TITLE
Recommendation to approve an amended repayment schedule for the amounts of Property Tax funds (formerly 20 Percent Tax Increment Set-Aside) the former Redevelopment Agency owes to the Low- and Moderate-Income Housing Fund. (Citywide)
DISCUSSION
On October 22, 2013, the Successor Agency reviewed and approved a repayment schedule for funds the former Redevelopment Agency (Agency) owes to the Low- and Moderate-Income Housing Fund (Exhibit A) related to the deferral of $16,361,451 from the Downtown Project Area. The Oversight Board of the City of Long Beach to the Successor Agency to the Redevelopment Agency of the City of Long Beach (Oversight Board) approved the same schedule on November 4, 2013. An amended repayment schedule is being considered for two reasons:
1. In a letter dated December 17, 2013, the California Department of Finance (DOF) requested that the Oversight Board reconsider the proposed repayment schedule.
2. The amount to be repaid to the Low- and Moderate-Income Housing Fund through the repayment schedule has increased because the DOF denied a loan agreement between the Agency and the former Long Beach Housing Development Company (LBHDC) as an existing enforceable obligation on Recognized Obligation Payment Schedule (ROPS) 13-14B. The total amount of debt outstanding to the Low- and Moderate-Income Housing Fund is $24,721,890.
The DOF requested that the Oversight Board reconsider the Low- and Moderate-Income Housing Fund repayment schedule because it wants the amount of the upcoming payment to be based on actual dollar amounts and not estimates. California Health and Safety Code Section 34171(d)(1)(G) prescribes the adoption of a repayment schedule but does not specify its format or content. This section also indicates that adoption of a repayment schedule is necessary before the Successor Agency can begin to repay the Low- and Moderate-Income Housing Fund. While Successor Agency staff interpreted the adoption of a repayment sc...
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