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City Council Report

 

City Council Meeting: December 16, 2014

Agenda Item: 3-E  

To:               Mayor and City Council 

From:           Andy Agle, Director of Housing and Economic Development

                    Gigi Decavalles-Hughes, Director of Finance

 

Subject:        Annual Report on the Housing Asset Fund 

 

Recommended Action

 

Staff recommends that the City Council:

 

1.  Receive the Annual Report on the Low- and Moderate-Income Housing Asset Fund for Fiscal Year 2013-14 and direct the City Manager to post the report on the City's website by December 31, 2014; and

 

2.  Direct staff to present the independent audit of the Low- and Moderate Income Housing Asset Fund to the Council upon completion of the independent audit of the City’s Comprehensive Annual Financial Report (CAFR) and post the results of the audit on the City's website within five days of presentation to the Council.

 

Executive Summary

 

Recent changes in state law require the City to prepare an annual report regarding the low- and moderate-income housing asset fund of the former Santa Monica Redevelopment Agency.  The law also requires the completion of an independent audit of the fund.  The annual report is attached and the audit is being completed as part of the City’s annual audit process.

 

Discussion

 

Senate Bill 341 (SB 341), which is codified in Health and Safety Code Section 34176.1 and became effective on January 1, 2014, requires each housing successor that assumed the housing functions of a former redevelopment agency to post a report on its website that contains information regarding the low- and moderate-income housing asset fund (Fund) of the former redevelopment agency for the previous fiscal year.  In this case, the City, as the housing successor (Housing Successor), is required to prepare and post the report (see Attachment A.) 

 

In addition, the Housing Successor is required to conduct and provide to the Council an independent financial audit (Audit) of the Fund within six months of the end of the fiscal year.  The Audit may be included as part of the City’s independent financial audit.

 

 

The City as Housing Successor assumed the housing functions of the former Santa Monica Redevelopment Agency (RDA) on January 10, 2012.  The transfer of the functions included the transfer of formerly designated RDA low- and moderate-income housing funds together with any funds generated by former RDA housing assets.  The funds must be maintained by the City in the separate Fund and expended in accordance with Health and Safety Code section 34176.1 ("Section 34176.1").  

 

To ensure that the monies in the Fund are expended in accordance with the law, Section 34176.1(f) requires an independent financial audit of the Fund within six months of the end of the fiscal year.  The independent audit of the City’s Fund will be included as part of the City’s CAFR prepared by Macias Gini & O’Connell LLP (MGO), the City’s independent auditor. Staff is working to complete the CAFR during the required six‑month timeframe. Staff will post the results of the independent audit of the Fund on its website within five days of the CAFR being presented to City Council. 

 

SB 341 also requires annual reporting and website posting of additional housing information related to the Fund.  The Report includes the following information:

 

 

 

 

 

 

 

The Report is attached as Attachment A and is required to be posted on the City's website after Council's review and receipt.

 

Financial Impacts & Budget Actions

 

There is no immediate financial impact or budget action necessary as a result of the recommended action.

 

 

Prepared by:  Tina Rodriguez, Successor Agency Administrator

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Andy Agle, Director

Housing and Economic Development

 

Rod Gould

City Manager

 

 

 

 

Gigi Decavalles-Hughes, Director

Finance

 

Attachments:

 

Attachment A:         Annual Report Low and Moderate Income Housing Asset Fund