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HomeMy WebLinkAbout19 LEGISLATIVE REPORTAgenda Item 19 Reviewed. AGENDA REPORT City Manager .4k� Finance Director kA MEETING DATE: JUNE 5, 2012 TO: JEFFREY C. PARKER, CITY MANAGER FROM: PATRICIA ESTRELLA, CITY CLERK SERVICES SUPERVISOR SUBJECT: LEGISLATIVE REPORT SUMMARY: Staff has prepared the following Legislative Summary for the Council's review: • Redevelopment Clean-up Bills & other Proposed Related Legislation for FY 2011-2012 RECOMMENDATION: Receive and file. Redevelopment Clean -up Bills & other Proposed Related Legislation Updated for City Council Meeting June 5, 2012 SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area 654 Steinberg Redevelopment • Revises the term enforceable obligation and modify provisions relating to the 04/16/2012 • Ensures the Housing Authority clean -up transfer of housing funds and responsibilities. LAST ACTION: Assembly, receives the Housing Fund legislation . Expands the exception to loan agreements between the City and Agency Referred to Housing and balance. The current law is include agreements involving a loan specific to a Project Area and other Community Development and unclear. specified obligations. Local Government . Provides additional statutory COMM. LOCATION: justification for existing Housing and Community City /Agency loans to be Development considered as enforceable obligations (bill language is 01/31/2012 Senate passed the being reviewed for implications bill (34 -1) on Tustin). 986 Dutton Redevelopment: Provides that all unencumbered balances of funds that are derived from tax 05/25/2012 Protects the MCAS Tustin Tax Bond Proceeds exempt bond proceeds be used in accordance with the requirements of this bill. LAST ACTION: Senate - second Allocation Bond Proceeds from Proceeds of bonds issued on or before December 31, 2010 must be used by the reading. Passed from being used for purposes (e.g., successor agency for the purposes for which the bonds were sold pursuant to an Appropriations 05/24/2012. defeasement) other than for what enforceable obligation. Bond proceeds not subject to an enforceable obligation FILE DATE: 05/29/2012 they were originally intended. or if the purpose for which the bonds were sold can no longer be achieved, then the bond proceeds shall be used to defease the bonds or to purchase outstanding bonds on the open market for cancellation. Authorizes the Oversight Board to approve of the establishment of an enforceable obligation with respect to bond proceeds if certain requirements are met, including, among others, if the obligation is reasonably in furtherance of the purposes for which the bonds were sold. Urgency statute requiring a 2/3 vote. Updated activity since the last report New legislation since the last report SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area 1220 DeSaulnier Housing Imposes a fee of $75 to be paid on every real estate instrument, paper, or notice 05/25/2012 The new source of funds for Opportunity recorded in connection with a transfer subject to the imposition of a LAST ACTION: Bill Amended affordable housing is an additional Trust Fund Act documentary transfer tax. Bill would create a state - mandated local program. 05/25/2012, Ordered to third fee from what is being currently of 2012 Funds sent quarterly to Dep't of Housing and Community Development for reading in Senate. Passed from charged. Concern is that State deposit in the Housing Opportunity Trust Fund to be expended for supporting Appropriations 05/24/2012 doesn't generate housing generally affordable housing, administering housing programs, and the cost of periodic per se but local jurisdictions audits. Requires a 2/3 vote. working in concert and in public/ private partnerships 1335 Pavley Redevelopment: Authorizes a Successor Agency to retain property obtained by the former 05/24/2012 It is unknown as to whether the brownfield sites redevelopment agency for specified remediation or removal purposes of the LAST ACTION: Held in Agency owned any land that might release of hazardous substances, as defined, at a brownfield site using available committee and under be considered a brownfield site. In financing, funds, and grants, subject to approval of the oversight board pursuant submission. particular, there have not been to specified procedures. Upon completion of remediation, the successor agency COMM. LOCATION: specific soil studies completed on is required to dispose of the property pursuant to existing asset disposition Appropriations the remnant former Case Swayne provisions. Amends Section 34171 of the Health and Safety Code to add 'Land of property along Edinger acquired as the former redevelopment agency that is a brownfield site' to the list of part of Newport Avenue project. enforceable obligations. Defines 'land that is a brownfield site' to mean contaminated parcels and surrounding or nearby related parcels that are considered part of