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Consider adopting a resolution approving the City of Suisun City Successor Agency loan repayment schedule to the City of Suisun City Low and Moderate Income Housing Fund
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Published Notice Required? Yes ___ No _ X_
Public Hearing Required? Yes ___ No _ X_
RECOMMENDATION:
It is recommended that the Solano Consolidated Oversight Board (SCOB) adopt the resolution approving the City of Suisun City Successor Agency loan (SA) repayment schedule to the City of Suisun City Low and Moderate Income Housing Fund.
DISCUSSION:
In 2009, in response to the economic challenges facing the State of California, the California State Legislature enacted ABx4-26 that added Sections 33690 and 33690.5 to the Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) requiring Redevelopment Agencies (RDA) to make certain payments to its county Supplemental Educational Revenue Augmentation Fund (SERAF) in FY 2009-10 and FY 2010-11. Health and Safety Code Section 33690 (c) permitted the RDA to borrow from the Low and Moderate Income Housing Fund (LMIHF) if necessary to satisfy the SERAF payment obligations.
At that time, Suisun City RDA staff concluded that the Suisun City RDA had insufficient RDA funds available to make the SERAF payment. This resulted in the RDA borrowing from the LMIHF to fulfill its SERAF payment obligations. Specifically, the Suisun City RDA borrowed $5,723,200 in May 2010 for FY 2009-10 and $1,178,305 in May 2011 for the FY 2010-11 SERAF payments, for a total of $6,901,500.
Pursuant to Health and Safety Code (HSC) section 34171 (d)(1)(G), loans issued from a city to a former RDA may be listed on the Recognized Obligation Payment Schedule (ROPS) as enforceable obligations, provided the Oversight Board approves a repayment schedule. Therefore, a separate Oversight Board action is required, approving a repayment schedule for amounts due to the LMIHF.
The SERAF loan payment from the Successor Agency to the RDA of the C...
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