Loading...
HomeMy WebLinkAboutRDA Item No. 5 Resolution 2010-006 Findings to Agency's Low and Moderate Income Housing FundCITY OF - i, LADE ,LSINOR,E , ` DREAM EXTREME- REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND AGENCY BOARD MEMBERS FROM: BARBARA LEIBOLD AGENCY COUNSEL DATE: DECEMBER 14, 2010 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 2009/2010, the expenditure of Housing Fund monies on planning and general administrative costs was necessary for the production, improvement, and preservation of affordable housing. Planning and administrative costs budgeted for 2009/10 was $123,150 to cover a portion of Agency staff compensation for services related to the Agency's affordable housing activities. The amount expensed from the Housing Fund in 2009/2010 for AGENDA ITEM NO. 5 Page 1 of 6 REPORT TO REDEVELOPMENT AGENCY HOUSING FUND RESOLUTION DECEMBER 14, 2010 Page 2 planning and general administrative activities, including Agency staff and legal, accounting and consultant fees was approximately $100,000. Other charges against the Housing Fund for staff and professional services are project- specific costs. 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. 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 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 6 RESOLUTION NO. 2010 -006 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. 1), 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(1) 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 6 Resolution No. 2010 -006 RDA Page 2 of 4 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 2009/2010 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. The Agency further finds, declares and determines 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. 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(1) 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 that its commitment of Housing Fund revenues to the Pottery Court and Lakeview Apartments projects will increase, improve and preserve the community's supply of affordable housing and that both the beginning and ending Housing Fund balance for the 2009/10 Fiscal Year demonstrate no excess surplus within the meaning of Sections 33334.10 and 33334.12 of the CRL. Page 4 of 6 Resolution No. 2010 -006 RDA Page 3 of 4 SECTION 7. 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 14th day of December, 2010. ROBERT E. MAGEE, CHAIRMAN REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM AGENCY SECRETARY APPROVED AS TO FORM: BARBARA LEIBOLD, AGENCY COUNSEL Page 5 of 6 Resolution No. 2010 -006 RDA Page 4 of 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, , Interim Agency Secretary of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. 2010 -006 RDA was adopted by the Redevelopment Agency Board of the Redevelopment Agency of the City of Lake Elsinore at a regular meeting held on the 14th day of December 2010, and that the same was adopted by the following vote: AYES: ►N ABSTAIN: UWAXZ11 INTERIM AGENCY SECRETARY, REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE Page 6 of 6