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HomeMy WebLinkAboutMINUTES - 09132022 - HA Completed Min Pkt    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 As permitted by Government Code section 54953 (e), and in accordance with the County Public Health Officer’s recommendations for virtual meetings and social distancing, Board members may participate in the meeting remotely. The Board meeting will be accessible in-person, via television, and via live-streaming to all members of the public. 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  on the agenda may comment in person or may call in during the meeting by dialing 888-278-0254 followed by the access code 843298#. A caller should indicate they wish to speak on an agenda item, by pushing "#2" on their phone. Access via Zoom is also available using the following link: https://cccounty-us.zoom.us/j/87344719204. Those participating via Zoom should indicate they wish to speak on an agenda item by using the “raise your hand” feature in the Zoom app. To provide 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 commenters.   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 September 13, 2022            1:00 P.M. Convene and call to order.    Called to order at 2:00 p.m.   CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.4 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.   PRESENTATIONS (5 Minutes Each)   PRESENTATION recognizing Elizabeth Campbell's indispensable service to the Housing Authority of the County of Contra Costa upon the occasion of her retirement.   DISCUSSION ITEMS   D.1 CONSIDER approving the conditional award of 226 project-based vouchers (PBV) to sixteen separate projects throughout Contra Costa County, conditional upon each project meeting all HUD requirements and receiving all other required financing.       Speaker: No name given.   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 Joann Segura AYE   D.2 APPROVE, effective January 1, 2022, a new five-step salary schedule for the position of Executive Director with a five percent (5%) increase between steps, with each step rounded down to the nearest whole dollar: Step 1 through Step 5 ($190,446 - $231,487); APPROVE a merit step increase to step 4 of the new salary range effective January 1, 2022; and AUTHORIZE the Chair of the Board of Commissioners to sign an amendment to the Executive Director’s employment agreement to reflect the new salary and salary schedule.       Speaker: No name given.   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 Joann Segura AYE   D. 3 CONSIDER Consent Items previously removed.    There were no consent items removed for discussion.   D. 4 PUBLIC COMMENT (2 Minutes/Speaker)   ADJOURN    Adjourned today's meeting at 2:15 p.m.   CONSENT ITEMS:   C.1  DENY claims filed by Subro Claims Inc., on behalf of Geico Insurance, a subrogee of Ebelia Becerra (2). DENY amended claim filed by Subron Claims Inc., on behalf of Geico Insurance, a subrogee of Ebelia Becerra.      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 Joann Segura AYE   C.2  ADOPT Resolution No. 5245 to invest HUD and non-HUD funds according to HACCC’s Investment Policy.      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 Joann Segura AYE   C.3  RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending June 30, 2022.      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 Joann Segura AYE   C.4    C.4  ADOPT Resolution No. 5246 recognizing Elizabeth Campbell's indispensable service to the Housing Authority of the County of Contra Costa upon the occasion of her retirement.      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 Joann Segura AYE     GENERAL INFORMATION   Persons who wish to address the Board of Commissioners should complete the form provided for that purpose and furnish a copy of any written statement to the Clerk.   All matters listed under CONSENT ITEMS are considered by the Board of Commissioners to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Board or a member of the public prior to the time the Commission votes on the motion to adopt. Persons who wish to speak on matters set for PUBLIC HEARINGS will be heard when the Chair calls for comments from those persons who are in support thereof or in opposition thereto. After persons have spoken, the hearing is closed and the matter is subject to discussion and action by the Board. Comments on matters listed on the agenda or otherwise within the purview of the Board of Commissioners can be submitted to the office of the Clerk of the Board via mail:  Board of Commissioners, 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. Subscribe to receive the weekly agenda by calling the Office of the Clerk of the Board, (925) 655-2000 or using the County's on line subscription feature at the County’s Internet Web Page, where agendas and supporting information may also be viewed: 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 APPROVE the conditional award of 226 project-based vouchers (PBV) to sixteen separate projects throughout Contra Costa County. The award of these PBVs is conditional upon each project meeting all HUD requirements and receiving all other required financing. BACKGROUND To date, HACCC has awarded over $2.5 billion in assistance to 1,803 PBVs targeted to the production of new affordable housing or the preservation of existing affordable housing. Staff recommends that HACCC award 226 additional PBVs to sixteen projects throughout Contra Costa County. If approved, this will bring HACCC’s 40-year PBV funding commitments to nearly $3 billion for 2,029 units. A housing authority can utilize up to 20% of its Housing Choice Voucher (HCV) funding to “attach” rent subsidies to specific housing units. These attached subsidies are called PBVs, and they share most of the HCV program’s 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 and via an HACCC wait list. 