the site for the purpose of financing the remediation and redevelopment of the site. Pending Oversight Board approval, the Successor Agency may solicit and accept federal and state grants for the purposes of remediation where assistance is conditioned upon the provision of matching funds by the Successor Agency in an amount greater than 5 %. The Oversight Board may approve a request of the Successor Agency to enter into an enforceable obligation to provide matching funds if it is demonstrated that other available sources of funds are not sufficient to provide the matching funds. In addition, the Oversight Board is required to find one of the following is applicable: 1) remediation of the site will maximize its value; or 2) failure to remediate the site poses an imminent threat to public health, safety, or the environment. SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area 1151 Steinberg Redevelopment: • Provides that the asset disposition and transfer provisions do not apply to a 05/25/2012 • The Department of Finance can Long Range Asset jurisdiction in which a Community Development and Housing Authority (authority) has LAST ACTION: Senate — second condition approval of the long - Management Plan been formed by August 1, 2012. reading. Passed out of range asset management plan on • The bill would establish a Sustainable Economic Development and Housing Trust Fund, Appropriations 05/24/2012. the establishment of a minimum to be administered by an authority, to serve as a repository of the unencumbered FILE DATE: 05/29/2012 asset distribution requirement. balances and assets of the former redevelopment agency. • All entities receiving financial • Authorize moneys from the fund to be expended for specified purposes relating to support from or authorized by this economic development and affordable housing. article are required to incorporate • The authority, rather than the successor agency, would be required to prepare a long- a jobs plan, focused on range asset management plan that governs the disposition and ongoing use of the construction careers that pay fund. prevailing wages, living wage • Plan must be submitted to the Department of Finance by December 1, 2012, and permanentjobs, and a program for would require department approval or to return the plan for revision to the authority community outreach, local hire, prior to final approval by December 31, 2012. and job training. • Legislature finds and declares that the assets, et. al, of former redevelopment agencies constitute a valuable resource that should be maintained for the purpose of economic development and housing within the communities served by the former redevelopment agency. SECTION 34177.1 AMENDED FROM PREVIOUS ADDITION • A Community Development and Housing Authority shall prepare a long range asset management plan that governs the disposition and ongoing use of the Sustainable Economic Development and Housing Trust Fund. • Outlines a strategy for maximizing the long -term value of the real property and assets of the former agency for ongoing economic development and housing functions. • Plan shall do the following: • Be submitted to the Dep't of Finance (DoF) by December 1, 2012 and be approved by December 31, 2012. Updated annually and submitted to the DoF for approval by December 1 of each year. • DoF, as a condition of granting approval to the long -range asset management plan, may choose to establish a minimum asset distribution requirement, to ensure that K -14 schools and local agencies receive a minimal amount of funding from the dissolution of assets. • Shall outline a strategy for maximizing the long -term social and monetary value of the real property and assets in the trust for the purpose of sustainable economic development and creating high wage, high skill jobs, and affordable housing. • Include an inventory of all assets: 1) the date of the acquisition of the asset and SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area the value of the asset at that time, and an estimate of the current value of the asset; 2) the purpose for which the asset was acquired; and 3) for real property assets parcel data — an estimate of the current value of the parcel, history of environmental contamination, description of the strategic value of the property, and a brief history of pervious development proposals and activity. • All entities receiving financial support from or authorized by this article shall incorporate into any and all agreements a jobs plan, which shall describe how the project will create construction careers that pay prevailing wages, living wage permanent jobs, and a program for community outreach, local hire, and job training. Plan shall also describe the project developer's commitment to offer jobs to disadvantaged California residents, including veterans of the Iraq and Afghanistan wars, people with a history in the criminal justice system, and single parent families. SECTION 34177.2 ADDED • Trust Fund is to serve as the repository of the unencumbered balances for each former redevelopment agency's funds, assets and properties. • Trust Fund is administered by the Community Development and Housing Joint Powers Authority. • Moneys in the Fund may be used for any of the following purposes: 1) public or private infrastructure needed for infill development; 2) affordable housing; 3) transitional housing; 4) loans to public or private entities for development activities; 5) environmental mitigation; 6) payment of liabilities of former redevelopment agency; 7) land acquisition; 8) clean energy and energy efficient investments; and 9) educational, labor- management and job training programs. 