HomeMy WebLinkAbout07/06/2010, C 3 - AFFORDABLE HOUSING AWARD FOR SAN LUIS OBISPO COUNTY HOUSING TRUST FUND. r
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CITY OF SAN LU I S O B I S P O
FROM: John Mandeville, Community Development Director
Prepared By: Michael Codron, Housing Programs Manage?=
SUBJECT: AFFORDABLE HOUSING AWARD FOR SAN LUIS OBISPO COUNTY
HOUSING TRUST FUND.
RECOMMENDATION
Adopt a resolution approving an Affordable Housing Fund award in the amount of$30,000 for
the San Luis Obispo County Housing Trust Fund.
DISCUSSION
Background '
The Affordable Housing Fund (AHF) has been developed through implementation 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. The City then uses those fees in a variety of ways
to make more affordable housing available in the community. These funds are awarded at the
Council's sole discretion, based on previously adopted criteria(Attachment 1). 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 2010 (Attachment 2). The HTF provides three key services that benefit
affordable housing in the City of San Luis Obispo: financing, technical assistance and advocacy.
The HTF provides funding for various affordable housing activities, including property
acquisition, construction, and refinancing. HTF staff also serve as a resource to City staff
working with developers on affordable housing projects. 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 made over $4.25 million in financing available for affordable housing
projects county-wide, contributing to the creation or preservation of 180 affordable dwelling
units. The HTF was instrumental in facilitating the property acquisition component of the Village
at Broad Street project, a 42-unit affordable housing project being developed by ROEM. The
HTF has also lent money to HASLO to refinance the Marvin Gardens Apartments on Laurel
Lane, helping to preserve that 24-unit affordable project.
C3 - 1
Affordable Housing Fund Award (Housing Trust Fund) Paget
Recently, the HTF approved a $50,000 loan for Habitat for Humanity, which will be used for
property acquisition for a site on Rockview that is slated for development of three new homes.
Habitat is expected to submit plans for City approval of a minor subdivision and affordable
housing incentives during 2010.
The AHF has been used to support the operating costs of the HTF in the past, for a total of
$150,200. In support of the current request, the HTF's Executive Director has submitted
supporting documentation regarding their budget, performance and overall financial stability
(Attachment 3).
Award Criteria
In making its recommendations to the City Council for how AHF funds should be allocated, City
staff considers Council adopted criteria including eligibility, need, suitability, timing, financial
effectiveness and readiness. The following is an analysis of the HTF request relative to the
criteria.
Eligibility: The project will increase or improve the City's affordable housing inventory and
promote General Plan policies regarding housing.
Although the proposal does not create any units on its own, the HTF improves the City's
ability to facilitate affordable housing, provides technical assistance to City staff and
developers of affordable housing in the City, and HTF advocates for affordable housing
projects, consistent with City policy. The proposed award is consistent with City General
Plan policy (Housing Element Program 2.13 and 6.13) and past practice.
Need. There exists a substantial or overarching need for the type of unit to be assisted.
The HTF contributes to affordable housing at the, very-low, low and moderate income
ranges.
Suitability: The project to be assisted is appropriate for its location both in terms of land use and
design.
This criteria would be evaluated for any future HTF affordable housing projects in the
City of San Luis Obispo that also receive an AHF grant.
Timing: The project would better serve the City's needs if it were built immediately as opposed
to later.
Funding should be provided now so that HTF has adequate funds to cover operating
expenditures during the 2010 calendar year.
Financial Effectiveness: But for the requested funding, the project would not be feasible; or the
project leverages significant additional funding from other sources.
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Affordable Housing Fund Award(Housing Trust Fund). Page 3
The City's AHF award would leverage significant additional funding from other sources.
As shown in Attachment 2, the top twenty contributors to the HTF have provided over
$1.5 million in operating support and equityfor new loans since 2003.
Readiness: The project has all necessary approvals and is ready to proceed.
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 full their mission
and is supported by the General Plan.
Status of the Affordable Housing Fund
An updated status report on the AHF is attached (Attachment 4). The report indicates that if the
proposed award is granted, the City would retain over $500,000 in cash available to allocate to
new affordable housing projects. Although collection of new in-lieu fees for the 2009-2010 was
significantly lower than average, reimbursement to the AHF for the City's participation in the
BEGIN first-time homebuyer program provided a revenue boost. As a result, the proposed
reward represents a small percentage of available funds and the award would not reduce the
City's flexibility for funding new projects.going forward.
The fund also owns real property assets with equity totaling $484,800. These include a three-
bedroom affordable condominium unit that is part of the City's Long-Team Affordability
Program, which will be purchased by an eligible household for owner-occupied housing. The
City also has equity interests in two, one-bedroom affordable condominium units on 3592 and
3594 Broad Street, which will be purchased by Transitions Mental Health Association as part of
the City's 2010 CDBG program. These purchases are expected to occur during calendar year
2010, fully reimbursing the AHF its equity interests in these holdings.
FISCAL IMPACTS
The recommended allocation would be paid out of the Affordable Housing Fund, 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. The project will have no impact on the General Fund.
ALTERNATIVES
1. Do not authorize an AHF award. This action is not recommended because the project
meets 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.
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Affordable Housing Fund Award(Housing Trust Fund) Page 4
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.
ATTACHMENTS
1. Council Resolution No. 9263
2. HTF funding request and background information
3. HTF budget,performance documentation and financial statements
4. Affordable Housing Fund Status Report
5. Draft Council Resolution
G:\CD-PL.AN\MCODRON\Housing\AHFA WardsUHTF\HTF2010(fundingCAR).doc
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RESOLUTION NO. 9263 (2001 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING AWARD CRITERIA AND REVIEW PROCESS FOR
ALLOCATING AFFORDABLE HOUSING FUNDS.
WHEREAS,the City Council adopted Ordinance 1348(1999 Series)establishing
an Affordable Housing Fund for the collection and distribution of in-lieu housing fees to
promote affordable housing in San Luis Obispo;and
WHEREAS,as a result of the in-lieu fee payments to the City under the
Inclusionary Housing Ordinance,the City has a balance of approximately$400,000 in the
Affordable Housing Fund;and this fund is available to support affordable housing in San
Luis Obispo at the sole discretion of the City Council;and
WHEREAS,the City received requests by Judson Terrace Lodge and Sojourn
Services,Inc.for the use of$215,000 and$25,000,respectively,of Affordable Housing
Funds;and to evaluate these and future funding requests in a fair and timely manner,
Council wishes to establish award criteria and a review process for the Affordable Housing
Fund;and
WHEREAS,the City Council held a meeting on December 4,2001 to consider
possible award criteria that balance the need to provide a fair,open and timely funding
award process with the desire to maintain funding flexibility to address local housing needs
and opportunities;
NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis
Obispo that based on its deliberations,public comments,the staff report,and on State law,
the following:
SECTION 1. Affordable Housing Fund Award Criteria. The City Council
establishes the following criteria for evaluating requests for use of the Affordable Housing
Fund:
1. Eligibility. Use of the Affordable Housing Fund(AHF)for the requested
purpose will increase or improve the City's affordable housing inventory and
promote General Plan policies regarding housing.
2. Need. There exists a substantial or overarching need for the type of housing to be
assisted.
3. Suitability. The project to be assisted is appropriate for its location,both in
terms of land use and design.
4. Timing. The project would be better serve the City's needs if it were built
immediately as opposed to later.
R 9263
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Resolution No.9263(200�Series) Attachmelit
Page 2
S.Financial Effectiveness. But for the requested assistance,the project would not
be economically feasible;or AHF funding"leverages"significant additional funding
from other sources.
