HomeMy WebLinkAboutIncrease Budget Appropriations for FY 2011-2012 Huntington BCouncil/Agency Meeting Held: _
Deferred/Continued to:
1App ov ❑ oriditionall Approv d ❑ Denied ity Qler'CSigna(je
Council Meeting Date: June 4, 2012 Departm Number: FN 12-012
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SUBMITTED TO: Honorable Housing Authority Members
SUBMITTED BY: Fred A. Wilson, Executive Director
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Increase 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 ABx1 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 decision. Housing Authority
authorization is requested to increase the budget for the Housing Authority to ensure there is
sufficient funding to support the administrative and debt service expenses associated with
the proper winding down of the former Redevelopment Agency's Low Income Housing Fund.
On April 2, 2012, the Housing Authority's Administrative Budget was approved. This action
revises the Housing Authority's budget to also include other operating expenses of the
Housing Authority, in addition to pure administrative costs.
Financial Impact: This action will increase budget appropriations in the Housing Authority
Fund (220) by $2,715,000.
Recommended Action: Motion to:
A) Authorize the Executive Director to increase the Housing Authority Budget for Fiscal Year
2011/12 (Fund 220) by $2,715,500; and,
B) Authorize the Executive Director to transfer balance sheet items from the Low Income
Housing Fund (Fund 306) to the Housing Authority Fund (Fund 220), as necessary.
Alternative Action(s): Do not authorize the Executive Director to revise the Housing
Authority Budget for Fiscal Year 2011/12 and provide alternative direction.
HB -247- Item 15. - 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 6/4/2012 DEPARTMENT ID NUMBER: FN 12-012
Analysis: As part of the California State Supreme Court's ruling upholding ABx1 26, which
eliminated redevelopment agencies, the Low Income Housing Fund must be transferred to
the City's Housing Authority Fund in order to monitor existing projects' affordability, as well
as, any future low-income housing projects with extended contracts or agreements.
The following budget appropriation must be made in the Housing Authority Fund to fund
remaining low-income housing activities in Fiscal Year 2011/12 from the period of February
1, 2012 through September 30, 2012:
Housing Authority Fund (220)
This $2.7 million budget appropriation includes personnel and operating costs which are
necessary for managing the affordability covenants which remain, even though the
Redevelopment Agency is no longer operating. More specifically these funds will partially
support the personnel costs of the Deputy Director of Economic Development, two Economic
Development Project Managers, and an Administrative Secretary, as well as, some operating
expenses and debt -service obligations as itemized on the ROPS approved by the Successor
Agency and the Oversight Board.
In addition, in order to complete the full transfer of the former Low Income Housing
Program's activities, assets and liabilities to the newly established Housing Authority,
authorization is requested to transfer all balance sheet items, as necessary, to the new
Housing Authority Fund (Fund 220).
Environmental Status: N/A
Strategic Plan Goal: Improve the City's Long Term Financial Sustainability
Attachments: None
Item 15. - 2 xB -248-