HomeMy WebLinkAboutAB2097 Low/Moderate Income Housing FundREQUEST:
DATE:
CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON AB 2097 (COTO) AT ITS MEETING OF MARCH 25, 2008
April 10, 2008
CONTENTS: AB 2097 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 25, 2008, and direct staff to prepare a letter of support for the Mayor's
signature with regard to AB 2097 (Coto) relative to low and moderate income housing fund.
BACKGROUND:
The Community Redevelopment Law requires that not less than 20% of tax increment revenue
allocated to a Redevelopment Agency to be used to increase, improve, and preserve the supply
of the community's low and moderate income housing within the jurisdiction of that Agency.
If passed, AB 2097 would authorize Redevelopment Agencies to provide construction,
operation, and maintenance funding from the low and moderate income housing fund to
emergency shelters and supportive services to permanent housing to those who are homeless
or have special needs. Recognizing the need to provide emergency shelters and supportive
services to locate permanent housing for individuals and families located within our community,
the Legislative Review Committee believes that the benefits of this bill would be advantageous
provided that language is added to the bill that units developed within the City of Palm Desert be
counted towards its 20% set aside.
Therefore, the Legislative Review Committee recommendsi g that the City Council ,ul
2097 with the suggested language addition and direct staff to prepare a letter st.
position to appropriate Legislators for the Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANALYST
SHEILA R. UILLI AN
ACM/COMMUNITY SERV
PAUL GIBSON
DIRECTOR OF FINANCE/
CITY TREASURER
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AB 2097 Assembly Bill - INTRODUCED Page 1 of 10
BILL NUMBER: AB 2097 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Coto
FEBRUARY 19, 2008
An act to amend Sections 33334 .2 and 33334. 3 of the Health and
Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2097, as introduced, Coto, Low and Moderate Income Housing
Fund: emergency shelters and supportive services.
(1) The Community Redevelopment Law requires that not less than
20� of the tax-increment revenue allocated to a redevelopment agency
be used to incr.ease, improve, and preserve the supply of the
cornmunity's low- and moderate-income housing within the territorial
jurisdiction of the agency, and for this purpose, the funds are held
in a separate Low and Moderate Income Housing Fund. The agency is
authorized to exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low, and moderate-income persons or families,
including certain listed activities.
This bill would authorize the redevelopment agency to provide
construction, operation, and maintenance funding from the Low and
Moderate Income Housing Fund to emergency shelters and supportive
services to permanent housing for those who are homeless or have
special needs, or both.
(2) The Community Redevelopment Law requires that all new or
substantially rehabilitated housing units developed or otherwise
assisted with moneys from the Low and Moderate Income Housing Fund
pursuant to ar, agreement app�oved by an agency on or after January 1,
1988, remain availanle at affordable housinq cost to, and occupied
by, persons and f.amilies of low or moder.ate income, and very low
income, and extremely low income households for the longest feasibie
time, but for not less than specified periods of time, except as
specified. The term "housing" is defined, for these purposes, to
include residential hotels, as defined.
This bill would define "housinq, " for these purposes, to also
include an emergency shelter, as defined.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
TNE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS EOLLUWS:
SECTION 1 . Section 33339 .2 of the Health and Safety Code is
amended to read:
33339 .2. (a) Not less than 20 percent of all taxes that are
allocated to the agency pursuant to Section 33670 shall be used by
the agency for the pur.poses of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as def�ned by Section 50052.5, to persons
and fam.ilies of low or moderate ir.come, as defined in Section 50093,
l.ower income households, as defined by Section 50079. 5, very low
ircome households, as defined in Section 501.05, and extremely low
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income households, as defined by Section 50106, that is occupied by
these persons and families, unl.ess one of the followirig findings i.s
made ar,nually by resolution:
;1) (A) That no r.eed exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housiny for very low income households in a manner that
would benerit the project area and that this finding is consistent
with the housing element of the community's general plan required by
Article 10. 6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, including its share of the
regional housiny needs of very low income households and persons and
families of 1ow or Moderat� income.
