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CALENDAR FOR THE BOARD OF COMMISSIONERS
BOARD CHAMBERS, COUNTY ADMINISTRATION BUILDING
1025 ESCOBAR STREET
MARTINEZ, CALIFORNIA 94553-1229
KAREN MITCHOFF, CHAIR
FEDERAL D. GLOVER, VICE CHAIR
JOHN GIOIA
CANDACE ANDERSEN
DIANE BURGIS
CYNTHIA JORDAN
JOANN SEGURA
JOSEPH VILLARREAL, EXECUTIVE DIRECTOR, (925) 957-8000
To slow the spread of COVID-19, in lieu of a public gathering, the Board meeting will be
accessible via television and live-streaming to all members of the public as permitted by
Government Code section 54953(e). Board meetings are televised live on Comcast Cable 27,
ATT/U-Verse Channel 99, and WAVE Channel 32, and can be seen live online at
www.contracosta.ca.gov.
PERSONS WHO WISH TO ADDRESS THE BOARD DURING PUBLIC COMMENT OR
WITH RESPECT TO AN ITEM THAT IS ON THE AGENDA MAY CALL IN DURING THE
MEETING BY DIALING 888-278-0254 FOLLOWED BY THE ACCESS CODE 843298#. To
indicate you wish to speak on an agenda item, please push "#2" on your phone. Access via Zoom
is also available via the following link: https://cccounty-us.zoom.us/j/87344719204. To indicate
you wish to speak on an agenda item, please “raise your hand” in the Zoom app. To provide your
contact information, please contact Clerk of the Board at clerkoftheboard@cob.cccounty.us or call
925-655-2000.
Meetings of the Board are closed-captioned in real time. Public comment generally will be limited
to two minutes. Your patience is appreciated. A Spanish language interpreter is available to assist
Spanish-speaking callers.
A lunch break or 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 online at
www.contracosta.ca.gov.
ANNOTATED AGENDA & MINUTES
March 8, 2022
1:00 P.M. Convene and call to order.
CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.6 on the following agenda ) -
CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.6 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 CONSIDER Consent Items previously removed.
There were no items removed from consent for discussion.
D. 2 PUBLIC COMMENT (2 Minutes/Speaker)
There were no request to provide public comment.
D.3 CONSIDER approving the Housing Authority's Fiscal Year 2023 Annual Agency
Budget, and adopting PHA Board Resolution No. 5242 approving the Annual
Agency Budget on HUD Form 52574.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
D.4 CONSIDER ratifying the award of 25 project-based vouchers (PBV) to
Community Housing Development Corporation for its new construction project,
Legacy Court Apartments located in Richmond, CA, conditional upon this project
meeting all HUD requirements and receiving all other required financing.
ADJOURN
Adjourned today's meeting at 1:13 p.m.
CONSENT ITEMS:
C.1 RECEIVE the Housing Authority of the County of Contra Costa’s investment
report for the quarter ending December 31, 2021.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
C.2 APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or
designee, to execute a contract with Iron Mountain Information Management, LLC
in an amount not to exceed $376,000 to provide document imaging and shredding
services for all tenant files for the Housing Choice Voucher program and the Public
Housing program, through May 31, 2026. (100% HUD and administrative fees)
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
C.3 DENY claim filed by Sheetmetal & Assoc., an INLC.; Shannon O. Murphy.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
C.4 APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or
designee, to execute a five-year contract with Contra Costa Interfaith Transitional
Housing (dba Hope Solutions) in an amount not to exceed $2,250,000 to administer
the Continuum of Care Rental Subsidy program with the Housing Authority.
(100% HUD)
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
C.5 ACCEPT the financial and program compliance audit report for the period April 1,
2020 through March 31, 2021, prepared by Harn & Dolan CPA's, Walnut Creek,
California.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
C.6 ADOPT Resolution No. 5243 authorizing the Housing Authority to become a
limited partner in the DeAnza Gardens, L.P. limited partnership and to pay a
disposition fee of $1,000.
Commissioner John Gioia AYE
Commissioner Candace Andersen AYE
Commissioner Diane Burgis AYE
Commissioner Karen Mitchoff AYE
Commissioner Federal D. Glover AYE
Commissioner Cynthia Jordan AYE
Commissioner Joanne Segura ABSENT
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, 1025 Escobar Street, Martinez, CA 94553; by fax: 925-655-2006; or via email to
clerkoftheboard@cob.cccounty.us.
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) 655-2000. An assistive listening device is available from the Clerk. 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) 655-2000, 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) 655-2000. 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, 1025 Escobar Street, Martinez, California, and may also be viewed on the County’s Web
Page.
AGENDA DEADLINE: Thursday, 12 noon, 12 days before the Tuesday Board meetings.
RECOMMENDATIONS
1. APPROVE the Housing Authority's Fiscal Year 2023 Annual Agency Budget; and
2. ADOPT PHA Board Resolution No. 5242 Approving the Annual Agency Budget on HUD Form 52574.
BACKGROUND
In compliance with the U. S. Department of Housing and Urban Development's (HUD) regulations, the Housing Authority of the County of
Contra Costa (HACCC) has prepared its proposed budget for fiscal year (FY) 2023. At present, the federal government's FY 2023 budget is not
finalized. The federal fiscal year (FFY) runs from October 1st through September 30th, meaning that HACCC's budget year is bifurcated by
two federal fiscal years. Additionally, most of HACCC's programs are funded on a calendar year basis which adds another layer of complexity
to budget projections. HACCC's proposed budget is based on current HUD funding advances. Staff will update HACCC's budget as part of the
quarterly budget to actual presentations unless a significant change occurs earlier.
Three primary factors impact the funding of a housing authority’s public housing and housing choice voucher (HCV) programs. These factors
are the amount of funding allocated to HUD by Congress, the national utilization rate (number of families housed) and the local utilization rate.
Congressional funding of HUD sets baseline funding for the Department's programs. For well over a decade HUD has not been fully funded by
Congress. As a result, housing authority programs are almost always funded at less than 100% of need. Once Congressional funding is known,
HUD adjusts the funding provided to housing authorities based on the national utilization rate of each program. Utilization is the number of
families under contract at a given time or period. At the national level, if utilization has increased past HUD's budget projections because more
families are being housed, then HUD will reduce the money available to each housing authority. If fewer families are being housed nationally,
then the money available to each housing authority is increased. At the individual housing authority level, proration works in reverse. Within the
parameters set by Congressional funding and national utilization, funding for an individual housing authority will rise when local utilization
increases and will fall when the number of families housed drops. HUD calculates program funding and utilization retroactively. Final public
housing funding in a given calendar year is not usually calculated until November of the same calendar year. Funding for the voucher program
is normally adjusted quarterly, with final funding usually calculated by March of the following calendar year.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
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:March 8, 2022
Contra
Costa
County
Subject:ANNUAL AGENCY BUDGET
BACKGROUND (CONT'D)
As stated above, housing authorities usually never receive full program funding. Further, there are often significant swings in program
funding levels from year to year. Over the past seven years, public housing proration levels have been as follows:
2022 98.25% (current HUD projection)
2021 95.23% (total FYE funding not yet finalized)
2020 112.00% (because of COVID-19 supplemental funding)
2019 96.54%
2018 94.74%
2017 93.10%
2016 90.21%
2015 85.36%
2014 88.79%
2013 81.86%
During the same period, HCV administrative fee proration levels have been as follows:
2022 84.00% (advanced projection)
2021 80.00% (total FYE funding not yet finalized)
2020 92.00% (because of COVID-19 supplemental funding)
2019 79.00%
2018 80.00%
2017 77.51%
2016 83.94%
2015 81.57%
2014 79.77%
2013 69.27%
In developing HACCC’s proposed budget, staff used HUD's two-year forecasting tool to project Housing Assistance Payments (HAP) for
the HCV program including updated projections, and the PHA Excel Tool for computing Operating Subsidy eligibility for the Public
Housing Program. Other revenue items were estimated by utilizing the past three-year's median funding levels.
The two primary expenditures, labor, and benefits, were computed using projected costs based on the updated approved pay schedule. All
other expenditures were computed by augmenting the three-year median funding levels with any new planned activities.
HACCC’s proposed overall budget is shown below in comparison to last year’s approved budget, along with the projected change in reserve
levels. This overview is followed by a breakdown of HACCC’s four major program areas, HCV, Public Housing, State and Local programs
and Certificate programs. Each section provides a brief program overview, the projected budget, last year’s approved budget, the projected
change in reserve levels and an explanation of the change from prior year. A more detailed budget is available for viewing at HACCC’s
administrative office.
Agency Summary
2022-2023 Budget 2021-2022 Budget Change
Revenue $215,571,829 $ 209,095,880 $ 6,475,949
Operating Expenditures $ 28,916,788 $ 30,306,338 -$ 1,389,550
Program Costs, Debt
Service & Other Capital
Improvements $185,899,792 $ 178,098,764 $ 7,801,028
To Reserves $ 755,249 $ 690,778 $ 64,471
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.
Housing Choice Voucher Overview:
Restricted Reserves Unrestricted Reserves Consolidated Reserves
Projected 3/31/2022 $ 224,900 $13,880,008 $14,104,908
FY 2023 Budget Impact $ 1,095,467 $ (340,218)$ 755,249
Projected 3/31/2023 $ 1,320,367 $13,539,790 $14,860,157
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 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 9,368 families. Due to funding and regulatory restrictions, HACCC is projected to house an average of 8,622
families per month under the proposed budget.
HCV Summary
2022-2023 Budget 2021-2022 Budget Change
Revenue $185,918,944 $181,696,744 $ 4,222,200
Expenditures $ 9,525,737 $ 11,176,341 -$1,650,604
Program Costs, Debt
Service & Other Capital
Improvements $176,463,789 $169,518,140 $ 6,945,649
To Reserves -$ 70,582 $ 1,002,263 -$ 1,072,845
Restricted Reserves Unrestricted Reserves Consolidated Reserves
Projected 3/31/2022 $ -0-$ 5,647,007 $ 5,647,007
FY 2023 Budget Impact $ 17,167 -$ 87,749 -$ 70,582
Projected to 3/31/2023 $ 17,167 $ 5,559,258 $ 5,576,425
Explanation of Change:
The increase in revenue is based on HUD’s preliminary funding projections. Specifically, HUD appears to have included portability billing
in their projections for HACCC’s budget. The reduced expenditures are primarily because the 2021 budget included onetime costs
associated with the absorption of the Richmond Housing Authority that will not be replicated this year.
Public Housing & Capital Fund Overview:
HACCC owns and manages 963 public housing units at 13 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 limited by income, and are significantly
less than the operating costs of the properties, HUD provides a subsidy to supplement 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 as well as for management improvements.
Public Housing Summary - All Units
2022-2023 Budget 2021-2022 Budget Change
Revenue $14,271,196 $13,924,080 $ 347,116
Expenditures $12,508,069 $12,393,722 -$ 114,347
Program Costs, Debt
Service & Other Capital
Improvements
$ 1,497,250 $ 1,675,885 $ 178,635
To Reserves $ 265,877 -$ 145,527 $ 411.404
Public Housing by Asset
Management Property (Amp)Area 2022-2023
Revenue
2022-2023
Expenditure
2022-2023
Residual/ - Loss
AMP-1,Ca001,Ca011,Martinez $ 992,237 $ 899,800 $ 92,437
AMP-2,Ca045a,Ca045b San Pablo $1,617,208 $1,409,960 $ 207,248
AMP-3,Ca004,Ca008,Ca012 Brentwood,
Oakley $1,188,547 $1,282,388 -$ 93,841
AMP-4,Ca010 Rodeo $3,198,186 $3,429,673 -$ 231,488
AMP-5,Ca005 Pittsburg $2,062,263 $2,148,191 -$ 85.928
AMP-6,Ca009a,Ca009b North
Richmond $ 344,146 $ 43,624 $ 300,522
AMP-7,Ca006 North
Richmond $ 75,010 $ 14,119 $ 60,891
AMP-8,Ca002,Ca013 Bay Point $ 454,885 $ 537,191 -$ 82,307
AMP-9,Ca003,Ca015 Antioch $1,152,098 $1,053,571 -$ 98,527
Capital Funding All AMPS $3,186,617 $3,186,803 -$ 186
Program Totals $14,271,196 $14,005,319 $ 265,877
Public Housing Reserves Restricted Reserve
Balance
Unrestricted Reserve
Balance Reserve Balance
Projected 3/31/22 $0 $3,004,267 $3,004,267
FY 2023 Budget Impact $0 $ 265,877 $ 265,877
Projected to 3/31/22**$0 $3,270,144 $3,270,144
** Unrestricted Reserve balance should not be below $2,084,678
Explanation of Change:
The increase in revenue and expenditures are based on HUD’s preliminary funding projections.
Housing Certificate Program Overview:
HACCC's Housing Certificate Program is now solely comprised of the Continuum of Care Funding Program. The Continuum of 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 Health, Housing and Homeless Program currently operates the
supportive services and casework portions. The supportive services and casework will be shifting from the County to HOPE Solutions
during 2022. Approximately 323 clients are assisted under this program.
Certificate Programs
Summary 2022-2023 Budget 2021-2022 Budget Change
Revenue $7,591,207 $6,456,381 $1,134,826
Expenditures $ 531,460 $ 372,432 $ 159,028
Program Costs, Debt
Service & Other Capital
Improvements $7,149,022 $6,208,194 $ 940,828
To Reserves -$ 89,275 -$ 124,245 -$ 124,245
Certificate Programs
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/22 $0 -$ 35,104 -$ 35,104
FY 2022 Budget Impact $0 -$ 89,275 -$ 89,275
Projected to 3/31/23 $0 -$124,379 $ 34,970
Explanation of Change:
The primary changes in the Certificate Program related to revenues and program costs are a result of increases in HAP funding. The increase
in expenditures is a direct result in an increase compliance monitoring.
State and Local Overview:
HACCC administers several programs and activities that are either not HUD-funded, or that involve non-restricted HUD funds. HACCC is
the managing general partner for two tax credit projects, DeAnza Gardens and Casa Del Rio. Additionally, under HUD's asset management
regulations, the State and Local fund receives management fees for administering the public housing and HCV programs. Pension & Other
Post-Employment Benefit costs are also reflected in the State and Local fund.
State & Local Summary 2022-2023 Budget 2021-2022 Budget Change
Revenue $7,790,482 $7,018,675 $771,807
Expenditures $6,351,523 $6,363,843 -$ 12,320
Program Costs, Debt
Service & Other Capital
Improvements $ 789,730 $ 696,545 $ 93,185
To Reserves $ 649,229 -$ 41,713 $690,942
State & Local Reserves Restricted Reserve Bal.Unrestricted Reserve
Bal.Reserve Balances
Projected 3/31/22 $ 224,900 $5,263,188 $5,488,088
FY 2023 Budget Impact $1,078,299 -$ 429,070 $ 649,229
Projected to 3/31/23 $1,303,199 $4,834,118 $6,137,317
Explanation of Change:
The projected changes in revenue and expense are primarily a result of the tax credit properties. The Reserve Balance reported does not
include the unfunded Pension and Other Post-Employment Benefits (OPEB) in the amount of $12,034,912.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners choose not adopt Resolution No. 5242 Approving HACCC’s budget for the fiscal year 2022-2023,
HACCC will not be in compliance with HUD regulations. Further, HACCC will 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.
AGENDA ATTACHMENTS
RES 5242 HUD FORM 52574
MINUTES ATTACHMENTS
Signed Resolution No. 5242
(exp. 06/30/2022)
PHA Board Resolution U.S. Department of Housing OMB No. 2577-0026
Approving Operating Budget and Urban Development
Office of Public and Indian Housing -
Real Estate Assessment Center (PIH-REAC)
form HUD-52574 (06/2019) Previous editions are obsolete
Public reporting burden for this collection of information is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to
complete this form, unless it displays a currently valid OMB control number.
This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income public housing program and provides a summary of the proposed/budgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justification of certain specified amounts. HUD reviews the
information to determine if the operating plan adopted by the public housing agency (PHA) and the amounts are reasonable, and that the PHA is in compliance with procedures
prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality.
PHA Name: PHA Code:
Board Resolution Number:
Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following
certifications and agreement to the Department of Housing and Urban Development (HUD) regarding the Board’s
approval of (check one or more as applicable):
DATE
Operating Budget approved by Board resolution on:
Operating Budget submitted to HUD, if applicable, on:
Operating Budget revision approved by Board resolution on:
Operating Budget revision submitted to HUD, if applicable, on:
I certify on behalf of the above-named PHA that:
1. All statutory and regulatory requirements have been met;
2. The PHA has sufficient operating reserves to meet the working capital needs of its developments;
3. Proposed budget expenditure are necessary in the efficient and economical operation of the housing for the purpose of
serving low-income residents;
4. The budget indicates a source of funds adequate to cover all proposed expenditures;
5. The PHA will comply with the wage rate requirement under 24 CFR 968.110(c) and (f); and
6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110(i).
I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith,
if applicable, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18
U.S.C. 1001, 1010, 1012.31, U.S.C. 3729 and 3802)
Print Board Chairperson’s Name:
Signature: Date:
PHA Fiscal Year Beginning:
RECOMMENDATIONS
Consider RATIFYING the conditional award of 25 project-based vouchers (PBV) to Community Housing Development Corporation (CHDC)
for its new construction project, Legacy Court Apartments located in Richmond, CA. The award of these PBVs is conditional upon this project
meeting all HUD requirements and receiving all other required financing.
BACKGROUND
A housing authority can utilize up to 20% of its Housing Choice Voucher (HCV) funding to “attach” rent subsidies to specific housing units.
The attached subsidy is known as a project-based voucher (PBV). PBVs are a component of the HCV program and share most of the same rules
and regulations. PBVs are attached to units via a contract with the owner that requires the units be rented to families eligible for the HCV
program. While tenants living in a PBV unit may move with regular voucher assistance, the PBV remains attached to the unit and the owner
must select another HCV-eligible tenant for that unit. The advantage of PBVs for owners is that the PBV commitment from a housing authority
can be used to leverage financing for the construction, rehabilitation, or preservation of housing for low-income families by providing a greater
cash-flow than the property would otherwise generate. This is because most funding available to owners of affordable projects restricts the rent
that can be collected from tenants to an affordable amount that is usually far less than a comparable unit would merit on the open market.
However, because the HCV program pays market rate rents by subsidizing the difference between an affordable rent for the tenant and the
market rate rent for a particular unit, and the PBV program uses this same basic formula, the amount of rent that an owner can collect from a
PBV unit is usually significantly higher than otherwise available to the project. This allows the owner to leverage far more financing than if
PBVs were not available and thus can be crucial to the success of a given project. The primary advantage of PBVs to a housing authority is that
they help increase or preserve the supply of permanent, affordable housing available to both the community and to HCV recipients.
HUD requires housing authorities to utilize a competitive process to select developments that will receive PBV or RAD PBV assistance. A
housing authority can utilize its own competition or may choose projects that were competitively awarded affordable housing funds under a
federal, state, or local government program (e.g., CDBG, HOME, competitively awarded Low-Income Housing Tax Credits). If the competitive
process of another governmental entity is used, the award of those funds cannot have occurred more than three years from the PBV selection
date, and the earlier selection proposal must not have involved any consideration that the project would receive PBV assistance.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
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: March 8, 2022
Joseph Villarreal, Executive Director
By: , Deputy
cc:
D.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:March 8, 2022
Contra
Costa
County
Subject:THE AWARD OF 25 PROJECT-BASED VOUCHERS TO COMMUNITY HOUSING DEVELOPMENT CORPORATION OF
NORTH RICHMOND FOR LEGACY COURT APARTMENTS IN RICHMOND, CA
BACKGROUND (CONT'D)
There are two methods by which developers can secure PBV assistance. One method is through a competitive solicitation. In September of
2015, HACCC posted a competitive solicitation that advertised the availability of up to 500 units for PBV assistance, conditioned on the
acceptance of responders of RAD PBV assistance as part of the award. Twelve developers submitted applications in response to the request for
proposals (RFP) and were conditionally approved for 189 RAD PBV and 121 traditional PBV units of assistance. The second method by which
PBV assistance can be awarded is through a non-competitive process. As provided for in HACCC’s Section 8 Administrative Plan approved by
the Board of Commissioners, HACCC can accept proposals for PBV assistance from owners that were selected in another governmental
entity’s affordable housing competition. HACCC targets projects awarded funding by the Contra Costa County Department of Conservation and
Development in one or more of its competitions for HOME, CDBG, HOPWA or other affordable housing programs. HACCC has taken this
approach to maximize the success rate of projects funded by both the County and HACCC.
Legacy Court was a project inherited from the Richmond Housing Authority (RHA). RHA had completed its review of the project and awarded
the project 25 PBVs but the supporting documentation was never provided to HACCC. Accordingly, HACCC refused to honor the commitment
made by RHA. After an extensive search, the documentation was discovered by CHDC staff and provided to HACCC in late December of 2021.
After review of the documentation, HACCC has agreed to proceed with the commitment of PBVs to CHDC for the Legacy Court project.
This Board Order seeks to ratify the award of 25 PBVs. If approved by the Board, HACCC will eventually enter into a housing assistance
payment contract (HAP) with the owner of the development for an initial term of 20 years and an extension of the initial term of 20 years.
Federal statute permits the initial term to be anywhere from one to twenty years. HACCC utilizes a twenty-year term to accommodate the tax
credit compliance term and to provide projects with the maximum financing available. In addition, the Federal statute also permits housing
authorities to grant an extension of up to twenty years to the PBV contract at signing. HACCC utilizes the twenty-year extension to further
increase the financing available to the project and to ensure long-term affordability of the units. Any contract extensions are subject to the
availability of federal funding for the HCV program.
All tenants of PBV units must be screened for eligibility for the HCV program by HACCC and must come from HACCC’s PBV site-based
wait list for the property. The PBV site-based wait list is open to all families on HACCC’s HCV wait list. The property owner will then select
tenants for occupancy of a particular unit after conducting additional suitability screening consistent with their tenant screening and eligibility
policies for that property. Tenants in PBV units will sign an initial lease with a one-year term. After one year, a PBV tenant can move from the
PBV unit by using regular tenant-based HCV assistance subject to availability. If a PBV property does not continuously lease up all its PBV
units, or if the property fails to meet HUD’s Housing Quality Standards for health and safety, then the PBV units awarded to that property can
be rescinded.
To date, HACCC has awarded 1,764 PBVs in previous funding competitions. Staff recommends that HACCC award 25 PBV units to CHDC for
Legacy Court Apartments in Richmond.
FISCAL IMPACT
The Legacy Court project is expected to receive approximately $53.5 million in rent and subsidies if the proposed contract and terms are
approved. Funding for project-based vouchers is provided by utilizing a portion of the Housing Authority of the County of Contra Costa’s
(HACCC) tenant-based voucher funding.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board not ratify the award of 25 PBV units to Community Housing Development Corporation on behalf of Legacy Courts, the
project will likely not be able to proceed as the rental assistance for these units is critical to its financial viability
RECOMMENDATIONS
RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending December 31st, 2021.
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 $23,338.25 in interest earnings for the quarter ending Dec 31st, 2021. 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.
The Housing Choice Voucher Program reserve as of 12/31/2013 held in cash and investments was transitioned to HUD held program reserve
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.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
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:March 8, 2022
Contra
Costa
County
Subject:INVESTMENT REPORT FOR THE QUARTER ENDING DECEMBER 31, 2021
BACKGROUND (CONT'D)
The interest earned for the quarter ending December 31st, 2021 is shown below. A more detailed report is attached.
Public
Housing
Housing Choice Voucher
Fund Central Office State & Local
Unrestricted
Interest
Earned
Restricted
Interest Earned
Unrestricted
Interest
Earned
Unrestricted
Interest Earned
Unrestricted
Interest Earned
$13,053.01 $7,397.26 $264.82 $2,623.16
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).
