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HomeMy WebLinkAboutTransfer of AssetsOVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTON NO. OB- DIRECTING THE TRANSFER OF ASSETS IDENTIFIED IN THE HOUSING ASSETS LIST FROM THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY TO THE PALM DESERT HOUSING AUTHORITY SUBMITTED BY: Janet M. Moore, Director of Housing DATE: October 8, 2012 CONTENTS: Resolution No. OB- Housing Assets List (Exhibit A to the resolution) DOF Letter (Exhibit B to the resolution) Notice of Posting Recommendation That the Oversight Board adopt Resolution No. OB- directing the transfer of assets identified in the Housing Assets List from the Successor Agency to the Palm Desert Redevelopment Agency ("Successor Agency") to the Palm Desert Housing Authority ("Authority"), together with related responsibilities, powers, duties and obligations associated with the housing activities of the former Redevelopment Agency. Executive Summary When the Palm Desert Redevelopment Agency ("Agency") was dissolved, the Agency possessed housing assets which are described on the Housing Assets List, (Exhibit A to the attached resolution). In February of 2012 the Palm Desert City Council designated the Authority as the successor housing entity and transferred the housing responsibilities previously performed by the Agency to the Authority. Pursuant to AB 1484, the Authority submitted a Housing Assets List to State Department of Finance ("DOF") indicating the 'assets' to be transferred to the Authority. On August 31, 2012, the DOF notified the Authority (Exhibit B) that DOF does not object to any of the assets identified on the Housing Assets List. The attached resolution directs the transfer of assets, described in the Housing Assets List, from the Successor Agency (interim holder of the assets) to the Authority, together with related responsibilities, powers, duties and obligations associated with the housing activities of the former Redevelopment Agency. Staff Report — Oversight Board Transfer of assets identified in the Housing Assets List October 8, 2012 Page 2 of 3 Discussion Upon dissolution of the Palm Desert Redevelopment Agency on February 1, 2012 pursuant to AB X1 26, the Successor Agency to the Palm Desert Redevelopment Agency was created to wind -down the Agency's activities. As such, and pursuant to Health and Safety Code Section 34176(b), the City Council of the City of Palm Desert (the "City") adopted a resolution electing that the City not retain the responsibility for performing housing functions previously performed by the former Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the former Agency be transferred to the Palm Desert Housing Authority. Health and Safety Code Section 34177(g) directs the Successor Agency to effectuate transfer of housing functions and assets to the appropriate housing entity, in this case the Palm Desert Housing Authority. Health and Safety Code Section 34181(c) provides that the Oversight Board of the Successor Agency (the "Oversight Board") shall direct the Successor Agency to transfer housing responsibilities and all rights, powers, duties, and obligations, to the designated entity. Health and Safety Code Section 34176(a)(2) then directs the designated entity, the Authority, to submit to the State Department of Finance (the "DOF") a list of all housing assets (the "Housing Assets List"), including any assets transferred between February 1, 2012 and the date on which the Housing Assets List is created. Health and Safety Code Section 34176(e) defines "housing asset" as any asset that meets one of the following criteria: 1. Any real property, interest in, or restriction on the use of real property, whether improved or not, and any personal property provided in residences, including furniture and appliances, all housing -related files and loan documents, office supplies, software licenses, and mapping programs, that were acquired for low and moderate income housing purposes, either by purchase or through a loan, with any source of funds; 2. Any funds that are encumbered by an enforceable obligation to build or acquire low and moderate income housing as defined in the Community Redevelopment Law (the "CRL") unless required in the bond covenants to be used for repayment purposes of the bond; 3. Any loan or grant receivable, funded from the Low and Moderate Income Housing Fund (the "LMIH Fund"), from homeowners, homebuyers, nonprofit or for profit developers, and other parties that require occupancy by persons of low or moderate income as defined by the CRL; 4. Any funds derived from rents or operation of properties acquired for low and moderate income housing purposes by other parties that were financed with any source of funds, including residual receipt payments from developers, conditional grant repayments, cost savings and proceeds from refinancing, and principal and interest payments from homebuyers subject to enforceable income limits; 5. A stream of rents or other payments from housing tenants or operators of low and moderate income housing financed with any source of funds that are used to maintain, operate, and enforce the affordability of housing or for enforceable obligations associated with low and moderate income housing; or G \HOUSING\PATTY LEONUMM\STAFF REPORT\OVERSIGHT BOARD\TRANSFER OF ASSETS I0-8.2012\OSB - SR - TRANSFER OF HOUSING ASSETS 10-08-12 DOC Staff Report — Oversight Board Transfer of assets identified in the Housing Assets List October 8, 2012 Page 3 of 3 6. Repayments of loans from the LMIH Fund (e.g., a loan used to make a SERAF payment) or LMIH Fund deposits which had been deferred as of the effective date of AB X1 26. At the time of the dissolution, the Agency possessed housing assets which are described on the Housing Assets List, included as Exhibit A to the attached resolution. They included the rental properties operated by the Authority, the rent stream from the Authority properties, the covenants and assistance loans on for -sale developments, the home improvement program loans, the properties acquired in Desert Rose and Falcon Crest, the loans to developers for affordable housing and the SERAF advance to the Agency, etc. The Authority submitted the Housing Assets List to DOF on July 31, 2012. DOF had 30 days from receipt of the Housing Assets List to object to any of the assets or transfers of assets identified on the Housing Assets List. On August 31, 2012, DOF notified the Housing Authority (Exhibit B) that DOF does not object to any of the assets identified on the Housing Assets List. The attached resolution directs the transfer from the Successor Agency to the Housing Authority of the assets described on the Housing Assets List, together with related responsibilities, powers, duties and obligations associated with the housing activities of the former Redevelopment Agency. Pursuant to Health and Safety Code Sections 34179(f) and 34181(f), notice of this action was posted on the Successor Agency's website on September 26, 2012. Fiscal Analysis There is no fiscal impact for the actual transfer. Operational costs for the Housing Authority to take over the housing responsibilities are identified on the Recognized Obligation Payment Schedule through June 2013, however, coverage for future operational costs will be submitted with each future payment schedule for review by the DOF. Submitted by: Janet M. Moore, Director of Housing JMM:pl M. Wohlmuth, Executive Director Fin e Department: aul Gi s n, Director of Finance G \HOUSING\PATTY LEONVMM\STAFF REPORT\OVERSIGHT BOARD%TRANSFER OF ASSETS I S.2u 12`.OSB - SR - TRANSFER OF HOUSING ASSETS 10-08-I2 DOC RESOLUTION NO.OB- A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DIRECTING THE TRANSFER OF HOUSING FUNCTIONS AND ASSETS RECITALS: A. Pursuant to Health and Safety Code Section 34175(b) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al. (53 Cal.4th 231(2011)), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the Palm Desert Redevelopment Agency (the "Agency") transferred to the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") by operation of law. B. Pursuant to Health and Safety Code Section 34176(b), the City Council of the City of Palm Desert (the "City") adopted Resolution No. 2012-07 electing for the City not to retain the responsibility for performing housing functions previously performed by the Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the Agency be transferred to the Palm Desert Housing Authority (the "Housing Authority"). C. Health and Safety Code Section 34177(g) directs the Successor Agency to effectuate transfer of housing functions and assets to the appropriate entity designated pursuant to Health and Safety Code Section 34176, being the Housing Authority, and Health and Safety Code Section 34181(c) provides that the oversight board of the Successor Agency (the "Oversight Board") shall direct the Successor Agency to transfer housing assets to the appropriate entity pursuant to Health and Safety Code Section 34176, being the Housing Authority. D. Pursuant to Health and Safety Code Section 34176(a)(2), the Housing Authority submitted to the State Department of Finance (the "DOF") a list of all housing assets, including any assets transferred after February 1, 2012 (the "Housing Assets List") (Exhibit A). E. Health and Safety Code Section 34176(a)(2) provides 30 days from DOF's receipt of the Housing Assets List for DOF to object to any of the assets or transfers of assets identified on the Housing Assets List. F. On August 31, 2012, DOF notified the Housing Authority (Exhibit B) that DOF does not object to any of the assets identified on the Housing Assets List. G. The Oversight Board desires to direct the transfer of all assets identified on the Housing Assets List. H. Pursuant to Health and Safety Code Sections 34179(f) and 34181(f), notice of this action was posted on the Successor Agency's website on September 26, 2012. 