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CITY OF HAWAIIAN GARDENS AGENDA
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS
CHAIRMEMBER VICE CHAIRMEMBER BOARDMEMBER
. BOARDMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER
BARRY BRUCE GEORGE FRANZEN GORDON STEFENHAGAN JOSEPH COLOMBO ALI DELAWALLA TOAN NGUYEN JOHN MARTINS
REGULAR MEETING WEDNESDAY, JANUARY 24, 2018 AT 3:00 PM
AGENDA
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS
REGULAR MEETING
WEDNESDAY, JANUARY 24, 2018 AT 3:00 P.M.
Meeting Location: City Council Chambers, 21815 Pioneer Boulevard, Hawaiian Gardens, California.
ADA Information: The City of Hawaiian Gardens complies with the provisions of the Americans with Disabilities Act (ADA). Anyone needing special assistance please contact the City Clerk's Department at (562) 420-2641, at least one (1) business day prior to the meeting so that we may accommodate you.
Bilingual Information: Anyone needing a Spanish bilingual translator for ORAL COMMUNICATION ONLY, please contact the City Clerk's Department at (562) 420-2641, at least one (1) business day prior to the meeting so that we may accommodate you.
PLEASE TURN OFF CELL PHONES DURING THE MEETING.
CALL TO ORDER FLAG SALUTE ROLL CALL
CHAIRMEMBER VICE CHAIRMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER
REORGANIZATION OF THE BOARD.
ORAL COMMUNICATIONS
BARRY BRUCE GEORGE FRANZEN GORDONSTEFENHAGAN JOSEPH COLOMBO ALI DELAWALLA TOAN NGUYEN JOHN MARTINS
This is the time reserved for members of the public wishing to address the board on any matter not otherwise on the agenda and within the jurisdiction of the Oversight Board. Speakers shall address all comments to the Chairmember and the Board as a body and not to any particular Board Member or member of the staff. Speakers shall be limited to three (3) minutes per speaker.
OVERSIGHT BOARD AGENDA REGULAR MEETING JANUARY 24, 2018 PAGE 1 OF 2
A. PUBLIC HEARINGS - NONE
B. CONSENT CALENDAR-Items listed on the Consent Calendar are considered routine and will be enacted by one motion and one vote, There will be no separate discussion of these items. If discussion is desired, that item may be removed from the Consent Calendar and will be considered separately.
1. ADOPT RESOLUTION NO. OB-2018-001: APROVE THE RECOGNIZED OBLIGATION PAYMENT (ROPS) SCHEDULE 18-19 FOR THE PERIOD OF JULY 2018 THROUGH JUNE 2019.
BOARD ACTION: Adopt Resolution No. OB- 2018-001.
2. PRESENTATION OF MINUTES:
JANUARY 25, 2017 MAY 31, 2017
REGULAR MEETING; AND SPECIAL MEETING.
BOARD ACTION: Approve the minutes as presented.
C. ADJOURNMENT
Adjourn to the next Regular Meeting to be held on Wednesday, February 28, 2017 at 3:00 p.m.
OVERSIGHT BOARD AGENDA REGULAR MEETING JANUARY 24, 2018 PAGE 2 OF 2
DATE:
TO:
OVERSIGHT BOARD FOR SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN
GARDENS STAFF REPORT
January 24, 2018
Honorable Chairperson and Members of the Board
THROUGH: Ernie Hernandez, Executive Director
FROM: Linda Hollinsworth, Finance Director
Agenda Item No.: _B-_1 __
Executive Dir.: if K",......,
SUBJECT: APPROVE RESOLUTION OB-2018-001, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE HAWAIIAN GARDENS REDEVELOPMENT AGENCY APPROVING THE· RECOGNIZED OBLIGATION PAYMENT SCHEDULE 18-19 FOR THE PERIOD OF JULY 2018 THROUGH JUNE 2019
BACKGROUND ABX1 26, the 2011 Redevelopment Dissolution Legislation, requires the Successor Agency of the RDA to adopt and update Recognized Obligation Payment Schedules (ROPS). In June 2012, the State Legislature adopted AB 1484 as part of the State budget, which amended the Redevelopment Dissolution legislation in various respects, including the requirement to submit ROPS approved by the oversight board at least 90 days before the date of the County makes property tax distributions. Prior to submitting the ROPS to the oversight board (OB) it is to be reviewed and approved by the Successor Agency (SA). Once approved the ROPS is sent to the DOF, along with the approved OB resolution. Copies are also sent to the CAC and SCO and it is to be posted on the City website.
Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), commencing with the ROPS covering the period from July 1, 2016 through June 30, 2017 and thereafter, agencies shall submit an OB approved annual ROPS to the Department of Finance (DOF), County Auditor-Controller (CAC) and State Controller's Office (SCO) by February 1, 2016 and each February 1 thereafter. DOF will make its determination by April 15, 2016 and each April 15 thereafter.
SUMMARY
The ROPS being submitted as ROPS 18-19 covers anticipated enforceable obligations, for the periods of July 2018 through June 2019. The SA will review and approve the attached ROPS on resolution 2018-002 at their meeting on January 23, 2018.
Recognized Obligations Payment Schedule 18-19 Page2
984487.l
While some of the costs can be noted with an exact amount, such as the bond interest and/or principal payments, some must be estimated. The ROPS form has a section titled Funding Source. These columns provide information on what funding is requested to meet the enforceable obligations that are listed. There are funds that are received via property tax collections and these are labeled RPTTF (Redevelopment Property Tax Trust Fund). Under this heading there are Admin and Non-Admin columns. The NonAdmin column indicates that these are enforceable obligations that may be paid using the RPTTF revenues. Any costs listed under Admin also may be paid using the RPTTF revenues but they may not exceed the annual allowable amount for Admin related expenses.
The other section of the Funding Source is for money other than the RPTTF. This would include revenues that may be received from other sources such as interest. Cities must use any other available fund prior to requesting the use of the RPTTF revenues. If actual costs incurred in previous ROPS periods are less than what had been estimated when the ROPS was submitted, there may be some remaining funds that will appear in the "Other" column.
While the City is not responsible for the expenses incurred during the management of the Successor Agency activities, if those costs are not properly identified on the ROPS and approved by the DOF, the bills are paid using General Fund money until the appropriate approvals are obtained on subsequent ROP submissions.
When the ROPS 18-19 is approved by the by the Oversight Board the ROPS will then be submitted to the DOF, the CAC and SCO. It will also be posted on the City website.
FISCAL IMPACT
Adoption of the resolution will allow the distribution of the available RPTTF to the Successor Agency to pay the obligations listed on the ROPS using these funds. If the ROPS is not approved, costs would require payment using General Fund monies.
RECOMMENDATION
Approve Resolution 08-2018-001 adopting the 18-19 Recognized Obligation Payment Schedule covering the period of July 2018 through June 2019.
ATTACHMENTS
Resolution 08-2018-001 ROPS 18-19
Successor Agency:
County:
----- --- ------- --- -----
Recognized Obligation Payment Schedule (ROPS 18-19) - Summary Filed for the July 1, 2018 through June 30, 2019 Period
Hawaiian Gardens
Los Angeles
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 18-19A Total
(July - December)
A Enforceable Obligations Funded as Follows (B+C+D): $ - $
B Bond Proceeds
C Reserve Balance
D Other Funds
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G):
F RPTTF
G Administrative RPTTF
H Current Period Enforceable Obligations (A+E):
Certification of Oversight Board Chairman: Pursuant to Section 34177 ( o) of the Health and Safety code, I hereby certrry that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Isl
$ 2;785,561 $
2,660,561
125,000 -
$ 2,785,561 $
Name Title
----------------------Signature Date
18-19B Total (January- June)
- $
1,835,753 $
1,710,753 -_
125,000
- 1,835,753 $
ROPS 18-19 Total
4,621,314
4,371,314
- 250,000
4,621;314
Hawaiian Gardens Recognized Obligation Payment Schedule (ROPS 18-19)- Report of Cash Balances July 1, 2015 through June 30, 2016 (Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or
when payment from propertytax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet
A B
Cash Balance Information for ROPS 15-16 Actuals (07/01 /15 • 06/30/16)
1 Beginning Available Cash Balance (Actual 07/01/15)
2 Revenue/Income (Actual 06/30/16) RPTTF amounts should tie to the ROPS 15--16 total distribution from the County Auditor-Controller during June 2015 and January 2016.
