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CDD:HSG:BS:CE:JG:torca\staff\pc
council Keeting: April 28, 1992
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santa Monica, california
To: City council
From: City staff
Subject: Recommendation for Appropriation of TORCA Fund
INTRODUCTION
This report is to recommend the appropriation of
Tenant
Participating Conversion Tax Funds collected by the city pursuant
to the Tenant Ownership Rights Charter Amendment (TORCA).
Appropriation of the funds is necessary to effectuate the terms of
the TORCA initiative and to permit the expenditure of the funds,
subject to future City council approval, for eligible TORCA loan
projects.
DISCUSSION
The Tenant Ownership Rights Charter Amendment (TORCA) was adopted
at a Special Municipal Election on June 5, 1984 and amended on
November 6, 1984 and November 6, 1990.
The TORCA Charter
Amendment, in Section 2008, establishes a Tenant-participating
Conversion Tax consisting of twelve times the monthly rent of each
participating unit. The tax is paid into a Tenant Participating
Conversion Fund whose uses are limited to assisting certain low and
moderate income households in Tenant Participating Conversions,
pursuant to Section 2009.
As of March 31, 1992, the TORCA Conversion Tax Fund has a balance
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of approximately $4,700,000.
It is anticipated that a total of
$5,250,000 will be received by June 30, 1992.
staff recommends
that the Council approve a technical appropriation of the full
amount of the TORCA Fund, $5,250,000 for future allocation to
eligible projects.
This appropriation does not authorize the
expenditure of funds on any particular project. Any future project
would be required to receive prior City Council approval before
funds could be released.
FINANCIAL/BUDGETARY IMPACT
council approval of this technical appropriation sUbjects these
funds to the current fiscal year TORCA Gann Limit.
This will
enable Council to allocate these funds to specific TORCA projects
in future fiscal years without its having to be subjected to future
fiscal years TORCA Gann Limits.
RECOMMENDATION
It is recommended that the City Council appropriate $5,250,000 in
TORCA funds at account number 14-720-264-20092-8906-99349.
Prepared by: Barbara stinchfield, Acting Director
Chuck Elsesser, Housing Program Manager
Johanna Marie Gullick, Senior Development Analyst
Community Development Department
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