as amended, DeSaulnier.
begin deleteEnterprise zones: applications.end delete
The Enterprise Zone Act provides for the designation of enterprise zones by the Department of Housing and Community Development, based on the department’s approval of applications from a city, county, or city and county with a geographic area meeting certain criteria. The act, among other things, sets forth the application process.end delete
This bill, for any application for an enterprise zone designation submitted on or after January 1, 2014, if any portion of the proposed zone is within, or was previously within, the boundaries of a previously designated zone, or if any portions of the proposed zone are within, or previously were within, the boundaries of 2 or more previously designated enterprise zones, would prohibit the proposed enterprise zone from exceeding a specified aggregate size.end delete
begin deleteno end delete.
State-mandated local program: no.
The people of the State of California do enact as follows:
(a) Every redevelopment agency shall file with the
4Controller within six months of the end of the agency’s fiscal year
5a copy of the report required by Section 33080.1. In addition, each
6redevelopment agency shall file with the department a copy of the
7audit report required by subdivision (a) of Section 33080.1. The
8reports shall be made in the time, format, and manner prescribed
9by the Controller after consultation with the department.
10(b) The redevelopment agency shall provide a copy of the report
11required by Section 33080.1, upon the written request of any person
12or any taxing agency. If the report does not include detailed
13information regarding administrative costs, professional services,
14or other expenditures, the person
15or taxing agency may request, and the redevelopment agency shall
16provide, that information
begin delete. The person or taxing agency shall .
17reimburse the redevelopment agency for all actual and reasonable
18costs incurred in connection with the provision of the requested
Every redevelopment agency shall submit the final
24report of any audit undertaken by any other local, state, or federal
25government entity to its legislative body within 30 days of receipt
26of that audit report. In addition, every redevelopment agency shall
27present an annual report to its legislative body within six months of the end of the agency’s
31fiscal year. The annual report shall contain all of the following:
P5 1(a) (1) An independent financial audit
report for the previous
2fiscal year. “Audit report” means an examination of, and opinion
3on, the financial statements of the agency which present the results
4of the operations and financial position of the agency, including
5all financial activities with moneys required to be held in a separate
6Low and Moderate Income Housing Fund pursuant to Section
733334.3. This audit shall be conducted by a certified public
8accountant or public accountant, licensed by the State of California,
9in accordance with Government Auditing Standards adopted by
10the Comptroller General of the United States. The audit report
11shall meet, at a minimum, the audit guidelines prescribed by the
12Controller’s office pursuant to Section 33080.3 and also include
13a report on the agency’s compliance with laws, regulations, and
14administrative requirements governing activities of the agency,
15and a calculation of the excess surplus in the Low and Moderate
16Income Housing Fund as defined in subdivision (g) of Section
25 However, the legislative body may elect to
26inclusion in the audit report any distinct activity of the agency that
27is funded exclusively by the federal government and that is subject
28to audit by the federal government.
29(b) A fiscal statement for the previous fiscal year that contains
30the information required pursuant to Section 33080.5.
31(c) A description of the agency’s activities in the previous fiscal
32year affecting housing and displacement that contains the
33information required by Sections 33080.4 and 33080.7.
34(d) A description of the agency’s progress, including specific
35actions and expenditures, in alleviating blight in the previous fiscal
37(e) A list of, and status report on, all loans made by the
38redevelopment agency that are fifty thousand dollars ($50,000) or
39more, that in the previous fiscal year were in default, or not in
P6 1compliance with the terms of the loan approved by the
3(f) A description of the total number and nature of the properties
4that the agency owns and those properties the agency has acquired
5in the previous fiscal year.
6(g) A list of the fiscal years that the agency expects each of the
7following time limits to expire:
8(1) The time limit for the commencement for eminent domain
9proceedings to acquire property within the project area.
10(2) The time limit for the establishment of loans, advances, and
11indebtedness to finance the redevelopment project.
12(3) The time limit for the effectiveness of the redevelopment
14(4) The time limit to repay indebtedness with the proceeds of
15 Any other information that the agency believes useful to
16explain its programs, including, but not limited to, the number of
17jobs created and lost in the previous fiscal year as a result of its
(a) When the agency presents the annual report to
22the legislative body pursuant to Section 33080.1, the agency shall
23inform the legislative body of any major audit violations of this
24part based on the independent financial audit report. The agency shall inform
26the legislative body that the failure to correct a major audit
27violation of this part may result in the filing of an action by the
28Attorney General pursuant to Section 33080.8.
P9 1(b)end delete
2 The legislative body shall review any report submitted
3pursuant to Section 33080.1 and take any action it deems
4appropriate on that report no later than the first meeting of the
5legislative body occurring more than 21 days from the receipt of
(a) On or before April 1 of each year, the Controller
10shall compile a list of agencies that appear to have major audit
11violations as defined in this section, based on the independent
12financial audit reports filed with the Controller pursuant to Section
15(b) On or before June 1 of each year, for each major audit
16violation of each agency identified pursuant to subdivision (a), the
17Controller shall determine if the agency has corrected the major
18audit violation. Before making this determination, the Controller
19shall consult with each affected agency. In making this determination,
21the Controller may request and shall receive the prompt assistance
22of public officials and public agencies, including, but not limited
23to, the affected agencies, counties, and cities. If the Controller
24determines that an agency has not corrected the major audit
25violation, the Controller shall send a list of those agencies, their
26major violations, all relevant documents, and the affidavits required
27pursuant to subdivision (d) to the Attorney General for action
28pursuant to this section.
29(c) For each agency that the Controller refers to the Attorney
30General pursuant to subdivision (b), the Controller shall notify the
31agency and the legislative body that the agency was on the list sent
32to the Attorney General. The Controller’s notice shall inform the
33agency and the legislative body of the duties imposed by Section
35(d) Within 45 days of receiving the referral from the Controller
36pursuant to subdivision (b), the Attorney General shall determine
37whether to file an action to compel the agency’s compliance with
38this part. Any action filed pursuant to this section shall be
39commenced in the
begin delete County of Sacramentoend delete. The time limit
P10 1for the Attorney General to make this determination is directory
2and not mandatory. Any action shall be accompanied by an
3affidavit or affidavits, to be provided by the Controller with the
4referral, setting forth facts that demonstrate a likelihood of success
5on the merits of the claim that the agency has a major audit
6violation. The affidavit shall also certify that the agency and the
7legislative body were informed not less than 10 days prior to the
8date on which the action was filed. The agency shall file a response
9to any action filed by the Attorney General pursuant to this section
10within 15 days of service.
11(e) (1) On the earliest day that the business of the court will
12permit, but not later than 45 days after the filing of an action
13pursuant to this section, the court shall conduct a hearing to
14determine if good cause exists for believing that the agency has a
15major audit violation and has not corrected that violation.
16(2) If the court determines that no good cause exists or that the
17agency had a major audit violation but corrected the major audit
18violation, the court shall dismiss the action.
19(3) If the court determines that there is good cause
20that the agency has a major audit violation and has not corrected
21that major audit violation, the court shall immediately issue an
22order that prohibits the agency from doing any of the following:
23(A) Encumbering any funds or expending any money derived
24from any source except to pay the obligations designated in
25subparagraphs (A) to
begin delete (G),end delete inclusive, of paragraph (1) of
26subdivision (e) of Section 33334.12.
29(B) Adopting a redevelopment plan.
30(C) Amending a redevelopment plan except to correct the major
31audit violation that is the subject of the action.
32(D) Issuing, selling, offering for sale, or delivering any bonds
33or any other evidence of indebtedness.
38(E) Incurring any indebtedness.
4(f) In a case that is subject to paragraph (3) of subdivision (e),
5the court shall also set a hearing on the matter within 60 days.
7(g) If, on the basis of that subsequent hearing, the court
8determines that the agency has a major audit violation and has not
9corrected that violation, the court shall order the agency to comply
10with this part within 30 days, and order the agency to forfeit to the
begin delete no more than:end delete
Two thousand dollars ($2,000) in the case of a community
16redevelopment agency with a total revenue, in the prior year, of
17less than one hundred thousand dollars ($100,000) as reported in
18the Controller’s annual financial reports.
Five thousand dollars ($5,000) in the case of a community
20redevelopment agency with a total revenue, in the prior year, of
21at least one hundred thousand dollars ($100,000) but less than two
22hundred fifty thousand dollars ($250,000) as reported in the
23Controller’s annual financial reports.
Ten thousand dollars ($10,000) in the case of a community
25redevelopment agency with a total revenue, in the prior year, of
26at least two hundred fifty thousand dollars ($250,000) as reported
27in the Controller’s annual financial reports.
28(h) The order issued by the court pursuant to paragraph (3) of
29subdivision (e) shall continue in effect until the court determines
30that the agency has corrected the major audit violation. If the court
31determines that the agency has corrected the major audit violation,
32the court may dissolve its order issued pursuant to paragraph (3)
33of subdivision (e) at any time.
34(i) An action filed pursuant to this section to compel an agency
35to comply with this part is in addition to any other remedy, and is
36not an exclusive means to compel compliance.
P12 1(j) As used in this section, “major audit violation” means that,
2for the fiscal year in question, an agency did not:
3(1) File an independent financial audit report that substantially
4conforms with the requirements of subdivision (a) of Section
6(2) File a fiscal statement that includes substantially all of the
7information required by Section 33080.5.
8(3) Establish time limits, as required by Section 33333.6.
9(4) Deposit all required tax increment revenues directly into the Low
11and Moderate Income Housing Fund upon receipt, as required by
12Section 33334.3, 33334.6, 33487, or 33492.16.
13(5) Establish a Low and Moderate Income Housing Fund, as
14required by subdivision (a) of Section 33334.3.
15(6) Accrue interest earned by the Low and Moderate Income
16Housing Fund to that fund, as required by subdivision (b) of
begin deleteDetermine that the planning and administrative costs the Low and Moderate Income Housing Fund
19charged to end delete
begin delete are necessary for the production, improvement, or preservation of
23low- and moderate-income housing, asend delete
24 required by subdivision
begin delete (d)end delete of Section begin delete 33334.3end delete.
25(8) Initiate development of housing on real property acquired
26using moneys from the Low and Moderate Income Housing Fund
27or sell the property, as required by Section 33334.16.
