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SB 1045. In 2003, the State legislature adopted Senate Bill 1045 ("SB 1045"), which provided that the governing body could adopt an ordinance to extend the limits on the effectiveness of redevelopment plans and the authority to collect Tax Increment Revenues by one additional year if the Agency was required to make a payment to the Educational Revenue Augmentation Fund ("ERAF") in 2003-04, By Ordinance No. 2003-018, adopted December 15, 2003 the City Council amended the Redevelopment Plans of the Project Areas to implement the one-year extension. SB 1096. In 2004, the State legislature .adopted Senate Bill 1096 "(SB 1096"), which provided that the governing body could, with respect to redevelopment plans with less than 20 years remaining, adopt an ordinance to extend the limits on the effectiveness of redevelopment plans and the authority to collect Tax Increment Revenues by one additional year for each ERAF payment if the Agency was required to make a payment to ERAF in 2004/05 and 2005/06. Because the remaining Redevelopment Plan effectiveness for the Project Areas are greater than twenty years the Redevelopment Plan time limits may not be further extended under SB1096. AB x4_26. In July 2009, the State legislature adopted Assembly Bill x4_26 ("AB 26"), which provided that the governing body could adopt an ordinance to extend the limits on the effectiveness of redevelopment plans and the authority to collect Tax Increment Revenues by one additional year if the Agency makes a payment to the Supplemental Educational Revenue Augmentation Fund ("SERAF") in 2009-10. The Agency expects that, if the validity of AB 26 is judicially upheld, the Agency will make the required payments and amend the Redevelopment Plans for the Project Areas to implement the one year extension. The SERAF payment is described in detail under the caption "RISK FACTORS -State of California Fiscal Issues." Agency Agreements. The Agency has one agreement for housing-related projects funded from the Housing Set-Aside and which are senior to the 2010 Bonds. This agreement is a Section 108 loan contract with the United States Department of Housing and Urban Development ("HUD") for the Cherrywood single-family development and the ABHOW senior rental project; the contract requires the Agency's housing fund to maintain a minimum balance of $250,000 until 2019-20 as security for the loan and to make annual payments of up to $87,104 until August 1, 2019. Agency Tax Sharing Obligations -Joint Project Area A61290 Tax Sharing. As a project area formed prior to January 1, 1994, the Joint Project Area is not subject to the statutory pass-through payments required for project areas formed after that date. Tax Sharing Agreements. The Joint Project Area is subject to several fiscal agreements that were negotiated with taxing entities during the plan adoption process. These agreements are briefly summarized following. County Fiscal Agreements. The Agency is subject to fiscal agreements with several taxing entities in the Joint Project Area that are paid through the redevelopment fund and do not affect the Low and Moderate Income Housing Fund. AC Transit Fiscal Agreement. The fiscal agreement with the AC Transit District requires the Agency to pay to the District the District's proportionate share of tax increment from a base -23-