Senate Bill No. 628

Introduced by Senator Beall

February 22, 2013

An act to amend Sections 53395.1, 53395.3, 53395.10, 53395.11, 53395.12, 53395.14, 53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, and to add Sections 53395.7.5 and 65460.2.5 to, the Government Code, relating to local planning.

LEGISLATIVE COUNSEL’S DIGEST

SB 628, as introduced, Beall. Infrastructure financing.

(1) Existing law establishes the Transit Priority Project Program, and authorizes a city or county to participate in the program by adopting an ordinance indicating its intent to participate in the program and by forming an infrastructure financing district. Existing law requires a city or county that elects to participate in the program to amend, if necessary, its general plan, and any related specific plan, to authorize participating developers to build at an increased height of a minimum of 3 stories within the newly created infrastructure financing district. Existing law exempts from these provisions a city or county that has adopted specified language in its charter, or by ordinance or resolution.

This bill would eliminate the requirement of voter approval for the adoption of an infrastructure financing plan, the creation of an infrastructure financing district, and the issuance of bonds with respect to a transit priority project. The bill would require a city or county that uses infrastructure financing district bonds to finance its transit priority project to use at least 20% of the revenue from those bonds for the purposes of increasing, improving, and preserving the supply of lower and moderate-income housing; to require that those housing units remain available and occupied by moderate-, low-, very low, and extremely low income households for at least 55 years for rental units and 45 years for owner-occupied units; and to rehabilitate, develop, or construct for rental or sale to persons and families of low or moderate income an equal number of replacement dwellings to those removed or destroyed from the low- and moderate-income segment of the housing market as a result of the development of the district, as specified. The bill would set forth the findings and declarations of the Legislature, and the intent of the Legislature that the development of transit priority projects be environmentally conscious and sustainable, and that related construction meet or exceed the requirements of the California Green Building Standards Code.

(2) Existing law prohibits the legislative body of a city or county from enacting a resolution proposing the formation of an infrastructure finance district and providing for the division of taxes of any affected taxing entity unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to the division of taxes has been filed with the legislative body at or prior to the time of the hearing.

This bill would require, in the case of an affected taxing entity that is a special district that provides fire protection services and where the county board of supervisors is the governing authority or has appointed itself as the governing board of the district, that the proposed infrastructure financing district plan be adopted by a separate resolution approved by the special district’s governing authority or board.

This bill would also eliminate the requirement of voter approval and authorize the legislative body to create the district, adopt the plan, and issue the bonds by resolutions.

(3) Existing law requires that an infrastructure financing plan created by a legislative body to include a date on which the infrastructure finance district will cease to exist, which shall not be more than 30 years from the date on which the ordinance forming the district is adopted.

This bill instead would specify that the date on which the infrastructure finance district would cease to exist would not be more than 40 years from the date on which the legislative body adopted the resolution adopting the infrastructure financing plan.

The bill would also impose additional reporting requirements after the adoption of an infrastructure financing plan.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) Federal, state, and local governments in California are
investing in new and expanded transit systems in areas throughout
the state, including the County of Los Angeles, the San Francisco
Bay area, the County of San Diego, the County of Santa Clara,
and the County of Sacramento.

(2) This public investment in transit is unrivaled in the state’s
history and represents well over $10,000,000,000 in planned
investment alone.

(3) Recent studies of transit ridership in California indicate that
people who live within a one-half mile radius of transit stations
utilize the transit system in far greater numbers than does the
general public living elsewhere.

(4) The planning strategy of clustering housing and commercial
development around transit stations, and the creation of transit
priority projects pursuant to that strategy, has gained momentum
in recent years.

(5) Only a few transit stations in California have any
concentration of housing in close proximity to the station.

(6) The greater use of public transit facilitated by the
development of transit priority projects improves local street, road,
and highway congestion by providing viable alternatives to
automobile use.

(7) The development of transit priority projects can improve
environmental conditions by increasing the use of public transit,
facilitating the creation of and improvements to walkable,
mixed-use communities, and decreasing automobile use.

(8) Transit-oriented development can improve local and regional
economies by providing appropriate commercial and residential
development opportunities, including investment in local transit
priority project development, job creation through the construction
of related facilities, and job creation through employment
opportunities associated with related entertainment, retail,
residential, and other mixed-use development.

(9) Facilitating the use of infrastructure financing districts for
transit priority projects could provide local jurisdictions with a
cost-effective tool for pursuing transit-oriented development
projects.

