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CALENDAR FOR THE BOARD OF COMMISSIONERS
BOARD CHAMBERS ROOM 107, COUNTY ADMINISTRATION BUILDING
651 PINE STREET
MARTINEZ, CALIFORNIA 94553-1229
CANDACE ANDERSEN, CHAIR
MARY N. PIEPHO, VICE CHAIR
JOHN GIOIA
KAREN MITCHOFF
FEDERAL D. GLOVER
FAY NATHANIEL
JANNEL GEORGE-ODEN
JOSEPH VILLARREAL, EXECUTIVE DIRECTOR, (925) 957-8000
PERSONS WHO WISH TO ADDRESS THE BOARD DURING PUBLIC COMMENT OR WITH RESPECT TO
AN ITEM THAT IS ON THE AGENDA, WILL BE LIMITED TO THREE (3) MINUTES.
The Board Chair may reduce the amount of time allotted per speaker at the beginning of each item
or public comment period
depending on the number of speakers and the business of the day.
Your patience is appreciated.
A closed session may be called at the discretion of the Board Chair.
Staff reports related to open session items on the agenda are also accessible on line at
www.co.contra-costa.ca.us.
ANNOTATED AGENDA & MINUTES
February 9, 2016
1:30 P.M. Convene and call to order.
CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.5 on the following agenda ) -
Items are subject to removal from the Consent Calendar by request from any
Commissioner or on request for discussion by a member of the public. Items removed
from the Consent Calendar will be considered with the Discussion Items.
DISCUSSION ITEMS
D. 1 PUBLIC COMMENT (3 Minutes/Speaker)
There were no requests to speak at Public Comment.
D. 2 CONSIDER Consent Items previously removed.
February 9, 2016 Official Minutes 1
D.3 CONSIDER approving the 2016-2017 Annual Agency Budget; and adopting Public
Housing Authority Board Resolution No. 5198 approving the Budget in the form
prescribed by the U.S. Department of Housing and Urban Development.
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
Closed Session
A. CONFERENCE WITH LABOR NEGOTIATORS (Govt. Code Section 54957.6(a))
1. Agency Negotiators: Fran Buchanan and Shaunesy Behrens
Employee Organizations: Public Employees Union, Local No. 1
2. Agency Negotiators: Fran Buchanan and Joseph Villarreal
Unrepresented Employees: All unrepresented agency management employees and all other
unrepresented agency employees
There were no announcements from Closed Session.
ADJOURN
Adjourned today's meeting at 2:10 p.m.
CONSENT ITEMS:
C.1 AUTHORIZE the Executive Director to execute a contract with Xerox Corporation to
lease copiers and printers to the agency and to be provided copier and printer maintenance
and supplies for a period not to exceed five years.
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
February 9, 2016 Official Minutes 2
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.2 ACCEPT the financial and program compliance audit report for the period April 1,
2014 through March 31, 2015, prepared by Harn & Dolan, Certified Public Accountants,
Walnut Creek, California.
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.3 RECEIVE the Housing Authority of the County of Contra Costa’s rolling annual
public housing occupancy report for the period ending November 30, 2015.
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.4 ADOPT Resolution No. 5197 to approve collection loss write-offs in the public
housing program in the amount of $18,823.43 for the quarter ending December 31, 2015.
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
C.5 RECEIVE the Housing Authority of the County of Contra Costa’s investment report
for the quarter ending DECEMBER 31, 2015.
February 9, 2016 Official Minutes 3
Commissioner John Gioia ABSENT
Commissioner Candace Andersen AYE
Commissioner Mary N. Piepho AYE
Commissioner Karen Mitchoff ABSENT
Commissioner Federal D. Glover AYE
Commissioner Fay Nathaniel ABSENT
Commissioner Jannel George-Oden AYE
GENERAL INFORMATION
Persons who wish to address the Board of Commissioners should complete the form provided for
that purpose and furnish a copy of any written statement to the Clerk.
All matters listed under CONSENT ITEMS are considered by the Board of Commissioners to be
routine and will be enacted by one motion. There will be no separate discussion of these items
unless requested by a member of the Board or a member of the public prior to the time the
Commission votes on the motion to adopt.
Persons who wish to speak on matters set for PUBLIC HEARINGS will be heard when the Chair
calls for comments from those persons who are in support thereof or in opposition thereto. After
persons have spoken, the hearing is closed and the matter is subject to discussion and action by the
Board.
Comments on matters listed on the agenda or otherwise within the purview of the Board of
Commissioners can be submitted to the office of the Clerk of the Board via mail: Board of
Commissioners, 651 Pine Street Room 106, Martinez, CA 94553; by fax: 925-335-1913; or via the
County’s web page: www.co.contracosta.ca.us, by clicking “Submit Public Comment” (the last
bullet point in the left column under the title “Board of Commissioners.”)
The County will provide reasonable accommodations for persons with disabilities planning to
attend Board meetings who contact the Clerk of the Board at least 24 hours before the meeting, at
(925) 335-1900; TDD (925) 335-1915. An assistive listening device is available from the Clerk,
Room 106. Copies of taped recordings of all or portions of a Board meeting may be purchased
from the Clerk of the Board. Please telephone the Office of the Clerk of the Board, (925)
335-1900, to make the necessary arrangements.
Applications for personal subscriptions to the monthly Board Agenda may be obtained by calling
the Office of the Clerk of the Board, (925) 335-1900. The monthly agenda may also be viewed on
the County’s internet Web Page: www.co.contra-costa.ca.us
The Closed session agenda is available each month upon request from the Office of the Clerk of the
Board, 651 Pine Street, Room 106, Martinez, California, and may also be viewed on the County’s
Web Page.
February 9, 2016 Official Minutes 4
AGENDA DEADLINE: Thursday, 12 noon, 12 days before the Tuesday Board meetings.
February 9, 2016 Official Minutes 5
RECOMMENDATIONS
1. CONSIDER Approving the 2016-2017 Annual Agency Budget; and
2. CONSIDER Adopting PHA Board Resolution No. 5198 approving the Budget on HUD Form 52574
BACKGROUND
In compliance with the United States Department of Housing and Urban Development's (HUD) regulations, staff has
prepared the Housing Authority of the County of Contra Costa (HACCC) proposed FY 2016/2017 budget for the
Board’s approval. The proposed budget presented here projects federal funding at the level that HUD is currently
advancing the Authority. This amount has been calculated by HUD and has been determined to be the most
reasonable estimate we have to go on at this time. HACCC's actual funding levels for the calendar year won't be
determined until sometime after October, once the federal budget is approved and national program utilization levels
are calculated. However, because funding for the Housing Choice Voucher (HCV) program is adjusted quarterly and
annual funding is fairly predictable for the Certificate and the State and Local programs, the public housing budget is
the only area with significant uncertainty at this time.
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
D.3
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:2016-2017 Annual Agency Budget
February 9, 2016 Official Minutes 6
BACKGROUND (CONT'D)
>
The following are select comments on this year’s budget:
Budgeted revenue (mostly federal funding) is up by over $4.8 million as more families are now housed
under HACCC's various programs.
The majority of this gain ($4.0 million) is due to increased housing assistance payments (HAP) in the
HCV program.
Program costs are up by $2,523,576 from last year. This increase is also primarily attributable to rising
housing costs and a slight increase in the number of families served by HACCC under the HCV and
Certificate programs.
HACCC will provide housing assistance to over 8,200 families in its various programs.
6,434 vouchers are funded (6,781 is HACCC's official allocation).
A full-time DA Fraud Investigator continues to be funded for the HCV program.
The proposed budget anticipates a loss of $223,438 in the public housing program.
This loss is primarily attributable to a recent change in HUD regulations requiring housing authorities to
pay for security/police ($645,060) and resident services ($217,009) using operations revenue instead of
capital grants.
One police officer (Pittsburg), two Sheriff's Deputies (North Richmond and Rodeo) and three resident
services staff (North Richmond) are funded in the proposed budget.
Public housing capital funds are projected at the same level as in 2015.
HACCC’s proposed overall budget is shown below in comparison to last year’s approved budget along with the
projected change in reserve levels. Following the overview, the budget is broken out for each of HACCC’s four
major program areas: Housing Choice Vouchers, Public Housing, State and Local programs and Certificate
Programs.
Attached to this Board Order are HACCC’s Agency Budget Program Summary and Consolidated Analysis of
Agency Reserves. A more detailed budget is available for viewing at HACCC’s administrative office.
Agency Overview:
HACCC Agency
Summary 2016-2017 Budget 2015-2016 Budget Change
Revenue $109,724,315 $104,854,022 $4,870,293
Expenditures $ 21,847,920 $ 21,710,029 $ 137,891
Program Costs, Debt
Services & Other Capital
Improvements $ 86,817,392 $ 84,293,816 $ 2,523,576
To Reserves $ 1,059,003 ($ 1,149,823)$ 2,208,826
As a reminder, almost all reserves are restricted for use within each program. The designation of restricted or
unrestricted reserves merely indicates that the funds are obligated for special use within the program (restricted) or
that they can be used for any purpose tied to the program (unrestricted). The only exception to this rule is the
unrestricted balance within the State and Local Fund. This balance can be used in any of HACCC’s programs.
HACCC Consolidated
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/16 $ 7,825,666 $ 8,351,664 $ 16,177,330
This Budget $ 1,295,375 ($ 236,372)$ 1,059,003
Projected to 3/31/17 $ 9,121,041 $ 8,115,292 $17,236,333
February 9, 2016 Official Minutes 7
Housing Choice Voucher Overview:
The HCV program provides rental assistance to families in the private market. HACCC qualifies families for the
program based on income. Eligible families find a home in the private rental market and HACCC provides them
with a subsidy via a Housing Assistance Payments (HAP) contract with the property owner. HAP is paid by
HACCC directly to the owner. Through its HCV program, HACCC is authorized to provide affordable housing
assistance to as many as 6,781 families. Due to funding and regulatory restrictions, HACCC is projected to house
an average of only 6,434 families per month under the proposed budget, an increase of 18 from the fiscal year
prior.
HCV Summary 2016-2017 Budget 2015-2016 Budget Change
Revenue $ 89,735,463 $84,931,760 $ 4,803,703
Expenditures $ 6,560,369 $ 6,343,537 $ 216,832
Program Costs, Debt
Services & Other Capital
Improvements $ 81,739,456 $79,246,338 $ 2,493,118
To Reserves $ 1,435,638 ($ 658,115)$ 2,093,753
HCV Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/16 $ 6,039,229 $ 4,436,626 $ 10,475,855
This Budget $ 1,368,084 $ 67,554 $ 1,435,638
Projected to 3/31/17 $ 7,407,313 $ 4,504,180 $ 11,911,493
Explanation of Change:
As stated above, the $4,803,703 increase in revenue and the $2,493,118 in costs are almost entirely related to
increases in housing assistance payment subsidies due to an increase in the number of families served by HACCC
along with rising rental costs.
Public Housing & Capital Fund Overview:
HACCC owns and manages 1,179 public housing units at 16 different sites throughout the County. Revenue to
manage these properties is derived from tenant rents and an operating subsidy received from HUD. Because tenant
rents are set by income and not the actual operating costs of the properties, most public housing properties across
the nation are not able to charge enough rent to meet operating needs. HUD's operating subsidy is designed to
offset some of the shortfall in actual operating costs versus tenant rents. HUD also provides annual Capital Fund
grants via formula to approximately 3,300 housing authorities. Capital Fund grants may be used for the
development, financing, and modernization of public housing developments and for management improvements.
Public Housing
Summary - All Units 2016-2017 Budget 2015-2016 Budget Change
Revenue $ 10,934,181 $10,793,079 $ 141,102
Expenditures $ 10,313,199 $10,139,655 $ 173,544
Program Costs, Debt
Services & Other Capital
Improvements $ 844,419 $ 853,068 ($ 8,649)
To Reserves ($ 223,437)($ 199,644)$ 23,793
February 9, 2016 Official Minutes 8
Public Housing by Asset
Management Property (AMP)Area 2016-2017
Revenue
2016-2017
Expenditure
2016-2017
Residual/(Loss)
AMP-1 & 8 Ca001,Ca011,Ca013 Martinez,
Bay Point $ 1,194,133 $ 1,120,431 $ 73,702
AMP-2 Ca045a,Ca045b San Pablo $ 1,140,629 $ 1,060,745 $ 79,884
AMP-3 Ca004,Ca008,Ca012 Brentwood,
Oakley $ 924,273 $ 860,857 $ 63,416
AMP-4 Ca010 Rodeo $ 2,355,391 $ 2,537,180 ($ 181,790)
AMP-5 & 9 Ca003,Ca005,Ca015 Pittsburg &
Antioch $ 2,463,248 $ 2,733,649 ($ 270,401)
AMP 6 & 7 Ca006,009a,Ca009b North
Richmond $ 1,132,090 $ 1,349,310 ($ 217,220)
Program Totals*$ 9,209,764*$ 9,662,172*($ 452,409)*
* Operations only, does not include CFP
Public Housing Reserves Restricted Reserve
Balance
Unrestricted Reserve
Balance Reserve Balance
Projected 3/31/16 $ -0-$ 1,322,122 $ 1,322,122
This Budget $ -0-($ 223,437)($ 223,437)
Projected to 3/31/17 $ -0-$ 1,098,685 $ 1,098,685
Explanation of Change:
The increase in revenue of $141,102 from last year's budget is due to an increase in lease-up at Bayo Vista in
Rodeo and an increase in projected tenant rental income at all properties.
As mentioned above, the projected loss of $223,438 in the public housing program is primarily due to a recent
change in HUD regulations requiring housing authorities to pay for security/police ($645,060) and resident
services ($217,009) out of operations instead of the capital fund. Every property that has these services shows a
loss, every property that does not have these services shows a profit. Some combination of cuts in staffing levels
and/or services will have to be made in order to balance the public housing budget.
Housing Certificate Programs Overview:
HACCC administers two separate Housing Certificate Programs; Shelter-Plus Care and Moderate Rehabilitation
(Mod Rehab). The Shelter-Plus Care Program provides rental assistance for hard-to-serve homeless persons with
disabilities in connection with supportive services. HACCC operates the housing and financial portions of the
program and the County’s Homeless Program operates the supportive services and casework portions.
Approximately 306 clients are assisted under this program. The Mod Rehab program was designed in 1978 as an
expansion of the rental certificate program. Mod Rehab was designed to provide low-cost loans for the
rehabilitation of rental units in an effort to upgrade and preserve the nation's housing stock. In return, the owner
agrees to provide long-term affordable housing for low income families. The program was repealed in 1991 and
no new projects are authorized for development. HACCC administers 28 Mod Rehab units.
February 9, 2016 Official Minutes 9
Certificate Programs
Summary 2016-2017 Budget 2015-2016 Budget Change
Revenue $ 3,682,487 $ 3,844,402 ($ 161,915)
Expenditures $ 302,909 $ 326,369 ($ 23,460)
Program Costs, Debt
Services & Other Capital
Improvements $ 3,383,427 $ 3,556,464 ($ 173,037)
To Reserves ($ 3,849)($ 38,431)$ 34,582
Certificate Programs
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/16 $ -0-$ -0-$ -0-
This Budget ($ 3,839)($ 10)($ 3,849)
Projected to 3/31/17 ($ 3,839)($ 10)($ 3,849)
Explanation of Change:
The primary change in the Certificate Programs are related to relatively small shifts in HAP funding and expense.
State and Local Overview:
HACCC administers a variety of programs and activities that are either not HUD funded or that involve
non-restricted HUD funds. Currently, HACCC is the managing general partner for two tax credit projects
(DeAnza Gardens & Casa Del Rio) and contracts with the City of Antioch to run their rental rehabilitation
program. Additionally, HACCC receives management fees for administering HUD programs.
State & Local Summary 2016-2017 Budget 2015-2016 Budget Change
Revenue $ 5,372,185 $5,284,782 $ 87,403
Expenditures $ 4,671,444 $4,900,468 ($ 229,024)
Program Costs, Debt
Services & Other Capital
Improvements $ 850,090 $ 637,947 $ 212,143
To Reserves $ (149,349)($ 253,633)$ 104,284
State & Local Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/16 $ 1,786,437 $ 2,589,330 $ 4,375,767
This Budget ($ 68,870)($ 80,479)($ 149,349)
Projected to 3/31/17 $ 1,717,567 $ 2,508,851 $ 4,226,417
Explanation of Change:
The $87,403 increase in revenue is a result of Shelter Plus Care overhead costs being funded from the HCV
program. The $229,024 reduction in expenditures is a result of unfunded staffing positions. The $212,143 is
an increase in projected program and operating costs associated for the tax credit properties.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board not adopt Resolution No. 5198 approving HACCC’s budget for fiscal year 2016-2017, HACCC
February 9, 2016 Official Minutes 10
Should the Board not adopt Resolution No. 5198 approving HACCC’s budget for fiscal year 2016-2017, HACCC
will not be in compliance with HUD regulations. Further, HACCC would not be in compliance in fulfilling its
financial and programmatic obligations to program participants and property owners, as well as HACCC
employees, contractors and vendors.
CLERK'S ADDENDUM
AGENDA ATTACHMENTS
Budget Program Summary
Consolidated Analysis of Agency Reserves
Resolution 5198
MINUTES ATTACHMENTS
Signed Resolution No. 5198
February 9, 2016 Official Minutes 11
February 9, 2016 Official Minutes 12
February 9, 2016 Official Minutes 13
February 9, 2016 Official Minutes 14
February 9, 2016Official Minutes15
RECOMMENDATIONS
ADOPT Resolution No. 5197 to approve collection loss write-offs in the public housing program in the amount of
$18,823.43 for the quarter ending December 31, 2015.
BACKGROUND
This collection loss is for the public housing program. The requested collection loss write-off reflects a total of 6
accounts that are recommended for write-off. The following chart illustrates the collection losses per quarter for the
past four quarters:
Conventional Program
12/14 $18,823.43
09/15 $15,738.57
06/15 $16,060.46
03/15 $58,637.66
Prior to submission of an account for write-off, staff makes every effort to collect money owed to HACCC. Once an
account is written-off, it may be referred to a collection agency for further repayment efforts. Past participants who
owe HACCC, or any other housing authority, money may be denied admission to the public housing or housing
choice voucher programs in the future unless the debt is repaid. Past participants can be denied admission in the future
even if their debt has been written off.
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:Collection Loss Write-Off for the Quarter Ending December 31, 2015
February 9, 2016 Official Minutes 16
BACKGROUND (CONT'D)
>
FISCAL IMPACT
Uncollectable accounts impact on the budget by reducing total rental income. At the end of each quarter, the
Housing Authority of the County of Contra Costa (HACCC) writes off those accounts that have been determined
to be uncollectable. Once an account is written off, it can be turned over to a collection agency. For the quarter
ending December 31, 2015, the collection loss write-off total is $18,823.43.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to adopt Resolution No. 5197 these accounts would inflate the total
accounts receivable for HACCC and present an inaccurate financial picture.
CLERK'S ADDENDUM
AGENDA ATTACHMENTS
Resolution 5197
Collection Loss Write-Off for QE December 31, 2015
MINUTES ATTACHMENTS
Signed Resolution No. 5197
February 9, 2016 Official Minutes 17
February 9, 2016 Official Minutes 18
February 9, 2016 Official Minutes 19
February 9, 2016Official Minutes20
RECOMMENDATIONS
AUTHORIZE the Executive Director to execute a contract for services with Xerox Corporation to lease copiers and
printers to the agency and to be provided copier and printer maintenance and supplies for a period not to exceed five
years.
BACKGROUND
HACCC currently has 16 copiers located throughout its offices. These copiers were purchased in 2008 as either used
or refurbished products. HACCC has been responsible for the maintenance and supplies associated with the copiers
since the machines were purchased. Most of the machines have reached their lifecycle and have begun to breakdown
or malfunction with regularity. They have become a significant drain on resources both in terms of repair costs and
declines in productivity.
In researching replacement options, it was determined that leasing the machines would present a better option than
purchasing for HACCC. Leasing allows HACCC to obtain newer machines at a lower cost, provides more frequent
servicing of the copiers/printers at a lower cost, and, the leasing agent will provide all copier supplies such as toner
and replacement parts as part of the lease. Additionally, if a machine continuously malfunctions, a replacement will
be installed at no cost to the agency. HACCC will continue to use copiers/printers that it owns and that are still
functional.