ATTACHMENTS
Investment Report
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
INVESTMENT REPORT : PORTFOLIO HOLDINGS BY TYPE
For Period Ending: 12/31/2021
Cantella & Company
Fidelity Market Reserves Money Market 33,550.53 0.01% ongoing ongoing 33,550.53
Discover Bank Certificate of Deposit 105,000.00 2.250% 1/11/17 1/11/22
116,818.97
Federal Farm Credit Bank Govt Agency 105,000.00 2.030% 2/10/17 2/03/22
115,622.46
Everbank Certificate of Deposit 247,000.00 2.150% 4/28/17 4/28/22
273,567.05
Capital One , NA Certificate of Deposit 100,000.00 2.300% 5/10/17 5/10/22
111,506.30
Capital One , NA Certificate of Deposit 110,000.00 2.300% 5/10/17 5/10/22
122,656.93
Goldman Sachs Certificate of Deposit 149,000.00 2.400% 6/07/17 6/07/22
166,889.80
Capital One Bank, USA Certificate of Deposit 220,000.00 2.250% 9/20/17 9/20/22
244,763.56
Barclays Bank Delaware Certificate of Deposit 247,000.00 2.250% 9/27/17 9/27/22
274,802.73
Discover Bank Certificate of Deposit 140,000.00 2.550% 12/28/17 12/28/22
157,859.78
Morgan Stanley Bank Certificate of Deposit 150,000.00 2.650% 1/11/18 1/11/23
169,885.89
Sally Mae Bank Certificate of Deposit 173,000.00 2.650% 2/08/18 2/08/23
195,935.06
Citi Bank NA Certificate of Deposit 100,000.00 3.100% 5/04/18 5/04/23
115,508.49
Goldman Sacs Certificate of Deposit 100,000.00 3.300% 7/25/18 7/25/23
116,509.04
Commenty Capital Bank Certificate of Deposit 120,000.00 3.250% 8/13/18 8/14/23
139,521.37
Citi Bank NA Certificate of Deposit 145,000.00 3.000% 2/15/19 2/15/24
166,761.92
Morgan Stanley Private Bank Certificate of Deposit 160,000.00 2.200% 7/25/19 7/25/24
177,619.29
State Bank of India Certificate of Deposit 140,000.00 1.100% 5/28/20 5/28/25
147,704.22
Texas Exchange Bank Certificate of Deposit 105,000.00 1.000% 6/19/20 6/19/25
110,252.88
State Bank of India Certificate of Deposit 105,000.00 1.000% 4/27/21 4/27/26
110,252.88
Sally Mae Bank Certificate of Deposit 75,000.00 1.050% 9/23/21 9/22/26
78,937.50
Synchrony Bank Certificate of Deposit 100,000.00 0.950% 9/24/21 9/24/26
104,752.60
GRAND TOTALS 2,929,550.53 3,251,679.25
L.A.I.F. (Acct # 25-07-003)Liquid Account 107,657.56 0.23%ongoing ongoing 107,657.56
De Anza Gardens, LP Loan 1,000,000.00 3.00% 1,000,000.00
GRAND TOTALS 4,037,208.09 4,359,336.81
Yield Investment
Date
Maturity
Date
Estimated
Value@
Maturity Date
Issuer Investment
Type
Amount
Invested
Invesment Report for Board QE 12-31-21_
(Investments Rpt to Dec 21)Last Printed: 3/1/2022
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
INVESTMENT REPORT BY FUND
Fidelity Market Reserves 33,550.53 13,524.71 19,752.40 273.42
Discover Bank 105,000.00 105,000.00
Federal Farm Credit Bank 105,000.00 105,000.00
Everbank 247,000.00 247,000.00
Capital One , NA 100,000.00 100,000.00
Capital One , NA 110,000.00 110,000.00
Goldman Sachs 149,000.00 149,000.00
Capital One Bank, USA 220,000.00 220,000.00
Barclays Bank Delaware 247,000.00 247,000.00
Discover Bank 140,000.00 140,000.00
Morgan Stanley Bank 150,000.00 150,000.00
Sally Mae Bank 173,000.00 173,000.00
Citi Bank NA 100,000.00 100,000.00
Goldman Sacs 100,000.00 100,000.00
Commenty Capital Bank 120,000.00 120,000.00
Citi Bank NA 145,000.00 145,000.00
Morgan Stanley Private Bank 160,000.00 108,311.38 2,873.60 48,815.02
State Bank of India 140,000.00 140,000.00
Texas Exchange Bank 105,000.00 105,000.00
State Bank of India 105,000.00 105,000.00
Sally Mae Bank 75,000.00 75,000.00
Synchrony Bank 100,000.00 95,000.00 5,000.00
2,929,550.53 2,334,836.09 545,626.00 49,088.44 - -
107,657.57 - - - 107,657.57
1,000,000.00 1,000,000.00
4,037,208.09 2,334,836.09 545,626.00 49,088.44 1,000,000.00 107,657.57
Public
Housing Management Central Office
For Period Ending 12/31/2021
Amount Invested by Fund:
Issuer Amount
Invested
Cantella & Company
Housing Choice
Voucher
Rental
Rehabilitation
GRAND TOTALS
GRAND TOTALS
L.A.I.F. (Acct # 25-07-003)
De Anza Gardens, LP
Invesment Report for Board QE 12-31-21_
(Investments Rpt to Dec 21)Last Printed: 3/1/2022
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
Report per CGC 53646 CURRENT MARKET VALUE
For Period Ending 12/31/2021
Cantella & Company
Fidelity Market Reserves Money Market ongoing 33,550.53 33,550.53 0.01%
Discover Bank Certificate of Deposit 1/11/2022 105,000.00 105,064.05 2.25%
Federal Farm Credit Bank Govt Agency 2/03/2022 105,000.00 105,164.85 2.03%
Everbank Certificate of Deposit 4/28/2022 247,000.00 248,536.34 2.15%
Capital One , NA Certificate of Deposit 5/10/2022 100,000.00 100,739.00 2.30%
Capital One , NA Certificate of Deposit 5/10/2022 110,000.00 110,812.90 2.30%
Goldman Sachs Certificate of Deposit 6/07/2022 149,000.00 150,403.58 2.40%
Capital One Bank, USA Certificate of Deposit 9/20/2022 220,000.00 223,083.60 2.25%
Barclays Bank Delaware Certificate of Deposit 9/27/2022 247,000.00 250,551.86 2.25%
Discover Bank Certificate of Deposit 12/28/2022 140,000.00 143,057.60 2.55%
Morgan Stanley Bank Certificate of Deposit 1/11/2023 150,000.00 153,522.00 2.65%
Sally Mae Bank Certificate of Deposit 2/08/2023 173,000.00 177,325.00 2.65%
Citi Bank NA Certificate of Deposit 5/04/2023 100,000.00 103,540.00 3.10%
Goldman Sacs Certificate of Deposit 7/25/2023 100,000.00 104,336.00 3.30%
Commenty Capital Bank Certificate of Deposit 8/14/2023 120,000.00 125,254.80 3.25%
Citi Bank NA Certificate of Deposit 2/15/2024 145,000.00 152,089.05 3.00%
Morgan Stanley Private Bank Certificate of Deposit 7/25/2024 160,000.00 165,721.60 2.20%
State Bank of India Certificate of Deposit 5/28/2025 140,000.00 140,490.00 1.10%
Texas Exchange Bank Certificate of Deposit 6/19/2025 105,000.00 104,967.45 1.00%
State Bank of India Certificate of Deposit 4/27/2026 105,000.00 104,150.55 1.00%
Sally Mae Bank Certificate of Deposit 9/22/2026 75,000.00 74,262.75 1.05%
Synchrony Bank Certificate of Deposit 9/24/2026 100,000.00 98,553.00 0.95%
2,929,550.53 2,975,176.51
L.A.I.F. (Acct # 25-07-003)Liquid Account ongoing 107,657.56 107,657.56 0.23%
De Anza Gardens, LP Loan 1,000,000.00 1,000,000.00 3.00%
GRAND TOTALS 4,037,208.09 4,082,834.07
Maturity
Date
Amount
Invested
Current Market
Value
(at 12/31/21)
YieldIssuerInvestment
Type
Invesment Report for Board QE 12-31-21_
(Investments Rpt to Dec 21)Last Printed: 3/1/2022
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
Investment Interest Earnings Report
Public Housing Management Central Rental
Rehab
Housing
Voucher
Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted
Cantella & Company
Fidelity Market Reserves 33,550.53 0.83 0.33 0.49 0.01 - -
Discover Bank 105,000.00 582.53 582.53 - - - -
Federal Farm Credit Bank 105,000.00 525.58 525.58 - - - -
Everbank 247,000.00 1,309.44 1,309.44 - - - -
Capital One , NA 100,000.00 567.12 567.12 - - - -
Capital One , NA 110,000.00 623.84 623.84 - - - -
Goldman Sachs 149,000.00 881.75 881.75 - - - -
Capital One Bank, USA 220,000.00 1,220.55 1,220.55 - - - -
Barclays Bank Delaware 247,000.00 1,370.34 1,370.34 - - - -
Discover Bank 140,000.00 880.27 880.27 - - - -
Morgan Stanley Bank 150,000.00 980.14 980.14 - - - -
Sally Mae Bank 173,000.00 1,130.42 - 1,130.42 - - -
Citi Bank NA 100,000.00 764.38 - 764.38 - - -
Goldman Sacs 100,000.00 813.70 813.70 - - - -
Commenty Capital Bank 120,000.00 961.64 961.64 - - - -
Citi Bank NA 145,000.00 1,072.60 1,072.60 - - - -
Morgan Stanley Private Bank 160,000.00 867.95 587.56 15.59 264.81 - -
State Bank of India 140,000.00 379.73 - 379.73 - - -
Texas Exchange Bank 105,000.00 258.90 - 258.90 - - -
State Bank of India 105,000.00 258.90 258.90 - -
Sally Mae Bank 75,000.00 194.18 194.18 - - - -
Synchrony Bank 100,000.00 234.25 222.54 11.71 -
- 2,929,550.53 15,879.04 13,053.01 2,561.22 264.82 - -
L.A.I.F. (Acct # 25-07-003)107,657.56 61.94
De Anza Gardens, LP 1,000,000.00 7,397.26 7,397.26
GRAND TOTALS 4,037,208.09 23,338.25 13,053.01 2,561.22 264.82 61.94 7,397.26
Interest Earned this Quarter by Fund
Amount
Invested
Interest
Earned
this Qtr
For Period Ending 12/31/2021
150189
Invesment Report for Board QE 12-31-21_
(Investments Rpt to Dec 21)Last Printed: 3/1/2022
RECOMMENDATIONS
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or designee, to execute a contract with Iron Mountain
Information Management, LLC to provide document imaging services for all tenant files for the Housing Choice Voucher program and the
Public Housing program.
BACKGROUND
HACCC has been a paper-oriented business since it was founded in 1942. Since then, entire storerooms have been dedicated to the storage of
tenant files, financial records, and development documentation. These records have gotten old, fragile and volatile during the many decades of
their existence. Moreover, they have taken up thousands of square feet in space throughout HACCC properties that could be used for other
purposes.
In addition, these stored documents are vulnerable to fire, water damage and misplacement. Modern storage systems are migrating from hard
document storage to cloud-based electronic storage that will be accessible from anywhere in the County or world. Electronic data is much easier
to secure and easily protected from natural disasters that have plagued California over the past few years. With offsite data storage and onsite
access, back-ups to back-ups are possible with minimal effort on behalf of the entire agency.
HACCC has already added a document imaging system for all housing programs that is integrated into our Yardi software. This document
imaging system will ensure that families have greater access to online certifications and applications moving forward. However, the software
provider, Yardi, does not have the capacity to scan the historical records from their tenant files.
Accordingly, HACCC reached out to several document imaging companies to gauge their interest in the task. Iron Mountain not only expressed
interest, but had active contracts in Portland, OR that HACCC could use to meet its procurement requirements for competitive pricing. After
negotiating terms of the contract, HACCC has reached agreement to proceed with Iron Mountain Information Management, LLC to complete a
back-scan of all tenant files in the HCV and Public Housing programs. Iron Mountain is known to HACCC as it is currently contracted with the
agency to do day-to-day shredding services for private tenant records as needed. In addition, they are contracted with HACCC to do offsite data
storage for our agency servers.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
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:March 8, 2022
Contra
Costa
County
Subject:CONTRACT WITH IRON MOUNTAIN INFORMATION MANAGEMENT, LLC TO PROVIDE DOCUMENT IMAGING
SERVICES FOR ALL TENANT FILES FOR THE HOUSING CHOICE VOUCHER PROGR
BACKGROUND (CONT'D)
The project will be broken up into two sections. Part one will scan approximately 10,000 files and index each file to the appropriate household so
that HACCC will retain the historical data that exists with all households. This part of the project is not to exceed (NTE) $328,000 and expected
to be completed within the 16-month term of the contract. Part two of the project will be to retain all records for emergency access and to meet
HUD-required retention policies for 36 months. After the HUD required retention period of 36 months, Iron Mountain shall shred all documents
as required by HUD. This part of the project is not to exceed $48,000. The total NTE amount is $376,000 and expected to be in place through
May 31, 2026, to ensure proper completion and shredding of all documents.
FISCAL IMPACT
All costs will be paid in part from HCV administrative fees and administrative fee reserves and public housing operating costs based on the
proration of files applicable to each program. The contract stipulates that all fees are to be in an amount not to exceed $376,000 for all document
imaging services.
CONSEQUENCE OF NEGATIVE ACTION
If the Board fails to approve Iron Mountain Information Management, LLC to provide document imaging services for all tenant files for the
Housing Choice Voucher program and the Public Housing program, HACCC shall be required to continue to use paper systems that will pose
safety and security concerns and occupy needed space throughout the agency.
RECOMMENDATIONS
DENY claim filed by Sheetmetal & Assoc., an INLC.; Shannon O. Murphy.
BACKGROUND
DENY claim filed by Sheetmetal & Assoc., an INLC.; Shannon O. Murphy.
FISCAL IMPACT
No fiscal impact.
CONSEQUENCE OF NEGATIVE ACTION
Not acting on the claims could extend the claimants’ time limits to file actions against the
County.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
Commissioner
Contact: Risk Management
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: March 8, 2022
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.3
To:Contra Costa County Housing Authority Board of Commissioners
From:Monica Nino, County Administrator
Date:March 8, 2022
Contra
Costa
County
Subject:Claims
RECOMMENDATIONS
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or designee, to execute a five-year contract with Contra Costa
Interfaith Transitional Housing (dba Hope Solutions) in an amount not to exceed $2,250,000 to administer the Continuum of Care Rental
Subsidy program with HACCC.
BACKGROUND
HACCC has been in a partnership with Contra Costa County’s Department of Health Services to administer the County’s Shelter Plus Care
Program (S+C) through the Shelter Plus Care grant (S+C grant) for approximately 25 years. The Shelter Plus Care (S+C) Program provides a
variety of permanent housing choices, accompanied by a range of supportive services. The S+C grant provides homeless and disabled persons
housing through either tenant-based rental assistance (TBRA) or project-based rental assistance (PBRA).
Over the years, Contra Costa County’s Department of Health Services – Health, Housing and Homeless Services (H3) has acted as the
subrecipient and taken the lead role in the day-to-day administration of the S+C Program. They have identified qualified households to refer to
the subsidy programs, verified a participant’s disabled and homeless status, reported data to HUD, provided case management to participants,
and assisted with navigation assistance as needed to ensure greater success for the families to be housed. HACCC’s role focused more on
tracking the grant expenditures, conducting intake certifications to determine applicants’ qualifications for the subsidy programs, inspecting
units, making payments to landlords, and ensuring that the S+C program is in compliance with HUD regulations.
Through the Homeless Emergency Assistance and Rapid Transition to Housing Act (HEARTH Act), the S+C program was reinvented in 2015
and became known as the Continuum of Care Rental Subsidy Program (COCRSP). The name change did not dramatically alter the S+C
program.
HACCC has received approximately $1.8 million each year to house approximately 300 households under the various COCRSPs. A maximum
of 10% of that amount is carved out for administrative costs and is used to pay for the staffing and administrative costs of operating the program
for both HACCC and its subrecipient. In addition, the grantee is required to provide 25% of the grant funding as in-kind or cash match for
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
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:March 8, 2022
Contra
Costa
County
Subject:CONTRACT WITH CONTRA COSTA INTERFAITH TRANSITIONAL HOUSING (DBA HOPE SOLUTIONS) TO
ADMINISTER THE CONTINUUM OF CARE RENTAL SUBSIDY PROGRAM WITH HACCC
BACKGROUND (CONT'D)
services to the program participants. To date, this match has included staff and administrative expenses as well as unreimbursed services through
the County’s Health Services.
H3 recently alerted HACCC that they were unable to continue to serve as the subrecipient of the CoC grant due to the increased demand to
direct its resources to other County housing programs. Accordingly, a Request for Proposals (RFP) was issued on November 1, 2021, inviting
qualified providers to apply as HACCC’s new partner in the administration of the COCRSP.
After HACCC received and reviewed the application submitted by Contra Costa Interfaith Transitional Housing, also known as Hope Solutions
(Hope Solutions), staff determined that it was suitable to replace H3 in administering the COCRSP. HACCC has been working closely with
Hope Solutions for several years in its capacity as a housing provider and, most recently, as the housing navigation team for the Emergency
Housing Voucher program previously brought before HACCC’s Board of Commissioners. Staff recommends Hope Solutions to fill the role of
subrecipient of the CoC Rental Subsidy Program grant.
FISCAL IMPACT
All costs will be paid from the annual appropriations approved by HUD through the County’s annual application to HUD’s Notice of Funding
Opportunity (NOFO) for all Continuum of Care (CoC) programs. The maximum amount each year for all services will not exceed $450,000 for
a total of $2,250,000.
CONSEQUENCE OF NEGATIVE ACTION
If the Board fails to a approve the contract with Contra Costa Interfaith Transitional Housing dba Hope Solutions to be the subrecipient and
administrative partner with HACCC in administration of the Continuum of Care Rental Subsidy program, HACCC will not be in a position to
continue to provide assistance to participants of the CoC’s rental subsidy program.
RECOMMENDATIONS
ACCEPT the financial and program compliance audit report for the period April 1, 2020 through March 31, 2021, 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 contracted with Harn & Dolan to prepare the audit report for the fiscal year
ending March 31, 2021.
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 is attached.
FISCAL IMPACT
None. Information item. Funding was provided for the audit contract in the Housing Authority of the County of Contra Costa’s (HACCC) Fiscal
Year 2021/22 Consolidated Operating Budget.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners not 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 audit report or contract with another certified public
accountancy firm to conduct an audit of HACCC’s finances and programs.
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
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:March 8, 2022
Contra
Costa
County
Subject:FINANCIAL AND PROGRAM AUDIT FOR FISCAL YEAR ENDING MARCH 31, 2021
ATTACHMENTS
Audit
Management
Report
HOUSING AUTHORITY
OF THE COUNTY OF CONTRA COSTA
(A Component Unit of the County of Contra Costa)
BASIC FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2021
(Including Auditors' Report Thereon)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
Management’s 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
Statement of Fiduciary Net Position 17
Statement of Changes in Fiduciary Net Position 18
Notes to the Basic Financial Statements 19
Required Supplementary Information:
Schedule of Proportionate Share of the Net Pension Liability for CCCERA 67
Schedule of Employer Contributions to CCCERA 67
Schedule of Changes in the Net OPEB Liability and Related Ratios 68
Schedule of Employer Contributions to OPEB 69
Notes to the Required Supplementary Information 70
Supplementary Information:
Schedule of Expenditures of Federal Awards 72
Notes to the Schedule of Expenditures of Federal Awards 73
Financial Data Schedule (CA011) 75
Statement of Completed Capital Fund Program Project 83
Schedule of Relevant Statistics 84
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 85
Independent Auditors' Report on Compliance for
Each Major Program and on Internal Control over
Compliance Required by the Uniform Guidance 87
Status of Prior Audit Findings 89
Schedule of Findings and Questioned Costs 90
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, 2021, and the related notes to the financial statements,
which collectively comprise the Authority’s 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.
Management’s 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.
Auditor’s 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 11.3%, -8.8% and
0.2%, respectively, of the primary government’s 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 from 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 auditor’s 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 Authority’s 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 Authority’s
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, 2021, 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.
Emphasis of Matter
As described in Note 1.U. to the financial statements, the Authority adopted new accounting guidance,
GASB No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 4 through 11, and the supplementary information required for the pension
and other postemployment benefit plans on pages 67-70 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 management’s 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, California’s basic financial statements. The
schedule of relevant statistics is presented for purposes of additional analysis and is 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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and
is also not a required part of the basic financial statements. The accompanying Financial Data Schedules
(CA011) 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
2
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
The management of the Housing Authority of the County of Contra Costa (the Authority) would like to provide the
readers of the Authority’s financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended March 31, 2021.
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
Management’s 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.
FINANCIALHIGHLIGHTS
Net position increased by $10,125,990 (or 360.97%) during 2021 (see Table 1). This increase was a result
of $8,450,920 in normal operations and $1,675,070 in actuarial changes in pension and OPEB liabilities.
Unrestricted net position increased by $7,507,045 (or 187.78%) during 2021 (see Table 1). This increase
was a result of $5,831,975 in normal operations and $1,675,070 in actuarial changes in pension and OPEB
liabilities.
Total revenue increased by $27.1 million (or 15.0%) as a result of current year activities (see Table 3).
Total expenditures increased $16.6 million (or 9.2%) as a result of current year activities (see Table 3).
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as introduction to the Authority’s basic financial statements. The
Authority’s 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
Authority’s 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. GASB’s 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 Authority’s 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 Authority’s report.
4
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
The Authority’s 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
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.
Lower Income Housing Assistance Continuum of Care Program - is a U.S. Department of Housing and Urban
Development funded rehabilitation program that promotes community-wide commitment to the goal of ending
homelessness. The 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.
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, 2020. 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, 2020. These reports can be obtained from the
Authority using the information on page 11.
Casa Del Rio Apartments, LLC - This limited liability corporation was formed to replace the limited partner
“Boston Capital” of the Casa Del Rio Partnership. The officers and Board members of HACCC Casa Del Rio, Inc
will direct the LLC.
5
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
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
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. This fund administers the pension and benefit
programs for the agency.
Central Office Cost Center - The COCC fund earns revenue from fees and services provided to various federal
programs. The funds earned are considered federal funds and go to cover the overhead and support services
provided to the various federal programs. HUD is currently preparing rule changes that will restrict these funds
to use in Federal programs only.
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 REAC’s 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 Authority’s financial statements to be misleading or incomplete. As such, the Authority considers these two
6
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
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, 2020. 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.
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, 2021 March 31, 2020 (Decrease) %
Current assets $ 15,721,498 $ 9,782,429 5,939,069 60.71%
Restricted assets 3,177,840 1,812,651 1,365,189 75.31%
Capital assets, net of depreciation 12,811,572 12,221,892 589,680 4.82%
Other noncurrent assets 3,894,875 3,761,593 133,282 3.54%
Total assets 35,605,785 27,578,565 8,027,220 29.11%
Deferred outflows of resources 959,724 936,333 23,391 2.50%
Current liabilities 3,770,310 3,334,831 435,479 13.06%
Payable from restricted assets 1,047,154 942,024 105,130 11.16%
Long term liabilities 15,944,477 19,843,473 (3,898,996)19.65%
Total liabilities 20,761,941 24,120,328 (3,358,387)13.92%
Deferred inflows of resources 2,872,358 1,589,349 1,283,009 80.73%
Net position:
Net investment in capital assets 7,451,386 5,894,245 1,557,141 26.42%
Restricted 2,513,401 908,782 1,604,619 176.57%
Unrestricted - operations 15,001,335 9,712,176 5,289,159 54.46%
Unrestricted - pension (5,300,278) (7,144,227) 1,843,949 25.81%
Unrestricted - OPEB (6,734,634) (6,565,755) (168,879)2.57%
Total net position $ 12,931,210 $ 2,805,221 $ 10,125,989 360.97%
Major Factors Affecting the Statement of Net Position
The major factor affecting net position was the result of increased operating costs.
7
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
Table 2 below presents details on the change in Unrestricted Net Position.
TABLE 2
CHANGEOFUNRESTRICTEDNETPOSITIONBYPROGRAM
Change of
Beginning Unrestricted Ending
Balance Position this Balance
04/01/2020 Report Period 03/31/2021
Housing Choice Voucher Program:
Unrestricted: Operations $ 4,583,742 $ 3,513,857 $ 8,097,599
Pension (3,199,575) 860,220 (2,339,355)
OPEB (2,940,504) (31,925) (2,972,429)
(1,556,337) 4,342,152 2,785,815
Public Housing (including Capital Fund):
Unrestricted: Operations 1,780,026 142,268 1,922,294
Pension (2,247,078) 572,003 (1,675,075)
OPEB (2,065,131) (63,251) (2,128,382)
(2,532,183) 651,020 (1,881,163)
Central Office Cost Center:
Unrestricted: Operations 886,798 62,886 949,684
Pension (1,695,729) 410,815 (1,284,914)
OPEB (1,558,424) (74,212) (1,632,636)
(2,367,355) 399,489 (1,967,866)
Casa Del Rio (blended component unit):
Unrestricted: Operations (162,323) (154,676) (316,999)
Pension/OPEB - - -
(162,323) (154,676) (316,999)
Mainstream Voucher Program:
Unrestricted: Operations 17,100 27,293 44,393
Pension/OPEB - - -
17,100 27,293 44,393
Other State and Local:
Unrestricted: Operations 2,606,833 1,697,531 4,304,364
Pension (1,845) 911 (934)
OPEB (1,696) 509 (1,187)
2,603,292 1,698,951 4,302,243
Authority-wide:
Unrestricted: Operations 9,712,176 5,289,159 15,001,335
Pension (7,144,227) 1,843,949 (5,300,278)
OPEB (6,565,755) (168,879) (6,734,634)
Authority totals $ (3,997,806) $ 6,964,229 $ 2,966,423
8
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
TABLE3
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, 2021 March 31, 2021 March 31, 2020 March 31, 2020
Operating revenue:
Rental and other $ 20,951,427 $ 15,749,504 $ 15,932,318 $ 6,509,404
Non-operating revenue:
Federal grants and subsidies 184,574,000 185,141,208 162,658,542 172,913,393
Capital contributions 1,775,002 - 1,514,704 4,275,984
Other revenue 346,906 - 407,753 -
Total revenues 207,647,335 200,890,712 180,513,317 183,698,781
Operating expenses:
Administration 10,401,636 18,339,628 11,932,844 16,626,240
Tenant services 495,877 270,380 629,798 962,254
Utilities 2,491,446 2,697,541 2,361,262 2,193,747
Maintenance 5,058,672 5,681,092 5,578,757 4,639,620
General 1,789,015 2,824,008 1,630,711 1,571,795
Housing assistance payments 175,583,951 166,522,752 156,944,931 154,905,539
Depreciation 1,536,594 1,509,641 1,689,819 1,770,938
Non-operating expenses:
Debt-service interest 167,155 161,013 178,056 762,950
Capital Expenses - 322,950 - 11,884
Total expenses 197,521,346 198,329,005 180,946,178 183,517,967
Changes in net position 10,125,989 2,561,707 (432,861) 180,814
Net position, beginning of the year 2,805,221 2,805,221 3,238,082 3,238,088
Net position, end of the year $ 12,931,210 $ 5,366,928 $ 2,805,221 $ 3,418,902
Major Factors Affecting the Statement of Revenue, Expenses and Changes in Net Position
The major factors affecting the Statement of Revenue, Expenses, and Changes in Net Position was the result of the
increase in portability activities and housing assistance payments in Federal Programs. The increase in net position
of $10,125,989 was a result of an increase in operations.
