Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 2


Introduced by Assemblybegin delete Memberend deletebegin insert Membersend insert Alejobegin insert and Eduardo end insertbegin insertGarciaend insert

begin insert

(Coauthors: Assembly Members Brown, Chiu, Cristina Garcia, Holden, McCarty, Mullin, Perea, and Ting)

end insert

December 1, 2014


An actbegin insert to add Division 4 (commencing with Section 62000) to Title 6 of the Government Code,end insert relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2, as amended, Alejo. Community revitalization authority.

The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined by means of redevelopment projects financed by the issuance of bonds serviced by tax increment revenues derived from the project area. Existing law dissolved redevelopment agencies and community development agencies, as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved agencies and to fulfill the enforceable obligations of those agencies. Existing law also provides for various economic development programs that foster community sustainability and community and economic development initiatives throughout the state.

begin delete

This bill would state the intent of the Legislature to enact legislation that would authorize certain local agencies to form a community revitalization authority within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization, and to provide for the financing of these activities by, among other things, the issuance of bonds serviced by tax increment revenues.

end delete
begin insert

This bill would authorize certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. The bill would provide for the financing of these activities by, among other things, the issuance of bonds serviced by tax increment revenues, and would require the authority to adopt a community revitalization plan for the community revitalization and investment area that includes elements describing and governing revitalization activities. The bill would also provide for periodic audits by the Controller. The bill would also require the Department of Housing and Community Development, advised by an advisory committee appointed by the Director of Housing and Community Development, to periodically review the calculation of surplus housing under these provisions. The bill would require certain funds allocated to the authority to be deposited into a separate Low and Moderate Income Housing Fund and used by the authority for the purposes of increasing, improving, and preserving the community’s supply, as specified. The bill would, if an authority failed to expend or encumber surplus in the Low and Moderate Income Housing Fund, require those funds to be disbursed towards housing needs. The bill would require an authority to make relocation provisions for persons displaced by a plan and replace certain dwelling units that are destroyed or removed as part of a plan. The bill would authorize an authority to acquire interests in real property and exercise the power of eminent domain, as specified.

end insert

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

The Legislature finds and declares all of the
2following:

end insert
begin insert

3(a) Certain areas of the state are generally characterized by
4buildings in which it is unsafe or unhealthy for persons to live or
5work, conditions that make the viable use of buildings or lots
6difficult, high business vacancies and lack of employment
P3    1opportunities, and inadequate public improvements, water, or
2sewer utilities. It is the intent of the Legislature to create a planning
3and financing tool to support the revitalization of these
4communities.

end insert
begin insert

5(b) It is in the interest of the state to support the economic
6revitalization of these communities through tax increment
7financing.

end insert
begin insert

8(c) It is the intent of the Legislature to authorize the creation
9of Community Revitalization and Investment Authorities to invest
10property tax increment revenue to relieve conditions of
11unemployment, reduce high crime rates, repair deteriorated or
12inadequate infrastructure, promote affordable housing, and
13improve conditions leading to increased employment opportunities.

end insert
14begin insert

begin insertSEC. 2.end insert  

end insert

begin insertDivision 4 (commencing with Section 62000) is added
15to Title 6 of the end insert
begin insertGovernment Codeend insertbegin insert, to read:end insert

begin insert

16 

17Division begin insert4.end insert  Community Revitalization and
18Investment Authorities

19

19 

20PART begin insert1.end insert  General Provisions

21

 

22

begin insert62000.end insert  

As used in this division, the following terms have the
23following meanings:

24(a) “Authority” means the Community Revitalization and
25Investment Authority created pursuant to this division.

26(b) “Plan” means a community revitalization plan and shall be
27deemed to be the plan described in Section 16 of Article XVI of
28the California Constitution.

29(c) “Plan area” means territory included within a community
30revitalization and investment area.

31(d) “Revitalization project” means a physical improvement to
32real property funded by the authority.

33

begin insert62001.end insert  

(a) A community revitalization and investment authority
34is a public body, corporate and politic, with jurisdiction to carry
35out a community revitalization plan within a community
36revitalization and investment area. The authority shall be deemed
37to be the “agency” described in subdivision (b) of Section 16 of
38Article XVI of the California Constitution for purposes of receiving
39tax increment revenues. The authority shall have only those powers
40and duties specifically set forth in Section 62002.

P4    1(b) (1) An authority may be created in any one of the following
2ways:

3(A) A city, county, or city and county may adopt a resolution
4creating an authority. The composition of the governing board
5shall be comprised as set forth in subdivision (c).

6(B) A city, county, city and county, and special district, as
7special district is defined in subdivision (m) of Section 95 of the
8Revenue and Taxation Code, or any combination thereof, may
9create an authority by entering into a joint powers agreement
10pursuant to Chapter 5 (commencing with Section 6500) of Division
117 of Title 1.

12(2) (A) A school entity, as defined in subdivision (f) of Section
1395 of the Revenue and Taxation Code, may not participate in an
14authority created pursuant to this part.

15(B) A successor agency, as defined in subdivision (j) of Section
1634171 of the Health and Safety Code, may not participate in an
17authority created pursuant to this part, and an entity created
18pursuant to this part shall not receive any portion of the property
19tax revenues or other moneys distributed pursuant to Section 34188
20of the Health and Safety Code.

21(3) An authority formed by a city or county that created a
22redevelopment agency that was dissolved pursuant to Part 1.85
23(commencing with Section 34170) of Division 24 of the Health
24and Safety Code shall not become effective until the successor
25agency or designated local authority for the former redevelopment
26agency has adopted findings of fact stating all of the following:

27(A) The agency has received a finding of completion from the
28Department of Finance pursuant to Section 34179.7 of the Health
29and Safety Code.

30(B) No former redevelopment agency assets which are the
31subject of litigation against the state, where the city or county or
32its successor agency or designated local authority are a named
33plaintiff, have been or will be used to benefit any efforts of an
34authority formed under this part unless the litigation, has been
35resolved by entry of a final judgment by any court of competent
36jurisdiction and any appeals have been exhausted.

37(C) The agency has complied with all orders of the Controller
38pursuant to Section 34167.5 of the Health and Safety Code.

39(c) (1) The governing board of an authority created pursuant
40to subparagraph (A) of paragraph (1) of subdivision (b) shall be
P5    1appointed by the legislative body of the city, county, or city and
2county that created the authority and shall include three members
3of the legislative body of the city, county, or city and county that
4created the authority and two public members. The appointment
5of the two public members shall be subject to the provisions of
6Section 54974. The two public members shall live or work within
7the community revitalization and investment area.

8(2) The governing body of the authority created pursuant to
9subparagraph (B) of paragraph (1) of subdivision (b) shall be
10comprised of a majority of members from the legislative bodies of
11the public agencies that created the authority and a minimum of
12two public members who live or work within the community
13revitalization and investment area. The majority of the board shall
14appoint the public members to the governing body. The
15appointment of the public members shall be subject to the
16provisions of Section 54974.

17(d) An authority may carry out a community revitalization plan
18within a community revitalization and investment area. Not less
19than 80 percent of the land calculated by census tracts, or census
20block groups, as defined by the United States Census Bureau,
21within the area shall be characterized by both of the following
22 conditions:

23(1) An annual median household income that is less than 80
24percent of the statewide annual median income.

25(2) Three of the following four conditions:

26(A) Nonseasonal unemployment that is at least 3 percent higher
27than statewide median unemployment, as defined by the report on
28labor market information published by the Employment
29Development Department in January of the year in which the
30community revitalization plan is prepared.

31(B) Crime rates that are 5 percent higher than the statewide
32median crime rate, as defined by the most recent annual report of
33the Criminal Justice Statistics Center within the Department of
34Justice, when data is available on the California Attorney
35General’s Internet Web site.

36(C) Deteriorated or inadequate infrastructure such as streets,
37sidewalks, water supply, sewer treatment or processing, and parks.

38(D) Deteriorated commercial or residential structures.

39(e) As an alternative to subdivision (d), an authority may also
40carry out a community revitalization plan within a community
P6    1revitalization and investment area established within a former
2military base that is principally characterized by deteriorated or
3inadequate infrastructure and structures. Notwithstanding
4subdivision (c), the governing board of an authority established
5within a former military base shall include a member of the military
6base closure commission as a public member.

7(f) An authority created pursuant to this part shall be a local
8public agency subject to the Ralph M. Brown Act (Chapter 9
9(commencing with Section 54950) of Part 1 of Division 2 of Title
105), the California Public Records Act (Chapter 3.5 (commencing
11with Section 6250) of Division 7 of Title 1), and the Political
12Reform Act of 1974 (Title 9 (commencing with Section 81000)).

13(g) (1) At any time after the authority is authorized to transact
14business and exercise its powers, the legislative body or bodies of
15the local government or governments that created the authority
16may appropriate the amounts the legislative body or bodies deem
17necessary for the administrative expenses and overhead of the
18authority.

19(2) The money appropriated may be paid to the authority as a
20grant to defray the expenses and overhead, or as a loan to be
21repaid upon the terms and conditions as the legislative body may
22provide. If appropriated as a loan, the property owners within the
23plan area shall be made third-party beneficiaries of the repayment
24of the loan. In addition to the common understanding and usual
25interpretation of the term, “administrative expense” includes, but
26is not limited to, expenses of planning and dissemination of
27information.

28

begin insert62002.end insert  

An authority may do all of the following:

29(a) Provide funding to rehabilitate, repair, upgrade, or construct
30infrastructure.

31(b) Provide for low- and moderate-income housing.

