HomeMy WebLinkAboutLegislative Review CMTE AB 2922 (Jones) �. �
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Staff Report
REQUEST: CONSIDERATI4N OF LEGISLATIVE REVIEW COMMITTEE
ACTION ON AB 2922(JONES�AT ITS MEETING OF APRIL 5,2006
SUBMITTED BY: Patricia Sculty, CFEE, Senior Management Analyst
DATE: April 27, 2006
CONTENTS: AB 2922 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 2922 (Jones) relative to low and moderate income housing
fund.
EXECUTIVE SUMMARY:
Passage of AB 2922 would increase to 5U percent the amount a redevelopment agency
would be required to set aside to satisfy its low and moderate income housing obligation.
BACKGROUND:
Existing law authorizes redevelopment agencies to pay the principal of, and interest on,
indebtedness incurred to finance or refinance redevelopment from a portion of property tax
revenues diverted from other taxing agencies. Existing law also requires a redevelopment
agency to use at least 20 percent of �s tau increment revenues for the purposes of
increasing,improving,and preserving the community's supply of low and moderate income
housing available at affordable cost to persons and families of low or moderate income and
lower,very low,and extremely low income households that are occupied by these persons
and families unless the agency makes certain findings. Passage of AB 2922 would
increase to 50 percent the amount a redevelopment agency would be required to set aside
for its low and moderate income housing obligation. This bill would also require that
displaced persons of low and moderate income be given a right of first refusal to occupy
CITY COUNCIL STAFF REPORT
RE: AB 2922 (JONES) APRIL 27, 2006
replacement housing and would require the redevelopment agency to establish rules for
determining the order or priority of persons who are required to be given priority.
The City of Palm Desert continually strives to serve the needs of very low, low, and
moderate income families located within its community. Mandating an increase to 50
percent of tax increment revenues for the purpose of increasing and preserving the City's
supply is a decision best left to the discretion of local goveming bodies who are in the best
position to determine the flavor and needs of their communities. Therefore,the Legislative
Review Committee recommends that the City Councit oppose AB 2922 and direct staff to
prepare a letter stating that position to appropriate legislators for the Mayor's signature.
PATRICIA SCULLY, CFE
NI R MA EMEN ANALYST
SHEILA R. G LIGAN CARLOS L. OR GA
ACM/COMMUNITY ICES CITY MANAGER
PS:mpg
2
CALIFORNIA LEGISLATURE-2005-OG REGULAR SESSION
ASSEMBLY BILL No. 2922
Introduced by Assembly Member Jones
February 24, 2006
An act to amend Sections 33333.10, 33334.3, 33334.4, 33334.14,
33411.2, 33411.3, 33413, and 33413.5 of, and to amend, repeal, and
add Sections 33334.2, 33334.6, and 33487 of, the Health and Safety
Code, relating to redevelopment. ,
, LEGISLATNE COUNSEL'S DIGEST
AB 2922, as introduced, Jones. Redevelopment: Low and Moderate
Income Housing Fund. '
Existing law authorizes redevelopment agencies to pay the principal - '
of, and interest on, indebtedness incurred to finance or refinance
redevelopment, from a portion of properiy tax revenues diverted from
other taxing agencies. The portion of taxes diverted is the amount
attributable to increases in assessed valuation of property in the
redevelopment project area subsequent to establishment thereo£ This
method of financing is commonly lcnown as"tax incremenY'financing
and is specifically authorized by Section 16 of Article XVI of the �
California Constitution.
Existing law requires a redevelopment agency to use at least 20%of
its tax increment revenues for the purposes of increasing, improving,
and preserving the community's supply of low- and moderate-income
housing available at affordable cost to persons and families of low or
moderate income and lower, very low, and extremely low income
households that are occupied by these persons and families unless the
agency makes certain findings. These funds are required to be
deposited in a separate Low and Moderate Income Housing Fund.
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AB 2922 —2—
This bill would increase to 50%the amount a redevelopment agency
would be required to set aside for its low- and moderate-income
housing obligation. The bill would permit a redevelopment agency to '
set aside less in specified circumstances and would make an agency
liable for the deficit so created. The bill would make these deficit �
amounts an indebtedness of the agency and would add simple interest ,
at the average rate earned by the housing fund if the deficit is not �
eliminated in 5 years.
Existing law requires covenants and restrictions on the affordability �
of all new or substantially rehabilitated housing units developed or
assisted with funds required to be used for low- and moderate-income , , ,
housing to be recorded in the office of the county recorder and makes � ,
those covenants and restrictions enforceable by the agency or the ,
community. ,
This bill would make the covenants and restrictions enforceable by
any interested party, including a person or family of low or moderate
income that is eligible to reside in the property and would require the
agency to obtain and maintain a copy of the covenants and
restrictions.
Existing law requires a redevelopment agency to replace dwelling
units housing persons and families of low- or moderate-income that
are destroyed or removed from the low-and moderate-income housing
market as part of a redevelopment project that is subject to a written �
agreement with the agency or where financial assistance is provided
by the agency. Existing law requires the agency to keep a list of `
displaced persons and families of low and moderate income who are
to be given priority in renting or buying the replacement housing and
authorizes an agency to establish reasonable rules for determining the
order or priority on the list.
This bill would require that displaced persons of low or moderate �
income be given a right of first refusal to occupy replacement housing
and would require the redevelopment agency to establish rules far
determining the order or priority of persons who are required to be
given priority. The bill would subject the agency to the replacement
requirement when dwelling units housing persons and families of low
or moderate income are destroyed or removed from that market by the
agency or any other public entity as part of a redevelopment project.
The bill would require that the displaced household be presumed to
have been extremely low income if the income level of the displaced
household is not verified or known by the agency.
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Existing law requires a redevelopment agency to adopt by resolution
a replacement housing plan not less than 30 days before the execution .
of an agreeinent for acquisition of real properly or the disposition and
development of property, or the execution of an owner participation
agreement, if agreement would lead to the destruction or removal of '
dwelling units from the low- and moderate-income housing market '
and requires the agency to make available a draft of the plan for �
review and comment by the project area committee, other public
agencies, and the general public for a reasonable time before adopting
a replacement housing plan by resolution.
This bill would require the plan to be adopted 180 days before the ' ' '
execution of the agreement or before any action by the agency or any � '
other public entity. The agency would be required to make the draft '
available to the public 90 days before adopting it. The bill would '
make these requirements applicable when an agency destroys or
removes housing the agency owns and is an immediate danger to
health and safety.
Existing law requires a redevelopment agency to expend, over the
duration of its redevelopment implementation plan, the moneys in the
Low and Moderate Income Housing Fund to assist housing far
persons of low income and housing for persons of very low income in
at least the same proportion as the number of housing units needed for
each of those income groups bears to the total number of units needed -
for persons of moderate, low, and very low income within the ,
community.
This bill would instead require a redevelopment agency to assist in
making available a number of housing units that are affordable to, and
occupied by, extremely low and very low income persons that is at
least equal to the number of units that are affordable to low- and
moderate-income persons.
The provisions in the bill would generally become operative on July
1, 2007.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 33333.10 of the Health and Safety Code
2 is amended to read:
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AB 2922 —4—
1 33333.10. (a) (1) Notwithstanding the time limits in
2 subdivisions (a) and (b) of Section 33333.6, an agency that
3 adopted a redevelopment plan on or before December 31, 1993,
4 may, pursuant to this section, amend that plan to extend the time
5 limit on effectiveness of the plan for up to 10 additional years
6 beyond the limit allowed by subdivision(a) of Section 33333.6.
7 (2) In addition, the agency may, pursuant to this section,
8 ainend that plan to extend the time limit on the payment of
9 indebtedness and receipt of property taxes to be not more than 10
10 years from the termination of the effectiveness of the
11 redevelopment plan as that time limit has been amended pursuant
12 to paragraph(1).
13 (b) A redevelopment plan may be amended pursuant to
14 subdivision (a) only after the agency finds, based on substantial
15 evidence, that both of the following conditions exist:
16 (1) Significant blight remains within the project area.
17 (2) This blight cannot be eliminated without extending the
18 effectiveness of the plan and the receipt of property taxes. '
19 (c) As used in this section:
20 (1) "Blight" has the same meaning as that term is given in
21 Section 33030.
22 (2) "Significant" means important and of a magnitude to �
23 warrant agency assistance. � ,
24 (3) "Necessary and essential parcels" means parcels that are
25 not blighted but are so necessary and essential to the elimination
26 of the blight that these parcels should be included within the
27 portion of the project area in which tax increment funds may be
28 spent. "Necessary and essential parcels" are (A) parcels that are
29 adjacent to one or more blighted parcels that are to be assembled
30 in order to create a parcel of adequate size given present ,
31 standards and market conditions, and (B) parcels that are
32 adjacent or near parcels that are blighted on which it is necessary
33 to construct a public improvement to eliminate the blight.
34 (d) For purposes of this section, significant blight can exist in
35 a project area even though blight is not prevalent in a project
36 area. The report submitted to the legislative body pursuant to
37 Section 33352 shall identify on a map the portion of the project
38 area in which significant blight remains.
39 (e) After the limit on the payment of indebtedness and receipt
40 of property taxes that would have taken effect but for the
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1 amendment pursuant to this section,except for funds deposited in
2 the Low and Moderate Income Housing Fund pursuant to Section
3 33334.2 or 33334.6, the agency shall spend tax increment funds
4 only within the poition of the project area that has been identified
5 in the report adopted pursuant to Section 33352 as the area
6 containing blighted parcels and necessary and essential parcels.
7 Except as otherwise limited by subdivisions (fl and (g), agencies
8 may continue to spend funds deposited in the Low and Moderate
9 Income Housing Fund in accordance with this division.
10 (fl (1) Except as otherwise provided in this subdivision, after
11 the limit on the payment of indebtedness and receipt of property
12 taxes that would have taken effect, but for the amendment
13 pursuant to this section, agencies shall only spend moneys from
14 the Low and Moderate Income Housing Fund for the purpose of
15 increasing, improving,and preserving the cornmunity's supply of
16 housing at affordable housing cost to persons and families of
17 low, very low, or extremely low income, as defined in Sections ,
18 50079.5,50093, 50105, and 50106.During this period,an agency
19 that has adopted an amendment pursuant to subdivision (a) may '
20 use mon�ys from the Low and Moderate Income Housing Fund
21 for the purpose of increasing, improving, and preserving housing
22 at affordable housing cost to persons and families of moderate '
23 income as defined in Section 50093. However, this amount shall - �
24 not exceed, in a five-year period,the amount of moneys from the
25 Low and Moderate Income Housing Fund that are used to
26 increase, improve, and preserve housing at affordable housing
27 cost to persons and families of extremely low income, as defined
28 in Section 50106. In no case shall the amount expended for
29 housing for persons and families of moderate income exceed 15
30 percent of the annual amount deposited in the Low and Moderate °
31 Income Housing Fund during a five-year period and the number
32 of housing units affordable to moderate-income persons shall not
33 exceed the number of housing units affordable to extremely low
34 income persons.
35 (2) Commencing with the first fiscal year that commences
36 after the date of the adoption of an amendment pursuant to
37 subdivision(a) and until the limit on the payment of indebtedness
38 and receipt of property taxes that would have taken effect but for
39 the amendment pursuant to this section, an agency that has
40 adopted an amendment pursuant to subdivision (a) may use
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AB 2922 —6— �
1 moneys from the Low and Moderate Income Housing Fund for
2 the purpose of increasing, improving, and preserving housing at
3 affordable housing cost to persons and families of moderate �
4 income as defined in Section 50093. However, this amount shall
5 not exceed, in a five-ye�r period, 15 percent of the amount of �
6 moneys deposited in the Low and Moderate Income Housing .
7 Fund during that five-year period and shall only be used to assist �
8 housing projects in which no less than 49 percent of the units are
9 affordable to and occupied by persons and families of low, very �
10 low, ar extremely low income. An agency may spend an
11 additional amount of moneys in the same or other housing , � , ,
12 projects to assist housing units affordable to and occupied by � ,
13 moderate-income persons. However, this amount shall not ,
14 exceed the lesser of: the amount of moneys spent to increase, ,
15 improve, and preserve housing at affordable housing cost to
16 persons and families of extremely low income as defined in
17 Section 50106, or 5 percent of the moneys deposited in the Low
18 and Moderate Income Housing Fund during that five-year period.
19 (g) (1) Except as provided in paragraph (2) or (3),
20 commencing with the first fiscal year that commences after the
21 date of adoption of an amendment pursuant to subdivision (a),
22 not less than 30 percent, or SO percent commencing with the
23 2007-08 fiscal year, of all taxes that are allocated to the agency �
24 pursuant to Section 33670 from the redevelopment project area
25 so amended shall be deposited into that project's Low and "
26 Moderate Income Housing Fund for the purposes specified in
27 subdivision(fl.
28 (2) In any fiscal year, the agency may deposit less than the
29 amount required by paragraph (1), but not less than the amount
30 required by Section 33334.2 or 33334.6, into the Low and
31 Moderate Income Housing Fund if the agency finds that the ,
32 difference between the amount deposited and the amount
33 required by paragraph (1) is necessary to make principal and
34 interest payments during that fiscal year on bonds sold by the
35 agency to finance or refinance the redevelopment project prior to
36 six months before the date of adoption of the amendment
37 pursuant to subdivision(a). Bonds sold by the agency prior to six
38 months before the date of the adoption of the amendment
39 pursuant to subdivision(a) may only be refinanced, refunded, or
40 restructured after the date of the amendment pursuant to
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1 subdivision (a). However, for purposes of this section, bonds
2 refinanced, refunded, or restructured after the date of the ,
3 amendment pursuant to subdivision(a)•may only be treated as if
4 sold on the date the original bonds were sold if (A) the net
S proceeds were used to refinance the original bonds, (B) there is �
6 no increase in the amount of principal at the time of refinancing, '
7 restructuring, or refunding, and (C) the time during which the �
8 refinanced indebtedness is to be repaid does not exceed the date
9 on which the existing indebtedness would have been repaid. '
10 (3) No later than 120 days prior to depositing less than the
11 amount required by paragraph (1) into the Low and Moderate ' ' '
12 Income Housing Fund,the agency shall adopt,by resolution after � �
13 a noticed public hearing,a finding that the difference between the '
14 amount allocated and the amount required by paxagraph (1) is '
15 necessary to make payments on bonds sold by the agency to
16 finance or refinance the redevelopment project and identified in
17 the preliminary report adopted pursuant to paragraph (9) of
18 subdivision (e) of Section 33333.11, and specifying the amount
19 of principal remaining on the bonds, the amount of annual
20 payments, and the date on which the indebtedness will be repaid.
