HomeMy WebLinkAboutMINUTES - 09102024 - HA Complete Min PktMeeting Minutes
CONTRA COSTA COUNTY HOUSING
AUTHORITY
FEDERAL D. GLOVER, CHAIR
CANDACE ANDERSEN, VICE CHAIR
JOHN GIOIA
DIANE BURGIS
KEN CARLSON
CYNTHIA JORDAN
JOANN SEGURA
JOSEPH VILLARREAL, EXECUTIVE
DIRECTOR, (925) 957-8001
1:00 PM Board Chambers 1025 Escobar Street,
Martinez |
https://cccounty-us.zoom.us/j/87344719204 |
Call in: 888-278-0254 access code 843298#
Tuesday, September 10, 2024
1:00 P.M. Convene and call to order
Commissioner John Gioia, Commissioner Candace Andersen,
Commissioner Diane Burgis, Commissioner Ken Carlson,
Commissioner Federal D. Glover, Commissioner Cynthia Jordan,
and Commissioner Joann Segura
Present
1.CONSIDER CONSENT ITEMS (Items listed as C.1 through C.2 on the following agenda)
– Items are subject to removal from Consent Calendar by request of any Commissioner .
Items removed from the Consent Calendar will be considered with the Discussion Items .
CONSIDER CONSENT ITEMS
A motion was made by Commissioner Burgis, seconded by Commissioner Andersen,
to approve the Consent Agenda. The motion carried by the following vote: AYES:
Gioia, Andersen, Burgis, Carlson, Glover, Jordan, Segura .
2.PRESENTATION
PR.1 ACCEPT presentation concerning the Public Housing Assessment System
Financial Score for the fiscal year ending in 2023. (No fiscal impact)
24-2668
Attachments:5 HACCC FYE 2023 PHARS Substandard Financial Response
Signed.pdf
6 PHAS Financial Presentation 9-10-24.pptx
3.DISCUSSION ITEMS
D.1 CONSIDER accepting the actuarial valuation of future annual costs of
proposed changes to Other Post-Employment Benefits to the Housing
24-2663
Page 1 of 4
HOUSING AUTHORITY Meeting Minutes September 10, 2024
Authority’s health care medical premium subsidy for employees and retirees
affected by the proposed negotiated agreements .
Attachments:2 HACCC Proposed OPEB Plan Change ADC Projection
2024-08-14.pdf
Motion:Andersen
BurgisSecond:
Commissioner Gioia, Commissioner Andersen, Commissioner
Burgis, Commissioner Carlson, Commissioner Glover,
Commissioner Jordan, and Commissioner Segura
Aye:
Result:Passed
D.2 PUBLIC COMMENT (2 Minutes)
There were no requests to speak at public comment .
4.CONSENT ITEMS
C.1 RECEIVE the Housing Authority of the County of Contra Costa’s
investment report for the quarter June 30th, 2024.
24-2665
Attachments:Investment Report for QE 06-30-24.pdf
This Consent Item was approved.
C.2 ADOPT Resolution No. 5263 to invest HUD (U.S. Department of Housing
and Urban Development) and non-HUD funds according to the Housing
Authority of Contra Costa County's Investment Policy.
24-2664
Attachments:3 HACCC Investment Policy.pdf
3 Annual Investment Policy Resolution 5263 Form.docx
2024-09-10 HA Res 5263.pdf
This Consent Item was adopted.
5.ADJOURN
AGENDA DEADLINE: Thursday, 12 noon, 12 days before the Tuesday Board meetings.
Page 2 of 4
HOUSING AUTHORITY Meeting Minutes September 10, 2024
GENERAL INFORMATION
The Board meets in all its capacities pursuant to Ordinance Code Section 24-2.402.
Any disclosable public records related to an open session item on a regular meeting agenda and
distributed by the Clerk of the Board to a majority of the members of the Board of Supervisors less than
96 hours prior to that meeting are available for public inspection at 1025 Escobar Street, First Floor,
Martinez, CA 94553, during normal business hours.
All matters listed under CONSENT ITEMS are considered by the Board 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 before the Board votes on the motion to adopt. Each member of the public will be
allowed two minutes to comment on the entire consent agenda .
Persons who wish to speak on matters set for PUBLIC HEARINGS will be heard when the Chair calls
for public testimony. Each speaker during public testimony will be limited to two minutes. After public
testimony, 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 Supervisors
can be submitted to the office of the Clerk of the Board via mail: Board of Supervisors, 1025 Escobar
Street, First Floor, Martinez, CA 94553 or to clerkoftheboard@cob.cccounty.us.
Time limits for public speakers may be adjusted at the discretion of the Chair .
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.
Anyone desiring to submit an inspirational thought nomination for inclusion on the Board Agenda may
contact the Office of the County Administrator or Office of the Clerk of the Board, 1025 Escobar Street,
Martinez, California.
Subscribe to receive to the weekly Board 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:
www.contracosta.ca.gov
DISCLOSURE OF CAMPAIGN CONTRIBUTIONS
Pursuant to Government Code section 84308, members of the Board of Supervisors are disqualified and
not able to participate in any agenda item involving contracts (other than competitively bid, labor, or
personal employment contracts), franchises, discretionary land use permits and other entitlements if the
Board member received, since January 1, 2023, more than $250 in campaign contributions from the
applicant or contractor, an agent of the applicant or contractor, or any financially interested participant
who actively supports or opposes the County’s decision on the agenda item. Members of the Board of
Supervisors who have received, and applicants, contractors or their agents who have made, campaign
contributions totaling more than $250 to a Board member since January 1, 2023, are required to disclose
Page 3 of 4
HOUSING AUTHORITY Meeting Minutes September 10, 2024
that fact for the official record of the subject proceeding. Disclosures must include the amount of the
campaign contribution and identify the recipient Board member, and may be made either in writing to
the Clerk of the Board of Supervisors before the subject hearing or by verbal disclosure at the time of the
hearing.
