BILL ANALYSIS                                                                                                                                                                                                    


          |SENATE RULES COMMITTEE            |                  AB 1641|
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                                 THIRD READING

          Bill No:  AB 1641
          Author:   Hall (D)
          Amended:  7/1/10 in Senate
          Vote:     21

          AYES:  Lowenthal, Ashburn, DeSaulnier, Pavley, Simitian
          NOES:  Huff, Harman
          NO VOTE RECORDED:  Kehoe, Oropeza

           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-2, 6/30/10
          AYES:  Kehoe, DeSaulnier, Price
          NOES: Cox, Aanestad

           ASSEMBLY FLOOR  :  46-26, 5/13/10 - See last page for vote

           SUBJECT  :    Redevelopment and public housing

           SOURCE  :     City of Los Angeles

           DIGEST  :    This bill makes a finding that public housing  
          units over 50 years old may be blighted for purposes of  
          undertaking a redevelopment project.

           ANALYSIS  :    The Community Redevelopment Law allows local  
          governments to establish redevelopment project areas and  
          capture all of the increase in property taxes that is  
          generated within a project area (referred to as "tax  
          increment") in order to address conditions of blight within  
          the project area. 


                                                               AB 1641

          The law requires redevelopment agencies to deposit 20  
          percent of tax increment funds into a Low & Moderate Income  
          Housing Fund (L&M Fund) to be used to increase, improve,  
          and preserve the community's supply of low and moderate  
          income housing at affordable housing cost.  The other 80  
          percent of tax increment funds, known as economic  
          development funds, are to be used to eradicate blight.   
          Since 1994, existing law has defined blight for  
          redevelopment purposes as an area that is predominately  
          urbanized and characterized by one or more specified  
          conditions of physical blight and one or more conditions of  
          economic blight.

          When a redevelopment project results in housing units being  
          demolished or removed from the market, existing law  
          requires that the redevelopment agency replace those units  
          that housed low- or moderate-income households within four  
          years with units affordable to those displaced.  The  
          replacement units may be anywhere within the jurisdiction  
          of the redevelopment agency (i.e., within the city limits),  
          and they must remain affordable for 55 years for rental  
          units and 45 years for ownership units.  In addition, those  
          actually displaced must be given priority in renting or  
          buying the replacement housing. 

          This bill:

          1. Declares that a blighted area which contains  
             characteristics of physical and economic light may also  
             include housing constricted as a government-owned  
             project that was constructed before January 1, 1960.

          2. Requires a redevelopment project area described above to  
             include the replacement, on at least a one-to-one basis,  
             of all existing public housing units.  These replacement  
             units shall be:

             A.    For at least 55 years, affordable to and  
                occupied by extremely low, very low, and lower  
                income households at the same or lower income level  
                as the households displaced from the public housing  



                                                               AB 1641

             B.    Affordable to each displaced household that  
                chooses to relocate to a replacement unit, such  
                that the rent does not exceed 30 percent of the  
                income of that household.

             C.    Located either in the project area or within  
                five miles of the parcel containing the public  
                housing that is being replaced. 

             Households displaced shall be given priority for a  
             permanent replacement dwelling at the initial time of  
             relocation, unless the household members have decided  
             voluntarily not to accept the replacement unit.

          3. Permits a redevelopment project area undertaken at a  
             public housing site to also include market-rate housing,  
             retail, commercial, industrial, educational,  
             recreational, and other uses appropriate to serve the  
             residents of the area plus public improvements inside or  
             adjacent to the project area. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/30/10)

          City of Los Angeles (source)

           ARGUMENTS IN SUPPORT  :    The author's office introduced  
          this bill at the request of the City of Los Angeles, which  
          wants to declare at least two of it public housing  
          complexes to be redevelopment project areas.  Built over 50  
          years ago, these housing projects include on a single large  
          site thousands of housing units, typically bungalows, that  
          are on city-owned land.  Some of these housing projects  
          have suffered from decades of disrepair and neglect.   
          Through the redevelopment project or projects, the city  
          will replace all of the housing in each project with a  
          mixed-use development that includes affordable and market  
          rate housing, retail and commercial facilities, and public  

           ASSEMBLY FLOOR  : 



                                                               AB 1641

          AYES:  Adams, Ammiano, Arambula, Bass, Beall, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, Charles  
            Calderon, Carter, Chesbro, Conway, Coto, Davis, De La  
            Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes,  
            Galgiani, Hall, Hayashi, Hernandez, Hill, Huffman, Jones,  
            Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava,  
            Portantino, Ruskin, Salas, Saldana, Solorio, Swanson,  
            Torlakson, Torrico, Yamada, John A. Perez
          NOES:  Anderson, Bill Berryhill, Tom Berryhill, Blakeslee,  
            Cook, DeVore, Emmerson, Fuller, Gaines, Garrick, Gilmore,  
            Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Norby, Silva, Audra Strickland, Torres,  
            Tran, Villines
          NO VOTE RECORDED:  Caballero, Fletcher, Furutani, Hagman,  
            V. Manuel Perez, Skinner, Smyth, Vacancy

          JJA:do  7/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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