BILL NUMBER: AB 1053 CHAPTERED 10/14/07 CHAPTER 692 FILED WITH SECRETARY OF STATE OCTOBER 14, 2007 APPROVED BY GOVERNOR OCTOBER 14, 2007 PASSED THE SENATE SEPTEMBER 12, 2007 PASSED THE ASSEMBLY SEPTEMBER 12, 2007 AMENDED IN SENATE SEPTEMBER 7, 2007 AMENDED IN SENATE JULY 17, 2007 AMENDED IN SENATE JUNE 27, 2007 AMENDED IN ASSEMBLY JUNE 6, 2007 AMENDED IN ASSEMBLY JUNE 1, 2007 AMENDED IN ASSEMBLY MARCH 29, 2007 INTRODUCED BY Assembly Member Nunez FEBRUARY 23, 2007 An act to amend Section 53545.12 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1053, Nunez. Regional Planning, Housing, and Infill Incentive Account: programs. The Housing and Emergency Shelter Trust Fund Act of 2006 authorizes the issuance of bonds in the amount of $2,850,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds are required to be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks. The act establishes the Housing and Emergency Shelter Trust Fund of 2006 in the State Treasury, requires the sum of $850,000,000 to be deposited in the Regional Planning, Housing, and Infill Incentive Account, which the act establishes in the fund, and makes the moneys in the account available, upon appropriation, for infill incentive grants for capital outlay related to infill housing development and other related infill development, and for brownfield cleanup that promotes infill housing development and other related infill development consistent with regional and local plans, subject to the conditions and criteria that the Legislature may provide in statute. Existing law establishes the Infill Incentive Grant Program of 2007 to require the Department of Housing and Community Development, upon appropriation by the Legislature of the funds in the Regional Planning, Housing, and Infill Incentive Account for certain purposes, to establish and administer a competitive grant program to allocate those funds to selected capital improvements projects related to qualifying infill projects or qualifying infill areas, as defined. The Property and Business Improvement District Law of 1994 authorizes a city to form a property and business improvement district that may levy assessments within a business improvement area for the purpose of making improvements and promoting activities of benefit to the properties within the district. Existing law authorizes the establishment of an "owners' association" as a private nonprofit entity that is under contract with the city to administer or implement the activities and improvements specified in the management district plan. This bill would add to the definition of "eligible applicant" under the grant program a city, county, city and county, public housing authority, or redevelopment agency that has jurisdiction over a qualifying infill area and applies for funding jointly with an owners' association for a business or property improvement district that includes a qualifying infill area. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 53545.12 of the Health and Safety Code is amended to read: 53545.12. For the purposes of the grant program established in Section 53545.13, the following definitions apply: (a) "Capital improvement project" means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualified infill project or qualified infill area. Capital improvement projects that may be funded under the grant program established by this act include, but are not limited to, those related to all of the following: (1) The creation, development, or rehabilitation of parks or open space. (2) Water, sewer, or other utility service improvements. (3) Streets and roads, parking structures, or transit linkages and facilities, including, but not limited to, related access plazas or pathways, or bus and transit shelters. (4) Facilities that support pedestrian or bicycle transit. (5) Traffic mitigation. (6) Qualifying infill project or qualifying infill area site preparation or demolition. (7) Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities. (b) "Department" means the Department of Housing and Community Development. (c) "Eligible applicant" means any of, or any combination of, the following: (1) A nonprofit or for-profit developer of a qualifying infill project. (2) A city, county, city and county, public housing authority, or redevelopment agency that has jurisdiction over a qualifying infill area. (3) (A) A city, county, city and county, public housing authority, or redevelopment agency that has jurisdiction over a qualifying infill area and applies for funding jointly with an "owners' association," as defined in Section 36614.5 of the Streets and Highways Code, for a business or property improvement district that includes the qualifying infill area. (B) Prior to receiving funding, but after being awarded a grant, the joint applicants described in subparagraph (A) shall submit to the department documentation from the local permitting authority demonstrating that the actual number of permitted housing units associated with the qualifying project is equal to or greater than the number of housing units in the grant application. (d) "Qualifying infill area" means a contiguous area located within an urbanized area (1) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (2) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualified infill project. (e) (1) "Qualifying infill project" means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. (2) A property is adjoining the side of a project site if the property is separated from the project site only by an improved public right-of-way. (f) "Urbanized area" means an incorporated city or an urbanized area or urban cluster as defined by the United States Census Bureau. For unincorporated areas outside of an urban area or urban cluster, the area must be within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water. (g) "Urban uses" mean any residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.