HomeMy WebLinkAboutAdopt Oversight Board Resolution No. 2015-01 approving the R AGENDA REPORT
Oversight Board of the Huntington Beach Successor Agency
to the Redevelopment Agency
MEETING DATE: February 18, 2015
SUBJECT/ACTION: Adopt Oversight Board Resolution No. 2015-01 approving the
Repayment Schedule for Loans from the former
Redevelopment Agency's Low and Moderate Income Housing
Fund
STATEMENT OF ISSUE:
The Oversight Board is requested to approve the Resolution approving the Loan
Repayment. Schedule for Loans to the former Redevelopment Agency of the City of
Huntington Beach from the former Redevelopment Agency's Low and Moderate Income
Housing Fund, including loans to fund the Redevelopment Agency's payments to the
Supplemental Education Revenue Augmentation Fund.
BOARD RECOMMENDED ACTION: Motion to:
Adopt Resolution No. 2015-01, "A Resolution of the Oversight Board of the Successor
Agency to the Redevelopment Agency of the City of Huntington Beach Approving a
Repayment Schedule for Loans from the Former Redevelopment Agency's Low and
Moderate Income Housing Fund."
BACKGROUND:
As part of the Redevelopment Agency dissolution that took place on February 1, 2012
all of the assets of the former Low and Moderate Income Housing Fund were
transferred to the Huntington Beach Housing Authority. The transfer of assets that was
approved by the California Department of Finance included an accounts receivable f o r
loans from the Low and Moderate Income Housing Fund, including the Supplemental
Education Revenue Augmentation Fund (SERAF) loans issued in 2010 and 2011,
which were used to fund the Agency's portion of the SERAF shift payment to the
County, pursuant to Assembly Bill 26 4x.
Pursuant to Section 34176(e)(6)(B), in 2014-15 a Successor Agency may begin
repaying loans or deferrals owed to the Low and Moderate Income Housing Fund in an
amount equal to one-half of the increase between the residual balance distributed to
taxing entities after all enforceable obligations have been paid in the current fiscal year
and the residual balance distributed to taxing entities in the 2012-13 fiscal year. The
Successor Agency has outstanding loans from the Low and Moderate Income Housing
Fund, including an outstanding SERAF Loan in the amount of $3,956,116. Under the
dissolution law those loans are now eligible for repayment.
The f i r s t loan payment was listed on the ROPS 14-15B, approved by Oversight
Board. However, the Department of Finance (DOF) took the position that successor
agencies must prepare a separate resolution of the Oversight Board approving a
repayment schedule, which the Oversight Board has approved. In preparation for the
current ROPS 15-16A and in accordance with DOF's position from further delaying the
Housing Authority's receipt of these funds, staff is requesting that the Oversight
Boa rd review and approve the resolution and request the payment for the SERAF
loan.
Since the amounts that can be repaid in any fiscal year are tied to actual distributions in
a given year compared to the base year, future year payment amounts beyond
ROPS 15-16A cannot be calculated at this time. However, pursuant to Section 34176
(e)(6)(B) the repayment amount for each fiscal year will be equal to the maximum
amount allowed under the section, with the calculation for Fiscal Year 2014-2015 shown
below. A similar calculation would be made for each succeeding fiscal year, until all of the
loans from the Low and Moderate Income Housing Fund have been repaid. It is
anticipated that this ROPS 15-16A will be the final SERAF payment, as shown on the
Exhibit A of the Resolution.
The Successor Agency recommends that the Oversight Board adopt the attached
Resolution approving the Loan Repayment Schedule for loans from the Low and
Moderate Income Housing Fund.
ATTACHMENT(S):
Resolution No. 2015-01, "A Resolution of the Oversight Board of the Successor Agency to
the Redevelopment Agency of the City of Huntington Beach Approving a Repayment
Schedule for Loans from the Former Redevelopment Agency's Low and Moderate Income
Housing Fund"
RESOLUTION NO. 2015-01
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH APPROVING A REPAYMENT SCHEDULE FOR
LOANS FROM THE FORMER REDEVELOPMENT AGENCY'S LOW
AND MODERATE INCOME HOUSING FUND
WHEREAS, the Redevelopment Agency of the City of Huntington Beach
("Redevelopment Agency") was a redevelopment agency in the City of Huntington Beach
("City"), duly created pursuant to the California Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety Code)
("Redevelopment Law"); and
Assembly Bill No. X1 26 (2011-2012 1" Ex. Sess.) ("AB 26") was signed by the
Governor of California on June 28, 2011, making certain changes to the Redevelopment Law and
to the California Health and Safety Code("H&S Code"), including adding Part 1.8 (commencing
with Section 34161) ("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85")
to Division 24 of the H&S Code; and
Pursuant to AB 26, as modified by the California Supreme Court on December 29, 2011
by its decision in California Redevelopment Association v. Matosantos, all California
redevelopment agencies, including the Redevelopment Agency, were dissolved on February 1,
2012, and successor agencies were designated and vested with the responsibility of paying,
performing and enforcing the enforceable obligations of the former redevelopment agencies and
expeditiously winding down the business and fiscal affairs of the former redevelopment
agencies; and
The City Council of the City elected for the City to serve as the successor agency to the
Redevelopment Agency upon the dissolution of the Redevelopment Agency under AB 26
("Successor Agency"); and
The City Council of the City adopted Resolution No. 2012-02 on January 9, 2012,
designating the Huntington Beach Housing Authority (the "Authority") as the entity responsible
for performing the housing functions previously performed by the Redevelopment Agency and
authorizing the transfer to the Authority of the Redevelopment Agency's housing assets and
functions; and
The Authority adopted Resolution No. 2012-01 on January 9, 2012, accepting the
designation as the entity that will perform the housing functions previously performed by the
Redevelopment Agency and accepting the transfer of housing assets and functions; and
On June 27, 2012, the Legislature passed and the Governor signed Assembly Bill No.
