10D Action 2012 0716 - Laserfiche WebLink

Home

To: Memo to Successor Agency Clients From: Susan E. Bloch Re: AB 1484— Redevelopment Budget Trailer Bill Date: July 5, 2012 Page: 13 were sold unless the purposes can no longer be achieved, in which case, the proceeds may be used to defease the bonds." 58 Although an argument can be made that this permits 2011 bond proceeds to be used pursuant to the requirements set forth in an indenture or other enforceable obligation, it should be noted that the legislation imposes additional constraints upon Successor Agency activities. For example, new Section 34177.3(a) provides that (with limited exceptions pertaining to the windup of its affairs) a Successor Agency may not create new enforceable obligations or begin new redevelopment work except in compliance with an enforceable obligation that existed prior to June 28, 2011, and Section 34177.3(c) provides that Successor Agencies may not transfer any powers or revenues to any other public or private party except pursuant to an enforceable obligation on an approved ROPS. 8. Housin, Bond Proceeds. AB 1484 permits the proceeds of housing bonds issued prior to December 31, 2010 to be used by the housing successor entity even if the proceeds have not yet been encumbered for an enforceable obligation. Proposed expenditures must be listed on a ROPS, and are subject to review by the Oversight Board and the DOF; provided however, such review is limited to a determination that the proposed use is consistent with the bond covenants and that sufficient bond proceeds are available . The Housing Successor must notify the Successor Agency of requests to include expenditure of housing bond proceeds on the ROPS at least 20 days prior to the deadline for submittal of the ROPS to the Oversight Board. 9. Administrative Budget Allowance. Litigation expenses, property management expenses incurred prior to disposition, and project - specific employee costs are excluded from the administrative budget cap . AB 1484 provides the Oversight Board with authority to reduce the administrative budget below the minimum $250,000 amount allowable under the statute. 10. Statute of Limitations. Under ABx1 26, the time period within which a legal action could be brought to challenge redevelopment agency and legislative body findings and determinations (as well as challenges to the issuance of bonds and the adoption of redevelopment plans and amendments) was extended to a period of two years for 58 Section 34177(1). 59 Section 34176(g)(1)(A). 60 Section 34176(g)(1)(B). 61 Section 34171(d) (1) (F). 62 Section 34171(6). A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN FRANCISCO SANTA ROSA FRESNO