Page 4 of 4
1025 ESCOBAR STREET
MARTINEZ, CA 94553CONTRA COSTA COUNTY
Legislation Details (With Text)
File #: Version:124-2663 Name:
Status:Type:Discussion Item Passed
File created:In control:9/3/2024 HOUSING AUTHORITY
On agenda:Final action:9/10/2024 9/10/2024
Title:CONSIDER accepting the actuarial valuation of future annual costs of proposed changes to Other
Post-Employment Benefits to the Housing Authority’s health care medical premium subsidy for
employees and retirees affected by the proposed negotiated agreements.
Attachments:1. 2 HACCC Proposed OPEB Plan Change ADC Projection 2024-08-14.pdf
Action ByDate Action ResultVer.Tally
approvedHOUSING AUTHORITY9/10/2024 1 Pass 7:0
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Report Title:GOVERNMENT CODE 7507 COMPLIANCE - OTHER POST-EMPLOYMENT BENEFITS -
PROPOSED CHANGES FOR RETIREES
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ACCEPT the attached actuarial valuation of future annual costs of proposed changes to Other Post-
Employment Benefits to the Housing Authority’s (HACCC) health care medical premium subsidy for
employees and retirees affected by the proposed, negotiated agreements.
BACKGROUND:
On July 9, 2024, this Board adopted Resolution No. 5260 approving the Successor Memorandum of
Understanding (MOU) with Public Employees Union, Local #1/AFSCME (Union), providing for wages, non-
healthcare benefits, and other employment conditions for the term of July 1, 2024, through June 30, 2027.
Similarly, on July 9, 2024, this Board adopted Resolution No. 5261 regarding compensation and non-healthcare
benefits for the unrepresented employees of the Housing Authority of the County of Contra Costa.
Currently, HACCC pays 70% of the premium for the CalPERS Kaiser Premium plan, towards all health plans
offered by CalPERS. On June 26, 2024, a Tentative Agreement with the Union was signed that included
increasing this percentage to the following amounts:
·71% Effective January 1, 2025
·73% Effective January 1, 2026
·75% Effective January 1, 2027
If the maximum amount is not sufficient to provide such benefit, any excess amounts necessary shall be paid
for by the Employee through payroll deductions. The proposed change to the health care subsidy was not
included in the Successor MOU, because HACCC was awaiting an actuarial analysis of the change as required
CONTRA COSTA COUNTY Printed on 10/28/2024Page 1 of 2
powered by Legistar™
File #:24-2663,Version:1
by State law.
California Government Code, Section 7507 requires that local legislative boards must have an actuary consider
the future costs of changes in retirement benefits, or other post-employment benefits, and that those costs must
be published at a public meeting at least two weeks prior to the adoption of any changes in public retirement
plan benefits, or other post-employment benefits. The report provided to HACCC on August 15, 2024, by our
Actuary is attached. The attached report contains a summary of the current plan provisions that are based on an
actuarial valuation dated July 1, 2024. HACCC’s Actuary will also attend this meeting to answer any questions
Board members may have about the report. On December 3, 2024, the Board of Commissioners may consider,
and may take formal action, with respect to the proposed changes in health care benefits shown above for
current employees and current and future retirees who are eligible for health care coverage.
FISCAL IMPACT:
As shown in the valuation, the result of the health plan changes described herein, if implemented for all current
and future eligible retirees, will create a $21,292 increase in the Actuarially Determined Contribution, a $8,433
increase in the Normal Cost, and a $144,838 increase in the total Actuarial Accrued Liability.
CONSEQUENCE OF NEGATIVE ACTION:
It is expected that the Union will seek to reopen negotiations concerning health care reimbursements.
CONTRA COSTA COUNTY Printed on 10/28/2024Page 2 of 2
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Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 1
Table 1 presents a five-year projection based on these assumptions: There are no plan changes, the Authority contributes according
to the Funding Policy, assets earn 6.50% per year, the discount rate remains 6.50%, and the normal cost component of the ADC
increases 5.00% per year throughout the five-year period. Table 2 shows the trust contribution net of estimated benefit payments.
Table 1 Projected ADC - Before Proposed Change in Benefit Terms
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Actuarially Accrued Liability $ 11,815,156 $ 12,612,065 $ 13,375,126 $ 14,127,917 $ 15,746,840
Actuarial Value of Assets 3,987,111 5,011,784 6,035,878 7,085,308 8,209,727
Unfunded AAL $ 7,828,045 $ 7,600,281 $ 7,339,248 $ 7,042,609 $ 7,537,113
Amortization Period (Years) 15 14 13 12 11
Normal Cost End of Year $ 605,211 $ 635,472 $ 667,246 $ 700,608 $ 735,638
Amortization of UAAL 694,995 711,949 729,026 746,164 857,634
Trust Administration Expense 12,360 15,537 18,711 21,964 25,450
Actuarially Determined Contribution $ 1,312,566 $ 1,362,958 $ 1,414,983 $ 1,468,736 $ 1,618,722
Discount Rate 6.50% 6.50% 6.50% 6.50% 6.50%
Expected Return 6.50% 6.50% 6.50% 6.50% 6.50%
Normal Cost Growth Rate 5.00% 5.00% 5.00% 5.00% 5.00%
Trust Administration Expense 0.31% 0.31% 0.31% 0.31% 0.31%
Salary Scale 3.00% 3.00% 3.00% 3.00% 3.00%
Table 2 Projected Funding Policy Contribution – Before Proposed Change
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Est. Net Trust Contribution $ 754,142 $ 692,219 $ 655,441 $ 665,260 $ 770,008
Est. Pay-go 442,343 509,789 568,037 612,483 656,638
Est. Implied Subsidy 116,081 160,950 191,505 190,993 192,076
Funding Policy Contribution $ 1,312,566 $ 1,362,958 $ 1,414,983 $ 1,468,736 $ 1,618,722
Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 2
Tables 3 and 4 show the impact of the proposed amendment on the same projected amounts as Tables 1 and 2.
