HomeMy WebLinkAbout2012/12/11 Item 02CITY COUNCIL & SUCCESSOR AGENCY
~~ "~ TO THE REDEVELOPMENT AGENCY
-~'~`' AGENDA STATEMENT
~~~ CITY OF
CHULA VISTA
Item No.:_~
Meeting Date: 12/11/12
ITEM TITLE: RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
RATIFYING AND APPROVING A PAYMENT IN THE AMOUNT
OF $1,030,224 TO THE COUNTY AUDITOR REQUIRED UNDER
HEALTH AND SAFETY CODE SECTION 34179.6(f) AND
APPROVING AN APPROPRIATION OF SAID AMOUNT FROM ITS
REDEVELOPMENT OBLIGATION RETIREMENT FUND, OTHER
EXPENSES CATEGORY, TO MAKE THE AFOREMENTIONED
REQUIRED PAYMENT AND A RESERVATION OF ALL RIGHTS
SUBMITTED BY: ASSISTANT CITY MANAGER/DEVELOPMENT SERVICES
DIRECTOR ~~- 4a. G- k-
REVIEWED BY: CITY MANAGER
ASSISTANT CITY ANAGER S
4/STHS VOTE:
YES X NO_
SUMMARY
Health and Safety Code section 34179.5, required Successor Agencies to conduct a "due
diligence review" of the Low and Moderate Income Housing Fund ("LMIHF Due Diligence
Review" or ""LMIHF DDR") to determine the un-obligated balances available for transfer to
affected taxing entities. The LMIHF DDR and subsequent review by the Department of
Finance resulted in a required payment of $1,030,224, within five business days of the DOF's
determination letter to the Successor Agency, be remitted to the County of San Diego to be
distributed to the affected taxing entities. Failure to timely make such payment could have
resulted in severe sanctions, including withholding of sales and use tax and property tax
distribution, accrual of interest, and, according to the Department of Finance, criminal
prosecution. In light of those sanctions and the short turn-around time in which to make the
payment, the payment was timely made on November 15, 2012. This action seeks ratification
and approval of such payment and approves an appropriation for such payment.
2-1
Item No.: ~-
Meeting Date: 12 11 ~ 12
Page 2 of 4
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines because the proposed
action consists of a governmental administrative activity that will not result in direct or indirect
physical changes in the environment. Therefore, pursuant to Section 15060(c)(3) of the State
CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is
required.
RECOMMENDATION
That the Successor Agency approve the resolution.
BOARDS/COMMISSION RECOMMENDATION
None
DISCUSSION
Assembly Bill 1484, which made amendments to Assembly Bill 26 [Dissolution of
Redevelopment Agencies], required that Successor Agencies conduct a Due Diligence Review of
the Low and Moderate Income Housing Fund assets, cash and cash equivalents to determine the
un-obligated funds available for transfer to affected taxing entities and to submit its results to the
Department of Finance by October 15, 2012 (Attachment A). A licensed accountant, who was
approved by the County Auditor-Controller, completed the aforementioned LMIHF Due
Diligence Review. The licensed accountant used specified procedures provided by the
Department of Finance to conduct the Due Diligence Review. The LMIHF Due Diligence
Review included the prepazation of an itemized statement with the following information:
• Listing of any amounts that are legally restricted as to purpose that cannot be provided to
affected taxing entities
• Statement of value of any assets that aze not cash or cash equivalents
• Current balances that aze legally or contractually dedicated or restricted for the funding of
an enforceable obligation
• Current balances that are needed to satisfy obligations that will be placed on the
Recognized Obligation Payment Schedule for the current fiscal yeaz
The LMIHF Due Diligence Review also had to total the net balances available after deducting
the restricted amounts as mentioned above.
All of the above procedures were performed; however, arguably the most important procedure
was the computation to determine the Balance Available for Allocation to affected taxing
entities. The methodology for the procedure is listed on page 16 of the LMIHF DDR report and
the actual computation is presented in Exhibit H. The results of the procedure indicated an
amount of $990,818 that was to be returned to the County Auditor and Controller for distribution
to the affected taxing entities.
2-2
Item No.: Z
Meeting Date: 2 i I I
Page 3 of 4
Pursuant to AB 1484, a public comment session was conducted by the Successor Agency's
Oversight Board on October 1, 2012 to permit the public to comment of the LMIHF Due
Diligence Review. No comments were received. Thereafter, in accordance with AB 1484, on
October 8, 2012, the Oversight Board approved the LMIHF Due Diligence Review. On October
12, 2012, the Oversight Board approved LMIHF Due Diligence Review was sent to the
Department of Finance and other statutorily required entities.
On November 7, 2012, DOF issued its letter of determination regarding the LMIHF Due
Diligence Review. (Attachment B.) DOF determined that line items totaling $39,406 to satisfy
line items listed on a Recognized Obligation Payment Schedule CROPS) were not adequately
supported as they were not included on any ROPS. Therefore, DOF ordered that the total of
$1,030,224, including the $39,406 in disputed line items, plus the $990,818 of the balance
available for allocation, be remitted to the county for disbursement to the affected taxing entities.
The line items questioned by DOF were listed in Due Diligence Review Exhibit G and included
two affordable housing monitoring contracts and various administrative costs. In staff's review
it was determined that while these were approved line items in the ROPS II, they had not been
attributed as costs to the LMIHF and were instead allocated to the Redevelopment Property Tax
Trust Fund ("RPTTF"). Therefore, the Successor Agency had received the funds through the
ROPS II distribution, and there is no net effect.
Health and Safety Code Section 34179.6(g) requires that unencumbered balances of
redevelopment agency funds be remitted to the country auditor-controller for distribution to the
affected taxing entities, including, but not limited to, the unencumbered balance of the Low and
Moderate Income Housing Fund of the former redevelopment agency within 5 business days of
the DOF's determination letter. Therefore, the total amount due to the County was $1,030,224,
inclusive of the $990,818 identified in the Due Diligence Review as available for distribution to
affected taxing entities and the $39,406 already received through the ROPS II.
The $1,030,224 was due to the County Auditor Controller by November 15, 2012. Failure to
remit that amount could have resulted in withholding of sales and use tax and property tax
distributions to the City, accrual of 10% interest during the late period, and, according to DOF,
criminal prosecution. Given the aforementioned sanctions, the short tum-around time in which
to make the payment, and to protect the Successor Agency's and City's interests, the required
remittance was timely made on November 15, 2012 in the amount of $1,030,224 to the County
Auditor Controller.
DECISION-MAKER CONFLICTS:
No Property within 500 feet:
Staff has reviewed the decision contemplated by this action and has determined that it is not site-
specific and consequently, the 500-foot rule found in California Code of Regulations Section
18704.2(a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff
been informed by any City Councilmember, of any other fact that may constitute a basis for a
decision-maker conflict of interest in this matter.
2-3
Item Nor Z
Meeting Date: 12-f f i f !2
Page 4 of 4
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact to General Fund. The $1,030,224 payment to the County of San Diego
was remitted November 15, 2012 to the County Auditor-Controller from the available reserves of
the Redevelopment Obligation Retirement Fund.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact as a result of this action.
