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Home My WebLink AboutAGENDA REPORT 2017 0315 CCSA REG ITEM 10D ITEM 10.D. CITY OF klOORPARK,CAL1FORMA MOORPARK CITY COUNCIL City Council Meeting AGENDA REPORT of %3_/5�� ACTlelq:_ c TO: The Honorable City Council apt: FROM: Ron Ahlers, Finance Director DATE: March 3, 2017 (CC Meeting of March 15, 2017) SUBJECT: Consider Housing Successor Fund of the City of Moorpark Addendum to the Annual Progress Report for Fiscal Year Ended June 30, 2016 SUMMARY The Housing Successor Fund of the City of Moorpark Addendum to the Annual Progress Report for Fiscal Year Ended June 30, 2016 is hereby submitted for Council approval. BACKGROUND/DISCUSSION The City is required by the State of California, Senate Bill 341 (SB 341), to produce this report on an annual basis. SB 341 requires that this report be filed with the State of California. The report has been prepared by the City's independent auditors, Rogers, Anderson, Malody & Scott (RAMS), as a part of their annual work to prepare the City's Comprehensive Annual Financial Report (CAFR). STAFF RECOMMENDATION Accept the Housing Successor Fund of the City of Moorpark Addendum to the Annual Progress Report for Fiscal Year Ended June 30, 2016 and receive and file this report. Attachments: Housing Successor Fund of the City of Moorpark Addendum to the Annual Progress Report for Fiscal Year Ended June 30, 2016 34 Housing Successor Fund of the City of Moorpark Addendum to the Annual Progress Report For Fiscal Year Ended June 30, 2016 35 RA ROGERS.ANDERSON. MALODY&SCOTT, LLP MCERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 735 E.Carnegie Dr.Suite 100 San Bernardino,CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Independent Accountant's Disclaimer Report Applied to the Brenda L.Odle,CPA.MST Preparation of the Addendum to the Annual Progress Report of the Terry P.Shea,CPA Housing Successor of the City of Moorpark Kirk A.Franks,CPA Scott W.Manno,CPA,CGMA Leena Shanbhag,CPA.MST.CGMA Bradferd A.Welebir,CPA.MBA,CGMA Jay H.Zercher,CPA(Partner Emeritus) To Management of the Phillip H.Waller.CPA(Partner Emeritus) Housing Successor of the City of Moorpark MANAGERS/STAFF Moorpark, California Jenny Liu,CPA,MST Seong-Hyea Lee,CPA,MBA Charles De Simoni,CPA Nathan Statham.CPA,MBA We have prepared the accompanying Addendum to the Annual Progress Brannaya Duran PPA Report("Addendum to the APR") of the Housing Successor of the City of Lisa Dongxue Guo,CPA,MSA Moorpark ("Housing Successor") as of June 30, 2016 and for the year then ended in accordance with the reporting provisions of the California Health &.Safety Code Section 34176.1 as amended by Senate Bill 341 (Chapter 796, Statutes of 2013, effective January 2014) ("SB 341"), and as amended by Senate Bill 107 (Chapter 325, Statutes of 2015, effective January 2016) HSC Section 34176.1(f). Management of the Housing Successor is responsible for the preparation and fair presentation of the Addendum to the APR in accordance with the reporting provisions of SB 341, and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the Addendum to the APR. The accompanying Addendum to the APR of the Housing Successor of the City of Moorpark ("Housing Successor") as of June 30, 2016 and for the year then ended was not subjected to an audit, review, or compilation engagement by us and, accordingly, we do not express an opinion, conclusion, nor provide any assurance on it. MEMBERS This Addendum to the APR is intended solely for the information and use American Institute of of management of the Housing Successor of the City of Moorpark, and is Certified Public Accountants not intended to be and should not be used by anyone other than this PCPS The AICPA Alliance specified party. for CPA Firms Governmental Audit ,9er4,Rn derson,M atodt.&Scott,LLP Quality Center California Society of San Bernardino, California Certified Public Accountants February 20, 2017 36 STABILITY. ACCURACY. TRUST. Housing Successor of the City of Moorpark Addendum to the Annual Progress Report For Fiscal Year Ended June 30, 2016 1) The amount the city, county or city and county received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4. No amounts received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4. 2) The amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing any amounts deposited pursuant to subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of Section 34191.4, amounts deposited for items listed on the Recognized Obligation Payment Schedule from other amounts deposited. The Housing Successor Fund received $4,590 from use of money and property and $19,800 from charges for services as of June 30, 2016. None of these amounts were deposited for items listed on the Recognized Obligation Payment Schedule. 3) A statement of the balance in the fund as of the close of the fiscal year, distinguishing any amounts held for items listed on the Recognized Obligation Payment Schedule from other amounts. The balance in the Housing Successor Fund as of June 30, 2016, was$7,717,566, none of which was held for items listed on the Recognized Obligation Payment Schedule. 4) A description of expenditures from the fund by category, including, but not limited to, expenditures a. for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in paragraphs (2) and (3) of subdivision (a), The Housing Successor Fund's expenditures related to this category as of June 30, 2016, were $17,977 in administrative expenses. b. for homeless prevention and rapid re-housing services for the development of housing described in paragraph (2) of subdivision (a),and The Housing Successor Fund had no expenditures related to homeless prevention and rapid re-housing services as of June 30, 2016. c. for the development of housing pursuant to paragraph (3) of subdivision (a). The Housing Successor Fund had no expenditures related to the development of housing as of June 30, 2016. 