OB - Item 3B - Housing AssetsROSEMEAD SUCCESSOR
AGENCY STAFF REPORT
TO: THE HONORABLE CHAIR AND BOARD MEMBERS
FROM: MATTHEW HAWKESWORTH. ASSISTANT CITY MANAGER
DATE: JULY 18, 2012
SUBJECT: HOUSING ASSETS
SUMMARY
The City of Rosemead elected to become the Successor Agency for the Housing
function previously performed by the Rosemead Redevelopment Commission. Since
the implementation of ABx1 26 on February 1, 2012, there has been little to do in the
capacity of successor housing entity as details were still being worked out between the
Legislature and the Department of Finance (DOF) regarding the dissolution of Low -
Moderate Housing Funds and related assets. As part of the State's 2012 -13 Budget,
trailer bill AB 1484 was approved; which provides procedural details on how to fulfill the
dissolution of former Redevelopment Agencies and the ongoing operations of
Successor Agencies. The first step in the dissolution of the former Low - Moderate
Income Funds and related assets is to prepare a statement of assets as required by
Section 34176(e) of the Government Code. The successor housing entity must submit a
list of housing assets to the DOF by August 1, 2012 in a format provided by the DOF;
however, the format has not been provided at the time of this staff report.
As previously presented to the Oversight Board, the former Housing Agency did not
own any assets, but is holding approximately $1.9 million in cash. Per Section 34176(e)
of the Code, cash is not listed as an asset type for the successor housing entity.
Therefore there will be no assets to report to the DOF once the reporting format is made
available. Staff is requesting that the Oversight Board approve the filing of the report
showing no reportable assets with a commitment from the staff that a copy of the report
will be distributed to all Board Members once the form is received and completed.
Staff Recommendation:
That the Oversight Board approve Resolution 2012 -0007 approving the successor
entity's housing asset form reporting no assets per Section 34176(e) of the Code.
BACKGROUND
AB 1484 established numerous clarifying Government Code amendments related to
ABx1 26 regarding the dissolution of Redevelopment. Included in AB 1484 are
guidelines regarding the transfer and disposition of assets of the former redevelopment
and housing agencies. For the purposes of completing the housing asset report which
ITEM NO.
Rosemead Successor Agency Oversight Board
July 18, 2012
Page 2 of 3
is due by August 1, 2012, AB 1484 amended Section 34176(e) of the Code to define
housing assets as follows:
34176. (e) For purposes of this part, "housing asset' includes all of the following:
(1) Any real property, interest in, or restriction on the use of real property,
whether improved or not, and any personal property provided in residences, including
furniture and appliances, all housing - related files and loan documents, office supplies,
software licenses, and mapping programs, that were acquired for low- and moderate -
income housing purposes, either by purchase or through a loan, in whole or in part, with
any source of funds.
(2) Any funds that are encumbered by an enforceable obligation to build or
acquire low- and moderate - income housing, as defined by the Community
Redevelopment Law (Part 1 (commencing with Section 33000)) unless required in the
bond covenants to be used for repayment purposes of the bond.
(3) Any loan or grant receivable, funded from the Low and Moderate Income
Housing Fund, from homebuyers, homeowners, nonprofit or for - profit developers, and
other parties that require occupancy by persons of low or moderate income as defined
by the Community Redevelopment Law (Part 1 (commencing with Section 33000)).
(4) Any funds derived from rents or operation of properties acquired for low- and
moderate - income housing purposes by other parties that were financed with any source
of funds, including residual receipt payments from developers, conditional grant
repayments, cost savings and proceeds from refinancing, and principal and interest
payments from homebuyers subject to enforceable income limits.
(5) A stream of rents or other payments from housing tenants or operators of low -
and moderate - income housing financed with any source of funds that are used to
maintain, operate, and enforce the affordability of housing or for enforceable obligations
associated with low- and moderate - income
housing.
(6) (A) Repayments of loans or deferrals owed to the Low and Moderate Income
Housing Fund pursuant to subparagraph (G) of paragraph (1) of subdivision (d) of
Section 34171, which shall be used consistent with the affordable housing requirements
in the Community Redevelopment Law (Part 1 (commencing with Section 33000)).
(B) Loan or deferral repayments shall not be made prior to the 2013 -14 fiscal
year. Beginning in the 2013 -14 fiscal year, the maximum repayment amount authorized
each fiscal year for repayments made pursuant to this paragraph and subdivision (b) of
Section 34191.4 combined shall be equal to one -half of the increase between the
amount distributed to taxing entities pursuant to paragraph (4) of subdivision (a) of
Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant
to that paragraph in the 2012 -13 base year Loan or deferral repayments made
pursuant to this paragraph shall take priority over amounts to be repaid pursuant to
subdivision (b) of Section 34191.4.
Due to the fact that the Rosemead's housing successor entity does not have any of the
assets listed above, the required asset report will be returned to the DOF stating that
there are no reportable assets.
Rosemead Successor Agency Oversight Board
July 18, 2012
Page 3 of 3
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process in
accordance with the Brown Act.
Prepared by:
n
Matthew E. Hawkesworth
Assistant City Manager
RESOLUTION: 2012 -0007
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE
SUBMISSION OF THE HOUSING ASSET INFORMATION AS REQUIRED BY HEALTH AND
SAFETY CODE SECTION 34176(a)(2)
WHEREAS, California Health and Safety Code section 34176(a)(2) requires that each entity
assuming the housing functions of the former redevelopment agency submit to the Department of
Finance by August 1, 2012, a list of all housing assets; and
WHEREAS, Section 34176(a)(2) also requires that the listing of assets include an explanation
of how each asset meets the criteria specified in subdivision (e) of Section 34176; and
WHEREAS, Section 34176(a)(2) also requires that the list shall include all assets transferred
between February 1, 2012 and the date upon which the list is created.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES:
1. The City of Rosemead, serving as the Successor Agency for the former housing functions
of the Rosemead Community Development Commission, did not make any transfers of
assets between February 1, 2012 and the date upon which this Resolution was adopted.
2. The City of Rosemead, serving as the Successor Agency for the former housing functions
of the Rosemead Community Development Commission, does not have any reportable
housing assets as defined by Health and Safety Code Section 34176(e).
3. The Oversight Board for the Rosemead Successor Agency authorizes the Assistant City
Manager for the City of Rosemead to file the necessary reports as provided by the
Department of Finance to meet the requirements of Health and Safety Code Section
34176(a)(2) prior to the August 1, 2012 deadline.
PASSED, APPROVED AND ADOPTED this 18th day of July 2012.
Chairperson
ATTEST:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager
HEREBY CERTIFY that the above and foregoing resolution was duly passed and adopted by the
Oversight Board for the Successor Agency to the Rosemead Community Development Commission
at its special meeting held on the 18 day of July 2012, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager