(a) Common Bond Reserve Special Fund.
(1) There is hereby created in the Treasury of The City of Los Angeles a special fund to be known as the “Common Bond Reserve Special Fund” (the “Fund”).
(2) The purpose of the Fund is to receive all payments of principal and interest collected by the City from the City’s Urban Development Action Grant Program, which consist of projects awarded and funded by the U.S. Department of Housing and Urban Development Urban Development Action Grants (42 U.S.C. 5318; 24 C.F.R. 570.450), and such money, other than from the City’s General Fund, as the Council may in its discretion direct, in order to assist the Common Bond Reserve Fund Program of the City (the “Program”). The Program consists of the pooling together of the bond reserve funds of all the bond issues issued under the Program to form one common bond reserve to serve as additional security for the payment of principal and interest on any bond issue, with an additional reserve consisting of the total of the City’s contribution for each bond issue of funds equal to 15% of the principal amount of each bond issue (collectively referred to as the Business Development Trust Fund, “Business Fund”), together with a pledge that if the common bond reserve and the Business Fund are not sufficient, then money in the Fund will be available to replenish the Business Fund. The purposes of the Program are for the public purposes of creating more jobs for the low and moderate income residents of the City, keeping businesses from leaving the City and encouraging businesses to locate in the City so as to protect and increase the City’s tax base and its employment base. The Program may include the participation of the Industrial Development Authority of the City of Los Angeles and its bonds, and such other entities as the Council may approve.
(3) Money in the Fund will be pledged to replenish the Business Fund. The maximum amount of money held in the Fund during any month may not exceed the total amount deposited into the Fund during the preceding two months. At the end of each month any money not disbursed to replenish the Business Fund and any money above the maximum amount that may be deposited into the Fund shall be deemed excess money, shall no longer be a part of the Fund and shall be distributed out of the Fund to the Community Development Department’s Urban Development Action Grant Revolving Loan Fund.
(4) The Fund is to be administered and expended by the Community Development Department, but expenditures may be made only after authorization by the City Council.
(5) The Fund shall retain all of its earnings. Pursuant to Charter Section 344, money in the Fund shall not be subject to reversion to the Reserve Fund of the City.
(b) [Repealed.]
(c) Subordinate Loans Revolving Special Fund.
(1) There is hereby created in the Treasury of the City of Los Angeles a special fund to be known as the "Subordinate Loans Revolving Special Fund" (the "Fund").
(2) The purpose of the Fund is to hold all of the money available as of June 13, 1991, plus accrued earnings, from money previously allocated to the Business Development Trust Fund, and such other money as the Council may approve, to be used in the Subordinate Loans Revolving Special Fund Program (the "Program"); provided that not to exceed $1,000,000 may be used for Urban Development Action Grant eligible activities outside of the Program, as Council may approve. The Program consists of loans to be made on a subordinated basis to borrowers for which bonds are issued by the Industrial Development Authority of the City of Los Angeles or the City, for economic development projects, to be used for costs of bond issuance, costs of land, building, and equipment, working capital necessary for startup costs, training costs, relocation costs and such other related costs as the Council may approve. Loan repayments are to be retained by the Fund to be used on a revolving basis for more loans under the Program.
(3) The Fund shall be administered by the General Manager of the Community Development Department, but expenditures may be made only after authorization by the Council. Guidelines for the Program may be adopted by the Council.
(4) The Fund shall retain all of its earnings. Pursuant to Charter section 344, money in the Fund shall not be subject to reversion to the Reserve Fund of the City.
SECTION HISTORY
Added by: Ord. No. 166,936, Eff. 6-13-91.
Amended by: In Entirety, Ord. No. 171,637, Eff. 7-28-97; Ord. No. 173,305, Eff. 6-30-00, Oper. 7-1-00; Subsec. (b) repealed, Ord. No. 177,138, Eff. 1-1-06; Subsec. (b) repealed and Subsec. (c) amended, Ord. No. 177,139, Eff. 1-1-06.