HomeMy WebLinkAboutRes 577 - Planning & Admin Xpnses for L/M Income HousingPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 577 DETERMINING THAT
PLANNING AND ADMINISTRATIVE COSTS INCURRED DURING
THE 2009-2010 FISCAL YEAR ARE NECESSARY FOR THE
PRODUCTION, IMPROVEMENT, AND/OR PRESERVATION OF
LOW AND MODERATE INCOME HOUSING
SUBMITTED BY: Veronica Tapia, Redevelopment Accountant
DATE: October 14, 2010
CONTENTS: Resolution No. 577
Recommendation
Waive further reading and adopt:
1) Resolution No. 577 , determining that planning and general
administrative expenses paid for with monies in the housing fund for
Fiscal Year 2009-2010 were necessary; were not disproportionate to
the rest of the expenditures of the Agency; and 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
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
2009-2010 these costs made up 13 percent of total expenditures for low and moderate-
Staff Report
Housing Production Costs
Page 2 of 2
October 14, 2010
income housing. With the majority of the capital improvement projects, such as Carlos
Ortega Villas and Sagecrest Apartments, currently in their development stage, overall
expenditures have once again decreased by 29 percent, resulting this year in an
elevated distribution to planning and administration for projects. Nevertheless, prior
years' planning and administrative expenses compare at an average 11 percent.
Staff is recommending that the Agency Board adopt Resolution No. 577 determining
that the planning and administrative expenses incurred for Fiscal Year 2009-2010 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.
Fiscal Analvsis
The costs associated with the planning and general administrative expenses have been
budgeted and paid from the Housing Set -Aside Fund. Therefore, there is no impact to
the General Fund.
Sub i d By:
Veronica Tapia, Redeveloplment Accountant
n McCarthy,J 2eM for Redevelopment
John/Ky Wohlmuth, Executive Director
Department Head:
Ja et oore, Director of Housing
Paul S. Gibson, Director of Finance
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VERIFIED BY
Original on file with City Clerk•f-Office
Wrda\Veronica Tapia\Word Files\Staff Reports\HOUSING PRODUCTION COSTS 2009-10.doc
RESOLUTION NO. 577
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY,
PALM DESERT, CALIFORNIA, DETERMINING THAT PLANNING AND
ADMINISTRATIVE EXPENSES INCLUDED IN THE REDEVELOPMENT
AGENCY'S LOW AND MODERATE INCOME HOUSING FUND ARE
NECESSARY FOR THE PRODUCTION, IMPROVEMENT, AND
PRESERVATION OF LOW AND MODERATE INCOME HOUSING
WHEREAS, California Community Redevelopment Law requires a Redevelopment
Agency's Low and Moderate Income Housing Fund be used to the maximum extent possible to
defray the costs of production, improvement, and preservation of low and moderate income
housing;
WHEREAS, a portion of an Agency's planning and general administrative costs
associated with expenditures from the Low and Moderate Income Housing Fund (Housing
Fund) may be charged to the Housing Fund as specified in Section 33334.3(d) of California
Community Redevelopment Law;
WHEREAS, the Palm Desert Redevelopment Agency's planning and administrative
costs represent a reasonable level of expenditures for planning and administrative costs, and
are necessary to administer and account for the Agency's affordable housing program as set
forth in the Agency's five year Implementation Plan;
NOW, THEREFORE, BE IT RESOLVED that the Agency hereby finds and determines
that the planning and administrative expenses in Fiscal Year 2009-2010 were (a) necessary, (b)
not disproportionate to the other expenditures of the Agency, (c) directly related to the Agency's
production, improvement, and/or preservation of low and moderate income housing. The
foregoing findings and determinations are made in compliance with, and in furtherance of, the
requirements of Health and Safety Code Section 33334.3(d).
PASSED, APPROVED AND ADOPTED, at the regular meeting of the Palm Desert
Redevelopment Agency held on this day of 2010, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, Secretary
Cindy Finerty, Chairman
G Vda\Veronica Tapia\Word Files\Staff Reports\2009-10 Housing Production Cost Resolution.doc