Amended in Senate April 7, 2014

Senate Bill No. 1404

Introduced by Senator Leno

February 21, 2014

An act to amend Section begin delete 18613.2 end delete begin insert 33333.7 end insert of the Health and Safety Code, relating to begin delete mobilehomes end delete begin insert redevelopment end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1404, as amended, Leno. begin delete Mobilehomes. end delete begin insert San Francisco redevelopment: successor agencies: housing. end insert

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The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved redevelopment agencies as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations. Existing law provides that the city, county, or city and county that authorized the creation of a redevelopment agency may elect to retain the housing assets and functions previously performed by the redevelopment agency. Existing law requires the entity assuming the housing functions of the former redevelopment agency to perform various functions.

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Existing law authorized the former Redevelopment Agency of the City and County of San Francisco, subject to the approval of the board of supervisors of that city and county, to incur indebtedness exclusively for specified Low and Moderate Income Housing Fund activities until January 1, 2014, or until the agency replaced all of the housing units demolished prior to the enactment of the replacement housing obligations, and to receive tax increment revenues to repay indebtedness incurred for those activities until no later than January 1, 2044, as specified.

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This bill would state findings and declarations relating to the obligation of the successor agency to the former Redevelopment Agency of the City and County of San Francisco to replace specified affordable housing units.

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This bill would instead authorize the successor agency of the City and County of San Francisco, subject to the approval of the oversight board of the City and County of San Francisco, to continue to receive property tax increment from specified redevelopment project areas, and to incur indebtedness pursuant to specified amended redevelopment plans, to fulfill the obligation to replace specified affordable housing units.

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The Mobilehome Parks Act requires that a copy of an installation permit for a new manufactured home or mobilehome be delivered to the county or city assessor having jurisdiction where the manufactured home or mobilehome is to be sited when the enforcement agency issues the permit.

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This bill would make technical, nonsubstantive changes to this provision of law.

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

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

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begin insert SECTION 1. end insert   

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The Legislature finds and declares all of the
following:

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(a) Under the authority granted by the Legislature in Senate
Bill No. 2113 (Chapter 661 of the Statutes of 2000), the former
Redevelopment Agency of the City and County of San Francisco
sought, prior to its dissolution, to redress the demolition of a
substantial number of residential dwelling units affordable to very
low, low-, and moderate-income households during the agency’s
earlier urban renewal efforts. In 2003, the California Department
of Housing and Community Development determined that the
former Redevelopment Agency must replace a net loss of 6,709
affordable units.

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(b) Prior to its dissolution, the Redevelopment Agency of the
City and County of San Francisco sought and received state and
local authorization to assume the replacement housing obligations
acknowledged in Senate Bill No. 2113 (Chapter 661 of the Statutes
of 2000). Between 2005 and 2009, the Board of Supervisors of the
City and County of San Francisco amended six redevelopment
plans to extend the time for the receipt and expenditure of tax
increment for the sole purpose of funding the replacement housing
obligations. San Francisco Ordinance No. 256-09 (December 18,
2009), amending Yerba Buena Center Redevelopment Plan, San
Francisco Ordinance No. 316-08 (December 19, 2008), amending
Western Addition A-2 Redevelopment Plan, San Francisco
Ordinance No. 115-07 (May 18, 2007), amending Rincon
Point-South Beach Redevelopment Plan, and San Francisco
Ordinance No. 15-05 (January 21, 2005), amending the
Embarcadero-Lower Market (Golden Gateway) Redevelopment
Plan, the Hunters Point Redevelopment Plan, and the India Basin
Redevelopment Plan. Under these redevelopment plan amendments,
the Redevelopment Agency was able to finance the construction
of 867 affordable units.

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(c) It is the intent of the Legislature to confirm that the
replacement of the remaining 5842 units that the former
Redevelopment Agency of the City and County of San Francisco
destroyed and did not replace is a statutory obligation that
agencies remains under Assembly Bill No. 26 (Chapter 5 of the
First Extraordinary Session of the Statutes of 2011), as amended
by Assembly Bill No. 1484 (Chapter 26 of the Statutes of 2012).
Furthermore, the Legislature finds that the ability of the Successor
Agency to the Redevelopment Agency of the City and County of
San Francisco to fulfill this replacement housing obligation is
dependent on its ability to incur indebtedness for the purpose of
financing the remaining unbuilt units.

