Chapter 3. Successor Agencies of California Health And Safety Code >> Division 24. >> Part 1.85. >> Chapter 3.
Successor agencies are required to do all of the following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (d) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum. In recognition of the fact that the timing
of the California Supreme Court's ruling in the case California
Redevelopment Association v. Matosantos (2011) 53 Cal.4th 231 delayed
the preparation by successor agencies and the approval by oversight
boards of the January 1, 2012, through June 30, 2012, Recognized
Obligation Payment Schedule, a successor agency may amend the
Enforceable Obligation Payment Schedule to authorize the continued
payment of enforceable obligations until the time that the January 1,
2012, through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the department. The
successor agency may utilize reasonable estimates and projections to
support payment amounts for enforceable obligations if the successor
agency submits appropriate supporting documentation of the basis for
the estimate or projection to the Department of Finance and the
auditor-controller.
(2) The department, the county auditor-controller, and the
Controller shall each have the authority to require any documents
associated with the enforceable obligations to be provided to them in
a manner of their choosing. Any taxing entity, the department, and
the Controller shall each have standing to file a judicial action to
prevent a violation under this part and to obtain injunctive or other
appropriate relief.
(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be made by
the successor agency from the funds specified in the Recognized
Obligation Payment Schedule. In addition, after it becomes valid, the
Recognized Obligation Payment Schedule shall supersede the Statement
of Indebtedness, which shall no longer be prepared nor have any
effect under the Community Redevelopment Law (Part 1 (commencing with
Section 33000)).
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shall not
apply to a successor agency that has been issued a finding of
completion by the department pursuant to Section 34179.7.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
(l) (1) Before each fiscal period set forth in subdivision (m) or
(o), as applicable, prepare a Recognized Obligation Payment Schedule
in accordance with the requirements of this paragraph. For each
recognized obligation, the Recognized Obligation Payment Schedule
shall identify one or more of the following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A Recognized Obligation Payment Schedule is prepared by the
successor agency for the enforceable obligations of the former
redevelopment agency. The initial schedule shall project the dates
and amounts of scheduled payments for each enforceable obligation for
the remainder of the time period during which the redevelopment
agency would have been authorized to obligate property tax increment
had the redevelopment agency not been dissolved.
(B) The Recognized Obligation Payment Schedule is submitted to and
duly approved by the oversight board. The successor agency shall
submit a copy of the Recognized Obligation Payment Schedule to the
county administrative officer, the county auditor-controller, and the
department at the same time that the successor agency submits the
Recognized Obligation Payment Schedule to the oversight board for
approval.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller, the Controller's
office, and the Department of Finance, and is posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months or one year pursuant to subdivision
(m) or (o), as applicable. The first Recognized Obligation Payment
Schedule shall be submitted to the Controller's office and the
department by April 15, 2012, for the period of January 1, 2012, to
June 30, 2012, inclusive. This Recognized Obligation Payment Schedule
shall include all payments made by the former redevelopment agency
between January 1, 2012, through January 31, 2012, and shall include
all payments proposed to be made by the successor agency from
February 1, 2012, through June 30, 2012. Former redevelopment agency
enforceable obligation payments due, and reasonable or necessary
administrative costs due or incurred, prior to January 1, 2012, shall
be made from property tax revenues received in the spring of 2011
property tax distribution, and from other revenues and balances
transferred to the successor agency.
(m) (1) The Recognized Obligation Payment Schedule for the period
of January 1, 2013, to June 30, 2013, shall be submitted by the
successor agency, after approval by the oversight board, no later
than September 1, 2012. Commencing with the Recognized Obligation
Payment Schedule covering the period July 1, 2013, through December
31, 2013, successor agencies shall submit an oversight board-approved
Recognized Obligation Payment Schedule to the department and to the
county auditor-controller no fewer than 90 days before the date of
property tax distribution. The department shall make its
determination of the enforceable obligations and the amounts and
funding sources of the enforceable obligations no later than 45 days
after the Recognized Obligation Payment Schedule is submitted. Within
five business days of the department's determination, a successor
agency may request additional review by the department and an
opportunity to meet and confer on disputed items, except for those
items which are the subject of litigation disputing the department's
previous or related determination. The meet and confer period may
vary; an untimely submittal of a Recognized Obligation Payment
Schedule may result in a meet and confer period of less than 30 days.