21 Notice of the time and place of the public hearing shall be
22 published in a newspaper of general circulation once a week for
23 at least two successive weeks prior to the public hearing. The -.
24 agency shall make available to the public the proposed resolution ,
25 no later thaxx the time of the publication of the first notice.of the
26 public hearing. A copy of the resolution shall be transmitted to
27 the Department of Housing and Community Development within
28 10 days after adoption.
29 (4) Notwithstanding paragraph(1), an agency that sells bonds
30 on or after the date of adoption of an amendment pursuant to
31 subdivision(a), the repayment of which is to be made from taxes
32 allocated to the agency pursuant to Section 33670 from the
33 project so amended,may elect to subordinate up to 16 z/ percent
34 of its annual 30-percent, _or 50 percent commencing in the
35 2007-08 fiscal year, Low and Moderate Income Housing Fund
36 deposit obligation to the payment of debt service on the bonds. If
37 the agency makes that election and in any year the agency has
38 insufficient tax-increment revenue available to pay debt service
39 on the bonds to which the funds from the Low and Moderate
40 Income Housing Fund are subordinated, the agency may deposit
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1 less than the full 100 percent of its annual 30-percent, or 50
2 percent commencing' in the 2007-08 fiscal year, Low and
3 Moderate Income Housing Fund obligation but only to the extent
4 necessary to pay that debt service and in no event.shall less than
5 83 '/ percent of that obligation be deposited into the Low and
6 Moderate Income Housing Fund for that year. The difference
7 between the amount that is actually deposited in the Low and
8 Moderate Income Housing Fund and the full 100 percent of the
9 agency's 30-percent, or SO percent commencing in the 2007-08
10 fiscal year Low and Moderate Income Housing Fund deposit
11 obligation shall constitute a deficit in the Low and Moderate
12 Income Housing Fund subject to repayment pursuant to
13 paragraph(5).
14 (5) If, pursuant to paragraph (2) or (4), the agency deposits
15 less than 30 percent, or SO percent commencing in the 2007-08
16 fiscal year, of the taxes allocated to the agency pursuant to
17 Section 33670 in any fiscal year in the Low and Moderate
18 Income Housing Fund, the amount equal to the difference '
19 between 30 percent, or SO percent comrriencing in the 2007-08
20 fiscal year, of the taxes allocated to the agency pursuant to
21 Section 33670 for each affected redevelopment project area and
22 the amount actually deposited in the Low and Moderate Income '
23 Housing Fund for that fiscal year shall be established as a deficit � �
24 in the Low and Moderate Income Housing Fund. Any new tax
25 increment funds not encumbered pursuant to paragraph(2) or(4)
26 shall be utilized to reduce or eliminate the deficit prior to
27 entering into any new contracts, commitments, or indebtedness.
28 The obligations imposed,by this section are hereby declared to be
29 an indebtedness of the redevelopment project to which they
30 relate, payable from taxes allocated to the agency pursuant to �
31 Section 33670 and, notwithstanding any other provision of law,
32 shall constitute an indebtedness of the agency with respect to the
33 redevelopment project, and the agency shall continue to receive
34 allocations of taxes pursuant.to Section 33670 until the deficit is
3 5 paid in full.
36 (h) An agency may not amend its redevelopment plan pursuant
37 to this section unless the agency first adopts a resolution that
38 finds,based on substantial evidence, all of the following:
39 (1) The community has adopted a housing element that the
40 department has determined pursuant to Section 65585 of the
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1 Government Code to be in substantial compliance with the
2 requirements of Article 10.6 (commencing with Section 65580) .
3 of Chapter 3 of Division 1 of Title 7 of the Government Code, or
4 if applicable, an eligible city or county within the jurisdiction of
5 the San Diego Association of Governments has adopted a �
6 self-certification of compliance with its adopted housing element '
7 pursuant to Section 65585.1 of the Government Code. �
8 (2) During the three fiscal years prior to the year in which the
9 amendment is adopted, the agency has not been included in the �
10 report sent by the Controller to the Attomey General pursuant to
11 subdivision(b)of Section 33080.8 as an agency that has a"major ' ' '
12 violation"pursuant to Se�tion 33080.8. ' '
13 (3) After a written request by the agency and provision of the '
14 information requested by the department, the department has '
15 issued a letter to the agency, confirnung that the agency has not
16 accumulated an excess surplus in its Low and Moderate Income
17 Housing Fund. As used in this section, "excess surplus" has the
18 same meaning as that term is defined in Section 33334.12. The
19 department shall develop a methodology to collect information
20 required by this section. Information requested by the department ,
21 shall include a certification by the agency's independent auditor
22 on the status of excess surplus and submittal of data for the
23 department to verify the status of excess surplus. The �
24 independent auditor shall make the required certification based
25 on the Controller's office guidelines which shall include the
26 methodology prescribed by the department pursuant to
27 subparagraph (D) of paragraph (3) of subdivision (g) of Section
28 33334.12. If the department does not respond to the written
29 request of the agency for this determination within 90 days after
30 receipt of the written request, compliance with this requirement
31 shall be deemed confirmed.
32 (i) Each redevelopment plan that has been adopted prior to
33 January l, 1976,that is amended pursuant to subdivision(a) shall
34 also be amended at the same time to make subdivision (b) of
35 Section 33413 applicable to the redevelopment plan in
36 accordance with paragraph (1) of subdivision (d) of Section
37 33413.
38 (j) The amendment to the redevelopment plan authorized
39 pursuant to this section shall be made by ordinance pursuant to
40 Article 12 (commencing with Section 33450). The ordinance
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1 shall be subject to referendum as prescribed by law for
2 ordinances of the legislative body.
3 (k) This section shall not apply to a project area that retains its
4 eligibility to incur indebtedness and receive tax increment
5 revenues pursuant to Section 33333.7.
6 (� The limitations established in the ordinance adopted
7 pursuant to this section shall not be applied to limit allocation of
8 taxes to an agency to the extent required to comply with Section
9 33333.8. In the event of a conflict between these limitations and
10 the obligations under Section 33333.8, the limitation established
11 in the ordinance shall be suspended pursuant to Section 33333.8.
12 SEC. 2. Section 33334.2 of the Health and Safety Gode is
13 amended to read:
14 33334.2. (a) Not less than 20 percent of all taxes that are
15 allocated to the agency pursuant to Section 33670 shall be used
16 by the agency for the purposes of increasing, improving, and
17 preserving the community's supply of low-and moderate-income
18 housing available at affordable housing cost, as defined by '
19 Section 50052.5, to persons and families of low or moderate
20 income, as defined in Section 50093, lower income households,
21 as defined by Section 50079.5, very low income households, as
22 defined in Section 50105, and extremely low income households, �
23 as defined by Section 50106, that is occupied by these persons � �
24 and families, unless one of the following findings is made
25 annually by resolution:
26 (1) (A) That no need exists in the community to improve,
27 increase, or preserve the supply of low- and moderate-income
28 housing, including housing for very low income households in a
29 manner that would benefit the project area and that this finding is
30 consistent with the housing element of the community's general ,
31 plan required by Article 10.6 (commencing with Section 65580)
32 of Chapter 3 of Division 1 of Title 7 of the Government Code,
33 including its share of the regional housing needs of very low
34 income households and persons and families of low or moderate
35 income.
36 (B) This finding shall only be'made if the housing element of
37 the community's general plan demonstrates that the community
38 does not have a need to improve, increase, or preserve the supply
39 of low- and moderate-income housing available at affordable
40 housing cost to persons and families of low or moderate income
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1 and to very low income households. This finding shali only be
2 made if it is consistent with the plaruiing agency's annual report
3 to the legislative body on implementation of the housing element
4 required by subdivision (b) of Section 65400 of the Government
5 Code. No agency of a charter city shall make this finding unless
6 the planning agency submits the report pursuant to subdivision
7 (b) of Section 65400 of the Government Code. This finding shall
8 not take effect until the agency has complied with subdivision(b)
9 of this section.
10 (2) (A) That some stated percentage less than 20 percent of
11 the taxes that are allocated to the agency pursuant to Section
12 33670 is sufficient to meet the housing needs of the community,
13 including its share of the �egional housing needs of persons and
14 families of low- or moderate-income and very low income
15 households, and that this finding is consistent with the housing
16 element of the community's general plan required by Article 10.6
17 (commencing with Section 65580) of Chapter 3 of Division 1 of .
18 Title 7 of the Govemment Code.
19 (B) This finding shall only be made if the housing element of
20 the community's general plan demonstrates that a percentage of
21 less than 20 percent will be sufficient to meet the community's
22 need to improve, increase, or preserve the supply of low- and
23 moderate-income housing available at affordable housing cost to � '
24 persons and families of low or moderate income and to very low
25 income households. This finding shall only be made if it is ,
26 consistent with the planning agency's annual report to the
27 legislative body on implementation of the housing element
28 required by subdivision (b) of Section 65400 of the Government
29 Code. No agency of a charter city shall make this finding unless
30 the planning agency submits the report pursuant to subdivision '
31 (b) of Section 65400 of the Government Code. This finding shall
32 not take effect until the agency has complied with subdivision(b)
33 of this section.
34 (C) For purposes of making the findings specified in this
35 paragraph and paragraph (1), the housing element of the general
36 plan of a city, county, or city and county shall be current, and
37 shall have been deternuned by the department pursuant to
38 Section 65585 to be in substantial compliance with Article 10.6
39 (commencing with Section 65580) of Chapter 3 of Division 1 of
40 Title 7 of the Government Code.
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1 (3) (A) That the community is making a substantial effort to
2 meet its existing and projected housing needs, including its share ,
3 of the regional housing needs, with respect to persons and
4 families of low and moderate income, particularly very low
5 income households, as identified in the housing element of the '
6 community's general plan required by Article 10.6 (commencing �
7 with Section 65580) of Chapter 3 of Division 1 of Title 7 of the '
8 Government Code, and that this effort, consisting of direct
9 financial contributions of local fiznds used to increase and '
10 improve the supply of housing affordable to, and occupied by,
11 persons and families of low or moderate income and very low � � �
12 income households is equivalent in impact to the funds otherwise ' �
13 required to be set aside pursuant to this section. In addition to any �
14 other local funds,these direct financial contributions may include �
15 federal or state grants paid directly to a community and which the
16 community has the discretion of using for the purposes for which
17 moneys in the Low and Moderate Income Housing Fund may be
18 used. The legislative body shall consider the need that can be
19 reasonably foreseen because of displacement of persons and
20 families of low or moderate income or very low income
21 households from within, or adjacent to, the project area, because
22 of increased employment opportunities, or because of any other
23 direct or indirect result of implementation of the redevelopment "
24 plan. No finding under this subdivision may be made until the
25 community has provided or ensured the availability of A
26 replacement dwelling units as defined in Section 33411.2 and
27 until it has complied with Article 9 (commencing with Section
28 33410).
29 (B) In making the determination that other financial
30 contributions are equivalent in impact pursuant to this
31 subdivision, the agency shall include only those financial �
32 contributions that axe directly related to programs or activities
33 authorized under subdivision(e).
34 (C) The authority for rnaking the finding specified in this
35 paragraph shall expire on June 30, 1993, except that the
36 expiration shall not be deemed to impair contractual obligations
37 to bondholders or private entities incurred prior to May 1, 1991,
38 and made in reliance on the provisions of this paragraph.
39 Agencies that make this finding after June 30, 1993, shall show
40 evidence that the agency entered into the specific contractual
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1 obligation with the specific intention of making a finding under
2 this paragraph in order to provide sufficient revenues to pay off , .
3 theindebtedness.
4 (b) Within 10 days following the making of a finding under
5 either paragraph (1) or (2) of subdivision (a), the agency shall �
6 send the Department of Housing and Community Development a '
7 copy of the finding, including the factual information supporting �
8 the finding and other factual information in the housing element
9 that demonstrates that either (1)the community does not need to
10 increase,improve, or preserve the supply of housing for low-and
11 moderate-income households, including very low income ' ' '
12 households, or (2) a percentage less than 20 percent will be � '
13 sufficient to meet the community's need to improve, increase, '
14 and preserve the supply of housing for low- and '
15 moderate-income households, including very low income
16 households. Within 10 days following the making of a finding
17 under paragraph (3) of subdivision (a), the agency shall send the
18 Department of Housing and Community Development a copy of
19 the finding, including the factual information supporting the
20 finding that the community is making a substantial effort to meet
21 its existing and projected housing needs.Agencies that make tlus
22 finding after June 30, 1993, shall also submit evidence to the
23 department of its contractual obligations with bondholders or -
24 private entities incurred prior to May 1, 1991, and made in ,
25 reliance on this finding.
26 (c) In any litigation to challenge or attack a finding made
27 under paragraph (1), (2), or (3) of subdivision (a), the burden
28 shall be upon the agency to establish that the finding is supported
29 by substantial evidence in light of the entire record before the
30 agency. If an agency is determined by a court to have knowingly
31 misrepresented any material facts regarding the community's
32 share of its regional housing need far low- and moderate-income
33 housing, including very low income households, or the
34 community's production record in meeting its share of the
35 regional housing need pursuant to the report required by
36 subdivision (b) of Section 65400 of the Government Code, the
37 agency shall be liable for all court costs and plaintiff's attomey's
38 fees, and shall be required to allocate not less than 25 percent of
39 the agency's tax increment revenues to its Low and Moderate
40 Income Housing Fund in each yeax thereafter.
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AB 2922 —14— .
1 (d) This
2 section does not relieve any other public entity or entity with the
3 power of eminent domain of any legal obligations for
4 replacement or relocation housing arising out of its activities.
5 (e) In carrying out the purposes of this section,the agency may
6 exercise any or all of its powers for the construction,
7 rehabilitation, or preservation of affordable housing far
8 extremely low, very low, low- and moderate-income persons ar
9 families, including the following:
10 (1) Acquire real property or building sites subject to Section
11 33334.16.
12 (2) Improve real property or building sites with onsite or
13 offsite improvements, but only if both (A) the improvements are
14 part of the new construction or rehabilitation of affordable
15 housing units for low- or moderate-income persons that are
16 directly �benefitted by the improvements, and are a .