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(d) Authorizing the Successor Agency to the Redevelopment
Agency of the City and County of San Francisco to continue to
receive property tax revenues under the formulas of Senate Bill
No. 2113, which ensure that school entities receive their full share
of property tax revenues as if the redevelopment plans had expired,
will not have a fiscal impact on the state.

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(e) San Francisco’s housing situation is unique, in that median
rents and sales prices are among the highest in the state even
though it exceeded the housing production goals of the Community
Redevelopment Law and used local funds beyond redevelopment
funding to assist affordable housing development. Nonetheless,
San Francisco’s early redevelopment activities, including the
removal of previously existing dwelling units serving a lower
income population, have compounded the effects of the private
market that have led to the city’s current affordable housing crisis.

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(f) After dissolution of the redevelopment agency, the oversight
board for the City and County of San Francisco acknowledged the
unfulfilled replacement housing obligations of the redevelopment
agency and approved the successor agency’s expenditures of funds
to fulfill those obligations (see Oversight Board Resolution
No. 5-2012 at pp. 5-6 (April 10, 2012)). Subsequently, the oversight
board approved expenditures for the replacement housing
obligations on each of the recognized obligation payment schedules
required under Redevelopment Dissolution Law and submitted to
the Department of Finance.

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begin insert SEC. 2. end insert   

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begin insert Section 33333.7 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

33333.7.  

(a)  begin delete Notwithstanding the time limits in paragraph (1)
of subdivision (a) of Section 33333.6, as that paragraph (1) read
on December 31, 2001, the Redevelopment Agency of the City
and County of San Francisco may, subject to the approval of the
Board of Supervisors of the City and County of San Francisco,
retain its ability to incur indebtedness exclusively for Low and
Moderate Income Housing Fund activities eligible under Sections
33334.2 and 33334.3 until January 1, 2014, or until the agency
replaces all of the housing units demolished prior to the enactment
of the replacement housing obligations in Chapter 970 of the
Statutes of 1975, whichever occurs earlier. The ability of the
agency to receive tax increment revenues to repay indebtedness
incurred for these Low and Moderate Income Housing Fund
activities may be extended until no later than January 1, 2044 .
Nothing in this shall be construed to extend a plan’s effectiveness,
except to incur additional indebtedness for Low and Moderate
Income Housing Fund activities, to pay previously incurred
indebtedness, and to enforce existing covenants, contracts, or other
obligations. end delete begin insert The successor agency to the Redevelopment Agency
of the City and County of San Francisco may, subject to the
approval of the oversight board of the City and County of San
Francisco, replace all of the housing units demolished prior to the
enactment of the replacement housing obligations in Chapter 970
of the Statutes of 1975 and further described in Section 3333.7 of
the Health and Safety Code, as added by Chapter 661 of the
Statutes of 2000. The successor agency shall not use more than
six redevelopment project areas under redevelopment plans that
were amended for this purpose prior to enactment of the law
dissolving redevelopment agencies, and that may be merged,
subject to approval by the oversight board pursuant to subdivision
(d) of Section 34180, to fulfill these replacement housing
obligations end insert begin insert . end insert