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/PBV 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, the amount of rent an owner can collect from a PBV unit is usually significantly higher than otherwise available to the project. This increased cash flow and leverage is 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 HCV recipients and the community. HUD requires that housing authorities utilize a competitive process to select developments that will receive PBV assistance. A housing authority can utilize its own competition or may choose projects that were competitively awarded affordable housing funds under a Action of Board On: 09/13/2022 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 Joann 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: September 13, 2022 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: D.1 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 13, 2022 Contra Costa County Subject:THE AWARD OF PROJECT-BASED VOUCHER ASSISTANCE FOR 226 UNITS TO SIXTEEN AFFORDABLE HOUSING PROJECTS BACKGROUND (CONT'D) 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 prior to the PBV selection date, and the earlier selection proposal must not have involved any consideration that the project would receive PBV assistance. HACCC released a competitive solicitation for 250 units of new construction PBVs on June 13, 2022. The deadline for responses was June 30th. HACCC received eighteen applications for a total of 375 PBV units. After review, seventeen projects were deemed eligible. One project was disqualified because they had already started construction. HUD regulations state that PBVs cannot be awarded to a new construction project that has begun any stage of the construction/rehab process. A review of the applications determined that one project, 699 YVR Housing (24 units), was previously awarded federal HOME funding by the County in a competitive process that met HUD’s guidelines for non-competitive award of PBVs by HACCC. In response, staff did not take this project through the competitive ranking process. Instead, it was brought to the Board to consider awarding PBVs outside of HACCC’s competitive process. The Board approved the award of 24 PBVs to YVR Housing on July 12, 2022. A list of the projects that applied for funding, the number of units they requested and the number of units that staff propose to award to each project is attached. FISCAL IMPACT Funding for project-based vouchers is provided by utilizing a portion of the Housing Authority’s (HACCC) tenant-based voucher funding. CONSEQUENCE OF NEGATIVE ACTION Should the Board not approve the conditional award of 226 project-based vouchers to these sixteen affordable housing projects, it is likely that every project will be delayed or cancelled because the rental assistance provided by PBVs is critical to their financial viability. CLERK'S ADDENDUM Speaker: No name given. ATTACHMENTS BO PBV PBV List PBV Site Photos HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Joseph Villarreal, Executive Director DATE: September 13, 2022 SUBJECT: THE AWARD OF PROJECT-BASED VOUCHER ASSISTANCE FOR 226 UNITS TO SIXTEEN AFFORDABLE HOUSING PROJECTS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: Consider APPROVING the conditional award of 226 project-based vouchers (PBV) to sixteen separate projects throughout Contra Costa County. The award of these PBVs is conditional upon each project meeting all HUD requirements and receiving all other required financing. II. FINANCIAL IMPACT: Funding for project-based vouchers is provided by utilizing a portion of the Housing Authority’s (HACCC) tenant-based voucher funding. III. REASONS FOR RECOMMENDATION/BACKGROUND To date, HACCC has awarded over $2.5 billion in assistance to 1,803 PBVs targeted to the production of new affordable housing or the preservation of existing affordable housing. Staff recommends that HACCC award 226 additional PBVs to sixteen projects throughout Contra Costa County. If approved, this will bring HACCC’s 40-year PBV funding commitments to nearly $3 billion for 2,029 units. A housing authority can utilize up to 20% of its Housing Choice Voucher (HCV) funding to “attach” rent subsidies to specific housing units. These attached subsidies are called PBVs, and they share most of the HCV program ’s 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 and via an HACCC wait list. 