To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: ANNUAL REVIEW AND APPROVAL OF INVESTMENT POLICY
RECOMMENDATIONS:
ADOPT Resolution No. 5255 to invest HUD and non-HUD funds according to HACCC's Investment Policy.
BACKGROUND:
California Government Code (CGC) Section 53646(a)(2)] requires staff to annually prepare and submit a statement of investment policy, and any changes thereto, to the Board of Commissioners for consideration at a public meeting.
HACCC's Investment Policy was developed following guidelines set forth both by the State and the U.S. Department of Housing and Urban Development (HUD). In general, the State's approach to investing public funds is outlined in CGC Section 53600.5, which reads as follows:
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control.
The majority of HACCC's funds are federal moneys received from HUD. When investing these moneys HACCC must follow both the broad guidelines listed above as required by the State and HUD's more specific requirements set forth in HUD PIH Notice 2002-13. It authorizes housing authorities to invest HUD funds in the following:
? United States Treasury Bills, Notes and Bonds;
? Obligations issued by Agencies or Instrumentalities of the U.S. Government;
? State or Municipal Depository Funds, such as the Local Agency Investment Fund (LAIF) or pooled cash investment funds managed by County treasurers;
? Insured Demand and Savings Deposits, provided that deposits in excess of the insured amounts must be 100% collateralized by federal securities;
? Insured Money Market Deposit Accounts;
? Insured SU...
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