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undefined Glossaries

5 Year implementation plan: 1994 law that requires redevelopment agencies to develop a five-year implementation plan, present it for public review and discussion, and submit it for approval by the governing body.

Blighted Areas: areas and/or structures of a community which constitute either physical, social, or economic liabilities requiring redevelopment in the interest of the health, safety, and general welfare of the people of the community and the state.

Bond: an interest-bearing promise to pay a specified sum of money – the principal amount – due on a specific date. The Agency issues tax allocation bonds to finance certain redevelopment programs. The proceeds from these issues are subject to the general spending restrictions of tax increment funds, including low and moderate income housing provisions. The bond proceeds are also subject to spending restrictions included in the individual bond indenture agreements and, in the case of federally tax exempt bonds, the Internal Revenue Code.

Budget Ordinance: City Council adopted Ordinance 166071 in July 1990, to establish a City review procedure of the CRA budget.

California Community Redevelopment Law: State of California legal requirements and issues in the practice of redevelopment under Health and Safety Code, Division 24, Part 1 (Section 33000 et seq.) usually referred to as “CRL”. When the CRL was initially adopted nearly 50 years ago, it was designed to address physical, social and economic problems prevalent in California communities, using techniques from federal experiences in urban renewal and housing.

Capital Budget: the portion of the budget that consists of multi-year appropriations for professional services, “land, bricks and mortar” and legal costs that are associated with specific project areas.

Carryover funds (resources Available from Prior Years): appropriated funds which remain unspent at the end of a fiscal year and which will be reallocated within the period of time covered by the subsequent proposed budget.

Citywide programs: general citywide programs not included as a redevelopment project area or revitalization area – Brownfields, Child Care, Disaster Assistance, Feasibility Studies, General Agency (schedule only), Housing – Citywide, Lanzit, Non-Housing and Targeted Neighborhood Initiative (TNI).

Community Redevelopment Agency of the City of Los Angeles (CRA): separate board created under and with powers established by CRL; comprised of seven commissioners appointed by the Mayor and approved by the legislative body (Los Angeles City Council).

Contracted: Board/Council approvals have been obtained and implementation agreements have been executed between the CRA and the ultimate recipient (e.g., DDAs, OPAs, loan agreements, bond indentures and MOUs).

Cost of Issuance: items of expense paid by the issuer directly related to the authorization, sale and issuance of bonds or notes, which may include professional consultant’s fees, legal fees and charges, trustee’s fees, printing costs, bond discounts, costs of credit ratings, fees and charges for execution, transportation and safekeeping of bonds, filing and recording fees.

Debt Service: payment of interest and principal on obligations resulting from issuance of bonds, notes and leases as well as the fiscal agent fees associated with those payments.

Demolition: removal of a structure or clearance of a site in order to carry out the redevelopment plan.

Direct costs: elements of cost necessary in the provision of a service that can be exactly and easily allocated to the unit of service.

Discretionary Funds: general term used to describe the Agency’s two least restricted funds – Special Revenue and Bunker Hill Program Income. Also, refer to Restricted Resources Agency-wide and General Revenue/Other definitions.

Disaster Recovery Redevelopment Project areas (Civil Disturbance): nine new and one amended CRA redevelopment project areas – Broadway/Manchester (MC), Council District 9 (C9), Crenshaw/Slauson (CS), Crenshaw – amended (CR), Mid City (MD), Vermont Manchester (VM), Watts Corridor (WC), Westlake (WL), Western/Slauson (WS) and Wilshire Center/Koreatown (WK).

Earmarked Programs: program has been approved by Board/Council and funds have been earmarked but are not yet legally obligated to a particular recipient (e.g., streetscape and façade programs).

Earthquake Recovery Project areas: four CRA redevelopment project areas – East Hollywood/Beverly-Normandie (EB), Laurel Canyon (LC), Pacoima/Panorama City (PC) and Reseda/Canoga Park (RP).

Eminent Domain: authority of a government agency to acquire property for public purposes.

Environmental Impact Report (EIR): an Environmental Impact Report is a detailed informational document prepared by the public agency which is responsible for carrying out the project that describes and analyzes a project’s significant environmental effects and discusses ways to mitigate or avoid those effects.

First-Year work program: the portion of the proposed work program that represents the first year of the multi-year capital budget and the annual operating budget. Resources estimated to be received in the fiscal year of the proposed budget may be allocated into future years.

Five year work program: a five year financial resource/expenditure plan that includes all anticipated resources and capital expenditures, operating expenses, and outstanding debt service (including amounts beyond the 5-year period).

General Revenue/Other: other general revenues or program income include loan repayments, land sale proceeds, lease revenues, investment income and amounts received from private sources under various contracts and agreements. These monies can be restricted for various purposes within the redevelopment project areas. This fund group includes the Agency’s two largest discretionary funds – Special Revenue and Bunker Hill Program Income.

Grant Resources: the Agency participates in a number of Federal, State and local grant programs which are primarily passed through the City. The Agency’s grant program includes Community Development Block Grant (CDBG), Housing Assistance Payment Program (HAAP), Housing Development Action Grant (HODAG), HOME Investment Partnership Program Funds (HOME), Economic Development Administration Grant (EDA), Economic Development Initiative (EDI), Brownfields Economic Development Initiative (BEDI), Local share of the County of LA transportation sales tax received by the City of Los Angeles (Proposition C), Federal, State and County transportation grant funds that pass-through the Metropolitan Transportation Authority of the County of Los Angeles (MTA), Urban Development Action Grant (UDAG), Section 108 loan funds are secured by a pledge of future CDBG funds by the City of Los Angeles Community Development Department.

