HomeMy WebLinkAbout05H Repymnt Schedule to HA - 2009-2010 SERAF THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE THE REPAYMENT SCHEDULE TO THE PALM
DESERT HOUSING AUTHORITY FOR THE OUTSTANDING
LOAN FROM THE LOW AND MODERATE INCOME HOUSING
FUND FOR THE 2009-10 SUPPLEMENTAL EDUCATIONAL
REVENUE AUGMENTATION FUND (SERAF) PAYMENT
SUBMITTED BY: Janet M. Moore, Director of Housing''/c`4 BY OVERSIGHT BOARDI
ON 04-fr- Pcj' -2-fl t�d-�
DATE: March 22, 2012 VERIFIED BY
O.;ginal on file with City Clerk's Office
Recommendation
By Minute Motion, that the board approves the repayment schedule to the
Palm Desert Housing Authority for the loan from the low and moderate
income housing fund for the 2009-2010 SERAF payment.
Executive Summary
In the 2009-10 fiscal year the Palm Desert Redevelopment Agency ("Agency") was allowed
to suspend its annual deposit to the Low and Moderate Income Housing Fund ("LMIHF"
also known as 20% set-aside) in order to offset the costs of the Agency's portion of the
2009-10 shift to Supplemental Education Revenue Augmentation Fund ("SERAF"). The
suspension was considered a loan from the LMIHF and was required to be repaid by the
Agency by June 30, 2015. On February 9, 2012 the City Council designated the Palm
Desert Housing Authority ("Authority") as the successor housing agency. The recently
enacted legislation related to the elimination of redevelopment agencies provides that this
loan is an enforceable obligation provided the Oversight Board approves the repayment
schedule. This loan is listed on the Recognized Obligation Payment Schedule ("ROPS") as
an obligation of the former redevelopment agency.
Background
In 2009 the Governor declared a fiscal emergency and signed legislation that required
redevelopment agencies across the State of California to shift $2.05 billion in property tax
increment revenues to SERAF for K-12 schools and community colleges during the 2009-10
and 2010-11 fiscal years. In 2009-10 the Redevelopment Agency was required to pay
$25,526,215 to SERAF for its portion of the shift.
In order for redevelopment agencies to make such large payments, there was specific
language in the legislation that allowed the agencies to suspend the 2009-10 deposit to the
LMIHF for the purpose of paying the SERAF payment. The suspension was considered a
G:\rda\Patty Leon\JMM\staff report\Staff Report-SERAF Repayment 3-22-12.doc
Staff Report
Approval of SERAF Repayment
Page 2 of 2
March 22, 2012
'loan' that was required to be repaid by June 30, 2015. Of the $25 million paid, the Agency
borrowed $17,821,288.59 from the annual deposit to the LMIHF in 2009/10.
As part of the 2011-2012 State budget, the Governor signed legislation that effectively
eliminated redevelopment agencies ("AB1X 26"). The constitutionality of that legislation
was upheld by the State Supreme Court and redevelopment agencies were eliminated as of
February 1, 2012. As part of AB1X 26, certain activities were prohibited and that prohibition
was retroactive to January 1, 2011. Because of this, the Agency did not make any
payments on the loan to the LMIHF during that time. AB1X 26 states that loans to or from
the LMIHF that had been deferred as of the effective date of the legislation requires that the
Oversight Board approve the repayment schedule (Health and Safety Code Section
34171(d)(1)(G)).
The repayment schedule below provides for repayment of that loan with four equal
payments in the amount of$4,455,322.15 to be paid over the next four years.
SERAF Repayment Schedule
Payment Due Balance
6/30/2010 17,821,288.59
6/30/2012 4,455,322.15 13,365,966.44
6/30/2013 4,455,322.15 8,910,644.29
6/30/2014 4,455,322.15 4,455,322.14
6/30/2015 4,455,322.14 0.00
17,821,288.59
In order to meet the repayment deadline of June 30, 2015, staff recommends that the
Successor Agency Board and the Oversight Board approve the above repayment schedule.
Fiscal Analysis
There is no affect to the City's General Fund due to this repayment schedule. The
payments will go to the Housing Authority to offset the costs of providing affordable housing
to restricted income households.
Submitted by: D partmen Hea
4arlet Moore, Director of Housing usti McCarthy, Assistant Ci anager
App bt. CCPSSGYei)cy
Pau S. Gib on, Dir- tor of F nce -
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M. Wohlmuth, Ex- . e Director l��l, mC
VERIFIED BY •-./_ S --
y Leon.JMMktaff report'Staf- •ort-SE- Repayment 3-22-12.doc
Original on f!? • v,Ili: C;'ry C,,r k's Office