ATTACHMENTS
A. Low and Moderate Income Housing Fund Due Diligence Review
B. Determination Letter from the Department of Finance dated November 7, 2012
Prepared by: Diem Do, Senior Project Coordinator, Development Services Department
2-4
SUCCESSOR AGENCY RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA RATIFYING AND APPROVING A PAYMENT IN THE
AMOUNT OF $1,030,224 TO THE COUNTY AUDITOR
REQUIRED UNDER HEALTH AND SAFETY CODE SECTION
34179.6(f) AND APPROVING AN APPROPRIATION OF SAID
AMOUNT FROM ITS REDEVELOPMENT OBLIGATION
RETIREMENT FUND, OTHER EXPENSES CATEGORY, TO
MAKE THE AFOREMENTIONED REQUIRED PAYMENT
AND A RESERVATION OF ALL RIGHTS
WHEREAS, Health and Safety Code section 34179.5 mandated that every Successor
Agency employ a licensed accountant to complete a "LMIHF Due Diligence Review" of the
Low Moderate Income Housing Fund ("LMIHF Due Diligence Review" or "LMIHF DDR") to
determine the un-obligated balances available for transfer to affected taxing entities and that the
results of that LMIHF Due Diligence Review be submitted to the California Department of
Finance ("DOF") and other specified entities by October 1, 2012; and
WHEREAS, Health and Safety code section 34179.6 required that the Oversight Board
for the Successor Agency to the Redevelopment Agency of the City of Chula Vista ("Successor
Agency") approve and transmit the result of the aforementioned LMIHF Due Diligence Review
to the DOF and other specified entities by October 15, 2012; and
WHEREAS, Health and Safety Code section 34179.6 further required that the Oversight
Board hold a "public comment session" at least five business days before the Oversight Board
holds an approval vote on the LMIHF Due Diligence Review; and
WHEREAS, the Successor Agency retained a licensed accountant (which was approved
by the San Diego County Auditor Controller); the licensed accountant conducted and completed
the LMIHF Due Diligence Review; and the results were subsequently transmitted to the DOF
and the required entities on October 1, 2012; and
WHEREAS, the Oversight Board conducted a ``public comment session" regazding the
aforementioned LMIHF Due Diligence Review on October 1, 2012, subsequently approved the
LMIHF Due Diligence Review on October 8, 2012; and
WHEREAS, the LMIHF Due Diligence Review was timely submitted to the DOF on
October 12, 2012, and that LMIHF Due Diligence Review submitted to the DOF showed that
$990,818 was available for distribution to the affected taxing entities; and
WHEREAS, on November 7, 2012, the Department of Finance submitted to the
Successor Agency its Determination Letter regarding the LMIHF Due Diligence Review. The
DOF's letter indicated that the Successor Agency needed to provide an additional $39,406 in-its
remittance to the County Auditor Controller for a total of $1,030,224; and
C:\Users\Chery1P\AppData\Local\MicrosoftlWindows\Temporary Internet Files\OLKBBE4U2esolution-Appropriation from RORF for LMIHF DDR docx
2-5
Resolution No.
Page 2
WHEREAS, pursuant to Health and Safety Code section 34179.6(£), the Successor
Agency was required to remit the ordered amount to the Auditor Controller within five (5)
business days of DOF's Determination Letter, specifically by November 15, 2012; and
WHEREAS, a failure to make the required payment would result in severe sanctions
against the Successor Agency and City of Chula Vista, including accrual of interest, the
withholding of sales and use tax and property tax distributions, and, according to DOE, possible
criminal prosecution; and
WHEREAS, given the aforementioned sanctions, the short turn-around time in which to
make the payment, and to protect the Successor Agency's and City's interests, the required
remittance was made on November 15, 2012, in the amount of $1,030,224 to the County Auditor
Controller.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency of the City of Chula Vista that it ratifies and approves the payment made
to the County Auditor Controller on November 15, 2012, in the amount of $1,030,224 required
to made pursuant to Health and Safety Code section 34179.6(£).
BE IT FURTHER RESOLVED by the Successor Agency to the Redevelopment Agency
of the City of Chula Vista that it further approves an appropriation in the amount of $1,030,224
from the Successor Agency's Redevelopment Obligation Retirement Fund ("ROBE"), Other
Expenses Category, for the aforementioned payment required under Health and Safety Code
section 34179.6(£).
BE IT FURTHER RESOLVED by the Successor Agency to the Redevelopment Agency
of the City of Chula Vista that it made the aforementioned payment only to the extent required
by the relevant provisions of Assembly Bill 1484 ("AB 1484") and reserves and all rights and
remedies to dispute the legality such payment and/or seek a return of such payments as
determined by legislative changes and/or decisions or orders of any and all courts of competent
jurisdiction.
Presented by
James D. Sandoval
City Manager in his capacity as Executive
Officer of the Successor Agency
Approved as to form by
Glen R. Googins
City Attorney in his capacity as General
Counsel of the Successor Agency
2-6
Attachment A
Successor Agency to the
Chula Vista Redevelopment Agency
Chula Vista, California
Independent Accountant's Report on
Applying Agreed-Upon Procedures relating to
the Due Diligence Review in accordance with AB 1484
applied to Low and Moderate Income Housing Fund
For the year ended June 30, 2012
1x1/1
PUN & McGEADY
Successor Agency to the
Chula Vista Redevelopment Agency
Table of Contents
Page
INDEPENDENT ACCOUNTANT'S REPORT ON
APPLYING AGREED-UPON PROCEDURES ...........................................................................................1
ATTACHMENT A -AGREED-UPON PROCEDURES AND RESULTS .............................................. 2-16
EXHIBITS
Exhibit A -Low and Moderate Income Housing Asset Listing as of January 31, 2012
Exhibit B -Transfers list to the city that formed the redevelopment agency for the period from
January 1, 2011 through June 30, 2012
Exhibit C -Housing Assets Transfer Form
Exhibit D - Department of Finance's Review of the Housing Assets Transfer Form
Exhibit E -Low and Moderate Income Housing Asset Listing as of June 30, 2012
Exhibit F -Restricted Asset Balance Listing
Exhibit G -Balances Needed to Satisfy ROPS
Exhibit H -Summary of Balances Available for Allocation
Exhibit I -Management Representation Letter
2-8
/ `~~
Li:Fl
PUN & McGEADY
INDEPENDENT ACCOUNTANT'S REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Oversight Boazd of the
Successor Agency to the Chula Vista Redevelopment Agency
Chula Vista, California
9 Corporate Pazk
Suite 130
Irvine, California 92606
Phone: (949) 777-8800
Fax: (949) 777-8850
www.pm-llp.com
We have performed the required agreed-upon procedures ("AUP") enumerated in Attachment A,
which were agreed to by the California State Controller's Office and the California State Department of
Finance, solely to assist the Oversight Board of the Successor Agency to the Chula Vista
Redevelopment Agency ("Successor Agency") that the dissolved redevelopment agency ("Agency") of
the City of Chula Vista, California ("City") is complying with its statutory requirements with respect to
Assembly Bill ("AB") 1484. Management of the City is responsible for the accounting records
pertaining to statutory compliance pursuant to California Health and Safety Code section 341795(c)(1)
through 34179.5(c)(6).
These procedures only applied to the Low and Moderate Income Housing Fund, not the Successor
Agency to the Chula Vista Redevelopment Agency as a whole.
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of those parties specified in the report. Consequently, we make
no representation regazding the sufficiency of the procedures described below either for the purpose
for which this report has been requested or for any other purpose.
We were not engaged to and did not conduct an audit, the objective of which would be the expression
of an opinion as to the appropriateness of the financial information summarized in Exhibits, as listed in
the table of contents. Accordingly, we do not express such an opinion. Had we performed additional
procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the Successor Agency, the Agency, the
City, the California State Controller's Office and the California State Depaztment of Finance, and is not
intended to be, and should not be used by anyone other than these specified parties. This restriction is
not intended to limit distribution of this report, which is a matter of public record.
~~
~~ ~ ~~ ~
San Diego, California
September 27, 2012
2-9
ATTACHMENT A -AGREED-UPON PROCEDURES AND RESULTS
2-10
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 3
Citation:
34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency to the successor agency
on or about February 1, 2012.
Procedures Performed:
1. Obtain from the Successor Agency a listing of all assets that were transferred from the former
redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this
listing to account balances established in the accounting records of the Successor Agency. Identify
in the Agreed-Upon Procedures (AUP) report the amount of the assets transferred to the Successor
Agency as of that date.
Results:
See Exhibit A for the Low and Moderate Income Housing Asset Listing as of January 31, 2012.
2-11
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Dfligence Review
Low and Moderate Income Housing Fund
Page 4
Citation:
34179.5(c)(2) The dollar value of assets and cash and cash equivalents transferred after January 1, 2011, through
June 30, 2012, by the redevelopment agency or the successor agency to the city, county, or city and county that
formed the redevelopment agency and the purpose of each transfer. The review shall provide documentation of any
enforceable obligation that required the transfer.