9
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(Continued)
CAPITALASSETSAND DEBTADMINISTRATION
Capital Assets
As of year-end, the Authority had $12.8 million invested in capital assets, see also Note 5 to the basic
financial statements.
TABLE 4
CAPITAL ASSETS
March 31, 2021 March 31, 2020 Change
Land $ 2,647,315 $ 2,158,260 $ 325,267
Buildings 103,448,017 102,564,403 1,820,296
Equipment 3,359,866 3,033,219 (153,205)
Accumulated Depreciation (98,003,716) (96,707,794) (1,594,136)
Construction In Progress 1,360,090 1,173,804 156,196
Total $ 12,811,572 $ 12,221,892 $ 554,418
The following reconciliation summarizes the change in Capital Assets.
TABLE 5
CHANGEINCAPITALASSETS
2021 2020
Capital assets - beginning of year $ 12,221,892 $ 11,667,474
Additions:
Land - -
Demolition costs 489,054 325,267
Building improvements 883,615 825,855
Construction-in-progress 186,286 1,150,636
Equipment 567,319 136,044
Correction to prior year equipment - (193,565)
Depreciation (1,536,594) (1,689,819)
Capital assets - end of year $ 12,811,572 $ 12,221,892
Notes Payable Outstanding
As of year-end, the Authority had $4,024,713 of notes payable outstanding, see Note 6 to the basic
financial statements.
10
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2021
(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 Authority’s budgets
and subsidy funding requests are approved by HUD.
FINANCIALCONTACT
The individual to be contacted regarding this report, and the reports of the Authority’s component units,
is the Director of Finance of the Housing Authority of the County of Contra Costa, at (925) 957-8014.
Specific requests may be submitted to the Director of Finance, Housing Authority of the County of Contra
Costa, P.O. Box 2759, 3133 Estudillo Street, Martinez, CA 94553.
11
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
MARCH 31, 2021
Primary Component
Government Units
Housing
ASSETS
Current assets
Cash and investments (Note 2 and 14) $ 13,759,773 $ 45,968
Due from other agencies 1,211,554 -
Due from related parties - DeAnza (Note 14) 177,286 -
Tenant accounts receivable 306,302 38,844
Allowance for doubtful accounts (124,075) (25,448)
Account receivable - miscellaneous - 29,922
Interest receivable 12,721 8,793
Notes receivable - short term (Note 4) 983 -
Prepaid expenses 376,954 30,733
Total current assets 15,721,498 128,812
Restricted assets:
Restricted cash (Note 2 and 3 and 14) 3,177,840 1,788,554
Capital assets (Note 5 and 14):
Land 2,647,315 1,150,712
On site improvements - 4,028,709
Buildings 103,448,017 29,741,813
Furniture and equipment 3,359,866 555,752
Construction in progress 1,360,090 -
Accumulated depreciation (98,003,716) (16,504,763)
Total capital assets 12,811,572 18,972,223
Other noncurrent assets:
Long-term notes receivable (Note 4) 376,466 -
Long-term notes receivable - DeAnza (Note 4 and 14) 1,000,000 -
Interest receivable on long-term notes (Note 4) 148,880 -
Due from related parties - DeAnza (Note 14) 2,313,097 -
Other long-term assets 56,432 -
Total other noncurrent assets 3,894,875 -
Total assets 35,605,785 20,889,589
DEFERRED OUTFLOWS OF RESOURCES
Pension (Note 11) 647,020 -
OPEB (Note 12) 312,704 -
959,724 -
12
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
MARCH 31, 2021
(Continued)
Primary Component
Government Units
Housing
LIABILITIES
Current liabilities:
Accounts payable $ 935,891 $ 51,116
Due to related parties - Authority (Note 14) - 29,808
Due to other agencies 259,643 -
Accrued salaries and related costs 462,323 -
Accrued interest (Note 14) 542,815 43,269
Other accrued liabilities 310,296 -
Tenant security deposits 344,401 -
Payable from restricted assets:
Tenant security deposits 46,080 168,019
Unearned revenue (Note 8) 570,805 11,678
Current portion of compensated absences (Note 1.I.) 408,410 -
Current portion of long-term debt (Note 6 and 14) 280,127 301,025
Total current liabilities 4,160,791 604,915
Other noncurrent liabilities:
Long-term debt (Note 6 and 14) 3,744,586 6,997,573
Long-term debt - Authority (Note 14) - 1,000,000
Long-term portion of compensated absences (Note 1.I.) 216,794 -
Payable from restricted assets:
Family self sufficiency escrows 656,673 -
Other noncurrent liabilities (Note 9) 1,860,819 -
Due to related parties - Authority (Note 14) - 2,444,845
Net pension liability (Note 11) 3,458,981 -
Net other postemployment benefit liability (Note 12) 6,663,297 -
Total noncurrent liabilities 16,601,150 10,442,418
Total liabilities 20,761,941 11,047,333
DEFERRED INFLOWS OF RESOURCES
Pension (Note 11) 2,488,317 -
OPEB (Note 12) 384,041 -
2,872,358 -
NET POSITION (Note 10 and 14)
Net investment in capital assets 7,451,386 11,630,356
Restricted net position 2,513,401 1,768,683
Unrestricted net position 2,966,423 (3,556,783)
Total net position $ 12,931,210 $ 9,842,256
The accompanying notes are an integral part of this statement
13
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, 2021
Primary Component
Government Units
Housing
Operating revenue :
Rents and other tenant revenue $ 4,639,448 $ 2,230,620
Other 16,311,979 96,103
Total operating revenue 20,951,427 2,326,723
Operating expenses:
Administration 10,401,636 421,733
Tenant services 495,877 -
Utilities 2,491,446 288,208
Maintenance 5,058,672 549,401
General 1,789,015 140,937
Housing assistance payments 175,583,951 -
Depreciation (Note 5 and 14) 1,536,594 732,766
Total operating expenses 197,357,191 2,133,045
Operating income (loss) (176,405,764) 193,678
Nonoperating revenue (expenses):
Grants 184,574,000 -
Unrestricted interest 91,368 56,726
Restricted interest 11,626 -
Interest on notes receivable
with related party (Note 4 and 14) 30,000 (30,000)
Related party fees (Note 14) 213,912 (213,912)
Debt service - interest (Note 6 and 14) (164,155) (504,735)
Net gain before contributions and transfers 8,350,987 (498,243)
Capital contributions 1,775,002 -
Change in net position 10,125,989 (498,243)
Net position - beginning of year 2,805,221 10,340,499
Net position - end of year $ 12,931,210 $ 9,842,256
The accompanying notes are an integral part of this statement.
14
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2021
Primary Government
Housing
Cash flows from operating activities :
Tenant receipts $ 4,428,787
Other receipts 16,600,209
Payroll and benefit expenditures (11,742,022)
Administration expenditures (2,332,086)
Tenant services expenditures (345,769)
Utilities expenditures (2,495,966)
Maintenance expenditures (3,668,966)
General expenditures (992,011)
Housing assistance payment expenditures (174,069,278)
Net cash used by operating activities (174,617,102)
Cash flows from noncapital financing activities :
Operating grants received 184,894,963
Related parties transactions (345,859)
Repayment of notes receivable 3,606
Notes receivable issued (1,689)
Net cash provided by noncapital financing activities 184,551,021
Cash flows from capital financing activities :
Grants received to acquire capital assets 1,775,002
Acquisition of capital assets (2,126,274)
Principal paid on debt (265,823)
Interest paid on debt (322,976)
Net cash used by capital financing activities (940,071)
Cash flows from investing activities :
Interest receipts 91,535
Interest on restricted cash 11,639
Net cash provided by investing activities 103,174
Net increase to cash 9,097,022
Cash at beginning of year 7,840,591
Cash at end of year $ 16,937,613
Cash and investments $ 13,759,773
Restricted cash 3,177,840
Total cash at year end $ 16,937,613
15
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2021
(Continued)
Primary Government
Housing
Reconciliation of operating loss to net
cash used by operating activities:
Operating loss $ (176,405,764)
Adjustments to reconcile operating loss to
Net cash used by operating activities:
Depreciation expense 1,536,594
Related party transaction 133,873
(Increase) Decrease in:
A/R other governments 1,570,746
Tenants accounts receivable (64,699)
Prepaid expenses 107,662
Other long-term assets 3,703
Deferred outflows of resources (23,391)
Increase (Decrease) in:
Accounts payable (548,340)
Due to other agencies 50,638
Tenant security deposits 25,105
Accrued salaries and related costs 205,150
Unearned revenues 251,571
FSS escrows 80,026
Compensated absences 111,703
Net pension liability (2,865,858)
Net OPEB liability (68,830)
Deferred inflows of resources 1,283,009
Net cash used by operating activities $ (174,617,102)
Noncash transactions:
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.
The accompanying notes are an integral part of this statement.
16
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF FIDUCIARY NET POSITION
MARCH 31, 2021
Other Post
Employment
Benefit Trust Fund
ASSETS
Cash and investments:
Cash and investment with fiscal agent $ 926,752
Total assets 926,752
LIABILITIES
Total liabilities -
NET POSITION
Restricted for retiree benefits 926,752
Total net position $ 926,752
The accompanying notes are an integral part of this statement.
17
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
MARCH 31, 2021
Other Post
Employment
Benefit Trust Fund
Additions
Earnings on investments $ 270,867
Deductions
Service fees and administrative expenses 4,610
Change in net position 266,257
Net Position, April 1, 2020, as restated 660,495
Net position, March 31, 2021 $ 926,752
The accompanying notes are an integral part of this statement.
18
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
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 Authority’s
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 California’s 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
or by visiting http://co.contra-costa.ca.us/.
B. Financial Reporting Entity
The Authority’s combined financial statements include the accounts of all the Authority’s
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 entity’s financial statements to be
misleading or incomplete. Based on the aforementioned criteria, the Authority has blended
19
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
and discretely presented component units. The blended component units, although legally
separate entities, are, in substance, part of the Authority’s 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
sponsor’s 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.
Casa Del Rio Apartments LLC was formed to replace the limited partner, Boston Capital,
of the Casa Del Rio Partnership. The officers and Board members of HACCC Casa Del Rio,
Inc, will direct the LLC.
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
Authority’s financial statements as blended component units. See also Note 14.
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,
20
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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
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 Authority’s financial statements to
be misleading or incomplete, these entities have been included in the Authority’s financial
statements as discretely presented component units. See also Note 14.
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 Authority’s activities are strictly business-type. The Authority’s
fiduciary fund activity consist of the assets held on behalf of its employees for its post
employment benefit plan (OPEB).
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
21
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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
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 Authority’s 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
fund’s ongoing operations. The principal operating revenue of the Authority’s 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 Authority’s 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 Authority’s policy to use restricted resources first and then unrestricted
resources as needed.
22
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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, 2021, the amounts due between the various proprietary funds totaled $2,489,867.
These amounts have been eliminated from the Statement of Net Position - Proprietary Funds.
Operating advances made to the blended component units, HACCC Casa Del Rio, Inc and
CDR Senior Housing Associates totaled $654,620 as of March 31, 2021 and $631,382 as of
December 31, 2020. The interfund balance as of December 31, 2020, was reported as non-
current related party payable by the other auditors. For the March 31, 2021 reporting, the
interfund balance of $631,382 as of December 31, 2020 was eliminated, while the difference
of $23,238 receivable as of March 31 in excess of the amount receivable as of December 31
was reported as other long-term assets in the Statement of Net Position - Proprietary Funds.
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 has been eliminated from the
Statement of Net Position - Proprietary Funds. See also Notes 4 and 6.
For further detail of these eliminated balances, 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:
On May 15, 2019, HUD approved the issuance of project based vouchers for 81 of the 82
units in the Casa Del Rio Senior Housing complex, effective July 1, 2019. The Housing
Choice Voucher Program paid a total of $1,102,298 in HAP payments to CDR Associates.
CDR Associates paid management fees to the State and Local Enterprise Fund in the amount
of $52,452. CDR, Inc paid management fees to the Central Office Enterprise Fund in the
amount of $52,536.
As of July 1, 2019 the Authority began administering the ACC units of the Housing Choice
Voucher Program of the City of Richmond. To accommodate the increased activity, the
Housing Choice Voucher Program expanded its operations to office space owned by the
Public Housing Program. Rent for this property has been calculated using rental costs of
comparable properties. The Housing Choice Voucher Program Enterprise Fund paid rent to
the Public Housing Enterprise Fund in the amount of $149,916 for the current fiscal year.
The Authority utilizes a Central Office Enterprise Fund to account for administrative costs
that are not charged to its Public Housing, Housing Choice Voucher, Mainstream Voucher,
and Continuum of Care Programs’ Enterprise Funds. The Public Housing Enterprise Fund
paid property management, bookkeeping, and asset management fees in the amount of
23
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
$865,566, $83,307, and $74,720, respectively. The Public Housing Capital Fund Enterprise
Fund paid management fees in the amount of $291,978. The Housing Choice Voucher
Enterprise Fund paid management fees and bookkeeping fees in the amount of $1,987,575
and $707,600, respectively. Management and bookkeeping fees were also paid on the
Housing Choice Voucher Program units administered on behalf of other housing authorities
in the amount of $114,563 and $62,375, respectively. The Mainstream Voucher Enterprise
Fund paid management fees and bookkeeping fees in the amount of $13,941 and $4,677,
respectively. The Continuum of Care Enterprise Fund allocated costs of $62,438 in lieu of
fees. Finally, the Cares Act Grant associated with the Housing Choice Voucher Program set
aside $16,678 in administrative fees to support the Central Office Enterprise Fund during the
pandemic. These costs, totaling $4,285,418, are reported as total fee revenue in the Central
Office Enterprise Funds and administrative expenses of the Public Housing, Housing Choice
Voucher, Mainstream Voucher, Continuum of Care, and Cares Act 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
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 paid $15,679,047
in HAP 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 were eliminated within the blended component unit enterprise fund.
Interfund transfers of $1,415,307 were made between the Authority’s funds this fiscal year.
Interfund transfers of $1,153,730 were made within the Public Housing Enterprise Fund.
This represents the use of Capital Fund grants for Public Housing operating costs. The
remaining $261,577 was made from the Central Office Cost Center and Family Self
Sufficiency Enterprise Funds to the Housing Choice Voucher Enterprise Fund to correct prior
year balances, as requested by HUD.
Interfund revenues and expenses of $5,642,620 have been eliminated from the Statement of
Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds. This amount
includes the interfund HAP, interfund rent, 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.
24
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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 Authority’s 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.
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 program’s share in this pool
is displayed in the accompanying Financial Data Schedule as cash and investments. Interest
income earned by the pooled investments is allocated to the various funds based on each
fund’s 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.
25
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
I. Compensated Absences
It is the Authority’s 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
service with the Authority. All vacation pay is accrued when incurred and allocated to the
appropriate proprietary fund. Total liability for the Authority is $625,203 based on year-end
hourly rates. Of this amount $408,410 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’s deferred
outflows of resources consist of (1) items associated with, and referred to in, the actuarial
report of the defined benefit pension plan, and (2) payments made on behalf of employees
to the defined benefit pension plan after the measurement date of the actuarial report. See
also Note 11.
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’s deferred
inflows of resources consist of items associated with, and referred to in, the actuarial report
of the defined benefit pension plan. See also Note 11.
It is the Authority’s practice to report deferred outflows and inflows of resources in the
aggregate on the Statement of Net Position.
K. Net Position
Net position represents the differences between assets, deferred outflows of resources,
liabilities, and deferred inflows of resources. 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.
26
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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.
N. Estimates
Management uses estimates and assumptions in preparing financial statements in accordance
with accounting principles generally accepted in the United States of America. Those
estimates and assumptions affect the reported amounts of assets, deferred outflows of
resources, liabilities, and deferred inflows of resources; 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.
27
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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 rationale from direct
salary allocation plan consistent with Uniform Guidance. 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.
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, prior
to January 1, 2016, these entities reported debt issuance costs as an asset amortized over
time. During 2016, these entities adopted new accounting guidance required by accounting
principles generally accepted in the United State of America and changed its method of
accounting for debt issuance costs and related amortization of such costs. The net of these
costs are now reported as a direct reduction of notes payable. 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 Authority’s net position. Net loan costs of
$12,248 have been netted with long-term debt of the primary government, for the blended
component units, while $22,704 have been netted with long-term debt of the component
units, for the discretely presented component units.
S. Pension Plan
The Authority participates in a cost-sharing multi-employer defined benefit retirement plan
that is administered by the Contra Costa County Employees’ Retirement Association
(CCCERA). Contributions to CCCERA are made on a current basis as required by the plan
and are charged to expenditures. The Authority used actuarial reports supplied by CCCERA
for the purpose of measuring the net pension liability, deferred outflows and inflows of
resources related to the pension plan. The valuation date of the latest actuarial report was
December 31, 2020, with a measurement date for employer reporting as of June 30, 2021.
28
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
T. Postemployment Benefits Other than Pension (OPEB)
The Authority provides a defined benefit health care program to its retired employees and
their dependents. The Authority has established a trust account to administer the funding of
the OPEB plan. The Authority used actuarial valuation reports supplied by OPEB
consultants to recognize net OPEB liability, deferred outflows and inflows of resources, and
expenses related to the plan in accordance with GASB 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. The dates of the latest report
are (1) actuarial valuation date of June 30, 2020, (2) measurement date of June 30, 2020, and
(3) fiscal year end of March 31, 2021.
U. New Accounting Pronouncements
Pronouncements Implemented During the Current Fiscal Year
In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. The
implementation of GASB Statement No. 84 was originally required for accounting periods
beginning after December 15, 2018, but was postponed by one year with GASB 95. The
objective of GABS 84 is to enhance consistency and comparability by establishing criteria
for identifying activities that should be reported as fiduciary activities and clarifying how
business-type activities should report their fiduciary activities.
The Authority administers a trust for the purpose of funding its other post employment
benefit plan, see also Note 12.
The implementation of this pronouncement requires the Authority to record the beginning
net position of the funds held on behalf of its employees in trust for its other post
employment benefit plan. This is a change in accounting principle. The beginning net
position was previously not reported and will now be reported as $660,495, as of April 1,
2020, in the Statement of Changes in Fiduciary Net Position.
Pronouncements to be Implemented in Subsequent Years
In June 2017, the GASB issued Statement No. 87, Leases. The implementation of GASB
Statement No. 87 was originally required for accounting periods beginning after December
15, 2019, but was postponed by eighteen months with GASB 95. The primary objective of
GASB 95 was to provide temporary relief in light of the COVID-19 pandemic. The
objective of GASB 87 is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. The statement
requires the recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or outflows of resources
based on the payment provision of the contract. The impact of this pronouncement is not
known at this time. The implementation of this statement is expected to occur in the next
fiscal year.
29
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Note 2 - CASH AND INVESTMENT
Cash and investments as of March 31, 2021 are classified in the accompanying financial statement
as follows:
Statement of net position:
Cash and investments $ 13,759,773
Restricted cash 3,177,840
Total Cash & Investments $ 16,937,613
Demand deposits $ 13,114,701
Investments 3,055,267
Cash held by other agencies 765,095
Cash on hand 2,550
Total Cash & Investments $ 16,937,613
Investments Authorized by the Authority’s 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.
30
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(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 Moody’s Investors Service or Standard & Poor’s 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
Moody’s or Standard & Poor’s 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.
31
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(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 Authority’s 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 Authority’s investments.
Concentration of Credit Risk
See the table shown later in this note titled “Investment Disclosure” to determine how the
Authority’s investments are concentrated. These investments are owned by the following
programs:
Public Housing Program $ 2,340,555 76.61%
Central Office Cost Center 59,479 1.95%
Other State and Local Programs 547,791 17.92%
Rental Rehabilitation Program 107,442 3.52%
Total investments $ 3,055,267
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 Authority’s 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 Authority’s 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 bank’s trust department in a separate
depository in an account for the Authority.
32
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(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 Authority’s 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 government’s 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
June 5, 2018. 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 Authority’s exposure to custodial credit risk is as follows:
Demand deposits with banks, fully insured by FDIC $ 500,000
Demand deposits with banks, in excess of FDIC 439,000
Demand deposits with banks covered by depository agreements 12,136,737
Cash held by investment companies 38,964
Deposits held by CHFA 765,095
Total demand deposits and cash held by other agencies $ 13,879,796
33
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
See the table below for information regarding the investments.
Investment Disclosure - March 31, 2021
Investment Type Issuer Book Value Fair Value Maturity Rate
Government Security LAIF $ 107,325 $ 107,461 N/A
Interest on LAIF 117 117 N/A
Certif. Of Deposit Discover Bank 105,000 106,797 1/11/2022 300
Certif. Of Deposit Everbank 247,000 252,464 4/28/2022 214
Certif. Of Deposit Capital One Bank 100,000 102,444 5/10/2022 300
Certif. Of Deposit Capital One Bank 110,000 112,688 5/10/2022 300
Certif. Of Deposit Goldman Sachs Bank 149,000 153,065 6/07/2022 300
Certif. Of Deposit Capital One Bank 220,000 226,921 9/20/2022 300
Certif. Of Deposit Barclays Bank - Delaware 247,000 254,867 9/27/2022 300
Certif. Of Deposit Discover Bank 140,000 145,883 12/28/2022 300
Certif. Of Deposit Morgan Stanley Bank 150,000 156,695 1/11/2023 300
Certif. Of Deposit Sallie Mae Bank 173,000 181,039 2/08/2023 300
Certif. Of Deposit Citi Bank NA 100,000 106,117 5/04/2023 300
Certif. Of Deposit Goldman Sachs Bank 100,000 107,159 7/25/2023 300
Certif. Of Deposit Comenity Capital Bank 120,000 128,611 8/14/2023 300
Certif. Of Deposit Citi Bank NA 145,000 156,233 2/15/2024 300
Certif. Of Deposit Morgan Stanley Bank 160,000 169,621 7/25/2024 288
Certif. Of Deposit State Bank of India 140,000 143,091 5/28/2025 150
Certif. Of Deposit Texas Exchange Bank 105,000 105,049 6/19/2025 296
Certif. Of Deposit JP Morgan Chase Bank 105,000 104,019 10/30/2025 296
Certif. Of Deposit JP Morgan Chase Bank 130,000 128,346 1/20/2026 296
Gov’t Agency Farmer Mac 105,000 106,716 2/03/2022 AAA
Total Investments $ 2,958,442 3,055,403
Investments reported below fair value (136)
Total Investments reported $ 3,055,267
The Authority categorizes its fair value measurements within the fair value hierarchy established
by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the
asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The
hierarchy for the Authority’s investments are considered Level 2, except for the LAIF investments
which are not subject to fair value hierarchy.
The Authority has not executed a General Depository Agreement with either the Local Agency
Investment Fund (LAIF) or Cantella Investments (the Authority’s broker for investments other
than LAIF).
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
34
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
each account in the fund. Investments in LAIF are highly liquid, as deposits can be converted to
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, 2021, an account was maintained in the name of the Housing Authority of the
County of Contra Costa for $106,006. The total cost value of investment in LAIF was $107,325.
The total fair value of investments in LAIF was $107,461. The fair value total includes an
unrealized gain on investments of $136. The unrealized gain was based on a fair value adjustment
factor of 1.001269853 that was calculated by the State of California Treasurer’s Office. The
unrealized gain was not recorded by the Authority and is considered immaterial. Of the $107,325
invested in LAIF, $107,442 is recorded as assets of the Authority. The difference includes $117
of interest receivable from LAIF as of March 31, 2021, shown by the Authority as investments.