In preparing to bid out this contract, staff determined that HACCC could obtain more advantageous pricing by
linking to a recently executed contract for copiers/printers and supplies between the City of Martinez and
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:Contract with Xerox Corporation For Leasing Copiers/Printers, Supplies & Maintenance
February 9, 2016 Official Minutes 21
BACKGROUND (CONT'D)
Xerox Corporation. By doing so, HACCC did not have to incur the costs of advertising and administering the RFP.
HUD requires housing authorities to competitively procure goods and services, a process normally undertaken by
each individual agency. However, HUD permits housing authorities to award contracts to firms selected by a state or
local governmental agency in a competitive solicitation process. The state or local government's selection process
must meet HUD's procurement guidelines and must have been for the same goods and services sought by the housing
authority. HUD encourages housing authorities to procure goods and services in this manner in order to "foster
greater economy and efficiency..."
The City of Martinez, a local governmental agency, is required to follow strict procurement procedures that meet or
exceed HUD's procurement guidelines. On May 28, 2014, the City of Martinez issued a competitive Request For
Proposals (RFP) for leasing of copiers and copier services and, on June 23, 2014, received sealed bids from three
interested bidders.
Xerox Corporation was selected from the three bidders and was awarded a competitively solicited contract to lease
copiers and provide copier services to the City of Martinez's government offices for a period of five years from April
29, 2015 through April 28, 2020.
Staff is recommending that we link onto the City of Martinez's procurement and award a contract to Xerox
Corporation to lease thirteen copiers/printers to HACCC. The contract will also provide HACCC with copier services
and supplies for the term of the contract. The total cost of the proposed contract will not exceed $250,000 without
additional Board approval.
FISCAL IMPACT
The cost of this contract will not exceed $250,000 and is funded by grants that the Housing Authority of the County
of Contra Costa (HACCC) receives from the United States Department of Housing and Urban Development (HUD).
The anticipated yearly amount of the contract falls within the amount presently budgeted for this purpose.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to award the contract to Xerox Corporation, HACCC will be required
to go out to bid for copiers and printers. This process will be lengthy and expensive and it is unlikely that HACCC
will be able to obtain the level of discount provided by Xerox to the City of Martinez.
CLERK'S ADDENDUM
February 9, 2016 Official Minutes 22
RECOMMENDATIONS
ACCEPT the financial and program compliance audit report for the period April 1, 2014 through March 31, 2015,
prepared by Harn & Dolan CPA’s, Walnut Creek, California.
BACKGROUND
The U. S. Department of Housing & Urban Development (HUD) requires every housing authority to have an annual
independent audit conducted of its financial statements and business activities as well as of compliance with program
requirements for the public housing, Housing Choice Voucher and Shelter-Plus Care programs. HACCC engaged
Harn & Dolan to prepare the audit report for the fiscal year ending March 31, 2015.
Harn & Dolan’s audit identified no findings and no material weaknesses in either the financial or program
compliance portions of the audit. The complete audit and the management letter are attached.
FISCAL IMPACT
Funding was provided for the audit contract in the Housing Authority of the County of Contra Costa’s (HACCC)
Fiscal Year 2015/2016 Consolidated Operating Budget.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to accept the financial audit report as performed by the certified public
accountancy firm of Harn & Dolan, it would become necessary to expend additional funds to either redo the financial
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.2
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:Financial And Program Audit For Fiscal Year Ending March 31, 2015
February 9, 2016 Official Minutes 23
CONSEQUENCE OF NEGATIVE ACTION (CONT'D)
>audit report or contract with another certified public accountancy firm to conduct an audit of HACCC’s finances
and programs.
CLERK'S ADDENDUM
ATTACHMENTS
Management Letter
Audit Report
February 9, 2016 Official Minutes 24
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
November 20, 2015
To the Board of Commissioners
and Executive Director
Housing Authority of the
County of Contra Costa
Martinez, California
We have audited the financial statements of the business-type activities of the Housing Authority of the
County of Contra Costa, component unit of the County of Contra Costa, California (the Authority) for the
year ended March 31, 2015. We did not audit the financial statements of the Authority’s component units
which were audited by other auditors and the reports were furnished to us. Professional standards require
that we provide you with information about our responsibilities under generally accepted accounting
standards, Government Auditing Standards, and OMB Circular A-133, as well as certain information related
to the planned scope and timing of our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards and OMB Circular A-133
As stated in our engagement letter dated December 18, 2014, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with your
oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting
principles. Our audit of the financial statements does not relieve you or management of your
responsibilities.
In planning and performing our audit, we considered the Housing Authority of the County of Contra Costa,
California’s internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinions on the financial statements and not to provide assurance on the internal
control over the financial reporting. We also considered internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on internal control
over compliance in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants. However, providing an opinion on compliance with those provision is not an objective
of our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about
the Authority’s compliance with the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major
federal programs for the purpose of expressing an opinion on the Authority’s compliance with those
requirements. While our audit provided a reasonable basis for our opinion, it does not provide a legal
determination on the Authority’s compliance with those requirements.
Generally accepted accounting principles provide for certain required supplementary information (RSI) to
supplement the basic financial statements. Our responsibility with respect to the Management Discussion
and Analysis (MD&A), which supplements the basic financial statements, is to apply certain limited
February 9, 2016 Official Minutes 25
Housing Authority of the County of Contra Costa
November 20, 2015
Page 2
procedures in accordance with generally accepted auditing standards. Our procedures consisted of inquiries
of management regarding the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do
not express an opinion or provide any assurance on the RSI.
We have been engaged to report on the Schedule of Expenditures of Federal Awards, the Financial Data
Schedule and the Statement of Completed Capital Fund Program Project, which accompany the financial
statements but are not RSI. Our responsibility for this supplementary information, as described by
professional standards, is to evaluate the presentation of the supplementary information in relation to the
financial statements as a whole and to report on whether the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole. We made certain inquiries of
management and evaluated the form, content, and method of preparing the information to determine that the
information complies with accounting principles generally accepted in the United State of America, the
methods of preparing it has not changed from the prior period, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
We have not been engaged to report on the Schedule of Relevant Statistics which accompanies the financial
statements but is not RSI. Our responsibility with respect to this other information in documents containing
the audited financial statements and auditor’s report does not extend beyond the financial information
identified in the report. We have no responsibility for determining whether this other information is properly
stated. This other information has not been audited and we did not express an opinion or provide any
assurance on it.
Planned Scope and Timing of the Audit
The audit included examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit involves judgement about the number of transactions to be
examined and the areas to be tested.
Our audit included obtaining an understanding of the entity and its environment, including internal control,
sufficient to assess the risks of material misstatement of the financial statements and to design the nature,
timing, and extent of further audit procedures. Material misstatement may result from (1) errors, (2)
fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental
regulations that are attributable to the entity or to acts by management or employees acting on behalf of the
entity. We noted no material misstatement that required communication to you during our audit.
Professional standards also require that we communicate to you the following information related to our
audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Authority are described in Note 1 to the financial statements. No new
February 9, 2016 Official Minutes 26
Housing Authority of the County of Contra Costa
November 20, 2015
Page 3
accounting policies were adopted and the application of existing policies were not changed during the fiscal
year ended March 31, 2015. As described in Note 1.S. to the financial statements, the Authority considered
the effect that new GASB pronouncements would have on the financial statements. Specifically, the
Authority considered the effects of GASB No 68 Accounting and Financial Reporting for Pensions - an
amendment of GASB Statement No 27, and anticipates that the full implementation of this Statement will
have a material impact on the financial statements beginning next fiscal year. We noted no transactions
entered into by the Authority during the year for which there is a lack of authoritative guidance or consensus.
All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management’s knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimates affecting the Authority’s financial statement were:
• Allowance for uncollectible tenant accounts receivable: Management’s estimate is based on past
experience and subsequent collections. We inquired with management on the need for the amount of
the allowances.
• Depreciation on capital assets: Management’s estimate of the useful lives of its capital assets is based
on historical information about similar assets, the length of time the assets are expected to meet service
and technology demands, and the Authority’s maintenance policy for the assets. These estimates have
remained consistent for several years. We evaluated the key factors and assumption used to develop the
depreciation estimates in determining that they are reasonable in relation to the financial statements
taken as a whole.
• OPEB liability: Management’s estimate is derived from actuarial valuations obtained from experts. We
agreed the OPEB liability and the other information contained in the OPEB footnote to the amounts
reported in the actuarial report dated January 23, 2015, for the period beginning April 1, 2014, by
Nicolay Consulting Group.
• Noncurrent liability for insurance claims: Management’s estimate is derived from advice received from
its insurance carriers.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most significant disclosure affecting the financial statements were:
(1) The disclosure of the related parties - component units, both blended and discreetly presented, in Note
14 to the financial statements. This disclosure describes the Authority’s relationship, including financial,
with its component units
(2) The disclosure of the retirement plan in Note 11 to the basic financial statements. This disclosure
discusses the pension plan, its funding policy, and the Authority’s estimated unfunded liability as of
December 31, 2014. This footnote is significant due to the requirement of agencies to implement GASB
Statement No 68 - Accounting and Financial Reporting for Pensions, beginning, for the Authority, next
fiscal year. This GASB Statement requires all agencies to record any unfunded liability as a liability to
the financial statements.
February 9, 2016 Official Minutes 27
Housing Authority of the County of Contra Costa
November 20, 2015
Page 4
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, none of the misstatements detected as a
result of audit procedures and corrected by management were material, either individually or in the
aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For the purpose of this letter, a disagreement with management as a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. We are pleased to report that no such disagreement arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated November 20, 2015.
Management Consultation with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the Authority’s financial statements or a determination of the type of auditors’
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the government unit’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition of our retention.
This information is intended solely for the use of the Board of Commissioners and management of the
Housing Authority of the County of Contra Costa and is not intended to be, and should not be, used by
anyone other than these specified parties.
Very Truly Yours,
Harn & Dolan, CPA’s
February 9, 2016 Official Minutes 28
HOUSING AUTHORITY
OF THE COUNTY OF CONTRA COSTA
(A Component Unit of the County of Contra Costa)
BASIC FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2015
(Including Auditors’ Report Thereon)
February 9, 2016 Official Minutes 29
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
TABLE OF CONTENTS
Page
Independent Auditors’ Report 1
Managements Discussion and Analysis 4
Financial Statements:
Statement of Net Position - Proprietary Funds 12
Statement of Revenues, Expenses, and Changes in Fund
Net Position - Proprietary Funds 14
Statement of Cash Flows - Proprietary Funds 15
Notes to the Basic Financial Statements 17
Required Supplementary Information 53
Supplementary Information:
Schedule of Expenditures of Federal Awards 55
Notes to the Schedule of Expenditures of Federal Awards 56
Financial Data Schedule (CA011) 57
Schedule of Relevant Statistics 65
Statement of Completed Capital Fund Program Project 66
Independent Auditors’ Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 67
Independent Auditors’ Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133 69
Status of Prior Audit Findings 71
Schedule of Findings and Questioned Costs 72
February 9, 2016 Official Minutes 30
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
INDEPENDENT AUDITORS’ REPORT
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities of the Housing
Authority of the County of Contra Costa, component unit of the County of Contra Costa, California (the
Authority), as of and for the year ended March 31, 2015, and the related notes to the financial statements,
which collectively comprise the Authoritys basic financial statements as listed in the table of contents. We
did not audit the financial statements of the aggregate discretely presented component units reported in the
financial statements.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit
the financial statements of HACCC Casa Del Rio, Inc, a California Nonprofit Public Benefit Corporation
and CDR Senior Housing Associates, a California Limited Partnership, which represent 15.6%, -4.2% and
0.5%, respectively, of the primary governments assets, net position, and revenue. We did not audit the
financial statements of DeAnza Housing Corporation, a California Nonprofit Public Benefit Corporation
and DeAnza Gardens L.P. a California Limited Partnership, which are combined and reported as discretely
presented component units titled Component Units in the fund financial statements. Those financial
statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar
as it relates to the amounts included for the discretely presented component units and blended component
units - Casa Del Rio Housing is based solely on the reports of the other auditors. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgment, including the assessment
of the risks of material misstatements of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Authoritys preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authoritys
February 9, 2016 Official Minutes 31
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities and
the aggregate discretely presented component units of the Authority, as of March 31, 2015, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managements
discussion and analysis on pages 4 through 11 and schedule of funding progress for OPEB on page 53 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We and the other auditors have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with managements responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Housing Authority of the County of Contra Costa, Californias basic financial statements. The
schedule of relevant statistics is presented for purposes of additional analysis and are not a required part of
the financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for
purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations , and is also not a required part of the
basic financial statements. The accompanying Financial Data Schedules (CA 011) are presented for
purposes of additional analysis as required by Uniform Financial Reporting Standards issued by the U.S.
Department of Housing and Urban Development and are not a required part of the basic financial statements.
Finally, the accompanying Schedule of Completed Capital Fund Program Project is presented for the
purpose of additional analysis as required by the U.S. Department of Housing and Urban Development and
is not a required part of the basic financial statements.
The Schedule of Expenditures of Federal Awards, Financial Data Schedules, and Schedule of Completed
Capital Fund Program Project are the responsibility of management and were derived from and relate
2
February 9, 2016 Official Minutes 32
February 9, 2016 Official Minutes 33
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
The management of the Housing Authority of the County of Contra Costa (the Authority) would like to provide the
readers of the Authoritys financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended March 31, 2015.
The Management Discussion and Analysis (MD&A) is an element of the reporting model adopted by the
Governmental Accounting Standards Board (GASB) in their Statement No. 34 Basic Financial Statements-and
Managements Discussion and Analysis-for State and Local Governments issued in June 1999. Certain comparative
information between the current year and the prior year is required to be presented in the MD&A.
FINANCIAL HIGHLIGHTS
Net position decreased by $3,735,252 (or 21.2%) during 2015 (see Table 1) as a result of current year
activities.
Unrestricted net position (see Table 2) increased $337,151 (or 5.4%) as a result of current year activities.
Total revenue increased by $7.0 million (or 7.5%) as a result of current year activities.
Total expenditures increased $5.7 million (or 5.8%) as a result of current year activities.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as introduction to the Authoritys basic financial statements. The
Authoritys basic financial statements are comprised of three parts as follows: (1) Fund Financial Statements,
(2) Notes to the Basic Financial Statements, and (3) Supplementary Information.
FUND FINANCIAL STATEMENTS
The Fund Financial Statements presentation is similar to the traditional government financial statements. The
statements are the Statement of Net Position, the Statement of Revenue, Expenses, and Changes in Fund Net
Position, and the Statement of Cash Flows. The focus is now on Major Funds, rather than fund types. The
Authoritys funds consist exclusively of Enterprise Funds. Enterprise funds utilize the full accrual basis of
accounting. The Enterprise method of accounting is similar to accounting utilized by the private sector accounting.
Many of the funds administered by the Authority are provided by the Department of Housing and Urban
Development. Others are segregated to enhance accountability and control. GASBs 34 and 37 require individual
enterprise funds to be reported as major funds if total assets, liabilities, revenue, or expenses of that individual fund
exceed 10% or corresponding element total of the Authority as a whole. In the past, the Authority reported four
major funds and an aggregate column for non-major funds. Beginning April 1, 2006, the Authority reported all of
its activities in one major fund titled Housing. The Authoritys mission is to provide affordable housing within
the County of Contra Costa, regardless of grant or program. Therefore, we believe that reporting all activity in one
fund is consistent with this mission and simpler for the readers of the Authoritys report.
The Authoritys activity includes:
Public Housing Under the Public Housing Program, (also titled as Low Rent-Aided Housing) the Authority rents
units that it owns to very low & low-income households. The Public Housing Program is operated under an Annual
Contributions Contract (ACC) with HUD. The ACC provides Operating Subsidy and Capital improvement Grant
4
February 9, 2016 Official Minutes 34
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
funding to enable the PHA to provide the housing at a rent that is based upon 30% of household income or at a flat
rate below market rate.
Public Housing Capital Fund Grant - HUD provides grants for the modernization of the Public Housing Program
units. The modernization is accounted for by each grant, which is merged as a part of the Public Housing Program
totals.
Housing Choice Voucher Program Under the Housing Choice Voucher Program, (hereunder titled as Voucher
Program) the Authority administers the program under an Annual Contributions Contract (ACC) with HUD. The
ACC provides funding to the Authority to provide tenant based rental assistance to program participants. The rental
assistance payment is structured so as the rental payment that the participant is obligated to pay is 30% to 40% of
household income. This is a major federal program.
Casa Del Rio, Associates - Casa Del Rio, Senior Housing Associates (CDR) was formed as a limited partnership
on April 12, 1994, for the purpose of developing, owning and operating an 82-unit affordable housing rental
complex (the project) located in Antioch, California. The Project qualifies for low-income housing tax credits
under Section 42 of the Internal Revenue Service Code. Such projects are regulated under terms of a Regulatory
Agreement, including rent charges, operating methods and other matters. This limited partnership is considered
to be a blended component unit of the Authority. The most recent audits were for the fiscal year ended December
31, 2014. These reports can be obtained from the Authority using the information on page 11.
Casa Del Rio, Incorporated - The general partner of the Casa Del Rio Partnership is HACCC Casa Del Rio, Inc.,
a California public benefit corporation. The officers and Board members of HACCC Casa Del Rio, Inc. are
employees of the Authority, which was the developer of the Project, and is consider a blended component unit of
the Housing Authority. These component units receive separate audit reports performed on a calendar year basis.
The most recent audits were for the fiscal year ended December 31, 2014. These reports can be obtained from the
Authority using the information on page 11.
Shelter Plus Care Program is designed to provide rental assistance and supportive services to homeless and
disabled individuals and their families. It is cooperatively administered by the County Health Services Department
and the Housing Authority of Contra Costa County, and has the capacity to serve roughly 200 households.
Participants receive rental assistance and supportive services funded by the U.S. Department of Housing and Urban
Development.
CDBG Rental Rehabilitation Program (RRP) - Under the RRP, the Authority executes annual funding contract with
various governmental entities to fund the operations of a program that assists rental property owners with
rehabilitation of housing units to help assure a supply of affordable rental apartments and homes for its Section
8/Voucher users and other low-income households. Technical assistance in determining repairs is provided by
Authority staff and below-market-rate loans are made to cover part of rehabilitation costs. Program administrative
costs are shared by the funding providers and the Authority.
Rental Rehabilitation Program (RRP) - Under the RRP, the Authority operates a program that assists rental property
owners with rehabilitation of housing units to help assure a supply of affordable rental apartments and homes for
its Section 8/Voucher users and other low-income households. Technical assistance in determining repairs is
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February 9, 2016 Official Minutes 35
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
provided by Authority staff and below-market-rate loans are made to cover part of rehabilitation costs. Funds from
this program are to supplement the CDBG RRP for loans or administration.
Management Fund & County Programs This program is often referred to as the State and Local Fund. The fund
represents non-HUD resources developed from a variety of activities, including developer fees, management fees,
program cost reimbursement, and other local and non local activities.
Central Office Cost Center - The COCC fund earns revenue from fees and services provided to various federal
programs. The funds earned are considered non-HUD funds and go to cover the overhead and support services
provided to the various federal programs.
Discretely Presented Component Unit:
DeAnza Gardens L.P. (DeAnza) DeAnza was formed as a limited partnership on December 10, 2001 for the
purpose of acquisition, ownership, maintenance, and operation of 180 multi-family affordable rental housing
complex located in Contra Costa County.
The project was built on land owned by and leased from the Housing Authority of the County of Contra Costa (the
Authority). Under the terms of the lease, title to the improvements reverts to the lesser at the end of the 75-year
lease. The Project qualifies for low-income housing tax credits under Section 42 of the Internal Revenue Service
Code. Such projects are regulated under terms of a Regulatory Agreement, including rent charges, operating
methods and other matters.
DeAnza Corporation, Inc. The general partner of DeAnza Gardens L.P. is DeAnza Corporation Inc., a California
public benefit corporation. The officers and Board members of the corporation are separate and apart from the
Housing Authority. The only Board member position in the corporation that represents the Housing Authority is
the Executive Director, who serves as one of the five board positions of the corporation. The Housing Authority
has been designated as the managing general partner.
