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STAFF REPORT <br />ITEM NO. <br />5� <br />DATE: MARCH 15, 2011 <br />TO: HONORABLE MAYOR AND CITCI <br />FROM: ROD FOSTER, CITY MANAGER T1W:V? <br />PREPARED BY: BONNIE J. JOHNSON, MANAGEMENT SERVICES DIRECTOR <br />SUBJECT: ADOPT A RESOLUTION DECLARING A NEED FOR THE COLTON <br />HOUSING AUTHORITY, DESIGNATING THE MEMBERS OF THE <br />CITY COUNCIL AS THE COMMISSIONERS OF THE COLTON <br />HOUSING AUTHORITY, AND DESIGNATING THE FIRST <br />CHAIRPERSON OF THE COLTON HOUSING AUTHORITY <br />RECOMMENDED ACTION <br />It is recommended that City Council approve Resolution No. R-28-11 a Resolution of the City <br />Council of the City of Colton California, declaring the need for the Colton Housing Authority, <br />designating members of the City Council as the commissioners of the Colton Housing authority, <br />and designating the first chairperson of the Colton Housing Authority <br />GOAL STATEMENT <br />The proposed action is necessary in maintaining local control over Redevelopment housing <br />activities. <br />BACKGROUND <br />In consideration of the Governor's proposal to end redevelopment in California and to transfer <br />the Low- and Moderate -Income ("LMI") responsibilities of redevelopment agencies to a local <br />housing authority, it is recommended that the City Council create a housing authority under the <br />California Housing Authority Law (i.e., California Health and Safety Code § 34240, et seq.). <br />The purpose of creating a housing authority is to maintain, to the extent feasible, local control <br />over what are now Colton Redevelopment Agency ("Agency") housing responsibilities and the <br />financial resources that are related thereto. <br />ISSUES/ANALYSIS <br />As part of his January budget proposal for FY 2011-12, Governor Brown has proposed the <br />elimination of redevelopment agencies and the redirection of the property tax increment <br />currently directed to these agencies. The Governor's proposal will not affect any projects that <br />are already under contract with redevelopment agencies; however, there would be no dedicated <br />State -level funding for new redevelopment projects. The budget proposal also calls for the <br />creation of a successor agency that will fulfill the current debt obligations of redevelopment <br />