17 reasonable and fundamental component of the housing units, and
18 (B) the agency requires that the units remain available at '
19 affordable housing cost to, and occupied by,persons and families
20 of extremely low, very low, low, or moderate income for the
21 same time period and in the same manner as provided in
22 subdivision (c) and paragraph (2) of subdivision (fl of Section �
23 33334.3. - �
24 If the newly constructed or rehabilitated housing units are part
25 of a larger project and the agency improves or pays for onsite or
26 offsite improvements pursuant to the authority in this
27 subdivision, the agency shall pay only a portion of the total cost
28 of the onsite or offsite improvement. The maximum percentage
29 of the total cost of the improvement paid for by the agency shall
30 be determined by dividing the number of housing units that are ,
31 affordable to low- or moderate-income persons by the total
32 number of housing units, if the project is a housing project, or by
33 dividing the cost of the affordable housing units by the total cost
34 of the project, if the project_is not a housing project.
35 (3) Donate real property to private or public persons or
36 entities.
37 (4) Finance insurance premiums pursuant to Section 33136.
38 (5) Construct buildings or structures.
39 (6) Acquire buildings or structures.
40 (7) Rehabilitate buildings or structures.
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-15— AS 2922
1 (8) Provide subsidies to, or for the benefit of, extremely low
2 income households, as defined by Section 50106, very low
3 income households, as defined by Section 50105, lower income
4 households, as defined by Section 50079.5, or persons and
5 families of low or moderate income, as defined by Section
6 50093, to the extent those households cannot obtain housing at
7 affordable costs on the open market. Housing units available on
8 the open market are those units developed without direct
9 government subsidies.
10 (9) Develop plans, pay principal and interest on bonds, loans,
11 advances, or other indebtedness, or pay financing or carrying
12 charges.
13 (10) Maintain the community's supply of mobilehomes.
14 (11) Preserve the availability to lower income households of
15 affordable housing units in housing developments that are
16 assisted or subsidized by public entities and that are threatened
17 with imminent conversion to market rates. ,
18 (� The agency may use these funds to meet,,in whole or in
19 part, the replacement housing provisions in Section 33413.
20 However,nothing in this section shall be construed as limiting in
21 any way the requirements of that section. •
22 (g) (1) The agency may use these funds inside or outside the
23 project area. The agency may only use these funds outside the - '
24 project area upon a resolution of the agency and the legislative
25 body that the use will be of benefit to the project. The
26 determination by the agency and the legislative body shall be
27 final and conclusive as to the issue of benefit to the project area.
28 The Legislature finds and declares that the provision of
29 replacement housing pursuant to Section 33413 is always of
30 benefit to a project. Unless the legislative body finds, before the "
31 redevelopment plan is adopted, that the provision of low- and
32 moderate-income housing outside the project area will be of
33 benefit to the project, the project area shall include property
34 suitable for low- and moderate-income housing.
35 (2) (A} The Contra Costa County Redevelopment Agency
36 may use these funds anywhere within the unincorporated
37 territory, or within the incorporated limits of the City of Walnut
38 Creek on sites contiguous to the Pleasant Hill BART Station
39 Area Redevelopment Project area. The agency may only use
40 these funds outside the project area upon a resolution of the
99
AB 2922 —16—
1 agency and board of supervisors determining that the use will be
2 of benefit to the project area. In addition, the agency may use ,
3 these fiznds within the incorporated limits of the City of Walnut
4 Creek only if the agency and the board of supervisors find all of
5 the following: '
6 (i) Both the County of Contra Costa and the City of Walnut �
7 Creek have adopted and are implementing complete and current '
8 housing elements of their general plans that the Department of
9 Housing and Community Development has deternuned to be in �
10 compliance with the requirements of Article 10.6 (commencing
11 with Section 65580) of Chapter 3 of Division 1 of Title 7 of the � � ,
12 Government Code. , ' �
13 (ii) The development to be funded shall not result in any �
14 residential displacement from the site where the development is �
15 to be built.
16 (iii) The development to be funded shall not be constructed in
17 an area that currently has more than 50 percent of its population
18 comprised of racial minorities or low-income families.
19 (iv) The development to be funded shall allow construction of
20 affordable housing closer to a rapid transit station than could be
21 constructed in the unincorporated territory outside the Pleasant
22 Hill BART Station Area Redevelopment Project.
23 (B) If the agency uses these funds within the incorporated -
24 limits of the City of Walnut Creek, all of the following
25 requirements shall apply:
26 (i) The funds shall be used only for the acquisition of land for,
27 and the design and construction of, the development of housing
28 containing units affordable to, and occupied by, low- and
29 moderate-income persons.
30 (ii) If less than all the units in the development are affordable
31 to, and occupied by, low- or moderate-income persons, any ,
32 agency assistance shall not exceed the amount needed to make
33 the housing affordable to, and occupied by, low- or
34 moderate-income persons. .
35 (iii) The units in the development that are ai�ordable to, and
36 occupied by, low- or moderate-income persons shall remain
37 affordable for a period of at least 55 years.
38 (iv) The agency and the City of Walnut Creek shall determine,
39 if applicable, whether Article XXXIV of the California ,
40 Constitution permits the development.
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-17— AB 2922
1 (h) The Legislature finds and declares that expenditures or
2 obligations incurred by the agency pursuant to this section shall ,
3 constitute an indebtedness of the project.
4 (i) The requirements of this section shall only apply to taxes
5 allocated to a redevelopment agency for which a final '
6 redevelopment plan is adopted on or after January 1, 1977, or for '
7 any area that is added to a project by an amendment to a �
8 redevelopment plan,which amendment is adopted on or after the
9 effective date of this section.An agency may,by resolution, elect �
10 to make all or part of the requirements of this section applicable
11 to any redevelopment project for which a.redevelopment plan ' ' '
12 was adopted prior to January 1, 1977, subject to any indebtedness � '
13 incurred prior to the election. �
14 (j) (1) (A) An action to compel compliance with the '
15 requirement of Section 33334.3 to deposit not less than 20
16 percent of all taxes that are allocated to the agency pursuant to
17 Section 33670 in a Low and Moderate Income Housing Fund
18 shall be commenced within 10 years of the alleged violation. A
19 cause of action for a violation accrues on the last day of the fiscal
20 year in which the funds were required to be deposited in the Low
21 and Moderate Income Housing Fund.
22 (B) An action to compel compliance with the requirement of
23 this section or Section 33334.6 that money deposited in the Low -
24 and Moderate Income Housing Fund be used by the agency for ,
25 purposes of increasing, improving, and preserving the
26 community's supply of low- and moderate-income housing
27 available at affordable housing cost shall be commenced within
28 10 years of the alleged violation.A cause of action for a violation
29 accrues on the date of the actual expenditure of the funds.
30 (C) An agency found to have deposited less into the Low and
31 Moderate Income Housing Fund than mandated by Section '
32 33334.3 or to have spent money from the Low and Moderate
33 Income Housing Fund for purposes other than increasing,
34 improving, and preserving the community's supply of low- and
35 moderate-income housing, as mandated, by this section or
36 Section 33334.6 shall repay the funds with interest in one lump
37 sum pursuant to Section 970.4 or 970.5 of the Government Code
38 or may do either of the following:
39 (i) Petition the court under Section 970.6 for repayment in
40 installments.
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AS 2922 —18—
1 (ii) Repay the portion of the judgment due to the Low and
2 Moderate Income Hbusing Fund in equal installments over a
3 period of five years following the judgment.
4 (2) Repayment shall not be made from the funds required to be
5 set aside or used for low- and moderate-income housing pursuant
6 to this section.
7 (3) Notwithstanding clauses(i) and(ii) of subparagraph(C) of
8 paragraph (1), all costs, including reasonable attorney fees if
9 included in the judgment, are due and shall be paid upon entry of
10 judgment or order.
11 (4) Except as otherwise provided in this subdivision, Chapter
12 2 (commencing with Section 970) of Part 5 of Division 3.6 of
13 Title 1 of the Government Code for the enforcement of a
14 judgment against a local public entity applies to a judgment
15 against a local public entity that violates this section.
16 (5) This subdivision applies to actions filed on and after
17 January l, 2006.
18 (6) The limitations period specified in subparagraphs (A) and '
19 (B)of paragraph (1) does not apply to a cause of action brought
20 pursuant�to Chapter 9(commencing with Section 860)of Title 10
21 of Part 2 of the Code of Civil Procedure.
22 (k)This section shall become inoperative on July 1, 2007, and, �
23 as of.7anuary 1, 2008, is repealed, unless a later enacted statute, � �
24 that becomes operative on or before January 1, 2008, deletes or
25 extends the dates on which it becomes inoperative and is
26 repealed.
27 SEC. 3. Section 33334.2 is added to the Health and Safety
28 Code, to read:
29 33334.2. (a) Commencing with the 2007-08 fiscal year and
30 except as otherwise permitted by subdivisions (b) and (c), 50 ,
31 percent of all taxes that are allocated to the agency pursuant to
32 Section 33670 shall be set aside in the Low and Moderate
33 Income Housing Fund established pursuant to Section 33334.3,
34 and used by the agency. for the purposes of increasing,
35 improving, and preserving the community's supply of low- and
36 moderate-income housing available at affordable housing cost,as
37 defined by Section 50052.5, to persons and families of low ar
38 moderate income, as defined in Section 50093, lower income
39 households, as defined by Section 50079.5, very low income
40 households, as defined in Section 50105, and extremely low
99
-19— AB 2922
1 income households,as defined by Section 50106,that is occupied
2 by these persons and families. , .
3 (b) As to project areas for which a final redevelopment plan
4 was adopted between Jan,uary 1, 1977, and December 31, 2006,
5 or for any area that is added to a project by an amendment to a �
6 redevelopment plan, which amendment is adopted between ;
7 January 1, 1977 and December 31, 2006, commencing with the
8 2007-08 fiscal year, the�agency may deposit into the Low and
9 Moderate Income Housing Fund less than the amount required by �
10 subdivision (a) but no less than 20 percent of all t�es that are
11 allocated to the agency pursuant to Section 33670 if the agency ' ' '
12 finds that the difference between the amount deposited and the � '
13 amount required by subdivision (a) is necessary to make '
14 payments under existing obligations of amounts due or required '
15 to be committed, set aside, or reserved by the agency during that �
16 fiscal year and are used by the agency for that purpose. For
17 purposes of this section, "existing obligations" means the
18 principal of, and interest on, loans, moneys advanced to, or
19 indebtedness (whether funded, refunded, assumed, or otherwise)
20 incurred by the agency to finance or refinance, in whole or in
21 part, any redevelopment project existing on, and created before
22 January 1, 2007, and contained on the statement of existing
23 obligations adopted pursuant to subdivision (d). Obligations �
24 incurred on or after January l, 2007, shall be deemed existing ,
25 obligations for purposes of this section if the net proceeds are
26 used to refinance existing obligations contained on the statement.
27 . (c) In each fiscal year before the 2012 fiscal year, the agency
28 may deposit less than the amount required by subdivision(a) into
29 the Low and Moderate Income Housing Fund but no less than 20
30 percent of all taxes that are allocated to the agency pursuant to
31 Section 33670 if the agency finds that the deposit of less than the '
32 amount required by subdivision (a) is necessary in order to
33 provide for the orderly and timely completion of public and
34 private projects, programs,,or activities approved by the agency
35 before January 1, 2007, that are contained on the statement of
36 existing programs adopted pursuant to subdivision(d).Approval
37 of these projects,programs, and activities means approval by the
38 agency of written documents that demonstrate an intent to
39 implement a specific project, program, or activity and is not
99
AB 2922 —20—
1 limited to final approval of a specific project, program, or
2 activity.
3 (d) Any agency that deposits less than the amount required by
4 subdivision(a)into the Low and Moderate Income Housing Fund �
5 pursuant to subdivision(b) or(c) shall adopt before September 1,
6 2007,by resolution, after a noticed public hearing, a statement of
7 existing obligations or a statement of existing programs, or both.
8 (1) The agency shall prepare and submit the proposed
9 statement to the legislative body and to the Department of
10 Housing and Community Development before giving notice of
11 the public hearing. Notice of the time and place of the public
12 hearing shall be transmitted to the Department of Housing and
13 Community Development at least 15 days before the public
14 hearing and notice of the time and place of the public hearing
15 shall be published in a newspaper of general circulation in the
16 community once a week for at least two successive weeks before
17 the public hearing. The legislative body shall maintain a record
18 of the public hearing. �
19 (2) A copy of the resolution adopted by the agency, together
20 with any amendments to the statement of the agency, shall be
21 transmitted to the Department of Housing and Community
22 Development within 10 days following adoption of the resolution �
23 by the agency. " �
24 (3) A,statement of existing obligations shall describe each
25 existing obligation and, based upon the best available
26 information, as determined by the agency, identify the date the
27 obligation was incurred, list the total amount of the existing ,
28 obligation, the annual payments required to be made by the
29 agency pursuant to the existing obligation, the interest rate, and
30 the date the existing obligation will be discharged in full. ,
31 (4) A statement of existing programs shall list the specific
32 public and private projects, programs, or activities approved
33 before January 1, 2007, that are necessary for the orderly
34 completion of the redevelopment plan as it existed on January 1,
35 2007.A project,program, or activity shall not be included on the
36 statement of existing programs unless written evidence of the
37 existence and approval of the project,program, or activity before
38 January 1, 2007, is attached to the statement of existing
39 programs.
99
—21— AB 2922
1 (e) If, pursuant to subdivision (b) or (c), the agency deposits
2 less than 50 percent�of the taxes allocated to the agency pursuant
3 to Section 33670 in the Low and Moderate Income Housing
4 Fund, the amount equal to the difference between 50 percent of
5 the taxes allocated to the agency pursuant to Section 33670 for
6 each affected project and the amount deposited that year shall
7 constitute a deficit of the project. In each fiscal year in which the
8 agency has a deficit, the agency shall adopt a plan to eliminate
9 that deficit as soon as feasible. If the agency takes longer than
10 five years to eliminate the deficit, simple interest, at the average
11 rate earned by the housing fund, shall be added to each year's
12 deficit until paid in full.
13 (fl The obligations imposed by this section, including deficits,
14 if any, created under this section, are hereby declared to be an
15 indebtedness of the redevelopment project to which they relate,
16 payable from taxes allocated to the agency pursuant to Section ,
17 33670, and shall constitute an indebtedness of the agency with ,
18 respect to the redevelopment project until paid in full.
19 (g) In any litigation to challenge or attack a statement of
20 existing obligations, the decision by the agency after the public
21 hearing to include an existing obligation on the statement of ,
22 existing obligations, or the decision by the agency after the
23 public hearing to include a project, program, or activity on the � '
24 statement of existing programs, the court shall uphold the action
25 of the agency unless the court finds that the agency has abused its
26 discretion. The Legislahtre finds and declares that this standard
27 of review is necessary in order to protect against the possible
28 impairment of existing obligations, programs, and activities if
29 agencies have incurred existing obligations and have adopted
30 projects, programs, and activities with the authority to receive "
31 and pledge up to 80 percent of funds authorized by Section
32 33670.