(B) This finding shall only be made if the housing element of the
community's gener,al plan demonstrates that the community does not
have a r.eed to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persor�s and families of low or moderate income and to very low income
households. This finding shall only be made if it is consistent with
the planning agency's annual report to the legislative body on
implementation of the housing element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
snall make this finding unless the planninq aqency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
Titis finding shall not take effect until the agency has complied
with subdivision (b) of this section.
(2) (A) That some stated percentage less than 20 percent of the
taxes that are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing needs of the community, including its
share of the regional housing needs of persons and families of low-
or moderate-income and very low income households, and that this
findinq is consistent with the housing element of the community's
qeneral plan required by Article 10. 6 (commencing with Secti.on 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
(B) This finding shall only be made if the housing element of the
community's general plan demonstrates that a percentage of less than
20 percent will be sufficient to meet the community's need to
improve, increase, or preserve the supply of low- and moderate-income
housing available at affordable housing cost to persons and families
of low or moderate income and to very low income households. This
finding shall only be made if it is consistent with the planning
agency' s annual report to the legislative body on implementation of
the housing el.ement required by subdivisiori (b) oL Section 65400 of
the Government Code. No agency of a charter city shall make this
find.ing unless the planning agency submits the report pursuant to
subdivision (b) of Section 65900 of the Government Code. Thi.s finding
shall not take effect until the agency has complied with subdivision
(b) of this section.
(C) For purposes of making the findings specified in this
paraqraph and paragraph (1) , the housing element of the general plan
of a city, county, or city and county shall be current, and shall
have been determ.ined by the department pursuant to Section 65585 to
be in substantial compliance with Article 10. 6 (commencing with
Section 65580) of ChaPter 3 of Division 1 of Title 7 of the
Government Code.
(3) (A) That the community is making a substantial effort to meet
its existing and projected housing needs, including its share of thc
regional housing needs, with respect to persons and families of low
and moderate .income, particularly very low income households, as
identified in the housinq element of the commuriit:y's genera.]. plan
required by Article 10. 6 (commencing witti Sectior� 65580) of Chapter 3
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AB 2097 Assembly Bill - INTRODUCED Page 3 of 10
of Division 1 of Title 7 of the Government Code, and that this
effort, consisting of direct financial contributions of local funds
used to increase and improve the supply of housing affordable to, and
occupied by, persons and families of low or moderate income and very
low income households is equivalent in impact to the funds otherwise
required to be set aside pursuant to this section. In addition to
any other local funds, these direct financial contri.butions may
include federal or state grants paid directly to a community and that
the community has the discretion of using for the purposes for which
moneys in the Low and Moderate Income Housing Fund may be used. The
legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low or
moderate income or very low income households from within, or
adjacent to, the project area, because of increased employmer.t
opportuniries, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subciivision may be made unti.l the community has provided or ensured
the availability of replacement dwelling units as defined in Section
33411.2 and until it has complied with Article 9 (commencing with
Section 33410j .
(B) In making the determination that other financiai contributions
are equivalent in impact pursuant to this subdivision, the agency
shall inclade only those financial contributions that are directly
related to programs or activities authorized under subdivision (e) .
(C) The authority for making the finding specified in this
paragra�h sha'_1 expire on June 30, 1993, except that the expiration
snall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on the provisions of this paragraph. Agencies that make this
Find;ng after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intent.ion of making a finding under this paragraph ir order to
provide sufficient revenues to pay off the ir.debtedness.
(b) Within 10 days following the making o£ a finding under either
paragraph (1) or (2) of subdivision (a) , the agency shall send the
Depar�ment of Housing and Community Development a copy of the
fir.dinq, including the factual information supporting the finding and
other factual information in the housinq element that demonstrates
that either (1) the community does not need to increase, improve, or
preserve the supply of housing for low- and moderate-income
households, includina very 1ow i.ncome households, or (2) a percer,tage
less than 20 percent wi�1 be suffic.ient to meet the community's need
to improve, iricrease, and preserve the supply of housing for low-
and moderate-income households, including very low ir�come households.