28(9) Adopt an implementation plan, as required by Section
(a) Except as provided in subdivision (k), not less
13than 20 percent of all taxes that are allocated to the agency pursuant
14to Section 33670 shall be used by the agency for the purposes of
15increasing, improving, and preserving the community’s supply of
16low- and moderate-income housing available at affordable housing
17cost, as defined by Section 50052.5, to persons and families of
18low or moderate income, as defined in Section 50093, lower
19income households, as defined by Section 50079.5, very low
20income households, as defined in Section 50105, and extremely
21low income households, as defined by Section 50106, that is
22occupied by these persons and families, unless one of the following
23findings is made annually by resolution:
24(1) (A) That no
need exists in the community to improve,
25increase, or preserve the supply of low- and moderate-income
26housing, including housing for very low income households in a
27manner that would benefit the project area and that this finding is
28consistent with the housing element of the community’s general
29plan required by Article 10.6 (commencing with Section 65580)
30of Chapter 3 of Division 1 of Title 7 of the Government Code,
31including its share of the regional housing needs of very low
32income households and persons and families of low or moderate
34(B) This finding shall only be made if the housing element of
35the community’s general plan demonstrates that the community
36does not have a need to improve, increase, or preserve the supply
37of low- and moderate-income housing available at affordable
38housing cost to persons and families of low or moderate income
39and to very low income households. This finding shall only be
40made if it is consistent with the planning agency’s annual report
P16 1to the legislative body on implementation of the housing element
2required by subdivision (b) of Section 65400 of the Government
3Code. No agency of a charter city shall make this finding unless
4the planning agency submits the report pursuant to subdivision (b)
5of Section 65400 of the Government Code. This finding shall not
6take effect until the agency has complied with subdivision (b) of
8(2) (A) That some stated percentage less than 20 percent of the
9taxes that are allocated to the agency pursuant to Section 33670
10is sufficient to meet the housing needs of the community, including
11its share of the regional housing needs of persons and families of
12low- or moderate-income and very low income households, and
13that this finding is consistent with the housing element of the
14community’s general plan required by Article 10.6 (commencing
15with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
17(B) This finding shall only be made if the housing element of
18the community’s general plan demonstrates that a percentage of
19less than 20 percent will be sufficient to meet the community’s
20need to improve, increase, or preserve the supply of low- and
21moderate-income housing available at affordable housing cost to
22persons and families of low or moderate income and to very low
23income households. This finding shall only be made if it is
24consistent with the planning agency’s annual report to the
25legislative body on implementation of the housing element required
26by subdivision (b) of Section 65400 of the Government Code. No
27agency of a charter city shall make this finding unless the planning
28agency submits the report pursuant to subdivision (b) of Section
2965400 of the Government Code. This finding shall not take effect
30until the agency has complied with subdivision (b) of this section.
31(C) For purposes of making the findings specified in this
32paragraph and paragraph (1), the housing element of the general
33plan of a city, county, or city and county shall be current, and shall
34have been determined by the department pursuant to Section 65585
35to be in substantial compliance with Article 10.6 (commencing
36with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
38(3) (A) That the community is making a substantial effort to
39meet its existing and projected housing needs, including its share
40of the regional housing needs, with respect to persons and families
P17 1of low and moderate income, particularly very low income
2households, as identified in the housing element of the
3community’s general plan required by Article 10.6 (commencing
4with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
5Government Code, and that this effort, consisting of direct financial
6contributions of local funds used to increase and improve the
7supply of housing affordable to, and occupied by, persons and
8families of low or moderate income and very low income
9households is equivalent in impact to the funds otherwise required
10to be set aside pursuant to this section. In addition to any other
11local funds, these direct financial contributions may include federal
12or state grants paid directly to a community and that the community
13has the discretion of using for the purposes for which moneys in
14the Low and Moderate Income Housing Fund may be used. The
15legislative body shall consider the need that can be reasonably
16foreseen because of displacement of persons and families of low
17or moderate income or very low income households from within,
18or adjacent to, the project area, because of increased employment
19opportunities, or because of any other direct or indirect result of
20implementation of the redevelopment plan. No finding under this
21subdivision may be made until the community has provided or
22ensured the availability of replacement dwelling units as defined
23in Section 33411.2 and until it has complied with Article 9
24(commencing with Section 33410).
25(B) In making the determination that other financial
26contributions are equivalent in impact pursuant to this subdivision,
27the agency shall include only those financial contributions that are
28directly related to programs or activities authorized under
30(C) The authority for making the finding specified in this
31paragraph shall expire on June 30, 1993, except that the expiration
32shall not be deemed to impair contractual obligations to
33bondholders or private entities incurred prior to May 1, 1991, and
34made in reliance on the provisions of this paragraph. Agencies that
35make this finding after June 30, 1993, shall show evidence that
36the agency entered into the specific contractual obligation with
37the specific intention of making a finding under this paragraph in
38order to provide sufficient revenues to pay off the indebtedness.
39(b) Within 10 days following the making of a finding under
40either paragraph (1) or (2) of subdivision (a), the agency shall send
P18 1the Department of Housing and Community Development a copy
2of the finding, including the factual information supporting the
3finding and other factual information in the housing element that
4demonstrates that either (1) the community does not need to
5increase, improve, or preserve the supply of housing for low- and
6moderate-income households, including very low income
7households, or (2) a percentage less than 20 percent will be
8sufficient to meet the community’s need to improve, increase, and
9preserve the supply of housing for low- and moderate-income
10households, including very low income households. Within 10
11days following the making of a finding under paragraph (3) of
12subdivision (a), the agency shall send the Department of Housing
13and Community Development a copy of the finding, including the
14factual information supporting the finding that the community is
15making a substantial effort to meet its existing and projected
16housing needs. Agencies that make this finding after June 30, 1993,
17shall also submit evidence to the department of its contractual
18obligations with bondholders or private entities incurred prior to
19May 1, 1991, and made in reliance on this finding.
20(c) In any litigation to challenge or attack a finding made under
21paragraph (1), (2), or (3) of subdivision (a), the burden shall be
22upon the agency to establish that the finding is supported by
23substantial evidence in light of the entire record before the agency.
24If an agency is determined by a court to have knowingly
25misrepresented any material facts regarding the community’s share
26of its regional housing need for low- and moderate-income housing,
27including very low income households, or the community’s
28production record in meeting its share of the regional housing need
29pursuant to the report required by subdivision (b) of Section 65400
30of the Government Code, the agency shall be liable for all court
31costs and plaintiff’s attorney’s fees, and shall be required to allocate
32not less than 25 percent of the agency’s tax increment revenues to
33its Low and Moderate Income Housing Fund in each year
35(d) Nothing in this section shall be construed as relieving any
36other public entity or entity with the power of eminent domain of
37any legal obligations for replacement or relocation housing arising
38out of its activities.
39(e) In carrying out the purposes of this section, the agency may
40exercise any or all of its powers for the construction, rehabilitation,
P19 1or preservation of affordable housing for extremely low, very low,
2low- and moderate-income persons or families, including the
4(1) Acquire real property or building sites subject to Section
6(2) (A) Improve real property or building sites with onsite or
7offsite improvements, but only if both (i) the improvements are
8part of the new construction or rehabilitation of affordable housing
9units for low- or moderate-income persons that are directly
10benefited by the improvements, and are a reasonable and
11fundamental component of the housing units, and (ii) the agency
12requires that the units remain available at affordable housing cost
13to, and occupied by, persons and families of extremely low, very
14low, low, or moderate income for the same time period and in the
15same manner as provided in subdivision (c) and paragraph (2) of
16subdivision (f) of Section 33334.3.
17(B) If the newly constructed or rehabilitated housing units are
18part of a larger project and the agency improves or pays for onsite
19or offsite improvements pursuant to the authority in this
20subdivision, the agency shall pay only a portion of the total cost
21of the onsite or offsite improvement. The maximum percentage
22of the total cost of the improvement paid for by the agency shall
23be determined by dividing the number of housing units that are
24affordable to low- or moderate-income persons by the total number
25of housing units, if the project is a housing project, or by dividing
26the cost of the affordable housing units by the total cost of the
27project, if the project is not a housing project.
28(3) Donate real property to private or public persons or entities.
29(4) Finance insurance premiums pursuant to Section 33136.
30(5) Construct buildings or structures.
31(6) Acquire buildings or structures.
32(7) Rehabilitate buildings or structures.
33(8) Provide subsidies to, or for the benefit of, extremely low
34income households, as defined by Section 50106, very low income
35households, as defined by Section 50105, lower income
36households, as defined by Section 50079.5, or persons and families
37of low or moderate income, as defined by Section 50093, to the
38extent those households cannot obtain housing at affordable costs
39on the open market. Housing units available on the open market
40are those units developed without direct government subsidies.
P20 1(9) Develop plans, pay principal and interest on bonds, loans,
2advances, or other indebtedness, or pay financing or carrying
4(10) Maintain the community’s supply of mobilehomes.
5(11) Preserve the availability to lower income households of
6affordable housing units in housing developments that are assisted
7or subsidized by public entities and that are threatened with
8imminent conversion to market rates.
9(f) The agency may use these funds to meet, in whole or in part,
10the replacement housing provisions in Section 33413. However,
11nothing in this section shall be construed as limiting in any way
12the requirements of that section.
13(g) (1) The agency may use these funds
inside or outside the
14project area. The agency may only use these funds outside the
15project area upon a resolution of the agency and the legislative
16body that the use will be of benefit to the project. The
17determination by the agency and the legislative body shall be final
18and conclusive as to the issue of benefit to the project area. The
19Legislature finds and declares that the provision of replacement
20housing pursuant to Section 33413 is always of benefit to a project.
21Unless the legislative body finds, before the redevelopment plan
22is adopted, that the provision of low- and moderate-income housing
23outside the project area will be of benefit to the project, the project
24area shall include property suitable for low- and moderate-income
26(2) (A) The Contra Costa County Redevelopment Agency may
27use these funds anywhere within the unincorporated territory, or
28within the incorporated limits of the City of Walnut Creek on sites
29contiguous to the Pleasant Hill BART Station Area Redevelopment
30Project area. The agency may only use these funds outside the
31project area upon a resolution of the agency and board of
32supervisors determining that the use will be of benefit to the project
33area. In addition, the agency may use these funds within the
34incorporated limits of the City of Walnut Creek only if the agency
35and the board of supervisors find all of the following:
36(i) Both the County of Contra Costa and the City of Walnut
37Creek have adopted and are implementing complete and current
38housing elements of their general plans that the Department of
39Housing and Community Development has determined to be in
40compliance with the requirements of Article 10.6 (commencing
P21 1with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
3(ii) The development to be funded shall not result in any
4 residential displacement from the site where the development is
5to be built.