32(c) Remedy or remove a release of hazardous substances
33pursuant to the Polanco Redevelopment Act (Article 12.5
34(commencing with Section 33459) of Part 1 of Chapter 4 of
35Division 24) or Chapter 6.10 (commencing with Section 25403)
36of Division 20 of the Health and Safety Code.

37(d) Provide for seismic retrofits of existing buildings in
38accordance with all applicable laws and regulations.

39(e) Acquire and transfer real property in accordance with Part
403 (commencing with Section 62200). The authority shall retain
P7    1controls and establish restrictions or covenants running with the
2land sold or leased for private use for such periods of time and
3under such conditions as are provided in the plan. The
4establishment of such controls is a public purpose under the
5provisions of this part.

6(f) Issue bonds in conformity with Article 4.5 (commencing with
7Section 53506) and Article 5 (commencing with Section 53510)
8of Chapter 3 of Part 1 of Division 2 of Title 5.

9(g) Borrow money, receive grants, or accept financial or other
10assistance or investment from the state or the federal government
11or any other public agency or private lending institution for any
12project or within its area of operation, and may comply with any
13 conditions of the loan or grant. An authority may qualify for
14funding as a disadvantaged community pursuant to Section 79505.5
15of the Water Code or as defined by Section 56033.5. An authority
16may also enter into an agreement with a qualified community
17development entity, as defined by Section 45D(c) of the Internal
18Revenue Code, to coordinate investments of funds derived from
19the New Markets Tax Credit with those of the authority in instances
20where coordination offers opportunities for greater efficiency of
21investments to improve conditions described in subdivisions (d)
22and (e) within the territorial jurisdiction of the authority.

23(h) Adopt a community revitalization and investment plan
24pursuant to Sections 62003 and 62004.

25(i) Make loans or grants for owners or tenants to improve,
26rehabilitate, or retrofit buildings or structures within the plan
27area.

28(j) Construct foundations, platforms, and other like structural
29forms necessary for the provision or utilization of air rights sites
30for buildings to be used for residential, commercial industrial, or
31other uses contemplated by the revitalization plan.

32(k) Provide direct assistance to businesses within the plan area
33in connection with new or existing facilities for industrial or
34manufacturing uses, except as specified in this division.

35

begin insert62003.end insert  

An authority shall adopt a community revitalization
36and investment plan that may include a provision for the receipt
37of tax increment funds generated within the area according to
38Section 62005, provided the plan includes each of the following
39elements:

P8    1(a) A statement of the principal goals and objectives of the plan
2including territory to be covered by the plan.

3(b) A description of the deteriorated or inadequate infrastructure
4within the area and a program for construction of adequate
5infrastructure or repair or upgrading of existing infrastructure.

6(c) A housing program that complies with Part 2 (commencing
7with Section 62100).

8(d) A program to remedy or remove a release of hazardous
9substances, if applicable.

10(e) A program to provide funding for or otherwise facilitate the
11economic revitalization of the area.

12(f) A fiscal analysis setting forth the projected receipt of revenue
13and projected expenses over a five-year planning horizon,
14including the potential issuance of bonds backed by tax increment
15during the term of the plan. Bonds shall be issued in conformity
16with Article 4.5 (commencing with Section 53506) and Article 5
17(commencing with Section 53510) of Chapter 3 of Part 1 of
18Division 2 of Title 5.

19(g) Time limits that may not exceed the following:

20(1) Thirty years for establishing loans, advances and
21 indebtedness.

22(2) Forty-five years for the repayment of all of the authority’s
23debts and obligations, and fulfilling all of the authority’s housing
24obligations. The plan shall specify that an authority shall dissolve
25as a legal entity in no more than 45 years, and no further taxes
26shall be allocated to the authority pursuant to Section 62006.
27Nothing in this paragraph shall be interpreted to prohibit an
28authority from refinancing outstanding debt solely to reduce
29interest costs.

30(h) A determination that the community revitalization investment
31area complies with the conditions described in subdivision (d) or
32(e) of Section 62001.

33

begin insert62004.end insert  

(a) The authority shall consider adoption of the plan
34at three public hearings that shall take place at least 30 days apart.
35At the first public hearing, the authority shall hear all written and
36oral comments but take no action. At the second public hearing,
37the authority shall consider all written and oral comments and
38take action to modify or reject the plan. If the plan is not rejected
39at the second public hearing, then the authority shall conduct a
40protest proceeding at the third public hearing to consider whether
P9    1the property owners and residents within the plan area wish to
2present oral or written protests against the creation of the
3authority.

4(b) The draft plan shall be made available to the public and to
5each property owner within the area at a meeting held at least 30
6days prior to the notice given for the first public hearing. The
7purposes of the meeting shall be to allow the staff of the authority
8to present the draft plan, answer questions about the plan, and
9consider comments about the plan.

10(c) Notice of the first public hearing shall be given by
11publication not less than once a week for four successive weeks
12in a newspaper of general circulation published in the county in
13which the area lies and shall be mailed to each property owner
14within the proposed area of the plan. Notice of the second public
15hearing shall be given by publication not less than 10 days prior
16to the date of the second public hearing in a newspaper of general
17circulation published in the county in which the area lies and shall
18be mailed to each property owner within the proposed area of the
19plan. The notice shall do all of the following, as applicable:

20(1) Describe specifically the boundaries of the proposed area.

21(2) Describe the purpose of the plan.

22(3) State the day, hour, and place when and where any and all
23persons having any comments on the proposed plan may appear
24to provide written or oral comments to the authority.

25(4) Notice of second public hearing shall include a summary of
26the changes made to the plan as a result of the oral and written
27testimony received at or before the public hearing and shall identify
28a location accessible to the public where the plan to be presented
29at the second public hearing can be reviewed.

30(5) Notice of the third public hearing to consider any written
31or oral protests shall contain a copy of the final plan adopted
32pursuant to subdivision (a), and shall inform the property owner
33and resident of his or her right to submit an oral or written protest
34before the close of the public hearing. The protest may state that
35the property owner or resident objects to the authority taking
36action to implement the plan.

37(d) At the third public hearing, the authority shall consider all
38written and oral protests received prior to the close of the public
39hearing and shall terminate the proceedings or adopt the plan
40subject to confirmation by the voters at an election called for that
P10   1purpose. The authority shall terminate the proceedings if there is
2a majority protest. A majority protest exists if protests have been
3filed representing over 50 percent of the combined number of
4property owners and residents in the area who are at least 18
5years of age. An election shall be called if between 25 percent and
650 percent of the combined number of property owners and
7 residents in the area who are at least 18 years of age file a protest.

8(e) An election required pursuant to subdivision (d) shall be
9held within 90 days of the public hearing and may be held by
10mail-in ballot. The authority shall adopt, at a duly noticed public
11hearing, procedures for this election.

12(f) If a majority of the property owners and residents vote
13against the plan, then the authority shall not take any further action
14to implement the proposed plan. The authority shall not propose
15a new or revised plan to the affected property owners and residents
16for at least one year following the date of an election in which the
17plan was rejected.

18(g) The authority may provide notice of the public hearings to
19tenants of properties within the proposed area of the plan in a
20manner of its choosing.

21(h) At the hour set in the notice required by subdivision (a), the
22authority shall consider all written and oral comments.

23(i) If a majority protest does not exist, the authority may adopt
24the plan at the conclusion of the third public hearing by ordinance.
25The ordinance adopting the plan shall be subject to referendum
26as prescribed by law.

27(j) For the purposes of Section 62005, the plan shall be the plan
28adopted pursuant to this section.

29(k) The authority shall consider and adopt an amendment or
30amendments to a plan in accordance with the provisions of this
31section.

32

begin insert62005.end insert  

(a) (1) The plan adopted pursuant to Section 62004
33may include a provision that taxes levied and collected upon
34taxable property in the area included within the territory each
35year by or for the benefit the taxing agencies that have adopted a
36resolution pursuant to subdivision (d), shall be divided as follows:

37(A) That portion of the taxes that would have been produced by
38the rate upon which the tax is levied each year by or for each of
39the consenting local agencies upon the total sum of the assessed
40value of the taxable property in the territory as shown upon the
P11   1assessment roll used in connection with the taxation of the property
2by the consenting local agency, last equalized prior to the effective
3date of the certification of completion, and that portion of taxes
4by or for each school entity, shall be allocated to, and when
5collected shall be paid to, the respective consenting local agencies
6and school entities as taxes by or for the consenting local agencies
7and school entities on all property are paid.

8(B) That portion of the levied taxes each year specified in the
9community revitalization plan adopted pursuant to Section 62004
10for each consenting local agency that has agreed to participate
11pursuant a resolution adopted pursuant to subdivision (d), in excess
12of the amount specified in subparagraph (A), shall be allocated
13to, and when collected shall be paid into a special fund of a the
14authority to finance the improvements specified in the community
15revitalization plan.

16(2) A consenting local agency may advance funds to the
17authority. The authority shall use those advanced funds solely for
18the purposes specified in the community revitalization plan and
19shall repay the consenting local agency with revenue from the
20taxes received pursuant to this subdivision.

21(b) For purposes of this section, the following definitions apply:

22(1) “Taxing agency” means a local agency as defined by
23subdivision (a) of Section 95 of the Revenue and Taxation Code,
24and does not include any school entity as defined in subdivision
25(f) of Section 95 of the Revenue and Taxation Code.

26(2) “Consenting local agency” means a local agency that has
27adopted a resolution of its governing body consenting to the
28annexation development plan.

