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ARA1995-06RESOLUTION NO. /~R~9 5-6 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY AUTHORIZING THE MODIFICATION OF THE SCHEDULE OF FULL REPAYMENT TO THE LOW AND MODERATE INCOME HOUSING FUND OF MONEYS BORROWED TO MAKE THE 1992-1993 EDUCATIONAL REVENUE AUGMENTATION FUND PAYMENT; AND AUTHORIZING A LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND TO PAY ALL OR A PORTION OF THE 1994-1995 FISCAL YEAR STATE MANDATED AMOUNT TO THE EDUCATIONAL REVENUE AUGMENTATION FUND; AND MAKING CERTAIN FINDINGS CONCERNING THE EXPENDITURE OF MONIES FROM THE LOW AND MODERATE INCOME HOUSING FUND FOR ELIGIBLE COSTS OF THE AFFORDABLE HOUSING UNITS FOR THE AREA 5 TOWNHOMES; AND ADOPTING THE DEFICIT PAYMENT PLAN TO ELIMINATE THE DEFICIT OF THE LOW AND MODERATE INCOME HOUSING FUND WHEREAS, the Anaheim Redevelopment Agency ("Agency") is a public body corporate and politic formed and exercising its powers pursuant to the Community Redevelopment Law of California, Health and Safety Code Section 33000, et seq. (the "Law"); WHEREAS, the Educational Revenue Augmentation Fund and implementing procedures were established and added to the California Community Redevelopment Law, Health and Safety Code, 33000, et seq., particularly Section 33680, et seq., which statutes provide that during the 1992-93, 1993-1994, and 1994-1995 Fiscal Years each redevelopment agency shall allocate to the Educational Revenue Augmentation Fund, prior to May 10 of the applicable Fiscal Year, an amount determined pursuant to a formula contained therein (the "ERAF Payment"); and WHEREAS, the Agency has timely made the 1992-1993 ERAF Payment and the 1993- 1994 ERAF Payment; and WHEREAS, Health and Safety Code Section 33681 Co) (1) provides that in order to make a full ERAF Payment in the 1992-1993 Fiscal Year as required by that section, the Agency was authorized to borrow up to Fifty Percent (50%) of the amount required to be allocated to the Low - and Moderate Income Housing Fund in Fiscal Year 1992-93 to make the full ERAF Payment for that Fiscal Year; WHEREAS, by Resolution No. ARA 93-3 adopted on March 2, 1993 the Agency did borrow $1,604,784.00 of the amount allocated to the Low and Moderate Income Housing Fund in Fiscal Year 1992-1993 to make a portion of such ERAF Payment and established by that resolution that the Agency would make annual repayments to the Low and Moderate Income Housing Fund of one-tenth of such amount borrowed on or before the last day of each of Fiscal Years 1993-1994 through 2002-2003, with the last payment date due on or before June 30, 2003; and F :~DOC$~DEVSVCSLRESO LUTN~KCR5417A.DOC WHEREAS, by this Resolution the Agency desires to revise the timing of such repayment as permitted by Section 33680 (b) (2) to delete annual payments and obligate the Agency to repay in full the amount borrowed for the 1992-1993 Fiscal Year from the Low and Moderate Income Housing Fund on or before June 30, 2003 and to confirm its obligation to repay to the Low and Moderate Income Housing Fund the full sum borrowed to fund the 1992-1993 Fiscal Year ERAF Payment; WHEREAS, as to the 1994-1995 Fiscal Year pursuant to Section 33681.5 (a) (2) the California Director of Finance has notified the Agency that the ERAF Payment for 1994-1995 Fiscal Year is One Million Ninety-Two Thousand Eight Hundred Forty-Three Dollars and Fifteen Cents ($1,092,843.15); and WHEREAS, consistent with the right set forth in the above-described Health and Safety Code Section 33681 (b) (1), Section 33681.5 (b) (1) provides that in order to make the full ERAF Payment for the 1994-1995 Fiscal Year required by that section, a redevelopment agency may borrow up to Fifty Percent (50%) of the amount required to be allocated to the LOw and Moderate Income Housing Fund in Fiscal Year 1994-95; and WHEREAS, Health and Safety Code Section 33681.5 (b) (2) provides that as a condition for borrowing pursuant to that subdivision, a redevelopment agency shall make a finding that there are insufficient other monies to meet the requirements of Section 33681.5; and WHEREAS, the staff report which accompanies this Resolution concludes that there are insufficient funds remaining, after payment of all sums required by existing bonded indebtedness and other existing agreements, and payment of all administrative expenses, to make the ERAF Payment required by Health and Safety Code Section 33681.5; and WHEREAS, based on the best available data at this time, the Agency projects that approximately Three Million Seven Hundred Thousand Dollars ($3,700,000.00) will be required pursuant to Health and Safety Code Sections 33334.2 and 33334.6 to be placed into the Agency's Low