HomeMy WebLinkAboutItem 3b: Resolution 6815: Electing Not to Retain Housing Assets and Functions of Redevelopment Agency ov
U~ �y
441,11ity 00" STAFF REPORT
Development Services Department
DATE: January 17, 2012
TO: Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director3
By: Jerry Schwartz, Economic Development Manager
SUBJECT: CONSIDERATION OF CONTINUING AFFORDABLE HOUSING
OBLIGATIONS AND FUNCTIONS AFTER THE DISSOLUTION OF THE
ARCADIA REDEVELOPMENT AGENCY UNDER AB 26
Recommendation: Adopt Resolution No. 6815, electing not to retain
the housing assets and functions previously performed by the
Arcadia Redevelopment Agency
BACKGROUND
On June 28, 2011, as part of the 2011-2012 State of California budget bill, companion
bills Assembly Bill 1X 26 ("AB 26") and Assembly Bill 1X 27 ("AB 27") were enacted,
which would use a "successor agency" to dissolve all redevelopment agencies unless
the communities that created the redevelopment agencies adopted ordinances to make
certain annual payments to the State. On July 18, 2011, the validity of AB 26 and AB
27 were challenged in the California Supreme Court. On December 29, 2011, the
Supreme Court issued a final decision in the matter, finding AB 26 valid but AB 27
invalid. As a result, redevelopment agencies will cease to exist on February 1, 2012.
AB 26 provides that upon the dissolution of the Arcadia Redevelopment Agency
("Agency"), the City of Arcadia ("City"), as the entity that created the Agency, may elect
to retain the housing assets and functions previously performed by the Agency. If the
City so elects, all rights, powers, duties, and obligations, excluding any amounts on
deposit in the Agency's Low and Moderate Income Housing Fund, would be transferred
to the City. If the City elects not to retain the housing functions, all rights, powers,
duties, and obligations, excluding any amounts on deposit in the Agency's Low and
Moderate Income Housing Fund, shall be transferred as follows: (1) where there is no
local housing authority in the territorial jurisdiction of the Agency, to the Department of
Housing and Community Development; (2) where there is one local housing authority in
the territorial jurisdiction of the Agency, to that local housing authority; (3) where there is
more than one local housing authority in the territorial jurisdiction of the Agency, to the
local housing authority selected by the City.
If the City Council desires to elect to retain the Arcadia Redevelopment Agency's
housing assets and functions, the City Council must pass Resolution No. 6814 to do so.
If the City Council does not wish to retain the Agency's housing assets and functions
and have it transfer to the local housing authority, it must pass Resolution No. 6815
instead.
DISCUSSION
Health and Safety Code section 34176, enacted by AB 26, provides that the City may
elect to retain the housing assets and functions previously performed by the Arcadia
Redevelopment Agency upon the Agency's dissolution. If the City retains such
functions and assets, all rights, powers, duties, and obligations, excluding any amounts
on deposit in the Agency's Low and Moderate Income Housing Fund, would be
transferred to the City.
Although AB 26 is ambiguous about the what all "rights, powers, duties and obligations"
pertaining to housing functions includes, which the public body retaining the housing
assets and functions of the Agency will take on, it likely includes the following: providing
production, inclusionary or replacement affordable housing units, developing affordable
housing units in accordance with community income demographic restrictions, and
monitoring and reporting on affordable housing as required. The Council should be
aware it will not be able to retain the Agency's low/mod housing funds, and there is no
identified continuing funding source for affordable housing functions in future years if it
assumes the Agency's housing functions and assets.
Pursuant to Health and Safety Code section 34176(b), if the City elects not to retain the
Agency's housing functions and assets, all rights, powers, duties, and obligations,
excluding any amounts on deposit in the Agency's Low and Moderate Income Housing
Fund, shall be transferred as follows: (1) where there is no local housing authority in the
territorial jurisdiction of the Agency, to the Department of Housing and Community
Development; (2) where there is one local housing authority in the territorial jurisdiction
of the Agency, to that local housing authority; (3) where there is more than one local
housing authority in the territorial jurisdiction of the Agency, to the local housing
authority selected by the City.
If the City wishes to elect to retain the housing assets and functions, it should approve
and adopt Resolution No. 6814 which is Attachment A to this staff report. If the City
wishes to elect not to retain the housing assets and functions it should approve and
adopt Resolution No. 6815, which is Attachment B to this staff report. If the Council
adopts Resolution No. 6815, the Agency's housing functions and assets will pass to a
local housing authority within the territorial jurisdiction of the Agency, which would be
the Los Angeles County Housing Authority.
