City of Culver City, California
Agenda Item Report
Meeting Date: 06/25/12 Item Number: J-1
JOINT CITY COUNCIL/CULVER CITY HOUSING AUTHORITY/SUCCESSOR AGENCY
TO THE CULVER CITY REDEVELOPMENT AGENCY AGENDA ITEM: (1) Adoption of
a City Council Resolution Approving the Transfer of Housing Assets and
Obligations From the City to the Culver City Housing Authority to Implement the
Housing Projects and Programs Identified in the City-Culver City Housing Authority
Cooperation Agreement; (2) Adoption of a Resolution by the Culver City Housing
Authority Accepting the Transfer of Housing Assets and Obligations from the City;
(3) Adoption of a Resolution of the Successor Agency to the Culver City
Redevelopment Agency Effectuating the Transfer of Housing Assets and
Obligations to the Culver City Housing Authority Pursuant to AB 1X 26; and (4)
Adoption of a Culver City Housing Authority Resolution Accepting the Transfer of
Housing Assets and Obligations from the Successor Agency to the Culver City
Redevelopment Agency; and Housing Authority Approval of a Related Budget
Amendment.
Contact Person/Dept.:
Tevis Barnes
Phone Number:
(310) 253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: Meetings and Agendas – City Council (06/21/12)
Department/Assistant Executive Director
Approval: Sol Blumenfeld (05/08/12)
City Attorney/Authority and Successor
Agency Counsel Approval:
Carol Schwab (by H. Baker) (06/21/12)
City/Authority/Successor Agency Special
Counsel Approval:
Murray O. Kane (by D. Rhodes) (6/21/12)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball)(05/10/12)
City Manager/Executive Director Approval:
John M. Nachbar (06/21/12)
RECOMMENDATION:
Staff recommends the City Council:
(1) Adopt a resolution approving actions related to the transfer of certain
assets and obligations to the Culver City Housing Authority (Housing
Authority) to meet existing obligations set forth in a Cooperation
Agreement with the Housing Authority. (Attachment No. 1);
AND City of Culver City, California
Agenda Item Report
Staff recommends the Housing Authority Board:
(2) Adopt a resolution approving and accepting the transfer of certain assets
and obligations from the City to meet existing obligations set forth in a
Cooperation Agreement with the City to accomplish the public purposes
of increasing, improving and preserving the community’s supply of
affordable housing. (Attachment No. 2); and,
(3) Adopt a resolution approving and accepting the transfer of the housing
function, assets and obligations from the Successor Agency.
(Attachment No. 4); and,
(4) Approve a budget amendment $150,000 be appropriated in account
47697100.619800 to cover legal and financial analysis expenditures associated
with the Tilden Terrace and Globe projects.
AND
Staff recommends the Successor Agency to the Culver City Redevelopment Agency
(Successor Agency) Board:
(5) Adopt a resolution approving actions to effectuate the transfer of housing
functions, assets and obligations of the Successor Agency to the
Housing Authority. (Attachment No.3).
BACKGROUND:
On January 15, 2011, the Culver City Redevelopment Agency and the City of Culver
City entered into a Cooperation Agreement for Payment of Costs Associated With
Certain RDA Funded Capital Improvement and Affordable Housing Projects
(“Agency-City Cooperation Agreement”), which provides for the Redevelopment
Agency’s payment of costs incurred by the City to bring about the redevelopment of
the Culver City Redevelopment Project Area, to accomplish various tasks set forth in
the Redevelopment Plan and the Implementation Plan, and to increase, improve and
preserve the community’s supply of affordable housing.
Pursuant to the provision of Assembly Bill 26 (2011-2012 1
st
Ex. Sess.)and other
applicable State Law, the City Council activated the Housing Authority at the City
Council meeting of January 9, 2012. At that January 9, 2012 meeting, the City
Council and Housing Authority Board adopted respective resolutions which
transferred (the City Council) and accepted the transfer (the Housing Authority
Board) of all housing assets, rights, powers, duties, obligations, liabilities, and
function previously performed by the Culver City Redevelopment Agency under Part
1.85 of Division 24 of the Health and Safety Code subject to the reservations stated
in the resolutions. City of Culver City, California
Agenda Item Report
On January 30, 2012, pursuant to Sections 33220 and 33206 of the Community
Redevelopment Law, Section 34312.5 of California’s Housing Authorities Law and
Section 34509 of California’s Housing Cooperation Law, the City and Housing
Authority entered into a Cooperation Agreement to provide for the Housing
Authority’s implementation of certain low and moderate income housing projects and
programs set forth in the Agency-City Cooperation Agreement.