Procedures Performed:
2. If the State Controller's Office has completed its review of transfers required under both Sections
34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an
exhibit to the AUP report. If this has not yet occurred, perform the following procedures:
A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the former redevelopment agency to the city, county, or city and
county that formed the redevelopment agency for the period from January 1, 2011 through
January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the
transfer and describe in what sense the transfer was required by one of the Agency's
enforceable obligations or other legal requirements. Provide this listing as an attachment to
the AUP report.
B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the Successor Agency to the city, county, or city and county that
formed the redevelopment agency for the period from February 1, 2012 through June 30,
2012. For each transfer, the Successor Agency should describe the purpose of the transfer
and describe in what sense the transfer was required by one of the Agency's enforceable
obligations or other legal requirements. Provide this fisting as an attachment to the AUP
report.
C. For each transfer, obtain the legal document that formed the basis for the enforceable
obligation that required any transfer. Note in the AUP report the absence of any such legal
document or the absence of language in the document that required the transfer.
Results:
See Exhibit B for the transfers list to the city that formed the redevelopment agency for the period from
January 1, 2011 through June 30, 2012. Reviewed the Housing Assets Transfer Form (Exhibit C)
certified by housing staff on July 30, 2012 for the period from January 1, 2011 through June 30, 2012 and
a letter from the Department of Finance (DOF) dated September- 5, 2012 (Exhibit D) and noted no assets
transferred from the Low and Moderate Income Housing Fund to the City and DOF is not objecting to
any assets or transfers of assets identified on the form.
2-12
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 5
Citation:
34179.5(c)(3) The dollar value of any cash or cash equivalents transferred after January 1, 2011, through June 30,
2012, by the redevelopment agency or the successor agency to any other public agency or private party and the
purpose of each transfer. The reoiew shall provide documentation of any enforceable obligation that required the
transfer.
Procedures Performed:
3. If the State Controller's Office has completed its review of transfers required under both Sections
34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an
exhibit to the AUP report. If this has not yet occurred, perform the following procedures:
A. Obtain a listing prepazed by the Successor Agency of transfers (excluding payments for
goods and services) from the former redevelopment agency to any other public agency or to
private parties for the period from January 1, 2011 through January 31, 2012. For each
transfer, the Successor Agency should describe the purpose of the transfer and describe in
what sense the transfer was required by one of the Agency's enforceable obligations or other
legal requirements. Provide this listing as an attachment to the AUP report.
B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for
goods and services) from the Successor Agency to any other public agency or private parties
for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor
Agency should describe the purpose of the transfer and describe in what sense the transfer
was required by one of the Agency's enforceable obligations or other legal requirements.
Provide this listing as an attachment to the AUP report.
C. For each transfer, obtain the legal document that formed the basis for the enforceable
obligation that required any transfer. Note in the AUP report the absence of any such legal
document or the absence of language in the document that required the transfer.
Results:
There were no transfers from the former redevelopment agency to any other public agency or to
private parties for the period from January 1, 2011 through June 30, 2012. Therefore, these procedures
are not applicable.
2-13
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 6
Citation:
34179.5(c)(4) The review shall provide expenditure and revenue accounting information and identifij transfers
and funding sources for the 2010-11 and 2011-12 fiscal years that reconciles balances, assets, and liabilities of
the successor agency on June 30, 2012 to those reported to the Controller for the 2009-10 fiscal year.
Procedures Performed:
4. Perform the following procedures:
A. Obtain from the Successor Agency a summary of the financial transactions of the
Redevelopment Agency and the Successor Agency in the format set forth in the attached
schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the
financial transactions should be presented using the modified accrual basis of accounting.
End of year balances for capital assets (in total) and long-term liabilities (in total) should be
presented at the bottom of this summary schedule for information purposes.
B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers
accounts fully for the changes in equity from the previous fiscal period.
C. Compaze amounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state
controller's report filed for the Redevelopment Agency for that period.
D. Compare amounts in the schedule for the other fiscal periods presented to account balances
in the accounting records or other supporting schedules. Describe in the report the type of
support provided for each fiscal period.
Results:
Because these procedures required by Section 34179.5(c)(4) pertain to the Successor Agency as a whole,
these procedures will be addressed in the report that is due on December 15, 2012.
2-14
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 7
Citation:
34179.5(c)(5) A separate accounting for the balance for the Low and Moderate Income Housing Fund for all other
funds and accounts combined shall be made as follows:
(A) A statement of the total value of each fund as of June 30, 2012
Procedures Performed:
5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing
Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all
other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of
the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When
this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as
an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were
held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that
assumed the housing function previously performed by the former redevelopment agency. Agree
the assets so listed to recorded balances reflected in the accounting records of the Successor Agency.
The listings should be attached as an exhibit to the appropriate AUP report.
Results:
We noted in our review that cash and investments in the amount of $10,570,288 were transferred from
the Agency to the Successor Agency in February 2012.
See Exhibit E for the Low and Moderate Income Housing Asset Listing as of June 30, 2012.
2-15
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 8
Citation:
34179.5(c)(5)(B) An itemized statement listing any amounts that are legally restricted as to purpose and cannot
be provided to taxing entiries. This could include the proceeds of any bonds, grant funds, or funds provided by
other governmental entities that place conditions on their use.
Procedures Performed:
6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are
restricted for the following purposes:
A. Unspent bond proceeds:
1. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures, amounts set aside for debt service payments,
etc.)
2. Trace individual components of this computation to related account balances in the
accounting records, or to other supporting documentation (specify in the AUP report a
description of such documentation).
3. Obtain from the Successor Agency a copy of the legal document that sets forth the
restriction pertaining to these balances. Note in the AUP report the absence of language
restricting the use of the balances that were identified by the Successor Agency as
restricted.
Results:
There were no unspent bond proceeds at June 30, 2012. Therefore, these procedures are not
applicable.
B. Grant proceeds and program income that aze restricted by third parties:
i. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures).
ii. Trace individual components of this computation to related account balances in the
accounting records, or to other supporting documentation (specify in the AUP report a
description of such documentation).
iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the
restriction pertaining to these balances. Note in the AUP report the absence of language
restricting the use of the balances that were identified by the Successor Agency as
restricted.
Results:
There were no grant proceeds and program income that are restricted by third parties at June
30, 2012. Therefore, these procedures are not applicable.
2-16
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 9
C. Other assets considered to be legally restricted:
i. Obtain the Successor Agency's computation of the restricted balances (e.g., total
proceeds less eligible project expenditures).
ii. Trace individual components of this computation to related account balances in the
accounting records, or to other supporting documentation (specify in the AUP report a
description of such documentation).
iii. Obtain from the Successor Agency a copy of the legal document that sets forth the
restriction pertaining to these balances. Note in the AUP report the absence of language
restricting the use of the balances that were identified by Successor the Agency as
restricted.
Results:
At June 30, 2012, cash and investments were restricted for Landings II in the amount of
$4,000,000. We reviewed the Permanent Financing Loan Agreement (Redevelopment Agency
Low Mod Amortizing Loan) made by the Redevelopment Agency of the City of Chula Vista,
and Landings II, L.P., a California limited partnership, and noted language restricting the use
of the balances.
D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the
AUP report. For each restriction identified on these schedules, indicate in the report the
period of time for which the restrictions are in effect. If the restrictions are in effect until the
related assets are expended for their intended purpose, this should be indicated in the
report.
Results:
See Exhibit F for a listing of asset balances held on June 30, 2012 that are considered to be legally
restricted.
2-~~
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 10
Citation:
34179.5(c)(5)(C) An itemized statement of the values of any assets that are not cash or cash equivalents. This may
include physical assets, land, records, and equipment. For the purpose of this accounting, physical assets may be
valued at purchase cost or at any recently estimated market value. The statement shall list separately housing-
related assets.
Procedures Performed:
7. Perform the following procedures:
A. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or
otherwise available for distribution (such as capital assets, land held for resale, long-term
receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book
value reflected in the accounting records of the Successor Agency) or market value as
recently estimated by the Successor Agency.