1484 ("AB 1484", Chapter 26, Statutes 2012). AB 26 and AB 1484, as further amended, are
collectively referred to herein as the "Dissolution Act"; and
15-4582/117004 l
Oversight Board Reso. 2015-01
The Dissolution Act provides for the repayment, and deposit into the Low and Moderate
Income Housing Asset Funds of housing successors, of funds that had been borrowed from the
redevelopment agencies' Low and Moderate Income Housing Funds, including but not limited to
funds borrowed to make Supplemental Educational Revenue Augmentation Fund ("SERAF")
payments; and
The Redevelopment Agency had borrowed money from the Low and Moderate Income
Housing Fund for purposes that included making SERAF payments ("Loans"); and
The Loans were included in the Housing Asset Transfer Form that was prepared by the
Authority and submitted on August 1, 2012 to the California Department of Finance ("DOF") as
required by Section 34176(a)(2) of the Dissolution Act and on February 15, 2013, DOF notified
the Authority that it did not object to the transfer of the Loans to the Authority; and
Section 34171(d)(1)(G) of the Dissolution Act requires the Oversight Board to approve
the repayment schedule for the Loans; and
Section 34176(e)(6)(B) of the Dissolution Act sets forth the formula for determining the
maximum amount of annual payments on the Loans; and
All of the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows:
1. The Oversight Board hereby determines that the foregoing recitals are true and
correct.
2. The Oversight Board hereby approves the repayment schedule for the Loans
attached to this Resolution as Attachment 1.
3. The Oversight Board hereby authorizes the Successor Agency to place on each
Recognized Obligation Payment Schedule ("ROPS") the maximum payment on the Loans that is
permitted by the Dissolution Act.
4. The Oversight Board hereby ratifies and approves the placement on ROPS 15-
16A of the Fiscal Year 2014-2015 payment on the Loans, in the amount shown on the attached
repayment schedule.
5. The adoption of this Resolution is not intended to and shall not constitute a waiver
of any constitutional, legal or equitable rights that the Successor Agency or Oversight Board may
have to challenge, through any administrative or judicial proceedings, the effectiveness and/or
legality of all or any portion of the Dissolution Act, any determinations rendered or actions or
omissions to act by any public agency or government entity or division in the implementation of
the Dissolution Act, and any and all related legal and factual issues, and the Successor Agency,
Oversight Board, and Authority expressly reserve any and all rights, privileges, and defenses
available under law and equity.
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Oversight Board Reso. 2015-01
6. If any provision of this Resolution or the application of any such provision to any
person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Resolution that can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The Oversight Board
declares that its Board would have adopted this Resolution irrespective of the invalidity of any
particular portion of this Resolution.
7. The Oversight Board directs the Successor Agency to provide a copy of this
Resolution to DOF pursuant to Section 34179(h) of the Dissolution Act, which provides that the
Oversight Board's action will become effective within five (5) business days after notice is given
in the manner specified by DOF unless DOF requests a review, in which case the Resolution will
become effective upon DOF approval.
PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a meeting thereof held on the
18th day of February , 2015.
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REVIEWEP AND APPROVED: aINIED ROVED:
u i eDirector eputy Executive Director
APPROVED
Board Counsel feu- _a
15-4582/117004 3
Oversight Board Reso. 20I5-0I
ATTACHMENT 1
SUPPLEMENTAL EDUCATION REVENUE AUGMENTATION FUND
REPAYMENT SCHEDULE
SERAF LOAN PAYMENT-FY 2015-16
Base Year Excess Revenue 2012-13
OC A/C Distribution (Excess Revenue)July-December 2012 $ 740,249
OC A/C Distribution (Excess Revenue)January-June 2013 863,341
Total2012-13 Distributions $ 1,603,590
Fiscal Year Excess Revenue 2014-15
OC A/C Distribution (Excess Revenue)July-December 2014 $ 5,119,125
OC A/C Distribution (Excess Revenue)January-June 2015 6,478,450
Total2012-13 Distributions $ 11,597,575
Increase from 2012-13 Distribution and 2014-15 Distribution $ 9,993,985
Allowable SERAF Payment
(One-half of Increase from 2012-13 to 2013-14) $ 4,996,993
Pursuant to Section 34176(e)(6)(B),the repayment amounts for each fiscal year
will be equal to the maxixmum amount allowed under the section.
Oversight Board
Res. No. 2015-01
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, Secretary of the Huntington Beach Oversight Board of
the Successor Agency of the Former City of Huntington Beach Redevelopment Agency,
Huntington Beach, California DO HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the
Former City of Huntington Beach Huntington Beach Redevelopment Agency at a
meeting held on February 18, 2015 and that it was so adopted by the following vote:
AYES: Board Members: Hardy, Katapodis, L. Dunn, Fritzal
NOES: Board Members: None
ABSENT: Board Members: Bone, Delgado, A. Dunn
ABSTAIN: Board Members: None
,40
Sec tary of the Huntington Beach
Oversight Board of the Successor
Agency of the Former City of
Huntington Beach Redevelopment
Agency Huntington Beach, California