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AGENDA BILL Agenda Item No. 5(0) Date: October 2, 2012 To: From: El Cerrito Redevelopment Agency Successor Agency Lori Trevifio, Economic Development Manager Hilde Myall, Housing Program Manager Subject: Karen Tiedemann, Legal Counsel Bylaws for El Cerrito Redevelopment Agency Successor Agency and Update on Implementation of the Dissolution Act and Trailer Bill ACTION REQUESTED Adopt a Successor Agency resolution approving bylaws for the Successor Agency consistent with AB 1484. BACKGROUND ABx1 26 ("Dissolution Act") dissolved the El Cerrito Redevelopment Agency ("RDA") and established the El Cerrito Redevelopment Agency Successor Agency ("Successor Agency") on February 1, 2012. In June, 2012, AB 1484 ("Trailer Bill") was enacted, which made numerous changes to the Dissolution Act, requiring and/or allowing the Successor Agency to take certain actions. SUCCESSOR AGENCY LEGAL STATUS The Trailer Bill attempted to clarify the legal status of the Successor Agency. Most importantly, it stated that the Successor Agency and the City are separate legal entities, although it did not address the relationship between them. Other clarifications included: • The City is not responsible for the former RDA's liabilities, as they automatically transferred to the Successor Agency upon RDA dissolution. • The Successor Agency can only participate in redevelopment activities to the extent it is completing work on enforceable obligations. • The Successor Agency is subject to the Brown Act. • The City may not reverse its election to serve as the Successor Agency. • The Successor Agency is able to file for bankruptcy as a local public entity. • Creditors of the Successor Agency, DOF and affected taxing entities have standing to file suit to compel a Successor Agency to adopt a ROPS or face penalties. • The Successor Agency is required to cause an annual audit of its financial transactions and records. • The Successor Agency is required to dispose of all assets and terminate its existence within one year of its final debt payment. The Successor Agency is authorized to: • Hold reserves when the next allocation from the will be insufficient to pay bond debt obligations; ---PAGE BREAK--- Agenda Item No. 5(0) • Create enforceable obligations as needed to conduct its wind-down activities, such as hiring staff, consultants or legal counsel, or procuring insurance; • Enter into contracts to comply with enforceable obligations that existed prior to June 28, 2011; • Enter into a contract (with Oversight Board approval) with the City to fund shortfalls for Successor Agency administrative costs, enforceable obligations, or project-related expenses; • List on its ROPS certain costs separate from its administrative cost allowance. Because the Successor Agency is now considered a separate legal entity it is important that basic operating procedures be established for the Successor Agency. Attachment 1 to this report is a Successor Agency Resolution for the Board's consideration, approving bylaws, which are Exhibit A to the Resolution, and provide those basic rules and procedures consistent with the provisions of the Trailer Bill. TRUE UP PAYMENT As the Board is aware, the Trailer Bill required a True Up Payment by the Successor Agency that was due on July 12, 2012. The True Up Payment for El Cerrito, which was calculated by the CAC based on the methodology specified by the Department of Finance was $1,756,794.67. The Successor Agency did not make the payment, but instead filed suit in Sacramento Superior Court challenging the State's authority to redistribute tax increment and disputing the methodology specified by DOF and used by the CAC to calculate the payment. While DOF representatives have publicly claimed that the dispute has been resolved and stated that penalties will not be assessed, it is unclear how DOF came to these conclusions and the litigation remains active at this time. ROPSIII Subsequent to review by the Successor Agency at its August 21, 2012 meeting, ROPS III was amended to include an obligation of $30,000 for completion of the Due Diligence Review described later in this report. The Oversight Board approved ROPS III for the period January to June 2013, including this additional obligation, and it was submitted to DOF, the CAC and the County Administrator for consideration, as required. Information regarding the amount of funds that will be available to make the payments approved on ROPS III has not yet been made