BILL NUMBER: SB 701 CHAPTERED
BILL TEXT
CHAPTER 782
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2002
APPROVED BY GOVERNOR SEPTEMBER 21, 2002
PASSED THE SENATE AUGUST 19, 2002
PASSED THE ASSEMBLY AUGUST 8, 2002
AMENDED IN ASSEMBLY JULY 25, 2002
AMENDED IN ASSEMBLY JULY 2, 2002
AMENDED IN ASSEMBLY JUNE 24, 2002
AMENDED IN ASSEMBLY JUNE 10, 2002
AMENDED IN ASSEMBLY APRIL 1, 2002
AMENDED IN SENATE JANUARY 7, 2002
INTRODUCED BY Senator Torlakson
FEBRUARY 23, 2001
An act to amend Sections 33333.4, 33333.6, 33333.8, 33333.10,
33333.11, 33334.2, 33334.3, 33334.4, 33334.14, 33334.22, 33411.3,
33413, 33487, 33490, 33492.13, 50052.5, 50053, 50079.5, and 50105 of,
to amend and renumber Section 33413.5 of, to add and repeal Sections
33334.28 and 33413.8 of, and to repeal Sections 33333.13 and 33411.5
of, the Health and Safety Code, relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 701, Torlakson. Redevelopment.
(1) The existing Community Redevelopment Law prohibits the
Redevelopment Agency of the City of Oakland from receiving specified
property tax revenue that the East Bay Regional Park District would
be entitled to receive if a redevelopment plan had not been amended.
This bill would delete this prohibition.
(2) Existing law requires a redevelopment agency to use moneys in
its Low and Moderate Income Housing Fund to increase, improve, and
preserve the supply of low- and moderate-income housing, which is
defined to include the preservation of certain units for a specified
period of time.
This bill, instead, would require those units to be preserved for
the longest feasible time, but not less than 55 years. It would also
require the redevelopment agency to comply with its affordable
housing obligation prior to exceeding a limit on the number of tax
dollars that may be divided and allocated if required by specified
provisions.
(3) Existing law requires a redevelopment agency that adopts a
redevelopment plan to also adopt an implementation plan containing
prescribed information, including how the project will implement,
among other things, a requirement that the agency expend, over the
duration of the implementation plan, the moneys in the Low and
Moderate Income Housing Fund to assist housing for persons of low
income and very low income in at least the same proportion as the
total 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, and to assist housing
that is available to families with children, as prescribed.
This bill would, among other things, require the implementation
plan to address specified matters relating to that requirement. It
would, until January 6, 2012, exempt the Redevelopment Agency of the
City of Covina from specified expenditure requirements regarding
these moneys.
(4) Existing law requires the agency to periodically hold a
hearing to review the redevelopment plan and the implementation plan,
and requires notice of that hearing to be published, as specified.
This bill would require that review to address prescribed matters
relating to replacement dwelling units, project area housing, and the
disposition of Low and Moderate Income Housing Fund moneys. The
bill would additionally require notice of that hearing to also be
mailed to persons and agencies that have requested notice.
(5) Existing law authorizes until January 1, 2006, the
Redevelopment Agency for the City of Lancaster to purchase or
otherwise acquire, or cause by regulation or agreement the purchase
or other acquisition of, long-term affordability covenants on
mobilehome parks in which residents rent spaces and either rent or
own the mobilehome occupying their spaces, that restrict the cost of
renting or purchasing those units, under prescribed conditions.
This bill would authorize until January 1, 2006, the Redevelopment
Agency for the City of Fairfield to purchase or otherwise acquire,
or cause by regulation or agreement the purchase or other acquisition
of, long-term affordability covenants on mobilehome parks in which
residents rent spaces and either rent or own the mobilehome occupying
their spaces, that restrict the cost of renting or purchasing those
units, under prescribed conditions.
(6) The bill would make additional conforming and clarifying
changes relating to redevelopment agency assistance for low- and
moderate-income housing units.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33333.4 of the Health and Safety Code is
amended to read:
33333.4. (a) Every legislative body that adopted a final
redevelopment plan prior to October 1, 1976, that contains the
provisions set forth in Section 33670 but does not contain all of the
limitations required by Section 33333.2, shall adopt an ordinance on
or before December 31, 1986, that contains all of the following:
(1) A limitation on the number of dollars of taxes that may be
divided and allocated to the redevelopment agency pursuant to the
plan, including any amendments to the plan. Taxes shall not be
divided and shall not be allocated to the redevelopment agency beyond
that limitation, except as necessary to comply with subdivision (a)
of Section 33333.8.
(2) A time limit on the establishing of loans, advances, and
indebtedness to finance in whole, or in part, the redevelopment
project. No loans, advances, or indebtedness to be repaid from the
allocation of taxes shall be established or incurred by the agency
beyond the time limitation, except as necessary to comply with
subdivision (a) of Section 33333.8.
(3) A time limit, not to exceed 12 years, for commencement of
eminent domain proceedings to acquire property within the project
area.
(b) The limitations established in the ordinance adopted pursuant
to this section shall apply to the redevelopment plan as if the
redevelopment plan had been amended to include those limitations.
However, in adopting the ordinance, neither the legislative body nor
the agency is required to comply with Article 12 (commencing with
Section 33450) or any other provision of this part relating to the
amendment of redevelopment plans.
(c) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit allocation of taxes to
an agency to the extent required to eliminate project deficits
created under subdivision (g) of Section 33334.6 in accordance with
the plan adopted pursuant thereto for the purpose of eliminating the
deficit or to comply with subdivision (a) of Section 33333.8. In the
event of a conflict between these limitations and the obligations
under Section 33334.6 or subdivision (a) of Section 33333.8, the
legislative body shall amend the ordinance adopted pursuant to this
section to modify the limitations to the extent necessary to permit
compliance with the plan adopted pursuant to subdivision (g) of
Section 33334.6, to permit compliance with subdivision (a) of Section
33333.8, and to allow full expenditure of moneys in the agency's Low
and Moderate Income Housing Fund in accordance with Section 33334.3.
The procedure for amending the ordinance pursuant to this
subdivision shall be the same as for adopting the ordinance under
subdivision (b).
(d) This section shall not be construed to allow the impairment of
any obligation or indebtedness incurred by the legislative body or
the agency pursuant to this part.
(e) In any litigation to challenge or attack any ordinance adopted
pursuant to this section, the court shall sustain the actions of the
legislative body and the agency unless the court finds those actions
were arbitrary or capricious. The Legislature finds and declares
that this is necessary because redevelopment agencies with project
areas established prior to October 1, 1976, have incurred existing
obligations and indebtedness and have adopted projects, programs, and
activities with the authority to receive and pledge the entire
allocation of taxes authorized by Section 33670 and that it is
necessary to protect against the possible impairment of existing
obligations and indebtedness and to allow the completion of adopted
projects and programs.
(f) The ordinance adopted by the legislative body in compliance
with this section does not relieve any agency of its obligations
under Section 33333.8, 33334.2, 33334.3, Article 9 (commencing with
Section 33410), or any other requirement contained in this part.
(g) A redevelopment plan adopted on or after October 1, 1976, and
prior to January 1, 1994, containing the provisions set forth in
Section 33670, shall also contain:
(1) A limitation on the number of dollars of taxes that may be
divided and allocated to the agency pursuant to the plan, including
any amendments to the plan. Taxes shall not be divided and shall not
be allocated to the agency beyond this limitation, except pursuant
to amendment of the redevelopment plan, or as necessary to comply
with subdivision (a) of Section 33333.8.
(2) A time limit, not to exceed 12 years, for commencement of
eminent domain proceedings to acquire property within the project
area. This time limit may be extended only pursuant to amendment of
the redevelopment plan.
SEC. 2. Section 33333.6 of the Health and Safety Code is amended
to read:
33333.6. The limitations of this section shall apply to every
redevelopment plan adopted on or before December 31, 1993.
(a) The effectiveness of every redevelopment plan to which this
section applies shall terminate at a date that shall not exceed 40
years from the adoption of the redevelopment plan or January 1, 2009,
whichever is later. After the time limit on the effectiveness of
the redevelopment plan, the agency shall have no authority to act
pursuant to the redevelopment plan except to pay previously incurred
indebtedness, to comply with Section 33333.8 and to enforce existing
covenants, contracts, or other obligations.
(b) Except as provided in subdivisions (f) and (g), a
redevelopment agency may not pay indebtedness or receive property
taxes pursuant to Section 33670 after 10 years from the termination
of the effectiveness of the redevelopment plan pursuant to
subdivision (b).
(c) (1) If plans that had different dates of adoption were merged
on or before December 31, 1993, the time limitations required by this
section shall be counted individually for each merged plan from the
date of the adoption of each plan. If an amendment to a
redevelopment plan added territory to the project area on or before
December 31, 1993, the time limitations required by this section
shall commence, with respect to the redevelopment plan, from the date
of the adoption of the redevelopment plan, and, with respect to the
added territory, from the date of the adoption of the amendment.
(2) If plans that had different dates of adoption are merged on or
after January 1, 1994, the time limitations required by this section
shall be counted individually for each merged plan from the date of
the adoption of each plan.
(d) (1) Unless a redevelopment plan adopted prior to January 1,
1994, contains all of the limitations required by this section and
each of these limitations does not exceed the applicable time limits
established by this section, the legislative body, acting by
ordinance on or before December 31, 1994, shall amend every
redevelopment plan adopted prior to January 1, 1994, either to amend
an existing time limit that exceeds the applicable time limit
established by this section or to establish time limits that do not
exceed the provisions of subdivision (b) or (c).
(2) The limitations established in the ordinance adopted pursuant
to this section shall apply to the redevelopment plan as if the
redevelopment plan had been amended to include those limitations.
However, in adopting the ordinance required by this section, neither
the legislative body nor the agency is required to comply with
Article 12 (commencing with Section 33450) or any other provision of
this part relating to the amendment of redevelopment plans.
(e) (1) If a redevelopment plan adopted prior to January 1, 1994,
contains one or more limitations required by this section, and the
limitation does not exceed the applicable time limit required by this
section, this section shall not be construed to require an amendment
of this limitation.
(2) A redevelopment plan adopted prior to January 1, 1994, that
has a limitation shorter than the terms provided in this section may
be amended by a legislative body by adoption of an ordinance on or
after January 1, 1999, but on or before December 31, 1999, to extend
the limitation, provided that the plan as so amended does not exceed
the terms provided in this section. In adopting this ordinance,
neither the legislative body nor the agency is required to comply
with Section 33354.6 or Article 12 (commencing with Section 33450) or
any other provision of this part relating to the amendment of
redevelopment plans. On or after January 1, 2002, a redevelopment
plan may be amended by a legislative body by adoption of an ordinance
to eliminate the time limit on the establishment of loans, advances,
and indebtedness required by this section prior to January 1, 2002.
In adopting this ordinance, neither the legislative body nor the
agency is required to comply with Section 33354.6 or Article 12
(commencing with Section 33450) or any other provision of this part
relating to the amendment of redevelopment plans, except that the
agency shall make the payment to affected taxing entities required by
Section 33607.7.
(f) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit the allocation of taxes
to an agency to the extent required to comply with Section 33333.8.
In the event of a conflict between these limitations and the
obligations under Section 33333.8, the limitations established in the
ordinance shall be suspended pursuant to Section 33333.8.
