HomeMy WebLinkAbout2011 CC RESO 2011-178 CDCRESOLUTION NO. 2011 — 178
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL REDUCING
ITS ALLOCATION TO THE LOW AND MODERATE INCOME
HOUSING FUND FOR THE 2011-2012 FISCAL YEAR AND
MAKING CERTAIN FINDINGS AND DETERMINATIONS
WHEREAS, the Community Development Commission of the City of National
City ("CDC") hereby finds, determines, resolves and orders as follows:
Section 1. Sections 33334.2 and 33337.3 of the California Community
Redevelopment Law (Heath and Safety Code Section 33000, et seq.) ("CRL") require the CDC
to use 20 percent (20%) of taxes allocated to the CDC pursuant to Section 33670 of the CRL
("Tax Increment") for the purpose of increasing, improving, and preserving the community's
supply of low and moderate income housing, and to hold such funds in a separate Low and
Moderate Income Housing Fund until used ("Low and Moderate Income Housing Fund").
Section 2. Assembly Bill No. X1 27 ("ABx1 27") was passed by the State legislature
on June 15, 2011, and signed by Governor Brown on June 28, 2011.
Section 3. ABx1 27 is codified as Part 1.9 of the California Health and Safety Code,
commencing with Section 34192 ("Part 1.9");.
Section 4. ABx1 27 establishes a voluntary alternative redevelopment program,
whereby the CDC may continue to exist upon the enactment of an ordinance by the City of
National City ("City") complying with the provisions of Part 1.9, including payment of an annual
remittance to the County Auditor -Controller ("Remittance Ordinance").
Section 5. ABx1 27 authorizes the CDC to enter into an agreement with the City
whereby the CDC transfers a portion of its Tax Increment to the City in an amount not to exceed
the amount of the City's annual remittance to the County Auditor -Controller ("Remittance
Agreement"). The City and CDC are entering into a Remittance Agreement, as allowed by and
pursuant to ABx1 27.
Section 6. ABx1 27 authorizes the CDC to reduce its allocation of Tax Increment to
the Low and Moderate Income Housing Fund for the 2011-2012 Fiscal Year if the City complies
with the provisions of Part 1.9, and the CDC finds that there are insufficient other moneys to
meet its debt and other obligations, current priority program needs or its obligations under the
Remittance Agreement. The estimated remittance payment is $4.8 Million. The CDC is
budgeted to receive approximately $14.6 Million in Fiscal Year 2012 in gross tax increment
revenues. Of the gross tax increment revenues, approximately $8.4 Million is used to fund bond
debt service payments and pass -through agreements. An estimated $3.4 Million is used for
programs, services, and administrative costs of the CDC annually, and $800,000 has been
budgeted for non -housing tax increment projects in Fiscal Year 2012. Approximately $2 Million
of ongoing project funds are set aside for low to moderate housing purposes. There is currently
a budgeted $442,114 in the non -housing tax increment fund balance.
In order for the CDC to transfer the tax increment to the City for the estimated remittance
payment, the CDC will have to utilize the fund balance ($442,114) and unfund the non -housing
tax increment projects for Fiscal Year 2012 ($800,000). The capitalized interest from the bond
program will provide $1.3 Million in funds.
Resolution No. 2011 — 178
Page Two
The only source of funds available for the remaining $2.2 Million is the low to moderate housing
fund.
Section 7. The CDC has reviewed and duly considered the Staff Report, documents
and other written evidence presented at the meeting and believes that it will be in the best
interests of the City and the health, safety, morals, and welfare of its residents, and in accord
with the public purposes and provisions of applicable state and local law and requirements to
reduce its allocation of Tax Increment to the Low and Moderate Income Housing Fund for the
2011-2012 Fiscal Year by Two Million Two Hundred Thousand Dollars ($2,200,000) ("Allocation
Reduction").
Section 8. All other legal prerequisites to the adoption of this Resolution have
occurred.
Section 9. The CDC has received and heard all oral and written objections
pertaining to this matter, and all such oral and written objections are hereby overruled.
Section 10. The CDC hereby finds and determines that the foregoing recitals are true
and correct.
Section 11. Based upon evidence in the record, the CDC finds that there are
insufficient other moneys to meet its debt and other obligations, current priority program needs
or its obligations under the Remittance Agreement.
Section 12. The CDC finds and determines that it is necessary to implement the
Allocation Reduction for the 2011-2012 Fiscal Year.
Section 13. The CDC Executive Director, or designee, is hereby authorized to take
such actions as are necessary and appropriate to carry out and implement the Allocation
Reduction for the 2011-2012 Fiscal Year upon the City's enactment of the Remittance
Ordinance.
Section 14. This Resolution shall take effect immediately upon its adoption.
ATTEST:
PASSED and ADOPTED this 2nd day of August, 2011.
sston, Secretary
h Morrison, Chairman
AP' OVED
Il
CI.r ; G. Sil
CDC General
S TO FORM:
sel
Passed and adopted by the Community Development Commission of the City of
National City, California, on August 2, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Commu
evelopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-178 of the Community Development Commission of the City
of National City, California, passed and adopted on August 2, 2011.
Secretary, Community Development Commission
By:
Deputy