor Annual Report 2024-25 16 Table 5b
FY 2023-24 Excess Surplus Elimination
In FY 2024-25, the Housing Successor had an unencumbered cash balance of $1,297,018, net of the predevelopment loan commitment for 500-522 Linden and the recent allocation for the Emergency Rental Assistance Program. This amount exceeds the excess surplus limit of $1,000,000. Therefore, the Housing Successor has an excess surplus of $297,018 for FY 2024-25 as shown in Table 5a below.
Remaining Excess Surplus from Prior Year as of 7/1/24
FY 2023-24 $ 471,547
Elimination of Prior Year Excess Surplus
Expenditures
FY 24-25 Total Expenses $ (354,280)
Encumbrances
FY 24-25 Predevelopment and Homeless
Prevention Commitment1 $ (1,179,742)
Remaining Prior Year Excess Surplus None
Source: City of South San Francisco Finance Department
1 The City adopted a resolution committing $1,076,383 in Housing Asset Funds to assist 65 affordable family units being built at 500 and 522 Linden.
The Housing Sucessor spent a portion of the encumbered funds this year, leaving $944,742 encumbered. On December 10, 2025, the City Council approved an allocation of $235,000 towards homelessness prevention through the City’s Emergency Rental Assistance Program.
South San Francisco Housing Successor Annual Report 2024-25 17 Table 5a
FY 2024-25 Excess Surplus
Excess surplus funds must be accounted for separately and expended or encumbered within three fiscal years. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year. Accordingly, the Housing Successor will ensure that these funds are expended or encumbered by FY 2027-28 and will continue to monitor its deposits and expenditures to avoid any future excess surplus.
OTHER INFORMATION
Homeownership Unit Inventory
Table 6 presents an inventory of homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies.
Step 1: Determine Unencumbered Cash Balance From Financials FY 24-25 Beginning Cash Balance 2,476,760
Less: Encumbered Funds1 (1,179,742)
Unencumbered Amount $ 1,297,018
Step 2: Determine Greater of $1M or Last 4 Deposits
$1 Million, or 1,000,000
Last 4 years' deposits 877,129
2023-24 $ 301,534
2022-23 $ 248,937
2021-22 $ 148,275
2020-21 $ 178,383
Result: Larger Number $ 1,000,000
Step 3: Excess Surplus is Amount Step 1 Exceeds Step 2, if Any (1) Unencumbered Amount 1,297,018
(2) Less: Larger Number From Step 2 1,000,000
Excess Surplus $ 297,018
Source: City of South San Francisco Finance Department
1 The City adopted a resolution committing $1,076,383 in Housing Asset Funds to assist 65 affordable family units being built at 500 and 522 Linden. The Housing Sucessor spent a portion of the encumbered funds this year, leaving $944,742 encumbered.
On December 10, 2025, the City Council approved an allocation of $235,000 towards homelessness prevention through the City’s Emergency Rental Assistance Program.
South San Francisco Housing Successor Annual Report 2024-25 18 Table 6
Homeownership Unit Inventory
Project Name / Address1
Unit
No.
Covenant
Expiration
Affordability
Period (Yrs)
1 Manday Place # 802 1 3/21/35 25
1488 ECR #101 1 2/8/64 55
1488 ECR #104 1 3/24/64 55
1488 ECR #106 1 5/1/67 55
1488 ECR #115 1 8/21/64 55
1488 ECR #202 1 11/18/64 55
1488 ECR #205 1 6/16/64 55
1488 ECR #210 1 7/14/64 55
1488 ECR #214 1 7/21/64 55
1488 ECR #216 1 10/16/64 55
1488 ECR #217 1 6/30/64 55
1488 ECR #220 1 6/30/64 55
1488 ECR #223 1 3/16/65 55
1488 ECR #304 1 11/10/64 55
1488 ECR #313 1 12/9/64 55
1488 ECR #314 1 10/25/64 55
2 Farm Road 1 11/13/58 55
2200 Gellert Blvd #6103 1 7/21/39 30
2200 Gellert Blvd #6111 1 11/1/36 30
2200 Gellert Blvd #6203 1 3/2/37 30
2200 Gellert Blvd #6205 1 2/10/37 30
2200 Gellert Blvd #6207 1 11/3/36 30
2210 Gellert Blvd #5101 1 10/1/54 45
2210 Gellert Blvd #5103 1 1/30/37 30
2210 Gellert Blvd #5107 1 7/19/37 30
2210 Gellert Blvd #5203 1 1/30/38 30
2210 Gellert Blvd #5205 1 4/19/37 30
2210 Gellert Blvd #5209 1 1/30/37 30
2210 Gellert Blvd #5211 1 1/30/37 30
2210 Gellert Blvd #5309 1 1/30/37 30
2220 Gellert Blvd #4101 1 6/10/37 30
2220 Gellert Blvd #4103 1 10/3/37 30
2220 Gellert Blvd #4107 1 6/8/37 30
2220 Gellert Blvd #4111 1 6/14/37 30
South San Francisco Housing Successor Annual Report 2024-25 19 Transfers to Other Housing Successors
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1(c)(2).
Project Name / Address1
Unit
No.
