Latest Developments With Respect To Redevelopment Successor Agencies

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Latest Developments With Respect To Redevelopment
Successor Agencies

• Department of Finance
• Local Government Unit

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Overview

• Finance Goals and Objectives
• Local Taxing Entities
• Completed Tasks
• Housing Asset Transfers
• Recognized Obligation Payment Schedules
• Due Diligence Reviews
• Upcoming Tasks and Focus
• Final and Conclusive Requests
• Finding of Completion
• Long-Range Property Management Plan
• Other Endeavors
• Questions and Answers

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Finance Goals and Objectives

• Protect Core Public Services
• Protect Bond Holders
• Expeditiously Wind Down former RDA Affairs
• Solve Problems (Get to Yes when Possible)
• Develop Positive Working Relationships
• Minimize Litigation when Possible

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Local Taxing Entities

• Dissolution Provides General Purpose Revenues to
  Affected Taxing Entities (Counties, Cities, and
  Special Districts)
• Current Estimates
• 1.6 Billion to Counties
• 1.2 Billion to Cities
• 400 Million to Special Districts
• Increases Local Flexibility with Regards to Use
  of Money

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Completed Tasks

• Housing Asset Transfers
• Recognized Obligation Payment Schedules
• Due Diligence Reviews

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Housing Asset Transfers

• Housing Asset Transfer Forms were Due to Finance
  by August 1, 2012
• Finance Received 372 Requests to Transfer Housing
  Assets to a Housing Successor Entity
• Finance Issued 372 Letters Approving and/or
  Objecting to Transfers Have been Sent Out
• 108 Requests to Meet and Confer on Finance
  Decisions
• 102 Meet and Confer Sessions Held to Date
• 6 Meet and Confer Requests Outstanding

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Recognized Obligation Payment Schedule

• Detailed Listing of Upcoming Enforceable
  Obligations of the Successor Agency
• Submitted to Finance Every Six Months (90 Days
  Prior to Property Tax Distribution)
• Finance has 45 Days to Review and Successor
  Agencies can Meet and Confer if they Disagree
  with Finances Determination
• Successor Agencies Can Only Pay those Enforceable
  Obligations Listed and Approved on the Schedules
  from the Funding Source Identified on the
  Schedule
• Approval is only Good for the Upcoming Six Month
  Period

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Recognized Obligation Payment Schedule

• Completed 3 Full Cycles (ROPS I, ROPS II, and
  ROPS III)
• 385 ROPS Forms were Submitted to Finance for the
  Current Six-Month Period (Jan June 2013)
• Approximately 85 ROPS have already been Submitted
  for the Next Six-Month Period (July Dec 2013)
• Due Date is March 1st July Dec 2013 Period
• New Naming Convention has Been Instituted
• ROPS 13-14A (July Dec 2013), 13-14B (Jan-June
  2014), 14-15A (July Dec 2014), etc

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Due Diligence Reviews

• Due Diligence Reviews Identify Unencumbered
  Balances that Should be held by Successor
  Agencies
• Two Separate Reviews were Required
• Low and Moderate Income Housing Fund (LMIHF)
• All Other Funds and Accounts

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LMIHF Due Diligence Review

• Due to Finance by October 15th
• 349 Reviews Have been Submitted to Finance
• 35 More Reviews are Anticipated
• 342 Reviews Have Been Completed by Finance
• 185 Meet and Confer Requests Received
• All Meet and Confer Requests have either Been
  Conducted or are Scheduled

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Other Funds Due Diligence Review

• Due to Finance by January 15th
• 315 Reviews Have been Submitted to Finance
• 70 More Reviews are Anticipated
• 1 Review Has Been Completed by Finance
• No Meet and Confer Requests Have Occurred
• Anticipate Having Nearly 100 Reviews Completed by
  end of February

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Upcoming Tasks and Focus

• Final and Conclusive Requests
• Finding of Completion Issuances
• Long-Range Property Management Plans

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Final and Conclusive Enforceable Obligations

• A Successor Agency can request to have an
  Enforceable Obligation be determined to be final
  and conclusive
• If Finance approves the request, the Enforceable
  Obligation would no longer be subject to DOF
  rejection during ROPS reviews
• This process removes the uncertainty involved
  with the six-month approval of ROPS items
• 11 Requests Have Been Received and 7 Have Been
  Approved with 4 Requests Awaiting Decisions

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Finding of Completion

• Finance will Issue a Finding of Completion within
  5 Days of Verification that the Successor Agency
  has Paid the Amounts Required by the July True
  Up, LMIHF Due Diligence Review, and Other Funds
  Due Diligence Review
• Benefits of Receiving a Finding of Completion
  Include
• Successor Agency Can Dispose of Property pursuant
  to an Approved Long-Range Property Management
  Plan
• Loans between the former RDA and the Sponsoring
  Entity can become enforceable
• Stranded Bond proceeds from bonds issued before
  Jan 1, 2011 can be used for the purposes in which
  they were sold
• 1 Finding of Completion Has Been Issued

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Long-Range Property Management Plan

• AB 1484 Suspended Property Disposition Until
  Finding of Completion Received (exceptions
  include Housing Assets, Pursuant to an EO, and
  Governmental Purpose)
• Successor Agencies shall prepare a Property Plan
  that Addresses the Disposition and Use of the
  Real Properties of the former RDA
• The Property Plan shall be submitted within Six
  Months Following the Issuance of a Finding of
  Completion
• To Date 3 Oversight Board Approved Property Plans
  Have Been Submitted to Finance

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Long-Range Property Management Plan

• Property Plans have to be Approved by Finance
• The Law Specifies Requirements of the Plan
• The Four Types of Disposition Include
• Retention for Governmental Purpose
• Retention by City for Future Development
• Sale of the Property
• Use of the Property to Fulfill an Enforceable
  Obligation

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Other Endeavors

• ROPS Automation Efforts
• Dedicated County Teams
• Complete Wind-Down Information
• Oversight Board Training

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Additional Information

• DOF public website (www.dof.ca.gov/redevelopment)
• FAQs
• Templates
• DOF Letters
• Contact Information
• [phone]
• Redevelopment_Administration_at_dof.ca.gov

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Questions