Lawndale Municipal Code Ch. 3.30 Udag Fund

A. On June 8, 1984, the city received approval from the United States Department of Housing and Urban Development ("HUD") of an eight million dollar Urban Development Action Grant ("UDAG"). Pursuant to the grant agreement, said funds were to be utilized in the renovation and expansion of the South Bay Galleria ("Galleria") by the owner, South Bay Associates. Said funds were loaned by the city to South Bay Associates pursuant to a promissory note dated January 11, 1985, and a deed of trust which was recorded on April 11, 1985. Pursuant to the loan documents, the city was entitled not only to repayment of the loan but also participation in the excess proceeds from the operation and sale or refinancing of the Galleria. On March 16, 1989, the city and South Bay Associates agreed to South Bay Associates' acquisition of all of the city's right, title and interest in the Galleria, including the repayment of the note and reconveyance of the deed of trust, for the sum of ten million dollars.

B. The purpose of this chapter is to explain the origin of these funds and limits on how the assets may be expended.

(Ord. 617-89 § 1; Ord. 1149-18 § 1)

There is created in the city treasury a special fund to be known as the Urban Development Action Grant (UDAG) fund. This special fund shall be accounted for in conformance with generally accepted accounting principles (GAAP) for governmental entities.

(Ord. 617-89 § 1; Ord. 1149-18 § 1)

All moneys in the UDAG fund shall be invested in conformance with the city's current investment policy.

(Ord. 617-89 § 1; Ord. 1149-18 § 1)

The UDAG funds shall be used for one-time expenses, not operational expenses, at the discretion of the city council. Expenditures from this fund shall be made in the same manner as general fund expenditures such as capital.

(Ord. 617-89 § 1; Ord. 725-93 § 1; Ord. 730-93 § 1; Ord. 1149-18 § 1)