One More Thing They Forgot to Tell the City Council --State Controller Tells Cities To Put RDA Assets Back

State Controller John Chiang

Don't let anyone tell you that being on the City Council if a part time job. It isn't. Especially when I have to research what other cities are doing on the same issues Long Beach needs to deal with so that I can find out what the Long Beach City Council isn't being told.

Here we go again. Remember when the City Council wasn't told about the deadline for opting out as the "Successor Agency" after redevelopment was abolished by state law?

Well, it gets better. The City Council in anticipation of the end of redevelopment transferred redevelopment properties and assets to the city. Most cities in California did the same. Then when the Supreme Court clarified that yes, redevelopment was abolished and a schedule was established (that included that pesky drop dead date when the City could opt out of the obligations of being a successor agency). The City Council became the successor agency.

A successor agency was charged with wrapping up and disposing of formerly owned redevelopment properties and assets and to make sure that legally enforceable obligations were met. These legally enforceable obligations are those that redevelopment had before redevelopment was abolished.

On April 17th, the City Council was asked to approve the sale of property formerly owned by the redevelopment agency that had been transferred to the City. It was approved.

Then this week while researching what was going on in San Diego, I came across an article and a link to a letter that had been issued to all cities and counties by State Controller John Chiang ordering them to reverse all RDA asset transfers they had done before redevelopment was abolished and to transfer these assets to the successor agency. The letter was issued by the State Controller on April 20, 2012.

So here's what I (and you should) want to know:

• Did the City know that this letter was going to be sent (because rumor is that cities knew it was coming)
• And if so, why wasn't the City Council advised so before it took formerly owned redevelopment property and sold it?
• (Here's the best question of all) Why hasn't the City Council yet been given a copy of the State Controller's letter ?

Here's the State Controller's letter. Had I seen it before I was asked to approve the sale of formerly owned redevelopment property -- my vote would have been a "NO".
State Controller's Letter to Cities Reverse Transfer

Learn How to Thank a Veteran or Service Member in Long Beach

Armed Services Day and Memorial Day are just around the corner. So I have prepared a brochure that you can download which details how you can honor and thank a veteran and service member in Long Beach. Just click here for full story and brochure:

Thank Goodness Long Beach Has a Public Health Department

Long Beach Foreclosures Soar

Foreclosure, Mortgage Crisis. Deserted House. (Photo credit: Wikipedia)

The following is the most current number of homes listed in the City's foreclosure registry (which I cosponsored as a way to require lenders to be responsible for keeping these properties up to code after they foreclose upon them). As I write, Attorney General Kamala Harris is speaking before the State Joint Conference Committee which is considering her proposed Homeowner Bill of Rights.    Foreclosure Registry Map 5-9-12.pdf

Guess who doesn't want Long Beach supporting a "Homeowners Bill of Rights"?

Foreclosure Sign, Mortgage Crisis (Photo credit: Wikipedia)

On Tuesday, the City Council will be considering an agenda item I put forward with two co-sponsors, that calls upon the City Council to pass a resolution in support of California Attorney General Kamala Harris' "Homeowner Bill of Rights." (Click here to read the council agenda item.)

I have already received contact from a representative of the banking industry who is not too happy with this. Why, was I aware that the California Bankers Association and the Cal Chamber of Commerce opposed this package of legislation to protect homeowners?

Really. Is this because this package of legislation goes beyond the temporary homeowner protections outlined in the National Mortgage Settlement -- which applied only to the top 5 banks? This package of bills would be applied to all lenders who would have to stop practices such as foreclosing on homeowners as they try to negotiate a loan modification and mandate that banks designate a single person to work with troubled borrowers. The California Attorney General's bill package would ban some of the worst practices that contributed to the housing crisis and write the terms of the national agreement into state law and apply them to every lender.

The financial-industry and business trade groups have opposed the bills, arguing that while the national mortgage settlement’s terms are temporary and apply to only five banks, the bills’ changes would be permanent and universal. In fact, the proposed California Bill of Rights provides longer term protection for homeowners where the national mortgage settlement expires.
 
So come to City Council on Tuesday, May 8 at 5pm and let the City Council which side they should be on for this issue.

Related articles

• The California Homeowners Bill of Rights
• Federal Housing Chief Supports California Bill of Rights
• California's AG Pushing New Mortgage, Homeowner Protections
• What does the CA Homeowner Bill of Rights mean for Fresno?