The DeAnza entities, under HUD REACs direction, are to be considered by the Authority as other organizations
for which the nature and significance of their relationship with the Authority are such that exclusion would cause
the Authoritys financial statements to be misleading or incomplete. As such, the Authority considers these two
entities to be discretely presented component units. These component units receive separate audit reports performed
on a calendar year basis. The most recent audits were for the calender year ended December 31, 2014. These
reports can be obtained from the Authority using the information on page 11.
Also included in the Basic Financial statements are:
Notes to the Financial Statements. The notes provide additional information that is essential to a full
understanding of the data provided in the fund financial statements.
Supplementary Information. Certain information is required to be included in this report by various federal
agencies. This information is included after the notes to the financial statements under the title supplementary
information.
6
February 9, 2016 Official Minutes 36
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
TABLE 1
STATEMENT OF NET POSITION
The following table reflects the condensed Statement of Net Position, for the primary government, compared to
prior year. The Authority is engaged only in Business-Type Activities.
Increase
March 31, 2015 March 31, 2014 (Decrease) %
Current assets $ 8,088,222 $ 7,379,749 708,473 9.60%
Restricted assets 1,165,642 3,838,856 (2,673,214)69.64%
Capital assets, net of depreciation 14,091,150 15,684,971 (1,593,821)10.16%
Other noncurrent assets 3,513,657 3,289,009 224,648 6.83%
Total assets $ 26,858,671 $ 30,192,585 $ (3,333,914) 11.04%
Current liabilities 2,062,908 1,699,091 363,817 21.41%
Payable from restricted assets 684,783 686,256 (1,473)0.21%
Long term liabilities 10,242,231 10,203,237 38,994 0.38%
Total liabilities 12,989,922 12,588,584 401,338 3.19%
Net position:
Net investment in capital assets 6,828,538 8,248,266 (1,419,728)17.21%
Restricted 499,925 3,152,600 (2,652,675)84.14%
Unrestricted 6,540,286 6,203,135 337,151 5.44%
Total net position 13,868,749 17,604,001 (3,735,252)21.22%
Total liabilities and net position $ 26,858,671 $ 30,192,585 $ (3,333,914)11.04%
Major Factors Affecting the Statement of Net Position
The major factor for the reduction to Net Assets was a direct result of HUD changing their funding
procedures. Commencing with the calendar year 2005, Public Housing Authorities (PHAs) received full
disbursement of their HAP allocations. It was the responsibility of the PHAs to maintain any excess HAP
disbursements in their Net Restricted Assets account, for use only for future HAP needs to assist additional
families up to the number of units under contract. PHAs accumulated significant amounts in their Net
Restricted Asset accounts. Beginning in 2008, at Congressional direction, HUD began recapturing this
excess HAP by offsetting the annual allocations with the excess HAP held by PHAs. This change has
reduced the Authoritys Restricted Assets from a high of 13 million dollars in 2009 to our current level of
$499,925. HUD now retains the excess HAP allocations and the Authorities no longer recognize these
excess funds.
7
February 9, 2016 Official Minutes 37
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
Table 2 below presents details on the change in Unrestricted Net Position.
TABLE 2
CHANGE OF UNRESTRICTED NET POSITION
2015 2014
Net gain (loss) before contributions $ (4,237,801) $ (5,765,103)
Adjustments:
Depreciation which does not effect unrestricted net position 2,222,068 2,419,744
Loss on disposal of equipment - 6,427
Expenses paid from restricted accounts 10,450 104,055
Interest expensed, but not paid 78,787 78,787
Interest earned on restricted accounts (1,090) (2,148)
Restricted income (46,501) (64,162)
Use of excess HAP funding - Housing Choice Voucher 2,739,446 2,474,946
Net gain (loss) in unrestricted net position due to operations 765,359 (747,454)
Other receipt (use) of unrestricted net position
Capital additions not covered by capital grant or restricted reserves (125,698) (18,125)
Debt retired (252,880) (240,741)
Casa Del Rio - funding of restricted reserves for current year (49,630) (81,963)
Changes to unrestricted net position 337,151 (1,088,283)
Beginning unrestricted net position balance 6,203,135 7,291,418
Ending unrestricted net position balance $ 6,540,286 $ 6,203,135
While the result of operations is a significant measure of the Authoritys activities, the analysis of the changes in
unrestricted net position provides a clearer change in financial well-being.
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February 9, 2016 Official Minutes 38
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
TABLE 3
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
The following schedule compares the revenues and expenses for the current and previous fiscal year. The Authority
is engaged only in Business-Type Activities.
Actual Budget Actual Budget
March 31, 2015 March 31, 2015 March 31, 2014 March 31, 2014
Operating revenue:
Rental and other $ 8,299,107 $ 8,106,633 $ 7,909,519 $ 5,340,376
Non-operating revenue:
Federal grants and subsidies 90,964,347 87,027,167 84,201,426 85,770,274
Capital contributions 502,549 800,864 754,928 1,608,961
Sale (disposal) of real property - - (6,427) -
Other revenue 202,234 607,300 133,160 3,474,600
Total revenues 99,968,237 96,541,964 92,992,606 96,194,211
Operating expenses:
Administration 11,687,261 12,687,943 11,300,777 12,189,942
Tenant services 435,404 371,928 411,126 353,467
Utilities 1,778,806 2,070,651 1,774,442 1,825,983
Maintenance 4,242,994 4,707,259 4,002,231 4,135,260
General 1,169,321 1,050,701 1,401,472 1,566,021
Housing assistance payments 81,913,236 77,087,819 76,426,454 80,143,300
Depreciation 2,222,068 2,129,024 2,419,744 1,808,985
Non-operating expenses:
Debt-service interest 251,257 252,000 263,395 225,526
Loan amortization 3,142 3,142 3,140 3,142
Total expenses 103,703,489 100,360,467 98,002,781 102,251,626
Changes in net position (3,735,252) (3,818,503) (5,010,175) (6,057,415)
Net position, beginning of the year 17,604,001 14,744,682 22,614,176 20,727,177
Net position, end of the year $ 13,868,749 $ 10,926,179 $ 17,604,001 $ 14,669,762
Major Factors Affecting the Statement of Revenue, Expenses and Changes in Net Position
The budget to actual schedule above includes interfund activity. The actual activity reported above includes
interfund revenue and expenses of $3,068,128, which will therefore differ from amounts reported in the Statement
of Revenue, Expenses, and Changes in Fund Net Position - Proprietary Funds. See also Note 1.E.
The major factor affecting the Statement of Revenue, Expenses, and Changes in Net Assets is related to a change
in the funding procedures currently employed by HUD, which is outlined in the Statement of Net Assets section
above. Now that Restricted Reserves have been recaptured by HUD, the Change in Net Position will become more
stable in the future.
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February 9, 2016 Official Minutes 39
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
CAPITAL ASSETS ANDDEBT ADMINISTRATION
Capital Assets
As of year-end, the Authority had $14.1 million invested, see also Note 6 to the basic financial statements.
TABLE 4
CAPITAL ASSETS
March 31, 2015 March 31, 2014 Change
Land $ 1,825,993 $ 1,825,993 $ -
Buildings 97,242,741 96,430,183 812,558
Equipment 2,480,089 2,436,074 44,015
Accumulated Depreciation (88,027,449) (85,805,381) (2,222,068)
Construction In Progress 569,776 798,102 (228,326)
Total $ 14,091,150 $ 15,684,971 $ (1,593,821)
The following reconciliation summarizes the change in Capital Assets.
TABLE 5
CHANGE IN CAPITAL ASSETS
2015 2014
Capital assets - beginning of year $ 15,684,971 $ 17,338,090
Additions:
Capital Fund Grant 502,549 754,928
Improvements to dwelling units 81,683 (2,100)
Equipment - computer upgrades 44,015 20,224
Deletions at a loss - (6,427)
Depreciation (2,222,068) (2,419,744)
Capital assets - end of year $ 14,091,150 $ 15,684,971
Notes Payable Outstanding
As of year-end, the Authority had $5,616,296 of notes payable outstanding, see Note 7 to the basic
financial statements.
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February 9, 2016 Official Minutes 40
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2015
(Continued)
ECONOMIC FACTORS
The Authority is primarily dependent upon HUD for funding operations; therefore, the Authority is
affected more by the federal budget than by state or local economic conditions. The Authoritys budgets
and subsidy funding requests are approved by HUD.
It should be noted that HUD has instituted a major change in the funding process for the Housing Choice
Voucher Program. This change will have a major impact on the restricted reserves reported by the
Authority. HUD will no longer be advancing HAP funds based on the Annual Contributions Contract, but
will be advancing funds based on the need of the Authority from a quarterly review process. This change
will greatly reduce restricted reserves held by the Authority and impact the cash flow of the program.
FINANCIAL CONTACT
The individual to be contacted regarding this report, and the reports of the Authoritys component units,
is John Hunter, Director of Finance of the Housing Authority of the County of Contra Costa, at (925) 957-
8014. Specific requests may be submitted to John Hunter, Director of Finance, Housing Authority of the
County of Contra Costa, P.O. Box 2759, 3133 Estudillo Street, Martinez, CA 94553.
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February 9, 2016 Official Minutes 41
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
MARCH 31, 2015
Primary Component
Government Units
Housing
ASSETS
Current assets
Cash and investments (Note 2 and 14) $ 7,249,671 $ 31,879
Due from other agencies 521,175 -
Due from related parties - DeAnza (Note 14) 23,984 -
Tenant accounts receivable 100,528 12,599
Allowance for doubtful accounts (35,209) (1,203)
Miscellaneous accounts receivable - 16,964
Allowance for doubtful accounts - (5,149)
Interest receivable 15,504 4,131
Notes receivable - short term (Note 4) 10,535 -
Prepaid expenses 202,034 21,379
Total current assets 8,088,222 80,600
Restricted assets:
Restricted cash (Note 2 and 3 and 14) 1,165,642 1,440,270
Capital assets (Note 5 and 14):
Land 1,825,993 1,150,712
On site improvements - 4,028,709
Buildings 97,242,741 29,714,010
Furniture and equipment 2,480,089 488,321
Construction in progress 569,776 -
Accumulated depreciation (88,027,449) (10,658,108)
Total capital assets 14,091,150 24,723,644
Other noncurrent assets:
Long-term notes receivable (Note 4) 473,966 -
Long-term notes receivable - DeAnza (Note 4 and 14) 1,000,000 -
Interest receivable on long-term notes (Note 4) 121,641 -
Due from related parties - DeAnza (Note 14) 1,789,739 -
Other long-term assets 97,203 -
Loan costs (net of amortization of $63,035 and $300,646) 31,108 90,815
Total other noncurrent assets 3,513,657 90,815
Total assets $ 26,858,671 $ 26,335,329
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February 9, 2016 Official Minutes 42
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
MARCH 31, 2015
(Continued)
Primary Component
Government Units
Housing
LIABILITIES
Current liabilities:
Accounts payable $ 765,798 $ 116,398
Due to related parties - Authority (Note 14) - 977
Due to other agencies 95,358 -
Accrued salaries and related costs 461,088 -
Accrued interest (Note 14) - 48,207
Unearned revenue (Note 8) 220,775 4,124
Current portion of compensated absences (Note 1.I.) 254,599 -
Current portion of long-term debt (Note 6 and 14) 265,290 202,811
Total current liabilities 2,062,908 372,517
Payable from restricted assets:
Tenant security deposits 368,075 156,066
Family self sufficiency escrows 316,708 -
Total payable from restricted assets 684,783 156,066
Other noncurrent liabilities:
Long-term portion of compensated absences (Note 1.I.) 107,082 -
Long-term debt (Note 6 and 14) 5,351,006 8,562,088
Long-term debt - Authority (Note 14) - 1,000,000
Other noncurrent liabilities (Note 9 and 14) 4,784,143 22,144
Due to related parties - Authority (Note 14) -1,782,641
Total noncurrent liabilities 10,242,231 11,366,873
Total liabilities 12,989,922 11,895,456
NET POSITION (Note 10)
Net investment in capital assets 6,828,538 15,910,538
Restricted net position 499,925 1,433,794
Unrestricted net position 6,540,286 (2,904,459)
Total net position 13,868,749 14,439,873
Total liabilities and net position $ 26,858,671 $ 26,335,329
The accompanying notes are an integral part of this statement
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February 9, 2016 Official Minutes 43
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2015
Primary Component
Government Units
Housing
Operating revenue:
Rents and other tenant revenue $ 3,911,789 $ 1,969,406
Other 1,319,190 -
Total operating revenue 5,230,979 1,969,406
Operating expenses:
Administration 8,627,668 473,509
Tenant services 435,404 -
Utilities 1,778,806 237,230
Maintenance 4,242,994 424,167
General 1,169,321 109,022
Housing assistance payments 81,904,701 -
Depreciation (Note 5 and 14) 2,222,068 1,017,334
Total operating expenses 100,380,962 2,261,262
Operating income (loss)(95,149,983)(291,856)
Nonoperating revenue (expenses):
Grants 90,964,347 -
Restricted interest 1,090 6,041
Unrestricted interest 84,564 -
Mortgage interest 15,532 -
Mortgage interest forgiven (13,912) -
Interest on notes receivable
with related party (Note 4 and 14) 30,000 (30,000)
Related party fees (Note 14) 84,960 (84,960)
Amortization - loan fees (3,142) (28,738)
Debt service - interest (Note 6 and 14) (251,257)(584,296)
Net gain before contributions and transfers (4,237,801) (1,013,809)
Capital contributions 502,549 -
Change in net position (3,735,252) (1,013,809)
Net position - beginning of year 17,604,001 15,453,682
Net position - end of year $ 13,868,749 $ 14,439,873
The accompanying notes are an integral part of this statement.
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February 9, 2016 Official Minutes 44
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2015
Primary Government
Housing
Cash flows from operating activities:
Tenant receipts $ 3,796,257
Other receipts 1,329,415
Payroll and benefit expenditures (8,668,356)
Administration expenditures (1,699,203)
Tenant services expenditures (160,579)
Utilities expenditures (1,777,608)
Maintenance expenditures (2,549,215)
General expenditures (751,592)
Housing assistance payment expenditures (81,912,023)
Net cash used by operating activities (92,392,904)
Cash flows from noncapital financing activities :
Operating grants received 90,637,373
Funds returned to granting agency (29,620)
Related parties transactions (10,262)
Repayment of notes receivable 11,581
Notes receivable issued (10,618)
Interest received on notes receivable 3,923
Net cash provided by noncapital financing activities 90,602,377
Cash flows from capital financing activities :
Grants received to acquire capital assets 502,549
Acquisition of capital assets (628,247)
Principal paid on debt (252,880)
Interest paid on debt (172,470)
Net cash used by capital financing activities (551,048)
Cash flows from investing activities:
Interest receipts 80,575
Interest on restricted cash 1,153
Net cash provided by investing activities 81,728
Net increase to cash (2,259,847)
Cash at beginning of year 10,675,160
Cash at end of year $ 8,415,313
Cash and investments $ 7,249,671
Restricted cash 1,165,642
Total cash at year end $ 8,415,313
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February 9, 2016 Official Minutes 45
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2015
(Continued)
Primary Government
Housing
Reconciliation of operating loss to net
cash used by operating activities:
Operating loss $ (95,149,983)
Adjustments to reconcile operating loss to
Net cash used by operating activities:
Depreciation expense 2,222,068
(Increase) Decrease in:
A/R other governments (24,007)
Tenants accounts receivable 17,241
Other accounts receivable 10,139
Prepaid expenses 38,560
Other long-term assets (47,679)
Increase (Decrease) in:
Accounts payable 254,072
Due to other agencies (76,593)
Tenant security deposits 11,462
Accrued salaries 244,785
Unearned revenues (23,087)
FSS escrows 16,685
Compensated absences (5,931)
Noncurrent liabilities (130)
Post retirement benefits 119,494
Net cash used by operating activities $ (92,392,904)
Noncash transactions:
Interest of $78,787 was accrued as payable to RHCP. The payments on this loan are deferred, unless the project generates
surplus cash.
Interest of $30,000 was accrued as receivable from DeAnza Gardens L.P. No payments were received with regards to this
loan.
Lease fees of $72,000 were accrued as receivable from DeAnza Gardens L.P. These fees are deferred.
Interest on the Rental Rehabilitation loans of $1,620 was accrued as revenue, while none was received. The interest on these
loans is due at maturity.
Interest on the CDBG loans of $3,923 was received. Interest is due only at maturity. Interest is due back to the granting
agency and therefore, not reported as income to the program.
The accompanying notes are an integral part of this statement.
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February 9, 2016 Official Minutes 46
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of The Housing Authority of the County of Contra Costa (the
Authority) have been prepared in conformity with accounting principles generally accepted in the
United States of America as applied to governmental entities. The Governmental Accounting
Standards Board (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The following is a summary of the Authoritys
more significant accounting policies:
A. Organization
The Authority was established pursuant to the State Health and Safety Code in 1941. The
Authority is a public entity organized under the laws of the State of Californias Health and
Safety Code to provide housing assistance to low and moderate income families at rents they
can afford. Eligibility is determined by family composition and income in areas served by
the Authority. To accomplish this purpose, the Authority has entered into Annual
Contributions Contracts with the U.S. Department of Housing and Urban Development
(HUD) to operate assisted housing programs.
The governing board of the Authority is the County Board of Supervisors. The Authority is
a legally separate entity from the County, maintaining separate accounting records, staff, and
administration facilities. In addition, there is no financial benefit/burden relationship between
the County and the Authority and the County has limited or no opportunity to impose its will
upon the Authority because the Authority is governed by rules and regulations imposed by
the Federal government through the U.S. Department of Housing and Urban Development.
The County defines the Authority as a discretely presented component unit in its
Comprehensive Annual Financial Report (CAFR). A copy of this report may be obtained by
contacting the Office of the Auditor-Controller, 625 Court Street, Martinez, California
94553.
B. Financial Reporting Entity
The Authoritys combined financial statements include the accounts of all the Authoritys
operations. The criteria used in determining the scope of the financial reporting entity is
based on provisions of Governmental Accounting Standards No. 61, The Financial
Reporting Entity. The financial statements of the Authority include the financial activity of
the Authority and any component units. The decision to include a potential component unit
in the reporting entity was made based on the significance of their operational or financial
nature and significance of their relationship with the Authority, including consideration of
organizations for which the nature and significance of their relationship with the Authority
are such that exclusion would cause the reporting entitys financial statements to be
misleading or incomplete. Based on the aforementioned criteria, the Authority has blended
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February 9, 2016 Official Minutes 47
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
and discretely presented component units. The blended component units, although legally
separate entities, are, in substance, part of the Authoritys operations. Discretely presented
component units are reported in a separate column in the fund financial statements to
emphasize that they are legally separate from the government. The component units are as
follows:
Blended Component Units. HACCC Casa Del Rio, Inc (A California Nonprofit Public
Benefit Corporation) and CDR Senior Housing Associates (A California Limited
Partnership) . HACCC Casa Del Rio, Inc. is the general partner of CDR Senior Housing
Associates. The officers and Board members of HACCC Casa Del Rio, Inc. are employees
of the Authority. The partnership was formed in 1994 to develop and operate an 82-unit
affordable housing rental complex located in Antioch, California, which is currently known
as Casa Del Rio Senior Housing.
Casa Del Rio Senior Housing was placed into service in 1995. Pursuant to the
Indemnification Agreement dated July 1, 1994, by and among the Authority, HACCC Casa
Del Rio, Inc., CDR Senior Housing Associates, and MHIFED I Limited Partnership, the
Authority could possibly be liable for unpaid taxes, interest and penalties, cost to contest,
operating deficiency and expenses of enforcement as identified in the Agreement and for a
sponsors operating guaranty to provide sufficient staff or equipment to the general partner,
as needed and remedies against sponsor for default under the Amended HCD Agreement.
Casa Del Rio Senior Housing participates in the low-income housing tax credit program
under Section 42 of the Internal Revenue Code. Various agreements dictate the maximum
income levels of new tenants and also provide rent restrictions through 2054.
Since HACCC Casa Del Rio, Inc and CDR Senior Housing Associates have the potential to
impose a financial burden on the Authority, these entities have been included in the
Authoritys financial statements as blended component units. See also Note 15.
Discretely Presented Component Units. DeAnza Housing Corporation (A California
Nonprofit Public Benefit Corporation) and DeAnza Gardens, L.P. (A California Limited
Partnership). The Authority is the General Partner and DeAnza Housing Corporation is the
managing general partner of DeAnza Gardens, L.P. The partnership was formed for the
purpose of acquisition, ownership, maintenance, and operation of 180 multi-family rental
housing units and the provision of low-income housing through the construction, renovation,
rehabilitation, operation, and leasing of an affordable housing development located in Contra
Costa County, which is currently known as DeAnza Gardens.
DeAnza Gardens was placed into service during 2005. It was built on land owned by and
leased from the Authority. Under the terms of the lease, title to the improvements revert to
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February 9, 2016 Official Minutes 48
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
the Authority at the end of the 75-year lease. Financing for construction was obtained
through notes from the Authority, Bank of America, and DeAnza Housing Corporation.
DeAnza Gardens participates in the low-income housing tax credit program under Section
42 of the Internal Revenue Code. Various agreements dictate the maximum income levels
of new tenants and also provide rent restrictions through 2078.
Since DeAnza Housing Corporation and DeAnza Gardens L.P. are other organizations for
which the nature and significance of their relationship with the Authority are such that
exclusion from the financial statements would cause the Authoritys financial statements to
be misleading or incomplete, these entities have been included in the Authoritys financial
statements as discretely presented component units. See also Note 15.
Complete audited financial statements are issued separately for each of the individual
component units listed above and may be obtained from the Housing Authority of the County
of Contra Costa, 3133 Estudillo Street, P.O. Box 2759, Martinez, California 94553.
C. Basis of Presentation
Business-type activities are financed in whole or in part by fees charged to external parties
for goods or services. The Authoritys activities are strictly business-type. The Authority
has no fiduciary funds.
Fund Financial Statements:
Fund financial statements of the Authority are organized into funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for
within a separate set of self balancing accounts that comprise its assets, liabilities, fund
equity, revenues, and expenses/expenditures as appropriate. Government resources are
allocated to, and accounted for, in individual funds based upon the purpose for which they
are to be spent and the means by which spending activities are controlled. A fund is
considered major if it is the primary operating fund of the Authority or if total assets,
liabilities, revenue, or expenses/expenditures of the individual fund are at least 10 percent
of the Authority-wide total. The Authority considers all of its activity to be housing related
and therefore, considers all the financial activity of the Authority to be one major fund, titled
Housing. As such, the Authority has no non-major funds.
PROPRIETARY FUND TYPES
Enterprise Funds - Enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent is that costs of
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February 9, 2016 Official Minutes 49
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges. Enterprise funds are also used when the governing
body has decided that periodic determination of revenue earned, expenses incurred, or net
income is appropriate for capital maintenance, public policy, management control,
accountability or other purposes. The Authoritys funds are operated as enterprise funds.
D. Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless
of the measurement focus applied.
The Proprietary Fund Types are accounted for on an economic resources measurement focus
using the accrual basis of accounting. Revenues are recognized when they are earned and
expenses are recorded at the time liabilities are incurred. Under this basis of accounting and
measurement focus, the Authority applies all GASB pronouncements.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses result from providing goods and services related to the
funds ongoing operations. The principal operating revenue of the Authoritys enterprise
funds is dwelling rental income. Operating expenses are necessary costs that have been
incurred in order to provide the good or service that is the primary activity of the fund. The
principal operating expenses of the Authoritys enterprise funds are employee salaries and
benefits, housing assistance payments, utilities, and the costs to maintain the owned units.
All revenues and expenses not meeting this definition are reported as nonoperating revenues
and expenses.
When the Authority incurs an expense for which both restricted and unrestricted resources
may be used, it is the Authoritys policy to use restricted resources first and then unrestricted
resources as needed.
E. Interfund Transactions
Statement of Net Position:
Short-term amounts due between funds are classified as Due from/to other funds. As of
March 31, 2015, the amounts due between the various proprietary funds totaled $950,715.
Operating advances made to the blended component units, HACCC Casa Del Rio, Inc and
CDR Senior Housing Associates totaled $294,967 as of March 31, 2015. The interfund
20
February 9, 2016 Official Minutes 50
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
balance as of December 31, 2014, was $271,482 and was reported as non-current related
party payable by the other auditors. The Statement of Net Position - Proprietary Funds,
reported as of March 31, 2015, shows $271,482 as both a noncurrent asset and as a
noncurrent liability. The difference of $23,485, due to the timing differences in fiscal year
end, is shown as other noncurrent assets (see also Note 14).
A long-term note due from the Management Enterprise Fund to the blended component unit,
HACCC Casa Del Rio, Inc in the amount of $185,000 is reported as long-term notes
receivable and long-term debt. See also Notes 4 and 6.
These interfund assets and liabilities have been eliminated from the Statement of Net
Position - Proprietary Funds. For further detail, please see the Financial Data Schedule found
in the Supplementary Information section of this report.
Statement of Revenues, Expenses, and Changes in Fund Net Position :
Participants of the Housing Choice Voucher Program have decided to occupy units owned
by the Authoritys blended component unit. Housing assistance payments made by the
Housing Choice Voucher and Shelter Plus Care Programs to Casa Del Rio Senior Housing
(CDR) totaled $8,535 for the fiscal year ended March 31, 2015.
The Authority recognized $52,452 in management fee revenue earned from CDR during the
current fiscal year. Management fees expensed to CDR for its fiscal year ended December
31, 2014 were $48,941. The difference of $3,511 is due to the differing fiscal year ends of
these two funds and is not significant to either fund.
The Authority utilizes a Central Office Enterprise Fund to account for administrative costs
that are not charged to its Public Housing and Housing Choice Voucher Enterprise Funds.
The Housing Choice Voucher Enterprise Fund paid management fees and bookkeeping fees
in the amount of $1,251,768 and $566,715, respectively. The Public Housing Enterprise
Fund paid property management, bookkeeping, and asset management fees in the amount of
$977,564, $93,397, and $65,160, respectively. The Shelter Plus Care Enterprise Fund was
allocated a portion of the Central Office overhead costs in the amount of $56,048. These
costs, totaling $3,010,652, are reported as other revenue in the Central Office Enterprise
Fund and administrative expenses of the Public Housing, Housing Choice Voucher, and
Shelter Plus Care Enterprise Funds.
The Authority is required by HUD to pay HAP on behalf of other authorities with Housing
Choice Voucher Program participants residing within Contra Costa County. The Authority
is reimbursed for this HAP from the initiating housing authority. HUD requires this HAP
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February 9, 2016 Official Minutes 51
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
to be reported as an expense when paid to the landlord and as income when reimbursed from
the initiating housing authority. For the current fiscal year, the Authority received
reimbursement of $934,719 in HAP paid on behalf of other housing authorities. This amount
is therefore reported as revenue and expense of the Housing Choice Voucher Enterprise
Fund.
CDR Inc earns interest of $13,912 on its loan with the Authority of $185,000. CDR Inc has
agreed to give the interest back to the Authority as a charitable contribution. This interest
revenue and expense are reported within the blended component unit enterprise fund.
Interfund transfers of $12,538 were made between the Authoritys two loan programs to
cover operating costs. The Rental Rehabilitation Enterprise Fund transferred funds to the
CDBG Rental Rehabilitation Enterprise Fund.
Interfund transfers of $138,853 were made from the Housing Choice Voucher Enterprise
Fund to the Moderate Rehabilitation and Shelter Plus Care Enterprise Funds to cover direct
operating costs due to grant funding shortages.
Intrafund operating transfers of $469,378 were made within the Public Housing Enterprise
Fund. This represents the use of Capital Fund grants for Public Housing operating costs.
Interfund revenues and expenses of $3,068,128 have been eliminated from the Statement of
Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds. This amount
includes the interfund HAP, management fees, bookkeeping fees, and asset management
fees. The transfers net to zero and are not reported on the Statement of Revenues, Expenses,
and Changes in Fund Net Position - Proprietary Funds. For further detail, please see the
Financial Data Schedule found in the Supplementary Information section of this report.
The elimination of this interfund activity is a change from the prior years treatment of the
same activity. The prior year financial statements included this interfund activity on separate
lines to emphasize the nature of the activity.
F. Cash and Investments
Cash includes amounts in demand deposits and saving accounts. Investments are reported
in the accompanying statement at market value. All of the Authoritys investments can be
converted to cash in a relatively short amount of time. Therefore, all cash and investments
are used in the Statement of Cash Flows.
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February 9, 2016 Official Minutes 52
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Changes in fair value that occur during a fiscal year are recognized as interest income
reported for that fiscal year. Interest income includes interest earnings, changes in fair value,
and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The Authority pools cash and investments of all programs. Each programs share in this pool
is displayed in the accompanying Financial Data Schedule as cashand investments. Interest
income earned by the pooled investments is allocated to the various funds based on each
funds average cash and investment balance.
G. Accounts Receivable
Receivables are principally amounts due from HUD and tenants. Allowance for doubtful
accounts has been provided based on the likelihood of the recovery.
H. Capital Assets
Capital assets, which include property, plant and equipment, acquired for Proprietary Funds
are capitalized in the respective funds to which they apply. The Authority has an established
capitalization policy, which requires all acquisitions of property and equipment in excess of
$5,000 and all expenditures for repairs, maintenance, renewals, and betterments that
materially prolong the useful lives of assets to be capitalized. Property and equipment are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation. Interest
expense incurred during the development period is capitalized. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized.
Depreciation of exhaustible capital assets used by Proprietary Funds is charged as an expense
against operations, and accumulated depreciation is reported on the Statement of Net
Position. Capital assets are being depreciated using the straight-line basis over the useful
lives of the assets. The useful lives are generally 27.5 years for buildings, 10 years for
modernization, 5 years for vehicles, furniture and equipment, and 3 years for computer
equipment. Salvage value on all depreciable equipment is assumed to be insignificant and
therefore valued at $0.
I. Compensated Absences
It is the Authoritys policy to permit employees to accumulate earned but unused vacation
and sick pay benefits. There is no liability for unpaid accumulated sick leave since the
government does not have a policy to pay any amounts when employees separate from
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February 9, 2016 Official Minutes 53
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
service with the Authority. All vacation pay is accrued when incurred and allocated to the
appropriate proprietary fund. Total liability for the Authority is $361,681 based on year-end
hourly rates. Of this amount $254,599 is considered by the Authority to be a current liability.
J. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Financial Position will sometimes include a separate
section for deferred outflows of resources. This separate financial statement element
represents a consumption of net position that applies to a future period and so will not be
recognized as an outflow of resources (expense) until that time. The Authority does not have
any deferred outflows of resources as of March 31, 2015.
In addition to liabilities, the Statement of Financial Position will sometimes include a
separate section for deferred inflows of resources. This separate financial statement element
represents an acquisition of net position that applies to a future period and so will not be
recognized as an inflow of resources (revenue) until that time. The Authority does not have
any deferred inflows of resources as of March 31, 2015.
K. Net Position
Net position represents the differences between assets and liabilities. Net position consists
of net investment in capital assets; restricted net position; and unrestricted net position. Net
investment in capital assets consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of borrowing used for acquisition, construction, or
improvement of those assets (excluding interfund borrowing and including accrued interest).
Net position is reported as restricted when there are limitations imposed on its use through
constitutional provisions or enabling legislation or through external restrictions imposed by
creditors, grantors, or laws or regulations of other governments.
L. Income Taxes
The Authority is exempt from federal and state income taxes. The Authority is also exempt
from property taxes but makes payments in lieu of taxes on owned housing.
M. Budgets and Budgetary Accounting
The Board of Commissioners adopts an operating budget effective April 1 annually. This
budget may be revised by the Board of Commissioners during the year to give consideration
to unanticipated revenue and expenditures primarily resulting from events unknown at the
time of budget adoption.
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February 9, 2016 Official Minutes 54
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
N. Estimates
Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities, and the reported revenues and expenses. Actual results
could differ from those estimates.
O. Encumbrances
Encumbrance accounting is not employed by the Authority.
P. Grant Restrictions
The Authority has received loans and grants from the U.S. Department of Housing and Urban
Development. The grants require that only individuals and families that meet various
income, age and employment standards be housed or aided.
Q. Cost Allocation Procedures
Cost allocation procedures are divided into one of the following three methods, 1) Direct
Costs, 2) Indirect Costs, 3) Fee for Service.
Direct Allocation Method: this method is used when the cost being incurred directly benefits
a specific program, region, development, project or site. Allocation at the regional,
development, project or site level shall be allocated by using the ratio of number of bedrooms
managed (zero bedroom units will count as 1). Allocation at the Program level will be based
on a common factor within the program area, such as units within a grant, grant award
amounts, or other reasonable factors where allowed.
Indirect Allocation Method: this method is used when the cost being incurred is for a
common or joint objective and therefore does not directly benefit a specific program, region,
development, project or site. These costs will be allocated using a ration from direct salary
allocation plan consistent with OMB Circular A-87. The direct salary allocation plan will
be established annually as a part of the annual budget process.
Fee for Service Method: this method is used when an employee performs work outside of
their budgeted allocation. The fee for service method will reduce the allocations of salary
and benefits from the program that the position was originally budgeted for. This method
should be documented on a time reporting process, either by way of time card or activity log
or both.
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February 9, 2016 Official Minutes 55
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
R. Loan Costs
The Authority has implemented GASB Statement No. 65 Items Previously Reported as
Assets and Liabilities. The Statement requires that debt issuance costs be reported as
expenses when incurred since they no longer meet the definition of an asset. The component
units are nonprofit public benefit corporations and limited partnerships and they follow the
guidance of the Financial Accounting Standards Board for their financial reporting. Certain
recognition criteria and presentation features are different from GASB. For instance, these
entities report debt issuance costs as an asset amortized over time. No modifications have
been made to the audited financial information as presented. The unamortized value of the
loan costs does not have a material effect on the Authoritys net position. Net loan costs of
$31,108 are reported as other noncurrent assets of the primary government, for the blended
component units, and $90,815 as other noncurrent assets of the component units, for the
discretely presented component units.
S. New GASB Pronouncements
GASB Statement No. 68 Accounting and Financial Reporting for Pensions - an amendment
of GASB Statement No 27, is effective for financial statements for periods beginning after
June 15, 2014. This statement improves financial reporting for pensions. This Statement
results from a comprehensive review of the effectiveness of existing standards of accounting
and financial reporting for pensions with regard to providing decision-useful information,
supporting assessments of accountability and inter-period equity, and creating additional
transparency. Management has updated Note 12, Retirement Plan, to comply with GASB
Statement No. 68. The Authority has not recorded the unfunded liability to the books of
accounts due to the timing outlined in the GASB release. Management anticipates that the
full implementation of this Statement will have a material impact on the financial statements
beginning next year.
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February 9, 2016 Official Minutes 56
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 2 - CASH AND INVESTMENT
Cash and investments as of March 31, 2015 are classified in the accompanying financial statement
as follows:
Statement of net position:
Cash and investments $ 7,249,671
Restricted cash 1,165,642
Total Cash & Investments $ 8,415,313
Demand deposits $ 2,329,116
Investments 5,584,322
Cash held by other agencies 499,925
Cash on hand 1,950
Total Cash & Investments $ 8,415,313
Investments Authorized by the Authoritys Investment Policy
Investments authorized by the Authority are empowered by the HUD Notice 99-48 and its own
investment policy to invest HUD funds in the following:
United States Treasury Bills, Notes and Bonds;
Obligations issued by Agencies or Instrumentalities of the U.S. Government;
State or Municipal Depository Funds, such as the Local Agency Investment Fund (LAIF) or
pooled cash investment funds managed by County treasurers;
Insured Demand and Savings Deposits, provided that deposits in excess of the insured
amounts must be 100% collateralized by federal securities;
Insured Money Market Deposit Accounts;
Insured SUPER NOW accounts, provided that deposits in excess of the insured amount must
be 100% collateralized by federal securities;
Negotiable Certificates of Deposit issued by federally or state chartered banks or associations,
limited to no more than 30% of surplus funds;
Repurchase/Reverse Repurchase Agreements of any securities authorized by this section;
securities purchased under purchase agreements shall be no less than 102% of market value;
Sweep Accounts that are 100% collateralized by federal securities;
Shares of beneficial interest issued by diversified management companies investing in the
securities and obligations authorized by this Section (Money Market Mutual Funds); Funds
must carry the highest rating of at least two national rating agencies and are limited to not
more than 20% of surplus funds;
Funds held under the terms of a Trust Indenture or other contract or agreement including the
HUD/PHA Annual Contributions Contract, may be invested according to the provisions of
those indentures or contracts; and
Any other investment security authorized under the provisions of HUD Notice PIH 97-41.
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February 9, 2016 Official Minutes 57
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
The Authority is empowered by the California Government Code (CGC) Sections 5922 and
53601 et seq and its own investment policy to invest non-HUD funds in the following:
Bonds issued by the local entity with a maximum maturity of five years;
United States Treasury Bills, Notes and Bonds;
Registered state warrants or treasury notes or bonds issued by the State of California;
Bonds, notes, warrants or other evidence of debt issued by a local agency within the State of
California, including pooled investment accounts sponsored by the State of California, County
Treasurer, other local agencies or Joint Powers Agencies;
Obligations issued by Agencies or Instrumentalities of the U.S. Government;
Bankers Acceptances with a term not to exceed 270 days, limited to 40% of surplus funds;
no more than 30% of surplus funds can be invested in Bankers Acceptances of any single
commercial bank;
Prime Commercial Paper with a term not to exceed 180 days and the highest ranking issued
by Moodys Investors Service or Standard & Poors Corp., limited to 15% of surplus funds;
provided that if the average total maturity of all commercial papers does not exceed 31 days
up to 30% of surplus funds can be invested in commercial papers.
Negotiable Certificates of Deposit issued by federally or state chartered banks or associations,
limited to not more than 30% of surplus funds;
Repurchase/Reverse Repurchase Agreements of any securities authorized by this Section,
securities purchased under these agreements shall be no less than 102% of market value.
Securities purchased under reverse repurchase agreements shall be for temporary and
unanticipated cash flow needs only.
Medium term notes (not to exceed two years) of U.S. corporations rated AAA or better by
Moodys or Standard & Poors limited to not more than 30% of surplus funds;
Shares of beneficial interest issued by diversified management companies investing in the
securities and obligations authorized by this Section (Money Market Mutual Funds), limited
to not more than 15% of surplus funds;
Funds held under the terms of a Trust Indenture or other contract or agreement may be
invested according to the provisions of those indentures or agreements;
Collateralized bank deposits with a perfected security interest in accordance with the Uniform
Commercial Code (UCC) or applicable federal security regulations;
Any mortgage pass-through security, collateralized mortgage obligation, mortgaged backed
or other pay-through bond, equipment least-backed certificate, consumer receivable pass-
through certificate or consumer receivable backed bond of a maximum maturity of five years,
securities in this category must be rated AA or better by a national rating service and are
limited to not more than 30% of surplus funds;
Any other investment security authorized under the provisions of California Government
Code Sections 5922 and 53601.
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February 9, 2016 Official Minutes 58
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Disclosure Related to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in the market rates. See the table shown later in this note titled
Investment Disclosure for the maturity dates for each of the Authoritys investments.
Disclosures related to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. See the table shown later in this note titled Investment
Disclosure for the ratings assigned to the issuer for each of the Authoritys investments.
Concentration of Credit Risk
See the table shown later in this note titled Investment Disclosure to determine how the
Authoritys investments are concentrated. These investments are owned by the following
programs:
Housing Choice Voucher Program $ 2,281,044 40.85%
Public Housing Program 1,760,861 31.53%
Other State and Local Programs 1,135,093 20.33%
Central Office Cost Center 151,460 2.71%
Rental Rehabilitation Loan Program 148,575 2.66%
Casa Del Rio (blended component unit) 107,289 1.92%
Total investments $ 5,584,322
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The California
Government Code and the Authoritys investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits, other than the
following provision for deposits: The California Government Code requires California banks and
savings and loan associations to secure the Authoritys deposits not covered by federal deposit
insurance by pledging mortgages or government securities as collateral. The market value of the
pledged securities in the collateral pool must equal at least 110% of the total amount deposited
by the public agencies. California law also allows financial institutions to secure Authority
deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits. Such collateral must be held in the pledging banks trust department in a separate
depository in an account for the Authority.
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February 9, 2016 Official Minutes 59
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
The custodial risk for investments is the risk that, in the event of the failure of the counterparty
(broker-dealer, etc) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the Authoritys investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for investments. With respect
to investments, custodial credit risk generally applies only to direct investments in marketable
securities. Custodial credit risk does not apply to a local governments indirect investment in
securities through the use of mutual funds or government investment pools (such as LAIF).
