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HomeMy WebLinkAboutStaff Report 115-08City of Palo Alto C ty Manager’s Report R-1 TO: FROM: DATE: SUBJECT: HONORABLE REDEVELOPMENT AGENCY BOARD EXECUTIVE DIRECTOR DEPARTS~NT: PLANNING AND CO~X~5~NITY ENVIRON~fENT JANUARY 22, 2008 CMR: 115:08 APPROVAL OF REDEVELOPMENT AGENCY ANNUAL REPORT RECOMMENDATION Agency staff recommends that the Palo Alto Redevelopment Agency Board: Review and accept the Palo Alto Redevelopment Agency Annual Report, which has been submitted to the California State Controller’s Office. BACKGROU~’D On July 9, 2001, the Palo Alto City Council adopted an ordinance declaring the need for a redevelopment agency to function in Palo Alto. The Council also declared the City Council to be the redevelopment agency and made the finding that the formation of a redevelopment agency "will serve the public interest and promote the public safety and welfare in an effective manner" in accordance with California State Health and Safety Code section 33200. California State Redevelopment law requires that all redevelopment agencies, including the City of Palo Alto Redevelopment Agency (RDA), file an annual report with the California State Controller’s Office. The Mayor’s Ad Hoc Retail Attraction Committee recommendations included providing incentives and developing strategies to attract and retain businesses in the City of Palo Alto. One specific action, the development of a specific redevelopment project study area (if feasible), would promote retail activity which addresses City objectives. Staff continues to review zones that meet the economic and physical blight requirements of redevelopment and would meet appropriate criteria for project areas. Staff wi!! return to the City Council for future direction for the RDA or when an appropriate area is identified for further study. The annual report required by California State Law Section 33080.1 of the Palo Alto Redevelopment Agency is attached to this staff report for review and acceptance by the Agency board. CMR: 115:08 The report includes: ¯Independent financial audit report ¯Fiscal statement of previous year’s achievements ¯Activities affecting housing and displacements RESOURCE IMPACT The existing cooperative agreement .between the City and the Agency will be updated to include the $ 8,500 in expenditures incurred for fiscal year 2006-07. Staff does not anticipate incumng any new charges this fiscal year. POLICY IMPLICATIONS There are no policy implications at this time. ATTACHMENTS Attachment A: Redevelopment Agency of the City of Palo Alto Component Unit Financial Statements Unit Financial Statements Attachment B: HCD Report on Low and Moderate Income Housing PREPARED BY: SUSAN L. BARNrES Economic Development/Redevelopment Manager EXECUTIVE DIRECTOR APPROVAL: BENrEST Executive Director CMR: 115:08 Attachment A REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO COMPONENT UNIT FINANCIAL STATEMENTS FOR THE YEAR ENDED rUNE 30, 2007 REDE¥~ELOPMENT AGENCY OF THE CITY OF PALO ALTO COMPONENT U~IT FIN:~NCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2007 TABLE OF CONTENTS Pa~__~e [ FINPd’~CIAL SECTION: ] In dependent Auditor’s Report .................................................................................................................................1 3lanagement’s Discussion and Analysis .................................................................................................................3 Component Unit Financial Statements: Agency-wide Financial Statements: Statement of Net Assets ............................................................................................................................5 Statement of Activities ..............................................................................................................................6 Fund Financial Statements: Balance Sheet ........................................................................................................................................8 Statements of Revenues, Expenditures, and Changes in Fund Balance ..............................................9 Statements of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual .........10 Notes to Component Unit Financial Statements ...........................................................................................11 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Finan.cial Statements Performed in Accordance with Government Auditing Standards ..................15 ASSOCIATES INDEPENDENT AUDITOR’S REPORT ON THE FIN.