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(b) In addition to the powers granted to each successor agency,
and notwithstanding anything in Part 1.8 (commencing with
Section 34161) and Part 1.85 (commencing with Section 34170),
including, but not limited to, Sections 34162 and 34189, the
successor agency to the former redevelopment agency of the City
and County of San Francisco shall have the authority, rights, and
powers of the Redevelopment Agency of the City and County of
San Francisco, subject to the approval of the Oversight Board of
the City and County of San Francisco, and may incur indebtedness,
backed by property tax revenues from the six project areas
referenced in subdivision (a) exclusively for the purpose of fulfilling
the replacement housing obligations, provided, however, that the
standards for issuance of bonds specified in subdivisions (c) to
(h), inclusive, of Section 34177.5, as that section read on December
31, 2014, shall apply to the sale of those bonds. Bonds issued
pursuant to this subdivision may be sold pursuant to either a
negotiated or competitive sale. Any time limit on incurring debt
or receiving property tax revenues to repay that debt, pursuant to
this subdivision, shall not apply until the successor agency replaces
all of the units demolished prior to the enactment of the
replacement housing obligations in Chapter 970 of the Statutes of
1975. The successor agency may issue new bonds or other
obligations on a parity basis with outstanding bonds or other
obligations of the successor agency relating to the six project areas
referenced in subdivision (a), and may pledge the revenues pledged
to those outstanding bonds or other obligations to a new issuance
of bonds or other obligation, and that pledge, when made in
connection with the issuance of those bonds or other obligations
shall have the same lien priority as the pledge of outstanding bonds
or other obligations, and shall be valid, binding, and enforceable
in accordance with its terms.

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(b)

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begin insert (c) end insert  Annual revenues begin insert authorized under this section end insert shall not
exceed the amount necessary to fund the begin delete Low and Moderate
Income Housing Fund end delete activities of the begin insert successor end insert agency begin insert in
fulfilling these replacement housing obligations end insert . The agency shall
neither collect nor spend more than 10 percent for the planning
and administrative costs authorized pursuant to subdivision (e) of
Section 33334.3. Revenues received under this begin delete paragraph end delete
begin insert subdivision end insert shall not exceed the amount of tax increment received
and allocated to the agency pursuant to the begin delete plan, as it has been
amended end delete begin insert amended redevelopment plans end insert , less the amount necessary
to pay prior outstanding indebtedness, and less the amount of the
project area’s property tax revenue that school entities are entitled
to receive pursuant to Chapter 3 (commencing with Section 75)
and Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code if the plan had not
been amended. Additionally, revenues collected under this
paragraph are subject to the payments to affected taxing entities
pursuant to Section 33607.

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(c)

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begin insert (d) end insert  The activities conducted with revenues received under this
paragraph shall be consistent with the begin insert affordable housing
requirements of this part and the end insert policies and objectives of the
community’s housing element, begin delete as reviewed and approved by the
department, end delete and shall address the unmet housing needs of very
low, low- and moderate-income households. The activities shall
also be consistent with the community’s most recently approved
consolidated and annual action plans submitted to the United States
Department of Housing and Urban begin delete Development, and if the director
deems it necessary, the annual action plans shall be submitted to
the department on an annual basis. end delete begin insert Development. end insert No less than 50
percent of the revenues received shall be devoted to assisting in
the development of housing that is affordable to very low income
households.

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(d) The agency shall not incur any indebtedness pursuant to this
paragraph until the director certifies, after consulting with the
agency, the net difference between the number of housing units
affordable to persons and families of low and moderate income
that the agency destroyed or removed prior to January 1, 1976,
and the number of housing units affordable to persons and families
of low and moderate income that the agency rehabilitated,
developed, or constructed, or caused to be rehabilitated, developed,
or constructed within the project areas adopted prior to January 1,
1976.

(e) The agency shall not incur any indebtedness pursuant to this
paragraph unless the director of the department certifies annually,
prior to the creation of indebtedness, all of the following:

(1) The community has a current housing element that
substantially complies with the requirements of Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of
Title 7 of the Government Code.

(2) The community’s housing element indicates an unmet need
for Low and Moderate Income Housing Fund activities.

(3) The agency’s most recent independent financial audit report
prepared pursuant to Section 33080.1 reports acceptable findings
and no major violations of this part.

(4) The agency has complied with subdivision (a) of Section
33334.2.

(5) The agency has met the requirements of this part with respect
to the provision of dwelling units for persons and families of low
or moderate income, including, but not limited to, the requirements
of Section 33413.

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SECTION 1.  

Section 18613.2 of the Health and Safety Code
is amended to read:

18613.2.  

When the enforcement agency issues an installation
permit for a new manufactured home or mobilehome, a copy of
the permit shall be delivered to the county or city assessor having
jurisdiction where the manufactured home or mobilehome is to be
sited.

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