(g) This section shall not be construed to affect the validity of
any bond, indebtedness, or other obligation, including any mitigation
agreement entered into pursuant to Section 33401, authorized by the
legislative body, or the agency pursuant to this part, prior to
January 1, 1994. This section shall not be construed to affect the
right of an agency to receive property taxes, pursuant to Section
33670, to pay the bond, indebtedness, or other obligation.
(h) A redevelopment agency shall not pay indebtedness or receive
property taxes pursuant to Section 33670, with respect to a
redevelopment plan adopted prior to January 1, 1994, after the date
identified in subdivision (b) or the date identified in the
redevelopment plan, whichever is earlier, except as provided in
paragraph (2) of subdivision (e), in subdivision (g), or in Section
33333.8.
(i) The Legislature finds and declares that the amendments made to
this section by the act that adds this subdivision are intended to
add limitations to the law on and after January 1, 1994, and are not
intended to change or express legislative intent with respect to the
law prior to that date. It is not the intent of the Legislature to
affect the merits of any litigation regarding the ability of a
redevelopment agency to sell bonds for a term that exceeds the limit
of a redevelopment plan pursuant to law that existed prior to January
1, 1994.
(j) If a redevelopment plan is amended to add territory, the
amendment shall contain the time limits required by Section 33333.2.
SEC. 3. Section 33333.8 of the Health and Safety Code is amended
to read:
33333.8. (a) Every redevelopment agency shall comply with and
fulfill its obligations with regard to the provision of affordable
housing as required by this part prior to the time limit on the
effectiveness of the redevelopment plan established pursuant to
Sections 33333.2, 33333.6, and 33333.10, and before the agency
exceeds a limit on the number of dollars of taxes that may be divided
and allocated to the redevelopment agency if required by Section
33333.4 or the limit on the number of dollars of taxes in a
redevelopment plan. A legislative body may not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with its affordable housing obligations. Notwithstanding
any other provision of law, this section shall apply to each
redevelopment agency and each redevelopment project area established
or merged pursuant to this part and Part 1.5 (commencing with Section
34000), including project areas authorized pursuant to this chapter
and each individual project area that is authorized pursuant to any
other provision of law.
(1) The affordable housing obligations specified in subdivision
(a) shall include all of the following:
(A) The obligation to make deposits to and expenditures from the
Low and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, 33334.4, 33334.6, 33487, 33492.16, and other similar and
related statutes.
(B) The obligation to eliminate project deficits pursuant to
Sections 33334.6, 33487, 33492.16, and other similar and related
statutes.
(C) The obligation to expend or transfer excess surplus funds
pursuant to Section 33334.12 and other similar and related statutes.
(D) The obligation to provide relocation assistance pursuant to
Article 9 (commencing with Section 33410), Section 7260 of the
Government Code, or other applicable relocation laws.
(E) The obligation to provide replacement housing pursuant to
subdivision (a) of Section 33413, Article 9 (commencing with Section
33410), and other similar and related statutes.
(F) The obligation to provide inclusionary housing pursuant to
Section 33413 and other similar and related statutes and ordinances.
(2) A redevelopment agency shall not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with these obligations.
(b) If, on the date of the time limit on the effectiveness of the
redevelopment plan, a redevelopment agency has not complied with
subdivision (a), the time limit on the effectiveness of the
redevelopment plan, and, if necessary, the time limit for repayment
of indebtedness, shall be suspended until the agency has complied
with subdivision (a). In addition, the agency shall receive and use
all tax increment funds that are not pledged to repay indebtedness
until the agency has fully complied with its obligations.
(c) If, on the date of the time limit on the repayment of
indebtedness, the agency has not complied with subdivision (a), the
time limit on the repayment of indebtedness shall be suspended until
the agency has complied with subdivision (a). In addition, the
agency shall receive and use tax increment funds until the agency has
fully complied with its obligations.
(d) If, on the date of the time limit on the repayment of
indebtedness, the agency has complied with its obligations under
subdivision (a) and has moneys remaining in the Low and Moderate
Income Housing Fund, the agency shall transfer the remaining moneys
to a low and moderate income housing fund or account for a different
project area within the agency's jurisdiction, if one exists, or if a
different project area does not exist, the agency shall either
transfer the remaining moneys to a special fund of the community or
to the community or county housing authority. The community,
community housing authority, or county housing authority to which the
remaining moneys are transferred shall utilize the moneys for the
purposes of, and subject to the same restrictions that are applicable
to, the redevelopment agency under this part.
(e) If a redevelopment plan provides a limit on the total amount
of tax increment funds that may be received by a redevelopment agency
for any project area, and if that limit is reached prior to the
agency complying with its obligations pursuant to subdivision (a),
that limit is suspended until the agency has complied with
subdivision (a) and the agency shall receive and use tax increment
funds until the agency has fully complied with its obligations.
(f) If an agency fails to comply with its obligations pursuant to
this section, any person may seek judicial relief. The court shall
require the agency to take all steps necessary to comply with those
obligations, including, as necessary, the adoption of ordinances, to
incur debt, to obtain tax increments, to expend tax increments, and
to enter into contracts as necessary to meet its housing obligations
under this part.
SEC. 4. Section 33333.10 of the Health and Safety Code is amended
to read:
33333.10. (a) (1) Notwithstanding the time limits in subdivisions
(a) and (b) of Section 33333.6, an agency that adopted a
redevelopment plan on or before December 31, 1993, may, pursuant to
this section, amend that plan to extend the time limit on
effectiveness of the plan for up to 10 additional years beyond the
limit allowed by subdivision (a) of Section 33333.6.
(2) In addition, the agency may, pursuant to this section, amend
that plan to extend the time limit on the payment of indebtedness and
receipt of property taxes to be not more than 10 years from the
termination of the effectiveness of the redevelopment plan as that
time limit has been amended pursuant to paragraph (1).
(b) A redevelopment plan may be amended pursuant to subdivision
(a) only after the agency finds, based on substantial evidence, that
both of the following conditions exist:
(1) Significant blight remains within the project area.
(2) This blight cannot be eliminated without extending the
effectiveness of the plan and the receipt of property taxes.
(c) As used in this section:
(1) "Blight" has the same meaning as that term is given in Section
33030.
(2) "Significant" means important and of a magnitude to warrant
agency assistance.
(3) "Necessary and essential parcels" means parcels that are not
blighted but are so necessary and essential to the elimination of the
blight that these parcels should be included within the portion of
the project area in which tax increment funds may be spent.
"Necessary and essential parcels" are (A) parcels that are adjacent
to one or more blighted parcels that are to be assembled in order to
create a parcel of adequate size given present standards and market
conditions, and (B) parcels that are adjacent or near parcels that
are blighted on which it is necessary to construct a public
improvement to eliminate the blight.
(d) For purposes of this section, significant blight can exist in
a project area even though blight is not prevalent in a project area.
The report submitted to the legislative body pursuant to Section
33352 shall identify on a map the portion of the project area in
which significant blight remains.
(e) After the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, except for funds deposited in the Low and
Moderate Income Housing Fund pursuant to Section 33334.2 or 33334.6,
the agency shall spend tax increment funds only within the portion of
the project area that has been identified in the report adopted
pursuant to Section 33352 as the area containing blighted parcels and
necessary and essential parcels. Except as otherwise limited by
subdivisions (f) and (g), agencies may continue to spend funds
deposited in the Low and Moderate Income Housing Fund in accordance
with this division.
(f) (1) Except as otherwise provided in this subdivision, after
the limit on the payment of indebtedness and receipt of property
taxes that would have taken effect, but for the amendment pursuant to
this section, agencies shall only spend moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving the community's supply of housing at
affordable housing cost to persons and families of low, very low, or
extremely low income, as defined in Sections 50079.5, 50093, 50105,
and 50106. During this period, an agency that has adopted an
amendment pursuant to subdivision (a) may use moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving housing at affordable housing cost to
persons and families of moderate income as defined in Section 50093.
However, this amount shall not exceed, in a five-year period, the
amount of moneys from the Low and Moderate Income Housing Fund that
are used to increase, improve, and preserve housing at affordable
housing cost to persons and families of extremely low income, as
defined in Section 50106. In no case shall the amount expended for
housing for persons and families of moderate income exceed 15 percent
of the annual amount deposited in the Low and Moderate Income
Housing Fund during a five-year period and the number of housing
units affordable to moderate-income persons shall not exceed the
number of housing units affordable to extremely low income persons.
(2) Commencing with the first fiscal year that commences after the
date of the adoption of an amendment pursuant to subdivision (a) and
until the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, an agency that has adopted an amendment
pursuant to subdivision (a) may use moneys from the Low and Moderate
Income Housing Fund for the purpose of increasing, improving, and
preserving housing at affordable housing cost to persons and families
of moderate income as defined in Section 50093. However, this
amount shall not exceed, in a five-year period, 15 percent of the
amount of moneys deposited in the Low and Moderate Income Housing
Fund during that five-year period and shall only be used to assist
housing projects in which no less than 49 percent of the units are
affordable to and occupied by persons and families of low, very low,
or extremely low income. An agency may spend an additional amount of
moneys in the same or other housing projects to assist housing units
affordable to and occupied by moderate-income persons. However,
this amount shall not exceed the lesser of: the amount of moneys
spent to increase, improve, and preserve housing at affordable
housing cost to persons and families of extremely low income as
defined in Section 50106, or 5 percent of the moneys deposited in the
Low and Moderate Income Housing Fund during that five-year period.
(g) (1) Except as provided in paragraph (2) or (3), commencing
with the first fiscal year that commences after the date of adoption
of an amendment pursuant to subdivision (a), not less than 30 percent
of all taxes that are allocated to the agency pursuant to Section
33670 from the redevelopment project area so amended shall be
deposited into that project's Low and Moderate Income Housing Fund
for the purposes specified in subdivision (f).
(2) In any fiscal year, the agency may deposit less than the
amount required by paragraph (1), but not less than the amount
required by Section 33334.2 or 33334.6, into the Low and Moderate
Income Housing Fund if the agency finds that the difference between
the amount deposited and the amount required by paragraph (1) is
necessary to make principal and interest payments during that fiscal
year on bonds sold by the agency to finance or refinance the
redevelopment project prior to six months before the date of adoption
of the amendment pursuant to subdivision (a). Bonds sold by the
agency prior to six months before the date of the adoption of the
amendment pursuant to subdivision (a) may only be refinanced,
refunded, or restructured after the date of the amendment pursuant to
subdivision (a). However, for purposes of this section, bonds
refinanced, refunded, or restructured after the date of the amendment
pursuant to subdivision (a) may only be treated as if sold on the
date the original bonds were sold if (A) the net proceeds were used
to refinance the original bonds, (B) there is no increase in the
amount of principal at the time of refinancing, restructuring, or
refunding, and (C) the time during which the refinanced indebtedness
is to be repaid does not exceed the date on which the existing
indebtedness would have been repaid.
