TITLE
Recommendation to adopt resolution finding that the use of taxes allocated to the North Long Beach Redevelopment Project on behalf of the Central Long Beach Redevelopment Project for the purpose of increasing, improving and preserving the community’s supply of low- and moderate-income housing will be of benefit to the North Long Beach Redevelopment Project. (Citywide)
DISCUSSION
As part of the Fiscal Year 2009 (FY09) budget process, the City Council approved the Long Beach Redevelopment Agency's (Agency) budget, which included a loan repayment to the General Fund. The FY09 loan repayment from the Central Long Beach Redevelopment Project is $2.3 million. To make the loan repayment possible, the North Long Beach Redevelopment Project will transfer the same amount of funds to the City's Low- and Moderate-Income Housing Fund on behalf of the Central Long Beach Redevelopment Project.
California Health and Safety Code Section 33334.2 requires the Agency and City Council to make a finding that the payment of additional housing set-aside is of benefit to the project area making the additional payment. This finding of benefit is necessary in order for the North Long Beach Redevelopment Project to pay a portion of the Central Long Beach Redevelopment Project's housing set-aside obligation. The Agency passed a resolution making such a finding on June 16, 2008. Therefore, it is necessary for the City Council to take a similar action approving the transfer.
This letter was reviewed by Assistant City Attorney Heather Mahood on September 22, 2008, and by Budget Management Officer Victoria Bell on September 26, 2008.
TIMING CONSIDERATIONS
City Council action is requested on October 14, 2008, to expedite repayment of the loan.
FISCAL IMPACT
The $2.3 million transfer of funds is included in both the Agency's FY09 budget and the City's FY09 General Fund budget. Approval of the attached resolution will provide $2.3 million in revenue to be deposited in the General ...
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