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HomeMy WebLinkAbout2013-002 SA2/14/13 LES SUCCESSOR AGENCY RESOLUTION NO. 2013-002 A RESOLUTION OF THE CITY COUNCIL ACTING AS SUCCESSOR AGENCY OF THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ESTABLISHING A SCHEDULE TO REPAY THE LOW AND MODERATE INCOME HOUSING FUND FOR FUNDS ADVANCED FOR EDUCATIONAL REVENUE AUGMENTATION FUND PAYMENT AND SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND PAYMENT PURSUANT TO PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE ("DISSOLUTION ACT") BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, conclusively finds, determines and declares as follows: A. Pursuant to the Dissolution Act, on January 9, 2012, pursuant to section 34173 of the California Health & Safety Code, the City of Santa Ana ("City") elected to serve as the Successor Agency for the dissolved Community Redevelopment Agency ("Agency") of the City of Santa Ana and selected the Housing Authority of the City of Santa Ana to act as "Successor Housing Agency'. B. The City Council serves as the governing body of the Successor Agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs. Many actions of the Successor Agency are subject to the review and approval of a seven member Oversight Board of the Successor Agency to the former Community Redevelopment Agency of the City of Santa Ana ("Oversight Board"). C. The Oversight Board has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former Agency in accordance with the California Health & Safety Code. D. As permitted by law, the former Agency borrowed funds from its Low and Moderate Income Housing Fund ("LMIHF") in order to make its Educational Revenue Augmentation Fund ("ERAF") payment to the State in May 2006. Funds in the amount of $3,330,894.37 were borrowed from the LMIHF and required to be repaid in ten (10) years. E. Funds were borrowed from the LMIHF pursuant to California Health & Safety Code sections 33690 and 33690.5 in order for the former Agency to make its Supplemental Educational Revenue Augmentation Fund ("SERAF") payment to the State in May 2010. Funds borrowed in the amount of $3,679,546 from the LMIHF were required to be repaid in five (5) years. Other funds were borrowed from a separate Agency fund in order to pay the balance to the State. Resolution No. 2013-002 Page 1 of 3 F. The amount currently owed to the LMIHF is $5,568,314. G. Health & Safety Code sections 34180 (a) and 34171(d)(1)(G) provide that the repayment of this loan from the LMIHF must be approved by the Successor Agency, after approval of the Oversight Board, and the Oversight Board must establish and approve repayment schedules or other mandatory loan terms. Additionally, funds are to be repaid to the LMIHF in the manner prescribed in HSC Section 34176(e)(6)(B). H. 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); and are concurrently considering the subject loans as part of ROPS 13-14A. Section 2. The Successor Agency hereby resolves and orders that the amount loaned by the former Community Redevelopment Agency of the City of Santa Ana from the Low and Moderate Income Housing Fund be repaid to the Successor Housing Agency per the attached repayment schedule, attached hereto as Exhibit A and incorporated herein by this reference, and be included on future Recognized Obligation Payment Schedules. Section 3. The Clerk of the Council shall certify to the adoption of this Resolution. Resolution No. 2013-002 Page 2 of 3 2/14/13 LES ADOPTED this 19th day of February 2013. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa E. Storck Assistant City Attorney YES: Councilmembers: Amezcua, Benavides, Martinez, Reyna, Pulido, (5) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Councilmembers: Sarmiento, Tinajero (2) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2013-002 to be the original resolution adopted by the City Council acting as the Successor Agency on February 19, 2013. Date: 1-t 6'r i3 ? 47 Maria D. Huizar, Clerk of e Council Resolution No. 2013-002 Page 3 of 3 EXHIBIT A CITY OF SANTA ANA, ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA Educational Revenue Augmentation Fund (ERAF) / Supplemental Revenue Augmentation Fund (SERAF) Loan Repayment Schedule Funds Borrowed From: Former Low and Moderate Income Housing Fund Outstanding Balance Due as of 6130112: $ 5,568,314 Payment Date June 30, 2013 December 31, 2013 June 30, 2014 December 31, 2014 June 30, 2015 December 31, 2015 June 30, 2016 Tota I Repayment Amount * Balance $ - $ 5,568,314 1,000,000 4,568,314 1,000,000 3,568,314 1,000,000 2,568,314 1,000,000 1,568,314 784,157 784,157 784,157 - $ 5,568,314 * Note: Health & Safety Code § 34176, subd. (e)(6)(B) specifies the loan repayment calculations, which is based on factors not yet determined. Therefore, these repayment amounts are inherently only estimates and are subject to change.