Redevelopment: successor agencies: administrative cost allowance.

Existing law dissolved redevelopment agencies as of February 1, 2012, and designates successor agencies to act as successor entities to the dissolved redevelopment agencies. Existing law requires successor agencies to, among other things, continue making payments due for enforceable obligations and wind down the affairs of the dissolved redevelopment agencies. Existing law provides that, commencing July 1, 2016, and for each fiscal year thereafter, the administrative cost allowance, defined as the maximum amount of administrative costs that may be paid to a successor agency from the Redevelopment Tax Trust Fund in a fiscal year, is up to 3% of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of enforceable obligations, reduced by the successor agency's administrative cost allowance, and loan repayments, as provided. Existing law provides, however, that a successor agency's administrative cost allowance shall not exceed 50% of the total Redevelopment Property Tax Trust Fund distributed to pay enforceable obligations in the preceding fiscal year, reduced by the successor agency's administrative cost allowance and loan repayments, as provided. Existing law requires the Department of Finance to make a determination of the enforceable obligations and the amounts and funding sources of the enforceable obligations by April 15 of each year, based on an oversight board-approved Recognized Obligation Payment Schedule submitted by the successor agency. This bill would change the formula for calculating a successor agency's administrative cost allowance by providing that, for the period covering January 1, 2021, until June 30, 2021, and for each fiscal year thereafter, the administrative cost allowance shall be up to 3% of the actual property tax the department authorized in the preceding fiscal year for payment of approved enforceable obligations, prior to any reductions made, as provided. The bill, however, would set a minimum of $250,000 for the administrative cost allowance in any fiscal year, unless this amount is reduced by the oversight board or by agreement between the successor agency and the department. The bill would provide that, notwithstanding those provisions, for the period covering January 1, 2021, until June 30, 2021, and for each fiscal year thereafter, a successor agency's annual administrative costs shall not exceed 50% of the total Redevelopment Property Tax Trust Fund the department authorized to pay enforceable obligations in the preceding fiscal year, prior to any reductions made, as provided.