6(iii) The development to be funded shall not be constructed in
7an area that currently has more than 50 percent of its population
8comprised of racial minorities or low-income families.
9(iv) The development to be funded shall allow construction of
10affordable housing closer to a rapid transit station than could be
11constructed in the unincorporated territory outside the Pleasant
12Hill BART Station Area Redevelopment Project.
13(B) If the agency uses these funds within the incorporated limits
14of the City of Walnut Creek, all of the following requirements
16(i) The funds shall be used only for the acquisition of land for,
17and the design and construction of, the development of housing
18containing units affordable to, and occupied by, low- and
20(ii) If less than all the units in the development are affordable
21to, and occupied by, low- or moderate-income persons, any agency
22assistance shall not exceed the amount needed to make the housing
23affordable to, and occupied by, low- or moderate-income persons.
24(iii) The units in the development that are affordable to, and
25occupied by, low- or moderate-income persons shall remain
26affordable for a period of at least 55 years.
27(iv) The agency and the City of Walnut Creek shall determine,
28if applicable, whether Article XXXIV of the California Constitution
29permits the development.
30(h) The Legislature finds and declares that expenditures or
31obligations incurred by the agency pursuant to this section shall
32constitute an indebtedness of the project.
33(i) This section shall only apply to taxes allocated to a
34redevelopment agency for which a final redevelopment plan is
35adopted on or after January 1, 1977, or for any area that is added
36to a project by an amendment to a redevelopment plan, which
37amendment is adopted on or after the effective date of this section.
38An agency may, by resolution, elect to make all or part of the
39requirements of this section applicable to any redevelopment
40project for which a redevelopment plan was adopted prior to
P22 1January 1, 1977, subject to any indebtedness incurred prior to the
3(j) (1) (A) An action to compel compliance with the
4requirement of Section 33334.3 to deposit not less than 20 percent
5of all taxes that are allocated to the agency pursuant to Section
633670 in the Low and Moderate Income Housing
7Fund shall be commenced within 10 years of the alleged violation.
8A cause of action for a violation accrues on the last day of the
9fiscal year in which the funds were required to be deposited in the
10Low and Moderate Income Housing Fund.
11(B) An action to compel compliance with the requirement of
12this section or Section 33334.6 that money deposited in the Low
13and Moderate Income Housing Fund be used by the agency for
14purposes of increasing, improving, and preserving the community’s
15supply of low- and moderate-income housing available at
16affordable housing cost shall be commenced within 10 years of
17the alleged violation. A cause of action for a violation accrues on
18the date of the actual expenditure of the funds.
19(C) An agency found to have deposited less into the Low and
20Moderate Income Housing Fund than mandated by Section 33334.3
21or to have spent money from the Low and Moderate Income
22Housing Fund for purposes other than increasing, improving, and
23preserving the community’s supply of low- and moderate-income
24housing, as mandated, by this section or Section 33334.6 shall
25repay the funds with interest in one lump sum pursuant to Section 970.4
27or 970.5 of the Government Code or may do either of the
29(i) Petition the court under Section 970.6 for repayment in
31(ii) Repay the portion of the judgment due to the Low and
32Moderate Income Housing Fund in equal installments over a period
33of five years following the judgment.
6(2) Repayment shall not be made from the funds required to be
7set aside or used for low- and moderate-income housing pursuant
begin delete sectionend delete.
10(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable
12attorney’s fees if included in the judgment, are due and shall be
13paid upon entry of judgment or order.
14(4) Except as otherwise provided in this subdivision, Chapter
152 (commencing with Section 970) of Part 5 of Division 3.6 of Title
161 of the Government Code for the enforcement of a judgment
17against a local public entity applies to a judgment against a local
18public entity that violates this section.
begin deleteThis end deletesubdivision applies to actions filed on and after January
22(6) The limitations period specified in subparagraphs (A)
begin delete (B)end delete
of paragraph (1) does not apply to a cause of action
24brought pursuant to Chapter 9 (commencing with Section 860) of
25Title 10 of Part 2 of the Code of Civil Procedure.
26(k) (1) From July 1, 2009, to June 30, 2010, inclusive, an agency
27may suspend all or part of its required allocation to the Low and
28Moderate Income Housing Fund from taxes that are allocated to
29that agency pursuant to Section 33670.
30(2) An agency that suspends revenue pursuant to paragraph (1)
31shall pay back to its low- and moderate-income housing fund the
32amount of revenue that was suspended in the 2009-10 fiscal year
33pursuant to this subdivision from July 1, 2010, to June 30, 2015,
35(3) An agency that suspends revenue pursuant to paragraph (1)
36and fails to repay or have repaid on its behalf the amount of revenue
37suspended pursuant to paragraph (2) shall, commencing July 1,
382015, be required to allocate an additional 5 percent of all taxes
39that are allocated to that agency pursuant to Section 33670 for low-
40and moderate-income housing for the remainder of the time that
P24 1the agency receives allocations of tax revenue pursuant to Section
3(4) An agency that fails to pay or have paid on its behalf the
4full amount calculated pursuant to subparagraph (J) of paragraph
5(2) of subdivision (a) of Section 33690, or subparagraph (J) of
6paragraph (2) of subdivision (a) of Section 33690.5, as the case
7may be, shall, commencing July 1, 2010, or July 1, 2011, as
8applicable, be required to allocate an additional 5 percent of all
9taxes that are allocated to that agency pursuant to Section 33670
10for low- and moderate-income housing for the remainder of the
11time that the agency receives allocations of tax revenue pursuant
12to Section 33670.
(a) The funds that are required by Section 33334.2
16or 33334.6 to be used for the purposes of increasing, improving,
17and preserving the community’s supply of low- and
18moderate-income housing shall be held in a separate Low and
19Moderate Income Housing Fund until used.
20(b) Any interest earned by the Low and Moderate Income
21Housing Fund and any repayments or other income to the agency
22for loans, advances, or grants, of any kind from the Low and
23Moderate Income Housing Fund, shall accrue to and be deposited
24in, the fund and may only be used in the manner prescribed for the
25Low and Moderate Income Housing Fund.
26(c) The moneys in the Low and Moderate Income Housing Fund
27shall be used to increase, improve, and preserve the supply of low-
28and moderate-income housing within the territorial jurisdiction of
30(d) It is the intent of the Legislature that the Low and
31Moderate Income Housing Fund be used to the maximum extent
32possible to defray the
begin delete costs of production, improvement, and
33preservation ofend delete
34 low- and moderate-income housing and
begin delete thatend delete the begin delete amount for planning and general administrative
35of money spentend delete
begin delete activities associated
37with the development, improvement, and preservation of that
38housing not be disproportionate to the amount actually spent for
39the costs of production, improvement, or preservation of that
40housing. The agency shall determine annually that the planning
P25 1and administrative expenses are necessary for the production,
2improvement, or preservation of low- and moderate-income
begin deletePlanning and general administrative costs which may moneys from the Low and Moderate
28be paid with end delete
30Income Housing Fund
begin delete are those expenses incurred by the agency the following:
31which are directly related to the programs and activities authorized
32under subdivision (e) of Section 33334.2 and are limited toend delete
34(A) Costs incurred for salaries, wages, and related costs of the
35agency’s staff or for services provided through interagency
36agreements, and agreements with contractors, including usual
37indirect costs related thereto.
38(B) Costs incurred by a nonprofit corporation which are not
39directly attributable to a specific project.
P28 1(2) Legal, architectural, and engineering costs and other salaries,
2wages, and costs directly related to the planning and execution of
3a specific project that are authorized under subdivision (e) of
4Section 33334.2 and that are incurred by a nonprofit housing
5sponsor are not planning and administrative costs for the purposes
6of this section, but are instead project costs.
34(f) (1) The requirements of this subdivision apply to all new or
35substantially rehabilitated housing units developed or otherwise
36assisted with moneys from the Low and Moderate Income Housing
37Fund, pursuant to an agreement approved by an agency on or after
38January 1, 1988. Except to the extent that a longer period of time
39may be required by other provisions of law, the agency shall require
40that housing units subject to this subdivision shall remain available
P29 1at affordable housing cost to, and occupied by, persons and families
2of low or moderate income and very low income and extremely
3low income households for the longest feasible time, but for not
4less than the following periods of time:
5(A) Fifty-five years for rental units. However, the agency may
6replace rental units with equally affordable and comparable rental
7units in another location within the community if (i) the
8replacement units are available for occupancy prior to the
9displacement of any persons and families of low or moderate
10income residing in the units to be replaced and (ii) the comparable
11replacement units are not developed with moneys from the Low
12and Moderate Income Housing Fund.
13(B) Forty-five years for owner-occupied units. However, the
14agency may permit sales of owner-occupied units prior to the
15expiration of the 45-year period for a price in excess of that
16otherwise permitted under this subdivision pursuant to an adopted
17program which protects the agency’s investment of moneys from
18the Low and Moderate Income Housing Fund, including, but not
19limited to, an equity sharing program which establishes a schedule
20of equity sharing that permits retention by the seller of a portion
21of those excess proceeds based on the length of occupancy. The
22remainder of the excess proceeds of the sale shall be allocated to
23the agency and deposited in the Low and Moderate Income
24Housing Fund. Only the units originally assisted by the agency
25shall be counted towards the agency’s obligations under Section
27(C) Fifteen years for mutual self-help housing units that are
28occupied by and affordable to very low and low-income
29households. However, the agency may permit sales of mutual
30self-help housing units prior to expiration of the 15-year period
31for a price in excess of that otherwise permitted under this
32subdivision pursuant to an adopted program that (i) protects the
33agency’s investment of moneys from the Low and Moderate
34Income Housing Fund, including, but not limited to, an equity
35sharing program that establishes a schedule of equity sharing that
36permits retention by the seller of a portion of those excess proceeds
37based on the length of occupancy; and (ii) ensures through a
38recorded regulatory agreement, deed of trust, or similar recorded
39instrument that if a mutual self-help housing unit is sold at any
40time after expiration of the 15-year period and prior to 45 years
P30 1after the date of recording of the covenants or restrictions required
2pursuant to paragraph (2), the agency recovers, at a minimum, its
3original principal from the Low and Moderate Income Housing
4Fund from the proceeds of the sale and deposits those funds into
5the Low and Moderate Income Housing Fund. The remainder of
6the excess proceeds of the sale not retained by the seller shall be
7allocated to the agency and deposited in the Low and Moderate
8Income Housing Fund. For the purposes of this subparagraph,
9“mutual self-help housing unit” means an owner-occupied housing
10unit for which persons and families of very low and low income
11contribute no fewer than 500 hours of their own labor in individual
12or group efforts to provide a decent, safe, and sanitary ownership
13housing unit for themselves, their families, and others authorized
14to occupy that unit. Nothing in this subparagraph precludes the
15agency and the developer of the mutual self-help housing units
16from agreeing to 45-year deed restrictions.
