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HomeMy WebLinkAboutHousing Authority - Fiscal Year 2011-2012 Budget AppropriatiCouncil/Agency Meeting Held: Deferred/Continued to: App oved ❑ ditional Approv d ❑ Denied Ci le s Sig ure T Council Meeting Date: April 2, 2012 Departmen ID Number: FN 12-006 CITY OF HUNTINGTON BEACH REQUEST FOR HOUSING AUTHORITY ACTION SUBMITTED TO: Honorable Housing Authority Board Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Lori Ann Farrell, Director of Finance SUBJECT: Establish Budget Appropriations for the Huntington Beach Housing Authority for Fiscal Year 2011/12 which reflect the dissolution of the Huntington Beach Redevelopment Agency Statement of Issue: On December 29, 2011, the California State Supreme Court announced its ruling upholding AB1X 26 dissolving redevelopment agencies statewide. Based upon the Court's ruling, the Huntington Beach Redevelopment Agency has been dissolved as of February 1, 2012, consistent with the Court's decisions. The Housing Authority Board's authorization is requested to establish the Housing Authority Budget, which will provide project management and oversight of the remaining 20% housing set -aside funds, and the City's Inclusionary Housing Program. Financial Impact: This action will create budget appropriations of $781,400 in the Housing Authority Special Revenue Fund (220) to administer the functions of the Housing Authority from February 1, 2012 through September 30, 2012. This action will also reduce appropriations in the former Redevelopment Agency Budget accordingly. Housing Authority Recommended Action: Motion to: Authorize the City Manager to establish a Housing Authority Budget for Fiscal Year 2011/12 based on the approved Enforceable Obligation Payment Schedule (EOPS), and any other items as deemed necessary. Alternative Action(s): Do not authorize the City Manager to establish a Housing Authority Budget for Fiscal Year 2011/12 and provide alternative direction. Item 7. - 1 HB -70- REQUEST FOR HOUSING AUTHORITY ACTION MEETING DATE: 4/2/2012 DEPARTMENT ID NUMBER: FN 12-006 Analysis: As part of the California State Supreme Court's ruling upholding AB1X 26, the Huntington Beach Redevelopment Agency approved the Enforceable Obligation Payment Schedule (EOPS) in January 2012. This EOPS will be further amended on April 2, 2012, and is a listing of all legally binding and enforceable agreements or contracts of the former Redevelopment Agency, newly created Successor Agency and of the Housing Authority. In order for the Housing Authority to effectively operate, budget appropriations must be approved in the Housing Authority Special Revenue Fund (220). Budget appropriations will be created to fund all operating costs which are necessary for the administration of the 20% housing set -aside. The most recently approved Enforceable Obligation Payment schedule will serve as the preliminary basis for the Housing Authority's budget, for the period February 1, 2012 through September 30, 2012. The Housing Authority budget includes personnel of $288,400: reflecting a portion of the Deputy Director, Project Manager, Administrative Aide, and Administrative Secretary. In addition to personnel, $493,000 includes supplies and professional services. The Housing Authority's professional services include: - Required Federal on -site/ physical monitoring of all housing projects - Required Federal and State financial annual monitoring including review of residual receipts - Legal review assistance of the housing covenants -Required compliance with Federal Single Audit rules and regulations as stipulated in Federal Office of Management and Budget (OMB) Circular A-133. The Housing Authority will be responsible for the on going monitoring of over thirty (30) housing projects, including residual receipts. The Housing Authority also oversees the City's Inclusionary Housing Program and Ocean View Estates. Environmental Status: N/A Strategic Plan Goal: Improve the City's long term fiscal sustainability. Attachments: None xB -7 1- Item 7. - 2