and Moderate Income Housing Fund in Fiscal Year 1994-1995; and WHEREAS, the Agency intends that this Resolution shall evidence its obligation to repay to the Low and Moderate Income Housing Fund any sums borrowed to fund the ERAF Payment allocations; and WHEREAS, the Agency has been advised by its special legal counsel that there exist questions regarding the authority of the State to require redevelopment agencies to pay the ERAF Payment; and WHEREAS, pursuant to Sections 33334.2 and 33334.6 et seq. of the Law (the "Affordable Housing Requirements"), the Agency has established the Low and Moderate Income Rousing Fund to improve, increase and preserve housing for low and moderate income persons and families available at an affordable housing cost (as those terms are defined in the Law and Sections 50052.5 and 50093 of the Health and Safety Code); and F:~)C.~DEV~VC~.F__30 Lu'rN~KCR5417A.DOC WHEREAS, pursuant to the Affordable Housing Requirements, specifically Section 3333zt.6 of the Law, the Agency by Resolution Nos. 90-10, 90-11, and 90-12 has established a deficit (the "Deficit") in which monies are due to the Low and Moderate Income Housing Fund because in certain prior fiscal years existing programs and existing obligations of the Agency prevented the Agency from setting aside a certain amount of money into the Low and Moderate Income Housing Fund; and WHEREAS, the Agency and Kaufman and Broad of Southern California, Inc., a California corporation (the "Developer") have entered into a Disposition and Development Agreement ("DDA") concerning the development of one hundred fifty-two (152) new attached and detached single family residential units (the "Project") of which sixty-five (65) units in the Project are townhomes and eighty-seven (87) units in the Project are single family detached homes, a portion of which when developed will be available for purchase and occupancy by low and moderate income families and households at an affordable housing cost pursuant to the Affordable Housing Requirements (the portion of the townhomes and single family detached homes which are affordable pursuant to the Affordable Housing Requirements are herein called the "Affordable Units"); and WHEREAS, certain costs incurred and to be incurred by the Agency for acquisition, predevelopment, relocation, site preparation, construction and other costs are attributable to the Affordable Units (herein the "Eligible Costs") and such Eligible Costs have been and will be incurred for the purpose of increasing and improving the community's supply of low and moderate income housing available at an affordable housing cost pursuant to the Affordable Housing Requirements; and WHEREAS, the monies available in the Low and Moderate Income Housing Fund for payment of Eligible Costs of the Project for the Affordable Units due to the Deficit were not and are not sufficient to pay for all of such Eligible Costs, and the Agency has advanced and expended monies from the Agency's tax increment fund (the "Fund 721-Operating Account"), and the Agency desires to make additional advances to the Low and Moderate Income Housing Fund from the Fund 721-Operating Account to pay for all or a portion of such Eligible Costs for the development and completion of the Affordable Units; and WHEREAS, as of the date of the Agency's approval of the DDA as set forth in the Summary Report prepared pursuant to Section 33433 of the Law as a part of the public hearing on the DDA, the Agency's projection of total Project costs were about Seventeen Million Dollars ($17,000,000.00) (a portion of which costs have already been incurred and expended from the Fund 721 Operating Account), of which it is estimated that about Five Million Five Hundred Thousand Dollars ($5,500,000) are and will be attributable to Eligible Costs for the Affordable Units and which costs have been and will continue to be advanced to the Low and Moderate Income Housing Fund; and WHEREAS, the estimated percentage of such Eligible Costs is based on the estimated portion of land assembled for the Project on which Affordable Units will be developed and sold to and occupied by eligible low and moderate income buyers pursuant to the Affordable Housing Requirements; and F: ~K)C_~ ~DEVS'VC$ ~RF_,$O L~ N ~ C R3417A.DOC WHEREAS, the total Purchase Price to be paid by the Developer to the Agency under the DDA, and all amendments thereto, will be accounted for in the hereinafter described accounting and reconciliation of the Eligible Costs to cause a net amount of Agency Project costs of about Fourteen Million Two Hundred Seventy Three Thousand Dollars ($14,273,000); and WHEREAS, by this Resolution the Agency desires to establish a