17(2) If land on which those dwelling units are located is deleted
18from the project area, the agency shall continue to require that
19those units remain affordable as specified in this subdivision.
20(3) The agency shall require the recording in the office of the
21county recorder of the following documents:
22(A) The covenants or restrictions implementing this subdivision
23for each parcel or unit of real property subject to this subdivision.
24The agency shall obtain and maintain a copy of the recorded
25covenants or restrictions for not less than the life of the covenant
27(B) For all new or substantially rehabilitated units developed
28or otherwise assisted with moneys from the Low and Moderate
29Income Housing Fund on or after January 1, 2008, a separate
30document called “Notice of Affordability Restrictions on Transfer
31of Property,” set forth in 14-point type or larger. This document
32shall contain all of the following information:
33(i) A recitation of the affordability covenants or restrictions. If
34the document recorded under this subparagraph is recorded
35concurrently with the covenants or restrictions recorded under
36subparagraph (A), the recitation of the affordability covenants or
37restrictions shall also reference the concurrently recorded
38document. If the document recorded under this subparagraph is
39not recorded concurrently with the covenants or restrictions
40recorded under subparagraph (A), the recitation of the affordability
P31 1covenants or restrictions shall also reference the recorder’s
2identification number of the document recorded under subparagraph
4(ii) The date the covenants or restrictions expire.
5(iii) The street address of the property, including, if applicable,
6the unit number, unless the property is used to confidentially house
7victims of domestic violence.
8(iv) The assessor’s parcel number for the property.
9(v) The legal description of the property.
10(4) The agency shall require the recording of the document
11required under subparagraph (B) of paragraph (3) not more than
1230 days after the date of recordation of the covenants or restrictions
13required under subparagraph (A) of paragraph (3).
14(5) The county recorder shall index the documents required to
15be recorded under paragraph (3) by the agency and current owner.
16(6) Notwithstanding Section 27383 of the Government Code,
17a county recorder may charge all authorized recording fees to any
18party, including a public agency, for recording the document
19specified in subparagraph (B) of paragraph (3).
20(7) Notwithstanding any other provision of law, the covenants
21or restrictions implementing this subdivision shall run with the
22land and shall be enforceable against any owner who violates a
23covenant or restriction and each successor in interest who continues
24the violation, by any of the following:
25(A) The agency.
26(B) The community, as defined in Section 33002.
27(C) A resident of a unit subject to this subdivision.
28(D) A residents’ association with
members who reside in units
29subject to this subdivision.
30(E) A former resident of a unit subject to this subdivision who
31last resided in that unit.
32(F) An applicant seeking to enforce the covenants or restrictions
33for a particular unit that is subject to this subdivision, if the
34applicant conforms to all of the following:
35(i) Is of low or moderate income, as defined in Section 50093.
36(ii) Is able and willing to occupy that particular unit.
37(iii) Was denied occupancy of that particular unit due to an
38alleged breach of a covenant or restriction implementing this
P32 1(G) A person on an affordable housing waiting list
who is of
2low or moderate income, as defined in Section 50093, and who is
3able and willing to occupy a unit subject to this subdivision.
4(8) A dwelling unit shall not be counted as satisfying the
5affordable housing requirements of this part, unless covenants for
6that dwelling unit are recorded in compliance with subparagraph
7(A) of paragraph (3).
8(9) Failure to comply with the requirements of subparagraph
9(B) of paragraph (3) shall not invalidate any covenants or
10restrictions recorded pursuant to subparagraph (A) of paragraph
12(g) “Housing,” as used in this section, includes residential hotels,
13as defined in subdivision (k) of Section 37912. The definitions of
14“lower income households,” “very low income households,” and
15“extremely low income households” in Sections 50079.5, 50105,
16and 50106 shall apply to this section. “Longest feasible time,” as
17used in this section, includes, but is not limited to, unlimited
19(h) “Increasing, improving, and preserving the community’s
20supply of low- and moderate-income housing,” as used in this
21section and in Section 33334.2, includes the preservation of rental
22housing units assisted by federal, state, or local government on the
23condition that units remain affordable to, and occupied by, low-
24and moderate-income households, including extremely low and
25very low income households, for the longest feasible time, but not
26less than 55 years, beyond the date the subsidies and use restrictions
27could be terminated and the assisted housing units converted to
28market rate rentals. In preserving these units the agency shall
29require that the units remain affordable to, and occupied by, persons
30and families of low- and moderate-income and extremely low and
31very low income households for the longest feasible time but not
32 less than 55 years. However, the agency may replace rental units
33with equally affordable and comparable rental units in another
34location within the community if (1) the replacement units in
35another location are available for occupancy prior to the
36displacement of any persons and families of low or moderate
37income residing in the units to be replaced and (2) the comparable
38replacement units are not developed with moneys from the Low
39and Moderate Income Housing Fund.
P33 1(i) Agencies that have more than one project area may satisfy
2the requirements of Sections 33334.2 and 33334.6 and of this
3section by allocating, in any fiscal year, less than 20 percent in
4one project area, if the difference between the amount allocated
5and the 20 percent required is instead allocated, in that same fiscal
6year, to the Low and Moderate Income Housing Fund from tax
7increment revenues from other project areas. Prior to allocating
8funds pursuant to this subdivision, the agency shall make the
9finding required by subdivision (g) of Section 33334.2.
10(j) Funds from the Low and Moderate Income Housing Fund
11shall not be used to the extent that other reasonable means of
begin delete privateend delete or commercial financing begin delete ofend delete the new or
begin delete substantially rehabilitatedend delete units at the same level of affordability and quantity
15are reasonably available to the agency or to the owner of the units.
16Prior to the expenditure of funds from the Low and Moderate
17Income Housing Fund for new
begin delete or substantially rehabilitatedend delete
19units, where those funds will exceed 50 percent of the cost of
20producing the units, the agency shall find, based on substantial
21evidence, that the use of the funds is necessary because the agency
22or owner of the units has made a good faith attempt but been unable
begin delete commercial or private means ofend delete financing the units at the same
level of affordability
begin deleteExcept as specified in subdivision (d), each as specified in clause (iii) of subparagraph (A) of paragraph
29agency shall expend over each 10-year period of the
30implementation plan, end delete
32(2) of subdivision (a) of Section 33490, the moneys in the Low
33and Moderate Income Housing Fund to assist housing for persons
34 of low income and housing for persons of very low income in at
35least the same proportion as the total number of housing units
36needed for each of those income groups bears to the total number
37of units needed for persons of moderate, low, and very low income
38within the community, as those needs have been determined for
39the community pursuant to Section 65584 of the Government Code.
begin delete In determining compliance with this obligation, the agency may
P34 1adjust the proportion by subtracting from the need identified for
2each income category, the number of units for persons of that
3income category that are newly constructed over the duration of
4the implementation plan with other locally controlled government
5assistance and without agency assistance and that are required to
6be affordable to, and occupied by, persons of the income category
7for at least 55 years for rental housing and 45 years for ownership
8housing, except that in making an adjustment the agency may not
9subtract units developed pursuant to a replacement housing
10obligation under state or federal law.end delete
15(b) Each agency shall expend over the duration of each
16redevelopment implementation plan, the moneys in the Low and
17Moderate Income Housing Fund to assist housing that is available
18to all persons regardless of age in at least the same proportion as
19the number of low-income households with a member under age
2065 years bears to the total number of low-income households of
21the community as reported in the most recent census of the United
22States Census Bureau.
33 An agency that has deposited in the Low and Moderate
34Income Housing Fund over the first five years of the period of an
35implementation plan an aggregate that is less than two million
36dollars ($2,000,000) shall have an extra five years to meet the
37requirements of this section.
38(d) For the purposes of this section
begin delete, “locally controlled” means
39government assistance where the community or other local
40government entity has the discretion and the authority to determine
P36 1the recipient and the amount of the assistance, whether or not the
2source of the funds or other assistance is from the state or federal
3government. Examples of locally controlled government assistance
4include, but are not limited to, Community Development Block
5Grant Program (42 U.S.C. Sec. 5301 and following) funds allocated
6to a city or county, Home Investment Partnership Program (42
7U.S.C. Sec. 12721 and following) funds allocated to a city or
8county, fees or funds received by a city or county pursuant to a
9city or county authorized program, and the waiver or deferral of
10city or other chargesend delete
(a) (1) Upon failure of the agency to expend or
38encumber excess surplus in the Low and Moderate Income Housing
39Fund within one year from the date the moneys become excess
P37 1surplus, as defined in paragraph (1) of subdivision (g), the agency
2shall do either of the following:
3(A) Disburse voluntarily its excess surplus to the county housing
4authority or to another public agency exercising housing
5development powers within the territorial jurisdiction of the agency
6in accordance with subdivision (b).
