Latest Developments With Respect To Redevelopment Successor Agencies

1. Latest Developments With Respect To Redevelopment Successor Agencies Department of Finance Local Government Unit

2. Overview • Finance Goals and Objectives • Local Taxing Entities • Completed Tasks • Housing Asset Transfers • Recognized Obligation Payment Schedules • Due Diligence Reviews • Upcoming Tasks and Focus • Final and Conclusive Requests • Finding of Completion • Long-Range Property Management Plan • Other Endeavors • Questions and Answers

3. Finance Goals and Objectives • Protect Core Public Services • Protect Bond Holders • Expeditiously Wind Down former RDA Affairs • Solve Problems (Get to Yes when Possible) • Develop Positive Working Relationships • Minimize Litigation when Possible

4. Local Taxing Entities • Dissolution Provides General Purpose Revenues to Affected Taxing Entities (Counties, Cities, and Special Districts) • Current Estimates: • $1.6 Billion to Counties • $1.2 Billion to Cities • $400 Million to Special Districts • Increases Local Flexibility with Regards to Use of Money

5. Completed Tasks • Housing Asset Transfers • Recognized Obligation Payment Schedules • Due Diligence Reviews

6. Housing Asset Transfers • Housing Asset Transfer Forms were Due to Finance by August 1, 2012 • Finance Received 372 Requests to Transfer Housing Assets to a Housing Successor Entity • Finance Issued 372 Letters Approving and/or Objecting to Transfers Have been Sent Out • 108 Requests to Meet and Confer on Finance Decisions • 102 Meet and Confer Sessions Held to Date • 6 Meet and Confer Requests Outstanding

7. Recognized Obligation Payment Schedule • Detailed Listing of Upcoming Enforceable Obligations of the Successor Agency • Submitted to Finance Every Six Months (90 Days Prior to Property Tax Distribution) • Finance has 45 Days to Review and Successor Agencies can Meet and Confer if they Disagree with Finance’s Determination • Successor Agencies Can Only Pay those Enforceable Obligations Listed and Approved on the Schedules from the Funding Source Identified on the Schedule • Approval is only Good for the Upcoming Six Month Period

8. Recognized Obligation Payment Schedule • Completed 3 Full Cycles (ROPS I, ROPS II, and ROPS III) • 385 ROPS Forms were Submitted to Finance for the Current Six-Month Period (Jan – June 2013) • Approximately 85 ROPS have already been Submitted for the Next Six-Month Period (July – Dec 2013) • Due Date is March 1st July – Dec 2013 Period • New Naming Convention has Been Instituted • ROPS 13-14A (July – Dec 2013), 13-14B (Jan-June 2014), 14-15A (July – Dec 2014), etc…

9. Due Diligence Reviews • Due Diligence Reviews Identify Unencumbered Balances that Should be held by Successor Agencies • Two Separate Reviews were Required: • Low and Moderate Income Housing Fund (LMIHF) • All Other Funds and Accounts

10. LMIHF Due Diligence Review • Due to Finance by October 15th • 349 Reviews Have been Submitted to Finance • 35 More Reviews are Anticipated • 342 Reviews Have Been Completed by Finance • 185 Meet and Confer Requests Received • All Meet and Confer Requests have either Been Conducted or are Scheduled

11. Other Funds Due Diligence Review • Due to Finance by January 15th • 315 Reviews Have been Submitted to Finance • 70 More Reviews are Anticipated • 1 Review Has Been Completed by Finance • No Meet and Confer Requests Have Occurred • Anticipate Having Nearly 100 Reviews Completed by end of February

12. Upcoming Tasks and Focus • Final and Conclusive Requests • Finding of Completion Issuances • Long-Range Property Management Plans

13. Final and Conclusive Enforceable Obligations • A Successor Agency can request to have an Enforceable Obligation be determined to be final and conclusive • If Finance approves the request, the Enforceable Obligation would no longer be subject to DOF rejection during ROPS reviews • This process removes the uncertainty involved with the six-month approval of ROPS items • 11 Requests Have Been Received and 7 Have Been Approved with 4 Requests Awaiting Decisions

14. Finding of Completion • Finance will Issue a Finding of Completion within 5 Days of Verification that the Successor Agency has Paid the Amounts Required by the July True Up, LMIHF Due Diligence Review, and Other Funds Due Diligence Review • Benefits of Receiving a Finding of Completion Include: • Successor Agency Can Dispose of Property pursuant to an Approved Long-Range Property Management Plan • Loans between the former RDA and the Sponsoring Entity can become enforceable • Stranded Bond proceeds from bonds issued before Jan 1, 2011 can be used for the purposes in which they were sold • 1 Finding of Completion Has Been Issued

15. Long-Range Property Management Plan • AB 1484 Suspended Property Disposition Until Finding of Completion Received (exceptions include Housing Assets, Pursuant to an EO, and Governmental Purpose) • Successor Agencies shall prepare a Property Plan that Addresses the Disposition and Use of the Real Properties of the former RDA • The Property Plan shall be submitted within Six Months Following the Issuance of a Finding of Completion • To Date 3 Oversight Board Approved Property Plans Have Been Submitted to Finance

16. Long-Range Property Management Plan • Property Plans have to be Approved by Finance • The Law Specifies Requirements of the Plan • The Four Types of Disposition Include: • Retention for Governmental Purpose • Retention by City for Future Development • Sale of the Property • Use of the Property to Fulfill an Enforceable Obligation

17. Other Endeavors • ROPS Automation Efforts • Dedicated County Teams • Complete Wind-Down Information • Oversight Board Training

18. Additional Information DOF public website (www.dof.ca.gov/redevelopment) • FAQs • Templates • DOF Letters Contact Information • (916) 445-1546 • Redevelopment_Administration@dof.ca.gov

19. Questions