33 (h) This section does not relieve any other public entity or
34 entity with the power of eminent domain of any legal obligations
35 for replacement or relocation housing arising out of its activities.
36 (i) In carrying out the purposes of this section,the agency may
37 exercise any or all of its powers for the construction,
38 rehabilitation, or preservation of affordable housing for
39 extremely low, very low, low- and moderate-income persons or �
40 families, including the following:
99
AB 2922 —22— �
1 (1) Acquire real property or building sites subject to Section
2 33334.16. ,
3 (2) (A) Improve real property or building sites with onsite or
4 offsite improvements, but only if both of the following
5 requirement are met: '
6 (i) The improvements are part of the new construction or �
7 rehabilitation .of affordable housing units for low- or '
8 moderate-income persons that are directly benefitted by the
9 improvements, and are a reasonable and fundamental component '
10 of the housing units.
11 (ii) The agency requires that the units remain available at � � �
12 affordable housing cost to, and occupied by,persons and families ' �
13 of extremely low, very low, low, or moderate income for the �
i4 same time period and in the same manner as provided in �
15 subdivision (c) and paragraph (2) of subdivision (fl of Section
16 33334.3.
17 (B) If the newly constructed or rehabilitated housing units are
18 part of a larger mixed income or mixed use project, the agency
19 may only use the Low and Moderate Income Housing Fund to
20 pay for onsite or offsite improvements pursuant to the authority
21 in this subdivision, in proportion to the percent of the project that
22 complies with the section, subdivision (� of Section 33334.3,
23 and Section 33418. The maximum percentage of the total cost of -
24 the improvements paid for by the agency shall be determined by
25 dividing the number of housing units that are affordable to low-
26 or moderate-income persons by the total number of housing
27 units, if the project is entirely residential, or by dividing the cost
28 of the affordable housing units by the total cost of the project, if
29 the project is mixed use.
30 (3) Donate real property to private or public persons or
31 entities.
32 (4) Finance insurance premiums pursuant to Section 33136.
33 (5) Construct buildings or structures.
34 (6) Acquire buildings or structures.
35 (7) Rehabilitate buildings or structures.
36 (8) Provide subsidies to, or for the benefit of, extremely low
37 income households, .as defined by Section 50106, very low
38 income households, as defined by Section 50105, lower income
39 households, as defined by Section 50079.5, or persons and
40 families of low or moderate income, as defined by Section
99
—23— AB 2922
1 50093, to the extent those households cannot obtain housing at
2 affordable costs on the open market. Housing units available on �
3 the open market are those units developed without direct
4 government subsidies. ,
5 (9) Develop plans to issue debt, pay principal and interest on
6 bonds, loans, advances, or other indebtedness, or pay financing ;
7 or carrying charges.
8 (10) Maintain the community's supply of mobilehomes. ,
9 (11) Preserve the availability to lower income households of
10 affordable housing units in housing developments that are �
11 assisted or subsidized by public entities and that are threatened � , ' '
12 with imminent conversion to market rates. '
13 (j) The agency may use these funds to meet, in whole or in �
14 part, the replacement housing provisions in Section 33413. This '
15 section does not limit in any way the requirements of that
16 section.
17 (k) (1) The agency may use these funds inside or outside the
18 project area. The agency may only use these funds outside the
19 project area upon a resolution of the agency and the legislative �
20 body that the use will be of benefit to the project. The
21 determination by the agency and the legislative body shall be
22 final and conclusive as to the issue of benefit to the project area.
23 The Legislature finds and declares that the provision of �
24 replacement housing pursuant to Section 33413 is always of
25 benefit to a project. Unless the legislative body finds, before the
26 redevelopment plan is adopted, that the provision of low- and
27 moderate-income housing outside the project area will be of
28 benefit to the project, the project area shall include property
29 suitable for low- and moderate-income housing.
30 (2) (A) The Contra Costa County Redevelopment Agency
31 may use these funds anywhere within the unincorporated
32 territory, or within the incorporated limits of the City of Walriut
33 Creek on sites contiguous to the Pleasant Hill BART Station
34 Area Redevelopment Project area. The agency may only use
35 these funds outside the project area upon a resolution of the
36 agency and boaxd of supervisors determining that the use will be
37 of benefit to the project area. In addition, the agency may use
38 these funds within the incorporated limits of the City of Walnut
39 Creek only if the agency and the board of supervisors find all of
40 the following: .
99
AB 2922 —24—
1 (i) Both the County of Contra Costa and the City of Walnut
2 Creek have adopted and are implementing complete and current
3 housing elements of their general plans that the Department of
4 Housing and Community Development has determined to be in
5 compliance with the requirements of Article 10.6 (commencing
6 with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
7 Govemment Code.
8 (ii) The development to be funded shall not result in any
9 residential displacement from the site where the development is
10 to be built.
11 (iii) The development to be funded shall not be constructed in
12 an area that currently has more than 50 percent of its population
13 comprised of racial minorities or low-income families.
14 (iv) The development to be funded shall allow construction of
15 affordable housing closer to a rapid transit station than could be �
16 constructed in the unincorporated territory outside the Pleasant
17 Hill BART Station Area Redevelopment Project.
18 (B) If the agency uses these funds within the incorporated '
19 limits of the City of Walnut Creek, all of' the following
20 requirements shall apply:
21 (i) The funds shall be used only for the acquisition of land for,
22 and the design and construction of, the development of housing �
, 23 containing units affordable to, and occupied by, low- and � �
24 moderate-income persons.
25 (ii) If less than all the units in the development are affordable
26 to, and occupied by, low- or moderate-income persons, any
27 agency assistance shall not exceed the amount needed to make
28 the housing affordable to, and occupied by, low- or
29 moderate-income persons.
30 (iii) The units in the development that are affordable to, and �
31 occupied by, low- or moderate-income persons shall remain
32 affordable for a period of at least 55 years.
33 (iv) The agency and the City of Walnut Creek shall determine,
34 if applicable, whether Article XXXIV of the California
35 Constitution permits the development.
36 (� The requirements of this section shall only apply to taxes
37 allocated to a redevelopment agency for which a final
38 redevelopment plan is adopted on or after January 1, 1977, or for
39 any area that is added to a project by an amendment to a
40 redevelopment plan, which amendment is adopted between
99
—25— AB 2922
1 January 1, 1977, and December 31, 2006, or for any area that is
2 added to a project by an amendment to a redevelopment plan on
3 or after the effective date of this section. An agency may, by
4 resolution, elect to make all or part of the requirements of this
5 section applicable to any redevelopment project for which a
6 redevelopment plan was adopted prior to January 1, 1977, subject
7 to any indebtedness incuned before the election.
8 (m) (1) (A) An action to compel compliance with the
9 requirement of Section 33334.3 to deposit not less than 50
10 percent of all taxes that are allocated to the agency pursuant to
11 Section 33670 in a Low and Moderate Income Housing Fund
12 shall be commenced within 10 years of the alleged violation. A
13 cause of action for a violation accrues on the last day of the fiscal
14 year in which the funds were required to be deposited in the Low
15 and Moderate Income Housing Fund.
16 (B) An action to compel compliance with the requirement of
17 this section or Section 33334.6 that money deposited in the Low ,
18 and Moderate Income Housing Fund be used by,the agency for
19 purposes of increasing, improving, and preserving the
20 community's supply of low- and moderate-income housing •-
21 available at affordable housing cost shall be commenced within �
22 10 years of the alleged violation.A cause of action for a violation �
23 accrues on the date of the actual expenditure of the funds. - '
24 (C) An agency found to have deposited less into the Low and
25 Moderate Income Housing Fund than mandated by Section
26 33334.3 or to have spent money from the Low and Moderate
27 Income Housing Fund for purposes other than increasing,
28 iinproving, and preserving the community's supply of low- and
29 moderate-income housing, as mandated, by this section or
30 Section 33334.6 shall repay the funds with interest in one lump �
31 sum pursuant to Section 970.4 or 970.5 of the Government Code
32 or may do either of the following:
33 (i) Petition the court under Section 970.6 of the Government
34 Code for repayment in installments.
35 (ii) Repay the portion of the judgment due to the Low and
36 Moderate Income Housing Fund in equal installments over a
37 period of five years following the judgment.
38 (2) Repayment shall not be made from the funds required to be
39 set aside or used for low-and moderate-income housing pursuant
40 to this section.
99
AB 2922 —26—
1 (3) Notwithstanding clauses(i) and(ii) of subparagraph(C) of
2 paragraph (1), all costs, including reasonable attorney fees if , ,
3 included in the judgment, are due and shall be paid upon entry of
4 judgment or order.
5 (4) Except as otherwise provided in this subdivision, Chapter '
6 2 (commencing with Section 970) of Part 5 of Division 3.6 of �
7 Title 1 of the Government Code for the enforcement of a '
8 judgment against a local public entity applies to a judgment
9 against a local public entity that violates this section. - '
10 (5) This subdivision applies to actions filed on and after ,
11 January l, 2006. ' � �
12 (6) The limitations period specified in subparagraphs (A) and ' �
13 (B) of paragraph (1) does not apply to a cause of action brought �
14 pursuant to Chapter 9 (commencing with Section 860)of Title 10 �
15 of Part 2 of the Code of Civil Procedure.
16 (n) This section shall become operative on July 1, 2007.
17 SEC. 4. Section 33334.3 of the Health and Safety Code is
18 amended to read:
19 33334.3. (a) The funds that are required by Section 33334.2
20 or 33334.6 to be used for the purposes of increasing—��,
21 improving, and preserving the community's supply of low- and
22 moderate-income housing shall be held in a separate Low and
23 Moderate Income Housing Fund until used. �
24 (b) Any interest earned by the Low and Moderate Income
25 Housing Fund—��, any repayments or other income to the
26 agency for loans, advances, or grants, of any kind from the Low
27 and Moderate Income Housing Fund, and all debt proceeds
28 secured by the fund shall accrue to and be deposited in, the fund
29 and may only be used in the manner prescribed for the Low and
30 Moderate Income Housing Fund.
31 (c) The moneys in the Low and Moderate Income Housing •--
32 Fund shall be used to increase, improve, and preserve the supply
33 of low- and moderate-income housing within the territorial
34 jurisdiction of the agency. .
35 (d) (1) It is the intent of the Legislature that the Low and
36 Moderate Income Housing Fund be used to the maximum extent
37 possible to defray the costs of production, improvement, and
38 preservation of low- and moderate-income housing ---a `�.
39 The amount of money budgeted or spent in any fiscal year for
40 planning and general administrative activities associated with the
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—27— AB 2922 .-
1 development, improvement, and preservation of that housing
2 shall not be disproportionate to the amount actually budgeted or �
3 spent fi-om the fund during that fiscal year for the costs of
4 production, improvement, or preservation of that housing. The ,
5 agency shall determine annually that the planning and
6 administrative expenses�re meet the following criteria: ;
7 (A) Are necessary for the production, improvement, or
8 preservation of low-and moderate-income housing that complies ,
9 with the affordability, occupancy, durational, and deed
10 restriction required by this part. �
11 (B) Are directly related to the programs and activities � , ' '
12 authorized under subdivision (i) of Section 33334.2. '
13 (C) Are not disproportionate to the amount actually spent '
14 during that fiscal year for the costs of production, improvement, '
15 or preservation of that housing.
16 (2) The agency's determinations shall be in writing, and
17 supported by substantial evidence on the record. If the agency's
18 determinations are challenged, the burden of proof shall be on
19 the agency to prove that the agency has com�lied with the
20 requirements of this section.
21 (e) (1) Planning and general administrative costs� that ...
22 may be paid with moneys from the Low and Moderate Income
23 Housing Fund are those expenses incurred by the agency-�kiek �
24 that are directly related to the programs and activities authorized � �
25 under subdivision (e) of Section 33334.2 and are limited to the
26 following:
27 (A) Costs incurred for salaries, wages, and related costs of the
28 agency's staff or for services provided through interagency
29 agreements, and agreements with contractors, '
30 '"a:--�` '� ��,�`�' `''��'`' In order to establish the direct
31 relation between the salaries, wages, and related costs of agency '
32 staff, the services provided through interagency agreements or
33 agreements with contractors and affordable housing assisted
34 with the fund, the agency shall maintain records that document
35 the salaries, wages, related costs, time spent, and substance of
36 the activity on each aff'ordable housing development by each
37 employee, agency, or contractor compensated by the fund.
38 (B) Costs incurred by a nonprofit corporation�k that are
39 not directly attributable to a specific project.
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AB 2922 —28—
1 (2) Legal, architectural, and engineering costs and other
2 salaries, wages, and costs directly related to the planning and
3 execution of a specific project� that are authorized under
4 Section 33334.2 and�that are incurred by
5 a� housing�exse� developer are not planning and
6 administrative costs for the purposes of this section, but are
7 instead project costs.
8 (fl (1) The requirements of this subdivision apply to all new
9 or substantially rehabilitated housing units developed or
10 otherwise assisted, with moneys from the Low and Moderate
11 Income Housing Fund, pursuant to an agreement approved by an �
12 agency on or after January l, 1988. Except to the extent a longer
13 period of time may be required by other provisions of law, the
14 agency shall require that housing units subject to this subdivision
15 shall remain available at affordable housing cost to,and occupied
16 by,persons and families of low or moderate income and very low
17 income and extremely low income households for the longest ,
18 feasible time,but for not less than the following periods of time:
19 (A) Fifty-five years for rental units. However, the agency may
20 replace �ental units with equally affordable and comparable
21 rental units in another location within the community if(A) the
22 replacement units are available for occupancy prior to the '
23 displacement of any persons and families of low or moderate " �
24 income residing in the units to be replaced and (B) the
25 comparable replacement units are not developed with moneys
26 from the Low and Moderate Income Housing Fund.
27 (B) Forty-five years for owner-occupied units. However, the
28 agency may permit sales of owner-occupied units prior to the
29 expiration of the 45-year period for a price in excess of that
30 otherwise permitted under this subdivision pursuant to an �
31 adopted program which protects the agency's investment of
32 moneys from the Low and Moderate Income Housing Fund,
33 including, but not limited to, an equity sharing program which ;�
34 establishes a schedule of equity sharing that permits retention by
35 the seller of a portion of those excess proceeds based on the
36 length of occupancy. The remainder of the excess proceeds of the
37 sale shall be allocated to the agency and deposited in the Low
38 and Moderate Income Housing Fund. Only the units originally
39 assisted by the agency shall be counted towards the agency's
40 obligations under Section 33413.
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-29— AB 2922
1 (C) If land on which those dwelling units are located is deleted
2 from the project area, the agency shall continue to require that � � .