LAIF is a part of the State of California Pooled Money Investment Account (PMIA). At March
31, 2021, the fair value of the State of California Pooled Money Investment Account (PMIA),
including accrued interest, was $127,000,522,693. The PMIA portfolio had securities in the form
of structured notes totaling $1,100 million and asset-backed securities totaling $2,340.565
million. 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.
LAIF’s and the Authority’s exposure to credit, market, or legal risk is not available.
During 2002, California Government code was added to the LAIF’s 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 State’s 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.
35
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(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:
HUD funds restricted in use for HAP payments $ 1,748,306
Family Self Sufficiency Program participant’s escrow funds 656,673
Blended component unit - Casa Del Rio:
Funds held by CHFA:
Replacement reserve 469,352
Operating reserve 243,857
Hazard and earthquake insurance impounds 51,886
Tenant security deposits 7,766
Total restricted cash $ 3,177,840
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, as well
as the HUD funds restricted in use for HAP payments, 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.
Tenant security deposits are not fully designated as restricted cash as of fiscal year end.
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
3/31/2020 Issued Repaid 3/31/2021 Portion Portion
CDBG Loan Program $ 322,436 $ - $ - $ 322,436 $ 322,436 $ -
Rental Rehab. Program 54,030 - - 54,030 54,030 -
Employee computer loans 2,900 1,689 (3,606) 983 - 983
DeAnza Gardens LP 1,000,000 - - 1,000,000 1,000,000 -
1,379,366 1,689 (3,606) 1,377,449 1,376,466 983
Interfund:
CDR from mgmt fund 185,000 - - 185,000 185,000 -
Totals $ 1,564,366 $ 1,689 $ (3,606) $ 1,562,449 $ 1,561,466 $ 983
Interest on these loans is a follows:
Balance Interest Interest Balance Long-term Short-term
3/31/2020 Accrued Repaid 3/31/2021 Portion Portion
CDBG Loan Program $ 117,370 $ 9,255 $ - $ 126,625 $ 126,625 $ -
Rental Rehab. Program 20,635 1,620 - 22,255 22,255 -
DeAnza Gardens LP 570,107 30,000 - 600,107 600,107 -
Totals $ 708,112 $ 40,875 $ - $ 748,987 $ 748,987 $ -
36
Note 4 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The Authority has made deferred payment loans to individuals and organizations under the
County’s 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 9).
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.
37
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Note 5 - CAPITAL ASSETS
Capital asset activity for the year ending March 31, 2021.
March 31, Adjustments/ March 31,
2020 Additions Transfers Deletions 2021
Capital assets, not
being depreciated:
Land $ 2,158,260 $ - $ 489,055 $ - $ 2,647,315
Construction in progress 1,173,804 1,494,763 (1,308,477) - 1,360,090
Total 3,332,064 1,494,763 (819,422) - 4,007,405
Capital assets depreciated:
Buildings and improvements 102,564,403 64,192 819,422 - 103,448,017
Equipment 3,033,219 567,319 - (240,672) 3,359,866
Total capital assets
being depreciated 105,597,622 631,511 819,422 (240,672) 106,807,883
Total capital assets 108,929,686 2,126,274 - (240,672) 110,815,288
Accumulated depreciation:
Buildings and improvements (93,853,196) (1,348,133) - - (95,201,329)
Equipment (2,854,598) (188,461) - 240,672 (2,802,387)
Total accumulated
depreciation (96,707,794) (1,536,594) - 240,672 (98,003,716)
Total capital assets depreciated, net 8,889,828 (905,083) 819,422 - 8,804,167
Total capital assets, net $ 12,221,892 $ 589,680 $ - $ - $ 12,811,572
The changes by project are as follows:
March 31, Adjustments/ March 31,
2020 Additions Transfers Deletions 2021
TOTAL CAPITAL ASSETS:
Public Housing $ 96,017,108 $ 1,796,544 $ - $ (133,394) $ 97,680,258
Housing Choice Voucher 5,397,267 285,681 - (107,278) 5,575,670
CDBG/Rental Rehab Loan 3,937 - - - 3,937
Management Fund 81,446 - - - 81,446
Central Office Cost Center 184,580 13,878 - - 198,458
Blended Component Units:
Casa Del Rio 7,245,348 30,171 - - 7,275,519
Total capital assets 108,929,686 2,126,274 - (240,672) 110,815,288
DEPRECIATION:
Public Housing (89,198,501) (1,068,484) - 133,394 (90,133,591)
Housing Choice Voucher (2,692,982) (287,731) - 107,278 (2,873,435)
CDBG/Rental Rehab Loan (3,937) - - - (3,937)
Management Fund (77,927) (1,672) - - (79,599)
Central Office Cost Center (180,835) (6,058) - - (186,893)
Blended Component Units:
Casa Del Rio (4,553,612) (172,649) - - (4,726,261)
Total depreciation (96,707,794) (1,536,594) - 240,672 (98,003,716)
Net $ 12,221,892 $ 589,680 $ - $ - $ 12,811,572
38
Note 5 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The Authority has been working with HUD to dispose of three of their Public Housing projects.
The units associated with these projects have been removed from the Authority’s available rental
units and have been demolished or are sitting idle. The historical costs of these units remain on
the books of accounts and included in the amounts shown above. As of March 31, 2021,
$1,083,643 of land and $466,495 of construction-in-progress is included above as capital assets,
not being depreciated. In addition, buildings and improvements of $16,872,257, along with the
associated depreciation of $16,628,877, are included above as capital assets being depreciated.
Depreciation will continue until the property is sold, at which time the book value of the property
will be removed from the books of accounts.
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
3/31/2020 Issued Payments 3/31/2021 Portion Portion Payable
Office building mortgage $ 1,462,146 $ - $ (229,403) $ 1,232,743 $ 240,762 $ 991,981 $ -
Blended component units:
Casa Del Rio:
CHFA 214,020 - (36,420) 177,600 39,365 138,235 -
RHCP 2,626,618 - - 2,626,618 - 2,626,618 1,878,288
4,302,784 - (265,823) 4,036,961 280,127 3,756,834 1,878,288
Loan costs (15,388) 3,140 (12,248) (12,248)
Totals $ 4,287,396 $ - $ (262,683) $ 4,024,713 $ 280,127 $ 3,744,586 $ 1,878,288
Interfund:
Mgmt Fund to CDR $ 185,000 $ - $ - $ 185,000 $ - $ 185,000 $ -
Following is a schedule of debt payment requirements to maturity for the mortgages noted above
that require payments:
Office Building CHFA
Year ending Principal Interest Principal Interest Total
2022 $ 240,762 $ 55,457 $ 39,365 $ 12,466 348,050
2023 253,060 43,159 42,547 9,284 348,050
2024 265,722 30,497 45,987 5,844 348,050
2025 279,154 17,065 49,701 2,130 348,050
2026 194,045 3,615 - - 197,660
$ 1,232,743 $ 149,793 $ 177,600 $ 29,724 $ 1,589,860
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
39
Note 6 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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. On November 1, 2015,
the terms of the loan agreement with WestAmerica Bank were changed. As of November 1, 2015,
the $2,335,903 loan will be amortized over 120 months, is due November 1, 2025, requires
monthly payments of $24,685, and accrues interest at a fixed rate of 4.850% per annum. Interest
of $66,816 was paid to WestAmerica Bank and expensed during the fiscal year ended March 31,
2021.
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 $15,410 was paid and
expensed during the calendar year ended December 31, 2020.
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
payments were made on this loan during the year ended December 31, 2020. Interest payments
in the amount of $240,750 were made to the State during the current fiscal year. This payment
represented 75% of excess cash as of December 31, 2019. 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 $1,878,288. Of this amount $542,815 is reported as a short-term liability. This amount
represents 75% of the excess cash as of December 31, 2020. The remaining amount is considered
to be long-term and is shown as other noncurrent liabilities. See also Note 9.
Costs incurred in order to obtain permanent financing for the Casa Del Rio notes were $94,143
and are amortized on a straight-line basis into interest expense over the term of the loan. Interest
expense amortization of permanent loan costs was $3,140 during the current fiscal year.
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.
40
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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, 2021, $99,686 was expensed for payment in lieu of taxes. Approximately 75% is
payable as of March 31, 2021 and is shown as Due to Other Agencies.
Note 8 - UNEARNED REVENUE
Unearned revenue consists of:
Revolving loan funds held for future expenditures $ 189,663
Prepaid rent - Public Housing $ 29,485
Casa Del Rio 675 30,160
Prepaid portability payments received
from other agencies - Housing Choice Voucher 350,982
$ 570,805
Note 9 - OTHER NONCURRENT LIABILITIES
Other noncurrent liabilities consist of:
Loan liability:
CDBG:
Notes receivable (See also Note 4) $ 322,436
Interest on notes receivable (See also Note 4) 126,625 $ 449,061
Rental Rehabilitation:
Notes receivable (See also Note 4) 54,030
Interest on notes receivable (See also Note 4) 22,255 76,285
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) 1,335,473
$ 1,860,819
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) $ 12,811,572
Long term debt (omitting interfund balances) (see Note 6) (4,024,713)
Accrued interest on long term debt (see Note 6 & 9) (1,335,473)
Net investment in capital assets $ 7,451,386
41
Note 10 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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 the following as restricted net position:
Housing Choice Voucher - HAP $ 1,477,589
Mainstream Voucher - HAP 270,717
Casa Del Rio Senior Housing - Reserves 765,095
Restricted net position $ 2,513,401
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). Most excess allocation is now held by HUD until PHAs demonstrate the need for
the disbursement of funds. The balance in the HUD held reserves as of December 31, 2020
was approximately $70,000 and $220,000 for the Housing Choice and Mainstream 5
Voucher Programs, respectively.
The restricted net position associated with the Casa Del Rio Senior Housing represents
replacement and operating reserves required by CHFA. These funds are being held by CHFA
and are fully funded. See also Note 3.
C. Deficit Unrestricted Net Position
The Authority has a deficit unrestricted net position balance as of March 31, 2021, of
$3,997,806. This deficit is the result of the Authority’s compliance with GASB Statement
No 68, Accounting and Financial Reporting for Pensions - an amendment of GASB
Statement 27 and GASB Statement No 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (OPEB). When these factors are isolated, the
Authority has positive unrestricted net assets as it relates to operations. The balances
associated with the pension and OPEB plans change annually as payments are made to the
plan and as actuarial information is received regarding the plan.
The following detail provides as overview, at the Authority-wide level, of the unrestricted
net position:
Balance Net Balance
4/1/2020 Change 3/31/2021
Operations net position $ 9,712,176 $ 5,289,159 $ 15,001,335
GASB 68 Pension net position (7,144,227) 1,843,949 (5,300,278)
GASB 75 OPEB net position (6,565,755) (168,879) (6,734,634)
$ (3,997,806) $ 6,964,229 $ 2,966,423
42
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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
(CCCERA) under the County’s Employee’s Retirement Law of 1937 (1937 Act) and the
Public Employee’s Pension Act of 2013 (PEPRA). A more detailed description of the plan
and the benefits provided can be obtained from the CCCERA’s Comprehensive Annual
Financial Report and the CCCERA’s Actuarial Valuation and Review, which are located at
www.cccera.org. CCCERA is a component unit of the County of Contra Costa.
CCCERA follows accounting principles and reporting guidelines set forth by GASB. The
financial statements are prepared in accordance with generally accepted accounting principles
in the United States of America, under which revenues are recognized when earned and
deductions are recorded when the liability is incurred. Contributions are recognized in the
period due, investment income is recognized as revenue when earned, retirement benefits and
refunds of contributions are recognized when due and payable in accordance with the terms
of the Plan. Investments are carried at fair value. There have been no significant changes
to the plan.
B. Benefits Provided
All full-time employees of the Authority participate in this plan. There are currently 83
active plan members and 76 retirees or beneficiaries receiving benefits. 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. The Authority has two applicable tiers, Tier 1 Enhanced
and PEPRA Tier IV (3% Max COLA).
Tier 1 Enhanced employees are those with a membership prior to January 1, 2013. These
members are eligible to retire once they attain the age of 70 regardless of service or at age
50, with 10 or more years of retirement service credit. A member with 30 years of service
is eligible to retire regardless of age. Benefits are calculated pursuant to Section 31676.16
for Enhanced Benefit Formulae. The monthly allowance is 1/50th (Enhanced) of final
compensation times years of accrued retirement service credit times age factor from Section
31676.16 (Enhanced). The maximum retirement benefit is 100% of final compensation.
Final average compensation consists of the highest 12 consecutive months.
PEPRA Tier IV employees are those with a membership on or after January 1, 2013. These
members are eligible to retire once they have attained the age of 70 regardless of service or
at 52, with five years of retirement service credits. Benefits are calculated pursuant to the
43
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
provisions found in California Government Code Section 7522.20(a). The monthly
allowance is equal to the final compensation multiplied by years of accrued retirement credit
multiplied by the age factor from Section 7522.20(a). There is no final compensation limit
in the maximum retirement benefit for this tier. Final average compensation consist of the
highest 36 consecutive months.
C. Contributions
The Authority contributes to the retirement plan based upon actuarially determined
contribution rates adopted by the Board of Retirement. Employer contribution rates are
adopted annually based upon recommendations received from the CCCERA actuary after the
completion of the annual actuarial valuation. Contribution rates for Tier 1 vary based on the
employee’s age at entry into the plan. Members are required to make contributions to
CCCERA regardless of the retirement plan or tier in which they are included. The rates and
contributions made during the fiscal year ended March 31, 2021 were as follows:
Payroll Contribution Contribution
Subject to Employer as a % of Employee as a % of
Tier Contribution Contribution Payroll Contribution Payroll
Classic (tier 1) $ 3,790,661 $ 1,780,583 46.97% $ 277,948 7.33%
PEPRA 2,271,543 957,354 42.15% 168,199 7.40%
Total $ 6,062,205 $ 2,737,937 45.16% $ 446,147 7.36%
The contributions made by the Authority of $2,737,937, including $230,230 employer
subvention of member contributions. As of March 31, 2021, the Authority owed CCCERA
$273,026. This liability is short-term, represents March contributions paid in April 2021,
and is reported as “accrued salaries and related costs” in the Statement of Net Position -
Proprietary Funds.
D. Net Pension Liability
The Governmental Accounting Standards 68 Actuarial Valuation Based on December 31,
2020 Measurement Date for Employer Reporting as of June 30, 2021, provided by CCCERA
outlines the net pension liability (NPL) allocated to its member employers as based on the
following definition of covered payroll - “Only compensation earnable and pensionable
would go into the determination of retirement benefits”. The NPL was measured as of
December 31, 2020 and 2019. The Plan’s Fiduciary Net Position was valued as of the
measurement dates and the TPL was determined based upon rolling forward the TPL from
actuarial valuations as of December 31, 2019 and 2018, respectively. In addition, changes
in actuarial assumptions or plan provisions that occurred between the valuation date and the
measurement date have been reflected, if any. Consistent with the provisions of GASB 68,
the assets and liabilities measured as of December 31, 2020 and 2019 are not adjusted or
rolled forward to the June 30, 2021 and 2020 reporting dates, respectively.
44
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The components of NPL for CCCERA, as a whole, are as follows:
Reporting Date for employer under GASB 68 6/30/2021 6/30/2020
Measurement Date for Employer under GASB 68 12/31/2020 12/31/2019
Total Pension Liability (TPL) $ 10,531,687,786 $ 10,121,098,471
Plan’s Fiduciary Net Position (10,070,237,862) (9,257,012,679)
Net Pension Liability (NPL) $ 461,449,924 $ 864,085,792
Plan’s Fiduciary Net Position as a % of TPL 95.62% 91.46%
The Plan provisions used in the measurement of the NPL as of December 31, 2020 and 2019
are the same as those used in the CCCERA actuarial valuation as of December 31, 2020 and
2019, respectively. The TPL and the Plan’s Fiduciary Net Position include liabilities and
assets held for the Post Retirement Death Benefit Reserve.
The most recent Actuarial Report available from CCCERA had a valuation date of December
31, 2020. The December 31, 2020 CCCERA Actuarial Report reflects the following changes
to the Authority’s NPL balances:
Reporting Date for employer under GASB 68 6/30/2021 6/30/2020
Measurement Date for Employer under GASB 68 12/31/2020 12/31/2019
NPL as the beginning of the measurement period $ 6,324,839 $ 10,796,497
Pension Expense 663,756 1,967,995
Employer Contributions (1)(2,469,111) (2,297,649)
New Net Deferred Inflows/Outflows of Resources (1,592,562) (2,835,860)
Change in Allocation of Prior Deferred Inflows/Outflows (27,995) (87,169)
New Net Deferred Flows Due to Changes in Proportion (2)96,299 (281,795)
Recognition of Prior Deferred Inflows/Outflows of Resources 376,331 (943,947)
Recognition of Prior Deferred Flows Due to Change in Proportion (2)87,424 6,767
NPL as of the end of the measurement period $ 3,458,981 $ 6,324,839
Authority’s proportionate share of CCCERA’s NPL 0.750% 0.732%
(1) Includes “ member subvention of employer contributions” and excludes “ employer subvention of member contributions”.
(2) Includes differences between employer contributions and proportionate share of contributions.
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability as of December 31, 2020 calculated using
the discount rate of 7.00%, as well as what the NPL liability would be if it were calculated
using a discount rate that is one percentage point lower or higher than the current rate:
1% decrease Current rate 1% increase
6.00% 7.00% 8.00%
Housing Authority NPL $ 12,637,628 $ 3,458,981 $ (4,060,100)
CCCERA NPL in total $ 1,863,212,334 $ 461,449,924 $ (686,863,670)
Authority NPL as a % of CCCERA 0.678% 0.750% 0.591%
45
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
Pension expense represents the change in the net pension liability during the measurement
period, adjusted for actual contributions and the deferred recognition of changes in
investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits
as follows:
Reporting Date for employer under GASB 68 6/30/2021 6/30/2020
Measurement Date for Employer under GASB 68 12/31/2020 12/31/2019
Service Cost $ 1,809,469 $ 1,709,668
Interest on total pension liability 5,333,407 4,976,147
Expensed portion of current-period changes in proportion
and differences between employer’s contributions and
proportionate share of contributions 27,752 (80,284)
Expensed portion of current-period difference between
expected and actual experience in the TPL (17,037) 195,456
Expensed portion of current-period changes of
assumptions or other inputs (29,928) -
Member contributions (1)(860,818) (801,303)
Projected earnings on plan investments (4,868,081) (4,171,930)
Expensed portion of current-period differences between
actual and projected earnings on plan investments (357,398) (880,478)
Administrative expense 81,533 75,342
Other expenses 8,612 8,197
Recognition of beginning of year deferred outflows of
resources as pension expense 1,464,192 1,922,468
Recognition of beginning of year deferred inflows of
resources as pension expense (1,840,523) (978,521)
Net amortization of deferred amounts from changes in
proportion and differences between employer’s
contribution and proportionate share of contributions (87,424) (6,767)
Pension expense $ 663,756 $ 1,967,995
(1) Includes “ employer subvention of members contributions” and “ excludes member subvention of employer contributions”
Deferred outflows and inflows of resources represent the unamortized portion of changes to
net pension liability to be recognized in future periods in a systematic and rational manner,
In addition, deferred outflows of resources include employer contributions to the pension
plan made subsequent to the measurement date, as follows:
46
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Deferred Deferred
Outflows Inflows
Changes in proportion and differences between employer’s
contribution and proportionate share of contribution (1)$ 133,238 $ 335,838
Changes in assumptions or other input - 344,550
Net excess of projected over actual earnings
on pension plan investments - 2,493,719
Difference between expected and actual experience
in the Total Pension Liability 640,302 87,750
Balances per actuarial report
- measurement date 12/31/2020 773,540 3,261,857
Employer contributions made January thru March 2021 647,020 -
Balances reported March 31, 2021 $ 1,420,560 $ 3,261,857
(1) Calculated in accordance with Paragraph 54 and 55 of GASB 68
Deferred outflows and inflows of resources, other than the employer contributions noted
above, are reported in the aggregate as net deferred inflows and will be recognized in future
pension expense as follows:
Measurement period:
2021 $ (832,158)
2022 (70,394)
2023 (1,219,337)
2024 (366,428)
$ (2,488,317)
The amount reported as deferred outflows of resources related to employer contributions
made January through March 2021, should have the effect of reducing net pension liability
during the next actuarial measurement period.
F. Actuarial Assumptions
The total pension liability (TPL) as of December 31, 2020, and December 31, 2019 that were
measured by actuarial valuations as of December 31, 2019 and December 31, 2018,
respectively, used the following actuarial assumptions, which were based on the results of
an experience study for the period January 1, 2015 through December 31, 2017, applied to
all periods included in the measurement. They are the same actuarial assumptions as those
used for the December 31, 2020 funding valuation and the December 31, 2019 funding
actuarial valuation. The TPL determined as of December 31, 2020 also included a refinement
to the Entry Age actuarial cost method calculation for active reciprocal members and was
based on a recommendation made in the December 31, 2018 actuarial audit.
47
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Valuation Date 12/31/2020 12/31/2019
Actuarial Cost Method Entry Age Entry Age
Amortization Method Level % of Payroll Level % of Payroll
Inflation 2.75% 2.75%
Salary increases - general 3.75% to 15.25% 3.75% to 15.25%
Investment rate of return 7.00% 7.00%
Administrative expenses 1.14% 1.14%
Cost of living adjustment 2.75% 2.75%
When measuring pension liability GASB uses the same actuarial cost method (Entry Age
method) and the same type of discount rate (expected return on assets) as CCCERA uses for
funding. This means that the TPL measured for financial reporting shown in this report is
determined on generally the same basis as CCCERA’s actuarial accrued liability (AAL)
measure for funding.
Mortality rates for member contributions were based on the PUB-2010 General Healthy
Retiree Amount-Weighted Above-Median Mortality Table (separate tables for males and
females), projected 30 years with the two-dimensional mortality improvement scale MP-
2020, weighted 30% male and 70% female.
The long-term expected rate of return on pension plan investments determined in 2019 using
a building-block method in which expected future real rates of return (expected returns, net
of inflation) are developed for each major asset class. These returns are combined to produce
the long-term expected rate of return by weighing the expected future real rates of return by
the target asset allocation percentage, adding expected inflation and subtracting expected
investment expenses and a risk margin. The target allocation and projected arithmetic real
rates of return for each major asset class, after deducting inflation but before deducting
investment expenses are shown in the following table. This information was used in the
derivation of the long-term expected investment rate of return assumption for the December
31, 2020 and 2019 actuarial valuations. This information will be subject to change every
three years based on the results of an actuarial experience study.
Target Long-term Expected
Asset Class Allocation Real Rate
Large Cap U.S. Equity 5.0% 5.44%
Developed International Equity 13.0 6.54
Emerging Markets Equity 11.0 8.73
Short-term Gov’t/Credit 23.0 0.84
U. S. Treasury 3.0 1.05
Private Equity 8.0 9.27
Risk Diversifying 7.0 3.53
Global Infrastructure 3.0 7.9
Private Credit 12.0 5.80
Real Estate (all) 10.0 6.8%-12%
Risk Parity 5.0 5.80
Total 100.0%
48
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The discount rate used to measure the TPL was 7% as of both December 31, 2020 and
December 31, 2019. The projection of cash flows used to determine the discount rate
assumed employer and employee contributions will be made at the rates equal to the
actuarially determined contribution rates. For this purpose, only employee and employer
contributions that are intended to fund benefits for current plan members and their
beneficiaries are included. Projected employer contributions that are intended to fund the
service costs for future plan members and their beneficiaries, as well as projected
contributions for future plan members, are not included. Based on those assumptions, the
Pension Plan’s Fiduciary Net Position was projected to be available to make all projected
future benefit payments for current plan members. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit
payments to determine the TPL as of both December 31, 2020 and 2019.
Note 12 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSION
Plan Description: Contra Costa County Housing Authority (The Authority) administers a single-
employer, defined benefit health care plan. Currently, the plan provides postemployment medical
and dental insurance benefits to eligible employees, and their dependents, who retire from the
Authority and commence receiving their CCCERA pension at the time of retirement. Health
benefit provisions for active employees are established and may be amended through negotiations
between the Authority and their bargaining unit and employee groups. The Authority does not
issue a separate audit report on its post retirement health benefit plan.
The Contra Costa County Board of Supervisors appointed the Executive Director of the Authority
as the Plan Administrator. As of March 31, 2021, Public Agency Retirement Services is the Trust
Administrator.
The Contra Costa County Board of Supervisors has the right at any time and for any reason, in
its sole discretion, to modify, alter, or amend the Plan in whole or in any part, in any manner and
without limit, including reducing or eliminating the payment of any benefits. WestAmerica Bank
(Trustee) shall, upon written direction of the Plan Administrator, make distributions from the
assets of the Trust to the insurers, third party administrators, health care and welfare providers or
other entities providing Plan benefits or services, or to the employer for reimbursement of Plan
benefits ad expenses paid by the employer.
