Amended in Senate June 16, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 2

Introduced by Assembly Members Alejo and Eduardo Garcia

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

December 1, 2014

An act to add Division 4 (commencing with Section 62000) to Title 6 of the Government Code, 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.

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 begin insert funds end insert 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.

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

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

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

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

SEC. 2.  

Division 4 (commencing with Section 62000) is added
to Title 6 of the Government Code, to read:

 

Division 4.  Community Revitalization and
Investment Authorities

 

PART 1.  General Provisions

 

62000.  

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

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

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

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

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

62001.  

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

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

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

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

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

(B) A successor agency, as defined in subdivision (j) of Section
34171 of the Health and Safety Code, may not participate in an
authority created pursuant to this part, and an entity created
pursuant to this part shall not receive any portion of the property
tax revenues or other moneys distributed pursuant to Section 34188
of the Health and Safety Code.

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

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

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

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

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

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

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

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

(2) Three of the following four conditions:

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

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

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

(D) Deteriorated commercial or residential structures.

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

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

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

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

62002.  

An authority may do all of the following:

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

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

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

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

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

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

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

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

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

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

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

62003.  

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

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

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

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

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

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

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

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

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

(2) Forty-five years for the repayment of all of the authority’s
debts and obligations, and fulfilling all of the authority’s housing
obligations. The plan shall specify that an authority shall dissolve
as a legal entity in no more than 45 years, and no further taxes
shall be allocated to the authority pursuant to Section begin delete 62006. end delete begin insert 62005. end insert
Nothing in this paragraph shall be interpreted to prohibit an
authority from refinancing outstanding debt solely to reduce interest
costs.

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

62004.  

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

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

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

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

(2) Describe the purpose of the plan.

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

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

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

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

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

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

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

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

(i) If begin delete a majority protest does not exist, end delete begin insert less than 25 percent of
the combined number of property owners and residents in the area
who are at least 18 years of age file a protest, end insert the authority may
adopt the plan at the conclusion of the third public hearing by
ordinance. The ordinance adopting the plan shall be subject to
referendum as prescribed by law.

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

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

62005.  

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

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

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

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

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

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

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

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

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

(d) At any time prior to or after adoption of the plan, any city,
county, or special district, other than a school entity as defined in
subdivision (n) of Section 95 of the Revenue and Taxation Code
or a successor agency as defined in subdivision (j) of Section
34171, that receives ad valorem property taxes from property
located within an area may adopt a resolution directing the county
auditor-controller to allocate its share of tax increment funds within
the area covered by the plan according to subdivision (a) to the
authority. The resolution adopted pursuant to this subdivision may
direct the county auditor-controller to allocate less than the full
amount of the tax increment, establish a maximum amount of time
in years that the allocation takes place, or limit the use of the funds
by the authority for specific purposes or programs. A resolution
adopted pursuant to this subdivision may be repealed and be of no
further effect by giving the county auditor-controller 60 days’
notice; provided, however, that the county auditor-controller shall
continue to allocate to the authority the taxing entity’s share of ad
valorem property taxes that have been pledged to the repayment
of debt issued by the authority until the debt has been fully repaid.
Prior to adopting a resolution pursuant to this begin delete subdivision end delete
begin insert subdivision, end insert a city, county, or special district shall approve a
memorandum of understanding with the authority governing the
authority’s use of tax increment funds for administrative and
overhead expenses pursuant to subdivision (g) of Section 62001.

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

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

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

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

62006.  

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

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

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

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

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

(3) The amount of tax increment revenues received.

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

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

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

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

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

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

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

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

62007.  

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

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

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

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

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

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

62008.  

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

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

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

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

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

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

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

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

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

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

 

PART 2.  Housing

 

Chapter  1. Housing for Persons of Low and Moderate
Income

 

62100.  

(a) Not less than 25 percent of all taxes that are
allocated to the authority pursuant to Section begin delete 62006 end delete begin insert 62005 end insert 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.

62101.  

(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.

62102.  

(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.

62103.  

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.

62104.  

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.

62105.  

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.

62106.  

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.

62107.  

(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.

62108.  

(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.

62109.  

(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.

62110.  

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.

62111.  

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.

62112.  

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.

 

Chapter  2. Replacement and Location

 

62115.  

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.

62116.  

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.

62117.  

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.

62118.  

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.

62119.  

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.

62120.  

(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.

62120.5.  

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.

62120.7.  

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.

62121.  

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.

62122.  

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.

62123.  

(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.

 

PART 3.  Property Acquisition

 

62200.  

“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.

62201.  

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 begin insert of end insert 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.

62202.  

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).

62203.  

(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.

62204.  

(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 begin insert the end insert 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.

62205.  

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.

62206.  

(a)  begin delete Authorities end delete begin insert The authority end insert 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).

62207.  

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.

62208.  

(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.