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1/28/2016 Section 2. SERAF Loan Agreement. a. Finding. The Oversight Board hereby finds and determines that the loan and advance of funds from the Low and Moderate Income Housing Fund for the SERAF payment was for legitimate redevelopment purposes. This finding is based on the following facts: 1 . The funds were borrowed from the Low and Moderate Income Housing Fund solely and explicitly to make the required payment into SERAF pursuant to Health and Safety Code Section 33690, which section specifically states in subsection (1) that it was the intent of the Legislature that said payments would directly or indirectly assist in the financing or refinancing, in whole or in part, of the community's redevelopment projects pursuant to Section 16 of Article XVI of the California Constitution. 2. Health and Safety Code Section 33020.5 provides that "redevelopment" includes payments to school districts in the fiscal year specified in Section 33690. 3 . Health and Safety Code Section 33690 authorizes redevelopment agencies to borrow from the Low and Moderate Income Housing fund for the SERAF payment in certain circumstances as provided in Resolution No. RD 10-03 . b. Approval of Ratification and Amendment to SERAF Loan Agreement. The Oversight Board hereby approves the Ratification and Amendment to SERAF Loan and Repayment Agreement between the City and the Successor Agency, in substantially the form currently on file with the Secretary of the Oversight Board, including without limitation the repayment schedule set forth therein. Staff is hereby authorized and directed, in cooperation with City and Successor Agency staff, to provide all information about the adoption of this Resolution and the approvals provided for herein to the Department of Finance, in accordance with Health and Safety Code Section 34179(h). c. Repayment of SERAF Loan. Notwithstanding any terms and conditions set forth in the SERAF Loan Repayment Agreement, the repayment of amount owing to the City under the SERAF Loan Repayment Agreement shall be subject to the limitations and restrictions set forth in Health and Safety Code Sections 34176(e)(6) and 34191 .4(b). Section 3 . City/RDA Loan Agreement. a. Finding. The Oversight Board hereby finds and determines that the loan and advance of funds from the City for the City/RDA Loan was for legitimate redevelopment purposes. This finding is based on the following facts: 1 . Under the City/RDA Loan Agreement, the City (the city that created the former Redeveloper Agency) transferred money to the Redevelopment Agency for use by the Redevelopment Agency for a lawful and legitimate redevelopment purpose, to assisted in the elimination of one or more blighted conditions as identified in the Redevelopment Plan, and the Redevelopment Agency was obligated under the City/RDA Loan Agreement to Page 3 of 5 ATTY/RES0.0011/OB RESO SERAF LOAN AGREEMENT OB RESO 16-02 REV: 01-25-16 VR