MEETING DATE:
TO:
FROM:
SUBJECT:
SEPTEMBER 15, 2026
ALDO E. SCHINDLER, CITY MANAGER
ALEXA SMITTLE, DIRECTOR OF COMMUNITY DEVELOPMENT
HOUSING AUTHORITY ANNUAL REPORT AND SENATE BILL 341
REPORT FOR FISCAL YEAR 2025-2026
SUMMARY:
Pursuant to California Health and Safety Code Sections 34328 and 34176.1(f), the Tustin Housing Authority has prepared the Fiscal Year 2025–26 Annual Housing Report, fulfilling the reporting requirements for both the Tustin Housing Authority and the Tustin Housing Successor.
RECOMMENDATION:
Recommend the Tustin Housing Authority:
• Receive and file the Annual Housing Report for Fiscal Year 2025-26 and transmit such report to the Tustin City Council; and
• Direct that a copy of the Annual Housing Report for Fiscal Year 2025-26 be filed with the City Clerk and ex-officio Clerk of the City Council of the City of Tustin and the California Department of Housing and Community Development.
Recommend the City Council:
• Receive and file the Fiscal Year 2025-26 Annual Housing Report; and • Direct a copy of the Annual Housing Report be posted on the City of Tustin’s website.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
CORRELATION TO THE STRATEGIC PLAN:
The Annual Housing Report supports the City’s Strategic Plan Goal A: Economic and Neighborhood Development by documenting progress toward Strategy 15: Create affordable and workforce housing options, and Strategy 16: Address homelessness.
AGENDA REPORT
Agenda Item _______
Reviewed:
City Manager _______
Finance Director _______
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9 Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 City Council Agenda Report
Housing Authority Annual Report and Senate Bill 341 Report for Fiscal Year 2025-2026 September 15, 2026
BACKGROUND AND DISCUSSION:
On March 15, 2011, the City Council adopted Resolution No. 11-20 establishing the Tustin Housing Authority (Housing Authority) pursuant to California Health and Safety Code Section 34200 et seq., and on January 17, 2012, the Housing Authority adopted Resolution HA No. 12-01, assuming the housing assets and functions of the former Tustin Community Redevelopment Agency following redevelopment dissolution. Under State law, the Housing Authority is required to prepare and submit an annual report to the City Council and the California Department of Housing and Community Development (HCD) documenting its activities during the preceding fiscal year.
The attached Annual Housing Report meets the annual statutory reporting requirements for both the Housing Authority and the Housing Successor, providing a comprehensive overview of affordable housing inventory, programs, and activities; Housing Successor responsibilities; compliance monitoring efforts; and financial information for the 2025-26 fiscal year. The report further demonstrates that the Housing Successor's Low- and Moderate-Income Housing Asset Fund remains in compliance with State law. Financial information included in the report is subject to the City’s annual independent audit, and any revisions resulting from the completion of the audit will be incorporated and resubmitted, if necessary.
Upon approval by the Housing Authority and receipt and filing by the City Council, the Report will be filed with the City Clerk, submitted to HCD, and posted on the City's website in accordance with State law.
_____________________
Janine Hernandez
Senior Management Assistant
_____________________
Alexa Smittle
Director of Community Development
Attachment:
1. Annual Housing Report for Fiscal Year 2025-26
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TUSTIN HOUSING AUTHORITY
Annual Housing Report
Fiscal Year 2025 – 2026
Incorporating Housing Successor Reporting Requirements
September 15, 2026
Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
2 THE TUSTIN HOUSING AUTHORITY
The Tustin Housing Authority (Housing Authority) was
established by the City of Tustin City Council on March 15, 2011, in anticipation of the dissolution of California’s redevelopment agencies. Following the dissolution of
redevelopment agencies on February 1, 2012, and
pursuant to California Health and Safety Code Section
34176, the Housing Authority assumed the affordable
housing assets and responsibilities of the former
Redevelopment Agency of the City of Tustin as the
City’s Housing Successor.
Today, the Housing Authority serves as the City's
affordable housing agency and Housing Successor.
