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<br /> <br /> REQUEST FOR <br /> COUNCIL ACTION <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> JANUARY 9, 2012 <br /> TITLE: APPROVED <br /> E3 As Recommended <br /> RESOLUTION FOR REDEVELOPMENT O Amended <br /> SUCCESSOR AGENCY AND SUCCESSOR O O Or rdinance on 2 IReading <br /> ~ Ordinance on 2d Reading <br /> HOUSING AGENCY PER ABX9 26 O Implementing Resolution <br /> E] Set Public Hearing For <br /> CONTINUED TO <br /> FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> Adopt a Resolution designating the City of Santa Ana to serve as the Successor Agency and <br /> designating the Housing Authority of the City of Santa Ana to serve as the Successor; Housing <br /> Agency for the former Community Redevelopment Agency of the City of Santa Ana pursuant to <br /> ABX1 26. <br /> DISCUSSION <br /> On June 28, 2011, the Governor of California signed two bills that impact redevelopment <br /> agencies throughout the State, ABX1 26 (Dissolution Bill) and ABX1 27 (Continuation Bill), as <br /> part of the 2011-12 State budget. Subsequently, the California Redevelopment Association <br /> (CRA) and League of California Cities (League) filed a lawsuit (CRA v Matosantos) challenging <br /> the constitutionality of this legislation. On December 29, 2011, the Supreme Court issued its <br /> ruling and upheld ABX1 26, but struck down ABX1 27, the bill that would have allowed agencies <br /> to remain in operation and participate in a voluntary alternative redevelopment program by <br /> making community remittance payments. For Santa Ana, this means the loss of substantial <br /> revenues and a vital economic development and affordable housing tool. Any program or project <br /> not deemed as an enforceable obligation will be eliminated. <br /> Pursuant to ABX1 26, the Supreme Court's decision, and as recommended by legal counsel, the <br /> City needs to proceed with adoption of a resolution declaring its intent to serve as the Successor <br /> Agency and designating the Housing Authority of the City of Santa Ana to serve as the <br /> Successor Housing Agency. This resolution must be submitted to the County Auditor-Controller <br /> no later than January 13, 2012_ As of February 1, 2012, the Community Redevelopment Agency <br /> of the City of Santa Ana ("Agency") will be dissolved, and the Successor Agency and Successor <br /> Housing Agency will be required to make payments and perform other obligations due from the <br /> enforceable obligations of the former Agency. Over the next few months, the City, as the <br /> Successor Agency, will be required to take further actions including initiating the establishment of <br /> the mandated Oversight Board. <br /> 55A-1 <br />