29(3) “Territory” means the land that is contained within the
30community revitalization plan.

31(c) The provision for the receipt of tax increment funds shall
32become effective in the tax year that begins after the December 1
33first following the adoption of the plan.

34(d) At any time prior to or after adoption of the plan, any city,
35county, or special district, other than a school entity as defined in
36subdivision (n) of Section 95 of the Revenue and Taxation Code
37or a successor agency as defined in subdivision (j) of Section
3834171, that receives ad valorem property taxes from property
39located within an area may adopt a resolution directing the county
40auditor-controller to allocate its share of tax increment funds
P12   1within the area covered by the plan according to subdivision (a)
2to the authority. The resolution adopted pursuant to this subdivision
3may direct the county auditor-controller to allocate less than the
4full amount of the tax increment, establish a maximum amount of
5time in years that the allocation takes place, or limit the use of the
6funds by the authority for specific purposes or programs. A
7resolution adopted pursuant to this subdivision may be repealed
8and be of no further effect by giving the county auditor-controller
960 days’ notice; provided, however, that the county
10auditor-controller shall continue to allocate to the authority the
11taxing entity’s share of ad valorem property taxes that have been
12pledged to the repayment of debt issued by the authority until the
13debt has been fully repaid. Prior to adopting a resolution pursuant
14to this subdivision a city, county, or special district shall approve
15a memorandum of understanding with the authority governing the
16authority’s use of tax increment funds for administrative and
17overhead expenses pursuant to subdivision (g) of Section 62001.

18(e) Upon adoption of a plan that includes a provision for the
19receipt of tax increment funds according to subdivision (a), the
20county auditor-controller shall allocate tax increment revenue to
21the authority as follows:

22(1) If the authority was formed pursuant to subparagraph (A)
23of paragraph (1) of subdivision (b) of Section 62001, the authority
24shall be allocated each year specified in the plan that portion of
25the taxes levied for each city, county, city and county, and special
26district that has adopted a resolution pursuant to subdivision (d),
27in excess of the amount specified in paragraph (1) of subdivision
28(a).

29(2) If the authority was formed pursuant to subparagraph (B)
30of paragraph (1) of subdivision (b) of Section 62001, the authority
31shall be allocated each year specified in the plan that portion of
32the taxes levied for each jurisdiction as provided in the joint powers
33agreement in excess of the amount specified in paragraph (1) of
34subdivision (a).

35(f) If an area includes, in whole or in part, land formerly or
36currently designated as a part of a redevelopment project area,
37as defined in Section 33320.1 of the Health and Safety Code, any
38plan adopted pursuant to this part that includes a provision for
39the receipt of tax increment revenues according to subdivision (a)
40shall include a provision that tax increment amounts collected and
P13   1received by an authority are subject and subordinate to any
2preexisting enforceable obligation as that term is defined by
3Section 34171 of the Health and Safety Code.

4

begin insert62006.end insert  

(a) The authority shall review the plan at least annually
5and make any amendments that are necessary and appropriate in
6accordance with the procedures set forth in Section 62004 and
7shall require the preparation of an annual independent financial
8audit paid for from revenues of the authority.

9(b) An authority shall adopt an annual report on or before June
1030 of each year after holding a public hearing. Written copies of
11the draft report shall be made available to the public 30 days prior
12to the public hearing. The authority shall cause the draft report
13to be posted in an easily identifiable and accessible location on
14the authority’s Internet Web site and shall mail a written notice
15of the availability of the draft report on the Internet Web site to
16each owner of land and each resident within the area covered by
17the plan and to each taxing entity that has adopted a resolution
18pursuant to subdivision (d) of Section 62005. The notice shall be
19mailed by first-class mail, but may be addressed to “occupant.”

20(c) The annual report shall contain all of the following:

21(1) A description of the projects undertaken in the fiscal year,
22including any rehabilitation of structures, and a comparison of
23the progress expected to be made on those projects compared to
24the actual progress.

25(2) A chart comparing the actual revenues and expenses,
26including administrative costs, of the authority to the budgeted
27revenues and expenses.

28(3) The amount of tax increment revenues received.

29(4) The amount of revenues expended for low- and
30moderate-income housing.

31(5) An assessment of the status regarding completion of the
32authority’s projects.

33(6) The amount of revenues expended to assist private
34businesses.

35(d) If the authority fails to provide the annual report required
36by subdivision (a), the authority shall not spend any funds received
37pursuant to a resolution adopted pursuant to subdivision (d) of
38Section 62005.

39(e) Every 10 years, at the public hearing held pursuant to
40subdivision (b), the authority shall conduct a protest proceeding
P14   1to consider whether the property owners and residents within the
2plan area wish to present oral or written protests against the
3authority. Notice of this protest proceeding shall be included in
4the written notice of the hearing on the annual report and shall
5inform the property owner and resident of his or her right to submit
6an oral or written protest before the close of the public hearing.
7The protest may state that the property owner or resident objects
8to the authority taking action to implement the plan on and after
9the date of the election described in subdivision (f). The authority
10shall consider all written and oral protests received prior to the
11close of the public hearing.

12(f) If there is a majority protest, the authority shall not take any
13further action to implement the plan on and after the date the
14existence of a majority protest is determined. If between 25 percent
15and 50 percent of the property owners and residents file protests,
16then the authority shall call an election of the property owners
17and residents in the area covered by the plan, and shall not initiate
18or authorize any new projects until the election is held. A majority
19protest exists if protests have been filed representing over 50
20percent of the combined number of property owners and residents,
21at least 18 years of age or older, in the area.

22(g) An election required pursuant to subdivision (f) shall be
23held within 90 days of the public hearing and may be held by
24mail-in ballot. The authority shall adopt, at a duly noticed public
25hearing, procedures for holding this election.

26(h) If a majority of the property owners and residents vote
27against the authority, then the authority shall not take any further
28action to implement the plan on and after the date of the election
29held pursuant to subdivision (e). This section shall not prevent the
30authority from taking any and all actions and appropriating and
31expending funds, including, but not limited to, any and all payments
32on bonded or contractual indebtedness, to carry out and complete
33projects for which expenditures of any kind had been made prior
34to the date of the election.

35

begin insert62007.end insert  

(a) Every five years, beginning in the calendar year
36in which the authority has allocated a cumulative total of more
37than one million dollars ($1,000,000) in tax increment revenues,
38including any proceeds of a debt issuance, for the purposes of
39subdivision (c) or Section 62003, the authority shall contract for
40an independent audit to determine compliance with the affordable
P15   1housing set-aside, maintenance and replacement requirements of
2Chapter 1 (commencing with Section 62100) and Chapter 2
3(commencing with Section 62115) of Part 2, including provisions
4to ensure that the requirements are met within each five-year
5period covered by the audit. The audit shall be conducted
6according to guidelines established by the Controller, which shall
7be established on or before December 31, 2021. A copy of the
8completed audit shall be provided to the Controller. The Controller
9shall not be required to review and approve the completed audits.

10(b) Where the audit demonstrates a failure to comply with the
11requirements of Chapter 1 (commencing with Section 62100) and
12Chapter 2 (commencing with Section 62115) of Part 2, the
13authority shall adopt and submit to the Controller, as part of the
14audit, a plan to achieve compliance with those provisions as soon
15as feasible, but in not less than two years following the audit
16findings. The Controller shall review and approve the plan, and
17require the plan to stay in effect until compliance is achieved. The
18Controller shall ensure that the plan includes one or more of the
19following means of achieving compliance:

20(1) The expenditure of an additional 10 percent of gross tax
21increment revenue on increasing, preserving, and improving the
22supply of low-income housing.

23(2) An increase in the production, by an additional 10 percent,
24of housing for very low income households as required by
25paragraph (2) of subdivision (b) of Section 62120.

26(3) The targeting of expenditures pursuant to Section 62100
27exclusively to rental housing affordable to, and occupied by,
28persons of very low and extremely low income.

29(c) If an authority is required to conduct an audit pursuant to
30subdivision (a) in advance of the issuance of the Controller’s
31guidelines, then it shall prepare an updated audit pursuant to the
32Controller’s guidelines on or before January 1, 2023.

33

begin insert62008.end insert  

(a) If an authority fails to provide a copy of the
34completed audit to the Controller as required by paragraph (2) of
35subdivision (c) within 20 days following receipt of a written notice
36of the failure from the Controller, the authority shall forfeit to the
37state:

38(1) Two thousand five hundred dollars ($2,500) in the case of
39an authority with a total revenue, in the prior year, of less than
P16   1one hundred thousand dollars ($100,000), as reported in the
2Controller’s annual financial reports.

3(2) Five thousand five hundred dollars ($5,500) in the case of
4an authority with a total revenue, in the prior year, of at least one
5hundred thousand dollars ($100,000) but less than two hundred
6 fifty thousand dollars ($250,000), as reported in the Controller’s
7annual financial reports.

8(3) Ten thousand dollars ($10,000) in the case of an authority
9with a total revenue, in the prior year, of at least two hundred fifty
10thousand dollars ($250,000), as reported in the Controller’s annual
11financial reports.

12(b) If an authority fails to provide a copy of the completed audit
13to the Controller as required by paragraph (2) of subdivision (c)
14within 20 days after receipt of a written notice pursuant to
15subdivision (a) for two consecutive years, the authority shall forfeit
16an amount that is double the amount of the forfeiture assessed
17pursuant to subdivision (a).

