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Home My WebLink About11-18-2014 C5 Affordable Housing Fund RequestCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Derek Johnson, Community Development Director Prepared By: Tyler Corey, Housing Programs Manager SUBJECT: AFFORDABLE HOUSING FUND AWARD FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND. RECOMMENDATION 1. Adopt a resolution approving an Affordable Housing Fund award in the amount of $30,000 for the San Luis Obispo County Housing Trust Fund. 2. Make a determination pursuant to Section 15061(b)(3) General Rule of the CEQA Guidelines that an Affordable Housing Fund award will not have a significant effect on the environment. 3. Authorize the Finance Manager to appropriate $30,000 from the unallocated Affordable Housing Fund balance to fund the award. DISCUSSION Background The Affordable Housing Fund (AHF) was established through the adoption of the City’s Inclusionary Housing Ordinance. The ordinance allows for a fee to be paid “in-lieu” of the provision of required affordable housing units and the funds are placed in the AHF. The City then uses those fees in a variety of ways to make more affordable housing available in the community. These funds are awarded by the Council based on previously adopted criteria (Attachment 1, Council Resolution No. 9263 (2001 Series)). Requests for AHF support are evaluated by staff and forwarded to the City Council for consideration, either concurrent with the annual Community Development Block Grant process, or as stand-alone proposals such as the current request. Overview of Current AHF Request The San Luis Obispo County Housing Trust Fund (HTF) has requested $30,000 to support operating expenses for 2014 (Attachment 2). The HTF provides three key services that benefit affordable housing in the City of San Luis Obispo: 1) financing, 2) technical assistance, and 3) advocacy. The HTF provides funding for affordable housing projects, including property acquisition, construction, and refinancing. HTF staff also serves as a resource to City staff working with developers on affordable housing projects. The HTF’s Executive Director, Jerry Rioux, maintains a high profile in the community as an advocate for affordable housing projects, and serves on the Workforce Housing Coalition Board. Recent HTF Projects Since 2005, the HTF has provided over $13 million in financing for affordable housing projects county-wide, contributing to the creation or preservation of 432 affordable dwelling units. More than $2.3 million was loaned for projects in the City of San Luis Obispo, contributing to the creation or preservation of 112 affordable dwelling units. The HTF was instrumental in 11/18/2014 C5 - 1 Affordable Housing Fund Award (SLO County Housing Trust Fund) Page 2 facilitating the property acquisition component of the Village at Broad Street project, a 42-unit affordable housing project developed by ROEM Corporation, with a $1.3 million loan. The HTF has also lent $350,000 to HASLO to refinance the Marvin Gardens Apartments on Laurel Lane, helping to preserve that 24-unit affordable project. In August 2011, the HTF loaned $360,000 to the Tri-Counties Community Housing Corporation to acquire three extremely-low income affordable housing units occupied by individuals with developmental disabilities on Hathway. The property was in foreclosure because the owner, Sojourn Services, had gone bankrupt. In June 2012, the HTF committed a $430,000 loan to the South Street Family Apartments, a 43- unit affordable rental apartment project proposed by ROEM Development Corporation. This funding commitment was designed specifically to help the project be more competitive for tax credits – a critical funding piece of this project’s feasibility. In August 2014, the HTF committed $1.1 million to help HASLO finance the acquisition of both Marvin Gardens and the Ironbark Apartments. The AHF has been used to help support the operating costs of the HTF over the past 11 years, for a total of $270,000. In support of the current request, the HTF’s Executive Director has submitted supporting documentation regarding its budget, financial statements and sources of lending capital (Attachment 3). Award Criteria In making its recommendations to the City Council for how AHF funds should be allocated, staff considers Council adopted criteria including eligibility, need, suitability, timing, financial effectiveness and readiness (Attachment 1, Council Resolution No. 9263 (2001 Series)). The following is an analysis of the HTF request relative to the criteria. Eligibility: Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: HTF improves the ability and feasibility of affordable housing construction within the City. HTF indirectly supports creation of affordable housing units by providing financing and technical assistance to City staff and developers of affordable housing projects in the City, and HTF advocates for affordable housing projects, consistent with City policy. The proposed award is consistent with the General Plan (Housing Element Programs 2.12 and 6.13) and past practice. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: The City’s Regional Housing Needs Allocation (RHNA) for the five-year period from January 2014 through June 2019 includes 142 units in the extremely-low income (<30% of AMI) category, 143 in the very-low income (30-50% of AMI) category, 179 units in the low income (51-80% of AMI) category and 202 in the moderate income (81-120% of AMI) category. The HTF contributes to affordable housing at all of these income ranges and will assist the City in meeting State housing targets. C5 - 2 Affordable Housing Fund Award (SLO County Housing Trust Fund) Page 3 Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: This criterion is evaluated when HTF-funded affordable housing projects are proposed in the City and for any project that receives an AHF grant. Timing: The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: Funding should be provided now so that the HTF has adequate funds to cover operating expenditures during the 2014 fiscal year and can continue to assist affordable housing project construction. The City’s citizens would be better served with HTF’s assistance now rather than later. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: The City’s AHF award would leverage significant additional funding from other sources, including Federal, State and local loan and grant programs. In addition, contributors to the HTF have provided nearly $7 million in operating support and equity for new loans since 2003. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: The HTF has been contributing to the cause of affordable housing in San Luis Obispo County since 2003 and the proposed AHF award will help the HTF fulfill their mission and is supported by the General Plan. Status of the Affordable Housing Fund A status report on the AHF is attached (Attachment 4). The report indicates that if the proposed allocation is approved by Council, the fund will retain $2,318,500 to allocate to future affordable housing projects. Staff is recommending funding of the current request and the attached resolution (Attachment 5) recommends funding for a total of $30,000. The proposed funding amounts to approximately 1% of the fund balance currently available to be allocated to new projects. Based on the current rate of building activity, approximately one month of permit activity will generate fees to restore the requested amount to the AHF. Current Requests/Proposed Allocations AHF Available Balance $ 2,348,500 SLO County Housing Trust Fund $30,000 Net Available for New Programs if Current Request Approved $ 2,318,500 C5 - 3 Affordable Housing Fund Award (SLO County Housing Trust Fund) Page 4 ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA Guidelines. The project is an AHF award to support the operations of the HTF. Each project financed by the HTF in the City will be subject to CEQA at the time the project is filed. It can be seen with certainty that the proposed action to award funding to the HTF for operating expenses will have no significant effect on the environment. FISCAL IMPACT The recommended allocation would be paid out of the AHF, which consists of in-lieu fees collected under the City’s Inclusionary Housing Ordinance. The fund may only be used for projects or purposes that create or support affordable housing within the City of San Luis Obispo. Based on prior expenditures and pending commitments, there will be a balance of $2,318,500 remaining in the AHF after this award. The project award will have no impact on the General Fund. ALTERNATIVES 1. Do not authorize an AHF award. This action is not recommended because the award appears to meet the criteria for AHF assistance and is consistent with the Housing Element of the General Plan. 2. Approve an AHF award for a different amount. The City Council can approve an award for a different amount than the recommendation. 3. Continue consideration of the proposed award. The City Council can direct staff to return with additional information regarding the funding request so that a final decision on the award amount can be made. ATTACHMENT 1. Council Resolution No. 9263 (2001 Series) 2. HTF funding request 3. HTF budget, financial statements and sources of lending capital 4. Affordable Housing Fund Status Report 5. Draft Council Resolution T:\Council Agenda Reports\2014\2014-11-18\Affordable Housing Fund Request (Johnson-Corey)\C6 - Affordable Housing Fund Request (HTF).docx C5 - 4 Attachment 1 C5 - 5 Attachment 1 C5 - 6 Attachment 1 C5 - 7 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org October 8, 2014 Delivered via email to tcorey@slocity.org Tyler Corey Housing Programs Manager City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Dear Mr. Corey: Thank you again for supporting the San Luis Obispo County Housing Trust Fund (HTF) and participating on our loan committee. The City of San Luis Obispo has been one of the HTF’s strongest and most consistent supporters. I am writing to request that the City award an additional $30,000 in housing in-lieu funds to the HTF. Our request represents less than 10% of our adopted operating budget for calendar year 2014.1 The requested funds will ensure our continued operations and enable us to provide more financing and technical assistance for affordable housing in the City of San Luis Obispo. Your award will also be matched dollar for dollar by a grant we expect to receive from the CDFI Fund of the US Treasury. Our budget is divided into two basic funds, our operating or general fund and our loan funds. While we currently have almost $3.0 million available to finance new housing projects in our loan funds, these funds cannot be used for our operating costs. Our adopted operating budget for 2014 is $320,000. We budgeted 25% of our income from local government grants and 6.3% from private sector grants. The balance or 68.7% is from the interest and fee earnings of our loan fund. Financing Affordable Housing Projects The HTF was created to provide short-term or gap financing for affordable housing projects that include units for very low, low and/or moderate income households. We recently began provid- ing some longer term loans as well. We currently have a total of $9 million in our loan funds and lines of credit. This includes $4 million in private investments and commitments and $5 million in grants and contributions. Over the past six years, we have received $3.3 million in grants from the CDFI Fund of the US Treasury and $1.5 million from the Local Housing Trust Fund Matching Grant Program (LHTF) of the California Department of Housing and Community Development. 