Amended in Senate August 13, 2013

Amended in Senate June 11, 2013

Amended in Senate May 24, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 662


Introduced by Assembly Members Atkins, Dickinson, Mitchell, Perea, Ting, and Torres

(Coauthor: Senator Wolk)

February 21, 2013


An act to amend Section 53395.4 of the Government Code, and to amend Sections 34163, 34171, 34177,begin delete 34178,end deletebegin insert 34180, 34183,end insert 34191.4, and 34191.5 ofthe Health and Safety Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 662, as amended, Atkins. Local government:begin delete infrastructure financing districts.end deletebegin insert redevelopment: successor agencies to redevelopment agencies.end insert

(1) Existing law authorizes the creation of infrastructure financing districts, as defined, for the sole purpose of financing public facilities, subject to adoption of a resolution by the legislative body and affected taxing entities proposed to be subject to the division of taxes and voter approval requirements. Existing law prohibits an infrastructure financing district from including any portion of a redevelopment project area.

This bill would delete that prohibitionbegin insert and would authorize a district to finance a project or portion of a project that is located in, or overlaps with, a redevelopment project area or former redevelopment project area, as specifiedend insert.

(2) Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law prohibits a successor agency from entering into contracts with, incur obligations, or make commitments to, any entity, as specified, or to amend or modify existing agreements, obligations, or commitments with any entity, for any purpose.

This bill would authorize a successor agency, if the successor agency has received a finding of completion, to enter into, or amend existing, contracts and agreements,begin delete make land use decisions,end delete or otherwise administer projects in connection with long-term enforceable obligations, if the contractbegin delete orend deletebegin insert,end insert agreement,begin delete land use decision,end delete or project will not commit new tax funds or otherwise adversely affect the flow ofbegin insert specifiedend insert taxbegin delete incrementend deletebegin insert revenues or paymentsend insert to the taxing agencies.begin insert The bill would require the successor agency to notify the oversight board at least 10 days prior to entering into or amending a contract or agreement under these provisions. The bill would authorize the oversight board to notify the successor agency during that 10-day period that the board intends to conduct a hearing to determine whether the contract or agreement will not commit new tax funds or otherwise adversely affect the flow of property tax revenues or payments to the taxing agencies and would require the board to hold the hearing and issue findings within 30 days after it so notified the successor agency.end insert

begin delete

(3) Existing law specifies that the term “enforceable obligation” does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency, as specified.

end delete
begin delete

This bill would provide that an agreement entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency prior to October 1, 2011, is an enforceable obligation if the agreement relates to a project identified, in whole or in part, in an infill infrastructure grant program disbursement agreement entered into by the Department of Housing and Community Development pursuant to the Infill Infrastructure Grant Program. The bill would also provide that an agreement entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency prior to October 1, 2011, is an enforceable obligation if the agreement relates to state highway infrastructure improvements to which the redevelopment agency committed funds pursuant to a specified code section.

end delete
begin delete

(4)

end delete

begin insert(3)end insert Existing law requires a successor agency to submit a Recognized Obligation Payment Schedule to the Department of Finance, and requires the successor agency to make payments pursuant to that schedule.

This bill would authorize the successor agency to schedule Recognized Obligation Payment Schedule payments beyond the existing Recognized Obligation Payment Schedule cycle upon a showing that a lender requires cash on hand beyond the Recognized Obligation Payment Schedule cycle, or when a payment is shown to be due during the Recognized Obligation Payment Schedule period. The bill would authorize the successor agency to utilize reasonable estimates and projections to support payment amounts where a payment is shown to be due during the Recognized Obligation Payment Schedule period but an invoice or other billing document has not been receivedbegin insert,end insert if the successor agency submits appropriate supporting documentation for the basis of the estimate or projection to the department. The bill would provide that a Recognized Obligation Payment Schedule may also include appropriation of moneys from bonds subject to passage during the Recognized Obligation Payment Schedule cycle when an enforceable obligation requires the agency to issue the bonds and use the proceeds to pay for project expenditures.

begin insert

(4) Existing law requires that specified actions of a successor agency be first approved by its oversight board, including, among others, the establishment of a Recognized Obligation Payment Schedule.

end insert
begin insert

This bill would require a successor agency to notify the board 10 days prior to entering into a contract or agreement for the use or disposition of specified properties. The bill would authorize the board to notify the successor agency during that 10-day period that the board intends to conduct a hearing to determine whether the contract or agreement is consistent with the successor agency’s long-range property management plan and would require the board to hold the hearing and issue findings within 30 days after it so notified the successor agency.

end insert
begin insert

(5) Existing law requires the county auditor-controller to determine the amount of property taxes that would have been allocated to each redevelopment agency if it had not been dissolved and to deposit this amount in a Redevelopment Property Tax Trust Fund in the county. Existing law requires the conducting of a due diligence review to determine the unobligated balances available for transfer to affected taxing entities. Existing law requires the county auditor-controller for each fiscal year to allocate moneys in the Redevelopment Property Tax Trust Fund for passthrough payment obligations, enforceable obligations of the dissolved redevelopment agency, and administrative costs, as specified. Any remaining moneys in the Redevelopment Property Tax Trust Fund are required to be distributed as local property tax revenues to local agencies and school entities, as specified.

end insert
begin insert

This bill would require that, on January 2, 2014, and twice yearly thereafter until June 1, 2018, funds be allocated to cover the housing entity administrative cost allowance of a city, county, or city and county that has assumed the housing duties of the former redevelopment agency, as specified, before remaining moneys are distributed to local agencies and school entities. The bill would define “housing entity administrative cost allowance” for these purposes. This bill would also exclude from the calculation of the amount distributed to taxing entities during the 2012-13 base year the amounts distributed to taxing entities pursuant to the due diligence review process. By imposing additional duties upon local public officials, the bill would create a state-mandated local program.

end insert
begin delete

(5) Existing law specifies that certain loan agreements entered into by a former redevelopment agency are enforceable obligations and sets forth the requirement for repayment of those loans, as specified.

end delete
begin delete

This bill would prohibit the loan repayment schedule from including amounts paid back pursuant to the due diligence review process during the 2012-13 base year.

end delete

(6) Existing law requires a successor agency to prepare a long-range property management plan that addresses the disposition and use of the real properties of a former redevelopment agency and requires a transfer of the property to the city, county, or city and county if the plan directs the use or liquidation of the property for a project identified in an approved redevelopment plan, as specified.

This bill would specify that the term “identified in an approved redevelopment plan” includes properties listed in a communitybegin delete plan,end deletebegin insert plan orend insert a 5-year implementationbegin delete plan, or other similar documentend deletebegin insert planend insert.

begin insert

(7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P5    1

SECTION 1.  

Section 53395.4 of the Government Code is
2amended to read:

3

53395.4.  

(a) A district may finance only the facilities or
4services authorized in this chapter to the extent that the facilities
5or services are in addition to those provided in the territory of the
6district before the district was created. The additional facilities or
7services may not supplant facilities or services already available
8within that territory when the district was created but may
9supplement those facilities and services as needed to serve new
10developments.