18(c) (1) If an authority fails to provide a copy of the completed
19audit to the Controller as required by paragraph (2) of subdivision
20 (c) within 20 days after receipt of a written notice pursuant to
21subdivision (a) for three or more consecutive years, the authority
22shall forfeit an amount that is triple the amount of the forfeiture
23assessed pursuant to subdivision (a).

24(2) The Controller shall conduct, or cause to be conducted, an
25independent financial audit report.

26(3) The authority shall reimburse the Controller for the cost of
27complying with this subdivision.

28(d) Upon the request of the Controller, the Attorney General
29shall bring an action for the forfeiture in the name of the people
30of the State of California.

31(e) Upon satisfactory showing of good cause, the Controller
32shall waive the forfeiture requirements of this section.

33 

34PART begin insert2. Housingend insert 

33 

Chapter  begin insert1.end insert Housing for Persons of Low and Moderate Income

 

begin insert62100.end insert  

(a) Not less than 25 percent of all taxes that are allocated to the authority pursuant to Section 62006 shall be deposited into a separate Low and Moderate Income Housing Fund pursuant to Section 62101 and used by the authority for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost, as defined by the following sections of the Health and Safety Code: Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families unless the authority makes a finding that combining funding received under this program with other funding for the same purpose shall reduce administrative costs or expedite the construction of affordable housing. If the authority makes such a finding, then (1) an authority may transfer funding from the program adopted pursuant to subdivision (c) of Section 62003 to the housing authority within the territorial jurisdiction of the local jurisdiction that created the authority or to the entity that received the housing assets of the former redevelopment agency pursuant to Section 34176 of the Health and Safety Code, and (2) Section 34176.1 of the Health and Safety Code shall not apply to funds transferred. Funding shall be spent within the project area in which the funds were generated. Any recipient of funds transferred pursuant to this subdivision shall comply with all applicable provisions of this part.

(b) In carrying out the purposes of this section, the authority may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low- and moderate-income persons or families, including the following:

(1) Acquire real property or building sites subject to Section 62112.

(2) (A) Improve real property or building sites with onsite or offsite improvements, but only if both (i) the improvements are part of the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited by the improvements, and are a reasonable and fundamental component of the housing units, and (ii) the authority requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 62101.

(B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the authority shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the authority shall be determined by dividing the number of housing units that are affordable to low- or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project.

(3) Donate real property to private or public persons or entities.

(4) Finance insurance premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are administered by governmental entities or nonprofit organizations to provide housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, including rental properties, emergency shelters, transitional housing, or special residential care facilities.

(5) Construct buildings or structures.

(6) Acquire buildings or structures.

(7) Rehabilitate buildings or structures.

(8) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106 of the Health and Safety Code, very low income households, as defined by Section 50105 of the Health and Safety Code, lower income households, as defined by Section 50079.5 of the Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies.

(9) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges.

(10) Maintain the community’s supply of mobilehomes.

(11) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates.

(c) The authority may use these funds to meet, in whole or in part, the replacement housing provisions in Section 62120. However, this section shall not be construed as limiting in any way the requirements of that section.

(d) The authority may use these funds inside or outside the plan area. The authority may only use these funds outside the plan area upon a resolution of the authority that the use will be of benefit to the plan. The determination by the authority shall be final and conclusive as to the issue of benefit to the plan area. The Legislature finds and declares that the provision of replacement housing pursuant to Section 62120 is always of benefit to a plan. Unless the authority finds, before the plan is adopted, that the provision of low- and moderate-income housing outside the plan area will be of benefit to the plan, the plan area shall include property suitable for low- and moderate-income housing.

(e) (1) (A) An action to compel compliance with the requirement of this section to deposit not less than 25 percent of all taxes that are allocated to the authority pursuant to Section 62005 in the Low and Moderate Income Housing Fund shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in the Low and Moderate Income Housing Fund.

(B) An action to compel compliance with the requirement of this section that money deposited in the Low and Moderate Income Housing Fund be used by the agency for purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds.

(C) An agency found to have deposited less into the Low and Moderate Income Housing Fund than mandated by Section 62101 or to have spent money from the Low and Moderate Income Housing Fund for purposes other than increasing, improving, and preserving the community’s supply of low- and moderate-income housing, as mandated by this section, shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 or may do either of the following:

(i) Petition the court under Section 970.6 for repayment in installments.

(ii) Repay the portion of the judgment due to the Low and Moderate Income Housing Fund in equal installments over a period of five years following the judgment.

(2) Repayment shall not be made from the funds required to be set aside or used for low- and moderate-income housing pursuant to this section.

(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney’s fees if included in the judgment, are due and shall be paid upon entry of judgment or order.

(4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section.

(5) This subdivision applies to actions filed on and after January 1, 2016.

(6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

begin insert62101.end insert  

(a) The funds that are required by Section 62100 or 62103 to be used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing shall be held in a separate Low and Moderate Income Housing Fund until used.

(b) Any interest earned by the Low and Moderate Income Housing Fund and any repayments or other income to the authority for loans, advances, or grants, of any kind from the Low and Moderate Income Housing Fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the Low and Moderate Income Housing Fund.

(c) The moneys in the Low and Moderate Income Housing Fund shall be used to increase, improve, and preserve the supply of low- and moderate-income housing within the territorial jurisdiction of the authority.

(d) It is the intent of the Legislature that the Low and Moderate Income Housing Fund be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The authority shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low- and moderate-income housing.

(e) (1) Planning and general administrative costs which may be paid with moneys from the Low and Moderate Income Housing Fund are those expenses incurred by the authority which are directly related to the programs and activities authorized under subdivision (e) of Section 62100 and are limited to the following:

(A) Costs incurred for salaries, wages, and related costs of the authority’s staff or for services provided through interagency agreements, and agreements with contractors, including usual indirect costs related thereto.

(B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project.

(2) Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project that are authorized under subdivision (e) of Section 62100 and that are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are instead project costs.

(f) (1) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund. Except to the extent that a longer period of time may be required by other provisions of law, the authority shall require that housing units subject to this subdivision shall 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 the following periods of time:

(A) Fifty-five years for rental units. However, the authority may replace rental units with equally affordable and comparable rental units in another location within the community if (i) the replacement units are available for occupancy prior to the displacement of any persons and families of low or moderate income residing in the units to be replaced, and (ii) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund.

(B) Forty-five years for owner-occupied units. However, the authority may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the authority and deposited in the Low and Moderate Income Housing Fund. Only the units originally assisted by the authority shall be counted towards the agency’s obligations under Section 62102.

(C) Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low-income households. However, the authority may permit sales of mutual self-help housing units prior to expiration of the 15-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that (i) protects the agency’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy, and (ii) ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15-year period and prior to 45 years after the date of recording of the covenants or restrictions required pursuant to paragraph (2), the authority recovers, at a minimum, its original principal from the Low and Moderate Income Housing Fund from the proceeds of the sale and deposits those funds into the Low and Moderate Income Housing Fund. The remainder of the excess proceeds of the sale not retained by the seller shall be allocated to the agency and deposited in the Low and Moderate Income Housing Fund. For the purposes of this subparagraph, “mutual self-help housing unit” means an owner-occupied housing unit for which persons and families of very low and low income contribute no fewer than 500 hours of their own labor in individual or group efforts to provide a decent, safe, and sanitary ownership housing unit for themselves, their families, and others authorized to occupy that unit. This subparagraph shall not preclude the authority and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions.

(2) If land on which those dwelling units are located is deleted from the plan area, the authority shall continue to require that those units remain affordable as specified in this subdivision.

(3) The authority shall require the recording in the office of the county recorder of the following documents:

(A) The covenants or restrictions implementing this subdivision for each parcel or unit of real property subject to this subdivision. The authority shall obtain and maintain a copy of the recorded covenants or restrictions for not less than the life of the covenant or restriction.

(B) For all new or substantially rehabilitated units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund, a separate document called “Notice of Affordability Restrictions on Transfer of Property,” set forth in 14-point type or larger. This document shall contain all of the following information:

(i) A recitation of the affordability covenants or restrictions. If the document recorded under this subparagraph is recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the concurrently recorded document. If the document recorded under this subparagraph is not recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the recorder’s identification number of the document recorded under subparagraph (A).

(ii) The date the covenants or restrictions expire.

(iii) The street address of the property, including, if applicable, the unit number, unless the property is used to confidentially house victims of domestic violence.

(iv) The assessor’s parcel number for the property.

(v) The legal description of the property.

(4) The authority shall require the recording of the document required under subparagraph (B) of paragraph (3) not more than 30 days after the date of recordation of the covenants or restrictions required under subparagraph (A) of paragraph (3).

(5) The county recorder shall index the documents required to be recorded under paragraph (3) by the authority and current owner.

(6) Notwithstanding Section 27383, a county recorder may charge all authorized recording fees to any party, including a public agency, for recording the document specified in subparagraph (B) of paragraph (3).

(7) Notwithstanding any other law, the covenants or restrictions implementing this subdivision shall run with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:

(A) The authority.

(B) The city or county that established the authority.

(C) A resident of a unit subject to this subdivision.

(D) A residents’ association with members who reside in units subject to this subdivision.

(E) A former resident of a unit subject to this subdivision who last resided in that unit.

(F) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this subdivision, if the applicant conforms to all of the following:

(i) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

(ii) Is able and willing to occupy that particular unit.

(iii) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this subdivision.

(G) A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093, and who is able and willing to occupy a unit subject to this subdivision.

(8) A dwelling unit shall not be counted as satisfying the affordable housing requirements of this part, unless covenants for that dwelling unit are recorded in compliance with subparagraph (A) of paragraph (3).

