HomeMy WebLinkAboutCORRESPONDENCE_1A_CLOSED SESSION
CC : O3I04/2013
Closed Session
PUBLIC JAWCENTER
PROVIDING ACCESS TO JUSTICE
FOR ORANGE COUNTY'S LOW INCOME RESIDENTS
Via email
March 4, 2013
Santa Ana City Council.
20 Civic Center Plaza
P.O. Box 1988, M31
Santa Ana, CA 92701
L"mailed try: council@santa-ana.org
Re: Closed Session Item 1A: California Department of Finance's Demand for Payment
of Low and Moderate Income Housing Fund
Dear Councilpersons:
Public Law Center (PLC) represents low income residents of Santa Ana in a broad range
of matters that affect the stability of families, including access to affordable housing. The Public
Interest Law Project (PILP) is a statewide backup center for legal services organizations
throughout California, specializing in affordable housing laws on redevelopment and land use.
Our organizations appreciate the hard work staff of the City of Santa Ana Successor Agency have
done to preserve Low and Moderate Income Housing Funds from diversion by the State
Department of Finance (DOF).
The City of Santa Ana acting as Successor Agency to the farmer redevelopment agency is
holding funds in the LMIHF that we believe should be placed in the Low and. Moderate Income
Housing Asset Fund (Asset Fund). The Successor Agency agrees with this position, and has
transferred such funds to the Housing Authority of the City of Santa Ana. Meanwhile, DOF has
demanded that the transferred funds be returned to the successor agency, which we understand has
been done. The DDR for the LMIHF determined that such funds were encumbered. DOF again
disagreed, and through its letter of February 25, 2013, continues to make demand that some $55M
be sent the County Auditor Controller for distribution to the taxing entities.
On December 20, we requested on behalf of our clients that such funds be retained by the
Successor Agency. We applaud the City's decision to retain the fiends, rattler than be distributed
to the taxing entities.
Today we filed suit against DOF for the retention of funds identified in DOF's DDR
review of February 25. The City should take no actions to distribute funds as requested by DOF's
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601 Civic Center Drive West -Santa Ana, CA 92701-4002 - (714) 541-1010 - Fax(714)S41-5157
letter, as such distribution would be contrary to law. Furthermore, to avoid any dispute with our
clients, we ask that the Successor Agency stipulate that it will hold those funds pending the
judicial determination regarding the appropriate use of these funds.
We encourage the Successor Agency to file its own action to ensure retention of these
funds. It is in the best interest of the low-income community of the City of the Santa Ana that the
City seek judicial review of the Department of Finance decision before it hands over any LMIHF
to the County Auditor-Controller. Should the City agree with our position we pledge to work with
the City in seeking judicial review of the DGF's position..
Sincerely yours,
Chrlstlan Ayasto
Director of Litigation
PUBLIC LAW CENTER
CC, Sandi Gottlieb, Program Manager, City of Santa Ana
Sonia R. Carvahlo, City Attorney
Maria D. Huizar, Clerk of the Council
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601 Civic Center Drive West • Santa Ana, CA 92701-4002 (714) 541-1410 • Fax (714) 541-51.57