11(b) A district may include areas that are not contiguous.

begin insert

12(c) A district may finance a project or portion of a project that
13is located in, or overlaps with, a redevelopment project area or
14former redevelopment project area. The successor agency to the
15former redevelopment agency shall receive a certificate of
16completion, as defined in Section 34179.7 of the Health and Safety
17Code, prior to the district financing any project or portion of a
18project under this subdivision.

end insert
begin insert

19(d) Notwithstanding subdivision (c), any debt or obligation of
20a district shall be subordinate to an enforceable obligation of a
21former redevelopment agency, as defined in Section 34171 of the
22Health and Safety Code. For the purposes of this chapter, the
23division of taxes allocated to the district pursuant to subdivision
24(b) of Section 53396 shall not include any taxes required to be
25deposited by the county auditor-controller into the Redevelopment
26Property Tax Trust Fund created pursuant to subdivision (b) of
27Section 34170.5 of the Health and Safety Code.

end insert
begin insert

28(e) The legislative body of the city forming the district may
29choose to dedicate any portion of its net available revenue to the
30district through the financing plan described in Section 53395.14.

end insert
begin insert

31(f) For the purposes of this section “net available revenue”
32means periodic distributions to the city from the Redevelopment
33Property Tax Trust Fund, created pursuant to Section 34170.5 of
P6    1the Health and Safety Code, that are available to the city after all
2preexisting legal commitments and statutory obligations funded
3from that revenue are made pursuant to Part 1.85 (commencing
4with Section 34170) of Division 24 of the Health and Safety Code.
5Net available revenue shall not include any funds deposited by the
6county auditor-controller into the Redevelopment Property Tax
7Trust Fund or funds remaining in the Redevelopment Property
8Tax Trust Fund prior to distribution. Net available revenues shall
9not include any moneys payable to a school district that maintains
10kindergarten and grades 1 to 12, inclusive, community college
11districts, or to the Educational Revenue Augmentation Fund,
12pursuant to paragraph (4) of subdivision (a) of Section 34183 of
13the Health and Safety Code.

end insert
14

SEC. 2.  

Section 34163 of the Health and Safety Code is
15amended to read:

16

34163.  

Notwithstanding Part 1 (commencing with Section
1733000), Part 1.5 (commencing with Section 34000), Part 1.6
18(commencing with Section 34050), and Part 1.7 (commencing
19with Section 34100), or any other law, commencing on the effective
20date of this part, an agency shall not have the authority to, and
21shall not, do any of the following:

22(a) Make loans or advances or grant or enter into agreements
23to provide funds or provide financial assistance of any sort to any
24entity or person for any purpose, including, but not limited to, all
25of the following:

26(1) Loans of moneys or any other thing of value or commitments
27to provide financing to nonprofit organizations to provide those
28organizations with financing for the acquisition, construction,
29rehabilitation, refinancing, or development of multifamily rental
30housing or the acquisition of commercial property for lease, each
31pursuant to Chapter 7.5 (commencing with Section 33741) of Part
321.

33(2) Loans of moneys or any other thing of value for residential
34construction, improvement, or rehabilitation pursuant to Chapter
358 (commencing with Section 33750) of Part 1. These include, but
36are not limited to, construction loans to purchasers of residential
37housing, mortgage loans to purchasers of residential housing, and
38loans to mortgage lenders, or any other entity, to aid in financing
39pursuant to Chapter 8 (commencing with Section 33750).

P7    1(3) The purchase, by an agency, of mortgage or construction
2loans from mortgage lenders or from any other entities.

3(b) (1) Enter into contracts with, incur obligations, or make
4commitments to, any entity, whether governmental, tribal, or
5private, or any individual or groups of individuals for any purpose,
6including, but not limited to, loan agreements, passthrough
7agreements, regulatory agreements, services contracts, leases,
8disposition and development agreements, joint exercise of powers
9agreements, contracts for the purchase of capital equipment,
10agreements for redevelopment activities, including, but not limited
11to, agreements for planning, design, redesign, development,
12demolition, alteration, construction, reconstruction, rehabilitation,
13site remediation, site development or improvement, removal of
14graffiti, land clearance, and seismic retrofits.

15(2) Notwithstanding paragraph (1), if a successor agency has
16received a finding of completion, the successor agency may enter
17into, or amend existing, contracts and agreements,begin delete make land use
18decisions,end delete
or otherwise administer projects in connection with
19long-term enforceable obligations, if the contractbegin delete orend deletebegin insert,end insert agreement,
20begin deleteland use decision,end delete or project will not commit new tax funds,begin delete orend delete
21begin insert and end insert will not otherwise adversely affect the flow ofbegin insert propertyend insert tax
22begin delete incrementend deletebegin insert revenues or payments made pursuant to paragraph (4)
23of subdivision (a) of Section 34183end insert
to the taxing agencies.begin insert The
24successor agency shall provide notice to the oversight board at
25least 10 days prior to entering into or amending a contract or
26agreement pursuant to this paragraph. During the 10-day period
27the oversight board may notify the successor agency that the board
28intends to conduct a hearing to determine whether the contract or
29agreement will not commit new tax funds or otherwise adversely
30 affect the flow of property tax revenues or payments to the taxing
31agencies. The board shall hold the hearing and issue findings
32within 30 days after it so notified the successor agency.end insert

33(c) Amend or modify existing agreements, obligations, or
34commitments with any entity, for any purpose, including, but not
35limited to, any of the following:

36(1) Renewing or extending term of leases or other agreements,
37except that the agency may extend lease space for its own use to
38a date not to exceed six months after the effective date of the act
39adding this part and for a rate no more than 5 percent above the
40rate the agency currently pays on a monthly basis.

P8    1(2) Modifying terms and conditions of existing agreements,
2obligations, or commitments.

3(3) Forgiving all or any part of the balance owed to the agency
4on existing loans or extend the term or change the terms and
5conditions of existing loans.

6(4) Making any future deposits to the Low and Moderate Income
7Housing Fund created pursuant to Section 33334.3.

8(5) Transferring funds out of the Low and Moderate Income
9Housing Fund, except to meet the minimum housing-related
10obligations that existed as of January 1, 2011, to make required
11payments under Sections 33690 and 33690.5, and to borrow funds
12pursuant to Section 34168.5.

13(d) Dispose of assets by sale, long-term lease, gift, grant,
14exchange, transfer, assignment, or otherwise, for any purpose,
15including, but not limited to, any of the following:

16(1) Assets, including, but not limited to, real property, deeds of
17trust, and mortgages held by the agency, moneys, accounts
18receivable, contract rights, proceeds of insurance claims, grant
19proceeds, settlement payments, rights to receive rents, and any
20other rights to payment of whatever kind.

21(2) Real property, including, but not limited to, land, land under
22water and waterfront property, buildings, structures, fixtures, and
23improvements on the land, any property appurtenant to, or used
24in connection with, the land, every estate, interest, privilege,
25easement, franchise, and right in land, including rights-of-way,
26terms for years, and liens, charges, or encumbrances by way of
27judgment, mortgage, or otherwise, and the indebtedness secured
28by the liens.

29(e) Acquire real property by any means for any purpose,
30including, but not limited to, the purchase, lease, or exercising of
31an option to purchase or lease, exchange, subdivide, transfer,
32assume, obtain option upon, acquire by gift, grant, bequest, devise,
33or otherwise acquire any real property, any interest in real property,
34and any improvements on it, including the repurchase of developed
35property previously owned by the agency and the acquisition of
36real property by eminent domain; provided, however, that nothing
37in this subdivision is intended to prohibit the acceptance or transfer
38of title for real property acquired prior to the effective date of this
39part.

P9    1(f) Transfer, assign, vest, or delegate any of its assets, funds,
2rights, powers, ownership interests, or obligations for any purpose
3to any entity, including, but not limited to, the community, the
4legislative body, another member of a joint powers authority, a
5trustee, a receiver, a partner entity, another agency, a nonprofit
6corporation, a contractual counterparty, a public body, a
7limited-equity housing cooperative, the state, a political subdivision
8of the state, the federal government, any private entity, or an
9individual or group of individuals.

10(g) Accept financial or other assistance from the state or federal
11government or any public or private source if the acceptance
12necessitates or is conditioned upon the agency incurring
13indebtedness as that term is described in this part.

14

SEC. 3.  

Section 34171 of the Health and Safety Code is
15amended to read:

16

34171.  

The following terms shall have the following meanings:

17(a) “Administrative budget” means the budget for administrative
18costs of the successor agencies as provided in Section 34177.

19(b) “Administrative cost allowance” means an amount that,
20subject to the approval of the oversight board, is payable from
21property tax revenues of up to 5 percent of the property tax
22allocated to the successor agency on the Recognized Obligation
23Payment Schedule covering the period January 1, 2012, through
24June 30, 2012, and up to 3 percent of the property tax allocated to
25the Redevelopment Obligation Retirement Fund money that is
26allocated to the successor agency for each fiscal year thereafter;
27provided, however, that the amount shall not be less than two
28hundred fifty thousand dollars ($250,000), unless the oversight
29board reduces this amount, for any fiscal year or such lesser amount
30as agreed to by the successor agency. However, the allowance
31amount shall exclude, and shall not apply to, any administrative
32costs that can be paid from bond proceeds or from sources other
33than property tax. Administrative cost allowances shall exclude
34any litigation expenses related to assets or obligations, settlements
35and judgments, and the costs of maintaining assets prior to
36disposition. Employee costs associated with work on specific
37project implementation activities, including, but not limited to,
38construction inspection, project management, or actual
39construction, shall be considered project-specific costs and shall
40not constitute administrative costs.

P10   1(c) “Designated local authority” shall mean a public entity
2formed pursuant to subdivision (d) of Section 34173.

3(d) (1) “Enforceable obligation” means any of the following:

4(A) Bonds, as defined by Section 33602 and bonds issued
5pursuant to Chapter 10.5 (commencing with Section 5850) of
6Division 6 of Title 1 of the Government Code, including the
7required debt service, reserve set-asides, and any other payments
8required under the indenture or similar documents governing the
9issuance of the outstanding bonds of the former redevelopment
10agency. A reserve may be held when required by the bond
11indenture or when the next property tax allocation will be
12insufficient to pay all obligations due under the provisions of the
13bond for the next payment due in the following half of the calendar
14year.

15(B) Loans of moneys borrowed by the redevelopment agency
16for a lawful purpose, to the extent they are legally required to be
17 repaid pursuant to a required repayment schedule or other
18mandatory loan terms.

19(C) Payments required by the federal government, preexisting
20obligations to the state or obligations imposed by state law, other
21than passthrough payments that are made by the county
22auditor-controller pursuant to Section 34183, or legally enforceable
23payments required in connection with the agencies’ employees,
24including, but not limited to, pension payments, pension obligation
25debt service, unemployment payments, or other obligations
26conferred through a collective bargaining agreement. Costs incurred
27to fulfill collective bargaining agreements for layoffs or
28terminations of city employees who performed work directly on
29behalf of the former redevelopment agency shall be considered
30enforceable obligations payable from property tax funds. The
31obligations to employees specified in this subparagraph shall
32remain enforceable obligations payable from property tax funds
33 for any employee to whom those obligations apply if that employee
34is transferred to the entity assuming the housing functions of the
35former redevelopment agency pursuant to Section 34176. The
36successor agency or designated local authority shall enter into an
37agreement with the housing entity to reimburse it for any costs of
38the employee obligations.

39(D) Judgments or settlements entered by a competent court of
40law or binding arbitration decisions against the former
P11   1redevelopment agency, other than passthrough payments that are
2made by the county auditor-controller pursuant to Section 34183.
3Along with the successor agency, the oversight board shall have
4the authority and standing to appeal any judgment or to set aside
5any settlement or arbitration decision.

6(E) Any legally binding and enforceable agreement or contract
7that is not otherwise void as violating the debt limit or public
8 policy. However, nothing in this act shall prohibit either the
9successor agency, with the approval or at the direction of the
10oversight board, or the oversight board itself from terminating any
11existing agreements or contracts and providing any necessary and
12required compensation or remediation for such termination. Titles
13of or headings used on or in a document shall not be relevant in
14determining the existence of an enforceable obligation.

15(F) Contracts or agreements necessary for the administration or
16operation of the successor agency, in accordance with this part,
17including, but not limited to, agreements concerning litigation
18expenses related to assets or obligations, settlements and
19judgements, and the costs of maintaining assets prior to disposition,
20and agreements to purchase or rent office space, equipment and
21supplies, and pay-related expenses pursuant to Section 33127 and
22for carrying insurance pursuant to Section 33134.

23(G) Amounts borrowed from, or payments owing to, the Low
24and Moderate Income Housing Fund of a redevelopment agency,
25which had been deferred as of the effective date of the act adding
26this part; provided, however, that the repayment schedule is
27approved by the oversight board. Repayments shall be transferred
28to the Low and Moderate Income Housing Asset Fund established
29pursuant to subdivision (d) of Section 34176 as a housing asset
30and shall be used in a manner consistent with the affordable
31housing requirements of the Community Redevelopment Law (Part
321 (commencing with Section 33000)).

33(2) For purposes of this part, “enforceable obligation” does not
34include any agreements, contracts, or arrangements between the
35city, county, or city and county that created the redevelopment
36agency and the former redevelopment agency. However, written
37agreements entered into (A) at the time of issuance, but in no event
38later than December 31, 2010, of indebtedness obligations, and
39(B) solely for the purpose of securing or repaying those
40indebtedness obligations may be deemed enforceable obligations
P12   1for purposes of this part. Notwithstanding this paragraph, loan
2agreements entered into between the redevelopment agency and
3the city, county, or city and county that created it, within two years
4of the date of creation of the redevelopment agency, may be
5deemed to be enforceable obligations. begin delete Notwithstanding this
6paragraph, an agreement entered into between the redevelopment
7agency and the city, county, or city and county that created the
8redevelopment agency prior to October 1, 2011, is an enforceable
9obligation if the agreement relates to a project identified, in whole
10or in part, in an infill infrastructure grant program disbursement
11agreement entered into by the Department of Housing and
12Community Development pursuant to the Infill Infrastructure Grant
13Program and in accordance with Part 12 (commencing with Section
1453545.12) of Division 31. Notwithstanding this paragraph, an
15agreement entered into between the redevelopment agency and
16the city, county, or city and county that created the redevelopment
17agency prior to October 1, 2011, is an enforceable obligation if
18the agreement relates to state highway infrastructure improvements
19to which the redevelopment agency committed funds pursuant to
20the provisions of Section 33445.end delete

21(3) Contracts or agreements between the former redevelopment
22agency and other public agencies, to perform services or provide
23funding for governmental or private services or capital projects
24outside of redevelopment project areas that do not provide benefit
25to the redevelopment project and thus were not properly authorized
26under Part 1 (commencing with Section 33000) shall be deemed
27void on the effective date of this part; provided, however, that such
28contracts or agreements for the provision of housing properly
29authorized under Part 1 (commencing with Section 33000) shall
30not be deemed void.

