Redevelopment Agency

CALIFORNIA SUPREME COURT DECISION - AB 1X 26
On December 29, 2011, the State Supreme Court announced its decision in CRA v. Matosantos – a distressing ruling that will impede economic development and affordable housing in communities across California. The Court upheld AB 1X 26, the redevelopment “elimination” bill, but struck down AB 1X 27, the bill that would have allowed agencies to continue to function after making a payment to the state. This action was considered the “worst case scenario” for the state's approximately 400 redevelopment agencies. As a result of this action all agencies, including the Yuba City Redevelopment Agency, will officially be dissolved on February 1, 2012. All Agency assets and liabilities will be transferred to a “Successor Agency” that will bring to a close the redevelopment agencies’ business matters.  Efforts to delay this dissolution date in the Legislature (SB 659) were unsuccessful.

DISSOLUTION PROCESS
AB 1X 26 outlines a number of procedural requirements that the City must fulfill as part of the dissolution process.

Successor Agency: The first step of the dissolution process was the designation of a Successor Agency to oversee the “winding down” of the former Redevelopment Agency.  On January 10, 2012, in accordance with AB 1X 26, the City Council elected to be the Successor Agency in charge of existing redevelopment obligations. While it is not required that the City act as the successor agency, most cities are acting as the successor agencies, as it retains local control to the maximum extent possible. In addition, at their January 17, 2012 meeting the City Council elected to take on the housing functions of the former Redevelopment Agency.  Copies of both actions with associated Resolutions are available at the Redevelopment Document page.

The Successor Agency cannot continue or initiate any new redevelopment projects or programs.  The activities of the Successor Agency will be overseen by an Oversight Board, comprised primarily of representatives of other taxing agencies.  Until such time as the remaining debts of the former redevelopment agency are paid off, all Agency assets liquidated and all property taxes are redirected to local taxing agencies.

Enforceable Obligation Payment Schedule (EOPS):  In accordance with the provisions of AB 1X 26, the Agency Board was required to approve the adoption of an Enforceable Obligation Payment Schedule (EOPS) that identified those obligated payments that were planned to be made by the Agency between July 1, 2011 and December 31, 2011.  Enforceable obligations include: bonds; loans borrowed by the RDA, and set aside reserves as required for bonds.  The Agency was required to submit the proposed Schedule to the Department Of Finance, and the County Auditor-Controller by August 27, 2011.  The Agency can only make payments that are included on the Schedule.

The initial Enforceable Obligation Payment Schedule (“EOPS”) was adopted by the Yuba City Redevelopment Agency on August 16, 2011, pursuant to the State of California Health and Safety Code Section 34169. Click HERE to view the initial Enforceable Obligation Payment Schedule, which has been posted in accordance with Redevelopment Law.

On January 17, 2012, the Yuba City Redevelopment Agency adopted an Amended Enforceable Obligation Payment Schedule (“EOPS”) pursuant to the State of California Health and Safety Code Section 34169. Click HERE to view the Amended Enforceable Obligation Payment Schedule, which has been posted in accordance with Redevelopment Law. The purpose for the Amended EOPS is to identify those obligated payments that were planned to be made by the Agency between January 1, 2012 and June 30, 2012.

Oversight Board:  The Oversight Board directs the staff of the Successor Agency and has fiduciary responsibilities to holders of enforceable obligations.  Additionally, the Oversight Board approves all actions of the Successor Agency and establishes the Recognized Obligation Payment Schedule (ROPS). The Oversight Board is comprised of the following:

• One member appointed by the County Board of Supervisors
• One member appointed by the City Council
• One member appointed by the largest special district, by property tax share
• One member appointed by the County Superintendent of Education
• One member appointed by the Chancellor of California Community Colleges
• One member of the public appointed by the County Board of Supervisors
• One member representing the employees of the former RDA

The Oversight Board is required to be in place by May 1, 2012.  Future actions by the Oversight Board will be conducted as public meetings and noticed accordingly.  Once the Oversight Board is formed, details regarding those meetings will be provided on this website.

Contact Successor Agency:

Aaron Busch
Community Development Director
(530) 822-5135
(530) 822-4694 Fax

Email questions to Redevelopment Agency.

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