Within 10 days following the maki.ng of a finding under paragraph (3)
of subdivision (a) , the agency shall send the Department of Housirig
and Community Development a copy of the finding, including the
factual information supporting the finding that the community is
making a substantial effort to meet its existinq and projected
housing needs. Agencies that make this findi.ng after. June 30, 1993,
shall also submit evider.ce to the department of its contractual
obligations with bondholders or private entities incurred prior to
May 1, 1991, and made in reliance on this finding.
(c) In any litigation to challenge or attack a finding made under
paragraph (1) , (2) , or (3} of subdivision (a) , the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
If an agency is determined by a court to have knowingiy
misrepresented any materi.al facts regarding the community' s share of
its regional 'nousinq need for low- and moderate-income housing,
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including very low incorne households, or the community's production
record in meeting its share of the r.egional housing need pursuant to
the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and
plaintiff's attorney's fees, and shall be required to allocate not
less than 25 percent of the agency's tax increment revenues to its
Low and Moderate Income Housing Fund in each year thereafter.
(d) Nothing ir, this section shall be construed as relieving any
otner public enti.ty or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
(e) In carryinq out the purposes of this section, the agency may
exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low- and moderate-income persons or families,
includinq tne following:
(1) Acqu�re real property or building sites subject to Section
33334 . 16.
(2) (A) Improve real property or. building sites with onsite or
offsite improvements, but only if both (i) the improvements are part
of the new construction or rehabilitation of affordable housing units
for low- or moderate-income persons that are directly benefited by
the improvements, and are a reasonable and fundamental component of
the housing units, and (ii) the agency requires that the units remain
available at affordable housing cost to, and occupied by, persons
and families of extremely low, very low, low, or moderate income for
the same time period and in the same manner as provided in
subdivision (c) a�d paragraph (2) of subdivision (f) of Section
33339 .3.
(B) If th� newly constructed or rehabilitated housing units are
part of a larger project and the agency impr.oves or pays for onsite
or offsite improvements pursuant to the authority in this
subdivision, the agency shall pay only a portion of the total cost of
the onsite or of.fsite improvea�ent. The maximum percentage of the
total cost of the improvement paid for by the agency shall be
determined by dividing the number of housinq units that are
affordabie to low- or moderate-income persons by the total number of
housing units, if the project is a housina project, or by dividing
the cost of the affordable housing units by the total cost of the
project, if �ne project is not a housing project.
(3; Donate real property to private or public persons or entities.
(9) Finance insurance premiums pursuant to SecLion 337.36.
(5) Construcr buildings or structures.
(6) Acqu.ire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsidies to, or for the benefit of, extremely low
income househol.ds, as defined by Section 50106, very low income
househo.lds, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate ir�come, as defined by Section 50093, to the extent those
households cannot obtain housinq at affordable costs on the open
market. Housing units available on the open market are those units
developed without direct government subsidies.
(9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financinq or carrying
charges.
(10) Maintain the community's supply of mobilehomes.
(11) Preserve the ava:�lability to lower income households of
affordable housing units in housing developments that are assisted or
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subsidized by public entiti.es and that are threatened with imminent
conversion to market rates.
(12) Notwithstanding subdivision (d) of Section 33334. 3, prov�de
construction, operation, and maintenance funding for emergency
shelters and supportive services to permanent housing for those who
are homeless or have special needs, or both.
(f) The aqency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33913. However, nothing
in this section shall be construed as limiting in any way the
requirements o� that section.
(g) ;1; The agency may use these funds inside or outside the
project area. The agency may only use these funds outside the project
area upon a resolution of the agency and the legislative body that
the use will be of benefit to the project. The determination by the
agency and the legislative body shall be final and conclusive as to
the issue of benefit to the project area. The Legislature finds and
declares that the provision of replacement housinq pursuant to
Section 33413 is always of benefit to a project. Unless the
legislative body `inds, before the redevelopment plan is adopted,
tnat the provision of low- and moderate-income housing outside the
project area wiil be of benefit to the project, the project area
shall ir.clude property suitable for low- and moderate-income housinq.