available by the CAC. HOUSING SUCCESSOR AND HOUSING ASSET TRANSFERS The Trailer Bill significantly modified treatment of affordable housing assets and obligations under the Dissolution Act. In particular, the definition of a Housing Asset is clarified to include real property purchased for affordable housing, encumbered funds, receivables, and amounts that were owed to the Low and Moderate Income Housing Fund ("LMIHF") from the RDA for funds borrowed to pay the Supplemental Educational Revenue Augmentation Fund ("SERAF") in prior years. These SERAF- related changes were reflected in the Successor Agency's ROPS III, approved by the Oversight Board to the Successor Agency ("Oversight Board"). The Trailer Bill also proscribed a process for DOF review of the transfer of Housing Assets from the RDA to the City as Housing Successor, which was completed on Page2 ---PAGE BREAK--- Agenda Item No. 5(0) September 1, 2012. A copy of the Housing Assets List and DOF determination letter are Attachments 2 and 3 to this report. AGREED UPON PROCEDURES The Dissolution Act originally required that the County Auditor-Controller ("CAC") to complete an agreed-upon procedures ("AUP") to review the activities of the RDA while in suspension, in order to determine its enforceable obligations prior to certifying the Successor Agency's first Recognized Obligations Payment Schedule ("ROPS"). Due to the delay in dissolution of the RDA by the CRA v. Matosantos litigation, the timing of the AUP and first ROPS were reversed. The Trailer Bill removed the requirement of the CAC certifying the first ROPS and delayed the completion of the AUP until October 1, 2012. Once finalized by the CAC, the AUP will be provided to the Successor Agency. DUE DILIGENCE REVIEW The Trailer Bill added a requirement of the Successor Agency to hire a licensed accountant, to be approved by the CAC, to complete a due diligence review ("DDR") of the dissolution of the RDA and establishment of the Successor Agency, including disposition of real property and use of RDA funds. The process includes simultaneous consideration of the Review by the Oversight Board, the County administrative officer, the CAC, and the DOF. Review of the LMIHF is to be completed by October 1, 2012 and all other RDA funds by December 15,2012. Shortly after enactment of the Trailer Bill, the Government Accounting and Audit Committee ("GAAC") advised certified public accounting firms not to engage this DDR as it doesn't follow professional accounting standards. The GAAC worked with the DOF and State Controller's Office on procedures that will meet accounting standards, which were available at the end of August. The DOF advised successor agencies that due to the delays in determining the procedures, penalties will not be levied for failing to complete the LMIHF portion of the DDR by October 1. The Successor Agency has engaged the licensed accounting firm MGO and the DDR for the LMIHF is underway. The intent of the DDR is to determine if any funds or assets should be returned to the CAC for distribution to taxing entities. Of particular concern are provisions of the Trailer Bill that appear to exclude from the definition of e~forceable obligations certain items that were considered enforceable under the Dissolution Act, thereby retroactively disallowing payments made by the RDA prior to dissolution, even though such payments were valid at the time they were made. Should the Successor Agency comply with any required return of funds and assets, the result of the DDR would be a Finding of Completion by the DOF that would allow the Successor Agency to retain RDA assets for redevelopment purposes. Executive Director Attachments: 1. Successor Agency Resolution 2012-XX, adopting bylaws of the Successor Agency 2. Housing Asset List 3. DOF determination letter for Housing Asset List Page 3 ---PAGE BREAK--- Agenda Item No. 5(D) Attachment 1 SUCCESSOR AGENCY RESOLUTION NO. 2012-XX RESOLUTION OF THE EL CERRITO SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY ADOPTING BYLAWS OF THE SUCCESSOR AGENCY WHEREAS, Health and Safety Code Section 34 73 establishes that El Cerrito Redevelopment Agency Successor Agency ("Successor Agency") is on entity separate from the City of El Cerrito; and WHEREAS, the City Council of the City of El Cerrito serves as the governing body of the Successor Agency; and WHEREAS, to assure the orderly process and function of the Successor Agency, it is desirable for the Successor Agency to adopt bylaws setting forth the operating procedures of the Successor Agency; and WHEREAS, the Successor Agency staff has prepared proposed bylaws, a copy of which is attached to this Resolution as Exhibit A and incorporated herein by this reference. NOW THEREFORE, BE IT RESOLVED that the El Cerrito Redevelopment Agency Successor Agency hereby approves the "Bylaws of the El Cerrito Redevelopment Agency Successor Agency" in the form attached hereto as Exhibit A. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon adoption. PAS SED AND ADOPTED by the El Cerrito Redevelopment Agency Successor Agency, California, this 2nd day of October, 2012, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Cheryl Morse Successor Agency Secretary William C. Jones, III Successor Agency Chair ---PAGE BREAK--- EXHIBIT A BYLAWS OF THE EL CERRITO REDEVELOPMENT AGENCY SUCCESSOR AGENCY ARTICLE I - THE SUCCESSOR AGENCY AND CITY COUNCIL Section 1. Name. The official name of the successor agency shall be the "El Cerrito Redevelopment Agency Successor Agency." Section 2. Office. The main office of the Successor Agency shall be at 10890 San Pablo A venue, El Cerrito, California, or such other location in the City of El Cerrito that then serves as the office of the City Manager of the City of El Cerrito. Section 3. Powers. The powers of the Successor Agency are vested in its members then in office, as set forth in Section 4 below. The members of the Successor Agency shall be referred to as "Successor Agency Boardmembers," and the members sitting as the governing body of the Successor Agency shall be referred to as the "Successor Agency Board." The Successor Agency, acting through the Successor Agency Board, shall exercise the powers of a successor agency in accordance with the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) and all other applicable laws. The Successor Agency Board may delegate such powers as are permitted by law, as appropriate within a suitable framework. Section 4. Members. The members of the El Cerrito City Council from time to time shall serve as the Successor Agency Boardmembers and shall constitute the Successor Agency. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Successor Agency shall be a Chair, Vice- Chair, Treasurer, Secretary and Executive Director. In addition, the City Attorney of the City of El Cerrito shall serves as Successor Agency Counsel. Section 2. Additional Officers and Assistant Officers. The Successor Agency Board may, by resolution, appoint such additional officers, and assistant officers, establish their terms of office, and define their duties as the Successor Agency determines necessary or desirable. Section 3. Chair. The Chair shall be the Mayor of the City of El Cerrito, and shall preside at all meetings of the Successor Agency Board. Subject to applicable statutory restrictions, the Chair shall be entitled to vote on all matters coming before the Successor Agency Board. The Chair may execute all documents of whatever description on the Successor Agency's behalf upon prior authorization of the Successor Agency Board. ---PAGE BREAK--- Section 4. Vice-Chair. The Vice-Chair shall be the Vice Mayor of the City Council of the City of El Cerrito. The Vice-Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. In case of the resignation or death of the Chair, the Vice-Chair shall perform such duties as are imposed on the Chair until such time as a new Mayor of the City Council of the City of El Cerrito is elected or appointed, at which time the new Mayor shall become Chair. Subject to applicable statutory restrictions, the Vice Mayor shall be entitled to vote on all matters coming before the Successor Agency Board. The Vice Mayor may execute all documents of whatever description on the Successor Agency's behalf upon prior authorization of the Successor Agency Board. Section 5. Treasurer. The Treasurer shall be the Finance Director of the City of El Cerrito. The Treasurer shall be responsible for ascertaining that all funds of the Successor Agency are properly accounted for and are deposited in the name of the Successor Agency in such accounts and financial instruments as are permitted by law and consistent with the investment guidelines and procedures of the City of El Cerrito, which are hereby adopted as the investment guidelines and procedures of the Successor Agency. All checks issued by the Successor Agency shall be signed and/or countersigned by a person authorized to sign checks on behalf of the City of El Cerrito. All persons so authorized shall be