The Housing Authority is responsible for preserving
affordable housing opportunities, monitoring
affordability restrictions, administering affordable
housing programs, supporting housing initiatives
serving vulnerable populations, ensuring compliance
with applicable State housing laws, and administering
any funds in the Low- and Moderate-Income Housing
Asset Fund (LMIHAF).
PURPOSE OF THIS REPORT
This Annual Housing Report summarizes the Housing
Authority's activities and accomplishments during Fiscal Year 2025-2026.
The report incorporates the annual reporting
requirements for both the Housing Authority and the
Housing Successor pursuant to California Health and
Safety Code Sections 34328 and 34176.1. It includes
information regarding affordable housing programs,
Housing Successor financial activities, statutory
compliance, and affordable housing preservation
efforts.
AFFORDABLE HOUSING
The Housing Authority is statutorily required to annually report on the City’s affordable housing inventory,
affordable housing development activities, and other
housing related requirements established by California
Health and Safety Code. The following subsections
summarize these activities during Fiscal Year 2025-
2026.
REPORT
OVERVIEW
Annual Housing
Authority Report
- Covers the activities of
the Tustin Housing
Authority during Fiscal
Year 2025-2026
- Prepared in accordance
with California Health
and Safety Code Section
34328
- Submitted to the
California Department of
Housing and Community
Development (HCD)
Housing Successor
Reporting
- Summarizes the
Housing Successor’s
activities and LMIHAF
expenditures during
Fiscal Year 2025-2026
- Incorporates the annual
requirements of
California Health and
Safety Code Section
34176.1
- Documents Housing
Successor assets,
expenditures, statutory
compliance, and
affordable housing
preservation activities
- Made available to the
public through the City’s
website
Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
3 DOMESTIC VIOLENCE
California Health and Safety Code Section 34328 requires housing authorities to annually report domestic violence incidents occurring in Housing Authority-owned or operated units and Housing Choice (formerly known as Section 8) Voucher Programs.
The Housing Authority does not own or operate housing units or administer a Housing Choice Voucher Program. Therefore, there is no reportable activity for Fiscal Year 2025- 2026.
AFFORDABLE OWNERSHIP HOUSING
As of the reporting date, 263 covenant-restricted, affordable owner-occupied units exist in Tustin, as shown in the following Exhibit 1. These units have affordability covenants that restrict the income levels of the homebuyers at the time of purchase. All units have “silent second” loans¹ that are used to maintain affordability. Only nine of the for-sale units have affordability covenants that are held by the Housing Authority. The vast majority of units have affordability covenants held by the City. Nevertheless, all units are annually monitored by staff to ensure adherence with covenants and agreements and are included here to provide a broader picture of affordable homeownership units within Tustin.
EXHIBIT 1 – FOR SALE INVENTORY
Income Level
Very Low Low Moderate Total
Arbor Walk * 4 5 9
Tustin Field 1 16 10 44 70
Tustin Field 2 10 11 18 39
Columbus Grove 30 30
Columbus Square 26 63 24 113
The Jessup 2 2
Total 58 84 121 263
*Arbor Walk affordability covenants are recorded in favor of the Housing Authority; all other projects are recorded in favor of the City.
AFFORDABLE RENTAL HOUSING
In addition to the affordable ownership units, 995 affordable rental units exist in Tustin.
As with the ownership units, only a portion of these homes have affordability covenants recorded in favor of the Housing Authority, with others recorded in favor of the City or the County of Orange. Exhibit 2 details the affordable rental units in Tustin.
Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
4 EXHIBIT 2 – RENTAL UNIT INVENTORY
Income Level
Very Low Low Moderate Total
Amalfi * 37 37
Anton Legacy * 88 73 64 225
Coventry Court 36 61 56 153
Heritage Place 33 20 53
Families Forward 6 6
Miscellaneous Units 4 4
Tustin Gardens 99 99
Chatham Village 212 212
Westchester Park 149 149
Flanders Pointe 32 16 9 57
Total 294 531 170 995
*Affordability covenants are recorded in favor of the Housing Authority; all other projects are recorded in favor of the City.
