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File Number: 12 -381 repaid if the Oversight Board finds that the loan was for a legitimate redevelopment purpose. Repayment is subject to certain restrictions, including, a reduction of the interest rate to the LAIF rate, restrictions on the timing and amount of annual repayments, and a requirement that 20% of the repayment amount must be deposited into a restricted housing set -aside fund. Use of Bond Proceeds. Upon issuance of an FOC, the proceeds of bonds issued prior to December 31, 2010 may be used for purposes consistent with the bond covenants. Obligations to be paid with bond proceeds are subject to review by the Oversight Board and the DOF. Property Management Plan. Upon receiving an FOC, the Successor Agency may prepare a long -range property management plan that addresses the disposition and use of real property assets. The plan must be submitted to the Oversight Board and DOF within six months after issuance of the FOC. The plan must address the use or disposition of all properties, which may include: (i) retention of property for governmental use, (ii) retention of the property for future development, (iii) sale of the property, (iv) use of the property to fulfill an enforceable obligation. If the property will be conveyed for a purpose identified in the redevelopment plan or pursuant to an enforceable obligation, the Successor Agency may retain the sale proceeds. / G 19191111810 F_ l 0 N W iI N 6" ] [a] 0 6 Annual Audit. An agreed upon procedures audit of the Successor Agency, commissioned by the County Auditor - Controller, is to be completed by October 1, 2012. This audit is in addition to the housing fund and non - housing Due Diligence Reviews. In addition, an audit of the Successor Agency's financial transactions and records is to be conducted at least annually by a certified public accountant. 2. Public Purpose Properties. The Oversight Board may authorize the transfer of public purposes properties to the Successor Agency or other public entity for which a public facility was constructed. In addition, the Department of Finance may extend its review period for public purpose transfers to 60 days. 3. 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 an FOC, a Successor Agency may develop a property management plan, subject to Oversight Board and DOF approval as described above. Although AB 1484 includes some contradictory language, a reasonable interpretation is that 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 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 FOC process. City of San Leandro Page 4 Printed on 711012012