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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: 2 redevelopment agency (the "Sponsoring Jurisdiction").' Prior to any new Successor Agency action, the City Council or Board of Supervisors, as applicable, acting in its capacity as the legislative body of the Sponsoring Jurisdiction and acting in its capacity as the governing board of the Successor Agency, should adopt authorizing resolutions acknowledging the establishment of the Successor Agency and its separate legal existence. In addition, the governing board for the Successor Agency should adopt a resolution appointing officers, adopting procedures, and ratifying or affirming prior actions. 2. Payment of January - June Residual Balance By July 12, 2012, the Successor Agency is obligated to pay the amount that the County auditor - controller determines is owed to the taxing entities for the period January through June 2012, based upon the December 2011 distribution of tax increment and the January — June 2012 ROPS. Failure to pay amounts due by July 18, 2012 may subject the Sponsoring Jurisdiction and the Successor Agency to civil penalties equal to 10% of the amount due plus 1.5% for each month the payment is late. In addition, the legislation provides that until the amount determined to be due is paid: (i) the Successor Agency is not authorized to pay any obligations other than bond debt service, and (ii) the Sponsoring Jurisdiction will not receive sales and use tax scheduled to be distributed on July 18, 2012 or any subsequent payment, up to the amount determined to be due to the taxing entities . 4 Housing Asset Inventory. By August 1, 2012, the entity that assumed the housing functions of the former redevelopment agency (the "Housing Successor ") is required to submit to the Department of Finance ( "DOF "), in DOF- approved format, a comprehensive listing of all housing assets that were transferred to the Housing Successors The legislation provides an expanded definition of "housing assets" that includes properties acquired or restricted for use as affordable housing, loans and 1 Health and Safety Code Section 34173(g). All references are to the California Health and Safety Code unless otherwise indicated. 2 Section 34183.5(6)(2). 3 Section 34183.5(b)(2)(C). If the Successor Agency fails to pay the amount determined to be payable by July 12, 2012, DOF or any affected taxing entity may file a writ of mandate to require immediate payment. DOF may request the court to waive some or all penalties if DOF finds that the imposition of penalties will jeopardize the payment of enforceable obligations. 4 Id. 5 Section 34176(a)(2). A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN FRANCISCO SANTA ROSA FRESNO