(2) (A) The Contra Costa County Redevelopment Aqency may use these
funds anywhere within the unincorporated territory, or within the
incorporated limits of the City of Walnut Creek on sites contiguous
to the Pleasant Hill. BART Station Area Redevelopment Project area.
The agency may only use these funds outside the project area upon a
resolution of the agency and board of supervisors determining that
the use will be of benefit to the project area. In addition, the
agency may use tnese funds within the incorporated limits of the City
of Walnut Creek only if the aqency and the board of supervisors find
all of the followinq:
(i) Both the County of Contra Costa and the City of Walnut Creek
have adooted and are implementing complete and current housinq
elements of their general plans that the Department of Housing and
Community Development has determined to be in compliance with the
requirements of Article 10. 6 (commencing with Section 65580) of
CnaPter 3 of Divisi.on 1 of Title 7 of the Government Code.
(ii) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
(iii) `Phe development to be funded shall not be constructed in an
area that currently has more than 50 percertt. of its population
comprised of racial minorities or low-income £amilies.
(iv) The development to be funded shall allow construction of
afiordable housinq closer to a rapid tr.ansit station than could be
constructed in the unincorporated territory outside the Pleasant Hill
BART Station Area Redevelopment Project.
(B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements sriall
apply:
(i) The funds shall be used only for the acquisition of land f.or,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-incor�e persor.s.
(ii) If less thari al.l the units in the development are affordab�e
to, and occupied by, low- or moderate-income persons, any agency
assistance shall not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
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(i�i) The units in the development that are affordable to, and
occupied by, low- or modera�e-income persons shall remain affordable
for a period of at least 55 years.
(iv) The agency and the City of Walnut Creek shall determine, if
applicable, whether Article XXXIV of the California Constitution
permits the development.
(h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
(i; This section shall only apply to taxes allocated to a
redevelopment agency for which a final redevelopment plan is adopted
on or after January 1, 1977, or for any area that is added to a
project by an amendment to a redevelopment plan, which amendment is
adopted on or after the effective date of this section. An agency
may, by resolution, elect to make all or part of the requirements of
this section applicable to any redevelopment project for which a
redevelopment plan was adopted prior to January 1, 1977, subject to
any indebtedness incurred prior to the election.
(j ) (1) (A) An action to compel compliance with the requirement of
Sectior. 33339 . 3 to deposit not less than 20 percent of all taxes
that are allocated to the agency pursuant to Section 33670 in the Low
ar�d Moderate Income Housing Fund shali be comrnenced within 10 years
of the alleged violation. A cause of action for a violation accrues
on the last day of the fiscal year iri which the funds were required
to be deposited in the Low and Moderate Income Housing Fund.
(B) An action to compel compliance with the requirement of this
section or Section 33334 . 6 that money deposited in the Low and
Moderat� Income Housing Fund be used by the agency for purposes of
increas�ng, imoroving, and preserving the community' s supply of .1ow-
and moderate-income housing available at affordable housing cost
shall be commenced within 10 years of the alleged violation. A cause
of action for a violation accrues on the date of the actual
expend.iture of the funds.
(C) An agency found to have deposited less into the Low and
Moderate Income Housing Fund than mandated by Section 33334 .3 or to
nave spent money from the Low and Moderate Income Housing Fund for
purposes other than increasinq, improving, and preserving the
commur.ity's supply of low- and moderate-income housing, as mandated,
by this section or Section 33334 . 6 shall repay the funds with
interest in one lump sum pursuant to Section 970.9 or 970.5 of the
Government Code or may do either of the following:
;i) Petition the court under Section 970. 6 for repayment in
installments.
(ii) Repay the portion of the judqment due to the I,ow and Moderate
Income fiousing Fund in equal installments over a period of five
years following the judgment.
(2) I2epayment shall not be made from the funds required to be set
aside or used for low- and moderate-income housing pursuant to this
section.
