Loading...
HomeMy WebLinkAboutAgenda Report - Oversight Board of the Huntington Beach Suc AGENDA REPORT Oversight Board of the Huntington Beach Successor Agency to the Redevelopment Agency MEETING DATE: November 24, 2014 SUBJECT/ACTION: Adopt Oversight Board Resolution No. 2014-08 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. RECOMMENDED ACTION: Motion to: Adopt Resolution No. 2014-08, "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, which was approved by Oversight Board resolution. However, the Department of Finance (DOF) has taken the position that successor agencies must prepare a separate resolution of the Oversight Board approving a repayment schedule. To prevent DOF's position from further delaying the Housing Authority's receipt of these funds, staff has taken the time to prepare and present this report and resolution for Oversight Board approval. 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 14- 15B 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. SERAF LOAN PAYMENT - FY 2014-15 Ease Year Excess Revenue 2012-13 OC A/C Distribution (Excess Revenue) July- December2012 $ 740,249 OC A/C Distribution (Excess Revenue) January- June 2013 863,341 Total 2012-13 Distributions $ 1,603,590 Fiscal Year Excess Revenue 2013-14. OC A/Q Distribution (Excess Revenue) July- December 2013 $ 859,108 OC A/C Distribution (Excess Revenue) January- June 2014 3,199,619 Total2013-14 Distributions $ 4,058,727 Increase from 2012-13 Distribution and 2013-14 Distribution $ 2,455,137 Allowable SERAF Payment $ 1,227,569 (One-half of Increase from 2012-13 to 2013-14) 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): 1. Resolution No. 2014-08, "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" Uversignt board RESOLUTION NO. 2014-08 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 1st 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 The Dissolution Act provides for the repayment, and deposit into the Low and Moderate Oversight Board Resolution No. 2014-08 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 14- 15B 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 an portion of the Dissolution Act an determinations rendered or actions or g �' Y p � Y 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. Oversight Board Resolution No. 2014-08 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 24th day of November, 2014. Ch ' e ®RED/0 APPROVED: INITIATED AND APPROVED: Executive ctor (:T�2 DeputyEExecutive Director APPROVED AS TO FORM: Board Counsel Oversight Board Resolution No. 2014-08 ATTACHMENT 1 SUPPLEMENTAL EDUCATION REVENUE AUGMENTATION FUND REPAYMENT SCHEDULE SERAF LOAN PAYMENT- FY2014-15 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 Total 2012-13 Distributions $ 1,603,590 Fiscal Year Excess Revenue 2013-14 OC A/C Distribution (Excess Revenue) July- December 2013 $ 859,108 OC A/C Distribution (Excess Revenue)January-June 2014 3,199,619 Total2013-14 Distributions $ 4,058,727 Increase from 2012-13 Distribution and 2013-14 Distribution $ 2,455,137 Allowable SERAF Payment $ 1,227,569 (One-half of Increase from 2012-13 to 2013-14) Pursuant to Section 34176(e)(-6)(B) the repayment amounts for each fiscal year will be equal to the maximum amount allowed under the section. z Iles. No. 2014-08 STATE OF CALIFORNIA ) COUNTY OF ORANGE .. ) 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 Redevelopment Agency at a meeting held on November 24,2014 and that it was so adopted by the following vote: AYES: Board Members: Bone, Carchio, L. Dunn, Fritzal, Harper NOES: Board Members: None ABSENT: Board Members: A. Dunn, Delgado ABSTAIN: Board Members: None Secret of the tingto eac Oversight Board the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California