CC - Item 9A - Adopting of A Resolution Electing to Retain the Housing Assets and Functions Previously Held by the Community Development CommissionO
TO: THE HONORABLE MAYOR AND COUNCI MEMBERS
FROM: JEFF ALLRED, CITY MANAGER.
DATE: JANUARY 24, 2012
SUBJECT: ADOPTION OF A RESOLUTION ELECTING TO RETAIN THE
HOUSING ASSETS AND FUNCTIONS PREVIOUSLY HELD BY THE
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
SUMMARY
At the January 10, 2012 City Council Meeting, the City Council elected to become the
Successor Agency for the Rosemead Community Development Commission. During
the discussion regarding this item, it was mentioned that staff and the City Attorney
were still reviewing the requirements and responsibilities if the City was to also become
the Successor Agency for the housing assets and the Low -Mod Income Fund. Since
there is still significant uncertainty regarding the future funding of affordable housing,
the enclosed resolution has been written to accept the housing responsibility with an
option for the City to opt -out if funding is not provided by the State for operations or
future obligations. We believe that this provides the City with the best option for the
future. The Rosemead Housing Development Corporation will maintain ownership of
the two senior low- income apartment complexes and the City will be in a position to
receive funding for these complexes and other operational costs should they become
available.
Staff Recommendation:
That the City Council approve Resolution 2012 -08 designating the City of Rosemead as
the Successor Agency and electing to retain the housing assets and functions
previously held by the Rosemead Community Development Commission.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Matthew E. Hawkesworth
Assistant City Manager
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APPROVED FOR CITY COUNCIL AGENDA:
RESOLUTION NO. 2012 -08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
ELECTING TO RETAIN THE HOUSING ASSETS AND FUNCTIONS PREVIOUSLY
HELD AND PERFORMED BY THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION
WHEREAS, the Rosemead Community Development Commission ( "Commission ") is a
redevelopment agency organized and existing under the California Community Redevelopment
Law (Health & Safety Code § 33000 et seq.) ( " CRL ") and has been authorized to transact
business and exercise the powers of a redevelopment agency pursuant to action of the City
Council of the City of Rosemead ( "City "); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
redevelopment plans for the Commission, and the Commission is vested with the responsibility
for implementing and carrying out the plans; and
WHEREAS, in connection with approval and adoption of the State Budget for Fiscal
Year 2011 -12, the California Legislature approved and the Governor signed (i) AB 1X 26 (Stats.
2011, chap. 5, "AB 1X 26 "), which immediately, and purportedly retroactively, suspended all
otherwise legal redevelopment activities and incurrence of indebtedness, and provided for
dissolution of California's redevelopment agencies effective October 1, 2011 (the "Dissolution
Act "); and (ii) AB 1X 27 (Slats. 2011, chap. 6, "AB 1X 27 "), which allowed a local community
to avoid the consequences of the Dissolution Act and continue its redevelopment agency if the
community enacted an ordinance agreeing to comply with the alternative voluntary
redevelopment program described in Section 2 of AB 1X 27 adding Part 1.9 (commencing with
section 34192) of Division 24 of the Health and Safety Code; and
WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the State
of California on July 18, 2011 (California Redevelopment Association, et al. v. Ana Matosantos,
et al., Case No. 5194861), challenging the constitutionality of AB 1X 26 and AB 1X 27 on
behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement; and
WHEREAS, in a decision filed on December 29, 2011, the Supreme Court found the
dissolution of redevelopment agencies effected by AB 1X 26 to be a proper exercise of the
legislative power vested in the Legislature by the State Constitution and the provisions of AB 1X
27 allowing communities to save their redevelopment agencies if they made the "voluntary"
remittance payments under AB 1X 27 to violate Proposition 22, thus upholding the
constitutionality of AB 1X 26 and holding AB 1X 27 unconstitutional; and
WHEREAS, the Supreme Court extended the timeframes set forth in AB 1X 26 for,
among other things, determining whether a city desires to serve as a successor entity until
January 13, 2012, and the election of accepting housing assets and functions prior to the
dissolution of redevelopment agencies on February 1, 2012; and
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WHEREAS, pursuant to Health and Safety Code Section 341710), the City Council at its
meeting of January 10, 2012, elected to serve as the successor agency to the Commission; and
WHEREAS, Health and Safety Code Section 34176(a) gives the city that authorized
creation of a redevelopment agency the option of retaining the Commission's housing assets and
functions, excluding amounts on deposit in the Low and Moderate Income Housing Fund; and
WHEREAS, as allowed under AB 1X 26, the City desires to retain the Commission's
housing assets and functions, subject to sufficient fimding as described below.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That in accordance with Health and Safety Code Section 34176, the City
Council elects that the City shall retain the housing assets and functions previously performed by
the Commission.
SECTION 2. That the City Council's election in Section 1 to retain the housing assets
and functions is subject to funds or a funding mechanism being provided to the City to undertake
and satisfy all obligations of the Commission's prior housing functions. If, in the City's sole
judgment, sufficient funding is not identified to satisfy all obligations of the housing functions of
the prior Commission, the City Council retains the right to rescind its election. In the event the
City does not retain the Commission's housing functions and assets, those functions and assets
are hereby transferred to the Housing Authority for the County of Los Angeles.
SECTION 3. That the City Council hereby further authorizes and directs the City
Manager to take all actions and execute all documents as necessary or appropriate to implement
this Resolution.
SECTION 4. That this resolution shall take effect immediately upon adoption.
SECTION 5. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
SECTION 6. That the City Clerk shall file a certified copy of this resolution with the
Los Angeles County Auditor - Controller's Office.
PASSED AND ADOPTED as a Resolution of the City Council of the City of Rosemead
on January 24, 2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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STEVEN LY, MAYOR
ATTEST:
GLORIA MOLLEDA, CITY CLERK
APPROVAL AS TO FORM:
RACHEL RICHMAN, CITY ATTORNEY
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