The department shall notify the successor agency and the county
auditor-controllers as to the outcome of its review at least 15 days
before the date of property tax distribution.
(A) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department electronically, and the
successor agency shall complete the Recognized Obligation Payment
Schedule in the manner provided for by the department. A successor
agency shall be in noncompliance with this paragraph if it only
submits to the department an electronic message or a letter stating
that the oversight board has approved a Recognized Obligation Payment
Schedule.
(B) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if it is acting as the successor agency, shall be subject to
a civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the Department of
Finance or any affected taxing entity shall have standing to and may
request a writ of mandate to require the successor agency to
immediately perform this duty. Those actions may be filed only in the
County of Sacramento and shall have priority over other civil
matters. Additionally, if an agency does not submit a Recognized
Obligation Payment Schedule within 10 days of the deadline, the
maximum administrative cost allowance for that period shall be
reduced by 25 percent.
(C) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers shall
lack the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 unless required
by a court order.
(D) (i) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(ii) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the auditor-controller.
(iii) A Recognized Obligation Payment Schedule may also include
appropriation of moneys from bonds subject to passage during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(2) The requirements of this subdivision shall apply until
December 31, 2015.
(n) Cause a postaudit of the financial transactions and records of
the successor agency to be made at least annually by a certified
public accountant.
(o) (1) Commencing with the Recognized Obligation Payment Schedule
covering the period from July 1, 2016, to June 30, 2017, inclusive,
and for each period from July 1 to June 30, inclusive, thereafter, a
successor agency shall submit an oversight board-approved Recognized
Obligation Payment Schedule to the department and to the county
auditor-controller no later than February 1, 2016, and each February
1 thereafter. The department shall make its determination of the
enforceable obligations and the amounts and funding sources of the
enforceable obligations no later than April 15, 2016, and each April
15 thereafter. Within five business days of the department's
determination, a successor agency may request additional review by
the department and an opportunity to meet and confer on disputed
items, except for those items which are the subject of litigation
disputing the department's previous or related determination. An
untimely submittal of a Recognized Obligation Payment Schedule may
result in a meet and confer period of less than 30 days. The
department shall notify the successor agency and the county
auditor-controller as to the outcome of its review at least 15 days
before the date of the first property tax distribution for that
period.
(A) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department in the manner provided
for by the department.
(B) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if acting as the successor agency, shall be subject to a
civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the department or
any affected taxing entity shall have standing to, and may request a
writ of mandate to, require the successor agency to immediately
perform this duty. Those actions may be filed only in the County of
Sacramento and shall have priority over other civil matters.
Additionally, if an agency does not submit a Recognized Obligation
Payment Schedule within 10 days of the deadline, the maximum
administrative cost for that period shall be reduced by 25 percent.
(C) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers do
not have the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 except as
required by a court order.
(D) (i) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(ii) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the county auditor-controller.
(iii) A Recognized Obligation Payment Schedule may also include a
request to use proceeds from bonds expected to be issued during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(E) Once per Recognized Obligation Payment Schedule period, and no
later than October 1, a successor agency may submit one amendment to
the Recognized Obligation Payment Schedule approved by the
department pursuant to this subdivision, if the oversight board makes
a finding that a revision is necessary for the payment of approved
enforceable obligations during the second one-half of the Recognized
Obligation Payment Schedule period, which shall be defined as January
1 to June 30, inclusive. A successor agency may only amend the
amount requested for payment of approved enforceable obligations. The
revised Recognized Obligation Payment Schedule shall be approved by
the oversight board and submitted to the department by electronic
means in a manner of the department's choosing. The department shall
notify the successor agency and the county auditor-controller as to
the outcome of the department's review at least 15 days before the
date of the property tax distribution.
(2) The requirements of this subdivision shall apply on and after
January 1, 2016.