Table 3 Projected ADC – After Proposed Change in Benefit Terms
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Actuarially Accrued Liability $ 11,959,994 $ 12,774,751 $ 13,554,328 $ 14,317,866 $ 15,958,897
Actuarial Value of Assets 3,987,111 5,033,757 6,079,106 7,144,681 8,279,914
Unfunded AAL $ 7,972,883 $ 7,740,994 $ 7,475,222 $ 7,173,185 $ 7,678,983
Amortization Period (Years) 15 14 13 12 11
Normal Cost End of Year $ 613,644 $ 644,326 $ 676,542 $ 710,369 $ 745,887
Amortization of UAAL 707,854 725,130 742,532 759,999 873,777
Trust Administration Expense 12,360 15,605 18,845 22,149 25,668
Actuarially Determined Contribution $ 1,333,858 $ 1,385,061 $ 1,437,919 $ 1,492,517 $ 1,645,332
Discount Rate 6.50% 6.50% 6.50% 6.50% 6.50%
Expected Return 6.50% 6.50% 6.50% 6.50% 6.50%
Normal Cost Growth Rate 5.00% 5.00% 5.00% 5.00% 5.00%
Trust Administration Expense 0.31% 0.31% 0.31% 0.31% 0.31%
Salary Scale 3.00% 3.00% 3.00% 3.00% 3.00%
Table 4 Projected Funding Policy Contribution – After Proposed Change
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Est. Net Trust Contribution $ 775,434 $ 711,499 $ 668,497 $ 672,184 $ 779,360
Est. Pay-go 442,343 512,612 577,917 629,340 673,896
Est. Implied Subsidy 116,081 160,950 191,505 190,993 192,076
Funding Policy Contribution $ 1,333,858 $ 1,385,061 $ 1,437,919 $ 1,492,517 $ 1,645,332
The proposed change in benefit terms is to increase over a 3-year period the employer subsidy of retiree medical benefits from 70%
to 75% of the Bay Area Kaiser pre-Medicare premium.
Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 3
Proposed Amendment:
Beginning on January 1, 2025, HACCC will contribute a
larger share of the cost of retiree and dependent medical
costs. The current employer subsidy is capped at 70% of the
CalPERS Kaiser Region 1 pre-Medicare rate.
Current and Proposed Cap is Subject to Health Trend:
Since the HACCC contribution is a percentage of a medical premium
rate, we have assumed the cap would increase with health trend.
CalPERS refers to pre-Medicare plans as “Basic” plans.
A projection of Maximum Benefits:
Effect of the Amendment
We measured the effect of the proposed amendment if reflected as of July 1, 2024 for the 2024-2025 plan year. The proposed plan
amendment would increase the Actuarial Accrued Liability by $144,838 (or 1.2%) from $11,815,156 to $11,959,994. This relatively
small 1.2% increase relative to the subsidy increase (5%) is because post-Medicare plan benefits represent 2/3rds of the $12M plan
liability and unimpacted by the change (i.e., Medicare premiums are less than half the cost of Kaiser Basic premiums, which is well
under the current 70% cost-share let alone a 75% cost-share).
Percent Contribution
Calendar Year Current Proposed
2025 70% 71%
2026 70% 73%
2027 and after 70% 75%
Calendar Year Basic Trend Medicare Trend
2025 7.85% 5.75%
2026 7.70% 5.65%
2027 7.55% 5.55%
2028 7.40% 5.45%
2029 7.25% 5.35%
2030 7.10% 5.25%
2031 6.95% 5.15%
2032 6.80% 5.05%
2033 6.65% 4.95%
2034 6.50% 4.85%
2035 6.35% 4.75%
2036 6.20% 4.65%
2037 6.05% 4.55%
2038 5.90% 4.50%
2039 5.75% 4.50%
2040 5.60% 4.50%
2041 5.45% 4.50%
2042 5.30% 4.50%
2043 5.15% 4.50%
2044 and later 5.00% 4.50%
Calendar
Year
% of Kaiser
Premium Retiree Retiree+1
2024 70% $ 715 $ 1,430
2025 71% 790 1,580
2026 73% 851 1,702
2027 75% 915 1,831
2028 75% 983 1,966
2029 75% 1,054 2,108
1025 ESCOBAR STREET
MARTINEZ, CA 94553CONTRA COSTA COUNTY
Legislation Details (With Text)
File #: Version:124-2663 Name:
Status:Type:Discussion Item Passed
File created:In control:9/3/2024 HOUSING AUTHORITY
On agenda:Final action:9/10/2024 9/10/2024
Title:CONSIDER accepting the actuarial valuation of future annual costs of proposed changes to Other
Post-Employment Benefits to the Housing Authority’s health care medical premium subsidy for
employees and retirees affected by the proposed negotiated agreements.