Results:
There are no assets as of June 30, 2012 that are not liquid or otherwise available for
distribution. Therefore, these procedures are not applicable.
B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously
audited financial statement (or to the accounting records of the Successor Agency) and note
any differences.
Results:
There are no assets as of June 30, 2012 that are not liquid or otherwise available for
distribution. Therefore, these procedures are not applicable.
2-18
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 11
C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that
the proceeds were deposited into the Successor Agency trust fund. If the differences are due
to additions (this generally is not expected to occur), inspect the supporting documentation
and note the circumstances.
Results:
There are no assets as of June 30, 2012 that are not liquid or otherwise available for
distribution. Therefore, these procedures are not applicable.
D. If the assets listed at 7(A) are listed at recenfly estimated market value, inspect the evidence
(if any) supporting the value and note the methodology used. If no evidence is available to
support the value and\or methodology, note the lack of evidence.
Results:
There are no assets as of June 30, 2012 that are not liquid or otherwise available for
distribution. Therefore, these procedures are not applicable.
2-19
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 12
Citation:
34179.5(c)(5)(D) An itemized listing of any current balances that are legally or contractually dedicated or
restricted for the funding of an enforceable obligation that identifies the nature of the dedication or restriction and
the specific enforceable obligation. In addition, the successor agency shall provide a listing of all approved
enforceable obligations that includes a projection of annual spending requirements to satisfy each obligation and a
projection of annual revenues available to fund those requirements. If a review finds that future revenues together
with dedicated ar resMcted balances are insufficient to fund future obligations and thus retention of current
balances is required, it shall identify the amount of current balances necessary for retention. The review shn11 also
detail the projected property tax revenues and other general purpose revenues to be received by the successor
agency, together with both the amount and timing of the bond debt service payments of the successor agency, for
the period in which the oversight board anticipates the successor agency will-have insufficient property tax
revenue to pay the specified obligations.
Procedures Performed:
8. Perform the following procedures:
A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable
obligations, obtain from the Successor Agency an itemized schedule of asset balances
(resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable
obligations and perform the following procedures. The schedule should identify the amount
dedicated or restricted, the nature of the dedication or restriction, the specific enforceable
obligation to which the dedication or restriction relates, and the language in the legal document
that is associated with the enforceable obligation that specifies the dedication of existing asset
balances towazd payment of that obligation.
i. Compare all information on the schedule to the legal documents that form the basis for
the dedication or restriction of the resource balance in question.
ii. Compare all current balances to the amounts reported in the accounting records of the
Successor Agency or to an alternative computation.
iii. Compare the specified enforceable obligations to those that were included in the final
Recognized Obligation Payment Schedule approved by the California Depaztment of
Finance.
iv. Attached as an exhibit to the report the listing obtained from the Successor Agency.
Identify in the report any listed balances for which the Successor Agency was unable to
provide appropriate restricting language in the legal document associated with the
enforceable obligation.
Results:
Reviewed Recognized Obligation Payment Schedules CROPS) for periods of July 1, 2012 to
December 31, 2012 and January 1, 2013 to June 30, 2013 and noted enforceable obligations to be
satisfied by cash and investments in the Redevelopment Obligation Retirement Fund.
2-20
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 13
B. If the Successor Agency believes that future revenues together with balances dedicated or
restricted to an enforceable obligation are insufficient to fund future obligation payments and
thus retention of current balances is required, obtain from the Successor Agency a schedule of
approved enforceable obligations that includes a projection of the annual spending
requirements to satisfy each obligation and a projection of the annual revenues available to
fund those requirements and perform the following procedures:
i. Compare the enforceable obligations to those that were approved by the California
Department of Finance. Procedures to accomplish this may include reviewing the letter
from the California Department of Finance approving the Recognized Enforceable
Obligation Payment Schedules for the six month period from January 1, 2012 through
June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012.
ii. Compare the forecasted annual spending requirements to the legal document
supporting each enforceable obligation.
a. Obtain from the Successor Agency its assumptions relating to the forecasted
annual spending requirements and disclose in the report major assumptions
associated with the projections.
iii. For the forecasted annual revenues:
a. Obtain from the Successor Agency its assumptions for the forecasted annual
revenues and disclose in the report major assumptions associated with the
projections.
Results:
The Successor Agency does not believe that future revenues together with balances dedicated or
restricted to an enforceable obligation are insufficient to fund future obligation payments and
thus retention of current balances is required.
C If the Successor Agency believes that projected property tax revenues and other general
purpose revenues to be received by the Successor Agency are insufficient to pay bond debt
service payments (considering both the timing and amount of the related cash flows), obtain
from the Successor Agency a schedule demonstrating this insufficiency and apply the following
procedures to the information reflected in that schedule.
i. Compare the timing and amounts of bond debt service payments to the related bond
debt service schedules in the bond agreement.
ii. Obtain the assumptions for the forecasted property tax revenues and disclose major
assumptions associated with the projections.
iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose
major assumptions associated with the projections.
Results:
The Successor Agency does not believe that projected property tax revenues and other general
purpose revenues to be received by the Successor Agency are insufficient to pay bond debt
service payments.
2-21
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 14
D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances
necessary for retention in order to meet the enforceable obligations by performing the following
procedures.
i. Combine the amount of identified current dedicated or restricted balances and the
amount of forecasted annual revenues to arrive at the amount of total resources
available to fund enforceable obligations.
ii. Reduce the amount of total resources available by the amount forecasted for the annual
spending requirements. A negative result indicates the amount of current unrestricted
balances that needs to be retained.
iii. Include the calculation in the AUP report.
Results:
Since procedures A, B, or C were not performed, this procedure is not applicable.
2-22
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 15
Citation:
34179.5(c)(5)(E) An itemized list and analysis of any amounts of current balances that are needed to satisfy
obligations that zvi11 be placed on the Recognized Obligation Payment Schedules for the current fiscal year.
Procedures Performed:
9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy
obligations on the Recognized Obligation Payment Schedule (BOPS) for the period of July 1, 2012
through June 30, 2013, obtain a copy of the final RODS for the period of July 1, 2012 through
December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30,
2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying
(1) any dollar amounts of existing cash that are needed to satisfy that obligation and (2) the
Successor Agency's explanation as to why the Successor Agency believes that such balances are
needed to satisfy the obligation. Include this schedule as an attachment to the AUP report.
Results:
Reviewed Recognized Obligation Payment Schedules CROPS) for periods of July 1, 2012 to December
31, 2012 and January 1, 2013 to June 30, 2013 and noted enforceable obligations to be satisfied by cash
and investments in the Redevelopment Obligation Retirement Fund.
See Exhibit G for schedule identifying (1) any dollar amounts of existing cash that are needed to satisfy
that obligation, (2) the Successor Agency's explanation as to why the Successor Agency believes that
such balances are needed to satisfy the obligation, and (3) exceptions noted.
2-23
Successor Agency to the Chula Vista Redevelopment Agency
Agreed Upon Procedures - AB 1484 Due Diligence Review
Low and Moderate Income Housing Fund
Page 16
Citation:
34179.5(c)(6) The review shall total the net balances available after deducting the total amounts described in
subparagraphs (B) to (E), inclusive, of paragraph (5). The review shall add any amounts that were transferred as
identified in paragraphs (2) and (3) of subdivision (c) if an enforceable obligation to make that transfer did not
exist. The resulting sum shall be available for allocation to affected taxing entities pursuant to Section 34179.6. It
shall be a rebuttable presumption that cash and cash equivalent balances available to the successor agency are
available and sufficient to disburse the amount determined in this paragraph to taxing entities. If the review finds
that there are insufficient cash balances to transfer or that cash or cash equivalents are specifically obligated to the
purposes described in subparagraphs (B), (D), and (E) of paragraph (5) in such amounts that there is insuff~cienf
cash to provide the full amount determined pursuant to this paragraph, that amount shall be demonstrated in an
additional itemized schedule.