Benefits: The Authority has contracted with Kaiser Permanente, Anthem, United Healthcare,
Blue Shield, and the California Public Employees’ Retirement System (CalPERS) to provide
medical benefits and Delta Dental for dental benefits.
49
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The Authority contributes the cost of retiree medical and dependent medical and dental coverage
up to specified limits. The maximum monthly contributions are:
Coverage Level Maximum Monthly Contribution
Retiree $462
Retiree +1 $924
Retiree +2 $1,205
These caps are not expected to increase in the future. At the retiree’s death a surviving spouse
may elect to continue coverage. However, they must contribute 100% of the required
contribution. The retiree dental plan is the same as the plan provided to active employees.
Monthly dental only premiums are:
Coverage Level Dental Only Premium
Retiree $ 63.72
Retiree +1 $110.81
Retiree +2 $186.36
Eligibility: Eligibility for retiree medical and dental benefits generally require an employee to (1)
be age 50 or older with at least 10 years of service with the Authority, (2) be age 55 or older with
at least 5 years of service with the Authority, or (3) have completed 30 or more years of service
with the Authority.
Demographic Data for the fiscal year ended June 30, 2020:
Retirees and beneficiaries receiving benefits 68
Active plan members 81
Total 149
Contributions: The contribution requirements of program members and the Authority are
determined by negotiations between the Authority and the respective unions and employee
groups. There is currently no requirement for employees to contribute to the plan.
In 2016, The Authority established a trust account with the Public Agency Retirement Services
(PARS) to administer the funding of the projected benefits of the OPEB plan. Monthly, the
Authority makes healthcare premium payments for its current retirees to the benefit providers.
The retiree contributes any necessary amount of the premium cost that exceeds the specific
established plan limits. The Authority then makes deposits into their PARS trust account for the
difference between the actuarially determined annual OPEB cost and the out-of-pocket payments
made to the healthcare benefit providers.
50
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
The contributions made for the measurement period year ended June 30, 2020 were as follows:
Contribution made to PARS $ -
Payments to CalPERS for retiree premiums 329,675
Payments to CalPERS for implicit subsidy of retirees 103,787
Total employer contributions $ 433,462
Investments: The Plan’s policy in regard to the allocation of invested assets is established and may
be amended by the Plan Administrator. Plan assets are managed on a total return basis with a
long-term objective of achieving and maintaining a fully funded status for the benefits provided
through the Plan. The following was the adopted asset allocation policy as of June 30, 2020:
Long-Term Expected
Investment Class Target allocation Real Rate of Return (1)
Equity 73% 5.66%
Fixed Income 20% 1.46%
REITs 2% 5.06%
Cash 5% 0.00%
(1) JPMorgan arithmetic Long Term Capital Market assumptions and expected inflation of 2.26%
OPEB Liabilities, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows
of Resources related to OPEB:
At March 31, 2021, the Authority reported $6,663,297 for the net OPEB liability. The net OPEB
liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net
OPEB liability was based on an actuarial valuation as of June 30, 2020. The Authority’s net
OPEB liability was based on a projection of the Authority’s covered payroll of $5,804,388.
Plan Fiduciary Net Position (plan assets) was valued as of the measurement date and agrees with
the account balance held by PARS. As of June 30, 2020, the Plan Fiduciary Net Position was
$752,456.
For the year ended March 31, 2021, the Authority recognized OPEB expense of $587,138. OPEB
expense represents the change in the net OPEB liability during the measurement period, adjusted
for service cost, interest on the total OPEB liability, and expected investment return, net of
investment expense, as follows:
51
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
6/30/2020 6/30/2019
Components of OPEB Expense
Service Cost $ 209,178 $ 166,281
Interest on the total OPEB liability 553,480 436,877
Projected earnings on OPEB plan investments (56,181) (43,011)
Administrative expenses 1,883 1,246
Changes in benefit terms - 1,308,625
Recognition of deferred resources due to:
Changes in assumptions (28,195) 3,603
Differences between expected and actual experience (107,073) (63,742)
Differences between projected and actual earnings on assets 14,046 1,447
Aggregate OPEB expense $ 587,138 $ 1,811,326
The components of the net OPEB liability as of June 30, 2020, were as follows:
6/30/2020 6/30/2019
Total OPEB Liability
Service Cost $ 209,178 $ 166,281
Interest 553,480 436,877
Changes in benefit terms - 1,308,625
Differences between expected and actual experience (235,678) 24,988
Changes in assumptions (171,044) -
Benefits payments (433,462) (371,272)
Net change in total OPEB liability (77,526) 1,565,499
Total OPEB liability - beginning (a) 7,493,279 5,927,780
Total OPEB liability - ending (b) $ 7,415,753 $ 7,493,279
Plan Fiduciary Net Position
Contributions - employer $ 433,462 $ 663,460
Net investment income (6,813) 31,079
Benefit payments (433,462) (371,272)
Administrative expenses (1,883) (1,246)
Net change in plan fiduciary net position (8,696) 322,021
Plan fiduciary net position - beginning (.c.) 761,152 439,131
Plan fiduciary net position - ending (d) $ 752,456 $ 761,152
Net OPEB Liability - beginning (a) - (.c.) $ 6,732,127 $ 5,488,649
Net OPEB Liability - ending (b) - (d) $ 6,663,297 $ 6,732,127
52
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
At March 31, 2020, the Authority reported deferred inflows of resources and deferred outflows
of resources related to OPEB for the following resources:
Deferred Deferred
Outflows Inflows
Unrecognized deferred resources due to:
Differences between expected and actual experience $ 15,002 $ 323,635
Changes in assumptions 7,222 139,246
Net differences between projected and actual earnings 56,616 -
Balances per actuarial report - measurement date 6/30/2020 78,840 462,881
Employer contributions made July 2020 thru March 2021 312,704 -
Balances reported March 31, 2021 $ 391,544 $ 462,881
Deferred outflows and inflows of resources, other than the employer contributions noted above,
will be recognized in future pension expense as follows:
Measurement period:
2022 $ (118,688)
2023 (117,753)
2024 (55,947)
2025 (62,991)
2026 (28,662)
$ (380,041)
The amount reported as deferred outflows of resources related to employer contributions made
July 2020 through March 2021, should have the effect of reducing net pension liability during the
next actuarial measurement period.
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 total OPEB liability was determined by an actuarial valuation as of June 30, 2020, with a
measurement date of June 30, 2020. The Entry Age Normal actuarial cost method was used, a
method under which the actuarial present value of the projected benefits of each individual
included in the valuation is allocated on a level basis over the earnings or service of the individual
between entry age and assumed exit ages. The portion of this Actuarial Present Value allocated
to a valuation year is called the normal cost. The methodology used for amortization was straight-
line. For assumption changes and experience gains/losses, it was assumed Average Future
53
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Working Lifetime, averages over all activities and retirees (retirees are assumed to have no future
working years). Asset gains and losses are assumed 5 years. Assets are valued at the market
value of assets as of the measurement date. The Authority intends to contribute the ADC to the
PARS trust each year. In addition pay-as-you-go benefit payments will be paid outside of the
trust.
The Authority used the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Inflation 2.26% annually
Payroll increases 3.25% annually
Net investment return 7.39% based on PARS capital appreciation investment policy
Discount rate 7.39% based on PARS capital appreciation investment policy
Health care trend Year Increase in premium rates
Beginning Pre 65 Post 65
2022 6.80% 5.00%
2023 6.55% 5.00%
2024 6.30% 5.00%
2025 6.05% 5.00%
2026 5.80% 5.00%
2027 5.55% 5.00%
2030 and later 5.00% 5.00%
Baseline cost Pre-Medicare $9,493 per year
Post-Medicare $3,983 per year
Health plan participation 90% of active employees who are currently enrolled in medical and
dental coverage and retire from the Authority will elect to
participate in the retiree medical and dental program. Furthermore
70% of active employees who are currently only enroled in dental
coverage and retire from the Authority will elect to participate in
the retiree medical and dental program.
Medicare Coverage The assumption is that all future retirees will be eligible for
Medicare when they reach age 65.
Morbidity Factors CalPERS 2017 study
Population for Curving CalPERS 2017 study
Age weighted claim costs Age Claim costs
50 $ 10,047
55 $ 12,177
60 $ 14,806
65 $ 4,115
70 $ 3,629
75 $ 4,226
80 $ 4,683
54
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Mortality The mortality rates used are those described in the 2017 CCCERA
experience study.
Pre-retirement - Pub-2010 General Employment Amount-Weighted
Above-Median Mortality projected forward with the MP-2020
generational projections.
Post-retirement - Pub-2010 General Healthy Retiree Amount-
Weighted Above-Median Mortality projected forward with the
MP-2020 generational projections.
Disability Because of the anticipated low incidence of disability retirements
disability was not valued.
Percent Married Assumption was that 80% of male retirees and 55% of female
retirees were married.
Retirement Rates selected are those described in the 2017 CCCERA
experience study. Employees hired before January 2013 were
valued using the General Tier 1 Enhanced Retirement table, while
employees hired on or after January 1, 2013 were valued using the
PEPRA retirement table.
Withdrawal Rates are based on the 2017 CCCERA experience study.
There have been no assumptions changes since the last measurement date.
Discount Rate: The discount rate of 7.39%, is based on a blend of the long-term expected rate
of return on assets for benefits covered by plan assets and a yield or index of 20-year, tax-exempt
general obligation municipal bonds with an average rating of AA/Aa or better for benefits not
covered by plan assets. The following presents the Authority’s NOL if it were calculated using
a discount rate 1% higher and 1% lower than the current rate:
1% decrease Current rate 1% increase
6.39% 7.39% 8.39%
Authority NOL $ 7,346,426 $ 6,663,297 $ 6,072,344
Trend Rate : The following presents the Authority’s NOL if it were calculated using a trend table
that is 1% point higher and 1% point lower than the current rate:
1% decrease Current 1% increase
in trend rate Trend Rate in trend rate
Authority NOL $ 6,007,671 $ 6,663,297 $ 7,149,653
55
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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 $5,403,468 is being held by Mass Mutual Financial Group on behalf of the Authority’s
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
Authority’s general creditors.
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.
56
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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
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 sponsor’s 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 Authority’s 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, 2020, 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,
2020, which differs from that of the Authority’s fiscal year end of March 31, 2021. 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
Authority’s 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, 2020, are as follows:
STATEMENT OF NET POSITION
Current assets $ 707,604
Restricted assets 772,861
Property and equipment 2,549,258
Other non-current assets 191,800
Total assets $ 4,221,523
57
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
STATEMENT OF NET POSITION (continued)
Current liabilities $ 624,386
Payable from restricted assets 7,766
Long term liabilities 4,719,460
Total liabilities 5,351,612
Net investment in capital assets (1,578,185)
Restricted net position 765,095
Unrestricted net position (316,999)
Total net position (1,130,089)
Total liabilities and net position $ 4,221,523
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Rents and other tenant revenue $ 1,448,658
Other revenue 2,081
Total revenue 1,450,739
Administrative expenses 278,088
Utility expenses 108,347
Maintenance expenses 249,624
General expenses 57,069
Depreciation 172,649
Total expenses 865,777
Operating income (loss) 584,962
Interest income 11,639
Debt service interest (97,339)
Change in net position 499,262
Net position at the beginning of the year - 1/1/2020 (1,629,351)
Net position at the end of the year - 12/31/2020 $ (1,130,089)
STATEMENT OF CASH FLOWS
Net cash provided (used) by:
Operating activities $ (278,300)
Noncapital financing activities 900,642
Capital financing activities (322,751)
Investing activities 11,639
Net change in cash 311,230
Cash at the beginning of the year - 1/1/2020 1,144,227
Cash at the end of the year - 12/31/2020 $ 1,455,457
58
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Interfund accounting issues:
Operating advances made by the Authority were $654,620 as of March 31, 2021. The interfund
balance as of December 31, 2020 was $631,382 and was reported as non-current related party
payables by the other auditors. The interfund balance as of December 31, 2020 was eliminated,
while the differences of $23,238, as of March 31, 2021 was reported as other long-term assets in
the Statement of Net Position - Proprietary Funds.
During the fiscal year ended December 31, 2020, CDR Associates and CDR Inc. paid management
fees to the Authority in the amount of $52,452 and $52,536, respectively. On May 15, 2019, HUD
approved the issuance of project based vouchers for 81 of the 82 units in the Casa Del Rio Senior
Housing complex, effective July 1, 2019. During the twelve months ended March 31, 2021, the
Authority’s Housing Choice Voucher Program paid a total of $1,102,298 in HAP payments to
CDR Associates.
Intrafund accounting issues:
The intrafund amounts which have been eliminated as of March 31, 2021, from the Casa Del Rio
Blended Component Unit Enterprise Fund for inclusion into the Fund Financial Statements
include:
$181,330 receivable/payable between CDR Inc and CDR Associates
$1,282,441 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.
$13,912 interest 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 of $1,130,089, including a
deficit unrestricted net position of $316,999. This deficit is a decrease over the prior year’s deficit
balance in total net position of $1,629,351.
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
59
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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, 2020, 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,
2020, which differs from that of the Authority’s fiscal year end of March 31, 2021. 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
Authority’s reporting practices.
Inter-agency accounting issues:
The amounts shown as due to related parties consist of the following:
Primary Gov’t Component Unit
Assets Liabilities
3/31/2021 12/31/2020
Due to the Authority:
Short-term for operations $ 177,286 $ 29,808
Long-term:
Interest on note $ 600,107 $ 592,607
Land lease 1,284,000 1,266,000
Long-term for operations 428,990 572,634
$ 2,313,097 $ 2,431,241
Due to Boston Capital - long-term $ 13,604
The Authority 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, 2005, 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, 2020. No interest has been paid to the
Authority. The Authority reported $600,107 due from related parties and revenue of $30,000. See
Note 4.
DeAnza Gardens was built on land owned by the Authority’s Public Housing Program Enterprise
Fund. Based on an agreement between DeAnza Gardens L.P. and the Authority, the land is leased
60
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
for $72,000 per year, payable from excess/distributable cash. Unpaid lease amounts are carried
forward without interest. The Authority’s Public Housing Program Enterprise Fund reported
$1,284,000 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, 2020, DeAnza Gardens L.P. and DeAnza Corporation
paid management fees to the Authority in the amount of $12,960 and $128,952, respectively.
Some of the DeAnza Gardens tenants (7 as of December 2020) are also clients of the Authority’s
Housing Choice Voucher Program. The rent for these tenants is subsidized by HUD through the
Authority. During the twelve months ended March 31, 2021, the Authority’s Housing Choice
Voucher Program paid $138,649 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.
$1,190,280 of interest on the long-term note held by DeAnza Corp from DeAnza L.P.
$378,141 receivable recognized by DeAnza Corp from DeAnza L.P.
$868 deficit investment in partnership reported by DeAnza Corp is offset by net position in
DeAnza L.P.
$61,652 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) $ 45,468 $ 19,871
Investments - 1,088,552
Held by mortgagor - 680,131
Cash on hand 500 -
$ 45,968 $ 1,788,554
The demand deposits are with WestAmerica bank. The total on deposit did not exceed the amount
covered by FDIC as of December 31, 2020. FDIC coverage is $250,000 for 2020. Cash and
investments of $1,088,552 are held by Cantella & Co., Inc. The investments consist of marketable
certificates of deposit with a cost of $962,011 and a fair value of $1,023,252. The investments also
include $65,300 held in a money market account.
Restricted cash includes replacement and operating reserves required by the lender and reported
as restricted net assets totaling $1,768,683. Cash has also been restricted for security deposits in
61
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
the amount of $19,871. The excess of the security deposit liability of $168,019, over the cash
balance represents cash held as an investment in the operating reserve account.
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:
12/31/2020 12/31/2019
Building and improvements $ 29,533,365 $ 29,510,970
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 555,752 555,752
35,476,986 35,454,591
Less accumulated depreciation (16,504,763) (15,771,997)
$ 18,972,223 $ 19,682,594
Capital assets 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
12/31/2018 Payments 12/31/2020 Portion Portion Payable
$ 7,603,151 $ (281,850) $ 7,321,301 $ 301,025 $ 7,020,276 $ 43,269
Loan costs (22,703) (22,703)
Balances 12/31/2020 $ 7,298,598 $ 6,997,573
Interest expense for the fiscal year ended December 31, 2020 $ 493,383
Costs incurred in order to obtain permanent financing for the De Anza notes were $391,461 and
are amortized on a straight-line basis into interest expense over the term of the loan. Interest
expense amortization of permanent loan costs was $11,352 during the current fiscal year.
62
Note 14 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
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, 2020. The majority of the entity’s assets are either invested in capital assets
or restricted, leaving the unrestricted net position in deficit by $3,556,783. This deficit is an
increase of $163,688, over the prior year’s deficit in unrestricted net position of $3,393,095.
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. Litigation
The Authority is involved in various matters of litigation. It is the Authority’s opinion that
these matters of litigation will not have a material effect, if any, on the financial position of
the Authority.
C. Monitoring by Funding Agency
During 2019, the U.S. Department of Housing and Urban Development conducted on-site
monitoring of the Authority’s Continuum of Care Program. The COVID-19 pandemic has
delayed the final resolution of this monitoring. Dialogue regarding supporting documentation,
as well as the level of detail, for the program match has been on-going. The final version of
the report has not yet been issued. It is the Authority’s opinion that any matters of discussion
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.
63
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Note 17 - 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, 2020, there were twenty-eight 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 is as follows:
December 31, 2020 December 31, 2019
Total assets $ 31,671,493 $ 30,367,986
Total liabilities (16,383,326) (15,625,835)
Net position $ 15,288,167 $ 14,742,151
Total revenues $ 5,812,929 $ 7,069,186
Total expenses (omitting dividends) (4,620,349) (3,957,145)
Dividend expense (646,564) (2,015,578)
Net change in net position $ 546,016 $ 1,096,463
CHWCA had no long-term debt outstanding at December 31, 2020. The Authority’s share of year
end assets, liabilities, or retained earnings has not been calculated. The Authority’s annual
premium is based on covered payroll. Premiums paid for the calendar year ended December 31,
2020 were $209,763. CHWCA issues a separate annual financial report, which may be obtained
by contacting Sedgwick, 1750 Creekside Oaks Drive, Suite 200, Sacramento, California, 95833.
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 $50,000 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.
64
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2021
(Continued)
Note 18 - SUBSEQUENT EVENTS
The Authority has evaluated subsequent events that have occurred through the independent
auditors’ report date. Management determined that there were no subsequent events that required
recognition or disclosure in the financial statements except as noted below.
Uncertainties Surrounding the Coronavirus Outbreak - In the last part of 2019, the world
experienced an outbreak of a strain of the coronavirus labeled COVID-19. COVID-19 spread to
the United States in the first quarter of 2020 causing significant disruption to the economy and
volatility in the U.S. markets. Significant uncertainty continues to exist with regards to the
magnitude and duration of these disruptions and the impact this outbreak will have on the
Authority’s tenants, employees, and vendors. The related financial impact, if any, cannot be
reasonably estimated at this time.
Changes in Health Care Benefits - During labor negotiations conducted during 2021, the Authority
agreed to change the health care subsidy paid from a flat amount to a percentage of the CalPERS
Kaiser Region 1 premium rate effective beginning January 1, 2022. The Authority’s actuarial
consulting firm estimated that this change would increase Net OPEB Liability by $2.9 million.
The change in benefits would be recognized during the fiscal year ending March 31, 2023. On
December 7, 2021, the Board of Commissioners authorized the negotiated healthcare benefits for
the term of July 1, 2021 through June 30, 2024.
65
REQUIRED SUPPLEMENTARY INFORMATION
66
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
REQUIRED SUPPLEMENTARY INFORMATION
AS OF MARCH 31, 2021
Schedule of Proportionate Share of the Net Pension Liability (NPL) for CCCERA
Reporting Date Proportion Proportionate Covered NPL as a %
for Employer of the Share of the Employee of covered Funded
Under GASB 68 NPL NPL Payroll Payroll Ratio
6/30/2014 0.724% $ 10,648,283 $ 4,677,572 227.65% 80.04%
6/30/2015 0.724% $ 8,652,807 $ 4,691,885 184.42% 84.06%
6/30/2016 0.716% $ 10,788,391 $ 4,841,907 222.81% 80.83%
6/30/2017 0.726% $ 10,162,604 $ 5,215,890 194.84% 82.73%
6/30/2018 0.772% $ 6,267,604 $ 5,183,762 120.91% 89.72%
6/30/2019 0.756% $ 10,796,497 $ 5,288,211 204.16% 83.10%
6/30/2020 0.732% $ 6,324,839 $ 5,607,319 112.80% 90.49%
6/30/2021 0.750% $ 3,458,981 $ 5,906,312 58.56% 94.98%
Schedule of Employer Contributions to CCCERA
Contribution in Contributions
Measurement Relation to the as a
Date Actuarially Actuarially Contribution Covered Percentage
Year Ended Determined Determined Deficiency Employee of Covered
December 31 Contributions Contributions (Excess) Payroll Payroll
2015 $ 2,329,742 $ 2,329,742 $ 0 $ 4,841,907 48.12%
2016 $ 2,179,232 $ 2,179,232 $ 0 $ 5,215,890 41.78%
2017 $ 2,150,337 $ 2,150,337 $ 0 $ 5,183,762 41.48%
2018 $ 2,254,454 $ 2,254,454 $ 0 $ 5,288,211 42.63%
2019 $ 2,297,649 $ 2,297,649 $ 0 $ 5,607,319 40.98%
2020 $ 2,469,111 $ 2,469,111 $ 0 $ 5,906,312 41.80%
Contributions exclude “employer subvention of member contributions”. Prior to the December 31, 2016
measurement date the contributions included “employer subvention of member contributions”.
Both schedules above are required to present ten years of information. The information above is presented for the years
currently available. A full ten-year trend will be built as the information becomes available in the future.
The actuarial methods and assumptions used to determine the actuarially determined contributions
(ADC) for CCCERA were as follows:
Valuation date Actuarially determined contribution rates are calculated as of December 31, two and a
half years prior to the end of the fiscal year in which the contributions are reported.
Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level Percentage of Payroll
Remaining amort period Remaining balance of 12/31/07 UAAL is amortized over a fixed period with 4 years
remaining as of 12/31/18. Any changes in UAAL after 12/31/07, will be separately
amortized over a fixed 18-year period effective with that valuation.
Asset valuation method Market value of assets less unrecognized returns in each of the last 9 semi-annual periods.
Investment rate of return 7.00% net of pension plan investment expenses, including inflation.
Inflation rate 2.75%
Administrative expenses 1.10% of payroll allocated to both the employer and member based on components of the
normal cost rates.
Real salary increase 0.5%
Projected salary increases 3.75% to 15.25%
Cost of living adjustment 2.75%
Other Same as those used in the 12/31/18 funding actuarial valuation.
67
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
REQUIRED SUPPLEMENTARY INFORMATION
AS OF MARCH 31, 2021
(Continued)
Schedule of Changes in the Net OPEB Liability and Related Ratios
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance as of June 30, 2016 $ 5,715,330 $ 109,232 $ 5,606,098
Service cost 183,043 - 183,043
Interest 422,711 - 422,711
Difference between expected and actual experience (11,577) - (11,577)
Benefit payments, including refunds (363,140) (363,140) -
Contributions - employer - 458,323 (458,323)
Net investment income - 16,201 (16,201)
Administrative expenses - (350) 350
Balance as of June 30, 2017 5,946,367 220,266 5,726,101
Service cost 192,195 - 192,195
Interest 441,259 - 441,259
Difference between expected
and actual experience (328,931) - (328,931)
Changes in assumptions 18,031 - 18,031
Benefit payments, including refunds (341,141) (341,141) -
Contributions - employer - 537,461 (537,461)
Net investment income - 23,378 (23,378)
Administrative expenses - (833) 833
Balance as of June 30, 2018 5,927,780 439,131 5,488,649
Service cost 166,281 - 166,281
Interest 436,877 - 436,877
Change in benefit terms 1,308,625 - 1,308,625
Difference between expected
and actual experience 24,988 - 24,988
Changes in assumptions - - -
Benefit payments, including refunds (371,272) (371,272) -
Contributions - employer - 663,460 (663,460)
Net investment income - 31,079 (31,079)
Administrative expenses - (1,246) 1,246
Balance as of June 30, 2019 7,493,279 761,152 6,732,127
Service cost 209,178 - 209,178
Interest 553,480 - 553,480
Difference between expected
and actual experience (235,678) - (235,678)
Changes in assumptions (171,044) - (171,044)
Benefit payments, including refunds (433,462) (433,462) -
Contributions - employer - 433,462 (433,462)
Net investment income - (6,813) 6,813
Administrative expenses - (1,883) 1,883
Balance as of June 30, 2020 $ 7,415,753 $ 752,456 $ 6,663,297
Plan fiduciary net position as a % of total OPEB liability:
June 30, 2017 3.70%
June 30, 2018 7.41%
June 30, 2019 10.16%
June 30, 2020 10.14%
68
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
REQUIRED SUPPLEMENTARY INFORMATION
AS OF MARCH 31, 2021
(Continued)
Schedule of Changes in the Net OPEB Liability and Related Ratios (continued)
Covered Payroll
June 30, 2017 Not available
June 30, 2018 $ 5,334,017
June 30, 2019 $ 5,500,723
June 30, 2020 $ 5,804,388
Net OPEB liability as a % of covered payroll
June 30, 2017 Not available
June 30, 2018 102.90%
June 30, 2019 122.39%
June 30, 2020 114.80%
Schedule of Employer Contributions to OPEB
Contribution in Contributions
Measurement Relation to the as a
Date Actuarially Actuarially Contribution Covered Percentage
Year Ended Determined Determined Deficiency Employee of Covered
June 30 Contributions Contributions (Excess) Payroll Payroll
2017 $ 547,470 $ 458,323 $ 89,147 not available not available
2018 548,163 537,461 10,702 $ 5,334,017 10.08%
2019 582,876 663,460 (80,584) $ 5,500,723 12.06%
2020 596,627 433,462 163,165 $ 5,804,388 12.06%
This schedule is required to present ten years of information. The information above is presented for the years currently
available. A full ten-year trend will be built as the information becomes available in the future.
