HomeMy WebLinkAboutResolution 592 Planning & Admin Cost Incurred FY 2010/2011PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 592 DETERMINING THAT
PLANNING AND ADMINISTRATIVE COSTS INCURRED DURING
THE 2010-2011 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 27, 2011
CONTENTS: Resolution No. 592
Recommendation
Waive further reading and adopt Resolution No. 592, determining that
planning and general administrative expenses paid for with monies in the
housing fund for Fiscal Year 2010-2011 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.
Executive Summary
The Agency must determine annually that the planning and administrative expenses
associated with the development, improvement and preservation of low and moderate
income housing are necessary in order to carry out the requirements of the Health and
Safety Code sections related to low and moderate income housing. For the fiscal year
2010-2011, the cost for the actual administrative costs relative to the actual cost for
production, improvement, and preservation of low and moderate income housing is
approximately seven percent (7%).
Discussion
California Health and Safety Code Section 33334.3 states 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
Staff Report
Housing Production Costs
Page 2 of 2
October 27, 2011
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
2010-2011 these costs at $1,219,338 made up 7 percent of total expenditures for low
and moderate -income housing, which totaled $17,549,104. With the implementation of
the Replacement Reserve Policy for the Agency Owned and Operated apartment
complexes, overall expenditures have increased by 45 percent from $12,113,223 in the
prior year, resulting this year in a decreased distribution to planning and administration
for projects.
Staff is recommending that the Agency Board adopt Resolution No. 592 determining
that the planning and administrative expenses incurred for Fiscal Year 2010-2011 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 Analysis
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.
Submit ed By:
Veronica Tapia, Redevelop ent Accountant
arthy, ACM foVedevelopment
JpfiiV M. Wohlmuth, Executive Director
Department Head:
a ore, Director of Housing
aul S. Gibson, Director of Finance
A*VCLL BY RDA
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RESOLUTION NO. 592
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(e) 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 paid from the Housing Fund in Fiscal Year 2010-
2011 were (a) necessary for the production, improvement, or preservation of low and moderate
income housing, (b) not disproportionate to the other Housing Fund expenditures of the Agency
for the costs of production, improvement or preservation of low and moderate income housing,
and (c) directly related to the Agency's production, improvement, and/or preservation of low and
moderate income housing authorized under Health and Safety Code Section 33334.3(e) and
limited to the cost set forth in Health and Safety Code Section 33334.3 (e)(1). 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 27th day of October 2011, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, Secretary
Jean M. Benson, Chairman
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