SA Resolution 2012-010RESOLUTION NO. SA 2012 - 010
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS 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 City Council of the City of La Quinta ( "City Council" or "City,"
as applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project
Area No. 1 ( "Project Area No. 1" or "Project Area No. 1 Redevelopment Plan," as
applicable) on November 29, 1983, by Ordinance No. 43, as amended on December
20, 1994, by Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on
March 16, 2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ( "Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; 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
Resolution No. SA 2012 -010
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 2 of 5
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
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
Resolution No. SA 2012 -010
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 3 of 5
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
Sections 34176(a) and 34177(8) 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 City of La Quinta Acting as the
Successor Agency to the 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 Successor Agency 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 Successor Agency 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 Oversight Board.
Resolution No. SA 2012 -010
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 4 of 5
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
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 Successor Agency 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 Successor Agency 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 Successor Agency 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 341.7.6(b)(1) for implementation of the
WSA rehabilitation project, in accordance with .the ROPS schedule. The Successor
Agency 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 Successor Agency hereby declares that it would
have adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Resolution No. SA 2012 -010
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 5 of 5
PASSED, APPROVED, AND ADOPTED at the meeting of the City of La
Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency
held this 7th of August, 2012, by the following vote:
AYES: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON ADOL W, Ma r
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment
Agency
ATTEST:
SUSAN MAYSELS, IntVim Secretary
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
W ILLIAM H. IHRKE, for the Successor Agency Counsel
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency