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HomeMy WebLinkAboutSA Housing Asset ReportSAN RAFAEL SUCCESSOR AGENCY AGENDA ITEM NO.: 7. a MEETING DATE: August 20, 2012 HOUSING SUCCESSOR AGENDA REPORT Department: Economic Development (f Prepared by: Stephanie Lovette Executive Director Approval`�-�— Economic Development Manager SUBJECT: Acceptance of the Housing Asset Report prepared in accordance with California Health and Safety Code Section 34176 in the City's Capacity as Housing Successor Agency of the San Rafael Redevelopment Agency RECOMMENDATION: Staff recommends that the Agency Board accept the attached Housing Asset Report. This report was transmitted to the State on August 1, 2012 pursuant to the provisions of Health & Safety Code Section 341476. BACKGROUND: On June 28, 2011, the Governor signed ABxl 26 & 27, budget trailer bills to implement the State Budget for FY 2011-2012. ABxl 26, the Dissolution Act, immediately suspended all new redevelopment activities and incurrence of indebtedness, and dissolved redevelopment agencies effective October 1, 2011. The California Redevelopment Association sued and on December 29, 2011, the California Supreme Court delivered its decision in the case, finding the Dissolution Act constitutional and AB lx 27 (the Voluntary Program Act) unconstitutional. The Court decision also dissolved Redevelopment Agencies effective February 1, 2012. On July 27, 2012, the Governor signed AB 1484, the Redevelopment Dissolution/Unwind Trailer Bill as part of the 2012-13 budget package. AB 1484 significantly modified and provided some minor clarifications regarding the treatment of affordable housing assets under the Dissolution Act. AB 1484 also added new reporting for successor agencies with unreasonable deadlines and significant penalties for late submissions. ANALYSIS: The housing provisions of AB 1484 are contained in Health and Safety Code Section 34176. Pursuant to HSC 34176, each successor housing agency was required to submit a list of all affordable housing assets by August 1, 2012 on a form provided by the Department of Finance. FOR AGENCY SECRETARY ONLY Flle No.. Agency Meeting:`�c� Disposition: Page 2 of 2 The attached housing asset form contains a listing of all properties with recorded affordable covenants, all housing loans made by the Agency and all properties owned by the former Redevelopment Agency with affordable housing covenants. The list was provided to the CA Department of Finance on August 1, 2012. See Attachment A. In addition to providing information to the State, the form provides a comprehensive history of the City of San Rafael's commitment to affordable housing and the success of the affordable housing programs under the former Redevelopment Law. The list contains over 140 properties. The list also includes the Lone Palm and Centertown properties, where the Agency purchased the properties and provided a ground lease for the housing developments. FISCAL IMPACT: There is no fiscal impact associated with transmittal of the list. However, AB 26 and AB 1484 also contained "claw back" provisions, including housing asset claw backs. These provisions give the authority to the CADOF to require that assets be removed from Successor Agencies and given to the local taxing entities, including the City of San Rafael. The State has thirty days to object to any item on the housing submittal. Any asset that is ultimately deemed by the State to not to be a housing asset is subject to redistribution to the taxing entities. AB 1484 contains provisions for "sweeping" the remaining affordable housing funds and redistributing those funds to the taxing entities for non -housing purposes. This "sweep" is anticipated to occur in November 2012. At the conclusion of this housing asset approval process, any funds generated from approved housing assets including ground lease and loan repayments may be used for affordable housing purposes and will not be subject to the November 2012 "sweep". ACTION REQUIRED: Accept the Report. ATTACHMENT A: Housing Asset Form. 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