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City to seek roughly $8.4 million in next ROPS drawdown after court wins recover redevelopment funds
Summary
City staff presented the successor agency ROPS for July 1, 2025–June 30, 2026 and explained litigation wins that recovered about $38 million from the state for previously denied redevelopment loans; council approved the ROPS and administrative budget and will submit to the county oversight board and Department of Finance for final review.
Interim Chief Financial Officer David Cain outlined the successor agency's Reorganized Recognized Obligation Payment Schedule (ROPS) for fiscal year 2025–26 and described recent litigation recoveries related to dissolved redevelopment agency loans.
City Attorney Michael E. Gates summarized litigation the city pursued to recover previously denied redevelopment reimbursements, saying Huntington Beach prevailed on two major loans. The court awarded about $5.2 million on the Emerald Cove loan (with interest to about $6.8 million) and $22.5 million on the waterfront loan (with interest growing that component to roughly $30 million), producing roughly $38 million in reimbursements plus interest. David Cain explained the requirement that a portion of recovered tax increment be set aside for low‑ and moderate‑income housing (about 20% of certain amounts) and described specific allocations already made and proposed uses for portions of the funds (e.g., equipment replacement, liability/worker's comp, and an internal 115 trust).
Nut graf: The council approved successor agency resolutions authorizing the ROPS submission and administrative budget for 07/01/2025–06/30/2026; the ROPS will be considered tomorrow by the Orange County Oversight Board and then submitted to the State Department of Finance, which reviews and releases funds following its schedule (payments typically flow in December and May). The city requested the maximum allowable drawdown for the period (about $8.4 million on the waterfront component) but noted the Department of Finance can revise the amount.
Cain said the Emerald Cove reimbursement already was received in fiscal 2023–24 and noted how recovered funds were allocated during budget work. The council discussed whether more of the recovered funds could be directed to the general fund versus housing set‑asides; staff said the law requires certain low‑mod allocations and that the remainder is available for general fund or other uses.
Ending: The council adopted the two successor agency resolutions by roll call (6‑0, one member absent) and staff will submit the ROPS to the county oversight board and then to the state for final review and payment.