bonded for faithful performance of duty in the same manner as the may be bonded in their comparable capacity on behalf of the City of El Cerrito. Section 6. Secretary. The Secretary shall be the City Clerk of the City of El Cerrito. The Secretary shall keep the records of the Successor Agency Board and record all votes, and shall keep a record of the proceedings to be kept for such purposes, and shall perform all duties incident to said office. The Secretary shall keep in safe custody the seal of the Successor Agency and shall have the power to affix such seal to all contracts and instruments authorized to be executed by the Successor Agency. Section 7. Executive Director. The Executive Director shall be the City Manager of the City of El Cerrito. The Executive Director shall serve as administrative officer of the Successor Age.ncy, shall be directly responsible to the Successor Agency Board, and, subject thereto, shall have complete control of the responsibility for the execution of the Successor Agency's policies, the administration of its affairs, and the fulfillment of such other duties as from time to time the Successor Agency may impose. The Executive Director may execute all documents of whatever description upon prior authorization of the Agency Board or as otherwise required for the intended operation of the Successor Agency's powers, and may designate in writing a deputy to execute any such documents. The Executive Director shall have authority to enter into contracts on behalf of the Successor Agency in amounts not to exceed $25,000 without the prior approval of the Successor Agency Board, provided such contracts comply with the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) Section 8. Additional Duties. The officers of the Successor Agency shall perform such other duties and functions as may from time to time be required by the Successor Agency, these Bylaws, other rules or regulations of the Successor Agency, and applicable law. No Successor Agency Boardmember shall be eligible to fill the office of Executive Director, Treasurer or Secretary except as a temporary appointee. ---PAGE BREAK--- Section 9. Successor Agency Personnel. With the prior authorization of the Successor Agency Board and subject to applicable law, the Successor Agency may from time to time employ or retain such personnel as it deems necessary to exercise its powers, duties, and functions as prescribed by applicable law. ARTICLE III - MEETINGS Section 1. Meeting Time and Place. a. All meetings of the Successor Agency Board shall be open and public, and all persons shall be permitted to attend any meeting of the Successor Agency Board, except that closed sessions may be held when permitted by law. b. The time and place of regular meetings of the Successor Agency Board shall be the same as the time and place of the regular meetings of the City Council of the City of El Cerrito; provided, however, that if there is no matter scheduled before the Successor Agency Board at the time of a regular meeting of the City Council of the City of El Cerrito, the regular meeting of the Successor Agency Board otherwise scheduled for such time shall be deemed cancelled. c. The time, place and manner of calling special and emergency meetings and adjourning or continuing regular meetings of the Successor Agency Board shall be in accordance with the Ralph M. Brown Act (Government Code Section 54950 et seq.). Section 2. Agendas and Conduct of Meetings. The rules, regulations, procedures, and requirements for the noticing, agendizing and conduct of the regular and special meetings of the Successor Agency Board (including, without limitation, the rules, regulations, procedures and requirements for allowing public comment in accordance with Government Code Section 54934.3(b), the requirements for a quorom and for the required number of Successor Agency Boardmembers to take action, and the order and manner for conducting business) shall be the same as the rules, regulations, procedures, and requirements for the regular and special meetings of the City Council of the City of El Cerrito. ARICLE IV - GENERAL PROVISIONS Section 1. Fiscal Year. The fiscal year of the Successor Agency shall be the same as the fiscal year of the City ofEl Cerritq. Section 2. Compensation. Successor Agency Boardmembers shall serve without compensation and shall receive no reimbursement for costs. Section 3. Amendments to Bylaws. Any of these Bylaws may be amended or repealed and new Bylaws may be adopted with