Title
(City Council/Housing Authority) Approval of the 2025 Sacramento Housing and Redevelopment Agency Proposed Budget and Adopting a Multi-Family Loan and Mortgage Revenue Bond Application Schedule [Noticed 11/01/2024;11/08/2024 and 11/15/2024]
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FileID
File ID: 2024-01784
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Location
Location: Citywide
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Recommendation
Recommendation: Conduct a public hearing and upon conclusion: 1) adopt a City Council Resolution: a) approving the 2025 proposed budget for the Sacramento Housing and Redevelopment Agency (SHRA or Agency); b) delegating authority to the Agency to administer certain federal funds; c) authorizing the Agency to submit grant applications for activities within the jurisdiction of the Agency; d) authorizing the Agency to enter into contracts, make fund transfers, transfer project appropriations, amend the Agency budget and to undertake other actions necessary to implement the delegated authorizations; and e) consent to the Agency’s submittal of the annual housing operating budgets and application for Capital Fund Plan funding to HUD. 2) adopt a City Council Resolution adopting a Multi-Family Loan and Mortgage Revenue Bond Application Schedule that corresponds with California Tax Credit Allocation Committee and California Debt Limit Allocation Committee application deadlines. 3) adopt a Housing Authority Resolution: a) approving the 2025 proposed budget for the Housing Authority of the City of Sacramento (Authority); b) delegating authority to administer certain federal funds; c) authorizing the Executive Director to submit grant applications for activities within the jurisdiction of the Authority; d) authorizing the Executive Director to submit the annual housing operating budgets to HUD and the application to HUD for Capital Fund Plan funding; and e) authorizing the Executive Director to enter into contracts, make fund transfers, transfer project appropriations, amend the Agency budget and undertake other actions necessary to implement the delegated authorizations.
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Contact
Contact: Irene de Jong, Director of Finance, (916) 440-1373, idejong@shra.org; Sacramento Housing and Redevelopment Agency
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Presenter
Presenter: Irene de Jong, Director of Finance, (916) 440-1373, idejong@shra.org; Sacramento Housing and Redevelopment Agency
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Attachments
Attachments:
01-Description/Analysis
02-Attachment 1 - 2025 Background
03-City Council Resolution - Budget Approval
04-Exhibit A - Summary of Agency 2025 Budget
05-Housing Authority Resolution - Budget Approval
06-Exhibit B - Summary of Agency 2025 Budget
07-Exhibit B - 1 2025 City Public Housing Asset Management Projects (AMP) and
Central Office Cost Center (COCC) Budget
08-Exhibit B-2 HUD Resolution Approving the 2025 City Public Housing Asset
Management Projects (AMP) and Central Office Cost Center (COCC)
09-City Council Resolution Multi-Family Loan and Mortgage Revenue Bond Application
Schedule
10-Exhibit C Multi-Family Loan and Mortgage Revenue Bond Application Schedule
11-Affordable Housing 2025 Budget Pipeline
12-Proposed Agency 2025 Budget
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Description/Analysis
IssueDetail
Issue Detail: The annual budget of the Sacramento Housing and Redevelopment Agency (Agency) incorporates the budgets of the Housing Authority of the City of Sacramento, the Housing Authority of the County of Sacramento, and the administration of specific funds on behalf of the City and County of Sacramento.
Public hearing notices were published in the Sacramento Bee on November 1, November 8, and November 15, 2024.
The Agency proposes a balanced budget in the amount of $327.1 million representing the operational activities and projects for 2025. The 2025 proposed budget represents a slight increase in overall spending of approximately $1.4 million compared with the prior year. This change in annual budget appropriations is primarily the result of the following: (1) the increase in Housing Assistance Payments of approximately $13.5 million is estimated based on Federal Estimates of program allowances, the ongoing effort to lease up additional vouchers as well as the overall increase in voucher cost due to the high cost of housing in the area; (2) expected wind-down of the Emergency Rental Assistance Program, which accounts for a decrease of $3 million in planned expenditures; and a (3) decrease in Public Services, which accounts for a $2.5 million decrease in planned expenditures. Capital Projects are also estimated to decrease a total of $1.2 million to approximately $61.2 million. Full-time employees (FTE) decreased by 5 FTE’s, from 320 to 315, as a result of winding down programs funded by one-time revenue sources.
The proposed 2025 budget provides a plan by which the Agency operates in an efficient manner and in compliance with funding source regulatory requirements and the Government Accounting Standards Board. The Agency’s budget and fiscal year is the calendar year from January 1st through December 31st. The City does not provide General Fund support for the Agency’s operating budget, only for support of the Shelter programs as designated by the City of Sacramento.