The actuarial methods and assumptions used to determine the actuarially determined contributions
(ADC) for OPEB were as follows:
Valuation date Jun 30, 2020
Measurement date June 30, 2020
Actuarial cost method Entry Age Normal
Amortization method Straight-line Amortization
Asset valuation method Market value of assets as of the measurement date.
Funding Policy The Authority intends to contribute the ADC to PARS trust each year net of unreimbursed
retiree benefit payments (explicit and implicit) paid outside of the trust.
Discount Rate 7.39%
Net Investment Return 7.39%
Inflation rate 2.26%
Payroll Increases 3.25%
69
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
MARCH 31, 2021
The Schedule of Proportionate Share of Net Pension Liability presents the Authority’s portion of
CCCERA’s NPL as a dollar value as well as a percentage. The funded ratio represents the Authority’s
proportionate share of the Plan’s Fiduciary Net Position as a percentage of the Authority’s proportionate
share of the Total Pension Liability. GASB 68 requires this schedule to include ten-year trend analysis.
The trend analysis is intended to aid the reader in determining the financial health of the pension plan.
The schedule contains all currently known information and will be built prospectively as the
information becomes available, until the ten year requirement has been met. This schedule was
provided by CCCERA in its “GAS 68 Actuarial Valuation Based on December 31, 2020 Measurement
Date for Employer Reporting as of June 30, 2021".
The Schedule of Employer Contributions to CCCERA presents information regarding the Authority’s
required contributions to CCERA, the amounts actually contributed, and any excess or deficiency to
the contributions required. This schedule reports only employer required contributions. The amounts
noted are based on the Plan’s calendar year and not on the Authority’s fiscal year end of March 31. See
also Footnote 11 to the Basic Financial Statements for the contributions, both employer and employee,
for the current fiscal year. GASB 68 requires this schedule to include ten-year trend analysis. The trend
analysis is intended to aid the reader in determining the financial health of the pension plan. The
schedule contains all currently known information and will be built prospectively as the information
becomes available, until the ten year requirement has been met. The information for this schedule was
obtained from information contained in CCCERA’s “GAS 68 Actuarial Valuation Based on December
31, 2020 Measurement Date for Employer Reporting as of June 30, 2021".
The Schedule of Employer Contributions to OPEB presents information regarding the Authority’s
required contributions to their OPEB plan, the amounts actually contributed, and any excess or
deficiency to the contributions required. This schedule reports only employer required contributions.
The amounts noted are based on the Plan’s calendar year and not on the Authority’s fiscal year end of
March 31. See also Footnote 12 to the Basic Financial Statements for the contributions, both employer
and employee, for the current fiscal year. GASB 75 requires this schedule to include ten-year trend
analysis. The trend analysis is intended to aid the reader in determining the financial health of the
pension plan. The schedule contains all currently known information and will be built prospectively
as the information becomes available, until the ten year requirement has been met. The information for
this schedule was obtained from information contained in “Housing Authority of Contra Costa
Authority OPEB Plan”, with a measurement date of June 30, 2020.
There have been no changes in assumptions or benefit terms since the previous valuation for CCCERA.
There have been no changes in assumptions or to the benefit terms of the OPEB plan.
70
SUPPLEMENTARY INFORMATION
71
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2021
Passed
CFDA Through to Federal
Federal Grantor Number Subrecipients Expenditures
Department of Housing and
Urban Development (HUD):
Direct Programs:
Housing Choice Voucher Program 14.871 $159,811,157
COVID-19 - CARES Act
Administrative Fee Allocation 14.871 4,026,124
Supplemental HCV HAP 14.871 3,664,138
Mainstream Voucher Program 14.879 1,184,646
COVID-19 - CARES Act
Administrative Fee Allocation 14.879 16,729
Subtotal for Housing Voucher Cluster 168,702,794
Continuum of Care Program 14.267 $ 194,911 6,708,386
Public and Indian Housing 14.850 5,261,864
COVID-19 - CARES Act
Supplemental Operating Funds 14.850 808,551
Subtotal for Public Housing 6,070,415
Public Housing - Capital Fund Program 14.872 3,219,311
Family Self Sufficiency Program 14.896 124,512
Subtotal federal expenditures, Dept of HUD 194,911 184,825,418
Total expenditures of federal awards $ 194,911 $184,825,418
The accompanying Independent Auditors’ Report and notes are an integral part of this schedule.
72
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2021
1.BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal award activity of
the Housing Authority of the County of Contra Costa, California, under programs of the federal
government for the year ended March 31, 2021. The information in this schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Because the Schedule presents only a select portion of the operations of the Authority it
is not intended to and does not present the financial position, changes in net position, or cash flows of
the Authority.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures on the schedule are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
Housing Voucher Cluster - the Housing Voucher Cluster includes the Housing Choice Voucher and
Mainstream Voucher Programs. Expenditures reported consist of (1) expenditures for housing
assistance payments (HAP) incurred, omitting HAP paid on port-in vouchers, during the current fiscal
year; and (2) the full amount of administrative fee revenue received during the current fiscal year,
regardless of expenditure.
Excess HAP funding is reported as restricted net position as required by HUD (See Note 10.B.)
Continuum of Care Program - expenditures reported agree with the HUD grants earned for the
current fiscal year.
Public and Indian Housing Program - expenditures reported consist only of the operating subsidy
amount received from HUD for the current fiscal year.
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 - expenditures reported agree with the HUD grants earned for the
current fiscal year.
73
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2021
(Continued)
3.CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITIES ACT (CARES ACT)
The Authority received funding under the CARES Act as noted in the Schedule of Expenditures of
Federal Awards. Due to the likely one-time appropriation of the supplemental funds provided under
the CARES Act, CFDA numbers were not issued by the OMB. The funding expended during the
current fiscal year was reported using a separate line, but using the same CFDA number as the program
to which the CARES Act funding was associated. All funds received were expended during the current
fiscal year.
4.INDIRECT COST RATE
The Authority has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform
Guidance.
74
Submission Type: 03/31/2021
Public Housing
(Including Capital
Fund)
Public Housing
CARES Act
Funding
Community
Development
Block Grants
Mainstream
CARES Act
Funding
Component Unit -
Discretely
Presented - De
Anza
Component Unit -
Blended - Casa
Del Rio
PIH Family Self-
Sufficiency
Program
CFDA number:14.870/14.872 14.PHC 14.218 14.MSC 14.896
$243,143 $136,254 $45,967 $682,598 $642
$1,768,683 $765,095
$19,871 $7,766
$243,143 $0 $136,254 $0 $1,834,521 $1,455,459 $642
$124,086 $4,126
$29,921
$299,770 $38,844 $6,533
-$120,111 -$25,448 -$3,964
$0 $0 $0 $0 $0 $0 $0
$7,356 $8,793
$311,101 $0 $0 $0 $52,110 $2,569 $4,126
$2,340,555
$143,337 $30,733 $22,439
$3,038,136 $0 $136,254 $0 $1,917,364 $1,480,467 $4,768
$1,840,726 $1,150,712 $475,797
$92,724,356 $29,741,813 $6,621,317
$1,755,085 $555,752 $178,405
-$90,133,591 -$16,504,763 -$4,726,261
$1,360,089
$4,028,709
$7,546,665 $0 $0 $0 $18,972,223 $2,549,258 $0
$322,436 $185,000
$1,310,395 $126,625 $6,800
$8,857,060 $0 $449,061 $0 $18,972,223 $2,741,058 $0
$303,308
$12,198,504 $0 $585,315 $0 $20,889,587 $4,221,525 $4,768
114 Cash - Tenant Security Deposits
115 Cash - Restricted for Payment of Current Liabilities
112 Cash - Restricted - Modernization and Development
113 Cash - Other Restricted
111 Cash - Unrestricted
Housing Authority of the County Contra Costa (CA011)
Martinez, CA
Entity Wide Balance Sheet Summary
Audited/Single Audit Fiscal Year End:
124 Accounts Receivable - Other Government
125 Accounts Receivable - Miscellaneous
121 Accounts Receivable - PHA Projects
122 Accounts Receivable - HUD Other Projects
100 Total Cash
128 Fraud Recovery
128.1 Allowance for Doubtful Accounts - Fraud
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
135 Investments - Restricted for Payment of Current Liability
131 Investments - Unrestricted
129 Accrued Interest Receivable
120 Total Receivables, Net of Allowances for Doubtful Accounts
145 Assets Held for Sale
150 Total Current Assets
144 Inter Program Due From
142 Prepaid Expenses and Other Assets
164 Furniture, Equipment & Machinery - Administration
165 Leasehold Improvements
162 Buildings
163 Furniture, Equipment & Machinery - Dwellings
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
176 Investments in Joint Ventures
172 Notes, Loans, & Mortgages Receivable - Non Current - Past Due
173 Grants Receivable - Non Current
290 Total Assets and Deferred Outflow of Resources
200 Deferred Outflow of Resources
75
State/Local Continuum of
Care Program
Rental
Rehabilitation
Program
Mainstream
Vouchers
Housing Choice
Vouchers
HCV CARES
Act Funding
Central Office
Cost Center
CARES Act
Funding
Fiduciary Central Office
Cost Center Subtotal Eliminations Total
14.267 14.879 14.871 14.HCC 14.CCC
$136,690 $68,381 $82,221 $44,220 $9,305,365 $4,996 $10,750,477 $10,750,477
$270,717 $2,134,262 $926,752 $5,865,509 $5,865,509
$27,637 $27,637
$136,690 $68,381 $82,221 $314,937 $11,439,627 $0 $0 $926,752 $4,996 $16,643,623 $0 $16,643,623
$914,598 $914,598 $914,598
$168,743 $296,955 $296,955
$177,286 $207,207 $207,207
$345,147 $345,147
-$149,523 -$149,523
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$983 $983 $983
$3,069 $2,295 $21,513 $21,513
$181,338 $168,743 $0 $0 $914,598 $0 $0 $0 $2,295 $1,636,880 $0 $1,636,880
$547,791 $107,442 $59,479 $3,055,267 $3,055,267
$4,659 $5,441 $907 $157,406 $42,764 $407,686 $407,686
$1,405,826 $1,084,041 $2,489,867 -$2,489,867 $0
$2,276,304 $242,565 $189,663 $315,844 $12,511,631 $0 $0 $926,752 $1,193,575 $24,233,323 -$2,489,867 $21,743,456
$330,791 $3,798,026 $3,798,026
$74,415 $4,027,930 $133,189,831 $133,189,831
$7,032 $3,937 $1,216,949 $198,458 $3,915,618 $3,915,618
-$79,599 -$3,937 -$2,873,435 -$186,893 -$114,508,479 -$114,508,479
$1,360,089 $1,360,089
$4,028,709 $4,028,709
$1,848 $0 $0 $0 $2,702,235 $0 $0 $0 $11,565 $31,783,794 $0 $31,783,794
$1,000,000 $54,030 $0 $1,561,466 -$185,000 $1,376,466
$1,683,717 $22,255 $0 $3,149,792 -$631,382 $2,518,410
$2,685,565 $0 $76,285 $0 $2,702,235 $0 $0 $0 $11,565 $36,495,052 -$816,382 $35,678,670
$169 $423,588 $232,660 $959,725 $959,725
$4,962,038 $242,565 $265,948 $315,844 $15,637,454 $0 $0 $926,752 $1,437,800 $61,688,100 -$3,306,249 $58,381,851
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
76
Submission Type: 03/31/2021
Public Housing
(Including Capital
Fund)
Public Housing
CARES Act
Funding
Community
Development
Block Grants
Mainstream
CARES Act
Funding
Component Unit -
Discretely
Presented - De
Anza
Component Unit -
Blended - Casa
Del Rio
PIH Family Self-
Sufficiency
Program
CFDA number:14.870/14.872 14.PHC 14.218 14.MSC 14.896
Housing Authority of the County Contra Costa (CA011)
Martinez, CA
Entity Wide Balance Sheet Summary
Audited/Single Audit Fiscal Year End:
$494,153 $51,116 $3,218
$154,048 $4,768
$43,269 $542,815
$73,900 $136,253
$344,402 $168,017 $46,080
$29,484 $11,678 $677
$301,025 $39,365
$29,808
$286,361
$997,256
$2,379,604 $0 $136,253 $0 $604,913 $632,155 $4,768
$6,997,573 $2,752,604
$1,000,000
$2,444,845 $1,966,854
$46,633
$449,062
$3,198,997
$3,245,630 $0 $449,062 $0 $10,442,418 $4,719,458 $0
$5,625,234 $0 $585,315 $0 $11,047,331 $5,351,613 $4,768
$907,767
$7,546,665 $0 $0 $0 $11,630,356 -$1,578,184 $0
$0 $0 $0 $0 $1,768,683 $765,095 $0
-$1,881,162 $0 $0 $0 -$3,556,783 -$316,999 $0
$5,665,503 $0 $0 $0 $9,842,256 -$1,130,088 $0
$12,198,504 $0 $585,315 $0 $20,889,587 $4,221,525 $4,768
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
508.4 Net Investment in Capital Assets
400 Deferred Inflow of Resources
300 Total Liabilities
357 Accrued Pension and OPEB Liabilities
350 Total Non-Current Liabilities
355 Loan Liability - Non Current
356 FASB 5 Liabilities
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
310 Total Current Liabilities
347 Inter Program - Due To
348 Loan Liability - Current
345 Other Current Liabilities
346 Accrued Liabilities - Other
343 Current Portion of Long-term Debt - Capital Projects
344 Current Portion of Long-term Debt - Operating Borrowings
341 Tenant Security Deposits
342 Unearned Revenue
332 Account Payable - PHA Projects
333 Accounts Payable - Other Government
325 Accrued Interest Payable
331 Accounts Payable - HUD PHA Programs
322 Accrued Compensated Absences - Current Portion
324 Accrued Contingency Liability
313 Accounts Payable >90 Days Past Due
321 Accrued Wage/Payroll Taxes Payable
311 Bank Overdraft
312 Accounts Payable <= 90 Days
77
State/Local Continuum of
Care Program
Rental
Rehabilitation
Program
Mainstream
Vouchers
Housing Choice
Vouchers
HCV CARES
Act Funding
Central Office
Cost Center
CARES Act
Funding
Fiduciary Central Office
Cost Center Subtotal Eliminations Total
14.267 14.879 14.871 14.HCC 14.CCC
$8,182 $62,265 $734 $331,034 $36,306 $987,008 $987,008
$462,323 $462,323 $462,323
$153 $3,178 $122,605 $123,660 $408,412 $408,412
$586,084 $586,084
$49,488 $259,641 $259,641
$558,499 $558,499
$189,663 $350,982 $0 $582,484 $582,484
$240,762 $581,152 $581,152
$29,808 $29,808
$21,360 $2,576 $310,297 $310,297
$124,517 $1,368,094 $2,489,867 -$2,489,867 $0
$470,658 $239,448 $189,663 $734 $2,434,837 $0 $0 $0 $162,542 $7,255,575 -$2,489,867 $4,765,708
$991,981 $10,742,158 $10,742,158
$185,000 $1,185,000 -$185,000 $1,000,000
$656,673 $5,068,372 -$631,382 $4,436,990
$3,117 $85,695 $81,348 $216,793 $216,793
$76,285 $525,347 $525,347
$1,783 $4,467,615 $2,453,882 $10,122,277 $10,122,277
$186,783 $3,117 $76,285 $0 $6,201,964 $0 $0 $0 $2,535,230 $27,859,947 -$816,382 $27,043,565
$657,441 $242,565 $265,948 $734 $8,636,801 $0 $0 $0 $2,697,772 $35,115,522 -$3,306,249 $31,809,273
$506 $1,267,757 $696,328 $2,872,358 $2,872,358
$1,848 $0 $0 $0 $1,469,492 $0 $0 $11,565 $19,081,742 $19,081,742
$0 $0 $0 $270,717 $1,477,589 $0 $0 $926,752 $5,208,836 $5,208,836
$4,302,243 $0 $0 $44,393 $2,785,815 $0 $0 $0 -$1,967,865 -$590,358 -$590,358
$4,304,091 $0 $0 $315,110 $5,732,896 $0 $0 $926,752 -$1,956,300 $23,700,220 $0 $23,700,220
$4,962,038 $242,565 $265,948 $315,844 $15,637,454 $0 $0 $926,752 $1,437,800 $61,688,100 -$3,306,249 $58,381,851
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
78
Submission Type:
Public Housing
(Including Capital
Fund)
Public Housing
CARES Act
Funding
Community
Development
Block Grants
Mainstream
CARES Act
Funding
Component Unit -
Discretely
Presented
Component Unit -
Blended
PIH Family Self-
Sufficiency
Program
CFDA number 14.870/14.872 14.PHC 14.218 14.MSC 14.896
$4,264,238 $2,230,620 $1,441,285
$28,851 $7,373
$4,293,089 $0 $0 $0 $2,230,620 $1,448,658 $0
$6,706,173 $808,551 $16,729 $124,512
$1,775,002
$58,764 $56,726 $13
$249,374 $96,103 $2,081
$11,626
$13,082,402 $808,551 $0 $16,729 $2,383,449 $1,462,378 $124,512
$130,990 $682,505 $16,559 $183,380 $78,799
$14,150 $18,650 $19,614
$1,157,544 $0
$83,307
$8,589
$493,741 $61,874 $48,683 $1,265
$442,981 $270,361 $73,213
$233,086 $3,215 $209
$4,665 $527
$19,490 $30,240 $104,988
$2,579,954 $744,379 $0 $16,559 $563,645 $278,088 $0
$74,720
-$2,651 $70,819
$25,146
-$241 $43,861
$45,779 $64,172 $170
$68,033 $64,172 $0 $170 $0 $0 $114,680
$724,429 $161,071 $15,530
$818,636 $19,180 $41,066
$132,312 $3,866 $1,586
$622,794 $104,091 $50,165
$2,298,171 $0 $0 $0 $288,208 $108,347 $0
$1,130,435 $145,404 $75,200
$622,362 $77,025 $39,573
$1,717,251 $233,302 $126,086
$313,016 $23,390
$3,783,064 $0 $0 $0 $479,121 $240,859 $0
70300 Net Tenant Rental Revenue
Housing Authority of the County Contra Costa (CA011)
Martinez, CA
Entity Wide Revenue and Expense Summary
Audited/Single Audit Fiscal Year End: 3/31/2021
70610 Capital Grants
70710 Management Fee
70600 HUD PHA Operating Grants
70400 Tenant Revenue - Other
70500 Total Tenant Revenue
70700 Total Fee Revenue
70740 Front Line Service Fee
70720 Asset Management Fee
70730 Book Keeping Fee
71400 Fraud Recovery
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
71600 Gain or Loss on Sale of Capital Assets
91500 Employee Benefit contributions - Administrative
91600 Office Expenses
91310 Book-keeping Fee
91400 Advertising and Marketing
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
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
79
State/Local Continuum of
Care Program
Rental
Rehabilitation
Program
Mainstream
Vouchers
Housing Choice
Vouchers
HCV CARES Act
Funding
Central Office
Cost Center
CARES Act
Funding
Fiduciary Central Office
Cost Center Subtotal Eliminations Total
14.267 14.879 14.871 14.HCC 14.CCC
$7,936,143 -$1,102,298 $6,833,845
$36,224 $36,224
$0 $0 $0 $0 $0 $0 $0 $0 $0 $7,972,367 -$1,102,298 $6,870,069
$6,708,386 $1,253,318 $161,266,069 $7,690,262 $184,574,000 $184,574,000
$1,775,002 $1,775,002
$3,221,498 $3,221,498 -$3,221,498 $0
$74,720 $74,720 -$74,720 $0
$857,959 $857,959 -$857,959 $0
$4,154,177 $4,154,177 -$4,154,177 $0
$60,874 $902 $1,878 -$1,260 $177,897 $177,897
$197 $197 $197
$23,308 $23,308 $23,308
$65,444 $16,251,386 $16,678 $303,765 $16,984,831 -$386,144 $16,598,687
$270,867 $282,493 $282,493
$126,318 $6,708,386 $1,099 $1,253,318 $177,542,641 $7,690,262 $16,678 $270,867 $4,456,682 $215,944,272 -$5,642,619 $210,301,653
$85,582 $589 $2,217 $300,823 $2,533,493 $1,931,799 $5,946,736 $5,946,736
$140 $21,059 $4,152 $77,765 $77,765
$62,438 $13,941 $1,987,575 $16,678 $3,238,176 -$3,238,176 $0
$4,677 $769,975 $857,959 -$857,959 $0
$8,589 $8,589
$418 $61,880 $429 $10,015 -$332,660 $1,044,818 $1,065,072 $2,455,535 $2,455,535
$632 $8,160 $6,216 $508,027 $405,287 $495,174 $2,210,051 -$149,916 $2,060,135
$78 $527 $79,560 $20,517 $337,192 $337,192
$4 $535 $2,344 $8,075 $8,075
$142 $135,940 $4,610 $295,410 -$219,550 $75,860
$1,050 $218,138 $1,018 $37,879 $3,470,834 $4,000,276 $0 $4,610 $3,519,058 $15,435,488 -$4,465,601 $10,969,887
$74,720 -$74,720 $0
$166 $25,061 $2,651 $96,046 $96,046
$25,146 $25,146
$77 -$16,810 $241 $27,128 $27,128
$194,911 $25,848 $16,678 $347,558 $347,558
$0 $194,911 $0 $243 $8,251 $25,848 $16,678 $0 $2,892 $495,878 $0 $495,878
$61 $9,225 $910,316 $910,316
$217 $32,706 $33,036 $944,841 $944,841
$26 $3,999 $3,561 $145,350 $145,350
$14 $2,083 $779,147 $779,147
$0 $0 $0 $318 $48,013 $0 $0 $0 $36,597 $2,779,654 $0 $2,779,654
$1,351,039 $1,351,039
$14 $2,108 $2,685 $743,767 $743,767
-$2,549 $823 $128,892 $32,442 $2,236,247 $2,236,247
-$1,421 $334,985 $334,985
-$3,970 $0 $0 $837 $131,000 $0 $0 $0 $35,127 $4,666,038 $0 $4,666,038
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
80
Submission Type:
Public Housing
(Including Capital
Fund)
Public Housing
CARES Act
Funding
Community
Development
Block Grants
Mainstream
CARES Act
Funding
Component Unit -
Discretely
Presented
Component Unit -
Blended
PIH Family Self-
Sufficiency
Program
CFDA number 14.870/14.872 14.PHC 14.218 14.MSC 14.896
Housing Authority of the County Contra Costa (CA011)
Martinez, CA
Entity Wide Revenue and Expense Summary
Audited/Single Audit Fiscal Year End: 3/31/2021
$775,622 $66,576
$70,006 $3,704 $8,765
$845,628 $0 $0 $0 $70,280 $8,765 $0
$369,483 $76,865 $53,417
$2,194
$116,485 $21,527 $1,453
$488,162 $0 $0 $0 $98,392 $53,417 $1,453
$5,126 $72,000
$195,999 $8,379
$99,687 $7,552 $2,387
$140,135 $34,992 $1,265
$440,947 $0 $0 $0 $114,544 $3,652 $8,379
$504,735 $94,197
$30,000
$0 $0 $0 $0 $534,735 $94,197 $0
$10,578,679 $808,551 $0 $16,729 $2,148,925 $787,325 $124,512
$2,503,723 $0 $0 $0 $234,524 $675,053 $0
-$10,081
$66,242
$1,068,483 $732,766 $175,789
$11,703,323 $808,551 $0 $16,729 $2,881,691 $963,114 $124,512
$1,153,730
-$1,153,730 -$234,216
$455,705
-$455,705
$0 $0 $0 $0 $0 $0 -$234,216
$1,379,079 $0 $0 $0 -$498,242 $499,264 -$234,216
$0 $0 $0 $0 $301,025 $39,365 $0
$4,286,424 $0 $0 $0 $10,340,498 -$1,629,352 $0
$0 $234,216
12244 2160 960
11006 2113 928
-$381,196
$0
$1,685,448
$0
$89,554
$0
$0
$0
$0
96110 Property Insurance
95000 Total Protective Services
95200 Protective Services - Other Contract Costs
95300 Protective Services - Other
96200 Other General Expenses
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
96700 Total Interest Expense and Amortization Cost
96710 Interest of Mortgage (or Bonds) Payable
96720 Interest on Notes Payable (Short and Long Term)
96000 Total Other General Expenses
97100 Extraordinary Maintenance
97000 Excess of Operating Revenue over Operating Expenses
96900 Total Operating Expenses
97350 HAP Portability-In
97400 Depreciation Expense
97200 Casualty Losses - Non-capitalized
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 and Correction of Errors
11020 Required Annual Debt Principal Payments
11030 Beginning Equity
10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses
11170 Administrative Fee Equity
11610 Land Purchases
11620 Building Purchases
11210 Number of Unit Months Leased
11270 Excess Cash
11180 Housing Assistance Payments Equity
11190 Unit Months Available
13510 CFFP Debt Service Payments
13901 Replacement Housing Factor Funds
11650 Leasehold Improvements Purchases
11660 Infrastructure Purchases
11630 Furniture & Equipment - Dwelling Purchases
11640 Furniture & Equipment - Administrative Purchases
81
State/Local Continuum of
Care Program
Rental
Rehabilitation
Program
Mainstream
Vouchers
Housing Choice
Vouchers
HCV CARES Act
Funding
Central Office
Cost Center
CARES Act
Funding
Fiduciary Central Office
Cost Center Subtotal Eliminations Total
14.267 14.879 14.871 14.HCC 14.CCC
$842,198 $842,198
$130 $19,671 $7,642 $109,918 $109,918
$0 $0 $0 $130 $19,671 $0 $0 $0 $7,642 $952,116 $0 $952,116
$189 $28,582 $17,490 $546,026 $546,026
$58 $141,112 $143,364 $143,364
$1,284 $6 $213 $32,128 $19,283 $192,379 $192,379
$0 $1,284 $6 $402 $60,768 $0 $0 $0 $177,885 $881,769 $0 $881,769
$394 $921 $112,410 $190,851 $190,851
$5,349 $75 $1,295 $195,470 $236,752 $643,319 $643,319
$109,626 $109,626
$176,392 $176,392
$394 $5,349 $75 $2,216 $307,880 $0 $0 $0 $236,752 $1,120,188 $0 $1,120,188
$440 $66,376 $665,748 $665,748
$30,000 $30,000
$0 $0 $0 $440 $66,376 $0 $0 $0 $0 $695,748 $0 $695,748
-$2,526 $419,682 $1,099 $42,465 $4,112,793 $4,026,124 $16,678 $4,610 $4,015,953 $27,101,599 -$4,540,321 $22,561,278
$128,844 $6,288,704 $0 $1,210,853 $173,429,848 $3,664,138 $0 $266,257 $440,729 $188,842,673 -$1,102,298 $187,740,375
-$10,081 -$10,081
$6,288,704 $1,114,888 $149,873,230 $3,664,138 $161,007,202 -$1,102,298 $159,904,904
$15,679,047 $15,679,047 $15,679,047
$1,671 $287,732 $6,058 $2,272,499 $2,272,499
-$855 $6,708,386 $1,099 $1,157,353 $169,952,802 $7,690,262 $16,678 $4,610 $4,022,011 $206,050,266 -$5,642,619 $200,407,647
$27,361 $261,577 $1,442,668 -$1,442,668 $0
-$27,361 -$27,361 -$1,442,668 $1,442,668 $0
$455,705 -$455,705 $0
-$455,705 $455,705 $0
$0 $0 $0 $0 $261,577 $0 $0 $0 -$27,361 $0 $0 $0
$127,173 $0 $0 $95,965 $7,851,416 $0 $0 $266,257 $407,310 $9,894,006 $0 $9,894,006
$0 $0 $0 $0 $240,762 $0 $0 $0 $0 $581,152 $581,152
$2,606,811 $0 $0 $219,145 -$314,197 $0 $0 $0 -$2,363,610 $13,145,719 $13,145,719
$1,570,107 -$1,804,323 $660,495 $660,495 $660,495
$4,255,307 $4,255,307 $4,255,307
$1,477,589 $1,477,589 $1,477,589
3671 625 102666 122326 122326
3671 625 102666 121009 121009
-$381,196 -$381,196
$0 $0 $0
$0 $1,685,448 $1,685,448
$0 $0 $0
$0 $89,554 $89,554
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
The accompanying Independent Auditors' Report and Notes are an integral part of this schedule.