6. Readiness. The project has all necessary City approvals and is ready to proceed.
SECTION 2. Use of Award Criteria. The Council will apply the above criteria
when evaluating funding requests. Requests that most closely meet the criteria will be given
the most favorable consideration in allocating Affordable Housing Funds. Under no
circumstances is Council obligated to award Affordable Housing Funds. The decision
whether to allocate funds and how much is at the sole discretion of the City Council whose
decision is final.
SECTION 3. Review Process. The Community Development Director shall be
responsible for processing requests for use of Affordable Housing Funds. Such requests
shall usually be considered concurrent with review of the City's Community Development
Block Grant Program.The Director is authorized to bring urgent funding requests to the
Council at any time,irrespective of the above review cycle.
SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds
shall be required to execute an agreement with the City describing the purpose and terms of
funding. The project or program to be funded shall meet the City's Affordable Housing
Standards,including the requirement for an affordability term of at least thirty(30)years,
and City equity participation in the project where feasible and appropriate. The City
Administrative Officer is authorized to execute such agreements for the City.
Upon motion of Council Member Schwartz,seconded by Vice Mayor Marx,and on the
following roll call vote:
AYES: Council Members Ewan,Mulholland,Schwartz,Vice Mayor Marx,
and Mayor Settle
NOES: None
ABSENT: None
The foregoing resolution was adopted this 4m day of December 2001
Mayor Allen Settle
A T:
Lee Price,City Clerk
C3 - (
Resolution No.9263(2�Series)
Attachment 1 lip,
Page 3
APPROVED AS TO FORM:
J Jo nse , ity orney
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February 3,2010
Michael Codron
Housing Programs Manager
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Dear Mr. Codron:
Thank you for supporting of the San Luis Obispo County Housing Trust Fund(HTF)and
participating on the HTF Commission. The City of San Luis Obispo has been one of the HTF's
strongest supporters, having provided us a total of$150,200 in general operating support since
2004. These grants make the City our third most generous supporter overall.
I am writing to request that the City award an additional $30,000 in housing in-lieu funds to the
HTF for calendar year 2010. The requested funds will ensure our continued operations and
enable us to provide more financing and technical assistance in the City of San Luis Obispo.
This request represents less than 12%of our operating budget for 2010. We anticipate that more
than half of our operating revenues for the year will come from our loan fee and interest
earnings.
Financing
The Housing Trust Fund was created specifically to provide short-term or gap financing for
affordable housing projects that include units for very low, low and/or moderate income
households. We have raised more than $4 million in private lending capital since incorporating
in 2003. We currently have more than $3.8 million in revolving loan funds, including$700,000
in net assets that are dedicated for lending. These net assets include a$500,000 grant we
received from the US Treasury in 2009, $125,000 from the California Association of Realtors
and$76,000 in our George Moylan Affordable Housing Fund.
Since 2005, the HTF has provided$4.25 million in financing to create or preserve 180 units of
affordable housing throughout San Luis Obispo County. Of this amount, $1.65 million or 38.8%
was loaned for projects located in the City of San Luis Obispo. The Village at Broad Street
received a $1.3 million loan for site acquisition 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.
71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 4 www.slochtf.oro 3.6
- Attachment 2
Michael Codron
February 3,2010
Page 2 of 2
We are currently talking with HASLO, Habitat for Humanity and various nonprofit service
providers about potential loans for additional housing projects in this community. We are
hopeful that we can assist with the financing of Moylan Terrace and other projects in the City in
the near future. We have approximately$1 million available for new loans at this time. We
have applications pending for various social investments,an additional $600,000 grant from the
US Treasury and a$1.5 million grant from the California Department of Housing and
Community Development. We are confident that we will attract at least$1 million in new loan
funds during 2010.
Technical Assistance
Providing technical assistance to support both individual housing projects,and housing programs
and policies is another important activity of the Housing Trust Fund. We have provided,and
will continue to provide,technical assistance to HASLO, Habitat for Humanityand various
human service groups, including the Women's Shelter Program,Transitions-Mental Health
Association and Family Care Network,to increase their capacity to undertake and finance
housing projects. 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
developers concerning the potential to include affordable housing in future projects.
Various documents are enclosed with this request, including our board and commissioner rosters,
our 2010 budget,2009 financial statements and 2008 audit, our sources of operating support and
lending capital,our loans to date and a general informational handout. Please let me know if you
need any additional information or material to consider this request.
We look forward to continue working with you and the City of San Luis Obispo in the future.
Sincerely,
Gerald L. Rioux
Executive Director
Enclosures
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Attachmpnt I
S A No LU ( So O B I S P O • COUNTY
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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 Board members are:
Board Member and Office Affiliation
R. Thomas"Tom"Jones, Chair Dean, College of Architecture and Environmental Design,Cal Poly
University
Rachel Richardson,Vice-Chair Housing Coordinator, AIDS Support Network; Former Chair, San Luis
Obispo Supportive Housing Consortium
Dick Willhoit,Treasurer President,Estrella Associates,Inc. (developer and home builder)
Dr.Allen Haile, Secretary Community&Government Relations Director(retired),Cal-Poly
University; Member, San Luis Obispo County Economic Advisory
Committee
Anita Robinson President and CEO, Mission Community Bancorp
Dr.Julian Crocker San Luis Obispo County Superintendent of Schools
Affiliations are provided for information only.
Rev 7-1-09
71 Zaca Lane, Suite 130,San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦www.slochtf.org C3 lQ
Attachment 2
S AN a L U I S • O B IS P O • C O U N T Y
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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 and their appointing authorities are:
Commissioner Appointing Authority Position
Michael Codron City of San Luis Obispo Housing Program Manager
Ed Gallagher City of Paso Robles Housing Program Manager
Kelly Heffemon City of Arroyo Grande Associate Planner
Marianne Kennedy SLO Supportive Housing Executive Director,Women's Shelter Project
Consortium
Dana Lilley County of San Luis Obispo Housing and Economic Development Manager
Debbie Peterson City of Grover Beach City Council Member
John Stocksdale City of Pismo Beach Retired banker
Betty Winholtz City of Mono Bay City Council Member
Rev 9-11-2009
Additional information on the Commission is available online at www.slochtf.ora/commission.htm.
71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 4 www.slochtf.oro C3-1
Attachment
S A N • L U I S • O B I S P 0 • C O U N T Y
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Top Twenty Contributors
Since incorporating February 27,2003,the San Luis Obispo County Housing Trust.Fund(HTF)has
received nearly$1.8 million in grants,contributions and in-kind support from many different sources,
including the County of San Luis Obispo,the US Treasury, every city in the county,the real estate and
banking industries and others in our broad community.
The following table lists our 20 top contributors and the totals of their support to date.
Rank Supporter Grants
1 County of San Luis Obispo $522,700
2 CDFI Fund of the US Treasury $500,000
3 City of San Luis Obispo $150,200
4 California Association of Realtors $125,000
5 Bank of America $70,000
6 Community Action Partners(formerly EOC) $50,000
7 Union Bank of California $40,000
8 Rabobank' $35,550
9 City of Atascadero $35,000
10 City of Arroyo Grande $30,000
11 City of Grover Beach $30,000
12 City of Pismo Beach $27,000
13 Housing Authority of the City of San Luis Obispo (HASLO) $20,000
14 City of Paso Robles $17,500
15 San Luis Obispo County Community Foundation $15,200
16 Heritage Oaks Bank $12,721
17 US Bank(formerly Downey Savings) $12,000
18 United Way of San Luis Obispo County $11,913
19 Mission Community Bank' $11,750
20 Washington Mutual Bank $10,000
Rev 11-30-09
While these contributions primarily supported our operations, approximately$700,000 was dedicated to
our revolving loan funds.
In addition to receiving$1.8 million in grants,the HTF has received more than$3 million in private
investments in our revolving loan funds. Our initial investments came from Mission Community Bank
and Rabobank in the form of$1 million revolving lines of credit. Rabobank also made it a CDFI tax
credit investment. Catholic Healthcare West, which operates two local hospitals,has invested$500,000.
