HomeMy WebLinkAboutCC Resolution 13296 (Affordable Housing Funds)RESOLUTION NO. 13296
RESOLUTION SUPPORTING SB 654 (STEINBERG) AND AB 1585
(PEREZ) SUCCESSOR HOUSING ENTITIES RETAINING
AFFORDABLE HOUSING FUNDS OF FORMER
REDEVELOPMENT AGENCIES
WHEREAS, pursuant to the California Community Redevelopment Law (Health and
Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council (the "City
Council") of the City of San Rafael (the "City") adopted the Redevelopment Plan for the Central
San Rafael Redevelopment Project Area by Ordinance No. 1079, on November 20, 1972 (as
amended from time to time, the "Redevelopment Plan"); and
WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is responsible for
implementing the Redevelopment Plan pursuant to the Redevelopment Law; and
WHEREAS, AB x 26 (the "Dissolution Act") has been enacted to significantly modify
the Redevelopment Law; and
WHEREAS, on December 29, 2011, the California Supreme Court delivered its decision
in the California Redevelopment Association v. Matosantos case, finding the Dissolution Act
constitutional and AB 1 x 27 (the Voluntary Program Act) unconstitutional; and
WHEREAS, the Court's decision means that all California redevelopment agencies will
dissolve on February 1, 2012 pursuant to the Dissolution Act; and
WHEREAS, the Dissolution Act provides that the city that authorized the creation of the
redevelopment agency shall be the "successor agency" to the dissolved redevelopment agency
unless the city elects not to serve as the successor agency under Section 34173(d)(1) of the
Redevelopment Law; and
WHEREAS, Section 34176(x) of the Redevelopment Law provides that the city that
authorized the creation of a redevelopment agency may elect to retain the housing assets and
functions previously performed by the former redevelopment agency; and
WHEREAS, on January 3, 2012 the City Council adopted a resolution stating its intention to
serve as, the successor agency for the Agency in accordance with Section 341710) and Section
34173 of the Redevelopment Law; and
WHEREAS, on January 3, 2012 the City adopted a resolution electing to retain the housing
assets and functions previously performed by the Agency in accordance with Section 34176 of the
Redevelopment Law.
WHEREAS, the Dissolution Act limits the revenues available to successor housing
agencies; and
WHEREAS, SB 645 and AB 1585 would allow successor housing agencies, including
the City, to retain the assets of the dissolved redevelopment agency to be used for affordable
housing purposes.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby supports SB 654 and
AB 1585,
BE IT FURTHER RESOLVED that the City Council hereby directs staff to notify Senator Leno,
Assemblymember Huffman, the sponsors of SB 654 and AB 1585, the California League of
Cities, the California Redevelopment Association and the MCCMC Legislative Committee
regarding this action.
I, Esther C. Beirne, City Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council held on the fifth day of March 2012, by the following vote, to wit:
AYES: COUNCILMEMBERS: Connolly, Heller, Levine, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Esther C. Beirne, City Clerk
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AB 1585, as introduced, John A. Perez. Redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
Existing law dissolves redevelopment agencies and community development agencies, as of February
1, 2012, and designates successor agencies, as defined. Existing law requires successor agencies to wind
down the affairs of the dissolved redevelopment agencies and to, among other things, repay enforceable
obligations, as defined, and to remit unencumbered balances of redevelopment agency funds, including
housing funds, to the county auditor -controller for distribution to taxing entities.
Existing law authorizes the city, county, or city and county that authorized the creation of a
redevelopment agency to retain the housing assets, functions, and powers previously performed by the
redevelopment agency, excluding amounts on deposit in the Low and Moderate Income Housing Fund.
This bill would modify the scope of the term "enforceable obligation" and modify provisions relating to
the transfer of housing funds and responsibilities associated with dissolved redevelopment agencies. The
bill would provide that any amounts on deposit in the Low and Moderate Income Housing Fund of a
dissolved redevelopment agency be transferred to specified entities. The bili would make conforming
changes.
Existing law provides that, upon a specified date, agreements, contracts, or arrangements between the
city or county, or city and county that created the redevelopment agency and the redevelopment
agency are invalid. Notwithstanding this provision, an agreement that provided loans or other startup
funds for the agency that was entered into within 2 years of the formation of the agency is valid
and binds the successor agency.
The bill would expand this exception to include an agreement involving a loan specific to a project area
and other specified obligations. The bill would provide that other loan agreements entered into between
the redevelopment agency and the city, county, or city and county that created it are deemed to be
enforceable obligations, except as specified. The bill would further expand upon, and clarify, the scope
of the.successor agency's and the oversight board's responsibilities.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 213. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
SB 654, as amended, Steinberg. Redevelopment
Legislative counsel's digest
Existing law suspends various activities of redevelopment agencies and prohibits the agencies from
incurring indebtedness for a specified period. Existing law also dissolves redevelopment agencies
and community development agencies, as of October 1, 2011, and designates successor agencies, as
defined. Existing law requires successor agencies to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, repay enforceable obligations, as defined, and
to remit unencumbered balances of redevelopment agency funds, including housing funds, to the
county auditor -controller for distribution to taxing entities.
Existing law authorizes the city, county, or city and county that authorized the creation of a
redevelopment agency to retain the housing assets, functions, and powers previously performed by
the redevelopment agency, excluding amounts on deposit in the Low and Moderate Income
Housing Fund.
This bill would revise the definition of the term "enforceable obligation" and modify provisions
relating to the transfer of housing funds and responsibilities associated with dissolved
redevelopment agencies. The bili would provide that any amounts on deposit in the Low and
Moderate Income Housing Fund of a dissolved redevelopment agency be transferred to specified
entities. The bill would make conforming changes.
Existing law provides that upon a specified date, agreements, contracts, or arrangements between
the city or county, or city and county that created the redevelopment agency and the redevelopment
agency are invalid. Notwithstanding this provision, an agreement that provided loans or other
startup funds for the agency that was entered into within 2 years of the formation of the agency is
valid and binds the successor agency.
The bill would expand this exception to include an agreement involving a loan specific to a project
area and other specified obligations.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3 majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.