Attachments:1. 2 HACCC Proposed OPEB Plan Change ADC Projection 2024-08-14.pdf
Action ByDate Action ResultVer.Tally
approvedHOUSING AUTHORITY9/10/2024 1 Pass 7:0
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Report Title:GOVERNMENT CODE 7507 COMPLIANCE - OTHER POST-EMPLOYMENT BENEFITS -
PROPOSED CHANGES FOR RETIREES
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ACCEPT the attached actuarial valuation of future annual costs of proposed changes to Other Post-
Employment Benefits to the Housing Authority’s (HACCC) health care medical premium subsidy for
employees and retirees affected by the proposed, negotiated agreements.
BACKGROUND:
On July 9, 2024, this Board adopted Resolution No. 5260 approving the Successor Memorandum of
Understanding (MOU) with Public Employees Union, Local #1/AFSCME (Union), providing for wages, non-
healthcare benefits, and other employment conditions for the term of July 1, 2024, through June 30, 2027.
Similarly, on July 9, 2024, this Board adopted Resolution No. 5261 regarding compensation and non-healthcare
benefits for the unrepresented employees of the Housing Authority of the County of Contra Costa.
Currently, HACCC pays 70% of the premium for the CalPERS Kaiser Premium plan, towards all health plans
offered by CalPERS. On June 26, 2024, a Tentative Agreement with the Union was signed that included
increasing this percentage to the following amounts:
·71% Effective January 1, 2025
·73% Effective January 1, 2026
·75% Effective January 1, 2027
If the maximum amount is not sufficient to provide such benefit, any excess amounts necessary shall be paid
for by the Employee through payroll deductions. The proposed change to the health care subsidy was not
included in the Successor MOU, because HACCC was awaiting an actuarial analysis of the change as required
CONTRA COSTA COUNTY Printed on 10/28/2024Page 1 of 2
powered by Legistar™
File #:24-2663,Version:1
by State law.
California Government Code, Section 7507 requires that local legislative boards must have an actuary consider
the future costs of changes in retirement benefits, or other post-employment benefits, and that those costs must
be published at a public meeting at least two weeks prior to the adoption of any changes in public retirement
plan benefits, or other post-employment benefits. The report provided to HACCC on August 15, 2024, by our
Actuary is attached. The attached report contains a summary of the current plan provisions that are based on an
actuarial valuation dated July 1, 2024. HACCC’s Actuary will also attend this meeting to answer any questions
Board members may have about the report. On December 3, 2024, the Board of Commissioners may consider,
and may take formal action, with respect to the proposed changes in health care benefits shown above for
current employees and current and future retirees who are eligible for health care coverage.
FISCAL IMPACT:
As shown in the valuation, the result of the health plan changes described herein, if implemented for all current
and future eligible retirees, will create a $21,292 increase in the Actuarially Determined Contribution, a $8,433
increase in the Normal Cost, and a $144,838 increase in the total Actuarial Accrued Liability.
CONSEQUENCE OF NEGATIVE ACTION:
It is expected that the Union will seek to reopen negotiations concerning health care reimbursements.
CONTRA COSTA COUNTY Printed on 10/28/2024Page 2 of 2
powered by Legistar™
Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 1
Table 1 presents a five-year projection based on these assumptions: There are no plan changes, the Authority contributes according
to the Funding Policy, assets earn 6.50% per year, the discount rate remains 6.50%, and the normal cost component of the ADC
increases 5.00% per year throughout the five-year period. Table 2 shows the trust contribution net of estimated benefit payments.
Table 1 Projected ADC - Before Proposed Change in Benefit Terms
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Actuarially Accrued Liability $ 11,815,156 $ 12,612,065 $ 13,375,126 $ 14,127,917 $ 15,746,840
Actuarial Value of Assets 3,987,111 5,011,784 6,035,878 7,085,308 8,209,727
Unfunded AAL $ 7,828,045 $ 7,600,281 $ 7,339,248 $ 7,042,609 $ 7,537,113
Amortization Period (Years) 15 14 13 12 11
Normal Cost End of Year $ 605,211 $ 635,472 $ 667,246 $ 700,608 $ 735,638
Amortization of UAAL 694,995 711,949 729,026 746,164 857,634
Trust Administration Expense 12,360 15,537 18,711 21,964 25,450
Actuarially Determined Contribution $ 1,312,566 $ 1,362,958 $ 1,414,983 $ 1,468,736 $ 1,618,722
Discount Rate 6.50% 6.50% 6.50% 6.50% 6.50%
Expected Return 6.50% 6.50% 6.50% 6.50% 6.50%
Normal Cost Growth Rate 5.00% 5.00% 5.00% 5.00% 5.00%
Trust Administration Expense 0.31% 0.31% 0.31% 0.31% 0.31%
Salary Scale 3.00% 3.00% 3.00% 3.00% 3.00%
Table 2 Projected Funding Policy Contribution – Before Proposed Change
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Est. Net Trust Contribution $ 754,142 $ 692,219 $ 655,441 $ 665,260 $ 770,008
Est. Pay-go 442,343 509,789 568,037 612,483 656,638
Est. Implied Subsidy 116,081 160,950 191,505 190,993 192,076
Funding Policy Contribution $ 1,312,566 $ 1,362,958 $ 1,414,983 $ 1,468,736 $ 1,618,722
Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 2
Tables 3 and 4 show the impact of the proposed amendment on the same projected amounts as Tables 1 and 2.