(a) Successor agencies shall lack the authority to, and
shall not, create new enforceable obligations or begin redevelopment
work, except in compliance with an enforceable obligation, as defined
by subdivision (d) of Section 34171, that existed prior to June 28,
2011.
(b) Notwithstanding subdivision (a), successor agencies may create
enforceable obligations to conduct the work of winding down the
redevelopment agency, including hiring staff, acquiring necessary
professional administrative services and legal counsel, and procuring
insurance. Except as required by an enforceable obligation, the work
of winding down the redevelopment agency does not include planning,
design, redesign, development, demolition, alteration, construction,
construction financing, site remediation, site development or
improvement, land clearance, seismic retrofits, and other similar
work. Successor agencies may not create enforceable obligations to
repay loans entered into between the redevelopment agency that it is
succeeding and the city, county, or city and county that formed the
redevelopment agency that it is succeeding, except as provided in
Chapter 9 (commencing with Section 34191.1).
(c) Successor agencies shall lack the authority to, and shall not,
transfer any powers or revenues of the successor agency to any other
party, public or private, except pursuant to an enforceable
obligation on a Recognized Obligation Payment Schedule approved by
the department. Any such transfers of authority or revenues that are
not made pursuant to an enforceable obligation on a Recognized
Obligation Payment Schedule approved by the department are hereby
declared to be void, and the successor agency shall take action to
reverse any of those transfers. The Controller may audit any transfer
of authority or revenues prohibited by this section and may order
the prompt return of any money or other things of value from the
receiving party.
(d) Redevelopment agencies that resolved to participate in the
Voluntary Alternative Redevelopment Program under Chapter 6 of the
First Extraordinary Session of the Statutes of 2011 were and are
subject to the provisions of Part 1.8 (commencing with Section
34161). Any actions taken by redevelopment agencies to create
obligations after June 27, 2011, are ultra vires and do not create
enforceable obligations.
(e) The provisions of this section shall apply retroactively to
any successor agency or redevelopment agency actions occurring on or
after June 27, 2012.
(a) In addition to the powers granted to each successor
agency, and notwithstanding anything in the act adding this part,
including, but not limited to, Sections 34162 and 34189, a successor
agency shall have the authority, rights, and powers of the
redevelopment agency to which it succeeded solely for the following
purposes:
(1) For the purpose of issuing bonds or incurring other
indebtedness to refund the bonds or other indebtedness of its former
redevelopment agency or of the successor agency to provide savings to
the successor agency, provided that (A) the total interest cost to
maturity on the refunding bonds or other indebtedness plus the
principal amount of the refunding bonds or other indebtedness shall
not exceed the total remaining interest cost to maturity on the bonds
or other indebtedness to be refunded plus the remaining principal of
the bonds or other indebtedness to be refunded, and (B) the
principal amount of the refunding bonds or other indebtedness shall
not exceed the amount required to defease the refunded bonds or other
indebtedness, to establish customary debt service reserves, and to
pay related costs of issuance. If the foregoing conditions are
satisfied, the initial principal amount of the refunding bonds or
other indebtedness may be greater than the outstanding principal
amount of the bonds or other indebtedness to be refunded. The
successor agency may pledge to the refunding bonds or other
indebtedness the revenues pledged to the bonds or other indebtedness
being refunded, and that pledge, when made in connection with the
issuance of such refunding bonds or other indebtedness, shall have
the same lien priority as the pledge of the bonds or other
obligations to be refunded, and shall be valid, binding, and
enforceable in accordance with its terms.
(2) For the purpose of issuing bonds or other indebtedness to
finance debt service spikes, including balloon maturities, provided
that (A) the existing indebtedness is not accelerated, except to the
extent necessary to achieve substantially level debt service, and (B)
the principal amount of the bonds or other indebtedness shall not
exceed the amount required to finance the debt service spikes,
including establishing customary debt service reserves and paying
related costs of issuance.
