HomeMy WebLinkAboutRDA COMPLIANCE AB265 02-20-90DATE:
TO:
FROM:
SUBJECT:
FEBRUARY 20, 199
REDEVELOPMENT AGENCY NO. 5
2-20-90
Inter - Com
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 90-4, by title only.
2. Adopt Resolution No. RDA 90-5, by title only.
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
projects, programs and activities, on which there is evidence of
City Council Report
AB 265
February 20, 1990
Page 2
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.
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 90-4 reaffirms the list of Town
Center existing obligations and programs. The second attached
Resolution No. RDA 90-5 makes a finding that no deposit of set-
aside funds would have been for fiscal year 1988-89.
As required by law, the State Department of Housing and community
Development were forwarded copies of draft Resolution No. RDA
90-4 and RDA 90-5.
Christine A. Shin eton
Director of Commi&ity Development
CAS:kbc
Attachments: Resolution No. RDA 90-4
Resolution No. RDA 90-5
Community Development Department
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RESOLUTION NO. RDA 90-4
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. sea.) 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 33334.2, 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 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 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 to 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
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Redevelopment Agency
Resolution No. 90-4
Page 2
for the orderly and timely completion of public and
private 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, and on August 17, 1987 with adoption of
Resolution No. 87-11 and 87-12; and on September 19,
1988 by adoption of Resolutions 88-10 and 88-11.
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 21' as the statements required by
Section 3334.6(c) of the California Community
Redevelopment Law for those obligations incurred prior
to January 1, 1986.
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Redevelopment Agency
Resolution No. 90-4
Page 3
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.
PASSED AND ADOPTED at a regular meeting of the Community
Redevelopment Agency at Tustin, California, held on the
20th day of February, 1990.
MARY WYNN
City Clerk
RICHARD B. EDGAR
Chairman
I.V' YIIL YLn i J'nl01.111 ;,Lllt uULE
Miller colu,uis G, check nu�bet
oQ-1an-30
a( Months i t '1lS'.
?Muter Js1 paYnenl' Yr: 1400
•
• 111511)1 REpf.VElt1PMfH1 AffIICY
10.06u,000 1487 111NII Cf.HIER ARFA I'Rojrcl
BUNDS GATED 7/1/e7
SEMI -0)1111101 hE61 SERVII:f. SCUMLE
101IDS SOLD 8/5/07
fISCAI. YR IIAY 1 -•_......_».._.._
MY
-PRIHfIPAI �
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Jllllf 30 PAYMF.HI
--________________
TOTAL
10 [Al.
Al1HUAl.
PAYIIEIII
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PAl11CNl
PAYMERI •
PAYMENT
-.. •-••w•_..-_•
1903 =153,815.00 f272,J2S.00
19119 271,17S.oil ?71,175.110
•
..25,000
-- -----------
'-
=?97 325,00
._------• •.. ....
=151,200:00
1990 245,910.00 2651910.00
2hS,?10.00
1981
255,11110
?10,000
535,910.00
)98,550.00
801,020.00
?S9.? 5.110 259,295.110
1992 251,035.00 251,005.00
?AS,p110
514,295. p0
003,590.00 ,'
1991 ., �
,. �4J,7t1,.11U ?43.)t1S.Op
1 ?4 ?.34,1107. so
300, (11)0
315,0011
551, fl05.00 .
� . • 550, 7115.U0�
OOJ, 770.011
� ' 00?,510.00 '
?34,1)0!.40
J99.5 ??4,925.UU ;?4,425.00
1.14,000
155, 0011
569,00I. -so
001 ,GlS.00
a •
19 213,920.00 213,920.011
1991 ?0,1.9211• ll(1
315,000
S?9, 925. Ua
500,920.00
001, D.50.00 '
