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Home My WebLink AboutRDA COMPLIANCE AB 265 07-21-86 REDEVELOPMENT AGENCY Int om JULY 21, 1986 ~ TO: FROM: SUBJECT: gILLIAIq A. HUSTON, CITY liANAGER COFIHUNITY DEVELOPHENT DEPARTlqElfl' COHPLIA#CE #ITH AB 265 CONCERNING 'SET-ASIDE" FUNDS FOR LOIJ/HODERATE INCOHE HOUSING RECOIt4ENDATION: That the Redevelopment Agency adopt Resolution No. RDA 86-9 authorizing submission of proposed resolutions listing existing obligations and programs of the Town Center Redevelopment Project Area; and authorizing a public hearing to consider said resolutions. DISCUSSION: As outlined in the attached report from Marilyn Whisenand, Redevelopment Consultant, if the Agency wishes to deposit less than twenty percent (20~) of the Town Center Project's tax increment into a fund for low/moderate income housing certain actions must be taken. The first step in this procedure was accomplished on December 16, 1985 by the adoption of Resolution No. RDA 85-18. However, at this time subsequent Agency action is required. Specifically, formal Statements of Existing Obligations and Programs (that were incurred or approved prior to January 1, 1986) must be adopted. The procedure by which these statements must be approved is as follows: The Agency must authorize, by resolution, the submittal to the City Council and State HouSing & Community Development proposed Statements of Obligations and Programs. Also, the Agency must authorize a public hearing to consider said statements. Council and HCD must receive proposed statements in resolution form two weeks prior to public hearing. Before September 1, 1986, the Agency, via a public hearing must adopt Resolutions containing Statements of Existing Obligations and Programs. In order to meet all required deadlines and to adopt all appropriate resolutions, it is recommended that the following time table be utilized: July 21, 1986 - Agency adoption of Resolution 86-9 authorizing submittal to Council and State HCD proposed Statements of Existing Obligations and Programs. This resolution also authorizes a public hearing to consider said statements. On or before August 4, 1986, proposed Statements of Existing Obligations and Programs, in resolution form, will be transmitted to City Council and State HCD. Ctty Counct1. Report AB 265 page 'k'k August 18, [986, a publtc heartng before the Agency to conslder proposed Statements of Extsttng Obligations and Programs, should be scheduled, advertised and conducted. COIICLU$IO#$: If the Agency still wishes to be permitted to allocate less than 20[ of the Town Center Project tax Increment for low/moderate Income houstng, then It is mandatory that proceses and procedures outlfned be implemented. Accordingly, to set the necessary ttme schedule In motion tt ts recommended that the Agency adopt Resolution NO. RDA 86-9 at their July 21, 1986 meettng.' SENIOR ~LANNER OD:do attachment: December lOth .memo Resolution No. 86-9 Community Development Department DATE: REDEVELOPMENT AGENCY ~...~. 12.1 5 December 10, 1985 C01qlrl TO: FROM: SUBJECT: The Honorable Chairman and Members of the Redevelopment Agency Community Development Department Recently Enacted Legislation--AB 265 RECOMMENDATION It is recommended that the Redevelopment Agency adopt a resolution approving and adopting a Statement of Existing Obligations and a Statement of Existing Programs for the Town Center Redevelopment Project area. BACKGROUND The State Legislature has passed and the Governor has signed AB 265 (Hughes). This new statute requires that all redevelopment agencies set aside twenty percent (20%) of their tax increment for the purpose of increasing and improving the supply of low and moderate income housing within redevelopment projects. Previously, this 20% set aside provision applied only to redevelopment projects adopted subsequent to 1977. Since the Town Center Project was adopted prior to 1977, it has not, to date, been 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, ih 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% if it can show a need to use all or a portion of the 20% set aside funds to carry out existing projects or programs. However, if an agency wishes to set aside less than the 20%, it must take certain actions prior to January 1, 1986. 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 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 FILE COPY Memorandum--Page December 10, 1985 and activities, on which there is evidence of an intent to carry, out the projects, programs or activities, prior to January 1, 1986. In order to utilize the exceptions listed above, the agency must also approve, prior to September 1, 1986,-by resolution, a Statement of Existing Obligations or a Statement of Existing Programs, or both.. The existing obligations, projects or programs approved prior to September 1, 1986 by resolution, must have been'"intended" by the Agency prior to January 1, 1986. In order to meet the requirements of AB 265, a resolution has been prepared adopting a Statement of Existing Dbligations and Existing Projects and Programs for the Town Center Redevelopment Project. Prior to September I, 1986, the list of obligations, projects and programs will be readopted in as much specificity as is possible at that time. Redevelop(.~ent Consultant ~ Community Development Deparlment J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RDA 86-9 II. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE SUBMISSION TO THE TUSTIN CITY COUNCIL AND TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, PROPOSED STATEMENTS OF EXISTING OBLIGATIONS AND EXISTING PROGRAMS OF THE TOWN CENTER REDEVELOPMENT PROJECT AREA AND AUTHORIZING A PUBLIC HEARING ON SUCH STATEMENTS The Community Redevelopment Agency of the City of Tusttn, California, hereby resolves as follows: That pursuant to State Assembly Btll 265 (AB265) which became effective January 1, 1986, the Community Redevelopment Agency of the Ctty of Tusttn must adopt, prior to September 1, 1986, statements of existing obligations and projects if the Agency desires to deposit less than 20% of total tax increment received, by the Town Center Project, into a low and moderate income housing fund. That resolutions of the Agency containing statements of existing obligations and programs must be considered at a public hearing before the Agency. That proposed resolutions containing statements of existing obligations and programs must be submitted to the City Council and to the State Department of Housing and Community Development two weeks prior to the required public hearlng considering said resolutions. The Community Redevelopment Agency of the City of Tustln, California, hereby authorizes the following: That proposed resolutions containing statements of existing obligations and programs for the Town Center Redevelopment Project Area shall be submitted to the Tustin City Council and to the State Department of Housing and Community Development on or before August 4, 1986. Be That a public hearing before the Agency to consider resolutions containing statements of existing obligations and programs shall be advertised for, and conducted on August 18, 1986. PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the d~y of , 1986. DONALD J. SALTARELLI, Chairman MARY E. WYNN, Secretary