the approval of a majority of the members of the Successor Agency Board at a regular or special meeting. Dated: October 2, 2012 Adopted by Resolution No. 2012XX ---PAGE BREAK--- Former Redevelopment Agency: El Cerrito Redevelopment Agency Successor Agency to the Former Redevelopment Agency: Successor Agency to the former El Cerrito Redevelopment Agency Entity Assuming the Housing Functions of the former Redevelopment Agency: City of El Cerrito Entity Assuming the Housing Functions Contact Name: Hilde Myall Title Housing Program Manager Phone (510) 215-4358 [EMAIL REDACTED] Entity Assuming the Housing Functions Contact Name: Lori Trevino Title Economic Development Manage Phone (510) 215-4383 [EMAIL REDACTED] The following Exhibits noted with an X in the box are included as part of this inventory of housing assets: Exhibit A - Real Property x Exhibit B- Personal Property Exhibit C - Low-Mod Encumbrances x Exhibit D - Loans/Grants Receivables x Exhibit E - Rents/Operations Exhibit F- Rents x Exhibit G - Deferrals x Prepared By: Hilde Myall Date Prepared: 1-Aug-12 E-Mail Address E-Mail Address All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list. DEPARTMENT OF FINANCE HOUSING ASSETS LIST ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484 (Health and Safety Code Section 34176) Agenda Item No. 5(D) Attachment 2 ---PAGE BREAK--- Exhibit A - Real Property Item # Carrying Value of Asset Total square footage Is the property encumbered by a low- mod housing covenant? Source of low- mod housing covenant b/ Date of transfer to Housing Successor Agency Construction or acquisition cost funded with Low-Mod Housing Fund monies Construction or acquisition costs funded with other RDA funds Construction or acquisition costs funded with non- RDA funds Date of construction or acquisition by the former RDA Interest in real property (option to purchase, easement, etc.) 1 $3,950,000 Land area is 41,985 sf (.96 acres). Square footage of proposed development is 59,779. See Exhibit C, Item 3: Pursuant to the terms of the Loan Agreement, California Redevelopment Law regulatory restrictions for affordable rental housing will be recorded on the subject property at the time the property is conveyed to the developer. California Redevelopment Law February 1, 2012, pursuant to City Council Resolution No.2012-04, when City elected to retain housing functions. Note: This property was deeded to the City on March 22, 2011. $2,130,000 for land acquisition; $40,000 for developer loan agreement (see Exhibit C, Item $1,820,000 of tax-exempt bond proceeds for land acquisition; $310,000 in requested to fund developer loan agreement (See Exhibit C, Item All other proposed financing per developer proposal: $2,000,000 CDBG; $2,501,791 HOME; $1,200,000 MHSA; $630,000 AHP; $11,071,287 LIHTC equity; $1,017,031 Private financing; $707,378 HUD Section 8 Mortgage. TDC: $23,427,486 1-May-09 fee simple ownership 2 $0 Development contains 158 units of mixed- income rental housing and commercial space. Yes. California Redevelopment Law 1-Feb-12 No RDA financial assistance. No RDA financial assistance. No RDA or other public funds. Privately financed development. Estimated property value of $23,459,823. Date of Regulatory Agreement is 11/22/2005. Deed restriction running with the land. 3 $0 Total estimated SF of mixed-use development: 124,257, including 135 rental units and 17,000 sf of commercial space. Yes. California Redevelopment Law placed by Notice. In addition, property has tax credit and state bond indenture deed restrictions recorded by other public agencies. 1-Feb-12 Approximately $3 million of LMIHF funded land acquisition in 1990. In 2003, the RDA sold its interest in the land to the developer and refunded a proportionate share of the sale proceeds to the LMIHF. Information not available. 4% LIHTC, mortgage revenue bonds issued by Contra Costa County, private financing. Date of Notice of Affordability Restrictions is 04/01/1991 Deed restriction running with the land. 4 $0 Development includes senior care facility of 102 units of senior housing and a community center of approximately 5,000sf. Yes. Low-mod housing units covenanted by California Redevelopment Law and state bond indenture. Care facility is licensed by Department of Social Services. 