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HomeMy WebLinkAboutReport to Redevelopment Agency 12/13/2011 (2) CITY OF LAKE OLSINon , �` DREAM EXTREME. REPORT TO REDEVELOPMENT AGENCY TO: HONORABLE CHAIRWOMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: DECEMBER 13, 2011 SUBJECT: RESOLUTION MAKING VARIOUS FINDINGS RELATED TO THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUND INTRODUCTION: The Agency must set aside and use 20% of its tax increment revenues for the purpose of increasing, improving and preserving the community's supply of low- and moderate - income housing. Redevelopment agencies must maintain separate accounting for the housing funds and report annually on their activities and status. Agency Counsel has recommended that the Agency Board consider certain "housekeeping" matters related to its Low and Moderate Income Housing Fund and compliance with the Community Redevelopment Law. DISCUSSION: The attached Resolution proposes to make certain findings related to the Agency's Housing Fund. Those findings include: (1) that the Agency has established a separate Housing Fund to account for the 20% of the tax increment set aside for affordable housing, (2) that the Agency has annually deposited at least the required 20% of gross tax increment into the Housing Fund, (3) that the Agency has expended those monies for proper affordable housing purposes; and (4) that any interest earned by the Housing Fund, and any repayments or other income to the Agency for loans, advances, or grants from the Housing Fund, accrued to and were deposited into the Housing Fund. Additionally, the Resolution includes a finding that, for Fiscal Year 2010/2011, the expenditure of Housing Fund monies on planning and general administrative costs was necessary for the production, improvement, and preservation of affordable housing. The Agency budgeted $123,150 to cover a portion of Agency staff compensation for services related to the Agency's affordable housing activities. The amount expensed AGENDA ITEM NO. 7 Page 1 of 5 REPORT TO REDEVELOPMENT AGENCY HOUSING FUND RESOLUTION DECEMBER 13, 2011 Page 2 from the Housing Fund in 2010/2011 for planning and general administrative activities, including Agency staff and legal, accounting and consultant fees was less than $100,000. Other charges against the Housing Fund for staff and professional services are project- specific costs. For Fiscal Year 2010/2011, planning and general administrative costs represent less than 1% of the Agency's total Housing Fund expenditures. The Resolution also contains a finding by the Agency that the expenditure of Housing Funds outside of the Project Areas is a benefit to the Project Areas and contributes to the community's supply of affordable housing. Finally, the Resolution contains a finding by the Agency that its Housing Fund has no excess surplus within the meaning of the Community Redevelopment Law. FISCAL IMPACT: None. RECOMMENDATION: Approve the attached Agency Resolution Making Various Findings Related to the Lake Elsinore Redevelopment Agency's Low and Moderate Income Housing Fund. Prepared by: Barbara Leibold Agency Counsel Approved by: Robert A. Brady g ,� p Executive Directo Attachment: 1. Agency Resolution Making Various Findings Related to the Lake Elsinore Redevelopment Agency's Low and Moderate Income Housing Fund Page 2 of 5 RESOLUTION NO. 2011 -011 RDA RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE MAKING VARIOUS FINDINGS RELATED TO THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUND WHEREAS, the Redevelopment Agency of the City of Lake Elsinore ( "Agency ") is a community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24, commencing with Section 33000, of the Health and Safety Code of the State of California ( "CRL "); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plans ( "Redevelopment Plans ") for the Lake Elsinore Rancho Laguna Redevelopment Project Areas No. I, No. II, and No. III ( "Project Areas ") which were adopted by the Agency's legislative body, the City Council of the City of Lake Elsinore ( "City Council "), by Ordinance No. 607 on September 23, 1980 and thereafter amended by Ordinance No. 624 on July 20, 1981, Ordinance No. 987 on November 22, 1994, Ordinance No. 1249 on February 26, 2008 and Ordinance No. 1260 on April 28, 2009 (Project Area No. I), by Ordinance 671 on July 18, 1983 and thereafter amended by Ordinance No. 987 on November 8, 1994, Ordinance No. 1249 on February 26, 2008 and Ordinance No. 1261 on April 28, 2009 (Project Area No. II), and by Ordinance No. 815 on September 8, 1987 and thereafter amended by Ordinance No. 987 on November 8, 1994, Ordinance No. 1249 on February 26, 2008 and Ordinance No. 1262 on April 28, 2009 (Project Area No. III); and WHEREAS, pursuant to Section 33334.2(a) of the CRL, not less than twenty percent (20 %) of all taxes which are allocated to the Agency shall be set aside by the Agency