1157 Berryhill Successor • Makes technical, nonsubstantive changes to the provisions of law relating to 03/01/2012 Technical changes to clarify Agency duties the duties of the successor agency. LAST ACTION: Referred to sections regarding payment of • Prohibits successor agency from accelerating payments between February 1, Committee on Rules. enforceable obligations. 2012 and July 1, 2012. 1439 Huff City of Monrovia Requires a successor agency to continue to oversee the development and 04/9/2012 Allows successor agencies who are construction of any regional transportation project of the former redevelopment LAST ACTION: Re- referred to working on regional transportation agency. This bill no longer exempts Monrovia Redevelopment Agency from the Committee projects to complete the projects. suspension and dissolution provisions but instead focuses on regional COMM. LOCATION: transportation projects. Governance & Finance SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area 1156 Steinberg Economic GENERAL PROVISIONS 05/25/2012 • Includes a provision for the Development • Authorizes the legislative body of the city representing the geographic territory LAST ACTION: Read second receipt of tax increment funds. covering the area served by the former redevelopment agency to elect to form a C-A-Mmi-Inity Develepment Hewing jei,T Rewers Sustainable time and Bill amended. • Establishes a Cencimunity Ordered to third reading. ,,.,,,1 n,,.,..�.ent;;nd we.-, ;Ong Ieent and- .40the-4ty 0,,..,,,.s Aut4e4ty Sustainable Communities Investment Authority (authority) after July 1, 2012, to carry out the FILE DATE: 05/29/2012 provisions of Community Redevelopment Law, as amended, to increase, improve, and preserve the community's supply of low- and moderate - income housing available at Communities Investment affordable housing cost. The bill would specify the process by which the governing Authority. body of an authority maybe formed. The bill would authorize the authority to adopt a • The amended bill eliminates the plan for a sustainable communities investment area and to include in that plan a provision of communities provision for the receipt of tax increment funds provided that specified requirements retaining the Low and are met. Moderate Income Housing • Establishes prequalification requirements for construction contracts that will receive Fund. more than $1,000,000 from the Sustainable Communities Investment Authority and • Requires coordination and would require the Department of Industrial Relations to monitor and enforce cooperation from the county. compliance with prevailing wage requirements for specified projects. Deposits moneys received by the department from the developer charges related to the costs of monitoring and enforcement in the State Public Works Enforcement Fund. By depositing a new source of revenue in the State Public Works Enforcement Fund, a continuously appropriated special fund, the bill would make an appropriation. spec financing, that land have bee-R previded eelctaffin Fnitigatien and use plans .,d°,, A„„++QQ add. te AUTHORITY • Legislative body may elect to form a Sustainable Communities Investment Authority to carry out provisions of the Community Redevelopment Law. The legislative bodies of the city and county enter into a joint powers authority under Chapter 5 of Title 1 of the Government Code. The governing board of the authority maybe formed by any of the following proceedings: • Legislative body of the city forms the governing board provided the economic development parameters are approved by the county. • Governing board is appointed for an area consisting of five appointees: two appointed by city, two by the county, and one appointed by a special district. SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area • Legislative body of the city appoints the governing board but restricts the authority so that it may receive only the city share of tax increment revenue. • Legislative body of the city appoints the governing board and designates a sustainable communities investment area consisting of a single project and restricts the authority so that 100 percent of tax increment revenue in invested in the project. • The