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To: Memo to Successor Agency Clients From: Susan E. Bloch Re: AB 1484— Redevelopment Budget Trailer Bill Date: July 5, 2012 Page: 11 Department of Finance may extend its review period for public purpose transfers to 60 day S. The legislation creates an ambiguity in that Sections 34177(e) and 34181(a) authorize the transfer of public purpose properties with Oversight Board approval, while Section 34191.5(c)(2)(C) provides that property shall not be transferred to a Successor Agency, a city, county, or city and county, unless a property management plan has been approved by the Oversight Board and DOF. Since Sections 34177(e) and 34181(a) provide specific authority for the transfer of public purpose properties subject to Oversight Board approval and DOF's subsequent review, it is reasonable to interpret these provisions to permit such transfers in advance of approval of the property management plan. Section 34191.3 (discussed in the following paragraph) provides further support for this interpretation. Land Disposition. AB 1484 suspends the "forced disposition" provisions of Section 34177(e) (which provides for disposition to be undertaken "expeditiously and in a manner aimed at maximizing value "). Instead, the legislation provides that upon issuance of a Finding of Completion, a Successor Agency may develop a property management plan, subject to Oversight Board and DOF approval as described above. Section 34191.3 provides that until DOF approves a property management plan, the requirements of Sections 34177(e) and 34181(a) (providing that the Oversight Board shall direct the Successor Agency to dispose of assets) shall be suspended except with regard to transfers for governmental use. Although this provision could be interpreted to mean that all transfers other than governmental purpose transfers are suspended pending issuance of a Finding of Completion and approval of the property management plan, arguably, a Successor Agency that wishes to voluntarily convey certain properties in advance of approval of a property management plan may do so, provided that the Oversight Board approves and DOF does not object. 4. Amended and Restated Agreements. AB 1484 restricts the ability of a Successor Agency to re -enter into agreements with its Sponsoring Jurisdiction if DOF has previously rejected the items to be funded by such agreements, unless such obligations are permitted by court order or as a result of a meet and confer process with DOF . The legislation specifically prohibits reauthorization of Sponsoring Jurisdiction loan agreements except as permitted pursuant to the Finding of Completion process . In addition, the legislation provides that any actions to re 50 Id. 51 Secrion 34178(a). 52 Secrions 34180(a), 34180(h). A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN FRANCISCO SANTA ROSA FRESNO