Some of the guiding principles used to develop the Agency’s budget include:
• Protecting “core services” to the greatest extent possible, with the delivery of housing programs, public services and capital projects being a major priority.
• Managing program activities by focusing on the efficiency of program delivery and the maximization of results.
• Considering the overall financial health of the organization, not just the cash flow from year to year.
• Using partnerships with public entities, community-based organizations, and private entities whenever practicable.
• Developing budget plans that deal with the immediate needs of the Agency and employing strategies that address the long-term needs of the communities we serve.
The chart below shows the budget trends for the past four years. All revenues and expenses were adopted as of the prior year of 2021.
|
Calendar Year 2025 Proposed Budget ($ In Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2023 |
2024 |
2025 |
Variance |
|
|
|
Budget |
Budget |
Budget |
Budget |
(2024 to 2025) |
|
OPERATIONS |
|
|
|
|
|
|
|
|
Salaries and Benefits |
|
38.7 |
42.0 |
38.4 |
33.7 |
(4.7) |
-12.2% |
|
Services and Supplies |
|
24.1 |
26.0 |
24.0 |
23.3 |
(0.7) |
-2.9% |
|
Housing Assistance Payments |
|
130.7 |
154.6 |
186.4 |
199.9 |
13.5 |
7.2% |
|
Emergency Rental Assistance Payments |
|
66.7 |
15.6 |
3.0 |
0.0 |
(3.0) |
-100.0% |
|
Debt Service |
|
2.2 |
2.2 |
2.3 |
2.3 |
0.0 |
0.0% |
|
Financial Transactions |
|
0.6 |
0.6 |
0.9 |
0.9 |
0.0 |
0.0% |
|
Public Services |
|
5.7 |
9.7 |
8.3 |
5.8 |
(2.5) |
-30.1% |
|
Subtotal |
|
$268.7 |
$250.7 |
$263.3 |
$265.9 |
$2.6 |
1.0% |
|
|
|
|
|
|
|
|
|
|
CAPITAL PROJECTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
$78.4 |
$89.4 |
$62.4 |
$61.2 |
(1.2) |
-1.9% |
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
$347.1 |
$340.1 |
$325.7 |
$327.1 |
$1.4 |
0.4% |
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PolicyConsiderations
Policy Considerations: The actions recommended in this report are consistent with adopted Consolidated Plan goals, the annual Housing Operating budget, the Capital Fund Plan, and adopted Agency policies.
This report also recommends the adoption of the Agency’s Multi-Family Loan and Mortgage Revenue Bond 2025 Application Schedule and anticipated funding for Agency-funded projects. The schedule will allow applicants to apply for funding on certain dates corresponding to the California Tax Credit Allocation Committee (TCAC) and California Debit Limit Allocation Committee (CDLAC) application deadlines.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed actions are administrative and fiscal activities and do not make any commitments to, or give approvals for, specific projects or activities which have the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, the proposed actions do not constitute a project subject to environmental review under the CEQA per Guidelines Section 15378(b). Environmental Review for specific projects will be completed prior to any discretionary action(s) being carried out with regard to such projects.
National Environmental Policy Act (NEPA): The proposed actions are administrative and fiscal activities and do not make any commitments to, or give approvals for, specific projects or activities and are exempt under the NEPA per 24 CFR 58.34(a)(2) and (3). Environmental Review for specific projects will be completed prior to any choice limiting action(s) being carried out with regard to such projects.
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Sustainability
Sustainability: Not Applicable.
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Commission/Committee Action
Commission/Committee Action: Sacramento Housing and Redevelopment Commission: Sacramento Housing and Redevelopment Commission conducted 2025 budget workshops at its August 7, August 21, September 18, and October 2, 2024, meetings. At its November 20, 2024, meeting, the Commission approved this item.
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RationaleforRecommendation
Rationale for Recommendation: The proposed budget provides a fiscal strategy for operations and capital projects during 2025. The budget is in balance and complies with applicable federal, state, and local regulations on the use of the funds.
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FinancialConsiderations
Financial Considerations: The 2025 proposed budget recommends total expenses of $327.1 million, with the Housing Assistance Payments budget at $199.9 million, the Operating budget at $265.9 million; the Capital Project budget at $61.2 million; the Public Services budget at $5.8 million; and the Debt Service budget at $2.3 million. The 2025 proposed budget of $327.1 million represents a net increase of $1.4 million, or a 0.4% percent overall increase compared with the total 2024 Adopted budget. This net increase is due primarily to the increase in anticipated expenditures for Housing Assistance Payments.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not Applicable.
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