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Dissolved 1/18/2012
On June 28, 2011, the State Legislature recklessly approved and Governor Brown unfortunately signed several budget trailer bills to implement the State of California budget for Fiscal Year 2011/2012. Two of the trailer bills significantly modified California Community Redevelopment Law: ABx1 26 (the “Dissolution Act”) and ABx1 27 (the “Voluntary Program Act”).
The Dissolution Act first immediately suspends all new redevelopment activities and incurrence of indebtedness and will dissolve redevelopment agencies (RDAs) effective October 1, 2011; and the Voluntary Program Act will allow RDAs to avoid dissolution under the Dissolution Act by opting into an “voluntary alternative redevelopment program (VARP)” that requires specified substantial annual contributions to local school and special districts. For the Hayward Redevelopment Agency, the State is requiring a $4.1 million payment in FY2012, followed by annual payments of approximately $900,000 each fiscal year thereafter. Outside legal counsel for the Hayward RDA (from the firm Goldfarb Lipman) has prepared a summary of this State legislation, which summary is available from their website.
The League of California Cities and the California Redevelopment Association subsequently filed a lawsuit in the State Supreme Court challenging the validity of AB x1 26 and 27 in August 2011. More information about AB x1 26 and 27 and the associated lawsuit can be found here. On December 29, 2011, the California Supreme Court delivered its decision in the California Redevelopment Association v. Matosantos case, finding ABx1 26 largely constitutional and ABx1 27. The Court’s bifurcated decision means that all California redevelopment agencies, including the Redevelopment Agency of the City of Hayward (the “Redevelopment Agency”), will be dissolved under the Dissolution Act, and none will have the opportunity to opt into continued existence under the “so-called” Voluntary Program Act. The Hayward City Council had previously adopted an “opt-in” ordinance on August 2, 2011 to participate in the VARP.
As a result of the Supreme Court’s decision, the Hayward Redevelopment Agency was dissolved effective February 1, 2012. The City of Hayward chose to become the Successor Agency to the Redevelopment Agency and is charged with the responsibility of paying off the former Redevelopment Agency's existing debts, disposing of the former Redevelopment Agency's properties and assets and winding down the affairs of the former Redevelopment Agency, redistributing remaining property tax revenues to the local government entities in the County that receive these revenues (the “Taxing Entities”), and eventually winding up the affairs of the former Redevelopment Agency. The Redevelopment Agency's affordable housing assets were turned over to the Hayward Housing Authority, which will serve as the successor housing agency and will continue to perform affordable housing activities albeit with little to no ongoing source of funds for these activities. Redevelopment was the primary source of funding for affordable housing activities in the State.
Pursuant to the provisions of the Dissolution Act, an Oversight Board must be established to monitor the activities of the Successor Agency and the wind down of the affairs of the former Redevelopment Agency. The Board members (and their appointing bodies) are outlined below:
Board Members:
One member appointed by the County Board of Supervisors
Alameda County Board of Supervisor Nadia Lockyer
One member of the public appointed by the County Board of Supervisors
California State University East Bay College of Business and Economics Dean Terri Swartz
One member appointed by the Mayor for the city that formed the Redevelopment Agency
City of Hayward Mayor Michael Sweeney
One member representing the employees of the former Redevelopment Agency appointed by the Mayor or Chair of the Board of Supervisors, as the case may be, from the recognized employee organization representing the largest number of former Redevelopment Agency employees employed by the successor agency at that time
City of Hayward Economic Development Manager Sean Brooks
One member appointed by the County Superintendent of Education to represent schools if the superintendent is elected. If the County Superintendent of Education is appointed, then the appointment shall be made by the County Board of Education
Hayward Unified School District Board of Trustees President JesĂşs Armas
One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former Redevelopment Agency, which is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188
Hayward Area Recreation & Park District General Manager Rita Shue
One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the County
City of Hayward Council Member Francisco Zermeño (pending confirmation)
City of Hayward Council Member Mark Salinas (pending confirmation)
If you have any questions regarding this information or about the Oversight Board or the Successor Agency, you may contact Kelly McAdoo Morariu, Assistant City Manager, at (510) 583-4305 or via email kelly.morariu@hayward-ca.gov.
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| FORMER HAYWARD REDEVELOPMENT AREA COMMITTEE INFORMATION |
The Hayward Redevelopment Area Committee (HRAC) was created in 1998 when the Burbank-Cannery sub-area was added to the Downtown Hayward Redevelopment Project. In 2001, the HRAC was expanded when the Mission-Foothill sub-area was added.
The HRAC serves as a Project Area Committee under California Redevelopment Law. The purpose of the HRAC is to provide advice and guidance to the Redevelopment Agency on matters relating to the redevelopment of the Downtown Hayward Redevelopment Project Area. |
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