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AY HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Richard J.Martinez,Executive Director
DATE: March 19, 1996
SUBJECT: HOUSING AUTHORITY INVESTMENT POLICY
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & _jjACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ADOPT Resolution No.3770 approving the Investment Policy of the Housing Authority of the County of Contra Costa
and AUTHORIZE execution of the policy by the Executive Director of the Housing Authority.
11. FINANCIAL IMPACT:
None. Policy only.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The U. S.Department of Housing&Urban Development has established requirements governing cash management and
investments for certain funds under the control of Public Housing Authorities(PIH Notice 95-27),and all Housing Authorities
are required to comply with these HUD regulations.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not adopt Resolution No. 3770,The Housing Authority will not be in
compliance with I-IUD regulations.
CONTINUED ON ATTACHMENT: YES SIGNATURE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON March 19. 1996 ' APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT none
TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE
MINUTES OF THE BOARD OF
ABSENT.*- ABSTAIN: COMMISSIONERS ON THE DATE SHOWN.
,ATTESTED
larch 19 1996 --
PHIL BATCHELOR, CLERK OF
THE BOARD OF COMMISSIONERS
AND TY ADMINISTRATOR
By DEPUTY
4CO
' THE BOARD OF COMMISSIONERS
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO. 3770
RESOLUTION ADOPTING AN INVESTMENT POLICY
AND AUTHORIZING EXECUTION BY THE EXECUTIVE DIRECTOR
OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
WHEREAS,the U. S. Department of Housing&Urban Development has established
requirements governing cash management and approved investment instruments
for certain funds under the control of Public Housing Authorities(PIH Notice
95-27); and
WHEREAS,the Legislature of the State of California has declared that the deposit
and investment of public funds by local officials and local agencies is an issue
of statewide concern[CGC 53600.6]: and
WHEREAS, all Housing Authorities are required to comply with these HUD and State
regulations: 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 U.S. department of Housing&Urban Development Notice
PIH 95-27 and California Government Code Sections 5922 and 53601; and
WHEREAS,the fiscal officer of the Housing Authority of the County of Contra Costa
shall annually prepare and submit a statement of investment policy and such
policy, and any changes thereto, shall be considered by the legislative body at a
public meeting [CGC 53646(a)]; and
NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF
COMMISSIONERS of the Housing Authority of the County of Contra
Costa hereby adopts the attached Investment Policy; and
BE IT FURTHER RESOLVED that the Investment Policy shall be used to invest
funds in a manner which will provide the highest investment return with the
maximum security while meeting the daily cash flow demands of the entity
and conforming to all statutes governing the investment of the Housing
Authority of the County of Contra Costa funds.
PASSED AND ADOPTED ON March 19, 1996 by the
following vote of the Commissioners.
AYES: COT-1MISSIONERS ROGERS, BISHOP, DeSAULNIER, TORLAKSON and SMITH
NOES: NONE
ABSENT: NONE
ABSTAIN:NONE
HOUSING AUTHORITY
of the
COUNTY OF CONTRA COSTA
INVESTMENT POLICY
The purpose of this investment policy is to set forth the procedures,
guidelines and criteria for the operation of the investment program of the
Housing Authority of the County of Contra Costa. This guideline covers
the investment of funds, not required for immediate disbursement, as
required by the State of California Government Code and/or the Department
of Housing and Urban Development.
I. INVESTMENT OBJECTIVES
The following objectives are ranked in order of importance.
However, within the constraints imposed by the desire for safety of
principal and liquidity, the investment goal is to obtain the highest
possible yield. Speculative activity on securities is not permitted.
A. To assure the safety of principal.
B. To retain liquidity to meet both anticipated and
unexpected cash needs of the Housing Authority of the
County of Contra Costa.
C. To attain the best available yield while retaining liquidity
and minimizing risk.
II. AUTHORIZED INVESTMENT SECURITIES
A. Investments not subject to insurance or collateral security:
1 Direct obligations of the Federal Government,
backed by the full faith and credit of the United States.
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HOUSING AUTHORITY
of the
COUNTY OF CONTRA COSTA
INVESTMENT POLICY - Continued.
2. Municipal Depository Funds (Local Agency Investment
Fund with the State of California), as permitted by the
respective State and Federal regulations.
B. Investments that require insurance and/or collateral security:
1. Certificates of Deposit in any FDIC insured U.S.
financial institution with which the Housing Authority
may have a business relationship. Maturity not to
exceed (1) year.
2. Demand and savings deposits at commercial banks,
mutual saving banks, savings and loan associations and
credit unions. Care should be taken that withdrawals
may be made on demand without loss of interest and
without penalty.
III. INVESTMENT PRACTICES
A. In addition to the primary objectives of safety of principal and
liquidity of funds, the underlying goal is to maximize the rate
of return. Within the constraints of liquidity to meet cash flow
needs, the portfolio may be shifted to take best advantage of
rising or falling interest rates.
B. The investment authority will be with the Executive Director
who will be directly responsible to the Board of
Commissioners. The Executive Director may delegate the
authority to implement the Investment Policy.
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' HOUSING AUTHORITY C q1
of the
COUNTY OF CONTRA COSTA
INVESTMENT POLICY - Continued
C. A record of all investments shall be maintained by the Fiscal
Director. Investment reports will be provided to the Board of
Commissioners at least quarterly, or upon request.
D. The Housing Authority will not normally take delivery of
investment securities purchased. Timely confirmation of the
sale and/or safekeeping receipt giving full particulars of the
transaction and security purchased will be required. When a
confirmation is accepted in lieu of a safekeeping receipt, such
confirmation must indicate that the securities are held in
safekeeping and the location.
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