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 t o an affordable amount that is usually far less than a comparable unit would merit on the open market. However, because the HCV/PBV 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, the amount of rent an owner can collect from a PBV unit is usually significantly higher than otherwise available to the project. This increased cash flow and leverage is 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 HCV recipients and the community. HUD requires that housing authorities utilize a competitive process to select developments that will receive 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, compet itively awarded Low-Income Housing Tax Credits). If the competitive process of another governmental entity is use d, the award of those funds cannot have occurred more than three years prior to the PBV selection date, and the earlier selection proposal must not have involved any consideration that the project would receive PBV assistance. HACCC released a competitive solicitation for 250 units of new construction PBVs on June 13, 2022. The deadline for responses was June 30th. HACCC received eighteen applications for a total of 375 PBV units. After review, seventeen projects were deemed eligible. One project was disqualified because they had already started construction. HUD regulations state that PBVs cannot be awarded to a new construction project that has begun any stage of the construction/rehab process. A review of the applications determined that one project, 699 YVR Housing (24 units), was previously awarded federal HOME funding by the County in a competitive process that met HUD ’s guidelines for non-competitive award of PBVs by HACCC. In response, staff did not take this project through the competitive ranking process. Instead, it was brought to the Board to consider awarding PBVs outside of HACCC’s competitive process. The Board approved the award of 24 PBVs to YVR Housing on July 12, 2022. A list of the projects that applied for funding, the number of units they requested and the number of units that staff propose to award to each project is attached. IV. CONSEQUENCES OF NEGATIVE ACTION Should the Board not approve the conditional award of 226 project-based vouchers to these sixteen affordable housing projects , it is likely that every project will be delayed or cancelled because the rental assistance provided by PBVs is critical to their financial viability. PBV RFP - 6/2022 Scoring Summary Project Owner Address # of Units Requested Total Units in Project # of Units Awarded Mayfair Affordable Bridge Housing 11690 San Pablo Ave, El Cerrito 25 69 17 Hope Village CCIH/HOPE Solutions/Grace Presbyterian Church 2100 Tice Valley Rd, Walnut Creek 6 6 6 100 38th Street - Family CHDC/Eden Housing, Inc 100 38th Street, Richmond, CA 19 76 19 100 38th Street - Supportive CHDC/Eden Housing, Inc 100 38th Street, Richmond, CA 58 59 15 Lillie Mae Jones II Community Housing Development Corporation 100 and 106 MacDonald Ave, Richmond, CA 31 31 8 Chesley Mutual Housing Community Housing Development Corporation 802 Chesley Ave., Richmond, CA 8 30 8 Alvarado Gardens DANCO Communities 13831 San Pablo Ave., San Pablo, CA 25 100 25 La Loma Apartments EAH, Inc.Adjacent to 710 Willow Ave, Rodeo, CA 31 66 16 Riverhouse Eden Housing 700 Alhambra Ave., Martinez, CA 18 75 18 TBV Villas @ Renaissance Guiding Light, Inc.1827 San Joaquin Street, Richmond, CA 23 93 23 Sunflower Hills @ Lafayett Lane Lafayette Pacific Associates, L.P.3470 Mt. Diablo Blvd., Lafayette 25 38 13 San Pablo Family Housing Novin Development 1820 Rumrill Blvd., San Pablo 25 41 8 Galindo Terrace Resources for Community Development 1313 and 1321 Galindo Street, Concord 13 62 13 699 YVR Resources for Community Development 699 Ygnacio Valley Rd., Walnut Creek 24 96 24 2251 San Ramon Valley ROEM Development 2251 San Ramon Valley Blvd., San Ramon 8 169 8 Choice in Aging Senior Housing Satellite Affordable Housing Associates 490 Golf Club Rd. Pleasant Hill, CA 21 81 21 811 San Pablo Satellite Affordable Housing Associates 811 San Pablo Ave., Pinole, CA 94564 15 33 8 375 1125 250 ALVARADO GARDENS, SAN PABLO, CA RECOMMENDATIONS APPROVE, effective January 1, 2022, a new five-step salary schedule for the position of Executive Director with a five percent (5%) increase between steps, with each step rounded down to the nearest whole dollar: Step 1 through Step 5 ($190,446 - $231,487). APPROVE a merit step increase to step 4 of the new salary range effective January 1, 2022. AUTHORIZE the Chair of the Board of Commissioners to sign an amendment to the Executive Director’s employment agreement to reflect the new salary and salary schedule. BACKGROUND On May 24, 2022, the Board of Commissioners completed a performance review of the Executive Director who is currently being paid at step one of the existing salary schedule for the position of Executive Director. It is recommended that a new five-step salary schedule be adopted for that position. The proposed new schedule reflects a 5% equity adjustment that was granted to represented employees on August 10, 2021, and to all management employees apart from the Executive Director on September 14, 2021. The Executive Director will also receive all COLAs approved for management staff by the Board on September 14, 2021. The recommended merit step increase from Step 1 to Step 4 is as a result of the performance review