(10) Tax-increment financing of transit priority projects will
provide a new tool for green development to help achieve the
sustainable communities strategy and regional transportation plan
goals of Senate Bill 375 of the 2007-08 Regular Session of the
Legislature (Chapter 728 of the Statutes of 2008), as well as the
greenhouse gas reduction goals of Assembly Bill 32 of the 2005-06
Regular Session of the Legislature (Chapter 488 of the Statutes of
2006).

(11) Tax-increment financing has been a useful tool for local
government to fund redevelopment projects, and there is a need
for the state to continue to provide local governments with revenue
generating infrastructure financing tools during difficult economic
times. Local governments will benefit greatly from the expanded
use of infrastructure financing districts for the delivery of
transit-oriented development and related low-income housing.

(b) It is the intent of the Legislature that the development of
transit priority projects throughout the state be environmentally
conscious and sustainable, and that related construction meet or
exceed the requirements of the California Green Building Standards
Code (Part 11 (commencing with Section 101.1) of Title 24 of the
California Code of Regulations, or its successor code).

SEC. 2.  

Section 53395.1 of the Government Code is amended
to read:

53395.1.  

Unless the context otherwise requires, the begin insert following end insert
definitions begin delete contained in this article end delete shall govern the construction
of this begin delete chapter. end delete begin insert chapter: end insert

(a) “Affected taxing entity” means any governmental taxing
agency begin delete which end delete begin insert that end insert levied or had levied on its behalf a property tax
on all or a portion of the property located in the proposed district
in the fiscal year prior to the designation of the district, but not
including any county office of education, school district, or
community college district.

(b) “City” means a city, a county, or a city and county.

(c) “Debt” means any binding obligation to repay a sum of
money, including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies,
or loans from banks, other financial institutions, private businesses,
or individuals.

(d) “Designated official” means the city engineer or other
appropriate official designated pursuant to Section 53395.13.

(e) (1) “District” means an infrastructure financing district.

(2) An infrastructure financing district is a “district” within the
meaning of Section 1 of Article XIII A of the California
Constitution.

(f) “Infrastructure financing district” means a legally constituted
governmental entity established pursuant to this chapter for the
sole purpose of financing public facilities.

(g) “Landowner” or “owner of land” means any person shown
as the owner of land on the last equalized assessment roll or
otherwise known to be the owner of the land by the legislative
body. The legislative body has no obligation to obtain other
information as to the ownership of land, and its determination of
ownership shall be final and conclusive for the purposes of this
chapter. A public agency is not a landowner or owner of land for
purposes of this chapter, unless the public agency owns all of the
land to be included within the proposed district.

(h) “Legislative body” means the city council or board of
supervisors.

begin insert

(i) “Transit facility” includes, but is not limited to, any publicly
owned facility and amenity necessary to implement a transit
priority project plan adopted pursuant to Article 8.5 (commencing
with Section 65460) of Chapter 3 of Division 1 of Title 7.

end insert

SEC. 3.  

Section 53395.3 of the Government Code is amended
to read:

53395.3.  

(a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer which satisfies the
requirements of subdivision (b), (2) may finance planning and
design work which is directly related to the purchase, construction,
expansion, or rehabilitation of that begin delete property end delete begin insert property, end insert and (3) the
costs described in Sections 53395.5, and 53396.5. A district begin delete may end delete
begin insert shall end insert only finance the purchase of facilities for which construction
has been completed, as determined by the legislative body. The
facilities need not be physically located within the boundaries of
the district. A district may not finance routine maintenance, repair
work, or the costs of ongoing operation or providing services of
any kind. begin insert A district shall not compensate the members of the
legislative body of the city for any activities undertaken pursuant
to this chapter. end insert

(b) The district shall finance only public capital facilities begin delete of
communitywide significance, which provide significant benefits
to an area larger than the area of the district, end delete including, but not
limited to, all of the following:

(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and
interceptor pipes.

(3) Facilities for the collection and treatment of water for urban
uses.

(4) Flood control levees and dams, retention basins, and drainage
channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.

(c) Any district which constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community’s supply of low- and moderate-income housing
available at an affordable housing cost, as defined by Section
50052.5 of the Health and Safety Code, to persons and families of
low- and moderate-income, as defined in Section 50093 of the
Health and Safety Code.

SEC. 4.  

