OVERVIEWOn June 27, 2012, the Governorsigned Assembly Bill 1484, whichbecame effective immediately.AB 1484 makes substantiveamendments to ABx1 26, enacted onJune 28, 2011 that directed thedissolution of all California’sredevelopment agencies.
MAJOR PROVISIONSTrue-Up ProcessDue Diligence Review (DDR) to becompleted by October 1st.Annual Audits
MAJOR PROVISIONSFindings of CompletionCertain City Loans RecognizedAllows Auditor-Controllers (A-Cs) theopportunity to “object” to items onROPS
TRUE-UP PROCESSDemand Letters issued July 9, 2012 for“excess funds” distributed in ROPS 1Successor Agencies (SAs) required toremit payments by July 12, 2012A-C distributed excess funds collectedon July 16, 2012 to taxing entities
TRUE-UP PROCESSPass-through reported on ROPS 1, butnot paid will be recovered with January2nd ROPS 3 paymentA-C will distribute pass-through totaxing entities on January 2nd with pass-through applicable to ROPS 3
DUE DILIGENCE REVIEWTo be completed by October 1, 2012SA responsible for hiring licensedaccountantPurpose of DDR is to determineunobligated balances available fortransfer to taxing entities
DUE DILIGENCE REVIEWUnobligated Low and ModerateHousing Funds to be remitted to A-C inNovemberOther unobligated funds to be remittedto A-C in AprilDelays in submitting DDRs may delayFinding of Completion
ANNUAL AUDITSSA responsibility also hire a certifiedpublic accountant to conduct a post-audit of a successor agency’s financialtransactions and recordsThe audit must be performed at leastonce annually (Section 34177(n))
FINDING OF COMPLETIONDOF will issue a finding of completion to asuccessor agency that pays the followingamounts: The True-Up Amounts. (Section 34183.5). The amount determined in the audit of the LMIHF (Section 34179.6). The amount determined in the audit of all other funds (Section 34179.6)
FINDING OF COMPLETIONSAs that receive a Finding of Completioncan: – Establish a long range plan to dispose of assets– Have city loans recognized as enforceable obligations
CITY LOAN REPAYMENTSSubject to Oversight Board andDOF approvalCannot be repaid until 2013-14 orlaterMust be discounted at LocalAgency Investment Fund (LAIF)rate
CITY LOAN REPAYMENTSSubject to limitations whichencourage residual from SAs(34191.4(b)(A))20% of repayment shall be deductedand transferred to the Low andModerate Income Housing AssetFund
A-C “OBJECTIONS”A-C has until October 1st (ROPS 3 only) toreview ROPS and object to items that arenot demonstrated to be EnforceableObligations and funding sourcesFor subsequent ROPS, A-C has up to 60days prior to payment distributions to objectto itemsDOF has final decision authority
IMPORTANT DATESJuly 9: County A-C notifies SA of amount offunds owed to taxing entities based upondistribution for ROPS covering January 2012 toJune 2012. (Section 34183.5(b)(2)(A)).July 12: SA must make payment to A-C fordeposit into Redevelopment Property Tax TrustFund and distribution to taxing entities. (Section34183.5(b)(2)(A).July 16: County A-C distributes funds receivedfrom SA to taxing entities. Monies receivedafter July 12 date distributed within 5 days ofreceipt. (Section 34183.5(b)(2)(A)).
July 18: City sales tax payment suspended ifsuccessor agency doesn’t make July 12payment. (Section 34183.5(b)(2)(A)).August 1: Successor housing entity mustsubmit to DOF a list of housing assets thatcontains explanation of how assets meetcriteria set forth in the law. DOF may object toany of the assets within 30 days. If after meetand confer, DOF continues to object, asset mustbe returned to the SA. (Section 34176(a)(2).Definition of “housing asset” found at section34176(e)). Entity assuming the housingfunctions must create a separate Low andModerate Income Housing Asset Fund (Section34176(d)).
August 15 +/-: Oversight board meets to consider ROPS for January 1, 2013 through June 30, 2013 which must be submitted to DOF by September 1. September 1: ROPS for January 1 2013 through June 30, 2013 must be submitted electronically to DOF after oversight board approval. DOF makes determinations within 45 days. Within 5 days of determination, SA may request additional review and meet and confer. (Section 34177(m)). – Future ROPS must be submitted to DOF 90 days prior to property tax distribution. City subject to civil penalty of $10,000 per day for successor agency’s failure to timely submit ROPS (Section 34177(m)(2)).♦ As soon as possible: SA to hire licensed accountant to conduct due diligence review of unobligated balances in LMIHF and other funds and submit for approval to OB.
October 1: County A-C may providenotice to SA of any “objections” to itemson January – June 2013 ROPS. (Section34182.5).October 1: SA submits to oversightboard, county A-C, State Controller, andDOF results of the review of the LMIHFconducted by the licensed accountantretained by SA.
October 1: County A-C completes agreed-uponprocedures audit of each former redevelopment agency.(Section 34182(a)(1)). County A-C provides estimate ofproperty tax payments to SA for upcoming six-monthperiod. (Section 34182(c)(3)).October 15: Oversight Board must review, approve, andtransmit LMIHF audit to DOF, auditor-controller. Notethat oversight board must hold a public session toconsider audit at least five business days prior to themeeting of oversight board in which LMIHF audit isconsidered for approval. (Section 34179.6(b) and (c)).November 9: Last day for DOF to complete review ofLMIHF audit and report findings, determinations, anddecision to overturn oversight board decision to allowretention of successor agency assets to the OB and SA.(Section 34179.6(d).
Within 5 business days of receipt of DOF final auditdetermination: Successor agency may request meetand confer to resolve disputes with DOF findings onLMIHF audit. (Section 34179.6(e)). DOF must confirmor modify its determination and decisions within 30 days.Within 5 business days of receipt of DOF final auditdetermination: Successor agency to transfer LMIHFfunds to county A-C. (Section 34179.6(f)).Penalties for non-payment: DOF may order an offsetof sales and use tax or property tax allocations.December 1: SA may report to county A-C that totalamount of available revenues will be insufficient to fundenforceable obligations. (Section 34183(b)).December 15: SA submits to oversight board, county A-C, State Controller and DOF results of the review of allother fund and account balances by licensed accountant. (Section 34179.6(a)).
2013January 2: County A-C makes distributions of propertytax for January – June 2013 ROPS. (Section 34183(b)).January 15: Oversight board must review, approve, andtransmit other funds audit to DOF, county A-C. (Section34179.6(a)).March 3: SA submits ROPS for July 1, 2013 throughDecember 31, 2013 to DOF after oversight boardapproval. (Section 34177(m)).April 1: County auditor-controller provides estimate ofproperty tax payments to SA for upcoming six-monthperiod. (Section 34182(c)3)).April 1: DOF completes review of other funds audit andreports findings, determinations, and decision to overturnoversight board decision to allow retention of successoragency assets to OB and SA. (Section 34179.6(a)).
April 6+/-: No later than 5 days after receiving DOFdetermination on other funds audit, SA may requestmeet and confer to resolve disputes with DOF findings.DOF must confirm or modify its determination anddecisions within 30 days.April 10+/-: SA to transfer other “cash and assets”audit payment to A-C if meet and confer processcomplete. (Section 34179.6(f)). City sales tax/propertytax may be offset for unfunded amounts.May 1: SA reports to A-C if total amount ofavailable revenues will be insufficient to fundenforceable obligations. (Section 34183(b)).