(3) For the purpose of amending an existing enforceable obligation
under which the successor agency is obligated to reimburse a
political subdivision of the state for the payment of debt service on
a bond or other obligation of the political subdivision, or to pay
all or a portion of the debt service on the bond or other obligation
of the political subdivision to provide savings to the successor
agency, provided that (A) the enforceable obligation is amended in
connection with a refunding of the bonds or other obligations of the
political subdivision so that the enforceable obligation will apply
to the refunding bonds or other refunding indebtedness of the
political subdivision, (B) the total interest cost to maturity on the
refunding bonds or other indebtedness plus the principal amount of
the refunding bonds or other indebtedness shall not exceed the total
remaining interest cost to maturity on the bonds or other
indebtedness to be refunded plus the remaining principal of the bonds
or other indebtedness to be refunded, and (C) the principal amount
of the refunding bonds or other indebtedness shall not exceed the
amount required to defease the refunded bonds or other indebtedness,
to establish customary debt service reserves and to pay related costs
of issuance. The pledge set forth in that amended enforceable
obligation, when made in connection with the execution of the
amendment of the enforceable obligation, shall have the same lien
priority as the pledge in the enforceable obligation prior to its
amendment and shall be valid, binding, and enforceable in accordance
with its terms.
(4) For the purpose of issuing bonds or incurring other
indebtedness to make payments under enforceable obligations when the
enforceable obligations include the irrevocable pledge of property
tax increment, formerly tax increment revenues prior to the effective
date of this part, or other funds and the obligation to issue bonds
secured by that pledge. The successor agency may pledge to the bonds
or other indebtedness the property tax revenues and other funds
described in the enforceable obligation, and that pledge, when made
in connection with the issuance of the bonds or the incurring of
other indebtedness, shall be valid, binding, and enforceable in
accordance with its terms. This paragraph shall not be deemed to
authorize a successor agency to increase the amount of property tax
revenues pledged under an enforceable obligation or to pledge any
property tax revenue not already pledged pursuant to an enforceable
obligation. This paragraph does not constitute a change in, but is
declaratory of, the existing law.
(b) The refunding bonds authorized under this section may be
issued under the authority of Article 11 (commencing with Section
53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code, and the refunding bonds may be sold at public or
private sale, or to a joint powers authority pursuant to the
Marks-Roos Local Bond Pooling Act (Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the Government Code).
(c) (1) Prior to incurring any bonds or other indebtedness
pursuant to this section, the successor agency may subordinate to the
bonds or other indebtedness the amount required to be paid to an
affected taxing entity pursuant to paragraph (1) of subdivision (a)
of Section 34183, provided that the affected taxing entity has
approved the subordinations pursuant to this subdivision.
(2) At the time the successor agency requests an affected taxing
entity to subordinate the amount to be paid to it, the successor
agency shall provide the affected taxing entity with substantial
evidence that sufficient funds will be available to pay both the debt
service on the bonds or other indebtedness and the payments required
by paragraph (1) of subdivision (a) of Section 34183, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the successor agency will not be able to pay the debt service
payments and the amount required to be paid to the affected taxing
entity. If the affected taxing entity does not act within 45 days
after receipt of the agency's request, the request to subordinate
shall be deemed approved and shall be final and conclusive.
(d) An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of bonds or other obligations
authorized by this section, the pledge of revenues to those bonds or
other obligations authorized by this section, the legality and
validity of all proceedings theretofore taken and, as provided in the
resolution of the legislative body of the successor agency
authorizing the bonds or other obligations authorized by this
section, proposed to be taken for the authorization, execution,
issuance, sale, and delivery of the bonds or other obligations
authorized by this section, and for the payment of debt service on
the bonds or the payment of amounts under other obligations
authorized by this section. Subdivision (c) of Section 33501 shall
not apply to any such action. The department shall be notified of the
filing of any action as an affected party.
(e) Notwithstanding any other law, including, but not limited to,
Section 33501, an action to challenge the issuance of bonds, the
incurrence of indebtedness, the amendment of an enforceable
obligation, or the execution of a financing agreement by a successor
agency shall be brought within 30 days after the date on which the
oversight board approves the resolution of the successor agency
approving the issuance of bonds, the incurrence of indebtedness, the
amendment of an enforceable obligation, or the execution of a
financing agreement authorized under this section.