7(B) Expend or encumber its excess surplus within two additional
If an agency, after three years has elapsed from
14the date that the moneys become excess surplus, has not expended
15or encumbered its excess surplus, the agency shall be subject to
16sanctions pursuant to subdivision (e), until the agency has expended
17or encumbered its excess surplus plus an additional amount, equal
18to 50 percent of the amount of the excess surplus that remains at
19the end of the three-year period. The additional expenditure shall
20not be from the agency’s Low and Moderate Income Housing
21Fund, but shall be used in a manner that meets all requirements
23for expenditures from that fund.
begin deleteThe end deletehousing authority or other
26public agency to which the money is transferred shall utilize the
27moneys for the purposes of, and subject to the same restrictions
28that are applicable to, the redevelopment agency under this part,
29and for that purpose may exercise all of the powers of a housing
30authority under Part 2 (commencing with Section 34200) to an
31extent not inconsistent with these limitations.
begin deleteNotwithstanding end delete
34Section 34209 or any other
begin delete provision ofend delete law, for the purpose of
35accepting a transfer of, and using, moneys pursuant to this section,
36the housing authority of a county or other public agency may
37exercise its powers within the territorial jurisdiction of a city
38redevelopment agency located in that county.
begin deleteThe end deleteamount of excess surplus that
P38 1shall be transferred to the housing authority or other public agency
2because of a failure of the redevelopment agency to expend or
3encumber excess surplus within one year shall be the amount of
4the excess surplus that is not so expended or encumbered. The
5housing authority or other public agency to which the moneys are
6transferred shall expend or encumber these moneys for authorized
7purposes not later than three years after the date these moneys
8were transferred from the Low and Moderate Income Housing
10(e) (1) Until a time when the agency has
11encumbered excess surplus moneys pursuant to subdivision (a),
12the agency shall be prohibited from encumbering any funds or
13expending any moneys derived from any source, except that the
14agency may encumber funds and expend moneys to pay the
15following obligations, if any, that were incurred by the agency
16prior to three years from the date the moneys became excess
18(A) Bonds, notes, interim certificates, debentures, or other
19obligations issued by an agency, whether funded, refunded,
20assumed, or otherwise, pursuant to Article 5 (commencing with
22(B) Loans or moneys advanced to the agency, including, but
23not limited to, loans from federal, state, or local agencies, or a
25(C) Contractual obligations which, if breached, could subject
26the agency to damages or other liabilities or remedies.
27(D) Obligations incurred pursuant to Section 33445.
28(E) Indebtedness incurred pursuant to Section 33334.2 or
30(F) Obligations incurred pursuant to Section 33401.
31(G) An amount, to be expended for the operation and
32administration of the agency, that may not exceed 75 percent of
33the amount spent for those purposes in the preceding fiscal year.
34(2) This subdivision shall not be construed to prohibit the
35expenditure of excess surplus funds or other funds to meet the
36requirement in paragraph (2) of subdivision (a) that the agency
37spend or encumber excess surplus funds, plus an amount equal to
3850 percent of excess surplus, prior to spending or encumbering
39 funds for any other purpose.
P39 1(f) Nothing in this section shall be construed to limit any
2authority a redevelopment agency may have under other provisions
3of this part to contract with a housing authority for increasing or
4improving the community’s supply of low- and moderate-income
7 For purposes of this section:
8(1) “Excess surplus” means any unexpended and unencumbered
9amount in an agency’s Low and Moderate Income Housing Fund
10that exceeds the greater of one million dollars ($1,000,000) or the
11aggregate amount deposited into the Low and Moderate Income
12Housing Fund pursuant to Sections 33334.2 and 33334.6 during
13the agency’s preceding four fiscal years. The first fiscal year to be
14included in this computation is the 1989-90 fiscal year, and the
15first date on which an excess surplus may exist is July 1, 1994.
16(2) Moneys shall be deemed encumbered if committed pursuant
17to a legally enforceable contract or agreement for expenditure for
18purposes specified in Section 33334.2 or 33334.3.
19(3) (A) For purposes of determining whether an excess surplus
20exists, it is the intent of the Legislature to give credit to agencies
21which convey land for less than fair market value, on which low-
22and moderate-income housing is built or is to be built if at least
2349 percent of the units developed on the land are available at
24affordable housing cost to lower income households for at least
25the time specified in subdivision (e) of Section 33334.3, and
26otherwise comply with all of the provisions of this division
27applicable to expenditures of moneys from a low- and
28moderate-income housing fund established pursuant to Section
2933334.3. Therefore, for the sole purpose of determining the amount,
30if any, of an excess surplus, an agency may make the following
31calculation: if an agency sells, leases, or grants land acquired with
32moneys from the Low and Moderate Income Housing Fund,
33established pursuant to Section 33334.3, for an amount which is
34below fair market value, and if at least 49 percent of the units
35constructed or rehabilitated on the land are affordable to lower
36income households, as defined in Section 50079.5, the difference
37between the fair market value of the land and the amount the
38agency receives may be subtracted from the amount of moneys in
39an agency’s Low and Moderate Income Housing Fund.
P40 1(B) If taxes that are deposited in the Low and Moderate Income
2Housing Fund are used as security for bonds or other indebtedness,
3the proceeds of the bonds or other indebtedness, and income and
4expenditures related to those proceeds, shall not be counted in
5determining whether an excess surplus exists. The unspent portion
6of the proceeds of bonds or other indebtedness, and income related
7thereto, shall be excluded from the calculation of the unexpended
8and unencumbered amount in the Low and Moderate Income
9Housing Fund when determining whether an excess surplus exists.
10(C) Nothing in this subdivision shall be construed to restrict
11the authority of an agency provided in any other provision of this
12part to expend funds from the Low and Moderate Income Housing
department shall develop and periodically revise the
15methodology to be used in the calculation of excess surplus as
16required by this section. The director shall appoint an advisory
17committee to advise in the development of this methodology. The
18advisory committee shall include department staff, affordable
19housing advocates, and representatives of the California
20Redevelopment Association, the California Society of Certified
21Public Accountants, the Controller, and any other authorities or
22persons interested in the field that the director deems necessary
25 Communities in which an agency has disbursed excess
26surplus funds pursuant to this section shall not disapprove a low-
27or moderate-income housing project funded in whole or in part by
28the excess surplus funds if the project is consistent with applicable
29building codes and the land use designation specified in any
30element of the general plan as it existed on the date the application
31was deemed complete. A local agency may require compliance
32with local development standards and policies appropriate to and
33consistent with meeting the quantified objectives relative to the
34development of housing, as required in housing elements of the
35community pursuant to subdivision (b) of Section 65583 of the
38 Notwithstanding subdivision (a), any agency that has funds
39 that become excess surplus on July 1, 1994, shall have, pursuant
40to subdivision (a), until January 1, 1995, to decide to transfer the
P41 1funds to a housing authority or other public agency, or until January
21, 1997, to expend or encumber those funds, or face sanctions
3pursuant to subdivision (e).
For each interest in real property acquired using
7moneys from the Low and Moderate Income Housing Fund, the
8agency shall, within five years from the date it first acquires the
9property interest for the development of housing affordable to
10persons and families of low and moderate income, initiate activities
11consistent with the development of the property for that purpose.
12These activities may include, but are not limited to, zoning changes
13or agreements entered into for the development and disposition of
14the property. If these activities have not been initiated within this
15period, the legislative body may, by resolution, extend the period
16during which the agency may retain the property for one additional
17period not to exceed five years. The resolution of extension shall
18affirm the intention of the legislative body that the property be
19used for the development of housing affordable to persons and
20families of low and moderate income. In the event that physical
21development of the property for this purpose has not begun by the
22end of the extended period, or if the agency does not comply with
23this requirement, the property shall be sold and the moneys from
24the sale, less reimbursement to the agency for the cost of the sale,
25shall be deposited in the agency’s Low and Moderate Income
(a) Whenever dwelling units
begin delete housingend delete persons and families of low or moderate income are
21destroyed or removed from the low- and moderate-income housing
22market as part of a redevelopment project that is subject to a written
23agreement with the agency or where financial assistance has been
24provided by the agency, the agency shall, within four years of the
25destruction or removal,
begin delete rehabilitate, develop, orend delete construct, or cause
begin delete be rehabilitated, developed, orend delete
constructed, for rental or sale to
27persons and families of low or moderate income, an equal number
28of replacement dwelling units that have an equal or greater number
29of bedrooms as those destroyed or removed units at affordable
30housing costs within the territorial jurisdiction of the
begin delete agency. When .
31dwelling units are destroyed or removed after September 1, 1989,
3275 percent of the replacement dwelling units shall replace dwelling
33units available at affordable housing cost in the same or a lower
34income level of very low income households, lower income
35households, and persons and families of low and moderate income,
36as the persons displaced from those destroyed or removed units.
37When dwelling units are destroyed or removed on or after January
381, 2002, 100 percent of the replacement dwelling units shall be
39available at affordable housing cost to persons in the same or a
40lower income category (low, very low, or moderate), as the persons
P44 1displaced from those destroyed or removed unitsend delete
16(b) (1) Prior to the time limit on the effectiveness of the
17redevelopment plan established pursuant to Sections 33333.2,
1833333.6, and 33333.10 at least 30 percent of all new and
19substantially rehabilitated dwelling units developed by an agency
20shall be available at affordable housing cost to, and occupied by,
21persons and families of low or moderate income. Not less than 50
22percent of the dwelling units required to be available at affordable
23housing cost to, and occupied by, persons and families of low or
24moderate income shall be available at affordable housing cost to,
25and occupied by, very low income households.
26(2) (A) (i) Prior to the time limit on the effectiveness of the
27redevelopment plan established pursuant to Sections 33333.2,
2833333.6, and 33333.10 at least 15 percent of all new and
29substantially rehabilitated dwelling units developed within a project
30area under the jurisdiction of an agency by public or private entities
31or persons other than the agency shall be available at affordable
32housing cost to, and occupied by, persons and families of low or
33moderate income. Not less than 40 percent of the dwelling units
34required to be available at affordable housing cost to, and occupied
35by, persons and families of low or moderate income shall be
36available at affordable housing cost to, and occupied by, very low
38(ii) To satisfy this paragraph, in whole or in part, the agency
39may cause, by regulation or agreement, to be available, at
40affordable housing cost, to, and occupied by, persons and families
P46 1of low or moderate income or to very low income households, as
2applicable, two units outside a project area for each unit that
3otherwise would have been required to be available inside a project
5(iii) On or after January 1, 2002, as used in this paragraph and
6in paragraph (1), “substantially rehabilitated dwelling units” means
7 all units substantially rehabilitated, with agency assistance. Prior
8to January 1, 2002, “substantially rehabilitated dwelling units”
9shall mean substantially rehabilitated multifamily rented dwelling
10units with three or more units regardless of whether there is agency
11assistance, or substantially rehabilitated, with agency assistance,
12single-family dwelling units with one or two units.
13(iv) As used in this paragraph and in paragraph (1), “substantial
14rehabilitation” means rehabilitation, the value of which constitutes
1525 percent of the
begin delete after rehabilitationend delete value of
16the dwelling, inclusive of the land value.
17(v) To satisfy this paragraph, the agency may aggregate new or
18 substantially rehabilitated dwelling units in one or more project
19areas, if the agency finds, based on substantial evidence, after a
20public hearing, that the aggregation will not cause or exacerbate
21racial, ethnic, or economic segregation.