3 Expenditures for ROPS 15-16 Enforceable Obligations {Actual 06/30/16}
4 Retention of Available Cash Balance (Actual 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s}
5 ROPS 15--16 RPTTF Balances Remaining
6 Ending Actual Available Cash Balance (06/30/16) C to G : (1 + 2 .• 3 • 4), H "' (1+ 2 - 3 - 4 + 5) .
C D
Bond Proceeds
Bonds issued on Bonds issued on or before or after 12/31/10 01/01/11
- $.
E F G H
Fund Sources
Reserve Balance Other RPTTF PriorROPS
period balances PriorROPS and RPTTF
DDRRPTTF distributed as Rent, Non-Admin balances reserve for future grants, and retained period(s} interest, etc. Admin Comments
2,109,269 11,657 4,238
5,044 1,455,458
2,109,269 2,776 1,444,876
14,820
14,820
13,925 $ 14;82ff
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OVERSIGHT BOARD RESOLUTION NO. OB-2017-01
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE HAWAIIAN GARDENS REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE 18-19 FOR THE PERIOD OF JULY 2018 THROUGH JUNE 2019
WHEREAS, the Oversight· Board of the Successor Agency to the Hawaiian Gardens Redevelopment Agency has been established to direct the Successor Agency to take certain actions to wind down the affairs of the Redevelopment Agency in accordance with the California Health and Safety Code as amended by AB X1 26 (the "Dissolution Act"); and;
WHEREAS, as part of this wind up process, all successor agencies are required to file a schedule of those "enforceable obligations" that require payments to be made throughout the dissolution process ("Recognized Obligati·on Payment Schedule"); and
WHEREAS, Part 1.85 of the Dissolution Act further requires the Recognized Obligation Payment Schedule to cover successive six-month fiscal year periods; and
WHEREAS, AB 1484, Chapter 26 of the 2012 California Statutes amended Part 1.85 of the Dissolution Act to require the submittal to the California Department of Finance at least 90 days before the date of the County makes property tax distributions; and
WHEREAS, pursuant to Health and Safety Code section 34177 (o) (1), commencing with the ROPS covering the period July 1, 2016 to June 30, 2017 and thereafter, agencies shall submit an Oversight Board approved annual Recognized Obligation Payment Schedule; and
WHEREAS, the Oversight Board reviewed the 18-19 Recognized Obligation Payment Schedules covering the periods of July 2018 through June 2019 which was adopted by the Successor Agency on January 23, 2018;
NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of the Successor Agency to the Hawaiian Gardens Redevelopment Agency, as follows:
1. The Recitals set forth above are true and correct and incorporated herein by reference.
2. The Schedules attached hereto as Exhibit A as the Recognized Obligation Payment Schedule 17-18 for the period of July 2018 through June 2019 are hereby approved.
3. This Resolution shall be effective immediately upon adoption.
4. The Secretary of the Oversight Board shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 24th day of January, 2018
CHAIRMEMBER
ATTEST:
SUZANNE UNDERWOOD, OVERSIGHT BOARD SECRETARY 1
MINUTES
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS
REGULAR MEETING
WEDNESDAY, JANUARY 25, 2017 AT 3:00 P.M,
CALL TO ORDER
The Regular meeting of the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of Hawaiian Gardens was called to order by Chairmember Barry Bruce Wednesday, January 25, 2017, at 3:10 p.m. in the City Council Chambers, 21815 Pioneer Boulevard, Hawaiian Gardens, California.
