4 - RESO - ESTABLISH REPAYMENT SCHEDULE

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REQUEST FOR - SUCCESSOR AGENCY t ACTION MEETING DATE: FEBRUARY 19, 2013 TITLE: RESOLUTIONS - ESTABLISHMENT OF REPAYMENT SCHEDULES FOR SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND AND EDUCATIONAL REVENUE AUGMENTATION FUND LOANS CLERK OF THE COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Implementing Resolution ? Other 0- e_,- 4- - ? CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Adopt a resolution establishing a schedule to repay the Low and Moderate Income Housing Fund for the Supplemental Educational Revenue Augmentation Fund and Educational Revenue Augmentation Fund loans; 2. Adopt a resolution establishing a schedule to repay the South Main Corridor Fund for the Supplemental Educational Revenue Augmentation Fund loan. DISCUSSION The Successor Agency and Oversight Board previously recognized and approved the existing Supplemental Education Revenue Augmentation Fund (SERAF) and Education Revenue Augmentation Fund (ERAF) loans as part of the Recognized Obligations Payment Schedules (ROPS). As required by the Dissolution Act [HSC Sections 34180(a) and 34171(d)(1)], and pursuant to the December 18, 2012 ROPS Determination Letter received from the State Department of Finance (DOF), the Oversight Board must also establish and approve repayment schedules or other mandatory loan terms. As permitted by law, the Santa Ana Redevelopment Agency borrowed funds for the required SERAF payment in May 2010 (Exhibit 1), and for the ERAF payment in May 2006 (Exhibit 2). Funds for the 2010 SERAF payment were taken from the Agency's Low and Moderate Income Housing Fund (LMIHF) in the amount of $3,679,546 and were required to be repaid in five years. The remaining balance of $6,302,827, was borrowed from the South Main Commercial fund. Funds in the amount of $3,330,894.37 for the 2006 ERAF payment were borrowed from the LMIHF and required to be repaid 4-1