1-Feb-12 A loan of $250,000 of LMIHF monies was made in 1987 and subsequently repaid, per the loan agreement, in 2008. No RDA funds. Land dedication by private entity, mortgage revenue bonds issued by Contra Costa County. Partnership acquired property as of 12/07/1987. Partnership interest in landowner. Listing of associated deeds of trust, development agreements and related documents: Item 3. Disposition and Development Agreement between the Ibex Group and El Cerrito RDA (1990); Assignment and Assumption Agreements (1991, 2003, 2007) e/ Includes any deed of trust, assignment agreement and related documents associated with Housing Assets listed in this Exhibit A; incorporated herein by this reference. Regulatory Agreement for mixed-income housing with commercial space. Notice of Special Housing Affordability Restrictions for low-mod housing Partnership interest in landowner of low-mod housing with associated community center 30%, or 31 units, of the 102 senior housing units are reserved for very- low income senior households. Partnership interest in landowner of land leased for low-mod housing and associated community center. Landowner is St. John's Land Partnership, a partnership between Roman Catholic Welfare Corporation of Oakland and the El Cerrito Redevelopment Agency (transferred to City of El Cerrito as Housing Successor). Address: 6510 Gladys Ave., El Cerrito. APNs: 502-540-002, 502-540-003, 502- 540-001. Per agreement, no less than 20% of rental units or 27 units reserved for very-low income. Real property address: 10848 and 10860 San Pablo Avenue, El Cerrito. Assessor Parcel Numbers: 503-010-003, 503-101- 014 Regulatory Agreement and Declaration o Restrictive Covenants El Cerrito Mill and Lumber (for the Village at Town Center, 10810 San Pablo Avenue, El Cerrito) Notice of Special Housing Affordability Restrictions, El Cerrito Redevelopment Agency, Ibex Group (for the Del Norte Place, 11720 San Pablo Avenue) Square footage reserved for low- mod housing Legal Title and Description 55,176 for 63 dwelling units, including common area and circulation space. 24 rental units are deed-restricted to low- and moderate- income households through the Regulatory Agreement. b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements. Housing Successor Owned Real Property (Section 34176(e)(1)) d/ Affordability covenants associated with Housing Assets listed on Exhibit D or Exhibit E are not seperately listed in this Exhibit A; but are considerd interest in real property of the Housing Successor incorporated herein by this reference. c/ Deeds of trust associated with Housing Assets listed on Exhibit D or Exhibit E are not seperately listed in this Exhibit A; but are considerd interest in real property of the Housing Successor incorporated herein by this reference. City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Type of Asset a/ Real property for low- mod housing w/ commercial space a/ Asset types may include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. ---PAGE BREAK--- Exhibit B - Personal Property Item # Carrying Value of Asset Date of transfer to Housing Successor Agency Acquisition cost funded with Low-Mod Housing Fund monies Acquisition costs funded with other RDA funds Acquisition costs funded with non-RDA funds Date of acquisition by the former RDA 1 2 3 4 NO PERSONAL PROPERTY ITEMS TO REPORT a/ Asset types any personal property provided in residences, including furniture and appliances, all housing-related files and loan documents, office supplies, software licenses, and mapping programs, that were acquired for low and moderate income housing purposes, either by purchase or through a loan, in whole or in part, with any source of funds. City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Type of Asset a/ Description Housing Successor Owned Personal Property (Section 34176(e)(1)) ---PAGE BREAK--- Exhibit C - Low-Mod Encumbrances Item # Contractual counterparty Total amount currently owed for the Enforceable Obligation Is the property encumbered by a low- mod housing covenant? Source of low- mod housing covenant b/ Current owner of the property Construction or acquisition cost funded with Low-Mod Housing Fund monies Construction or acquisition costs funded with other RDA funds Construction or acquisition costs funded with non-RDA funds Date of construction or acquisition of the property 1 Ohlone Gardens, L.P. $ 471,152 Yes California Redevelopmen t Law Ohlone Gardens, L.P. $3,028,848 $0 All other financing: $2,860,000 Prop. 1C Infill Infrastructure Grant; $562,430 MHSA; $500,000 HOPWA; $560,000 AHP; $14,849,454 LIHTC equity. TDC is $24,513,736. Property acquisition date: July 2, 2009. Anticipated commencement of construction: March 2013 2 Eden Housing, Inc. $ 