(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paraqraph (1) , ail costs, including reasonable attorney`s fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
(9) Except as otherwise provided in this subdivision, Chapter 2
(commencinq with Sectior. 970) of Part 5 of Division 3. 6 of Title 1 of
the Governmerit Coc�e for the enforcement of a judgment against a
local public entiLy applies to a judgment against a local public
entity that violates this section.
(5) This subdivision applies to actions filed on and after January
1, 2006.
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(6) The limitations period specified in subparaqraphs (A) and (B)
of paragraph (1) does not apply to a cause of action brought pursuant
to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure.
SEC. 2. Section 33339 . 3 of the Health and Safety Code is amended
to read:
33334 . 3. (a) The funds that are required by Section 33339 .2 or
33334 . 6 to be used for the purposes of increasing, improving, and
preserving the community's supply of low- and moderate-income housing
shall be held in a separate Low and Moderate Income Housing Fund
until used.
(b) Any interest earned by the Low and Moderate Income Housing
Fund and any repayments or other income to the agency for loans,
advances, or grunts, cf any kind from the Low and Moderate Income
I-:ousing F�nd, shall accrue to and be deposited in, the fund and may
only be used ir. tt�e manner prescribed for the Low and Moderate Income
Housinq Fund.
(c) The moneys in the Low and Moderate Income Housing Fund shall
be used to increase, improve, and preserve the supply of low- and
moderate-income housinq within the territorial jurisdiction of the
agency.
(d) It is the intent of the Leqislature that the Low and Moderate
Income Housing Fund be used to the maximum extent possible to defray
the costs of production, improvement, and preservation of low- and
moderate-income 'riousing and that the amount of money spent for
planning and general administrative activities associated with the
development, improvement, and preservation of that housing not be
disproportionate to the amount actually spent for the costs of
production, improvement, or preservation of that housing. The agency
shall determine annually that the planning and administrative
expenses are necessary for the production, improvement, or
preservation of low- and moderate-income housing.
(e) (1) Planning and general administrative costs which may be
paid with moneys from the Low and Moderate Income Housing Fund are
those expenses incurred by the agency which are directly related to
the programs and activities authorized under subdivision (e) of
Section 33339 .2 and are limited to the following:
(A) Costs incurred for salaries, wages, and related costs of the
agency's staff or for services provided through interagency
agreements, and aqreements with contractors, including usual indirect
costs related thereto.
(B) Costs �ncurred by a rionprofi.t corporation whi.ch are not
directly attributable to a specific project.
(2) Legal, architectural, and engir.eering costs and other
sa�aries, wages, and costs directly related to the planning and
execution of a specific project that are authorized under subdivision
(e) of Section 33334 .2 and that are incurred by a nonprofit housing
sponsor are not planning and admin.istrative costs for the purposes of
this sectior., but are instead project costs.
(f) (1) The requirements of this subdivision apply to all new or
substantially rehabilitated housinq units developed or otherwise
assisted with moneys from the Low and Moderate Income Housing Fund,
pursuant to an agreement approved by an agency on or after January 1,
1988 . Except to the extent that a longer period of time may be
required by other provisions of law, the agency shall require that
housing units subject to this subdivision shall remain available at
affordable housing cost to, arid or_cupied by, persons and famili.es of
low or. moderate income and very low income and extr.emely low income
househoids for the longest feasible time, but for not less than the
following periods of time:
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(A) Fifty-five years for rental units. However, the agency may
replace rental units with equally affordable and comparable rental
units in another location within the community if (i) the replacement
units are available for occupancy prior to the displacement of any
persons and families of low or moderate income residing in the units
to be replaced and (ii) the comparable replacement units are not
developed with moneys from the Low and Moderate Income Housing Fund.
(B) Forty-five years for owner-occupied units. However, the agency
may permit sales of owner-occupied units prior to the expiration of
the 95-year period for a price in excess of that otherwise permitted
under this subdivision pursuant to an adopted program which protects
the agency's investment of moneys from the Low and Moderate Income
Housinq Pund, including, but not limited to, an equity sharing
prcgram which establishes a schedule of equity sharing that permits
retention by the seller of a portion of those excess proceeds based
on the lenqth of occupancy. The remainder of the excess proceeds of
the sale shall be allocated to the agency arid deoosited in the Low
and Moderate ircome Housing Fund. Only the units originally assisted
by the agency shall be counted towards the agency's obligations under
Section 33413.