22(B) To satisfy the requirements of paragraph (1) and
23subparagraph (A), the agency may purchase, or otherwise acquire
24or cause by regulation or agreement the purchase or other
25acquisition of, long-term affordability covenants on multifamily
26units that restrict the cost of renting or purchasing those units that
27either: (i) are not presently available at affordable housing cost to
28persons and families of low or very low income households, as
29applicable; or (ii) are units that are presently available at affordable
30housing cost to this same group of persons or families, but are
31units that the agency finds, based upon substantial evidence, after
32a public hearing, cannot reasonably be expected to remain
33affordable to this same group of persons or families.
34(C) To satisfy the requirements of paragraph (1) and
35subparagraph (A), the long-term affordability covenants purchased
36or otherwise acquired pursuant to subparagraph (B) shall be
37required to be maintained on dwelling units at affordable housing
38cost to, and occupied by, persons and families of low or very low
39income, for the longest feasible time but not less than 55 years for
40rental units and 45 years for owner-occupied units. Not more than
P47 150 percent of the units made available pursuant to paragraph (1)
2and subparagraph (A) may be assisted through the purchase or
3acquisition of long-term affordability covenants pursuant to
4subparagraph (B). Not less than 50 percent of the units made
5available through the purchase or acquisition of long-term
6affordability covenants pursuant to subparagraph (B) shall be
7available at affordable housing cost to, and occupied by, very low
9(D) To satisfy the requirements of paragraph (1) and
10subparagraph (A), each mutual self-help housing unit, as defined
11in subparagraph (C) of paragraph (1) of subdivision (f) of Section
1233334.3, that is subject to a 15-year deed restriction shall count as
13one-third of a unit.
14(3) The requirements of this subdivision shall apply
15independently of the requirements of subdivision (a). The
16requirements of this subdivision shall apply, in the aggregate, to
17housing made available pursuant to paragraphs (1) and (2),
18respectively, and not to each individual case of rehabilitation,
19development, or construction of dwelling units, unless an agency
21(4) Each redevelopment agency, as part of the implementation
22plan required by Section 33490, shall adopt a plan to comply with
23the requirements of this subdivision for each project area. The plan
24shall be consistent with, and may be included within, the
25community’s housing element. The plan shall be reviewed and, if
26necessary, amended at least every five years in conjunction with
begin delete either the housing element cycle orend delete the plan implementation cycle.
28The plan shall ensure that the requirements of this subdivision are
29met every 10 years. If the requirements of this subdivision are not
30met by the end of each 10-year period, the agency shall meet these
31goals on an annual basis until the requirements for the 10-year
32period are met. If the agency has exceeded the requirements within
33the 10-year period, the agency may count the units that exceed the
34requirement in order to meet the requirements during the next
3510-year period. The plan shall contain the contents required by
36paragraphs (2), (3), and (4) of subdivision (a) of Section 33490.
37(c) (1) The agency shall require that the aggregate number of
38replacement dwelling units and other dwelling units rehabilitated,
39developed, constructed, or price restricted pursuant to subdivision
40(a) or (b) remain available at affordable housing cost to, and
P48 1occupied by, persons and families of
begin delete low-income, ,
2moderate-income, and very low income householdsend delete
4respectively, for the longest feasible time, but for not less than 55
5years for rental units, 45 years for home ownership units, and 15
6years for mutual self-help housing units, as defined in subparagraph
7(C) of paragraph (1) of subdivision (f) of Section 33334.3, except
8as set forth in paragraph (2). Nothing in this paragraph precludes
9the agency and the developer of the mutual self-help housing units
10from agreeing to 45-year deed restrictions.
11(2) Notwithstanding paragraph (1), the agency may permit sales
12of owner-occupied units prior to the expiration of the 45-year
13period, and mutual self-help housing units prior to the expiration
14of the 15-year period, established by the agency for a price in
15excess of that otherwise permitted under this subdivision pursuant
16to an adopted program that protects the agency’s investment of
17moneys from the Low and Moderate Income Housing Fund,
18including, but not limited to, an equity sharing program that
19establishes a schedule of equity sharing that permits retention by
20the seller of a portion of those excess proceeds, based on the length
21of occupancy. The remainder of the excess proceeds of the sale
22shall be allocated to the agency, and deposited into the Low and
23Moderate Income Housing Fund. The agency shall, within three
24years from the date of sale pursuant to this paragraph of each home
25ownership or mutual self-help housing unit subject to a 45-year
26deed restriction, and every third mutual self-help housing unit
27subject to a 15-year deed restriction, expend funds to make
28affordable an equal number of units at the same or lowest income
29level as the unit or units sold pursuant to this paragraph, for a
30period not less than the duration of the original deed restrictions.
31Only the units originally assisted by the agency shall be counted
32towards the agency’s obligations under Section 33413.
33(3) The requirements of this section shall be made enforceable
34in the same manner as provided in paragraph (7) of subdivision
35(f) of Section 33334.3.
36(4) If land on which the dwelling units required by this section
37are located is deleted from the project area, the agency shall
38continue to require that those units remain affordable as specified
39in this subdivision.
P49 1(5) For each unit counted towards the requirements of
begin delete subdivisionsend delete (a) begin delete andend delete (b), the agency shall require
3the recording in the office of the county recorder of covenants or
4restrictions that ensure compliance with this subdivision. With
5respect to covenants or restrictions that are recorded on or after
6January 1, 2008, the agency shall comply with the requirements
7of paragraphs (3) and (4) of subdivision (f) of Section 33334.3.
8(d) (1) This section applies
only to redevelopment projects for
9which a final redevelopment plan is adopted pursuant to Article 5
10(commencing with Section 33360) on or after January 1, 1976,
11and to areas that are added to a project area by amendment to a
12final redevelopment plan adopted on or after January 1, 1976. In
13addition, subdivision (a) shall apply to any other redevelopment
14project with respect to dwelling units destroyed or removed from
15the low- and moderate-income housing market on or after January
161, 1996, irrespective of the date of adoption of a final
17redevelopment plan or an amendment to a final redevelopment
18plan adding areas to a project area. Additionally, any agency may,
19by resolution, elect to make all or part of the requirements of this
20section applicable to any redevelopment project of the agency for
21which the final redevelopment plan was adopted prior to January
221, 1976. In addition, subdivision (b) shall apply to redevelopment
23plans adopted prior to January 1, 1976, for which an amendment
24is adopted pursuant to Section 33333.10, except that subdivision
25(b) shall apply to those redevelopment plans prospectively only
26so that the requirements of subdivision (b) shall apply only to new
27and substantially rehabilitated dwelling units for which the building
28permits are issued on or after the date that the ordinance adopting
29the amendment pursuant to Section 33333.10 becomes effective.
30(2) An agency may, by resolution, elect to require that whenever
31dwelling units housing persons or families of low or moderate
32income are destroyed or removed from the low- and
33moderate-income housing market as part of a redevelopment
34project, the agency shall replace each dwelling unit with up to
35three replacement dwelling units pursuant to subdivision (a).
36(e) Except as otherwise authorized by law, this section does not
37authorize an agency to operate a rental housing development
38beyond the period reasonably necessary to sell or lease the housing
P50 1(f) Notwithstanding subdivision (a), the agency may replace
2destroyed or removed dwelling units with a fewer number of
3replacement dwelling units if the replacement dwelling units meet
4both of the following criteria:
5(1) The total number of bedrooms in the replacement dwelling
6units equals or exceeds the number of bedrooms in the destroyed
7or removed units. Destroyed or removed units having one or no
8bedroom are deemed for this purpose to have one bedroom.
9(2) The replacement units are affordable to and occupied by the
10same income level of households as the destroyed or removed
12(g) “Longest feasible time,” as used in this section, includes,
13but is not limited to, unlimited duration.
Not less than 30 days prior to the execution of an
25agreement for acquisition of real property,
begin delete orend delete the execution of an
26agreement for the disposition and development of property,
begin delete orend delete the
27execution of an owner participation agreement,
begin delete whichend delete
28 agreement would lead to the destruction or
29removal of dwelling units from the low- and moderate-income
30housing market, the agency shall adopt by resolution a replacement
31housing plan. For a reasonable time prior to adopting a replacement
32housing plan by resolution, the agency shall make available a draft
33of the proposed replacement housing plan for review and comment
34by the project area committee, other public agencies, and the
36The replacement housing plan shall include (1) the general
37location of housing to be
begin delete rehabilitated, developed,end delete
38 or constructed pursuant to Section 33413, (2) an adequate means of
begin delete rehabilitation, development,end delete or
begin delete (3)end delete a finding that the replacement housing does
9not require the approval of the voters pursuant to Article XXXIV
10of the California Constitution, or that such approval has been
begin delete (4)end delete the number of dwelling units housing persons
12and families of low or moderate income planned for construction
13or rehabilitation, and
begin delete (5)end delete the timetable for meeting the plan’s
14relocation, rehabilitation, and replacement housing objectives. A
15dwelling unit whose replacement is required by Section 33413 but
16for which no replacement housing plan has been prepared, shall
17not be destroyed or removed from the low- and moderate-income
18housing market until the agency has by resolution adopted a
19replacement housing plan.
20Nothing in this section shall prevent an agency
21or removing from the low- and moderate-income housing market
22a dwelling unit which the agency owns and which is an immediate
23danger to health and safety. The agency shall, as soon as
24practicable, adopt by resolution a replacement housing plan with
25respect to such dwelling unit.
(a) An agency shall monitor, on an ongoing basis, any
29housing affordable to persons and families of low or moderate
30income developed or otherwise made available pursuant to any
31provisions of this part. As part of this monitoring, an agency shall
32require owners or managers of the housing to submit an annual
33report to the agency. The annual reports shall include for each
34rental unit the rental rate and the income and family size of the
35occupants, and for each owner-occupied unit whether there was a
36change in ownership from the prior year and, if so, the income and
37family size of the new owners. The income information required
38by this section shall be supplied by the tenant in a certified
39statement on a form provided by the agency.
P52 1(b) The data specified in
subdivision (a) shall be obtained by
2the agency from owners and managers of the housing specified
3therein and current data shall be included in any reports required
4by law to be submitted to the Department of Housing and
5Community Development or the Controller. The information on
6income and family size that is required to be reported by the owner
7or manager shall be supplied by the tenant and shall be the only
8information on income or family size that the owner or manager
9shall be required to submit on his or her annual report to the
11(c) (1) The agency shall compile and maintain a database of
12existing, new and substantially rehabilitated, housing units
13developed or otherwise assisted with moneys from the Low and
14Moderate Income Housing Fund, or otherwise counted towards
15the requirements of subdivision (a) or (b) of Section 33413. The
16database shall be made available to the public on the Internet and
17updated on an annual basis and shall include the date the database
18was last updated. The database shall require all of the following
19information for each owner-occupied unit or rental unit, or for
20each group of units, if more than one unit is subject to the same
22(A) The street address and assessor’s parcel number of the
24(B) The size of each unit, measured by the number of bedrooms.
