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Agenda Item 29.

City Council Meeting

Meeting Date:	06/18/2019
FROM:	Bill Gallardo

Subject:

Approve the Execution of An Assignment Agreement Between the Successor Agency to Brea Redevelopment Agency and the City, and the related assumption by the City, of Senior Housing Assistance Payments to be Paid from the City's Affordable Housing Trust Fund And Taking Other Related Actions

RECOMMENDATION

Approve resolution.

BACKGROUND/DISCUSSION

As Council is aware, the State’s 2012 actions to dissolve Redevelopment Agencies caused our Senior Subsidy Program from accepting new applicants at that time. This program provides a $254 monthly rent subsidy to assist qualified Senior’s with their rent payment. This program dates back into Brea Redevelopment Agency history where revenue generated by the Agency provided a reliable and consistent funding source for this program. The unwinding of Redevelopment funded this program through December 2019 with no further funding from that source available after that date. Staff discussed this circumstance with the Council in 2017 and received its direction to continue funding any remaining program participants after December 2019 via the City's Affordable Housing Trust Fund (Fund 270).

To achieve the Council's goal to continue funding any remaining program participants after December 2019 two actions are necessary--the first of which is the subject of this report and provides for the City to approve the assumption agreement between the Successor Agency and the City in order to assume the program's remaining 17 participants and to fund this effort from Fund 270. A second action is provided by a separate report to the City Council (also on this meeting agenda) and is a similar action with the Council acting in its capacity as the Successor Agency. Together, these two actions fulfill the Council goal to see out remaining participants in this program.

The resolution and assignment agreement and related assumption from the Successor Agency to the City are provided as attachments to this report.

FISCAL IMPACT/SUMMARY

The program currently has 17 remaining participants and this annual funding obligation would be $254 x 17 x 12 = $51,816. The proposed program funding is recommended from the City's Affordable Housing Trust Fund (Fund 270) and is budgeted within the proposed FY 2019-20 Budget.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Lee Squire, Financial Services Manager
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution
Assignment and Assumption Agreement - Attachment A to Resolution