HomeMy WebLinkAbout04 REPAYMENT SCHEDULE -HOUSING DEFICITAgenda Item 4
AGENDA REPORT
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
MEETING DATE: MAY 29, 2012
SUBJECT/ACTION: REPAYMENT SCHEDULE — THE HOUSING DEFICIT REDUCTION
PLAN FOR THE FORMER TOWN CENTER REDEVELOPMENT
PROJECT AREA
Reaffirm the repayment schedule for the former Town Center Redevelopment Project
Area's Housing Deficit Reduction Plan as shown in the Second ROPS, as amended.
(Note: the above action of the Oversight Board does not become effective for 3
business days, pending any request for review by the California Department of Finance
("DoF"). If DoF requests review of this Oversight Board action, it shall have 10 days
from the date of its request to approve the Oversight Board action, or return it to the
Board for reconsideration and the action, if subject to review by DoF, shall not be
effective until approved by DoF.)
BACKGROUND
The Town Center Redevelopment Project, adopted in 1976, was not originally subject to
a required set aside of 20% of the tax increment received into a Low and Moderate
Income Housing Fund ("LM Housing Fund") until the passage of legislation in 1985.
The legislation provided a grace period wherein the former Tustin Community
Redevelopment Agency ("Agency") was able to defer deposits into the LM Housing
Fund to allow it to fund the completion of pre-existing plans, programs and activities.
The Agency elected to defer deposits to the LM Housing Fund for Town Center from
1986-87 to 1991-92, in a deferral amount of $2,776,042 which was considered under
California Redevelopment Law as a deficit which required repayment and preparation of
a Housing Deficit Plan.
The former Agency originally approved a Housing Deficit Reduction Plan on February 1,
1993. Given economic conditions, the former Agency approved and adopted a revision
to the Housing Deficit Plan on May 1, 2000 (with adoption of Resolution No. RDA 00-4)
and in accordance with California Community Redevelopment Law Section 33334.6.
The Housing Deficit Reduction Plan was for the repayment of $2,776,042 of what would
have otherwise been required deposits to the LM Housing Fund for Town Center from
1986/87 to 1992/93. The 2000 Deficit Reduction Plan projected the first payments
Agenda Report
May 29, 2012
Page 2
occurring in 2013-14. With the dissolution of Redevelopment and winding down of
activities, repayment to the Housing Fund is now required.
On April 10, 2012, the Successor Agency to the Tustin Community Redevelopment
Agency (Successor Agency) and the Oversight Board approved the First Amended
Initial Recognized Obligation Payment Schedule ("First Amended ROPS") for the period
of January - June 2012 and the Second Recognized Obligation Payment Schedule
("Second ROPS") for the period of July - December 2012. The Town Center Housing
Deficit Reduction Plan was listed as an enforceable obligation in each ROPS with a
schedule for repayment of the Housing Deficit Plan noted.
California Health and Safety Code Section 34171 (d)(G) identifies that any amounts
borrowed from or payments owing to the LM Housing Fund of a redevelopment agency,
which had been deferred as of the adoption date of AB 1 X 26, were enforceable
obligations provided that any repayment schedule is approved by the Oversight Board.
While the Oversight Board did review the repayment schedule as noted on the ROPS,
the Successor Agency is requesting, for the record, that the Oversight Board separately
reaffirm the repayment schedule for the Town Center Deficit identified on the ROPS.
The repayment schedule for the Town Center Deficit is identified over three Fiscal
Years: FY 2011-12; 2012-13; and 2013-14. The first payment is to occur in June and
the two remaining payments are to occur in December. The payments will be deposited
into the LM Housing Fund. The proposed repayment schedule is as follows:
V Amended
Jan — June 2012
TIEW
June 2012
Ul��
$900,000
2 ROPS
July — Dec 2012
December 2012
$900,000
- 4 ffi-- ROPS
July — Dec 2013
December 2013
$976,042
TOTAL
$2,776,042
Staff is available to answer any questions.
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Christine Shingleton
Assistant Executive,
Successor Agency �o the Tustin
Community Redevelopment Agency