~,NCIAL STATEMENTS Board of Directors Redevelopment Agency of the City of Palo Alto Palo Alto, California We have audited the accompanying component unit financial statements of the governmental activities and major fund of the Redevelopment Agency of the City of Palo Alto, a component unit of the City of Palo Alto, as of and for the year ended June 30, 2007, as listed in the Table of Contents. These component unit financial statements are the responsibility of the Agency’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards requkre that we plan and perform the audit to obtain reasonable assurance as to whether the component unit financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the component unit financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In accordance with Government Auditing Standards, we have also issued reports October 12, 2007 on our consideration of the Agency’s internal control structure and on its compliance with laws and regulations. In our opinion the component unit financial statements referred to above present fairly in all material respects the financial position of the governmental activities and major fund of the Redevelopment Agency of the City of Palo Alto for the year ended June 30, 2007 and the changes in financial position for the year then ended, in conformity with generally accepted accounting principles in the United States of America. Management’s Discussion and Analysis is not a required part of the basic component unit financial statements but is supplementary, information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of required supplementary information. However we did not audit the information and we express no opinion on it. October 12, 2007 A Professional Corporation l This Page Left Intentionally Blank MANAGEMENT’S DISCUSSION AND ANALYSIS The Redevelopment Agency (Agency) of the City of Palo Alto, a component unit of the City of Palo Alto is controlled by the City of Palo Alto and was formed on October 9, 2001. FISCAL 2007 FINANCIAL HIGHLIGHTS-AGENCY-WIDE BASIS AND FUND BASIS GASB 34 requires the issuance of Agency-wide financial statements as well as fund financial statements. During fiscal year 2007, the Agency incurred on-going costs kn the amount of $6 thousand, a $3 thousand decrease from prior year. The Agency received a transfer from the City of Palo Alto in the amount $6 thousand to fund these costs, a $3 thousand decrease from prior year. As of June 30, 2007, the Agency had not yet adopted a project area nor received any tax increment revenues. OVERVIEW OF THE AGENCY’S BASIC FINANCIAL STATEMENTS The Basic Financial statements are in two parts: 1)Management’s Discussion and Analysis (this part), 2)The Basic Financial Statements, which include the Agency-wide and the Fund financial statements, along with the Notes to these financial statements. The Basic Financial Statements The Basic Financial Statements comprise the Agency-wide Financial Statements and the Fund Financial activities and financial position-long-term and short-term. The Agency-wide Financial Statements provide a longer-term view of the Agency’s activities as a whole, and comprise the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets provides information about the financial position of the Agency as a whole, including all its long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about a!l the Agency’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of the Agency’s program. The Statement of Activities explains in detail the change in Net Assets for the year. The Fund Financial Statements report the Agency’s operations in more detail that the Agency-wide statements and focus primarily on the short-term activities. The Fund Financial Statements measure only current assets, liabilities and fund balances. Together, all these statements are now called the Basic Financial Statements. ECONOMIC OUTLOOK AND MAJOR INITIATES The economy of the City of Palo Alto and its major initiatives for the coming year are discussed in detail in the City’s Comprehensive Annual Financial Report. CONTACTING THE AGENCY’S FINANCIAL MANAGEMENT These Basic Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Agency’s finances. Questions about these Statements should be directed to the Finance Department of the City of Palo Alto, 250 Hamilton Avenue, CA 94_301. 4 THE tLEDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO A COMPONENT UNIT OF THE CITY OF PALO ALTO STATEMENT OF NET ASSETS JUNE 30, 2007 Accounts payable Unrestricted LIABILITIES NET ASSETS See accompanying notes to financial statements THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO A COMPONENT UNIT OF THE CITY OF PALO ALTO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED .PRONE 30, 2007 EXPENSES Planning and Community Reimbursements to the CiD’ Change in Net Assets GENER.a~L REVENUES Transfers from the Ci~ of Palo Alto Net assets at the beginning of year Net assets at the end of year See accompanying notes to financial statements ($6,000) (6,000) 6,000 REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO FUND FIN.4~NCIAL STATEMENTS The Redevelopment_ A~encv~ ..