HomeMy WebLinkAboutBackground ReportBACKGROUND
Existing law dissolved redevelopment agencies and community development agencies,
as of February 1, 2012, and provided for the designation of successor agencies to wind
down the affairs of the dissolved redevelopment agencies and to, among other things,
make payments due for enforceable obligations and to perform obligations required
pursuant to any enforceable obligation. Existing law provides for the transfer of housing
assets and functions previously performed by the dissolved redevelopment agency to
one of several specified public entities. Existing law authorizes that entity to designate
the use of, and commit, indebtedness obligation proceeds that were issued for
affordable housing purposes prior to January 1, 2011, and were backed by the Low and
Moderate Income Housing Fund.
Assembly Bill (AB 981) would instead authorize that entity to designate the use of, and
commit, indebtedness obligation proceeds that were issued prior to June 28, 2011.
Existing law authorizes the Department of Finance to issue a finding of completion to a
successor agency that completes a due diligence review and meets other requirements.
Upon receiving a finding of completion, a successor agency is authorized to expend
excess bond proceeds derived from bonds issued on or before December 31, 2010, in a
manner consistent with the original bond covenants.
AB 981 would modify this authorization to include the expenditure of excess bond
proceeds derived from bonds issued on or before June 28, 2011. The bill, if passed,
would expressly authorize the Successor Agency to designate the use of and commit
bond proceeds in the amount of $39,335,000, which derived from the issuance of the
2011 Tax Allocation Bonds on March 3, 2011.