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RESOLUTION NO. CRA 2009-013
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA RETURNING THE HOUSING SET
ASIDE FUNDS THAT WERE BORROWED IN
ORDER TO MAKE THE 2008-2009 PAYMENT TO
THE EDUCATIONAL REVENUE AUGMENTATION
FUND
BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS:
Section 1. The Community Redevelopment Agency of the City of Santa Ana hereby
finds, determines and declares as follows:
A. As a result of Senate Bill 1389 (SB 1389) implementing the California
State Budget for fiscal year 2008-2009, the Community Redevelopment Agency ("Agency")
was required to make a $3,679,545 payment to the County Educational Revenue
Augmentation Fund ("ERAF") by May 10, 2009 or risk having the County Auditor/Controller
withhold property tax revenue from the City's general fund to the extent that such payment was
not made by the Agency.
B. The legislation allowed the Agency to borrow up to fifty percent of the
amount required to be allocated to the Low and Moderate Income Housing Fund during fiscal
year 2008-2009 in order to make this payment. The funds could be borrowed for up to ten
years.
C. As a condition of borrowing from the Low and Moderate Income Housing
Fund pursuant to Health & Safety Code § 33681.12, the Agency was required to make a
finding that there were insufficient other moneys to remit the required ERAF payment.
D. In May of 2009, after the Agency authorized the borrowing of said funds
for the ERAF payment, the Superior Court ruled that AB 1389 was unconstitutional. The
California Attorney General's Office recently notified redevelopment agencies that the State
has abandoned its appeal of the Superior Court ruling, which is now final and binding.
E. At this time, as the ERAF payment for fiscal year 2008-2009 is no longer
required to be paid by the Agency, these borrowed funds should be returned to the Low and
Moderate Income Housing Fund. Pending litigation may require a more substantial SERAF
Supplemental Educational Revenue Augmentation Fund ("SERAF") payment for fiscal year
2009-2010, which may result in the Agency borrowing such funds in order to make such
payment.
Section 2. The Agency hereby finds that the legally borrowed funds in the amount of
$3,679,545 must be returned to the Low and Moderate Income Housing Fund due to the ruling
that AB 1389 was unconstitutional.
CRA Resolution No. 2009-013
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Section 3. This Resolution shall take effect immediately upon its adoption and the
Secretary shall attest to and certify the vote adopting this Resolution.
ADOPTED this 7th day of December, 2009.
APPROVED AS TO FORM:
Joseph W. Fletcher, General Counsel
By: ~~ ~ ~ .~~~~
Lisa E. Storck
Assistant General Counsel
AYES: Boardmembers: Alvarez, Benavides, Bustamante, Martinez,
Sarmiento, Tinaiero, Pulido (7)
NOES: Boardmembers: None (0)
ABSTAIN: Boardmembers: None (0)
NOT PRESENT: Boardmembers: None (0)
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Secretary of the Agency, do hereby attest to and certify that Resolution
No. CRA 2009-013 to be the original resolution adopted by the Community Redevelopment
Agency of the City of Santa Ana on December 7, 2009.
Date: ~~~(a`3o/a
~ ~ , .~
Secretary, Community Red lopment Agency
City of Santa Ana
CRA Resolution No. 2009-013
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