Procedures Performed:
10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to
Affected Taxing Entities. Amounts included in the calculation should agree to the results of the
procedures performed in each section above. The schedule should also include a deduction to
recognize amounts already paid to the County Auditor-Controller on July 12, 2012 as directed by
the California Department of Finance. The amount of this deduction presented should be agreed to
evidence of payment. The attached example summary schedule may be considered for this
purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund
and for all other funds combined (excluding the Low and Moderate Income Housing Fund).
Results:
See Exhibit H for schedule detailing the computation of the Balance AvaIlable for Allocation to
Affected Taxing Entities.
+~
Management Representation Letter
11. Obtain a representation letter from Successor Agency management acknowledging their
responsibility for the data provided to the practitioner and the data presented in the report or in
any attachments to the report. Included in the representations should be an acknowledgment that
management is not aware of any transfers (as defined by Section 34179.5) from either the former
redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011
through June 30, 2012 that have not been properly identified in the AUP report and its related
exhibits. Management's refusal to sign the representation letter should be noted in the AUP report
as required by attestation standazds.
Results:
See Exhibit I for Management Representation Letter.
2-24
EXHIBITS
Exhibit A -Low and Moderate Income Housing Asset Listing as of January 31, 2012
Exhibit B -Transfers list to the city that formed the redevelopment agency
for the period from January 1, 2011 through June 30, 2012
Exhibit C -Housing Assets Transfer Form
Exhibit D -Department of Finance's Review of the Housing Assets Transfer Form
Exhibit E -Low and Moderate Income Housing Asset Listing as of June 30, 2012
Exhibit F -Restricted Asset Balance Listing
Exhibit G -Balances Needed to Satisfy ROPS
Exhibit H -Summary of Balances Available for Allocation
Exhibit I -Management Representation Letter
2-25
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT A
Low and Moderate Income Housing Asset Listing as of January 31, 2012
Low and Moderate
Income Housing
Fund
ASSETS
Cash and investments
Interest receivable
Loans receivable
Advances to other funds
Restricted cash and investments
Capital assets
Total assets
$ 10,570,288
12,211
20,664,325
5,064,092
639,024
122,569"
$ 37,072,509
2-26
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1454
For the yeaz ended June 30, 2012
EXHIBIT A (CONTINUED)
Low and Moderate Income Housing Asset Listing as of January 31, 2012
LOANS RECEIVABLE
LT Rec Orange Tree Mobl Home
LT Rec Civ Ctr Barrio Housing
LT Rec Chip
LT Rec A I Chip
LT REC So Bay Comm Services
LT REC A I SBCS
LT REC St Regis Park
LT REC Acc Int St Regis Park
LT Rec So Bay Comm Villas L P
LT Rec A I SBC V illas L P
LT Rec Main Plaza LP
LT Rec A I Main Plaza LP
LT REC Rancho Vista Housing
LT REC A I Rancho Vista Housing
LT REC WAKELAND
LT Rec A I Wakeland
Total loans receivable
ADVANCES TO OTHER FUNDS
Cash Advances Receivable
Advances to Other Funds
BF/TCI LOANS FR LOW & MOD
TCII LOANS FR LOW & MOD
OTAY V ALLEY LOANS FR LOW & MOD
SOUTHWEST LOANS FR LOW & MOD
MERGED LOANS FR LOW & MOD
Aca Int on Adv RDA BF TC I
Aca Int on Adv RDA TCII
Aca Int on Adv Otay Valley
Interest Recble SW Proj Area
Interest Receivable (on Merged Loan)
Total advances to other funds
Beginning Ending
Balance Additions Reductions Balance
$ 55,952 - $ - $ - $ 55,952
204,531 - 3,825 200,706
1,229,831 - 93,228 1,136,603
153,076 4,350 19,457 137,969
887,995 - - 887,995
306,811 16,266 - 323,077
1,387,152 - - ' - 1,387,152
917,415 48,797 - 966,212
4,400,000 - - 4,400,000
1,261,710 77,392 - 1,339,102
1,500,000 - - 1,500,000
292,479 26,384 - 318,863
1,000,000 - - 1,000,000
192,658 17,589 - 210,247
5,680,000 - - 5,680,000
953,937 166,510 - 1,120,447
$ 20,423,547 $ - $ 116,510 $ 20,664,325
$ 2,202,044 $ - $ 2,202,044 $ -
1,615,686 - - 1,615,686
556,539 - - 556,539
841,559 - - 841,559
1,258,566 - - 1,258,566
744,957 - - 744,957
9,476 5,570 - 15,046
3,276 1,919 - 5,195
4,950 2,901 - 7,851
7,402 4,339 - 11,741
4,386 ~ 2,568 - 6,954
$ 7,248,841 $ 17,297 $ 2,202,044 $ 5,064,094
2-27
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHIBIT A (CONCLUDED)
Low and Moderate Income Housing Asset Listing as of January 31, 2012
CAPITAL ASSETS
In-Service Date Purchase Amount
Orange Tree Mobile Home Pazk 37
Orange Tree Mobile Home Park 134
Orange Tree Mobile Home Park 101
Orange Tree Mobile Home Park 106
Total capital assets
11/01/87 $. 31,096
11/01/87 30,576
11/01/87 30,576
11/01/87 30,321
$ 122,569
2-28
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT B
Transfers list to the city that formed the redevelopment agency
for the period from January 1, 2011 through January 31, 2012
Housing
Successor Agency
Fund
ASSETS
Interest receivable
Loans receivable
Advances to other funds
Restricted cash and investments
Capital assets
Total assets
12,211
20,664,325
5,064,092
639,024
122,569
$ 26,502,221
2-29
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT B (CONTINUED)
Transfers list to the city that formed the redevelopment agency
for the period from January 1, 2011 through January 31, 2012
LOANS RECEIVABLE
LT Rec Orange Tree Mobl Home
LT Rec Civ Cfr Barrio Housing
LT Rec Chip
LT Rec A I Chip
LT REC So Bay Comm Services
LT REC A I SBCS
LT REC St Regis Park
LT REC Acc Int St Regis Park
LT Rec So Bay Comm V illas L P
LT Rec A I SBC V illas L P
LT Rec Main Plaza LP
LT Rec A I Main Plaza LP
LT REC Rancho Vista Housing
LT REC A I Rancho Vista Housing
LT REC WAKELAND
LT Rec A I Wakeland
Total loans receivable
ADVANCES TO OTHER FUNDS
Cash Advances Receivable
Advances to Other Funds
BF/TCI LOANS FR LOW & MOD
TCII LOANS FR LOW & MOD
OTAY VALLEY LOANS FR LOW & MOD
SOLTIHWFST LOANS FR LOW & MOD
b1ERGED LOANS FR LOW & MOD
Aca Int on Adv RDA BF TC I
Aca Int on Adv RDA TCII
Aca Int on Adv Otay Valley
Interest Recble SW Proj Area
Interest Receivable (on Merged Loan)
Total advances to other funds
Beginning Ending
Balance Additions Reductions Balance
$ 55,952 $ - $ - $ 55,952
204,531 - 3,825 200,706
1,229,831 - 93,228 1,136,603
153,076 4,350 19,457 137,969
887,995 - - 887,995
306,811 16,266 - - 323,077
1,387,152 - - 1,387,152
917,415 48,797 - 966,212
4,400,000 - - 4,400,000
1,261,710 77,392 - 1,339,102
1,500,000 - - 1,500,000
292,479 26,384 - 318,863
1,000,000 - - 1,000,000
192,658 17,589 - 210,247
5,680,000 - - 5,680,000
953,937 166,510 - 1,120,447
$ 20,423,547 $ - $ 116,510 $ 20,664,325
$ 2,202,044 $ - $ 2,202,044 $ -
1,615,656 - - 1,615,686
556,539 - - 556,539
841,559 - - 541,559
1,258,566 - - 1,258,566
744,957 - - 744,957
9,476 5,570 - 15,046
3,276 1,919 - 5,195
4,950 2,901 - 7,851
7,402 4,339 - 11,741
4,386 2,568 - 6,954
$ 7,248,541 $ 17,297 $ 2,202,044 $ 5,064,094
2-30
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHIBIT B (CONCLUDED)
Transfers list to the city that formed the redevelopment agency
for the period from January 1, 2011 through January 31, 2012
CAPTTAL ASSETS
Orange Tree Mobile Home Park 37
Orange Tree Mobile Home Park 134
Orange Tree Mobile Home Park 101
Orange Tree Mobile Home Park 106
Total capital assets
In-Service Date Purchase Amount
11/01/87 $ 31,096
11/01/87 30,576
11/01/87 30,576
11/01/87 30,321
$ 122,569
2-31
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT C
Housing Assets Transfer Form
2-32
DEPARTMENT OF FINANCE
HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)
Former Redevelopment Agency: Redevelopment Agencv of [he City Of Chula Vista
Successor Agency to the Former
Redevelopment Agency: City of Chula Vista
Entity Assuming the Housing Functions
of the former Redevelopment Agency: Chula Vista Housing Authority -
Entity Assuming the Housing Functions
Contact Name: Amanda Mills Title Housing Manager Phone 616-409-5948 E-Mail Atldress amillsnc chulavislaca.pov
N
W
W
Entity Assuming the Housing Functions
Contact Name:
Title
Phone
E-Mail Address
All assets transferred to the entity assuming the housing (unctions between February i, 2012 and the date the exhibits were created are included in this housing assets list.