310,000 Pursuant to the terms of the Loan Agreement, California Redevelopment Law regulatory restrictions for affordable rental housing will be recorded on the subject property at the time the property is conveyed to the developer. California Redevelopmen t Law City of El Cerrito as Housing Successor (see Exhibit A, Item $40,000 of predevelopment costs have been disbursed through the Loan Agreement with LMIHF monies. The remaining $310,000 is requested on the ROPS through $310,000 requested on ROPS from All other proposed financing per developer proposal: $2,000,000 CDBG; $2,501,791 HOME; $1,200,000 MHSA; $630,000 AHP; $11,071,287 LIHTC equity; $1,017,031 Private financing; $707,378 HUD Section 8 Mortgage. TDC: $23,427,486 Property acquisition date: May 1, 2009. Anticipated start of construction: March 2015 3 Eden Housing, Inc. $ 25,000 See item 2, above. See item 2, above. See item 2, above. See item 2, above. See item 2, above. See item 2, above. See item 2, above. Loan Agreement for development of Low- Mod housing with commercial space Encumbered Housing Funds for Enforceable Obligations (Section 34176(e)(2)) AND Excess Housing Bond Proceeds Developer deposit held in trust under terms of the Exclusive Negotiating Rights Agreement for development of low- mod housing with commerical space. (Related to item 3, above, and Exhibit A, Item 24-Jun-09 17-May-11 8-Mar-11 Loan Agreement for development of Low- Mod housing with commercial space City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Date contract for Enforceable Obligation was executed Type of housing built or acquired with enforceably obligated funds a/ a/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements. ---PAGE BREAK--- Exhibit D - Loans/Grants Receivables Item # Amount of the loan or grant Date the loan or grant was issued Purpose for which the funds were loaned or granted Are there contractual requirements specifying the purposes for which the funds may be used? Repayment date, if the funds are for a loan Interest rate of loan Current outstanding loan balance 1 $350,000 17-May-11 Predevelopment financial assistance to develop low-mod rental housing. Yes. Disbursed loan amount is to be forgiven except in case of developer default. 3% annual interest on principal disbursed. $40,000 outstanding. $310,000 remaining to be disbursed to borrower, see Exhibit C, Item2. 2 $3,500,000 24-Jun-09 Predevelopment, acquisition and construction financial assistance to develop low-mod rental housing Yes. Annual residual receipt repayment installments starting May 1 of the year of Project completion, or upon event of borrower default. Final maturity date of 55 years from date of initial occupancy. 3% annual interest on principal disbursed. $3,210,179, including accrued interest. $471,152 remaining to be disbursed to borrower, see Exhibit C, Item 1. 3 $350,000 21-Jan-97 Financial assistance to acquire and rehab low-mod rental housing. Yes. Annual residual receipt repayment installments starting 12/09/2009, or upon event of borrower default. No residual receipts payable to date. Final maturity date of 55 years from date of initial occupancy. 3% annual interest on principal disbursed. $379,750, including accrued interest. Listing of associated deeds of trust, affordability covenants and related documents: Item 1. Promissory Note; Assignment Agreement Item 2. Promissory Note, Deed of Trust, Regulatory Agreement & Declaration of Restrictive Covenants Item 3. Owner Participation Agreement, Deed of Trust and Security Agreement, Promissory Note, Intercreditor Agreement with County of Contra Costa Residual receipts loan. See Footnote Was the Low-Mod Housing Fund amount issued for a loan or a grant? b/ Person or entity to whom the loan or grant was issued Residual receipts loan. See Footnote Ohlone Gardens, L.P. Residual receipts loan. See Footnote Eden Housing, Inc. City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Assets generated from Housing Fund Expenditures on Property Owned by Third Parties (Section 34176(e)(3)) a/ Funded with multiple sources, including the Low and Moderate Income Housing Funds and CDBG, HOME, or other funding. b/ Includes any deed of trust and affordability covenants associated with Housing Assets listed in this Exhibit D; incorporated herein by this reference. Idaho Apartments, L.P. ---PAGE BREAK--- Exhibit E - Rents/Operations Item # Type of property with which they payments are associated b/ Property owner Entity that collects the payments Entity to which the collected