3 those units remain affordable as specified in this subdivision.
4 (2) The agency shall require the recording in the office of the
5 county recorder of covenants or restrictions implementing this �
6 subdivision for each parcel, lot, or unit of real property subject to ;
7 this subdivision. Notwithstanding any other provision of law, the
8 covenants or restrictions shall run with the land and shall be
9 enforceable, against the original owner and-sr�eeesse�s each �
10 successor in interest, by the agency-a�, the community, or any
11 interested part}; including, but not limited to, any person or ' ' '
12 family of low or moderateincome that is eligible to reside at the � '
13 parcel, lot, or unit of real property, or that is displaced or '
14 threatened with displacement from the parcel, lot, or unit of real '
15 property that is subject to the covenants or restrictions. The
16 agency shall obtain and maintain a copy of the recorded
17 covenants or restrictions for at least the life of the covenants or
18 restrictions.
19 (3) Simultaneous to the recordation of the covenants or
20 restrictions, the agency shall also record a request for
21 not�cation of any resale of the real property for the life of the
22 covenants or restrictions and shall obtain and maintain a copy of .
23 the recorded request for not�cation for at least the life of the �
24 covenants or restrictions. ; •-
25 (g) "Housing," as used in this section, includes residential
26 hotels, as defined in subdivision (k) of Section 37912. The
27 definitions of "lower income households," "very low income
28 households," and "extremely low income households" in
29 Sections 50079.5, 50105, and 50106 shall apply to this section.
30 "Longest feasible time," as used in this section, includes, but is
31 not limited to,unlimited duration. �
32 (h) "Increasing, improving, and preserving the community's
33 supply of low- and moderate-income housing," as used in this
34 section and in 5ection 33334.2, includes the preservation of
35 rental housing units assisted by federal, state, or local
36 government on the condition that units remain affordable to, and
37 occupied by, low- and moderate-income households, including
38 extremely low and very low income households, for the longest
39 feasible time, but not less than 55 years, beyond the date the
40 subsidies and use restrictions could be terminated and the
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AB 2922 —30—
1 assisted housing units converted to market rate rentals. In
2 preserving these ur�its the agency shall require that the units
3 remain affordable to, and occupied by, persons and families of
4 low- and moderate-income and extremely low and very low
5 income households for the longest feasible time but not less than
6 55 years. However, the agency may replace rental units with
7 equally affordable and comparable rental units in another
8 location within the community if the
9 following conditions are met:
10 (1) The replacement units in another location are available for
11 occupancy prior to the displacement of any persons and families
12 of low or moderate income residing in the units to be replaced
13 ��r�-{�j-��re•
14 (2) The persons and families of low or moderate income that .�
15 are displaced are given a right of�first refusal to occupy the
16 replacement units.
17 (3) The comparable replacement units are not developed with ,
18 moneys from the Low and Moderate Income Housing Fund. �
19
20 . .
21 � , ' ,
22 , ' '
23 , ' - �
24 ,
25 .
26 ' ,
27 . .
28 �
29 (i) Funds from the Low and Moderate Income Housing Fund
30 shall not be used to the extent that other reasonable means of �
31 private or commercial financing of the new or substantially
32 rehabilitated units at the saxne level of affordability and quantity
33 axe reasonably available to the agency or to the owner of the
34 units. Prior to the expenditure of funds from the Low and
35 Moderate Income Housing Fund for new or substantially
36 rehabilitated housing units, where those funds will exceed 50 :�
37 percent of the cost of producing the units, the agency shall find,
38 based on substantial evidence, that the use of the funds is
39 necessary because the agency or owner of the units has made a
40 good faith attempt but been unable to obtain commercial or
99
—31— AB 2922
1 private means of fi�ancing the units at the same level of
2 affordability and quantity.
3 SEC. 5. Section 33334.4 of the Health and Safety Code is . .
4 amended to read:
5 33334.4. (a) Except as specified in subdivision (d), each
6 agency shall expend over each 10-year period of the
7 implementation plan, as specified in clause (iii) of subparagraph
8 (A) of paragraph (2) of subdivision (a) of Section 33490, the
9 moneys in the Low and Moderate Income Housing Fund to assist
10
ll
12
13
14 , , ,
15
16 .
17 ' , ,
18
19 ' ,
20
21 '
22 �
23 , , _ ,
24
25 ' , ...._.
26
27 in
28 making available at least a number of housing units that are
29 affordable to, and occupied by, extremely low and very low
30 income persons that is equal to the number of units that are '
31 affordable to low- and moderate-income persons. This section
32 does not prevent an agency from expending more of the moneys
33 in the Low and Moderate Income Housing Fund to assist units
34 that are affordable to extremely low and very low income
35 persons than is expended to assist units that are affordable to
36 low-and moderate-income persons.
37 (b) Each agency shall expend over the duration of each
38 redevelopment implementation plan, the moneys in the Low and
39 Moderate Income Housing Fund to assist housing that is
40 available to all persons regardless of age in at least the same
99
AB 2922 —32—
1 proportion as the number of low-income households with a
2 member under age 65 years bears to the total number of , ,
3 low-income households of the community as reported in the most
4 recent census of the United States Census Bureau.
5 (c) An agency that has deposited in the Low and Moderate '
6 Income Housing Fund over the first five years of the period of an �
7 implementation plan an aggregate that is less than two million '
8 dollars ($2,000,000) shall have an extra five years to meet the
9 requirements of this section. �
10 " "
�
11 � � . �
12 ' ,
13 , �
l� ..L LL.. .. .�C4L.. �.«.�.. .� ..4L..�. .. �..4.�«.... ... r...�� 4L.� ..4..4.. ,.e. �
15 . �
16 , ,
17 . . . .
18 ,
19 . . . .
20 ,
21
22 ,
23 e�ges: -
24 SEC. 6. Section 33334.6 of the Health and Safety Code is
25 amended to read: `
26 33334.6. (a) The Legislature finds and declares that the
27 provision of housing is itself a fundamental purpose of the
28 Community Redevelopment Law and that a generally inadequate
29 statewide supply of decent, safe, and sanitary housing affardable
30 to persons and faxnilies of low or moderate income, as defined by
31 Section 50093, threatens the accomplishment of the primary ,
32 purposes of the Community Redevelopment Law, including job
33 creation, attracting new private investments, and creating
34 physical, economic, social,. and environmental conditions to
35 remove and prevent the recurrence of blight. The Legislature
36 further finds and declares that the provision and improvement of �-
37 affordable housing, as provided by Section 33334.2, outside of �
38 redevelopment project areas can be of direct benefit to those
39 projects in assisting the accomplishment of project objectives
40 whether or not those redevelopment projects provide for housing
99
—33— AB 2922
1 within the project area. The Legislature finds and determines that
2 the provision of affordable housing by redevelopment agencies �
3 and the use of taxes allocated to the agency pursuant to • �
4 subdivision (b) of Section 33670 is of statewide benefit and of ,
5 particular benefit and assistance to all local governmental
6 agencies in the areas where the housing is provided. ;
7 (b) This section is applicable to all project areas, or portions of
8 project areas, which are not subject to Section 33334.2, except ,
9 that a project area, or portion of a project area, for which a
10 resolution was adopted pursuant to subdivision (i) of Section �
11 33334.2 is subject to this section. Project areas subject to this � , ' '
12 section which are merged are subject to the requirements of both '
13 this section and Section 33487.The deposit of taxes into the Low '
14 and Moderate Income Housing Fund in compliance with either '
15 this section or Section 33487 shall satisfy the requirements of
16 both sections in the year those taxes are deposited.
17 (c) Except as otherwise pernutted by subdivisions (d) and (e),
18 not less than 20 percent of the taxes allocated to the agency
19 pursuant to Section 33670 from project areas specified in
20 subdivision (b) for the 1985-86 fiscal year and each succeeding
21 fiscal year shall be deposited into the Low and Moderate Income
22 Housing Fund established pursuant to Section 33334.3 and used
23 for the purposes set forth in Section 33334.2, unless the agency, �
24 by resolution, makes one of the findings described in paragraphs
25 (1)to(3),inclusive,of subdivision(a) of Section 33334.2,except �---
26 that the authority to make the finding specified in paragraph (3) '
27 of subdivision (a) of that section shall expire as specified in that
28 paragraph. Subdivisions (b) and (c) of Section 33334.2 apply if
29 an agency makes any of those findings.
30 (d) In any fiscal year, the agency may deposit less than the
31 amount required by subdivision (c) into the Low and Moderate
32 Incoine Housing Fund if the agency finds that the difference
33 between the amount deposited and the amount required by
34 subdivision (c) is necessar.y to make payments under existing
35 obligations of amounts due or required to be committed, set
36 aside, or reserved by the agency during that fiscal year and which
37 are used by the agency for that purpose. For purposes of this
38 section, "existing obligations" means the principal of, and
39 interest on, loans, moneys advanced to, or indebtedness (whether
40 funded, refunded, assumed, or otherwise) incurred by the agency
99
AB 2922 —34—
1 to finance or refinancex in whole or in part, any redevelopment
2 project existing on, and created prior to January 1, 1986, and
3 contained on the statement of existing obligations adopted
4 pursuant to subdivision (�. Obligations incurred on or after
5 January l, 1986, shall be deemed existing obligations for
6 purposes of this section if the net proceeds are used to refinance
7 existing obligations contained on the statement.
8 (e) In each fiscal year prior to July 1, 1996, the agency may
9 deposit less than the amount required by subdivisions (c) and(d)
10 into the Low and Moderate Income Housing Fund if the agency
11 finds that the deposit of less than the amount required by those
12 subdivisions is necessary in order to provide for the orderly and
13 timely completion of public and private projects, programs, ar
14 activities approved by the agency prior to January 1, 1986,which „_,,.
15 are contained on the statement of existing programs adopted �-
16 pursuant to subdivision(fl.Approval of these projects,programs,
17 and activities means approval by the agency of written
18 documents which demonstrate an intent to implement a specific '
19 project, program, or activity and is not limited to final approval
20 of a specific project,program, or activity.
21 (fl Any agency which deposits less than the amount required
22 by subdivision (c) into the Low and Moderate Income Housing �
23 Fund pursuant to subdivision (d) or (e) shall adopt prior to � ,
24 September 1, 1986, by resolution, after a noticed public hearing,
25 a statement of existing obligations or a statement of existing
26 programs, or both.
27 (1) The agency shall prepare and submit the proposed
28 statement to the legislative body and to the Department of
29 Housing and Community Development prior to giving notice of
30 the public hearing. Notice of the time and place of the public ,
31 heaxing shall be transmitted to the Department of Housing and
32 Community Development at least 15 days prior to the public �
33 hearing and notice of the time and place of the public hearing
34 shall be published in a ne�vspaper of general circulation in the
35 community once a week for at least two successive weeks prior
36 to the public hearing.The legislative body shall maintain a record ,_
37 of the public hearing.
38 (2) A copy of the resolution adopted by the agency, together
39 with any amendments to the statement of the agency, shall be
40 transmitted to the Department of Housing and Community
99
—35— AB 2922
1 Development within 10 days following adoption of the resolution
2 by the agency.
3 (3) A statement of existing obligations shall describe each
4 existing obligation and, based upon the best available '���
5 information, as determined by the agency, list the total amount of
6 the existing obligation, the annual payments required to be made
7 by the agency pursuant to the existing obligation,and the date the
8 existing obligation will be discharged in fulL .
9 (4) A statement of existing programs shall list the specific
10 public and private projects,programs,or activities approved prior �
11 to January 1, 1986, which are necessary for the orderly
12 completion of the redevelopment plan as it existed on January 1,
13 1986. No project, program, or activity shall be included on the
14 statement of existing programs unless written evidence of the
15 existence and approval of the project, program, or activity prior
16 to January 1, 1986, is attached to the statement of existing
17 programs. ,
18 (g) If, pursuant to subdivision (d) or (e), the agency deposits
19 less than 20 percent of the taxes allocated to the agency pursuant
20 to Section 33670 in the 1985-86 fiscal year or any subsequent
21 fiscal year in the Low and Moderate Income Housing Fund, the ,
22 amount equal to the difference between 20 percent of the taxes
23 allocated to the agency pursuant to Section 33670 for each � '
24 affected project and the amount deposited that year shall
25 constitute a deficit of the project. The agency shall adopt a plan
26 to eliminate the deficit in subsequent years as determined by the "``"
27 agency.
28 (h) The obligations imposed by this section,including deficits,
29 if any, created under this section, are hereby declared to be an
30 indebtedness of the redevelopment project to which they relate, "
31 payable from taxes allocated to the agency pursuant to Section
32 33670, and shall constitute an indebtedness of the agency with
33 respect to the redevelopment project until paid in fu1L
34 (i) In any litigation to challenge or attack a statement of
35 existing obligations, the decision by the,agency after the public
36 hearing to include an existing obligation on the statement of
37 existing obligations, or the decision by the agency after the
38 public hearing to include a project, program, or activity on the
39 statement of existing programs, the court shall uphold the action
40 of the agency unless the court finds that the agency has abused its
99
AB 2922 —36—
1 discretion. The Legislature finds and declares that this standard
2 of review is necessary in order to protect against the possible ,
3 impairment of existing obligations, programs, and activities '
4 because agencies with project areas adopted prior to January l,
5 1977, have incurred existing obligations and have adopted �
6 projects, programs, and activities with the authority to receive ,
7 and pledge the entire allocation of funds authorized by Section �
8 33670.
9 (j) This section shall become inoperative on July 1, 2007, and, �
10 as of.�anuary 1, 2008, is repealed, unless a dater enacted statute,
11 that becomes operative on or before.Ianuary 1, 2008, deletes or � ' , ,
12 extends the dates on which it becomes inoperative and is � ,
13 repealed. ,
14 SEC. 7. Section 33334.6 is added to the Health and Safety ,
15 Code, to read:
16 33334.6. (a) The Legislature finds and declares that the ;��
17 provision of housing is itself a fundamental purpose of the
18 Community Redevelopment Law and that a generally inadequate
19 statewide supply of decent, safe, and sanitary housing affordable
20 to persons and families of low or moderate income, as defined by
21 Section 50093, threatens the accomplishment of the grimary
' 22 purposes of the Community Redevelopment Law, including job
23 creation, attracting new private investments, and creating �
24 physical, economic, social, and environmental conditions to
25 remove and prevent the recurrence of blight. The Legislature
26 further finds and declares that the provision and improvement of
27 affordable housing, as provided by Section 33334.2, outside of
28 redevelopment project areas can be of direct benefit to those
29 projects in assisting the accomplishment of project objectives
30 whether or not those redevelopment projects provide for housing
31 within the project area. The Legislature finds and determines that ,
32 the provision of affordable housing by redevelopment agencies
33 and the use of taxes allocated to the agency pursuant to
34 subdivision (b) of Section 33670 is of statewide benefit and of
35 particular benefit and assistance to all local governmental
36 agencies in the areas where the housing is provided.