1 The County contributed $40,161 from its general fund to our operating budget this year. Attachment 2 C5 - 8 Tyler Corey October 8, 2014 Page 2 of 3 Since 2005, the HTF has provided just over $13 million in financing to create or preserve 423 units of affordable housing throughout the county. More than $2.3 million of our financing was loaned for projects in the City of San Luis Obispo. We also currently have over $1.5 million committed for new loans in the City. In addition, we hope to participate in the financing of CAPSLO’s new homeless center. The Village at Broad Street received one of our largest loans ever – $1.3 million for site acquisi- tion and predevelopment expenses. We loaned $350,000 to refinance a balloon payment on Marvin Gardens and provide HASLO time to restructure the project and buy out the tax credit investor. In August, we committed up to $1.1 million to help HASLO finance the acquisition of both Marvin Gardens and the Iron Bark Apartments. Hopefully, this financing should close by the end of this year. We also made an emergency loan of $360,000 to the Tri-Counties Community Housing Corpora- tion. This loan allowed them to buy three units on Hathway at a foreclosure auction. These units were occupied by individuals with developmental disabilities. The property was in foreclosure because the owner, Sojourn Services, had gone bankrupt. We worked closely with Tri-Counties and your staff to arrange a stable permanent financing package for the project. In April, we closed a $150,000 loan with a 15-year term for the property. We have also committed a $430,000 loan for the South Street Family Apartments. This was a new product that we designed specifically to help projects be more competitive for tax credits. It has a 17 year term, 4% interest rate and very flexible repayment terms. In January, we partici- pated with Century Housing to finance the acquisition of the property by ROEM. Our $430,000 loan will close once the project is occupied. At this time, we have funds available for new loans and hope to finance more projects in the City of San Luis Obispo. Technical Assistance for Affordable Housing Providing technical assistance (TA) to support both individual housing projects, and housing programs and policies is another important activity of the HTF. We have provided, and will continue to provide, TA to HASLO, Habitat for Humanity, Alano Club, Women’s Shelter Program, TMHA, CAPSLO and other nonprofits to increase their ability to provide housing. While these efforts have been county-wide in scope, they should result in more affordable housing in San Luis Obispo over time. We also provide technical assistance to private devel- opers concerning the potential to include affordable housing in future projects. Within the last year, we have provided more extensive TA to the Alano Club. Alano requested a $125,000 loan to rebuild a dilapidated house to provide housing for the clients who are in recov- ery. We concluded that the organization could not really afford to repay a loan. So as part of our TA, we helped them identified potential grant sources. We then took the lead in preparing a suc- cessful CDBG application for the project. At this time, we continue to assist them in complying with the requirements of the funds. Attachment 2 C5 - 9 Tyler Corey October 8, 2014 Page 3 of 3 The HTF also provides technical assistance to local governments. In the past, we have worked with city staff on your affordable housing program, including the guidelines, calculating afforda- ble sales price limits and monitoring units for compliance. We will be happy to provide addi- tional technical assistance in the future. We have scheduled a Public Workshop on our loan program for November 6th, from 3 PM to 5 PM. Developers, nonprofit corporations and local government representatives are invited to attend to learn more about our services. Included Documents Various documents are enclosed with this request, including our board and commission (loan committee) rosters, 2014 budget, August 2014 financial statements, sources of lending capital, and 2013 annual report. Our 2013 audit was provided previously and is available online at www.slochtf.org/files/audit-2013.pdf. Other information is available upon request or online at www.slochtf.org/about-us.htm. I look forward to continue working with you and the City of San Luis Obispo in the future. Sincerely, Gerald L. Rioux Executive Director Enclosures X:\Funding\Government\ SLO\SLO City\SLO 2014 request.doc Attachment 2 C5 - 10 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org Board of Directors The Board of Directors for the San Luis Obispo County Housing Trust Fund has six members. The names, offices and affiliations of the current Directors are: Board Member and Office1 Affiliation Dr. Julian Crocker, Chair San Luis Obispo County Superintendent of Schools Leonard J. Grant, AIA, Vice Chair Architect and Principal, RRM Design Group Clarence Cabreros, Treasurer Retired Banker Marianne Kennedy, Secretary Executive Director, Women’s Shelter Program Dick Willhoit President, Estrella Associates, Inc. (local developer and home builder) Geri LaChance President/CEO, SESLOC Federal Credit Union Affiliations are provided for information only. Rev 12-10-2013 1 Note: All of our directors can be reached through the corporation’s office listed at the bottom of this page. Attachment 3 C5 - 11 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org Housing Trust Fund Commission The Commission serves as the loan committee for the San Luis Obispo County Housing Trust Fund. A majority of the Commissioners are appointed by local governments that provide financial support for the Housing Trust Fund. The current Commissioners, their appointing authorities and positions are: Commissioner Appointing Authority Position/Affiliation David Athey City of Atascadero Deputy Public Works Director Tyler Corey City of San Luis Obispo Housing Programs Manager Al Garcia City of Paso Robles Planning Commissioner Kelly Heffernon City of Arroyo Grande Associate Planner Joe Hoeflich Supportive Housing Consortium Services and Supports Manager, Tri-Counties Regional Center Christine Johnson City of Morro Bay City Council Member Ken Litzinger Housing Trust Fund Board Chief Financial Officer, Housing Authority of the City of San Luis Obispo Karen Campbell-Bright City of Grover Beach Mayor ProTem John Stocksdale City of Pismo Beach Retired Banker Tony Navarro County of San Luis Obispo Planner, Housing & Economic Development Rev 1-7-14 Attachment 3 C5 - 12 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org Detailed Operating Budget – 2014 The detailed operating budget for calendar year 2014 that was adopted by the Board of Directors of the San Luis Obispo County Housing Trust Fund is listed below. This budget excludes grants and contribu- tions that are restricted to our revolving loan fund.1 Since 2009, the majority of our revenues have been restricted loan fund grants and