(A~encv)~ .j of the Cit)~ of Palo Alto only has one fund in fiscal 2007. REDEVELOPMENT AGENCY GENEIL~L FUND This fund accounts for the activities of establishing and administering the Agency. I THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO A COMPONENT UNIT OF THE CITY OF PALO ALTO BALANCE SHEET JUNE 30, 2007 LIABILITIES Due to the Ci~ of Palo Alto FUND BALANCES Unreserved, undesignated Total Fund Balance Total Liabilities and Fund Balance See accompanying notes to financial statements General Fund THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO A COMPONENT UNIT OF THE CITY OF PALO ALTO STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2007 OTHER FINANCING SOLrRCES (USES) Transfers in from the City of Palo Alto (Note 2) Transfers (out) to the City of Palo Alto (Note 2) Fund balance at beginning of year Fund balance at end of year See accompanying notes to financial statements General Fund $6,000 (6,000) THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO A COMPONENT UNIT OF THE CITY OF PALO ALTO STATEMENT OF REVENUES, EXPENDITURES AND CILa~NGES 1N FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JLENE 30, 2007 OTHER FINANCING SOURCES (USES) Transfers in from the City. of Palo Alto Transfers out to the City of Palo Alto Budgeted Amount Adopted Adjusted $9,000 $9,000 (9,000)(9,000 Actua! Amount Budgetary Basis Variance with Final Budget Positive (Negative) $6,000 (6,000) (3,ooo) 3,000 Total Other Financing Sources (Uses) Fund balance at beginning of year Fund balance at end of year See accompanying notes to financial statements 10 NOTE A. No C. THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO Notes to Component Unit Financial Statements For the Year Ended June 30, 2007 1 - SUMLMARY OF SIGNIFICANT ACCOUNT POLICIES Organization and Purpose The Redevelopment Agency (Agency) of the Cib, of Palo Alto was created on October 9, 2001 under the provisions of the Redeve!opment Law (California Health and Safeb, Code). The City Council serves as the governing body of the Agency and the Cit), Manager serves as the Executive Director. The Agency is an inte~al part of the City of Palo Alto and, accordingly, the accompanying financial statements are included as a component unit of the basic financial statements prepared by the City.. A component unit is a separate governmental unit, agency or nonprofit corporation which, when combined with all other component units, constitutes the reporting entib, as defined in the City’s basic financial statements. Basis of Presentation The Agency’s Basic Financial Statements are prepared in conformity, with accounting principlesgenerally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United states of America. These Standards require that the financial statements described below be presented. Agency-wide Statements: The Statement of Net Assets and the Statement of Activities include the financial activities of the overall Agency government. Eliminations have been made to minimize the double counting of internal activities. The Statement of Activities presents a comparison between direct expenses and progam revenues for each function of the Agency’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the pro~ams, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the Agency. The Agency considers the Redevelopment Agency General Fund to be a major fund. Major Funds Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the ~and total. Major funds are identified and presented separately in the fund financial statements. The Agency reported the following major governmental fund in the accompanying financial statements: 1! THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO Notes to Component Unit Financial Statements For the Year Ended June 30, 2007 NOTE 1 - SUMMARY OF SIGNIFIC?dNT ACCOUNT POLICIES (Continued) [ Do REDEVELOPMENT AGENCY GENEP~4.L FUND This fund accounts for the activities of establishing and administering the Redevelopment Agency. Basis of Accounting The Agency-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financia! resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Agency considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability, is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recog-nized as expenditures to the extent they have matui’ed. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. Non-exchange transactions, in which the Agency gives or receives value without directly receiving or giving equal value in exchange, include property taxes, gants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility. requirements have been satisfied. Other revenues susceptible to accrual include taxes, intergovernmental revenues, interest and charges for services. Budgets and Budgetary Accounting Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budget amounts in the financial statements are as origina-lly adopted, or as amended by the Board. Formal budgetary integation is employed as a management control device. Encumbrance accounting is employed as an extension of formal budgetary inte~ation in all funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities and are reappropriated in the following year. Net Assets Net Assets is the excess of all the Agency’s assets over all its liabilities, regardless of fund. Net Assets, which is determined only at the Agency-wide level, and is described below: Unrestricted describes the portion of Net Assets which is not restricted as to use. 12 THE REDEVELOPMENT AGENCY OF THE CITY OF PALO ALTO Notes to Component Unit Financial Statements For the Year Ended June 30, 2007 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Continued) G.Fund Balances, Reserves and Designations In the fund financial statements, fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. NOTE 2 - Tt~NSACT!ONS WITH THE CITY During fiscal year 2001-02, the City established the Redevelopment Agency. The Agency and the City have an aueement whereby the City wilt advance funds to the Agency in support of start