HomeMy WebLinkAboutRESOLUTION 2024-019 N.C.S. 03/11/2024Resolution No. 2024-019 N.C.S. Page 1
Resolution No. 2024-019 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA ADOPTING THE JULY 1,
2021 – JUNE 30, 2022, ANNUAL HOUSING SUCCESSOR AGENCY REPORT PURSUANT TO
HEALTH AND SAFETY CODE §34176.1
WHEREAS, the City of Petaluma (City) established the Petaluma Community Development Commission
Housing Successor Agency (Successor Agency) to assume all rights and obligations, and wind down the
operations of, the former Petaluma Community Development Commission (PCDC), by Resolution No. 2012-03;
and
WHEREAS, the City Council established the Successor Agency as an independent public entity pursuant to
Health and Safety Code Section 34173(g), on August 6, 2012, by adoption of Resolution No. 2012-118 N.C.S.;
and
WHEREAS, the liability of the Successor Agency is limited pursuant to Health and Safety Code Section
34173(e) and other applicable law; and
WHEREAS, the Successor Agency has completed the Annual Housing Successor Agency Report for the
period July 1, 2022 through June 30, 2023 (“Report”), in accordance with Health and Safety Code Section 34176.1
to address particular provisions and functions relating to former redevelopment agencies and housing successor
entities; and
WHEREAS, the Report is due to be submitted to the State Housing and Community Development
Department (HCD) as an attachment to the Housing Element Annual Progress Report and due to the Governor’s
Office of Planning and Research (OPR) by April 1, 2024; and
WHEREAS, in preparing and submitting the Report, the Successor Agency intends to comply with all
applicable posting and notification requirements, including posting the Report on the Successor Agency’s website
and providing a copy thereof to HCD and OPR; and
WHEREAS, the Oversight Board for the Successor Agency must review and approve the Report prior to its
submission; and
WHEREAS, the Report, a copy of which is attached to this resolution as Exhibit A, and made part hereof,
has been presented to the Successor Agency; and
WHEREAS, the Successor Agency has had an opportunity to review the contents thereof, and the Executive
Director recommends approval of the same, subject to the contingencies and reservation of rights set forth in this
Resolution; and
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Resolution No. 2024-019 N.C.S. Page 2
WHEREAS, the Successor Agency reserves the right to challenge the legality of Assembly Bills 26 and 1484
and/or any implementing regulations, and to rescind its acceptance of Successor Agency rights and obligations,
and reserves any and all rights concerning Assembly Bill 26 and AB 1484 pursuant to applicable law; and
WHEREAS, in approving the Report, the Successor Agency does not intend to waive, nor shall the Successor
Agency be deemed to have waived, any rights the Successor Agency may have pursuant to or in connection with
any obligation, including without limitation, the right to modify, amend, terminate, or challenge any obligation
listed in the Report; and
WHEREAS, preparation and approval of the Report is exempt from the requirements of the California
Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that preparation and
approval of the Report does not meet CEQA's definition of a “project,” because the action does not have the
potential for resulting either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment, and because preparation and approval of the report constitutes organizational
or administrative activities of governments that will not result in direct or indirect physical changes in the
environment; and
WHEREAS, even if preparation and approval of the Report is deemed a “project” under CEQA, the action
would be categorically exempt from environmental review per CEQA Guidelines section 15306, which provides
that information collection activities that do not result in a serious or major disturbance to an environmental
resource are exempt from the provisions of CEQA.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows:
1. The recitals set forth above are true and correct and are incorporated into this resolution as findings of the Successor Agency.
2. Preparation and approval of the Report is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that preparation and approval of the Report does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because preparation and approval of the Report constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Even if preparation and approval of the Report is deemed a “project” under CEQA, the action would be categorically exempt from environmental review per CEQA Guidelines section 15306, which provides that information collection activities that do not result in a serious or major disturbance to an environmental resource are exempt from the provisions of CEQA.
3. The Annual Housing Successor Agency Report for July 1, 2022 – June 30, 2023 attached hereto as Exhibit A, which has been prepared pursuant to Health and Safety Code section 34176 (l), is approved, subject to all reservations of rights and contingencies set forth above.
4. The Executive Director or her designee is hereby authorized and directed to take all actions necessary to implement this Resolution, including without limitation, by submitting the Annual Housing Successor Agency Report to the State Department of Housing and Community Development as an attachment to the Housing Element Annual Progress Report, and to the Governor’s Office of Planning and Research;
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and by the posting of this Resolution and the Annual Housing Successor Agency Report on the Successor Agency’s website.
