OBRES 2012-014RESOLUTION NO. OB 2012 -014
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENGY TO LA QUINTA REDEVELOPMENT
AGENCY 1) ADOPTING A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY
2013 THROUGH JUNE 2013; 2) APPROVING THE
CONTINUED IMPLEMENTATION OF THE WASHINGTON
STREET APARTMENTS REHABILITATION PROJECT, 3)
APPROVING THE EXPENDITURE OF $3,006,360 IN
2004 TAX - EXEMPT HOUSING BOND PROCEEDS AND
$15,523,220 OVER THE COURSE OF
IMPLEMENTATION, AND $2,450,250 IN 2004 TAX -
EXEMPT HOUSING BOND PROCEEDS DURING THE
JANUARY — JUNE 2013 ROPS PERIOD, 4) CONFIRMING
THAT THE HOUSING BOND PROCEEDS ARE HOUSING
ASSETS THAT ARE TO BE TRANSFERRED TO THE LA
QUINTA HOUSING AUTHORITY PURSUANT TO HEALTH
& SAFETY CODE SECTION 34176(b) IN ACCORDANCE
WITH THE ROPS SCHEDULE
WHEREAS, the Oversight Board of the Successor Agency to La Quinta
Redevelopment Agency ( "Oversight Board" as applicable) has been established to
direct the Successor Agency to take certain actions to wind down the affairs of the
Redevelopment Agency in accordance with the California Health and Safety Code; and;
and
WHEREAS, the La Quinta Redevelopment Agency ( "Agency ") was engaged
in activities to execute and implement the Project Area No. 1 Redevelopment Plan
and the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment
Plans ") pursuant to the provisions of the California Community Redevelopment Law
(Health and Safety Code § 33000, et seq.) ( "CRL "); and
WHEREAS, as part of the 2011 -12 State budget bill, the California
Legislature enacted and the Governor signed, companion bill ABx1 26 requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1
27 was filed in the California Supreme Court by the California Redevelopment
Association, the League of California Cities, and two individual cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and
Resolution No. OB 2012 -o1N
Adoption of Recognized Obligation Payment Schedule
Adopted: August 8, 2012
Page 2 of 5
WHEREAS, Health and Safety Code Section 34169 requires successor
agencies to prepare and adopt a "Recognized Obligation Payment Schedule" that
lists all obligations of the former redevelopment agency that are enforceable within
the meaning of subdivision (d) of Section 34167 for the period of January 2013
through June 2013; and
WHEREAS, in fulfilling its purpose of increasing, improving, and preserving
the supply of low- and moderate - income housing in the City, in 2008 the La Quinta
Redevelopment Agency ( "LQRDA ") expended tax - exempt bond proceeds to acquire
a 72 -unit very low- income senior and disabled adult affordable housing complex
located on the east side of Washington street, at Hidden River Road. and commonly
known as the Washington Street, Apartments ("WSA"); and
WHEREAS, the LQRDA acquired the WSA with the intent of expending bond
proceeds from a 2004 tax - exempt housing bond issuance to substantially
rehabilitate the development, including the construction of additional units to avoid
the long -term displacement of any of the tenants at the development, for purposes
of preserving the units and affordability of the WSA; and
WHEREAS, the WSA was developed in the 1970s, with assistance from the
U.S. Department of Agriculture, Rural Development Division ( "RD "), and is subject
to an outstanding RD loan ( "RD Loan "); and
WHEREAS, after an extensive application process, during which the LQRDA
represented and committed to RD that it would complete the planned rehabilitation;
RD permitted the LQRDA to assume the RD Loan; and
WHEREAS, in June 2011, to ensure that the rehabilitation of the WSA would
continue without delay in the event of the dissolution of the LQRDA, the LQRDA
added the Authority to the title of the WSA; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012 -002, affirmatively electing to be the "successor agency" to
the LQRDA; and
WHEREAS, on January 17, 2012, the Authority adopted Housing Authority
Resolution No. 2012 -02, electing to be the "housing successor" to the LQRDA; and
WHEREAS, on April 18, 2012, the Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency adopted Oversight Board Resolution No.