FLAG SALUTE
The Flag Salute was led by Sue Undeiwood, Oversight Board Secretary.
ROLL CALL CHAIRMEMBER VICE CHAIRMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER BOARDMEMBER
BARRY BRUCE GEORGE FRANZEN GORDON STEFENHAGAN JOSEPH COLOMBO ALI DELAWALLA (EXCUSED) JOHN MARTINS TOAN NGUYEN (EXCUSED)
Sue Undeiwood, Oversight Board Secretary, announced a quorum.
ORAL COMMUNICATIONS
No one wished to speak at this time.
A. PUBLIC HEARINGS
1. CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION NO. 08-2017-001, TO APPROVE THE SALE OF CERTAIN REAL PROPERTIES OWNED BY THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS.
RESOLUTION NO. OB- 2017-001 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY RDA OF THE CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING THE SALE OF CERTAIN REAL PROPERTIES OWNED BY THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS.
BOARD ACTION: Waive further reading and adopt Resolution No. 082017-001
It was moved by Chairmember Bruce, seconded by Boardmember Colombo and approved by voice vote to continue this item to a Special meeting to be held on March 1, 2017 at 3:00 p.m.
Motion carried 5-0. Boardmember Nguyen and Boardmember Delawalla were absent.
B. CONSENT CALENDAR-Items listed on the Consent Calendar are considered routine and will be enacted by one motion and one vote, There will be no separate discussion of these items. If discussion is desired, that item may be removed from the Consent Calendar and will be considered separately.
OVERSIGHT BOARD MINUTES REGULAR MEETING JANUARY 25, 2017 PAGE 1 OF 2
1. ADOPT RESOLUTION NO. OB-2017-002, TO APPROVE THE RECOGNIZED OBLIGATION PAYMENT (ROPS) SCHEDULE 17-18 FOR THE PERIOD OF JULY 2017 THROUGH JUNE 2018.
RESOLUTION NO. OB 2017-002 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS, ADOPTING THE 17-18 RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JULY 2017 THROUGH JUNE 2018.
BOARD ACTION: Waive further reading and adopt Resolution No. OB 2017-002.
2. PRESENTATION OF MINUTES:
DECEMBER 14, 2016 SPECIAL MEETING.
BOARD ACTION: Approve the minutes as presented.
It was moved by Boardmember Stefenhagen, seconded by Boardmember Colombo, and approved by voice vote to adopt the Consent Calendar in its entirety, as presented.
Motion carried 5-0. Boardmember Nguyen and Boardmember Delawalla were absent.
C. ADJOURNMENT
Chairmember Bruce adjourned the meeting at 3:17p.m. to the next Special Meeting to be held on Wednesday, March 1, 2017 at 3:00 p.m.
Attest:
Suzanne Underwood Oversight Board Secretary
OVERSIGHT BOARD MINUTES REGULAR MEETING JANUARY 25, 2017
Respectfully submitted:
Suzanne Underwood Oversight Board Secretary
APPROVED:
BARRY BRUCE CHAIRMEMBER
PAGE2 OF 2
MINUTES
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TOTHEREDEVELOPMENTAGENCY OF THE CITY OF HAWAIIAN GARDENS
WEDNESDAY, MAY 31, 2017 AT 3:00 P.M.
CALL TO ORDER
B-2 Cont.
The Special meeting of the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of Hawaiian Gardens was called to order by Chairmember Barry Bruce Wednesday, May 31, 2017, at 3: 10 p. m. in the City Council Chambers, 21815 Pioneer Boulevard, Hawaiian Gardens, California.
FLAG SALUTE
The Flag Salute was led by Sue Underwood, Oversight Board Secretary.