Staff Report
January 17, 2012
Page 2 of 3
Regardless of the City Council's decision, it is important to note that the Agency's
low/mod housing fund balance will be transferred to the LA County Auditor-Controller to
be distributed to the various taxing entities as is required under AB 26.
FISCAL IMPACT
If the City elects to retain the housing functions and assets of the Agency, there will not
be any low/mod funds to pay the associated costs. Those costs will be borne through
some other source depending on the direction of the Oversight Board, including
potentially general redevelopment or the City's General Fund.
RECOMMENDATION
Adopt Resolution No. 6815 electing not to retain the housing assets and functions
previously performed by the Arcadia Redevelopment Agency.
Approved by: ry3
Donald Penman, City Manager
Attachment A: City Council Resolution No. 6814 electing to retain the Arcadia
Redevelopment Agency's housing functions and assets
Attachment B: City Council Resolution No. 6815 electing not to retain the Arcadia
Redevelopment Agency's housing functions and assets
Staff Report
January 17, 2012
Page 3 of 3
ATTACHMENT A
RESOLUTION NO. 6814
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, ELECTING TO RETAIN THE
HOUSING ASSETS AND FUNCTIONS PREVIOUSLY
PERFORMED BY THE ARCADIA REDEVELOPMENT
AGENCY PURSUANT TO PART 1.85 OF DIVISION 24 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, pursuant to the Community Redevelopment Law (Health & Saf.
Code, § 33000 et seq.), the City Council of the City of Arcadia ("City") created the
Arcadia Redevelopment Agency ("Agency"); and
WHEREAS, the Agency has been responsible for implementing the
Redevelopment Plan for the Central Redevelopment Project covering certain properties
within the City; and
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature
enacted, and the Governor signed, companion bills AB 1X 26 and AB 1X 27, requiring
that each redevelopment agency be dissolved unless the community that created it
enacts an ordinance committing it to making certain payments; and
WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the
State of California on July 18, 2011 (California Redevelopment Association, et al. v. Ana
Matosantos, et al., Case No. S194861), challenging the constitutionality of AB .1X 26
and AB 1X 27 on behalf of cities, counties and redevelopment agencies; and
WHEREAS, on August 11, 2011, and modified on August 17, 2011, the Supreme
Court stayed portions of AB 1X 26, and AB 1X 27 in its entirety, during the pendency of
the matter; and
WHEREAS, on December 29, 2011, the Supreme Court issued its final decision
in the aforesaid litigation, upholding AB 1X 26, invalidating AB 1X 27, and extending all
1
statutory deadlines under AB 1X 26, essentially dissolving all redevelopment agencies
throughout the State effective February 1, 2012; and
WHEREAS, Health and Safety Code section 34176 provides that the City may
elect to retain the housing assets and functions previously performed by the Agency,
but if the City does not so elect, all rights, powers, assets, liabilities, duties, and
obligations associated with the housing activities of the Agency, excluding any amounts
in the Low and Moderate Income Housing Fund, shall be transferred as follows: (1)
where there is no housing authority in the territorial jurisdiction of the Agency, to the
State of California Department of Housing and Community Development; (2) where
there is one local housing authority in the territorial jurisdiction of the Agency, to that
housing authority; (3) where there is more than one local housing authority in the
territorial jurisdiction of the Agency, to the local housing authority selected by the City;
and
WHEREAS, the City desires to elect to retain the housing assets and functions of
the former Agency; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
SECTION 2. The determination given in this Resolution does not commit the City
to any action that may have a significant effect on the environment. As a result, such
2
determination does not constitute a project subject to the requirements of the California
Environmental Quality Act. The City Council directs City staff to file a Notice of
Exemption within five (5) days following adoption of this Resolution with the Clerk of the
Board of Supervisors of the County of Los Angeles.
SECTION 3. In accordance with Health and Safety Code section 34176, and
based on the Recitals set forth above, the City Council hereby elects to retain the
housing assets and functions previously performed by the Arcadia Redevelopment
Agency. Upon dissolution of the Agency pursuant to Part 1.85 of Division 24 of the
California Health and Safety Code, and except as provided under AB 1X 26, all rights,
powers, assets, liabilities, duties and obligations associated with the housing activities
of the Arcadia Redevelopment Agency, excluding any amounts in the Arcadia
Redevelopment Agency's Low and Moderate Income Housing Fund, shall be
transferred in accordance with Health and Safety Code section 34176 to the City of
Arcadia.