Table 3 Projected ADC – After Proposed Change in Benefit Terms
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Actuarially Accrued Liability $ 11,959,994 $ 12,774,751 $ 13,554,328 $ 14,317,866 $ 15,958,897
Actuarial Value of Assets 3,987,111 5,033,757 6,079,106 7,144,681 8,279,914
Unfunded AAL $ 7,972,883 $ 7,740,994 $ 7,475,222 $ 7,173,185 $ 7,678,983
Amortization Period (Years) 15 14 13 12 11
Normal Cost End of Year $ 613,644 $ 644,326 $ 676,542 $ 710,369 $ 745,887
Amortization of UAAL 707,854 725,130 742,532 759,999 873,777
Trust Administration Expense 12,360 15,605 18,845 22,149 25,668
Actuarially Determined Contribution $ 1,333,858 $ 1,385,061 $ 1,437,919 $ 1,492,517 $ 1,645,332
Discount Rate 6.50% 6.50% 6.50% 6.50% 6.50%
Expected Return 6.50% 6.50% 6.50% 6.50% 6.50%
Normal Cost Growth Rate 5.00% 5.00% 5.00% 5.00% 5.00%
Trust Administration Expense 0.31% 0.31% 0.31% 0.31% 0.31%
Salary Scale 3.00% 3.00% 3.00% 3.00% 3.00%
Table 4 Projected Funding Policy Contribution – After Proposed Change
Plan Year 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Est. Net Trust Contribution $ 775,434 $ 711,499 $ 668,497 $ 672,184 $ 779,360
Est. Pay-go 442,343 512,612 577,917 629,340 673,896
Est. Implied Subsidy 116,081 160,950 191,505 190,993 192,076
Funding Policy Contribution $ 1,333,858 $ 1,385,061 $ 1,437,919 $ 1,492,517 $ 1,645,332
The proposed change in benefit terms is to increase over a 3-year period the employer subsidy of retiree medical benefits from 70%
to 75% of the Bay Area Kaiser pre-Medicare premium.
Projection of Actuarially Determined Contribution (ADC)
Housing Authority of Contra Costa County
Actuarial Analysis of Proposed OPEB Plan Change
Based on an Actuarial Valuation as of July 1, 2024 Page 3
Proposed Amendment:
Beginning on January 1, 2025, HACCC will contribute a
larger share of the cost of retiree and dependent medical
costs. The current employer subsidy is capped at 70% of the
CalPERS Kaiser Region 1 pre-Medicare rate.
Current and Proposed Cap is Subject to Health Trend:
Since the HACCC contribution is a percentage of a medical premium
rate, we have assumed the cap would increase with health trend.
CalPERS refers to pre-Medicare plans as “Basic” plans.
A projection of Maximum Benefits:
Effect of the Amendment
We measured the effect of the proposed amendment if reflected as of July 1, 2024 for the 2024-2025 plan year. The proposed plan
amendment would increase the Actuarial Accrued Liability by $144,838 (or 1.2%) from $11,815,156 to $11,959,994. This relatively
small 1.2% increase relative to the subsidy increase (5%) is because post-Medicare plan benefits represent 2/3rds of the $12M plan
liability and unimpacted by the change (i.e., Medicare premiums are less than half the cost of Kaiser Basic premiums, which is well
under the current 70% cost-share let alone a 75% cost-share).
Percent Contribution
Calendar Year Current Proposed
2025 70% 71%
2026 70% 73%
2027 and after 70% 75%
Calendar Year Basic Trend Medicare Trend
2025 7.85% 5.75%
2026 7.70% 5.65%
2027 7.55% 5.55%
2028 7.40% 5.45%
2029 7.25% 5.35%
2030 7.10% 5.25%
2031 6.95% 5.15%
2032 6.80% 5.05%
2033 6.65% 4.95%
2034 6.50% 4.85%
2035 6.35% 4.75%
2036 6.20% 4.65%
2037 6.05% 4.55%
2038 5.90% 4.50%
2039 5.75% 4.50%
2040 5.60% 4.50%
2041 5.45% 4.50%
2042 5.30% 4.50%
2043 5.15% 4.50%
2044 and later 5.00% 4.50%
Calendar
Year
% of Kaiser
Premium Retiree Retiree+1
2024 70% $ 715 $ 1,430
2025 71% 790 1,580
2026 73% 851 1,702
2027 75% 915 1,831
2028 75% 983 1,966
2029 75% 1,054 2,108
1025 ESCOBAR STREET
MARTINEZ, CA 94553CONTRA COSTA COUNTY
Legislation Details (With Text)
File #: Version:124-2665 Name:
Status:Type:Consent Item Passed
File created:In control:9/3/2024 HOUSING AUTHORITY
On agenda:Final action:9/10/2024 9/10/2024
Title:RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter
June 30th, 2024.
Attachments:1. Investment Report for QE 06-30-24.pdf
Action ByDate Action ResultVer.Tally
approvedHOUSING AUTHORITY9/10/2024 1 Pass 7:0
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Report Title:INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30, 2024
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter June 30,
2024.
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 $27,117.23 in interest earnings for the quarter ending June 30th, 2024. 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.
CONTRA COSTA COUNTY Printed on 10/28/2024Page 1 of 2
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File #:24-2665,Version:1
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,2024 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
Unrestricte
d Interest
Earned
Unrestricted
Interest Earned
Unrestricted
Interest Earned
$215.92 $21,490.18 $5,411.13
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).
