RES-OB-0048 Loan & Reimbursement Agreement ApprovalRESOLUTION NO.OB -0048
A RESOLUTION OF THE OVERSIGHT BOARD OF
THE SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY APPROVING THE
EXECUTION OF A LOAN AND REIMBURSEMENT
AGREEMENT BETWEEN THE CITY OF ORANGE
AND THE SUCCESSOR AGENCY TO THE
ORANGE REDEVELOPMENT AGENCY
PROVIDING FOR THE CITY IN ITS CAPACITY AS
THE HOUSING SUCCESSOR TO ADVANCE LOW
AND MODERATE INCOME HOUSING ASSET
FUNDS TO THE SUCCESSOR AGENCY IN THE
AMOUNT OF $1,438,924 FOR REMITTANCE TO
THE COUNTY AUDITOR - CONTROLLER.
WHEREAS, the Successor Agency to the Orange Redevelopment Agency (the
Successor Agency ") is required to undertake a number of actions pursuant to Part 1.85 of
the Community Redevelopment Law ( "Part 1.85 "), commencing with Section 34170 of the
California Health and Safety Code ( "HSC "), including winding down the affairs of the
former Redevelopment Agency of the City of Orange (the "Former Agency ") pursuant to
HSC Section 34177(h); and
WHEREAS, on January 24, 2012 the City Council adopted Resolution No. 10626
electing that the City would retain the housing assets and functions previously performed by
the Former Agency; and
WHEREAS, the City, in its capacity as the housing successor to the Former Agency,
prepared a Housing Asset Transfer Form to obtain DOF approval of the housing assets of the
Former Agency to be transferred to the City and on August 29, 2012 received DOF's
approval; and
WHEREAS, the transferred housing assets and the program income derived from
those assets are held by the City in a separate Low and Moderate Income Housing Asset
Fund ( "Housing Asset Fund ").
WHEREAS, on November 8, 2013, DOF ordered the Orange County Auditor -
Controller to withhold $1,438,924 from the Successor Agency's January 2014 allocation of
RPTTF to collect a portion of a disputed $7,145,234 loan to the Serrano Woods affordable
housing project; and
WHEREAS, the Successor Agency's obligation under Health & Safety Code
34179.6 to remit to the Orange County Auditor - Controller the amount finally determined in
the pending litigation as available for distribution to the taxing agencies is an obligation
imposed by State law and is therefore an enforceable obligation pursuant to Health & Safety
Code 34171(d)(1)(C); and
WHEREAS, pursuant to Health and Safety Code Section 34173(h), the city that
authorized the creation of a redevelopment agency may loan or grant funds to a successor
agency for administrative costs, enforceable obligations, or project - related expenses at the
city's discretion, but the receipt and use of these funds shall be reflected on the Recognized
Obligation Payment Schedule ( "ROPS ") and therefore is subject to the approval of the
Oversight Board; and
WHEREAS, the City, in its capacity as housing successor to the Former Agency,
desires to loan Housing Asset Funds to the Successor Agency in the amount of $1,438,924
City Loan ") for payment of a portion of the disputed $7,145,234 demand by DOF; and
WHEREAS, subject to Oversight Board approval, the Successor Agency may enter
into this Loan Agreement with the City pursuant to the authority granted by the Dissolution
Act; and,
WHEREAS, the City and the Successor Agency have determined that entering into
this Loan and Reimbursement Agreement is in the best interests of the City and the
Successor Agency.
NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE ORANGE REDEVELOPMENT AGENCY, HEREBY FINDS,
DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part of
this Resolution.
Section 2. This Oversight Board hereby approves the execution of a Loan and
Reimbursement Agreement between the Successor Agency and the City in its capacity as the
Housing Successor, substantially in the form attached hereto as Exhibit A.
Section 3. The members of this Oversight Board and the staff of the Successor
Agency are hereby authorized, jointly and severally, to do all things which they may deem
necessary or proper to effectuate the purposes of this Resolution and the Loan and
Reimbursement Agreement.
Section 4. The Clerk of the Oversight Board shall certify to the adoption of this
Resolution.
Section 5. This Resolution shall become effective immediately upon its adoption.
2
PASSED AND ADOPTED this 11`" day of December, 2013.
Board to the Successor
AgencylpfAe Orange Redevelopment Agency
ATTEST:
ri
Mary E. rphy,
Clerk of the Oversight Board
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Oversight Board of the Successor Agency to the Orange Redevelopment Agency at a regular
meeting thereof held on the l l day of December, 2013, by the following vote:
AYES: BOARDMEMBERS: Re Christensen, Davert, Buttress, Cavecche, Schulze
NOES: BOARDMEMBERS: None
ABSENT: BOARDMEMBERS: Yarbrough
ABSTAIN: BOARDMEMBERS: None
Mary E. rphy,
Clerk of t e Oversight Board