Res H-13-01RESOLUTION NO. H -13 -01
A RESOLUTION OF THE POWAY HOUSING AUTHORITY
APPROVING AND ACCEPTING THE TRANSFER OF
THE SMITH SETTLEMENT FUND AND OBLIGATIONS
UNDER THE SMITH JUDGMENT FROM THE CITY OF POWAY
WHEREAS, the City Council of the City of Poway ( "City Council ") adopted the
Redevelopment Plan for the Paguay Redevelopment Project Area (the "Project Area ") on
December 13, 1983 by Ordinance No. 117, as amended by Ordinance No. 415 on June
15, 1993, Ordinance No. 439 on December 13, 1994, Ordinance No. 593 on December 2,
2003, Ordinance No. 605 on August 3, 2004, Ordinance No. 611 on October 26, 2004,
Ordinance No. 641 on July 18, 2006, and Ordinance No. 657 on June 12, 2007 (the
"Redevelopment Plan "); and
WHEREAS, an action was filed in Superior Court of the County of San Diego
(Smith v. All Persons Interested in the Matter of the Validity of the Amendment to the
Redevelopment Plan for the Paguay Redevelopment Project Area, Case No. 667691)
challenging the 1993 amendment to the Redevelopment Plan, which action named the
City of Poway and the Poway Redevelopment Agency as defendants; and
WHEREAS, a judgment in the case was filed on January 26, 1995 ( "Smith
Judgment ") pursuant to a Stipulation Re Judgment filed on October 20, 1994; and
WHEREAS, the Smith Judgment required the Poway Redevelopment Agency to
allocate 2% of its gross tax increment funds beginning in fiscal year 2000 -2001 ( "Smith
Settlement Fund ") for distribution to non - profit housing entities for specified housing uses;
and
WHEREAS, the City of Poway and the Poway Redevelopment Agency entered
into an Amended and Restated Cooperation Agreement dated March 11, 2011
( "Cooperation Agreement ") to provide for the City's implementation of certain
redevelopment projects and programs described therein, including the housing activities
required by the Smith Judgment; and
WHEREAS, in furtherance of the City's obligations under the Cooperation
Agreement, on March 11, 2011 by Resolution No. R -11 -07 the Poway Redevelopment
Agency transferred to the City all of the Redevelopment Agency's rights, interests and
obligations under the Smith Judgment and the Smith Settlement Fund; and
WHEREAS, the City has administered the Smith Settlement Fund pursuant to the
City's obligations as a defendant in the Smith Judgment and to fulfill the Poway
Redevelopment Agency's obligations under the Smith Judgment; and
WHEREAS, by operation of Assembly Bill No. 26 (2011 -2012 1St Ex. Sess.) as
amended by Assembly Bill No. 1484 (2011 -2012 Regular Session) (collectively, the
"Dissolution Act "), the Poway Redevelopment Agency was dissolved on February 1,
2012; and
Resolution No. H -13 -01
Page 2
WHEREAS, pursuant to the Dissolution Act, on January 17, 2012 the City Council
of the City of Poway elected to be the Successor Agency to the Poway Redevelopment
Agency (the "Successor Agency "), which is a legal entity that exists separate and
independent of the City of Poway; and
WHEREAS, pursuant to the Dissolution Act, on January 17, 2012 the City Council
of the City of Poway designated the Poway Housing Authority as the entity responsible
for performing the housing functions previously performed by the Poway Redevelopment
Agency and the Housing Authority accepted its designation as the entity that will perform
the housing functions previously performed by the Poway Redevelopment Agency; and
WHEREAS, on February 1, 2012 all assets, properties, contracts, leases, books
and records, buildings and equipment of the Poway Redevelopment Agency transferred
by operation of law to the control of the Successor Agency for administration pursuant to
the Dissolution Act; and
WHEREAS, Section 34179.6 of the Dissolution Act required the Successor
Agency to submit to the California Department of Finance ( "DOF ") a Due Diligence
Review ( "DDR ") to identify the Successor Agency funds that are available for distribution
to the taxing agencies; and
WHEREAS, DOF's review of the DDR determined that the Smith Settlement Fund
was restricted by the terms of the Smith Judgment and was not available for distribution
to the taxing agencies but that the Smith Settlement Fund should be returned to the
Successor Agency; and
WHEREAS, Section 34177(g) of the Dissolution Act requires the Successor
Agency to effectuate the transfer of the housing functions and assets of the Poway
Redevelopment Agency to the Poway Housing Authority and with the exception of the
Smith Judgment and the Smith Settlement Fund held by the City, those housing functions
and assets have been transferred to the Housing Authority; and
WHEREAS, Section 34176(b) of the Dissolution Act requires all assets associated
with the housing activities of the Poway Redevelopment Agency, except for amounts in
the Low and Moderate Income Housing Fund ( "LMIHF "), to be transferred to the Poway
Housing Authority in its capacity as housing successor; and
WHEREAS, the Smith Settlement Fund comprises an allocation of gross tax
increment that was in addition to the 20% of gross tax increment that the Poway
Redevelopment Agency was required by California Community Redevelopment Law
(Health & Safety Code §33000, et seq.) to deposit in its LMIHF; and
WHEREAS, the Smith Settlement Fund was not required to be deposited in the
LMIHF and has been continuously maintained in a separate account from the LMIHF and
thus is excluded from the housing assets to be retained by the Successor Agency; and
Resolution No. H -13 -01
Page 3
WHEREAS, in furtherance of Section 34177(g) of the Dissolution Act, the City
Council has resolved to transfer to the Poway Housing Authority the Smith Settlement
Fund and to assign to the Housing Authority the Poway Redevelopment Agency's
obligations under the Smith Judgment for administration by the Housing Authority in its
capacity as the housing successor to the Poway Redevelopment Agency; and
WHEREAS, the transfer of the Smith Settlement Fund and the assignment of the
Poway Redevelopment Agency's obligations under the Smith Judgment to the Poway
Housing Authority will accomplish the public purposes of implementing the
Redevelopment Plan, increasing, improving and preserving the community's supply of
affordable housing and carrying out the terms of the Smith Judgment; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE the Poway Housing Authority does hereby resolve as follows:
Section 1. The Housing Authority hereby finds and determines that the foregoing
recitals are true and correct.
Section 2. The Housing Authority has received and heard all oral and written
objections to matters pertaining to this transaction, and all such oral and written
objections are hereby overruled.
Section 3. The Housing Authority hereby approves and accepts the transfer of the
Smith Settlement Fund from the City for administration by the Housing Authority
consistent with the terms of the Smith Judgment.
Section 4. The Housing Authority hereby approves of and accepts the assignment
by the City to the Poway Housing Authority of the Poway Redevelopment Agency's rights
and obligations under the Smith Judgment.
Section 5. The Executive Director of the Housing Authority or designee is hereby
authorized and directed to take all reasonable and necessary actions and sign on behalf
of the Housing Authority all reasonable and necessary documents and instruments first
approved in writing by the Housing Authority Counsel to carry out the transfer of the
Smith Settlement Fund and the assignment of the Poway Redevelopment Agency's rights
and obligations under the Smith Judgment from the City to the Poway Housing Authority.
Section 6. This Resolution shall take effect immediately upon its adoption.
Resolution No. H -13 -01
Page 4
PASSED, ADOPTED and APPROVED by the Poway Housing Authority at a
regular meeting this 6th day of August 2013.
Don Higginson, Chairman
Poway Housing Authority
ATTEST:
Aqk)�-Uq. 0 (�Q "Af(I A J
Sheila .Cobian, M ,Secretary
Poway using Authority
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO)
I, Sheila R. Cobian, Secretary, Poway Housing Authority, do hereby certify under
penalty of perjury that the foregoing Resolution No. H -13 -01 was duly adopted by the
Poway Housing Authority at a meeting of said Housing Authority held on the 6th day of
August 2013 and that it was so adopted by the following vote:
AYES: CUNNINGHAM, VAUS, GROSCH, MULLIN, HIGGINSON
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
kA 010a cgxo"' --
Shell R. Cobian, CMC, Secretary
Poway Housing Authority