25(C) The year in which the construction or substantial
26rehabilitation of the unit was completed.
27(D) The date of recordation and document number of the
28affordability covenants or restrictions required under subdivision
29(f) of Section 33334.3.
30(E) The date on which the covenants or restrictions expire.
31(F) For owner-occupied units that have changed ownership
32during the reporting year, as described in subdivision (a), the date
33and document number of the new affordability covenants or other
34documents recorded to
begin delete assureend delete that the affordability
35restriction is enforceable and continues to run with the land.
36(G) Whether occupancy in the unit or units is restricted to any
37special population, including senior citizens.
8(2) Notwithstanding subparagraphs (A) and (D) of paragraph
9(1), the database shall omit any property used to confidentially
10house victims of domestic violence.
11(3) Upon establishment of a database under this section, the
12agency shall provide reasonable notice to the community regarding
13the existence of the database.
14(d) The agency shall adequately fund its monitoring activities
15as needed to insure compliance of applicable laws and agreements
16in relation to affordable units. For purposes of defraying the cost
17of complying with the requirements of this section and the changes
18in reporting requirements of Section 33080.4 enacted by the act
19enacting this section, an agency may establish and impose fees
20upon owners of properties monitored pursuant to this section.
(a) Subject to subdivisions (a) and (b) of Section
2233486, not less than 20 percent of all taxes that are allocated to
23the redevelopment agency pursuant to Section 33670 for
24redevelopment projects merged pursuant to this article, irrespective
25of the date of adoption of the final redevelopment plans, shall be
26deposited by the agency in the Low and Moderate Income Housing
27Fund established pursuant to Section 33334.3, or which shall be
28established for purposes of this section. The agency shall use the
29moneys in this fund to assist in the construction or rehabilitation
30of housing units that will be available to, or occupied by, persons
31and families of low or moderate income, as defined in Section
3250093, and very low income households, as defined in Section
3350105, for the longest feasible time period but not less than 55
34years for rental units and 45 years for owner-occupied units. For
35the purposes of this subdivision, “construction and rehabilitation”
36shall include acquisition of land, improvements to land; the
37acquisition, rehabilitation, or construction of structures; or the
38provision of subsidies necessary to provide housing for persons
39and families of low or moderate income, as defined in Section
P55 150093, and very low income households, as defined in Section
3(b) The agency may use the funds set aside by subdivision (a)
4inside or outside the project area. However, the agency may only
5use these funds outside the project area upon a resolution of the
6agency and the legislative body that the use will be of benefit to
7the project. This determination by the agency and the legislative
8body shall be final and conclusive as to the issue of benefit to the
9project area. The Legislature finds and declares that the provision
10of replacement housing pursuant to Section 33413 is of benefit to
12The Legislature finds and declares that expenditures or
13obligations incurred by the agency pursuant to this section shall
14constitute an indebtedness of the project.
If moneys deposited in the Low and Moderate Income
16Housing Fund pursuant to this section have not been committed
17for the purposes specified in subdivisions (a) and (b) for a period
18of six years following deposit in that fund, the agency shall offer
19these moneys to the housing authority that operates within the
20jurisdiction of the agency, if activated pursuant to Section 34240,
21for the purpose of constructing or rehabilitating housing as
22provided in subdivisions (a) and (b). However, if no housing
23authority operates within the jurisdiction of the agency, the agency
24may retain these moneys for use pursuant to this section.
26 If the agency deposits less than 20 percent of taxes allocated
27pursuant to Section 33670, due to the provisions of subdivisions
28(a) and (b) of Section 33486, in any fiscal year, a deficit shall be
29created in the Low and Moderate Income Housing Fund in an
30amount equal to the difference between 20 percent of the taxes
31allocated pursuant to Section 33670 and the amount deposited in
32that year. The deficit, if any, created pursuant to this section
33constitutes an indebtedness of the project. The agency shall
34eliminate the deficit by expending taxes allocated in years
35subsequent to creation of the deficit and, until the time when that
36deficit has been eliminated, an agency shall not incur new
37obligations for purposes other than those set forth in Section 33487,
38except to comply with the terms of any resolution or other
39agreement pledging taxes allocated pursuant to Section 33670 that
40existed on the date of merger pursuant to this article.
P56 1(e)end delete
2 Notwithstanding subdivision (d) of Section 33413, any
3agency that merges its redevelopment project areas pursuant to
4this article shall be subject to subdivisions (a) and (c) of Section
(a) (1) (A) On or before December 31, 1994, and each
9five years thereafter, each agency that has adopted a redevelopment
10plan prior to December 31, 1993, shall adopt, after a public hearing,
11an implementation plan that shall contain the specific goals and
12objectives of the agency for the project area, the specific programs,
13including potential projects, and estimated expenditures proposed
14to be made during the next five years, and an explanation of how
15the goals and objectives, programs, and expenditures will eliminate
16blight within the project area and implement the requirements of
17Section 33333.10, if applicable, and Sections 33334.2, 33334.4,
begin delete andend delete 33413. After adoption of the first
19implementation plan, the parts of the implementation plan that
20address Section 33333.10, if applicable, and Sections 33334.2,
begin delete andend delete 33413 shall be adopted every
begin delete eitherend delete in conjunction with the begin delete housing element cycle or implementation plan cycle and shall be made available to the
24public on the Internet. The agency may amend the implementation
25plan after conducting a public hearing on the proposed amendment.
26If an action attacking the adoption, approval, or validity of a
27redevelopment plan adopted prior to January 1, 1994, has been
28brought pursuant to Chapter 5 (commencing with Section 33500),
29the first implementation plan required pursuant to this section shall
30be adopted within six months after a final judgment or order has
31been entered. Subsequent implementation plans required pursuant
32to this section shall be adopted pursuant to the terms of this section,
33and as if the first implementation plan had been adopted on or
34before December 31, 1994.
35(B) Adoption of an implementation plan shall not constitute an
36approval of any specific program, project, or expenditure and shall
37not change the need to obtain any required approval of a specific
38program, project, or expenditure from the agency or community.
39The adoption of an implementation plan shall not constitute a
40project within the meaning of Section 21000 of the Public
P57 1Resources Code. However, the inclusion of a specific program,
2potential project, or expenditure in an implementation plan
3prepared pursuant to subdivision (c) of Section 33352 in
4conjunction with a redevelopment plan adoption shall not eliminate
5analysis of those programs, potential projects, and expenditures
6in the environmental impact report prepared pursuant to subdivision
7(k) of Section 33352 to the extent that it would be otherwise
8required. In addition, the inclusion of programs, potential projects,
9and expenditures in an implementation plan shall not eliminate
10review pursuant to the California Environmental Quality Act
11(Division 13 (commencing with Section 21000) of the Public
12Resources Code), at the time of the approval of the program,
13project, or expenditure, to the extent that it would be otherwise
15(2) (A) A portion of the implementation plan shall address the
16agency housing responsibilities and shall contain a section
17addressing Section 33333.10, if applicable, and Sections 33334.2,
1833334.4, and 33334.6, the Low and Moderate Income Housing
19Fund, and, if subdivision (b) of Section 33413 applies, a section
20addressing agency developed and project area housing. The section
21addressing the Low and Moderate Income Housing Fund shall
23(i) The amount available in the Low and Moderate Income
24Housing Fund and the estimated amounts which will be deposited
25in the Low and Moderate Income Housing Fund during each of
26the next five years.
27(ii) A housing program with estimates of the number of new,
28rehabilitated, or price restricted units to be assisted during each of
29the five years and estimates of the expenditures of moneys from
30the Low and Moderate Income Housing Fund during each of the
32(iii) A description of how the housing program will implement
33the requirement for expenditures of moneys in the Low and
34Moderate Income Housing Fund over a 10-year period for various groups as required by Section
3633334.4. For project areas to which subdivision (b) of Section
3733413 applies, the 10-year period within which
begin delete 33334.4end delete is required to be implemented shall begin delete beend delete
begin delete sameend delete 10-year period begin delete within which subdivision is required to be implemented.
40(b) of Section 33413end delete
2Notwithstanding the first sentence of Section 33334.4 and the first
3sentence of this clause, in order to allow these two 10-year time
4periods to coincide for the first time period, the time to implement
5the requirements of Section 33334.4 shall be extended two years,
6and project areas in existence on December 31, 1993, shall
7implement the requirements of Section 33334.4 on or before
8December 31, 2014,
begin delete and each 10 years thereafterend delete rather than
9December 31, 2012. For project areas to which subdivision (b) of
10Section 33413 does not apply, the requirements of Section 33334.4
11shall be implemented on or before December 31,
begin delete 2014, and each .
1210 years thereafterend delete
13(iv) This requirement to include a description of how the housing
14program will implement Section 33334.4 in the implementation
15plan shall apply to implementation plans adopted pursuant to
16subdivision (a) on or after December 31, 2002.
17(B) For each project area to which subdivision (b) of Section
1833413 applies, the section addressing the agency developed and
19project area housing shall contain:
20(i) Estimates of the number of new, substantially rehabilitated
21or price restricted residential units to be developed or purchased
22within one or more project areas, both over the life of the plan and
23during the next 10 years.
24(ii) Estimates of the number of units of very low, low-, and
25moderate-income households required to be developed within one
26or more project areas in order to meet the requirements of
27paragraph (2) of subdivision (b) of Section 33413, both over the
28life of the plan and during the next 10 years.
29(iii) The number of units of very low, low-, and
30moderate-income households which have been developed within one or more project areas which meet the
begin delete paragraph (2) ofend delete subdivision (b) of Section 33413.
33(iv) Estimates of the number of agency developed residential
34units which will be developed during the next five years, if any,
35which will be governed by paragraph (1) of subdivision (b) of
37(v) Estimates of the number of agency developed units for very
38low, low-, and moderate-income households which will be
39developed by the agency during the next five years to meet the
40requirements of paragraph (1) of subdivision (b) of Section 33413.