Section 53395.7.5 is added to the Government Code,
to read:

53395.7.5.  

(a) The district may finance any project that
implements a transit priority project pursuant to Section 65470,
regional transportation plan, or other project that is consistent with
the general use, designation, density, building intensity, and
applicable policies specified for the project area in either a
sustainable communities strategy, or an alternative planning
strategy, for which the Air Resources Board, pursuant to Chapter
2.5 (commencing with Section 65080) of Division 1 of Title 7,
has accepted a metropolitan planning organization’s determination
that the sustainable communities strategy or the alternative planning
strategy, if implemented, would achieve the greenhouse gas
emission reduction targets.

(b) With respect to an infrastructure financing district proposed
to implement a transit priority project, an election is not required
to form an infrastructure financing district, adopt an infrastructure
financing plan, or issue bonds pursuant to this chapter. Any other
provision of this chapter applies to the formation of an
infrastructure financing district and the adoption of an infrastructure
financing plan.

SEC. 5.  

Section 53395.10 of the Government Code is amended
to read:

53395.10.  

A legislative body of a city may designate one or
more proposed infrastructure financing districts pursuant to this
chapter. Proceedings for the establishment of a district shall be
instituted by the adoption of a resolution of intention to establish
the proposed district and shall do all of the following:

(a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished
by reference to a map on file in the office of the clerk of the city.

(b) State the type of public facilities proposed to be financed
by the district. The district may only finance public facilities
authorized by Section 53395.3.

begin insert

(c) State the need for the district and the goals the district
proposes to achieve by financing public facilities.

end insert begin delete

(c)

end delete

begin insert (d) end insert  State that incremental property tax revenue from the city
and some or all affected taxing entities within the district may be
used to finance these public facilities.

begin delete

(d)

end delete

begin insert (e) end insert  Fix a time and place for a public hearing on the proposal.

SEC. 6.  

Section 53395.11 of the Government Code is amended
to read:

53395.11.  

The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the begin delete district. end delete begin insert district and to each affected
taxing entity. end insert

SEC. 7.  

Section 53395.12 of the Government Code is amended
to read:

53395.12.  

The legislative body shall direct the clerk to begin delete mail end delete
begin insert post end insert a copy of the resolution begin insert of intention end insert to begin delete each affected taxing
entity. end delete begin insert create the district in an easily identifiable and accessible
location on the legislative body’s Internet Web site. end insert

SEC. 8.  

Section 53395.14 of the Government Code is amended
to read:

53395.14.  

After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing plan.
The infrastructure financing plan shall be consistent with the
general plan of the city within which the district is located and
shall include all of the following:

(a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.

(b) A description of the public facilities required to serve the
development proposed in the area of the district including those
to be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs
of the public improvements and facilities.

(c) A finding that the public facilities begin delete are of communitywide
significance and end delete provide significant benefits to an area larger than
the area of the district.

(d) A financing section, which shall contain all of the following
information:

(1) A specification of the maximum portion of the incremental
tax revenue of the city and of each affected taxing entity proposed
to be committed to the district for each year during which the
district will receive incremental tax revenue. The portion need not
be the same for all affected taxing entities. The portion may change
over time.

(2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.

(3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.

(4) A limit on the total number of dollars of taxes which may
be allocated to the district pursuant to the plan.

(5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than begin delete 30 end delete begin insert 40 end insert years from the date on which the ordinance
forming the district is adopted pursuant to Section 53395.23.

(6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed. The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city as a result of expected
development in the area of the district.

(7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.

begin delete end delete begin delete

(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including
any permit and affordable housing expenses related to the project.

end delete begin delete end delete

(e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in
the course of private development or public works construction
within the area of the district, a plan providing for replacement of
those units and relocation of those persons or families consistent
with the requirements of Section 53395.5.

begin insert

(f) The goals the district proposes to achieve by financing public
facilities.

end insert

SEC. 9.  

Section 53395.19 of the Government Code is amended
to read:

53395.19.  

(a) The legislative body shall not enact a resolution
proposing formation of a district and providing for the division of
taxes of any affected taxing entity pursuant to Article 3
(commencing with Section 53396) unless a resolution approving
the plan has been adopted by the governing body of each affected
taxing entity which is proposed to be subject to division of taxes
pursuant to Article 3 (commencing with Section 53396) has been
filed with the legislative body at or prior to the time of the hearing.

begin insert

(b) In the case of an affected taxing entity that is a special
district that provides fire protection services and where the county
board of supervisors is the governing authority or has appointed
itself as the governing board of the district, the plan shall be
adopted by a separate resolution approved by the district’s
governing authority or governing board.

end insert begin delete

(b)

end delete

begin insert (c) end insert  Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan
and adopting a resolution proposing formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity which has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.

SEC. 10.  

Section 53395.20 of the Government Code is amended
to read:

53395.20.  

(a) At the conclusion of the begin delete hearing, end delete begin insert hearing
required by Section 53395.17, end insert the legislative body may adopt a
resolution begin delete proposing adoption of end delete begin insert adopting end insert the infrastructure
financing plan, as modified, and begin insert approving the end insert formation of the
infrastructure financing district in a manner consistent with Section
53395.19, or it may abandon the proceedings. begin delete If the legislative
body adopts a resolution proposing formation of the district, it
shall then submit the proposal to create the district to the qualified
electors of the proposed district in the next general election or in
a special election to be held, notwithstanding any other
requirement, including any requirement that elections be held on
specified dates, contained in the Elections Code, at least 90 days,
but not more than 180 days, following the adoption of the
resolution of formation. The legislative body shall provide the
resolution of formation, a certified map of sufficient scale and
clarity to show the boundaries of the district, and a sufficient
description to allow the election official to determine the
boundaries of the district to the official conducting the election
within three business days after the adoption of the resolution of
formation. The assessor’s parcel numbers for the land within the
district shall be included if it is a landowner election or the district
does not conform to an existing district’s boundaries and if
requested by the official conducting the election. If the election is
to be held less than 125 days following the adoption of the
resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct
of the election may be waived with the unanimous consent of the
qualified electors of the proposed district and the concurrence of
the election official conducting the election. end delete

begin delete

(b) If at least 12 persons have been registered to vote within the
territory of

end delete begin insert

(b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the legislative body shall direct the
clerk to mail an annual report to each owner of land within the
district and each affected taxing entity. The legislative body shall
direct the clerk to post this annual report in an easily identifiable
and accessible location on the legislative body’s Internet Web site.
The annual report shall contain all of the following:

end insert begin insert

(1) A summary of the district’s expenditures.

end insert begin insert

(2) A description of the progress made towards the district’s
adopted goals.

end insert

begin insert (3) end insert begin insert   end insert begin insert An assessment of end insert the begin delete proposed district for each end delete begin insert status
regarding completion end insert of the begin delete 90 days preceding the close of the
hearing, the vote shall be by the registered voters of the proposed
district, who need not necessarily be the same persons, with each
voter having one vote. Otherwise, the vote shall be by the
landowners of the proposed district and each landowner who is
the owner of record at the close of the protest hearing, or the
authorized representative thereof, shall have one vote for each acre
or portion of an acre of land that he or she owns within the
proposed district. The number of votes to be voted by a particular
landowner shall be specified on the ballot provided to that
landowner. end delete begin insert district’s public works projects. end insert

(c)  begin delete Ballots for end delete begin insert If end insert the begin delete special election authorized end delete begin insert district fails to
provide the annual report required end insert by subdivision begin delete (a) may be
distributed to qualified electors by mail with return postage prepaid
or by personal service by end delete begin insert (b), end insert the begin delete election official. The official
conducting the election may certify the proper mailing of ballots
by an affidavit, which end delete begin insert district end insert shall begin delete be exclusive proof of mailing
in the absence of fraud. The voted ballots shall be returned to the
election officer conducting the election end delete not begin delete later than the hour
specified in the resolution calling end delete begin insert spend any funds to construct
public works projects until end insert the begin delete election. However, if all the
qualified voters have voted, the election shall be closed. end delete begin insert annual
report is submitted. end insert

begin insert

(d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public
works projects; provided, however, the district may complete any
public works projects that it had started. Any excess property tax
increment revenues that had been allocated for new public works
projects shall be reallocated to the affected taxing entities.

end insert

SEC. 11.  

Section 53396 of the Government Code is amended
to read:

53396.  

Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure financing district each year
by or for the benefit of the State of California, or any affected
taxing entity after the effective date of the ordinance adopted
pursuant to Section 53395.23 to create the district, begin insert unless the
district implements a transit priority project end insert begin insert plan pursuant to
Section 53395.75, end insert shall be divided as follows:

(a) That portion of the taxes which would be produced by the
rate upon which the tax is levied each year by or for each of the
affected taxing entities upon the total sum of the assessed value
of the taxable property in the district as shown upon the assessment
roll used in connection with the taxation of the property by the
affected taxing entity, last equalized prior to the effective date of
the ordinance adopted pursuant to Section 53395.23 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the affected
taxing entities on all other property are paid.