31(e) “Indebtedness obligations” means bonds, notes, certificates
32of participation, or other evidence of indebtedness, issued or
33delivered by the redevelopment agency, or by a joint exercise of
34powers authority created by the redevelopment agency, to
35third-party investors or bondholders to finance or refinance
36redevelopment projects undertaken by the redevelopment agency
37in compliance with the Community Redevelopment Law (Part 1
38(commencing with Section 33000)).

39(f) “Oversight board” shall mean each entity established pursuant
40to Section 34179.

P13   1(g) “Recognized obligation” means an obligation listed in the
2Recognized Obligation Payment Schedule.

3(h) “Recognized Obligation Payment Schedule” means the
4document setting forth the minimum payment amounts and due
5dates of payments required by enforceable obligations for each
6six-month fiscal period as provided in subdivision (m) of Section
734177.

8(i) “School entity” means any entity defined as such in
9subdivision (f) of Section 95 of the Revenue and Taxation Code.

10(j) “Successor agency” means the successor entity to the former
11redevelopment agency as described in Section 34173.

12(k) “Taxing entities” means cities, counties, a city and county,
13special districts, and school entities, as defined in subdivision (f)
14of Section 95 of the Revenue and Taxation Code, that receive
15passthrough payments and distributions of property taxes pursuant
16to the provisions of this part.

17(l) “Property taxes” include all property tax revenues, including
18those from unitary and supplemental and roll corrections applicable
19to tax increment.

20(m) “Department” means the Department of Finance unless the
21context clearly refers to another state agency.

22(n) “Sponsoring entity” means the city, county, or city and
23county, or other entity that authorized the creation of each
24redevelopment agency.

25(o) “Final judicial determination” means a final judicial
26determination made by any state court that is not appealed, or by
27a court of appellate jurisdiction that is not further appealed, in an
28action by any party.

begin insert

29(p) From January 2, 2014, to June 1, 2018, inclusive, “housing
30entity administrative cost allowance” means an amount of up to
311 percent of the property tax allocated to the Redevelopment
32Obligation Retirement Fund on behalf of the successor agency for
33each applicable fiscal year, but not less than one hundred fifty
34thousand dollars ($150,000) per fiscal year.

end insert
begin insert

35(1) The housing entity administrative cost allowance shall be
36listed by the successor agency on the Recognized Obligation
37Payment Schedule. Upon approval of the Recognized Obligation
38Payment Schedule by the oversight board and the department, the
39housing entity administrative cost allowance shall be remitted by
40the county auditor-controller on each January 2 and June 1 to the
P14   1city, county, or city and county that assumed the housing functions
2of the former redevelopment agency pursuant to Section 34176.
3To assist the county auditor-controller in this duty, the successor
4agency shall notify the county auditor-controller by January 2,
52014, of the identity of the entity that has assumed the housing
6functions of the former redevelopment agency.

end insert
begin insert

7(2) If there are insufficient moneys in the Redevelopment
8Obligations Retirement Fund in a given fiscal year to make the
9payment authorized by this subdivision, the unfunded amount may
10be listed on each subsequent Recognized Obligation Payment
11Schedule until it has been paid in full. In these cases the five-year
12time limit on the payments shall not apply.

end insert
13

SEC. 4.  

Section 34177 of the Health and Safety Code is
14amended to read:

15

34177.  

Successor agencies are required to do all of the
16following:

17(a) Continue to make payments due for enforceable obligations.

18(1) On and after February 1, 2012, and until a Recognized
19Obligation Payment Schedule becomes operative, only payments
20required pursuant to an enforceable obligations payment schedule
21shall be made. The initial enforceable obligation payment schedule
22shall be the last schedule adopted by the redevelopment agency
23under Section 34169. However, payments associated with
24obligations excluded from the definition of enforceable obligations
25by paragraph (2) of subdivision (d) of Section 34171 shall be
26excluded from the enforceable obligations payment schedule and
27be removed from the last schedule adopted by the redevelopment
28agency under Section 34169 prior to the successor agency adopting
29it as its enforceable obligations payment schedule pursuant to this
30subdivision. The enforceable obligation payment schedule may
31be amended by the successor agency at any public meeting and
32shall be subject to the approval of the oversight board as soon as
33the board has sufficient members to form a quorum. In recognition
34of the fact that the timing of the California Supreme Court’s ruling
35in the case California Redevelopment Association v. Matosantos
36(2011) 53 Cal.4th 231 delayed the preparation by successor
37agencies and the approval by oversight boards of the January 1,
382012, through June 30, 2012, Recognized Obligation Payment
39Schedule, a successor agency may amend the Enforceable
40Obligation Payment Schedule to authorize the continued payment
P15   1of enforceable obligations until the time that the January 1, 2012,
2through June 30, 2012, Recognized Obligation Payment Schedule
3has been approved by the oversight board and by the Department
4of Finance. The successor agency may utilize reasonable estimates
5and projections to support payment amounts for enforceable
6obligations if the successor agency submits appropriate supporting
7documentation of the basis for the estimate or projection to the
8Department of Finance.

9(2) The Department of Finance and the Controller shall each
10have the authority to require any documents associated with the
11enforceable obligations to be provided to them in a manner of their
12choosing. Any taxing entity, the department, and the Controller
13shall each have standing to file a judicial action to prevent a
14violation under this part and to obtain injunctive or other
15appropriate relief.

16(3) Commencing on the date the Recognized Obligation Payment
17Schedule is valid pursuant to subdivision (l), only those payments
18listed in the Recognized Obligation Payment Schedule may be
19made by the successor agency from the funds specified in the
20Recognized Obligation Payment Schedule. In addition, after it
21becomes valid, the Recognized Obligation Payment Schedule shall
22supersede the Statement of Indebtedness, which shall no longer
23be prepared nor have any effect under the Community
24Redevelopment Law (Part 1 (commencing with Section 33000)).

25(4) Nothing in the act adding this part is to be construed as
26preventing a successor agency, with the prior approval of the
27oversight board, as described in Section 34179, from making
28payments for enforceable obligations from sources other than those
29listed in the Recognized Obligation Payment Schedule.

30(5) From February 1, 2012, to July 1, 2012, a successor agency
31shall have no authority and is hereby prohibited from accelerating
32payment or making any lump-sum payments that are intended to
33prepay loans unless such accelerated repayments were required
34prior to the effective date of this part.

35(b) Maintain reserves in the amount required by indentures,
36trust indentures, or similar documents governing the issuance of
37outstanding redevelopment agency bonds.

38(c) Perform obligations required pursuant to any enforceable
39obligation.

P16   1(d) Remit unencumbered balances of redevelopment agency
2funds to the county auditor-controller for distribution to the taxing
3entities, including, but not limited to, the unencumbered balance
4of the Low and Moderate Income Housing Fund of a former
5redevelopment agency. In making the distribution, the county
6auditor-controller shall utilize the same methodology for allocation
7and distribution of property tax revenues provided in Section
834188.

9(e) Dispose of assets and properties of the former redevelopment
10agency as directed by the oversight board; provided, however, that
11the oversight board may instead direct the successor agency to
12transfer ownership of certain assets pursuant to subdivision (a) of
13Section 34181. The disposal is to be done expeditiously and in a
14manner aimed at maximizing value. Proceeds from asset sales and
15related funds that are no longer needed for approved development
16projects or to otherwise wind down the affairs of the agency, each
17as determined by the oversight board, shall be transferred to the
18county auditor-controller for distribution as property tax proceeds
19under Section 34188. The requirements of this subdivision shall
20not apply to a successor agency that has been issued a finding of
21completion by the Department of Finance pursuant to Section
2234179.7.

23(f) Enforce all former redevelopment agency rights for the
24benefit of the taxing entities, including, but not limited to,
25continuing to collect loans, rents, and other revenues that were due
26to the redevelopment agency.

27(g) Effectuate transfer of housing functions and assets to the
28appropriate entity designated pursuant to Section 34176.

29(h) Expeditiously wind down the affairs of the redevelopment
30agency pursuant to the provisions of this part and in accordance
31with the direction of the oversight board.

32(i) Continue to oversee development of properties until the
33contracted work has been completed or the contractual obligations
34of the former redevelopment agency can be transferred to other
35parties. Bond proceeds shall be used for the purposes for which
36bonds were sold unless the purposes can no longer be achieved,
37in which case, the proceeds may be used to defease the bonds.

38(j) Prepare a proposed administrative budget and submit it to
39the oversight board for its approval. The proposed administrative
40budget shall include all of the following:

P17   1(1) Estimated amounts for successor agency administrative costs
2for the upcoming six-month fiscal period.

3(2) Proposed sources of payment for the costs identified in
4paragraph (1).

5(3) Proposals for arrangements for administrative and operations
6services provided by a city, county, city and county, or other entity.

7(k) Provide administrative cost estimates, from its approved
8administrative budget that are to be paid from property tax revenues
9deposited in the Redevelopment Property Tax Trust Fund, to the
10county auditor-controller for each six-month fiscal period.

11(l) (1) Before each six-month fiscal period, prepare a
12Recognized Obligation Payment Schedule in accordance with the
13requirements of this paragraph. For each recognized obligation,
14the Recognized Obligation Payment Schedule shall identify one
15or more of the following sources of payment:

16(A) Low and Moderate Income Housing Fund.

17(B) Bond proceeds.

18(C) Reserve balances.

19(D) Administrative cost allowance.

20(E) The Redevelopment Property Tax Trust Fund, but only to
21the extent no other funding source is available or when payment
22from property tax revenues is required by an enforceable obligation
23or by the provisions of this part.

24(F) Other revenue sources, including rents, concessions, asset
25sale proceeds, interest earnings, and any other revenues derived
26from the former redevelopment agency, as approved by the
27oversight board in accordance with this part.

28(2) A Recognized Obligation Payment Schedule shall not be
29deemed valid unless all of the following conditions have been met:

30(A) A Recognized Obligation Payment Schedule is prepared
31by the successor agency for the enforceable obligations of the
32former redevelopment agency. The initial schedule shall project
33the dates and amounts of scheduled payments for each enforceable
34obligation for the remainder of the time period during which the
35redevelopment agency would have been authorized to obligate
36property tax increment had the a redevelopment agency not been
37dissolved.

38(B) The Recognized Obligation Payment Schedule is submitted
39to and duly approved by the oversight board. The successor agency
40shall submit a copy of the Recognized Obligation Payment
P18   1Schedule to the county administrative officer, the county
2auditor-controller, and the Department of Finance at the same time
3that the successor agency submits the Recognized Obligation
4Payment Schedule to the oversight board for approval.

5(C) A copy of the approved Recognized Obligation Payment
6Schedule is submitted to the county auditor-controller and both
7the Controller’s office and the Department of Finance andbegin delete beend deletebegin insert isend insert
8 posted on the successor agency’s Internet Web site.

9(3) The Recognized Obligation Payment Schedule shall be
10forward looking to the next six months. The first Recognized
11 Obligation Payment Schedule shall be submitted to the Controller’s
12office and the Department of Finance by April 15, 2012, for the
13period of January 1, 2012, to June 30, 2012, inclusive. This
14Recognized Obligation Payment Schedule shall include all
15payments made by the former redevelopment agency between
16January 1, 2012, through January 31, 2012, and shall include all
17payments proposed to be made by the successor agency from
18February 1, 2012, through June 30, 2012. Former redevelopment
19agency enforceable obligation payments due, and reasonable or
20necessary administrative costs due or incurred, prior to January 1,
212012, shall be made from property tax revenues received in the
22spring of 2011 property tax distribution, and from other revenues
23and balances transferred to the successor agency.

24(m) The Recognized Obligation Payment Schedule for the period
25of January 1, 2013, to June 30, 2013, shall be submitted by the
26successor agency, after approval by the oversight board, no later
27than September 1, 2012. Commencing with the Recognized
28Obligation Payment Schedule covering the period July 1, 2013,
29through December 31, 2013, successor agencies shall submit an
30oversight board-approved Recognized Obligation Payment
31Schedule to the Department of Finance and to the county
32auditor-controller no fewer than 90 days before the date of property
33tax distribution. The Department of Finance shall make its
34determination of the enforceable obligations and the amounts and
35funding sources of the enforceable obligations no later than 45
36days after the Recognized Obligation Payment Schedule is
37submitted. Within five business days of the department’s
38determination, a successor agency may request additional review
39by the department and an opportunity to meet and confer on
40disputed items. The meet and confer period may vary; an untimely
P19   1submittal of a Recognized Obligation Payment Schedule may result
2in a meet and confer period of less than 30 days. The department
3shall notify the successor agency and the county auditor-controllers
4as to the outcome of its review at least 15 days before the date of
5property tax distribution.

6(1) The successor agency shall submit a copy of the Recognized
7Obligation Payment Schedule to the Department of Finance
8electronically, and the successor agency shall complete the
9Recognized Obligation Payment Schedule in the manner provided
10for by the department. A successor agency shall be in
11noncompliance with this paragraph if it only submits to the
12department an electronic message or a letter stating that the
13oversight board has approved a Recognized Obligation Payment
14Schedule.

15(2) If a successor agency does not submit a Recognized
16Obligation Payment Schedule by the deadlines provided in this
17subdivision, the city, county, or city and county that created the
18redevelopment agency shall be subject to a civil penalty equal to
19ten thousand dollars ($10,000) per day for every day the schedule
20is not submitted to the department. The civil penalty shall be paid
21to the county auditor-controller for allocation to the taxing entities
22under Section 34183. If a successor agency fails to submit a
23Recognized Obligation Payment Schedule by the deadline, any
24creditor of the successor agency or the Department of Finance or
25any affected taxing entity shall have standing to and may request
26a writ of mandate to require the successor agency to immediately
27perform this duty. Those actions may be filed only in the County
28of Sacramento and shall have priority over other civil matters.
29Additionally, if an agency does not submit a Recognized Obligation
30Payment Schedule within ten days of the deadline, the maximum
31administrative cost allowance for that period shall be reduced by
3225 percent.

