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{- JANUARY 20, 1992
{; WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
_ COMMUNITY DEVELOPMENT DEPARTMENT
COMPLIANCE WITH AB 265 CONCERNING "SET ASIDE" FUNDS FOR
LOW AND MODERATE INCOME HOUSING
RECOMMENDATION
It is recommended that the Redevelopment Agency:
1. Adopt Resolution No. RDA 92-1
2., Adopt Resolution No. RDA 92-2
BACKGROUND
- Section 33334.6 of the California Health and Safety Code (Chapter
1135, Statutes of 1985) requires redevelopment projects including
those adopted prior to January 1, 1978 to. set aside a minimum of
20% of tax increment into a low and moderate income housing fund.
Previously, this 20% set aside provision applied only .-to
redevelopment projects adopted after 1977. Since the Town Center
Redevelopment Project was adopted prior to 1977, it was not
previously subject to this 20% set aside requirement. Provisions
of Section 33334.6 require that all projects, regardless of their
adoption date, comply with the requirement.
State law recognizes that, in certain project areas, pre-existing
obligations and programs could render the 20% set aside infeasible..
Thus, the statute allows an agency to set aside less than the 20%
funds to carry out existing projects or programs. However, if an
agency wishes to set aside less than the 20%, it must take certain
action prior to January 1, 1986 and annually.
The legislation states that an agency may deposit less than the 20%
required set aside if, in any fiscal year prior to 1996, the agency
finds:
(a) that all or a portion of these funds are needed to meet
existing obligations, that is obligations incurred prior to January
11 1986; or
(b) that all or a portion of these funds are necessary to
provide for the orderly and timely completion of public and private
Redevelopment Agency Report
AB 265
January 20, 1992
Page 2
projects, programs and activities, on which there is evidence of an
intent to carry out the projects, programs or activities, prior to
January 1, 1986.
The Agency previously adopted a Statement of Existing Obligation
and Programs on August 18, 1986 by the adoption of Resolution Nos.
RDA 86-10 and RDA 86-11; on. August 17, 1987 with adoption of
Resolution Nos. RDA 87-11 and RDA 87-12 and on September 19, 1988
by adoption of Resolutions 88-10 and 88-11 on February 20, 1990 by
adoption of Resolutions 90-4 and 90-5, and on February 4, 1991 by
adoption of Resolutions 91-1 and 91-2.
It is our reading of Section 33334.6 that a finding that the
housing set-aside may be reduced or eliminated should tax increment
revenues be necessary to make payments toward Existing Obligations,
must be made each fiscal year for this action to be warranted.
Appropriately, Resolution No. RDA 92-1 reaffirms the list of Town
Center existing obligations and programs.. The .second attached
Resolution No. RDA 92-2 makes a finding that no deposit of set-
aside funds will be necessary for fiscal year 1991.-92.
As required by law, the State Department of Housing and Community -
Development were forwarded copies of draft Resolution No. RDA 92-1
and RDA 92-2.
-&A46;L& )//W e
Christine A. Shinglet
Assistant City Manager
CAS:kbc/ab265.#3
Attachments: Resolution No. RDA 92-1
Resolution No. RDA 92-2
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RESOLUTION NO. RDA 92-1
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF TUSTIN REGARDING THE
READOPTION OF A STATEMENT OF EXISTING
OBLIGATIONS OR PROGRAMS OR BOTH IN CONNECTION
WITH THE IMPLEMENTATION OF THE TOWN CENTER
REDEVELOPMENT PROJECT
WHEREAS, the Redevelopment Plan ("Redevelopment
Plan") for the Tustin Town Center Redevelopment Project
Area ("Project") in the City of Tustin was approved by
the Redevelopment Agency and the City Council of the City
of Tustin on November 22, 1976 by Ordinance No. 701 and
amended by Ordinance 89-27, on March 20, 1989.