contributions. These have ranged from a low of $372,800 in 2013 to a high of $1,635,885 in 2011.2 Historically, ownership housing has represented about 20% of our activi- ties and budget. The percentage varies from year to year. Revenues Budget Amounts % of Total Government Grants & Contracts $80,000 25.0% Private Grants & Contributions $20,000 6.3% Corporate Earnings Loan Interest Income $200,000 62.5% Loan Fee Income $15,000 4.7% Interest on Deposits $5,000 1.6% Total Income $320,000 100.0% Expenses Budget Amounts % of Total Personnel Expenses Salaries and Wages $146,593 45.8% Payroll Tax / Employee Benefits $37,161 11.6% Professional Services (Legal, Accounting, etc.) $35,500 11.1% Rent & Utilities $16,200 5.1% Office Expenses Insurance $4,000 1.3% Postage & Printing $2,200 0.7% Communications (telephone & internet) $2,000 0.6% Supplies/Office expense $1,000 0.3% Travel Expenses $4,360 1.4% Education & Training $2,000 0.6% Memberships, Dues & Subscriptions $2,400 0.8% Furnishings & Equipment $2,000 0.6% Maintenance & Repairs $200 0.1% Miscellaneous $1,135 0.4% Interest Expenses $47,250 14.8% Operating Reserves $16,000 5.0% Total Expenses $320,000 100.0% 1 Both permanently restricted and temporarily restricted grants and contributions are excluded from our operating budget because these funds cannot be used to pay for operating expenses. Most of our loan fund grants and contributions are temporarily restricted for three to five years. A relatively small amount is permanently restricted. 2 All of our annual audits and IRS 990 forms can be downloaded from www.slochtf.org/about-us.htm. Attachment 3 C5 - 13 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org Sources of Lending Capital The San Luis Obispo County Housing Trust Fund (HTF) is a Community Development Financial Institution (CDFI) that provides financing and technical assistance to increase the supply of affordable housing in our community. We have more than $9 million in revolving loan funds available to finance affordable housing projects. Our loan funds include a combination of private investments and contributions, and government grants. We have $3.95 million in social or community investments from banks,1 foundations, religious commu- nities and Dignity Health, which owns three local hospitals.2 We now have over $5 million in loan fund equity and grant commitments that are dedicated for lending. These include $3.3 million in grants from the US Treasury and a $1.5 million grant from the State of California. Loan Fund Investments Term Amount Rabobank (line of credit) 2.25% for 10 years $1,000,000 Heritage Oaks Bank (line of credit)3 2.25% for 10 years 1,000,000 Dignity Health (two investments) 3% for 5 years 750,000 Rabobank (CDFI tax credit investment)4 0% for 5 years 500,000 Pacific Western Bank (CDFI tax credit investment)5 0% for 5 years 250,000 Erich and Hannah Sachs Foundation 3% for 5 years 200,000 Erich and Hannah Sachs Foundation 2.5% for 3 years 100,000 San Luis Obispo County Community Foundation 3% for 5 years 100,000 Sisters of St. Francis of Philadelphia 3% for 5 years 50,000 Total Loan Fund Investments $3,950,000 Loan Fund Equity (Grants & Donations) Amount CDFI Fund of the US Treasury6 $3,300,000 State of California, Local Housing Trust Fund Matching Grant Program (LHTF)6 1,500,000 California Association of Realtors 125,000 George Moylan Affordable Housing Fund7 $103,224 Create Jobs for USA initiative (Starbucks)8 34,500 Total Loan Fund Equity $5,062,724 Total Lending Capital $9,012,124 Rev 8/26/14 1 The Rabobank and Heritage Oaks Bank long-term lines of credit are drawn down as they are used for loans. 2 Formerly Catholic Healthcare West. 3 Formerly Mission Community Bank. 4 Interest rate is dependent on the receipt of state tax credits. If tax credits are not received, interest rate will be 2.25%. 5 Interest rate is dependent on the receipt of state tax credits. If tax credits are not received, interest rate will be 4%. 6 Awarded but not fully funded. 7 The Moylan Fund was established to honor one of our founding directors. More than 300 individuals, organizations and firms have contributed directly or indirectly to the Moylan Fund. For more info, go to www.slochtf.org/moylan-fund.htm. 8 Administered by the Opportunity Finance Network - www.opportunityfinance.net/financing/default.aspx?id=5736. Attachment 3 C5 - 14 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org Top Contributors Since incorporating February 27, 2003, the San Luis Obispo County Housing Trust Fund (HTF) has received nearly $7 million in grants and contributions to support our operations and revolving loan funds. These grants and contributions came from many different sources, including the US Treasury, State of California, County of San Luis Obispo, every city in the county, the real estate and banking industries, and others in our broad community.1 The following table lists our 20 top contributors and the totals of their support to date.2 Rank Source of Loan Funds Grants 1 CDFI Fund of the US Treasury2, 3 $3,300,000 2 California Department of Housing and Community Development3 1,500,000 3 County of San Luis Obispo 725,619 4 City of San Luis Obispo 270,200 5 California Association of Realtors3 125,000 6 Bank of America 97,500 7 Rabobank4 63,250 8 Union Bank of California 53,150 9 City of Grover Beach2 55,000 10 Community Action Partners (formerly EOC) 50,000 11 City of Atascadero 49,000 12 City of Arroyo Grande 45,000 13 Heritage Oaks Bank4 40,471 14 City of Pismo Beach 37,000 15 Create Jobs for USA initiative (Starbucks)3 34,450 16 City of Paso Robles 32,500 17 Housing Authority of the City of San Luis Obispo (HASLO) 20,000 18 US Bank 17,000 19 San Luis Obispo County Community Foundation 15,200 20 United Way of San Luis Obispo County 11,913 Rev 10-20-14 1 In addition to these grants, we have received over $5 million in private investments in our revolving loan funds, including $1.6 million from Rabobank, $1 million from Heritage Oaks Bank, $750,000 from Dignity Health and $100,000 from the San Luis Obispo County Community Foundation. Bank contributions include contributions from acquired institutions. 2 Includes commitments that have not yet been received. 3 Grants of loan fund capital exclusively. 