CONTRA COSTA COUNTY Printed on 10/28/2024Page 2 of 2
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HOUSING AUTHORITY OF CONTRA COSTA COUNTY
INVESTMENT REPORT : PORTFOLIO HOLDINGS BY TYPE
For Period Ending: 6/30/2024
Cantella & Company
Fidelity Market Reserves Money Market 44,081.97 0.450% ongoing ongoing 44,081.97
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
Federal Home Loan bank Govt Agency 115,000.00 1.350% 1/27/22 1/27/26
121,214.25
Federal Home Loan bank Govt Agency 110,000.00 1.750% 2/04/22 1/27/27
119,588.08
American Express national Bank Certificate of Deposit 247,000.00 2.000% 3/09/22 3/09/27
271,713.53
Capital One Bank, USA Certificate of Deposit 230,000.00 2.250% 3/23/22 3/23/27
255,889.18
Ally Bank Certificate of Deposit 220,000.00 3.100% 5/19/22 5/09/25
240,291.84
BMO Harris Bank Certificate of Deposit 150,000.00 3.300% 6/15/22 6/15/27
174,763.56
Morgan Stanleyt Bank Certificate of Deposit 150,000.00 3.750% 6/30/22 6/30/27
178,140.41
Discover Bank Certificate of Deposit 140,000.00 3.300% 7/20/22 7/20/26
158,492.66
Sallie Mae Bank Certificate of Deposit 173,000.00 3.300% 7/20/22 7/21/25
190,158.28
Federal Home Loan bank Govt Agency 150,000.00 4.000% 9/02/22 8/25/27 179,884.93
Capital One NA Certificate of Deposit 245,000.00 4.300% 9/30/22 9/30/27
297,703.86
CIBC Bank USA Certificate of Deposit 150,000.00 4.350% 5/16/23 5/15/28
182,642.88
Texas Trust Credit Union Certificate of Deposit 150,000.00 5.000% 8/09/23 8/09/27
180,020.55
Greenstate Credit Union Certificate of Deposit 130,000.00 5.000% 8/29/23 8/29/28
162,535.62
Wells Fargo Bank Certificate of Deposit 150,000.00 4.450% 12/12/23 12/12/28
183,411.58
Lineage Bank Certificate of Deposit 160,000.00 5.000% 1/24/24 1/24/29
200,043.84
Nicolet National Bank Certificate of Deposit 100,000.00 4.250% 3/25/24 9/08/28
118,956.16
Toyota Financial Bank Certificate of Deposit 100,000.00 4.600% 5/24/24 5/24/29
123,012.60
GRAND TOTALS 3,439,081.97 3,934,445.85
L.A.I.F. (Acct # 25-07-003)Liquid Account 115,074.52 4.55%ongoing ongoing 115,074.52
GRAND TOTALS 3,554,156.49 4,049,520.37
Yield Investment
Date
Maturity
Date
Estimated
Value@
Maturity Date
Issuer Investment
Type
Amount
Invested
Invesment Report for Board QE 06-30-24
(Investments Rpt to June 24)Last Printed: 7/15/2024
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
INVESTMENT REPORT BY FUND
Fidelity Market Reserves 44,081.97 18,337.98 5,141.75 20,602.24
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 83,487.89 16,512.11
Federal Home Loan bank 115,000.00 115,000.00
Federal Home Loan bank 110,000.00 110,000.00
American Express national Bank 247,000.00 247,000.00
Capital One Bank, USA 230,000.00 230,000.00
Ally Bank 220,000.00 220,000.00
BMO Harris Bank 150,000.00 150,000.00
Morgan Stanleyt Bank 150,000.00 150,000.00
Discover Bank 140,000.00 140,000.00
Sallie Mae Bank 173,000.00 173,000.00
Federal Home Loan bank 150,000.00 150,000.00
Capital One NA 245,000.00 245,000.00
CIBC Bank USA 150,000.00 150,000.00
Texas Trust Credit Union 150,000.00 150,000.00
Greenstate Credit Union 130,000.00 130,000.00
Wells Fargo Bank 150,000.00 150,000.00
Lineage Bank 160,000.00 160,000.00
Nicolet National Bank 100,000.00 100,000.00
Toyota Financial Bank 100,000.00 100,000.00
3,439,081.97 101,825.87 673,141.75 2,664,114.35 - -
115,074.52 - - - 115,074.52
3,554,156.49 101,825.87 673,141.75 2,664,114.35 - 115,074.52
Public
Housing Management Central Office
For Period Ending 6/30/2024
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)
Invesment Report for Board QE 06-30-24
(Investments Rpt to June 24)Last Printed: 7/15/2024
HOUSING AUTHORITY OF CONTRA COSTA COUNTY
Report per CGC 53646 CURRENT MARKET VALUE
For Period Ending 6/30/2024
Cantella & Company
Fidelity Market Reserves Money Market ongoing 44,081.97 44,081.97 0.45%
State Bank of India Certificate of Deposit 5/28/2025 140,000.00 134,842.40 1.10%
Texas Exchange Bank Certificate of Deposit 6/19/2025 105,000.00 100,811.55 1.00%
State Bank of India Certificate of Deposit 4/27/2026 105,000.00 97,829.55 1.00%
Sally Mae Bank Certificate of Deposit 9/22/2026 75,000.00 68,973.00 1.05%
Synchrony Bank Certificate of Deposit 9/24/2026 100,000.00 91,736.00 0.95%
Federal Home Loan bank Govt Agency 1/27/2026 115,000.00 108,637.05 1.35%
Federal Home Loan bank Govt Agency 1/27/2027 110,000.00 102,276.90 1.75%
