Transcript Redevelopment Agency

DEPARTMENT OF FINANCE
LOCAL GOVERNMENT UNIT
REDEVELOPMENT AGENCY
DISSOLUTION
OVERVIEW
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Local Government Unit
Goals and Objectives
 Audits and Review
 Dispute Resolution/Property Disposition
 Program, Policy, and Budgets
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OVERVIEW (CONTINUED)
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Current Projects
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July 2012 True Up Payments
Housing Asset Transfer Forms
ROPS Reviews
Due Diligence Reviews
Property Disposition
Meet and Confer Sessions
Finding of Completion
Long-Range Property Management Plan
Final and Conclusive Enforceable Obligation
Determinations
Questions and Answers
LOCAL GOVERNMENT UNIT (CONTINUED)
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Goals and Objectives
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Oversee the Winding Down of Redevelopment
Agencies
Protect Core Public Services by Ensuring Proper
Collection of Former Redevelopment Agency Tax
Increment and Liquidation of Property Assets for
Distribution to Local Taxing Entities
Developing Positive Working Relationships with
Counties, Cities, and Other Stakeholders
Protect Bond Holders
Minimize Litigation when Possible
LOCAL GOVERNMENT UNIT (CONTINUED)
Organization Chart
Program Budget Manager
Executive Assistant
Attorney
Office Technician
Assistant Program Budget Manager
Principal Program Budget Analyst
Principal Program Budget Analyst
Assistant Chief
Program, Policy, and Budgets
Dispute Resolution/Property Disposition
Audits and Review
Budget Analyst
Budget Analyst
Office Technician
Audit Managers
Budget Analyst
Audit Supervisors
45 Auditors and 20 Retired Annuitants
LOCAL GOVERNMENT UNIT (CONTINUED)
Program, Policy, and Budget -- Responsibilities
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Performs Budget Related Activities During the Fall
and Spring Budget Development Process
Compiles, Tracks, and Disseminates Fiscal and
Budget Information to Management and
Stakeholders
Serves as Primary Program Contact with Local
Government Entities, Legislative Consultants, and
the Legislative Analyst’s Office
Represents the Administration During Budget and
Committee Hearings
Develops and Refine Program Policies
Identify Issues with Enabling Legislation and Drafts
Proposed Fixes
Develop Reporting Forms and Assist with
Establishing Review Criteria
LOCAL GOVERNMENT UNIT (CONTINUED)
Audit and Review -- Responsibilities
 Develop Reporting Forms and Criteria for Review and
Approval of Recognized Obligation Payment
Schedules
 Develop Reporting Forms and Criteria for Review and
Approval of Housing Entities Assets Inventory
Submittals
 Develop Criteria for Review and Approval of True-Up
Payment Protests
 Develop Criteria for Review and Approval of Due
Diligence Reviews
 Develop Criteria for Review and Approval of Final
and Conclusive Enforceable Obligations
 Participate in Meet and Confer Sessions when
Needed
LOCAL GOVERNMENT UNIT (CONTINUED)
Meet and Confer/Property Disposition -- Responsibilities
 Develop Forms and Processes to be Used for the Meet
and Confer Sessions
 Coordinate Requests to Meet and Confer and Schedule
Meetings with Appropriate Staff and Local Entities
 Draft Findings of Meet and Confer Issues for
Distribution to Management and Requestors
 Establish Guidelines for Governmental Purpose
Property Dispositions
 Develop Approval Process for Finding of Completion
Issuances
 Develop Approval Process for Long-Range Property
Management Plans
CURRENT PROJECTS
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July 2012 True Up Payments
Housing Asset Transfer Forms
ROPS Reviews
Due Diligence Reviews
Property Disposition
Meet and Confer Sessions
Finding of Completion
Long-Range Property Management Plan
Final and Conclusive Enforceable Obligation
Determinations
CURRENT PROJECTS (CONTINUED)
JULY TRUE UP PAYMENT
Health and Safety Code (HSC) section 34183.5
subdivision (b) as added by AB 1484 clarified that
property tax distributed to redevelopment
agencies in December 2011 or January 2012
should have been subject to distribution through
the AB x1 26 mechanism.
 In part due to confusion about the Supreme
Court’s order regarding the changes in deadlines
under AB x1 26, very few, if any, counties
correctly adjusted the June 1 property tax
payments to successor agencies to capture the
amount of funds owed to taxing entities for the
January through June period.
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CURRENT PROJECTS (CONTINUED)
JULY TRUE UP PAYMENT
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No later than July 9, 2012, county auditorcontrollers were required to notify each successor
agency of the “residual” amount it still owes to
affected taxing entities (ATEs), if anything, for the
period covered by the January 2012 to June 2012
ROPS, after the payment of property tax-funded
enforceable obligations and agency administrative
costs that were approved by Finance.
Failure to remit the residual amount to the county
auditor-controller could result in penalties for the
successor agency and/or the city that created the RDA
27 Successor Agencies failed to remit payment
To date no penalties have been levied against these
Successor Agencies
CURRENT PROJECTS (CONTINUED)
HOUSING ASSET TRANSFERS
Pursuant to HSC section 34176 (a) (2), the entity
assuming the housing functions of the former
redevelopment agency is required to submit to
the Department of Finance a list of all housing
assets by August 1, 2012.
 The list must adequately detail how the housing
asset meets the criteria specified in HSC
Section 34176 (e) and must also include all assets
transferred between February 1, 2012 and the
date upon which the list is created.
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CURRENT PROJECTS (CONTINUED)
HOUSING ASSET TRANSFERS
DOF has 30 days to review and object to any
transfers included on the Housing Asset Transfer
Form.
 If there is any disagreement with our
determination the Housing Entity assuming the
functions may request a meet and confer on the
issue.
 To date Finance has issued over 360
determination letters and has received over 150
requests to meet and confer.
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CURRENT PROJECTS (CONTINUED)
ROPS REVIEW
Due Date
Document
Time Period
September 1
ROPS 3
January to June 2013
March 1
ROPS 4
July to December 2013
October 1
ROPS 5
January to June 2014
March 1
&
October 1
Subsequent ROPS
Every 6 months until
all obligations are paid
CURRENT PROJECTS (CONTINUED)
ROPS REVIEW
By September 1
• ROPS 3 for the period January to June 2013 is due to DOF
for review and approval.
Late Penalty
• $10,000 for each day late after September 1
• After 10 days, maximum administrative costs allowed is
reduced by 25 percent.
CURRENT PROJECTS (CONTINUED)
ROPS REVIEW
• Upon receipt of ROPS forms, DOF has 45 days to complete
review and deny any ROPS items.
• Agencies are not allowed to make payments on items
denied by DOF.
• Items not denied can be reviewed and denied during a
subsequent ROPS review.
• DOF’s final determination must be communicated to
successor agencies and county auditor-controllers 15 days
before the date of property tax distribution.
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January 1: January – June ROPS
June 1: July – December ROPS
CURRENT PROJECTS (CONTINUED)
ROPS REVIEW
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Successor agency may request to meet and confer
with department to resolve any disputes.
Request within 5 business days of determination.
Department shall either confirm or modify
determinations within 30 days of request.
CURRENT PROJECTS (CONTINUED)
OTHER ROPS NOTABLES
ROPS Database
 HSC 34186 (a) – Differences between actual
payments and past estimated obligations
 HSC 34182.5 – County A/C review of ROPS
 ROPS III forms and Review Letters on Website
 Exhibit 12
 ROPS Review Distributions
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CURRENT PROJECTS (CONTINUED)
DUE DILIGENCE REVIEWS
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HSC Section 34179.5 requires each Successor
Agency to employ a licensed accountant,
approved by the county auditor-controller and
with experience and expertise in local
government accounting, to conduct a due
diligence review to determine the unobligated
balances available for transfer to taxing entities.
As an alternative, an audit provided by the
county auditor-controller that provides the
information required by this section may be used
to comply with this section with the concurrence
of the oversight board.
CURRENT PROJECTS (CONTINUED)
DUE DILIGENCE REVIEWS
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There are two Due Diligence Reviews to be conducted
Low-Moderate Income Housing Fund (LMIHF)
 All other Funds and Accounts
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The LMIHF review is due to Finance by October 15,
2012
The all other Funds and Account review is due by
January 15, 2013
DOF is required to review the Due Diligence Reviews
and make determinations related to the unobligated
balances available for transfer to taxing entities
If there is a disagreement with DOF’s determination
a request to meet and confer may be made within 5
business days of DOF’s determination.
CURRENT PROJECTS (CONTINUED)
PROPERTY DISPOSITION
The following outlines the steps a successor agency must
follow prior to being allowed to dispose of non-housing
related property that is not for governmental purposes.
Due Diligence Review of Low and Moderate Income Housing (LMIH) Fund
By December 1, 2012, the county auditor-controller shall provide DOF a report specifying the amount submitted by each
successor agency pursuant to the due diligence review determination of the LMIH Fund, and specifically noting those
successor agencies that failed to remit the full required amount.
Due Diligence Review of Other Account and Funds
By April 20, 2013, the county auditor-controller shall provide DOF a report detailing the amount submitted by each successor
agency pursuant to the due diligence review determination of all other funds and accounts, and specifically noting those
successor agencies that failed to remit the full required amount.