4 Grants for operating support as well as loan fund capital. Rabobank and Heritage Oaks Bank are also major investors in our revolving loan funds. Attachment 3 C5 - 15 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401  (805) 543-5970  www.slochtf.org 2013 Annual Report The San Luis Obispo County Housing Trust Fund (the “HTF”) is a private nonprofit corporation that was incorporated in 2003. We are a Community Development Financial Institution or CDFI – a mission-driven organization that provides financ- ing for an underserved market.1 Mission & Purpose The HTF’s mission is to increase the supply of affordable housing for very low, low and moderate income households in San Luis Obispo County, including those with special needs. Programs & Services The HTF provides both financing and technical assistance for affordable housing projects that local families, seniors and households with special needs can afford to rent or buy. We also provide technical assistance on local housing programs and policies. In addition, we advocate for afforda- ble housing legislation, programs and projects at the federal, state and local level. Local Housing Needs San Luis Obispo County is consistently one of the least affordable housing markets in California and the nation. The National Association of Home Builders found that this county was the eighth least affordable housing market in the US in the fourth quarter of 2013. The 2010 Census found that 35.8% of the renters in this county had a severe housing cost burden.2 That was a higher incidence of severe housing cost burden than in the Los Angeles, San Francisco and New York City metro areas. A higher percentage of this county’s population was also homeless in 1 Learn more about CDFIs at www.ofn.org. 2 “Severe housing cost burden” means that households paid more than half of their gross incomes for housing. 2013. In 2013, this county had more unsheltered3 homeless than eleven states COMBINED. Revolving Loan Funds The HTF operates revolving loan funds to finance affordable housing projects. These loan funds include a combination of social and community investments plus both public and private grants and contributions. As of December 31, 2013, the amounts in and committed to our revolving loan funds were: Loan Fund Investments Heritage Oaks Bank4 LOC5 $1,000,000 Rabobank LOC 1,000,000 Dignity Health 750,000 Rabobank EQ24 500,000 Erich & Hannah Sachs Foundation 300,000 SLO County Community Foundation 100,000 Religious Communities 75,000 Contributed Loan Funds 0 CDFI Fund of the US Treasury4 $2,800,000 California LHTF Program6 1,500,000 California Association of Realtors 125,000 George Moylan Affordable Housing Fund 102,124 Create Jobs for USA (Starbucks) 34,500 Total Lending Capital $8,286,624 Accomplishments Since 2005, the HTF has closed more than $11.2 million in loans that assisted 332 units of afforda- ble housing. In 2013, we loaned nearly $3 million to assist 103 units. These included two apartment complexes, two single-family subdivisions, a licensed care facility and a Head Start school. 3 Living in vehicles, on the streets and in other places not suitable for human habitation. 4 Formerly Mission Community Bank. 5 LOC means Line of Credit 6 Includes commitments that were not yet received. Attachment 3 C5 - 16 San Luis Obispo County Housing Trust Fund 2013 Annual Report Page 2 of 2 Operating Support The HTF has two sources of operating revenue - earned income and grants. During 2013, our earned income – loan fees and interest – covered 60% of our operating expenses. Grants from local governments covered 31% and grants from banks covered 8%. We also received grants totaling more than $370,000 for our loan fund. Board of Directors The following individuals served on the HTF’s Board of Directors at the end of 2013.7 Dr. Julian D. Crocker, Chair County Superintendent of Schools Lenny Grant, AIA, Vice Chair RRM Design Group Clarence Cabreros, Treasurer retired banker Marianne Kennedy, Secretary Women’s Shelter Program Dick Willhoit, Estrella Associates, Inc. Geri LaChance, SESLOC Federal Credit Union HTF Commission The HTF Commission serves as our loan commit- tee. The following individuals served on the HTF Commission at the end of 2013.5 David Athey, City of Atascadero Karen Bright, City of Grover Beach Tyler Corey, City of San Luis Obispo Al Garcia, City of Paso Robles Kelly Heffernon, City of Arroyo Grande Joe Hoeflich, Supportive Housing Consortium Christine Johnson, City of Morro Bay Ken Litzinger, HASLO John Stocksdale, City of Pismo Beach Morgan Torell, County of San Luis Obispo Staff Jerry Rioux, Executive Director Vivian Krug, Administrative Director 7 Our current Board and Commission members are listed online at www.slochtf.org/our-team.htm. Financial Statements Our audited financial statements for 2012 and 2013 are summarized below. Both audits were prepared by The Crosby Company, CPAs. All of our audits are available at www.slochtf.org/about-us.htm. Statement of Financial Position 12/31/12 12/31/13 Assets Current Assets: Cash & Cash Equivalents $3,485,014$2,099,140 Receivables & Prepaids 5,9646,829 Interest Receivable 4,5277,619 Notes Receivable (Current Portion) 474,997762,030 Total Current Assets $3,970,502$2,875,618 Non-Current Assets: Notes Receivable (Non-Current) 984,1092,550,769 Total Assets $4,954,611$5,426,387 Liabilities Current Liabilities: Payable & Accruals $24,692$26,749 Notes Payable (Current) 025,000 Total Current Liabilities $24,692$51,749 Long-Term Liabilities: Notes Payable (Non-Current) 1,125,0001,200,000 Total Long-Term Liabilities $1,125,000$1,200,000 Total Liabilities $1,149,692$1,251,749 Net Assets Unrestricted8 $830,134$1,327,692 Temporarily Restricted 2,730,0002,590,000 Permanently Restricted 244,146256,946 Total Net Assets $3,804,919$4,174,638 Total Liabilities and Net Assets $4,954,611$5,426,387 Statement of Activity 2012 2013 Revenue Government Grants $652,161$438,161 Private Contributions 61,70633,977 Interest & Loan Fees 132,853154,793 Total Revenue $846,720$626,931 Expenses Program Services $210,919$211,899 Management & General 40,86635,165 Fund Raising 9,47210,148 Total Expenses $261,257$257,212 Increase In Net Assets $585,463$369,719 8 Includes federal grants that