(C) E'ifteen years for mutual self-help housing units that are
occupied by and affordable to very low and low-income households.
However, the agency may permit sales_ of mutual self-help housing
units prior to expiration of the 15-year period for a price in excess
of that otherwise permitted under this subdivision pursuant to an
adopted program tnat (i) protects the agency's investment of moneys
from the Low and Moderate Income Housing Fund, including, but not
limited to, an equity sharing program that establishes a schedule of
equity sharing that permits retention by the seller of a portion of
those excess proceeds based on the length of occupancy; and (ii)
ensures throuqh a recorded regulatory agreement, deed of trust, or
similar recor.ded instrument that if a mutual self-help housing un.it
is sold at any time after expiration of the 15-year period and prior
to 45 years after the date of recording of the covenants or
restrictions required pursuant to paragraph (2) , the agency recovers,
at a minimum, its original principal from the Low and Moderate
�ncome Housing Fund from the proceeds of the sale and deposits those
funds into the Low and Moderate Income Housing Fund. The remainder of
the excess proceeds of the sale not retained by the seller shall be
ai.located to the agency and deposited in the Low and Moderate Income
Housing Eund. Eor the purposes of this subparagraph, "mutual
self-help riousing unit" means an owner-occupied housing unit for
which persons and families of very low and low income contribute no
fewer than 50C hours of �he.i .r own labor in i.ndiv�dual or group
efforts to provide a decent, safe, and sanitary ownership housing
unit for t:iemselves, their families, and others authorized to occupy
`hat unit. Nothing in this subparagraph precludes the agency and the
developer of the mutual self-help housing units f.rom agreeing to
95-year deed restrictions.
(2) I` land on which those dwelling units are located is de].eted
from the project area, the agency shall continue to require that
those units r.emain af�ordable as specified in this subdivision.
(3) The agency shall require the recording in the office of the
county recorder of the following documents:
(A) The covenants or restrictions implementing this subdivision
for each parcel or unit of real property subject to this subdivision.
The aqer.cy shall obtain and maintain a copy of the recorded
covenants or restrictions for not less than the life of the covenant
or restriction.
;B) For all new or substantially rehabilitated un.its developed or
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otherwise assisted with moneys from the Low and Moderate Income
Housing Fund on or after January 1, 2008, a separate document called
"Notice of Affordability Restrictions on Transfer of Property, " set
forth in 19-point type or larger. This document shall contain al.l of
the following information:
(i) A recitation of the affordability covenants or restrictions.
If tne document recorded under this subparagraph is recorded
�oncurrentl.y with the covenants or restrictions
recorded under subparagraph (A) , the
recitation of the affordability covenants or restrictions shall also
reference the concurrently recorded document. If the document
recorded under this subparagraph is not recorded concurrently with
the covenants or restrictions recorded under subparagraph (A) , the
recitation of the affordability covenants or restrictions shall also
reference the recorder' s identification number of the document
rc�corded ander subparagraph (A) .
(ii) The date the covenants or restrictions expire.
(iii) The street address of the property, includirig, if
applicable, the unit number.
(iv) The assessor's parcel number for the property.
(v) 'Phe legal description of the property.
(4) The agency shall require the recordinq of the document
required under subparagraph (B) of paraqraph (3) not more than 30
days after the date of recordation of the covenants or restrictions
required under subparagraph (A) of paragraph (3) .
(5) The county recorder shall index the documents required to be
recorded under paragraph (3) by the aqency and current owner.
(6) ;�otwithstanding Section 27383 of the Government Code, a county
recorder may charge all authorized recording fees to any party,
including a public agency, for recording the document specified in
subparagraph (B) of paragraph (3) .