The Authority has executed a General Depository Agreement with WestAmerica Bank dated
October 24, 2005. This agreement states that any portion of PHA funds not insured by a Federal
insurance organization shall be fully (100%) and continuously collateralized with specific and
identifiable U.S. Government or Agency securities prescribed by HUD.
The Authoritys exposure to custodial credit risk is as follows:
Demand deposits with banks, fully insured by FDIC $ 250,000
Demand deposits with banks covered by depository agreements 2,061,010
Cash held by investment companies 18,106
Deposits held by CHFA 499,925
Total demand deposits and cash held by other agencies $ 2,829,041
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February 9, 2016 Official Minutes 60
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
See the table below for information regarding the investments.
Investment Disclosure - March 31, 2015
Investment Type Issuer Book Value Market Value Maturity Rate
Government Security LAIF $ 1,432,619 $ 1,433,169 N/A
Interest on LAIF 919 919 N/A
Certif. Of Deposit Goldman Sachs Bank 107,000 107,289 1/16/2018 253
Certif. Of Deposit Mid First Bank OKH 105,000 105,917 1/30/2018 300
Certif. Of Deposit Choice Bank 100,000 100,756 3/08/2018 205
Certif. Of Deposit Goldman Sachs Bank 149,000 148,575 3/27/2018 253
Certif. Of Deposit C I T Bank 105,000 105,231 4/24/2018 295
Certif. Of Deposit American Express Cent 168,000 168,364 4/25/2018 300
Certif. Of Deposit JP Morgan Chase 200,000 200,342 4/30/2018 199
Certif. Of Deposit G E Capital Bank 110,000 108,889 5/03/2018 292
Certif. Of Deposit G E Capital Bank 102,000 101,421 6/14/2018 300
Certif. Of Deposit Sandhills Bank 100,000 101,597 7/26/2018 146
Certif. Of Deposit Sallie Mae Bank 100,000 101,629 10/23/2018 300
Certif. Of Deposit Bank of Baroda 125,000 126,755 10/29/2018 150
Certif. Of Deposit Sallie Mae Bank 100,000 102,131 10/30/2018 300
Certif. Of Deposit G E Retail Bank 100,000 101,511 12/06/2018 300
Certif. Of Deposit BMW Bank of No. America 150,000 151,460 5/16/2019 300
Certif. Of Deposit Northwest Bank 110,000 110,893 7/18/2019 222
Certif. Of Deposit Barclays Bank 100,000 100,741 7/23/2019 300
Certif. Of Deposit American Express FSB 110,000 110,777 8/14/2019 300
Certif. Of Deposit American Express FSB 110,000 110,777 8/14/2019 300
Certif. Of Deposit Discover Bank 127,000 127,616 10/01/2019 300
Certif. Of Deposit Goldman Sachs Bank 100,000 100,811 10/29/2019 289
Certif. Of Deposit Capital One Bank 120,000 120,946 11/05/2019 300
Certif. Of Deposit Capital One Bank 100,000 100,788 11/05/2019 300
Certif. Of Deposit Kansas State Bank 200,000 201,250 12/19/2019 287
Certif. Of Deposit Sychrony Bank 100,000 99,811 3/20/2020 200
Govt Agency Federal Home Loan Mtg Corp 100,000 99,839 8/01/2019 AAA
Govt Agency Federal Home Loan Mtg Corp 200,000 199,968 8/02/2019 AAA
Govt Agency Federal Home Loan Mtg Corp 535,000 534,914 8/22/2019 AAA
Govt Agency Federal Home Loan Mtg Corp 150,000 148,752 10/02/2019 AAA
Govt Agency Fannie Mae 150,000 151,035 1/21/2020 AAA
Total Investments $ 5,566,538 5,584,873
Investments reported below market value (550)
Total Investments reported $ 5,584,323
The Authority is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the State
of California. The LAIF is a special fund of the California State Treasury through which local
governments may pool investments. Each government agency may invest up to $30,000,000 in
each account in the fund. Investments in LAIF are highly liquid, as deposits can be converted to
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February 9, 2016 Official Minutes 61
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
cash within twenty-four hours without loss of interest or principal. The full faith and credit of the
State of California secure investments in LAIF.
At March 31, 2015, an account was maintained in the name of the Housing Authority of the
County of Contra Costa for $1,432,619. The total cost value of investment in LAIF was
$1,432,619. The total fair value of investments in LAIF was $1,433,169. The fair value total
includes an unrealized gain on investments of $550. The unrealized gain was based on a fair
value adjustment factor of 1.000383728 that was calculated by the State of California Treasurers
Office. The unrealized gain was not recorded by the Authority and is considered immaterial. Of
the $1,432,619 invested in LAIF, $1,433,538 is recorded as assets of the Authority. The
difference includes $919 of interest receivable from LAIF as of March 31, 2015, shown by the
Authority as investments.
LAIF is a part of the State of California Pooled Money Investment Account (PMIA). At March
31, 2015, the fair value of the State of California Pooled Money Investment Account (PMIA),
including accrued interest, was $62,552,682,673. The PMIA portfolio had no securities in the
form of structured notes and asset-backed securities totaling $1,005,984,000. The PMIA has
policies, goals and objectives for the portfolio to make certain that the goals of safety, liquidity,
and yield are not jeopardized. These policies are formulated by investment staff and reviewed by
both the PMIA and LAIF Advisory Boards on an annual basis. LAIFs and the Authoritys
exposure to credit, market, or legal risk is not available.
During 2002, California Government code was added to the LAIFs enabling legislation stating
that the right of a city, county...special district...to withdraw its deposited money from the LAIF
upon demand may not be altered, impaired, or denied in any way by any state official or state
agency based upon the States failure to adopt a State Budget by July 1 of each new fiscal year.
In addition, it has been determined that the State of California cannot declare bankruptcy under
Federal regulations. This allows other government code stating that money placed with the State
Treasurer for deposit in the LAIF shall not be subject to ...transfer or loan...or impound or seizure
by any state official or state agency to stand.
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February 9, 2016 Official Minutes 62
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 3 - RESTRICTED CASH
Restricted cash consists of funds for replacement and operating reserves required by the lender
and funds being held by the Authority on behalf of its clients. The balances are as follows:
Tenant security deposits - Public Housing $ 330,072
Family Self Sufficiency Program participants escrow funds 316,708
Blended component unit - Casa Del Rio:
Funds held by CHFA:
Replacement reserve 253,982
Operating reserve 227,892
Hazard and earthquake insurance impounds 18,051
Tenant security deposits 18,937
Total restricted cash $ 1,165,642
The funds held by the California Housing Finance Agency (CHFA) can only be used for major
repairs or insurance, upon receipt of prior written approval from CHFA. These amounts are also
reported as restricted net position (see also Note 10).
The amounts held by the Authorities for program participants of the FSS program and for tenant
security deposits are reported as payable from restricted assets.
Please see the prior note to determine interest rates and credit risks for the above restricted cash.
Note 4 - NOTES RECEIVABLE
A schedule of changes in notes receivable is as follows:
Balance Loans Loans Balance Long-term Short-term
3/31/14 Issued Repaid 3/31/15 Portion Portion
CDBG Loan Program $ 420,444 $ - $ (508) $ 419,936 $ 419,936 $ -
Rental Rehab. Program 54,030 - - 54,030 54,030 -
Employee computer loans 10,990 10,618 (11,073) 10,535 - 10,535
DeAnza Gardens LP 1,000,000 - - 1,000,000 1,000,000 -
1,485,464 10,618 (11,581) 1,484,501 1,473,966 10,535
Interfund:
CDR from mgmt fund 185,000 -- 185,000 185,000 -
Totals $ 1,670,464 $ 10,618 $ (11,581) $ 1,669,501 $ 1,658,966 $ 10,535
Interest on these loans is a follows:
Balance Interest Interest Balance Long-term Short-term
3/31/14 Accrued Repaid 3/31/15 Portion Portion
CDBG Loan Program $ 100,588 $ 12,450 $ (3,923) $ 109,115 $ 109,115 $ -
Rental Rehab. Program 10,906 1,620 - 12,526 12,526 -
DeAnza Gardens LP 390,107 30,000 - 420,107 420,107 -
Totals $ 501,601 $ 44,070 $ (3,923) $ 541,748 $ 541,748 $ -
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February 9, 2016 Official Minutes 63
Note 4 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
The Authority has made deferred payment loans to individuals and organizations under the
Countys Community Development Block Grant (CDBG) and Rental Rehabilitation (RR)
Programs. These loans are secured by deeds of trust in the name of the County of Contra Costa
or the City of Antioch. These programs are revolving loan programs administered by the
Authority. Any repayments of outstanding loans, or interest on the loans, must be used for new
loans or program administration as authorized by the County or the City of Antioch. These loans
typically earn 3% interest per annum. These notes receivable, along with all of the accrued
interest, are offset by an equal amount shown in other noncurrent liabilities (See Note 10).
The Authority administers an employee loan program whereby employees can borrow funds for
the purpose of purchasing a computer to be used at home. These loans accrue no interest.
Payments are made through the payroll system.
Pursuant to a demand note dated June 30, 1994, the Authority may be liable to HACCC Casa Del
Rio, Inc for $185,000. Although the note is due upon demand, the maturity date is December 31,
2059. The note will be called prior to maturity only in the event that there are operating deficits
and there is insufficient cash available to cover expenses.
The Authority has also issued a note to the DeAnza Gardens, L.P., which is a discretely presented
component unit of the Authority (see Note 1.B.). The note bears simple interest at the rate 3%
per annum, payments are due commencing on October 1, 2005, but are payable only to the extent
of the previous years excess/distributable cash, and is due June 2043. No payments, of interest
or principal, have been received on this loan.
Not shown on the previous schedule, the DeAnza Housing Corporation issued a note in the
amount of $1,000,000 bearing simple interest at 6.8%, to be paid in full June 2043. This second
note is an intra-fund transaction. DeAnza Gardens L.P. owes the DeAnza Housing Corporation.
This loan has been eliminated from the discretely presented component unit column of the
Statement of Net Position. Since this loan does not effect the Authority, it is not shown in the
table on the prior page.
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February 9, 2016 Official Minutes 64
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 5 - CAPITAL ASSETS
Capital asset activity for the year ending March 31, 2015.
March 31, March 31,
2014 Additions Transfers Deletions 2015
Capital assets, not
being depreciated:
Land $ 1,825,993 $ - $ - $ - $ 1,825,993
Construction in progress 798,102 528,673 (756,999)- 569,776
Total 2,642,095 528,673 (756,999)- 2,395,769
Capital assets depreciated:
Buildings and improvements 96,430,183 55,559 756,999 - 97,242,741
Equipment 2,436,074 44,015 - - 2,480,089
Total capital assets
being depreciated 98,866,257 99,574 756,999 - 99,722,830
Total capital assets 101,490,352 628,247 - - 102,118,599
Accumulated depreciation:
Buildings and improvements (83,562,125) (2,117,346) - - (85,679,471)
Equipment (2,243,256) (104,722)- - (2,347,978)
Total accumulated
depreciation (85,805,381) (2,222,068)- - (88,027,449)
Total capital assets depreciated, net 13,060,876 (2,122,494) 756,999 - 11,695,381
Total capital assets, net $ 15,684,971 $ (1,593,821) $ - $ - $ 14,091,150
The changes by project are as follows:
March 31, March 31,
2014 Additions Transfers Deletions 2015
TOTAL CAPITAL ASSETS:
Public Housing $ 89,924,929 $ 553,892 $ - $ - $ 90,478,821
Housing Choice Voucher 4,119,864 16,617 - - 4,136,481
Section 8 Moderate Rehab 168,778 -- - 168,778
Shelter Plus Care 2,412 - (2,412)- -
CDBG Loan 3,937 -- - 3,937
Management Fund 75,115 -- - 75,115
Central Office Cost Center 142,386 2,180 2,412 - 146,978
Blended Component Units:
Casa Del Rio 7,052,931 55,558 - - 7,108,489
Total capital assets 101,490,352 628,247 - - 102,118,599
35
February 9, 2016 Official Minutes 65
Note 5 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
March 31, March 31,
2014 Additions Transfers Deletions 2015
DEPRECIATION:
Public Housing (80,399,901) (1,868,060) - - (82,267,961)
Housing Choice Voucher (1,577,422) (148,290) - - (1,725,712)
Section 8 Moderate Rehab (168,778) - - - (168,778)
Shelter Plus Care (2,142) - 2,142 - -
CDBG Loan (3,467) (445) - - (3,912)
Management Fund (75,114) - - - (75,114)
Central Office Cost Center (121,291) (20,507) (2,142) - (143,940)
Blended Component Units:
Casa Del Rio (3,457,266) (184,766)- - (3,642,032)
Total depreciation (85,805,381) (2,222,068)- - (88,027,449)
Net $ 15,684,971 $ (1,593,821) $ - $ - $ 14,091,150
Note 6 - LONG TERM DEBT
The following is a schedule of the changes in long-term debt for the current fiscal year:
Balance Loans Balance Short-term Long-term Interest
3/31/2014 Issued Payments 3/31/2015 Portion Portion Payable
Energy equipment lease $ 396,117 $ - $ (153,926) $ 242,191 $ 160,650 $ 81,541 $ -
Office building mortgage 2,464,485 - (76,111) 2,388,374 79,950 2,308,424 -
Blended component units:
Casa Del Rio:
CHFA 381,956 - (22,843) 359,113 24,690 334,423 -
RHCP 2,626,618 -- 2,626,618 - 2,626,618 1,646,316
5,869,176 - (252,880) 5,616,296 265,290 5,351,006 1,646,316
Interfund:
Mgmt Fund to CDR 185,000 -- 185,000 - 185,000 -
Totals $ 6,054,176 $ -$ (252,880) $ 5,801,296 $ 265,290 $ 5,536,006 $1,646,316
Following is a schedule of debt payment requirements to maturity for the mortgages noted above
that require payments:
Energy Lease Loan Office Building CHFA
Year ending Principal Interest Principal Interest Principal Interest Total
2016 $ 160,650 $ 7,386 $ 79,950 $ 125,538 $ 24,690 $ 27,141 $ 425,355
2017 81,541 1,018 2,308,424 101,628 26,686 25,145 2,544,442
2018 - - - - 28,843 22,988 51,831
2019 - - - - 31,175 20,656 51,831
2020 - - - - 33,696 18,135 51,831
2021-2025 ----214,023 45,132 259,155
$ 242,191 $ 8,404 $ 2,388,374 $ 227,166 $ 359,113 $ 159,197 $ 3,384,445
36
February 9, 2016 Official Minutes 66
Note 6 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
On April 8, 2003, the Authority entered into an energy services agreement with EUA Citizens
Conservation Services, Inc. (Citizens). Citizens prepared an energy audit which generated a report
and plan of action. Citizens proposed installing certain energy saving equipment in the housing
units of the Public Housing Program. The Authority agreed to pay for the purchase and
installation of this equipment in an amount not to exceed $1,570,465. Citizens guarantees the
Authority a specific level of cost savings due to the installation of the equipment for a period of
twelve years. The costs savings is guaranteed by Citizens to exceed the Authoritys debt service
on the financing associated with the purchase and installation of this equipment. At the end of the
twelve year period the title to the equipment will pass to the Authority. The $1,570,465 to fund
this equipment lease and installation activity was borrowed from WestAmerica Bank. The loan
is due in monthly installments of $14,003. The Authority began making these monthly payments
during the fiscal year ended March 31, 2005. The payments will continue through September
2016. Interest accrues on this loan at a rate of 4.330% per annum. Interest in the amount of
$14,109 was paid and expensed during the year.
During December 2006, the Authority purchased an office building to house the staff of their
Housing Choice Voucher Program. To facilitate this purchase, the Authority borrowed $2,847,500
from WestAmerica Bank on December 15, 2006. Originally, the interest on this loan was 6.75%
per annum. The interest rate decreased to 6% in 2012 and 5.25% in 2013. Currently, the loan
requires a monthly payment of $17,124. A balloon payment of $2,247,471 will be due on January
1, 2017, when the note becomes due. Interest in the amount of $129,374 was paid and expensed
during the year.
The California Housing Finance Agency note, received through the State of California, is dated
November 14, 1994. The original amount borrowed was $600,000. The loan carries a simple
interest rate of 7.8% per annum. Principal and interest are payable in monthly installments of
$4,319. The note is due in full December 2024. Interest in the amount of $28,987 was paid and
expensed during the calendar year ended December 31, 2014.
The Rental Housing Construction Program note, received through the State of California, is dated
January 15, 1993. The original amount borrowed was $2,626,618. The loan accrues interest at
a rate of 3% per annum. Payments are required on this loan only to the extent that the Casa Del
Rio project has surplus cash. This note and interest on the note are due June 5, 2054. No principal
or interest payments were made on this loan during the year ended December 31, 2014. Interest
was expensed in the amount of $78,787. The amount of deferred interest accrued as payable as
of the end of the fiscal year was $1,646,316. The entire amount is considered to be long-term and
is shown as other noncurrent liabilities. See also Note 9.
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February 9, 2016 Official Minutes 67
Note 6 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Pursuant to a demand note dated June 30, 1994, the Authority may be liable to HACCC Casa Del
Rio, Inc for $185,000. Although the note is due upon demand, the maturity date is December 31,
2059. The note will be called prior to maturity only in the event that there are operating deficits
and there is insufficient cash available to cover expenses.
Note 7 - PAYMENT IN LIEU OF TAXES
In connection with the Public Housing Program, the Authority is obligated to make annual
payments in lieu of property taxes based on the lesser of 25% of the assessable value of owned
housing, times the current tax rate; or 10% of the dwelling rents, net of utilities expense. At
March 31, 2015, $90,962 was expensed for payment in lieu of taxes. Approximately 75% is
payable as of March 31, 2015 and is shown as Due to Other Agencies.
Note 8 - UNEARNED REVENUE
Unearned revenue consists of:
Prepaid rent - Public Housing $ 13,731
Casa Del Rio 62 $ 13,793
Revolving loan funds held for future expenditures:
Rental Rehabilitation 194,523
FSS grant proceeds received, but not yet earned 5,806
Prepaid portability payments from other agencies 6,653
$ 220,775
Note 9 - OTHER NONCURRENT LIABILITIES
Other noncurrent liabilities consist of:
Loan liability:
CDBG:
Notes receivable (See also Note 4) $ 419,936
Interest on notes receivable (See also Note 4) 109,115 $ 529,051
Rental Rehabilitation:
Notes receivable (See also Note 4) 54,030
Interest on notes receivable (See also Note 4) 12,526 66,556
Housing Choice Voucher Program 146,899
Long term portion of the interest payable
on the RHCP loan - a liability of the blended
component unit, Casa Del Rio (See also Note 6) 1,646,316
Post retirement benefits payable (See also Note 12) 2,395,321
$ 4,784,143
38
February 9, 2016 Official Minutes 68
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 10 - NET POSITION
A. Net investment in capital assets
Net investment in capital assets consists of the following:
Capital assets, net of depreciation (see Note 5) $ 14,091,150
Long term debt (omitting interfund balances) (see Note 6) (5,616,296)
Accrued interest on long term debt (see Note 6 & 9) (1,646,316 )
Net investment in capital assets $ 6,828,538
B. Restricted Net Position
Net position is reported as restricted when constraints placed on the net asset use are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or imposed by law through constitutional provisions or enabling legislation.
The Authority has reported $499,925 as restricted net position. This restricted net position
is associated with the Casa Del Rio Senior Housing, represents replacement and operating
reserves required by CHFA, is being held by CHFA, and is fully funded. See also Note 3.
In 2012, HUD implemented cash management procedures which mitigated the accumulation
of excess HAP in Net Restricted Asset accounts by PHAs. These procedures based the
payment of HAP on actual need reported by PHAs in the Voucher Management System
(VMS). Any excess allocation will now be held by HUD until PHAs demonstrate need for
the disbursement of the funds. The change in the Authoritys Net Restricted Asset account
for the Housing Choice Voucher Program is as follows:
Balance as of March 31, 2014 $ 2,692,898
Use of excess HAP funding (2,739,446)
FSS forfeitures, including associated interest 46,501
Interest 47
Balance as of March 31, 2015 $-
Note 11 - RETIREMENT PLAN
A. Plan Description
The Authority participates in a cost-sharing multiple-employer defined benefit retirement
plan that is administered by the Contra Costa County Employees’ Retirement Association
(CCERA) under the Countys Employees Retirement Law of 1937 (1937 Act) and the
Public Employees Pension Act of 2013 (PEPRA).
