2012-002 - The Successor Housing Agency Pursuant to Health and Safety Code Section 34176

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1-9-12 LES REVISED RESOLUTION NO. 2012-002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DESIGNATING THE CITY OF SANTA ANA AS THE SUCCESSOR AGENCY FOR THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO HEALTH AND SAFETY CODE SECTION 34173 AND DESIGNATING THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AS THE SUCCESSOR HOUSING AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of the City of Santa Ana conclusively finds, determines and declares as follows: A. The California Supreme Court's decision in the recent California Redevelopment Agency v. Matosantos case upheld A61X 26 which will now control the dissolution and winding down of every California redevelopment agency, and declared unconstitutional AB1X 27 which would have enabled agencies to remain in operation as long as they made specified annual payments to the state. B. Pursuant to section 34173 of the California Health & Safety Code, the City may elect to serve as the Successor Agency for the former Community Redevelopment Agency of the City of Santa Ana ("Agency"). The Successor Agency will administer the dissolution of the Agency, including the disposition of all assets, properties, contracts, leases, records, buildings and equipment of the former Agency. C. Pursuant to section 34176 of the California Health & Safety Code, the City may elect to assume the housing assets and functions previously performed by the Agency or may select the local housing authority that is in the territorial jurisdiction of the former Agency. Thus, the City can select the Housing Authority of the City of Santa Ana to receive the housing assets of the Agency and to perform housing functions (including all rights, powers, duties and obligations) previously performed by the Agency. D. Health and Safety Code Section 34173(e) provides that "the liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency." Thus, the City's obligations as Successor Agency are limited by the amount of property taxes and the value of assets it receives in its role as the Successor Agency. E. By taking on the housing functions of the former Agency, the Housing Authority may incur obligations relating to the development and/or monitoring of Resolution No. 2012-002 Page 1 of 3