WHEREAS, Section 33334.5 (c) of the California
Community Redevelopment Law (Health and Safety Code,
Section' 33000 et. sect.) provides that unless the
Redevelopment Agency by resolution makes one of the
findings described in paragraphs (1) to (3), inclusive,
of subdivision (a) of Section 33334.21 not less than 20
percent of the Project tax increment revenues allocated
to the Agency pursuant to Section 33670 for the 1985-86
fiscal year and each succeeding fiscal year shall be
deposited into a Low and Moderate Income Housing Fund for
the Project established pursuant to Section 33334.3 to be
used for the purposes set forth in Section 33334.2,
except that:
A) In any f iscal year, the Agency may deposit less
than 20 percent of such Project tax increment revenues
into the Project Low and Moderate Income Housing Fund if
the Agency finds that the difference between the amount
deposited, or to be deposited, and the amount required. to
be deposited (20 percent of Project tax increment
revenues) is necessary to make payments of amounts due or
required to be committed, set aside, or reserved by the
Agency during the fiscal year under existing obligations
incurred by the Agency to finance or refinance, in whole
or in part, the Project ("Existing Obligations") which
Existing Obligations are contained in a statement of
Existing Obligations adopted by resolution of the Agency
prior to September 1, 1986; and
B) In each f iscal year prior to July 1, 1996, the
Agency may deposit less than the amount required -to be
deposited (20 percent of Project tax increment revenues,
,less payments of amounts due or required to be committed,
set aside, or reserved during the f iscal year under
Existing Obligations) into the Low and Moderate Income
Housing Fund if the Agency finds that the deposit of such
lesser amount is necessary in order to provide for: the
orderly and timely completion of public and private
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RDA Resolution No. 92-1
Page 2
projects, programs, or activities approved by the Agency
prior to January 1, 1986 and which are contained in a
Statement of Existing Programs adopted by resolution of
the Agency prior to September 1, 1986; and
WHEREAS, the Agency approved existing projects,
programs and activities by Resolution No. 85-18 of the
Agency adopted on December 16, 1985; and
WHEREAS, such existing projects, programs, and
activities were described in Exhibits A and B attached
and incorporated to Agency Resolution No. 85-18.
WHEREAS, the Agency readopted a Statement of
Existing Obligations and Programs by Resolution No. RDA
86-10 on August 18, 1986 and Resolution RDA 87-11 on
August 17, 1987; on August 17, 1987. with adoption of
Resolution No. 87-11 and 87-12; on September 19, 1988 by
adoption of Resolutions 88-10 and 88-11; on February 20,
1990 by adoption of Resolution 90-4 and 90-5; on February
41 1991 by adoption of Resolution RDA 91-1 and RDA 91-2.
NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF TUSTIN does hereby resolve as follows:.
Section 1. The Agency hereby readopts. a
Statement of Existing Obligations for the Tustin
Redevelopment Project No. 1 attached hereto and marked
"Attachment 1" and Statement of Existing Programs for the
Tustin Town Center Redevelopment attached hereto and
marked "Attachment 2" as the statements required by
Section 3334.6(c) of the California Community
Redevelopment Law for those obligations incurred prior to
January 1, 1986.
Section 2. The Agency Secretary is authorized
and directed to send a copy of this resolution to the
State Department of Housing and Community Development.
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RDA Resolution No. 92-1
Page 3
PASSED AND ADOPTED at a regular meeting of the Community
Redevelopment Agency at Tustin, California, held on the
20th day of January, 1992.
CHARLES E. PUCKETT
Chairman
MARY WYNN
City Clerk
CAS Abc/92-1.cas
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR RDA RESOLUTION NO. 92-1
MARY E. WYNN, Recording Secretary and ex -of f icio Clerk of
the Redevelopment Agency of the City of Tustin,
California, does hereby certify that the whole number of
the members of the Redevelopment Agency of the City of
Tustin is five; that the above and foregoing Resolution
was duly and regularly passed and adopted at a regular
meeting of the Redevelopment Agency held on the 20th day.