The Agency-City Cooperation Agreement included funding for a number of
affordable housing programs, including but not necessarily limited to the Rental
Assistance Program, Homeless Outreach, and the Homeless Rental Assistance
Program, and housing projects, including, but not necessarily limited to, the Tilden
Terrace (11042-11058 West Washington Boulevard) and Globe (4044-4068 Globe
Avenue) sites.
A Disposition and Development Agreement (“DDA”) for the Tilden Terrace site was
executed between the City, the Agency and Tilden Terrace, L.P. on March 31, 2011.
Tilden Terrace is currently under construction and project completion is expected by
September, 2013. A DDA between the Housing Authority and Habitat for Humanity
of Greater Los Angeles for the development of the Globe site was approved by the
Housing Authority Board at its January 30, 2012 meeting. The proposed City-
Authority Cooperation Agreement authorized an administrative transfer of both
projects from the City to the Housing Authority.
DISCUSSION:
The transfer of the real property and other assets and obligations of the City to the
Authority will accomplish the public purposes of implementing the Redevelopment
Plan for the Project Area and achieving the goals and purposes of such Plan,
sustaining the redevelopment accomplished by the implementation of the Plan,
increasing and improving and preserving the community’s supply of affordable
housing, obtaining the benefits for the Housing Authority for the housing uses to
which the assets will be put, enforcing the existing covenants, contracts, and other
obligations arising from said projects, and carrying out and achieving the goals and
purposes of the Agency-City Cooperation Agreement and the City-Authority
Cooperation Agreement. The transfer of the real property and assets of the City to
the Authority is authorized by the Housing Cooperation Law, including but not limited
to Section 34510.
The real property which is subject to the staff recommendation consists of interests
held by the City and the Successor Agency in real property associated with the
housing functions previously performed by the Agency (collectively, the “Real
Property”).
City of Culver City, California
Agenda Item Report
The assets and obligations are leases, promissory notes, agreements, and other
rights of the Successor Agency to receive payment of funds and/or other
consideration associated with the housing function previously performed by the
Agency, all cash accounts, records, reports, files, furniture, fixtures, equipment and
all other tangible and intangible personal property associated with the housing
functions previously performed by the Agency (collectively, the “Other Assets”).
The above recommended resolutions will address any housing assets and
obligations that are currently held by the City as well as housing assets and
obligations that were not previously transferred by the Agency to the City or that
have since come into the possession of the Successor Agency.
FISCAL ANALYSIS:
On January 9, 2012, the City transferred certain low/moderate income housing
assets and obligations to the Housing Authority, which included approximately $1.1
million in Mortgage Assistance Program loan repayment obligations, $7.3 million in
real property assets, and $1.3 million in cash. Additionally, the Housing Fund is
currently owed approximately $45.4 million by the former Redevelopment Agency
(now an obligation of the Successor Agency) to repay ERAF/SERAF payments
($10.5 million payable by June 2015) and repayment of housing set aside funds that
were deferred pursuant to applicable law between 1985 and 1996 ($34.9 million to
be repaid in future years). These amounts are considered enforceable obligations of
the Agency under ABx1 26 and will be repaid to the Housing Authority by the
Successor Agency per the Recognized Obligations Payment Schedule. The above
assets will support all affordable housing related administration, programs, and
development.
With approval of the above resolutions, $3.4 million in land proceeds from the sale of
the Tilden Terrace site will be transferred from the City to the Housing Authority.
From this amount, staff recommends $150,000 be appropriated in account
47697100.619800 to cover legal and financial analysis expenditures associated with
the Tilden Terrace and Globe projects.
ATTACHMENTS:
1. Proposed City Council Resolution transferring the housing assets and
obligations from the City to the Housing Authority to implement the housing
projects and programs identified in the City-Authority Cooperation Agreement;
2. Proposed Housing Authority Resolution accepting the transfer of housing
assets and obligations from the City;
3. Proposed Successor Agency Resolution effectuating the transfer of housing
assets and obligations to the Authority; and
4. Proposed Housing Authority Resolution accepting the transfer of housing
assets and obligations from the Successor Agency City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Adopt a Resolution approving the transfer of the housing assets and
obligations from the City to the Authority to implement the housing projects
and programs identified in the City-Culver City Housing Authority Cooperation
Agreement;
AND
That the Housing Authority Board:
2. Adopt a Resolution accepting the transfer of housing Assets and obligations
from the City; and,
3. Adopt a Resolution accepting the transfer of housing assets and obligations
from the Successor Agency.
4. Approve a budget amendment appropriating $150,000 from available fund
balance to account 4767100.619800 to cover existing legal and financial
expenses (A Budget Amendment requires a Four-Fifths Vote).
AND
That the Successor Agency:
5. Adopt a Resolution effectuating the transfer of housing assets and obligations from
the Successor Agency to the Authority Pursuant to AB 1X 26.