82
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF COMPLETED CAPITAL FUND PROGRAM PROJECT
ANNUAL CONTRIBUTIONS CONTRACT SF-182
MARCH 31, 2021
CA39P01150119
Funds approved $ 2,919,781
Funds expended 2,919,781
Excess of funds approved $ -
Funds advanced $ 2,919,781
Funds expended 2,919,781
Excess of funds advanced $ -
The accompanying Independent Auditors' Report and notes are an integral part of this statement.
83
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF RELEVANT STATISTICS
FOR THE YEAR ENDED MARCH 31, 2021
Fiscal year ended March 31 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Number of employees 87 83 81 81 87 83 83 79 99 89
Number of households served:
Public Housing 919 1,006 1,144 1,144 1,168 1,168 1,168 1,168 1,168 1,168
Housing Choice Voucher 8,508 8,268 6,268 6,268 6,236 6,371 6,297 6,287 6,359 6,400
Mainstream Voucher 55 0 0 0 0 0 0 0 0 0
Continuum of Care 302 312 317 317 294 294 241 241 241 241
Section 8 Moderate Rehab 0 0 0 0 25 25 25 26 26 23
Section 8 Voucher 0 0 0 0 0 0 0 0 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 10,046 9,848 7,991 7,991 7,985 8,120 7,993 7,984 8,061 8,099
Capital Asset Information:
Total managed units 1,225 1,268 1,406 1,430 1,430 1,430 1,430 1,430 1,430 1,430
Total buildings 295 397 636 636 636 636 636 636 636 636
By project: Units Bldg Last change Units lost Bldg lost
11001 Martinez 52 28
11002 Bay Point - 1 2002 83 43
11003 Antioch 36 19
11004 Brentwood 44 24
11005 Pittsburgh 176 57
11006 Richmond 0 0 2020 54 30
11008 Oakley 30 16
11009a Richmond 0 0 2020 84 44
11009b Richmond 0 0 2021 54 28
11010 Rodeo 244 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 963 272
Component units:
Casa Del Rio Senior Hsg 82 1
DeAnza Gardens 180 22
The accompanying Independent Auditors' Report and notes are an integral part of this schedule.
84
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, 2021,
and the related notes to the financial statements, which collectively comprise the Housing Authority of the
County of Contra Costa, California’s basic financial statements, and have issued our report thereon dated
December 15, 2021. 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, California’s 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, California’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Housing Authority of the County of
Contra Costa, California’s 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 Authority’s
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.
85
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
FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
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, California’s compliance with the
types of compliance requirements described in the OMB Compliance Supplement that could have a direct
and material effect on each of the Housing Authority of the County of Contra Costa, California’s major
federal programs for the year ended March 31, 2021. 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 federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor’s 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
the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those
standards and the Uniform Guidance 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.
87
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATUS OF PRIOR AUDIT FINDINGS
MARCH 31, 2021
The audit report for the fiscal year ended March 31, 2020, contained no audit findings.
89
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
MARCH 31, 2021
Section I - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: unmodified
Is a “going concern” emphasis-of-matter paragraph included in the audit report? no
Is a significant deficiency in internal control disclosed? no
Is a material weakness in internal control disclosed? no
Is a material noncompliance disclosed? no
Federal Awards
Does the auditor’s report include a statements that the auditee’s financial
statements include departments, agencies, or other organizational units
expending $750,000 or more in Federal awards that have separate Uniform
Guidance audits which are not included in this audit? no
Dollar threshold used to distinguish between Type A and Type B programs $ 3,000,000
Did the auditee qualified as low-risk auditee? yes
Identification of major programs:
Continuum of Care Program 14.267
Public and Indian Housing 14.850
Housing Voucher Cluster:
Housing Choice Voucher Program 14.871
Mainstream Voucher Program 14.879
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 in accordance with Uniform Guidance part 200.516? 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
90
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
December 15, 2021
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, 2021. 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 the following information related to our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards, Government Auditing Standards and
the Uniform Guidance,
As stated in our engagement letter dated November 18, 2020, 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 the Uniform Guidance.
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 provisions is not an
objective of our audit. Also, in accordance with the Uniform Guidance, 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) 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.
Housing Authority of the County of Contra Costa
December 15, 2021
Page 2
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
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 because the limited procedures do not provide
us with sufficient audit evidence to express an opinion or provide any assurance.
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 States 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.
Housing Authority of the County of Contra Costa
December 15, 2021
Page 3
Professional standards also require that we communicate to you the following information related to our
audit.
Significant Audit Disclosures
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. As described
in Note 1.U. to the basic financial statements, the Authority changed the accounting policies related to the
reporting of the trust account with the Public Agency Retirement Services (PARS) to administer the funding
of the projected benefits of the Other Postemployment Benefit (OPEB) plan by adopting the Statement of
Governmental Accounting Standards No. 84, Fiduciary Activities, in the current fiscal year. GASB No. 84
requires that the activity of the trust account held with PARS, for the benefit of the Authority’s employees,
be reported in the Authority’s financial statements. Accordingly, the cumulative effect of the accounting
change as of the beginning of the year is reported in the Statement of Changes in Fiduciary Net Position.
This statement, as well as the Statement of Fiduciary Net Position are new for this 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.
•Net OPEB liability and the related Deferred Inflows/Outflows of Resources: Management’s estimate
is derived from actuarial valuations obtained from experts. We agreed the net OPEB liability, the related
deferred inflows/outflows of resources, and the other information contained in the OPEB footnote to the
amounts reported in the actuarial report dated May 28, 2021, for the actuarial valuation date of June 30,
2020 and measurement date of June 30, 2020, by Nicolay Consulting Group.
•Net Pension Liability and the related Deferred Inflows/Outflows of Resources: Management’s estimate
is derived from actuarial valuations obtained from experts. We agreed these balances and other
Housing Authority of the County of Contra Costa
December 15, 2021
Page 4
information contained in the pension plan (CCCERA) footnote to the various documentation supplied
by CCCERA. This documentation included (1) CCCERA GASB 68 Actuarial Valuation Based on
December 31, 2020 Measurement Date for Employer Reporting as of June 30, 2021, and (2) CCCERA’s
CAFR as of December 31, 2020.
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 pension plan and other postemployment benefits in Notes 11 and 12 to the basic
financial statements. These disclosures discuss the Authority’s obligations as they relate to these
postemployment benefits. The recent requirements to recognize these liabilities fully (GASB 68 and
GASB 75) has had a significant impact on the Authority’s financial statements. These notes include
descriptions of the plans and the Authority’s funding policies; as well as a description of the actual
contributions made and the components of expense for the year.
(3) The disclosure of the subsequent events in Note 18 to the basic financial statements. This disclosure
discusses the fact that the Authority has agreed to a change in the way employee health care subsidy will
be calculated effective January 1, 2022. Management anticipates that this change will have an estimated
$2.9 million effect on the Net OPEB Liability. The increased liability is expected to be recognized
March 31, 2023.
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 is 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.
RECOMMENDATIONS
ADOPT Resolution No. 5243 authorizing the Housing Authority to become a limited partner in the DeAnza Gardens, L.P. limited partnership
and to pay a disposition fee of $1,000.
BACKGROUND
DeAnza Gardens is comprised of 180 units constructed in 2004 – 2005 ("Project") and funded by a number of resources including Low Income
Housing Tax Credits ("LIHTC"). DeAnza Garden, L.P., a California limited partnership ("Partnership") was formed for the purpose of owning,
constructing, and operating the Project. DeAnza Housing Corporation was formed as a California nonprofit public benefit corporation to serve
as a general partner in the Partnership along with the Housing Authority of the County of Contra Costa ("HACCC"). BCP/DeAnza Gardens,
LLC, a Delaware limited liability company (“BCP”) and BCCC, Inc., a Massachusetts corporation (“BCC”), are the investor limited partner and
the special limited partner of the Partnership, respectively (collectively, the "Limited Partners"), and contributed the LIHTC equity to, and
received the tax credits from, the Project.
The Project was placed in service in 2005 and 2006. The compliance period for the LIHTC is fifty-five (55) years from the place-in-service
date. The Federal tax credit recapture (“Compliance Period”) period expired on December 31, 2019. During the 24 months after the expiration
of the Compliance Period, HACCC has a Purchase Option (the "Purchase Option") and Right of First Refusal to buy the Project from the
Partnership.
I. PURCHASE OPTION AND RIGHT OF FIRST REFUSAL
The purchase price for the Property pursuant to the Purchase Option shall be the greater of the following amounts, subject to the provisions set
forth below:
(a) Debt and Taxes. An amount sufficient (i) to pay all debts, liabilities and obligations of the Partnership upon its termination and liquidation as
projected to occur immediately following the sale pursuant to the Option, including, but not limited to, fees and debts to Partners of the
Partnership (or their Affiliates), and (ii) to distribute to the Partners cash proceeds equal to the taxes projected by the Auditors to be imposed on
the Partners of the Partnership as a result of the sale pursuant to the Option; or
Action of Board On: 03/08/2022 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
ABSENT:Joanne Segura,
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: March 8, 2022
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.6
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:March 8, 2022
Contra
Costa
County
Subject:Adopt Resolution No. 5243 authorizing the Housing Authority to become a limited partner in the DeAnza Gardens, L.P. limited
partnership
BACKGROUND (CONT'D)
(b) Fair Market Value. The fair market value of the Property, appraised as low-income housing taking into account the effect on the
projected income of the Property as a result of all Use Restrictions to the extent continuation of such use is required under the Use
Restrictions, taking into consideration any repairs, improvements or deferred maintenance deemed necessary by a capital needs assessment
conducted by a third party inspector selected by the Partnership's regular Auditors, who is experienced in determining capital needs for
similar projects in Northern California.
HACCC has determined that the existing mortgage debt plus the long-term outstanding capital needs for the Project exceed the fair market
value of the property and, as such, the Project has nominal value to the existing investor. HACCC has engaged the services of an industry
professional to negotiate a purchase price of the Limited Partners' interests in the Partnership instead of purchasing the Project itself. The
Partnership will continue to own the Project, but the Limited Partners will be replaced. HACCC will replace the Limited Partner’s interests
in the Partnership as the new limited partner and will withdraw as a general partner. DeAnza Housing Corporation will remain as the
general partner. HACCC plans to refinance the mortgage loan on the Project in the near future. At that time, staff anticipates that a new
limited liability corporation will be created as the owner of the property, with HACCC Casa Del Rio, Inc., as its sole member, and the
Limited Partnership will be dissolved. This will ensure that there are minimal tax implications for HACCC under the new management
structure. Although the purchase price increased from $10 to $1,000 since the approval in May 2021, there was flexibility with the amount
of the accrued asset management fee already paid such that no additional funds were required to be paid by the Partnership or HACCC.
On May 6, 2021, the Board of Directors for DeAnza Housing Corporation approved a similar resolution authorizing the replacement of the
Limited Partner interest in the Partnership and removing HACCC from its role as general partner so that it could be placed in the role of
Limited Partner and DeAnza Housing Corporation would remain as the sole general partner in the Partnership.
FISCAL IMPACT
HACCC’s Board of Commissioners authorized staff to the purchase the Limited Partners' interest in the Partnership for a $10 disposition fee
plus any additional distributions or costs required at its May 18, 2021 meeting pursuant to Resolution No. 5234. The Limited Partners
adjusted the final disposition fee for the Limited Partners' interests from a total of $2 to a total of $1,000. HACCC has paid the Limited
Partners $2 plus $13,460.07 in accrued asset management fees for 2021 the Partnership paid to BCP (the "Supplemental Payment") under
the initial documentation. In response to the adjusted final disposition fee, the outstanding balance of $998.00 will be deducted from the
$13,460.07 Supplemental Payment. The change in the disposition fee and asset management fees will be reflected in revised documentation
and no additional funds are needed for the purchase of the Limited Partners’ interest.
CONSEQUENCE OF NEGATIVE ACTION
If the actions to revise the agreed upon disposition fee amount from $10 to $1000 and for it to be from the Housing Authority ("Revised
Disposition Fee"), and the transfer of $998 from the Supplemental Payment already paid to the Limited Partners as the source of the
Revised Disposition Fee are not approved, then the Partnership, the Withdrawing Limited Partners and the Housing Authority may need to
unwind the transaction and the HACCC will lose the rights to purchase the Limited Partnership interests for $1000 and will be forced to
purchase the property under the Purchase Option and Right of First Refusal for a much greater amount.
AGENDA ATTACHMENTS
Purchase Option and Right of First Refusal
Current HACCC Res 5243
DeAnza Res_Executed
Prior HACCC Res 5234_Executed May 2021
MINUTES ATTACHMENTS
Signed Resolution No. 5243
PURCHASE OPTION AND
RIGHT OF FIRST REFUSAL AGREEMENT
This Agreement is made as of June 27, 2003, by and between DEANZA GARDENS,
L.P., a California limited partnership (the "Partnership"), HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA, a public body, corporate and politic ("Grantee"), and
DEANZA HOUSING CORPORATION, a California nonprofit public benefit corporation
("DHC") (DHC and Grantee are hereinafter collectively referred to as the "General Partners"),
and is consented to hereinbelow by BCP/DEANZA GARDENS, LLC, a Delaware limited
liability company ("Investment Limited Partner"), and by BCCC, INC., a Massachusetts
corporation ("BCCC"), the limited partners of the Partnership (collectively, the "Consenting
Limited Partners").
WHEREAS, the General Partners and the Consenting Limited Partners, concurrently with
the execution and delivery of this Agreement, are entering into that certain Second Amended and
Restated Agreement of Limited Partnership dated as of the date hereof (the "Partnership
Agreement") continuing the Partnership by amending and restating a prior partnership
agreement; and
WHEREAS, Grantee has been instrumental in the development of the Property, as
described in the Partnership Agreement, and will continue to provide services to the Partnership
in connection with the continuation of the Partnership for the further development of the
Apartment Complex; and
WHEREAS, the Apartment Complex is or will be subject to a governmental agency
regulatory agreement (the "Regulatory Agreement") restricting its use to low-income housing
(such use restrictions under the Regulatory Agreement being referred to collectively herein as the
"Use Restrictions"); and
WHEREAS, the General Partners desire to provide for the continuation of the Apartment
Complex as low-income housing upon termination of the Partnership by Grantee purchasing the
Apartment Complex at the applicable price determined under this Agreement and operating the
Apartment Complex in accordance with the Use Restrictions; and
WHEREAS, as a condition precedent to the formation or continuation of the Partnership
pursuant to the Partnership Agreement, the General Partners have negotiated and required that
the Partnership shall execute and deliver this Agreement in order to provide for such low-income
housing, and the Consenting Limited Partners have consented to this Agreement in order to
induce the General Partners to execute and deliver the Partnership Agreement;
NOW, THEREFORE, in consideration of the execution and delivery of the Partnership
Agreement and the payment by the Grantee to the Partnership of Ten Dollars ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows:
1. Grant of Option. The Partnership hereby grants to Grantee an option (the
"Option") to purchase the real estate, fixtures, and personal property comprising the Apartment
BOS 1#1335722 v5
Complex or associated with the physical operation thereof, located at the Apartment Complex
and owned by the Partnership at the time of purchase (the "Property"), for a period of twenty-
four (24) months (the "Option Period") following the close of the fifteen (15) year compliance
period for the low-income housing tax credit for the Apartment Complex (the "Compliance
Period") as determined under Section 42(i)(l) of the Internal Revenue Code of 1986, as amended
(the "Code"), on the terms and conditions set forth in this Agreement and subject to the
conditions precedent to the exercise of the Option specified herein. The Apartment Complex
real estate is legally described in Exhibit A attached hereto and made a part hereof.
2. Grant of Refusal Right. In the event that the Partnership receives a bona fide
offer to purchase the Property (other than under the circumstances described in paragraph 1),
which offer the Partnership intends to accept, Grantee shall have a right of first refusal to
purchase the Property (the "Refusal Right") for a period of twenty-four (24) months (the
"Refusal Right Period") following the close of the Compliance Period, on the terms and
conditions set forth in this Agreement and subject to the conditions precedent to exercise of the
Refusal Right specified herein. In addition to all other applicable conditions set forth in this
Agreement, (a) the foregoing grant of the Refusal Right shall be effective only if Grantee is
currently and remains at all times hereafter, until (i) the Refusal Right has been exercised and the
resulting purchase and sale has been closed, or (ii) the Refusal Right has been assigned to a
Permitted Assignee described in Paragraph 11 hereof, whichever first occurs, a qualified
recipient of the Refusal Right under Section 42(i)(7)(A) of the Code, and (b) any assignment of
the Refusal Right permitted under this Agreement and the Refusal Right so assigned shall be
effective only if the assignee is at the time of the assignment and remains at all times thereafter,
until the Refusal Right has been exercised and the resulting purchase and sale has been closed, a
Permitted Assignee described in Paragraph 11 hereof meeting the requirements of Section
42(i)(7)(a) of the code. Prior to accepting any such bona fide offer to purchase the Property, the
Partnership shall notify Grantee, the General Partners, and the Consenting Limited Partners of
such offer and deliver to each of them a copy thereof. The Partnership shall not accept any such
offer unless and until the Refusal Right has expired without exercise by Grantee under Paragraph
6 hereof.
3. Purchase Price Under Option. The purchase price for the Property pursuant to the
Option (the "Option Price") shall be the greater of the following amounts, subject to the
provision set forth hereinbelow:
(a) Debt and Taxes. An amount sufficient (i) to pay all debts, liabilities and
obligations of the Partnership upon its termination and liquidation as projected to occur
immediately following the sale pursuant to the Option, including, but not limited to, fees and
debts to Partners of the Partnership (or their Affiliates), and (ii) to distribute to the Partners
cash proceeds equal to the taxes projected by the Auditors to be imposed on the Partners of
the Partnership as a result of the sale pursuant to the Option; or
(b) Fair Market Value. The fair market value of the Property, appraised as
low-income housing taking into account the effect on the projected income of the Property as
a result of all Use Restrictions to the extent continuation of such use is required under the
Use Restrictions, taking into consideration any repairs, improvements or deferred
maintenance deemed necessary by a capital needs assessment conducted by a third party
BOSl #1335722 v5
inspector selected by the Partnership's regular Auditors, who is experienced in determining
capital needs for similar projects in Northern California; provided, however, unless such
procedure is determined at the time the Option is exercised to be unreasonable, the fair
market value so determined shall not be greater than the capitalized value of the future
income stream, taking into account the effect on the projected income of the Property of all
Use Restrictions to the extent continuation of such use is required under the Use Restrictions
using a capitalization rate of two percent (2%) over the Fannie Mae thirty (30) day-forward
commitment rate for thirty (30) year, fully amortized multifamily loans. Any such appraisal
is to be made by a licensed appraiser selected by the Partnership's regular Auditors, who is a
Member of the Appraiser Institute and who has experience in low-income housing in the
geographic area in which such Property is located and is to be paid for by the Partnership;
provided, however, that if prior to exercise of the Option the Internal Revenue Service (the
"Service") has issued a revenue ruling or provided a private letter ruling to the Partnership,
the applicability of which ruling shall be determined in the judgment of tax counsel to the
Consenting Limited Partners, or tax counsel approved by the Consenting Limited Partners
has issued an opinion letter, concluding that property of the nature and use of the Property
may be sold under circumstances described in this Agreement at the price determined under
Section 42(i)(7)(B) of the Code without limiting tax credits or deductions that would
otherwise be available to the Consenting Limited Partners, then the Option Price shall be
such price.
4. Purchase Price Under Refusal. The purchase price for the Property pursuant to
the Refusal Right shall be lesser of (a) the purchase price set forth in the bona fide offer to
purchase the Property or (b) the minimum purchase price set forth in Section 42(i)(7)(B) of the
Code, which generally is equal to the sum of (x) an amount sufficient to pay all debts and
liabilities of the Partnership upon its termination and liquidation as projected to occur
immediately following the sale pursuant to the Refusal Right, and (y) an amount sufficient to
distribute to the Partners cash proceeds equal to the taxes projected to be imposed on the Partners
of the Partnership as a result of the sale pursuant to the Refusal Right.
