Tax Allocation Bond Debt

Former Redevelopment Agency Financing
Former redevelopment agencies could not receive or spend tax increment funds until they established debt.  For this reason, redevelopment agencies established debt by issuing Tax Allocation Bonds secured by the available tax increment that grew since the Redevelopment Agency was first established.

Health and Safety Code (H&SC)  section34171 (d)(1)(A)  defines the obligations of bond documents as enforceable obligations of  Successor Agencies and all payments due are to be included in the Recognized Obligation Payment Schedule (ROPS).

H&SC section 347177 (i) states that bond proceeds are to be used for the purposes for which the bonds were sold.  The Successor Agency of the City of Inglewood has committed its remaining bond proceeds to the development of the Senior Center, the reconstruction of Century Blvd and the modernization of the Locust Street Parking Garage.

2017 Refinancing of existing bonds
The successor Agency has refinanced all its bonds paying off a portion and combining the others into one bond series. The issuance of the 2017 Bonds were authorized to be issued, and the Indenture was authorized to be executed, by the Successor Agency pursuant to Resolution No. 17-09, adopted on October 11, 2016 (the “Successor Agency Resolution”), and the issuance of the 2017 Bonds by the Successor Agency was approved by the Oversight Board for the Successor Agency pursuant to its Resolution No. 16-OB-006, adopted on October 25, 2016 (the “Oversight Board Resolution”).

Authority for Issuance
The issuance of the 2017 Bonds were authorized to be issued, and the Indenture was authorized to be executed, by the Successor Agency pursuant to Resolution No. 17-09, adopted on October 11, 2016 (the “Successor Agency Resolution”), and the issuance of the 2017 Bonds by the Successor Agency was approved by the Oversight Board for the Successor Agency pursuant to its Resolution No. 16-OB-006, adopted on October 25, 2016 (the “Oversight Board Resolution”).

Pursuant to the Dissolution Act, after the adoption of the Oversight Board Resolution, written notice of the adoption of the Oversight Board Resolution was provided to the DOF. On November 29, 2016, the DOF provided a letter to the Successor Agency stating that based on the DOF’s review and application of the law, the Oversight Board Resolution approving the issuance of the 2017 Bonds is approved by the DOF.

Section 34177.5 of the Dissolution Act provides that when, as here, a successor agency issues refunding bonds with the approval of its oversight board and the DOF, the oversight board may not unilaterally approve any amendments to or early termination of the bonds, and the scheduled payments on the bonds shall be listed in the Recognized Obligation Payment