39
February 9, 2016 Official Minutes 69
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
All full-time employees of the Authority participate in this plan. The plan provides death,
disability and service retirement benefits, in accordance with the 1937 Act. Annual cost-of-
living adjustments (COLA) to retirement benefits can be granted by the Retirement Board
as provided by State statutes. Benefits are based on the employee’s highest level of annual
salary, years of service and age at the time of retirement. The Authority’s retirement plan had
153 participants at March 31, 2015. Employer contributions are vested (1) after 10 years of
service and employee attain age 50 or (2) 30 years of service regardless of age or (3) at
mandatory age regardless of the amount of service.
B. Funding Information
Employees contribute to the retirement system through biweekly payroll deductions. The
rate of contribution for employees is determined by numerous factors at the time of entrance
into the system. Employee contributions and interest thereon may be withdrawn only at
termination of employment or at retirement.
Information on contributions for the last six years is as follows:
Fiscal Payroll As a As a
Year Subject to Employer Percentage Employee Percentage
Ended Contribution Contribution of Payroll Contribution of Payroll
3/31/2010 $ 5,345,205 $ 1,760,494 32.94% $ 371,528 6.95%
3/31/2011 $ 5,227,243 $ 1,806,368 34.56% $ 370,477 7.09%
3/31/2012 $ 5,057,120 $ 1,916,003 37.89% $ 322,557 6.38%
3/31/2013 $ 4,922,992 $ 1,821,886 37.01% $ 367,216 7.46%
3/31/2014 $ 4,647,605 $ 1,761,687 37.91% $ 330,230 7.11%
3/31/2015 $ 4,755,988 $ 2,239,997 47.10% $ 366,222 7.70%
The most recent actuarial report dated December 31, 2014 by CCERA reflects that the
Housing Authority has Allocated Value of Assets in the amount of $43,323,543, or .0066%
of CCERAs total Assets. The report does not specify the balance of unfunded liability
associated with the Authority. The total unfunded liability of the entire plan was reported
to be $1,469,942,112. Using the ratio of the Allocated Value of Assets of .0066% of total
liabilities would put the Housing Authoritys estimated unfunded liability at $9,701,618. See
also Note 1.S.
The ten-year trend analysis and other disclosures required by U.S. generally accepted
accounting principles are described in the financial statements of the Contra Costa County
Employees Retirement Association (CCCERA). CCCERA is a component unit of the
County of Contra Costa and is reported as a pension trust fund in their basic financial
statements. Complete audited financial statements may be obtained from the administrative
offices of CCCERA 1355 Willow Way, Suite 221, Concord, CA 94520.
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February 9, 2016 Official Minutes 70
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 12 - POST EMPLOYMENT HEALTHCARE PLAN
Plan Description: Contra Costa County Housing Authority (CCCHA) provides a defined benefit
health care program to its retired employees and their dependents. Benefits include coverage in
the Kaiser health and dental plans administered by CCCHA. Benefit provisions are established
and amended through negotiations between CCCHA and the respective unions and employee
groups. CCCHA does not issue a publicly available financial report for the retiree health care
program.
Eligibility: CCCHA retirees are eligible for membership in the plans upon retirement (drawing
a pension from Contra Costa County Employee Retirement Association (CCCERA) or CalPers).
No provision currently exists for members in deferred retirement status.
Retirees and beneficiaries receiving benefits 59
Active plan members 76
Total 135
Funding Policy: The contribution requirements of program members and CCCHA are
determined by negotiations between CCCHA and the respective unions and employee groups.
The required employer contribution is based on projected pay-as-you-go financing requirements.
For fiscal year 2015 CCCHA contributed $259,871 to the plan to cover the annual pay-as-you-go
cost. There is currently no requirement for employees to contribute to the plan.
Annual Other Post Employment Benefit (OPEB) Cost and Net OPEB Obligation: The
CCCHAs annual OPEB costs (expense) is calculated based on the annual required contribution
(ARC) of the employer, an amount actuarially determined in accordance with the parameters of
Governmental Accounting Standards Board (GASB) Statement 45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. Interest on net OPEB obligation is based on the actuarial interest rate of 4.5% and is
computed on the unfunded amount.
The most current actuarial report calculated these amounts for the fiscal year ended March 31,
2015. The following table shows the components of the CCCHAs annual OPEB cost for the past
three years, the amount actually contributed to the plan, and changes in the CCCHAs net OPEB
obligation.
41
February 9, 2016 Official Minutes 71
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
3/31/2015 3/31/2014 3/31/2013
Present value of the Actuarial
Accrued Liability $ 5,016,892 $ 5,365,137 $ 5,224,097
Normal costs $ 183,002 $ 190,278 $ 190,278
Amortization of UAAL 192,785 221,311 215,493
Interest on net OPEB obligation
at beginning of year 91,033 96,656 90,572
ARC adjustment for current fiscal year (87,455) (88,601) (83,024)
Annual OPEB cost/Annual
Required Contribution 379,365 419,644 413,319
Contributions made (259,871) (291,724) (278,133)
Increase in net OPEB obligation 119,494 127,920 135,185
Net OPEB obligation - Beginning of year 2,275,827 2,147,907 2,012,722
Net OPEB obligation - End of year $ 2,395,321 $ 2,275,827 $ 2,147,907
The CCCHAs annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation are as follows:
Pay-as-you-go Percentage of
Fiscal Year Annual Employer Annual OPEB Net OPEB
Ended OPEB Cost Contributions Costs Contributed Obligation
3/31/2011 $ 414,017 $ 247,213 59.71% $ 1,831,697
3/31/2012 $ 433,041 $ 252,016 58.2% $ 2,012,721
3/31/2013 $ 413,319 $ 278,133 67.3% $ 2,147,907
3/31/2014 $ 419,644 $ 291,724 69.52% $ 2,275,827
3/31/2015 $ 379,367 $ 259,724 68.46% $ 2,395,321
Funding Status and Funding Progress: The most recent actuarial valuation dated April 1,
2014, reflects a accrued liability for benefits of $5.0 million, therefore, unfunded actuarial accrued
liability as a percentage of covered payroll is 105.61%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information on page 53, presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial liabilities for benefits.
42
February 9, 2016 Official Minutes 72
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes
are based on the substantive plan (the plan as understood by the employer and the plan members)
and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-
term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
The funding method used was the Entry Age Normal Cost method and assuming an open 30-year
amortization of the Unfunded Actuarial Liability using the level percent of payroll amortization
method. The valuation results are based on a 4.5% discount rate assuming that the CCCHA
continues pay-as-you-go funding of its post-employment benefit program.
Note 13 - DEFERRED COMPENSATION PLAN
The Authority offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan is administered by Mass Mutual Financial Group.
The plan, available to all regular employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency. All amounts of compensation deferred under the
plan, all property and rights purchased with those amounts, and all income attributable to those
amounts, property, or rights are held in trust for the exclusive benefits of participants and their
beneficiaries.
A total of $2,770,563 is being held by Mass Mutual Financial Group on behalf of the Authoritys
employees. These funds are not recorded as assets of the Authority since they are held in trust for
the exclusive benefit of participants and their beneficiaries and are not subject to claims of the
Authoritys general creditors.
43
February 9, 2016 Official Minutes 73
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 14 - RELATED PARTIES
Casa Del Rio Housing - Blended Component Unit
Organization:
Casa Del Rio Housing is made up of HACCC Casa Del Rio, Inc (A California Nonprofit Public
Benefit Corporation) and CDR Senior Housing Associates (A California Limited Partnership).
HACCC Casa Del Rio, Inc. is the general partner of CDR Senior Housing Associates. The
officers and Board members of HACCC Casa Del Rio, Inc. are employees of the Authority. The
partnership was formed in 1994 to develop and operate an 82-unit affordable housing rental
complex located in Antioch, California, which is currently known as Casa Del Rio Senior
Housing.
Pursuant to the Indemnification Agreement dated July 1, 1994, by and among the Authority,
HACCC Casa Del Rio, Inc., CDR Senior Housing Associates, and MHIFED I Limited Partnership,
the Authority could possibly be liable for unpaid taxes, interest and penalties, cost to contest,
operating deficiency and expenses of enforcement as identified in the Agreement.
Pursuant to the Operating Deficit Guaranty Agreement dated July 1, 1994, by the Authority to and
for the benefit of MHIFED I Limited Partnership, the Authority can possibly be liable for operating
deficit and expenses of enforcement as identified in the Agreement.
Pursuant to the Indemnity Agreement, dated July 1, 1994, by the Authority to and for the benefit
of CDR Senior Housing Associates and MHIFED I Limited Partnership, the Authority can possibly
be liable for any costs, expenses, and liabilities arising out of claims made by FPI (FPI Real Estate
Group, FPI Mortgage Co. and FPI Management, Inc.) under the Development Agreement.
Pursuant to the Demand Note dated June 30, 1994, from the Authority to HACCC Casa Del Rio,
Inc., the Authority can possibly be liable to HACCC Casa Del Rio, Inc. for $185,000. Although
the note is due upon demand the maturity date is December 31, 2059, the note will be called prior
to maturity only in the event that there are operating deficits and there is not sufficient cash
available to cover expenses. This note is recorded as both an interfund note receivable and note
payable (see Notes 4 and 6).
Pursuant to the Assignment and Assumption Agreement, the Authority can possibly be liable for
any and all claims relating to the Assignment and Assumption Agreement arising prior to the date
of the Assignment and Assumption Agreement.
Pursuant to the Department of Housing and Community Development Rental Housing
Construction Program First Amendment to the Regulatory Agreement (the Amended HCD
44
February 9, 2016 Official Minutes 74
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Agreement) dated November 14, 1994, by and among the Department of Housing and
Community Development, CDR Senior Housing Associates, and the Authority; the Authority can
possibly be liable for a sponsors operating guaranty to provide sufficient staff or equipment to the
general partner, as needed and remedies against sponsor for default under the Amended HCD
Agreement.
Since HACCC Casa Del Rio, Inc (CDR Inc) and CDR Senior Housing Associates (CDR
Associates) have the potential to impose a financial burden on the Authority, these entities have
been included in the Authoritys financial statements as a blended component unit. The fiscal year
end of these blended component units is December 31. Audits were conducted on these entities
as of December 31, 2014, by Linquist, Von Husen, & Joyce, LLP. The opinions were not
modified. These audit reports may be obtained by contacting the Authority at the address on page
11. The Authority reports the balances for these blended component units as of December 31,
2014, which differs from that of the Authoritys fiscal year end of March 31, 2015. The balances
at each fiscal year end do not differ materially. Modification were made to the audited financial
statements to conform with the reporting categories of the Authority. Specifically, net assets
reported in the audit were converted to the three categories of net position in conformity with the
Authoritys reporting practices.
Condensed Financial Statements:
The condensed financial statements for HACCC Casa Del Rio, Inc. and subsidiary as of and for
the year ended December 31, 2014, are as follows:
STATEMENT OF NET POSITION
Current assets $ 172,640
Restricted assets 518,862
Property and equipment 3,466,457
Other non-current assets 216,108
Total assets $ 4,374,067
Current liabilities $ 34,965
Payable from restricted assets 38,004
Long term liabilities 4,878,839
Total liabilities 4,951,808
Net investment in capital assets (1,165,590)
Restricted net position 499,925
Unrestricted net position 87,924
Total net position (577,741)
Total liabilities and net position $ 4,374,067
45
February 9, 2016 Official Minutes 75
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Rental revenue $ 510,057
Interest and other revenue 6,075
Total revenue 516,132
Administrative expenses 195,954
Utility expenses 81,466
Maintenance expenses 135,205
General expenses 47,858
Depreciation 184,766
Total expenses 645,249
Operating income (loss)(129,117)
Debt service interest (107,774)
Amortization (3,142)
Change in net position (240,033)
Net position at the beginning of the year - 1/1/2014 (337,708)
Net position at the end of the year - 12/31/2014 $ (577,741)
STATEMENT OF CASH FLOWS
Net cash provided (used) by:
Operating activities $ 93,816
Noncapital financing activities (55,489)
Capital financing activities (107,388)
Investing activities 1,106
Net change in cash (67,955)
Cash at the beginning of the year - 1/1/2014 713,620
Cash at the end of the year - 12/31/2014 $ 645,665
Interfund accounting issues:
Operating advances made by the Authority were $294,967 as of March 31, 2015. The interfund
balance as of December 31, 2014 was $271,482 and was reported as non-current related party
payable by the other auditors. The Statement of Net Position - Proprietary Funds, reported as of
March 31, 2015, shows $271,482 as both a noncurrent asset and as a noncurrent liability. The
difference of $23,485, due to the timing differences of the fiscal year ends, is shown as other
noncurrent assets.
During the fiscal year ended December 31, 2014, CDR Associates paid management fees to the
Authority in the amount of $52,452. Some of the Casa Del Rio Senior Housing tenants (2 as of
December 31, 2014) are also participants in the Authoritys Housing Choice Voucher or Shelter
46
February 9, 2016 Official Minutes 76
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Plus Care Programs. The rent for these tenants is subsidized by HUD through the Authority.
During the twelve months ended March 31, 2015, the Authoritys Housing Choice Voucher and
Shelter Plus Care Programs paid a total of $8,535 in HAP payments to CDR Associates.
CDR Inc earns interest of $13,912 on its loan with the Authority of $185,000. CDR Inc has agreed
to give the interest back to the Authority as a charitable contribution. This interest revenue and
expense are reported within the blended component unit enterprise fund.
Intrafund accounting issues:
The intrafund amounts which have been eliminated as of March 31, 2015, from the Casa Del Rio
Blended Component Unit Enterprise Fund for inclusion into the Fund Financial Statements
include:
$116,530 receivable/payable between CDR Inc and CDR Associates
$876,165 investment in partnership recorded as an liability of CDR Inc and net position of
CDR Associates.
$15,000 managements fees reported as revenue to CDR Inc and expenses of CDR Associates.
Deficit Net Position
These blended component units combined, have a deficit net position $577,741.
DeAnza - Discretely Presented Component Units
Organization:
The discretely presented component units are DeAnza Housing Corporation (A California
Nonprofit Public Benefit Corporation) and DeAnza Gardens, L.P. (A California Limited
Partnership). The Authority is the General Partner and DeAnza Housing Corporation is the
managing general partner of DeAnza Gardens, L.P. The partnership was formed for the purpose
of acquisition, ownership, maintenance, and operation of 180 multi-family rental housing units and
the provision of low-income housing through the construction, renovation, rehabilitation,
operation, and leasing of an affordable housing development located in Contra Costa County,
which is currently known as DeAnza Gardens.
DeAnza Housing Corporation (DeAnza Corp) and DeAnza Gardens L.P. (DeAnza L.P.) have been
reported as discretely presented component units of the Authority. The fiscal year end of these
discretely presented component units is December 31. Audits were conducted on these entities as
of December 31, 2014, by Linquist, Von Husen, & Joyce, LLP. The opinions were not modified.
These audit reports may be obtained by contacting the Authority at the address on page 11. The
Authority reports the balances for these discretely presented component units as of December 31,
47
February 9, 2016 Official Minutes 77
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
2014, which differs from that of the Authoritys fiscal year end of March 31, 2015. The balances
at each fiscal year end do not differ materially. Modifications were made to the audited financial
statements to conform with the reporting categories of the Authority. Specifically, net assets
reported in the audit were converted to the three categories of net position in conformity with the
Authoritys reporting practices.
Inter-agency accounting issues:
The amounts shown as due to related parties consist of the following:
Primary Govt Component Unit
Assets Liabilities
3/31/2015 12/31/2014
Due to the Authority:
Short-term for operations $ 23,984 $ 977
Long-term:
Interest on note $ 420,107 $ 412,607
Land lease 852,000 834,000
Long-term for operations 517,632 536,034
$ 1,789,739 $ 1,782,641
Due to Boston Capital - long-term $ 22,144
The Authoritys Housing Choice Voucher Enterprise Fund loaned $1 million to DeAnza Gardens
L.P. The note bears simple interest at the rate 3% per annum, payments are due commencing on
October 1, 2008, but are payable only to the extent of the previous years excess/distributable cash,
and is due June 2043. Interest of $30,000 was expensed during the fiscal year ended December
31, 2014. No interest has been paid to the Authority. The Authoritys Housing Choice Voucher
Enterprise Fund reported $420,107 due from related parties and revenue of $30,000. See Note 4.
DeAnza Gardens was built on land owned by the Authoritys Public Housing Program Enterprise
Fund. Based on an agreement between DeAnza Gardens L.P. and the Authority, the land is leased
for $72,000 per year, payable from excess/distributable cash. Unpaid lease amounts are carried
forward without interest. The Authoritys Public Housing Program Enterprise Fund reported
$852,000 due from related party for this lease, with $72,000 reported in the current fiscal year as
fees charged to a related party (nonoperating revenue).
During the fiscal year ended December 31, 2014, DeAnza Gardens L.P. paid management fees to
the Authority in the amount of $12,960. Nonoperating revenue of $12,960 is reported in the
Authoritys Statement of Revenues, Expenses, and Changes in Fund Net Position for the year
ended March 31, 2015. Some of the DeAnza Gardens tenants (6 as of December 2014) are also
48
February 9, 2016 Official Minutes 78
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
clients of the Authoritys Housing Choice Voucher or Shelter Plus Care Program. The rent for
these tenants is subsidized by HUD through the Authority. During the twelve months ended March
31, 2015, the Authoritys Housing Choice Voucher Program paid $61,692 in HAP payments to
DeAnza Gardens L.P..
Intrafund accounting issues:
The intrafund amounts which have been eliminated when reporting these entities in the Statement
of Net Position and Statement of Revenues, Expenses, and Changes in Fund Net Position are:
$1,000,000 long-term note held by DeAnza Corp from DeAnza L.P.
$782,280 of interest on the long-term note held by DeAnza Corp from DeAnza L.P.
$238,619 receivable recognized by DeAnza Corp from DeAnza L.P.
$25,049 receivable recognized by DeAnza L.P from DeAnza Corp.
$613 deficit investment in partnership reported by DeAnza Corp is offset by net position in
DeAnza L.P.
$52,223 managements fees reported as revenue to DeAnza Corp and expenses of DeAnza L.P.
$68,000 interest revenue on the long-term debt is recognized by DeAnza Corp and expensed
by DeAnza L.P.
Cash and investments:
Unrestricted Restricted
Demand deposits (FDIC insured up to $250,000) $ 31,379 $ 6,476
Cash held by investment companies - 384
Investments - 1,004,440
Held by mortgagor - 428,970
Cash on hand 500 -
$ 31,879 $ 1,440,270
The demand deposits are with WestAmerica bank. The total on deposit did not exceed the amount
covered by FDIC as of December 31, 2014. FDIC coverage is $250,000 for 2014. Cash and
investments of $1,004,824 are held by Cantella & Co., Inc. The investments consist of six
marketable certificates of deposit with face values ranging from $108,000 to $230,000.
Restricted cash consists of replacement and operating reserves required by the lender and reported
as restricted net assets totaling $1,433,794. Cash has also been restricted for security deposits in
the amount of $6,476. The excess of the security deposit liability of $156,066, over the cash
balance represents cash held as an investment in the operating reserve account.
49
February 9, 2016 Official Minutes 79
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Capital assets:
DeAnza Gardens was completed and placed into service during the fiscal year ended December
31, 2004. DeAnza Gardens L.P.s property and equipment are summarized as follows:
12/31/2014 12/31/2013
Building and improvements $ 29,505,562 $ 29,446,662
Land improvements 1,150,712 1,150,712
Off-site improvements 208,448 208,448
On-site improvements 4,028,709 4,028,709
Furniture and fixtures 488,321 488,321
35,381,752 35,322,852
Less accumulated depreciation (10,658,108) (9,640,774)
$ 24,723,644 $ 25,682,078
Property and equipment are being depreciated on the straight-line method over the estimated useful
life of the assets. The useful lives of the assets are estimated to be forty years for buildings and
off-site improvements, fifteen years for on-site improvements and seven years for furniture and
fixtures.
Long-term debt:
Permanent financing was obtained for the costs of the DeAnza Gardens construction during 2005.
