AgdaPkt 2012-01-23 - Laserfiche WebLink

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8.B.-Page3 There are several factors to consider in determining whether to retain the Agency's housing assets and functions. • The City has an interest in playing an active role in the ongoing effort to provide and maintain affordable housing and is best suited in terms of community interest, to administer affordable housing programs within its jurisdiction. • By retaining the housing assets, the City will be able to exercise redevelopment law housing powers to fulfill its regional housing obligations. • CDBG and/or HOME funds were also used on all but one of the affordable housing, so the City is already required to monitor the housing projects to ensure that the CDBG/HOME requirements are met. • The City will not be receiving a funding source to account for administrative costs associated with performing the housing functions. • The new law is ambiguous about the extent of the housing obligations being assumed. The City may be taking on the following obligations and risks: o Potential replacement and relocation requirements; o Inclusionary requirements; and o Monitoring and enforcing affordable housing units and projects; o Developing property acquired with housing fund within 5 years; o Potential liability from contaminated property. Although affordable housing funds will be limited, staff will ensure the following housing activities continue if the City elects to become the successor agency: • enforce the terms of affordable housing agreements and covenants, • conduct the required annual monitoring, • oversee the sale or transfer of title requested by a property owner or financing entity to ensure that the existing affordable housing covenants remain intact, and • oversee development of property purchased with housing funds, • collect and presumably retain the outstanding affordable housing loans receivable totaling $5.7 million, including loans issued under the First Time Homebuyer Loan Program and to First Community Housing for the construction of the Villa Montgomery apartments on EI Camino Real. Three properties were acquired with housing funds: two contiguous vacant properties on Bradford Street and another property at 611 Heller Street. These sites have some level of contamination that must be addressed before they are developed for housing. Staff has done the preliminary work to develop a remediation plan for the Bradford Street properties. The Heller Street property does not have a plan for remediation, yet. Staff anticipated negotiating with the State the process for remediation, but with the Court-ordered stay, no action was taken. To proceed with the development of this site, the City will have to complete an action plan for any contamination. EOPS AB1X26 required that redevelopment agencies prepare and file an Enforceable Obligation Payment Schedule (EOPS) in August 2011. As such, the Agency adopted its EOPS on August 22, 2011. Because of the extensions provided by the Supreme Court in its December 29, 2011 ruling, the Agency must update its EOPS to reflect payments