OB - Item 2A - Housing Due Diligence ReportROSEMEAD SUCCESSOR
AGENCY STAFF REPORT
TO: THE HONORABLE CHAIR AND BOARD MEMBERS
FROM: MATTHEW HAWKESWORTH, ASSISTANT CITY MANAGER
DATE: OCTOBER 17, 2012
SUBJECT: HOUSING DUE DILIGENCE REPORT
SUMMARY
Under AB 1484, the Successor Agency was required to complete a due diligence review
of the former Low and Moderate Income Housing Fund. At the last Oversight Board
meeting the Board authorized staff to enter into an agreement with Vavrinek, Trine, Day
& Co., LLP to conduct the review and work to complete the report by the October 1,
2012 deadline. The review was completed on October 1, 2012 and the report was sent
to the various governmental agencies as required by the legislation. Prior to the Board
formally accepting and approving the review, the Board is required to hold a public
comment session at least five (5) working days prior to the approval. As such, the
Board will need to seta date for a special meeting to consider the approval of the report
on or after October 17, 2012. The Board may recall that the due date for the approval
of the report is October 15, 2012; however, staff has been informed by the Department
of Finance (DOF) that there are no penalties for late submissions and the DOF requests
that the report be submitted as soon as reasonably possible.
The Agreed Upon Procedures review was conducted in accordance with AB 1484 in
order to ensure that all of the winding down procedures had been followed and to make
a determination as to the amount of available fund balance in the Low and Moderate
Income Housing Fund that may be remitted to the State. As noted in the report, there
were no adverse findings made during the review and the Successor Agency has made
the appropriate transfers of assets and duties as applicable.
Staff Recommendation:
That the Oversight Board accept the Due Diligence Report as prepared by Vavrinek,
Trine, Day and Co., LLP and approve Resolution 2012 -0011 approving the Review.
BACKGROUND
Per Health and Safety Code Section 34179.5 each Successor Agency is required to
employ a licensed accountant, approved by the county auditor - controller, with
experience and expertise in local government accounting to conduct a due diligence
review to determine the unobligated balances available for transfer to taxing entities.
Due Diligence reviews of the Low and Moderate Income Housing Fund must be
submitted to the Oversight Board, the County Auditor - Controller, the State Controller's
Rosemead Successor Agency Oversight Board
October 17, 2012
Page 2 of 2
Office and the Department of Finance by October 1, 2012. After October 1 and prior to
October 15`", the Oversight Board is required to hold two public meetings. The first
meeting, tonight's meeting, is being held in order to receive public comment as required
by Health and Safety Code Section 34179.6 and the second meeting will be held in
order to approve the due diligence review. Additionally, the Code requires a minimum
of five (5) business days between the public comment meeting and the approval
meeting; therefore, the approval meeting must be held after the October 15, 2012
deadline. Successor Agency staff has already contacted the Department of Finance
regarding the difficulty meeting the imposed deadlines and has been reassured that no
penalties will be assessed for missing the deadline. The Department of Finance has
asked that the report be approved and submitted as soon as possible after the deadline.
The Agreed Upon Procedures review focused on the Low and Moderate Income
Housing Fund and the activities involving these funds as part of the winding down
process through June 30, 2012. The review confirmed that all assets and
responsibilities, where appropriate, had been transferred to the Successor Agency in
accordance with the legislation. Additionally, the review confirmed that all expenditures
that had been charged to the Low and Moderate Income Housing Fund were
appropriate and in accordance with approved enforceable obligations.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process in
accordance with the Brown Act.
Prepared by:
� MattheW�, Hawkesworth
Assistant City Manager
Attachments: Resolution 2012 -0011
Agreed Upon Procedures Review
RESOLUTION: 2012 -0011
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING
THE LOW AND MODERATE INCOME FUND DUE DILIGENCE REVIEW
WHEREAS, Assembly Bill 1484 amended Health and Safety Code Section 34179.5
requiring each Successor Agency to employ a licensed accounting firm to conduct a due
diligence review of the Low and Moderate Income Housing Fund; and
WHEREAS, the Oversight Board for the Successor Agency to the Rosemead
Community Development Commission selected Vavrinek, Trine, Day, and Co.,LLP to conduct
the Due Diligence Review; and
WHEREAS, the completed Due Diligence Review was transmitted to the California
Department of Finance, the State Controller's Office, and the County Auditor - Controller on
October 1, 2012; and
WHEREAS, on October 8, 2012 the Oversight Board for the Successor Agency to the
Rosemead Community Development Commission opened the Public Comment period to review
and accept comments on the Due Diligence Review; and
WHEREAS, on October 17, 2012 the Oversight Board for the Successor Agency to the
Rosemead Community Development Commission conducted a second meeting at least five (5)
business days after the Public Comment period began to formally approve the Due Diligence
Review.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES:
1. The Due Diligence Review as prepared by Vavrinek, Trine, Day & Co., LLP is
approved and shall be transmitted to the California Department of Finance, the State
Controller's Office and the County Auditor - Controller.
PASSED, APPROVED AND ADOPTED this 17th day of October 2012.
Chairperson
11
ATTEST:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager
I 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 17 day of October 2012, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
Matthew E. Hawkesworth
Successor Agency Staff
Assistant City Manager