33(3) If a successor agency fails to submit to the department an
34oversight board-approved Recognized Obligation Payment
35Schedule that complies with all requirements of this subdivision
36within five business days of the date upon which the Recognized
37Obligation Payment Schedule is to be used to determine the amount
38of property tax allocations, the department may determine if any
39amount should be withheld by the county auditor-controller for
40payments for enforceable obligations from distribution to taxing
P20   1entities, pending approval of a Recognized Obligation Payment
2Schedule. The county auditor-controller shall distribute the portion
3of any of the sums withheld pursuant to this paragraph to the
4affected taxing entities in accordance with paragraph (4) of
5subdivision (a) of Section 34183 upon notice by the department
6that a portion of the withheld balances are in excess of the amount
7of enforceable obligations. The county auditor-controller shall
8distribute withheld funds to the successor agency only in
9accordance with a Recognized Obligation Payment Schedule
10approved by the department. County auditor-controllers shall lack
11the authority to withhold any other amounts from the allocations
12provided for under Section 34183 or 34188 unless required by a
13court order.

14(4) (A) The Recognized Obligation Payment Schedule payments
15required pursuant to this subdivision may be scheduled beyond
16the existing Recognized Obligation Payment Schedule cycle upon
17a showing that a lender requires cash on hand beyond the
18Recognized Obligation Payment Schedule cycle.

19(B) When a payment is shown to be due during the Recognized
20Obligation Payment Schedule period, but an invoice or other billing
21document has not yet been received, the successor agency may
22utilize reasonable estimates and projections to support payment
23amounts for enforceable obligations if the successor agency submits
24appropriate supporting documentation of the basis for the estimate
25or projection to the department.

26(C) A Recognized Obligation Payment Schedule may also
27include appropriation of moneys from bonds subject to passage
28during the Recognized Obligation Payment Schedule cycle when
29an enforceable obligation requires the agency to issue the bonds
30and use the proceeds to pay for project expenditures.

31(n) Cause a postaudit of the financial transactions and records
32of the successor agency to be made at least annually by a certified
33public accountant.

begin delete
34

SEC. 5.  

Section 34178 of the Health and Safety Code is
35amended to read:

36

34178.  

(a) Commencing on the operative date of this part,
37agreements, contracts, or arrangements between the city or county,
38or city and county that created the redevelopment agency and the
39redevelopment agency are invalid and shall not be binding on the
40successor agency; provided, however, that a successor entity
P21   1wishing to enter or reenter into agreements with the city, county,
2or city and county that formed the redevelopment agency that it
3is succeeding may do so upon obtaining the approval of its
4oversight board. A successor agency or an oversight board shall
5not exercise the powers granted by this subdivision to restore
6funding for an enforceable obligation that was deleted or reduced
7by the Department of Finance pursuant to subdivision (h) of Section
834179 unless it reflects the decisions made during the meet and
9confer process with the Department of Finance or pursuant to a
10court order.

11(b) Notwithstanding subdivision (a), any of the following
12agreements are not invalid and may bind the successor agency:

13(1) A duly authorized written agreement entered into at the time
14of issuance, but in no event later than December 31, 2010, of
15indebtedness obligations, and solely for the purpose of securing
16or repaying those indebtedness obligations.

17(2) A written agreement between a redevelopment agency and
18the city, county, or city and county that created it that provided
19loans or other startup funds for the redevelopment agency that
20were entered into within two years of the formation of the
21redevelopment agency.

22(3) A joint exercise of powers agreement in which the
23redevelopment agency is a member of the joint powers authority.
24However, upon assignment to the successor agency by operation
25of the act adding this part, the successor agency’s rights, duties,
26and performance obligations under that joint exercise of powers
27agreement shall be limited by the constraints imposed on successor
28agencies by the act adding this part.

29(4) An agreement entered into between the redevelopment
30agency and the city, county, or city and county that created the
31redevelopment agency prior to October 1, 2011, if the agreement
32relates to a project identified, in whole or in part, in an infill
33infrastructure grant program disbursement agreement entered into
34 by the Department of Housing and Community Development
35pursuant to the Infill Infrastructure Grant Program in accordance
36with Part 12 (commencing with Section 53545.12) of Division 31.

37(5) An agreement entered into between the redevelopment
38agency and the city, county, or city and county that created the
39redevelopment agency prior to October 1, 2011, if the agreement
40relates to state highway infrastructure improvements to which the
P22   1redevelopment agency committed funds pursuant to the provisions
2of Section 33445.

end delete
3begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 34180 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
4amended to read:end insert

5

34180.  

All of the following successor agency actions shall first
6be approved by the oversight board:

7(a) The establishment of new repayment terms for outstanding
8loans where the terms have not been specified prior to the date of
9this part. An oversight board shall not have the authority to
10reestablish loan agreements between the successor agency and the
11city, county, or city and county that formed the redevelopment
12agency except as provided in Chapter 9 (commencing with Section
1334191.1).

14(b) The issuance of bonds or other indebtedness or the pledge
15or agreement for the pledge of property tax revenues (formerly tax
16increment prior to the effective date of this part) pursuant to
17subdivision (a) of Section 34177.5.

18(c) Setting aside of amounts in reserves as required by
19indentures, trust indentures, or similar documents governing the
20issuance of outstanding redevelopment agency bonds.

21(d) Merging of project areas.

22(e) Continuing the acceptance of federal or state grants, or other
23forms of financial assistance from either public or private sources,
24if that assistance is conditioned upon the provision of matching
25funds, by the successor entity as successor to the former
26redevelopment agency, in an amount greater than 5 percent.

27(f) (1) If a city, county, or city and county wishes to retain any
28properties or other assets for future redevelopment activities,
29funded from its own funds and under its own auspices, it must
30reach a compensation agreement with the other taxing entities to
31provide payments to them in proportion to their shares of the base
32property tax, as determined pursuant to Section 34188, for the
33value of the property retained.

34(2) If no other agreement is reached on valuation of the retained
35assets, the value will be the fair market value as of the 2011
36property tax lien date as determined by an independent appraiser
37approved by the oversight board.

38(g) Establishment of the Recognized Obligation Payment
39Schedule.

P23   1(h) A request by the successor agency to enter into an agreement
2with the city, county, or city and county that formed the
3redevelopment agency that it is succeeding. An oversight board
4shall not have the authority to reestablish loan agreements between
5the successor agency and the city, county, or city and county that
6formed the redevelopment agency except as provided in Chapter
79 (commencing with Section 34191.1). Any actions to reestablish
8any other agreements that are in furtherance of enforceable
9obligations, with the city, county, or city and county that formed
10the redevelopment agency are invalid until they are included in an
11approved and valid Recognized Obligation Payment Schedule.

12(i) A request by a successor agency or taxing entity to pledge,
13or to enter into an agreement for the pledge of, property tax
14revenues pursuant to subdivision (b) of Section 34178.

begin insert

15(j) A successor agency shall provide notice to the oversight
16board at least 10 days prior to entering into a contract or
17agreement for the use or disposition of properties pursuant to
18paragraph (2) of subdivision (c) of Section 34191.5. During the
1910-day period the oversight board may notify the successor agency
20that the board intends to conduct a hearing to determine whether
21the contract or agreement is consistent with the successor agency’s
22long-range property management plan. The board shall hold the
23hearing and issue findings within 30 days after it so notified the
24successor agency.

end insert
begin delete

25(j)

end delete

26begin insert(k)end insert Any document submitted by a successor agency to an
27oversight board for approval by any provision of this part shall
28also be submitted to the county administrative officer, the county
29auditor-controller, and the Department of Finance at the same time
30that the successor agency submits the document to the oversight
31 board.

32begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 34183 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
33amended to read:end insert

34

34183.  

