HomeMy Public PortalAbout05-15-2002LPFA_spThis Agenda contains a brief general description of each item to be considered. Copies of the
Staff reports or other written documentation relating to each item of business referred to on the
Agenda are on file in the O~ce of the City Clerk and are available for public inspection A person
who has a question concerning any of the agenda items may call the City Manager at (310) 603-
0220, ext. 200
Procedures for Addressin.q the Counci!
IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS
WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND
TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING FAILURE
TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN
THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.
~,;AGENDA ITEMS ON FILE FOR CONSIDERATION
P~~~{ ' AT THE SPECIAL MEETING OF
E ~ V p THE LYNWOOD PUBLIC FINANCE AUTHORITY
C~7Y OF LYNWO~~ TO BE NELD ON MAY 15, 2002
CITY CLFRKS OF~ICE 6 30 P M
COUNCIL CHAMBERS
MAY t 4 20U~' ~ 11330 Bullis Road, Lynwood, CA 90262
7~i~~`~~~~3~i~+g
~ ~~~~~~r
~~"~~ ~ ~
~~ ~
FERNANDO PEDROZA
VICE PRESIDENT
ARTURO REYES
PRESIDENT
LOUIS BYRD
MEMBER
PAUL H RICHARDS, II
MEMBER
RAMON RODRIGUEZ
MEMBER
CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR
FAUSTIN GONZALES ALFRETfA EARNEST
SECRETARY TREASURER
ANDREA L. HOOPER IRIS PYGATT
OPENING CEREMONIES
1 CALL TO ORDER
2 ROLL CALL OF MEMBERS
Fernando Pedroza
Louis Byrd
Paul H Richards, II
Ramon Rodriguez
Arturo Reyes
3. CERTIFICATION OF AGENDA POSTING BY SECRETARY
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
PUBLIC ORAL COMMUNICATIONS
IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL
DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT
IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO
REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION
FOR A FUTURE MEETING.
(The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5)
~~
4 PROPERTY TAX SHIFTS EXEMPTIONS - AFFORDABLE HOUSING
Comments~
With the approval of Proposition 13, voters chose to substitute separate local
property tax rates and convert to a uniform 1% tax rate and authorized the
Legislature the authority to allocate property tax revenues. These taxes are
allocated to cities, special districts, counties, and schools
Existing property tax law also gives the Legislature the ability to shift the amount of
ad valorem property tax law that would have otherwise been allocated to counties,
cities, and special districts to school districts, and community college districts
through the Educational Revenue Augmentation Fund (ERAF)
SB 1509 seeks to increase the number of affordable housing units within the State
of California by beginning with the 2003-2004 fiscal year reducing the reduction and
transfer amounts of qualified local agencies by granting an exemption for their
property tax losses for any affordable housing units they approve on or after
January 1, 2003 where the non-profit property owner has qualified for a property
tax exemption
Recommendation
Staff respectfully requests that the President and Members of the Lynwood Public
Finance Authority receive and file this information
ADJOURNMENT
THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON MAY 21, 2002 AT
6 00 P M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD,
CITY OF LYNWOOD, CALIFORNIA.
.---
MEMORANDUM
DATE. May 15, 2002
TO HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD
PUBLIC FINANCE AUTHORITY
FROM. Faustin Gonzales, Chief Administrative Officer
BY Autra C Adams, Program Development Coordinator
SUBJECT. Property Tax Shifts Exemptions - Affordable Housing
PURPOSE:
To have the President & Members of the Lynwood Public Finance Authority
receive and file this item
BACKGROUND:
With the approval of Proposition 13, voters chose to substitute separate local
property tax rates and convert to a uniform 1% tax rate and authorized the
Legislature the authority to allocate property tax revenues These taxes are
allocated to cities, special districts, counties, and schools
Existing property tax law also gives the Legislature the ability to shift the amount
of ad valorem property tax law that would have otherwise been allocated to
counties, cities, and special districts to school districts, and community college
districts through the Educational Revenue Augmentation Fund (ERAF)
in addition, the State of California is currently facing a shortfall of approximately
600,000 affordable housing units that has caused serious implications for families
and the future health of the State's economy.
ANALYSIS:
SB 1509 (Dunn)
This legislation seeks to create a nexus between property tax shifts to ERAF and
the lack of affordable housing to encourage local governments to approve
affordable housing unit development.
Specifically, SB 1509 seeks to increase the number of affordable housing units
within the State of California by beginning with the 2003-2004 fiscal year
reducing the reduction and transfer amounts of qualified local agencies by
granting an exemption for their property tax losses for any affordab~e housing
units they approve on or after January 1, 2003 where the non-profit property
owner has qualified foc-a property tax exemption
SB 1509 defines a qualified local agency as a city or a county with a valid
adopted housing element, as determined by the State Department of Housing
and Community Development. The city or county's share of lost property tax
revenues is the additional revenues that it would have received from the
affordable housing development, had it not qualified for a charitable exemption
The League of California Cities is currently negotiating with Senator Dunn to
either amend or clarify the language pertaining to a qualified local agency The
League is requesting that they either: remove the housing element requirement
from the bill, clarify that a housing element approved by a court of law is as valid
as one approved by the state, or simply state that the local government has a
housing element that is in substantial compliance with the law
-,~ ,~
SB 1509 is currently waiting to be heard by the Senate Appropriations
Committee.
RECOMMENDATION:
Staff respectfuliy requests that the President & Members of the Lynwood Public
Finance Authority receive and file this information.
ATTACHMENT