5. If any provision, sentence, clause, section, or part of this resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remainder.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 11th day of March
2024, by the following vote:
Approved as to
form:
City Attorney
AYES: McDonnell, Barnacle, Cader Thompson, Healy, Nau, Pocekay, Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: City Clerk Mayor
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Resolution No. 2024-019 N.C.S. Page 4
EXHIBIT A
Annual Housing Successor Agency Report
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Annual Housing Successor Agency Report
Low- and Moderate-Income Housing Asset Fund Fiscal Year 2022-2023
Pursuant to California Health and Safety Code Section 34176 for the City of Petaluma Senate Bill 341 (SB 341) became effective on January 1, 2014, requiring each housing successor agency that assumed the housing functions of a former redevelopment agency (RDA) to post a report on its website containing information regarding the low- and moderate-income
housing asset funds of the former RDA (Funds) for the previous fiscal year. The Petaluma Community Development Successor Agency, as the housing successor, is required to prepare and post the report. In addition, the Successor Agency is required to conduct and provide an independent financial audit of the Funds within six months of the end of the fiscal year. The Audit may be included as part of the City's independent financial audit.
The City of Petaluma established the Petaluma Community Development Successor Agency to assume the housing functions and wind down the operations of the former Petaluma Community Development Commission (PCDC) on January 23, 2012. As a result, the low- and moderate- income housing funds and funds generated by the former PCDC housing assets were transferred
to the Successor Agency.
To ensure that the monies in the Fund are expended in accordance with the law, Section 34176.l(f)
of the California Health and Safety Code (part of the Dissolution Law) requires an independent
financial audit of the Funds within six months of the end of the fiscal year. The independent audit of the Successor Agency Funds is included as part of the Annual Comprehensive Financial Report (ACFR) issued by Badawi and Associates on December 30, 2023, and is on the City's website at https://cityofpetaluma.org/financial-reports/.
The Fiscal Year 22/23 Annual Successor Agency Funds report is based upon information
prepared by Housing Successor staff and information within the independent financial audit of the Low- and Moderate- Income Housing Asset Fund (LMIHAF). This report conforms with and is organized into Sections I through XIII, inclusive pursuant to Section 34176.1(f) of the Dissolution Law.
I. Amounts Received and Deposited Pursuant to Section 34191.4(b)(3)(A): This Section provides the total amount of funds paid into the City and the amount deposited into the LMIHAF allocable to 20% of the repayments on reinstalled City/Agency loans pursuant to Health and Safety Code Section 34191.4. The former redevelopment agency and City did not
enter any loans that are to be repaid.
II. Amount Deposited into LMIHAF A total of $450,494 was deposited into the LMIHAF during the 2022/2023 Fiscal Year. Of that total, $449,145 were funds transferred from other City Housing funds to support the administrative costs of the Housing Division. Of the total funds deposited into the LMIHAF, a
total of $0 was held for items listed on the Recognized Obligation Payment Schedules (ROPS).
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III. Fiscal Year End Balance of LMIHAF At the close of the Fiscal Year, the balance in the LMIHAF was $23,918,524 of which $0 was
being held for items listed on the ROPS.
IV. Description of Expenditures from LMIHAF
The following is a description of expenditures from the LMIHAF by category
Fiscal Year 2022-2023
Monitoring and Administrative Expenditures $241,852
Homeless Prevention and Rapid Re-Housing Services $ 136,555
Housing Development Expenditure $119,592
Total LMIHAF Expenditures $497,999
The Housing Successor is allowed to spend up to the greater of $200,000 or 5% of the value
of the Housing Assets Portfolio (defined in Health and Safety Code Section 34176(e)), which totals $1,358,634.15 on Monitoring and Administration Expenditures. Therefore, the total expenditure of $241,852 for fiscal year 2022-2023 is consistent with regulations. I. Statutory Value of Assets Owned by Housing Successor
Under the Dissolution Law and for purposes of this Report, the "statutory value of real
property" means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance, the value of the properties transferred to the Housing Successor pursuant to Section3418l(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of
loans receivable is included in these reported assets held in the LMIHAF.
The following is the statutory value of assets owned by the Housing Successor in fiscal year 2022-2023.
Fiscal Year 2022-2023
Statutory Value of Real Property Owned by Housing Successor $ 3,210,058
Value of Notes Receivable $23,962,625
Total Value of Housing Assets $27,172,683
II. Description of Transfers
This section describes transfers, if any, to another housing successor agency made in previous fiscal year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.
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III. Project Descriptions
This section describes any project for which the Housing Successor receives or holds property tax
revenue pursuant to the ROPS and the status of that project. The Housing Successor did not
receive or hold any property tax revenue pursuant to the ROPS during the Fiscal Year.
I. Status of Compliance with Health and Safety Code Section 33334.16 This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former PCDC prior to February 1, 20121. For interests in real property acquired on or after February 1, 2012, this section provides a status update on the project.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance (DOF) approved the property as a housing asset in the LMIHAF. For real property acquired by the former PCDC that is not being held by the
Housing Successor in the LMIHAF, the Successor Agency must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset. The following provides a status update on the real property housing asset(s) that were acquired
prior to February 1, 2012, and compliance with the five-year period:
Property Address: 951 Petaluma Boulevard South
Date Acquired: February 2011
DOF Transfer Approved: August 29, 2012 Deadline to Initiate Activity: August 29, 2017 Status of Activity: On June 1, 2017 the Petaluma City Council directed staff to work with PEP Housing on their proposed senior/veteran affordable project. The Petaluma
Planning Commission approved the project in August
2018. Title to the property has been transferred to PEP Housing, and the project is under construction with a projected completion in fall of 2021.