ROLL CALL PRESENT
ABSENT
CHAIRMEMBER VICE CHAIRMEMBER BOARDMEMBER BOARDMEMBER
BOARDMEMBER BOARDMEMBER BOARDMEMBER
BARRY BRUCE GEORGE FRANZEN GORDON STEFENHAGAN JOSEPH COLOMBO
ALI DELAWALLA (EXCUSED) JOHN MARTINS (ESXCUSED) TOAN NGUYEN (EXCUSED)
Sue Underwood, Oversight Board Secretary, announced a quorum.
ORAL COMMUNICATIONS
No one wished to speak at this time.
A. PUBLIC HEARING
1. CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION NO. OB-2017-001, TO APPROVE THE SALE OF CERTAIN REAL PROPERTIES OWNED BY THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS. (This Agenda Item was continued from the January 25, 2017 meeting).
OVERSIGHT BOARD MINUTES SPECIAL MEETING MAY 31, 2017 PAGE 1 OF 3
RESOLUTION NO. OB- 2017-001 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY RDA OF THE CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING THE SALE OF CERTAIN REAL PROPERTIES OWNED BY THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HAWAIIAN GARDENS. BOARD ACTION: Waive further reading and adopt Resolution No. OB2017-001.
Ernie Hernandez, City Manager, presented the staff report, and stated that the $uccessor Agency was recommending that the first parcel which was 22402, and a portion of 22404 Clarkdale Avenue to be sold to Victor Flores for $150,000. He continued that the next parcel, which was a portion of 22404, 22406, and 22408 Clarkdale Avenue to be sold for $163,000 to Victor and Clement Flores, and that the last parcel for sale 22407, 22409, 22011, and 22413 Clarkdale Avenue to be sold to Urban Pacific Multi-Housing LLC for $200,000. Each section was sold for single family homes.
It was moved by Chairmember Bruce, seconded by Director Colombo, and approved by voice vote to open the Public Hearing.
Motion carried 4-0-3. Directors Nguyen and Martins, and Vice Chairmember Franzen were absent.
No one wished to speak on this item.
It was moved by Chairmember Bruce, seconded by Director Colombo, and approved by voice vote to close the Public Hearing.
Motion carried 4-0-3. Directors Nguyen and Martins, and Vice Chairmember Franzen were absent.
It was moved by Director Colombo, seconded by Chairmember Bruce, and approved by voice vote to adopt Resolution OB-2017-001.
Motion carried 4-0-3. Directors Nguyen and Martins, and Vice Chairmember Franzen were absent.
OVERSIGHT BOARD MINUTES SPECIAL MEETING MAY 31, 2017 PAGE20F3
B. ADJOURNMENT
Chairmember Bruce adjourned the meeting at 3:13 p.m. to the next Regular Meeting date to be determined.
Attest:
Suzanne Underwood Oversight Board Secretary
OVERSIGHT BOARD MINUTES SPECIAL MEETING MAY31,2017
Respectfully submitted:
Suzanne Underwood Oversight Board Secretary
APPROVED:
BARRY BRUCE CHAIRMEMBER
· PAGE 30F 3
DATE:
TO:
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY OF CITY OF HAWAIIAN GARDENS
STAFF REPORT
January 24, 2018
Chairman and Members of the Board
THROUGH: Ernie Hernandez, Executive Director
FROM: Christopher Cardinale, Deputy City Attorney Linda Hollinsworth, Finance Director
Agenda Item No.: __ _
City Manager: /4-i~
SUBJECT: APPROVE RESOLUTION OB-2018-002 A RESOLUTION OF THE PUBLIC HOUSING AUTHORITY OF THE CITY OF HAWAIIAN GARDENS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY RDA AND THE HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY FOR HOUSING ENTITY ADMIN COSTS FOR 2014 THROUGH 2017
SUMMARY Following the Former Agency's dissolution on February 1, 2012, the affordable housing assets and functions of the Former Agency were transferred to the Authority as the "housing successor" of the Former Agency, and the Authority is required to administer and oversee said affordable housing assets and functions of the Former Agency in compliance with the affordable housing provisions of the Community Redevelopment Law.
