Bulletin: CA2012003

Date:
May 07, 2012
To:
All California Issuing Offices
RE:
Working through Redevelopment Agencies Dissolutions

Dear Associates:

As you know by now:

All California Redevelopment Agencies have been dissolved;

Successor Agencies have acceded to the assets and obligations of the former Redevelopment Agencies;

Oversight Boards have been constituted;

Certain Housing Agencies have acceded to "housing assets; and

Many other aspects of ABX1 26 have been or are being complied with. 

Now that former properties and assets of Redevelopment Agencies are being dealt with, many questions regarding the application of ABX1 26 are arising.  The questions seem to revolve around 3 areas of the new law:

The Claw-back provision, which gives the state the right to go back to January 1, 2011 to review any dealing with the property or assets of a Redevelopment Agency, including the right to maybe set aside any transaction such as a deed or deed of trust executed by the Redevelopment Agency.

The Oversight Boards, dealing with matters that must be referred to them after a proposed action by a Successor Agency; and

Housing Assets being dealt with by successor Housing Agencies (the term "housing assets" is yet to be defined by the legislature).

There are a number of proposed amendments dealing with clarification of ABX1 26.  A couple have already been introduced in the legislature.  There will be more coming.

As we work through these various situations, this will serve as a reminder that any request for title insurance to be issued in any transaction involving a Redevelopment Agency or any Successor Agency must be referred to STG Underwriting as soon as you have knowledge of a Redevelopment or Successor Agency involvement.

You may get a request for a commitment instead of a preliminary report.  Any commitment to be issued where a Redevelopment Agency or Successor Agency is or was previously involved in your transaction must be referred to STG Underwriting before issuance of the commitment.  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
CA2012001 California Redevelopment Agencies
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None