(OB-2012-23) O V E RSIG H T BOARD RE SO LU TIO N NUMBER OB-2012-23 A RESOLUTION O F THE O V E RSIG H T B O A RD FOR TH E C ITY OF SAN D IE G O REDEVELOPMENT SUCCESSOR A G E N C Y D IRE C TIN G TH E SUCCESSOR AGENCY TO TRA N SFE R C E RTA IN A FFO RD A B LE HOUSING A SSE TS TO TH E C ITY OF SA N DIEGO, IN ITS CAPACITY AS TH E SUCCESSOR HOUSING ENTITY, A N D TO THE LO W AND M O D E R A TE IN C O M E H O U SIN G A SSE T FU N D

WHEREAS , the form er Redevelopment A gency of the C ity of San D iego (Form er RDA) adm inistered the implementation of various redevelopment projects, program s, and activities w ithin designated redevelopm ent project areas throughout the C ity of San D iego (C ity); and W H E RE A S, the Form er RD A dissolved as of February 1, 2012, in accordance w ith a deadline for elim ination of all redevelopm ent agencies throughout California set forth in A ssem bly B ill x1 26 (A B 26), as m odified by the C alifornia Suprem e Court in a final opinion issued on D ecem ber 29,201 1 , in litigation designated as C ase N o.

S194861; and W H E RE A S, before the Form er RDA's dissolution, the C ity C ouncil adopted Resolution N o. R-307238 effective January 12, 2012, designating the C ity to serve as the successor agency to the Form er RD A (Successor A gency) pursuant to C alifornia H ealth and Safety C ode

section 34173(d)(1), and further designating the C ity to serve as the successor housing entity to the Form er RD A (Successor H ousing E ntity) for purposes of performing the Form er R D A 's housing functions, retaining the Form er RDA's housing assets , and assum ing the Form er R D A 's housing responsibilities pursuant to C alifornia H ealth and Safety C ode

section 34176(a)(1); and W H E RE A S, the Successor A gency is w inding dow n the Form er RDA's affairs in accordance w ith A B 26, enacted on June 28 , 2011, and A ssem bly B ill1 484 (A B 1484), enacted on June 27, 2012; and Doc No . 433954

(OB-2012-23) W H E RE A S, A B 26 contem plates that the Successor A gency w ill transfer the Former RDA's affordable housing assets (H ousing Assets) to the C ity as Successor H ousing E ntity at the O versight B oard's direction, but fails to specify any tim e fram e for such transfer; and

WHEREAS, AB 1484 expands the scope of the H ousing A ssets to be transferred from the Successor A gency to the C ity as Successor H ousing E ntity, as specified in C alifornia H ealth and Safety Code

section 3 4176(e); and W H E RE A S, AB 1484 also requires the C ity to subm it to the C alifornia D epartm ent of Finance (D O F), by August 1, 2012, a list of H ousing A ssets previously transferred by the Successor A gency to the C ity as Successor H ousing E ntity, as specified in California H ealth and Safety C ode

section 34176(a)(2); and W H E RE A S, at the DOF's direction, the C ity subm itted a blank list of H ousing A ssets to the D O F on A ugust 1, 2012, show ing that no H ousing A ssets had been transferred by the Successor A gency to the Successor H ousing E ntity up to that point in tim e; and W H E RE A S, the C ity subm itted the blank list of H ousing A ssets to the D O F w ith a cover letter reserving all rights and confirm ing the Successor A gency's intention to transfer the H ousing A ssets to the Successor H ousing E ntity after obtaining the approval of the Oversight B oard and the D O F, as required by C alifornia H ealth and Safety C ode

section 3 4181(c); and W H E RE A S, the Successor A gency has prepared a com plete list of H ousing Assets (H ousing A ssets List), a copy of w hich is included as A ttachm ent B to the Staff Report accom panying this item , and is incorporated herein by this reference; and W H E RE A S, the H ousing A ssets List is intended to supersede the earlier blank list of H ousing A ssets and to reflect the proposed transfer of H ousing Assets from the Successor A gency to the Successor H ousing E ntity; and Doc No . 433954

(OB-2012-23)

WHEREAS , the Housing A ssets List includes several mixed-use assets that com bine both affordable housing and other types of property use; and

WHEREAS , as to each mixed-use asset and consistent w ith C alifornia H ealth and Safety C ode

section 3 4176(£), the Oversight B oard has considered the overall value to the local community , as w ell as the benefit to the local taxing entities, of (

a) keeping the entire mixed-use asset intact in the Successor H ousing E ntity's ow nership and control , (

b) dividing the title and control over the mixed-use asset betw een the Successor H ousing E ntity, on the one hand , and the Successor A gency or other public or private agencies , on the other hand, or (

c) disposing of the mixed-use asset through a revenue-sharing arrangement; and

WHEREAS , California H ealth and Safety C ode

section 3 4176(

d) requires the Successor Housing E ntity to create a new , separate fund , know n as the Low and Moderate Income Housing A sset Fund (Housing Asset Fund), for purposes of retaining any encumbered affordable housing funds transferred from the Successor A gency and any funds generated from the Housing A ssets in the future; and

WHEREAS , the C ity C ouncil adopted tw o companion resolutions , designated as Resolution No . R-3 075 99 and Resolution No . R-307600 , both effective July 31 , 2012, approving the Successor Agency ' s execution and recording of the appropriate conveyance instruments , including quitclaim deeds and assignm ent and assum ption agreements, to accom plish the transfer of the H ousing A ssets to the Successor H ousing Entity , and also authorizing the establishm ent of the H ousing A sset Fund w ithin the City's treasury; and

WHEREAS , on September 18 , 2012, the O versight B oard held a public m eeting related to the proposed transfer o f the H ousing A ssets to the Successor H ousing E ntity, w ith at least ten days' notice to the public of the specific proposed actions, as required by California H ealth and Safety C ode

section 34181(£) ; a nd D oc N o. 433954

(OB-2012-23)

WHEREAS , the Oversight Board ' s decision regarding the transfer of H ousing A ssets will not becom e effective until after the decision has been approved or deem ed approved by the DOF in accordance w ith C alifornia H ealth and Safety C ode

section 3 4181 (f). NOW , TH E R E FO R E , B E IT RE SO LV E D by the O versight B oard as follows: 1. The Successor A gency is authorized and directed to transfer the H ousing Assets , as identified in the H ousing A ssets List, to the C ity as Successor Housing Entity , utilizing the appropriate conveyance instrum ents .

B efore transm itting the Housing A ssets List to the DOF, Successor Agency staff is authorized to add the inadvertently omitted line item 7 regarding the Park and M arket B lock to E xhibit E of the Housing A ssets List , w hich correlates to the e x isting line item 7 in E xhibit A of the Housing A ssets List. 2. The Successor A gency is authorized and directed to transfer the encumbered affordable housing funds, as identified in the H ousing A ssets List , to the Housing A sset Fund , w hich w ill be maintained in the City ' s treasur y on behalf of the Successor Housing Entity.

PASSED AND ADO PTED by the O versight B oard at a duly noticed m eeting ofthe O versight B oard held on September 18 , 2012 , by a unanim ous vote of 6 to 0, with Board M em ber D onovan absent. Cha ~ D oc N o. 433954