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Home My WebLink AboutRDA #4 8-17-87,8 17 87 DATE: AUGUST 17, 1987 TO: WILLIAR A. HUSTO#, EXECUTIVE DIRECTOR '" FROM: CONNUNIT~f DEVELOi~IENT DEPARTNEHT SUBJECT: CORPLIANCE WITIt AB 265 CONCER#IHG 'SET ASIDE' FU#DS FOR LOW MID #ODERATE I#CONE HOUSING j RECOI~ENDATION: It is recommended that the Redevelopment Agency: i. Adopt Resolution No. RDA 87-11. 2. Adopt Resolution No. RDA 87-!2, BACKGROUND: Section 33334.6 of the California Health and Safety Code ~dentified 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 incrment 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 lg77, it was not previously subject to this 205 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 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: City Council Report Set Aside Funds August 17, 1987 Page two (a) that all or a portion of these funds are needed to meet exlstlng obligations, that ts 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 and activities, on whtch 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. ROA 86-10 and ROA 86-11. 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 87-11 reaffirms the 11st of Town Center existing obligations and programs. The second at:ached Resolution No. RDA 87-12 makes a ftndtng that no deposit of set-aside funds are necessary for fiscal year 1986-87. The State Department of Housing and Community Development were forwarded copies of draft Resolution No. RDA 87-11 and RDA 87-12. CAS :per Attachments: Resolution No. RDA 87-11 Resolution No. RDA 87-12 N,, Corn munity DeveloPment Department ~" DRAFT RESOLUTION NO. RDA 87-11 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 Tusttn on November 22, 1976 by Ordinance No. 701. WHEREAS, Section 33334.5 (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 33334.2, 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, 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 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. DRAFT Redevelopment Agency Resolution No. 87-11 Page t~o NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN does hereby resolve as follows: Section 1. The Agency hereby readopts Statement of Existing Obligations for the Tusttn Redevelopment ProJect No. 1 attached hereto and marked "Attachment 1" and Statement of Existing Programs for the Tusttn 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 l, 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. PASSED AND ADOPTED at a regular meeting of the Community Redevelopment Agency at Tustin, California, held on the ~day of , 1987. Richard B. Edgar Chairman Mary E. Wynn Secretary DRAFT ATTACHHENT 1 STATERENT OF EXISTING OBLZGATIONS Town Center Redevelopment ProJect Description o~ To~al Amounts Annual Date Obligations Existing Obligations of Obligations Payments Will Be Discharged Tusttn Community Redevelopment Agency Town Center Area Redevelopment Project Tax Allocation Bonds- Series 1982 $22,404,147 $g33,$06 01/01/06 Undetermined amount of funds required to l~lement projects approved prior to January 1, 1986. See attached debt service schedule. DRAFT ATTACHMENT 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 consister~l 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. DRAFT RESOLUTION NO. RDA 87-12 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN MAKING A FINDING 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 Tustln 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 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 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 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, 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 required for the obligations adopted in the Statement of Existing Obligations or Programs or Both in Resolution No. 87-11 will be in excess of 6.3 million dollars during the fiscal year 1986-87; and Redevelopment Agency Resolution No. 87-12 Page two WHEREAS, 1986-87 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 $1,631,384; and WHEREAS, of the taxes allocated for the Project pursuant to Section 33670 of the CRL for the 1986-87 fiscal year an estimated minimum of $326,276 is to be deposited into th6 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 Tusttn Town Center 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 $326,276 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, tn whole or tn 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 August 17, 1987. 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 Tusttn Town Center Redevelopment Project Area for the 1986-87 fiscal year. Section 3. The Agency Secretary is authorized and dtrected to send a copy of this resolution to the State Department of Housing and Community Development Department. PASSED AND ADOPTED at a regular meettng of the Community Redevelopment Agency at Tustin, California, held on the ~day of , 1987. Richard B. Edgar Chairman Mary E. Wynn Secrtary