BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1641| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1641 Author: Hall (D) Amended: 8/9/10 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMMITTEE : 5-2, 6/22/10 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 those public housing units over 50 years old may be blighted for purposes of undertaking a redevelopment project. Senate Floor Amendments of 8/9/10 requires that displaced public housing tenants be housed in an appropriately sized housing unit. ANALYSIS : The Community Redevelopment Law allows local governments to establish redevelopment project areas and CONTINUED AB 1641 Page 2 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. 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 CONTINUED AB 1641 Page 3 income households at the same or lower income level as the households displaced from the public housing units. B. A unit type and size as required by the displaced household as described in the United States Department of Housing and Urban Development's "Public Housing Occupancy guidebook." C. 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. D. Located either in the project area or within five miles of the parcel containing the public housing that is being replaced. 3. 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. 4. 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 8/9/10) City of Los Angeles (source) Los Angeles County Supervisor Mark Ridley-Thomas 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, which CONTINUED AB 1641 Page 4 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 amenities. ASSEMBLY FLOOR : 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 8/10/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED