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HomeMy WebLinkAboutOB Reso No 2014-001RESOLUTION NO. OB- 2014 -001 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE SETTING FORTH CERTAIN FINDINGS WITH RESPECT TO A SERAF LOAN BETWEEN THE FORMER REDEVELOPMENT AGENCY AND THE CITY OF LAKE ELSINORE IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34191.4 AND APPROVING A REPAYMENT SCHEDULE FOR THE SERAF LOAN IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34171(D)(1)(G) WHEREAS, on May 11, 2010, the Redevelopment Agency of the City of Lake Elsinore made findings that there was insufficient unallocated funds available in the Agency's Project Area accounts to pay the Agency's Supplemental Educational Revenue Augmentation Fund ( SERAF) obligation and authorized the suspension of the affordable housing set aside into the Low and Moderate Income Housing Fund (LMIHF) for Fiscal Year 2009/10 in an amount not to exceed $4,000,000 in order to meet the Agency's SERAF obligation; and WHEREAS, the Agency's SERAF obligations were $6,970,262 for fiscal 2009/10 and $1,435,054 for fiscal 2010/11; and WHEREAS, for fiscal year 2009 /10, the Agency paid $3,750,000 by suspending a portion of the 20% deposit required into the LMIHF and the remainder was paid from non - housing funds; and WHEREAS, for fiscal year 2010/11, the Agency paid its SERAF obligation from Debt Service Funds; and WHEREAS, the Successor Agency's SERAF loan obligation of $3,750,000 has been reported on the Successor Agency's Recognized Obligation Payment Schedules (ROPS); and WHEREAS, the Oversight Board has read and considered the Agency's Staff Reports and Minutes; and WHEREAS, the Successor Agency received its Health and Safety Code Section 34179.7 "Finding of Completion" on April 26, 2013; and WHEREAS, the California Department of Finance has required Successor Agencies to expressly comply with Health and Safety Code Section 34191.4, which permits repayment of the SERAF loan provided a Finding of Completion has been issued to the Successor Agency and certain other conditions are met. OVERSIGHT BOARD RESOLUTION NO. OB 2014 -001 Page 2 NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The Oversight Board finds that the loan to the Agency from the Low and Moderate Income Housing Fund for Supplemental Education Revenue Augmentation Fund (SERAF) purposes in the amount of $3,750,000 is an enforceable obligation. SECTION 3. The Oversight Board finds that the loan to the Agency from the Low and Moderate Income Housing Fund for Supplemental Education Revenue Augmentation Fund (SERAF) purposes in the amount of $3,750,000 was made for legitimate Redevelopment purposes. SECTION 4. In accordance with Health and Safety Code Section 34171(D)(1)(G), the Oversight Board approves a repayment schedule for the loan to the Agency from the Low and Moderate Income Housing Fund for Supplemental Education Revenue Augmentation Fund (SERAF) purposes in total not to exceed $3,750,000 as follows: the repayment amount for each fiscal year will be equal to the maximum amount allowed pursuant to Health and Safety Code Section 34176(e)(6)(B). The repayment amount for the ROPS 14 -15A calculated in accordance with the foregoing is $246,256. SECTION 5. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 5. This Resolution shall take effect from and after the date of its passage and adoption. OVERSIGHT BOARD RESOLUTION NO. OB 2014 -001 Page 3 PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 25th day of February 2014 by the following vote: Phil Williams, Chairperson Oversight Board to the Successor Agency of the Redevelopment Agency of the City of ATTEST: TO FORM: Deputy Clerk Phillip 6brodr, Oversight Board Counsel STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Diana Giron, Deputy Clerk of the Oversight Board and Deputy City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. OB- 2014 -001 was adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at a regular meeting held on the 25th day of February 2014, and that the same was adopted by the following vote: AYES: Board Members Tisdale, Kelley, Oster and Chairman Williams NOES: None ABSENT: None ABSTAIN: None Landon, Lassey, Schultz, Vice -Chair Dina -Giron Deputy Clerk of the Board