SECTION 4. The City Council hereby authorizes and directs the City Manager,
or his designee, to take any action and execute any documents necessary to carry out
the purposes of this Resolution, including but not limited to notifying the Los Angeles
County Auditor-Controller, the Controller of the State of California, and the California
Department of Finance of the adoption of this Resolution and the transfer of all housing
assets and functions of the former Arcadia Redevelopment Agency to the City of
Arcadia, all in accordance with AB 1X 26.
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
3
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 City
Council hereby declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion thereof.
SECTION 6. This Resolution shall take effect immediately.
SECTION 7. The City Clerk shall to the adoption of this Resolution.
Passed, approved and adopted this 17th day of January, 2012.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
P 4e,t,&.e
Stephen P. Deitsch
City Attorney
4
ATTACHMENT B
RESOLUTION NO. 6815
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, ELECTING NOT TO RETAIN THE
HOUSING ASSETS AND FUNCTIONS PREVIOUSLY
PERFORMED BY THE ARCADIA REDEVELOPMENT
AGENCY PURSUANT TO PART 1.85 OF DIVISION 24 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
WHEREAS, pursuant to the Community Redevelopment Law(Health &Saf.Code, §
33000 et seq.), the City Council of the City of Arcadia ("City") created the Arcadia
Redevelopment Agency ("Agency"); and
WHEREAS,the Agency has been responsible for implementing the Redevelopment
Plan for the Central Redevelopment Project covering certain properties within the City; and
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature
enacted, and the Governor signed, companion bills AB 1X 26 and AB 1X 27, requiring that
each redevelopment agency be dissolved unless the community that created it enacts an
ordinance committing it to making certain payments; and
WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the
State of California on July 18, 2011 (California Redevelopment Association, et al. v. Ana
Matosantos, et al., Case No. S194861), challenging the constitutionality of AB 1X 26 and
AB 1X 27 on behalf of cities, counties and redevelopment agencies and requesting a stay
of enforcement; and
WHEREAS, on August 11, 2011, and modified on August 17, 2011, the Supreme
Court stayed portions of AB 1X 26, and AB 1X 27 in its entirety, during the pendency of the
matter; and
1
WHEREAS, on December 29, 2011, the Supreme Court issued its final decision in
the aforesaid litigation, upholding AB 1X 26, invalidating AB 1X 27, and extending all
statutory deadlines under AB 1X 26, essentially dissolving all redevelopment agencies
throughout the State effective February 1, 2012; and
WHEREAS, Health and Safety Code section 34176 provides that the City may elect
to retain the housing assets and functions previously performed by the Agency, but if the
City does not so elect, all rights, powers, assets, liabilities, duties, and obligations
associated with the housing activities of the Agency, excluding any amounts in the Low and
Moderate Income Housing Fund, shall be transferred as follows: (1) where there is no
housing authority in the territorial jurisdiction of the Agency, to the State of California
Department of Housing and Community Development; (2)where there is one local housing
authority in the territorial jurisdiction of the Agency, to that housing authority; (3) where
there is more than one local housing authority in the territorial jurisdiction of the Agency,to
the local housing authority selected by the City; and
WHEREAS, the City desires to elect not to retain the housing assets and functions
of the former Agency; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
2
SECTION 2. The determination given in this Resolution does not commit the City to
any action that may have a significant effect on the environment. As a result, such
determination does not constitute a project subject to the requirements of the California
Environmental Quality Act. The City Council directs City staff to file a Notice of Exemption
within five (5) days following adoption of this Resolution with the Clerk of the Board of
Supervisors of the County of Los Angeles.
SECTION 3. In accordance with Health and Safety Code section 34176, and based
on the Recitals set forth above, the City Council hereby elects not to retain the housing
assets and functions previously performed by the Arcadia Redevelopment Agency. Upon
dissolution of the Arcadia Redevelopment Agency pursuant to Part 1.85 of Division 24 of
the California Health and Safety Code, and except as otherwise provided under AB 1X 26,
all rights, powers, assets, liabilities, duties, and obligations associated with the housing
activities of the Arcadia Redevelopment Agency, excluding any amounts in the Low and
Moderate Income Housing Fund, shall be transferred in accordance with Health and Safety
Code section 34176.
SECTION 4. The City Council hereby authorizes and directs the City Manager, or
his designee, to take any action and execute any documents necessary to carry out the
purposes of this Resolution, including but not limited to notifying the Los Angeles County
Auditor-Controller, the Controller of the State of California, and the California Department
of Finance of the adoption of this Resolution.
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
3
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 City
Council hereby declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion thereof.
SECTION 6. This Resolution shall take effect immediately.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 17th day of January, 2012.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
-t,,t,p-gtit., P 1
Stephen P. Deitsch
City Attorney
4