(9) Failure to comply with the requirements of subparagraph (B) of paragraph (3) shall not invalidate any covenants or restrictions recorded pursuant to subparagraph (A) of paragraph (3).

(g) “Housing,” as used in this section, includes residential hotels, as defined in subdivision (k) of Section 37912 of the Health and Safety Code. The definitions of “lower income households,” “very low income households,” and “extremely low income households” in Sections 50079.5, 50105, and 50106 of the Health and Safety Code shall apply to this section. “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration.

(h) “Increasing, improving, and preserving the community’s supply of low- and moderate-income housing,” as used in this section and in Section 62100, includes the preservation of rental housing units assisted by federal, state, or local government on the condition that units remain affordable to, and occupied by, low- and moderate-income households, including extremely low and very low income households, for the longest feasible time, but not less than 55 years, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the authority shall require that the units remain affordable to, and occupied by, persons and families of low- and moderate-income and extremely low and very low income households for the longest feasible time, but not less than 55 years. However, the authority may replace rental units with equally affordable and comparable rental units in another location within the community if (1) the replacement units in another location are available for occupancy prior to the displacement of any persons and families of low or moderate income residing in the units to be replaced and (2) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund.

(i) Funds from the Low and Moderate Income Housing Fund shall not be used to the extent that other reasonable means of private or commercial financing of the new or substantially rehabilitated units at the same level of affordability and quantity are reasonably available to the agency or to the owner of the units. Prior to the expenditure of funds from the Low and Moderate Income Housing Fund for new or substantially rehabilitated housing units, where those funds will exceed 50 percent of the cost of producing the units, the authority shall find, based on substantial evidence, that the use of the funds is necessary because the authority or owner of the units has made a good faith attempt but has been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity.

begin insert62102.end insert  

(a) Except as specified in subdivision (d), each authority shall expend over each 10-year period of the community revitalization plan the moneys in the Low and Moderate Income Housing Fund to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed that each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584. In determining compliance with this obligation, the authority may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law.

(b) Each authority shall expend over the duration of each implementation plan, the moneys in the Low and Moderate Income Housing Fund to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under 65 years of age bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau.

(c) An authority that has deposited in the Low and Moderate Income Housing Fund over the first five years of the period of an implementation plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section.

(d) For the purposes of this section, “locally controlled” means government assistance where the city or county that created the authority or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, the Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, the Home Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges.

begin insert62103.end insert  

Every community revitalization plan shall contain a provision that whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project the authority shall, within two years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs, as defined by Section 50052.5 of the Health and Safety Code, within the territorial jurisdiction of the authority, in accordance with all of the provisions of Sections 62120 and 62120.5.

begin insert62104.end insert  

Programs to assist or develop low- and moderate-income housing pursuant to this part shall be entitled to priority consideration for assistance in housing programs administered by the California Housing Finance Agency, the Department of Housing and Community Development, and other state agencies and departments, if those agencies or departments determine that the housing is otherwise eligible for assistance under a particular program.

begin insert62105.end insert  

The same notice requirements as specified in Section 65863.10 shall apply to multifamily rental housing that receives financial assistance pursuant to Sections 62100 and 62101.

begin insert62106.end insert  

Notwithstanding Sections 62100 and 62101, assistance provided by an authority to preserve the availability to lower income households of affordable housing units which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates may be credited and offset against an agency’s obligations under Section 62100.

begin insert62107.end insert  

(a) Except as otherwise provided in this subdivision, not later than six months following the close of any fiscal year of an authority in which excess surplus accumulates in the authority’s Low and Moderate Income Housing Fund, the authority may adopt a plan pursuant to this section for expenditure of all moneys in the Low and Moderate Income Housing Fund within five years from the end of that fiscal year. The plan may be general and need not be site-specific, but shall include objectives respecting the number and type of housing to be assisted, identification of the entities, which will administer the plan, alternative means of ensuring the affordability of housing units for the longest feasible time, as specified in subdivision (e) of Section 62101 the income groups to be assisted, and a schedule by fiscal year for expenditure of the excess surplus.

(b) The authority shall separately account for each excess surplus either as part of or in addition to a Low and Moderate Income Housing Fund.

(c) If the authority develops a plan for expenditure of excess surplus or other moneys in the Low and Moderate Income Housing Fund, a copy of that plan and any amendments to that plan shall be included in the authority’s annual report pursuant to Section 62006.

begin insert62108.end insert  

(a) (1) Upon failure of the authority to expend or encumber excess surplus in the Low and Moderate Income Housing Fund within one year from the date the moneys become excess surplus, as defined in paragraph (1) of subdivision (g), the authority shall do either of the following:

(A) Disburse voluntarily its excess surplus to the county housing authority or to another public agency exercising housing development powers within the territorial jurisdiction of the agency in accordance with subdivision (b).

(B) Expend or encumber its excess surplus within two additional years.

(2) If an authority, after three years has elapsed from the date that the moneys become excess surplus, has not expended or encumbered its excess surplus, the authority shall be subject to sanctions pursuant to subdivision (e), until the authority has expended or encumbered its excess surplus plus an additional amount, equal to 50 percent of the amount of the excess surplus that remains at the end of the three-year period. The additional expenditure shall not be from the authority’s Low and Moderate Income Housing Fund, but shall be used in a manner that meets all requirements for expenditures from that fund.

(b) The housing authority or other public agency to which the money is transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the authority under this part, and for that purpose may exercise all of the powers of a housing authority under Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code to an extent not inconsistent with these limitations.

(c) Notwithstanding Section 34209 of the Health and Safety Code or any other law, for the purpose of accepting a transfer of, and using, moneys pursuant to this section, the housing authority of a county or other public agency may exercise its powers within the territorial jurisdiction of an authority located in that county.

(d) The amount of excess surplus that shall be transferred to the housing authority or other public agency because of a failure of the authority to expend or encumber excess surplus within one year shall be the amount of the excess surplus that is not so expended or encumbered. The housing authority or other public agency to which the moneys are transferred shall expend or encumber these moneys for authorized purposes not later than three years after the date these moneys were transferred from the Low and Moderate Income Housing Fund.

(e) (1) Until a time when the authority has expended or encumbered excess surplus moneys pursuant to subdivision (a), the authority shall be prohibited from encumbering any funds or expending any moneys derived from any source, except that the authority may encumber funds and expend moneys to pay the following obligations, if any, that were incurred by the authority prior to three years from the date the moneys became excess surplus:

(A) Bonds, notes, interim certificates, debentures, or other obligations issued by an authority, whether funded, refunded, assumed, or otherwise, pursuant to subdivision (f) of Section 62003.

(B) Loans or moneys advanced to the authority, including, but not limited to, loans from federal, state, or local agencies, or a private entity.

(C) Contractual obligations which, if breached, could subject the authority to damages or other liabilities or remedies.

(D) Indebtedness incurred pursuant to Section 62100 or 62104.

(E) An amount, to be expended for the operation and administration of the authority, that may not exceed 75 percent of the amount spent for those purposes in the preceding fiscal year.

(2) This subdivision shall not be construed to prohibit the expenditure of excess surplus funds or other funds to meet the requirement in paragraph (2) of subdivision (a) that the agency spend or encumber excess surplus funds, plus an amount equal to 50 percent of excess surplus, prior to spending or encumbering funds for any other purpose.

(f) This section shall not be construed to limit any authority an authority may have under other provisions of this part to contract with a housing authority for increasing or improving the community’s supply of low- and moderate-income housing.

(g) For purposes of this section:

(1) “Excess surplus” means any unexpended and unencumbered amount in an authority’s Low and Moderate Income Housing Fund that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the Low and Moderate Income Housing Fund pursuant to Sections 62100 and 62104 during the authority’s preceding four fiscal years. The first fiscal year to be included in this computation is the 2016-17 fiscal year, and the first date on which an excess surplus may exist is July 1, 2021.

(2) Moneys shall be deemed encumbered if committed pursuant to a legally enforceable contract or agreement for expenditure for purposes specified in Sections 62100 and 62101.

(3) (A) For purposes of determining whether an excess surplus exists, it is the intent of the Legislature to give credit to authorities which convey land for less than fair market value, on which low- and moderate-income housing is built or is to be built if at least 49 percent of the units developed on the land are available at an affordable housing cost to lower income households for at least the time specified in subdivision (e) of Section 62101, and otherwise comply with all of the provisions of this division applicable to expenditures of moneys from a low- and moderate-income housing fund established pursuant to Section 62101. Therefore, for the sole purpose of determining the amount, if any, of an excess surplus, an authority may make the following calculation: if an authority sells, leases, or grants land acquired with moneys from the Low and Moderate Income Housing Fund, established pursuant to Section 62101, for an amount which is below fair market value, and if at least 49 percent of the units constructed or rehabilitated on the land are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code, the difference between the fair market value of the land and the amount the authority receives may be subtracted from the amount of moneys in an agency’s Low and Moderate Income Housing Fund.

(B) If taxes that are deposited in the Low and Moderate Income Housing Fund are used as security for bonds or other indebtedness, the proceeds of the bonds or other indebtedness, and income and expenditures related to those proceeds, shall not be counted in determining whether an excess surplus exists. The unspent portion of the proceeds of bonds or other indebtedness, and income related thereto, shall be excluded from the calculation of the unexpended and unencumbered amount in the Low and Moderate Income Housing Fund when determining whether an excess surplus exists.

(C) This subdivision shall not be construed to restrict the authority of an authority provided in any other provision of this part to expend funds from the Low and Moderate Income Housing Fund.