(3) No later than 120 days prior to depositing less than the
amount required by paragraph (1) into the Low and Moderate Income
Housing Fund, the agency shall adopt, by resolution after a noticed
public hearing, a finding that the difference between the amount
allocated and the amount required by paragraph (1) is necessary to
make payments on bonds sold by the agency to finance or refinance the
redevelopment project and identified in the preliminary report
adopted pursuant to paragraph (9) of subdivision (e) of Section
33333.11, and specifying the amount of principal remaining on the
bonds, the amount of annual payments, and the date on which the
indebtedness will be repaid. Notice of the time and place of the
public hearing shall be published in a newspaper of general
circulation once a week for at least two successive weeks prior to
the public hearing. The agency shall make available to the public
the proposed resolution no later than the time of the publication of
the first notice of the public hearing. A copy of the resolution
shall be transmitted to the Department of Housing and Community
Development within 10 days after adoption.
(4) Notwithstanding paragraph (1), an agency that sells bonds on
or after the date of adoption of an amendment pursuant to subdivision
(a), the repayment of which is to be made from taxes allocated to
the agency pursuant to Section 33670 from the project so amended, may
elect to subordinate up to 162/3 percent of its annual 30-percent
Low and Moderate Income Housing Fund deposit obligation to the
payment of debt service on the bonds. If the agency makes that
election and in any year the agency has insufficient tax-increment
revenue available to pay debt service on the bonds to which the funds
from the Low and Moderate Income Housing Fund are subordinated, the
agency may deposit less than the full 100 percent of its annual
30-percent Low and Moderate Income Housing Fund obligation but only
to the extent necessary to pay that debt service and in no event
shall less than 831/3 percent of that obligation be deposited into
the Low and Moderate Income Housing Fund for that year. The
difference between the amount that is actually deposited in the Low
and Moderate Income Housing Fund and the full 100 percent of the
agency's 30-percent Low and Moderate Income Housing Fund deposit
obligation shall constitute a deficit in the Low and Moderate Income
Housing Fund subject to repayment pursuant to paragraph (5).
(5) If, pursuant to paragraph (2) or (4), the agency deposits less
than 30 percent of the taxes allocated to the agency pursuant to
Section 33670 in any fiscal year in the Low and Moderate Income
Housing Fund, the amount equal to the difference between 30 percent
of the taxes allocated to the agency pursuant to Section 33670 for
each affected redevelopment project area and the amount actually
deposited in the Low and Moderate Income Housing Fund for that fiscal
year shall be established as a deficit in the Low and
Moderate Income Housing Fund. Any
new tax increment funds not encumbered pursuant to paragraph (2) or
(4) shall be utilized to reduce or eliminate the deficit prior to
entering into any new contracts, commitments, or indebtedness. The
obligations imposed by this section are hereby declared to be an
indebtedness of the redevelopment project to which they relate,
payable from taxes allocated to the agency pursuant to Section 33670
and, notwithstanding any other provision of law, shall constitute an
indebtedness of the agency with respect to the redevelopment project,
and the agency shall continue to receive allocations of taxes
pursuant to Section 33670 until the deficit is paid in full.
(h) An agency may not amend its redevelopment plan pursuant to
this section unless the agency first adopts a resolution that finds,
based on substantial evidence, all of the following:
(1) The community has adopted a housing element that the
department has determined pursuant to Section 65585 of the Government
Code to be in substantial compliance with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, or if applicable, an eligible
city or county within the jurisdiction of the San Diego Association
of Governments has adopted a self-certification of compliance with
its adopted housing element pursuant to Section 65585.1 of the
Government Code.
(2) During the three fiscal years prior to the year in which the
amendment is adopted, the agency has not been included in the report
sent by the Controller to the Attorney General pursuant to
subdivision (b) of Section 33080.8 as an agency that has a "major
violation" pursuant to Section 33080.8.
(3) After a written request by the agency and provision of the
information requested by the department, the department has issued a
letter to the agency, confirming that the agency has not accumulated
an excess surplus in its Low and Moderate Income Housing Fund. As
used in this section, "excess surplus" has the same meaning as that
term is defined in Section 33334.12. The department shall develop a
methodology to collect information required by this section.
Information requested by the department shall include a certification
by the agency's independent auditor on the status of excess surplus
and submittal of data for the department to verify the status of
excess surplus. The independent auditor shall make the required
certification based on the Controller's office guidelines which shall
include the methodology prescribed by the department pursuant to
subparagraph (D) of paragraph (3) of subdivision (g) of Section
33334.12. If the department does not respond to the written request
of the agency for this determination within 90 days after receipt of
the written request, compliance with this requirement shall be deemed
confirmed.
(i) Each redevelopment plan that has been adopted prior to January
1, 1976, that is amended pursuant to subdivision (a) shall also be
amended at the same time to make subdivision (b) of Section 33413
applicable to the redevelopment plan in accordance with paragraph (1)
of subdivision (d) of Section 33413.
(j) The amendment to the redevelopment plan authorized pursuant to
this section shall be made by ordinance pursuant to Article 12
(commencing with Section 33450). The ordinance shall be subject to
referendum as prescribed by law for ordinances of the legislative
body.
(k) This section shall not apply to a project area that retains
its eligibility to incur indebtedness and receive tax increment
revenues pursuant to Section 33333.7.
(l) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit allocation of taxes to
an agency to the extent required to comply with Section 33333.8. In
the event of a conflict between these limitations and the obligations
under Section 33333.8, the limitation established in the ordinance
shall be suspended pursuant to Section 33333.8.
SEC. 5. Section 33333.11 of the Health and Safety Code is amended
to read:
33333.11. (a) In order to adopt an amendment pursuant to Section
33333.10, the redevelopment agency shall also comply with the
procedures in this section.
(b) Before adopting an amendment of the plan, the agency shall
hold a public hearing on the proposed amendment. The notice of the
public hearing shall comply with Section 33452.
(c) Prior to the publication of the notice of the public hearing
on the proposed amendment, the agency shall consult with each
affected taxing agency with respect to the proposed amendment. At a
minimum, the agency shall give each affected taxing agency the
opportunity to meet with representatives of the agency for the
purpose of discussing the effect of the proposed amendment upon the
affected taxing agency and shall notify each affected taxing agency
that any written comments from the affected taxing agency will be
included in the report to the legislative body.
(d) Prior to the publication of the notice of the public hearing
on the proposed amendment, the agency shall consult with and obtain
the advice of members of a project area committee, if a project area
committee exists, and residents and community organizations and
provide to those persons and organizations, including the project
area committee, if any, the amendment prior to the agency's
submitting the amendment to the legislative body. In addition, the
preliminary report prepared pursuant to subdivision (e) shall be made
available at no cost to the project area committee, if one exists,
and residents and community organizations not later than 120 days
prior to holding a public hearing on the proposed amendment.
(e) No later than 120 days prior to holding a public hearing on
the proposed amendment, the agency shall send to each affected taxing
entity, as defined in Section 33353.2, the Department of Finance,
and the Department of Housing and Community Development, a
preliminary report that contains all of the following:
(1) A map of the project area that identifies the portion, if any,
of the project area that is no longer blighted and the portion of
the project area that is blighted and the portion of the project area
that contains necessary and essential parcels for the elimination of
the remaining blight.
(2) A description of the remaining blight.
(3) A description of the projects or programs proposed to
eliminate the remaining blight.
(4) A description of how the project or programs will improve the
conditions of blight.
(5) The reasons why the projects or programs cannot be completed
without extending the time limits on the effectiveness of the plan
and receipt of tax increment revenues.
(6) The proposed method of financing these programs or projects.
This description shall include the amount of tax increment revenues
that is projected to be generated during the period of the extension,
including amounts projected to be deposited into the Low and
Moderate Income Housing Fund and amounts to be paid to affected
taxing entities. This description shall also include sources and
amounts of moneys other than tax increment revenues that are
available to finance these projects or programs. This description
shall also include the reasons that the remaining blight cannot
reasonably be expected to be reversed or alleviated by private
enterprise or governmental action, or both, without the use of the
tax increment revenues available to the agency because of the
proposed amendment.
(7) An amendment to the agency's implementation plan that
includes, but is not limited to, the agency's housing
responsibilities pursuant to Section 33490. However, the agency
shall not be required to hold a separate public hearing on the
implementation plan pursuant to subdivision (d) of Section 33490 in
addition to the public hearing on the amendment to the redevelopment
plan.
(8) A new neighborhood impact report if required by subdivision
(m) of Section 33352.
(9) A description of each bond sold by the agency to finance or
refinance the redevelopment project prior to six months before the
date of adoption of the proposed amendment, and listing for each bond
the amount of remaining principal, the annual payments, and the date
that the bond will be paid in full.
(f) No later than 120 days prior to holding a public hearing on
the proposed amendment, the agency shall send the proposed amendment
to the planning commission. If the planning commission does not
report upon the amendment within 30 days after its submission by the
agency, the planning commission shall be deemed to have waived its
report and recommendations concerning the amendment.
(g) No later than 45 days prior to the public hearing on the
proposed amendment by the agency or the joint public hearing of the
agency and the legislative body, the agency shall notify each
affected taxing entity, the Department of Finance, the Department of
Housing and Community Development, and each individual and
organization that submitted comments on the preliminary report by
certified mail of the public hearing, the date of the public hearing,
and the proposed amendment. This notice shall be accompanied by the
report required to be prepared pursuant to subdivision (h).
(h) No later than 45 days prior to the public hearing on the
proposed amendment by the agency or the joint public hearing by the
agency and the legislative body, the agency shall adopt a report to
the legislative body containing all of the following:
(1) All of the information required to be contained in the
preliminary report prepared pursuant to subdivision (e).
(2) The report and recommendation of the planning commission.
(3) A negative declaration, environmental impact report, or other
document that is required in order to comply with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code.
(4) A summary of the consultations with the affected taxing
entities. If any of the affected taxing entities, a project area
committee, if any, residents, or community organizations have
expressed written objections or concerns with the proposed amendment
as part of these consultations, the agency shall include a response
to these concerns.
(5) A summary of the consultation with residents and community
organizations, including the project area committee, if any.
(i) After receiving the recommendation of the agency on the
proposed amendment, and not sooner than 30 days after the submission
of changes to the planning commission, the legislative body shall
hold a public hearing on the proposed amendment. The notice of the
public hearing shall comply with Section 33452.
(j) As an alternative to the separate public hearing required by
subdivision (i), the agency and the legislative body, with the
consent of both, may hold a joint public hearing on the proposed
amendment. Notice of this public hearing shall comply with Section
33452. When a joint public hearing is held and the legislative body
is also the agency, the legislative body may adopt the amended plan
with no actions required of the agency. If, after the public
hearing, the legislative body determines that the amendment to the
plan is necessary or desirable, the legislative body shall adopt an
ordinance amending the ordinance adopting the plan thus amended. The
ordinance adopting the amendment shall contain findings that both
(1) significant blight remains within the project area, and (2) the
blight cannot be eliminated without the extension of the
effectiveness of the plan and receipt of tax increment revenues.
(k) If an affected taxing entity, the Department of Finance, or
the Department of Housing and Community Development believes that
significant remaining blight does not exist within the portion of the
project area designated as blighted in the report to the legislative
body regarding a proposed amendment to be adopted pursuant to
Section 33333.10, the affected taxing entity, the Department of
Finance, or the Department of Housing and Community Development may
request the Attorney General to participate in the amendment process.