Foundations and religious communities have also invested in our loan funds.
' Rabobank and Mission Community Bank also provided below market investments in our revolving loan funds.
71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦ www.slochtf.org �
Attach ent 2
S A N • L U I S • O B I 'S P O • C 0 U N T Y
MUSr FUND1V HOUSM
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Loan Production
The following table summarizes the loan production of the San Luis Obispo County Housing Trust Fund
through the end of 2009.
Borrower and Loan Number of Units Assisted'
Location of Project Amount Total VLI LI S/NZ Use of Funds
Family Care Network,Inc., $283,300 5 5 0 5 Acquisition of transitional
Arroyo Grande housing for foster care
youth.
San Luis Obispo Non-Profit $700,000 19 6 13 6 New construction rental
Housing Corporation, housing for seniors.
Atascadero
Habitat for Humanity, $339,000 4 4 0 0 Site acquisition for new
Atascadero construction ownership
housing.
Family Care Network,Inc., $700,000 4 4 0 4 Acquisition of transitional
Atascadero housing for foster care
youth.
Housing Authority of the $285,000 1 0 1 0 Preservation of affordable
City of San Luis Obispo unit at risk of foreclosure.3
(HASLO), Arroyo Grande
Laurel Creek Apartments, $350,000 24 8 16 24 Preservation of apartments
LP, San Luis Obispo for seniors and the
disabled.
Village at Broad Street $1,300,000 42 31 11 0 Land acquisition and
Family Housing, LP, San predevelopment costs for
Luis Obispo family apartments.
Edna Islay Housing $300,000 81 28 53 0 Predevelopment costs for new
Corporation,Paso Robles construction tax credit rental
housing.
Totals $4,257,300 180 86 94 39
Percentages 100% 48% 52% 22%
Rev 12/31/09
Very low income(VLI)units serve households that earn up to 50%of area median income;low income(LI)units serve
households that earn between 51%and 80%of area median income;special needs(SN)units serve households with special
needs. Our current income limits are online at www.slochif.ora/Files.,"iiiconic-limits.i)d Our definition of households with
special needs is online at www.slochtf.orv-/f'ilcs/special-needs.T)df.
`Includes units that are fully accessible,but may not currently be occupied by individuals who are handicapped.
3 The unit is currently occupied by a low income household under a lease-purchase agreement. I
71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 4 (805)543-5970 ♦www.slochtf.org
San Luis Obispo County
Housing Trust Fund
The San Luis Obispo County Housing Trust Fund(the"HTF")is a private non-
profit corporation that was created through a cooperative effort by local health
and social service providers,businesses and government agencies to address local
housing needs. The HTF's mission is to:
"increase the supply of affordable housing for very low,low and
moderate income residents of San Luis Obispo County,including
households with special needs."
Housing for All is the HTF's vision statement. We strive for a day when all who
live or work in San Luis Obispo County have decent housing that they can afford.
Programs and Services
The HTF does not develop,own or operate affordable housing,but partners with
others who do. The HTF offers two services to support the development and
preservation of affordable housing in San Luis Obispo County—financing and
technical assistance. The HTF also advocates for affordable housing throughout
the county.
The HTF offers low cost financing with flexible terms to eligible borrowers for
eligible projects and technical assistance to eligible borrowers and local
government agencies. One example of this assistance is helping eligible
borrowers plan affordable housing projects. Another is helping borrowers to
identify and secure other financing and subsidies for their projects. For local
governments, the HTF's assistance focuses on developing local programs and
policies that encourage and support the development and preservation of
affordable housing.
Eligible Borrowers
Individuals,partnerships, corporations and government bodies are eligible to
borrow from the HTF to develop,rehabilitate or acquire affordable housing.
Corporations may either be non-profit or for-profit. The HTF does not require
borrowers to have experience creating or operating affordable housing,just sound
plans for undertaking their proposed project.
Eligible Projects and Use of Funds
The HTF will finance both ownership and rental housing, including housing that
will provide temporary or transitional shelter. HTF financing may be used to
purchase,rehabilitate or develop affordable housing. Converting non-residential
structures to housing is also eligible for HTF financing. HTF funds may be used
for project planning and predevelopment, site acquisition, site development,
construction and to bridge other gaps in the project's financing. For additional
information,please check our website—www.slochtf.org—or call us with
questions concerning eligible projects and the use of funds.
not currently available for individuals to purchase or rehabilitate their own homes.
013 1 Y
Attachment 2
Beneficiaries or Target Population
Housing that is assisted by the HTF must be affordable to and occupied by individuals with very low,low or
moderate incomes, including households with special needs. While the HTF generally follows the HUD/HCD
income limits,we have the flexibility to follow the income limits of other programs that finance or regulate the
housing that the HTF assists. The current HUD/HCD income limits and definition of"special needs"are
posted on our website—iNww.slochtf.org/loans.htm.
Long Term Affordability
Housing that is assisted by the HTF must generally have long-term affordability covenants or guarantees. As
an alternative,ownership units may have a recapture arrangement, such as equity sharing. These provisions or
requirements prevent windfall profits and recapture the value of subsidies to assist additional housing units.
The HTF generally follows the long-term affordability or recapture requirements of other programs that
finance or regulate the housing that the HTF assists. Affordability covenants are typically enforced for 30 to
55 years.
Loan Terms
The HTF typically provides short-term loans(less than five years)to assist affordable housing projects during
the early stages of planning and development. Loans from the HTF tend to have lower interest rates and more
flexible repayment terms than conventional financing. They must be secured by real estate or other collateral.
They are generally recorded behind private loans and in front of government loans.
Since interest rates and loan terms vary depending upon the cost and availability of funds,the type of loan .
requested and market conditions,we encourage potential borrowers to check our website or call us at
(805) 543-5970 for current rates and terms.
Application Process
We encourage prospective borrowers to call us first to discuss their project. We then ask that a preliminary
application be submitted to our office. If the preliminary application meets our criteria and sufficient funds are
available, we will request a full application.
Rather than focus on the borrower's experience with affordable housing,we are more concerned about their
financial status,related experience and ability to successfully complete the project. The HTF is also concerned
about the number and affordability of the units that will be produced or preserved. Additional information on
our application process is available online at www.slochtforP!loans.htm.
Contributions and Investments Encouraged
The HTF actively seeks contributions and investments from individuals, firms and government agencies that
are concerned about affordable housing and support our mission. Contributions to the HTFare tax deductible
and certain investments may qualify for state income tax credits. For more information on contributing to and
investing in the HTF,please call us at(805) 543-5970 or visit our website—www.slochtfore. Your support is
greatly appreciated.
