BILL NUMBER: SB 1404 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 7, 2014
INTRODUCED BY Senator Leno
FEBRUARY 21, 2014
An act to amend Section 18613.2 33333.7
of the Health and Safety Code, relating to mobilehomes
re development .
LEGISLATIVE COUNSEL'S DIGEST
SB 1404, as amended, Leno. Mobilehomes.
San Francisco redevelopment: successor agencies: housing.
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.
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.
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.
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.
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.
This bill would make technical, nonsubstantive changes to this
provision of law.
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. The Legislature finds and declares all
of the following:
(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.
(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.
(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.
(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.
(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.
(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.
SEC. 2. Section 33333.7 of the Health
and Safety Code is amended to read:
33333.7. (a) 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.
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 .
(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.
(b)
(c) Annual revenues authorized under this section
shall not exceed the amount necessary to fund the Low
and Moderate Income Housing Fund activities of the
successor agency in fulfilling these replacement housing
obligations . 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 paragraph subdivision shall
not exceed the amount of tax increment received and allocated to the
agency pursuant to the plan, as it has been amended
amended redevelopment plans , 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.
(c)
(d) The activities conducted with revenues received
under this paragraph shall be consistent with the affordable
housing requirements of this part and the policies and
objectives of the community's housing element, as reviewed
and approved by the department, 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
Development, and if the director deems it necessary, the annual
action plans shall be submitted to the department on an annual basis.
Development. 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.
(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.
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.