To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: RECEIVE the Housing Successor Annual Report for fiscal year 2023-24, as recommended by the Conservation and Development Director. (No fiscal impact)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RECEIVE the Housing Successor Annual Report for FY 2023-24, and DIRECT staff to file the report with the California Department of Housing and Community Development and post the report on the County website.
FISCAL IMPACT:
There is no impact to the General Fund regarding receiving and filing this annual report.
BACKGROUND:
The County is the housing successor to the former Contra Costa County Redevelopment Agency (“Redevelopment Agency”), dissolved on February 1, 2012. Each housing successor is required to prepare an annual report on how it meets the requirements imposed by Health and Safety Code Section 34176.1.
The annual report is required to contain the following: (1) a summary of housing successor duties; (2) the balance of the Low- and Moderate-Income Housing Asset Fund (“Housing Asset Fund”); (3) and inventory of properties held in the Housing Asset Fund; and (4) reports on performance thus far in meeting the income and age proportionality requirements of Health and Safety Code Section 34176.1.
The report is due to the California Department of Housing and Community Development by April 1st each year and must be posted on the County’s website. This report brings the Housing Successor into compliance with reporting requirements. The report for Fiscal Year 2023-24 is being presented to the Board of Supervisors for its reference.
The County’s progress on major requirements is summarized below. The balance of the Housing Asset Fund as of June 30, 2024, was approximately $8.4 million, of which $6.3 million is bond proceeds issued prior to dissolution for affordable housing purposes. The Housing Successor received $401,044 in revenue during 2023-24.
As the Housing Successor, the County owned 61 parcels with a statutory value of $6.75 million as of June 30, 2024. Forty-six of the 61 parcels are currently encumbered by development agreements with an expected 2024 disposition. The amount the Housing Successor spent for housing monitoring and administrative costs is well below the current limit as required by Health and Safety Code 34176.1(a)(1). Allowance of administrative expenses for fiscal year 2023-24 were limited to $485,325. Table 1 of the report shows actual expenditures and the maximum allowable for each fiscal year.
Non-administrative expenditures from the Housing Asset Fund were focused on expenditures related to Orbisonia Heights and Rodeo Senior Housing Projects. A Master Development Agreement and Disposition and Development Agreement for Orbisonia Heights and Rodeo Senior have been approved. The most recent Noticed of Availability of Surplus Land was issued February 2, 2025. A prior Notice of Availability of Surplus Land was issued on November 14, 2023, and April 19, 2022.
Pursuant to Health and Safety Code Section 33334.16, activities to develop properties acquired by the Former Redevelopment Agency for affordable housing must be initiated within five years from the date of acquisition; otherwise, the properties must be sold and the proceeds returned to the Successor Agency's Low-and Moderate-Income Housing Asset Fund. The deadline may be extended only once by an additional five-year period if the Board of Supervisors, by resolution, affirms its intent that the properties be used for the development of affordable housing. Since the dissolution of redevelopment in California, Section 34176.1 (e) of the Health and Safety Code establishes the commencement of the initial five-year timeline of Health and Safety Code Section 33334.16 for various assets owned by the Housing Successor as the date of the Final Decision by the California Department of Finance (DOF), which that date was February 6, 2013. The deadline was extended by resolution to February 6, 2023. With the issuance of the Notice of Availability of Surplus Lands, the commencement of development activities has occurred.
CONSEQUENCE OF NEGATIVE ACTION:
Should the Board elect not to approve the recommendation, the County will be out of compliance with the requirements of Health and Safety Code Section 34176.1.