(f) The actions authorized in this section shall be subject to the
approval of the oversight board, as provided in Section 34180.
Additionally, an oversight board may direct the successor agency to
commence any of the transactions described in subdivision (a) so long
as the successor agency is able to recover its related costs in
connection with the transaction. After a successor agency, with
approval of the oversight board, issues any bonds, incurs any
indebtedness, or executes an amended enforceable obligation pursuant
to subdivision (a), the oversight board shall not unilaterally
approve any amendments to or early termination of the bonds,
indebtedness, or enforceable obligation. If, under the authority
granted to it by subdivision (h) of Section 34179, the department
either reviews and approves or fails to request review within five
business days of an oversight board approval of an action authorized
by this section, the scheduled payments on the bonds or other
indebtedness shall be listed in the Recognized Obligation Payment
Schedule and shall not be subject to further review and approval by
the department or the Controller. The department may extend its
review time to 60 days for actions authorized in this section and may
seek the assistance of the Treasurer in evaluating proposed actions
under this section.
(g) Any bonds, indebtedness, or amended enforceable obligation
authorized by this section shall be considered indebtedness incurred
by the dissolved redevelopment agency, with the same legal effect as
if the bonds, indebtedness, financing agreement, or amended
enforceable obligation had been issued, incurred, or entered into
prior to June 28, 2011, in full conformity with the applicable
provisions of the Community Redevelopment Law that existed prior to
that date, shall be included in the successor agency's Recognized
Obligation Payment Schedule, and shall be secured by a pledge of, and
lien on, and shall be repaid from moneys deposited from time to time
in the Redevelopment Property Tax Trust Fund established pursuant to
subdivision (c) of Section 34172, as provided in paragraph (2) of
subdivision (a) of Section 34183. Property tax revenues pledged to
any bonds, indebtedness, or amended enforceable obligations
authorized by this section are taxes allocated to the successor
agency pursuant to subdivision (b) of Section 33670 and Section 16 of
Article XVI of the California Constitution.
(h) The successor agency shall make diligent efforts to ensure
that the lowest long-term cost financing is obtained. The financing
shall not provide for any bullets or spikes and shall not use
variable rates. The successor agency shall make use of an independent
financial advisor in developing financing proposals and shall make
the work products of the financial advisor available to the
department at its request.
(i) If an enforceable obligation provides for an irrevocable
commitment of revenue and where allocation of such revenues is
expected to occur over time, the successor agency may petition the
department by electronic means and in a manner of the department's
choosing to provide written confirmation that its determination of
such enforceable obligation as approved in a Recognized Obligation
Payment Schedule is final and conclusive, and reflects the department'
s approval of subsequent payments made pursuant to the enforceable
obligation. The successor agency shall provide a copy of the petition
to the county auditor-controller at the same time it is submitted to
the department. The department shall have 100 days from the date of
the request for a final and conclusive determination to provide
written confirmation of approval or denial of the request. For any
pending final and conclusive determination requests submitted prior
to June 30, 2015, the department shall have until December 31, 2015,
to provide written confirmation of approval or denial of the request.
If the confirmation of approval is granted, then the department's
review of such payments in future Recognized Obligation Payment
Schedules shall be limited to confirming that they are required by
the prior enforceable obligation.
(j) The successor agency may request that the department provide a
written determination to waive the two-year statute of limitations
on an action to review the validity of the adoption or amendment of a
redevelopment plan pursuant to subdivision (c) of Section 33500 or
on any findings or determinations made by the agency pursuant to
subdivision (d) of Section 33500. The department at its discretion
may provide a waiver if it determines it is necessary for the agency
to fulfill an enforceable obligation.
(a) (1) In addition to the powers granted to each
successor agency, and notwithstanding anything in the act adding this
part, including, but not limited to, Sections 34162 and 34189, the
successor agency to the Redevelopment Agency of the City and County
of San Francisco shall have the authority, rights, and powers of the
Redevelopment Agency to which it succeeded solely for the purpose of
issuing bonds or incurring other indebtedness to finance:
(A) The affordable housing required by the Mission Bay North Owner
Participation Agreement, the Mission Bay South Owner Participation
Agreement, the Disposition and Development Agreement for Hunters
Point Shipyard Phase 1, the Candlestick Point-Hunters Point Shipyard
Phase 2 Disposition and Development Agreement, and the Transbay
Implementation Agreement.