The Dissolution Law provides that, between July 1, 2014, to July 1, 2018, the Authority, as "housing successor" to the Former Agency, is to be allocated a "housing entity administrative cost allowance" in an amount equal to the greater of one percent (1 %) of the property tax allocated to the Redevelopment Obligation Retirement Fund on behalf of the Successor Agency, or One Hundred and Fifty Thousand Dollars ($150,000) per fiscal year.
The Dissolution Law further directs the housing entity administrative cost allowance to be listed by the Successor Agency on its Recognized Obligation Payment Schedule ("ROPS"), and following approval of the ROPS by the Hawaiian Gardens Oversight Board and the California Department of Finance ("Finance"), that the housing entity administrative cost allowance shall be remitted by the Successor Agency to the Authority on each January 2 and July 1.
After reviewing of the funds and accounts for the Successor Agency and Authority, staff has discovered that the Successor Agency has failed, continually since July 1, 2014, to request payment of the housing entity administrative cost allowance to the Authority, as required by law, such that the Authority has not received vital funding to which it is entitled and necessary to carrying out its function and purpose in the community.
984487.1
Page2
To correct this error and provide the legally required administrative funding to the Authority, the parties desire to enter into this agreement whereby the Successor Agency will acknowledges the unpaid housing entity administrative cost allowance owed to the Authority, and if approved by the Oversight Board and Finance on the Successor Agency's ROPS, the Successor Agency will remit said funds to the Authority in the cumulatively amount of SIX HUNDRED THOUSAND DOLLARS ($600,000).
This agreement has been approved by the Successor Agency and the Public Housing Authority at a meeting held on January 23, 2018.
FISCAL IMPACT Adoption of the resolution will allow the distribution of the Housing Entity Admin funds to the Public Housing Authority to use these to pay for qualifying administrative costs. If these funds are not received, support for the administrative costs would require payment using General Fund monies.
RECOMMENDATION Approve Resolution OB-2018-002 authorizing a reimbursement agreement between the Successor Agency and the Public Housing Authority for Housing Entity Admin Costs for 2014-2017.
ATTACHMENTS Resolution OB-2018-002 Reimbursement Agreement
OVERSIGHT BOARD RESOLUTION OB -2018-002
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE HAWAIIAN GARDENS REDEVELOPMENT AGENCY APPROVING REIMBURSEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY OF THE HAWAIIAN GARDENS REDEVELOPMENT AGENCY AND THE PUBLIC HOUSING AUTHORITY FOR THE CITY OF HAWAIIAN GARDENS
WHEREAS, the Hawaiian Gardens Successor Agency ("Successor Agency") is the duly created "successor agency" of the Former Hawaiian Gardens Redevelopment Agency ("Former Agency"), existing and operating pursuant to the redevelopment Dissolution Law (H&S Code 34170 et seq.);
WHEREAS, the Public Housing Authority for the City of Hawaiian Gardens ("Authority") is a Section 8 Public Housing Agency that serves the residents and community of the City of Hawaiian Gardens ("City"), and is a separate and independent legal entity from the Successor Agency and the City;
WHEREAS, following the Former Agency's dissolution on February 1, 2012, the affordable housing assets and functions of the Former Agency were transferred to the Authority as "housing successor," and the Authority is required to administer and oversee said affordable housing assets and functions of the Former Agency in compliance with the affordable housing provisions of the Community Redevelopment Law;
WHEREAS, the Dissolution Law provides that, between July 1, 2014, to July 1, 2018, the Authority, as "housing successor" to the Former Agency, is to be allocated a "housing entity administrative cost allowance" in an amount equal to the greater of: one percent (1%) of the property tax allocated to the Redevelopment Obligation Retirement Fund on behalf of the Successor Agency; or One Hundred and Fifty Thousand Dollars ($150,000) per fiscal year;