5. Conditions Precedent. Notwithstanding anything in this Agreement to the
contrary, the Option and the Refusal Right granted hereunder shall be contingent on the
following:
(a) General Partners. Grantee shall have remained in good standing as a
General Partner of the Partnership without the occurrence of any event described in
Section 4.5(a)(iii) of the Partnership Agreement after giving effect to the curative provisions
applicable thereto; and
(b) Regulatory Agreement. Either (i) the Regulatory Agreement shall have
been entered into and remained in full force and effect, or (ii) if the Regulatory Agreement is
no longer in effect due to reasons other than a default thereunder by the Partnership, such
Use Restrictions shall have remained in effect by other means and shall continue in effect by
inclusion in the deed as required under Paragraph 10 hereof.
If any or all of such conditions precedent have not been met, the Option and the Refusal Right
shall not be exercisable. Upon any of the events terminating the Option or the Refusal Right
BOSl #1335722 v5 -3-
under this Paragraph 5, the Option and the Refusal Right shall be void and of no further force
and effect.
6. Exercise of Option or Refusal Right. The Option and the Refusal Right each may
be exercised by Grantee by (a) giving prior written notice of its intent to exercise the Option or
the Refusal Right to the Partnership and each of its Partners in the manner provided in the
Partnership Agreement and in compliance with the requirements of this Paragraph 6, and (b)
complying with the contract and closing requirements of Paragraph 9 hereof. Any such notice of
intent to exercise the Option shall be given during the period commencing one (1) year prior to
the expiration of the Compliance Period and terminating at the end of the Option Period. Any
such notice of intent to exercise the Refusal Right shall be given within ninety (90) days after
Grantee has received the Partnership's notice of a bona fide offer pursuant to Paragraph 2 hereof.
In either case, the notice of intent shall specify a closing date within one hundred twenty (120)
days immediately following the date of exercise. If the foregoing requirements (including those
of Paragraph 9 hereof) are not met as and when provided herein, the Option or the Refusal Right,
or both, as applicable, shall expire and be of no further force or affect. Upon notice by Grantee
of its intent to exercise the Option or the Refusal Right, all rights under the other shall be
subordinate to the rights then being so exercised unless and until such exercise is withdrawn or
discontinued, and upon the closing of any sale of the Property pursuant to such notice shall
expire and be of no further force or effect, provided that in the event that the Option and the
Refusal Right are hereafter held by different parties by reason of any permitted assignment or
otherwise, Grantee in its assignment or such parties by written agreement may specify any other
order of priority consistent with the other terms and conditions of this Agreement.
7. Determination of Price. Upon notice by Grantee of its intent to exercise the
Option or the Refusal Right, the Partnership and Grantee shall follow the procedure set forth in
this Agreement for determining the Option Price or the Refusal Right Price, as applicable, for the
Property (the "Purchase Price"). Any such agreement shall be subject to the prior written
consent of the Consenting Limited Partners, which shall not be withheld as to any Purchase Price
determined properly in accordance with this Agreement. In the event Grantee for any reason
withdraws or discontinues its exercise of the Option or the Refusal Right, it shall pay any and all
expenses of accounting, appraisal, and arbitration incurred in the determination of the Purchase
Price and any expenses incurred in the preparation of a purchase contract as provided
hereinbelow, including without limitation reasonable legal fees of the Partnership and the
Consenting Limited Partners in connection with any such arbitration and contract.
8. Arbitration. In the event of any dispute hereunder, each of Grantee, the General
Partners, the Consenting Limited Partners, and any other Partners of the Partnership who are in
disagreement shall exercise best efforts in good faith to agree on a single arbitrator to act
hereunder. Such arbitrator shall conduct proceedings in the geographic area in which the
Property is located, according to such procedures as the arbitrator shall designate, provided that
they are fair and do not violate the Uniform Arbitration Act if and as adopted by the state in
which the Property is located or any similar act that may apply. In the absence of an agreement
by such parties on a single arbitrator or on any other method of arbitration, such dispute shall be
submitted for arbitration in accordance with the applicable rules of the American Arbitration
Association.
BOSl #1335722 v5
In any event, the arbitrator(s) appointed hereunder shall have all of the jurisdiction and
powers of courts of law and equity in civil matters. The parties to such arbitration hereby agree
to accept any decision or award made by the arbitrators in accordance with arbitration
proceedings conducted pursuant hereto, and the same shall be final and binding on such parties.
Any such decision or award may be enforced, and judgment thereon may be entered, by any
court of competent jurisdiction. All fees and expenses of such arbitration proceedings, including
both those of the arbitrator(s) and reasonable attorneys' fees of counsel for the respective parties
to arbitration, shall be paid by the party or parties against whom the decision or award is
rendered or as may otherwise be determined to be equitable by the arbitrators. In the event any
disagreeing party fails to appoint an arbitrator who is able and willing to serve hereunder within
twenty (20) days after any demand for arbitration by any other party or fails to proceed in good
faith with arbitration proceedings hereunder, the other parties may each at its option take any
action available to them in law or equity in any court of competent jurisdiction.
9. Contract and Closing. Upon determination of the Purchase Price for the Property,
the Partnership and Grantee shall execute escrow instructions legally consistent with this
Agreement, and attach any notices or statements required under federal or state law applicable to
the transaction for the purchase and sale of such Property in accordance with this Agreement and
containing such other terms and conditions as are standard and customary for similar commercial
transactions in the geographic area which such Property is located, providing for a closing not
later than the date specified in the Grantee's notice of intent to exercise the Option or the Refusal
Right, as applicable, or ninety (90) days after the Purchase Price has been determined whichever
is later. In the absence of any such contract, this Agreement shall be specifically enforceable
upon the exercise of the Option or the Refusal Right, as applicable. The purchase and sale
hereunder shall be closed through a deed-and-money escrow with the title insurer for the
Property or another mutually acceptable title company.
10. Use Restrictions. In consideration of the Option and the Refusal Right granted
hereunder at the price specified herein, Grantee hereby agrees that the deed granting the Property
to Grantee shall contain a covenant running with the land, restricting use of the Property to low-
income housing to the extent required by those Use Restrictions contained in the Regulatory
Agreement. All provisions relating to the Use Restrictions contained in such deed and in this
Agreement shall be subject and subordinate to any third-party liens encumbering the Property.
The deed to Grantee shall be subject to the prior written approval of the Consenting
Limited Partners, which shall not be unreasonably withheld. In the absence of a deed
conforming to the requirements of this Agreement, the provisions of this Agreement shall run
with the land. In the event that neither the Option nor the Refusal Right is exercised, or the sale
pursuant thereto is not consummated, then, subject to the approval of the Special Limited
Partner, upon conveyance of the Property to anyone other than Grantee or its Permitted Assignee
hereunder, the foregoing provisions shall terminate and have no further force or effect.
11. Assignment. Grantee may assign all or any of its rights under this Agreement to
(a) a qualified nonprofit organization, as defined in Section 42(h)(5)(C) of the code, (b) a
government agency, or (c) a tenant organization (in cooperative form or otherwise) or resident
management corporation of the Property (each a "Permitted Assignee") that demonstrates its
ability and willingness to maintain the Property as low-income housing in accordance with the
BOSl #1335722 v5 -5-
Use Restrictions, in any case subject to the prior written consent of the Special Limited Partner,
and subject in any event to the conditions precedent to the Refusal Right and the Option set forth
in Paragraphs 2 and 3 hereof. Prior to any assignment or proposed assignment of its rights
hereunder, Grantee shall give written notice thereof to the Partnership, DHC as a General
Partner, and the Consenting Limited Partners. Upon any permitted assignment hereunder,
references in this Agreement to Grantee shall mean the Permitted Assignee where the context so
requires, subject to all applicable conditions to the effectiveness of the rights granted under this
Agreement and so assigned. No assignment of Grantee's rights hereunder shall be effective
unless and until the Permitted Assignee enters into a written agreement accepting the assignment
and assuming all of Grantee's obligations under this Agreement and copies of such written
agreement are delivered to the Partnership, DHC as a General Partner, and the Consenting
Limited Partners. Except as specifically permitted herein, Grantee's rights hereunder shall not
be assignable.
12. Legal Fees. The non-prevailing party shall pay on demand all reasonable fees and
expenses incurred by the prevailing party in any dispute not resolved by arbitration.
13. Reformation as a Redemption. Notwithstanding the foregoing, Grantee, as a
General Partner of the Partnership, shall have the option to reform this Agreement to provide for
a redemption by the Partnership of the Consenting Limited Partners' Interest in the Partnership in
lieu of a purchase by Grantee of the Property; provided, however, that the economic, tax and
material consequences of the transaction for the Consenting Limited Partners shall not be altered
thereby, and that any such reformation shall require execution by the Partnership and any other
General Partner of all documentation and the prior written consent of the Consenting Limited
Partners to all documentation. In connection with any such redemption, Grantee shall be entitled
to appoint a substitute general partner to the Partnership if necessary for the purpose of causing
the Partnership to have a minimum of two partners at all times.
14. Miscellaneous. This Agreement shall be liberally construed in accordance with
the laws of the State of California in order to effectuate the purposes of this Agreement. This
Agreement may be executed in counterparts or counterpart signature pages, which together shall
constitute a single agreement. This Agreement and the Option and Refusal Right provided for
herein are subordinate to all rights of California Community Reinvestment Corporation under the
deed(s) of trust securing its loan(s) to the Partnership.
BOSl #1335722 v5 -6-
IN WITNESS WHEREOF, the parties have executed this document as of the date first set
forth hereinabove.
PARTNERSHIP:
DEANZA GARDENS, L.P., a California limited
partnership, by its general partners
DEANZA HOUSING CORPORATION, a
California nonprofit public benefit corporation
By:
Rudy Tamayo, Executive Director
HOUSING AUTHORITY OF THE COUNTY OF
CONTRA COSTA, a public body, corporate and
politic
By:
Rudy Tamayo, Deputy Executive Director
GRANTEE:
HOUSING AUTHORITY OF THE COUNTY OF
CONTRA COSTA, a public body, corporate and
politic
By:
Rudy Tamayo, Deputy Executive Director
The undersigned hereby consents to the foregoing Agreement as of the date first set forth
hereinabove.
BCP/DEANZA GARDENS, LLC, a Delaware
limited liability company, by its manager, BCCC,
Inc., a Massachusetts corporation
By:
Marc N/Teal, Senior Vice President
BCCC, Inc., a Massachusetts corporation
Marc RTeal, Senior Vice President
BOSl #1335722 v5
IN WITNESS WHEREOF, the parties have executed this document as of the date first set
forth hereinabove.
PARTNERSHIP:
DEANZA GARDENS, L.P., a California limited
partnership, by its general partners
DEANZA HOUSING CORPORATION, a
California nonprofit public benefit corporation
By:
RudyTama$>, Executive Director
HOUSING AUTHORITY OF THE COUNTY OF
CONTRA COSTA, a public body, corporate and
politic
By:
Tamgfyo, Deputy Executive Director
GRANTEE:
HOUSING AUTHORITY OF THE COUNTY OF
CONTRA COSTA, a public body, corporate and
politic
By:
Rudy Tamayof Deputy ExecutivrDirector
The undersigned hereby consents to the foregoing Agreement as of the date first set forth
hereinabove.
BCP/DEANZA GARDENS, LLC, a Delaware
limited liability company, by its manager, BCCC,
Inc., a Massachusetts corporation
By:
Marc N. Teal, Senior Vice President
BCCC, Inc., a Massachusetts corporation
By: _
Marc N. Teal, Senior Vice President
BOSl #1335722 v5
Acknowledgments
STATE OF )
)SS.
COUNTY OF )
On , 20 , before me, the undersigned, personally appeared Rudy
Tamayo, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person whose name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the instrument the
person or the entity upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(notarial seal)
COMMONWEALTH OF MASSACHUSETTS )
)SS.
COUNTY OF SUFFOLK )
On V )\lfhf_ cP^ . 20Q2, before me, the undersigned, personally appeared Marc N.
Teal, personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person whose name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacities, and that by his signatures on the instrument the
person or the entity upon behalf of which the person acted, executed the instrument.
ignature
(notarial seal)
BOSl #1335722 v5
EXHIBIT A
LEGAL DESCRIPTION OF
PROJECT REAL ESTATE
BOSl #1335722 v5 " " "
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
John T. Haygood, Esq.
Goldfarb & Lipman
1300 Clay Street, Ninth Floor
City Center Plaza
Oakland, CA 94612
(Space Above This Line For Recorder's Use)
MEMORANDUM OF PURCHASE OPTION
AND RIGHT OF FIRST REFUSAL AGREEMENT
This Memorandum of Purchase Option and Right of First Refusal Agreement
("Memorandum") is entered into as of June , 2003 by and among DEANZA GARDENS,
L.P., a California limited partnership (the "Partnership"), HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA, a public body, corporate and politic (the "Grantee"), and
DEANZA HOUSING CORPORATION, a California nonprofit public benefit corporation, and is
consented to herein below by BCP/DEANZA GARDENS, LLC, a Delaware limited liability
company, (the "Investor Limited Partner") and by BCCC, INC., a Massachusetts corporation (the
"Special Limited Partner"), the limited partners of the Partnership (collectively, the "Consenting
Limited Partners") with respect to that certain Purchase Option and Right of First Refusal
Agreement ("Agreement") dated as of June , 2003, between the Partnership and the Grantee
and consented to by the Consenting Limited Partners.
Pursuant to the Agreement, Partnership has granted to Grantee a purchase option and
right of first refusal, on the terms and conditions stated in the Agreement, to purchase the real
estate, fixtures, and personal property comprising the Apartment Complex or associated with the
physical operation thereof, located at the Apartment Complex and owned by the Partnership at
the time of purchase (the "Property"), located in Bay Point, Contra Costa County, California, and
known as DeAnza Gardens, more particularly described in Exhibit A attached hereto, for a
period of twenty-four (24) months (the "Option Period") following the close of the compliance
period for the low-income housing tax credit for the Apartment Complex (the "Compliance
Period") as determined under Section 42(i)(l) of the Internal Revenue Code of 1986.
This Memorandum shall incorporate all of the terms and provisions of the Agreement as
though fully set forth herein.
843\04\170095.1
This Memorandum is solely for recording purposes and shall not be construed to alter,
modify, amend or supplement the Agreement, of which this is a memorandum.
This Memorandum may be executed in any number of counterparts, all of which shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Memorandum as of the
date first written above.
PARTNERSHIP:
DEANZA GARDENS, L. P., a California Limited
Partnership, by its general partners
HOUSING AUTHORITY OF THE COUNTY OF
CONTRA COSTA, a public body, corporate and
politic
DEANZA HOUSING CORPORATION a California
nonprofit public benefit corporation
By:
Its:
843\04\170095.1
Acknowledgments
STATE OF CALIFORNIA
)ss
COUNTY OF ALAMEDA
_, 2003, before me, Jane C. Durango, a notary public, personally
appeared Rudy Tamayo personally known to me to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person or the entity upon behalf of
which the person acted, executed the instrument.
WITNESS my hand and official seal.
COMM. #1331865
NOVMHMJMJC* CMJKMMA
AWMEOACOUH7Y
Corom.Exp. NOV. 23.2006
~~~~\/~~\/~V~V~^^M V X
843\04\170095.1
1
843\01\3040572.1
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
DEANZA GARDENS, L.P.
CORPORATE/PARTNERSHIP AUTHORIZING RESOLUTION 5243
RE: AUTHORIZING ADMITTANCE AND WITHDRAWAL OF LIMITED PARTNERS AND
WITHDRAWAL OF GENERAL PARTNER
(DeAnza)
At a duly constituted meeting of the Board of Commissioners (the "Board") of the
Housing Authority of the County of Contra Costa, a public body corporate and politic the
"Housing Authority "), held on March 8, 2022, the following resolutions were adopted:
WHEREAS, in this resolution, the Board shall be acting on behalf of the Housing
Authority: (i) on its own behalf and (ii) as a general partner of De Anza Gardens, L.P., a
California limited partnership (the "Partnership");
WHEREAS, the Housing Authority is a general partner of the Partnership along with
DeAnza Housing Corporation, a California nonprofit public benefit corporation;
WHEREAS, BCP/DeAnza Gardens, LLC, a Delaware limited liability company, is the
investor limited partner of the Partnership (the "Investor Limited Partner"), and BCCC, Inc., a
Massachusetts corporation, is the special limited partner of the Partnership (the "Special Limited
Partner", and collectivel y with the Investor Limited P artner, the "Withdrawing Limited
Partners ");
WHEREAS, the Partnership was formed for the purpose of owning, constructing and
operating an affordable rental housing project known as DeAnza Gardens Apartments (the
"Project ");
WHEREAS, the Housing Authority desires to withdraw from the Partnership as a general
partner and enter the Partnership as the limited partner;
WHEREAS, on May 18, 2021, the Board approved the Partnership to disburse to the
Withdrawing Limited Partners a disposition fee in the amount of Ten Dollars ($10) plus any
additional distributions or costs required to induce the Withdrawing Limited Partners to exit the
Partnership, if any (the "LP Exit Costs ");
WHEREAS, the Withdrawing Limited Partners have adjusted the final purchase to
$1,000;
WHEREAS, the Withdrawing Limited Partners desire to assign their respective interests
and withdraw from the Partnership; and
WHEREAS, the Board desires for the Housing Authority and the Partnership to enter into
any and all documents necessary to admit the Housing Authority as the limited partner, to allow
the Housing Authority to withdraw as a general partner, to allow the Withdrawing Limited
Partners to assign their interests and withdraw as the limited partners of the Partnership, and to
distribute the LP Exit Costs, including but not limited to, a transfer agreement, an assignment
2
843\01\3040572.1
and assumption of partnership interests and second amendment to the second amended and
restated agreement of limited partnership , and any other types of agreements or documents
necessary to admit the Housing Authority as the limited partner and allow the Housing Authority
to withdraw as a general partner, allow the Withdrawing Limited Partners to assign their interests
and withdraw, and to pay the LP Exit Costs (collectively, the "Documents ").
NOW, THEREFORE, BE IT RESOLVED: That the Housing Authority accepts the
$1,000 sale price.
FURTHER RESOLVED: That the Partnership shall admit the Housing Authority as the
limited partner, allow the Housing Authority to withdraw as a general partner, distribute the LP
Exit Costs, and allow the Withdrawing Limited Partners to assign their interests and withdraw as
the limited partners.
FURTHER RESOLVED: That the Housing Authority in its own capacity and/or in its
capacity as the general partner of the Partnership , shall enter into the Documents.
FURTHER RESOLVED: That Joseph Villarreal, Executive Director of the Housing
Authority, or any other officer of the Housing Authority, acting alone on behalf of the Housing
Authority, in its own capacity, and in its capacity as the general partner of the Partnership, is
authorized, empowered and directed to : (i) take any and all necessary actions, and execute any
and all necessary documents in its own capacity and in its capacity as the general partner of the
Partnership, including, but not limited to, the Documents; (ii) take any further actions necessary
to admit the Housing Authority as the limited partner, allow the Housing Authority to withdraw
as a general partner, and allow the Withdrawing Limited Partners to assign their interests and
withdraw; (iii) take any further actions necessary to pay the LP Exit Costs, and (iv) do all other
activities contemplated by this Resolution or otherwise necessary to cause the admittance of the
Housing Authority as the limited partner, withdrawal of the Housing Authority as a general
partner, withdrawal of the Withdrawing Limited Partners from the Partnership, and payment of
the LP Exit Costs.
FURTHER RESOLVED: That Joseph Villarreal, Executive Director of the Housing
Authority, or any other officer of the Housing Authority, acting alone on behalf of the Housing
Authority in its own capacity and in its capacity as the general partner of the Partnership , is
authorized, empowered and directed to execute any other form of resolution required by a lender,
investor, or other third party, if determined by an officer of the Housing Authority, with the
advice of counsel, to be substantially equivalent to this form of resolutio n.
RESOLVED FURTHER: That to the extent that any actions authorized herein have
already been performed, such actions are ratified and approved.
[Remainder of Page Intentionally Blank ]
3
843\01\3040572.1
SECRETARY'S CERTIFICATE
I, the undersigned, hereby certify that the foregoing is a true copy of the Resolution
adopted by the Board of Commissioners at a meeting of the Housing Authority, and that said
Resolution is in full force and effect.
Dated: May 18, 2021
By: _______________________________
Joseph Villarreal, Secretary
1
843\01\3040572.1
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
DEANZA GARDENS, L.P.
CORPORATE/PARTNERSHIP AUTHORIZING RESOLUTION 5243
RE: AUTHORIZING ADMITTANCE AND WITHDRAWAL OF LIMITED PARTNERS AND
WITHDRAWAL OF GENERAL PARTNER
(DeAnza)
At a duly constituted meeting of the Board of Commissioners (the "Board") of the
Housing Authority of the County of Contra Costa, a public body corporate and politic the
"Housing Authority "), held on March 8, 2022, the following resolutions were adopted:
WHEREAS, in this resolution, the Board shall be acting on behalf of the Housing
Authority: (i) on its own behalf and (ii) as a general partner of De Anza Gardens, L.P., a
California limited partnership (the "Partnership");
WHEREAS, the Housing Authority is a general partner of the Partnership along with
DeAnza Housing Corporation, a California nonprofit public benefit corporation;
WHEREAS, BCP/DeAnza Gardens, LLC, a Delaware limited liability company, is the
investor limited partner of the Partnership (the "Investor Limited Partner"), and BCCC, Inc., a
Massachusetts corporation, is the special limited partner of the Partnership (the "Special Limited
Partner", and collectivel y with the Investor Limited P artner, the "Withdrawing Limited
Partners ");
WHEREAS, the Partnership was formed for the purpose of owning, constructing and
operating an affordable rental housing project known as DeAnza Gardens Apartments (the
"Project ");
WHEREAS, the Housing Authority desires to withdraw from the Partnership as a general
partner and enter the Partnership as the limited partner;
WHEREAS, on May 18, 2021, the Board approved the Partnership to disburse to the
Withdrawing Limited Partners a disposition fee in the amount of Ten Dollars ($10) plus any
additional distributions or costs required to induce the Withdrawing Limited Partners to exit the
Partnership, if any (the "LP Exit Costs ");
WHEREAS, the Withdrawing Limited Partners have adjusted the final purchase to
$1,000;
WHEREAS, the Withdrawing Limited Partners desire to assign their respective interests
and withdraw from the Partnership; and
WHEREAS, the Board desires for the Housing Authority and the Partnership to enter into
any and all documents necessary to admit the Housing Authority as the limited partner, to allow
the Housing Authority to withdraw as a general partner, to allow the Withdrawing Limited
Partners to assign their interests and withdraw as the limited partners of the Partnership, and to
distribute the LP Exit Costs, including but not limited to, a transfer agreement, an assignment
2
843\01\3040572.1
and assumption of partnership interests and second amendment to the second amended and
restated agreement of limited partnership , and any other types of agreements or documents
necessary to admit the Housing Authority as the limited partner and allow the Housing Authority
to withdraw as a general partner, allow the Withdrawing Limited Partners to assign their interests
and withdraw, and to pay the LP Exit Costs (collectively, the "Documents ").
NOW, THEREFORE, BE IT RESOLVED: That the Housing Authority accepts the
$1,000 sale price.
FURTHER RESOLVED: That the Partnership shall admit the Housing Authority as the
limited partner, allow the Housing Authority to withdraw as a general partner, distribute the LP
Exit Costs, and allow the Withdrawing Limited Partners to assign their interests and withdraw as
the limited partners.
FURTHER RESOLVED: That the Housing Authority in its own capacity and/or in its
capacity as the general partner of the Partnership , shall enter into the Documents.
FURTHER RESOLVED: That Joseph Villarreal, Executive Director of the Housing
Authority, or any other officer of the Housing Authority, acting alone on behalf of the Housing
Authority, in its own capacity, and in its capacity as the general partner of the Partnership, is
authorized, empowered and directed to : (i) take any and all necessary actions, and execute any
and all necessary documents in its own capacity and in its capacity as the general partner of the
Partnership, including, but not limited to, the Documents; (ii) take any further actions necessary
to admit the Housing Authority as the limited partner, allow the Housing Authority to withdraw
as a general partner, and allow the Withdrawing Limited Partners to assign their interests and
withdraw; (iii) take any further actions necessary to pay the LP Exit Costs, and (iv) do all other
activities contemplated by this Resolution or otherwise necessary to cause the admittance of the
Housing Authority as the limited partner, withdrawal of the Housing Authority as a general
partner, withdrawal of the Withdrawing Limited Partners from the Partnership, and payment of
the LP Exit Costs.
FURTHER RESOLVED: That Joseph Villarreal, Executive Director of the Housing
Authority, or any other officer of the Housing Authority, acting alone on behalf of the Housing
Authority in its own capacity and in its capacity as the general partner of the Partnership , is
authorized, empowered and directed to execute any other form of resolution required by a lender,
investor, or other third party, if determined by an officer of the Housing Authority, with the
advice of counsel, to be substantially equivalent to this form of resolutio n.
RESOLVED FURTHER: That to the extent that any actions authorized herein have
already been performed, such actions are ratified and approved.
[Remainder of Page Intentionally Blank ]