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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 2 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.