The affected taxing entity, the Department of Finance, or the
Department of Housing and Community Development shall request this
participation within 21 days after receipt of the notice of the
public hearing sent pursuant to subdivision (g). The Attorney
General shall determine whether or not to participate in the
amendment process. The Attorney General may consult with and request
the assistance of departments of the state and any other persons or
groups that are interested or that have expertise in redevelopment.
The Attorney General may participate in the amendment process by
requesting additional information from the agency, conducting his or
her own review of the project area, meeting with the agency and any
affected taxing entity, submitting evidence for consideration at the
public hearing, or presenting oral evidence at the public hearing.
No later than five days prior to the public hearing on the proposed
amendment, the Attorney General shall notify each affected taxing
agency, each department that has requested the Attorney General to
review the proposed amendment, and the redevelopment agency with
regard to whether the Attorney General will participate in the
amendment process and, if so, how he or she will participate, on
their behalf.
(l) The Attorney General may bring a civil action pursuant to
Section 33501 to determine the validity of an amendment adopted
pursuant to Section 33333.10. The Department of Finance and the
Department of Housing and Community Development shall be considered
interested persons for the purposes of protecting the interests of
the state pursuant to Section 863 of the Code of Civil Procedure in
any action brought with regard to the validity of an ordinance
adopting a proposed amendment pursuant to Section 33333.10. Either
department may request the Attorney General to bring an action
pursuant to Section 33501 to determine the validity of an amendment
adopted pursuant to Section 33333.10. Actions brought pursuant to
this subdivision are in addition to any other actions that may be
brought by the Attorney General or other persons.
SEC. 6. Section 33333.13 of the Health and Safety Code is
repealed.
SEC. 6.5. Section 33334.2 of the Health and Safety Code, as
amended by Section 2.2 of Chapter 738 of the Statutes of 2001, is
amended to read:
33334.2. (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 purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as defined by Sections 33334.22 and
50052.5, to persons and families of low or moderate income, as
defined in Section 50093, lower income households, as defined in
Section 50079.5, very low income households, as defined in Section
50105, and extremely low income households, as defined in Section
50106, that is occupied by these persons and families, unless one of
the following findings is made annually by resolution:
(1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner that
would benefit 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 housing needs of very low income households and persons and
families of low or moderate income.
(B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a 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 element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
This 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
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.
(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 element required by subdivision (b) of Section 65400 of
the Government Code. No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code. This
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
paragraph 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 determined 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 the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in 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, 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
contributions may include federal or state grants paid directly to a
community and which 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
employment opportunities, or because of any other direct or indirect
result of implementation of the redevelopment plan. No finding under
this subdivision may be made until 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 33410).
(B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include only those financial contributions that are directly
related to programs or activities authorized under subdivision (e) of
this section.
(C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on this paragraph. Agencies that make this finding after
June 30, 1993, shall show evidence that the agency entered into the
specific contractual obligation with the specific intention of making
a finding under this paragraph in order to provide sufficient
revenues to pay off the indebtedness.
(b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
department a copy of the finding, including the factual information
supporting the finding and other factual information in the housing
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, including very low income households, or
(2) a percentage less than 20 percent will be sufficient to meet the
community's need to improve, increase, and preserve the supply of
housing for low- and moderate-income households, including very low
income households. Within 10 days following the making of a finding
under paragraph (3) of subdivision (a), the agency shall send the
department a copy of the finding, including the factual information
supporting the finding that the community is making a substantial
effort to meet its existing and projected housing needs. Agencies
that make this finding after June 30, 1993, shall also submit
evidence 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 knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional 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 in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
(e) In carrying 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,
including the following:
(1) Acquire real property or building sites subject to Section
33334.16.
(2) Improve real property or building sites with onsite or offsite
improvements, but only if both (A) 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 (B) 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) and paragraph (2) of subdivision (f) of Section 33334.3.
If the newly constructed or rehabilitated housing units are part
of a larger project and the agency improves 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 offsite improvement. The maximum percentage of the total cost of
the improvement paid for by the agency shall be determined by
dividing the number of housing units that are affordable to low- or
moderate-income persons by the total number of housing units, if the
project is a housing project, or by dividing the cost of the
affordable housing units by the total cost of the project, if the
project is not a housing project.
(3) Donate real property to private or public persons or entities.
(4) Finance insurance premiums pursuant to Section 33136.
(5) Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined in Section 50106, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing 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 financing or carrying
charges.
(10) Maintain the community's supply of mobilehomes.
(11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
(f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However,
nothing in this section shall be construed as limiting in any way the
requirements of 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 housing pursuant to Section 33413 is
always of benefit to a project. Unless the legislative body finds,
before the redevelopment plan is adopted, that the provision of low-
and moderate-income housing outside the project area will be of
benefit to the project, the project area shall include property
suitable for low- and moderate-income housing.
(2) (A) The Contra Costa County Redevelopment Agency 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 these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
(i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
elements of their general plans that the department has determined to
be in compliance with the requirements of Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 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) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
(iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit 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 shall
apply:
(i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
(ii) If less than all the units in the development are affordable
to, and occupied by, low- or moderate-income persons, any agency
assistance may not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
(iii) The units in the development that are affordable to low- or
moderate-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) The requirements of 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) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2005, deletes or extends
that date.
SEC. 7. Section 33334.2 of the Health and Safety Code, as amended
by Section 2.4 of Chapter 738 of the Statutes of 2001, is amended to
read:
33334.2. (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 purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as defined by Section 50052.5, to persons
and families of low or moderate income, as defined in Section 50093,
lower income households, as defined by Section 50079.5, very low
income households, as defined in Section 50105, and extremely low
income households, as defined by Section 50106, that is occupied by
these persons and families, unless one of the following findings is
made annually by resolution:
(1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner that
would benefit 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 housing needs of very low income households and persons and
families of low or moderate income.
(B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a 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 element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
This 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
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.
(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 element required by subdivision (b) of Section 65400 of
the Government Code. No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code. This
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
paragraph 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 determined 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 the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in 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, 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 contributions may
include federal or state grants paid directly to a community and
which 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 employment
opportunities, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subdivision may be made until 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 33410).
(B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include 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
paragraph shall expire on June 30, 1993, except that the expiration
shall 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 finding after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intention of making a finding under this paragraph in order to
provide sufficient revenues to pay off the indebtedness.
(b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
Department of Housing and Community Development a copy of the
finding, including the factual information supporting the finding and
other factual information in the housing 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, including very low income households, or (2) a percentage
less than 20 percent will be sufficient to meet the community's need
to improve, increase, and preserve the supply of housing for low-
and moderate-income households, including very low income households.
Within 10 days following the making of a finding under paragraph
(3) of subdivision (a), the agency shall send the Department of
Housing 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 existing and projected
housing needs. Agencies that make this finding after June 30, 1993,
shall also submit evidence 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 knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional 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 in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
(e) In carrying 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,
including the following:
(1) Acquire real property or building sites subject to Section
33334.16.
(2) Improve real property or building sites with onsite or offsite
improvements, but only if both (A) 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 (B) 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) and paragraph (2) of subdivision (f) of Section 33334.3.
If the newly constructed or rehabilitated housing units are part
of a larger project and the agency improves 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 offsite improvement. The maximum percentage of the total cost of
the improvement paid for by the agency shall be determined by
dividing the number of housing units that are affordable to low- or
moderate-income persons by the total number of housing units, if the
project is a housing project, or by dividing the cost of the
affordable housing units by the total cost of the project, if the
project is not a housing project.
(3) Donate real property to private or public persons or entities.
(4) Finance insurance premiums pursuant to Section 33136.
(5) Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing 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 financing or carrying
charges.
(10) Maintain the community's supply of mobilehomes.
(11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
(f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However,
nothing in this section shall be construed as limiting in any way the
requirements of 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 housing pursuant
to Section 33413 is always of benefit to a project. Unless the
legislative body finds, before the redevelopment plan is adopted,
that the provision of low- and moderate-income housing outside the
project area will be of benefit to the project, the project area
shall include property suitable for low- and moderate-income housing.
(2) (A) The Contra Costa County Redevelopment Agency 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 these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
(i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
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
Chapter 3 of Division 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) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
(iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit 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 shall
apply:
(i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
(ii) If less than all the units in the development are affordable
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.
(iii) The units in the development that are affordable to, and
occupied by, low- or moderate-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) The requirements of 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) This section shall become operative on January 1, 2005.
SEC. 8. Section 33334.3 of the Health and Safety Code is amended
to read:
33334.3. (a) The funds that are required by Section 33334.2 or
33334.6 to be used for the purposes of increasing and improving 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 grants, of any kind from the Low and Moderate Income
Housing Fund, shall accrue to and be deposited in, the fund and may
only be used in the manner prescribed for the Low and Moderate Income
Housing 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 housing within the territorial jurisdiction of the
agency.
(d) It is the intent of the Legislature 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 housing 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 33334.2 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 agreements with contractors, including usual indirect
costs related thereto.
(B) Costs incurred by a nonprofit corporation which are not
directly attributable to a specific project.
(2) Legal, architectural, and engineering costs and other
salaries, wages, and costs directly related to the planning and
execution of a specific project which are authorized under
subdivision (e) of Section 33334.2 and which are incurred by a
nonprofit housing sponsor are not planning and administrative costs
for the purposes of this section, but are instead project costs.
(f) (1) The requirements of this subdivision apply to all new or
substantially rehabilitated housing 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 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, and occupied by, persons and families of
low or moderate income and very low income and extremely low income
households for the longest feasible time, but for not less than the
following periods of time:
(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 (A) 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 (B) 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 45-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 Housing Fund, including, but not limited to, an
equity sharing program which 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. The remainder of the
excess proceeds of the sale shall be allocated to the agency and
deposited in the Low and Moderate Income Housing Fund. Only the
units originally assisted by the agency shall be counted towards the
agency's obligations under Section 33413.
(C) If land on which those dwelling units are located is deleted
from the project area, the agency shall continue to require that
those units remain affordable as specified in this subdivision.
(2) The agency shall require the recording in the office of the
county recorder of covenants or restrictions implementing this
subdivision for each parcel or unit of real property subject to this
subdivision. Notwithstanding any other provision of law, the
covenants or restrictions shall run with the land and shall be
enforceable, against the original owner and successors in interest,
by the agency or the community.
(g) "Housing," as used in this section, includes residential
hotels, as defined in subdivision (k) of Section 37912. 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
to, unlimited duration.
(h) "Increasing, improving, and preserving the community's supply
of low- and moderate-income housing," as used in this section and in
Section 33334.2, 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
income households, for the longest feasible time, but not less than
55 years, beyond the date the subsidies and use restrictions could be
terminated and the assisted housing units converted to market rate
rentals. 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 community if (1) the replacement
units in another location 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 (2) the comparable
replacement units are not developed with moneys from the Low and
Moderate Income 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
allocating, 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 33334.2.
(j) Funds from the Low and Moderate Income Housing Fund shall not
be used to the extent that other reasonable means of private or
commercial financing of the new or substantially rehabilitated units
at the same level of affordability and quantity are reasonably
available to the agency or to the owner of the units. Prior to the
expenditure of funds from the Low and Moderate Income Housing Fund
for new or substantially rehabilitated housing units, where 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
funds 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 financing the units at the same level of affordability and
quantity.