(D) The Department of Housing and Community Development shall develop and periodically revise the methodology to be used in the calculation of excess surplus as required by this section. The director shall appoint an advisory committee to advise in the development of this methodology. The advisory committee shall include department staff, affordable housing advocates, and representatives of the League of California Cities, the California Society of Certified Public Accountants, the Controller, and any other authorities or persons interested in the field that the director deems necessary and appropriate.

(h) Communities in which an agency has disbursed excess surplus funds pursuant to this section shall not disapprove a low- or moderate-income housing project funded in whole or in part by the excess surplus funds if the project is consistent with applicable building codes and the land use designation specified in any element of the general plan as it existed on the date the application was deemed complete. A local agency may require compliance with local development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in housing elements of the community pursuant to subdivision (b) of Section 65583.

begin insert62109.end insert  

(a) Notwithstanding Sections 50079.5, 50093, and 50105 of the Health and Safety Code, for purposes of providing assistance to mortgagors participating in a homeownership residential mortgage revenue bond program pursuant to Section 33750 of the Health and Safety Code, or a home financing program pursuant to Section 52020 of the Health and Safety Code, or a California Housing Finance Agency home financing program, “area median income” means the highest of the following:

(1) Statewide median household income.

(2) Countywide median household income.

(3) Median family income for the area, as determined by the United States Department of Housing and Urban Development with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area.

Nothing in Section 50093 of the Health and Safety Code shall prevent the agency from adopting separate family size adjustment factors or programmatic definitions of income to qualify households, persons, and families for the programs of the agency.

(b) To the extent that any portion of the Low and Moderate Income Housing Fund is expended to provide assistance to mortgagors participating in programs whose income exceeds that of persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, the authority shall, within two years, expend or enter into a legally enforceable agreement to expend twice that sum exclusively to increase and improve the community’s supply of housing available at an affordable housing cost, as defined in Section 50052.5, to lower income households, as defined in Section 50079.5 of the Health and Safety Code, of which at least 50 percent shall be very low income households, as defined in Section 50105 of the Health and Safety Code.

(c) In addition to the requirements of subdivision (c) of Section 33413 of the Health and Safety Code, the authority shall require that the lower and very low income dwelling units developed pursuant to this subdivision remain available at an affordable housing cost to lower and very low income households for at least 30 years, except as to dwelling units developed with the assistance of federal or state subsidy programs which terminate in a shorter period and cannot be extended or renewed.

(d) The authority shall include within the report required by Section 62008 information with respect to compliance by the agency with the requirements of this subdivision.

begin insert62110.end insert  

The covenants or restrictions imposed by the authority pursuant to subdivision (f) of Section 62101 may be subordinated under any of the following alternatives:

(a) To a lien, encumbrance, or regulatory agreement under a federal or state program when a federal or state agency is providing financing, refinancing, or other assistance to the housing units or parcels, if the federal or state agency refuses to consent to the seniority of the agency’s covenant or restriction on the basis that it is required to maintain its lien, encumbrance, or regulatory agreement or restrictions due to statutory or regulatory requirements, adopted or approved policies, or other guidelines pertaining to the financing, refinancing, or other assistance of the housing units or parcels.

(b) To a lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of owner-occupied units or parcels where the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available.

(c) To an existing lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of rental units, where the agency’s funds are utilized for rehabilitation of the rental units.

(d) To a lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of rental units or parcels where the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available, and where the agency obtains written commitments reasonably designed to protect the agency’s investment in the event of default, including, but not limited to, any of the following:

(1) A right of the authority to cure a default on the loan.

(2) A right of the authority to negotiate with the lender after notice of default from the lender.

(3) An agreement that if prior to foreclosure of the loan, the authority takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to the agency.

(4) A right of the authority to purchase property from the owner at any time after a default on the loan.

begin insert62111.end insert  

Subsidies provided pursuant to subdivision (e) of Section 62100 may include payment of a portion of the principal and interest on bonds issued by a public agency to finance housing for persons and families specified in that paragraph if the authority ensures by contract that the benefit of the subsidy will be passed on to those persons and families in the form of lower housing costs.

begin insert62112.end insert  

For each interest in real property acquired using moneys from the Low and Moderate Income Housing Fund, the authority shall, within five years from the date it first acquires the property interest for the development of housing affordable to persons and families of low and moderate income, initiate activities consistent with the development of the property for that purpose. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the city or county that created the authority may, by resolution, extend the period during which the authority may retain the property for one additional period not to exceed five years. The resolution of extension shall affirm the intention of the city or county that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, or if the authority does not comply with this requirement, the property shall be sold and the moneys from the sale, less reimbursement to the agency for the cost of the sale, shall be deposited in the agency's Low and Moderate Income Housing Fund.

33 

Chapter  begin insert2.end insert Replacement and Location

 

begin insert62115.end insert  

The authority shall prepare a feasible method or plan for relocation of all of the following:

(a) Families and persons to be temporarily or permanently displaced from housing facilities in the plan area.

(b) Nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the project area.

begin insert62116.end insert  

The city, county, or city and county that created the authority shall insure that the method or plan of the authority for the relocation of families or single persons to be displaced by a revitalization project shall provide that no persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement. The housing units shall be suitable to the needs of those displaced persons or families and must be decent, safe, sanitary, and otherwise standard dwellings. The authority shall not displace the person or family until the housing units are available and ready for occupancy.

begin insert62117.end insert  

Whenever all or any portion of a revitalization project is developed with low- or moderate-income housing units and whenever any low- or moderate-income housing units are developed with any authority assistance or pursuant to Section 62120, the authority shall require by contract or other appropriate means that the housing be made available for rent or purchase to the persons and families of low or moderate income displaced by the revitalization project. Those persons and families shall be given priority in renting or buying that housing. However, failure to give that priority shall not affect the validity of title to real property. The authority shall keep a list of persons and families of low and moderate income displaced by the revitalization project who are to be given priority, and may establish reasonable rules for determining the order or priority on the list.

begin insert62118.end insert  

If insufficient suitable housing units are available in the community for low- and moderate-income persons and families to be displaced from a community revitalization area, the city council or board of supervisors that created the authority shall assure that sufficient land be made available for suitable housing for rental or purchase by low- and moderate-income persons and families. If insufficient suitable housing units are available in the community for use by persons and families of low and moderate income displaced by the revitalization project, the authority may, to the extent of that deficiency, direct or cause the development, rehabilitation, or construction of housing units within the community, both inside and outside of revitalization project areas.

begin insert62119.end insert  

Permanent housing facilities shall be made available within two years from the time occupants are displaced and that pending the development of such facilities there will be available to such displaced occupants adequate temporary housing facilities at rents comparable to those in the community at the time of their displacement.

begin insert62120.end insert  

(a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project that is subject to a written agreement with the authority or where financial assistance has been provided by the authority, the authority shall, within two years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. One hundred percent of the replacement dwelling units shall be available at an affordable housing cost to persons in the same or a lower income category (low, very low, or moderate), as the persons displaced from those destroyed or removed units.

(b) (1) Prior to the time limit on the effectiveness of the community revitalization plan established pursuant to subdivision (f) of Section 62004 at least 30 percent of all new and substantially rehabilitated dwelling units developed by an authority shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households.

(2) (A) (i) Prior to the time limit on the effectiveness of the revitalization plan established pursuant to subdivision (f) of Section 62003 at least 15 percent of all new and substantially rehabilitated dwelling units developed within a plan area under the jurisdiction of an authority by public or private entities or persons other than the agency shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households.

(ii) To satisfy this paragraph, in whole or in part, the authority may cause, by regulation or agreement, to be available, at an affordable housing cost, to, and occupied by, persons and families of low or moderate income or to very low income households, as applicable, two units outside a project area for each unit that otherwise would have been required to be available inside a project area.

(iii) “Substantially rehabilitated dwelling units” means all units substantially rehabilitated, with authority assistance.

(iv) As used in this paragraph and in paragraph (1), “substantial rehabilitation” means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value.

(v) To satisfy this paragraph, the authority may aggregate new or substantially rehabilitated dwelling units in one or more project areas, if the authority finds, based on substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic, or economic segregation.

(B) To satisfy the requirements of paragraph (1) and subparagraph (A), the authority may purchase, or otherwise acquire or cause by regulation or agreement the purchase or other acquisition of, long-term affordability covenants on multifamily units that restrict the cost of renting or purchasing those units that either: (i) are not presently available at affordable housing cost to persons and families of low- or very low income households, as applicable; or (ii) are units that are presently available at affordable housing cost to this same group of persons or families, but are units that the authority finds, based upon substantial evidence, after a public hearing, cannot reasonably be expected to remain affordable to this same group of persons or families.

(C) To satisfy the requirements of paragraph (1) and subparagraph (A), the long-term affordability covenants purchased or otherwise acquired pursuant to subparagraph (B) shall be required to be maintained on dwelling units at affordable housing cost to, and occupied by, persons and families of low or very low income, for the longest feasible time but not less than 55 years for rental units and 45 years for owner-occupied units. Not more than 50 percent of the units made available pursuant to paragraph (1) and subparagraph (A) may be assisted through the purchase or acquisition of long-term affordability covenants pursuant to subparagraph (B). Not less than 50 percent of the units made available through the purchase or acquisition of long-term affordability covenants pursuant to subparagraph (B) shall be available at affordable housing cost to, and occupied by, very low income households.