that was due in January 2022, as permitted by the Executive Director’s employment agreement, and because the Executive Director has not been given a performance review since December 2018. FISCAL IMPACT The maximum annual cost of this action (including pension cost) for calendar year 2022 would be $60,723.44. CONSEQUENCE OF NEGATIVE ACTION The Executive Director will not receive a salary increase. Action of Board On: 09/13/2022 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 Joann 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: September 13, 2022 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: D.2 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 13, 2022 Contra Costa County Subject:APPROVE WAGE CHANGE AND SALARY STEP INCREASE FOR JOSEPH E. VILLARREAL, EXECUTIVE DIRECTOR CLERK'S ADDENDUM Speaker: No name given. ATTACHMENTS BO JV ED Salary Schedule HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Commissioners Karen Mitchoff and Federal Glover DATE: September 13, 2022 SUBJECT: APPROVE WAGE CHANGE AND SALARY STEP INCREASE FOR JOSEPH E. VILLARREAL, EXECUTIVE DIRECTOR SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: APPROVE, effective January 1, 2022, a new five-step salary schedule for the position of Executive Director with a five percent (5%) increase between steps , with each step rounded down to the nearest whole dollar: Step 1 through Step 5 ($190,446 - $231,487). APPROVE a merit step increase to step 4 of the new salary range effective January 1, 2022. AUTHORIZE the Chair of the Board of Commissioners to sign an amendment to the Executive Director’s employment agreement to reflect the new salary and salary schedule. II. FINANCIAL IMPACT: The maximum annual cost of this action (including pension cost) for calendar year 2022 would be $60,723.44. III. REASONS FOR RECOMMENDATION/BACKGROUND On May 24, 2022, the Board of Commissioners completed a performance review of the Executive Director who is currently being paid at step one of the existing salary schedule for the position of Executive Director. It is recommended that a new five-step salary schedule be adopted for that position. The proposed new schedule reflects a 5% equity adjustment that was granted to represented employees on August 10, 2021, and to all management employees apart from the Executive Director on September 14, 2021. The Executive Director will also receive all COLAs approved for management staff by the Board on September 14, 2021. The recommended merit step increase from Step 1 to Step 4 is as a result of the performance review that was due in January 2022, as permitted by the Executive Director’s employment agreement, and because the Executive Director has not been given a performance review since December 2018. IV. CONSEQUENCES OF NEGATIVE ACTION: The Executive Director will not receive a salary increase . 1 Executive Director Salary Schedule with 5% equity adjustment previously given to all other HACCC staff. HOUSING AUTHORITY of the COUNTY of CONTRA COSTA SALARY SCHEDULES BY CLASSIFICATION Effective Date: January 1, 2022 POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Executive Director $190,446/yr. $15,870/mo. $91.56/hr. $199,968/yr. $16,664/mo. $96.13/hr. $209,966/yr. $17,497/mo. $100.94/hr. $220,464/yr. $18,372/mo. $105.99/hr. $231,487/yr. $19,290/mo. $111.29/hr. RECOMMENDATIONS DENY claims filed by Subro Claims Inc., on behalf of Geico Insurance, a subrogee of Ebelia Becerra (2). DENY amended claim filed by Subron Claims Inc., on behalf of Geico Insurance, a subrogee of Ebelia Becerra. BACKGROUND Subro Claims Inc, on behalf of Geico Insurance a subrogee of Ebelia Becerra: Property claim for damage to vehicle in the amount of $1,795.06. Subro Claims Inc, on behalf of Geico Insurance a subrogee of Ebelia Becerra: Property claim for damage to vehicle in the amount of $1,562.41. Subro Claims Inc, on behalf of Geico Insurance a subrogee of Ebelia Becerra: Amended Housing Authority property claim for damage to vehicle in the amount of $2,174.99. 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: 09/13/2022 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 Joann 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: September 13, 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:September 13, 2022 Contra Costa County Subject:Claims RECOMMENDATIONS ADOPT Resolution No. 5245 to invest HUD and non-HUD funds according to HACCC’s Investment Policy. BACKGROUND California Government Code (CGC) Section 53646(a)(2)] requires staff to annually prepare and submit a statement of investment policy, and any changes thereto, to the Board of Commissioners for consideration at a public meeting. HACCC’s Investment Policy was developed following guidelines set forth both by the State and the U.S. Department of Housing and Urban Development (HUD). In general, the State’s approach to investing public funds is outlined in CGC Section 53600.5, which reads as follows: When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control. The majority of HACCC’s funds are federal moneys received from HUD. When investing these moneys HACCC must follow both the broad guidelines listed above as required by the State and HUD’s more specific requirements set forth in HUD PIH