HomeMy WebLinkAboutSR - 06/07 Plnng & Admin CostsPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: DETERMINATION THAT PLANNING AND ADMINISTRATIVE
COSTS INCURRED DURING THE 2006-2007 FISCAL YEAR ARE
NECESSARY FOR THE PRODUCTION, IMPROVEMENT, AND/
OR PRESERVATION OF LOW AND MODERATE INCOME
HOUSING
SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING
DATE: OCTOBER 11, 2007
Recommendation:
By Minute Motion, that
1) The Agency Board determines that planning and administrative
expenses incurred for Fiscal Year 2006-2007 were necessary and
were not disproportionate to the rest of the expenditures within the
redevelopment agency for the production, improvement, and/or
preservation of low and moderate income housing.
2) The Agency Board determines that the planning and administrative
expenses incurred were directly related to the Agency's production,
improvement, and/or preservation of low and moderate income
housing.
Discussion:
California Health and Safety Code Section 33334.6 (d) legislates that the Agency shall
determine annually that planning and administrative expenses are necessary for the
production, improvement and preservation of low and moderate income housing in the
project areas and throughout the City. The code further provides that such costs should
not be disproportionate to the rest of expenditures within the redevelopment agency
with the amount actually spent for the cost of production, improvement, or preservation
of low income housing. Eligible costs include salaries, wages and related costs of
agency staff, or services provided through inter -agency agreements, and agreements
with contractors such as legal and consulting services.
The Agency annually incurs such costs because the housing programs, adopted and
budgeted, cannot be implemented without staff and the necessary consultants. In
2006-2007 these costs made up only 6.97% of total expenditures for low and moderate
income housing. Over the past few years, such costs have amounted to approximately
Staff Report
Housing Production Costs
Page 2 of 2
October 11, 2007
11 % of total expenditures. The difference is primarily due to the timing of construction
on various projects currently under way.
Consequently, staff is recommending that the Agency Board determine that the
planning and administrative expenses incurred for Fiscal Year 2006-2007 were
necessary; were not disproportionate to the rest of the expenditures within the
redevelopment agency; and that the expenses incurred were directly related to the
Agency's production, improvement, and/or preservation of low and moderate income
housing.
Submitted by:
JOn,eeM. Moore
Director of Housing
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Approval:
J tin McCarthy
CM edevelopm t
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Carlos L. Ortda
Executive Director
HOUSING PRODUCTION COSTS
Department Head:
Dave Yrigeedevelopment/Housing
Director
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Paul S. Gibson
Director of Finance
apprDvf BY RDA
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VERIFIED BY WKI
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Original on file with City Clerk's Office