12812-0001\1493791 v 1.doc RESOLUTION NO. OB- NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to Health and Safety Code Sections 34177(g) and 34181(c). Section 3. The Successor Agency is hereby transfer to the Housing Authority the assets described attached hereto as Exhibit A. The Successor Agency is directed to transfer to the Housing Authority all rights, p, associated with the housing activities of the former Ac assets transferred pursuant to this Section 3. authorized and directed to on the Housing Assets List hereby further authorized and )wers, duties, and obligations lency related to the housing Section 4. The staff of the Successor Agency is hereby directed to provide DOE written notice and information regarding the action taken by the Oversight Board in Section 3 of this Resolution. Such notice and information shall be provided by electronic means and in a manner of DOF's choosing. Section 5. The staff and the Board of the Successor Agency are hereby authorized and directed, jointly and severally, to execute and record such documents and instruments and to do any and all other things which they may deem necessary or advisable to effectuate this Resolution. PASSED AND ADOPTED this 8th day of October, 2012. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G ViOUSING\Patty Leon\JMM\staff report\OVERSIGHT BOARD\Transfer of Assets 10-8-2012\OB resolution directing transfer of housing assets (2).doc RESOLUTION NO.OB- EXHIBIT A Housing Assets List G ViOUSING\Patty Leon\MM\staff report\OVERSIGHT BOARD\Transfer of Assets 10-8-2012\OB resolution directing transfer of housing assets (2) doc a 0, 2 C- C C / CD o @m \m �® -n gJ • :3 �J (§ k �[ I ®[ O ik k ! )> . CD2 . 2 >O. 0 i 7 7 aCD 7CD O @ ®° ]k ,( > Q. 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'n ¢E 'n 'n CE 'n —E E mr N n ' - ' nn n ' n - a �T , 0 e 09 8 N N N N C in in in in in in to in in to in in C d C •a• 01 V O O W w b O b O b O b O b O b O 0 O V a W a 0 m J G 8 O O O S O c O 8 O O O O O O O O O O O O. X m O I- C O z z O O W 1 3 p m ii nos m O J m 9 3 ,o' m o ..° s3 3Ei9 s Ny Q m g y mg (� ECG N end a 5 o S j � m 0 m A 3 p F f ii S S 4 : ° 3 a g' 1 9_ j 2 Ut s 3 3 m g S ? qJnhii N 7 m K 7 3_gRpm 3d' 3 J O D C n Q. s o d 5.3 00 O � g,O m e ma c o 3 e m N � e m c m m I. m 0 m O I- C --I O z z O O 1p — — .D ID V m 3 A A 3 A a A 3 A a J a A 3 J a A 3 A 33 A 3 3 1 Qm V A gi A a A gg A Sg A S� A Sg A Sg A g A °a A g gyS�a A A P 33D Sr 8 8b S GSr 8 S 222••• 8r� Sq S yS S a 3D• 6r S. r� 6 3 S D A D b D b D u D i6 b D @ u I D V x D L sm 3 gg D 9 m 3 D O oe 3 D v 3 ggg D V m 3 D sm a 3 D v s0 i 3 D V sm 7 3 D v 3 .40 D soe a 3 D v m m $� 3 `Qy$ I 3 I 3 I I I I Ill v 3 v 33 v 3 v 3 v 3g v 3 v 3 v 3 v 3 v 3 v 3 v 3 0_ j fi fi fi fi fi fi fi L fi fi fi fi III$3�II! III 11! 111p U d� a $'11111111111114! 3F 35$.$3�$ a 3 a 3� $.0 3 v gnu s gW0 g 4 goo o gnu goo g 0 Paz g ' a:0 a�5a�E o A A A A A A A A A A A A OO J ff O �m iiiiiiiIiiii 0 N w D O Q� Da �_�g•40 A m ^ `` VJ O I- C O z z O O W x m 0 I- C 0 z Z 0 0 oo m 0 / $ U _0 20 w ii �■ §§&E $ &2 b0 0\ <E a� | � E# ;. /U 2'D 2 a ! Ei m m « 0 I- C a 0 z z p 0 co RESOLUTION NO.OB- Exhibit B Notification by DOF on the Housing Assets List G: HOUSING\Patty Leon\IMM\staff report\OVERSIGHT BOARD\Transfer of Assets 10-8-2012\OB resolution directing transfer of housing assets (2) doe RESOLUTION NO. OB-_ ANT D�� ,'ti EXHIBIT B J. III o DEPARTMENT OF EDMUND G. BROWN JR. • GOVERNOR Fa*M'r F I N A N C E 91 5 L aTRECT ■ BADRAMCNTD CA ■ 95B 14-3706 ■ WWW.DCF.DA.ODV August 31, 2012 Ms. Janet Moore, Director of Housing Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Moore: Subject: Housing Assets Transfer Form Pursuant to Health and Safety Code (HSC) section 34176 (a) (2), the Palm Desert Housing Authority submitted a Housing Assets Transfer Form (Form) to the California Department of Finance (Finance) on July 31, 2012 for the period February 1, 2012 through July 23, 2012. Finance has completed its review of your Form, which may have included obtaining clarification for various items. Based on a sample of line items reviewed and the application of law, Finance is not objecting to any assets or transfers of assets identified on your Form. Please direct inquiries to Beliz Chappuie, Supervisor or Mindy Patterson, Lead Analyst at (916) 445-1546. SinceV, STEVE SZALAY Local Government Consultant cc: Ms. Veronica Tapia, Accountant II, Palm Desert Housing Authority Ms. Pam Elias, Chief Accounting Property Tax Division, Riverside County Auditor -Controller Ms. April Nash, Supervising Accountant, Riverside County Auditor -Controller Ms. Jennifer Baechel, Business Process Analyst II, Riverside County Auditor -Controller CaliforniaState Auditor Controller's PUBLIC NOTICE PROPOSED TRANSFER OF HOUSING ASSETS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176 NOTICE IS HEREBY GIVEN that on October 8, 2012, at 1:30 p.m., or as soon thereafter as possible, at 73-510 Fred Waring Drive, the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency will hold a public meeting to consider the resolution attached hereto. The proposed resolution directs the Successor Agency to the Palm Desert Redevelopment Agency to transfer housing functions and assets pursuant to California Health and Safety Code Section 34176. All interested persons are invited to appear at the time and place specified above to give testimony regarding the proposed resolution. Further information may be obtained by contacting Janet Moore, Director of Housing at 73-510 Fred Waring Drive, Palm Desert, or by telephone at (760) 346-0611, or by email atjmoore@cityofpalmdesert.org. Posted this 26th day of September, 2012 on the Successor Agency to the Palm Desert Redevelopment Agency's web -site G \HOUSING\Patty LeonVMM\staff repon'AVERSIGHT BOARO''.Transfer of Assets 10.8.20I2V'oblic notice of proposed transfer doc 12812-0001 \1493796v I.doc