BILL NUMBER: AB 2043	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 17, 2010

   An act to amend Sections 33020 and 33021 of, and to add Section
33137 to, the Health and Safety Code, relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2043, as introduced, Torrico. Redevelopment funds: mortgage
assistance.
   The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities in order to address the effects
of blight, as defined, in those communities and requires those
agencies to prepare, or cause to be prepared, and approve a
redevelopment plan for each project area. Existing law authorizes the
agency use of tax increment financing for redevelopment projects and
for the repayment of redevelopment agency debts.
   This bill would redefine the term "redevelopment" to include the
provision of loan assistance to qualified homeowners participating in
the federal Home Affordable Modification Program. The bill would
authorize a redevelopment agency to use redevelopment funds to issue
loans, up to a maximum of $75,000, to reduce the principal mortgage
balance of a borrower that has received a mortgage modification under
the federal Home Affordable Modification Program and meets other
specified requirements.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 33020 of the Health and Safety Code is amended
to read:
   33020.  "Redevelopment" means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area,
 and  the provision of those residential,
commercial, industrial, public, or other structures or spaces as may
be appropriate or necessary in the interest of the general welfare,
including recreational and other facilities incidental or appurtenant
to them  , the provision of assistance to qualified homeowners
under Section 33137  and payments to school and community
college districts in the fiscal years specified in Sections 33681,
33681.5, 33681.7, 33681.9, and 33681.12.
  SEC. 2.  Section 33021 of the Health and Safety Code is amended to
read:
   33021.  Redevelopment includes:
   (a)  The alteration, improvement, modernization, reconstruction,
or rehabilitation, or any combination of these, of existing
structures in a project area.
   (b)  Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
   (c)  The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist.
   (1)  The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
   (2)  The areas require replanning and land assembly for
reclamation or development in the interest of the general welfare
because of widely scattered ownership, tax delinquency, or other
reasons. 
   (d) Issuance of loans to reduce the principal balance on the
mortgages of qualified homeowners participating in the federal Home
Affordable Modification Program. 
  SEC. 3.  Section 33137 is added to the Health and Safety Code, to
read:
   33137.  An agency may use redevelopment funds to issue loans to
reduce the principal mortgage balance of a qualified borrower who has
received a mortgage modification under the federal Home Affordable
Modification Program and has a mortgage payment that exceeds 31
percent of gross income. Loans issued pursuant to this section shall
be limited to seventy-five thousand dollars ($75,000).