of January, 1992 by the following vote:
AGENCY MEMBERS AYES:
AGENCY MEMBERS NOES:
AGENCY MEMBERS ABSTAINED:
AGENCY MEMBERS ABSENT:
MARY E. WYNN
Recording Secretary
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2E
RESOLUTION NO. RDA 92-2
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF TUSTIN RELATING TO THE
TOWN CENTER PROJECT AREA LOW AND MODERATE
INCOME HOUSING FUND DEPOSITS PURSUANT TO
SECTION 33334.6 OF THE COMMUNITY REDEVELOPMENT
LAW
WHEREAS, the Redevelopment Plan ("Redevelopment
Plan") for the Tustin Town Center Redevelopment Project
Area ("Project") in the City of Tustin was approved by
the Redevelopment Agency and the City Council of the City
of Tustin on November 12, 1976 and amended on March 20,
1989; and
WHEREAS, Section 33334.6(c) of the California
Community Redevelopment Law (Health and Safety Code,
Section 33000 et. seq.) provides that unless the
Redevelopment Agency by resolution makes one of the
findings described in paragraphs (1) to (3), inclusive,
of subdivision (a) of Section 33334.21 not less than 20
percent of the Project tax increment revenues allocated
to the Agency pursuant to Section 33670 for the 1985-86
fiscal year and each succeeding fiscal year shall be
deposited into a Low and Moderate Income Housing Fund for
the Project established pursuant to Section 33334.3 to be
used for the purposes set forth in Section 33334.2,
except that:
A) In any fiscal year, the Agency may deposit less
than 20 percent of such Project tax increment revenues
into the Project Low and Moderate Income Housing Fund if
the Agency finds that the difference between the amount
deposited, or to be deposited, and the amount required to
be deposited (20 percent of Project tax increment
revenues) is necessary to make payments of amounts due or
required to be committed, set aside, or reserved by the
Agency to finance or refinance, in whole or in part, the
Project ("Existing . Obligations") which Existing
Obligations are contained in a statement of Existing
Obligations adopted by resolution of the Agency prior to
September 1, 1986; and
B) In each fiscal year prior to July, 1, 1996, the
Agency may deposit less than the amount required to be
deposited (20 percent of Project tax increment revenues,
less payments of amounts due or required to be committed,
set aside, or reserved during the fiscal year under
Existing Obligations) into the Low and Moderate Income
Housing Fund if the Agency finds that the deposit of such
lesser amount is necessary in order to provide for the
orderly and timely completion of public and private
projects, and which are contained in a Statement of
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RDA Resolution No. 92-2
Page 2
Existing Programs adopted by resolution of the Agency
prior to September 11 1986; and
WHEREAS, the Agency adopted Resolution No. 87-11 on
August 17, 1987 reaffirming a Statementtin f Existing
g
Obligations or Programs or Both of the
Redevelopment Projects and listing obligations incurred
and programs approved prior to January 1, 1986; and
WHEREAS, the payments required for the obligations
adopted in the Statement of Existing Obligations or
Programs or Both in Resolution No. 90-6 are in excess of
2.3 million dollars during the fiscal year 1990-91; and
WHEREAS, 1990-91 revenues allocated or to be
allocated to the Town Center Project pursuant to Section
33670 of the Health and Safety Code are estimated to be
$2,322,962; and
WHEREAS, of the taxes allocated for the Project
pursuant to Section 33670 of the CRL for
the
is 990-91
be
fiscal year an estimated minimum of $464,592
deposited into the Low and Moderate Income Housing Fund
pursuant to Section 33334.6(c) of the Community
Redevelopment Law except as otherwise permitted by
subdivisions (d) and (e) of said Section.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY
OF TUSTIN does hereby resolve as follows:
Section 1. The Agency hereby finds that the
difference between the amount deposited, or to be
deposited into the Low and Moderate Income Housing Fund
of the Tustin Town Center Project a t o be h 1990-91
fiscal year and the amount required
posited
pursuant to Section 33334.6(e) of the Community
Redevelopment Law is approximately $464,592 and further
finds that such amount is necessaryto make payments of
amounts due or required to be committed, set aside, or
reserved by the Agency during the 1990-91 fiscal year
under existing obligations incurred and adopted by the
Agency to finance or refinance, in whole or in part, the
Project and to provide for the orderly and timely
completion of the programs which existing obligations and
programs are contained in the "Statement of Existing
Obligations or programs or Both adopted by Resolution of
the Agency on January 20, 1992.
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RDA Resolution No. 92-2
Page 3
Section 2. The Agency directs that pursuant to the
above finding no deposits are to be made to the Low and
Moderate Income Housing Fund for the Tustin Town Center
Redevelopment Project Area for the 1991-92 fiscal year.