Authority may enter into financial and other agreements with community colleges, K -12 school districts, and private businesses to facilitate the development and operation of articulated career technical education pathways. • An Authority may adopt a plan for a sustainable communities investment area. A determination of blight is not required. Plan terminates on a specified date not to exceed 30 years from the date of the first issuance of bond indebtedness. • A project area may only include the following areas: 1) where a sustainable communities strategy has been adopted by the metropolitan planning organization and specific to transit priority areas and small walkable communities. Transit priority areas may include a military base reuse plan that meets the definition of a transit priority area and a contaminated site within a transit priority area.; 2) clean energy manufacturing sites; TAX INCREMENT • The plan for a sustainable communities investment area may include a provision for the receipt of tax increment funds according to Section 33670, provided that the local government with land use jurisdiction had adopted all of the following: • An analysis of the public service costs and revenue - generating impact of new development with respect to the provision of basic public services. It shall include a strategy for mitigating unfunded service impacts. • A sustainable parking standards ordinance that restricts parking in transit priority parking areas. • A jobs plan. All entities receiving financial support from the authority shall incorporate into any and all agreements a jobs plan, which shall describe how the project will create construction careers that pay prevailing wages, living wage permanent jobs, and a program for community outreach, local hire and job training. • New residential construction providing a density of at least 20 dwelling units per net acre and for nonresidential uses, a minimum floor area ration of 0.75 or the metropolitan planning organization's concurrence that the plan is consistent with the use designation, density, building intensity, and applicable policies for the project area in the sustainable communities strategy. SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area FINANCING • Lew naAdpr. it HAI d hall r d • yq1, 4-,1x Ah1 and �C C'C1TEA�'l1lVClS'H� �JTTITT- GCTCC'Q1T�lC�'CI- 1�T�rl: �Q SCiIITTQA7C g� E-e-e-RA-Mie f1r..,r.Ir.V,m Heusing Trust Cued- fr.r u nd-er seetie_ ent and 4r-, r, mfr. rrr..J to an ageney designated by the r'everner • State or Local public pension fund systems may invest capital in the public infrastructure projects and private commercial and residential developments undertaken by the Authority. • May exercise the full powers granted under Chapter 2.8 of Part 1 of Division 2 of Title 5 of the Gov't Code and the Marks -Roos Local Bond Pooling Act of 1985 of Chapter 5 of Division 7 of Title 1 of the Gov't Code. • An Authority may implement a local transaction and use tax, except that the resolution authorizing the tax may designate the use of the proceeds of the tax. • An Authority may issue bonds paid for with Authority proceeds. 1056 Hancock Redevelopment: Adds financial obligations relating to a project funded with a combination of 04/16/2012 Does not appear to impact Tustin. Enforceable property tax increment from the former redevelopment agency and a Federal LASTACTION: Cancelledfirst Obligations Qualified School Construction Bond issued prior to January 1, 2012 to the hearing set for April 18. definition of the term "enforceable obligation ". Urgency statute requiring a 2/3 COMM. LOCATION: vote. Governance & Finance 214 Wolk Infrastructure • Eliminates the requirement of voter approval in regards to creating an 09/09/2011 Does not address the current law's Financing infrastructure financing district, adopting the plan and issuing bonds. LAST ACTION: Ordered to limitation on Project Areas Districts: voter • Extends the expiration date of an infrastructure financing district from 30 inactive file on request of becoming Infrastructure Districts. approval: repeal years to 40 years. Assembly Member Ma. FILE: ASM INACTIVE FILE FILE DATE: 03/15/2012 ITEM: A- 19 SENATE Bill # Primary Major Topical Description of Bill Status Major Issues/ Opportunities Author Area 1472 Pavley & Real Property: Amends the Civil Code and the Health and Safety Code to delete the repeal clause 05/03/2012 The Language regarding fines was DeSaulnier Blight of January 1, 2013 for imposing civil fines and extending the operation of these LAST ACTION: In Assembly, amended to keep the fine at the provisions indefinitely. read first time and held at current level, an up to $1,000 per desk. day fine. Initially, the bill proposed COMM. LOCATION: Not increasing the fine to $5,000, for assigned failure to maintain property. 