37 (b) This section is applicable to all project areas,or portions of
38 project areas, that are not subject to Section 33334.2, except that .'�
39 a project area, or portion of a project area, for which a resolution
40 was adopted pursuant to subdivision (� of Section 33334.2 is
99
—37— AB 2922
1 subject to this section. Project areas subject to this section that
2 are merged are subject to the requirements of both this section �
3 and Section 33487. The deposit of taxes into the Low and
4 Moderate Income Housing Fund in compliance with either this
5 section or Section 33487 shall satisfy the requirements of both ;' �:
6 sections in the year those taxes are deposited. ;
7 (c) Commencing with the 2007-08 fiscal year and except as
8 otherwise permitted by subdivisions(d)and(e), 50 percent of the ,
9 taxes allocated to the agency pursuant to Section 33670 from
10 project axeas specified in subdivision (b) shall be deposited into �
11 the Low and Moderate Income Housing Fund established � ' '
12 pursuant to Section 33334.3 and used for the purposes set forth in '
13 Section 33334.2. '
14 (d) In any fiscal year, the agency may deposit less than the '
15 amount required by subdivision (c) into the Low and Moderate
16 Income Housing Fund but no less than 20 percent of all taxes that
17 are allocated to the agency pursuant to Section 33670 if the
18 agency finds that the difference between the amount deposited
19 and the amount required by subdivision (c) is necessary to make
20 payments under existing obligations of amounts due or required
21 to be committed, set aside, or reserved by the agency during that
22 fiscal year and are used by the agency for that purpose. For
23 purposes of this section, "existing obligations" means the "
24 principal of, and interest on, loans, moneys advanced to, or .
25 indebtedness (whether funded, refunded, assumed,or otherwise)
26 incurred by the agency to finance or refinance, in whole or in
27 part, any redevelopment project existing on, and created before ;'
28 January 1, 1986, and contained on the statement of existing
29 obligations adopted pursuant to subdivision (fl, as to the original
30 20 percent set-aside. As to the original 20 percent set-aside,
31 obligations incurred on or after January 1, 1986, shall be deemed
32 existing obligations for purposes of this section if the net
33 proceeds are used to refinance existing obligations contained on
34 the statement.As to the augmented set-aside, for purposes of this
35 section, "existing obligations" means the principal of, and
36 interest on, loans,moneys advanced to, or indebtedness (whether
37 funded, refunded, assumed, or otherwise) incurred by the agency
38 to finance or refinance, in whole or in part, any redevelopment
39 project existing on, and created before January 1, 2007, and
99
AB 2922 —38— .
1 contained on the statement of existing obligations adopted
2 pursuant to subdivision(fl.
3 (e) In each fiscal year before July 1,2012, as to the augmented
4 set-aside only, the agency may deposit less than the amount
5 required by subdivision (c) into the Low and Moderate Income
6 Housing Fund but no less than 20 percent of all taxes that are
7 allocated to the agency pursuant to Section 33670 if the agency .
8 finds that the deposit of less than the amount required by
9 subdivision (c) is necessary in order to provide for the orderly
10 and timely completion of public and private projects, programs,
11 or activities approved by the agency before January 1, 2007, that
12 are contained on the statement of existing programs adopted
13 pursuant to subdivision(fl.Approval of these projects,programs,
14 and activities means approval by the agency of written
15 documents that demonstrate an intent to implement a specific
16 project, program, or activity and is not limited to final approval ••-
17 of a specific project,program, or activity. �
18 (fl Any agency that deposits less than the amount required by �
19 subdivision(c)into the Low and Moderate Income Housing Fund
20 pursuant to subdivision(d)or(e) shall adopt before September 1,
21 2007,by resolution, after a noticed public hearing,a statement of
22 existing obligations or a statement of existing programs, or both. �
23 (1) The agency shall prepare and submit the proposed � ,
24 statement to the legislative body and to the Department of
25 Housing and Community Development before giving notice of
26 the public hearing. Notice of the time and place of the public
27 hearing shall be transmitted to the Department of Housing and
28 Community Development at least 15 days before the public
29 hearing and notice of the time and place of the public hearing
30 shall be published in a newspaper of general circulation in the
31 community once a week for at least two successive weeks before �
32 the public hearing. The legislative body shall maintain a record
33 of the public hearing.
34 (2) A copy of the resolution adopted by the agency, together
35 with any amendments to the statement of the agency, shall be
36 transmitted to the Department of Housing and Community
37 Development within 10 days following adoption of the resolution
38 by the agency. ••��•�
39 (3) A sta.tement of existing obligations shall describe each `
40 existing obligation and, based upon the best available
99
—39— AB 2922
1 information, as determined by the agency, identify the date the
2 obligation was incurred, list the total amount of the existing �
3 obligation, the interest rate, the annual payments required to be
4 made by the agency pursuant to the existing obligation, and the ,
5 date the existing obligation will be discharged in full. ,,.._.,
6 (4) A statement of existing programs shall list the specific � ,
7 public and private projects, programs, or activities approved
8 before January 1, 2007, that are necessary for the orderly
9 completion of the redevelopment plan as it existed on January 1,
10 2007.A project,program, or activity shall not be included on the �
11 statement of existing programs unless written evidence of the �. , ' '
12 existence and approval of the project,program, or activity before '
13 January 1, 2007, is attached to the statement of existing �
14 programs. '
15 (g) If, pursuant to subdivision (d) or (e), the agency deposits
16 less than 50 percent of the taxes allocated to the agency pursuant
17 to Section 33670 in the Low and Moderate Income Housing
18 Fund, the amount equal to the difference between 50 percent of
19 the taxes allocated to the agency pursuant to Section 33670 for
20 each affected project and the amount deposited that year shall
21 constitute a deficit of the project. In each fiscal year in which the
22 agency has a deficit, the agency shall adopt a plan to eliminate
23 the deficit in subsequent years as soon as feasible. If the agency �
24 takes longer than five years to eliminate this deficit simple
25 interest, at the average rate earned by the housing fund, shall be
26 added to each year's deficit,until paid in fu1L
27 (h) The obligations imposed by this section,including deficits, � ,..�.
28 if any, created under this section, are hereby declared to be an •-
29 indebtedness of the redevelopment project to which they relate,
30 payable from taxes allocated to the agency pursuant to Section
31 33670, and shall constitute an indebtedness of the agency with '
32 respect to the redevelopment project until paid in fu1L
33 � (i) In any litigation to challenge or attack a statement of
34 existing obligations, the decision by the agency after the public
35 hearing to include an existing obligation on the statement of
36 existing obligations, or the decision by the agency after the
37 public hearing to include a project, program, or activity on the
38 statement of existing programs, the court shall uphold the action
39 of the agency unless the court finds that the agency has abused its
40 discretion. The Legislature finds and declares that this standard
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AB 2922 —40— �
1 of review is necessary in order to protect against the possible
2 impairment of existing obligations, programs, and activities
3 because agencies with project areas adopted before January 1,
4 2007, have incurred existing obligations and have adopted
5 projects, programs, and activities with the authority to receive
6 and pledge the entire allocation of funds authorized by Section
7 33670.
8 (j) This section shall become operative on July 1, 2007.
9 SEC. 8. Section 33334.14 of the Health and Safety Code is
10 amended to read:
11 33334.14. (a) The covenants or restrictions imposed by the
12 agency pursuant to subdivision (e) of Section 33334.3 may be
13 subordinated under any of the following alternatives:
14 (1) To a lien, encumbrance, or regulatory agreement under a
15 federal or state program when a federal or state agency is
16 providing financing, refinancing, or other assistance to the ;ry
17 housing units or parcels; if the federal or state agency refuses to , �
18 consent to the seniority of the agency's covenant or restriction on
19 the basis that it is required to maintain its lien, encumbrance, ar
20 regulator�agreement or restrictions due to statutory or regulatory
21 requirements, adopted or approved policies, or other guidelines
22 pertaining to the financing,refinancing, or other assistance of the '
23 housing units or parcels. ' �
24 (2) To a lien, encumbrance, or regulatory agreement of a
25 lender other than the agency or from a bond issuance providing
26 financing, refinancing, or other assistance of owner-occupied
27 units or parcels where the agency makes a finding that an
28 economically feasible alternative method of financing,
29 refinancing, or assisting the units or parcels on substantially
30 comparable terms and conditions, but without subordination, is �
31 not reasonably available.
32 (3) To an existing lien, encumbrance, or regulatory agreement
33 of a lender other than the agency or from a bond issuance
34 providing financing, refinancing, or other assistance of rental
35 units;where the agency's funds are utilized for rehabilitation of
36 the rental units.
37 (4) To a lien, encumbrance, or regulatory agreement of a
38 lender other than the agency or from a bond issuance providing
39 financing, refinancing, or other assistance of rental units or ��.�.�
40 parcels where the agency makes a finding that an economically
99
—41— AB 2922
1 feasible alternative method of financing,refinancing, or assisting
2 the units or parcels on substantially comparable terms and
3 conditions, but without subordination, is not reasonably
4 available, and where the agency obtains written commitments
5 reasonably designed to protect the agency's investment in the
6 event of default, including, but not limited to, any of the ;....,
7 following: •--
8 (A) A right of the agency to cure a default on the loan.
9 (B) A right of the agency to negotiate with the lender after
10 notice of default from the lender.
11 (C) An agreement that if prior to foreclosure of the loan, the
12 agency takes title to the property and cures tl�e default on the
13 loan, the lender will not exercise any right it may have to
14 accelerate the loan by reason of the transfer of title to the agency.
15 (D) A right of the agency to purchase property from the owner
16 at any time after a default on the loan.
17 (b) Notwithstanding the definition of "construction and ,
18 rehabilitation" in subdivision (a) of Section 33487, an agency
19 that has merged redevelopment projects pursuant to Article 16
20 (commencing with Section 33485) of Chapter 4, and that is
21 required to deposit taxes into the Low and Moderate Income ,
22 Housing Fund pursuant to subdivision(a) of Section 33487, may
23 use any of the funds for the purposes and in the manner permitted � '
24 by Sections 33334.2 and 33334.3.
25 s�-In that event, the time periods specified in subdivision (� of
26 Section 33334.3 shall both be extended to no less than SS years
27 for rental and 45 years for owner-occupied dwelling units. This
28 subdivision does not allow an agency with merged project areas ;;_.,
29 pursuant to Article 16 (commencing with Section 33485) to •��
30 utilize the provisions of paragraph (1), (2), or (3) of subdivision '
31 (a) of Section 33334.2 so as to avoid or reduce its obligations to
32 deposit taxes from merged project areas into the Low and
33 Moderate Income Housing Fund.
34 SEC. 9. Section 33411.2 of the Health and Safety Code is
35 amended to xead:
36 33411.2. As used in this article:
37 (a) "Affordable housing cost" has the same meaning as
38 specified in Section 50052.5. .
39 (b) "Extremely low income households" has the same
40 meaning as spec�ed in Section 50106.
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AB 2922 —42— �
1 (c) "Persons and families of low or moderate income" has the
2 same meaning as specified in Section 50093.
3 � ,
4 (d) "Replacement dwelling unit" means a dwelling unit
5 developed or construct'ed pursuant to Section 33413 in �
6 replacement of a dwelling unit destroyed or removed from the ,
7 low- and moderate-income housing market�--a�--agei� and �
8 which is decent, safe, and sanitary and contains at least the same
9 number of bedrooms and other living areas as the dwelling unit �
10 destroyed or removed
11 � , � � ,
12 (e) "Very low income households" has the same meaning as � ,
13 specified in Section 50105. ,
14 SEC. 10. Section 33411.3 of the Health and Safety Code is ,
15 amended to read:
16 33411.3. Whenever all or any portion of a redevelopment
17 project is developed with low-or moderate-income housing units
18 and whenever any low- or moderate-income housing units are :`:�:
19 developed with any agency assistance or pursuant to Section
20 33413, the agency shall require by contract or other appropriate '
21 means that the housing be made available for rent or purchase to
22 the persons and families of low or moderate income displaced by
23 the redevelopment project. Those persons and families shall be �
24 given priority in renting or buying that housing. However, failure
25 to give that priority shall not affect the validity of title to real "
26 property. The agency shall keep a list of persons and families of
27 low and moderate income displaced by the redevelopment
28 project who are to be given priority, and�ap shall establish
29 reasonable rules for determining the order or priority on the list.
30 SEC. 11. Section 33413 of the Health and Safety Code is
31 amended to read:
32 33413. (a) Whenever dwelling units housing persons and
33 families of low or moderate income are destroyed or removed
34 from the low- and moderate-income housing market by the
35 agency or any other public entity as part of a redevelopment
36 project or as part of a redevelopment project that is subject to a
37 written agreement with the agency or where financial assistance
38 has been provided by the agency, the agency shall, within four
39 years of the destruction or removal, rehabilitate, develop, or
40 construct; or cause to be rehabilitated, developed, or constructed, �;'";�
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—43— AB 2922
1 for rental or sale to persons and families of low or moderate
2 income, an equal number of replacement dwelling units that have ,
3 an equal or greater number of bedrooms as those destroyed or
4 removed units at affordable housing costs within the territarial ,
5 jurisdiction of the agency. When dwelling units are destroyed or
6 removed after September l, 1989, 75 percent of the replacement ;
7 dwelling units shall replace dwelling units available at affordable ••-
8 housing cost in the same or a lower income level of very low �
9 income households, lower income households, and persons and
10 families of low and moderate income, as the persons displaced .
11 from those destroyed or removed units. When dwelling units are ' ' '
12 destroyed or removed on or after January 1, 2002, 100 percent of � '
13 the replacement dwelling units shall be available at affordable '
14 housing cost to persons in the same or a lower income� '
15 (�e�; level (extremely low, very low, low, or moderate), as the
16 persons displaced from those destroyed or removed units. If the
17 income level of the displaced household is not ver�ed by or
18 otherwise known by the agency, the household shall be presumed
19 to be extremely low income.
