TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICIP, Development Services Director
PREPARED BY: Carl Stiehl, City Planner
SUBJECT:
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Murrieta Housing Authority SB 341 Annual Report for FY 2023/24 and Finding of Exemption from CEQA
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RECOMMENDATION
recommendation
Receive and file the Murrieta Housing Authority SB 341 Annual Report for Fiscal Year 2023/24;
Direct staff to file the document with the State Department of Housing and Community Development and place it on the City’s website; and
Find that the action is not a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378.
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PRIOR ACTION/VOTE
On April 5, 2011, the City Council adopted Resolution No. 11-2699, establishing the Murrieta Housing Authority and transferring the housing assets of the former Redevelopment Agency to the Housing Authority (Vote: 4-0-1).
In October 2013, Senate Bill 341 was signed into law requiring housing successor agencies to annually report on their respective low and moderate-income housing asset fund.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
In 2011, the State legislature passed Assembly Bills X1 26 and 1484 to dissolve all redevelopment agencies, including the Murrieta Redevelopment Agency, as of February 1, 2012. As a result, local successor agencies and oversight boards were established to wind down the business of the dissolved agencies. During the dissolution process, the City Council designated the Murrieta Housing Authority as the successor entity for carrying out the housing functions of the City of Murrieta Redevelopment Agency. The City Council acts as the Housing Authority Oversight Board for the City of Murrieta. The responsibilities of the Housing Authority include maintaining the City’s affordable housing units and annual reporting obligations, which are primarily performed via contract with RSG Consulting.
Senate Bill 341 requires successor agencies to prepare an annual report of their housing activities by December 31, of each year. The attached report itemizes the assets of the Murrieta Housing Authority (Authority), both real property and funds. The ending balance for Fiscal Year 2023/24 in the Housing Asset Fund is approximately $299,997 primarily composed of loan repayment and interest revenue received over the past year. These funds may only be utilized for affordable housing and administration of the Housing Authority and cannot be utilized for General Fund purposes. The Housing Authority closed a land lease, financial loan, and regulatory agreement in the previous reporting year as part of the approval of the Adams Avenue Affordable Project with National CORE to provide a loan of $6.142 million for the first phase of the project for the development of affordable housing.
The Housing Successor Portfolio includes two properties (three others were previously sold) and six loans receivable with a portfolio value of approximately $14.55 million. The attached report provides the status of these assets. Per Government Code § 33334.16 and § 34176.1(e), the Authority was required to initiate activities to develop affordable housing on these properties within five years ending in September 2022, or these properties had to be sold, and the proceeds deposited into the Housing Authority Fund to fund other affordable housing activities. The Authority met the September 2022 deadline, and the disposition of the properties is described below.
In January 2019, staff brought forward for the Authority’s consideration and direction options for the disposition of the properties pursuant to the above-referenced Government Code sections. The Authority’s direction was to move forward with the disposition of the B Street and Jefferson South properties to generate additional funding in the Housing Authority Fund to support and assist with the construction of affordable housing development on the Adams Avenue property. Both the Jefferson South and B Street property dispositions closed in November 2021, and February 2022, respectively. The proceeds from the sales of these properties were deposited into the Housing Authority Fund to be allocated for the development of affordable housing on the Adams Avenue property with National CORE.
The Adams Avenue Affordable Housing Project, Oak View Ranch, including the Disposition and Development Agreement (DDA), was approved by the City Council on June 7, 2022. The finalized DDA was signed on August 5, 2022, in advance of the September 2022, due date to initiate activities to develop affordable housing on the site pursuant to State law. Therefore, the provisions of SB 341 related to these City property dispositions, and the September 2022, due date were satisfied, and no further actions are necessary related to dispositions by the City as long as the Oak View Ranch project with National CORE is fully funded and built. The project was successful in receiving low-income tax credits, and the first phase of the project (120 units) was fully funded and is now under construction on the front half of the site. The second phase of the project (80 units) on the back half of the site is anticipated to receive tax credits in the current or next tax credit cycle with the State and is planned to start construction next year.
ENVIRONMENTAL
The proposed action is not a "project" as defined in CEQA Guidelines Section 15378 because the action involves accepting and filing an annual financial and property asset report with a state agency as required under State law (Senate Bill 341). This determination is predicated on Section 15004 of the guidelines, which provides direction to lead agencies on the appropriate timing for environmental review. Any future development of the property assets referenced in the report may require the preparation of an environmental document in accordance with State CEQA Guidelines.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
ATTACHMENT
1. Murrieta Housing Authority Senate Bill 341 Annual Report for Fiscal Year 2023/24