RES-OB-0011 Due Dilgence Review of Low & Moderate Income Housing FundRESOLUTION NO. OB -0011
A RESOLUTION OF THE OVERSIGHT BOARD OF
THE SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY APPROVING THE
DUE DILIGENCE REVIEW OF THE LOW AND
MODERATE INCOME HOUSING FUND
CONDUCTED PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34179.5 AND TAKING
CERTAIN OTHER ACTIONS IN CONNECTION
THEREWITH.
RECITALS:
WHEREAS, pursuant to Health and Safety Code Section 34175(b) and the California
Supreme Court's decision in California Redevelopment Association, et al. v. Ana
Matosantos, et al. (53 CalAth 231(2011)), on February 1, 2012, all assets, properties,
contracts, leases, books and records, buildings, and equipment of the former Orange
Redevelopment Agency transferred to the control of the Successor Agency to the Orange
Redevelopment Agency (the "Successor Agency ") by operation of law.
WHEREAS, Health and Safety Code Section 34179.5 requires the Successor Agency
to employ a licensed accountant, approved by the County Auditor - Controller, to conduct a
due diligence review to determine the unobligated balances available for transfer to taxing
entities.
WHEREAS, on July 18, 2012, the Successor Agency received written verification by
the County Auditor - Controller approving Lance, Soll & Lunghard, LLP ( "LSL ") as the Due
Diligence Reviewer for the Successor Agency.
WHEREAS, on August 15, 2012, the Oversight Board approved a contract with LSL
to conduct the DDR for the Successor Agency by adoption of Resolution No. OB -0009.
WHEREAS, Health and Safety Code Section 34179.6 requires the Successor Agency
to submit the results of the review conducted pursuant to Section 34179.5 for the Low and
Moderate Income Housing Fund (the "LMIHF ") and specifically the amount of cash and
cash equivalents determined to be available for allocation to taxing entities (the "Due
Diligence Review ") to the Successor Agency's Oversight Board (the "Oversight Board ") for
the Oversight Board's review and approval.
WHEREAS, pursuant to Health and Safety Code Sections 34179.6 and 341800), the
Successor Agency submitted to the Oversight Board, the County Administrative Officer, the
County Auditor - Controller, the State Controller and the Department of Finance ( "DOF") the
Due Diligence Review and a copies of the Recognized Obligation Payment Schedule
ROPS ") was transmitted on September 27, 2012.
WHEREAS, pursuant to Health and Safety Code Section 34179.6(b), upon receipt of
the Due Diligence Review, and at least five business days before the Oversight Board
considers the approval of the Due Diligence Review, the Oversight Board must hold a public
comment session (the "Public Comment Session ") at which time the public has an
opportunity to hear and be heard on the results of the Due Diligence Review and at which
time the Oversight Board considers the opinions, if any, offered by the county auditor -
controller on the results of the Due Diligence Review.
WHEREAS, on October 3, 2012, the Oversight Board held the Public Comment
Session pursuant to Health and Safety Code Section 34179.6 (b).
WHEREAS, pursuant to Health and Safety Code Section 34179.6(c), the Oversight
Board must review, approve and transmit to DOF and the county auditor - controller, the
determination of the amount of cash and cash equivalents in the LMIHF available for
disbursement to taxing entities as determined according to the method provided in Section
34179.5. Section 34179.6(c) provides that the Oversight Board may adjust any amount
provided in the Due Diligence Review to reflect additional information and analysis.
WHEREAS, Section 34179.6(c) empowers the Oversight Board to authorize the
Successor Agency to retain assets or funds identified in subparagraphs (B) to (E), inclusive,
of paragraph (5) of subdivision(c) of Section 34179.5. If the Oversight Board makes this
authorization, the Oversight Board must identify to DOF the amount of funds authorized for
retention, the source of those funds, and the purposes for which those funds are being
retained. The determination and authorization to retain funds and assets shall be subject to
the review and approval of DOF pursuant to Health and Safety Code Section 34179.6(d).
WHEREAS, pursuant to Health and Safety Code Section 34179.6(c), the Oversight
Board desires to approve the Due Diligence Review and to authorize the Successor Agency
to retain the assets and funds, if any, identified pursuant to subparagraphs (B) to (E),
inclusive, of paragraph (5) of subdivision(c) of Section 34179.5, as documented in the Due
Diligence Review.
NOW, THEREFORE, the Oversight Board of the Successor Agency to the
Orange Redevelopment Agency does hereby resolve as follows:
Section 1. The above recitals are true and correct and are a substantive part of
this Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety Code Section
34179.6(c).
Section 3. The Oversight Board hereby approves the Due Diligence Review
subject to the following adjustments:
A. Retention of Assets that are not cash or cash equivalents in the amount of
46,148.12 by the Successor Agency;
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B. Retention of Amounts that are legally or contractually dedicated or restricted
of an enforceable obligation in the amount of $145,378.09 by the Successor Agency;
C. Retention of payments made on July 12, 2012 to the County Auditor -
Controller in the amount of $1,319,778.49 by the Successor Agency;
D. Adjustment to delete the amount of $7,145,234 pursuant to Health and Safety
Code Section 34179.6(c); and,
E. Remit the resulting amount of $12,427,921.49 at such time requested by the
County Auditor - Controller.
Section 4. For the purposes of providing for the transfer of housing functions and
assets pursuant to Health and Safety Code Sections 34176 and 34181(c), the Oversight Board
hereby authorizes the Successor Agency to retain the assets and funds, if any, identified in
subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision(c) of Section 34179.5, as
documented in the Due Diligence Review, which provides the amount of funds authorized
for retention, the source of those funds, and the purposes for which those funds are being
retained.
Section 5. The staff of the Successor Agency is hereby directed to transmit to
DOF and the County Auditor - Controller written notice and information regarding the actions
taken by this Resolution and specifically the determination of the amount of cash and cash
equivalents in the LMIHF that are available for disbursement to taxing entities as determined
according to the method provided in Health and Safety Code Section 34179.5. Such notice
to DOF shall be provided by electronic means and in a manner of DOF's choosing.
Section 6. The staff and the Board of the Successor Agency are hereby
authorized and directed, jointly and severally, to execute and record such documents and
instruments and to do any and all other things which they may deem necessary or advisable
to effectuate this Resolution and any such actions previously taken are hereby ratified.
ADOPTED this l O day of October, 2012.
hai ern of the Oversight Board to theJesofAgencyoftheOrangeRedevelopment
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ATTEST:
Ih Z
Robert Zo ado
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 10 day of October, 2012, by the following vote:
AYES: BOARDMEMBERS: Christensen, Davert, Buttress, Cavecche, Schulze, Yarbrough
NOES: BOARDMEMBERS: None
ABSENT: BOARDMEMBERS: Remland
ABSTAIN: BOARDMEMBERS: None
j 24 /-
Robert 2oroao
Clerk of the Oversight Board
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