(D) To satisfy the requirements of paragraph (1) and subparagraph (A), each mutual self-help housing unit, as defined in subparagraph (C) of paragraph (1) of subdivision (f) of Section 62101, that is subject to a 15-year deed restriction shall count as one-third of a unit.

(3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a). The requirements of this subdivision shall apply, in the aggregate, to housing made available pursuant to paragraphs (1) and (2), respectively, and not to each individual case of rehabilitation, development, or construction of dwelling units, unless an agency determines otherwise.

(4) Each authority, as part of the implementation plan required by Section 62003, shall adopt a plan to comply with the requirements of this subdivision. The plan shall be consistent with, and may be included within, the community’s housing element. The plan shall be reviewed and, if necessary, amended at least in conjunction with either the housing element cycle or the plan implementation cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. If the requirements of this subdivision are not met by the end of each 10-year period, the agency shall meet these goals on an annual basis until the requirements for the 10-year period are met. If the agency has exceeded the requirements within the 10-year period, the agency may count the units that exceed the requirement in order to meet the requirements during the next 10-year period.

(c) (1) The authority shall require that the aggregate number of replacement dwelling units and other dwelling units rehabilitated, developed, constructed, or price restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to, and occupied by, persons and families of low-income, moderate-income, and very low income households, respectively, for the longest feasible time, but for not less than 55 years for rental units, 45 years for home ownership units, and 15 years for mutual self-help housing units, as defined in subparagraph (C) of paragraph (1) of subdivision (f) of Section 62101, except as set forth in paragraph (2). Nothing in this paragraph precludes the agency and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions.

(2) Notwithstanding paragraph (1), the authority may permit sales of owner-occupied units prior to the expiration of the 45-year period, and mutual self-help housing units prior to the expiration of the 15-year period, established by the agency for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds, based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency, and deposited into the Low and Moderate Income Housing Fund. The agency shall, within three years from the date of sale pursuant to this paragraph of each home ownership or mutual self-help housing unit subject to a 45-year deed restriction, and every third mutual self-help housing unit subject to a 15-year deed restriction, expend funds to make affordable an equal number of units at the same or lowest income level as the unit or units sold pursuant to this paragraph, for a period not less than the duration of the original deed restrictions. Only the units originally assisted by the agency shall be counted towards the authority’s obligations under Section 62120.

(3) The requirements of this section shall be made enforceable in the same manner as provided in paragraph (7) of subdivision (f) of Section 62101.

(4) If land on which the dwelling units required by this section are located is deleted from the plan area, the agency shall continue to require that those units remain affordable as specified in this subdivision.

(5) For each unit counted towards the requirements of subdivisions (a) and (b), the authority shall require the recording in the office of the county recorder of covenants or restrictions that ensure compliance with this subdivision and shall comply with the requirements of paragraphs (3) and (4) of subdivision (f) of Section 62101.

(d) Except as otherwise authorized by law, this section does not authorize an authority to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development.

(e) Notwithstanding subdivision (a), the authority may replace destroy or remove dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria:

(1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom.

(2) The replacement units are affordable to, and occupied by, the same income level of households as the destroyed or removed units.

(f) “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration.

begin insert62120.5.end insert  

Not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low- and moderate-income housing market, the authority shall adopt by resolution a replacement housing plan. For a reasonable time prior to adopting a replacement housing plan by resolution, the authority shall make available a draft of the proposed replacement housing plan for review and comment by property owners and residents within the plan area, any persons who have requested notice of that replacement housing plan, other public agencies, and the general public.

The replacement housing plan shall include: (1) the general location of housing to be rehabilitated, developed, or constructed pursuant to Section 62120; (2) an adequate means of financing such as rehabilitation, development, or construction; (3) a finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained; (4) the number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation; and (5) the timetable for meeting the plan’s relocation, rehabilitation, and replacement housing objectives. A dwelling unit whose replacement is required by Section 62120 but for which no replacement housing plan has been prepared, shall not be destroyed or removed from the low- and moderate-income housing market until the agency has by resolution adopted a replacement housing plan.

Nothing in this section shall prevent an authority from destroying or removing from the low- and moderate-income housing market a dwelling unit which the authority owns and which is an immediate danger to health and safety. The authority shall, as soon as practicable, adopt by resolution a replacement housing plan with respect to that dwelling unit.

begin insert62120.7.end insert  

An authority causing the rehabilitation, development, or construction of replacement dwelling units, other than single-family residences, pursuant to Section 62120, or pursuant to a replacement housing plan as required by Section 62120.5, or pursuant to provisions of a revitalization plan required by Section 62103, primarily for persons of low income, as defined in Section 50093 of the Health and Safety Code, shall give preference to those developments that are proposed to be organized as limited-equity housing cooperatives, when so requested as part of the public review, provided the project is achievable in an efficient and timely manner.

The limited-equity housing cooperatives shall, in addition to the provisions of Section 817 of the Civil Code, be organized so that the consideration paid for memberships or shares by the first occupants following construction or acquisition by the corporation, including the principal amount of obligations incurred to finance the share or membership purchase, does not exceed 3 percent of the development cost or acquisition cost, or of the fair market value appraisal by the permanent lender, whichever is greater.

begin insert62121.end insert  

An authority shall provide relocation assistance and shall make all of the payments required by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, including the making of those payments financed by the federal government.

This section shall not be construed to limit any other authority which an authority may have to make other relocation assistance payments, or to make any relocation assistance payment in an amount which exceeds the maximum amount for that payment authorized by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.

begin insert62122.end insert  

In order to facilitate the rehousing of families and single persons displaced by any governmental action, an authority, at the request of the city council or board of supervisors that created the authority, may dispose of the real property acquired under the provisions of subdivision (b) of section 62201, by sale or long-term lease, for use as, or development of, housing for those displaced persons.

begin insert62123.end insert  

(a) An authority shall monitor, on an ongoing basis, any housing affordable to persons and families of low or moderate income developed or otherwise made available pursuant to any provisions of this part. As part of this monitoring, an authority shall require owners or managers of the housing to submit an annual report to the authority. The annual reports shall include for each rental unit the rental rate and the income and family size of the occupants, and for each owner-occupied unit whether there was a change in ownership from the prior year and, if so, the income and family size of the new owners. The income information required by this section shall be supplied by the tenant in a certified statement on a form provided by the agency.

(b) The data specified in subdivision (a) shall be obtained by the authority from owners and managers of the housing specified therein and current data shall be included in any reports required by law to be submitted to the Department of Housing and Community Development or the Controller. The information on income and family size that is required to be reported by the owner or manager shall be supplied by the tenant and shall be the only information on income or family size that the owner or manager shall be required to submit on his or her annual report to the agency.

(c) (1) The authority shall compile and maintain a database of existing, new, and substantially rehabilitated, housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund, or otherwise counted towards the requirements of subdivision (a) or (b) of Section 62120. The database shall be made available to the public on the Internet and updated on an annual basis and shall include the date the database was last updated. The database shall require all of the following information for each owner-occupied unit or rental unit, or for each group of units, if more than one unit is subject to the same covenant:

(A) The street address and the assessor’s parcel number of the property.

(B) The size of each unit, measured by the number of bedrooms.

(C) The year in which the construction or substantial rehabilitation of the unit was completed.

(D) The date of recordation and document number of the affordability covenants or restrictions required under subdivision (f) of Section 33334.3 of the Health and Safety Code.

(E) The date on which the covenants or restrictions expire.

(F) For owner-occupied units that have changed ownership during the reporting year, as described in subdivision (a), the date and document number of the new affordability covenants or other documents recorded to assure that the affordability restriction is enforceable and continues to run with the land.

(G) Whether occupancy in the unit or units is restricted to any special population, including senior citizens.

(2) Notwithstanding subparagraphs (A) and (D) of paragraph (1), the database shall omit any property used to confidentially house victims of domestic violence.

(3) Upon establishment of a database under this section, the authority shall provide reasonable notice to the community regarding the existence of the database.

(d) The authority shall adequately fund its monitoring activities as needed to insure compliance of applicable laws and agreements in relation to affordable units. For purposes of defraying the cost of complying with the requirements of this section and the changes in reporting requirements enacted by the act enacting this section, an authority may establish and impose fees upon owners of properties monitored pursuant to this section.

33 

34PART begin insert3.end insert  Property Acquisition

 

begin insert62200.end insert  

“Real property” means any of the following:

(a) Land, including land under water and waterfront property.

(b) Buildings, structures, fixtures, and improvements on the land.

(c) Any property appurtenant to or used in connection with the land.

(d) Every estate, interest, privilege, easement, franchise, and right in land, including rights-of-way, terms for years, and liens, charges, or encumbrances by way of judgment, mortgage, or otherwise and the indebtedness secured by those liens.

begin insert62201.end insert  

Within the plan area or for purposes of revitalization an authority may:

(a) Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the authority. An authority shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the authority acquires or purchases real property.

(b) Accept, at the request of the legislative body of the community, a conveyance of real property (located either within or outside the plan area) owned by a public entity and declared surplus by the public entity, or owned by a private entity. The authority may dispose of that property to private persons or to public or private entities, by sale or long-term lease for development. All or any part of the funds derived from the sale or lease of that property may, at the discretion of the legislative body of the community, be paid to the community, or to the public entity from which any that property was acquired.

(c) Sell, lease, grant, or donate real property owned or acquired by the agency in a survey area to a housing authority or to any public agency for public housing projects.

(d) Offer for resale property acquired by an authority for rehabilitation and resale within one year after completion of rehabilitation. Properties held by the authority in excess of one-year period shall be listed in the authority’s annual report with information conveying the reasons that property remains unsold and indicating plans for its disposition.