(B) The infrastructure required by the Transbay Implementation
Agreement.
(2) The successor agency to the Redevelopment Agency of the City
and County of San Francisco may pledge to the bonds or other
indebtedness the property tax revenues available in the successor
agency's Redevelopment Property Tax Trust Fund that are not otherwise
obligated.
(b) Bonds issued pursuant to this section may be sold pursuant to
either a negotiated or a competitive sale. The bonds issued or other
indebtedness obligations incurred pursuant to this section may be
issued or incurred on a parity basis with outstanding bonds or other
indebtedness obligations of the successor agency to the Redevelopment
Agency of the City and County of San Francisco and may pledge the
revenues pledged to those outstanding bonds or other indebtedness
obligations to the issuance of bonds or other obligations pursuant to
this section. The pledge, when made in connection with the issuance
of bonds or other indebtedness obligations under this section, shall
have the same lien priority as the pledge of outstanding bonds or
other indebtedness obligations, and shall be valid, binding, and
enforceable in accordance with its terms.
(c) (1) Prior to issuing any bonds or incurring other indebtedness
pursuant to this section, the successor agency to the Redevelopment
Agency of the City and County of San Francisco may subordinate to the
bonds or other indebtedness the amount required to be paid to an
affected taxing entity pursuant to paragraph (1) of subdivision (a)
of Section 34183, provided that the affected taxing entity has
approved the subordinations pursuant to this subdivision.
(2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service on the bonds or
other indebtedness and the payments required by paragraph (1) of
subdivision (a) of Section 34183, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the successor agency will not be able to pay the debt service
payments and the amount required to be paid to the affected taxing
entity. If the affected taxing entity does not act within 45 days
after receipt of the agency's request, the request to subordinate
shall be deemed approved and shall be final and conclusive.
(d) An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of bonds or other obligations
authorized by this section, the pledge of revenues to those bonds or
other obligations authorized by this section, the legality and
validity of all proceedings theretofore taken and, as provided in the
resolution of the legislative body of the successor agency to the
Redevelopment Agency of the City and County of San Francisco
authorizing the bonds or other indebtedness obligations authorized by
this section, proposed to be taken for the authorization, execution,
issuance, sale, and delivery of the bonds or other obligations
authorized by this section, and for the payment of debt service on
the bonds or the payment of amounts under other obligations
authorized by this section. Subdivision (c) of Section 33501 shall
not apply to any such action. The department shall be notified of the
filing of any action as an affected party.
(e) Notwithstanding any other law, including, but not limited to,
Section 33501, an action to challenge the issuance of bonds or the
incurrence of indebtedness by the successor agency to the
Redevelopment Agency of the City and County of San Francisco shall be
brought within 30 days after the date on which the oversight board
approves the resolution of the agency approving the issuance of bonds
or the incurrence of indebtedness under this section.
(f) The actions authorized in this section shall be subject to the
approval of the oversight board, as provided in Section 34180.
Additionally, the oversight board may direct the successor agency to
the Redevelopment Agency of the City and County of San Francisco to
commence any of the transactions described in subdivision (a) so long
as the agency is able to recover its related costs in connection
with the transaction. After the agency, with approval of the
oversight board, issues any bonds or incurs any indebtedness pursuant
to subdivision (a), the oversight board shall not unilaterally
approve any amendments to or early termination of the bonds or
indebtedness. If, under the authority granted to it by subdivision
(h) of Section 34179, the department either reviews and approves or
fails to request review within five business days of an oversight
board approval of an action authorized by this section, the scheduled
payments on the bonds or other indebtedness shall be listed in the
Recognized Obligation Payment Schedule and shall not be subject to
further review and approval by the department or the Controller. The
department may extend its review time to 60 days for actions
authorized in this section and may seek the assistance of the
Treasurer in evaluating proposed actions under this section.
