Redevelopment Housing Successor Annual Report for Fiscal Year (FY) 2024-25 RECOMMENDATION: Staff recommends that the City Council receive and file the Housing Successor Agency Annual Report for FY 2024-25.

The City Council is asked to receive and file the Housing Successor Agency Annual Report for Fiscal Year (FY) 2024-25. The City of Hercules became the Housing Successor to the former Hercules Redevelopment Agency in February 2024. The report details the agency's activities and compliance with state law regarding affordable housing.

Key Financials for FY 2024-25:

• Housing Asset Fund Balance: Approximately $12.4 million as of June 30, 2025, with $6.2 million in cash.
• Revenues: $363,347 from homeowner loan repayments and interest.
• Expenditures: $59,765 on administrative items. No expenditures were made for housing development projects.
• Loans Receivable: Approximately $6.2 million in outstanding loans, including $2.3 million to affordable housing developers (Bridge Housing and Eden Housing) and $3.8 million in homeowner loans.

Excess Surplus: The Housing Successor has an excess surplus of $2.7 million from FY 2023-24 and $266,421 from FY 2024-25. These funds must be spent or encumbered within three fiscal years to avoid transfer to the state. The City is addressing this by issuing a $5.0 million Notice of Funding Availability for affordable housing development proposals, with three teams currently under review.