AFFORDABLE HOUSING DEVELOPMENT
The Tustin Housing Authority supports the development of new affordable housing opportunities that address identified community housing needs and expand the City's affordable housing inventory.
FAMILIES FORWARD AFFORDABLE HOUSING DEVELOPMENT
Families Forward received a $2 million grant from the City to develop eight affordable housing units for families with minor children who are at risk of or experiencing homelessness and are extremely low- to low- income. In Fiscal Year 2025-26, Families Forward continued to assemble final project funding and identified a builder, and building permit issuance is expected in Fiscal Year 2026-27.
HOMELESS SERVICES
The Housing Authority was designated by the City Council as the entity responsible for overseeing the City’s efforts to serve individuals and families experiencing homelessness.
The following section summarizes those efforts during Fiscal Year 2025-2026.
TUSTIN TEMPORARY EMERGENCY SHELTER
The Tustin Temporary Emergency Shelter (TTES), operated by Temporary Shelter, Inc., provides low-barrier emergency shelter and supportive services for individuals and families experiencing homelessness who have ties to Tustin. During Fiscal Year 2025- Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
5 26, the shelter served 178 guests, including 15 families, while helping 75 guests transition to more stable housing. Exhibit 3 summarizes shelter activity during the fiscal year.
EXHIBIT 3 – TTES SERVICE SUMMARY
Program Activity Fiscal Year 2025-26
Guests Served 178
Families Served 15
Positive Housing Transitions 75
Bed Nights Provided 17,054
Meals Provided 49,350
Mental Health Services 55
Housing Consultations 352
TUSTIN VETERANS OUTPOST
The Tustin Veterans Outpost, operated by the Orange County Rescue Mission (OCRM), provides transitional housing and supportive services for Veterans experiencing homelessness. The program includes 52 beds serving Veterans and their families. Exhibit 4 summarizes program activity and services provided during Fiscal Year 2025-2026.
EXHIBIT 4 – TUSTIN VETERANS OUTPOST SERVICE SUMMARY
Program Activity Fiscal Year 2025-26
Veterans Served 30
Family Members Served 17
Veterans Employed During Program 22
College Degrees/Certificates Earned 4
Veterans Transitioned to Stable Housing 11
Bed Nights Provided 7,869
Meals Provided 23,607
Counseling Sessions Provided 635
TRANSITIONAL HOUSING
The Housing Authority coordinates with Human Options and The Salvation Army to provide 12 transitional housing units serving families experiencing homelessness. The programs provide supportive services to assist participants in transitioning to permanent housing. Exhibit 5 summarizes program activity during Fiscal Year 2025-26.
Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
6 EXHIBIT 5 – TRANSITIONAL HOUSING SERVICE SUMMARY
Program Activity Fiscal Year 2025-26
Families Served 21
Families Transitioned to Permanent Housing 5
Adults Obtaining Employment 14
College Degrees/Certificates Earned 0
Counseling Hours Provided 636
HOUSE OF RUTH
House of Ruth, operated by Family Promise of Orange County, provides seven transitional housing units for families experiencing homelessness. The program offers supportive services designed to help families achieve housing stability and transition to permanent housing. Exhibit 6 summarizes program activity for the 2025 calendar year.
EXHIBIT 6 – HOUSE OF RUTH SERVICE SUMMARY
Program Activity Calendar Year 2025
Families Served 28
Families Transitioned to Permanent Housing 17
Adults Obtaining Employment 18
College Degrees/Certificates Earned 1
Counseling Hours Provided 2,001
HOUSING SUCCESSOR
Following the dissolution of California redevelopment agencies, the Tustin Housing Authority assumed responsibility as the City's Housing Successor pursuant to California Health and Safety Code Section 34176. As Housing Successor, the Housing Authority administers the LMIHAF and manages affordable housing assets in accordance with State law. The following section summarizes the Housing Successor's financial activities and statutory compliance during Fiscal Year 2025-2026.