Notice 2002-13. It authorizes housing authorities 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; Action of Board On: 09/13/2022 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 Joann 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: September 13, 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:September 13, 2022 Contra Costa County Subject:ANNUAL REVIEW AND APPROVAL OF INVESTMENT POLICY BACKGROUND (CONT'D) 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 02-13. Any non-HUD moneys controlled by HACCC may be invested in the following instruments permitted by the State (CGC Section 53601 et. seq.): 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. HACCC takes a conservative approach to investing. In the past, the majority of HACCC’s available funds (over 50%) have been placed in the Local Agency Investment Fund (LAIF), an investment alternative for California's local governments and special districts that is under the oversight of the State Treasurer. Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest or principal. Under Federal Law, the State of California cannot declare bankruptcy, thereby providing some assurance that the investments are secure. HACCC’s remaining investments are in certificates of deposit, money market accounts and government securities. As a result of HUD's recapture of the Section 8 housing assistance payment reserves from every housing authority, the percentage of HACCC's invested funds held by LAIF has decreased to 2.70%. In order to monitor HACCC’s compliance with the Investment Policy, staff provide the Board of Commissioners with quarterly reports showing HACCC’s investments and any recent activity or changes in those investments as required by CGC Section 53646(b). Compliance with the Investment Policy is also reviewed during HACCC’s independent audit. HACCC has had no findings or comments regarding its investment activity. Staff’s recommendation is to maintain HACCC’s current policy (see attachment). The attached policy was originally approved by the Board in 2007. FISCAL IMPACT This policy requires the Housing Authority of the County of Contra Costa (HACCC) to take a prudent approach to investing and that HACCC will not make any speculative investments, considering the probable safety of the capital as well as the probable income to be derived. The primary objectives of HACCC’s investment activities, in order of priority, are: safety; liquidity; return on investment. CONSEQUENCE OF NEGATIVE ACTION Should the Board of Commissioners elect not to adopt Resolution No. 5245 approving the Investment Policy for the Housing Authority of Should the Board of Commissioners elect not to adopt Resolution No. 5245 approving the Investment Policy for the Housing Authority of the County of Contra Costa, HACCC would not be in compliance with HUD regulations and California Government Code. AGENDA ATTACHMENTS RES 5245 - INVESTMENT POLICY MINUTES ATTACHMENTS Signed Resolution No. 5245 THE BOARD OF COMMISSIONERS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION NO. 5245 RESOLUTION APPROVING THE INVESTMENT POLICY OF THE AUTHORITY WHEREAS, The U.S. Department of Housing and Urban Development (HUD) has established requirements governing cash management and approved investment instruments for certain funds under the control of the Public Housing Authorities; and WHEREAS, the Legislature of the State of California has declared that the deposit and investment of publi c funds by local officials and local agencies is an issue of statewide concern, California Government Code (Government Code) Section 53600.6; and WHEREAS; the legislative body of a local agency may invest surplus monies not required for the immediate necessities of the local agency in accordance with the provisions of HUD’s Public and Indian Housing Notice 02-13 and Government Code Section 53601; and WHEREAS, the Executive Director of the Housing Authority of the County of Contra Costa (HACCC) shall annually prepare and submit a statement of investment policy and such policy, and any changes thereto, shall be considered by the Board of Commissioners of the Housing Authority at a public meeting [Government Code Section 53646 (a)(2)]; NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing Authority of the County of Contra Costa that it shall be the policy of the HACCC to invest funds in a manner which will provide the maximum safety, liquidity and reasonable investment return while meeting the daily cash flow demands of the HACCC and conforming to all statues governing the investment of HACCC funds. PASSED AND ADOPTED ON ___________________________by the following vote of the Commissioners. RECOMMENDATIONS RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending June 30th, 2022. 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 $20,172.80 in interest earnings for the quarter ending June 30th, 2022. 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. The interest earned for the quarter ending June 30th,2022 is shown below. A more detailed report is attached Action of Board On: 09/13/2022 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 Joann 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: September 13, 2022 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: C.3 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 13, 2022 Contra Costa County Subject:INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30, 2022 BACKGROUND (CONT'D) . 