SEC. 9. Section 33334.4 of the Health and Safety Code is amended
to read:
33334.4. (a) Except as specified in subdivision (d), each agency
shall expend over each 10-year period of the implementation plan, as
specified in clause (iii) of subparagraph (A) of paragraph (2) of
subdivision (a) of Section 33490, the moneys in the Low and Moderate
Income Housing Fund to assist housing for persons of low income and
housing for persons of very low income in at least the same
proportion as the total 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,
as those needs have been determined for the community pursuant to
Section 65584 of the Government Code. In determining compliance with
this obligation, the agency may adjust the proportion by subtracting
from the need identified for each income category, the number of
units for persons of that income category that are newly constructed
over the duration of the implementation plan with other locally
controlled government assistance and without agency assistance and
that are required to be affordable to, and occupied by, persons of
the income category for at least 55 years for rental housing and 45
years for ownership housing, except that in making an adjustment the
agency may not subtract units developed pursuant to a replacement
housing obligation under state or federal law.
(b) Each agency shall expend over the duration of each
redevelopment implementation plan, the moneys in the Low and Moderate
Income Housing Fund to assist housing that is available to all
persons regardless of age in at least the same proportion as the
population under age 65 years bears to the total population of the
community as reported in the most recent census of the United States
Census Bureau.
(c) An agency that has deposited in the Low and Moderate Income
Housing Fund over the first five years of the period of an
implementation plan an aggregate that is less than two million
dollars ($2,000,000) shall have an extra five years to meet the
requirements of this section.
(d) For the purposes of this section, "locally controlled" means
government assistance where the community or other local government
entity has the discretion and the authority to determine the
recipient and the amount of the assistance, whether or not the source
of the funds or other assistance is from the state or federal
government. Examples of locally controlled government assistance
include, but are not limited to, Community Development Block Grant
Program (42 U.S.C. Sec. 5301 and following) funds allocated to a city
or county, Home Investment Partnership Program (42 U.S.C. Sec. 12721
and following) funds allocated to a city or county, fees or funds
received by a city or county pursuant to a city or county authorized
program, and the waiver or deferral of city or other charges.
SEC. 10. Section 33334.14 of the Health and Safety Code is amended
to read:
33334.14. (a) The covenants or restrictions imposed by the agency
pursuant to subdivision (e) of Section 33334.3 may be subordinated
under any of the following alternatives:
(1) To a lien, encumbrance, or regulatory agreement under a
federal or state program when a federal or state agency is providing
financing, refinancing, or other assistance to the housing units or
parcels, if the federal or state agency refuses to consent to the
seniority of the agency's covenant or restriction on the basis that
it is required to maintain its lien, encumbrance, or regulatory
agreement or restrictions due to statutory or regulatory
requirements, adopted or approved policies, or other guidelines
pertaining to the financing, refinancing, or other assistance of the
housing units or parcels.
(2) To a lien, encumbrance, or regulatory agreement of a lender
other than the agency or from a bond issuance providing financing,
refinancing, or other assistance of owner-occupied units or parcels
where the agency makes a finding that an economically feasible
alternative method of financing, refinancing, or assisting the units
or parcels on substantially comparable terms and conditions, but
without subordination, is not reasonably available.
(3) To an existing lien, encumbrance, or regulatory agreement of a
lender other than the agency or from a bond issuance providing
financing, refinancing, or other assistance of rental units, where
the agency's funds are utilized for rehabilitation of the rental
units.
(4) To a lien, encumbrance, or regulatory agreement of a lender
other than the agency or from a bond issuance providing financing,
refinancing, or other assistance of rental units or parcels where the
agency makes a finding that an economically feasible alternative
method of financing, refinancing, or assisting the units or parcels
on substantially comparable terms and conditions, but without
subordination, is not reasonably available, and where the agency
obtains written commitments reasonably designed to protect the agency'
s investment in the event of default, including, but not limited to,
any of the following:
(A) A right of the agency to cure a default on the loan.
(B) A right of the agency to negotiate with the lender after
notice of default from the lender.
(C) An agreement that if prior to foreclosure of the loan, the
agency takes title to the property and cures the default on the loan,
the lender will not exercise any right it may have to accelerate the
loan by reason of the transfer of title to the agency.
(D) A right of the agency to purchase property from the owner at
any time after a default on the loan.
(b) Notwithstanding the definition of "construction and
rehabilitation" in subdivision (a) of Section 33487, an agency that
has merged redevelopment projects pursuant to Article 16 (commencing
with Section 33485) of Chapter 4, and that is required to deposit
taxes into the Low and Moderate Income Housing Fund pursuant to
subdivision (a) of Section 33487, may use any of the funds for the
purposes and in the manner permitted by Sections 33334.2 and 33334.3.
Nothing in this subdivision shall allow an agency with merged
project areas pursuant to Article 16 (commencing with Section 33485)
to utilize the provisions of paragraph (1), (2), or (3) of
subdivision (a) of Section 33334.2 so as to avoid or reduce its
obligations to deposit taxes from merged project areas into the Low
and Moderate Income Housing Fund.
SEC. 11. Section 33334.22 of the Health and Safety Code is amended
to read:
33334.22. (a) The Legislature finds and declares that in order to
avoid serious economic hardships and accompanying blight, it is
necessary to enact this section, which shall apply only within Santa
Cruz County, and which is enacted for the purpose of providing
housing assistance to very low, lower, and moderate-income
households.
(b) Notwithstanding Section 50052.5, any redevelopment agency
within Santa Cruz County may make assistance available from its low-
and moderate-income housing fund directly to a homebuyer for the
purchase of an owner-occupied home, and for purposes of that
assistance and this section, "affordable housing cost" shall not
exceed the following:
(1) For very low income households, the product of 40 percent
times 50 percent of the area median income adjusted for family size
appropriate for the unit.
(2) For lower income households whose gross incomes exceed the
maximum income for very low income households and do not exceed 70
percent of the area median income adjusted for family size, the
product of 40 percent times 70 percent of the area median income
adjusted for family size appropriate for the unit. In addition, for
any lower income household that has a gross income that equals or
exceeds 70 percent of the area median income adjusted for family
size, it shall be optional for any state or local funding agency to
require that the affordable housing cost not exceed 40 percent of the
gross income of the household.
(3) For moderate income households, affordable housing cost shall
not exceed the product of 40 percent times 110 percent of the area
median income adjusted for family size appropriate for the unit. In
addition, for any moderate-income household that has a gross income
that exceeds 110 percent of the area median income adjusted for
family size, it shall be optional for any state or local funding
agency to require that affordable housing cost not exceed 40 percent
of the gross income of the household.
(c) Any agency in Santa Cruz County that provides assistance
pursuant to this section shall include in the annual report to the
Controller, pursuant to Sections 33080 and 33080.1, all of the
following information:
(1) The sales prices of homes purchased with assistance from the
agency's Low and Moderate Income Housing Fund for each year from 2000
to 2004, inclusive.
(2) The sales prices of homes purchased and rehabilitated with
assistance from the agency's Low and Moderate Income Housing Fund for
each year from 2000 to 2004, inclusive.
(3) The incomes, and percentage of income paid for housing costs,
of all households that purchased, and that purchased and
rehabilitated, homes with assistance from the agency's Low and
Moderate Income Housing Fund for each year from 2000 to 2004,
inclusive.
(d) Except as provided in subdivision (b), all provisions of
Section 50052.5, including any definitions, requirements, standards,
and regulations adopted to implement those provisions, shall apply to
this section.
(e) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2005, deletes or extends
that date.
SEC. 12. Section 33334.28 is added to the Health and Safety Code,
to read:
33334.28. (a) Until January 1, 2012, subdivision (b) of Section
33334.4 shall not apply to the Redevelopment Agency of the City of
Covina insofar as it exceeds the authorized ratio due exclusively to
the use of Low and Moderate Income Housing Fund moneys to continue to
provide rental subsidies to households with members over the age of
65 years if those rental subsidies were initially provided to these
households prior to January 1, 2002.
(b) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
SEC. 13. Section 33411.3 of the Health and Safety Code is amended
to read:
33411.3. Whenever all or any portion of a redevelopment project
is developed with low- or moderate-income housing units and whenever
any low- or moderate-income housing units are developed with any
agency assistance or pursuant to Section 33413, the agency shall
require by contract or other appropriate means that the housing be
made available for rent or purchase to the persons and families of
low or moderate income displaced by the redevelopment project. Those
persons and families shall be given priority in renting or buying
that housing. However, failure to give that priority shall not
affect the validity of title to real property. The agency shall keep
a list of persons and families of low and moderate income displaced
by the redevelopment project who are to be given priority, and may
establish reasonable rules for determining the order or priority on
the list.
SEC. 14. Section 33411.5 of the Health and Safety Code is
repealed.
SEC. 15. Section 33413 of the Health and Safety Code, as amended
by Section 11.5 of Chapter 741 of the Statutes of 2001, is amended to
read:
33413. (a) Whenever dwelling units housing persons and families
of low or moderate income 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 has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at affordable housing costs within the territorial
jurisdiction of the agency. When dwelling units are destroyed or
removed after September 1, 1989, 75 percent of the replacement
dwelling units shall replace dwelling units available at affordable
housing cost in the or a lower income level of very low income
households, lower income households, and persons and families of low
and moderate income, as the persons displaced from those destroyed or
removed units. When dwelling units are destroyed or removed on or
after January 1, 2002, 100 percent of the replacement dwelling units
shall be available at affordable housing cost to persons in the same
or a lower income category (low, very low, or moderate), as the
persons displaced from those destroyed or removed units.
(b) (1) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
and 33333.10 at least 30 percent of all new and substantially
rehabilitated dwelling units developed by an agency shall be
available at affordable housing cost to, and occupied by, persons and
families of low or moderate income. Not less than 50 percent of the
dwelling units required to be available at affordable housing cost
to, and occupied by, persons and families of low or moderate income
shall be available at affordable housing cost to, and occupied by,
very low income households.
(2) (A) (i) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Section 33333.2, 33333.6,
and 33333.10 at least 15 percent of all new and substantially
rehabilitated dwelling units developed within a project area under
the jurisdiction of an agency by public or private entities or
persons other than the agency shall be available at affordable
housing cost to, and occupied by, persons and families of low or
moderate income. Not less than 40 percent of the dwelling units
required to be available at affordable housing cost to, and occupied
by, persons and families of low or moderate income shall be available
at affordable housing cost to, and occupied by, very low income
households.
(ii) To satisfy this paragraph, in whole or in part, the agency
may cause, by regulation or agreement, to be available, at affordable
housing cost, to, and occupied by, persons and families of low or
moderate income or to very low income households, as applicable, two
units outside a project area for each unit that otherwise would have
been required to be available inside a project area.
(iii) On or after January 1, 2002, as used in this paragraph and
in paragraph (1), "substantially rehabilitated dwelling units" means
all units substantially rehabilitated, with agency assistance. Prior
to January 1, 2002, "substantially rehabilitated dwelling units"
shall mean substantially rehabilitated multifamily rented dwelling
units with three or more units regardless of whether there is agency
assistance, or substantially rehabilitated, with agency assistance,
single-family dwelling units with one or two units.
(iv) As used in this paragraph and in paragraph (1), "substantial
rehabilitation" means rehabilitation, the value of which constitutes
25 percent of the after rehabilitation value of the dwelling,
inclusive of the land value.