became unrestricted at the ends of 2012 and 2013. Attachment 3 C5 - 17 Aug 31, 14 ASSETS Current Assets Checking/Savings 1-Operating Accounts 1,696,175.13 2-Loan Fund Accounts 84.84 Total Checking/Savings 1,696,259.97 Other Current Assets Misc. Receivable - MCSC 197.67 Prepaid Expenses 2,810.00 Prepaid Insurance - D & O 598.22 Prepaid Insurance - Liability 293.10 Prepaid Workers' Comp Ins 578.46 Total Other Current Assets 4,477.45 Total Current Assets 1,700,737.42 Other Assets Interest Receivable 21,325.84 Notes/loans receivables 5,060,340.13 Total Other Assets 5,081,665.97 TOTAL ASSETS 6,782,403.39 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts payable 2,392.75 Total Accounts Payable 2,392.75 Credit Cards Visa -3207 8.61 Visa - 0252 58.77 Total Credit Cards 67.38 Other Current Liabilities Accrued Expenses 450.00 Accrued Interest Payable 5,206.06 Accrued Vacation 11,613.28 Payroll & Payroll Taxes Payable 10,566.07 Total Other Current Liabilities 27,835.41 Total Current Liabilities 30,295.54 Long Term Liabilities NP Dignity Health 500,000.00 NP Dignity Health#2 250,000.00 NP Pacific Western Bank 250,000.00 NP Rabobank Loan 500,000.00 NP Sachs Foundation 200,000.00 NP Sachs Foundation #2 100,000.00 NP Sisters of St. Francis 50,000.00 NP SLOCCF 100,000.00 Total Long Term Liabilities 1,950,000.00 Total Liabilities 1,980,295.54 Equity 3100 · Restricted - Loan Fund 258,046.02 3200 · Temporarily Restricted Funds 3,190,000.00 3300 · Board Designated Accounts 1,344,678.00 3500 · Unrestrict (retained earnings)-618,085.82 Net Income 627,469.65 Total Equity 4,802,107.85 12:01 PM San Luis Obispo County Housing Trust Fund 09/05/14 Balance Sheet Accrual Basis As of August 31, 2014 Page 1 Attachment 3 C5 - 18 Aug 31, 14 TOTAL LIABILITIES & EQUITY 6,782,403.39 12:01 PM San Luis Obispo County Housing Trust Fund 09/05/14 Balance Sheet Accrual Basis As of August 31, 2014 Page 2 Attachment 3 C5 - 19 Au g 1 4 Bu d g e t $ O v e r B u d g e t Ja n - A u g 1 4 YT D B u d g e t $ Over BudgetAnnual Budget Or d i n a r y I n c o m e / E x p e n s e In c o m e Co n t r i b u t e d s u p p o r t 40 1 0 · I n d i v i d u a l C o n t r i b u t i o n s 0. 0 0 50 0 . 0 0 42 1 0 · C o r p o r a t e / b u s i n e s s g r a n t s 0. 0 0 1, 6 6 6 . 6 7 ( 1 , 6 6 6 . 6 7 ) 2 8 , 1 0 0 . 0 0 1 3 , 3 3 3 . 3 2 1 4 , 7 6 6 . 6 8 2 0 , 0 0 0 . 0 0 45 2 0 · F e d e r a l g r a n t s 0. 0 0 60 0 , 0 0 0 . 0 0 45 4 0 · L o c a l g o v e r n m e n t g r a n t s 2, 0 0 0 . 0 0 6, 6 6 6 . 6 7 (4 , 6 6 6 . 6 7 ) 38 , 0 0 0 . 0 0 53 , 3 3 3 . 3 2 (15,333.32)80,000.00 To t a l C o n t r i b u t e d s u p p o r t 2, 0 0 0 . 0 0 8 , 3 3 3 . 3 4 ( 6 , 3 3 3 . 3 4 ) 6 6 6 , 6 0 0 . 0 0 6 6 , 6 6 6 . 6 4 5 9 9 , 9 3 3 . 3 6 1 0 0 , 0 0 0 . 0 0 In t e r e s t o n D e p o s i t s 38 6 . 7 9 4 1 6 . 6 7 ( 2 9 . 8 8 ) 4 , 2 5 9 . 6 2 3 , 3 3 3 . 3 2 9 2 6 . 3 0 5 , 0 0 0 . 0 0 In t e r e s t o n L o a n s Lo a n I n t e r e s t - 5 0 0 1 F C N 58 1 . 0 3 4, 5 5 4 . 5 1 Lo a n I n t e r e s t - 5 0 0 2 S L O N P 0. 0 0 20 0 . 1 4 Lo a n I n t e r e s t - 5 0 0 5 H A S L O 1, 1 0 4 . 3 8 8, 8 6 6 . 6 8 Lo a n I n t e r e s t - 5 0 0 6 L C A 32 . 8 4 1, 0 1 9 . 0 7 Lo a n I n t e r e s t - 5 0 1 2 T r i - C o C H C 0. 0 0 4, 2 1 1 . 6 1 Lo a n I n t e r e s t - 5 0 1 3 T r i - C o C H C 1, 5 9 3 . 5 7 12 , 5 4 5 . 6 8 Lo a n I n t e r e s t - 5 0 1 4 C S A 2, 5 3 3 . 3 3 20 , 2 2 9 . 3 3 Lo a n I n t e r e s t - 5 0 1 5 T r i - C o C H C 1, 9 1 9 . 6 4 15 , 2 0 0 . 5 7 Lo a n I n t e r e s t - 5 0 1 6 C a m b r i a P i 76 8 . 5 4 5, 3 7 9 . 7 8 Lo a n I n t e r e s t - 5 0 1 7 P S H H O c e a n 1, 9 0 0 . 0 0 11 , 4 6 9 . 1 2 Lo a n I n t e r e s t - 5 0 1 8 P S H H S a n M 2, 5 0 0 . 0 0 18 , 8 6 7 . 6 0 Lo a n I n t e r e s t - 5 0 1 9 C A P S L O 0. 0 0 5, 7 4 5 . 1 5 Lo a n I n t e r e s t - 5 0 2 0 T r i - C o C H C 70 7 . 5 4 2, 8 3 5 . 8 4 Lo a n I n t e r e s t - 5 0 2 2 S o S t F a m 64 4 . 6 3 3, 7 4 3 . 0 2 Lo a n I n t e r e s t - 5 0 2 3 A S H 1, 4 6 8 . 9 5 3, 7 4 8 . 3 5 Lo a n I n t e r e s t - 5 0 2 4 B u r t n e s s 2, 5 4 3 . 9 4 6, 7 2 9 . 1 3 Lo a n I n t e r e s t - 5 0 2 4 B B u r t n e s s 1, 1 3 0 . 6 4 3, 0 6 3 . 6 7 Lo a n i n t e r e s t - 5 0 2 5 T r i - C o C H C 1, 8 9 6 . 8 1 2, 0 8 0 . 3 7 In t e r e s t o n L o a n s - O t h e r 0. 0 0 16 , 6 6 6 . 6 7 (1 6 , 6 6 6 . 6 7 ) 0. 0 0 13 3 , 3 3 3 . 3 2 (133,333.32)200,000.00 To t a l I n t e r e s t o n L o a n s 21 , 3 2 5 . 8 4 1 6 , 6 6 6 . 6 7 4 , 6 5 9 . 1 7 1 3 0 , 4 8 9 . 6 2 1 3 3 , 3 3 3 . 3 2 ( 2 , 8 4 3 . 7 0 ) 2 0 0 , 0 0 0 . 0 0 Lo a n F e e s I n c o m e Lo a n O r i g i n a t i o n F e e s I n c o m e 0. 0 0 1 9 , 0 5 7 . 5 0 Lo a n F e e s I n c o m e - O t h e r 0. 0 0 1, 2 5 0 . 0 0 (1 , 2 5 0 . 0 0 ) 0. 0 0 10 , 0 0 0 . 0 0 (10,000.00)15,000.00 To t a l L o a n F e e s I n c o m e 0. 0 0 1, 2 5 0 . 0 0 (1 , 2 5 0 . 0 0 ) 19 , 0 5 7 . 5 0 10 , 0 0 0 . 0 0 9,057.5015,000.00 To t a l I n c o m e 23 , 7 1 2 . 6 3 2 6 , 6 6 6 . 6 8 ( 2 , 9 5 4 . 0 5 ) 8 2 0 , 4 0 6 . 7 4 2 1 3 , 3 3 3 . 2 8 6 0 7 , 0 7 3 . 4 6 3 2 0 , 0 0 0 . 0 0 6: 1 3 P M Sa n L u i s O b i s p o C o u n t y H o u s i n g T r u s t F u n d 09 / 0 5 / 1 4 Pr o f i t & L o s s B u d g e t P e r f o r m a n c e Ac c r u a l B a s i s Au g u s t 2 0 1 4 Page 1Attachment 3 C5 - 20 Au g 1 4 Bu d g e t $ O v e r B u d g e t Ja n - A u g 1 4 YT D B u d g e t $ Over BudgetAnnual Budget Ex p e n s e Lo a n F u n d E x p e n s e s In t e r e s t E x p e n s e s Di g n i t y H e a l t h 1, 2 5 0 . 0 0 10 , 0 0 0 . 0 0 Di g n i t y H e a l t h 2 62 5 . 0 0 5, 0 0 0 . 0 0 Sa c h s F o u n d a t i o n 50 0 . 0 0 4, 0 0 0 . 0 0 Sa c h s F o u n d a t i o n # 2 20 8 . 3 3 2, 2 7 7 . 7 5 Si s t e r s o f S o r r o w f u l M o t h e r 0. 0 0 84 . 2 4 Si s t e r s o f S t . F r a n c i s 12 5 . 0 0 1, 0 0 0 . 0 0 SL O C C F 25 0 . 0 0 2, 0 0 0 . 0 0 In t e r e s t E x p e n s e s - O t h e r 0. 0 0 3, 9 3 7 . 5 0 (3 , 9 3 7 . 5 0 ) 0. 0 0 31 , 5 0 0 . 0 0 (31,500.00)47,250.00 To t a l I n t e r e s t E x p e n s e s 2, 9 5 8 . 3 3 3 , 9 3 7 . 5 0 ( 9 7 9 . 1 7 ) 2 4 , 3 6 1 . 9 9 3 1 , 5 0 0 . 0 0 ( 7 , 1 3 8 . 0 1 ) 4 7 , 2 5 0 . 0 0 Lo a n O r i g i n a t i o n E x p e n s e Ot h e r L o a n O r i g i n a t i o n C o s t s 0. 0 0 10 , 2 9 7 . 