(a) Notwithstanding any other law, from February 1,
352012, to July 1, 2012, and for each fiscal year thereafter, the county
36auditor-controller shall, after deducting administrative costs
37allowed under Section 34182 and Section 95.3 of the Revenue and
38Taxation Code, allocate moneys in each Redevelopment Property
39Tax Trust Fund as follows:

P24   1(1) Subject to any prior deductions required by subdivision (b),
2first, the county auditor-controller shall remit from the
3Redevelopment Property Tax Trust Fund to each local agency and
4school entity an amount of property tax revenues in an amount
5equal to that which would have been received under Section 33401,
633492.140, 33607, 33607.5, 33607.7, or 33676, as those sections
7read on January 1, 2011, or pursuant to any passthrough agreement
8between a redevelopment agency and a taxing entity that was
9entered into prior to January 1, 1994, that would be in force during
10that fiscal year, had the redevelopment agency existed at that time.
11The amount of the payments made pursuant to this paragraph shall
12be calculated solely on the basis of passthrough payment
13obligations, existing prior to the effective date of this part and
14continuing as obligations of successor entities, shall occur no later
15than May 16, 2012, and no later than June 1, 2012, and each
16January 2 and June 1 thereafter. Notwithstanding subdivision (e)
17of Section 33670, that portion of the taxes in excess of the amount
18identified in subdivision (a) of Section 33670, which are
19attributable to a tax rate levied by a taxing entity for the purpose
20of producing revenues in an amount sufficient to make annual
21repayments of the principal of, and the interest on, any bonded
22indebtedness for the acquisition or improvement of real property
23shall be allocated to, and when collected shall be paid into, the
24fund of that taxing entity. The amount of passthrough payments
25computed pursuant to this section, including any passthrough
26agreements, shall be computed as though the requirement to set
27aside funds for the Low and Moderate Income Housing Fund was
28still in effect.

29(2) Second, on June 1, 2012, and each January 2 and June 1
30thereafter, to each successor agency for payments listed in its
31Recognized Obligation Payment Schedule for the six-month fiscal
32period beginning January 1, 2012, and July 1, 2012, and each
33January 2 and June 1 thereafter, in the following order of priority:

34(A) Debt service payments scheduled to be made for tax
35allocation bonds.

36(B) Payments scheduled to be made on revenue bonds, but only
37to the extent the revenues pledged for them are insufficient to make
38the payments and only if the agency’s tax increment revenues were
39also pledged for the repayment of the bonds.

P25   1(C) Payments scheduled for other debts and obligations listed
2in the Recognized Obligation Payment Schedule that are required
3to be paid from former tax increment revenue.

4(3) Third, on June 1, 2012, and each January 2 and June 1
5thereafter, to each successor agency for the administrative cost
6allowance, as defined in Section 34171, for administrative costs
7set forth in an approved administrative budget for those payments
8required to be paid from former tax increment revenues.

begin insert

9(4) Fourth, on January 2, 2014, and each January 2 and June
101 thereafter until June 1, 2018, for the housing entity administrative
11cost allowance payable to the city, county, or city and county that
12has assumed the housing duties of the former redevelopment
13agency pursuant to Section 34176.

end insert
begin delete

14(4) Fourth,

end delete

15begin insert(5)end insertbegin insertend insertbegin insertFifth, end inserton June 1, 2012, and each January 2 and June 1
16thereafter, any moneys remaining in the Redevelopment Property
17Tax Trust Fund after the payments and transfers authorized by
18paragraphs (1) tobegin delete (3),end deletebegin insert (4),end insert inclusive, shall be distributed to local
19agencies and school entities in accordance with Section 34188.

20(b) If the successor agency reports, no later than April 1, 2012,
21and May 1, 2012, and each December 1 and May 1 thereafter, to
22the county auditor-controller that the total amount available to the
23successor agency from the Redevelopment Property Tax Trust
24Fund allocation to that successor agency’s Redevelopment
25Obligation Retirement Fund, from other funds transferred from
26each redevelopment agency, and from funds that have or will
27become available through asset sales and all redevelopment
28operations, are insufficient to fund the payments required by
29paragraphs (1) tobegin delete (3),end deletebegin insert (4),end insert inclusive, of subdivision (a) in the next
30six-month fiscal period, the county auditor-controller shall notify
31the Controller and the Department of Finance no later than 10 days
32from the date of that notification. The county auditor-controller
33shall verify whether the successor agency will have sufficient funds
34from which to service debts according to the Recognized
35Obligation Payment Schedule and shall report the findings to the
36Controller. If the Controller concurs that there are insufficient
37funds to pay required debt service, the amount of the deficiency
38shall be deducted first from the amount remaining to be distributed
39to taxing entities pursuant to paragraphbegin delete (4),end deletebegin insert (5),end insert and if that amount
40is exhausted, from amounts available for distribution for
P26   1administrative costs inbegin delete paragraphend deletebegin insert paragraphsend insert (3)begin insert and (4), with
2those amounts in paragraph (3) to be exhausted firstend insert
. If an agency,
3pursuant to the provisions of Section 33492.15, 33492.72, 33607.5,
433671.5, 33681.15, or 33688 or as expressly provided in a
5passthrough agreement entered into pursuant to Section 33401,
6made passthrough payment obligations subordinate to debt service
7payments required for enforceable obligations, funds for servicing
8bond debt may be deducted from the amounts for passthrough
9payments under paragraph (1), as provided in those sections, but
10only to the extent that the amounts remaining to be distributed to
11taxing entities pursuant to paragraphbegin delete (4)end deletebegin insert (5)end insert and the amounts
12available for distribution for administrative costs inbegin delete paragraphend delete
13begin insert paragraphsend insert (3)begin insert and (4)end insert have all been exhausted.

14(c) The county treasurer may loan any funds from the county
15treasury to the Redevelopment Property Tax Trust Fund of the
16successor agency for the purpose of paying an item approved on
17the Recognized Obligation Payment Schedule at the request of the
18Department of Finance that are necessary to ensure prompt
19payments of redevelopment agency debts. An enforceable
20obligation is created for repayment of those loans.

21(d) The Controller may recover the costs of audit and oversight
22required under this part from the Redevelopment Property Tax
23Trust Fund by presenting an invoice therefor to the county
24auditor-controller who shall set aside sufficient funds for and
25disburse the claimed amounts prior to making the next distributions
26to the taxing entities pursuant to Section 34188. Subject to the
27approval of the Director of Finance, the budget of the Controller
28may be augmented to reflect the reimbursement, pursuant to
29Section 28.00 of the Budget Act.

30(e) Within 10 days of each distribution of property tax, the
31county auditor-controller shall provide a report to the department
32regarding the distribution for each successor agency that includes
33information on the total available for allocation, the passthrough
34amounts and how they were calculated, the amounts distributed
35to successor agencies, and the amounts distributed to taxing entities
36in a manner and form specified by the department. This reporting
37requirement shall also apply to distributions required under
38subdivision (b) of Section 34183.5.

P27   1

begin deleteSEC. 6.end delete
2begin insertSEC. 7.end insert  

Section 34191.4 of the Health and Safety Code is
3amended to read:

4

34191.4.  