The following Exhibits noted with an X in Ne boz are included as part of this inventory of housing assets:
Exhibit A-Real Property x
Exhibit B- Personal Property
Exhibit C -Low-Mod Encumbrances
Exhibit D -Loans/Grants Receivables x
Exhibit E-Rents/Opera[ions x
Exhibit F-Rents
Exhibit G -Deferrals x
Prepared By: Amanda Mills & Donna
Date Prepared: 7110120'12
N
W
A
Exhibit G -Deferrals
City of Chula V sta
Inventory of Assets Received Pursuant to Health and Safety Code section 341761a) (2)
N
W
rn
Exhibit E -Rents/Operations
City of Chula Vista
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2)
i S
~~
,F~S.~xs
,~ ~s+
r 4 t
~~t
~~ ~
Item M~, 1 y
~{.('~s^s+ ,~
"} 9+,
~5" t,,.: g +..*~j.»
w t~. 4s
~~°at-
~,~ ~
;T"pe of payMenEte!
~
~
~t
fe` ~ i~ ~ w n, ~
ri;~~ r ~k~ wf^t
~~ ~'zs, ~! ,
-1'r""' "t Gd+ r
TYPe at!Pr4Perfy
ynth+,M!M1leh~theyE
~aymQr,tB are
. a`ss6piated`~til/r9 J
~
r~
~ 3 t.}.'+~
~s"{'#~'
'"`_`~~;r t+~
~~~~1'C~
t ~ t
P
:Properly
osime ~
"
d:
~.
~;<
~j" .c .1~4~v t3
: 4.t#~3 t;C4fi`~&. ~ ~
-'' ,K f+sa'
n~ka~v'~b+'~'~-ltlty
S,,.r~,4~ r 1',
~+~~n4~ty tha{~.
.p col~e~t@ th~ys
paymehts~~+
'
i f~~. «` +gy'3'
~33'vh~ a -> ~"7 s
pnh to which,
s, tY
.the ¢pllected
piaymenle a(e,
4ltlmatery +r~
~remltted a,z,l i
,
,' f 7
~=r '
Pprpoee far
s,;whlch the
P@Yments are
,18~ used ~
S
,
~`s~
cs" S-a
, . _:
Is the property
yencumbarerl
byalow-food
,. housing "•r
M:covegant? ~ r
+
u
r
"~~
t~ ~ ri~y ~1+
r v ~r~
" r
ry :-t '1'~" }
rs ,~~~p
Squrce~oyfrl¢~y
~piotl housinp~
;eoYenant~c/t
~
"i
~-j
-y`, I,
-
~ 'dip'' „y; '
Item 11 fiom
FahlhdAthe
rentldperation~
)a as9pciated
~wlth CIE;: i
. appllcahle) ~.
1
5 ace rent
mobilehome
s ace uccessor
Housing
Agency
Property
Manager
Successor
Housing Agency
Low/Mod
Yes
2
Investment Earnings
Operating Cash uccessor
Housing
Agency
Successor
Housing Agency
Successor
Housing Agency
Low/Mod
Yes
3
4
5
6
7
8
9
10
11
12
i3
14
15
16
17
18
19
20
a/ May include revenues from rents, operation of properties, residual receipt
payments from developers, conditional grant repayments, costs savings and
proceeds from refinancing, and principal and interest payments from homebuyers
subject to enforceable income limits.
b/ May include low-mod housing, mixed-income housing, low-mod housing with
commercial space, mixed-income housing with commercial space.
G May include California Redevelopment Law, tax credits, stale bond indentures,
and federal funds requirements.
N
W
Exhibit D -Loans/Grants Receivables
City o(Chula Vista
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2)
tf
~
g
£
/
Y^~ i t
y r L ~
t~ ~
i
r'Y ~ Cln! 'i ~Y{
~
~ i
1 r
iffia pan[faC1U0II
l
ienm
°i
Q
}
(Y
{
~ ;
'i
- d {
-*~ ~~
~'~n L' f~) .'
~yn
~
'
i ~
'
' „ ~re ! ri~t-F
-
'~^
r ~
t'
'
+~ u
ren
ro
~
~ ;
r r t
.. z,
/
~. tl
s
'
W~c lh} p Moq
' 'R;: ;
'
=+*' :s
~ ~
}
- r i .
K
/31z
°
"` ~ epaStNin9.lhs
^
r ;
N
~ _ ~
c 1
r~
1%~
Itern'. -
Hd)~np Fu ~?4~~
'ISSka ter a
, - ian~7
5
~d4th4y Pa
or i~' + .
,O~Ite e~lPa obi(
) ~j `d
9f5pS'4'se tse .
:
r ~ i.
ereopi„r snBly to whom~(he[
' ~`" y
IoaAo r)Idti'k'iY 16eGegk~
a
a
t hfi
~
~ ~rv
i QfPo5i~Rftwhl4l},jhe 4rpds
°`
'MafStdiped orgranted,~'`.` "urposea foeWhk
P h
tqe lands rosy be
~~
n',ir;.i u5agir~N~"+r' ~.
~
~ R4Gaym9n[date'1f
f..,
the.(uptlsa)o 1p€A
""*~?'1~~loenk"r~le~ ~
a
e
'„,
-
z eren mti
a{IPan~ ~.
d'
~ vyx CUMent•~-
,
t`autstangln9 ;
tteah balants`
loan various homeowners' Orange Tree Mobile Home
December 1907
7 $55,952 &Februa 1988 Yes various 0% 42,382.00
2 Loan $350,000 6/19/1997 Civic Center Barrio park Villa a Ves 8/1/2033 3% 197,932.70
3 Loan various various various homeowners' Rehab LOans Yes various various 1,276,574.74
4 Loan $4,400,000 12/6Y2001 South Bay Community Villas LP Henta a Town Center Ves 12/31/2058 3 % 5,793,709.59
5 Loan $1,387152 6/1/2000 Sl Regis LP SI Re is Ves 6/28/2053 6% 2,387,795.64
6 Loan $1,500000 3/12/2003 Brisa tlel Mar LP Main Plaza Yes 9/16/2060 3% 1,637479.4fi
7 Loan $1,000,000 10/16/2003 Rancho BUena Usta LP Rancho BUena Vista Yes 1/1/2060 3% 1,222,657.55
8 Loan $5680,000 2/7/2008 Los Vednos LP Los Vecinos Ves 4/15/2064 5% 6,917,936.98
9 Loan $478,200 9/12/t997 Corova Nllage LP Cordova Villa a Ves 8/17/2053 3% 649,533.23
10 Loen $373,000 12/7/1999 South Bay Community Services Trolley Tresge Ves 12/1/2055 3% 506,251.88
11 Loan $51,100 11/10/1998 SouN Bay Community Serviws Concord Ves 11/10/2D28 6% 66,764.30
12 Loan $4000,000 7/26Y2012 Landings ll LP Landings ll Yes 8/1/2037 3.6% $4,000,000
13
14
15
16
17
10
19
20
Names or pnvate pames are on remora vnm me nousmg ouccesor
N
W
J
Exhibit A-Real Progeny
City of Chula Vista
Inventory of Assets Resolved Pursuant to Healih antl Safety Cotle section 34176 (a) (2)
+r'{k
'r§k
'~'+-
r~
ItemK Ir I
z$I ~4
1`x+~',C41Y{ k
{, r~
G'
' ' ~'Pf}rI F
j
}
.s
~
? ~.5a ~'. •~y2 1
~-VV_ ~~.