San Luis Obispo County Housing Trust Fund s A rr.,_• L_U- t -s.._� O B I-5 P O__!_C-O. U NJY
71 Zaca Lane, Suite 130 WxOU
San Luis Obispo, CA 93401phone: (805) 543-5970; fax: (805) 543-5972TWffU D .
e-mail: info(z;slocht£ore; website: www.slochtf.orc ------ •HOUSING FOR ALL' ---
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Attachment 3
San Luis Obispo County Housing Trust Fund
Adopted Budget for 2010
With comparisons to 2009
2010 Budget 2009 Budget
[Amounts
dget Percent Budget Percent
Income of Total Amounts of Total
Government Grants & Contracts
Local $89,000 34.9% $105,500 44.9%
Contributions & Donations
Foundations & Nonprofits $0 0.0% $10,000 4.3%
Corporations $35,000 13.7% $35,000 14.9%
Corporate Earnings
Loan Interest Income $128,388 50.3% $70,243 29.9%
Interest on Deposits $2,612 1.0% $14,257 6.1%
Total Income $255000 100.0% $235,000 100.0%
2010 Budget 2009 Budget & Projected
Budget Percent Budget Percent
Expenses Amounts of Total Amounts of Total
Personnel Expenses
Salaries and Wages $111,914 43.9% $111,228 47.3%
Payroll Taxes & Employee Benefits $34,623 13.6% $33,056 14.1%
Professional Services $2,700 1.1% $2,100 0.9%
Legal and Accounting Services $18,100 7.1% $16,900 7.2%
Non-Personnel Expenses
Rent & Utilities $10,800 4.2% $6,900 2.9%
Communications (Phone/Intemet)* $1,640 0.6% $920 0.4%
Furnishings & Equipment $0 0.0% $0 0.0%
Maintenance & Repairs $0 0.0% $0 0.0%
Insurance $2,057 0.8% $2,057 0.9%
Postage & Printing $500 0.2% $1,175 0.5%
Supplies $600 0.2% $900 0.4%
Memberships, Dues & Subscriptions $265 0.1% $440 0.2%
Travel Expenses $1,476 0.6% $1,280 0.5%
Education & Training $600 0.2% $450 0.2%
Other Expenses $224 0.1% $527 0.2%
Operating Contingencies $12,750 5.0% $11,750 5.0%
Loan Fund Expenses
Interest Expenses $50,250 19.7% $42,085 17.9%
Loan Origination & Collection Costs $6,500 2.5% $3,232 1.4%
Total Expenses $255,000 100.0% $235,000 100.05TO
4:12 PM San Luis Obispo CountyHousing Trust Fund Attachment 3
9
01/13/10 Balance Sheet
Accrual Basis As of December 31,2009
Dec 31,09
ASSETS
Current Assets
Checking/Savings
1-Operating Accounts
Operating Checking-040 325,158.86
Total l-0perating Accounts 325,158.86
2-Loan Fund Accounts
Loan Collection-705 16,096.90
Loan Disbursement-691 1.85
Total 24-can Fund Accounts 16,098.75
Total Checking/Savings 341,257.61
Accounts Receivable
1110•Accounts receivable 100.00
Total Accounts Receivable 100.00
Other Current Assets
Misc.Receivable-MCSC 92.70
Prepaid Insurance-D&0 1,136.67
Prepaid Insurance-Liability 701.70
Prepaid Rent 600.00
Prepaid Workers'Comp Ins 685.66
Total Other Current Assets 3,216.73
Total Current Assets 344,574.34
Other Assets
Notes/loans receivables
Loan 5001-Family Care Network 216,059.70
Loan 5002-SLONP Housing 470,450.28
Loan 5005-HASLO Loan 285,000.00
Loan 5006-Laurel Creek Apts 335,234.06
Loan 5007-VSB(FATCO) 1,212,229.15
Loan 5008-Edna Islay 300,000.00
Total Notes/loans receivables 2,818,973.19
Total Other Assets 2,818,973.19
TOTAL ASSETS 3,163,547.53
LIABILITIES&EQUITY
Liabilities
Current Liabilities
Credit Cards
Visa-4502 -10.43
Total Credit Carla -10.43
Other Current Liabilities
Accrued Interest Payable
Accrued Interest-Adrian#2 81.25
Accrued Interest-Cath HC West 1,875.00
Accrued Interest-MCB 2,334.83
Accrued Interest-RCIF$25K 62.50
Accrued Interest-Seton Fund 40.68
Accrued Interest-St Francis 1,125.00
Accrued Interest-SSM 4.96
Total Accrued Interest Payable 5,524.22
Accrued Vacation 4,527.93
Payroll&Payroll Taxes Payable
2125•United Way Payable 10.00
2100•Payroll&PR Taxes Payable 5,138.60
Total Payroll&Payroll Taxes Payable 5,148.60
Page 1
Attachment
4:12 PM San Luis Obispo County Housing Trust Fund ,
01/13/10 Balance Sheet
Accrual Basis As of December 31,2009
Dec 31,09
Total Other Current Liabilities 15,200.75
Total Current Liabilities 15,190.32
Long Term Liabilities
NP Adrian Dom Sister#2 65,000.00
NP Catholic HC West 500,000.00
NP Mission Community 3450 997,500.00
NP Rabobank 5001 100,000.00
NP Rabobank CDFI 100,000.00
NP Religious Communities-$125K 125,000.00
NP Sachs Foundation 200,000.00
NP Seton Fund 16,271.74
NP Sisters of St.Francis 50,000.00
NP Religious Communities-$25K 25,000.00
NP Sisters of Sorrowful Mother 25,000.00
Total Long Term Liabilities 2,203,771.74
Total Liabilities 2,218,962.06
Equity
3100•Restricted-Loan Fund
3101 •Realtor Fund 125,000.00
3102•Moylan Fund 71,585.62
3104•CDFI Fund 500,000.00
Total 3100•Restricted-Loan Fund 696,585.62
3300•Board Designated Accounts
3005•Reserve for Loan Losses 80,000.00
3015•Unrestricted Moylan Fund 4,678.00
Total 3300•Board Designated Accounts 84,678.00
3500•Unrestrict(retained earnings) -381,709.47
Net Income 545,031.32
Total Equity 944,585.47
TOTAL LIABILITIES&EQUITY 3,163,547.53
Page 2
Attachment 3
4:12 Pee San Luis Obispo County Housing Trust Fund
01113110 Profit& Loss Budget Performance
Accrual Basis December 2009
Dec 09 Budget 9 Over Budget Jan-Dec 09 YTD Budget 9 Over Budget Annual Budget
Ordinary IncomalExpenso
Income
Interest on Deposits 378.87 1,189.00 -810.13 9,808.89 14,267.00 -4,448,11 14,257.00
Imamst on Loans
Loan Interest-5001 FCN 76520 8,894.70
Loan Interest-5002 SLOW 2,380.08 27,949.80
Loan Interest-5005'HASLO 1,187.49 11,122.89
Loan interest-5008 LCA 1,419.77 2.635.04
Interest on Loans-Other 0.00 6,800.00 -6,800.00 0.00 70,243.00 -70243,00 70243.00
Total Interest on Loans 5,752.64 8,800.00 -1.047.46 50,602.43 70,243.00 -19,640.57 70243.00
Loan Origination Fee 3.445.00 28.865.00
Contributed support
4010•Individual Contributions 200.00 45820
4210•Corporatalbuslness grants 0.00 37,728.15 35,000.00 2,728.15 35,000.00
4230•Foundationitrust grants 0.00 25,000.00 10,000.00 15,000.00 10.000.00
4520•Federal grants 500,000.00 500,000.00
4540•Local government grants 47,500.00 14,000.00 33,500.00 100,153.75 105,500.00 5,346.25 105,500.00
Total Contributed support 547,700.00 14,000.00 533,700.00 663,340.10 150,500.00 512,840.10 150,500.00
Total Income 557276.41 21,989.00 535,287.41 752,616.42 235,000.00 517,616.42 235,000.00
Expense
6560•Salary and Payroll Taxes
6561•Administrative Assistant 1,829.75 20,071.75
6562•Executive Director 7,280.00 87,360.00
6560•Salary and Payroll Texas-Other 0.00 9269.00 -9,209.00 0.00 111228.00 -111228.00 111228.00
Tote16560.Salary and Payroll Texas 9,109.75 9,269.00 -159.25 107,431.75 111,228.00 -3,796.25 111,228.00
Payroll TaxestEmployee Benefits
6550-Payroll Taxes 862.68 8.137.57
7227-Workers Comp Ins 62.34 954.66
7230.403B-Company Contribution 450.61 5,361.50
7220-Health Insurance 1282.62 15,807.58
Payroll TaxeslEmpioyoe Bendbs-Other 0.00 2,761.00 -2,751.00 0.00 33,056.00 -33.056.00 33,056.00
Total Payroll TaxestEmployee Benefits 2,658.25 2,751.00 -92.75 30261.31 33,066.00 -2,794.69 33,056.00
Loan Fund Expenses
Interest Expenses
Adrian Dominican Sisters 92 162.50 1,950.00
Catholic Healthcare Wort 1,250.00 15,000.90
Rabobank 1.333.33 1,333.33
Mission Community Bank 2,334.83 5,603.64
Sachs Foundation 500.00 6,000.00
Salon Enablement Fund 40.68 693.57
Sisters of SL Francis 125.00 1,500,00
Religious Communities 62.50 750.00
Sister;of Sorrowful Mother 41.66 416.60
Pagel
C3 -/9
A,ttachment 3
4:12 PM San Luis Obispo County Housing Trust Fund
01„1110 Profit& Loss Budget Performance
Accrual Basis December 2009
