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P.H. - Payment to ERAF <br />An Ordinance Amending <br />Redevelopoment Plan to <br />Time Limits <br />May 2, 2005 <br />Page 2 <br />and <br />the Merged <br />Extend Certain <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 for <br />eligible project areas and making certain required findings. <br />b) Approve an appropriation adjustment transferring loan funds <br />from the Low and Moderate - Income Housing Fund to redevelopment <br />project 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 />2004 -2005. <br />2. Recommended that the Community Redevelopment Agency adopt a <br />resolution finding that borrowing $3,401,346.78 in Housing Set - <br />Aside Funds to make the FY 2004 -2005 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 (Betancourt and Robles absent) at its Regular Meeting <br />of April 19, 2005. <br />DISCUSSION <br />As a result of Senate Bill 1096 (SB 1096) implementing the California <br />State Budget for FY 2004 -2005, the Community Redevelopment Agency is <br />required to make a $3,401,346.78 payment to the County Educational <br />Revenue Augmentation Fund (ERAF) by May 10, 2005. The legislation <br />allows the Agency to borrow up to 50 percent of the amount required to <br />be allocated to the Low and Moderate - Income Housing Fund during FY 2004- <br />2005 to make this payment. The funds may be borrowed for up to ten <br />years. As a condition of borrowing the funds from the Low and Moderate - <br />Income Housing Fund, the Agency must adopt a resolution making a finding <br />that there are insufficient other moneys to make the required payment. <br />The legislation implementing the State's FY 2004 -2005 budget authorized <br />the County Auditor /Controller to withhold property tax revenue from the <br />City's General Fund to the extent that the $3,401,346.78 payment is not <br />F <br />