05/03/2012 Senate passed the bill (36 -0) ASSEMBLY Bill # Primary Major Topic Description of Bill Status Major Issues Author 1585 Perez Redevelopment ASSEMBLY PASSED WITH URGENCY CLAUSE ADOPTED 04/19/2012 • Ensures the Housing Authority Clean -up Ensures Preservation of Funding for Affordable Housing LAST ACTION: Senate, Referred to receives the Housing Fund balance. legislation • Amount on deposit in the Low and Moderate Income Housing Fund can be retained for Committees on Governance & • 80% of funds must be committed use by successor housing agencies. The funds can only be spent on specified affordable Finance and Transportation & within two years and spent within housing functions. Housing. Assembly passed with four years. • Must contract to expend 80% of the funds within two (2) years and spend these funds urgency clause adopted (56 -7). • Provides additional statutory within four (4) years. COMM. LOCATION: Governance & justification for existing City /Agency Ensures Loan Repayments to help provide Local Services Finance loans to be considered as enforceable • Expands the exception of loans provided to the Agency from City to include loans specific obligations. to a Project Area and other specified obligations. Provided the oversight board makes a 03/26/2012 Assembly passed the • Protects agency assets integral for finding that the loan was for legitimate redevelopment purposes, loan agreements bill with an urgency clause adopted governmental purposes. entered into between the Agency and City would be deemed an enforceable obligation. (56 -7). • Ensures sufficient funds are available • Oversight board may also condition its approval on a loan being repaid on a defined to make debt service payments. schedule over a reasonable term, at an interest rate not to exceed the interest rate • Clarifies that funds for employee earned by funds deposited into the Local Agency Investment Fund. costs associated with specific projects Preserves Asset Value and Avoids Potential "Fire Sale" Phenomenon are not subject to the administrative • A complete inventory of existing real property assets, by project area, is required and cap. would include the general categories of such assets, the purpose for which they were originally acquired, the original purchase price and the estimate current market value. • Oversight boards would be authorized to direct the transfer of assets integral for a government purpose to an appropriate governmental jurisdiction. • Prior to disposing of any assets, oversight boards would be required to adopt a strategy for disposal or transfer of assets in an expeditious manner that preserves the assets' value. Improves Process to Avoid Possible Bond Defaults • A successor agency would be able to use the initial enforceable obligation payment schedule (EOPS) until a final recognized obligation payment schedule (ROPS) is adopted. • A full year of debt service requirements and other obligations may be provided on the first six -month enforceable obligation list, and requires the auditor - controller to ensure that sufficient funds are reserved to make necessary payments. • Successor agencies can refinance outstanding debt when obligations exceed available revenue, with the approval of an oversight board. Other Important Procedural and Technical Changes • Clarification provides that a successor agency is a legally distinct and separate body that acts by resolution, can sue and be sued, and can have additional powers that may be conferred upon it. • Provides clarification that employee costs associated with specific project implementation activities are not subject to the administrative cap. ASSEMBLY Bill # Primary Major Topic Description of Bill Status Major Issues Author 1644 Carter California Requires a military base reuse plan contain several elements relating to 04/09/2012 The amended bill does not appear Military Base economic, environmental, and low -and moderate - income housing impacts of the LAST ACTION: Amended to benefit MCAS Tustin. The City Reuse and military base closure. Bill authorizes a reuse authority to acquire and dispose of 03/29/2012, Re- referred to already has control of the military Preservation Act real property and other former military base assets adjacent to, or near, the Committee, 04/09/2012 base real property. of 2012 former base. COMM. LOCATION: Local The amended bill eliminated language allowing funds to be deposited in the Government California Military Base Closure Fund to be used solely for the sole purpose of redeveloping the affected area. 1828 Bonilla Land use: Authorize Contra Costa County and the City of Concord to establish the Concord 04/04/2012 While it does not address MCAS Concord Naval Naval Weapons Station Reuse Authority to plan for, finance, and manage the LAST ACTION: Referred to Tustin, the bill recognizes the Weapons Revise transition of the property from military to civilian use. Committee unique situation faced by Authority COMM. LOCATION: Local communities with former military Government bases. HEARING DATE: 04/25/2012 485 