payments are ultimately remitted Purpose for which the payments are used Is the property encumbered by a low-mod housing covenant? Source of low- mod housing covenant c/ Item # from Exhibit A the rent/operation is associated with (if applicable) 1 2 3 NO ITEMS TO REPORT. City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Assets generated from Non-Housing Fund Expenditures on Property Owned by Third Parties (Section 34176(e)(4)) see Footnote /d and /e c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements. b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. a/ May include revenues from rents, operation of properties, residual receipt payments from developers, conditional grant repayments, costs savings and proceeds from refinancing, and principal and interest payments from homebuyers subject to enforceable income limits. Type of payment a/ d/ All Housing Assets listed in Exhibit D also meet the definition under 34176(e)(3); but are listed in Exhibit D and not repeated herein. ---PAGE BREAK--- Exhibit F - Rents Item # Type of property with which the payments are associated b/ Property owner Entity that collects the payments Entity to which the collected payments are ultimately remitted Purpose for which the payments are used Is the property encumbered by a low-mod housing covenant? Source of low- mod housing covenant c/ Item # from Exhibit A the rent is associated with (if applicable) 1 Senior congregate- care facility, including low income housing, and associated community center Land is owned by St. John's Land Partnership, a partnership between Roman Catholic Welfare Corporation of Oakland and the El Cerrito Redevelopment Agency (transferred to City of El Cerrito as Housing Successor). Improvements are owned by El Cerrito Royale, L.P. and the Roman Catholic Welfare Corporation of Oakland. St. John's Land Partnership St. John's Land Partnership Nominal payments received. annual lease payment.) Yes. See Exhibit A, Item 4. See Exhibit A, Item 4. Item 4. c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements. Type of payment a/ Annual ground lease payment a/ May include rents or home loan payments. Income derived from Real Property Owned by Housing Successor (Section 34176(e)(5)) City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. ---PAGE BREAK--- Exhibit G - Deferrals Item # Fiscal year in which funds were deferred Amount deferred Interest rate at which funds were to be repaid Current amount owed Date upon which funds were to be repaid 1 2009/10 1,767,418 $ 0% $995,741. See Footnote a/ Equal annual repayments, with balance fully repaid by 6/30/2015 per Health & Safety Code Section 33690(c)(1)(2). 2 2004/5, 2005/6 609,908 $ 0% $251,577. See Footnote b/ Equal annual repayments, with balance fully repaid by 6/30/2015 per Health & Safety Code Section 33681.12. Loan of funds to RDA for FY 2004/5, 2005/6 ERAF Payments pursuant to Health & Safety Code Section 33681.12. b/ Current amount owed reflects approval of $83,859 payment from by Oversight Board and DOF on 1st ROPS. Purpose for which funds were deferred a/ Current amount owed reflects approval of $331,914 payment from by Oversight Board and DOF on 1st ROPS. Loans or Deferrals owing to the LMIHF (Section 34176(e)(6)) City of El Cerrito Inventory of Assets Received Pursuant to Health and Safety Code section 34176 Loan of funds to RDA for FY 2009/10 SERAF Payment pursuant to Health & Safety Code Section 33690(c)(1) & ---PAGE BREAK--- September 5, 2012 Ms. Hilde Myall, Housing Program Manager City of El Cerrito 10890 San Pablo Avenue El Cerrito, CA 94530 Dear Ms. Myall: Subject: Housing Assets Transfer Form Agenda Item No. 5{0) Attachment 3 Pursuant to Health and Safety Code (HSC) section 34176 the City of El Cerrito submitted a Housing Assets Transfer Form (Form) to the California Department of Finance (Fin.ance) on August 1, 2012 forthe period February 1, 2012 through August 1, 2012. Finance has complet~d its review of your Form, which may have included obtaining clarification for various items. Based on a sample of line items reviewed and the application of law, Finance is not objecting to apy assets or transfersbf assets identifi~d on your Form. Please direct inquiries to Nichelle Thomas, Supervisor or Wendy Griffe, Lead Analyst at (916) 445-1546. . . Sincerely, ;4c- STEVE SZALAY' Locai.Government Consultant cc: Ms. Lori Trevino, Economic Development Manager, City of EJ·cerrito Mr:· Bob Campbell, Auditpr-Controller, Contra Costa County California State Controllers Office