2 ^t hk
* '_;
~}~+g', e~a Ttlfe and ~~
~a='~72Daa4gWen~
t
~
~ yt{ ~~
f iG ~~~
; ~' I 3-( ~
r.~, j2ntes yitt
CenylnP Value
;e'zPf AfeN ~,
{
~ hft
x4
;,rTOTat ~;
rtsquaR,.
~IPOtaYa
t
3
' %es g~pZ 3! 1~
~,E t Y'
~`t'i&~~
,S9Pfre /4otfga
recerJetl larlgw
-e'InLd houslnY''e` {'
~
Ly'
qk~
k jK{I a4g0.~'}i
~a }hbpProP33~-'p~p~{llay~
6nCYmbB[ad
~{rf IPwLlnotl
hauflgq!
~covanmYl {..
t.
~
~~
?
3 ta,, ~
J dill:..
Saurce otlow
Inad houtlnq
i~Yedanl P/
{
,;
'.
t tr
Oate Pitz
frinafNk
Hausinq`r
Suecescof
., AgenPY'S
}
} .Iian61N(.11On
urecqulaltlon
;CD6l hlnded ~
'with LOw.Motl
Noutlnq Fund
,3`-monies
. 6^ `{..
~'~CDnatruogon
~Pr ACg4lYlllgn
: costs MntleP~~
w1M PthaFd'
NUA funds A
4
3
+~
`t
~ `t! ~W~
CanafryetlOP.
Pr a'CgYlflt}Pn
cefk ryndaq
wYh non47pA
I lundL _°> i
'
s pate Of .',
conalruallon
Dr .'.
acqulslHPn
~ by lhf ~
{ormKRDA
'. hdanl6t In
saal Property
}PPgOn 1P.
Purchaser
easement,:
.- ¢IC.)
1 Mobile home silee Orange Tree Mobile Home
Park silos $638,024 various 100% Yes 1-Feb-12 5800,000 1-Nov-a] own title
2
3
4
5
6
7
8
9
10
11
12
13
14
15
78
17
18
18
20
a/ Asse! types may indutle bwmotl housing, mixetl-income housing, low-motl housing with
wmmerclal space, mixeainwme housing with wmmertlal space.
bl May iwlutle Califorraa Retlevebpment Law, tax uetlils, state bontl lntlentures, antl
letleral luntls requiremenm.
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT D
Depaztment of Finance's Review of the Housing Assets Transfer Form
2-38
~2
4 "I"" Z
w fill n
o ro
{c DrE PA RTM ENT OF EDM UNO G. BROWN JR. ~ GOVERNa RI
~~COaM~'r I N A N C E. 915 L $TPEET-~ HACRAMENTO CA ~ 99® 14'3'I06 ~ WWW.OO LCA.GCV
SeptembeP5,: 2012
Ms Amanda Mills, Nousjng Manager
Chula Vista Housing Authority'
Citypf Chula Vista:
276 Fourth Avenue..
Chula Vista, CA 91910
Dear Ms. Mills'
Subject: Dousing Assets Transfer Form
Rursuant to Healh-and Safety Code (HSC) section 34126 {a) {2), the City. of Chula Vista
submitted a Housng,Assets Transfer Fomt {Form). to the Caiifornia Department of Finance
{Finance): on July 30, 2012 for the period. February , 2012, through July 30,.2012:
finance has. completed its review of your Farm which may have includetl obtaining clar~caton
for various items: Based on a sample Df line items reviewed and the application of law, Finance
is not objecting to any,assets or transfers of assets identified bn your Form.,
Please direct inquiries to Nichelle Thomas or Wendy Griffeiead Analyst at (91.6) 445-1546.
Sincerely,
F'u-'
.STEVE SZALAY'
Local Government Consulfant
cc: Ms. TracySandoval, Assistant Chief Financial C)fficer/Auditor and Controller, San Diego..
County
Mr. Juan Perez, Manager, Property Tax Services,.. San Diego Courity
Ms: Nenita DeJesus, Senior Auditor and' Controller Accountatn, San Diego County
California Stage Controller's Office
2-39
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHIBIT E
Low and Moderate Income Housing Asset Listing as of June 30, 2012
Redevelopment
Obligation
Retirement Fund
ASSETS
Cash and investments $ 10,559,597
Total assets
$ 10,559,597
2-40
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHIBIT F
Restricted Assets Balance Listing
Redevelopment
Obligation
Retirement Fund
RESTRICTED ASSETS
Cash and investmentr $ 4,000,000
Total restricted assets $ 4,000,000
Cash and Investments
Landings II
Amount Payee Description
4,OOO,OQO Landings II LP Affordable Housing Loan
$ 4,000,000
2-41
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the yeaz ended June 30, 2012
EXHBIT G
Balances Needed to Satisfy ROPS
Affordable Housing Compliance Monitoring
Balances Balances
Needed Supported Support Reviewed
Successor agency explanation: To provide residual $ 10,000 $ 10,000 Service contract.
receipt monitoring review pursuant to CA H&S
33418.
Affordable Housing Compliance Monitoring
Successor agency explanation: Software License 20,500 20,500 Service contract.
Agreement for Aff Hsng Monitoring pursuant to - -
CA H&S Code 33418
Copier Maintenance
Successor agency explanation: Section
34171(d)(1)(F). Copier maintenance, quarterly.
Copier Lease
Successor agency explanation: Section
34171(d)(1)(F~. Copier Lease
Office Supplies
Successor agency explanation:Section
34171(d)(1)(F). Office supplies and copy paper.
Storage/Archive
Successor agency explanation: Section
34171(d)(1)(F). Document Destruction&
Shredding
P44354 Printing & Binding
Successor agency explanation: Section
34171(d)(1)(F). Print Services per City Council
Reso.2008-094.
Water Filtering System
Successor agency explanation: Section
34171(d)(1)(F). Water filtering system.
2,812 2,006 Purchase orders and account codes.
6,040 4,316 Purchase orders and account codes.
2,564 1,420 Purchase orders and account codes.
250 125 Purchase orders and account codes.
1,500 750 Purchase orders and account codes.
578 289 Purchase orders and account codes.
Balances needed to satisfy ROPS $ 44,244 $ 39,406
2-42
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHBTI' H
Summary of Balances Available for Allocation
Total amount of assets held by the Successor Agency as of June 30, 2012
Less assets legally restricted for uses specified by debt
covenants, grant restrictions, or restrictions imposed by other
governments.
Less assets that are not cash or cash equivalents (i.e. physical assets)
Less balances that are legally restricted for the funding of an enforceable
obligation (net of projected annual revenues available to fund those obligations)
Less balances needed to safisfy RODS for the current fiscal year
Add the amount of any assets fransferred to the city for which an enforceable
obligation with a third party requiring such transfer and obligating the use
of the transferred assets did not exist
Less the amount of payments made on July 12, 2012 to the County Auditor-Controller as
directed by the California Department of Finance
Amount to be remitted to county for disbursement to taxing entities
Note that separate computations are required for the Low and Moderate Income Housing Fund held by the
Successor Agency and for all other funds held 6y the Successor Agency.
$ 10,559,597
(4,000,000)
(39,406)
(5,529,373)
$ 990,818
NOTES: For each line shown above, an Exhibit is attached showing the composition of the summarized amount.
If the review finds that there are insuffident funds available to provide the full
amount due, the cause of the insufficiency should be demonstrated in a separate schedule.