Ma Infrastructure • In regards to Transit Village Development District and infrastructure financing 09/07/2011 Does not address the current law's Financing plans, the bill proposes the following: LAST ACTION: Ordered to limitation on Project Areas • Eliminates the requirement of voter approval for the following: inactive file at the request of becoming Infrastructure Districts. adoption of an infrastructure financing plan; creation an Senator Wolk. infrastructure financing district; and the issuance of bonds. FILE: SEN INACTIVE FILE - o Requires 20% of the revenue bonds be used for affordable ASSEMBLY BILLS housing. FILE DATE: 03/15/2012 • Eliminates the requirement of voter approval for the following: adoption of an ITEM: A- 23 infrastructure financing plan; creation an infrastructure financing district; and the issuance of bonds. • Extends the expiration date of an infrastructure financing district from 30 years to 40 years. 1555 Norby Debt Prohibits the Oversight Board from requiring the successor agency to take any 05/21/2012 The law currently allows the forgiveness action that results in the forgiveness, wholly or partially, of a loan, advance, or LAST ACTION: Ordered to Successor Agency to terminate all agreements indebtedness that is owed by a private entity to the dissolved redevelopment inactive file at the request of existing agreements that do not agency. Norby. qualify as enforceable obligations. This bill prohibits debt owed by a private entity to be forgiven. ASSEMBLY Bill # Primary Major Topic Description of Bill Status Major Issues Author 1692 Wieckoski Bankruptcy: Amends Section 53760.1 and 53760.3 of the Government Code, relating to 05/14/2012 The Amended Bill on 05/02/2012 Redd ° ^ ^ +: bankruptcy. Revises and recasts the bankruptcy procedures that apply to the LAST ACTION: Read second removes Successor Agencies from elep Sur=eesseF neutral evaluation process. Authorizes the neural evaluator to toll the limitation time. Ordered to third the list of entities authorized to file Ageneies period for the neutral evaluation process based upon a finding that the local reading. for bankruptcy. public entity or any interested parties' conduct in presenting information required under this process prevented the parties from effectively proceeding in the Bill no longer addresses Successor neutral evaluation process. Authorizes the neutral evaluator to request and Agencies and it will be removed control the process of an independent investigation, as specified. Provides that from future Legislative reports. the neutral evaluation process shall end upon a specified circumstance. 1614 Monning Fort Ord Reuse Amends Section 67700 of the Government Code relating to the Fort Ord Reuse 04/19/2012 Recognizes the unique challenges Authority Act Authority Act. Provides an extension to when the Act becomes inoperative. LAST ACTION: Senate, Referred communities with former military to Committee on Governance base face. & Finance COMM LOCATION: Governance & Finance 03/29/2012 Assembly passed the bill (55 -14) 2144 Perez & Infrastructure Amended version became more focused on the economic development tool of 05/21/2012 Current legislation precludes Atkins Financing Infrastructure Financing Districts, deleting the current provision in the Law LAST ACTION: Senate, read creating an Infrastructure Financing District prohibiting an Infrastructure Financing District from including a redevelopment first time. To Committee on District at MCAS Tustin. This bill project area and a redevelopment project area from including any portion of a Rules for assignment. would allow the creation of a district. Authorizes the creation of an infrastructure and revitalization financing District at the former military base. district and the issuance of debt with 55% voter approval (current law requires a Does not amend voter approval 2/3 approval). Authorizes the creation of a district for up to 40 years and the conditions associated with issuance of debt with a final maturity date of up to 30 years. Provides that the infrastructure financing districts. issuance of debt by such a district on land of a former military base that is publicly Allows Districts to finance public owned is not subject to voter approval. Expands the projects that a district may capital facilities or projects of fund. Authorizes a district to implement hazardous cleanup pursuant to the communitywide significance, Polanco Redevelopment Act, as specified. Imposes a specified reporting including repayment of transfer of requirement on districts and makes a statement of legislative intent and changes 05/21/2012 Assembly passed funds to a military base reuse the name of an "infrastructure financing district" to "infrastructure and the bill (50 -25) authority pursuant to Section revitalization financing district." 