(7) Notwithstanding any other provision of law, the covenants or
restrictions implementing this subdivision shall run with the land
and shall be enforceable against any owner who violates a covenant or
restriction and each successor in interest who continues the
violation, by any of the following:
(A) The agency.
(B) The cornmunity, as defined in Section 33002.
(C) A resident of a unit subject to this subdivision.
(D) A residents' association with members wno reside in units
subject to this subdivision.
(E) A former residenL of a unit subject to this subdivision who
last resided in that unit.
(E) An applicant seeking to enforce the covenants or restrictions
for a part.i.cular unit that is subject to tnis subdivision, if the
aF�plicant conforms to all of the following:
(i) Is of low or moderate income, as defined in Section 50093.
(ii) Is able and willing to occupy that particular unit.
(iii) Was der�ied occupancy of lhat particular unit due to an
alleged breach of a covenant or restricti.on implementing this
subdivision.
(G) A person on an affordable housing waiting list who is of low
or moderate income, as defined in Section 50093, and who is able and
willing to occupy a unit subject to this subdivision.
(8) A dwellinq unit shall not be counted as satisfying the
affordable housinq requirements of this par.t, unless covenar�ts fo.r
that dwelling unit are recorded in compliance with subparagraph (A)
of paragraph (3) .
(9) Failure to comply with the requirements of subparagraph (B) of
paragraph (3) shall not invalidate any covenants or restrictions
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recorded pursuant to subparaqraph (A} of paragraph (3) .
(g) "Housing, " as used in this section, includes residential
hotels, as defined in subdivision (k) of Section 37912 , and
emergency shelters, as defined in Section 50801 , The
definitions of "lower income households, " "very low income
households, " and "extremely low income households" in Sections
50079. 5, 50105, and 50106 shall apply to this section. "Longest
feasible time, " as used in this section, includes, but is not limited
�o, urlimited duration.
(h) "Increasing, improving, and preserving the community's supply
of low- and moderate-income housing, " as used in this section and in
Section 33339 .2, includes the preservation of rental housing units
assisted by federal, state, or local government on the condition that
units remain affordable to, and occupied by, low- and
moderate-income households, including extremely low and very low
ir,come households, for the longest feasible time, but not less than
55 years, beyond the date the subsidies and use restrictions could be
terminated ana the assisted hous=ng units converted to market rate
rer.tals. In preserving these units the agency shall require that the
units remain affordable to, and occupied by, persons and families of
low- and moderate-income and extremely low and very low income
households for the longest feasible time but not less than 55 years.
However, the agency may replace rental units with equally affordable
and comparable rental units in another location within the communi.ty
if (1) the replacement units in another location are available for
occupancy prior to the displacement of any persons and families of
low or mod�rate income residinq in the units to be replaced and (2)
the comparabie replacement units are not developed with moneys from
the Low and Moderate Tncome Housing Fund.
{i) Agencies that have more than one project area may satisfy the
requirements of Sections 33334 .2 and 33334 . 6 and of this section by
allocatinq, in any fiscal year, less than 20 percent in one project
area, if the difference between the amount allocated and the 20
percent required is instead allocated, in that same fiscal year, to
the Low and Moderate Income Housing Fund from tax increment revenues
from other. project areas. Prior to allocating funds pursuant to this
subdivision, the agency shall make the finding required by
subdivision (g) of Section 33339 .2.
(j ) I'unds from the Low and Moderate Income Housing Fund shall not
be used to the extent that other. reasonable means of private or
commercia.l financing of the new or substantially rehabilitated units
at the same level of af£ordability and quantity are reasonably
available to the agency or to the owner of the units. Prior to the
expenditure of funds from the I.,ow and Moderate Income Hous.ing Fund
for new or subsLantia.l.ly rehabilitated housing units, wher.e those
funds will exceed 50 percent of the cost of producing the units, the
agency shall find, based on substantial evidence, that the use of the
�unds is necessary because the agency or owner of the units has made
a good faith attempt but been unable to obtain commercial or private
means of financinq the units at the same 1eve1 of affordability and
quantity.
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