20 (b) (1) Prior to the time limit on the effectiveness of the
21 redevelopment plan established pursuant to Sections 33333.2,
22 33333.6, and 33333.10 at least 30 percent of all new and
23 substantially rehabilitated dwelling units developed by an agency �
24 shall be available at affordable housing cost to, and occupied by, ,
25 persons and families of low or moderate income.Not less than 50
26 percent of the dwelling units required to be available at
27 affardable housing cost to, and occupied by,persons and families
28 of low or moderate income shall be available at affordable
29 housing cost to, and occupied by, very low income households. �•�-
30 (2) (A) (i) Prior to the time limit on the effectiveness of the ���
31 redevelopment plan established pursuant to Sections 33333.2, '
32 33333.6, and 33333.10 at least 15 percent of all new and
33 substantially rehabilitated dwelling units developed within a
34 project area under the jurisdiction of an agency by public ar �
35 private entities or persons other than the agency shall be
36 available at affordable housing cost to, and occupied by, persons
37 and families of low or moderate income.Not less than 40 percent
38 of the dwelling units required to be available at affordable
39 housing cost to, and occupied by, persons and families of low or
99
AB 2922 —44— �
1 inoderate income shall be available at affordable housing cost to,
2 and occupied by,very low income households.
3 (ii) To satisfy this paragraph, in whole or in part, the agency
4 may cause, by regulation or agreement, to be available, at
5 affordable housing cost, to, and occupied by, persons and
6 families of low or moderate income or to very low income
7 households, as applicable, two units outside a project area for
8 each unit that otherwise would have been required to be available
9 inside a project area.
10 (iii) On or after January 1, 2002, as used in this paragraph and
11 in paragraph (1), "substantially rehabilitated dwelling units"
12 means all units substantially rehabilitated, with agency
13 assistance. Prior to January 1, 2002, "substantially rehabilitated
14 dwelling units"shall mean substantially rehabilitated multifamily
15 rented dwelling units with three or more units regardless of .
16 whether there is agency assistance, or substantially rehabilitated,
17 with agency assistance, single-family dwelling units with one or ,
1 S two units. � ••-�•
19 (iv) As used in this paragraph and in paragraph (1), "°`��
20 "substantial rehabilitation" means rehabilitation, the value of
21 which constitutes 25 percent of the after rehabilitation value of
22 the dwelling, inclusive of the land value. �
23 (v) To satisfy this paragraph, the agency may aggregate new " ,
24 or substantially rehabilitated dwelling units in one or more
25 project areas, if the agency finds, based on substantial evidence,
26 after a public hearing, that the aggregation will not cause or
27 exacerbate racial, ethnic, or economic segregation.
28 (B) To satisfy the requirements of paragraph (1) and
29 subparagraph(A),the agency may purchase,or otherwise acquire
30 or cause by regulation or agreement the purchase or other ,
31 acquisition of, long-term affordability covenants on multifamily
32 units that restrict the cost of renting or purchasing those units that
33 either: (i) are not presently available at affordable housing cost to
34 persons and families of low.or very low income households, as
35 applicable; or (ii) are units that are presently available at
36 affordable housing cost to this same group of persons or families,
37 but are units that the agency finds, based upon substantial
38 evidence, after a public hearing, cannot reasonably be expected
39 to remain affordable to this same group of persons or families.
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—45— AB 2922
1 (C) To satisfy the requirements of paragraph (1) and
2 subparagraph (A),' the long-term affordability covenants
3 purchased or otherwise acquired pursuant to subparagraph (B)
4 shall be required to be maintained on dwelling un.its at affordable
5 housing cost to, and occupied by, persons and families of low or
6 very low income, for the longest feasible time but not less than
7 55 years for rental units and 45 years for owner-occupied units. ,,,,�„
8 Not more than 50 percent of the units made available pursuant to ���-
9 paragraph(1) and subparagraph(A) may be assisted through the
10 purchase or acquisition of long-term affordability covenants
11 pursuant to subparagraph (B). Not less than 50 percent of the
12 units made available through the purchase or acquisition of
13 long-term affordability covenants pursuant to subparagraph (B)
14 shall be available at affordable housing cost to, and occupied by,
15 very low income households.
16 (3) The requirements of this subdivision shall apply
17 independently of the requirements of subdivision (a). The �
18 requirements of this subdivision shall apply, in the aggregate, to
19 housing ,made available pursuant to paxagraphs (1) and (2),
20 respectively, and not to each individual case of rehabilitation,
21 development, or construction of dwelling units,unless an agency ,
22 deternunes otherwise.
23 (4) Each redevelopment agency, as part of the implementation ' �
24 plan required by Section 33490, shall adopt a plan to comply
25 with the requirements of this subdivision for each project area.
26 The plan shall be consistent with, and may be included within,
27 the community's housing element. The plan shall be reviewed
28 and, if necessary, amended at least every five years in
29 conjunction with either the housing element cycle or the plan ;,,.�,
30 implementation cycle. The plan shall ensure that the � •---�
31 requirements of this subdivision are met every 10 years. If the
32 requirements of this subdivision are not met by the end of each
33 10-year period, the agency shall meet these goals on an annual
34 basis until the requirements-for the 10-year period are met. If the
35 agency has exceeded the requirements within the 10-year period,
36 the agency may count the units that exceed the requirement in
37 order to meet the requirements during the next 10-year period.
38 The plan shall contain the contents required by paragraphs (2),
39 (3), and(4) of subdivision(a) of Section 33490.
99
AB 2922 —46— �
1 (c) (1) The agency shall require that the aggregate number of
2 replacement dwelling units and other dwelling units rehabilitated,
3 developed, constructed, or price-restricted pursuant to �
4 subdieision(a) or(b) remain available at affordable housing cost
5 to, and occupied by, persons and families of low-income, �
6 moderate-income, and very low income households,respectively, ,
7 for the longest feasible time, but for not less than 55 years for �
8 rental units and 45 years for home ownership units, except as set �
9 forth in paragraph(2). �
10 (2) Notwithstanding paxagraph (1), the agency may permit
11 sales of owner-occupied units prior to the expiration of the , , ,
12 45-year period established by the agency for a price in excess of � ,
13 tha� otherwise permitted under this subdivision pursuant to an ,
14 adopted program that protects the agency's investment of ,
15 moneys from the Low and Moderate Income Housing Fund,
16 including, but not limited to, an equity sharing program that
17 establishes a schedule of equity sharing that permits retention by
18 the seller of a portion of those excess proceeds, based on the ;mm
19 length of occupancy.The remainder of the excess proceeds of the ..-...
20 sale shall be allocated to the agency, and deposited into the Low
21 and Moderate Income Housing Fund. The agency shall, within
22 three years from the date of sale of units pursuant to this
23 paragraph, expend funds to make affordable an equal number of �
24 units at the same income level as units sold pursuant to this
25 paragraph. Only the units originally assisted by the agency shall '
26 be counted towards the agency's obligations under Section
27 33413.
28 (3) The requirements of this section shall be made enforceable
29 in the same manner as provided in paragraph (2) of subdivision
30 (fl of Section 33334.3.
31 (4) If land on which the dwelling units required by this section
32 are located is deleted from the project area, the agency shall
33 continue to require that those units remain affordable as specified
34 in this subdivision.
35 (d) (1) This section applies only to redevelopment projects for
36 which a final redevelopment plan is adopted pursuant to Article 5
37 (commencing with Section 33360) on or after January 1, 1976,
38 and to areas that are added to a project axea by amendment to a
39 final redevelopment plan adopted on or after January 1, 1976. In
40 addition, subdivision (a) shall apply to any other redevelopment �
99
—47— AB 2922
1 project with respect to dwelling units destroyed or removed from
2 the low- and moderate-income housing maxket on or after �
3 January 1, 1996, irrespective of the date of adoption of a final
4 redevelopment plan or an amendment to a final redevelopment
5 plan adding areas to a project area. Additionally, any agency �
6 may, by resolution, elect to make all or part of the requirements ;
7 of this section applicable to any redevelopment project of the
8 agency for which the final redevelopment plan was adopted prior ;`�.' ,
9 to January 1, 1976. In addition, subdivision (b) shall apply to
10 redevelopment plans adopted prior to January 1, 1976, for which
11 an amendment is adopted pursuant to Section 33333.10, except ' ' '
12 that subdivision (b) shall apply to those redevelopment.plans '
13 prospectively only so that the requirements of subdivision (b) '
14 shall apply only to new and substantially rehabilitated dwelling '
15 units for which the building permits are issued on or after the
16 date that the ordinance adopting the amendment pursuant to
17 Section 33333.10 becomes effective.
18 (2) An agency may, by resolution, elect to require that
19 whenever dwelling units housing persons ar families of low ar
20 moderate income are destroyed or removed from the low- and �
21 moderate-income housing market as part of a redevelopment
22 project, the agency shall replace each dwelling unit with up to
23 three replacement dwelling units pursuant to subdivision(a). �
24 (e) Except as otherwise authorized by law, this section does ,
25 not authorize an agency to operate a rental housing development
26 beyond the period reasonably necessary to sell or lease the
27 housing development.
28 (fl Notwithstanding subdivision (a), the agency may replace
29 destroyed or removed dwelling units with a fewer number of :
30 replacement dwelling units if the replacement dwelling units �;`��
31 meet both of the following criteria:
32 (1) The total number of bedrooms in the replacement dwelling
33 units equals or exceeds the number of bedrooms in the destroyed
34 or removed units. Destroye.d or removed units having one or no
35 bedroom are deemed for this purpose to have one bedroom.
36 (2) The replacement units are affordable to and occupied by
37 the same income level of households as the destroyed or removed
38 units.
39 (g) "Longest feasible time," as used in this section, includes,
40 but is not limited to,unlimited duration.
99
AB 2922 —48— ���
1 SEC. 12. Section 33413.5 of the Health and Safety Code is
2 amended to read:
3 33413.5. (a) Not less than� 180 days-�ie�a before any
4 action by the agency or any other public entity or the execution
5 of an agreement for acquisition of real property, or the execution
6 of an agreement for the disposition and development of property,
7 or the execution of an owner participation agreement, which
8 agreement would lead to the destruction or removal of dwelling
9 units from the low- and moderate-income housing market, the
10 agency shall adopt by resolution a replacement housing plan.�
11 Not less than 90 days before adopting
12 a replacement housing plan by resolution, the agency shall make
13 available a draft of the proposed replacement housing plan for
14 review and comment by the project area committee, other public
15 agencies, and the general public.
16 �e
17 (b) The replacement housing plan shall include (1)the�e�e�
18 location of housing to be rehabilitated, developed, or constructed �
19 pursuant to Section 33413, (2) an adequate means of financing
20 such rehabilitation, development, or construction, (3) a finding ';�"
21 that the replacement housing does not require the approval of the
22 voters pursuant to Article XXXIV of the Califomia Constitution, '
23 or that such approval has been obtained, (4) the nuxnber of � �
24 dwelling units housing persons and families of low or moderate
25 income planned for construction or rehabilitation, and (5) the
26 timetable for meeting the plan's relocation, rehabilitation, and
27 replacement housing objectives.�4
28 (c) A dwelling unit whose replacement is required by Section
29 33413 but for which no replacement housing plan has been
30 prepared, shall not be destroyed or removed from the low- and �
31 moderate-income housing market until the agency has by
32 resolution adopted a replacement housing plan.
33 .
34 (d) This section does not�revent an agency from destroying ar
35 removing from the low- and moderate-income housing market a
36 dwelling unit which the agency owns and which is an immediate
37 danger to health and safety. The agency shall,
38 }��-�'-�adopt by resolution a replacement housing plan with
39 respect to such dwelling unit within 180 days from the date of
40 destruction or removal. Not less than 90 days before adopting a �
99 `"_..
—49— AB 2922
1 replacement housing plan by resolution pursuant to this
2 subdivision, the agency shall make available a draft of the , ,
3 proposed replacement housing plan for review and comment by
4 the project area committee, other public agencies, and the
5 general public. '
6 SEC. 13. Section 33487 of the Health and Safety Code is �
7 amended to read: '
8 33487. (a) Subject to subdivisions (a) and (b) of Section
9 33486, not less than 20 percent of all taxes that are allocated to ���--� '
10 the redevelopment agency pursuant to Section 33670 far , """
11 redevelopment projects merged pursuant to this article, ' � �
12 irrespective of the date af adoption of the final redevelopment ' �
13 plans, shall be deposited by the agency in the Low and Moderate '
14 Income Housing Fund established pursuant to Section 33334.3, �
15 or which shall be established for purposes of this section. The
16 agency shall use the moneys in this fund to assist in the
17 construction or rehabilitation of housing units that will be
18 available to, or occupied by, persons and families of low or
19 moderate income, as defined in Section 50093, and very low
20 income households, as defined in Section 50105, for the longest
21 feasible time period but not less than 55 years for rental units and
22 45 years for owner-occupied units. For the purposes of this
23 subdivision, "construction and rehabilitation" shall include -
24 acquisition of land, improvements to land; the acquisition,
25 rehabilitation, or construction of structures; or the provision of
26 subsidies necessary to provide housing for persons and families
27 of low or moderate income, as defined in Section 50093, and
28 very low income households, as defined in Section 50105.
29 (b) The agency may use the funds set aside by subdivision (a)
30 inside or outside the project area. However,the agency may only
31 use these funds outside the project area upon a resolution of the �..�..•
32 agency and the legislative body that the use will be of benefit to '""`�
33 the project. This determination by the agency and the legislative
34 body shall be final and conclusive as to the issue of benefit to the
35 project area. The Legislature finds and declares that the provision
36 of replacement housing pursuant to Section 33413 is of benefit to
37 a project.
38 T'he Legislature finds and declares that expenditures or
39 obligations incurred by the agency pursuant to this section shall
40 constitute an indebtedness of the project.
99
AB 2922 —50— "-�
1 (c) If moneys deposited in the Low and Moderate Income
2 Housing Fund pursuant to this section have not been committed
3 for the purposes specified in subdivisions (a) and(b) for a period
4 of six years following deposit in that fund, the agency shall offer
5 these moneys to the housing authority that operates within the
6 jurisdiction of the agency, if activated pursuant to Section 34240,
7 for the purpose of constructing or rehabilitating housing as
8 provided in subdivisions (a) and (b). However, if no housing
9 authority operates within the jurisdiction of the agency, the
10 agency may retain these moneys for use pursuant to this section.
11 (d) If the agency deposits less than 20 percent of taxes
12 allocated pursuant to Section 33670, due to the provisions of
13 subdivisions (a) and (b) of Section 33486, in any fiscal year, a
14 deficit shall be created in the Low and Moderate Income Housing
15 Fund in an amount equal to the difference between 20 percent of
16 the taxes allocated pursuant to Section 33670 and the amount
17 deposited in that year. The deficit, if any, created pursuant to this
18 section constitutes an indebtedness of the project. The agency ,
19 shall eliminate the deficit by expending taxes allocated in years
20 subsequent to creation of the deficit and,until the time when that ,::�.,.
