HomeMy WebLinkAboutPlnng & Admin Costs Incurred FY 08-09 - Low & Moderate Incm HousingV.1-E
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: DETERMINATION THAT PLANNING AND ADMINISTRATIVE
COSTS INCURRED DURING THE 2007-2008 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: JANUARY 8, 2009
Recommendation:
By Minute Motion, that
1) The Agency Board determines that planning and general
administrative expenses associated with the development,
improvement, and preservation of low and moderate income housing
and paid for with moneys in the housing fund for Fiscal Year 2007-
2008 were necessary for such production, improvement, and
preservation; and were not disproportionate to the rest of the
expenditures of the Agency for the production, improvement, and/or
preservation of low and moderate income housing.
2) The Agency Board determines that the planning and general
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 33334.3 legislates that the Agency shall
determine annually that planning and administrative expenses associated with the
development, improvement, and preservation of low and moderate income housing 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 planning and administrative costs should not be disproportionate to the
amount actually spent for the cost of production, improvement, or preservation of low
and moderate -income housing. Eligible costs, which may be paid for with moneys in
the Housing Fund include costs incurred for salaries, wages and related costs of
Agency staff, or for services provided through inter -agency agreements, and
agreements with contractors such as legal and consulting services. All such planning
Staff Report
Housing Production Costs
Page 2 of 2
January 8, 2009
and general administrative costs must be directly related to affordable housing
programs and activities authorized by the Community Redevelopment Law.
The Agency annually incurs such costs because the housing programs, adopted and
budgeted, cannot be implemented without staff and the necessary consultants. In
2007-2008 these costs made up only 4% of total expenditures for low and moderate -
income housing. Over the past few years, such costs have annually amounted to
approximately 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 2007-2008 were
necessary; were not disproportionate to the rest of the expenditures of the Agency; and
that the planning and general administrative expenses incurred were directly related to
the Agency's production, improvement, and/or preservation of low and moderate
income housing.
Submitted by:
Janet M. Moore
Director of Housing
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Approval:
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J McCarthy
CM edevelop nt
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Ceive
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xirector
HOUSING PRODUCTION COSTS 2007-08
Department Head:
eve Yrigo n
Director Redevelopment/Housing
Paul S. Gibson
Director of Finance
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Original on file with City Clerk's Office