HomeMy WebLinkAboutRDA LOW HSNG INCOME 09-19-88.- ,_ ..,,,,, .'~ ,. ~ I~, ~ REDEVELOPMENT AGENCY
'~ "'~' ~'"' '~ ~ ~- "- ~"c" NO. 5
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTOM, [XEOJTIV[ DIRECTOR
COMPJJNITY DEVELOPf4ENT DEPARTMENT
COFIPLIANCE WITH AB 265 CONCERNING 'SET ASIDE' FUNDS FOR LOW AND
MOOERATE INCOME HOUSING
RECOI~IENDATXON: .
It is recommended that the Redevelopment Agency'
1. Adopt Resolution No. RDA 88-10, by title only.
2. Adopt Resolution No. RDA 88-11, by title only.
BACKGROUND'
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Section 33334.6 of the California' Health and Safety Code identified as AB 265
(Chapter 1135, Statutes of 1985) requires redevelopment projects including those
adopted prior to January 1, 1977 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 subsequent to 1977.
Since the Town Center Redevelopment Project was adopted prior to 1977, it was
not previously subject to this 20~ set aside requirement. The new legislation
requires that all projects, regardless of their adoption date, comply with the
requirement.
The legislation 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
t~an 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'
City Council Report
Set Aside Funds
September 19, 1988
Page two
(a)- that all or a portion of these funds are needed to meet existing
obligations, that ts obligations incurred prlor to January 1, 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 an intent to carry out the projects,
programs or activities, prior to January 1, 1986.
The Agency 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 and on August
17, 1987 with adoption of Resolution Nos. RDA 87-11 and RDA 87-12.
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 88-10 reaffirms the list of Town Center
existing obl. igations and programs. The second attached Resolution No. RDA 88-11
makes'a finding that no deposit of' set-aside funds are necessary for fiscal year
1987-88.
The State Department of Housing and Community Development were forwarded copies
of draft Resolution No. RDA 88-10 and RDA 88-11.
CAS: pe f
Attachments: Resolution No. RDA 88-10
Resolution No. RDA 88-11
Community Development Depar~rnen: M
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RESOLUTION NO. RDA 88-10
A RESOLUTION OF THE COMMUN'ITY REDEVELOPMENT AGENCY OF
THE CITY OF TUSTIN REGARDIflG 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.
WHEREAS, Secti on 33334.5 (c) of the Ca 1 i forni a 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 33334.2, 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:
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· 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
tn 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, 1989, 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 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.
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Redevelopment Agency
Resolutt on No. 88-!O-
Page two
WHEREAS, the Agency readopted a Statement of Existing Obllgations and
Programs by. Resolution No. RDA 86-[0 on August [8, [986 and Resolution RDA
87-[[ on August [7, [987.
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
Deve 1 opine n t.
..
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PASSED AND' ADOPTED at a regular meetidg of the Community Redevelopment
Agency at Tustin, California, held on the day of ,
1988.
Ronald B. Hoesterey,
Chairman
Mary E. Wynn
Secretary
ATTACHMENT 1
To RDA 88-10 -
STATENENT OF EXISTING OBLIGATIONS
Town Center Redevelopment Project
Description of
Existing Obligations
Tusti n Community
Redevelopment Agency
Town Center Area
Redevelopment Project
Tax A1 locatton Bonds-
Sertes 1982 [~
Total Amounts
of Remai nt ng
Obligations
$15,203,150
Range of
Annual
Payments
Date Obligations
Wi 11 Be Discharged
$751,20 - 01/01/06
800,875
Undeteretned amunt of funds requtred to leple, ent projects approved prior
to danuary 1, 1986. '
As refl'nanced on July 1, 1981 with bonds sold on August 5, 1987.
See attached debt service schedule. "
ACIIIAL l)E8I rA¥ffF. Nf :.,,,rtLDIJLF~
l~Fnler columns i) & G, r. hec'~
of eonth~ in cell
?)i-,let 151 paymrnt yr-
08-Jan-88
l'lJSlr [N REDEVEI. OPNFHI' AGt'ilICY
$,:q,O6f. l,(IO0 1'~87 I¢,I~N CF. HIER ARI-A I'RnJFC1
,SEN[--ANNIJAL DEltl SERVICE SCtlEDtlI.E
OOHDS DATED 7/1/87
80NDS SOLD P.,15/87
FISCAl. YR flAT 1' - ......................................................
lOl'AI.