67851 of Government Code. ASSEMBLY Bill # Primary Major Topic Description of Bill Status mA Major Issues Author 0 & 011 dL N/A Budget Redevelopment Department of Finance's proposed redevelopment trailer bill language regarding AB1X 26 5/23/2012 • Codifies the Department of Trailer Bill Agencies Redevelopment Clean -Up and RDA Asset Disposition. Assembly'Budget Sub Committee Finance's (DoF) interpretation of Language Dissolution 4' discussed the bill and AB1X 26 and ignores the prepared by expressed significant reservations Legislative intent. Department about the bill's approach and . Does not allow administrative cost of Finance their desire for a more balance allowances for litigation expenses solution. related to assets or obligations, settlements and judgments, and costs of maintaining assets prior to disposition. • Adds language regarding enforceable obligations to insure that all agreements between redevelopment agencies and cities /counties are not recognized. • Provides a 60 day review period to DoF, including the ability to clawback enforceable obligations. Under this language, clawback provisions would be given to three (3) separate entities to interpret the statute independent of the other two entities. • Adds language to support DoF's interpretation that actions taken under AB1X 27 — 'Voluntary Alternative Redevelopment Program' to create obligations are invalid. • Requires the Successor Agency ensure the lowest long -term cost bond financing is obtained while making use of an independent financial advisor. The language does not identify who is to pay for these costs of the financial advisor. ASSEMBLY Bill # Primary Major Topic Description of Bill Status Major Issues Author N/A Not known 2012 Military • Cities can create Military Base Reuse Infrastructure Financing Districts (IFDs) at former N/A • Facilities that can be financed do being Base Reuse military bases to finance regional scale public works. IFDs can divert property tax not include police and fire stations. (being Infrastructure increment revenues for 45 years to finance arterial roads, transit, water systems, • Allows an IFD to be established pushed by Financing District sewer projects, flood control, child care facilities, libraries, parks and solid waste where there was an existing City of Act facilities. Amendment expands the definition of "debt" to include environmental Project Area. Current law does Concord remediation and certain facilities. not. and • Requires a set -aside (15 %) for affordable housing. • Does not require voter approval to Alameda • Expands the time limit for an IFD from the current 30 years to 45 years form an IFD or issue bonds. with • The IFD receives the property tax allocation from any governmental taxing agency • Cannot use property taxes potential which levied or had levied on its behalf a property tax on all or a portion of the allocated to the School District, support property located in the proposed district in the fiscal year prior to the designation of Community College and Office of from the IFD. Can include ERAF under special circumstances. Education property taxes. Does Assemblyw • Does not include any county office of education, school district, or community college not recognize military bases have oman district. already contributed significantly to Bonilla) • IFDs and Redevelopment Project Areas can overlap. The Base Year is the same base education through the donation of year applicable to the redevelopment plan. land to educational institutions. • In order to establish an IFD, the city adopts a "Resolution of Intention" to establish • Requires a 15% housing set -aside the proposed district. City Clerk mails a copy of the "Resolution of Intention" to each distribution when a large of the affected taxing entities. (Does not require the "Resolution to be mailed to percentage for education has property owners.) already been taken. • Prepare an Infrastructure Plan that is consistent with the general plan of the City. • Unclear how property taxes • City Council can enact a resolution proposing the formation of the IFD without available for a Military Base Reuse requiring a resolution by the governing body of each affected taxing entity or any IFD are to be made in contrast to other consent of the affected taxing entities. the distribution of property taxes • The IFD does not require voter approval for recognized obligation • The City Council may authorize the issuance of bonds in one or more series without payments under the Dissolution holding an election of the voters. Act. SPECIAL BASE REUSE DISTRICT ENHANCED FINANCING PLAN • Utilizes the incremental tax revenue of the county ERAF to create a "special base reuse district ". City must pledge an equal amount (expressed as a percentage) of tax revenues as ERAF (expressed as a percentage). • Time limit is 20 fiscal years from the first issuance of ERAF- secured debt. • Subject to a limitation on the number of dollars of the ERAF share. • When ERAF- secured debt has been paid, property tax revenues are redirected to ERAF.