| | | | | | | | Agenda Item - 4.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Kingsley Okereke
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Joint Item with the Housing Authority: Approval of the appropriation of funds for the Garden Grove Housing Authority Administrative Expenses. (Action Item) | Date: | 6/28/2016 |
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| | | | | | | | OBJECTIVE
The purpose of this memorandum is to request that the Garden Grove City Council and the Garden Grove Housing Authority ("Authority") appropriate funds from the balance in Fund 510 for Fiscal Year 2015-2016 to cover the portion of the Authority's administrative expenses related to the administration of property and other programs following changes in California Redevelopment Law and the eventual dissolution of the Garden Grove Agency for Community Development ("Former Agency") |
| | | | | | | | BACKGROUND
On March 27, 2007, the Authority and the Former Agency approved a Regulatory Agreement, Affordable Housing Agreement, and the transfer of several properties (the "Properties") in the Civic Center area from the Former Agency to the Authority. The Properties were transferred to the Authority because Redevelopment Law mandated that the Former Agency develop or sell the Properties within a period of 10 years. The Authority executed a Regulatory Agreement and an Affordable Housing Agreement (collectively, the "Agreements") with the Former Agency in which the Properties were rented to low and very low income households in addition to administrating and maintaining the Properties. |
| | | | | | | | DISCUSSION
The Authority's Special Legal Counsel provided a legal review in which the Authority, as the administrator and property owner is eligible to recover administrative costs related to overseeing the Properties. Administration costs deemed allocable to this function are calculated at $20,065.38, and will need to be allocated from the existing balance to Fund 510, Package 2535. |
| | | | | | | | FINANCIAL IMPACT
A portion of the Authority's administration costs attributable to the additional responsibility assumed by the Authority($20,065.38) can be paid from balance in Fund 510. There is no impact to the General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve and appropriate $20,065.038 in Fund/Package 510/2535 for Fiscal Year 2015-2016, to cover allocable Garden Grove Housing Authority administrative costs.
It is recommended that the Garden Grove Housing Authority:
- Approve and appropriate $20,065.38 in Fund/Package 510/2535 for Fiscal Year 2015-2016 to cover allocable portion of Garden Grove Housing Authority administrative costs.
By: Carlos Marquez, Sr. Real Property Agent
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