Doc 09 Budget $Over Budget Jan-Dec 09 YTD Budget S Over Budget Annual Budget
Interest Expenses-Other 0.00 3,507.00 x,507.00 0.00 42.084.00 -42,084.00 42,o84.00
Total Interest Expenses 5,850.60 3,507.00 2,343.50 33,247.14 42,084.00 $,836.86 42,084.00
Loan Origination Expense
MCS Doc Prep Foes 600.00 1,200.00
Other Loan Origination Costs 430.00 783,00
VERAChock Firvhon Reports 0,00 435.00
Total Loan Origination Expense 1,030.00 2,418.00
Loan Servicing Expanse 299.55 312.00 .12.45 2,560.97 3,232.00 871.03 3,232.00
Total Loan Fund Expera es 7,180.05 3.819.00 3,361.05 38,226.11 45,316.00 -7,089.89 45,316.00
Professional Service Expenses
Legal&Accounting Services 4,400.92 900.00 3,500.92 16,412.58 16,900.00 -487.42 16.900.00
Professional Services 525.00 175.00 350.00 675.00 2,100.00 -1,425.00 2,100.00
Total Professional Service Expenses 4.925.92 1,075.00 3,850.92 17,087.58 19.000.00 -1,912.42 19,000.00
Office Expanses
Communications 78.53 77.00 1.53 951:91 924.00 27.91 924.00
Education and Training 0.00 225.00 450.00 -225.00 450.00
Furnishings S Equipment 0.00 600.00
Insurance 173.48 176.00 -2.52 .2,082.00 2,057.00 25.00 2,057.00
Mmhrships,Rues&Subscriptions 0.00 190.00 -190.00 89.05 440.00 x50.05 440.00
Other Expenses 1.695.32 43.00 1,652.32 2,054.45 527.00 1,527.46 527.00
Printing 8 Postage 80.12 97.00 .16.88 131.75 1,175.00 -1,043.25 1,175.00
8210-Raet 8 Miles 500.00 575.00 .75.00 6.825.00 6.900.00 -75.00 6,900.00
8110•Supplies 0.00 75.00 -75.00 618.88 900.00 -281.12 900.00
Travel Expense 0.00 103.00 -103.00 1,099.41 1,280.00 -180.59 1,280.00
Total Office Expenses 2,527.45 1,336.00 1,191.45 14.578.35 14,653.00 -74.65 14,653.00
Total Expourse 26.401.42 18,250.00 8,151.42 207,585.10 223,253.00 -15,667.90 223,253.00
Net Ordinary Income 530,874.99 3,739.00 527,135.99 545.031.32 11,747.00 533,284.32 11,747.00
Other lncomelExponse
Other Expanse
Operating Contingency 0.00 978.00 -978.00 0.00 11,747.00 -11,747.00 11,747.00
Total Other Expense 0.00 978.00 .978.00 0.00 11.747.00 -11.747.00 11,747.00
Net Other Intorno 0.00 -978.00 978.00 0.00 .11,747.00 11,747.00 -11,747.00
Nat Income $10,874.99 2,761.00 528,113.99 545,031.32 0.00 545,01132 0.00
Pago 2
C3 ic;2O
Attachment
4:13 PM San Luis Obispo County Housing Trust Fund
01/13110 Statement of Cash Flows
December 2009
Dec 09
OPERATING ACTIVITIES
Net Income 530,874.99
Adjustments to reconcile Net Income
to net cash provided by operations:
1110•Accounts receivable -100.00
Misc.Receivable-MCSC -92.70
Misc.Receivable-CCRH 275.00
Prepaid Insurance-D&O -1,136.67
Prepaid Insurance-Liability 70.15
Prepaid Rent -600.00
Prepaid Workers'Comp Ins 62.34
Prepaid Expenses 4,237.50
Accounts payable -5,627.94
Visa-4502 -285.43
Accrued Interest Payable:Accrued Interest-Adrian#2 -325.00
Accrued Interest Payable:Accrued Irrte, st-Cath HC West -2.500.00
Accrued Interest Payable:Accrued Interest-MCB 2,334.83
Accrued Interest Payable:Accrued Interest-RCIF$25K 62.50
Accrued Interest Payable:Accrued Interest-Sachs Found -2,500.00
Accrued Interest Payable:Accrued Interest-Seton Fund 40.68
Accrued Interest Payable:Accrued Interest-St.Francis 125.00
Accrued Interest Payable:Accrued Interest-SSM -208.34
Payroll&Payroll Taxes Payable:2125•United Way Payable -40.00
Payroll&Payroll Taxes Payable:2100•Payroll&PR Taxes Payable 274.56
Net cash provided by Operating Activities 524,941.47
INVESTING ACTIVITIES
Notes/loans receivables:Loan 5002-SLONP Housing 5.390.92
Notesnoans receivables:Loan 5006-Laurel Creek Apts 5,192.15
Notes/loans receivables:Loan 5007-VSB(FATCO) -212,229.15
Notes/loans receivables:Loan 5008-Edna Islay -300,000.00
Net cash provided by Investing Activities -501,646.08
FINANCING ACTIVITIES
NP Rabobank 5001 100,000.00
3100•Restricted-Loan Fund:3102•Moylan Fund 200.00
3100•Restricted-Loan Fund:3104•CDFI Fund 500,000.00
3500•Un.esb ict(retained earnings) -500,200.00
Net cash provided by Financing Activities 100,000.00
Net cash increase for period 123,295.39
Cash at beginning of period 217,962.22
Cash at end of period 341,257.61
Page 1
-at
Attachment 3
SAN LUIS OBISPO COUNTY
HOUSING TRUST FUND
INDEPENDENT AUDITORS'REPORT
AND
FINANCIAL STATEMENTS
For the Year Ended
December 31,2008
�3 �a�
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
INDEPENDENT AUDITORS' REPORT AND FINANCIAL STATEMENTS
For the Year Ended December 31,2008
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT....................................................................................................2
FINANCIAL STATEMENTS
Statement of Financial Position..............................:......................................................................3
Statementof Activities...................................................................................................................4
Statement of Changes in Net Assets.............................................................................................5
Statement of Functional Expenses................................................................................................6
Statementof Cash Flows..............................................................................................................7
NOTES TO FINANCIAL STATEMENTS..............................................................................................8-12
_ I Attachment
•tti _' ii p 'moi'✓;='r"tl°`•1'{, yEiT;F(EC) AI;HLiCF.CCOINTP.NT
SLI"-I'., )(fl-SAN LUIS(iWNN),CA 931101
Fi.'05
Independent Auditors' Report
To the Board of Directors
San Luis Obispo County Housing Trust Fund
San Luis Obispo, Califomia
We have audited the accompanying statement of financial position of San Luis Obispo County
Housing Trust Fund (a nonprofit organization), as of December3l, 2008, and the related
statements of activities, functional expenses, changes in net assets, and cash flows for the year
then ended. These financial statements are the responsibility of the organization's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of San Luis Obispo County Housing Trust Fund, as of December 31, 2008, and
the results of its net assets and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
CROSBY COMPANY
Certified Public Accountant
September 30, 2009
C3 -a
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
STATEMENT OF FINANCIAL POSITION
December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents $ 832,639
Grant receivable 10,000
Interest receivable 3,757
Prepaid expenses 2,435
Notes receivable (current portion) 62,563
Total current assets 911,394
Non-current assets:
Notes receivable(net current portion) 703,289
Total assets $ 1,614,683
LIABILITIES
Current liabilities.-
Accounts
iabilities:Accounts payable $ 778
Accrued payroll liabilities 4,891
Accrued interest payable 3,216
Accrued vacation payable 4,528
Notes payable(current portion) 12,587
Total current liabilities 26,000
Long-tenn liabilities:
Lines of credit 232,857
Notes payable (net current portion) 956,272
Total long-term liabilities 1,189,129
Total liabilities 1,215,129
NET ASSETS
Unrestricted
Designated 84,678
Undesignated 146,369
Permanently restricted 168,507
Total net assets 399,554
Total liabilities and net assets $ 1,614,683
The accompanying notes are an integral part of these financial statements.