Finding of Completion
DOF will issue a finding of completion to the successor agency once the full amount as determined during the due diligence
reviews has been paid, the county auditor-controller has reported those payment to DOF, and the full amount of the July
True-Up determinations have been paid.
Long-Range Property Management Plan
Within six months of receving a finding of completion, the successor agency shall develop a long-range property management
plan and submit the plan to the Oversight Board and DOF for approval.
Property Disposition
Upon approval of the Long-Range Property Management Plan, the successor agency may begin to dispose of and sell property
pursuant to their approved plan.
CURRENT PROJECTS (CONTINUED)
PROPERTY DISPOSITION
The following outlines the steps a successor agency can take
to transfer property that is for governmental purposes.
Submit to the Oversight Board for Approval
All successor agency actions to transfer ownership of those assets that were constructed and used for a governmental
purpose, such as roads, school buildings, parks, police and fire stations, libraries, and local agency administrative buildings,
to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an
asset shall be submitted to the Oversight Board for approval.
DOF Reveiw of Oversight Board Action
The actions of the Oversight Board shall be subject to review by DOF pursuant to Section 34179, except that the department
may extend its review period by up to 60 days.
Outcomes of DOF Review
If DOF objects to the transfer, the property shall remain
with the successor agency for inclusion in the Long Range
Property Management Plan.
If no action or objection is made by DOF, the Oversight
Board action shall be considered final and conclusive.
CURRENT PROJECTS (CONTINUED)
MEET AND CONFER SESSIONS
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AB 1484 allows for meet and confer with the
Department of Finance on specified issues.
Meet and Confer can only be used for new
determinations and cannot be used to change
decisions made prior to the enactment of AB 1484.
The specific topics authorized in AB 1484 for meet
and confer include:
ROPS submittals, beginning with the January 2013
through June 2013 ROPS. See HSC Section 34177 (m).
Previous ROPS are not authorized for meet
and confer.
 Housing Assets Submittals. See HSC Section 34176 (a)
(2).
 Due diligence reviews. See HSC Section 34179.6 (e).
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CURRENT PROJECTS (CONTINUED)
MEET AND CONFER SESSIONS
Formal Request
Must Submitted to
DOF
(Standardized Form
Must be Completed
and Submitted
along w/ Request)
DOF Will Review
Request and
Determine if it is
Valid
If Request is Valid
DOF will Schedule
Meeting and/or
Conference Call w/
Successor Agency
If Request is not
Valid DOF will
Notify Successor
Agency that Meet
and Confer Request
is Denied
DOF Will Develop
Draft Findings
Based on Meet and
Confer Session and
Share the Draft
Findings w/ the
Successor Agency
Successor Agency
will be Provided
Time to Respond to
Draft Findings
DOF will Issue and
Communicate Final
and Conclusive
Decision to
Successor Agency
CURRENT PROJECTS (CONTINUED)
FINDING OF COMPLETION
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The Department of Finance will issue a finding of
completion within five business days, once the following
conditions have been met:
The successor agency has paid the full amount as determined
during the due diligence reviews and the county auditorcontroller has reported those payments to the Department of
Finance.
 The successor agency has paid the full amount as determined
during the July True-Up process.
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Or
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The successor agency has paid the full amount upon a final
judicial determination of the amounts due and confirmation
that those amounts have been paid by the county auditorcontroller.
CURRENT PROJECTS (CONTINUED)
FINDING OF COMPLETION
Once a Finding of Completion is Made:
Real property can be transferred to the
Community Redevelopment Property Trust Fund
and used in accordance with the Long Range
Property Management Plan.
 Loans between the former RDA and the
Sponsoring Entity can become enforceable.
 Bond proceeds from bonds issued before
Dec 31, 2010 can be used for the purposes in
which they were sold.
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CURRENT PROJECTS (CONTINUED)
LONG-RANGE PROPERTY MANAGEMENT PLAN
The successor agency shall prepare a long-range
property management plan that addresses the
disposition and use of the real properties of the
former redevelopment agency.
 The report shall be submitted to the oversight board
and the Department of Finance for approval no
later than six months following the issuance to the
successor agency of the finding of completion.
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CURRENT PROJECTS (CONTINUED)
FINAL AND CONCLUSIVE EO DETERMINATIONS
A Successor Agency can request to have an
Enforceable Obligation be determined to be final
and conclusive.
 If DOF were to agree to the request, the Enforceable
Obligation would no longer be subject to DOF
rejection during ROPS reviews. DOF would only be
allowed to object to the dollar amount listed for EO
in the future.
 There is no timeline specified for DOF to make
determinations related to this type of request when
they come in.
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ADDITIONAL INFORMATION
DOF public website (www.dof.ca.gov/redevelopment)
FAQs
 Templates
 DOF Letters
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Contact Information
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(916) 445-1546
[email protected]
QUESTIONS