(e) Acquire real property by eminent domain, provided that authority is exercised within 12 years from the adoption of the plan.

(1) Every plan adopted by an authority which contemplates property owner participation in the revitalization of the area shall contain alternative provisions for revitalization of the property if the owners fail to participate in the revitalization as agreed. Prior to the adoption of a plan, each property owner whose property would be subject to acquisition by purchase or condemnation under the plan shall be sent a statement in nontechnical language and in a clear and coherent manner using words with common and everyday meaning to that effect attached to the notice of the hearing. Alternatively, a list or map of all properties which would be subject to acquisition by purchase or condemnation under the plan may be mailed to affected property owners with the notices of hearing pursuant to Section 62004.

(2) Without the consent of an owner, an authority shall not acquire any real property on which an existing building is to be continued on its present site and in its present form and use unless that building requires structural alteration, improvement, modernization, or rehabilitation, or the site or lot on which the building is situated requires modification in size, shape, or use, or it is necessary to impose upon that property any of the standards, restrictions, and controls of the plan and the owner fails or refuses to agree to participate in the plan.

(3) Property already devoted to a public use may be acquired by the agency through eminent domain, but property of a public body shall not be acquired without its consent.

(4) An authority shall not acquire from any of its members or officers any property or interest in property except through eminent domain proceedings.

begin insert62202.end insert  

An authority shall not provide any form of direct assistance to:

(a) An automobile dealership that will be or is on a parcel of land which has not previously been developed for urban use.

(b) A development that will be or is on a parcel of land of five acres or more which has not previously been developed for urban use and that will, when developed, generate sales or use tax pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code, unless the principal permitted use of the development is office, hotel, manufacturing, or industrial. For the purposes of this subdivision, a parcel shall include land on an adjacent or nearby parcel on which a use exists that is necessary for the legal development of the parcel.

(c) A development or business, either directly or indirectly, for the acquisition, construction, improvement, rehabilitation, or replacement of property that is or would be used for gambling or gaming of any kind whatsoever, including, but not limited to, casinos, gaming clubs, bingo operations, or any facility wherein banked or percentage games, any form of gambling device, or lotteries, other than the California State Lottery, are or will be played.

(d) The prohibition in subdivision (c) is not intended to prohibit an authority from acquiring property on or in which an existing gambling enterprise is located, for the purpose of selling or leasing the property for uses other than gambling, provided that the agency acquires the property for fair market value.

(e) This section shall not be construed to apply to an authority’s assistance in the construction of public improvements that serve all or a portion of a project area and that are not required to be constructed as a condition of approval of a development described in subdivision (a), (b), or (c), or to prohibit assistance in the construction of public improvements that are being constructed for a development that is not described in subdivision (a), (b), or (c).

begin insert62203.end insert  

(a) Any covenants, conditions, or restrictions existing on any real property within a plan area prior to the time the authority acquires title to that property, which covenants, conditions, or restrictions restrict or purport to restrict the use of, or building upon, that real property, shall be void and unenforceable as to the authority and any other subsequent owners, tenants, lessees, easement holders, mortgagees, trustees, beneficiaries under a deed of trust, or any other persons or entities acquiring an interest in that real property from that time as title to the real property is acquired by an authority whether acquisition is by gift, purchase, eminent domain, or otherwise.

(b) Thirty days prior to the acquisition of real property other than by eminent domain, the authority shall provide notice of that acquisition and the provisions of this section to holders of interests which would be made void and unenforceable pursuant to this section, as follows:

(1) The authority shall publish notice once in a newspaper of general circulation in the community in which the agency is functioning.

(2) The authority shall mail notice to holders of those interests if those holders appear of record 60 days prior to the date of acquisition.

The authority may accept any release by written instrument from the holder of any interest or may commence action to acquire that interest after the date of acquisition of the real property.

(c) This section shall not apply to covenants, conditions, or restrictions imposed by an authority pursuant to a plan. This section also shall not apply to covenants, conditions, or restrictions where an authority in writing expressly acquires or holds property subject to those covenants, conditions, or restrictions.

This section shall not limit or preclude any rights of reversion of owners, assignees, or beneficiaries of those covenants, conditions, or restrictions limiting the use of land in gifts of land to cities, counties, or other governmental entities. This section shall not limit or preclude the rights of owners or assignees of any land benefited by any covenants, conditions, or restrictions to recover damages against the agency if under law that owner or assignee has any right to damages. No right to damages shall exist against any purchaser from the authority or his or her successors or assignees, or any other persons or entities.

begin insert62204.end insert  

(a) If an authority has adopted a plan but has not commenced an eminent domain proceeding to acquire any particular parcel of property subject to eminent domain thereunder within three years after the date of adoption of the plan, the owner or owners of the entire fee at any time thereafter may offer in writing to sell the property to the authority for its fair market value. If the authority does not, within 18 months from the date of receipt of the original offer, acquire or institute eminent domain proceedings to acquire the property, the property owner or owners may file an action against the authority in inverse condemnation to recover damages from the authority for any interference with the possession and use of the real property resulting from the plan, provided that this section shall not be construed as establishing or creating a presumption to any right to damages or relief solely by reason of the failure of the authority to acquire the property within the time set forth in this section.

(b) No claim need be presented against an authority under Part 3 (commencing with Section 900) of Division 3.6 of Title 1 as a prerequisite to commencement or maintenance of an action under subdivision (a), but any action shall be commenced within one year and six months after the expiration of the 18 months period.

(c) An authority may commence an eminent domain proceeding or designate the property to be exempt from eminent domain under the plan at any time before the property owner commences an action under this section. If the authority commences an eminent domain proceeding or designates the property to be exempt from acquisition by eminent domain before the property owner commences an action under this section, the property owner may not thereafter bring an action under this section.

(d) After a property owner has commenced an action under this section, the authority may declare the property to be exempt from acquisition by eminent domain and abandon the taking of the property only under the same circumstances and subject to the same conditions and consequences as abandonment of an eminent domain proceeding.

(e) Commencement of an action under this section does not affect any authority an authority may have to commence an eminent domain proceeding, take possession of the property pursuant to Article 3 (commencing with Section 1255.410) of Chapter 6 of Title 7 of the Code of Civil Procedure, or abandon the eminent domain proceeding.

(f) In lieu of bringing an action under subdivision (a) or if the limitations period provided in subdivision (b) has run, the property owner may obtain a writ of mandate to compel the authority, within that time as the court deems appropriate, to declare the property acquisition exempt or to commence an eminent domain proceeding to acquire the property.

(g) A declaration that property is exempt from acquisition by eminent domain shall be by resolution and shall be recordable. It shall exempt the property from eminent domain under the plan, and the authority shall have no power of eminent domain as to the property.

begin insert62205.end insert  

Section 1245.260 of the Code of Civil Procedure shall not apply to any resolution or ordinance adopting, approving, or amending the amendment of plan. Section 1245.260 of the Code of Civil Procedure shall apply to a resolution adopted by an authority pursuant to Section 1245.220 of the Code of Civil Procedure with respect to a particular parcel or parcels of real property.

begin insert62206.end insert  

(a) Authorities shall obligate lessees and purchasers of real property acquired in revitalization projects undertaken or assisted by the authority and owners of property improved as a part of a revitalization project to refrain from restricting the rental, sale, or lease of the property on any basis listed in subdivision (a) or (d) of Section 12955, as those basis are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2. All deeds, leases, or contracts for the sale, lease, sublease, or other transfer of any land in a revitalization project shall contain or be subject to the nondiscrimination or nonsegregation clauses hereafter prescribed.

(b) Notwithstanding subdivision (a), with respect to familial status, subdivision (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in subdivision (a) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51, Section 4760, and Section 6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to subdivision (a).

begin insert62207.end insert  

Express provisions shall be included in all deeds, leases, and contracts that the authority proposes to enter into with respect to the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of any land in a revitalization project in substantially the following form:

(a) (1) In deeds the following language shall appear:


“The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those basis are defined in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 of, and Section 12955.2 of, the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.”


(2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to paragraph (1).

(b) (1) In leases the following language shall appear:


“The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those basis are defined in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 of, and Section 12955.2 of, the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”


(2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to paragraph (1).

(c) In contracts entered into by the agency relating to the sale, transfer, or leasing of land or any interest therein acquired by the agency within any survey area or redevelopment project the foregoing provisions in substantially the forms set forth shall be included and the contracts shall further provide that the foregoing provisions shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument.

begin insert62208.end insert  

(a) The authority shall retain controls and establish restrictions or covenants running with land sold or leased for private use for those periods of time and under those conditions as are provided in the plan. The establishment of those controls is a public purpose under this division.

(b) An authority shall obligate lessees or purchasers of property acquired in a revitalization project to:

(1) Use the property for the purpose designated in the revitalization plans.

(2) Begin the revitalization of the project area within a period of time which the authority fixes as reasonable.

(3) Comply with the covenants, conditions, or restrictions that the authority deems necessary to prevent speculation or excess profittaking in undeveloped land, including right of reverter to the agency. Covenants, conditions, and restrictions imposed by an authority may provide for the reasonable protection of lenders.

(4) Comply with other conditions which the authority deems necessary to carry out the purposes of this part.

end insert
begin delete

SECTION 1.  

It is the intent of the Legislature to enact legislation that would authorize certain local agencies to form a community revitalization authority within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization, and to provide for the financing of these activities by, among other things, the issuance of bonds serviced by tax increment revenues.

end delete


O

    98