3
C3 -as_
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
STATEMENT OF ACTIVITIES
For The Year Ended December 31,2008
Operating
Fund Permanently
Unrestricted Restricted Totals
REVENUE AND SUPPORT
Grants $ 83,946 $ - $ 83,946
Contributions 35,608 5,011 40,619 .
In-kind donations 720 720
Interest income 72,332 72,332
Total revenue 192,606 5,011 197,617
EXPENSES
Program services 137,972 -137,972
Management and general 34,783 34,783
Fundraising 13,025 13,025
Total expenses 185,780 185,780
Change in net assets $ 6,826 $ 5,011 $ 11,837
The accompanying notes are an integral part of these financial statements.
4
3-fib
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
STATEMENT OF CHANGES IN NET ASSETS
For The Year Ended December 31,2008
Operating
Fund Permanently
Unrestricted Restricted Totals
NET ASSETS-December 31, 2007 $ 224,221 $ 163,496 $ 387,717
Change in net assets 6,826 5,011 11,837
NET ASSETS-December 31, 2008 $ 231,047 $ 168,507 $ 399,554
The accompanying notes are an integral part of these financial statements_
5
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
STATEMENT OF FUNCTIONAL EXPENSES
For The Year Ended December 31, 2008
Program Management
FUNCTIONAL EXPENSES Services & General Fundraising Totals
Salary and wages $ 66,495 $ 13,299 $ 8,866 $ 88,660
Payroll taxes and benefits 18,723 3,745 2,496 24,964
Rent 5,869 1,174 782 7,825
Training and meetings 214 43 28 285
Accounting and legal 1,693 15,237 16,930
Automobile and travel expense 475 95 63 633
Professional services 3,856 244 162 4,262
Office expense 399 80 53 532
Pension expense 1,038 208 138 1,384
Printing 62 13 8 83
Insurance 1,544 309 206 2,059
Interest 35,923 35,923
Telephone and communications 1,217 243 162 1,622
Miscellaneous 130 26 17 173
Dues and subscriptions 334 67 44 445
Total functional expenses $ 137,972 $ 34,783 $ 13,025 $ 185,780
The accompanying notes are an integral part of these financial statements.
6
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 11,837
Adjustment to reconcile change in net assets to net
cash provided by operating activities:
Decrease in grant receivable 37,096
Decrease in interest.receivable 3,656
Increase in prepaid expenses (46)
Decrease in notes receivable 738,684
Decrease in accounts payable (1,084)
Increase in accrued payroll tax liabilities 2,002
Decrease in accrued interest payable (2,311)
Increase in accrued vacation payable 184
Total adjustments 778,181
Net cash provided by operating activities 790,018
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment on notes payable 227,216
Net cash used by financing activities 227,216
NET CHANGE IN CASH 562,802
CASH AT BEGINNING OF YEAR 269,837
CASH AT END OF YEAR $ 832,639
Supplemental information:
Cash paid for interest was$38,234 for the year ended December 31, 2008.
There was no cash paid for income taxes for the year ended December 31, 2008.
The accompanying notes are an integral part of these financial statements.
7
Attachment
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
NOTE 1: HISTORY AND ORGANIZATION
The San Luis Obispo County Housing Trust Fund is a California non-profit, non-stock, public benefit
corporation that was incorporated in 2003, under the laws of the State of California.The mission of the San
Luis Obispo Housing Trust Fund is to increase the supply of affordable housing for very low, low and
moderate income residents of San Luis Obispo County, including households with special needs. Rather
than directly develop or manage affordable housing, the Housing Trust Fund provides financing and
technical assistance to private developers, non-profit corporations and local governments to support the
creation and preservation of affordable housing.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements are presented on the accrual basis of accounting. The financial resources are
maintained in accordance with the principles of fund accounting.
The unrestricted operating fund is utilized to record contributions, fund-raising,fees and other forms
of unrestricted revenue and expenditures related to the general operations and fund-raising efforts of
the Organization
The permanently restricted fund represents funds subject to restrictions of gift instruments requiring
in perpetuity that the principal be invested or used to provide housing loans and only the income, or
some portion thereof, be used for operations.
Cash and Cash Equivalents
Cash and cash equivalents includes all liquid investments including money market accounts and
certificates of deposits. The Organization maintains all cash and cash equivalents with two banks, one of
which exceeds the Federal Deposit Insurance Corporation limit, which covers up to $250,000 of the
Organization's combined accounts. Effective October 3, 2008, the FDIC temporarily increased insured
deposits up to$250,000 and is scheduled to return to$100,000 after December 31, 2013.
Contributions
All contributions are considered to be available for unrestricted use unless specifically restricted by the
donor. All pledges receivable and amounts received that are restricted for future periods or donor-
restricted for specific purposes are reported as temporarily restricted.. When the donor stipulated time
restriction ends or a purpose restriction is accomplished, then the restricted net assets are reclassified to
unrestricted net assets and are reported in the statement of support, revenues, allocations and expenses
as net assets released from restriction. If a restriction is fulfilled in the same time period in which the
contribution is received, the contribution is reported as unrestricted.
See accountants'report.
8
(2. 5 -30
Attachment
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
NOTE 2:, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles
require management to make estimates and assumptions that affect certain reported amounts and
disclosures.Accordingly, actual results could differ from those estimates.
Income Tax
San Luis Obispo County Housing Trust Fund is recognized by the Internal Revenue Service as a qualified
section 501(c)(3), non-profit organization, and as such, is not liable for Federal income or State Franchise
tax.
Donated Services
San Luis Obispo County Housing Trust Fund receives donations of time and services from members of
the community and volunteers. The value of these donations is not reflected in the accompanying
financial statements since no objective basis is available to measure the value of these services. In-
kind donations of equipment, commercial services and supplies used directly by the organization are
valued at their appraised values at the time of the gift.
Rental Agreement
The San Luis Obispo Housing Trust Fund has entered into a rental agreement for office space on a
month to month basis.
Concentration of Revenue Risk
The Organization's three largest grants provided approximately 36% of the Organization's support.
NOTE 3: NOTES RECEIVABLE
Notes receivable are carried at unpaid principal balances, net of any allowance for note losses.
Management's periodic evaluation of the adequacy of the allowance is based on past loan experience.
Currently, management has determined that an allowance for doubtful accounts would be immaterial
based on the Organization's credit policies, prior collection experience, and current economic conditions.
Loans are considered impaired if full principal or interest payments are not anticipated in accordance with
the contractual terms. The Organization's practice would be to charge off any note or portion of a note
when the loan is determined by management to be uncollectible due to the borrower's failure to meet
repayment terms, the borrower's deteriorating financial condition, or for other reasons. Based on these
loan agreements, there has been no evidence of default on any of the notes receivable.