(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special
fund of, the district for all lawful purposes of the district. Unless
and until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.

SEC. 12.  

Section 53397.1 of the Government Code is amended
to read:

53397.1.  

The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
begin delete resolution stating its intent to issue the bonds. end delete begin insert resolution. end insert

SEC. 13.  

Section 53397.2 of the Government Code is amended
to read:

53397.2.  

The resolution adopted pursuant to Section 53397.1
shall contain all of the following information:

(a) A description of the facilities to be financed with the
proceeds of the begin delete proposed end delete bond issue.

(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
begin delete proposed end delete bond issuance.

(c) The maximum interest rate and discount on the proposed
bond issuance.

begin delete end delete begin delete

(d) The date of the election on the proposed bond issuance and
the manner of holding the election.

end delete begin delete end delete begin delete

(e)

end delete

begin insert (d) end insert  A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.

begin delete

(f)

end delete

begin insert (e) end insert  A finding that the amount necessary to pay the principal of,
and interest on, the begin delete proposed end delete bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision begin delete (e). end delete begin insert (d). end insert

begin insert

(f) The issuance of the bonds in one or more series.

end insert begin insert

(g) The date the bonds will bear.

end insert begin insert

(h) The denomination of the bonds.

end insert begin insert

(i) The form of the bonds.

end insert begin insert

(j) The manner and execution of the bonds.

end insert begin insert

(k) The medium of payment in which the bonds are payable.

end insert begin insert

(l) The place or manner of payment and any requirements for
registration of the bonds.

end insert begin insert

(m) The terms or call of redemption, with or without premium.

end insert

SEC. 14.  

Section 65460.2.5 is added to the Government Code,
to read:

65460.2.5.  

If a city, county, or city and county finances a
district that implements a transit priority project plan adopted
pursuant to this article, the city, county, or city and county shall
do all of the following:

(a) Use at least 20 percent of all revenues derived from the
property tax increment under Chapter 2.8 (commencing with
Section 53395) of Part 1 of Division 2 of Title 5 for the purposes
of increasing, improving, and preserving the supply of lower and
moderate-income housing available in the district at an affordable
housing cost, as defined in Section 50052.5 of the Health and
Safety Code, and occupied by persons and families of low or
moderate income, as defined in Section 50093 of the Health and
Safety Code, lower income households, as defined in Section
50079.5 of the Health and Safety Code, very low income
households, as defined in Section 50105 of the Health and Safety
Code, and extremely low income households, as defined in Section
50106 of the Health and Safety Code. The amount of very low,
low- and moderate-income housing shall be in compliance with
the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code) and
any adopted policies of the city, county, or city and county that
adopted the transit priority project plan.

(b) Require that housing units described in subdivision (a)
remain available at affordable housing cost to, and occupied by,
persons and families of low- or moderate-income and very low
income and extremely low income households for the longest
feasible time, but for not less than 55 years for rental units and 45
years for owner-occupied units. The covenants or restrictions
implementing this requirement shall be in compliance with
subdivision (f) of Section 33334.3 of the Health and Safety Code.

(c) Rehabilitate, develop, or construct, or cause to be
rehabilitated, developed, or constructed for rental or sale to persons
or families of low or moderate income an equal number of
replacement dwelling units that have an equal or greater number
of bedrooms as the destroyed or removed units, at affordable
housing costs within the district, and within four years after the
destruction or removal, whenever dwelling units housing persons
or families of low or moderate income are destroyed or removed
from the low- and moderate-income housing market as part of the
development of a district that is subject to a written agreement
with the city, county, or city and county, or when financial
assistance has been provided by the city, county, or city and county.
The replacement dwelling units shall be available at affordable
housing cost to, and occupied by, persons and families in the same
or a lower income category as the persons and families displaced
from those destroyed or removed units.

(d) Include in the transit priority project plan both of the
following:

(1) As one of the five demonstrable public benefits required by
subdivision (f) of Section 65460.2, either an increased stock of
affordable housing or live-travel options for transit-needy groups.

(2) Provisions to implement subdivisions (a) and (b) and
paragraph (1).