Section 3. The Agency Secretary is authorized and
directed to send a copy of this resolution to the State
Department of Housing and Community Development
Department.
PASSED AND ADOPTED at a regular meeting of the Community
o onnthe
Redevelopment Agency at Tustin, California,
20th day of January, 1992.
CHARLES E. PUCKETT
Chairman
MARY WYNN
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR RDA RESOLUTION NO. 92-2
MARY E. WYNN, Recording Secretary and ex officio Clerk of
the Redevelopment Agency of the City of aint
ot
California, does hereby certify that the whole number
the members of the Redevelopment Agency of the
City Of
Tustin is five; that the above and foregoing Resolution
was duly and regularly passed and adopted at a 20th day
meeting of the Redevelopment Agency held on they
of January, 1992 by the following vote:
AGENCY MEMBERS AYES:
AGENCY MEMBERS NOES:
AGENCY MEMBERS ABSTAINED:
AGENCY MEMBERS ABSENT:
MARY E. WYNN
Recording Secretary
ATTACHMENT 1
TO RDA 92-2
STATEMENT OF EXISTING OBLIGATIONS
Town Center Redevelopment Project
1990-91
Date
Total Amounts Range of Obligations
Description of Existing of Remaining Annual Will Be
Obligations Obligations Payments2 Discharged
Tustin Community Redevelopment
Agency Town Center Area
Redevelopment Project Tax
Allocation Bonds - Series 1982
$12,851,580 $803,590 1-1-06
Undetermined amount of funds required to implement projects approved prior to
January 1, 1986.
1 As refinanced on July 1, 1981 with bonds sold on August 5, 1987.
2 See attached debt service schedule.
ATTACHMENT 2
TO RDA 92-2
STATEMENT OF EXISTING PROGRAMS
Town Center Redevelopment Project
1. Potential expansion and renovation of commercial centers to include:
expansion of existing lease space; construction of new, mixed use,
structures; construction of parking structure(s); and the possible
abandonment of public streets. Agency assistance may be required for
construction of necessary off-site improvements or other financing
assistance and restoration and expansion of an adjacent residential
apartment complex.
2. The five year capital improvement program budget adopted in fiscal year
1986-87 totalling $4,926,192.
3. Undetermined costs associated with street improvement plans recommended
by the Planning Commission in conjunction with the First Street Specific
Plan.
4. Negotiations underway for acquisition of real property within the
project area for the purposes of redevelopment of non -conforming
structures and sites. Such acquisition is consistent with the goals and
objectives of the adopted Redevelopment Plan.
5. "Policy of the Redevelopment Agency for the Allocation of Housing
Assistance Funds" as adopted on January 7, 1985.
6. Agency participation in the construction and operation of a Senior
Citizen Center.
7. The commitment of Agency funds to the expansion of civic center
facilities as recommended by space needs study commissioned by the
Agency.
S. Formulation and implementation of a multi -phase strategy plan for the
redevelopment of the downtown business district.
CAS:kbc\rda92-1.att
ATTACHMENT 2
RDA 92-2
PAGE TWO
Debt Service Schedule
Year
Total
Ending
Principal
Interest
Debt
Nov. 1
Maturing
Rate
Interest
Service
1988
$ 25,000
4.40%
$ 726,200
$ 751,200
1989
255,000
4.60
543,550
798,550
1990
270,000
4.90
531,820
801,820
1991
285,000
5.20
518,590
803,590
1992
300,000
5.40
503,770
803,770
1993
315,000
5.70
487,570
802,570
1994
335,000
5.90
469,615
804,615
1995
355,000
6.20
449,850
804,850
1996
3759000
6.40
427,840
802,840
1997
400,000
6.70
403,840
803,840
1998
425,000
7.00
377,040
802,040
1999
455,000
7.10
3479290
802,290
2000
490,000
7.20
314,985
804,985
2001
525,000
7.30
279,705
804,705
2002
560,000
7.30
241,380
801,380
2003
605,000
7.40
200,500
805,500
2004
645,000
7.40
155,730
800,730
2005
6951000
7.50
1081000
803,000
2006
7452000
7.50
55,875
8002875
Totals
$8,060,000
$7,143,150
$15,203,150