(g) Any bonds or other indebtedness authorized by this section
shall be considered indebtedness incurred by the dissolved
redevelopment agency, with the same legal effect as if the bonds or
other indebtedness had been issued, incurred, or entered into prior
to June 28, 2011, in full conformity with the applicable provisions
of the Community Redevelopment Law that existed prior to that date,
shall be included in the successor agency to the Redevelopment Agency
of the City and County of San Francisco's Recognized Obligation
Payment Schedule, and shall be secured by a pledge of, and lien on,
and shall be repaid from moneys deposited from time to time in the
Redevelopment Property Tax Trust Fund established pursuant to
subdivision (c) of Section 34172, as provided in paragraph (2) of
subdivision (a) of Section 34183. Property tax revenues pledged to
any bonds or other indebtedness obligations authorized by this
section are taxes allocated to the successor agency pursuant to
subdivision (b) of Section 33670 and Section 16 of Article XVI of the
California Constitution.
(h) The successor agency to the Redevelopment Agency of the City
and County of San Francisco shall make diligent efforts to ensure
that the lowest long-term cost financing is obtained. The financing
shall not provide for any bullets or spikes and shall not use
variable rates. The agency shall make use of an independent financial
advisor in developing financing proposals and shall make the work
products of the financial advisor available to the department at its
request.
(a) Commencing on the operative date of this part,
agreements, contracts, or arrangements between the city or county, or
city and county that created the redevelopment agency and the
redevelopment agency are invalid and shall not be binding on the
successor agency; provided, however, that a successor entity wishing
to enter or reenter into agreements with the city, county, or city
and county that formed the redevelopment agency that it is succeeding
may do so subject to the restrictions identified in subdivision (c),
and upon obtaining the approval of its oversight board.
(b) Notwithstanding subdivision (a), any of the following
agreements are not invalid and may bind the successor agency:
(1) A duly authorized written agreement entered into at the time
of issuance, but in no event later than December 31, 2010, of
indebtedness obligations, and solely for the purpose of securing or
repaying those indebtedness obligations.
(2) A written agreement between a redevelopment agency and the
city, county, or city and county that created it that provided loans
or other startup funds for the redevelopment agency that were entered
into within two years of the formation of the redevelopment agency.
(3) A joint exercise of powers agreement in which the
redevelopment agency is a member of the joint powers authority.
However, upon assignment to the successor agency by operation of the
act adding this part, the successor agency's rights, duties, and
performance obligations under that joint exercise of powers agreement
shall be limited by the constraints imposed on successor agencies by
the act adding this part.
(4) A duly authorized written agreement entered into at the time
of issuance, but in no event later than June 27, 2011, of
indebtedness obligations solely for the refunding or refinancing of
other indebtedness obligations that existed prior to January 1, 2011,
and solely for the purpose of securing or repaying the refunded and
refinanced indebtedness obligations.
(c) An oversight board shall not approve any agreements between
the successor agency and the city, county, or city and county that
formed the redevelopment agency that it is succeeding, except for
agreements for the limited purposes set forth in subdivision (b) of
Section 34177.3. A successor agency shall not enter or reenter into
any agreements with the city, county, or city and county that formed
the redevelopment agency that it is succeeding, except for agreements
for the limited purposes set forth in subdivision (b) of Section
34177.3. A successor agency or an oversight board shall not exercise
the powers granted by subdivision (a) to restore funding for any item
that was denied or reduced by the department. This subdivision shall
apply retroactively to all agreements entered or reentered pursuant
to this section on and after June 27, 2012. Any agreement entered or
reentered pursuant to this section on and after June 27, 2012, that
does not comply with this subdivision is ultra vires and void, and
does not create an enforceable obligation. The Legislature finds and
declares that this subdivision is necessary to promote the
expeditious wind down of redevelopment agency affairs.
For purposes of this chapter with regard to a
redevelopment agency that becomes subject to this part pursuant to
Section 34195, only references to "October 1, 2011," and to the
"operative date of this part" shall be modified in the manner
described in Section 34191. All other dates shall be modified only as
necessary to reflect the appropriate fiscal year or portion of a
fiscal year.