“Local government administrators will need to take safeguards to ensure compliance and either put into place internal controls or select an external consulting firm responsible for demonstrating effectiveness through proper fiscal reporting."
SANTA ANA, Calif. (PRWEB) December 04, 2013
RSG Inc., the creatively charged counterpart to California public agencies, today issued guidance on SB 341 to help local housing successors, cities, and counties understand how the legislation affects their current affordable housing strategies and housing elements.
“With the dissolution of redevelopment agencies in 2011, cities and counties lost their greatest funding resource for assisting in the production of low- and moderate-income housing,” explained Jim Simon, principal and president, RSG. “Under SB 341, successor housing entities now face more restrictive limitations on and obligations related to expenditures of monies from their newly established Low and Moderate Income Housing Asset Fund.”
Although far-reaching, the most critical requirements that local government must know include:
- Permitted expenditures are limited to housing activities for lower income households earning 80 percent or less of the area median income
- Proportional expenditures require that at least 30 percent of expenditures are for housing affordable to extremely low-income households earning 30 percent or less of the area median income and not more than 20 percent of expenditures are for low-income households earning between 60 percent and 80 percent of the area median income.
- Expenditures for senior housing activities are limited by the aggregate total number of affordable senior housing units produced over the past 10 years.
- Successor Housing Entity administrative expenditures from the Fund are limited to the greater of 2 percent of the statutory value of the owned real property and of loans and grant receivables, or $200,000.
- Any redevelopment agency 33413 production deficiencies as of Feb. 1, 2012 are reinstated, and transfer to the housing successor. Though deficiencies must be reported, SB341 did not create penalties for non-compliance.
In addition, SB 341 also re-establishes and redefines reporting and monitoring requirements. Cities and counties must file financial reporting to designated government agencies annually and make this information on their websites for easy public accessibility. SB 341 also calls for five-year housing expenditure compliance reporting, as well as excess surplus funds accounting and reporting.
“Local government administrators will need to take safeguards to ensure compliance and either put into place internal controls or select an external consulting firm responsible for demonstrating effectiveness through proper fiscal reporting,” Simon said.
RSG is available for one-to-one consultation with the leaders of California public agencies to help them prepare for the new compliance reporting and monitoring requirements. To schedule a consultation, contact Jim Draughon, housing director, at 714-541-4585 or firstname.lastname@example.org.
About RSG Inc.
RSG is a creatively charged counterpart to California public agencies. They work with the people responsible for creating vibrant places to accomplish their goals. Learn more at webrsg.com, follow company activities on LinkedIn or become a fan of RSG on Facebook.