(v) To satisfy this paragraph, the agency may aggregate new or
substantially rehabilitated dwelling units in one or more project
areas, if the agency finds, based on substantial evidence, after a
public hearing, that the aggregation will not cause or exacerbate
racial, ethnic, or economic segregation.
(B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the agency may purchase, or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of,
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and
families of low or very low income households, as applicable; or (ii)
are units that are presently available at affordable housing cost to
this same group of persons or families, but are units that the
agency finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
(C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost to, and
occupied by, persons and families of low or very low income, for the
longest feasible time but not less than 55 years for rental units and
45 years for owner-occupied units. Not more than 50 percent of the
units made available pursuant to paragraph (1) and subparagraph (A)
may be assisted through the purchase or acquisition of long-term
affordability covenants pursuant to subparagraph (B). Not less than
50 percent of the units made available through the purchase or
acquisition of long-term affordability covenants pursuant to
subparagraph (B) shall be available at affordable housing cost to,
and occupied by, very low income households.
(3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a). The requirements of this
subdivision shall apply, in the aggregate, to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units, unless an agency determines otherwise.
(4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area. The plan
shall be consistent with, and may be included within, the community's
housing element. The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle. The plan
shall ensure that the requirements of this subdivision are met every
10 years. If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period. The
plan shall contain the contents required by paragraphs (2), (3), and
(4) of subdivision (a) of Section 33490.
(c) (1) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, constructed, or price-restricted pursuant to subdivision
(a) or (b) remain available at affordable housing cost to, and
occupied by, persons and families of low-income, moderate-income, and
very low income households, respectively, for the longest feasible
time, but for not less than 55 years for rental units and 45 years
for homeownership units, except as set forth in paragraph (2).
(2) Notwithstanding paragraph (1), the agency may permit sales of
owner-occupied units prior to the expiration of the 45-year period
established by the agency for a price in excess of that otherwise
permitted under this subdivision pursuant to an adopted program that
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. The remainder of the excess proceeds of
the sale shall be allocated to the agency, and deposited into the Low
and Moderate Income Housing Fund. The agency shall, within three
years from the date of sale of units pursuant to this paragraph,
expend funds to make affordable an equal number of units at the same
income level as units sold pursuant to this paragraph. Only the
units originally assisted by the agency shall be counted towards the
agency's obligations under Section 33413.
(3) The requirements of this section shall be made enforceable in
the same manner as provided in paragraph (2) of subdivision (f) of
Section 33334.3.
(4) If land on which the dwelling units required by this section
are located is deleted from the project area, the agency shall
continue to require that those units remain affordable as specified
in this subdivision.
(d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas that are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976. In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area. Additionally, any agency may, by resolution, elect to make
all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976. In addition, subdivision
(b) shall apply to redevelopment plans adopted prior to January 1,
1976, for which an amendment is adopted pursuant to Section 33333.10,
except that subdivision (b) shall apply to those redevelopment plans
prospectively only so that the requirements of subdivision (b) shall
apply only to new and substantially rehabilitated dwelling units for
which the building permits are issued on or after the date that the
ordinance adopting the amendment pursuant to Section 33333.10 becomes
effective.
(2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
(e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
(f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
(1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units. Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
(2) The replacement units are affordable to and occupied by the
same income level of households as the destroyed or removed units.
(g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
(h) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 16. Section 33413 of the Health and Safety Code, as amended
by Section 11.6 of Chapter 741 of the Statutes of 2001, is amended to
read:
33413. (a) Whenever dwelling units housing persons and families
of low or moderate income 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 has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at
affordable housing cost within the territorial jurisdiction of the
agency. When dwelling units are destroyed or removed after September
1, 1989, 75 percent of the replacement dwelling units shall replace
dwelling units available at affordable housing cost to, and occupied
by, persons in the same or a lower income level of very low income
households, lower income households, and persons and families of low
and moderate income, as the persons displaced from those destroyed or
removed units. When dwelling units are destroyed or removed after
January 1, 2002, 100 percent of the replacement dwelling units shall
be available at affordable housing cost to, and occupied by, persons
in the same or a lower income category (low, very low, or moderate)
as the persons displaced from those destroyed or removed units.
(b) (1) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
and 33333.10, at least 30 percent of all new or rehabilitated
dwelling units developed by an agency shall be available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income. Not less than 50 percent of the dwelling
units required to be available at affordable housing cost to, and
occupied by, persons and families of low or moderate income shall be
available at affordable housing cost to, and occupied by, very low
income households.
(2) (A) (i) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
and 33333.10, at least 15 percent of all new or rehabilitated
dwelling units developed within the project area by public or private
entities or persons other than the agency shall be available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income. Not less than 40 percent of the dwelling
units required to be available at affordable housing cost to, and
occupied by, persons and families of low or moderate income shall be
available at affordable housing cost to, and occupied by, very low
income households.
(ii) To satisfy this paragraph, in whole or in part, the agency
may cause, by regulation or agreement, to be available, at affordable
housing cost to, and occupied by, persons and families of low or
moderate income or to very low income households, as applicable, two
units outside a project area for each unit that otherwise would have
had to be available inside a project area.
(iii) To satisfy the provisions of this paragraph, the agency may
aggregate new or rehabilitated dwelling units in one or more project
areas, if the agency finds, based on substantial evidence, after a
public hearing, that the aggregation will not cause or exacerbate
racial, ethnic, or economic segregation.
(B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the agency may purchase or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and
families of low or very low income households, as applicable; or (ii)
are units that are presently available at affordable housing cost to
this same group of persons or families, but are units that the
agency finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
(C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost to, and
occupied by, persons and families of low or very low income, for the
longest feasible time but not less than 55 years for rental units and
45 years for owner-occupied units. Not more than 50 percent of the
units made available pursuant to paragraph (1) and subparagraph (A)
may be assisted through the purchase of acquisition of long-term
affordability covenants pursuant to subparagraph (B). Not less than
50 percent of the units made available through the purchase or
acquisition of long-term affordability covenants pursuant to
subparagraph (B) shall be available at affordable housing cost to,
and occupied by, very low income households.
(3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a). The requirements of this
subdivision shall apply in the aggregate to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units.
(4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area. The plan
shall be consistent with, and may be included within, the community's
housing element. The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle. The plan
shall ensure that the requirements of this subdivision are met every
10 years. If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period. The
plan shall contain the contents required by paragraphs (2), (3), and
(4) of subdivision (a) of Section 33490.
(c) (1) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, constructed, or price-restricted pursuant to subdivision
(a) or (b) remain available at affordable housing cost to, and
occupied by, persons and families of low-income, moderate-income, and
very low income households, respectively, for the longest feasible
time, but for not less than 55 years for rental units and 45 years
for homeownership units, except for the following:
(2) Notwithstanding paragraph (1), the agency may permit sales of
owner-occupied units prior to the expiration of the 45-year period
for a price in excess of that otherwise permitted under this
subdivision pursuant to an adopted program that 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. The remainder of the excess proceeds of the sale
shall be allocated to the agency and deposited into the Low and
Moderate Income Housing Fund. The agency shall, within three years
from the date of sale of units under this paragraph, expend funds to
make affordable an equal number of units at the same income level as
units sold under this paragraph. Only the units originally assisted
by the agency shall be counted towards the agency's obligations under
Section 33413.
(3) The requirements of this section shall be made enforceable in
the same manner as provided in paragraph (2) of subdivision (f) of
Section 33334.3.
(4) If land on which dwelling units required by this section are
located is deleted from the project area, the agency shall continue
to require that those units remain affordable as specified in this
subdivision.
(d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas which are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976. In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area. Additionally, any agency may, by resolution, elect to make
all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976. In addition, subdivision
(b) shall apply to redevelopment plans adopted prior to January 1,
1976, for which an amendment is adopted pursuant to Section 33333.10,
except that subdivision (b) shall apply to those redevelopment plans
prospectively only so that the requirements of subdivision (b) shall
apply only to new and rehabilitated or substantially rehabilitated
dwelling units, as applicable, for which the building permits are
issued on or after the date that the ordinance adopting the amendment
pursuant to Section 33333.10 becomes effective.
(2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
(e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
(f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
(1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units. Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
(2) The replacement units are affordable to and occupied by the
same income level of households as the destroyed or removed units.
(g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
(h) This section shall become operative on January 1, 2006.
SEC. 17. Section 33413.5 of the Health and Safety Code, as added
by Chapter 491 of the Statutes of 2001, is amended and renumbered to
read:
33413.6. (a) To satisfy the requirements of paragraphs (1) and
(2) of subdivision (b) of Section 33413, the Redevelopment Agency for
the City of Lancaster, until January 1, 2006, may purchase, or
otherwise acquire or cause by regulation or agreement the purchase or
other acquisition of, long-term affordability covenants on
mobilehome parks in which residents rent spaces and either rent or
own the mobilehome occupying their spaces, that restrict the cost of
renting or purchasing those units that either: (1) are units that
are presently available at affordable housing cost to this same group
of persons or families, but are units that the agency finds, based
upon substantial evidence, after a public hearing, cannot reasonably
be expected to remain affordable to this same group of persons or
families; or (2) are not presently available at affordable housing
cost to persons and families of low- or very low income households,
as applicable.
(b) The long-term affordability covenants purchased or otherwise
acquired on a mobilehome park shall be required to be maintained on
the mobilehome park at affordable housing cost for occupancy by
persons and families of low and very low income for the longest
feasible time, but for not less than 55 years.
The long-term affordability covenants purchased or otherwise
acquired on the mobilehome parks shall also comply with the
requirements applicable to long-term affordability covenants
purchased or acquired pursuant to subparagraphs (B) and (C) of
paragraph (2) of subdivision (b) of Section 33413.
(c) For the purposes of this section, affordable housing costs
with respect to mobilehome parks shall be determined in the same
manner as multifamily rental housing, except that the calculation of
the affordable housing cost to persons and families in mobilehome
parks shall include the combined cost of all of the following:
(1) All costs for rental or purchase of the mobilehome park space,
including homeowners association fees, special assessments, and
required space maintenance.
(2) All costs for purchase or lease of the mobilehome coach,
including principal and interest on any mortgage, property taxes,
vehicle registration, and other fees.
(3) Insurance on the coach, not including its contents.
(4) Utilities.
The long-term affordability covenants with respect to a mobilehome
park shall include a provision that space rents shall not be
increased in a manner that results in the displacement of any park
tenants residing within the mobilehome park at the time of the
purchase, acquisition, regulation, or agreement resulting in the
long-term affordability covenants.
(d) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 18. Section 33413.8 is added to the Health and Safety Code,
to read:
33413.8. (a) To satisfy the requirements of paragraphs (1) and
(2) of subdivision (b) of Section 33413, the Redevelopment Agency of
the City of Fairfield, until January 1, 2006, may purchase or
otherwise acquire, or cause by regulation or agreement the purchase
or other acquisition of, long-term affordability covenants on
mobilehome parks in which residents rent spaces and either rent or
own the mobilehome occupying their spaces, that restrict the cost of
renting or purchasing those units if all of the following criteria
are met:
(1) On and after January 1, 1990, and based on substantial
evidence, the agency provided assistance to a mobilehome park that
was then available at affordable housing cost to very low, or
low-income persons or families but which could not reasonably be
expected to remain affordable to this same group of persons or
families.