0 0 To t a l L o a n O r i g i n a t i o n E x p e n s e 0. 0 0 10 , 2 9 7 . 0 0 To t a l L o a n F u n d E x p e n s e s 2, 9 5 8 . 3 3 3 , 9 3 7 . 5 0 ( 9 7 9 . 1 7 ) 3 4 , 6 5 8 . 9 9 3 1 , 5 0 0 . 0 0 3 , 1 5 8 . 9 9 4 7 , 2 5 0 . 0 0 Ma i n t e n a n c e & R e p a i r s 0. 0 0 1 6 . 6 7 ( 1 6 . 6 7 ) 0 . 0 0 1 3 3 . 3 2 ( 1 3 3 . 3 2 ) 2 0 0 . 0 0 Of f i c e E x p e n s e s Co m m u n i c a t i o n s 15 0 . 0 0 1 6 6 . 6 7 ( 1 6 . 6 7 ) 1 , 7 7 1 . 0 1 1 , 3 3 3 . 3 2 4 3 7 . 6 9 2 , 0 0 0 . 0 0 Ed u c a t i o n a n d T r a i n i n g 0. 0 0 1 6 6 . 6 7 ( 1 6 6 . 6 7 ) 4 9 5 . 0 0 1 , 3 3 3 . 3 2 ( 8 3 8 . 3 2 ) 2 , 0 0 0 . 0 0 Fu r n i s h i n g s & E q u i p m e n t 0. 0 0 1 6 6 . 6 7 ( 1 6 6 . 6 7 ) 0 . 0 0 1 , 3 3 3 . 3 2 ( 1 , 3 3 3 . 3 2 ) 2 , 0 0 0 . 0 0 In s u r a n c e 34 6 . 0 1 3 3 3 . 3 3 1 2 . 6 8 2 , 7 6 8 . 0 8 2 , 6 6 6 . 6 8 1 0 1 . 4 0 4 , 0 0 0 . 0 0 Mm b r s h i p s , D u e s & S u b s c r i p t i o n s 75 . 0 0 20 0 . 0 0 (1 2 5 . 0 0 ) 1 , 6 0 4 . 9 6 1, 6 0 0 . 0 0 4.962,400.00 Ot h e r E x p e n s e s 15 . 0 0 94 . 5 8 (7 9 . 5 8 ) 90 . 0 0 75 6 . 6 8 (666.68)1,135.00 Pr i n t i n g & P o s t a g e 9. 7 2 18 3 . 3 3 (1 7 3 . 6 1 ) 10 5 . 2 0 1, 4 6 6 . 6 8 ( 1 , 3 6 1 . 4 8 ) 2 , 2 0 0 . 0 0 Tr a v e l & E n t e r t a i n m e n t 0. 0 0 36 3 . 3 3 (3 6 3 . 3 3 ) 99 0 . 2 9 2, 9 0 6 . 6 8 ( 1 , 9 1 6 . 3 9 ) 4 , 3 6 0 . 0 0 81 1 0 · S u p p l i e s 20 . 4 2 83 . 3 3 (6 2 . 9 1 ) 55 9 . 2 9 66 6 . 6 8 (107.39)1,000.00 82 1 0 · O c c u p a n c y 1, 2 2 7 . 6 5 1, 3 5 0 . 0 0 (1 2 2 . 3 5 ) 9, 8 9 0 . 9 9 10 , 8 0 0 . 0 0 (909.01)16,200.00 To t a l O f f i c e E x p e n s e s 1, 8 4 3 . 8 0 3 , 1 0 7 . 9 1 ( 1 , 2 6 4 . 1 1 ) 1 8 , 2 7 4 . 8 2 2 4 , 8 6 3 . 3 6 ( 6 , 5 8 8 . 5 4 ) 3 7 , 2 9 5 . 0 0 Pa y r o l l T a x e s / E m p l o y e e B e n e f i t s 65 5 0 · P a y r o l l T a x e s 65 5 1 · P a y r o l l T a x e s - G e n F u n d 1, 1 7 4 . 3 5 7, 4 9 6 . 8 8 65 5 0 · P a y r o l l T a x e s - O t h e r 0. 0 0 3, 0 9 6 . 8 3 (3 , 0 9 6 . 8 3 ) 0. 0 0 24 , 7 7 4 . 6 8 (24,774.68)37,162.00 To t a l 6 5 5 0 · P a y r o l l T a x e s 1, 1 7 4 . 3 5 3 , 0 9 6 . 8 3 ( 1 , 9 2 2 . 4 8 ) 7 , 4 9 6 . 8 8 2 4 , 7 7 4 . 6 8 ( 1 7 , 2 7 7 . 8 0 ) 3 7 , 1 6 2 . 0 0 72 2 0 · H e a l t h I n s u r a n c e 1, 9 0 9 . 3 1 1 5 , 5 4 5 . 9 1 72 2 7 · W o r k e r s C o m p I n s 14 4 . 6 1 1, 2 4 2 . 5 4 To t a l P a y r o l l T a x e s / E m p l o y e e B e n e f i t s 3, 2 2 8 . 2 7 3 , 0 9 6 . 8 3 1 3 1 . 4 4 2 4 , 2 8 5 . 3 3 2 4 , 7 7 4 . 6 8 ( 4 8 9 . 3 5 ) 3 7 , 1 6 2 . 0 0 Pr o f e s s i o n a l S e r v i c e E x p e n s e s Le g a l & A c c o u n t i n g S e r v i c e s 1, 5 8 6 . 3 5 2 , 9 5 8 . 3 3 ( 1 , 3 7 1 . 9 8 ) 1 7 , 4 4 6 . 7 0 2 3 , 6 6 6 . 6 8 ( 6 , 2 1 9 . 9 8 ) 3 5 , 5 0 0 . 0 0 Pr o f e s s i o n a l S e r v i c e s 0. 0 0 34 4 . 3 9 To t a l P r o f e s s i o n a l S e r v i c e E x p e n s e s 1, 5 8 6 . 3 5 2 , 9 5 8 . 3 3 ( 1 , 3 7 1 . 9 8 ) 1 7 , 7 9 1 . 0 9 2 3 , 6 6 6 . 6 8 ( 5 , 8 7 5 . 5 9 ) 3 5 , 5 0 0 . 0 0 6: 1 3 P M Sa n L u i s O b i s p o C o u n t y H o u s i n g T r u s t F u n d 09 / 0 5 / 1 4 Pr o f i t & L o s s B u d g e t P e r f o r m a n c e Ac c r u a l B a s i s Au g u s t 2 0 1 4 Page 2Attachment 3 C5 - 21 Au g 1 4 Bu d g e t $ O v e r B u d g e t Ja n - A u g 1 4 YT D B u d g e t $ Over BudgetAnnual Budget 65 6 0 · S a l a r y a n d W a g e s 65 6 1 · A d m i n i s t r a t i v e A s s i s t a n t 65 6 2 · W a g e s - G e n F u n d 3, 8 5 9 . 0 0 20 , 3 3 3 . 5 0 To t a l 6 5 6 1 · A d m i n i s t r a t i v e A s s i s t a n t 3, 8 5 9 . 0 0 2 0 , 3 3 3 . 5 0 65 6 5 · E x e c u t i v e D i r e c t o r 65 6 6 · W a g e s - G e n F u n d 7, 5 9 8 . 1 2 2 9 , 8 7 4 . 9 2 65 6 7 · W a g e s - C D F I 4, 3 9 6 . 4 2 47 , 7 1 8 . 4 4 To t a l 6 5 6 5 · E x e c u t i v e D i r e c t o r 11 , 9 9 4 . 5 4 77 , 5 9 3 . 3 6 65 6 0 · S a l a r y a n d W a g e s - O t h e r 0. 0 0 12 , 2 1 6 . 0 8 (1 2 , 2 1 6 . 0 8 ) 0. 0 0 97 , 7 2 8 . 6 8 (97,728.68)146,593.00 To t a l 6 5 6 0 · S a l a r y a n d W a g e s 15 , 8 5 3 . 5 4 12 , 2 1 6 . 0 8 3, 6 3 7 . 4 6 97 , 9 2 6 . 8 6 97 , 7 2 8 . 6 8 198.18146,593.00 To t a l E x p e n s e 25 , 4 7 0 . 2 9 25 , 3 3 3 . 3 2 13 6 . 9 7 19 2 , 9 3 7 . 0 9 20 2 , 6 6 6 . 7 2 (9,729.63)304,000.00 Ne t O r d i n a r y I n c o m e (1 , 7 5 7 . 6 6 ) 1 , 3 3 3 . 3 6 ( 3 , 0 9 1 . 0 2 ) 6 2 7 , 4 6 9 . 6 5 1 0 , 6 6 6 . 5 6 6 1 6 , 8 0 3 . 0 9 1 6 , 0 0 0 . 0 0 Ot h e r I n c o m e / E x p e n s e Ot h e r E x p e n s e Op e r a t i n g C o n t i n g e n c y 0. 0 0 1, 3 3 3 . 3 3 (1 , 3 3 3 . 3 3 ) 0. 0 0 10 , 6 6 6 . 6 8 (10,666.68)16,000.00 To t a l O t h e r E x p e n s e 0. 0 0 1, 3 3 3 . 3 3 (1 , 3 3 3 . 3 3 ) 0. 0 0 10 , 6 6 6 . 6 8 (10,666.68)16,000.00 Ne t O t h e r I n c o m e 0. 0 0 (1 , 3 3 3 . 3 3 ) 1, 3 3 3 . 3 3 0. 0 0 (1 0 , 6 6 6 . 6 8 ) 10,666.68(16,000.00) Ne t I n c o m e (1 , 7 5 7 . 6 6 ) 0. 0 3 (1 , 7 5 7 . 6 9 ) 62 7 , 4 6 9 . 6 5 (0 . 1 2 ) 627,469.770.00 6: 1 3 P M Sa n L u i s O b i s p o C o u n t y H o u s i n g T r u s t F u n d 09 / 0 5 / 1 4 Pr o f i t & L o s s B u d g e t P e r f o r m a n c e Ac c r u a l B a s i s Au g u s t 2 0 1 4 Page 3Attachment 3 C5 - 22 Fiscal Status of Affordable Housing Fund Revenues, Expenditures and Changes in Fund Balance Expenditures Fiscal Year In-Lieu FeesInterestRents BEGIN funds reimbursement BEGIN reuse funds BEGIN reuse fund interest Total(Note 2)BeginningEnding 2000-01 (Note 1)193,700 8,200 201,900 201,900 2001-02 464,900 20,000 484,900 201,900 686,800 2002-03 747,800 28,300 776,100 (215,000) 686,800 1,247,900 2003-04 60,500 8,500 69,000 (30,000) 1,247,900 1,286,900 2004-05 323,300 32,500 355,800 (30,000) 1,286,900 1,612,700 2005-06 1,863,700 68,500 1,932,200 1,612,700 3,544,900 2006-07 627,200 160,500 787,700 (530,000) 3,544,900 3,802,600 2007-08 682,400 155,600 838,000 (630,000) 3,802,600 4,010,600 2008-09 465,700 199,700 1,400 666,800 (892,500) 4,010,600 3,784,900 2009-10 (21,300) 32,600 9,000 270,000 290,300 (3,407,600) 3,784,900 667,600 2010-11 332,800 16,000 3,900 30,000 382,700 (39,800) 667,600 1,010,500 2011-12 848,800 21,900 870,700 (112,700) 1,010,500 1,768,500 2012-13 182,700 700 183,400 (30,000) 1,768,500 1,921,900 2013-14 777,300 12,700 217,800 8001,008,600 (30,000) 1,921,900 2,900,500 2014-15 1st Quarter 115,000 *115,000 - 2,900,500 3,015,500 Cumulative Total 7,664,500 765,700 14,300 300,000 217,800 800 8,963,100 (5,947,600) 3,015,500 Def.rev-#2700incl. in #2700 Commitments Transfer to General Fund (17,000) 313 South Street (650,000) Total Commitments (667,000) Net Available for New Programs at October 15, 2014 $2,348,500 NOTES 1.2000-01 is the first year that in-lieu fees were received. 