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10-131 Resolution 10-131 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE SUPPORTING AN AMENDMENT TO SECTION 33214 OF THE CALIFORNIA HEALTH AND SAFETY CODE TO ALLOW FOR THE COMPLETION OF OTHERWISE ELIGIBLE AFFORDABLE HOUSING WHEREAS, the Redevelopment Agency for the County of Riverside (Agency) is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the provisions of the California Community Redevelopment Law which is Part 1 of Division 24 of the California Health and Safety Code (commencing with Section 33000 et seq); and WHEREAS, pursuant to Section 33334.2 of the Health and Safety Code, the Agency is required to use not less than twenty percent (20%) of the tax increment to increase, improve and preserve the community's supply of low and moderate income housing ("Housing Set Aside Funds"); and WHEREAS, pursuant to Section 33334.2(g) of the California Health and Safety Code, the Agency is authorized to use the above described Housing Set Aside Funds to increase, improve and preserve the community's supply of low and moderate income housing in areas that are outside the boundaries of established redevelopment project areas but within the territorial jurisdiction of the Agency upon a finding that such a use of these funds will benefit the established project areas; and WHEREAS, the Agency and the County of Riverside have found and determined affordable housing outside of the various project areas does benefit the project areas; and WHEREAS, Section 33120 of the California Health and Safety Code currently defines the territorial jurisdiction of the agency of a county to be the unincorporated territory in the county; and WHEREAS, Section 33214 of the California Health and Safety Code allows the unincorporated territory that was included in a project area to survive and remain as territorial jurisdiction of the agency even if that territory is subsequently annexed to a city or included within the boundaries of a new city; and WHEREAS, the Agency acquired, or facilitated the acquisition of, and initiated the process of developing affordable housing on real property located outside a redevelopment project area but within the unincorporated area, which were eligible for the expenditure of the above described Housing Set Aside Funds at the time of property acquisition and expenditure of these funds; and WHEREAS, subsequent to the compliant acquisition of real property and expenditure of the above described Housing Set Aside Funds, the area surrounding and including the Resolution 10-131 Supporting Amendment to Health and Safety Code regarding Housing Set Aside Funds subject real property was included in the incorporation of a new city or is to be included in the annexation of an existing city; and WHEREAS, the affected cities include the newly incorporated Cities of Menifee and Wildomar and the existing City of Indio; and WHEREAS, all the cities and the County support the subject affordable housing development projects; and WHEREAS, the incorporation and annexation efforts result in the unintended consequence of an unfinished development project for lack of authority by the Agency to continue expending the above described Housing Set Aside Funds and complete the initiated project as a direct result of the intervening incorporation or annexation; and WHEREAS, an abandoned development project further contributes to the blight of a neighborhood in direct contradiction to the spirit and purpose of redevelopment; and WHEREAS, the County, Agency and each of the respective cities desire each of the proposed affordable housing development projects to reach fruition. . NOW, THEREFORE, the City Council of the City of Menifee resolves and orders as follows: Section 1. The City Council of the City of Menifee hereby finds and determines that the foregoing recitals are true, correct and incorporated herein. Section 2. The City Council of the City of Menifee hereby supports proposed legislation amending Section 33214 of the California Health and Safety Code which intends to, in relevant part, defines that "the territorial jurisdiction of the Redevelopment Agency for the County of Riverside shall include unincorporated territory located outside a project area . . . even if that territory is subsequently annexed to a city or included within the boundaries of a new city . . . if prior to the effective date of annexation or incorporation of such territory . . . the Agency either (a) entered into a binding agreement with a third party with respect to such territory in furtherance of one or more of the affordable housing purposes set forth in Section 33334.2, or (b) acquired land or otherwise expended moneys with respect to such territory from the Agency's Low and Moderate Income Housing Fund established pursuant to Section 33334.3." 2 Resolution 10-131 Supporting Amendment to Health and Safety Code regarding Housing Set Aside Funds PASSED, APPROVED and ADOPTED this 16th day of February, 2010, by the following vote: AYES: Denver, Kuenzi, Mann, Twyman NOES: None ABSENT: Edgerton ABSTAIN: None Fred wyman, Vice 40ky6r ATTEST: '6& Kathy Bennett, City Clerk 3