(2) The agency assistance enabled the residents of the mobilehome
park to acquire ownership of the mobilehome park.
(3) At the time of providing the assistance, the agency required
that affordability covenants be recorded for the mobilehome park.
(4) On and after January 1, 2003, the agency provides additional
assistance to the mobilehome park and the long-term affordability
covenants are extended for the longest feasible time, but for not
less than 55 years.
(b) The long-term affordability covenants on mobilehome parks, as
extended pursuant to subdivision (a), shall also comply with the
requirements applicable to long-term affordability covenants
purchased or acquired pursuant to subparagraphs (B) and (C) of
paragraph (2) of subdivision (b) of Section 33413.
(c) For purposes of this section, affordable housing costs with
respect to mobilehome parks shall be determined in the same manner as
multifamily rental housing, except that the calculation of the
affordable housing cost to persons and families in mobilehome parks
shall include the combined cost of all of the following:
(1) All costs for purchase or lease of the mobilehome park space,
including homeowners' association fees, special assessments, and
required space maintenance.
(2) All costs for purchase or lease of the mobilehome coach,
including principal and interest on any mortgage, property taxes,
vehicle registration, and other fees.
(3) Insurance on the coach, not including its contents.
(4) Utilities.
(d) The long-term affordability covenants with respect to a
mobilehome park shall include a provision that space rents shall not
be increased in a manner that results in the displacement of any park
tenants residing within the mobilehome park at the time of the
purchase, acquisition, regulation, or agreement resulting in the
extension of the long-term affordability covenants.
(e) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 19. Section 33487 of the Health and Safety Code is amended to
read:
33487. (a) Subject to subdivisions (a) and (b) of Section 33486,
not less than 20 percent of all taxes that are allocated to the
redevelopment agency pursuant to Section 33670 for redevelopment
projects merged pursuant to this article, irrespective of the date of
adoption of the final redevelopment plans, shall be deposited by the
agency in the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3, or which shall be established for
purposes of this section. The agency shall use the moneys in this
fund to assist in the construction or rehabilitation of housing units
that will be available to, or occupied by, persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105, for the longest
feasible time period but not less than 55 years for rental units and
45 years for owner-occupied units. For the purposes of this
subdivision, "construction and rehabilitation" shall include
acquisition of land, improvements to land; the acquisition,
rehabilitation, or construction of structures; or the provision of
subsidies necessary to provide housing for persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105.
(b) The agency may use the funds set aside by subdivision (a)
inside or outside the project area. However, 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. This 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 housing pursuant to Section 33413 is of benefit to a
project.
The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
(c) If moneys deposited in the Low and Moderate Income Housing
Fund pursuant to this section have not been committed for the
purposes specified in subdivisions (a) and (b) for a period of six
years following deposit in that fund, the agency shall offer these
moneys to the housing authority that operates within the jurisdiction
of the agency, if activated pursuant to Section 34240, for the
purpose of constructing or rehabilitating housing as provided in
subdivisions (a) and (b). However, if no housing authority operates
within the jurisdiction of the agency, the agency may retain these
moneys for use pursuant to this section.
(d) If the agency deposits less than 20 percent of taxes allocated
pursuant to Section 33670, due to the provisions of subdivisions (a)
and (b) of Section 33486, in any fiscal year, a deficit shall be
created in the Low and Moderate Income Housing Fund in an amount
equal to the difference between 20 percent of the taxes allocated
pursuant to Section 33670 and the amount deposited in that year. The
deficit, if any, created pursuant to this section constitutes an
indebtedness of the project. The agency shall eliminate the deficit
by expending taxes allocated in years subsequent to creation of the
deficit and, until the time when that deficit has been eliminated, an
agency shall not incur new obligations for purposes other than those
set forth in Section 33487, except to comply with the terms of any
resolution or other agreement pledging taxes allocated pursuant to
Section 33670 that existed on the date of merger pursuant to this
article.
(e) Notwithstanding subdivision (d) of Section 33413, any agency
that merges its redevelopment project areas pursuant to this article
shall be subject to subdivisions (a) and (c) of Section 33413.
SEC. 20. Section 33490 of the Health and Safety Code is amended to
read:
33490. (a) (1) (A) On or before December 31, 1994, and each five
years thereafter, each agency that has adopted a redevelopment plan
prior to December 31, 1993, shall adopt, after a public hearing, an
implementation plan that shall contain the specific goals and
objectives of the agency for the project area, the specific programs,
including potential projects, and estimated expenditures proposed to
be made during the next five years, and an explanation of how the
goals and objectives, programs, and expenditures will eliminate
blight within the project area and implement the requirements of
Section 33333.10, if applicable, and Sections 33334.2, 33334.4,
33334.6, and 33413. After adoption of the first implementation plan,
the parts of the implementation plan that address Section 33333.10,
if applicable, and Sections 33334.2, 33334.4, 33334.6, and 33413
shall be adopted every five years either in conjunction with the
housing element cycle or the implementation plan cycle. The agency
may amend the implementation plan after conducting a public hearing
on the proposed amendment. If an action attacking the adoption,
approval, or validity of a redevelopment plan adopted prior to
January 1, 1994, has been brought pursuant to Chapter 5 (commencing
with Section 33500), the first implementation plan required pursuant
to this section shall be adopted within six months after a final
judgment or order has been entered. Subsequent implementation plans
required pursuant to this section shall be adopted pursuant to the
terms of this section, and as if the first implementation plan had
been adopted on or before December 31, 1994.
(B) Adoption of an implementation plan shall not constitute an
approval of any specific program, project, or expenditure and shall
not change the need to obtain any required approval of a specific
program, project, or expenditure from the agency or community. The
adoption of an implementation plan shall not constitute a project
within the meaning of Section 21000 of the Public Resources Code.
However, the inclusion of a specific program, potential project, or
expenditure in an implementation plan prepared pursuant to
subdivision (c) of Section 33352 in conjunction with a redevelopment
plan adoption shall not eliminate analysis of those programs,
potential projects, and expenditures in the environmental impact
report prepared pursuant to subdivision (k) of Section 33352 to the
extent that it would be otherwise required. In addition, the
inclusion of programs, potential projects, and expenditures in an
implementation plan shall not eliminate review pursuant to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code), at the time of the
approval of the program, project, or expenditure, to the extent that
it would be otherwise required.
(2) (A) A portion of the implementation plan shall address the
agency housing responsibilities and shall contain a section
addressing Section 33333.10, if applicable, and Sections 33334.2,
33334.4, and 33334.6, the Low and Moderate Income Housing Fund, and,
if subdivision (b) of Section 33413 applies, a section addressing
agency-developed and project area housing. The section addressing
the Low and Moderate Income Housing Fund shall contain:
(i) The amount available in the Low and Moderate Income Housing
Fund and the estimated amounts which will be deposited in the Low and
Moderate Income Housing Fund during each of the next five years.
(ii) A housing program with estimates of the number of new,
rehabilitated, or price-restricted units to be assisted during each
of the five years and estimates of the expenditures of moneys from
the Low and Moderate Income Housing Fund during each of the five
years.
(iii) A description of how the housing program will implement the
requirement for expenditures of moneys in the Low and Moderate Income
Housing Fund over a 10-year period for various groups as required by
Section 33334.4. For project areas to which subdivision (b) of
Section 33413 applies, the 10-year period within which Section
33334.4 is required to be implemented shall be the same 10-year
period within which subdivision (b) of Section 33413 is required to
be implemented. Notwithstanding the first sentence of Section
33334.4 and the first sentence of this clause, in order to allow
these two 10-year time periods to coincide for the first time period,
the time to implement the requirements of Section 33334.4 shall be
extended two years, and project areas in existence on December 31,
1993, shall implement the requirements of Section 33334.4 on or
before December 31, 2014, and each 10 years thereafter rather than
December 31, 2012. For project areas to which subdivision (b) of
Section 33413 does not apply, the requirements of Section 33334.4
shall be implemented on or before December 31, 2014, and each 10
years thereafter.
(iv) This requirement to include a description of how the housing
program will implement Section 33334.4 in the implementation plan
shall apply to implementation plans adopted pursuant to subdivision
(a) on or after December 31, 2002.
(B) For each project area to which subdivision (b) of Section
33413 applies, the section addressing the agency developed and
project area housing shall contain:
(i) Estimates of the number of new, substantially rehabilitated or
price-restricted residential units to be developed or purchased
within one or more project areas, both over the life of the plan and
during the next 10 years.
(ii) Estimates of the number of units of very low, low-, and
moderate-income households required to be developed within one or
more project areas in order to meet the requirements of paragraph (2)
of subdivision (b) of Section 33413, both over the life of the plan
and during the next 10 years.
(iii) The number of units of very low, low-, and moderate-income
households which have been developed within one or more project areas
which meet the requirements of paragraph (2) of subdivision (b) of
Section 33413.
(iv) Estimates of the number of agency developed residential units
which will be developed during the next five years, if any, which
will be governed by paragraph
(1) of subdivision (b) of Section 33413.
(v) Estimates of the number of agency developed units for very
low, low-, and moderate-income households which will be developed by
the agency during the next five years to meet the requirements of
paragraph (1) of subdivision (b) of Section 33413.
(C) The section addressing Section 33333.10, if applicable, and
Section 33334.4 shall contain all of the following:
(i) The number of housing units needed for very low income
persons, low-income persons, and moderate-income persons as each of
those needs have been identified in the most recent determination
pursuant to Section 65584 of the Government Code, and the proposed
amount of expenditures from the Low and Moderate Income Housing Fund
for each income group during each year of the implementation plan
period.
(ii) The total population of the community and the population
under 65 years of age as reported in the most recent census of the
United States Census Bureau.
(iii) A housing program that provides a detailed schedule of
actions the agency is undertaking or intends to undertake to ensure
expenditure of the Low and Moderate Income Housing Fund in the
proportions required by Section 33333.10, if applicable, and Section
33334.4.
(iv) For the previous implementation plan period, the amounts of
Low and Moderate Income Housing Fund moneys utilized to assist units
affordable to, and occupied by, extremely low income households, very
low income households, and low-income households; the number, the
location, and level of affordability of units newly constructed with
other locally controlled government assistance and without agency
assistance and that are required to be affordable to, and occupied
by, persons of low, very low, or extremely low income for at least 55
years for rental housing or 45 years for homeownership housing, and
the amount of Low and Moderate Income Housing Fund moneys utilized to
assist housing units available to families with children, and the
number, location, and level of affordability of those units.
(3) If the implementation plan contains a project that will result
in the destruction or removal of dwelling units that will have to be
replaced pursuant to subdivision (a) of Section 33413, the
implementation plan shall identify proposed locations suitable for
those replacement dwelling units.
(4) For a project area that is within six years of the time limit
on the effectiveness of the redevelopment plan established pursuant
to Section 33333.2, 33333.6, 33333.7, or 33333.10, the portion of the
implementation plan addressing the housing responsibilities shall
specifically address the ability of the agency to comply, prior to
the time limit on the effectiveness of the redevelopment plan, with
subdivision (a) of Section 33333.8, subdivision (a) of Section 33413
with respect to replacement dwelling units, subdivision (b) of
Section 33413 with respect to project area housing, and the
disposition of the remaining moneys in the Low and Moderate Income
Housing Fund.
