Redevelopment

The Dissolution of Redevelopment AB 1X26

On June 29, 2011, Governor Brown signed several budget trailer bills to implement the State Budget for Fiscal Year 2011-12 that dramatically affected redevelopment authority. AB1X 26 (Blumenfield), the “Dissolution Act,” immediately suspended all new redevelopment activities and incurrence of indebtedness and dissolves redevelopment agencies altogether.

La Palma’s Redevelopment Agency, the Community Development Commission (CDC), ceased to exist on February 1, 2012, by operation of law. The City Council elected to be the “Successor Agency” via Resolution No. 2012-06 for the purposes of winding down the business affairs of the former CDC pursuant to AB1X 26 and to be the "Housing Successor Agency."

AB 1484 the Clean-up Bill 

The Legislature passed and the Governor signed AB 1484 as part of the FY 2012-13 State Budget package. The primary purpose of this bill is to make technical amendments to ABX1 26. AB 1484 requires the Successor Agency to hire a licensed accountant to review all cash assets and any cash transfers in the Low and Moderate Income Housing Fund and all Other Funds. The analysis called the Due Diligence Review (DDR).

Due Diligence Report (DDR)

The DDR of the Low and Moderate Income Housing Fund (LMIHF) was approved by the Oversight Board by Resolution No. 2012-08 and was submitted to the DOF on October 19, 2012.

The DDR of the Other Cash Funds was approved by the Oversight Board by Resolution No. 2013-02 and was submitted to the DOF­­­­.

Finding of Completion (FOC)

Pursuant to Health and Safety Code (HSC) Section 34179.7, Finance will issue a finding of completion to the successor agency, once the following conditions have been met and verified:

• The successor agency has paid the full amount as determined during the July True-Up process or has paid the full amount upon a final judicial determination of the amounts due and confirmation that those amounts have been paid to the county auditor-controller.
• The successor agency has paid the full amount as determined during the due diligence reviews or has paid a final judicial determination and the county auditor-controller has reported those payments to Finance.

The DOF issued the La Palma Successor Agency its FOC on April 18, 2013.

Long Range Property Management Plan (LRPMP)

Pursuant to Health and Safety Code Section 34191.5(b), within six months after receiving a Finding of Completion from the State Department of Finance (DOF), the Successor Agency is required to submit to the DOF for approval a Long-Range Property Management Plan (LRPMP) that addresses the disposition and use of the real properties of the former redevelopment agency.

The Successor Agency’s LRPMP was approved by the La Palma Oversight Board via Resolution No. 2013-09 and by the DOF on December 13, 2013.

Recognized Obligation Payment Schedule (ROPS)

Under ABX1 26, the Successor Agency is required to adopt a ROPS for any enforceable obligations it is designating as continuing obligations for payment from Redevelopment Property Tax Trust Fund (RPTTF). As part of the FY 2012-13 State budget package, the Legislature passed and the Governor signed Assembly Bill (AB) 1484 into law on June 27, 2012. The primary purpose of AB 1484 was to make technical and substantive amendments to the ABX1 26 the “Dissolution Act.”

AB 1484 added Section 34177(m) to the Health and Safety Code which requires the Successor Agency to submit an “Oversight Board approved” ROPS to the California Department of Finance (DOF) and to the County Auditor-Controller no fewer than 90 days before the date of property tax distribution. The law also requires the Successor Agency to post the approving resolutions on its web site. The table below contains the Resolutions for the ROPS approved to-date.