FINANCIAL SUMMARY
During Fiscal Year 2025-2026, the Housing Successor continued to administer the LMIHAF in accordance with California Health and Safety Code requirements. The LMIHAF is supported entirely through transfers from the City’s General Fund to reimburse eligible Housing Successor administration and affordable housing monitoring activities associated with preserving the City’s affordable housing assets. Exhibit A summarizes the Housing Successor's financial activity during the Fiscal Year 2025-2026. Please note that all figures remain subject to the City’s third-party annual audit.
Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
7 EXHIBIT A – LOW- AND MODERATE-INCOME HOUSING ASSET FUND (LMIHAF) Financial Activity Fiscal Year 2025-26
Beginning Fund Balance $71,794
Interest Income $1,049
General Fund Transfers $198,980
Expenditures ($208,137)
Ending Fund Balance $63,686
AFFORDABLE HOUSING ASSETS
The Housing Successor continues to administer affordable housing assets in accordance with California Health and Safety Code requirements. These assets support the preservation of affordable housing opportunities within the City. Exhibit B summarizes the Housing Successor's affordable housing assets as of June 30, 2026.
EXHIBIT B – HOUSING ASSETS
Asset Category Value
Multifamily Loans $362,840
Affordable Housing Promissory Notes $97,293,457
Less: Promissory Note Allowance (Forgivable Amount) ($82,124,869) Total Value of Housing Successor Assets $15,531,428
20% Administrative Expenditure Cap $3,106,286
STATUTORY COMPLIANCE
California Health and Safety Code Section 34176.1 requires the Housing Successor to annually report compliance with specific statutory requirements related to the administration of the LMIHAF and affordable housing assets. The following subsections summarize the Housing Successor's compliance during Fiscal Year 2025-2026.
EXTREMELY LOW-INCOME REQUIREMENT
California Health and Safety Code Section 34176.1(a)(3)(A) requires a Housing Successor to expend at least 30 percent of the LMIHAF used for affordable housing development on rental housing affordable to and occupied by households earning 30 percent or less of Area Median Income (AMI). Compliance with this requirement is evaluated over five-year reporting periods.
During Fiscal Year 2025-2026, the Housing Successor used LMIHAF funds only for administration and monitoring of affordable housing units and did not expend funds for Docusign Envelope ID: B5042875-CA6D-8C27-8190-278DEA7EEB77 Tustin Housing Authority Annual Report
2025-26
8 the development of rental housing. The Housing Successor remained in compliance with the Extremely Low-Income requirement for the five-year reporting periods ending in 2019 and 2024 and continues to comply with the statutory requirement.
SENIOR HOUSING REQUIREMENT
California Health and Safety Code Section 34176.1 restricts a Housing Successor from developing additional senior-restricted housing if more than 50 percent of the deedrestricted rental units assisted during the previous 10 years were designated for seniors.
During Fiscal Year 2025-2026, the Housing Successor remained in compliance with this requirement.
EXCESS SURPLUS
California Health and Safety Code Section 34176.1 requires the Housing Successor to annually evaluate the balance of the LMIHAF to determine whether excess surplus exists.
During Fiscal Year 2025-2026, the Housing Successor determined that no excess surplus existed. The LMIHAF is supported by transfers from the City's General Fund to reimburse eligible Housing Successor administration and affordable housing monitoring activities.
Because the Housing Successor does not receive ongoing program revenues, it is not anticipated that the LMIHAF will accumulate an excess surplus. Exhibit C summarizes the excess surplus calculation.
EXHIBIT C – EXCESS SURPLUS CALCULATION
Fiscal Year Deposit Amount
2022-2023 $294,125.44
2023-2024 $25,516.83
2024-2025 $0
2025-2026 $0
Total Deposits – Last Four Fiscal Years $319,642.27
Unencumbered Fund Balance $63,686
Excess Surplus $0
OTHER STATUTORY REQUIREMENTS
• No loans or loan funds were received pursuant to California Health and Safety Code Section 34191.4(b)(3)(A)
• No affordable ownership units were lost to the portfolio during Fiscal Year 2025- 2026.
• No payments were received during the Fiscal Year 2025-2026. • No transfers were made to another Housing Successor Agency. • The Housing Successor did not contract with an outside entity to manage affordable ownership units.
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