No properties have been acquired by the Housing Successor after February 1, 2012.
Property Address: Industrial Drive Auto Center - Assessor Parcel Number 150-020-036, Date Acquired: 12-12-1998
DOF Transfer Approved: January 4, 2021 Deadline to Initiate Activity: August 29, 2017 Status of Activity: The Petaluma Successor Agency is required to sell a 2.6-acre parcel located at Industrial Drive and Auto Center Drive as part of the dissolution of the former Petaluma
Community Development Commission. The parcel is part of Auto Plaza Planned Unit District
which allows new and used auto sales.
1 February 1, 2012 is the date the all redevelopment agencies dissolved.
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The property was listed for sale at $1,160,000 based on equivalent properties zoned for auto sales
that had recently sold in and around the bay area as supported by an appraisal dated June 2016. The proceeds from the sale of this property will be distributed to the affected taxing agencies. An offer was submitted and approved in November, with a purchase price of $575,000. The buyer owns the local Nissan dealership and will use the property for additional inventory storage for the current
Nissan dealership. The sale of the property provided approximately $80,000 in additional revenue
to the City of Petaluma which represents the City’s share of any proceeds received by the County for assets sold because of the dissolved former redevelopment agency.
II. Description of Outstanding Obligations Pursuant to Section 33413 This section requires compliance with Section 33413 if there were any outstanding inclusionary and replacement housing obligations prior to dissolution of the former redevelopment agency and description of how the Successor Agency plans to meet unmet obligations, if any. According to
the 2007-2012 Implementation Plan for the former PCDC, no Section 33413(a) replacement
housing or inclusionary/production housing obligations were transferred to the Successor Agency. The former PCDC’s 2007-2012 Implementation Plan is posted on the City's website. III. Extremely Low-Income Test
Section 34176.1(a)(3)(B) requires that the Successor Agency must require at least 50% of the
LMIHAF to be expended for development of rental housing affordable to and occupied by
households earning 30% of less of the Average Median Income (AMI). If the Successor Agency fails to comply with the Extremely Low Income requirement in any five-year period, then the Successor Agency must ensure that at least 50% of the funds remaining in the LMIHAF are expended in each fiscal year following the latest fiscal year on households earning 30% or less of the AMI until the Successor Agency demonstrates compliance with the Extremely-Low Income
requirement. The agency is in compliance.
IV. Senior Housing Test Pursuant to Health and Safety Code Section 34176.1(b), the Successor Agency is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Successor Agency, the former PCDC and/or the City within the previous 10 years in
relation to the aggregate number of units of deed-restricted rental housing assisted by the
Successor Agency, the former PCDC, and/or the City within the same time period. If this percentage exceeds 50%, then the Successor Agency cannot expend future funds in the LMIHAF to assist additional senior housing units until the Successor Agency or the City provides assistance and construction has commenced on a number of restricted rental units that
is equal to 50% of the total amount of deed- restricted rental units.
The following summarizes the number of deed-restricted rental housing units produced by only the former PCDC and the Successor Agency over the past 10 years:
Project Name Year Built Senior Units Non-Senior Units Total Units
Logan Place Apartments 2013 66 66
Kellgren Senior Apartments 2014 50 50
Total Units 50 66 116
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V. This data shows that for the 10-year period from July 1, 2013, to June 30, 2023 that 50 units of assisted senior rental units were constructed and 66 units of assisted non-senior rental units were constructed. Therefore, the number of assisted non-senior rental units was 56% of the total number of assisted rental units. Therefore, the data shows that the senior housing test is met.
VI. Excess Surplus Test
This section provides the amount of excess surplus in the LMIHAF and if any, the length of time that the Successor Agency has had excess surplus, and the Successor Agency's plan for eliminating the excess surplus. Excess Surplus is defined in Section 34176.1(d) of the Dissolution Law as an unencumbered amount in the account that exceeds the greater of one
million dollars ($1,000,000) or the aggregate amount deposited into the account during the
Successor Agency's preceding four fiscal years, whichever is greater.
Based on the calculation above, the LMIHAF does not have a Surplus Funding balance as
of July 1, 2018.
VII. HOMEOWNERSHIP
The Housing Successor is to provide 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 LMIHAF pursuant to Section 33334.3(f). The city does not have any inventory for the
Housing Successor Agency.
Year Amount
Fiscal Year 2014-2015 $234,191
Fiscal Year 2015-2016 $88,552
Fiscal Year 2016-2017 $153,782
Fiscal Year 2017- <$1,863>>
Total Deposits $869,191
Greater of $1,000,000 or Previous Four Fiscal Year's Deposits $1,000,000 Available Unencumbered Amount in LMIHAF @ 7/1/18 $0
Computed Excess Surplus NONE
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