2012 -008 affirming that certain housing properties, including the WSA, are
"housing assets" of the LQRDA, as that term is used in Health and Safety Code
Resolution No. OB 2012 -01q
Adoption of Recognized Obligation Payment Schedule
Adopted: August 8, 2012
Page 3 of 5
Sections 34176(a) and 34177(g) and approving the transfer of the "housing
assets" to the Authority; and
WHEREAS, Health and Safety Code Section 34177, which contains a
comprehensive list of successor agency obligations, provides in subdivision (i),
"bond proceeds shall be used for the purposes for which bonds were sold unless
the purposes can no longer be achieved "; and
WHEREAS, the bond documents for the 2004 tax - exempt housing bonds and
2011 taxable housing bonds expressly state that the bonds were issued to finance
low- and moderate - income housing projects benefiting the former LQRDA's project
areas; and
WHEREAS, the purpose for which the bonds were sold may still be achieved,
through the rehabilitation and improvement of the WSA.
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of the
Successor Agency to La Quinta Redevelopment Agency, as follows:
SECTION 1 . Recitals The Recitals set forth above are true and correct and
incorporated herein by reference.
SECTION 2 Adoption of a Recognized Obligation Payment Schedule In order to
enable the City of La Quinta as Successor Agency to strictly comply with ABx1 26,
and based on the Recitals set forth above, the Oversight Board hereby adopts the
Schedule attached hereto as Exhibit A as the Recognized Obligation Payment
Schedule for the period of January 2013 through June 2013. Pursuant to Health &
Safety Section 341 73(e), the Successor Agency's liability, including, but not
limited to, its liability for the obligations on the attached schedule is limited to the
total sum of property tax revenues it receives pursuant to Part 1.85 of AB x1 26.
SECTION 3 . Implementation The Oversight Board hereby authorizes and directs
the Executive Director to take any action and execute any documents necessary to
implement this Resolution, and further authorizes the Executive Director to forward
the Recognized Obligation Payment Schedule to the Department of Finance, State
Controller, County Administrative Officer, and County Auditor - Controller.
SECTION 4. The purposes for which the 2004 tax - exempt housing bonds and
2011 taxable housing bonds were issued - to finance low- and moderate - income
housing in the City - can still be achieved. The bond documents, including the
Resolution No. OB 2012 -ply
Adoption of Recognized Obligation Payment Schedule
Adopted: August 8, 2012
Page 4 of 5
indenture, the official statement, the bond purchase agreement, and other related
documents for the 2004 and 2011 housing bond issuances require that the net
bond proceeds be used for affordable housing.
SECTION 5. The Oversight Board hereby approves the continued implementation of
the WSA rehabilitation project, and consents to the Authority's authorization and
direction to its Executive Director to administer and implement the WSA
rehabilitation project, including, without limitation, entering into the agreements
necessary to affect the same.
SECTION 6. The Oversight Board hereby approves the expenditure of $3,006,360
in 2004 tax - exempt housing bond proceeds and $15,523,220 in 2011 taxable
housing bond proceeds (collectively, the "WSA Bond Proceeds ") to fund the WSA
rehabilitation project over the course of the implementation; and $2,450,250 in
2004 tax - exempt bond proceeds during the January — June 2013 ROPS period.
SECTION 7. The Oversight Board hereby reconfirms that the 2004 tax - exempt
housing bond proceeds and the 2011 taxable housing bond proceeds are "housing
assets" and that the WSA Bond Proceeds are to be transferred to the Authority
pursuant to Health & Safety Code Section 34176(b)(1) for implementation of the
WSA rehabilitation project, in accordance with the BOPS schedule. The Oversight
Board further confirms that the 2004 and 2011 housing bond proceeds are funds
that are encumbered by an enforceable obligation to build or acquire low- and
moderate - income housing as defined in the Community Redevelopment Law, and
therefore the funds meet the definition of the term "Housing asset" set forth in the
Department of Finance's Questions and Answers section of its website, and further
meeting the definition of "Housing asset" proposed by DOF to be codified as Health
& Safety Code Section 34176(d)(2) in the Redevelopment Agencies Dissolution
Clean -up and Liquid Asset Provisions, May Revision.
SECTION 8 . Severability If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight' Board' hereby declares, that it would have
adopted this Resolution irrespective of the 'invalidity of any particular portion
thereof.
SECTION 9 . The Oversight Board Secretary shall certify to the adoption of this
Resolution.
Resolution No. OB 2012 -014
Adoption of Recognized Obligation Payment Schedule
Adopted: August B, 2012
Page 5 of 5
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the Successor Agency to La Quinta Redevelopment Agency held this 8th of
August, 2012, by the following vote, to wit:
AYES: Board Members Ellis, Marshall, Maysels, Nelson, Osborne and
Chairperson Pena
NOES: None.
ABSENT: Board Member McDaniel
ABSTAIN: None.
JOW1a" NA, &irperson
Oversi R g t Boar of the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
_� 1
H U DA i