American Express national Bank Certificate of Deposit 3/09/2027 247,000.00 229,136.96 2.00%
Capital One Bank, USA Certificate of Deposit 3/23/2027 230,000.00 214,594.60 2.25%
Ally Bank Certificate of Deposit 5/09/2025 220,000.00 215,866.20 3.10%
BMO Harris Bank Certificate of Deposit 6/15/2027 150,000.00 143,473.50 3.30%
Morgan Stanleyt Bank Certificate of Deposit 6/30/2027 150,000.00 145,272.00 3.75%
Discover Bank Certificate of Deposit 7/20/2026 140,000.00 135,696.50 3.30%
Sallie Mae Bank Certificate of Deposit 7/21/2025 173,000.00 169,655.91 3.30%
Federal Home Loan bank Govt Agency 8/25/2027 150,000.00 148,643.00 4.00%
Capital One NA Certificate of Deposit 9/30/2027 245,000.00 241,060.40 4.30%
CIBC Bank USA Certificate of Deposit 5/15/2028 150,000.00 148,197.00 4.35%
Texas Trust Credit Union Certificate of Deposit 8/09/2027 150,000.00 150,639.00 5.00%
Greenstate Credit Union Certificate of Deposit 8/29/2028 130,000.00 131,847.00 5.00%
Wells Fargo Bank Certificate of Deposit 12/12/2028 150,000.00 149,163.00 4.45%
Lineage Bank Certificate of Deposit 1/24/2029 160,000.00 157,801.60 5.00%
Nicolet National Bank Certificate of Deposit 9/08/2028 100,000.00 98,579.00 4.25%
Toyota Financial Bank Certificate of Deposit 5/24/2029 100,000.00 100,253.00 4.60%
3,439,081.97 3,329,067.09
L.A.I.F. (Acct # 25-07-003)Liquid Account ongoing 115,074.52 115,074.52 4.55%
GRAND TOTALS 3,554,156.49 3,444,141.61
Maturity
Date
Amount
Invested
Current Market
Value
(at 6/30/24)
YieldIssuerInvestment
Type
Invesment Report for Board QE 06-30-24
(Investments Rpt to June 24)Last Printed: 7/15/2024
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 44,081.97 48.91 20.35 5.70 22.86 - -
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 100,000.00 234.25 195.57 - 38.68 -
Federal Home Loan bank 115,000.00 382.81 - - 382.81 -
Federal Home Loan bank 110,000.00 474.66 - - 474.66 -
American Express national Bank 247,000.00 1,218.08 - - 1,218.08 -
Capital One Bank, USA 230,000.00 1,276.03 - - 1,276.03 -
Ally Bank 220,000.00 1,681.64 - - 1,681.64 -
BMO Harris Bank 150,000.00 1,220.55 - - 1,220.55 -
Morgan Stanleyt Bank 150,000.00 1,386.99 - - 1,386.99 -
Discover Bank 140,000.00 1,139.18 - - 1,139.18 -
Sallie Mae Bank 173,000.00 1,407.70 1,407.70 -
Federal Home Loan bank 150,000.00 1,479.45 - - 1,479.45 -
Capital One NA 245,000.00 2,597.67 - - 2,597.67 -
CIBC Bank USA 150,000.00 1,608.90 1,608.90 -
Texas Trust Credit Union 150,000.00 1,849.32 - 1,849.32
Greenstate Credit Union 130,000.00 1,602.74 - - 1,602.74
Wells Fargo Bank 150,000.00 1,645.89 - - 1,645.89
Lineage Bank 160,000.00 1,972.60 - - 1,972.60
Nicolet National Bank 100,000.00 1,047.95 - - 1,047.95
Toyota Financial Bank 100,000.00 466.30 - 466.30 -
- 3,439,081.97 25,833.33 215.92 4,127.23 21,490.18 - -
L.A.I.F. (Acct # 25-07-003)115,074.52 1,283.90
GRAND TOTALS 3,554,156.49 27,117.23 215.92 4,127.23 21,490.18 1,283.90 -
Interest Earned this Quarter by Fund
Amount
Invested
Interest
Earned
this Qtr
For Period Ending 6/30/2024
150189
Invesment Report for Board QE 06-30-24
(Investments Rpt to June 24)Last Printed: 7/15/2024
1025 ESCOBAR STREET
MARTINEZ, CA 94553CONTRA COSTA COUNTY
Legislation Details (With Text)
File #: Version:124-2664 Name:
Status:Type:Consent Item Passed
File created:In control:9/3/2024 HOUSING AUTHORITY
On agenda:Final action:9/10/2024 9/10/2024
Title:ADOPT Resolution No. 5263 to invest HUD (U.S. Department of Housing and Urban Development)
and non-HUD funds according to the Housing Authority of Contra Costa County's Investment Policy.
Attachments:1. 3 HACCC Investment Policy.pdf, 2. 3 Annual Investment Policy Resolution 5263 Form.pdf, 3. 2024-
09-10 HA Res 5263.pdf
Action ByDate Action ResultVer.Tally
adoptedHOUSING AUTHORITY9/10/2024 1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Report Title:ANNUAL REVIEW AND APPROVAL OF INVESTMENT POLICY
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution No. 5263 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;
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·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 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
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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. 5263 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.