21 deficit has been eliminated, an agency shall not incur new "�`�
22 obligations for purposes other than those set forth in Section ,
23 33487, except to comply with the terms of any resolution or other "
24 agreement pledging taxes allocated pursuant to Section 33670 '
25 that existed on the date of inerger pursuant to this article.
26 (e) Notwithstanding subdivision (d) of Section 3.3413, any
27 agency that merges its redevelopment project areas pursuant to
28 this article shall be subject to subdivisions (a) and (c) of Section
29 33413.
30 (� This section shall become inoperative on July 1, 2007, and,
31 as of.Ianuary 1, 2008, is repealed, unless a later enacted statute, "
32 that becomes operative on or before January 1, 2008, deletes or
33 extends the dates on which it becomes inoperative and is
34 repealed.
35 SEC. 14. Section 33487 is added to the Health and Safety
36 Code, to read:
37 33487. (a) Subject to subdivisions (a) and (b) of Section
38 33486, and except as otherwise pernutted by subdivisions(d) and
39 (e), 50 percent of all taxes that are allocated to the redevelopment
40 agency pursuant to Section 33670 for redevelopment projects
99 .„..
—51— AB 2922
1 merged pursuant to this article, irrespective of the date of
2 adoption of the final redevelopment plans, shall be deposited by
3 the agency in the Low and Moderate Income Housing Fund
4 established pursuant to Section 33334.3, or which shall be
5 established for purposes of this section. The agency shall use the
6 moneys in this fund to assist in the construction or rehabilitation
7 of housing units that will be available to, or occupied by,persons
8 and families of low or moderate income, as defined in Section
9 50093, and very low income households, as defined in Section
10 50105, and extremely low income households, as defined in ,;:�,
11 Section 50106, at affordable housing cost, as defined by Section ��;-
12 50052.5, for the longest feasible time period but not less than 55
13 years for rental units and 45 years for owner-occupied units. For
14 the purposes of this subdivision,"construction and rehabilitation"
15 shall include acquisition of land, improvements to land; the
16 acquisition, rehabilitation, or construction of structures; or the
17 provision of subsidies necessary to provide housing for persons ,
18 and families of low or moderate income, as def�ned in Section
19 50093, and very low income households, as defined in Section
20 50105 and extremely low income households, as defined in
21 Section 50106.
22 (b) The agency may use the funds set aside by subdivision (a) �
23 inside or outside the project area. However, the agency may only '
24 use these funds outside the project area upon a resolution of the
25 agency and the legislative body that the use will be of benefit to
26 the project. This determination by the agency and the legislative
27 body shall be final and conclusive as to the issue of benefit to the
28 project area. The Legislature finds and declares that the provision
29 of replacement housing pursuant to Section 33413 is of benefit to
30 a project. �
31 (c) Commencing with the 2007-08 fiscal year and as to project ;; '
32 areas that were merged between January 1, 1981, and December ��;
33 31, 2006, or for any area that is added to a merged project by an ...•.
34 amendment to a redevelopment plan, which amendment is
35 adopted between January 1, 1981, and December 31, 2006, the
36 agency may deposit less than the amount required by subdivision
37 (a), but no less than 20 percent of all taxes that are allocated to
38 the agency pursuant to Section 33670, into the Low And
39 Moderate Income Housing Fund if the agency finds that the
40 difference between the minimum 20 percent deposited and the
99
AB 2922 —52— ,
1 amount required by subdivision (a) is necessary to make ��-�-�
2 payments under existing obligations of amounts due or required , ,
3 to be committed, set aside, or reserved by the agency during that
4 fiscal year and are used by the agency for that purpose. For
5 purposes of this section, "existing obligations" means the �
6 principal of, and interest on, loans, moneys advanced to, or .
7 indebtedness (whether funded, refunded, assumed, or otherwise) '
8 incurred by the agency to finance or refinance, in whole or in
9 part, any redevelopment project existing on, and created before '
10 January 1, 2007, and contained on the statement of existing ,
11 obligations adopted pursuant to subdivision (e). Obligations � , ,
12 incurred on or after January 1, 2007, shall be deemed existing ' ,
13 obligations for purposes of this section if the net proceeds are �
14 used to refinance existing obligations contained on the statement. ,
15 � (d) In each fiscal year before July 1, 2012, the agency may
16 deposit less than the amount required by subdivision (a) into the
17 Low and Moderate Income Housing Fund if the agency finds that
18 the difference between the minimum 20 percent deposited and
19 the amount required by subdivision (a) is necessary in order to
20 provide for the orderly and timely completion of public and
21 private projects, programs, or activities approved by the agency :;"
22 before January 1, 2007, which are contained on the statement of ;�.
23 existing programs adopted pursuant to subdivision (e). Approval ..�.•.
24 of these projects,programs, and activities means approval by the
25 agency of written documents that demonstrate an intent to �
26 implement a specific project, program, or activity and is not
27 limited to final approval of a specific project, program, or
28 activity.
29 (e) An agency that deposits less than the amount required by
30 subdivision(a)into the Low and Moderate Income Housing Fund
31 pursuant to subdivision(c)or(d) shall adopt before September 1, ,
32 2007,by resolution, after a noticed public hearing,a statement of
33 existing obligations or a statement of existing programs, or both.
34 (1) The agency shall prepare and submit the proposed
35 statement to the legislative body and to the Department of
36 Housing and Community Development before giving notice of
37 the public hearing. Notice of the time and place of the public
38 hearing shall be transmitted to the Department of Housing and
39 Community Development at least 15 days before the public
40 hearing and notice of the time and place of the public hearing
99
-53— AB 2922
1 shall be published in a newspaper of general circulation in the
2 community once a week for at least two successive weeks before �
3 the public hearing. The legislative body shall maintain a record
4 of the public hearing.
5 (2) A copy of the resolution adopted by the agency, together �
6 with any amendments to the statement of the agency, shall be '
7 transmitted to the Department of Housing and Community �
8 Development within 10 days following adoption of the resolution �
9 by the agency. '
10 (3) A statement of existing obligations shall describe each �
11 existing obligation, and, based upon the best available ' ' '° -
12 information, as determined by the agency, list the total amount of � � '
13 the existing obligation, the date it was incurred, the annual ' :�""
14 payments required to be made by the agency pursuant to the '
15 existing obligation, the interest rate, and the date the existing
16 obligation will be discharged in full.
17 (4) A statement of existing programs shall list the specific
18 public and private projects, programs, or activities approved
19 before January 1, 2007, which are necessary for the orderly
20 completion of the redevelopment plan as it existed on January 1,
21 2007.A project, program, or activity shall not be included on the
22 statement of existing programs unless written evidence of the
23 existence and approval of the project,program, or activity before
24 January 1, 2007, is attached to the statement of existing
25 programs.
26 (fl If, pursuant to subdivision (c) or (d), the agency deposits
27 less than 50 percent of the taxes allocated to the agency pursuant
28 to Section 33670 in the Low and Moderate Income Housing
29 Fund, the amount equal to the difference between 50 percent of
30 the taxes allocated to the agency pursuant to Section 33670 for
31 each affected project and the amount deposited that year, which '
32 shall not be less than 20 percent of the ta��es allocated to the
33 agencypursuant to Section 33670, shall constitute a deficit of the
34 project. In each fiscal year i�which the agency has a deficit, the �
35 agency shall adopt a plan to eliminate the deficit as soon as .::.�::'
36 feasible. If the agency takes longer than five years to eliminate
37 this deficit, simple interest, at the average rate earned by the
38 housing fund,.shall be added to each year's deficit, until paid in
39 full.
99
AB 2922 —54—
1 (g) The obligations imposed by this section, including deficits, �
2 if any, created under'this section, are hereby declared to be an .:µ.:
3 indebtedness of the redevelopment project to which they relate,
4 payable from taxes allocated to the agency pursuant to Section
5 33670, and shall constitute an indebtedness of the agency with
6 respect to the redevelopment project until paid in full.
7 (h) In any litigation to challenge or attack a statement of
8 existing obligations, the decision by the agency after the public
9 hearing to include an existing obligation on the statement of
10 existing obligations, or the decision by the agency after the
11 public hearing to include a project, program, or activity on the
12 statement of existing programs, the court shall uphold the action
13 of the agency unless the court finds that the agency has abused its
14 discretion. The Legislature finds and declares that this standard
15 of review is necessary in order to protect against the possible
16 impairment of existing obligations, programs, and activities if
17 agencies have incurred existing obligations and have adopted ,
18 projects, programs, and activities with the authority to receive
19 and pledge up to 80 percent of funds authorized by Section
20 33670. �
21 (i) If moneys deposited in the Low and Moderate Income
22 Housing Fund pursuant to this section are not committed for the ' . � -
23 purposes specified in subdivisions (a) and (b) for a period of six �. �
24 years following deposit in that fund, the agency shall offer these ',',�;'
25 moneys to the housing authority that operates within the
26 jurisdiction of the agency, if activated pursuant to Section 34240,
27 for the purpose of constructing or rehabilitating housing as
28 provided in subdivisions (a) and (b). If no housing authority
29 operates within the jurisdiction of the agency, the agency may
30 retain these moneys for use pursuant to this section. �
31 (j) If the agency deposits less than the original 20 percent of
32 taxes allocated pursuant to Section 33670, due to the provisions
33 of subdivisions (a) and(b) of Section 33486, in any fiscal year, a
34 deficit shall be created in the I,ow and Moderate Income Housing
35 Fund in an amount equal to the difference between 20 percent of
36 the taxes allocated pursuant to Section 33670 and the amount
37 deposited in that year. The deficit, if any, created pursuant to this
38 section constitutes an indebtedness of the project. The agency
39 shall eliminate the deficit by expending taxes allocated in years
40 subsequent to creation of the deficit and,until the time when that
99
—55— AB 2922
1 deficit has been eliminated, an agency shall not incur new
2 obligations for purposes other than those set forth in Section
3 33487, except to comply with the terms of any resolution or other
4 agreement pledging taxes allocated pursuant to Section 33670
5 that existed on the date of inerger pursuant to this article.
6 (k) Notwithstanding subdivision (d) of Section 33413, any
7 agency that merges its redevelopment project areas pursuant to
8 this article shall be subject to subdivisions (a) and (c) of Section
9 33413.
10 (� This section shall become operative on July 1, 2007.
O
99
xecutive Directors Legislative Update Page 1 of� �
Gibson, Paul
From: California Redevelopment Association [jfreitas@calredevelop.org]
Sent: Monday, March 06, 2006 4:22 PM
To: Gibson, Paul
Subject: Executive Director's Legislative Update ,
California Redevelopment Association ,
�eg islative U pdate ,
� �
FROM: 70HN F. SHIREY, EXECUTIVE DIRECTOR '
_egislative Update - March 6, 2006
a6 2922 by Assembly Member Dave Jones (D-Sacramento) would make the most far-reaching amendment to
:he 15ousing fund provisions of the Community Redevelopment Law since their adoption in 1977, including an
ncrease in the housing set aside from 20% to 50%.
4gencies can temporarily delay the requirement to annually set aside 50% of the tax increment if the additional
3mount is necessary to pay for either: (1) existing indebtedness identified in a statement of indebtedness
3dopted on or before September 1, 2007, or (2) the timely completion of projects, programs and activities
�escribed in a statement of existing projects, programs and activities adopted prior to September 1, 2007. In no
�vent may less than 20% of tax increment be deposited in the housing fund. Amounts deferred must be repaid
to the fund within 5 years, or interest will accrue on the unpaid amount. This bill also eliminates a provision of
�xisting law which permits a housing set-aside of less than 20% for pre-1977 redevelopment projects where it is
necessary to pay obligations incurred prior to January 1, 1986. .
�ther significant features of the bill include the following:
. Elimination of the exceptions to the housing set-aside requirement where the redevelopment agency finds
that either: (1) no need exists in the community, (2) some stated percentage less than 20% is sufficient to
meet the housing need, or (3) the community is making other efforts equivalent in impact to the housing
set-aside requirement.
. An expansion of the findings required annually in connection with using housing fund money for
administrative expenses to include the following: (1) the expenditures are directly related to authorized
programs and activities, and (2) the expenditures are not disproportionate to the amount actually spent
during that fiscal year for costs of production, improvement and preservation of housing. The
determinations must be in writing and supported by substantial evidence. If challenged, the burden of
proof is on the agency.
• Agencies would also be required to maintai� detailed time records to support the use of housing fund
money for agency staff or services.
. Affordability covenants would be made enforceable by "any interested party."
• Elimination of the ability of an agency to pay less than 20% of the tax increment into the housing fund
from one project, if it is offset by paying more from another project.
. At least half of the units assisted by the housing fund must be targeted for extremely low and very low
income persons.
. The replacement housing obligation is expanded to include not just units destroyed or removed by the
agency, but also any units destroyed or removed by any other public entity as part of the redevelopment
project.
• Modifies the requirement that replacement units be proportionate to the income level of the displaced
�/6/2006
;xecutive Directors Legislative Update Page 2 of�
occupants by providing that if the income tevel of the occupant cannot be verified, the household shall be
presumed to be extremely low income.
. Increases the lead time for the adoption of replac�ment housing plans from 30 to 180 days prior to �
approval of agreements for acquisition of property. A draft must be made available at least 90 days prior
to adoption, making the effective lead time 270 days, or 9 months.
�RA would appreciate receiving comments about this proposed legislation.
[n other developments, SB 1206 (Kehoe), which would redefine blight in redevelopment law, among other '
things, was approved unanimously by the Senate Local Government Committee last week, despite the opposition �
�f CRA, the League of California Cities, the California Contract Cities Association, and several cities. Those
voting in favor were Senators Christine Kehoe, Dave Cox, Dick Ackerman, Mike Machado, and Tom Torlakson. �
Senators Cox, Ackerman, and Torlakson appeared to have voted for the bill with the understanding that issues
�nd concerns raised during the hearing would be addressed by the author and the bill later returned to the � �
�ommittee for further consideration. In the meantime, the bill has been set for hearing in the Senate Judiciary �
�ommittee on March 21. �
Another new bill of concern to redevelopment agencies is AB 2197 by Assembly Member Chuck Devore (R-
[rvine) which would require all new redevelopment plans, plan amendments, and project area mergers to first be
�pproved by the respective county board of supervisors.
We also understand the eminent domain ballot initiative sponsored by Anita S. Anderson is now being circulated
For signatures with the intention of qualifying it for the November election.
We hope to see you at our Annual Conference beginning this Wednesday where these and other legislative issues
will be discussed.
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�/6/2006