Interest on the notes receivable is recognized over the term of the note and is calculated using the
contractual interest rates indicated on each note on principal amounts outstanding.
See accountants' report.
9
63 -21
Atta
nchment
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
NOTES TO FINANCIAL STATEMENTS
December 31,2008
NOTE 4: LINES OF CREDIT
The San Luis Obispo County Housing Trust Fund established a ten year, $1,000,000 line-of-credit,on April
5, 2004, with Mission Community Bank. This loan is secured by the assignment of deeds of trust from
future loans made by the San Luis Obispo Housing Trust Fund. The loan is due February 20, 2014 and
the current balance outstanding of December 31, 2007 was$232,857. Interest is currently fixed at 3.0%.
The interest rate will adjust to the Wall Street Journal prime minus 1.0% on February 20, 2009 and then
remain fixed through the term of the loan.
The San Luis Obispo County Housing Trust Fund established a ten year, $1,000,000 line-of-credit, on July
15, 2005, with Mid-State Bank and Trust, now Rabobank, N.A. This loan is also secured by the
assignment of deeds of trust from future loans made by the San Luis Obispo Housing Trust Fund. The
loan is due June 30, 2015 and there was no balance outstanding at December 31, 2008. Interest is
calculated using a 5.0%fixed rate until June 30, 2010. At that time, the interest rate will adjust to the Wall
Street Journal prime minus 1.0%and remain fixed for the balance of the loan term.
NOTE 5: NOTES PAYABLE
Lender Current Lona-Term Total
Rabobank, N.A.,for$100,000,dated January 12,
2007, unsecured, interest is computed at 0.00/6 fixed
rate,due January 15,201.2. $ - $ 100,000 $ 100,000
Adrian Dominican Sisters,for$65,000,dated
December 15, 2007, unsecured, interest is
computed at 3.0%fixed rate, payable quarterly,due
December 15, 2012. - 65,000 65,000
The Erich & Hannah Sachs Foundation,for
$200,000,dated March 15, 2006, unsecured,
interest is computed at 3.0%fixed rate, payable
semi-annually,due March 15, 2011. - 200,000 200,000
Seton Enablement Fund, Inc.,for$50,000,dated
March 1,2006, unsecured, interest is computed at
3.0%fixed rate, payable quarterly,due March 1,
2011. 12,587 16,272 28,859
Catholic Healthcare West;for$500,000, dated April
1,2006, unsecured, interest is computed at 3.0%
fixed rate, payable quarterly, due March 31,2011. - 500,000 500,000
Sisters of St. Francis of Philadelphia,for$50,000,
dated April 21, 2006, unsecured, interest is
computed at 3.0%fixed rate, payable annually, due
April 14, 2011. - 50,000 50,000
See accountants'report.
10
03 -3�
Attachment 3
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
NOTE 5: NOTES PAYABLE(Continued)
Sisters of St Joseph in California Los Angeles
Province,for$25,000,dated May 8,2007,
unsecured,interest is computed at 3.0%fixed rate,
payable semi-annually, due May 8,2012. - 25,000 25,000
Totals $ 12,587 $ 956,272 $ 968,859
The required note principal and interest payments are as follows:
Year ending December 31, Princi6al Interest Total
2009 $ 12,587 $ 25,925 $ 38,512
2010 12,969 25,543 38,512
2011 753,303 14,725 768,028
2012 190,000 2,325 192,325
Totals $ ® $ 68,518 $ 1,037,377
NOTE 6: EMPLOYEE BENEFITSIRETIREMENT PLAN
San Luis Obispo County Housing Trust Fund offers an Internal Revenue Code Section 403(b) deferral
program which the Organization contributes up to 5% of each qualified employees salary to a money
purchase pension plan. Both full and part time employees become eligible for this beneft after completing
six months of employment Total pension expense for the year ended December 31, 2008 was$1,384.
The Organization also offers an Internal Revenue Code Section 125 health care direct reimbursement
program. The program is available to employees eligible for health plan benefits, effective October 1,
2003.
See accountants'report.
11
Attachment
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
NOTE 7: NET ASSETS
At December 31, 2008, net assets were restricted by donors or designated by the Organization as follows.
Unrestricted net assets:
Designated for losses/contingencies $ 80,000
Designated for Moylan Fund 4,678
Undesignated 146,369
Total unrestricted net assets 231,047
Permanently restricted for loan funds 168,507
Total permanently restricted net assets 168,507
Total net assets $ 399,554
See accountants'report.
12
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Attachment 3
S A N • L U I S • O B I S P O • C O U N T Y
MMFUM
• HOUMiG
._............_......................._._._.._ •NOOSrNO FOR ALL' -
Sources of Operating Support
The San Luis Obispo County Housing Trust Fund has raised funds from numerous sources to support our
operations! The following table lists the sources and amounts of our grants, donations and contributions,
including commitments plus earned income since incorporating in February 2003.2 .
Source of Funds3 2003-4 2005 2006 2007 2008 2009 Combined
Government Agencies
County of San Luis Obispo $158,000 $67,200 $91,454 $108,546 $48,446 $49,054 $522,700
City of San Luis Obispo $30,000 $30,200 $30,000 $30,000 $0 $30,000 $150,200
City of Atascadero $5,000 $5,000 $5,000 $0 $13,000 $7,000 $35,000
City of Arroyo Grande $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $30,000
City of Grover Beach $0 $10,000 $0 $10,000 $5,000 $5,000 $30,000
City of Pismo Beach $5,000 $5,000 $5,000 $5,000 $5,000 $2,000 $27,000
Housing Authority of SLO $20,000 $0 $0 $0 $0 $0 $20,000
City of Paso Robles $0 s0 $5,000 $0 $7,500 $5,000 $17,500
City of Morro Bay $1,000 $0 $1,000 $1,000 $0 $2,100 $5,100
Total Government $224,000 $122,400 $142,454 $159,546 $83,946 $105,154 $837,500
Banks and Lenders
Bank of America $0 $10,000 $25,000 $15,000 $10,000 $10,000 $70,000
Union Bank of California' $0 $10,000 $15,000 $0 $10,000 $5,000 $40,000
Rabobank $5,000 $5,150 $200 $200 $200 $15,000 $25,750
US Bank(formerly Downey Savings) $0 $0 $3,000 $0 $4,000 $5,000 $12,000
Washington Mutual Bank $0 $0 $10,000 $0 $0 $0 $10,000
Los Padres Bank $0 $1,150 $1,000 $1,200 $200 $0 $3,550
First Bank of SLO $1,000 $1,150 $0 $0 $0 $0 $2,150
Mission Community Bank $1,000 $150 $200 $200 $200 $0 $1,750
Heritage Oaks Bank $0 $1,150 $200 $0 $0 $0 $1,350
The Mortgage.House,Inc. $1,000 $0 $200 $0 $0 $0 $1,200
Santa Lucia Bank $0 $1,000 $0 $0 $0 $0 $1,000
Coast National Bank $0 $150 $200 $0 $0 $0 $350
Total Banks&Lenders $8,000 $29,900 $55,000 $16,600 $24,400 $35,000 $169,100
Other Funders
Community Action Partners(EOC) $50,000 $0 $0 $0 $0 $0 $50,000
SLO County Community Foundation $5,000 $200 $0 $0 $10,000 $0 $15,200
United Way of SLO County $7,500 $2,413 $2,000 $0 $0 $0 $11,913
Others(including In-Kind)° $2,752 $7,584 $1,247 $5,305 $1,928 $0 $17,888
Total Other Funders $65,252 $10,197 $3,247 $5,305 $11,928 $0 $95,729
Interest and Fee Income $958 $17,800 $65338 $86,103 $72;332 $79,700 $322,231
Total Operating Support $298,210 $180,297 $266,039 $267,554 $192,606 $219,854 $1,424,560
As of 12-15-09 including commitments
This handout does not include contribution to,or investments in,our revolving loan funds. Most banks have also supported our loan funds.