CONTRA COSTA COUNTY Printed on 10/28/2024Page 3 of 3
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1025 ESCOBAR STREET
MARTINEZ, CA 94553CONTRA COSTA COUNTY
Legislation Details (With Text)
File #: Version:124-2668 Name:
Status:Type:Presentation Agenda Ready
File created:In control:9/4/2024 HOUSING AUTHORITY
On agenda:Final action:9/10/2024
Title:ACCEPT presentation concerning the Public Housing Assessment System Financial Score for the
fiscal year ending in 2023. (No fiscal impact)
Attachments:1. 5 HACCC FYE 2023 PHARS Substandard Financial Response Signed.pdf, 2. 6 PHAS Financial
Presentation 9-10-24.pdf
Action ByDate Action ResultVer.Tally
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Report Title:PRESENTATION CONCERNING THE PUBLIC HOUSING ASSESSMENT SYSTEM
FINANCIAL SCORE FOR FYE 2023
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ACCEPT presentation concerning the Public Housing Assessment System Financial Score for FYE 2023.
BACKGROUND:
Staff will provide the Board with a presentation on the Housing Authority’s Public Housing Assessment System
Financial Score for FYE 2023.
FISCAL IMPACT:
Information item only.
CONSEQUENCE OF NEGATIVE ACTION:
None. Informational item.
CONTRA COSTA COUNTY Printed on 10/28/2024Page 1 of 1
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Housing Authority of the
County of Contra Costa
PHAS Financials Presentation
September 10, 2024
Joseph Villarreal
Executive Director
2
Public Housing Funding
National Low -Income Housing Coalition
Public Housing: Where Do We Stand?
Oct 17, 2019
“Throughout the nation, public housing is in pretty rough shape. The Public Housing
Capital Fund, which Congress provides to pay for repairs, has been underfunded for
so long that we now lose more than 10,000 public housing apartments each year
because they are no longer habitable. Some public housing agencies have endured
financial challenges and mismanagement that leads to HUD taking them over.
The best response to this crisis is for Congress to provide the estimated $70 billion
necessary to repair public housing and stop the unnecessary loss of these scarce
affordable homes. Congress has been unwilling to do that. Lacking the money
needed to make urgent repairs, HUD is turning more and more to alternative
solutions that “reposition” public housing to solutions programs that involve
private financing and rely on vouchers.”
Public Housing: Where Do We Stand? (cont.)
Public Housing ‘Repositioning’
“HUD’s Office of Public and Indian Housing (PIH) sent a letter to public housing
agency (PHA) executive directors dated November 13, 2018 signaling its intent to
remove itself from administering the public housing program. HUD’s immediate
goal was to “reposition” 105,000 public housing units by September 30, 2019.
Because Congress has failed to provide adequate appropriations for the Public
Housing Capital Fund for many years, there is an approximate $70 billion backlog in
capital needs (public housing maintenance and repairs). HUD points to that backlog
as the reason to provide PHAs with “additional flexibilities” so they can “reposition”
public housing.”
National Capital Needs
•2024 Capital Fund = $3.2 billion
•2024 Backlog = $75 billion
•2030 Projected Backlog = $89 billion (HUD)
HACCC Capital Needs
•2024 Capital Fund = $3.98 million
•2021 El Pueblo (Pittsburg) 0-2 yr Needs = $16.8 million
•2021 Bayo Vista (Rodeo) 0-2 yr Needs = $36.3 million
Operating Subsidy History
Year Proration
2013 81.86%
2014 88.79%
2015 85.36%
2016 90.21%
2017 93.10%
2018 94.74%
2019 96.54%
2020 112% (COVID Supplemental)
2021 95.23%
2022 98.25%
Unpaid Rent in Public Housing
September 2023
Property Code Rent Balance Approximate # of non-payers
(other than“Past” Status)
# of “Past” Status Current & On Notice
Residents
CA001 $62,122.16 6 2 49
CA011 $7,124.32 2 4 47
CA045a $43,132.30 19 5 100
CA045b $26,223.45 7 3 40
CA004 $27,935.70 9 5 39
CA008 $50,128.26 6 0 28
CA012 $24,324.47 2 3 39
CA010 $204,177.26 39 14 239
CA005 $171,722.56 25 10 171
CA003 $10,444.52 4 0 33
CA015 $65,647.31 13 8 98
CA013 $44,076.33 12 3 49
Total $737,058.64 144 (15.5%)57 (6.1%)932
Shortfall Funding History
Calendar Year Fund Type Award Amount
2020 CARES
Shortfall
$808,551 awarded
$808,551 disbursed 5/06/20
Not awarded
2021 Shortfall $1,344,113 awarded
Only $672,056.50 disbursed 3/23/22
2022 Shortfall $2,327,481 awarded
Only $1,163,741 disbursed 5/08/24
2023 Shortfall Not awarded
2024 Shortfall Pending
Improvement Actions Taken
1.Plan to offset increased turnover costs ($1.3 million from 2022 to 2023) with
additional HUD shortfall funding if awarded.
2.In-depth analysis of operations and capital fund charges combined with re/training
staff in these nuances, resulted in an improvement in Public Housing’s financial
position by $1,621,000 in FYE 2024.
3.Updated accrued charges for DeAnza’s ground lease with Casa de Serena generated
$693,101 for public housing in FYE 24.
4.Despite audit penalty in FYE 2023, booking estimated PG&E costs stabilizes HUD
funding going forward.
Financial Score History
Fiscal Year End Financial Score
2014 18.50
2015 15.83
2016 18.15
2017 18.61
2018 19.51
2019 19.11
2020 18.24
2021 19.35
2022 19.11
2023 13.58
(15.09 prior to penalty)
2024 19.18 (unaudited)