in a Low and Moderate Income Housing Fund ( "Housing Fund ") and used by the Agency for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing costs to persons and families of low and moderate income; and WHEREAS, pursuant to Section 33334.3 of the CRL, agencies are required to maintain a separate accounting of the Agency's Housing Fund; and WHEREAS, pursuant to Section 33334.3(d) of the CRL, it is the intent of the California State Legislature that the amount of money spent for planning and general administration from the Housing Fund not be disproportionate to the amount actually spent for the cost of production, improvement or preservation of low- and moderate - income housing; and WHEREAS, pursuant to Section 33334.3(i) of the CRL, agencies that have more than one project area may satisfy the 20% housing set aside requirement by allocating, in any fiscal year, less than 20 percent in one project area, if the difference between the amount allocated and the 20 percent required is instead allocated, in that same fiscal year, to the Housing Fund from tax increment revenues from other project areas; and Page 3 of 5 WHEREAS, the Agency desires to make certain findings in connection with its Housing Fund and the accounting required by Section 33334.3 of the CRL. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. In accordance with to Section 33334.3(a) of the CRL, the Agency hereby finds, declares and determines that it has established a separate and distinct Housing Fund to account for twenty percent (20 %) of the tax increment that was allocated to it for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing costs to persons and families of low and moderate income. SECTION 2. Pursuant to Section 33334.2(a) of the CRL, the Agency has annually deposited not less than twenty percent (20 %) of the total tax increment revenues allocated to it (before deductions for pass- through payments to taxing entities or other balance transfers) into the Housing Fund and the Agency has expended monies from the Housing Fund for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing costs to persons and families of low and moderate income. SECTION 3. The Agency further finds, declares and determines that any interest earned by the Housing Fund, and any repayments or other income to the Agency for loans, advances, or grants, of any kind from the Housing Fund, accrued to and was deposited into the Housing Fund. SECTION 4. The Agency hereby finds, declares and determines that for Fiscal Year 2010/2011: 1) the expenditure of Housing Fund monies on planning and general administrative costs was necessary for the production, improvement, and preservation of low- and moderate- income housing; 2) that the planning and general administrative costs that were paid for by the Housing Fund included costs incurred for salaries, wages, and related costs of the Agency's staff or for services provided through agreements with contractors, including usual direct costs related thereto, and 3) that the planning and general administrative costs that were paid for by the Housing Fund were not disproportionate to the amount spent for the costs of production, improvement and preservation of housing affordable to low and moderate income persons. SECTION 5. The Agency hereby finds, declares and determines that the expenditure of Housing Funds outside of the Project Areas, including the aggregation of the Housing Fund pursuant to Section 33334.3(i) of the CRL, is a benefit to the Project Areas and contributes to the community's supply of affordable housing. SECTION 6. The Agency hereby finds, declares and determines that its expenditure of Housing Funds to the Pottery Court and Lakeview Apartments projects will increase, improve and preserve the community's supply of affordable housing and Page 4 of 5 that affordability covenants were recorded in accordance with applicable CRL requirements, including annual certification and reporting obligations. SECTION 7. The Agency hereby finds, declares and determines that Housing Funds were expended for on- or off -site improvements only as an integral part of the Pottery Court and Lakeview Apartments projects that will provide approximately 261 affordable units and that no other Housing Funds were expended for on- or off -site improvements. SECTION 7. The Agency hereby finds, declares and determines that both the beginning and ending Housing Fund balance for the 2010/11 Fiscal Year demonstrate no excess surplus within the meaning of Sections 33334.10 and 33334.12 of the CRL. SECTION 9. The effective date of this Resolution shall be the date of its adoption. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevelopment Agency of the City of Lake Elsinore this 13th day of December, 2011. Melissa Melendez, Chairwoman Redevelopment Agency of the City of Lake Elsinore ATTEST: Virginia Bloom, Agency Secretary APPROVED AS TO FORM: Barbara Leibold, Agency Counsel Page 5 of 5