Redevelopment: successor agencies: postcompliance provisions: loans.

The Community Redevelopment Law authorized the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved redevelopment agencies as of February 1, 2012, and provides for the designation of successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law requires a successor agency to, among other things, prepare a Recognized Obligation Payment Schedule for payments on enforceable obligations for each 6-month fiscal period. Under existing law, the Department of Finance is authorized to issue a finding of completion to a successor agency that completes specified requirements. Upon receiving a finding of completion, the successor agency is authorized to participate in a loan repayment program and limited property management activities. Under existing law, after the successor agency receives a finding of completion, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency are deemed to be enforceable obligations, provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes. This bill would require the interest rate on the amount of principal calculated from the loan origination date, and any increase thereto that remains unpaid as of the date of oversight board approval of the loan as an enforceable obligation, to be subject to an adjusted interest rate, as prescribed. This bill would incorporate additional changes to Section 34191.4 of the Health and Safety Code proposed by AB 2493 and SB 1129 that would become operative if this bill and either AB 2493 and SB 1129, or both, are enacted and this bill is enacted last.