802,810,011
201.91"(1.011
1990 I�0.S1U.
S1U.QU UU
400, 011U
601s9211.00
POJ,040.00
19'39- 173.64i.00 17.1,64`1.110
1?5,0011
'155,1)(10
613,5211.00
802,040.110
20110 151.492.50 151 1'I?.. SO
2091 IJ9,C,5?.Sa
4��0,01)0
G?.0,(,15.011
611,192.50
, 002,290.00
ao1,94s.00
1J9,G5?.0
2002 l?.01 4.90. Uo 120, 6'�U. 114
S25,pno
t;G1,BS?.50
8011 SOS. Oa
?110.1 !110,2511.00
21104 100,150.00
560,1100
nns,uuQ
600,690.00
105,2.50.110
801,340.00
17,1195.110 17, B�S.110
20115 54,0011.00 54
6150000
1??, 8L5. (10
005,500.00
` 000,7J0.00
101111.011
� 21104 21,9 V . SU ?1'')J; .SO
695,0110
14514110
.14moo,0U
003,OUO.OU
---• w---. _._.._..__...._._----
)12,')31.50
1100 I) S
tJ1662 150
----
18,060,000
--... •--••-------__
tl(,540,ROU
•
=15,201,150.•
17,113,1 SU. (►0
.
Description off
Existing Obligations
ATTACHMENT 1
To RDA 90-4
STATEMENT OF EXISTING OBLIGATIONS
Town Center Redevelopment Project
1988-89
Total Amounts Range of
of Remaining Annual
Obligations Payments
Tustin Community
Redevelopment Agency
Town Center Area
Redevelopment Project
Tax Allocation Bonds -
Series 1982 $14,451,950 $798,550
800,875
Date Obligations
Will Be Discharged
01/01/06
undetermined amount of funds required to implement projects approved prior
to January 1, 1986.
2 As refinanced on July 1, 1981 with bonds sold on August 5, 1987.
See attached debt service schedule.
ATTACHMENT 2
To RDA 90-4
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.
8. Formulation and implementation of a multi -phase strategy plan
for the redevelopment of the downtown business district.
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RESOLUTION NO. RDA 90-5
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. seg.) 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 33334.2, 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 to 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
1 Redevelopment Agency
Resolution No. 90-5
2 Page 2
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5 for the orderly and timely completion of public and
private projects, and which are contained in a Statement
6 of Existing Programs adopted by resolution of the Agency
prior to September 1, 1986; and
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WHEREAS, the Agency adopted Resolution No. 87-11 on
8 August 17, 1987 reaffirming a Statement of Existing
Obligations or Programs or Both of the Tustin Town
0 Center Redevelopment Projects and listing obligations
incurred and programs approved prior to January 1, 1986;
10 and
11 WHEREAS, the payments required for the obligations
adopted in the Statement of Existing Obligations or
12 Programs or Both in Resolution No. 90-6 are in excess of
1.6 million dollars during the fiscal year 1988-89; and
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WHEREAS, 1988-89 revenues allocated or to be
14 allocated to the Town Center Project pursuant to Section
33670 of the Health and Safety Code are estimated to be
15 $2,105,748; and
16 WHEREAS, of the taxes allocated for the Project
pursuant to Section 33670 of the CRL for the 1988-89
17 fiscal year an estimated minimum of $421,150 is to be
deposited into the Low and Moderate Income Housing Fund
18 pursuant to Section 33334.6(c) of the Community
Redevelopment Law except as otherwise permitted by
19 subdivisions (d) and (e) of said Section.
20 NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE
21 CITY OF TUSTIN does hereby resolve as follows:
Section 1. The Agency hereby finds that the
22 difference between the amount deposited, or to be
deposited into the Low and Moderate Income Housing Fund
23 of the Tustin Town Center Project Area for the 1988-89
fiscal year and the amount required to be deposited
24 pursuant to Section 33334.6(e) of the Community
Redevelopment Law is $421,158 and further finds that
25 such amount is necessary to make payments of amounts due
or required to be committed, set aside, or reserved by
26 the Agency during the 1988-89 fiscal year under existing
obligations incurred and adopted by the Agency to
27 finance or refinance, in whole or in part, the Project
28 and to provide for the orderly and timely completion of
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Redevelopment Agency
Resolution No. 90-5
Page 3
the programs which existing obligations and programs are
contained in the "Statement of Exising Obligations or
programs or Both" adopted by Resolution of the Agency on
February 20, 1990.
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 1989-90 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
Redevelopment Agency at Tustin,. California, held on -the
20th day of February, 1990.
MARY WYNN
City Clerk
RICHARD B. EDGAR
Chairman