37 Addendum to the Annual For the Year Ended June 30, 2016 Progress Report Page 2 5) As described in paragraph (1) of subdivision (a), the statutory value of real property owned by the housing successor, the value of loans and grants receivable, and the sum of these two amounts. The statutory value of real property owned by the Housing Successor Fund as of June 30, 2016, was$7,518,873. The value of loans and notes receivable in the Housing Successor Fund as of June 30, 2016, was$2,041,639. The sum of the statutory value of real property and the value of loans and notes receivable owned by the Housing Successor Fund adds up to$9,560,512.. 6) A description of any transfers made pursuant to paragraph (2) of subdivision (c) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service. No transfers occurred pursuant to paragraph (2) of subdivision (c) in the previous fiscal year or earlier fiscal years in the Housing Successor Fund. 7) A description of any project for which the housing successor receives or holds property tax revenue pursuant to the Recognized Obligation Payment Schedule and the status of that project. The Housing Successor Fund received no such property tax revenue as of June 30, 2016. 8) For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with Section 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project. As of June 30, 2016, the Housing Successor Fund's real property interests were as follows: (see page 3). 38 Addendum to the Annual For the Year Ended June 30,2016 Progress Report Page 3 Year of Status on compliance Property Description Value Acquisition with 33334.16 Land, Regal Park Condo-1.15 acres 1992 $ 170,100 In Compliance Land,W/Buildings-782 Moorpark Avenue-old Fire 2000 110,737 In Compliance Station(swapped with 285 High Street new Fire Station) Land,W/Buildings-782 Moorpark Avenue-old Fire Station(swapped with 285 High Street new Fire Station) 2008 4,534 In Compliance Land,W/House-798 Moorpark Avenue(Public Works Office and Parking Lot) 2001 221,320 In Compliance Land,W/House-798 Moorpark Avenue(Public Works Office and Parking Lot) 2008 4,534 In Compliance Land,W/House-81 Charles 2004 339,491 In Compliance Land,W/House-81 Charles 2007 4,083 In Compliance Land,765 Walnut Street 2007 451,492 In Compliance Land,765 Walnut Street 2008 66,534 In Compliance Land,250 E LA Avenue 2007 578,814 In Compliance Land, 1095 Walnut Canyon 2007 10,500 In Compliance Land, 1095 Walnut Canyon 2008 363,986 In Compliance Land, 1113 Walnut Canyon 2007 10,470 In Compliance Land, 1113 Walnut Canyon 2008 401,330 In Compliance Land,460 Charles Street 2007 13,050 In Compliance Land,460 Charles Street 2008 437,810 In Compliance Land,450 Charles Street 2008 476,368 In Compliance Land,450 Charles Street 2009 43,848 In Compliance Land,450 Charles Street 2009 11,112 In Compliance Land, 1293 Walnut Canyon 2008 522,547 In Compliance Land, 1293 Walnut Canyon 2009 12,556 In Compliance Land, 1331 Walnut Canyon 2008 389,457 In Compliance Land, 1331 Walnut Canyon 2009 8,517 In Compliance Land,484 Charles Street 2008 481,681 In Compliance Land,484 Charles Street 2009 16,610 In Compliance Land-1063 Walnut Canyon Road 2008 464,859 In Compliance Land-1063 Walnut Canyon Road 2009 9,675 In Compliance Land-1073 Walnut Canyon Road 2009 301,073 In Compliance Land-1123 Walnut Canyon Road 2008 477,782 In Compliance Land-1123 Walnut Canyon Road 2009 10,950 In Compliance Land-1083 Walnut Canyon Road 2010 704,113 In Compliance Land-1083 Walnut Canyon Road 2011 12,667 In Compliance Land-112 First Street 2010 12,940 In Compliance 112 First Street, Demolition Cost 2011 4,020 In Compliance 124 First Street 2010 356,060 In Compliance 112 First Street, Demolition Cost 2011 13,253 In Compliance $ 7,518,873 39 Addendum to the Annual For the Year Ended June 30, 2016 Progress Report Page 4 As of June 30, 2016, the Housing Successor Fund did not hold any property acquired after February 1, 2012. 9) A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor's progress in meeting those obligations, and of the housing successor's plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet Web site the implementation plans of the former redevelopment agency. As of June 30, 2016, there were no outstanding obligations pursuant to Section 33413 that remained to be transferred to the Housing Successor Fund on February 1, 2012. 10)The information required by subparagraph (B) of paragraph (3) of subdivision (a). This item is not applicable to the Housing Successor until Fiscal Year Ended June 30, 2019. 11) 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. As of June 30, 2016, the Housing Successor Fund had 0% 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. 12) The amount of any excess surplus, the amount of time that the successor agency has had excess surplus, and the housing successor's plan for eliminating the excess surplus. The Housing Successor Fund did not have any excess surplus as of June 30, 2016, or at any point during the fiscal year. 40 Addendum to the Annual For the Year Ended June 30, 2016 Progress Report Page 5 13) 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 protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3. This inventory shall include all of the following information: a. The number of those units. The Housing Successor Fund assisted approximately 20 homeownership units by former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency's investment of moneys from Low and Moderate Income Housing Fund Pursuant to subdivision (f) of Section 33334.3. b. In the first report pursuant to this subdivision, the number of units lost to the portfolio after February 1, 2012, and the reason or reasons for those losses. For all subsequent reports, the number of the units lost to the portfolio in the last fiscal year and the reason for those losses. The Housing Successor Fund had no units lost to the portfolio after February 1, 2012, as of June 30, 2016. c. Any funds returned to the housing successor as part of an adopted program that protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund. The Housing Successor Fund did not received any funds in return as part of an adopted program that protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund for the year ended June 30, 2016. d. Whether the housing successor has contracted with any outside entity for the management of the units and, if so,the identity of the entity. The units are owned and managed by the Area Housing Authority and monitored by the City of Moorpark. 41