up and formation costs. However, the interfund advances have no specific repayment date. Generally accepted accounting principles require that such amounts be treated as transfers in the year made. !3 This Page Left Intentionally Blank ASSOCiATeS ACCOUNTANCY CORPORATION REPORT ON INTEItaNAL CONTROL OVER FINA~NCIAL REPORTING .XNI) ON COSIPLIANCE AND OTHER IVL&TTERS BASED ON .AN AUDIT OF FIN.ANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VER~E-~,rT A UDITING ST~4fVDARDS Members of the Redevelopment Agency of the City, of Palo Alto, California We have audited the financial statements of the Redevelopment Agency of the CiU’ of Palo Alto as of and for the year ended June 30, 2007, and have issued our report thereon dated October 12, 2007. We have conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards applicable to financial audits contained in Government,4uditing Standards, issued by the Comptroller General of the United States. Internal Cotztrol over Finatzcial Reporting In planning and performing our audit, we considered the Agency’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control over financial reporting. A control deficiency exists when the desig~ or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A si~o-nificant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the A~e~cy’s abilit)’ to initiate, authorize, record, process, or report financial data reliably in accordance with g~nerally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Agency’s financial statements that is more than inconsequential will not be prevented or detected by the Agency’s internal control. A material wea ~kness is a sig-nificant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Agency’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the second paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be sig-nificant deficiencies or material weaknesses. As part of our audits, we prepared and issued our separate Memorandum on Internal Control dated October 12, 2007. Items considered to be significant deficiencies are included in a Schedule of Significant Deficiencies in that Memorandum. Professional Corpora,’.ion 15 Compliance and Other 3~ratters As part of obtaining reasonable assurance about whether the Agency’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Our audit included tests of compliance with provisions of the Guidelines for Com~)liance Audits qfCalifornia Redevelopment A~encies. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended for the information of the Board, management and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than the above parties. October 12, 2007 16 Housing Need Production Form ATTACHMENT B Organization: City of Palo Alto Contact: Roland Rivera Title: Senior Planner Address: 250 Hamilton Avenue, Department of Planning and Community Environment CitT: Palo Alto Zip: 94301 Email: roland.rivera @ cityofpaloalto.org Phone: (650)329-2541 Report year: 2006-2007 Report time period: [] Calendar Year (January 1 - December 31)[] Fiscal Year (July 1 - June 30) Unit Count of Housing Produced State Identified Affordability Categories (Percent of area median income (AMI)) Very Low (up to 50% AMI) Low (51 - 80% AMI) Moderate (81 - 120% AMI) Above Moderate (over 120% AMI) TOTAL Current RHNA Allocation 265 116 343 673 Units Added Current Year Unrestricted ! Deed Restricted 56 2 82 Total Units Units Added in Added Prior Years of Current Year 56 2 82 Total Units Added Current RHNA Cycle 158 128 52 549 1406 1,397 689 1,744 Number of units added determined by building permits. See reverse for definitions of income categories included in this form. 214 130 134 1,955 2,433 Optional: Locally Identiiied Affordability Categories : (Alternative affordabili~, levels tracked by somejurisdictions~ Limit info~Tnation to title and definition of locally identified catego~T. Place production numbers for these categories in appropriate affordabiliO, categmy above.) Housing Need Production Form Description California State Law mandates that each jurisdiction annually submit a report on the effectiveness of its housing element, on or before October 1. Reports are to be submitted to the jurisdiction’s local governing body, the Governor’s Office of Planning and Research, and the Department of Housing and Community Development (HCD) pursuant to Govermnent Code Section 65400(b). The Housing Need Production Form is part of an Association of Bay Area Governments effort to provide a tool to local jurisdictions to streamline reporting on housing unit production. Report Time Period Jurisdictions can report their housing production by either calendar (January 1 - December 31) or fiscal (July 1 - June 30) year. ~,Vhether to report by calendar or fiscal year will depend on a number of factors including format of existing records, deadlines for other mandated reports, and staff availability. Allowable Housing Units The reporting of housing unit production is defined by the types of housing that HCD allows to be counted toward meeting the Regional Housing Need Allocation (RHNA). HCD counts housing as a new dwelling unit if it meets the Department of Finance (DOF) functional definition for new units. Group housing cannot be counted toward meeting RHNA numbers. The