Housing Resources: these funds represent primarily the 20% set aside of eligible incremental property tax revenue which provides housing for low and moderate income persons in redevelopment project areas, as required by Sate law. Also included in this fund group are amounts set aside for findings of benefit related to the Bunker Hill Housing funds.

Inclusionary Housing: housing built or rehabilitated within a redevelopment project area which is required by law to be available at an affordable housing cost to low- and moderate-income persons.

Indirect costs: elements of cost necessary in the provision of a service that cannot be exactly or easily allocated to the unit of service.

Mandated: activities mandated by the California Community Redevelopment Law (CRL) (e.g., building permit review, CEQA review, preparation of five-year implementation plans).

New Initiative: new undertaking that has not appeared on a previous budget.

Objective: an objective identifies a specific type of work being performed within a project area. A project Area’s work program includes various objective categories with a unique four digit code structure such as 1XXX – Housing. The four digit code is preceded by a two letter project area code such as NH – North Hollywood (e.g. NH 1010 – North Hollywood Residential Rehabilitation Housing).

Obligated: Board/Council approvals have been obtained, ultimate recipient has been identified, and implementation agreements between CRA and the designated recipients are in process.

Operating (program delivery) budget: the portion of the budget that consists of annual appropriations of funds for ongoing operating costs, such as personnel and administrative expenses.

Oversight: City Council adopted Ordinance 166735 in February 1991, to establish Council oversight of CRA operations. Under the oversight ordinance and corresponding Cooperation Agreement, the City Controller is CRA’s controller and the City Attorney is CRA’s general counsel.

Pass-through: a “tax sharing agreement” or financial agreement with an affected taxing entity (County, School District, etc.) that identifies an amount the redevelopment agency determines to be appropriate in order to alleviate a documented significant financial burden or detriment. (See Budget Schedule document for current status of pass-through agreements).

Project Area Committee (PAC): elected Citizen’s committee composed of project area residents, businesspersons, and representatives of organizations to consult with and advise the community. Community Advisory Committee (CAC) fulfills the same role as a PAC except the members are appointed by the City Council members and not elected.

Redevelopment: planning, development, redesign, clearance, reconstruction, or rehabilitation of all or part of a project area.

Redevelopment Plan: plan for revitalizing and redevelopment of land within the project area in order to eliminate blight and remedy the conditions which caused it.

Redevelopment Project areas: 31 of CRA’s project areas that have been designated as blighted by the CRA Board, Mayor and City Council and for which a redevelopment plan has been approved as required by CRL.

Refunding: a financial transaction by which a bond issue is redeemed by a new bond issue under conditions generally more favorable to the issuer.

Rehabilitation: to improve, alter, modernize or modify an existing structure to make it safe, sanitary, and decent and/or bring it up to Building Code Standards.

Relocation: the effort to assist and facilitate re-housing of families and single persons, businesses or organizations who are displaced due to redevelopment activities.

Replacement Housing: housing constructed to replace housing units destroyed or removed from the low or moderate income housing market as part of a redevelopment project.

Reserve Fund: fund held by issuer or designated trustee for a portion of proceeds as required by law and the bond resolution. Often is required on revenue-type bonds to maintain reasonably required reserve in the event of a shortfall in revenues to pay debt service.

Restricted Resources: resources received by the Agency each fiscal year are restricted and can be generally categorized as follows: Use restricted - examples are housing trust funds which by Sate Law are computed at a 20% set-aside of tax increment and must be used for low/moderate income housing, all grant funds such as CDBG, Cultural Trust Funds, etc. Project Area restricted - funds generated in a project area must be spent within the project area such as tax increment, bond proceeds, etc. with some exceptions like housing trust funds that could be spent outside the project area with a Finding of Benefit (F.O.B). Objective restricted - funds that must be spent on a specific work program objective such as debt service, developer contributions, grants, etc. Agency-wide restricted - this category is the least restricted. Funds included in this category are Special Revenue which is restricted to general redevelopment purposes, Bunker Hill Program Income which is restricted to block grant eligible costs and to some extent the General Revenue funds of each project Area. It should be noted that some funds may be restricted to more than one category.

Revitalization areas: three CRA areas – Boyle Heights I, Boyle Heights II, and Lincoln Heights I.

Sinking Fund: a fund commonly established by bond resolutions or other documents establishing debt in which money irrevocably pledged to the payment of debt is placed.

Statement Of Indebtedness: an annual statement of the Agency’s debt which must be filed with the County Auditor on or before October 1 each year in order to receive tax increment for that fiscal year. The statement of indebtedness includes information on the type and total amount of debt owed, and the total amount required to be paid during the fiscal year.

Tax Increment Resources: incremental property tax revenues represent property taxes collected from the excess of taxes levied and collected each year on a redevelopment project over the amount that would have been levied and collected on the base year property tax assessment (a property tax base year is determined to be the year prior to the establishment of a redevelopment project area). These funds may only be expended for redevelopment purposes in the project area. However, through a Finding of Benefit (F.O.B.) resolution funds may be expended outside the project area for housing purposes if the expenditures are of benefit to the project area.

Trustee: a bank designated by the issuer as the custodian of funds and official representative of bondholders. Trustees are appointed to insure compliance with the contract and represent bondholders to enforce their contract with the issuers.

Uncommitted: an activity that appeared in the previous budget but its implementation does not have specific Board/Council approval (e.g., preparation of design guidelines or activities that have been placed in the budget but no specific approvals have been sought).

Underwriter: a financial institution, which purchases a new issue of municipal securities for resale. The underwriter may acquire the bonds either by negotiation with the issuer or by award on the basis of competitive bidding.