The note is held by California Community Reinvestment Corporation. The original amount of the
loan was $10,115,373. This loan requires monthly payments of $64,603, beginning November 1,
2005, earns interest at a rate of 6.6% per annum, and is due in full October 2023. Activity on the
loan is as follows:
Balance Balance S/T L/T Interest
12/31/2013 Payments 12/31/2014 Portion Portion Payable
$ 8,954,791 $ (189,892) $ 8,764,899 $ 202,811 $ 8,562,088 $ 48,207
Interest expense for the fiscal year ended December 31, 2014 $ 584,296
Deficit Unrestricted Net Position
While DeAnza Gardens has a positive net position in total, its unrestricted net position is in deficit
as of December 31, 2014. The majority of the entitys assets are either invested in capital assets
or restricted, leaving the unrestricted net position in deficit by $2,904,459. This deficit is an
increase over the prior years deficit of $2,667,290.
50
February 9, 2016 Official Minutes 80
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 15 - CONTINGENT LIABILITIES
A. Grants
The Authority has received funds from various federal, state and local grant programs. It is
possible that at some future date it may be determined that the Authority was not in
compliance with applicable grant requirements. The amount, if any, of expenditures which
may be disallowed by the granting agencies cannot be determined at this time although the
Authority does not expect such disallowed amounts, if any, to materially affect the financial
statements.
B. Line of Credit
On January 14, 2015, the Authority renewed an agreement with WestAmerica Bank for a $1
million line of credit. The interest rate is variable, but will not exceed the amount allowed
by law. The initial rate for this line of credit was 5.25%. It is the Authoritys intention to use
this line of credit to cover any shortage in cash flow, if any, that may arise over the term of
the loan. No amounts were drawn on this line of credit during the current fiscal year.
C. Litigation
The Authority is involved in various matters of litigation. It is the Authoritys opinion that
these matters of litigation will not have a material effect, if any, on the financial position of
the Authority.
Note 16 - ECONOMIC DEPENDENCE
The Authority receives a significant portion of its revenue from the U.S. Department of Housing
and Urban Development. See the Schedule of Expenditures of Federal Awards, shown as
supplemental information, for the HUD programs that the Authority administers. These programs
are currently on-going. However, they are dependent on the Federal budgeting processes, and
therefore, funding will vary from year to year.
51
February 9, 2016 Official Minutes 81
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2015
(Continued)
Note 18 - RISK MANAGEMENT
Workers Compensation Insurance: The Authority participates in a joint venture under a joint
powers agreement (JPA) with the California Housing Workers Compensation Authority
(CHWCA). CHWCA was formed to provide workers compensation insurance coverage for
member housing authorities. At December 31, 2014, there were thirty-three members. The
relationship between the Authority and CHWCA is such that CHWCA is not a component unit of
the Authority for financial reporting purposes.
Condensed CHWCA audited financial information for the year ended December 31, 2014 and
2013 are as follows:
December 31, 2014 December 31, 2013
Total assets $ 24,496,334 $ 23,971,319
Total liabilities (16,484,222) (16,767,281)
Net position $ 8,012,112 $ 7,204,038
Total revenues $ 4,702,889 $ 4,347,888
Total expenses (3,894,815) (4,072,510)
Net change in net position $ 808,074 $ 275,378
CHWCA had no long-term debt outstanding at December 31, 2014. The Authoritys share of year
end assets, liabilities, or retained earnings has not been calculated. The Authoritys annual
premium is based on covered payroll. Premiums paid for the calendar year ended December 31,
2014 were $215,507. CHWCA issues a separate comprehensive annual financial report. Copies
of this report may be obtained by contacting Bickmore Risk Services, 6371 Auburn Boulevard,
Suite B, Citrus Heights, California, 95621.
Property and Liability Insurance: The Authority carries insurance for its various operations with
the Housing Authority Insurance Services (HAI), the Housing Authority Risk Retention Group
(HARRG), and Employment Risk Management Authority (ERMA). The property insurance limits
vary by property covered, with a deductible of $25,000 per occurrence. The commercial liability
limit of coverage is $5,000,000 aggregate for the policy year. The deductible is $25,000 per
occurrence. The liability insurance covers bodily injury and property damage liability ($5 million
limit), mold liability ($250,000 limit), and employee benefits administration liability ($1 million
limit, with a deductible of $1,000 per employee). The automobile insurance limits are $4 million
for liability, $1 million for non-owned hired autos, and $1 million for uninsured motorists.
Employment liability insurance coverage through ERMA is $1 million with a $50,000 deductible
per occurrence. Premiums paid for this coverage were approximately $260,000 for the policy year
beginning June 1, 2014.
52
February 9, 2016 Official Minutes 82
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
REQUIRED SUPPLEMENTARY INFORMATION
AS OF MARCH 31, 2015
Schedule of Funding Progress for OPEB
Unfunded UAAL as a
Actuarial Actuarial Actuarial Actuarial Percentage of
Valuation Value of Accrued Accrued Funded Covered Covered
Date Assets Liability Liability Status Payroll Payroll
3/31/2008 $ - $ 16,457,000 $ 16,457,000 0% $ 5,279,413 311.72%
3/31/2009 $ - $ 8,236,801 $ 8,236,801 0% $ 5,345,205 154.10%
3/31/2010 $ - $ 8,236,801 $ 8,236,801 0% $ 5,133,982 160.44%
3/31/2011 $ - $ 4,931,685 $ 4,931,685 0% $ 5,832,771 84.55%
3/31/2012 $ - $ 5,105,240 $ 5,105,240 0% $ 5,057,120 100.95%
3/31/2013 $ - $ 5,224,097 $ 5,224,097 0% $ 5,352,272 97.61%
3/31/2014 $ - $ 5,365,137 $ 5,365,137 0% $ 5,768,742 93.00%
3/31/2015 $ - $ 5,016,892 $ 5,016,892 0% $ 4,750,311 105.61%
53
February 9, 2016 Official Minutes 83
SUPPLEMENTARY INFORMATION
54
February 9, 2016 Official Minutes 84
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2015
Federal Grantor CFDA Number Expenditures
Department of Housing and
Urban Development (HUD):
Direct Programs:
Shelter Plus Care 14.238 $ 3,417,806 *
Public and Indian Housing 14.850 5,418,199 *
Lower Income Housing Assistance Program
Section 8 Moderate Rehabilitation 14.856 238,630
Housing Choice Voucher Program 14.871 83,755,382 *
Public Housing - Capital Fund Program 14.872 1,106,298
Family Self Sufficiency Program Coordinators 14.896 62,618
Subtotal federal expenditures, Dept of HUD 93,998,933
Total expenditures of federal awards $ 93,998,933
* Major program.
The accompanying Independent Auditors Report and notes are an integral part of this schedule.
55
February 9, 2016 Official Minutes 85
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2015
1. The schedule of expenditures of federal awards includes the federal grant activity of the Housing
Authority of the County of Contra Costa, California, and is presented on the accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit Organization . Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the preparation
of, the basic financial statements.
2. Expenditures are reported as follows:
Shelter Plus Care Program - expenditures reported agree with the HUD grants earned for the year.
Public and Indian Housing Program - expenditures reported consist only of the operating subsidy
amount received from HUD for the fiscal year ended March 31, 2015.
Moderate Rehabilitation Program - expenditures reported consist of operating expenses to the
extent that federal grants were received towards these expenditures and/or that prior year funding is
available for expenditure. These amounts differed from the actual annual contributions received from
HUD.
Housing Choice Voucher Program - expenditures reported consist of operating expenses, including
capital transactions and omitting depreciation, to the extent that federal grants were received towards
these expenditures and/or that prior year funding was available for expenditure. These amounts
differed from the actual annual contributions received from HUD. The expenditures were determined
as follows:
HAP Admin Total
Operating expenses $ 78,586,417 $ 6,066,942 $ 84,653,359
Adjustments:
Depreciation - (148,289) (148,289)
HAP reimbursed by
other housing authorities (934,719)- (934,719)
Transfers to other programs - 138,853 138,853
Capital additions - 16,617 16,617
Debt retired - 76,111 76,111
Total Expenditures $ 77,651,698 $6,150,234 $ 83,801,932
Federal grants earned $ 74,912,252 $ 6,326,678 $ 81,238,930
Prior funding available for expenditure 2,692,896 2,579,450 5,272,346
Federal awards available for expenditure $77,605,148 $ 8,906,128 $ 86,511,276
Federal awards expended $77,605,148 $6,150,234 $83,755,382
Public Housing Capital Fund Program - expenditures reported agree with the revenue and actual
expenditures (expenses, plus capital expenditures, less depreciation expense) for the current fiscal year.
Family Self Sufficiency Program Coordinators - expenditures reported agree with the revenue and
actual expenditures for the current fiscal year.
56
February 9, 2016 Official Minutes 86
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
BALANCE SHEET
AS OF MARCH 31, 2015
Public Housing
(including
Capital Fund)
Community
Development
Block Grant
Housing Choice
Voucher
Program
Discretely
Presented
Component
Unit - De Anza
Blended
Component
Unit - Casa Del
Rio
CFDA Number 14.850/14.872 14.218 14.871
$23,047 $31,964 $1,534,761 $31,879 $19,513
$43,620 $1,433,794 $499,925
$330,072 $6,476 $18,937
$353,119 $31,964 $1,578,381 $1,472,149 $538,375
$24,007
$73,628 $355,819
$0 $16,964
$89,614 $12,599 $10,918
-$32,720 -$1,203 -$2,489
$0 $0 -$5,149
$2,410 $8,136 $4,131
$132,932 $0 $387,962 $27,342 $8,429
$1,760,859 $2,007,957 $107,290
$273,088
$87,967 $2,380 $21,380 $37,408
$3,177
$2,334,877 $35,141 $4,249,768 $1,520,871 $691,502
$1,026,405 $330,791 $1,150,712 $468,797
$87,538,985 $3,168,053 $29,714,010 $6,461,287
$1,343,655 $3,937 $637,637 $488,321 $178,405
-$82,267,961 -$3,912 -$1,725,712 -$10,658,108 -$3,642,032
$569,775
$4,028,709
$8,210,859 $25 $2,410,769 $24,723,644 $3,466,457
$419,936 $1,000,000 $185,000
$925,716 $109,115 $420,107 $90,815 $31,108
$9,136,575 $529,076 $3,830,876 $24,814,459 $3,682,565
$11,471,452 $564,217 $8,080,644 $26,335,330 $4,374,067
114 Cash - Tenant Security Deposits
113 Cash - Other Restricted
111 Cash - Unrestricted
125 Accounts Receivable - Miscellaneous
121 Accounts Receivable - PHA Projects
122 Accounts Receivable - HUD Other Projects
100 Total Cash
126.2 Allowance for Doubtful Accounts - Other
127 Notes, Loans, & Mortgages Receivable - Current
126 Accounts Receivable - Tenants
126.1 Allowance for Doubtful Accounts -Tenants
132 Investments - Restricted
131 Investments - Unrestricted
129 Accrued Interest Receivable
120 Total Receivables, Net of Allowances for Doubtful Accounts
150 Total Current Assets
144 Inter Program Due From
142 Prepaid Expenses and Other Assets
164 Furniture, Equipment & Machinery - Administration
162 Buildings
161 Land
171 Notes, Loans and Mortgages Receivable - Non-Current
168 Infrastructure
160 Total Capital Assets, Net of Accumulated Depreciation
166 Accumulated Depreciation
167 Construction in Progress
180 Total Non-Current Assets
174 Other Assets
290 Total Assets and Deferred Outflow of Resources
200 Deferred Outflow of Resources
57
February 9, 2016 Official Minutes 87
Shelter Plus
Care Program
Rental Rehab
Loan Program
Other State &
Local
PIH Family Self-
Sufficiency
Program
Section 8
Moderate
Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.238 14.896 14.856
$43,040 $60,912 $200,057 $5,806 $17,310 $2,024 $1,970,313 $1,970,313
$0 $1,977,339 $1,977,339
$0 $355,485 $355,485
$43,040 $60,912 $200,057 $5,806 $17,310 $2,024 $4,303,137 $0 $4,303,137
$0 $24,007 $24,007
$19,022 $0 $48,698 $497,167 $497,167
$23,984 $0 $40,948 $40,948
$0 $113,131 $113,131
$0 -$36,412 -$36,412
$0 $0 $0 $0 -$5,149 -$5,149
$10,535 $0 $10,535 $10,535
$19 $3,884 $0 $1,054 $19,634 $19,634
$19,022 $19 $38,403 $0 $0 $49,752 $663,861 $0 $663,861
$148,576 $1,135,094 $0 $151,459 $5,311,235 $5,311,235
$0 $273,088 $273,088
$801 $801 $72,676 $223,413 $223,413
$266,738 $3,040 $677,760 $950,715 -$950,715 $0
$62,062 $209,507 $1,641,093 $5,806 $21,151 $953,671 $11,725,449 -$950,715 $10,774,734
$0 $2,976,705 $2,976,705
$74,415 $0 $126,956,750 $126,956,750
$699 $168,779 $146,978 $2,968,411 $2,968,411
-$75,114 -$168,779 -$143,940 -$98,685,558 -$98,685,558
$0 $569,775 $569,775
$0 $4,028,709 $4,028,709
$0 $0 $0 $0 $0 $3,038 $38,814,792 $0 $38,814,792
$54,030 $0 $1,658,966 -$185,000 $1,473,966
$12,527 $812,599 $0 $2,401,987 -$271,482 $2,130,505
$0 $66,557 $812,599 $0 $0 $3,038 $42,875,745 -$456,482 $42,419,263
$0
$62,062 $276,064 $2,453,692 $5,806 $21,151 $956,709 $54,601,194 -$1,407,197 $53,193,997
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
58
February 9, 2016 Official Minutes 88
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
BALANCE SHEET
AS OF MARCH 31, 2015
(Continued)
Public Housing
(including
Capital Fund)
Community
Development
Block Grant
Housing Choice
Voucher
Program
Discretely
Presented
Component
Unit - De Anza
Blended
Component
Unit - Casa Del
Rio
CFDA Number 14.850/14.872 14.218 14.871
$169,921 $413,012 $116,398 $10,213
$152,345 $655 $140,123
$86,985 $782 $78,798
$48,207
$68,442 $12,924
$330,072 $156,066 $38,004
$13,731 $6,652 $4,124 $62
$160,650 $79,950 $202,811 $24,690
$977
$130,644
$302,938 $627,948
$1,415,728 $14,361 $1,346,483 $528,583 $72,969
$81,542 $2,308,424 $8,562,088 $2,961,041
$1,000,000
$463,606 $1,804,785 $1,917,798
$45,678 $111 $41,121
$529,051
$1,156,249 $20,669 $839,675
$1,283,469 $549,831 $3,652,826 $11,366,873 $4,878,839
$2,699,197 $564,192 $4,999,309 $11,895,456 $4,951,808
$7,968,667 $25 $22,395 $15,910,538 -$1,165,590
$0 $1,433,794 $499,925
$803,588 $0 $3,058,940 -$2,904,458 $87,924
$8,772,255 $25 $3,081,335 $14,439,874 -$577,741
$11,471,452 $564,217 $8,080,644 $26,335,330 $4,374,067
311 Bank Overdraft
312 Accounts Payable <= 90 Days
325 Accrued Interest Payable
331 Accounts Payable - HUD PHA Programs
322 Accrued Compensated Absences - Current Portion
321 Accrued Wage/Payroll Taxes Payable
343 Current Portion of Long-term Debt - Capital Projects
341 Tenant Security Deposits
342 Unearned Revenue
333 Accounts Payable - Other Government
310 Total Current Liabilities
347 Inter Program - Due To
345 Other Current Liabilities
346 Accrued Liabilities - Other
355 Loan Liability - Non Current
353 Non-current Liabilities - Other
354 Accrued Compensated Absences - Non Current
351 Long-term Debt, Net of Current - Capital Projects
352 Long-term Debt, Net of Current - Operating Borrowings
400 Deferred Inflow of Resources
300 Total Liabilities
357 Accrued Pension and OPEB Liabilities
350 Total Non-Current Liabilities
508.4 Net Investment in Capital Assets
600 Total Liabilities, Deferred Inflows of Resources and Equity - Net
512.4 Unrestricted Net Position
513 Total Equity - Net Assets / Position
511.4 Restricted Net Position
59
February 9, 2016 Official Minutes 89
Shelter Plus
Care Program
Rental Rehab
Loan Program
Other State &
Local
PIH Family Self-
Sufficiency
Program
Section 8
Moderate
Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.238 14.896 14.856
$0
$14,131 $7,837 $1,753 $18,284 $751,549 $751,549
$4,180 $1,205 $33,612 $1,646 $127,321 $461,087 $461,087
$1,440 $1,438 $933 $975 $83,248 $254,599 $254,599
$0 $48,207 $48,207
$13,993 $13,993 $13,993
$0 $81,366 $81,366
$0 $524,142 $524,142
$194,524 $5,806 $0 $224,899 $224,899
$0 $468,101 $468,101
$0 $977 $977
$0 $130,644 $130,644
$7,710 $12,119 $0 $950,715 -$950,715 $0
$27,461 $209,286 $42,382 $5,806 $18,367 $228,853 $3,910,279 -$950,715 $2,959,564
$0 $13,913,095 $13,913,095
$185,000 $0 $1,185,000 -$185,000 $1,000,000
$0 $4,186,189 -$271,482 $3,914,707
$75 $206 $214 $215 $19,459 $107,079 $107,079
$66,557 $0 $595,608 $595,608
$34,526 $15 $36,700 $2,569 $304,918 $2,395,321 $2,395,321
$34,601 $66,778 $221,914 $0 $2,784 $324,377 $22,382,292 -$456,482 $21,925,810
$62,062 $276,064 $264,296 $5,806 $21,151 $553,230 $26,292,571 -$1,407,197 $24,885,374
$0
$0 $3,038 $22,739,073 $22,739,073
$0 $1,933,719 $1,933,719
$0 $0 $2,189,396 $0 $0 $400,441 $3,635,831 $3,635,831
$0 $0 $2,189,396 $0 $0 $403,479 $28,308,623 $0 $28,308,623
$62,062 $276,064 $2,453,692 $5,806 $21,151 $956,709 $54,601,194 -$1,407,197 $53,193,997
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
60
February 9, 2016 Official Minutes 90
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
PROFIT AND LOSS SCHEDULE
FOR THE YEAR ENDED MARCH 31, 2015
Public Houisng
(Including
Capital Fund)
Community
Development
Block Grants
Housing Choice
Voucher
Program
Discretely
Presented
Component
Unit - De Anza
Blended
Component
Unit - Casa Del
Rio
CDFA Number 14.850/14.872 14.218 14.871
$3,314,279 $1,862,042 $510,056
$91,035 $107,362 $4,952
$3,405,314 $0 $0 $1,969,404 $515,008
$6,021,948 $81,238,930
$502,549
$35,197
$18,187 $60,884 $79
$136,287 $1,223,381
$47 $6,041 $1,043
$10,119,482 $0 $82,523,242 $1,975,445 $516,130
$847,003 $4,978 $1,712,655 $193,486 $82,254
$20,393 $466 $14,141 $17,700 $17,950
$977,563 $1,251,768 $48,941
$93,400 $566,715
$619,158 $1,191 $976,907 $64,159 $11,105
$289,436 $5,191 $646,333 $178,841 $35,701
$138,612 $152,839 $12,656
$2,112 $4 $598 $2,344
$28,493 $80,341 $17,280
$3,016,170 $11,830 $5,402,297 $486,466 $195,951
$65,160
$123,062 $35,555
$463
$16,162 $23,950
$47,823
$187,510 $0 $59,505 $0 $0
$519,151 $5,518 $131,903 $15,315
$498,418 $29,843 $21,128 $33,806
$116,949 $2,293 $6,309 $1,904
$494,488 $2,728 $30,441
$77,890
$1,629,006 $0 $40,382 $237,230 $81,466
$1,072,846 $300 $75,564 $43,661
$478,852 $12,300 $66,503 $18,981
$1,276,374 $26,191 $149,875 $67,309
$622,129 $80 $48,739
$3,450,201 $0 $38,871 $340,681 $129,951
70300 Net Tenant Rental Revenue
70610 Capital Grants
70710 Management Fee
70600 HUD PHA Operating Grants
70400 Tenant Revenue - Other
70500 Total Tenant Revenue
70700 Total Fee Revenue
70720 Asset Management Fee
70730 Book Keeping Fee
71200 Mortgage Interest Income
70800 Other Government Grants
71100 Investment Income - Unrestricted
91100 Administrative Salaries
72000 Investment Income - Restricted
70000 Total Revenue
71500 Other Revenue
91500 Employee Benefit contributions - Administrative
91600 Office Expenses
91310 Book-keeping Fee
91200 Auditing Fees
91300 Management Fee
91000 Total Operating - Administrative
91900 Other
91700 Legal Expense
91800 Travel
92400 Tenant Services - Other
92500 Total Tenant Services
92200 Relocation Costs
92300 Employee Benefit Contributions - Tenant Services
92000 Asset Management Fee
92100 Tenant Services - Salaries
93200 Electricity
93300 Gas
93100 Water
94100 Ordinary Maintenance and Operations - Labor
93800 Other Utilities Expense
93000 Total Utilities
93600 Sewer
