03-27-2012 CC RPT 28 - Laserfiche WebLink

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RDA Property Disposition Guidelines • Page 2 BACKGROUND: Since its inception in 1952, the California Redevelopment Law allowed cities and counties to form Redevelopment Agencies with special powers to eradicate blighting conditions in urban areas. These special powers included the ability to assemble and sell property for both public and private development. In order to effectuate the Agency’s goals, property was often acquired in an effort to eliminate social and economic blight and facilitate the property’s re-use in a manner beneficial to the community. As Successor Agency to the former Redevelopment Agency (Agency), the City of Riverside is now responsible for winding down the affairs of the Agency including the disposition of assets and properties of the Agency. Public Facility Properties As part of the property disposition process, Assembly Bill 1X 26 (AB 26) allows the Oversight Board to transfer ownership of certain assets which were constructed and used for a governmental purpose to the appropriate public agency. Over the years the Redevelopment Agency purchased many properties which are now serving as important City public facilities and some properties are intended for a future public facility. In an effort to limit impacts to the general public, it is recommended that the former Agency properties listed in Exhibit A be transferred to the City for their continued and future use as public facilities. Housing Responsibilities One of the requirements of AB 26 is that the Oversight Board direct the Successor Agency to the former Agency, to transfer the housing responsibilities, including housing assets, to the Housing Authority. Assets to be transferred include property, rental payments, bond proceeds, notes receivables, and other revenue. The balance in the former Agency low and moderate income housing fund does not get transferred. Long-term contracts and long-term obligations such as housing bond debt service will remain with the Successor Agency when tax increment revenue has been pledged for the repayment of those obligations, because the Successor Agency will continue to be the recipient of those revenues, not the Housing Authority. The properties that have been identified as housing assets that are recommended to be transferred to the Housing Authority are detailed in Exhibit B-1. These properties have been purchased with both housing and non-housing funds. Transferring the housing assets to the Housing Authority will allow for the continued development of low/moderate income housing opportunities for Riverside residents. The Redevelopment Low/Moderate Income Fund’s notes receivables are made up of down payment assistance, housing rehabilitation, and affordable housing development loans, which are detailed in Exhibit B-2. A few of the notes are forgivable as long as affordability covenants are met. Revenue that is received will be used to fund affordable housing activities. In 2011, a number of properties were conveyed from the Agency to the Housing Authority to allow for projects to be facilitated by the Housing Authority in the event redevelopment was eliminated. These properties are identified in Exhibit C and are presented for review and concurrence that they are indeed housing assets that should remain with the Housing Authority.