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Payment to ERAF and an Ordinance <br />Amending the Six Redevelopment Plans <br />co Extend Certain Time Limits <br />May 3, 2004 <br />Page 2 <br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION <br />1. Recommended that the City Council: <br />a) Adopt an ordinance extending time limits on the effectiveness <br />of the redevelopment plans and extending the time limit on the <br />use of tax increment to repay indebtedness by one year. <br />b) Approve an appropriation adjustment transferring funds from the <br />Low and Moderate - Income Housing Fund to redevelopment project <br />area funds to make the necessary payment to the County <br />Educational Revenue Augmentation Fund as required by <br />legislation implementing the California State Budget for FY <br />2003 -2004. <br />2. Recommended that the Community Redevelopment Agency: <br />Adopt a resolution finding that borrowing $1,830,569 in Housing Set - <br />Aside Funds to make the FY 2003 -2004 payment to the Educational <br />Revenue Augmentation Fund is necessary due to the insufficiency of <br />other revenue sources. <br />By a vote of 5:0 (Rodriguez, Turner absent) at its Regular Meeting of <br />April 20, 2004. <br />As a result of Senate Bill 1045 (SB 1045) implementing the California <br />State Budget for FY 2003 -2004, the Community Redevelopment Agency is <br />required to make a $1,830,569 payment to the County Educational Revenue <br />Augmentation Fund (ERAF) by May 10, 2004. The legislation allows the <br />Agency to borrow up to 50 percent of the amount required to be allocated <br />to the Low and Moderate - Income Housing Fund during FY 2003 -2004 to make <br />this payment. The funds may be borrowed for up to ten years. As a <br />condition of borrowing the funds from the Low and Moderate - Income Housing <br />Fund, the Agency must adopt a resolution making a finding that there are <br />insufficient other moneys to make the required payment. <br />