f't~ll!l HG [Nlt Ill :';I ]NH:RES1 PRINCIFAI TOTAL ANNUAL
JIINE ~0 PAYMFNI PA'fMENI PAtII[NI PAYNENI PAYHENI
1'.~:-~ $4`53,8?5.00 *'~",.325. O0 2.5,000 ~297,325.00 ~751,200:00
19R9 2/1,775.00 271,775.00 255,(1[10 526,775.00 798,550.00
IQgO 265,Q!0.00 265,Q10.00 270,000 5~S,QIO.O0 801,820.00
,,. ,.t3,7K,. O0 243,705. O0 315, oorl 55~, 7tiS. O0 802,570. O0
[,~04 234,007.50 234,:~07.50 335,000 569,007.50 ~04,~!5.00
10o5 224,925.Hfl 224,025.00 355,(Ir10 57Q,q25. ftO ~04,850.00
1'796 2[3,920.00 213,~20.0n 375,000 500,920.00 ~02,~40.0(I
IOO7 201, ~20. O0 ~01, o?{i. O0 400, Olffl 601,920. O0 ~03,~40. O0
1~,~
Im~9 1.73,A45.00 173,A45.HH ~455,000 62~,A45.00 002,290.00
PHO0 157,4'72.50 157,4'7?.50 4')0,000 647,492.50 004,9~5.00
2001 1,;Q,~52.50 ] 3Q,~'~?. 5(I ' 525,000 664,852.50 ~04,705.00
2003
- ,..)O. (,0 ~05,000 705,250. HD 005, aO0. O0
2004 77,:~6,5.00 77,~t65.HH ~5,000 722,~&5.00 ~00,730.00
2~.1fl5 54,00{I. (10 5~, 0(I0. fill a95,000 749,000. O0 803,000. O0
2006 27,937.5H 27 o,'..,0
.. ,..,," 745,0n0 772,')~7.50 800,875.00
..................................... ~ ........................................
t.1,~2,.~50 $.~,4:]0,D00 $~,0~0,000 I;11,540,800 tl5,203,150
$/,143,150.f!0
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ATTACHMENT 2
To RDA 88-10
STATEMENT OF EXISTING PROGRAMS
Town Center Redevelopment ProjeCt
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.
The five year capital improvement program budget adopted in fiscal
year 1986-87 totalling $4,926,192.
Undetermined costs associated with street improvement plans
recommended by the Planning Commission in conjunction with the First
Street Specific Plan. ~.
Negotiations underway for acquisition of real property within the
project area for the purposes of redevelopment of non-conforming
structures and sites. Such acquisi'tion is consistent with the goals
and objectives of the adopted Redevelopment Plan.
"Policy of the Redevelopment Agency for the Allocation of Housing
Assistance Funds" as adopted on January 7, 1985.
Agency participation in the construction and operation of a Senior
Citizen Center.
The commitment of Agency funds to the expansion of civic center
facilities as recommended by space needs study commissioned by the
Agency.
Formulation and implementation of a multi-phase strategy plan for the
redevelopment of the downtown business district.
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RESOLUTION NO. RDA 88-11
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF TUSTIN MAKING A FINDING RELATING TO THE
TOWN CENTERPROJECT 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 aproved by the Redevelopment Agency and the City Council of the City of
Tustin on November 12, 1976; and
WHEREAS, Section 33334.6(c) of the California Community Redevelopment
Law (Health and Safety Code, Section 33000 et. seq.) provides that unless
the Redeveloment Agency by resolution makes o-'-ne 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 of 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 i.n 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 Oblig'ations") 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, 1986, 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 less 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 Existing Programs adopted by
resolution of the Agency prior to September 1, 1986; and
WHEREAS, the Agency adopted Resolution No. 87-11 on August 17, 1987
reaffirming a Statement of Existing Obligations or Programs or Both of the
Tustin Town Center Redevelopment Projects and listing obligations incurred
and programs approved prior to January 1, 1986; and
WHEREAS, the payments 6equired for the obligations adopted in the
Statement of Existing Obligations or Programs or Both in Resolution No.
88-10 will be in excess of 1.4 million dollars during the fiscal year
1987-88; and
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Redevelopment Agency
Resolution No. 88-11
Page two
WHEREAS, 1987-88 revenues allocated or to be allocated to the Town
Center Project pursuant to Sectton 33670 of the Health and Safety Code are
estimated to be $1,839,385; and
WHEREAS, of the taxes allocated for the Project pursuant to Section
33670 of the CRL for the 1987-88 fiscal year an estimated minimum of
$367,877 is to be 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
herby 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 ~enter Project Area for the 1986-87 fiscal
year and the amount required to be deposited pursuant to Section 33334.6(e)
of the Community Redevelopment Law is $367,877 and further finds that such
amount is necessary to make payments of amounts due' or required to be
committed, set aside, or reserved by the'Agency during the 1986-87 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
September 19, 1988.
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 1987-88 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 day of ,
1988. ii
Ronald ~. Hoesterey
Chairman
Mary E. Wynn
Secrtary