Covenant
Expiration
Affordability
Period (Yrs)
2220 Gellert Blvd #4205 1 7/29/05 30
2220 Gellert Blvd #4211 1 5/26/37 30
2220 Gellert Blvd #4309 1 7/17/37 30
2230 Gellert Blvd #3103 1 2/25/38 30
2230 Gellert Blvd #3105 1 12/31/37 30
2230 Gellert Blvd #3107 1 12/3/37 30
2230 Gellert Blvd #3109 1 12/10/37 30
2230 Gellert Blvd #3203 1 12/10/37 30
2230 Gellert Blvd #3205 1 6/10/37 30
2230 Gellert Blvd #3209 1 1/8/38 30
2230 Gellert Blvd #4109 1 12/3/37 30
2250 Gellert Blvd #2101 1 9/25/38 30
2250 Gellert Blvd #2103 1 10/6/38 30
2250 Gellert Blvd #2107 1 8/29/63 30
2250 Gellert Blvd #2111 1 3/6/39 30
2250 Gellert Blvd #2203 1 10/6/38 30
2250 Gellert Blvd #2303 1 10/6/38 30
2260 Gellert Blvd #1107 1 11/12/43 30
2260 Gellert Blvd #1111 1 7/31/05 30
2260 Gellert Blvd #1207 1 5/18/39 30
260 Hillside Blvd 1 1/24/58 55
3775 Radburn Drive 1 2/15/34 30
3855 Carter Drive #203 1 9/1/34 25
438 Commercial Ave 1 6/30/60 55
440 Commercial Ave 1 6/30/60 55
441 2nd Lane 1 6/30/60 55
443 2nd Lane 1 6/30/60 55
56 Farm Road 1 1/19/61 55
61 Farm Court 1 7/25/05 30
936 Commercial Ave 1 11/10/41 30
942 Mission Road 1 4/21/35 25
958 Commercial Ave 1 8/25/64 55
Source: City of South San Francisco
1 2200 Gellert Blvd #6109, #5105, #5111 and #5303 were released from their respective Restrictions
South San Francisco Housing Successor Annual Report 2024-25 20 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL REPORT
REQUIREMENTS
Health and Safety Code Section 34176.1(f)
Housing Asset
Fund
Revenues &
Expenditures
Total amount deposited in the Housing Asset Fund for the fiscal year.
Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”).
Statement of balance at the close of the fiscal year.
Description of Expenditures for the fiscal year, broken out as follows:
• Homeless prevention and rapid rehousing
• Administrative and monitoring
• Housing development expenses by income level assisted Description of any transfers to another housing successor for a joint project.
Other Assets
and Active
Projects
Description of any project(s) funded through the ROPS.
Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing).
Other “portfolio” balances, including:
• Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund
• Value of loans and grants receivable
Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low and Moderate Income Housing Fund.
Obligations &
Proportionality
Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor.
Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle.
Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies.
Amount of any excess surplus, and, if any, the plan for eliminating it.
South San Francisco Housing Successor Annual Report 2024-25 21 APPENDIX 2 – HOUSING ASSET FUND EXPENDITURE
REQUIREMENTS
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Administration
and Compliance
Monitoring
Measured
Annually
$356,037 limit
for FY 2024-
25 (limit varies
each year)
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration
• Compliance monitoring to ensure compliance with affordable housing and loan agreements
• Property maintenance at Housing Successor-owned properties Capped at $200,000 adjusted annually for inflation (determined to be $270,700 for FY 24-25) or 5 % of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”) ($356,037 for FY 24-25), whichever is greater.
Homeless
Prevention and
Rapid
Rehousing
Solutions
Measured
Annually
$500,000
maximum per
fiscal year
Services for individuals and families who are homeless or would be homeless but for this assistance, including:
• Contributions toward the construction of local or regional homeless shelters
• Housing relocation and stabilization services including housing search, mediation, or outreach to property owners
• Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.
Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long-term affordability covenants on multifamily units
• Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years
South San Francisco Housing Successor Annual Report 2024-25 22 Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Income
Targets
Fixed FiveYear
Compliance
Period
(currently FY
2024-25 to FY
2028-29)
Every five years (currently FYE 2020-2024), Housing Asset Funds must meet income targets:
• At least 30% on extremely low-income rental households (up to 30% AMI or “Area Median Income”)
• No more than 20% on low-income households (60-80% AMI) Moderate and above moderate-income households may not be assisted (above 80% AMI).
Failure to comply with the extremely low-income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance.
Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance.
Age Targets
Rolling TenYear Period
(looks back at
prior ten
years)
For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.
If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.
South San Francisco Housing Successor Annual Report 2024-25 23 APPENDIX 3 – HOUSING ASSET TRANSFER FORM
Former Redevelopment Agency: South San Francisco
Successor Agency to the Former
Redevelopment Agency: South San Francisco
Entity Assuming the Housing Functions
of the former Redevelopment Agency: South San Francisco Entity Assuming the Housing Functions
Contact Name: Armando Sanchez Title Redevelopment Consultant Phone 650-877-8667 [email protected] Entity Assuming the Housing Functions
Contact Name: Marty VanDuyn Title Assistant City Manager Phone 650-877-8500 [email protected] The following Exhibits noted with an X in the box are included as part of this inventory of housing assets:
Exhibit A - Real Property X
Exhibit B- Personal Property X
Exhibit C - Low-Mod Encumbrances X
Exhibit D - Loans/Grants Receivables X
Exhibit E - Rents/Operations X
Exhibit F- Rents X
Exhibit G - Deferrals
Prepared By: Kate Rosenlieb
Date Prepared: July 31, 2012
E-Mail Address
E-Mail Address
All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list.
DEPARTMENT OF FINANCE
HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)