BACKGROUND
State of California legislation dissolved all California Redevelopment Agencies in 2012. As part of the dissolution process of the City of Roseville's Redevelopment Agency, the City elected to become the Housing Successor. State law requires the Housing Successor to maintain any funds transferred to it, together with any funds generated from housing assets in a separate Low and Moderate Income Housing Asset Fund and requires the funds to be used in accordance with applicable affordable housing-related provisions of the Community Redevelopment Law. These statutes require the Housing Successor to expend funds for specified administrative and monitoring costs related to ensuring the long-term affordability of deed-restricted affordable units.
Beginning in 2014, Housing Successors were required to produce an annual report of their housing activities, required by SB 341. The annual report, known as the Report of Required Information, is due to the Housing Successor's governing body by December 31st of each year and must include an independent financial audit of the Low and Moderate Income Housing Asset Fund ("Fund"), for the most recent fiscal year. The audit may be separate or included in the host jurisdiction's annual audit. The Report of Required Information must be included as part of the Annual Progress Report for the Housing Element which is reported to the State of California Department of Housing and Community Development and must also be posted on the Housing Successor's website by the end of the calendar year.
The Report of Required Information, per Health and Safety Code 34171.1(f), is mandated to include the following information from the prior year:
1. The amount deposited into the Low and Moderate Income Housing Asset Fund;
2. A statement of the fund balance as of the close of the last fiscal year;
3. A description of expenditures from the fund by category;
4. The statutory value of real property owned by the Housing Successor, the value of loans
and grants receivable, and the sum of these two amounts;
5. A description of any transfers made;
6. A description and status of any project for which the Housing Successor receives or
holds property tax revenue pursuant to the Recognized Obligation Payment Schedule;
7. For interests in real property acquired by the former Redevelopment Agency prior to February 1, 2012, a status update on compliance with Section 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project;
8. A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the Housing Successor on February 1, 2012, of the Housing Successor’s progress in meeting those obligations, and of the Housing Successor’s plans to meet unmet obligations.
9. Reporting on income targeting requirements;
10. The percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former redevelopment agency, and its host jurisdiction within the same time period;
11. The amount of any excess surplus, the amount of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus. The completed Report of Required Information for the City of Roseville Housing Successor Agency is included as Attachment A of Attachment 1; and
12. 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 Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3.
For FY2021-22, the total deposits made into the Housing Successor fund totaled $1,301,704 which is an increase from the preceding year. A total of $270,214 was received as program income from loan payoff proceeds and $588,298 from a loan repayment associated with the dissolution of the Roseville Community Development Corporation (RCDC) which resulted in an increase in total deposits. The total expenditures from the Housing Successor fund equaled $907,641, an increase from the preceding year of $99,383. The increase in expenditures was due to the funding of $600,000 for the Junction Crossing affordable housing development. The ending balance of the Housing Successor fund for FY2021-22 equaled $2,857,407. The fund ended with an excess surplus amount of $1,039,806. The City of Roseville Housing Division is working with developers on several affordable housing projects which may benefit from use of these funds in the future.
Since the audit of Low and Moderate Income Asset Fund (Fund 2841) is included in the City of Roseville’s Annual Comprehensive Financial Report (ACFR), as allowed by SB 341, that information will be provided to the State of California. The City's ACFR for FY2021-22 will be presented to the City Council in early 2023 and will be available on the City’s website at www.roseville.ca.us under Departments & Divisions, Finance, Financial Transparency, or by searching for ACFR.