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 $6,172.57 $7,397.26 $3,841.89 $2,761.08 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 QE 6.30.2022 RECOMMENDATIONS ADOPT RESOLUTION 5246 IN RECOGNITION OF ELIZABETH CAMPBELL'S INDISPENSABLE SERVICE TO THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA ON THE OCCASION OF HER RETIREMENT BACKGROUND In the matter of expressing appreciation to Director of Asset Management, Elizabeth Campbell, for her service to the Housing Authority of the County of Contra Costa, on the occasion of her retirement. Action of Board On: 09/13/2022 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 Joann 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: September 13, 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:September 13, 2022 Contra Costa County Subject:ADOPT RESOLUTION NO. 5246 IN RECOGNITION OF ELIZABETH CAMPBELL'S INDISPENSABLE SERVICE TO HACCC ON THE OCCASION OF HER RETIREMENT AGENDA ATTACHMENTS Ceremonial RES 5246 MINUTES ATTACHMENTS Signed Resolution No. 5246 The Board of Commissioners Housing Authority of the County of Contra Costa In the matter of expressing appreciation to Director of Asset Management, Elizabeth Campbell, for her service to the Housing Authority of the County of Contra Costa, on the occasion of her retirement. Resolution No. 5246 WHEREAS, Elizabeth Campbell began her service on January 1, 1987, at the age of 18 as a student worker at the El Pueblo Public Housing development in Pittsburg, CA; and WHEREAS, Elizabeth Campbell was promoted to a full-time position as a Housing Clerk less than one year later to work in the public housing development, Las Deltas, in North Richmond; and WHEREAS, Elizabeth Campbell was promoted to several other positions throughout the next twenty (20) years including Housing Clerk, and Housing Manager for the Pub lic Housing Department; Senior Account Clerk and Internal Auditor for the Finance Department and Director of Assisted Housing Programs for the Section 8 Department; and WHEREAS, Elizabeth Campbell was promoted to the position of Director of Asset Manageme nt in October of 2007 where she was given the responsibility to oversee all of the public housing developments in the jurisdiction of the Housing Authority of the County of Contra Costa; and WHEREAS, Elizabeth Campbell has dutifully served in the position of Director of Asset Management for fifteen (15) years and has led the agency through a compressive conversion to Asset Management as required by the U.S. Department of Housing and Urban Development; and WHEREAS, Elizabeth Campbell has served in the capacity of Senior Vice President and President of the NorCal/Nevada chapter of the Pacific Southwest Regional Council of the National Association of Housing and Redevelopment Organizations while also ser ving on the Housing, Member Services and Professional Development Committees; and WHEREAS, Elizabeth Campbell has been sought out by the U.S. Department of Housing and Urban Development and other industry leaders for her training skills and ability to pro vide continuing education to her colleagues and peers; and WHEREAS, Elizabeth Campbell, in her commitment to providing the communities she serves opportunities for advancement by collaborating with various organizations throughout the county to ensure acc ess to food, healthcare, education, employment opportunities, and technology; and WHEREAS, Elizabeth Campbell through her proven leadership acumen and passion for serving the underserved communities throughout Contra Costa County and beyond has provided guidance and mentorship to her peers throughout the country while maintaining meaningful relationships with the residents of Public Housing and the Housing Choice Voucher Programs, earning their confidence and trust through her professionalism, responsiveness and competence; and NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the County of Contra Costa does hereby congratulate Elizabeth Campbell on her indispensable service to the Housing Authority of the County of Contra Costa, to her profession and Contra Costa County, as well as to congratulate her on the occasion of her retirement. PASSED by a unanimous vote of the Board of Commissioners members present this 13 th day of September 2022 . _______________________________ KAREN MITCHOFF Chair, District IV Commissioner _______________________________ JOHN GIOIA District I Commissioner _______________________________ CANDACE ANDERSEN District II Commissioner _______________________________ DIANE BURGIS District III Commissioner _______________________________ CYNTHIA JORDAN Commissioner _______________________________ FEDERAL D. GLOVER District V Commissioner _______________________________ JOANN SEGURA Commissioner I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Commissioners on the date shown: ATTESTED: Septem ber 1 3 , 2022 _________________________________________ C LERK OF THE BOARD OF COMMISSIONERS By _________________________________________ JOSEPH VILLARREAL, EXECUTIVE DIRECTOR