(b) For a project area for which a redevelopment plan is adopted
on or after January 1, 1994, the implementation plan prepared
pursuant to subdivision (c) of Section 33352 shall constitute the
initial implementation plan and thereafter the agency after a public
hearing shall adopt an implementation plan every five years
commencing with the fifth year after the plan has been adopted.
Agencies may adopt implementation plans that include more than one
project area.
(c) Every agency, at least once within the five-year term of the
plan, shall conduct a public hearing and hear testimony of all
interested parties for the purpose of reviewing the redevelopment
plan and the corresponding implementation plan for each redevelopment
project within the jurisdiction and evaluating the progress of the
redevelopment project. The hearing required by this subdivision
shall take place no earlier than two years and no later than three
years after the adoption of the implementation plan. For a project
area that is within three years of the time limit on the
effectiveness of the redevelopment plan established pursuant to
Section 33333.2, 33333.6, 33333.7, or 33333.10, the review shall
specifically address those items in paragraph (4) of subdivision (a).
An agency may hold one hearing for two or more project areas if
those project areas are included within the same implementation plan.
(d) Notice of public hearings conducted pursuant to this section
shall be published pursuant to Section 6063 of the Government Code,
mailed at least three weeks in advance to all persons and agencies
that have requested notice, and posted in at least four permanent
places within the project area for a period of three weeks.
Publication, mailing, and posting shall be completed not less than 10
days prior to the date set for hearing.
SEC. 21. Section 33492.13 of the Health and Safety Code is amended
to read:
33492.13. (a) A redevelopment plan, adopted pursuant to this
chapter and containing the provisions set forth in Section 33670,
shall contain all of the following limitations:
(1) A limitation on the number of dollars of taxes which may be
divided and allocated to the redevelopment agency pursuant thereto.
Taxes shall not be divided and shall not be allocated to the
redevelopment agency beyond this limitation, except by amendment of
the redevelopment plan pursuant to Section 33354.6, or as necessary
to comply with subdivision (a) of Section 33333.8.
(2) (A) The time limit on the establishing of loans, advances, and
indebtedness to be paid with the proceeds of property taxes received
pursuant to Section 33670 to finance in whole or in part the
redevelopment project, which may not exceed 20 years from the date
the county auditor certifies pursuant to Section 33492.9, except by
amendment of the redevelopment plan as authorized by subparagraph
(B). The loans, advances, or indebtedness may be repaid over a
period of time longer than the time limit as provided in this
section. No loans, advances, or indebtedness to be repaid from the
allocation of taxes shall be established or incurred by the agency
beyond this time limitation, except as necessary to comply with
subdivision (a) of Section 33333.8.
(B) The time limitation established by subparagraph (A) may be
extended only by amendment of the redevelopment plan after the agency
finds, based on substantial evidence, that (i) substantial blight
remains within the project area; (ii) this blight cannot be
eliminated without the establishment of additional debt; and (iii)
the elimination of blight cannot reasonably be accomplished by
private enterprise acting alone or by the legislative body's use of
financing alternatives other than tax increment financing. However,
this amended time limitation may not exceed 30 years from the date
the county auditor certifies pursuant to Section 33492.9, except as
necessary to comply with subdivision (a) of Section 33333.8.
(3) A time limit, not to exceed 30 years from the date the county
auditor certifies pursuant to Section 33492.9, on the effectiveness
of the redevelopment plan. After the time limit on the effectiveness
of the redevelopment plan, the agency shall have no authority to act
pursuant to the redevelopment plan except to pay previously incurred
indebtedness, comply with subdivision (a) of Section 33333.8, and
enforce existing covenants or contracts.
(4) A time limit, not to exceed 45 years from the date the county
auditor certifies pursuant to Section 33492.9, to repay indebtedness
with the proceeds of property taxes received pursuant to Section
33670. After the time limit established pursuant to this paragraph,
an agency may not receive property taxes pursuant to Section 33670,
except as necessary to comply with subdivision (a) of Section
33333.8.
(5) The limitations contained in a redevelopment plan adopted
pursuant to this section shall not be applied to limit allocation of
taxes to an agency to the extent required to comply with Section
33333.8. In the event of a conflict between these limitations and
the obligations under Section 33333.8 the limitation established in
the ordinance shall be suspended pursuant to Section 33333.8.
(b) (1) A redevelopment plan, adopted pursuant to this chapter,
that does not contain the provisions set forth in Section 33670 shall
contain the limitations in paragraph (2).
(2) A time limit, not to exceed 12 years from the date the county
auditor certifies pursuant to Section 33492.9, for commencement of
eminent domain proceedings to acquire property within the project
area. This time limitation may be extended only by amendment of the
redevelopment plan.
SEC. 22. Section 50052.5 of the Health and Safety Code is amended
to read:
50052.5. (a) For any owner-occupied housing that receives
assistance prior to January 1, 1991, and a condition of that
assistance is compliance with this section, "affordable housing cost"
with respect to lower income households may not exceed 25 percent of
gross income.
(b) For any owner-occupied housing that receives assistance on or
after January 1, 1991, and a condition of that assistance is
compliance with this section, "affordable housing cost" may not
exceed the following:
(1) For extremely low households the product of 30 percent times
30 percent of the area median income adjusted for family size
appropriate for the unit.
(2) For very low income households the product of 30 percent times
50 percent of the area median income adjusted for family size
appropriate for the unit.
(3) For lower income households whose gross incomes exceed the
maximum income for very low income households and do not exceed 70
percent of the area median income adjusted for family size, the
product of 30 percent times 70 percent of the area median income
adjusted for family size appropriate for the unit. In addition, for
any lower income household that has a gross income that equals or
exceeds 70 percent of the area median income adjusted for family
size, it shall be optional for any state or local funding agency to
require that affordable housing cost not exceed 30 percent of the
gross income of the household.
(4) For moderate-income households, affordable housing cost shall
not be less than 28 percent of the gross income of the household, nor
exceed the product of 35 percent times 110 percent of area median
income adjusted for family size appropriate for the unit. In
addition, for any moderate-income household that has a gross income
that exceeds 110 percent of the area median income adjusted for
family size, it shall be optional for any state or local funding
agency to require that affordable housing cost not exceed 35 percent
of the gross income of the household.
(c) The department shall, by regulation, adopt criteria defining,
and providing for determination of, gross income, adjustments for
family size appropriate to the unit, and housing cost for purposes of
determining affordable housing cost under this section. These
regulations may provide alternative criteria, where necessary to be
consistent with pertinent federal statutes and regulations governing
federally assisted housing. The agency may, by regulation, adopt
alternative criteria, and pursuant to subdivision (f) of Section
50462, alternative percentages of income may be adopted for
agency-assisted housing development.
(d) With respect to moderate- and lower income households who are
tenants of rental housing developments and members or shareholders of
cooperative housing developments, or limited equity cooperatives
"affordable housing cost" has the same meaning as affordable rent, as
defined in Section 50053.
(e) Regulations of the department shall also include a method for
determining the maximum construction cost, mortgage loan, or sales
price that will make housing available to an income group at
affordable housing cost.
(f) For purposes of this section, "area median income" shall mean
area median income as published by the department pursuant to Section
50093.
(g) For purposes of this section, "moderate income household"
shall have the same meaning as "persons and families of moderate
income" as defined in Section 50093.
(h) For purposes of this section, and provided there are no
pertinent federal statutes applicable to a project or program,
"adjusted for family size appropriate to the unit" shall mean for a
household of one person in the case of a studio unit, two persons in
the case of a one-bedroom unit, three persons in the case of a
two-bedroom unit, four persons in the case of a three-bedroom unit,
and five persons in the case of a four-bedroom unit.
SEC. 23. Section 50053 of the Health and Safety Code is amended to
read:
50053. (a) For any rental housing development that receives
assistance prior to January 1, 1991, and a condition of that
assistance is compliance with this section, "affordable rent" with
respect to lower income households shall not exceed the percentage of
the gross income of the occupant person or household established by
regulation of the department that shall not be less than 15 percent
of gross income nor exceed 25 percent of gross income.
(b) For any rental housing development that receives assistance on
or after January 1, 1991, and a condition of that assistance is
compliance with this section, "affordable rent," including a
reasonable utility allowance, shall not exceed:
(1) For extremely low income households the product of 30 percent
times 30 percent of the area median income adjusted for family size
appropriate for the unit.
(2) For very low income households, the product of 30 percent
times 50 percent of the area median income adjusted for family size
appropriate for the unit.
(3) For lower income households whose gross incomes exceed the
maximum income for very low income households, the product of 30
percent times 60 percent of the area median income adjusted for
family size appropriate for the unit. In addition, for those lower
income households with gross incomes that exceed 60 percent of the
area median income adjusted for family size, it shall be optional for
any state or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of
the household.
(4) For moderate-income households, the product of 30 percent
times 110 percent of the area median income adjusted for family size
appropriate for the unit. In addition, for those moderate-income
households whose gross incomes exceed 110 percent of the area median
income adjusted for family size, it shall be optional for any state
or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of
the household.
(c) The department's regulation shall permit alternative
percentages of income for agency-assisted rental and cooperative
housing developments pursuant to regulations adopted under
subdivision (f) of Section 50462. The department shall, by
regulation, adopt criteria defining and providing for determination
of gross income, adjustments for family size appropriate to the unit,
and rent for purposes of this section. These regulations may
provide alternative criteria, where necessary, to be consistent with
pertinent federal statutes and regulations governing federally
assisted rental and cooperative housing. The agency may, by
regulation, adopt alternative criteria, and pursuant to subdivision
(f) of Section 50462, alternative percentages of income may be
adopted for agency-assisted housing developments.
For purposes of this section, "area median income," "adjustments
for family size appropriate to the unit," and "moderate-income
household" shall have the same meaning as provided in Section
50052.5.
SEC. 24. Section 50079.5 of the Health and Safety Code is amended
to read:
50079.5. (a) "Lower income households" means persons and families
whose income does not exceed the qualifying limits for lower income
families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937. The limits shall
be published by the department in the California Code of Regulations
as soon as possible after adoption by the Secretary of Housing and
Urban Development. In the event the federal standards are
discontinued, the department shall, by regulation, establish income
limits for lower income households for all geographic areas of the
state at 80 percent of area median income, adjusted for family size
and revised annually.
(b) "Lower income households" includes very low income households,
as defined in Section 50105, and extremely low income households, as
defined in Section 50106. The addition of this subdivision does not
constitute a change in, but is declaratory of, existing law.
(c) As used in this section, "area median income" means the median
family income of a geographic area of the state.
SEC. 25. Section 50105 of the Health and Safety Code is amended to
read:
50105. (a) "Very low income households" means persons and
families whose incomes do not exceed the qualifying limits for very
low income families as established and amended from time to time
pursuant to Section 8 of the United States Housing Act of 1937.
These qualifying limits shall be published by the department in the
California Code of Regulations as soon as possible after adoption by
the Secretary of Housing and Urban Development. In the event the
federal standards are discontinued, the department shall, by
regulation, establish income limits for very low income households
for all geographic areas of the state at 50 percent of area median
income, adjusted for family size and revised annually.
(b) "Very low income households" includes extremely low income
households, as defined in Section 50106. The addition of this
subdivision does not constitute a change in, but is declaratory of,
existing law.
(c) As used in this section, "area median income" means the median
family income of a geographic area of the state.