94500 Employee Benefit Contributions - Ordinary Maintenance
94000 Total Maintenance
94200 Ordinary Maintenance and Operations - Materials and Other
94300 Ordinary Maintenance and Operations Contracts
61
February 9, 2016 Official Minutes 91
Shelter Plus
Care
Rental Rehab
Loan Program
Other State &
Local
PIH Family Self-
Sufficiency
Program
Section 8
Moderate
Rehab Program
Central Office
Cost Center Subtotal Eliminations Total
14.238 14.896 14.856
$0 $5,686,377 -$8,535 $5,677,842
$0 $203,349 $203,349
$0 $0 $0 $0 $0 $0 $5,889,726 -$8,535 $5,881,191
$3,417,806 $62,618 $187,848 $90,929,150 $90,929,150
$0 $502,549 $502,549
$0 $2,285,379 $2,285,379 -$2,285,379 $0
$0 $65,160 $65,160 -$65,160 $0
$0 $660,115 $660,115 -$660,115 $0
$0 $3,010,654 $3,010,654 -$3,010,654 $0
$0 $35,197 $35,197
$3,055 $24,898 $43 $7,418 $114,564 $114,564
$1,620 $0 $1,620 $1,620
$18,508 $70,365 $0 $4,545 $1,453,086 -$48,941 $1,404,145
$0 $7,131 $7,131
$3,417,806 $23,183 $95,263 $62,618 $187,891 $3,022,617 $101,943,677 -$3,068,130 $98,875,547
$139,025 $7,830 $49,259 $1,283,525 $4,320,015 $4,320,015
$1,000 $2,000 $73,650 $73,650
$0 $2,278,272 -$2,278,272 $0
$0 $660,115 -$660,115 $0
$42,585 $1,417 $711 $32,191 $929,248 $2,678,672 $2,678,672
$15,597 $47,694 $3,436 $298,762 $1,520,991 $1,520,991
$1,023 $486 $48,580 $354,196 $354,196
$37 $7 $725 $5,827 $5,827
$56,047 $377 $34,298 $216,836 -$56,048 $160,788
$253,291 $9,247 $49,428 $0 $86,756 $2,597,138 $12,108,574 -$2,994,435 $9,114,139
$0 $65,160 -$65,160 $0
$34,641 $0 $193,258 $193,258
$0 $463 $463
$27,372 $0 $166 $67,650 $67,650
$125,711 $500 $0 $174,034 $174,034
$125,711 $0 $500 $62,013 $0 $166 $435,405 $0 $435,405
$0 $671,887 $671,887
$276 $25,004 $608,475 $608,475
$29 $2,642 $130,126 $130,126
$0 $527,657 $527,657
$0 $77,890 $77,890
$0 $0 $0 $0 $305 $27,646 $2,016,035 $0 $2,016,035
$0 $53 $1,192,424 $1,192,424
-$3,874 $277 $27,434 $600,473 $600,473
$0 $1,519,749 $1,519,749
$0 $55 $671,003 $671,003
$0 $0 -$3,874 $0 $277 $27,542 $3,983,649 $0 $3,983,649
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
62
February 9, 2016 Official Minutes 92
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
PROFIT AND LOSS SCHEDULE
FOR THE YEAR ENDED MARCH 31, 2015
(Continued)
Public Houisng
(Including
Capital Fund)
Community
Development
Block Grants
Housing Choice
Voucher
Program
Discretely
Presented
Component
Unit - De Anza
Blended
Component
Unit - Casa Del
Rio
CDFA Number 14.850/14.872 14.218 14.871
$0 $70,501
$522,123
$51,377 $11 $13,790 $12,985 $5,255
$573,500 $11 $13,790 $83,486 $5,255
$202,466 $15 $9,908 $55,796 $42,808
$1,895 $326 $58
$108,973 $4 $30,925 $23,577
$16
$313,334 $361 $40,891 $79,373 $42,808
$282 $61,420 $72,000
$152,779 $758 $132,121
$90,961 $24,221 $3,734
$73,399 $5,428 $1,316
$317,421 $758 $193,541 $101,649 $5,050
$14,107 $129,374 $614,296 $107,774
$28,738 $3,140
$14,107 $0 $129,374 $643,034 $110,914
$9,566,409 $12,960 $5,918,651 $1,971,919 $571,395
$553,073 -$12,960 $76,604,591 $3,526 -$55,265
$77,651,698
$934,719
$1,868,058 $445 $148,290 $1,017,334 $184,768
$11,434,467 $13,405 $84,653,358 $2,989,253 $756,163
$469,378 $12,538
-$469,378 -$138,852
$322,708
-$322,708
$0 $12,538 -$138,852 $0 $0
-$1,314,985 -$867 -$2,268,968 -$1,013,808 -$240,033
$160,650 $0 $79,950 $189,982 $24,690
$10,087,240 $892 $5,350,303 $15,453,682 -$337,708
$0 $0
$3,081,335
$0
13932 76440 2160 960
12453 75562 2142 944
$45,182
$502,549
95100 Protective Services - Labor
96110 Property Insurance
95000 Total Protective Services
95200 Protective Services - Other Contract Costs
95300 Protective Services - Other
96200 Other General Expenses
96140 All Other Insurance
96100 Total insurance Premiums
96120 Liability Insurance
96130 Workmen's Compensation
96400 Bad debt - Tenant Rents
96210 Compensated Absences
96300 Payments in Lieu of Taxes
96730 Amortization of Bond Issue Costs
96700 Total Interest Expense and Amortization Cost
96710 Interest of Mortgage (or Bonds) Payable
96000 Total Other General Expenses
97000 Excess of Operating Revenue over Operating Expenses
96900 Total Operating Expenses
97350 HAP Portability-In
97400 Depreciation Expense
97300 Housing Assistance Payments
10010 Operating Transfer In
10020 Operating transfer Out
90000 Total Expenses
10100 Total Other financing Sources (Uses)
10091 Inter Project Excess Cash Transfer In
10092 Inter Project Excess Cash Transfer Out
11040 Prior Period Adjustments/Equity Transfers/Correction of Errors
11020 Required Annual Debt Principal Payments
11030 Beginning Equity
10000 Excess (Deficiency) of Total Rev Over (Under) Total Expenses
11170 Administrative Fee Equity
11620 Building Purchases
11210 Number of Unit Months Leased
11270 Excess Cash
11180 Housing Assistance Payments Equity
11190 Unit Months Available
63
February 9, 2016 Official Minutes 93
Shelter Plus
Care
Rental Rehab
Loan Program
Other State &
Local
PIH Family Self-
Sufficiency
Program
Section 8
Moderate
Rehab Program
Central Office
Cost Center Subtotal Eliminations Total
14.238 14.896 14.856
$0 $70,501 $70,501
$0 $522,123 $522,123
$83 $7,393 $90,894 $90,894
$0 $0 $0 $0 $83 $7,393 $683,518 $0 $683,518
$54 $4,710 $315,757 $315,757
$871 $75,448 $78,598 $78,598
$1,539 $5 $605 $1,096 $26,424 $193,148 $193,148
$54 $4,801 $4,871 $4,871
$1,539 $5 $0 $605 $2,075 $111,383 $592,374 $0 $592,374
$2,531 $0 $136,233 $136,233
$3,556 $1,393 $1,637 $130,420 $422,664 $422,664
$0 $118,916 $118,916
$0 $80,143 $80,143
$3,556 $1,393 $2,531 $0 $1,637 $130,420 $757,956 $0 $757,956
$0 $0 $865,551 $865,551
$0 $31,878 $31,878
$0 $0 $0 $0 $0 $0 $897,429 $0 $897,429
$384,097 $10,645 $48,585 $62,618 $91,133 $2,901,688 $21,540,100 -$3,059,595 $18,480,505
$3,033,709 $12,538 $46,678 $0 $96,758 $120,929 $80,403,577 -$8,535 $80,395,042
$3,176,596 $150,223 $80,978,517 -$8,535 $80,969,982
$0 $934,719 $934,719
$0 $20,506 $3,239,401 $3,239,401
$3,560,693 $10,645 $48,585 $62,618 $241,356 $2,922,194 $106,692,737 -$3,068,130 $103,624,607
$136,125 $2,727 $620,768 -$620,768 $0
-$12,538 $0 -$620,768 $620,768 $0
$0 $322,708 -$322,708 $0
$0 -$322,708 $322,708 $0
$136,125 -$12,538 $0 $0 $2,727 $0 $0 $0 $0
-$6,762 $0 $46,678 $0 -$50,738 $100,423 -$4,749,060 $0 -$4,749,060
$0 $0 $0 $0 $0 $0 $455,272 $455,272
$6,762 $0 $2,142,718 $0 $50,738 $303,056 $33,057,683 $33,057,683
$0 $0 $0 $0
$0 $3,081,335 $3,081,335
$0 $0 $0
2892 336 96720 96720
2892 296 94289 94289
$0 $45,182 $45,182
$0 $0 $502,549 $502,549
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
64
February 9, 2016 Official Minutes 94
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF RELEVANT STATISTICS
FOR THE YEAR ENDED MARCH 31, 2015
Fiscal year ended March 31 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Number of employees 79 90 99 89 99 90 107 111 103 103
Number of clients served:
Public Housing 1,168 1,168 1,168 1,168 1,168 1,168 1,168 1,168 1,168 1,168
Housing Choice Voucher 6,297 6,287 6,359 6,400 6,359 6,234 6,400 6,394 6,206 6,206
Shelter plus Care 241 241 241 241 241 303 280 281 274 274
Section 8 Moderate Rehab 25 25 26 26 26 25 25 25 23 23
Section 8 Voucher 0 0 5 5 5 4 4 4 5 5
Component Units
Casa Del Rio Senior Hsg 82 82 82 82 82 82 82 82 82 82
DeAnza Gardens 180 180 180 180 180 180 180 180 180 180
Total 7,993 7,983 8,061 8,099 8,061 7,997 8,139 8,134 7,938 7,938
Capital Asset Information:
Total units 1,430 1,430 1,430 1,430 1,430 1,430 1,430 1,430 1,430 1,430
Total buildings 636 636 636 636 636 636 636 636 636 374
Total vehicles 46 46 46 46 46 49 49 49 49 49
By project: Units Bldg Last change Units Bldg
11001 Martinez 50 28
11002 Bay Point - 1 2002 83 43
11003 Antioch 36 19
11004 Brentwood 44 24
11005 Pittsburgh 171 57
11006 Richmond 71 30
11008 Oakley 30 16
11009a Richmond 81 44
11009b Richmond 56 28
11010 Rodeo 248 63
11011 Martinez 50 1
11012 Oakley 40 13
11013 Bay Point 50 14
11015 Antioch 100 4
45001 San Pablo 100 31
45002 San Pablo 41 1
Total PHA 1,168 374
Component units:
Casa Del Rio Senior Hsg 82 1
DeAnza Gardens 180 22 2005 180 22
The accompanying Independent Auditors’ Report and notes are an integral part of this schedule.
65February 9, 2016 Official Minutes 95
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF COMPLETED CAPITAL FUND PROGRAM PROJECT
ANNUAL CONTRIBUTIONS CONTRACT SF-182
MARCH 31, 2015
CA39P01150112
Funds approved $ 1,608,961
Funds expended 1,608,961
Excess of funds approved $-
Funds advanced $ 1,608,961
Funds expended 1,608,961
Excess of funds advanced $-
The accompanying Independent Auditors’ Report and notes are an integral part of this statement.
66
February 9, 2016 Official Minutes 96
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
We have audited, in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the business-type activities of the
Housing Authority of the County of Contra Costa, California, as of and for the year ended March 31, 2015,
and the related notes to the financial statements, which collectively comprise the Housing Authority of the
County of Contra Costa, Californias basic financial statements, and have issued our report thereon dated
November 20, 2015. Our report includes a reference to other auditors who audited the financial statements
of the blended component units and discretely presented component units, as described in our report on the
Housing Authority of the County of Contra Costa, Californias financial statements. This report does not
include the results of the other auditors testing of internal control over financial reporting or compliance
and other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Housing Authority of
the County of Contra Costa, California’s internal control over financial reporting (internal control) to
determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Housing Authority of the County of Contra Costa, Californias internal control.
Accordingly, we do not express an opinion on the effectiveness of the Housing Authority of the County of
Contra Costa, Californias internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Authoritys
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
67
February 9, 2016 Official Minutes 97
February 9, 2016 Official Minutes 98
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
Report on Compliance for Each Major Federal Program
We have audited the Housing Authority of the County of Contra Costa, Californias compliance with the
types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular
A-133 Compliance Supplement that could have a direct and material effect on each of the Housing Authority
of the County of Contra Costa, Californias major federal programs for the year ended March 31, 2015. The
Housing Authority of the County of Contra Costa, California’s major federal programs are identified in the
summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
Management Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to each of its major federal programs.
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each of the Housing Authority of the County
of Contra Costa, California’s major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance with auditing
standards generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Those standards
and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the Housing Authority of the County of Contra Costa, California’s compliance with those
requirements and performing such other procedures as we consider necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination on the Housing Authority of the County
of Contra Costa, California’s compliance.
69
February 9, 2016 Official Minutes 99
February 9, 2016 Official Minutes 100
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATUS OF PRIOR AUDIT FINDINGS
MARCH 31, 2015
The audit report for the fiscal year ended March 31, 2014, contained no audit findings.
71
February 9, 2016 Official Minutes 101
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
MARCH 31, 2015
Section I - Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued:unmodified
Is a going concern explanatory paragraph included in the audit report? no
Internal control over financial reporting:
Significant deficiencies identified?no
Any significant deficiency reported as a material weakness?none reported
Noncompliance material to financial statements noted?no
Federal Awards
Does the auditors report include a statements that the auditees financial
statements include departments, agencies, or other organizational units
expending $500,000 or more in Federal awards that have separate A-133
audits which are not included in this audit? no
Dollar threshold used to distinguish between Type A and Type B programs $ 2,819,968
Auditee qualified as low-risk auditee? yes
Identification of major programs:
Shelter Plus Care 14.238
Public and Indian Housing 14.850
Housing Choice Voucher Program 14.871
Type of auditors’ report issued on compliance for major programs:unmodified
Did the audit disclose any audit findings which the auditor is required
to report under OMB A-133, paragraph 510(a)no
Internal control over major programs:
Significant deficiencies identified?no
Any significant deficiency reported as a material weaknesses?none reported
Are any known questioned costs reported?no
Were prior audit findings related to direct funding shown in the
Summary of Prior Audit Findings?no
Section II - Financial Statement Findings
None
Section III - Federal Award Findings
None
72
February 9, 2016 Official Minutes 102
RECOMMENDATIONS
RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending
DECEMBER 31, 2015.
BACKGROUND
California Government Code (CGC) Section 53646 requires the Housing Authority of the County of Contra Costa
(HACCC) to present the Board of Commissioners with a quarterly investment report that provides a complete
description of HACCC’s portfolio. The report is required to show the issuers, type of investments, maturity dates, par
values (equal to market value here) and the current market values of each component of the portfolio, including funds
managed by third party contractors. It must also include the source of the portfolio valuation (in HACCC’s case it is
the issuer). Finally, the report must provide certifications that (1) all investment actions executed since the last report
have been made in full compliance with the Investment Policy and; (2) HACCC will meet its expenditure obligations
for the next six months. (CGC 53646(b)).
The state-mandated report has been amended to indicate the amount of interest earned and how the interest was
allocated. The amended report is attached.
In summary, HACCC had $25,512.29 in interest earnings for the quarter ending December 31, 2015. That interest
was earned within discrete programs and most of the interest earned is available only for use within the program
which earned the interest. Further, interest earnings may be restricted to specific purposes within a given program.
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.5
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:Investment Report for Quarter Ending December 31, 2015
February 9, 2016 Official Minutes 103
BACKGROUND (CONT'D)
>
The Housing Choice Voucher Program reserve as of 12/31/2013 held in cash and investments was transitioned to
HUD held program reserve account. The only funds remaining in investments for the Housing Voucher program
is for the Family Self Sufficiency escrow account.
Non-restricted interest earnings within both the voucher and public housing programs must be used solely within
those programs, but such interest earnings can be used for a wider range of purposes within the individual
programs. The interest earned in the State and Local fund can be used for any purpose within HACCC’s scope of
operations.
The interest earned for the quarter ending December 31, 2015 is shown below. A more detailed report is attached.
Public Housing Housing Choice Voucher
Fund
Rental
Rehabilitation
Fund
Management
Non-Restricted
Interest Earned
Restricted
Interest
Earned
Non-Restricted
Interest Earned
Restricted
Interest Earned
Non-Restricted
Interest Earned
$5,589.35 $275.38 $14,184.29 $863.45 $4,599.82
FISCAL IMPACT
None. For reporting purposes only.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to accept the investment report it would result in an audit finding of
non-compliance and could ultimately affect future funding from the U.S. Department of Housing and Urban
Development (HUD).
CLERK'S ADDENDUM
ATTACHMENTS
Investment Report
February 9, 2016 Official Minutes 104
February 9, 2016 Official Minutes 105
February 9, 2016 Official Minutes 106
February 9, 2016 Official Minutes 107
February 9, 2016 Official Minutes 108
RECOMMENDATIONS
RECEIVE the Housing Authority of the County of Contra Costa’s rolling annual public housing occupancy report for
the period ending November 30, 2015.
BACKGROUND
Attached are the Housing Authority of the County of Contra Costa’s (HACCC's) rolling annual public housing
occupancy report for the period ending November 30, 2015, and the accompanying leasing trend report for the same
period. The occupancy report shows the percentage of each individual property that is leased at the end of a given
month. These are then subtotaled separately for all properties except North Richmond and for North Richmond alone
before being combined to show HACCC's overall occupancy percentage. North Richmond is shown separately
because staff are in the process of applying to HUD to remove that property from HACCC's public housing portfolio.
The trend report shows the sum of the number of new leases signed in a given month minus the number of new
vacancies. A positive umber shows that the occupancy rate increased during that period, a negative number indicates
a decline.
For reference, the U.S. Department of Housing and Urban Development (HUD) annually evaluates a public housing
authority’s (PHA) management of its public housing program using four indicators, referred to collectively as the
Public Housing Assessment System (PHAS). The management operations indicator is worth 25 points. Of these 25
points, the occupancy rate sub-indicator is worth 16 points. Occupancy points are assigned as follows:
Action of Board On: 02/09/2016 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Federal D. Glover,
Commissioner
Jannel George-Oden,
Commissioner
ABSENT:John Gioia, Commissioner
Karen Mitchoff,
Commissioner
Fay Nathaniel, Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: February 9, 2016
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.3
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 9, 2016
Contra
Costa
County
Subject:Public Housing Rolling Annual Occupancy Report for the Period Ending November 30, 2015
February 9, 2016 Official Minutes 109
BACKGROUND (CONT'D)
>
≥98%16 Points
< 98% but ≥ 96%12 Points
< 96% but ≥ 94%8 Points
< 94% but ≥ 92%4 Points
< 92% but ≥ 90%1 Point
< 90%0 Points
HUD considers a PHAs entire portfolio when assigning points for the occupancy sub-indicator.
FISCAL IMPACT
None. For reporting purposes only.
CONSEQUENCE OF NEGATIVE ACTION
None. Information item only.
CLERK'S ADDENDUM
ATTACHMENTS
Occupancy Report
February 9, 2016 Official Minutes 110
February 9, 2016 Official Minutes 111