HomeMy WebLinkAboutOB Reso No 2016-007 Approving Repayment Schedule for the LoanRESOLUTION NO. 2016 -007
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
LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND TO
THE PROJECT AREAS OF THE FORMER REDEVELOPMENT AGENCY IN
ACCORDANCE WITH HEALTH & SAFETY CODE SECTION 34171(D)(1)(G)
AND APPROVING A REPAYMENT SCHEDULE FOR THE LOAN IN
ACCORDANCE WITH HEALTH & SAFETY CODE SECTION 34176(e)(6)(B)
WHEREAS, the Oversight Board ( "Oversight Board ") to the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore (the "Successor Agency ") has been
established to oversee the wind down of the affairs of the former Redevelopment Agency of the
City of Lake Elsinore (the "Agency ") in accordance with the California Health & Safety Code
Section 34179; and,
WHEREAS, in 1995, the Agency issued bonds, deposited the proceeds of approximately
$18,897,437 into its Low and Moderate Income Housing Fund ( LMIHF) and authorized a loan to
the Project Areas of the former Redevelopment Agency from the LMIHF (the "Interfund Loans ");
and,
WHEREAS, the Successor Agency's Interfund Loan obligation, less any payments made to date
and increased by any interest accrued to date, 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 related
materials and applicable statutes; and,
WHEREAS, the Oversight Board finds that the Interfund Loans constitute amounts borrowed
from, or payments owing to, the Low and Moderate Income Housing Fund of a redevelopment
agency, which had been deferred as of the date of dissolution of the Agency in accordance with
subdivision (d)(1)(G) of Health & Safety Code section 34171; and
WHEREAS, the Oversight Board desires to approve a repayment schedule for the Interfund
Loans in accordance with subdivision (d)(1)(G) of Health & Safety Code section 34171 and
subdivision(e)(6)(B) of Health & Safety Code section 34176; and,
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
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 1 The Oversight Board finds that the Interfund Loans to the Project Areas from the
Low and Moderate Income Housing Fund in the original principal amount of approximately
$18,897,437, plus any interest accrued to date and less any payments made to date, constitute
amounts borrowed from, or payments owing to, the Low and Moderate Income Housing Fund of
a redevelopment agency, which had been deferred as of the date of dissolution of the Agency in
OB Resolution No. 2016 -007
Page 2
accordance with subdivision (d)(1)(G) of Health & Safety Code section 34171 and therefore
constitute an enforceable obligation of the Successor Agency in accordance with Health & Safety
Code Section 34171(D)(1)(G).
SECTION 3. The Oversight Board finds that the Interfund Loans to the Project Areas from the
Low and Moderate Income Housing Fund were made for legitimate Redevelopment purposes.
SECTION 4. In accordance with Health & Safety Code Section 34171(D)(1)(G), the Oversight
Board approves a repayment schedule for the Interfund Loans in an annual amount equal to the
lesser of (i) the maximum repayment calculated in accordance with Section 2.05(c) of that certain
Housing Fund Loan Agreement dated as of December 1, 1995, by and between the Lake Elsinore
Public Financing Authority and the Agency; (ii) the maximum amount allowed for repayment
calculated in accordance with Health & Safety Code Section 34176(e)(6)(B), or (iii) estimated
available real property tax trust funds (RPTTF) remaining for any given annual recognized
obligation payment schedule (ROPS) after payment of all other enforceable obligations.
SECTION 5. Repayments made on the Interfund Loans shall be transferred to the Low and
Moderate Income Housing Asset Fund established pursuant to subdivision (d) of Section 34176
as a housing asset and shall be used in a manner consistent with the affordable housing
requirements of the Community Redevelopment Law (Part 1 (commencing with Section 33000)).
SECTION 6. 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 7. Pursuant to Health & Safety Code Section 34179(h), this Resolution shall be
effective five (5) business days after proper notification hereof is given to the California
Department of Finance unless the California Department of Finance requests a review of the
actions taken in this Resolution, in which case this Resolution will be effective upon approval by
the California Department of Finance.
PASSED AND ADOPTED at a Special meeting of the Oversight Board to the Successor Agency
of the Redevelopment Agency of the City of Lake Elsinore, held this 7th day of July 2016.
ATTEST: �f
'Sbsan M. Domen, MMC
Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIbE ) ss.
CITY OF LAKE ELSINORE )
of K lley, Chairpo son
77
OB Resolution No. 2016 -007
Page 3
I, Susan M. Domen, Clerk of the Oversight Board of the City of Lake Elsinore, California, hereby
certify that Resolution No. OB- 2016 -007 was adopted by the Oversight Board to the Successor
Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at a Special
meeting held on the 7t" day of July 2016, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Board Members Jeffries, Lassey,
None
Board Member Tisdale
None
Swan M. Domen, MMC
Clerk of the Oversight Board
M. Williams and P. Williams, and Chair Kelley