WHEREAS, the Dissolution Law further directs the housing entity administrative cost allowance to be listed by the Successor Agency on its Recognized Obligation Payment Schedule ("ROPS"), and following approval of the ROPS by the Hawaiian Gardens Oversight Board ("Oversight Board") and the California Department of Finance ("Finance"), the housing entity administrative cost allowance must be remitted by the Successor Agency to the Authority on each January 2 and July 1;
WHEREAS, after reviewing of the funds and accounts for the Successor Agency and Authority, Authority staff discovered that the Successor Agency has failed, continually from July 1, 2014, to the date hereof, to request payment of the housing entity administrative cost allowance on its ROPS, as required by law, such that the Authority has not received vital funding to which it is entitled and is necessary for carrying out its function and purpose in the community;
WHEREAS, to correct this error and comply with the Successor Agency's legal mandates, the Successor Agency and Authority desire to enter into an agreement whereby the Successor Agency will acknowledge the unpaid housing entity administrative cost allowance owed to the Authority, and if approved by the Oversight Board and Finance on the Successor Agency's ROPS, the Successor Agency will remit said funds to the Authority in the amount of Six Hundred Thousand Dollars ($600,000); and
WHEREAS, the Successor Agency and Authority each acknowledge and agree that the agreement approved hereby constitutes an "enforceable obligation" under this Dissolution Law, as a payment required by state law, a legally binding and enforceable contract that is not void as against public policy, and a contract or agreement necessary for the administration and operation of the Successor Agency.
NOW THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE HAWAIIAN GARDENS REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and incorporated herein by this reference
SECTION 2. The Reimbursement Agreement attached hereto as Exhibit A is approved, and the Executive Director is authorized and directed to execute the Agreement on the Authority's behalf, and to take such other reasonably necessary actions required to obtain approval of the Agreement from Finance.
SECTION 3. The Secretary shall certify to the adoption of this Resolution, and it shall become effective immediately.
PASSED, ADOPTED, AND APPROVED THIS 24RD DAY OF JANUARY, 2018
CHAIRMEMBER
ATTEST:
SUZANNE UNDERWOOD, OVERSIGHT BOARD SECRETARY
Exhibit A
REIMBURSEMENT AGREEMENT
THIS REIMBURSEMENT AGREEMENT (the "Agreement") is entered into this __ day of January 2018, by and between the HAWAIIAN GARDENS SUCCESSOR AGENCY (the "Successor Agency") and the HAWAIIAN GARDENS HOUSING AUTHORITY (the "Authority"), with reference to the following facts:
A. The Successor Agency is the duly created "successor agency" of the Former Hawaiian Gardens' Redevelopment Agency ("Former Agency"), existing and operating pursuant to the redevelopment Dissolution Law (H&S Code 34170 et seq.)
B. The Authority is a Section 8 Public Housing Agency that serves the residents and community of the City of Hawaiian Gardens, and is a separate and independent legal entity from the Successor Agency and the City of Hawaiian Gardens ("City").
C. Following the Former Agency's dissolution on February 1, 2012, the affordable housing assets and functions of the Former Agency were transferred to the Authority as the "housing successor" of the Former Agency, and the Authority is required to administer and oversee said affordable housing assets and functions of the Former Agency in compliance with the affordable housing provisions of the Community Redevelopment Law.
D. The Dissolution Law provides that, between July 1, 2014, to July 1, 2018, the Authority, as "housing successor" to the Former Agency, is to be allocated a "housing entity administrative cost allowance" in an amount equal to the greater of one percent (1 %) of the property tax allocated to the Redevelopment Obligation Retirement Fund on behalf of the Successor Agency, or One Hundred and Fifty Thousand Dollars ($150,000) per fiscal year.
E. The Dissolution Law further directs the housing entity administrative cost allowance to be listed by the Successor Agency on its Recognized Obligation Payment Schedule ("ROPS"), and following approval of the ROPS by the Hawaiian Gardens Oversight Board and the California Department of Finance ("Finance"), that the housing entity administrative cost allowance shall be remitted by the Successor Agency to the Authority on each January 2 and July 1.