2-43
Successor Agency to the Chula Vista Redevelopment Agency
Low and Moderate Income Housing
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHIBIT I
Management Representation Letter
2-44
~~t/i
~~
arr of
CHULAVlSTA
Finance Department
Pun & McGeady LLP
b265 Greenwich Drive, Suite 220
San Diego, California 92122
h1 connection with your engagement to apply agreed-upon procedures relating to the Low and
Moderate Income Housing Fund Due Diligence Review as of June 30, 2012, which were agreed
to by the California State ControIIex's Office and the California State Department of Finance,
solely to assist the Oversight Boazd of the Successor Agency to the Chula Vista Redevelopment
Agency that our dissolved redevelopment agency is complying with its statutory requirements
with respect to Assembly Bill ("AB") 1484 and we confirm to the best of our knowledge and
belief, the following representations made to you during your engagement.
1. The City of Chula Vista is responsible for compliance with California Health and Safety
Code (HSC) Section 34179.5.
2. We are responsible for adherence to the requirements of AB 1484 as applicable to the
successor agency and the sponsoring organization of the dissolved redevelopment agency.
3. We are responsible for the presentation of the exhibits in the low and Moderate Income
Housing Fund Due Diligence agreed-upon procedures report in accordance with the
California Health and Safety Code (HSC) Section 34179.5
4. As of June 30, 2012, we are not aware of any modifications that need to be made to the Low
and Moderate Income Housing Fund Due Diligence Review exhibits for them to be
presented in accordance with California Health and Safety Code Sections 34179.5(c)(1)
through 34179.5(c)(3) and Sections 34179.5(c)(5) through 34179.5(c)(b).
5. The City of Chula Vista approves the acceptability of the procedures that have been
developed by the California Department of Finance in accordance with California Health
and Safety Code (HSC) Section 34179.5.
b. We have disclosed to you any known matters contradicting the information contained in the
Low and Moderate Income Housing Fund Due Diligence Review AUP report
7. There have been no communications from regulatory agencies, internal auditors, and other
independent practitioners or consultants relating to Low and Moderate Income Housing
Fund Due Diligence Review, including communications received between June 30, 2012 and
September 27, 2012.
276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov ! (619} 691-5250 ~ fax (619) 585-5655
2-45
Pun & McGeady LLP
Management Representation Letter
Page 2
8. We have made available to you all informaton that we believe is relevant to Low and
Moderate Income Housing Fund Due Diligence Review.
9. We have responded fully to all inquiries made to us by you during the engagement.
10. No events have ocauxed subsequent to June 30, 2012 that would require adjustment to or
modification of the information contained in the Low and Moderate Income Housing Fund
Due Diligence Review AUP report and its related exhibits.
anagemen Ls no aware o any ans ers as efm-Tec yb~ecHon 3477T5 om er er
former redevelopment agency or the Successor Agency, to other pazties for the period from
January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP
report and its related exhibits.
12. Your report is intended solely for the information and use of the City of Chula Vista, the
California Department of Finance, the California State Confroller's Office, and the County of
San Diego's Auditor-Controller's Office and is not intended to be and should not be used by
anyone other than those specified parties.
To the best of our lmowledge and belief, no events have occurred subsequent to the date of your
report that would have a significant impact upon the agreed upon procedures that you
performed.
City of Chula Vista, as the sponsoring organization and as representatives of the Successor
Agency to the Chula Vista Redevelopment Agency:
o s~~~~~ //C-3
N e and e
Name and Title ~
~iZ ~ 7' ~ /~SS7' Z)~/L F~NsF.U~
Name and Title
~~ ~a
D e
~ ~ ~~~
Date
~f -Z7-ice
Date
276 Fourth Avenue, Chula Vista, CA 91910 www.rhu{~,iristaca.gov I (619) 691-5250 I fax (619) 585-5685
ATTACHMENT B
gNT 4,i.
~~ ~ 1
6 '~ 2
W III n
O A
* DEPARTMENT OF EDMUND G. BROWN JR. GOV ERNGR
Q~CR9N~`' F I N A N' C E 91 •J L 9TRCCT ~ H~CFI~MCNTO CA ~ 95914'3908 • WW W.ODLGA.60V
November 7, 2012
Ms. Diem Do, Senior Project Coordinator
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Dear Ms. Do:
Subject: Low and Moderate Income Housing Fund Due Diligence Review
Pursuant to Health and Safety Code (HSC) section 34179.6 (c), the City of Chula Vista
Successor Agency (Agency) submitted an oversight board approved Low and Moderate Income
Housing Fund Due Diligence Review (DDR) to the Calffornia Department of Finance (Finance)
on October 12, 2012. The purpose of the review was to determine the amount of cash and cash
equivalents available for distribution to the affected taxing entities. Pursuant to HSC section
34179.6 (d), Finance has completed its review'of your DDR, which may have included obtaining
clarification for various items.
HSC section 34179.6 (d) authorizes Finance to adjust the DDR's stated balance of Low and
Moderate Income Housing Fund (LMIHF) available for distribution to the taxing entties. Based
on our review of your DDR, the following adjustment was made:
• Requested balances totaling $39,406 to satisfy items listed on a Recognized Obligation
Payment Schedule CROPS) was not adequately supported. These amounts were not
included on any ROPS and may not be held for future payment. Therefore, this amount
must be remitted to the county for disbursement to the taxing entities.
if you disagree with Finance's adjusted amount of LMIHF balances available for distribution to
the taxing entities, you may request a Meet and Confer within five business days of the date of
this letter. The Meet and Confer process and guidelines are available at Finance's website
below:
htto:/~.dof.ca.aov/redevelo~men~meet and confer/
The Agency's LMIHF balance available for distribution to the affected taxing entities is
$1,030,224 {see table below). Pursuant to HSC 34179.6 {h) (1) (B), any remittance related to
unallowable transfers to a private party may also be subject to a 10 percent penalty it not
remitted within 60 days.
2-47
Ms. Diem Do
November 7, 2012
Page 2
LMIHF Balances Available For Distribution To Ta~dn Entitles
Available Balance per DDR: $ 990,818
Finance Adjustments
Requested retained balance not supported: 39,406
Total LMIHF available to be distributed: $ 1,030,224
Absent a Meet and Confer request, HSC section 34179.6 (f) requires successor agencies to
transmit to the county auditor-controller the amount of funds identified in the above table within
five working days, plus any interest those sums accumulated while in the possession of the
recipient.
If funds identfed for Vansmission are in the possession of the successor agency, and 'rf the
successor agency is operated by the city or county that created the farmer redevelopment
agency, then failure to transmit the identified funds may result in offsets to the city's or the
county's sales and use tax allocation, as well as its property tax allocation. If funds identfed for
transmission are in the possession of another taxing entity, that taxing entity's failure to remit
those funds may result in offsets to its sales and use tax allocation or to its property tax
allocation.
Failure to transmit the identified funds will also prevent the Agency from being able to receive a
finding of completion ftom Finance. Without a finding of completion, the Agency will be unable
to take advantage of the provisions detailed in HSC section 34191.4. Specifically, these
provisions allow certain loan agreements between the former redevelopment agency (RDA) and
the city, county, or city and county that created the RDA to be considered enforceable
obligations. These provisions also allow certain bond proceeds to be used for the purposes in
which they were sold and allows for the transfer of real property and interests info the
Community Redevelopment Property Trust Fund once Finance approves the Agency's long-
range property management plan.
In addition to the consequences above, willful failure to return assets that were deemed an
unallowable transfer or failure to remit the funds identified above could expose certain
individuals to criminal penalties under existing law.
Pursuant to HSC section 34167.5 and 34178.8, the California State Controller's Office
(Controller) has the authority to claw back assets that were inappropriately transferred to the
city, county, or any other public agency. Determinations outlined in this letter and Finance's
Housing Assets Transfer letter dated September 5, 2012 do not in any way eliminate the
Controller's authority.
Please direct inquiries to Robert Scott, Supervisor or Jenny DeAngelis, Lead Analyst at
(916) 445-1546.
Sincerely,
r~-
STEVE SZALAY
Local Government Consultant
cc: on the following page
2-48