P59 1(C) The section addressing Section 33333.10, if applicable, and
2Section 33334.4 shall contain all of the following:
begin delete number of housing units needed for very low income
4persons, low-income persons, and moderate-income persons as
5each of those needs have been identified in the most recent
6determination pursuant to Section 65584 of the Government Code,
7and the proposed amount of expenditures from the Low and
8Moderate Income Housing Fund for each income groupend delete
13implementation plan period.
14(ii) The total population of the community and the population
15under 65 years of age as reported in the most recent census of the
16United States Census Bureau.
17(iii) A housing program that provides a detailed schedule of
18actions the agency is undertaking or intends to undertake to ensure
19expenditure of the Low and Moderate Income Housing Fund in
20the proportions required by Section 33333.10, if applicable, and
22(iv) For the previous implementation plan period, the
begin delete amounts
23of Low and Moderate Income Housing Fund moneys utilized to
24assist units affordable to, and occupied by, extremely low income
25 households, very low income households, and low-income
26households; theend delete
27units newly constructed
begin delete with other locally controlled government without agency assistance and that are required to
28assistance andend delete
29be affordable to, and occupied by, persons of low, very low, or
30extremely low income for at least 55 years for rental housing or
3145 years for
begin delete homeownershipend delete housing, and the
32amount of Low and Moderate Income Housing Fund moneys
33utilized to assist housing units available to families with children,
34and the number, location, and level of affordability of those units.
5(3) If the implementation plan contains a project that will result
6in the destruction or removal of dwelling units that will have to
7be replaced pursuant to subdivision (a) of Section 33413, the
8implementation plan shall identify proposed locations suitable for
9those replacement dwelling units.
10 For a project area that is within six years of the time limit
11on the effectiveness of the redevelopment plan established pursuant
12to Section 33333.2, 33333.6, 33333.7, or 33333.10, the portion of
13the implementation plan addressing the housing responsibilities
14shall specifically address the ability of the agency to comply, prior
15to the time limit on the effectiveness of the redevelopment plan,
16with subdivision (a) of Section 33333.8, subdivision (a) of Section
1733413 with respect to replacement dwelling units, subdivision (b)
18of Section 33413 with respect to project area housing, and the
19disposition of the remaining moneys in the Low and Moderate
20Income Housing Fund.
22 The implementation plan shall identify the fiscal year that
23the agency expects each of the following time limits to expire:
24(A) The time limit for the commencement for eminent domain
25proceedings to acquire property within the project area.
26(B) The time limit for the establishment of loans, advances, and
27indebtedness to finance the redevelopment project.
28(C) The time limit for the effectiveness of the redevelopment
30(D) The time limit to repay indebtedness with the proceeds of
32(b) For a project area
for which a redevelopment plan is adopted
33on or after January 1, 1994, the implementation plan prepared
34pursuant to subdivision (c) of Section 33352 shall constitute the
35initial implementation plan and thereafter the agency after a public
36hearing shall adopt an implementation plan every five years
37commencing with the fifth year after the plan has been adopted.
38Agencies may adopt implementation plans that include more than
39one project area.
P63 1(c) Every agency, at least once within the five-year term of the
2plan, shall conduct a public hearing and hear testimony of all
3interested parties for the purpose of reviewing the redevelopment
4plan and the corresponding implementation plan for each
5redevelopment project within the jurisdiction and evaluating the
6progress of the redevelopment project. The hearing required by
7this subdivision shall take place no earlier than two years and no
8later than three years after the adoption of the implementation plan.
9 For a project area that is within three years of the time limit on the
10effectiveness of the redevelopment plan established pursuant to
11Section 33333.2, 33333.6, 33333.7, or 33333.10, the review shall
12specifically address those items in paragraph (4) of subdivision
13(a). An agency may hold one hearing for two or more project areas
14if those project areas are included within the same implementation
16(d) Notice of public hearings conducted pursuant to this section
17shall be published pursuant to Section 6063 of the Government
18Code, mailed at least three weeks in advance to all persons and
19agencies that have requested notice, and posted in at least four
20permanent places within the project area for a period of three
21weeks. Publication, mailing, and posting shall be completed not
22less than 10 days prior to the date set for hearing.
Section 7073.1 of the Government Code is
19amended to read:
(a) Any city, county, or city and county with an eligible
21area within its jurisdiction may complete a preliminary application
22for designation as an enterprise zone. The applying entity shall
23establish definitive boundaries for the proposed enterprise zone
24and the targeted employment area. An entity may propose zones
25in areas with noncontiguous boundaries, and the department may
26designate those areas as zones if the director determines both of
28(1) The noncontiguous area is needed to implement the
29applicant’s economic development strategy.
30(2) The excluded area between the
proposed zone boundaries
31would not, based on the proposed economic strategy, also benefit
32from the zone designation.
33(b) (1) In designating enterprise zones, the department shall
34select from the applications submitted those proposed enterprise
35zones that, upon a comparison of all of the applications submitted,
36indicate that they propose the most appropriate economic
37development strategy and implementation plan utilizing state and
38local programs and incentives to create jobs, attract private sector
39investment, and improve the economic conditions within the zone
40proposed. The department shall prescribe a format that promotes
P66 1succinct and focused strategies and plans, and set minimum
2standards for the strategies and plans. For the purposes of this
3subdivision, important elements of a strategy or plan may include,
4but are not limited to, all of the following:
5(A) An assessment of current financial and community
6development strengths, needs, and opportunities.
7(B) A framework for investment of time, action, and money.
8(C) Clear articulation of goals.
9(D) Measurable objectives, including targets.
10(E) Proposed implementation activities and tasks, including
11timeframes, and a framework for evaluating performance, including
12qualitative and quantitative benchmarks.
13(2) For purposes of this subdivision, local incentives may
14include, but are not limited to, all of the following:
15(A) The suspension or relaxation of locally originated or
16modified building codes, zoning laws, general development plans,
17or rent controls.
18(B) The elimination or reduction of fees for applications,
19permits, and local government services.
20(C) The establishment of a streamlined permit process.
21(D) Elimination or reduction of construction taxes or business
23(E) The provision or expansion of infrastructure.
24(F) The targeting of federal block grant moneys, including small
25cities, education, and health and welfare block grants.
26(G) The targeting of economic development grants and loan
27moneys, including grant and loan moneys provided by the United
28States Department of Housing and Urban Development.
29(H) The targeting of state and federal job disadvantaged and
30vocational education grant moneys, including moneys provided
31by the federal Workforce Investment Act of 1998 (Public Law
32105-220), or its successor.
33(I) The targeting of federal or state transportation grant moneys.
34(J) The targeting of federal or state low-income housing and
35rental assistance moneys.
36(K) The use of tax allocation bonds, special assessment bonds,
37bonds under the Mello-Roos Community Facilities Act of 1982
38(Chapter 2.5 (commencing with Section 53311) of Part 1 of
39Division 2 of Title 5), industrial development bonds, revenue
40 bonds, private activity bonds, housing bonds, bonds issued pursuant
P67 1to the Marks-Roos Local Bond Pooling Act of 1985 (Article 4
2(commencing with Section 6584) of Chapter 5), certificates of
3participation, hospital bonds, redevelopment bonds, school bonds,
4and all special provisions provided for under federal tax law for
5enterprise community or empowerment zone bonds.
6(3) When designating new enterprise zones, the department
7shall take into consideration the location of existing zones and
8make every effort to locate new zones in a manner that will not
9adversely affect any existing zones.
10(4) When reviewing and ranking new enterprise zone
11applications, the department shall give bonus points to applications
12from jurisdictions that meet minimum threshold points and at least
13two of the following criteria:
14(A) The percentage of households within the census tracts of
15the proposed enterprise zone area, the income of which is below
16the poverty level, is at least 17.5 percent.
17(B) The average unemployment rate for the census tracts of the
18proposed enterprise zone area was not less than five percentage
19points above the statewide average for the most recent calendar
20year as determined by the Employment Development Department.
21(C) The applicant jurisdiction has, and can document that it has,
22a unique distress factor affecting long-term economic development,
23including, but not limited to, resource depletion, plant closure,
24industry recession, natural disaster, or military base closure.
25(5) Except as modified pursuant to paragraph (4), applications
26shall be ranked by the appropriateness of the economic
27development strategy and implementation plan, including all of
29(A) The extent the strategy clearly identifies the local resources,
30incentives, and programs that will be made available to the zone
31for meeting its goals and objectives.
32(B) The extent the strategy provides for attracting private sector
34(C) The extent the strategy includes related regional and
35community-based partnerships for achieving the goals and
36objectives in the strategy.
37(D) The extent
the strategy fits within the jurisdiction’s overall
38economic development strategy, including the extent the strategy
39and implementation plan is appropriate for the local community.
P68 1(E) The extent the strategy addresses the hiring and retention
2of unemployed or underemployed residents or low-income
3individuals in the proposed zone and surrounding areas.
4(F) The extent the strategy sets reasonable and measurable
5benchmarks, goals, and objectives.
6(G) The extent the strategy sets forth an appropriate funding
7schedule for management, oversight, and program delivery within
8the zone relative to the benchmarks, goals, and objectives in the
10(H) The extent
that the economic development strategy has a
11comprehensive incentive package for attracting private investment
12to the enterprise zone.
13(c) For any application for an enterprise zone designation
14submitted on or after January 1, 2014, both of the following shall
16(1) If any portion of the proposed zone is within, or previously
17was within, the boundaries of a previously designated enterprise
18zone, the aggregate size of the proposed enterprise zone shall not
19exceed the size of the previously designated enterprise zone by
20more than 15 percent.
21(2) If any portions of the proposed zone are within, or previously
22were within, the boundaries of two or more previously designated
23enterprise zones, the aggregate size of the proposed enterprise zone
24shall not exceed the size of the largest single previously designated
25enterprise zone by more than 15 percent.
26 (d) In evaluating applications for designation, the department
27shall ensure that applications are not disqualified solely because
28of technical deficiencies, and shall provide applicants with an
29opportunity to correct the deficiencies. Applications shall be
30disqualified if the deficiencies are not corrected within two weeks.
31 (e) Except upon dedesignation pursuant to subdivision (c) of
32Section 7076.1, Section 7076.2, or Section 7085.1, a designation
33made by the department shall be binding for a period of 15 years
34from the date of the original designation.
35 (f) This section shall apply
only to enterprise zone applications
36for which the department has issued a solicitation for new
37enterprise zone designations on or after January 1, 2007.