F. After reviewing of the funds and accounts for the Successor Agency and Authority, staff has discovered that the Successor Agency has failed, continually since July 1, 2014, to request payment of the housing entity administrative cost allowance to the Authority, as required by law, such that the Authority has not received vital funding to which it is entitled and necessary to carrying out its function and purpose in the community.
G. To correct this error and provide the legally required administrative funding to the Authority, the parties desire to enter into this agreement whereby the Successor Agency will acknowledge the unpaid housing entity administrative cost allowance owed to the Authority, and if approved by the Oversight Board and Finance
Exhibit A
on the Successor Agency's ROPS, the Successor Agency will remit said funds to the Authority in the cumulatively amount of SIX HUNDRED THOUSAND DOLLORS ($600,000).
H. The parties to this agreement acknowledge and agree that it constitutes an "enforceable obligation" under this Dissolution Law, as a payment required by state law, a legally binding and enforceable contract that is not void as against public policy, and a contract or agreement necessary for the administration and operation of the Successor Agency.
I. The parties hereto further find and declare that this agreement furthers their respective public purposes, and will benefit the health, safety, and general welfare of the community.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. INTRODUCTORY PROVISIONS
The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement.
2. REIMBURSEMENT OF HOUSING ENTITY ADMINISTRATIVE COST ALLOWANCE
A. The Successor Agency hereby promises and agrees to remit the sum of SIX HUNDRED THOUSAND DOLLARS ($600,000) to the Authority as payment for the Authority's "housing entity administrative cost allowance" for the period of time between July 1, 2014, and July 1, 2017, and in accordance with Health & Safety Code Section 34171(p), and with the parties expressly acknowledging and agreeing that no portion of said housing entity administrative cost allowance has been previously paid to the Authority.
B. The Successor Agency shall remit the payment contemplated in paragraph (A) from funds remitted by the Los Angeles County Auditor-Controller from the Successor Agency's Real Property Tax Trust Fund; provided this Agreement is first approved by the Oversight Board and Finance for inclusion on the Successor Agency's ROPS.
C. The Successor Agency's payment of the amounts described herein shall be in one (1) lump sum, if the Oversight Board and Finance approve said payment on the Successor Agency's ROPS, or otherwise in equal annual installments of One Hundred and Fifty Thousand Dollars per fiscal year until paid in full, with simple interest at 3% per annum accruing on any unpaid amounts commencing on July 1, 2018.
3. AUTHORITY'S OBLIGATIONS
Exhibit A
The Authority shall utilize the funds received under this Agreement solely and exclusively for qualifying administrative expenses of the Authority, subject to the litigations and requirements of the Dissolution Law.
4. ENTIRE AGREEMENT: WAIVERS AND AMENDMENTS
A. This Agreement shall be executed in duplicate originals, each of which is deemed to be an original.
B. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement.
C. This Agreement is intended solely for the benefit of the Authority and the Successor Agency. Notwithstanding any reference in this Agreement to persons or entities other than the Authority and the Successor Agency, there shall be no third party beneficiaries under this Agreement.
D. All waivers of the provisions of this Agreement, and all amendments to this Agreement must be in writing and signed by the authorized representatives of the parties.
5. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
6. DEFAULT
If either party fails to perform or adequately perform an obligation required by this Agreement within thirty (30) calendar days of receiving written notice from the nondefaulting party, the party failing to perform shall be in default hereunder. In the event of default, the non-defaulting party will have all the rights and remedies available to it at law or in equity to enforce the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the nondefaulting party enumerated in this paragraph are cumulative and shall not limit the nondefaulting party's rights under any ether provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non-defaulting party against the defaulting party. All notices of defaults shall clearly indicate a notice of default under this Agreement.
7. BINDING ON SUCCESSORS
Exhibit A
This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law.
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DATE FIRST SET FORTH ABOVE
THE HAWAIIAN GARDENS SUCCESSOR AGENCY ("Successor Agency")
By:-----------Chairperson
THE PUBLIC HOUSING AUTHORITY FOR THE CITY OF HAWAIIAN GARDENS
(" Authority")
By:-----------Chairperson