2 The Housing Trust Fund was incorporated on February 28,2003 but did not become fully operational until October of that year. Revenues for 2003
and 2004 are combined.
3 Funds actually received in 2003 through 2008 based on audited financial statements. Funds received or committed in 2009. SLO County
committed$47.500 in 2009 plus$2,054 committed in 2008 and paid in 2009.
°to-Kind contributions are only included to the extent that they are reported in our audits.
71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦vvww.slochtf.org
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Attachment 3
S A N • L U I S • O B I S P O • C O U N T Y,
I WHOUSNG
TMZT FUM
...._..__..................................................................I-, .NOOSING FOA ALL. ...........
Sources of Lending Capital
The San Luis Obispo County Housing Trust Fund is a Community Development Financial Institution
(CDFI)that provides financing and technical assistance to increase the supply of affordable housing
throughout our community.
The HTF currently has more than$3 million in private lending capital available to finance affordable
housing projects. These funds come from a variety of sources including lines of credit from local
banks,a California CDFI Tax Credit investment 2, the Sachs Foundation, five religious communities and
investments from Catholic Healthcare West,which owns two local hospitals.
The HTF was also awarded a$500,000 grant from the CDFI Fund of the U.S. Treasury. Local Realtors
helped us obtain two grants totaling$125,000 from the California Association of Realtors. In addition,
more than 300 individuals, firms and organizations have contributed to our George Moylan Affordable
Housing Fund.3
Source of Loan Funds Characteristics of Funds Amount
Mission Community Bank 10 year revolving line of credit(2.25%) $1,000,000
Rabobank 10 year revolving line of credit(5%) $1,000,000
CDFI Fund of the U.S. Treasury4 Grant $500,000
Catholic Healthcare West 5 year balloon payment loan(3%) $500,000
Erik&Hannah Sachs Foundation 5 year balloon payment loan(3%) $200,000
California Association of Realtors Grants $125,000
Religious Communities Investment Fund 5 year balloon payment loan(3%) $125,000
Rabobank 5 year CDFI Tax Credit Investment(0%) $100,000
George Moylan Affordable Housing Fund Contributions $76,014
Adrian Dominican Sisters 5 year balloon payment loan(3%) $65,000
Sisters of St. Francis of Philadelphia 5 year balloon payment loan (3%) $50,000
Religious Communities Investment Fund 5 year balloon payment loan(3%) $25,000
SSM International Finance, Inc. 5 year balloon payment loan (2%) $25,000
Seton Enablement Funds 5 year amortizing loan(3%) $19,454
Current Lending Capital $39810,468
Rev 12-10-09
Funds are only drawn on the Mission Community Bank and Rabobank lines of credit as they are used for loans. A$1
million guidance line from First Bank of San Luis Obispo isnot listed. A$180,000 investment from the Monarch Fund
(administered by Calvert Foundation)and a$35,000 investment from the Adrian Dominican Sisters have been fully repaid.
2 More information is online at Uwww.insurance.ca.uov/0250-insurers/0700-coin/edti-tae-credit-prouanicfmU.
s The George Moylan Affordable Housing Fund was established in October 2005 to honor the work of one of our founding
directors. Additional information is available online at Uwwwslocht'_or-,movlan-fund_htmU.
4 Approved 10/2/09,but not yet funded.
s The Seton Fund is a program of the Sisters of Charity of Cincinnati. This investment was originally$50,000.
71 Zaca Lane, Suite 130,San Luis Obispo, CA 93401 ♦ (805)543-5970♦www.slochtf.org
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Fiscal Status of Affordable Housing Ft.._. Attachmerrt 4
Revenues, Expenditures and Changes in Fund Balance
Revenues Expenditures Fund Balance
BEGIN funds
Fiscal Year In-Lieu Fees Interest Rents reimbursement Total Note 2 Beginning Ending
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
200405 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 8,700 28,700 7,500 270,000 314,900 3,342,000 3,784,900 757,800
Cumulative Total $5,437,900 $710,500 $6,427,300 $5,669;500 $757,800
Commitments
Reserved for Laurel Creek(Tumbling Waters)project to provide match for BEGIN funds (65,000)
3591 Sacramento#53 (14,900)
Judson Terrace Termite Repair (45,000)
3592/3594 Broad Street(TMHA) (5;300)
3301 Rockview 68,000
Total Commitments 198,200
Net Available for New Programs at May 10, 2010 $559,600
Value of real property assets 484,800
Total Fund Value Net Comittments $1,044,400
NOTES
1. 2000-01 is the first year that in-lieu fees were received.
2. Expenditure Summary To-Date
PurposeYear
2002-03 Judson Terrace Lodge 215,000
2003-04 Operating Support:SLO County Housing Trust Fund 30,000
2004-05 Operating Support:SLO County Housing Trust Fund 30,000
2006-07 People's Self-Help Housing:Villas at South Higuera 500,000
2006-07 Operating Support:SLO County Housing Trust Fund 60,000
(Two-Year Commitment)"
2007-08 Housing Authority,Humbert Project 600,000
2008-09 First time home buyers'program 34,400
2008-09 Habitat for Humanity 332,500
2008-09 SLO County Housing Trust 30,000
2008-09 3591 Sacramento#53(Note 3) 310,100
2008-09 Laurel Creek BEGIN funds 185,500
2009-10 Wineman hotel 1,500,000
2009-10 First time home buyers'program(refund) (9,300)
2009-10 Laurel Creek BEGIN funds 449,500
2009-10 Housing Authority,Humbert Project* 109,900
2009-10 Aids Support Remodel 82,800
2009-10 Village at Broad 1,034,400
2009-10 3592/3594 Broad Street HA Note 3 174,700
Total 5,669,500
Originally allocated for North Chorro project
$30,000 of these funds were disbursed in 2007-08.
3. City-owned property represents fund assets
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Attachment 5
City Council Resolution No. (2010 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO APPROVING A $30,000 AFFORDABLE HOUSING FUND AWARD FOR
THE SLO COUNTY HOUSING TRUST FUND
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California, on July 6, 2010 for the purpose of
considering a request by the SLO County Housing Trust Fund for Affordable Housing Fund
(AHF) assistance in the amount of$30,000; and
WHEREAS, the projects and programs supported by the SLO County Housing Trust
Fund 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. Findings. The City Council does hereby make the following findings in
support of the proposed Affordable Housing Fund award:
1. Eligibility: Although the proposal does not create any units on its own, the HTF improves
the City's capacity for providing affordable housing, provides technical assistance to City
staff and developers of affordable housing in the City, and HTF advocates for affordable
housing projects, consistent with City policy. The proposed award is consistent with City
General Plan policy(Housing Element Program 2.13 and 6.13) and past practice.
2. Need: The HTF contributes to affordable housing at the very-low, low and moderate income
ranges.
3. Suitability: This criteria would be evaluated for any future HTF affordable housing projects
in the City of San Luis Obispo that also receive an AHF grant.
4. Timing: Funding should be provided now so that HTF has adequate funds to cover operating
expenditures during the 2010 calendar year.
5. Financial Effectiveness: The City's AHF award would leverage significant additional
funding from other sources. As shown in Attachment 2, the top twenty contributors to the
HTF have provided over $1.5 million in operating support and equity for new loans since
2003.
City Council Resolution No. _,2010 Series) Attachment 5
Page 2
6. Readiness: 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 2. Affordable Housing 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 operations.
Upon motion of , seconded by
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 6`h day of July, 2010.
Mayor David F. Romero
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
hristine Dietrick `
City Attorney