The following provisions shall apply to any successor
5agency that has been issued a finding of completion by the
6Department of Finance:

7(a) All real property and interests in real property identified in
8subparagraph (C) of paragraph (5) of subdivision (c) of Section
934179.5 shall be transferred to the Community Redevelopment
10Property Trust Fund of the successor agency upon approval by the
11Department of Finance of the long-range property management
12plan submitted by the successor agency pursuant to subdivision
13(b) of Section 34191.7 unless that property is subject to the
14requirements of any existing enforceable obligation.

15(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
16application by the successor agency and approval by the oversight
17board, loan agreements entered into between the redevelopment
18agency and the city, county, or city and county that createdbegin delete byend delete the
19redevelopment agency shall be deemed to be enforceable
20obligations provided that the oversight board makes a finding that
21the loan was for legitimate redevelopment purposes.

22(2) If the oversight board finds that the loan is an enforceable
23obligation, the accumulated interest on the remaining principal
24amount of the loan shall be recalculated from origination at the
25interest rate earned by funds deposited into the Local Agency
26Investment Fund. The loan shall be repaid to the city, county, or
27city and county in accordance with a defined schedule over a
28reasonable term of years at an interest rate not to exceed the interest
29rate earned by funds deposited into the Local Agency Investment
30Fund. The annual loan repayments provided for in the recognized
31obligations payment schedules shall be subject to all of the
32following limitations:

33(A) Loan repayments shall not be made prior to the 2013-14
34fiscal year. Beginning in the 2013-14 fiscal year, the maximum
35repayment amount authorized each fiscal year for repayments
36made pursuant to this subdivision and paragraph (7) of subdivision
37(e) of Section 34176 combined shall be equal to one-half of the
38increase between the amount distributed to the taxing entities
39pursuant to paragraphbegin delete (4)end deletebegin insert (5)end insert of subdivision (a) of Section 34183
40in that fiscal year and the amount distributed to taxing entities
P28   1pursuant to that paragraph in the 2012-13 base yearbegin insert, provided,
2however, that calculation of the amount distributed to taxing
3entities during the 2012-13 base year shall not include any
4amounts distributed to taxing entities pursuant to the due diligence
5review process established in Sections 34179.5 to 34179.8,
6inclusiveend insert
. Loan or deferral repayments made pursuant to this
7subdivision shall be second in priority to amounts to be repaid
8pursuant to paragraph (7) of subdivision (e) of Section 34176.

9(B) Repayments received by the city, countybegin insert,end insert or city and county
10that formed the redevelopment agency shall first be used to retire
11any outstanding amounts borrowed and owed to the Low and
12Moderate Income Housing Fund of the former redevelopment
13agency for purposes of the Supplemental Educational Revenue
14Augmentation Fund and shall be distributed to the Low and
15Moderate Income Housing Asset Fund established by subdivision
16(d) of Section 34176.

17(C) Twenty percent of any loan repayment shall be deducted
18from the loan repayment amount and shall be transferred to the
19Low and Moderate Income Housing Asset Fund, after all
20outstanding loans from the Low and Moderate Income Housing
21Fund for purposes of the Supplemental Educational Revenue
22Augmentation Fund have been paid.

begin delete

23(D) The loan repayment schedule shall not include amounts
24paid back pursuant to the due diligence review process during the
252012-13 base year.

end delete

26(c) (1) Bond proceeds derived from bonds issued on or before
27December 31, 2010, shall be used for the purposes for which the
28bonds were sold.

29(2) (A) Notwithstanding Section 34177.3 or any other
30conflicting provision of law, bond proceeds in excess of the
31amounts needed to satisfy approved enforceable obligations shall
32thereafter be expended in a manner consistent with the original
33bond covenants. Enforceable obligations may be satisfied by the
34creation of reserves for projects that are the subject of the
35enforceable obligation and that are consistent with the contractual
36obligations for those projects, or by expending funds to complete
37the projects. An expenditure made pursuant to this paragraph shall
38constitute the creation of excess bond proceeds obligations to be
39paid from the excess proceeds. Excess bond proceeds obligations
P29   1shall be listed separately on the Recognized Obligation Payment
2Schedule submitted by the successor agency.

3(B) If remaining bond proceeds cannot be spent in a manner
4consistent with the bond covenants pursuant to subparagraph (A),
5the proceeds shall be used to defease the bonds or to purchase
6those same outstanding bonds on the open market for cancellation.

7

begin deleteSEC. 7.end delete
8begin insertSEC. 8.end insert  

Section 34191.5 of the Health and Safety Code is
9amended to read:

10

34191.5.  

(a) There is hereby established a Community
11Redevelopment Property Trust Fund, administered by the successor
12agency, to serve as the repository of the former redevelopment
13agency’s real properties identified in subparagraph (C) of paragraph
14(5) of subdivision (c) of Section 34179.5.

15(b) The successor agency shall prepare a long-range property
16management plan that addresses the disposition and use of the real
17properties of the former redevelopment agency. The report shall
18be submitted to the oversight board and the Department of Finance
19for approval no later than six months following the issuance to the
20successor agency of the finding of completion.

21(c) The long-range property management plan shall do all of
22the following:

23(1) Include an inventory of all properties in the trust. The
24inventory shall consist of all of the following information:

25(A) The date of the acquisition of the property and the value of
26the property at that time, and an estimate of the current value of
27the property.

28(B) The purpose for which the property was acquired.

29(C) Parcel data, including address, lot size, and current zoning
30in the former agency redevelopment plan or specific, community,
31or general plan.

32(D) An estimate of the current value of the parcel including, if
33available, any appraisal information.

34(E) An estimate of any lease, rental, or any other revenues
35generated by the property, and a description of the contractual
36requirements for the disposition of those funds.

37(F) The history of environmental contamination, including
38designation as a brownfield site, any related environmental studies,
39and history of any remediation efforts.

P30   1(G) A description of the property’s potential for transit-oriented
2development and the advancement of the planning objectives of
3the successor agency.

4(H) A brief history of previous development proposals and
5activity, including the rental or lease of property.

6(2) Address the use or disposition of all of the properties in the
7trust. Permissible uses include the retention of the property for
8governmental use pursuant to subdivision (a) of Section 34181,
9the retention of the property for future development, the sale of
10the property, or the use of the property to fulfill an enforceable
11obligation. The plan shall separately identify and list properties in
12the trust dedicated to governmental use purposes and properties
13retained for purposes of fulfilling an enforceable obligation. With
14respect to the use or disposition of all other properties, all of the
15following shall apply:

16(A) (i) If the plan directs the use or liquidation of the property
17for a project identified in an approved redevelopment plan, the
18property shall transfer to the city, county, or city and county.

19(ii) For purposes of this subparagraph, the term “identified in
20an approved redevelopment plan” includes properties listed in a
21communitybegin delete plan,end deletebegin insert plan orend insert a five-year implementationbegin delete plan, or other
22similar documentend delete
begin insert planend insert.

23(B) If the plan directs the liquidation of the property or the use
24of revenues generated from the property, such as lease or parking
25revenues, for any purpose other than to fulfill an enforceable
26obligation or other than that specified in subparagraph (A), the
27proceeds from the sale shall be distributed as property tax to the
28taxing entities.

29(C) Property shall not be transferred to a successor agency, city,
30county, or city and county, unless the long-range property
31management plan has been approved by the oversight board and
32the Department of Finance.

33begin insert

begin insertSEC. 9.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35this act provides for offsetting savings to local agencies or school
36districts that result in no net costs to the local agencies or school
37districts, within the meaning of Section 17556 of the Government
38Code.

end insert


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