following, provided by HCD, defines a housing unit: Housing Unit - A house, an apartment, a mobile home or trailer, a group of rooms, or a single room occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from an?, other individuals in the building and which have direct access from outside the building or through a common hall. For vacant units, the criteria of separateness and direct access are applied to the intended occupants whenever possible. Household - A household includes all the people who occupy a housing unit as their usual place of residence. Group Quarters (which cannot be counted) - The Census Bureau classifies all people not living in households as living in group quarters. There are two types of group quarters: institutional (for example, correctional facilities, nursing homes, and mental hospitals) and non-institutional (for example, college dormitories, military barracks, group homes, missions, and shelters). Source: U.S. Census Bureau, Census 2000 (same as of March 2002); see "Glossao!’ link on Census 2000 portion of the website at: http://wvm~,.census.gov/main/uww/cen2OOO.honl Affordability Categories The categories included in the proposed Housing Need Production Form are those required as part of the R_HNA statute and are determined by household income: very low, low, moderate, and above moderate. Each affordability category is defined as a percent of the county area median income: ¯Very low income- 50% or below of area median income ¯Low income - between 51% and 80% area median income ° Moderate income - betaveen 81% and 120% area median income ¯Above moderate income- greater than 120% area median income To detemline the income levels (by household size) for each affordability category for your county, go to ~vw.hcd.ca.gov/hpd/hrc/rep/state/incNote.html for the latest version of the yearly Official State Income Lbnits Report produced by the Department of Housing and Community Development (HCD) The State identified categories are based on the United States Department of Housing and Urban Development’s (HUD) income categories developed for Federal housing pro~ams. The State report includes the ’extremely low’ category used by HUD so that local communities can submit applications to relevant Federal programs. However, since the RHNA process does not require that housing need be distributed to an ’extremely low’ income category; units produced in this category should be included in the ’very low’ income category. Process to Determine the Number of Units The reporting of new housing units produced is to be based on the number of building permits issued. Jurisdictions may base their tracking process on either building permits issued or finaled building permits. State DOF requests that jurisdictions report building permits issued. The State RDA and the Federal Government request that jurisdictions report on finaled building permit. A jurisdiction may choose which type of building permit they use for the form depending on which of the State~ederal reports they already track production for. Reporting Number of Units Produced The table on the Housing Need Production Form contains headings for five categories. These headings have been modified so that the production form can be used in any year of any RHNA cycle. ¯Current RIINA Allocation- The number of housing units allocated to a jurisdiction for the current housing element cycle. Units Added Current Year - The number of housing units produced during the current reporting year. This category contains avo sub-categories: Unrestricted and Deed Restricted o " Unrestricted - The number of housing units produced without affordability restrictions. Deed Restricted - The number of housing units produced that achieve their affordability through some form of legally binding restriction on the income levels of owners or tenants. Total Units Added Current Year - The sum of the number of housing units reported in the "Unrestricted" and "Deed Restricted" categories. Units Added Prior Years of RHNA Cycle - The total number of housing units produced in the previous years of the current RHNA cycle. Total Units Added Current RI-ENA Cycle - The sum of the number of housing units reported in the "Total Units Added Current Year" and "Units Added in Prior Years of RktNA Cycle" categories. Optional: Locally Identified Affordability Categories This section of the Housing Need Production Form is added as an option. It is for those jurisdictions that have developed, and track housing production within, one or more alternative affordability categories. All production numbers should be incorporated into the table on the proposed form. It is recommended that the information provided in this section be limited to the title and definition of the locally identified categories (including percent of Area Median Income). Note: There are a number of locally identified income categories that some communities find useful in monitoring housing production in relation to the needs of its residents. These are optional categories that most jurisdictions do not use. If your jurisdiction does track one or more of these categories, include the number of new units produced in the appropriate State identi~ed categoTy on the proposed form.