ROPS amendment workshop: staff seeks $53.24 million revenue increase for housing and infrastructure

Staff presented a workshop on an amendment to the Recognized Obligation Payment Schedule (ROPS) for the period 01/01/2020 to 06/30/2020 and described a proposed increase in recognized revenues that would fund infrastructure and affordable-housing obligations in OCII project areas. "The total requested increase is 53,240,000.00," Mina Yu, financial reporting and management analyst for OCII, told commissioners.

Yu said the amendment reflects updated assessor rolls and recent project completions (including major developments in Mission Bay such as the Chase Center and nearby large office buildings), and that the additional revenue would not require an expenditure budget amendment because it increases revenue rather than authorized spending. Staff explained the requested increase is all in Redevelopment Property Tax Trust Fund (RPTTF) non-admin and that approximately $15,330,000 of the increase is allocated to affordable‑housing pledges across project areas; other increases would reimburse developers for infrastructure already constructed in the agency's project areas.

The item was presented as a workshop for questions and discussion; no action was taken by the commission at this meeting. Yu said the oversight board is scheduled to take action on the amendment and staff will submit the amendment to the Department of Finance by September 30; Department of Finance was expected to notify staff of a decision on December 16. Commissioners asked whether the figures represent collected revenue or estimates. Yu replied that August collections were included and that January figures remain estimates, but the updated numbers are more robust than earlier projections.

Because this was a workshop, commissioners did not vote. The oversight board will consider the ROPS amendment and staff plans to file the amendment with the Department of Finance by the end of the submission period.