debt (the "Area 5 Debt") of the Low and Moderate Income Housing Fund from the advance of Fund 721-Operating Account monies, the repayment or offset of which shall be made from future tax increment funds and other monies available in the Low and Moderate Income Housing Fund; and WHEREAS, by this Resolution the Agency desires to affirm the purpose and benefit of the Eligible Costs for the development and completion of the Affordable Units; and WHEREAS, further by this Resolution the Agency desires to direct the Executive Director of the Agency when the Affordable Units are completed and sold to low and moderate income buyers pursuant to the Affordable Housing Requirements to cause an accounting of the Project costs (i) to reconcile and confirm the amount of such Project costs which are attributable to Eligible Costs for the Affordable Units, and (ii) to determine which Affordable Units have been sold to and occupied by low and moderate income persons and families at an affordable housing cost, and (iii) to determine if covenants of not less than ten (10) years ("Affordable Term") have been recorded with such Affordable Units to insure the continued occupancy by and availability to low and moderate income persons and families for the Affordable Term, all pursuant to the Affordable Housing Requirements; and WHEREAS, because the Agency has established the Deficit by Resolution Nos. 90-10, 90-11, and 90-12 pursuant to Section 33334.6 of the Affordable Housing Requirements it is also required by subsection (g) of that section to adopt a plan to eliminate such Deficit in subsequent years as determined by the Agency; and WHEREAS, the Agency desires by this Resolution to describe and adopt such plan to eliminate the Deficit (the "Deficit Payment Plan"); and WHEREAS, the Agency intends to fully fund the Deficit on or before July 18, 2008, which date is before the date the effectiveness of the Project Alpha Redevelopment Plan ends; and WHEREAS, the Agency intends to expend the monies paid into the Low and Moderate Income Housing Fund through the Deficit Payment Plan pursuant to and in compliance with the Affordable Housing Requirements; and WHEREAS, as a part of the Deficit Payment Plan, the Agency, to the extent warranted, intends to avail itself of the rights and comply with the obligations set forth in Sections 33333.4 (c), 33333.6 (a) (1), 33333.6 (g), and 33334.6 (g) of the Law, and any other applicable laws or regulations, which permit the Agency to modify and extend certain time and financial limitations in the Project Alpha Redevelopment Plan in order to fully fund the Deficit and to fully and properly expend such monies in accordance with all applicable Affordable Housing Requirements and other provisions of the Law. F:~DOCS~DEVSVCS~RF..SOLUTN~KCR5417A.DOC NOW, THEREFORE, THE ANAHEIM REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Agency does modify the payment schedule for the full repayment of the moneys borrowed from the Low and Moderate Income Housing Fund in the 1992-1993 Fiscal Year by deleting an annual repayment schedule and hereby establishing that the full amount borrowed shall be repaid in full on or before June 30, 2003. Further, the Agency confirms its obligation to repay to the Low and Moderate Income Housing Fund on or before June 30, 2003 the full sum borrowed to fund the 1992-1993 Fiscal Year ERAF Payment. Section 2. The Agency hereby finds that based upon the information presented in the staff report accompanying this Resolution, the Agency has insufficient other monies to pay the 1994-1995 ERAF Payment required by Health and Safety Code Section 33681.5 (a) without borrowing from the Agency's Low and Moderate Income Housing Fund. Section 3. The Agency is hereby authorized to borrow up to One Million Eight Hundred Fifty Thousand Dollars ($1,850,000.00) from the Agency's Low and Moderate Income Housing Fund, which is projected to be Fifty Percent (50%) of the amount required to be allocated to the Agency's Low and Moderate Income Housing Fund pursuant to Health and Safety Code Sections 33334.2, 33334.3 and 33334.6 during the 1994-95 fiscal year, to be used to pay the Agency's ERAF Payment obligation pursuant to Health and Safety Code Section 33681.5. Such borrowed amount shall be repaid in full to the Agency's Low and Moderate Income Housing Fund on or before June 30, 2004. If such borrowed amount is greater than Fifty Percent (50%) of the actual amount required to be allocated to the Agency's Low and Moderate Income Fund in the 1994-1995 Fiscal Year, as determined by the Agency Treasurer and Executive Director as soon as feasible following the conclusion of the 1994-1995 Fiscal Year, the excess amount which was