2.Expenditure Summary To-Date YearPurpose Amount TTl by Year 2002-03Judson Terrace Lodge 215,000 215,000 2003-04Operating Support: SLO County Housing Trust Fund30,000 30,000 2004-05Operating Support: SLO County Housing Trust Fund 30,000 30,000 2006-07People's Self-Help Housing: Villas at South Higuera 500,000 2006-07Operating Support: SLO County Housing Trust Fund 60,000 560,000 (Two-Year Commitment) 2007-08Housing Authority, Humbert Project 600,000 600,000 2008-09First time home buyers' program 34,400 2008-09Habitat for Humanity 332,500 2008-09SLO County Housing Trust 30,000 2008-093591 Sacramento #53 310,100 2008-09Laurel Creek BEGIN funds 185,500 892,500 2009-10Wineman hotel 1,500,000 2009-10First time home buyers' program (refund)(9,300) 2009-10Laurel Creek BEGIN funds 514,500 2009-10Housing Authority, Humbert Project 109,900 2009-10Aids Support Remodel 82,800 2009-10Village at Broad 1,034,400 2009-103592/3594 Broad Street 174,700 2009-103591 Sacramento #53 600 3,407,600 2010-11Housing Trust Fund 30,000 2010-113591 Sacramento #53 3,100 2010-113592/3594 Broad Street 6,700 39,800 2011-123591 Sacramento #53 1,200 2011-123212 Rockview 38,800 2011-123592/3594 Broad Street - 2011-12Judson Terrace Termite Repair 42,700 2011-12Housing Trust Fund 30,000 112,700 2012-13Housing Trust Fund 30,000 30,000 2013-14Housing Trust Fund 30,000 30,000 Total 5,947,600 5,947,600 * Interest is accounted for annually Revenues Fund Balance Attachment 4 C5 - 23 Attachment 5 RESOLUTION NO. XXXX-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A $30,000 AFFORDABLE HOUSING FUND (AHF) GRANT AWARD FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND (HTF) WHEREAS, on November 18, 2014 the City Council of the City of San Luis Obispo considered a request by the Housing Trust Fund (“HTF”) for Affordable Housing Fund (“AHF”) grant assistance in the amount of $30,000; and WHEREAS, the $30,000 will allow the HTF to improve the ability and feasibility of the entitlement and construction of affordable housing projects in the City; and WHEREAS, the projects and programs supported by the HTF meet the eligibility criteria established by the City Council; and WHEREAS, Housing Element Program 6.13 provides direction for the City to “continue to support the SLO County Housing Trust Fund’s efforts to provide below-market financing and technical assistance to affordable housing developers as a way to increase affordable housing production in the City of San Luis Obispo”; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff presented at said meeting. BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: Section 1. Environmental Determination. The project is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with certainty that the proposed action to award grant funding to the HTF for operating expenses will have no significant effect on the environment. Section 2. Findings. The City Council does hereby make the following findings in support of the proposed Affordable Housing Fund grant award: 1. Eligibility: Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: The HTF improves the ability and feasibility of affordable housing construction. The HTF indirectly supports creation of affordable housing units by providing financing and technical assistance to City staff and developers of affordable housing in the City, and HTF advocates C5 - 24 Attachment 5 for affordable housing projects, consistent with City policy. The proposed award is consistent with the General Plan (Housing Element Programs 2.12 and 6.13) and past practice. 2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: The City’s Regional Housing Needs Allocation (RHNA) for the five-year period from January 2014 through June 2019 includes 142 units in the extremely-low income (<30% of AMI) category, 143 in the very-low income (30-50% of AMI) category, 179 units in the low income (51-80% of AMI) category and 202 in the moderate income (81-120% of AMI) category. The HTF contributes to affordable housing at all of these income ranges and will assist the City in meeting State housing targets. 3. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: This criterion is evaluated when HTF-funded affordable housing projects are proposed in the City and for any project that receives an AHF grant. 4. Timing: The project would better serve the City’s needs if it were built immediately as opposed to later, as follows: Funding should be provided now so that the HTF has adequate funds to cover operating expenditures during the 2014 fiscal year and can continue to assist affordable housing project construction. The City’s citizens would be better served with HTF’s assistance now rather than later. 5. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: The City’s AHF award would leverage significant additional funding from other sources, including federal, state and local loan and grant programs. In addition, contributors to the HTF have provided nearly $7 million in operating support and equity for new loans since 2003. 6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: The HTF has been contributing to the cause of affordable housing in San Luis Obispo County since 2003 and the proposed AHF award will help the HTF fulfill their mission and is supported by the General Plan. Section 3. Affordable Housing Fund Award, SLO County Housing Trust Fund. The City Council does hereby approve an Affordable Housing Fund grant in the amount of $30,000 to support operating expenditures during the 2014 fiscal year and authorizes the Finance Manager to appropriate the funds from unallocated Affordable Housing Fund balance. C5 - 25 Attachment 5 Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 18th day of November, 2014. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Anthony Mejia City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney C5 - 26