borrowed shall be repaid to the Agency's Low and Moderate Income Housing Fund as soon as possible. Section 4. The Executive Director of the Agency is hereby authorized, in cooperation with the City Manager, to report to the Orange County Auditor that the Agency intends to fund the allocation required by Section 33681.5 through funds borrowed from the Agency's Low and Moderate Income Housing Fund as provided herein, as well as other revenues derived from tax increment funds. The Executive Director, in cooperation with the City Manager, is authorized and directed to state in such report that nothing in such report shall be construed to waive the Agency's rights to contest the constitutionality or legality of such requirement, and that such payment will be made under protest due to the Agency's belief that such payment requirement is unconstitutional and illegal. Section 5. The Agency acknowledges and approves the advance, expenditure, and accounting of funds from the Fund 721 Operating Account to the LOw and Moderate Income Housing Fund for the Area 5 Project costs attributable to the Eligible Costs for the Affordable Units. Section 6. The Agency hereby establishes the Area 5 Debt as a debt of the LOw and Moderate Income Housing Fund due to the Fund 721-Operating Account, the amount of debt shall be the monies advanced above pursuant to Section 5. F :kl)OCS'xDEVSVCSLRF_.SO LUTN~KCR5417A.DOC Section 7. As tax increment and/or other Agency funds are allocated, received and available in the Low and Moderate Income Housing Fund: the Executive Director shall commence repayment of the Area 5 Debt, and/or, as elected by the Agency, offset cancellation of an Agency deficit to the Low and Moderate Income Housing Fund, or other acceptable accounting method to payoff such Area 5 Debt, as reasonable and feasible with due consideration to the Deficit, the Deficit Payment Plan, and all other obligations and programs of the Agency from the Low and Moderate Income Housing Fund. Section 8. The Affordable Units and the Eligible Costs incurred and to be incurred therefor meet the intent and requirements of the Affordable Housing Requirements. Section 9. After the completion of the Affordable Units and the sale to and occupancy of such Affordable Units by low and moderate income persons and families at an affordable housing cost pursuant to the Affordable Housing Requirements, the Executive Director shall cause an accounting of the Project costs and reconcile and confu-m the amount of such Project costs which are attributable to Eligible Costs for the Affordable Units. Further, the Executive Director shall confirm for purposes of such accounting and reconciliation the number of such Affordable Units which were sold to and are then occupied by low and moderate income persons or families at an affordable housing cost and for which covenants for the Affordable Term have been recorded against the subject property in conformity with the Affordable Housing Requirements. Section 10. The Agency adopts a Deficit Payment Plan to fully fund the Deficit and hereby establishes that on or before July 18, 2008 it shall fully fund the Deficit. Section 11. As a part of the Deficit Payment Plan, the Agency, to the extent warranted, will and shall avail itself of the rights and obligations set forth in Sections 33333.4 (c), 33333.6 (a) (1), 33333.6 (g), and 33334.6 (g), and any other applicable laws or regulations, which permit the Agency to modify and extend those certain time and financial limitations which are set forth in the Project Alpha Redevelopment Plan in order to fully fund the Deficit and to fully and properly expend such monies in accordance with all applicable Affordable Housing Requirements and other provisions of the Law. Section 12. The Recitals set forth above in this Resolution are true and correct and are fully incorporated into the findings hereof. F:~C~d)LC'VSVC:~dt, E~OLUTN ~KCR.~ 17A. DOC THE FOREGOING RESOLUTION NO.3.P,~95-0NAS PASSED, APPROVED AND ADOPTED this 25~_h day of 34~ri1 1995. ATTEST: Agency Secretary ~- F:~)OCS~DEVSVC$~RESOLUTN~KCR5417A.DOC STATE OF CALIFORNIA ) COUNTY Of ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing Resolution No. ARA95-6 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held on the 25th day of April, 1995, by the following vote of the members thereof: AYES: CHAIRMAN/AGENCY: Tait, Lopez, Zemel, Da-ly NOES: CHAIRMAN/AGENCY: None ABSENT: CHAIRMAN/AGENCY: Feldhaus AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency signed said Resolution No. ARA95-6 on the 25th day of April, 1995. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 25th day of April, 1995. SECRETARY OF EDEVELOPMENT AGENCY (SEAL)