Amended in Senate July 7, 2015

Amended in Senate June 16, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 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 revitalizationbegin insert and investmentend insert 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 funds 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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Certain areas of the state are generally characterized by
4buildings in which it is unsafe or unhealthy for persons to live or
5work, conditions that make the viable use of buildings or lots
6difficult, high business vacancies and lack of employment
7opportunities, and inadequate public improvements, water, or sewer
8utilities. It is the intent of the Legislature to create a planning and
9financing tool to support the revitalization of these communities.

10(b) It is in the interest of the state to support the economic
11revitalization of these communities through tax increment
12financing.

P3    1(c) It is the intent of the Legislature to authorize the creation of
2Community Revitalization and Investment Authorities to invest
3property tax increment revenue to relieve conditions of
4unemployment, reduce high crime rates, repair deteriorated or
5inadequate infrastructure, promote affordable housing, and improve
6conditions leading to increased employment opportunities.

7

SEC. 2.  

Division 4 (commencing with Section 62000) is added
8to Title 6 of the Government Code, to read:

9 

10Division 4.  Community Revitalization and
11Investment Authorities

12

12 

13PART 1.  General Provisions

14

 

15

62000.  

As used in this division, the following terms have the
16following meanings:

17(a) “Authority” means the Community Revitalization and
18Investment Authority created pursuant to this division.

19(b) “Plan” means a community revitalizationbegin insert and investmentend insert
20 plan and shall be deemed to be the plan described in Section 16
21of Article XVI of the California Constitution.

22(c) “Plan area” means territory included within a community
23revitalization and investment area.

24(d) “Revitalization project” means a physical improvement to
25real property funded by the authority.

26

62001.  

(a) A community revitalization and investment
27authority is a public body, corporate and politic, with jurisdiction
28to carry out a community revitalization plan within a community
29revitalization and investment area. The authority shall be deemed
30to be the “agency” described in subdivision (b) of Section 16 of
31Article XVI of the California Constitution for purposes of receiving
32tax increment revenues. The authority shall have only those powers
33and duties specifically set forth in Section 62002.

34(b) (1) An authority may be created in any one of the following
35ways:

36(A) A city, county, or city and county may adopt a resolution
37creating an authority. The composition of the governing board
38shall be comprised as set forth in subdivision (c).

39(B) A city, county, city and county, and special district, as
40special district is defined in subdivision (m) of Section 95 of the
P4    1Revenue and Taxation Code, or any combination thereof, may
2create an authority by entering into a joint powers agreement
3pursuant to Chapter 5 (commencing with Section 6500) of Division
47 of Title 1.

5(2) (A) A school entity, as defined in subdivision (f) of Section
695 of the Revenue and Taxation Code, may not participate in an
7authority created pursuant to this part.

8(B) A successor agency, as defined in subdivision (j) of Section
934171 of the Health and Safety Code, may not participate in an
10authority created pursuant to this part, and an entity created
11pursuant to this part shall not receive any portion of the property
12tax revenues or other moneys distributed pursuant to Section 34188
13of the Health and Safety Code.

14(3) An authority formed by a city or county that created a
15redevelopment agency that was dissolved pursuant to Part 1.85
16(commencing with Section 34170) of Division 24 of the Health
17and Safety Code shall not become effective until the successor
18agency or designated local authority for the former redevelopment
19agency has adopted findings of fact stating all of the following:

20(A) The agency has received a finding of completion from the
21Department of Finance pursuant to Section 34179.7 of the Health
22and Safety Code.

23(B) No former redevelopment agency assets which are the
24subject of litigation against the state, where the city or county or
25its successor agency or designated local authority are a named
26plaintiff, have been or will be used to benefit any efforts of an
27authority formed under this part unless the litigation, has been
28resolved by entry of a final judgment by any court of competent
29jurisdiction and any appeals have been exhausted.

30(C) The agency has complied with all orders of the Controller
31pursuant to Section 34167.5 of the Health and Safety Code.

32(c) (1) The governing board of an authority created pursuant
33to subparagraph (A) of paragraph (1) of subdivision (b) shall be
34appointed by the legislative body of the city, county, or city and
35county that created the authority and shall include three members
36of the legislative body of the city, county, or city and county that
37created the authority and two public members. The appointment
38of the two public members shall be subject to the provisions of
39Section 54974. The two public members shall live or work within
40the community revitalization and investment area.

P5    1(2) The governing body of the authority created pursuant to
2subparagraph (B) of paragraph (1) of subdivision (b) shall be
3comprised of a majority of members from the legislative bodies
4of the public agencies that created the authority and a minimum
5of two public members who live or work within the community
6revitalization and investment area. The majority of the board shall
7appoint the public members to the governing body. The
8appointment of the public members shall be subject to the
9provisions of Section 54974.

10(d) An authority may carry out a community revitalization plan
11within a community revitalization and investment area. Not less
12than 80 percent of the land calculated by census tracts, or census
13block groups, as defined by the United States Census Bureau,
14within the area shall be characterized by both of the following
15conditions:

16(1) An annual median household income that is less than 80
17percent of the statewide annual median income.

18(2) Three of the following four conditions:

19(A) Nonseasonal unemployment that is at least 3 percent higher
20than statewide median unemployment, as defined by the report on
21labor market information published by the Employment
22Development Department in January of the year in which the
23community revitalization plan is prepared.

24(B) Crime rates that are 5 percent higher than the statewide
25median crime rate, as defined by the most recent annual report of
26the Criminal Justice Statistics Center within the Department of
27Justice, when data is available on the California Attorney General’s
28Internet Web site.

29(C) Deteriorated or inadequate infrastructure such as streets,
30sidewalks, water supply, sewer treatment or processing, and parks.

31(D) Deteriorated commercial or residential structures.

32(e) As an alternative to subdivision (d), an authority may also
33carry out a community revitalization plan within a community
34revitalization and investment area established within a former
35military base that is principally characterized by deteriorated or
36inadequate infrastructure and structures. Notwithstanding
37subdivision (c), the governing board of an authority established
38within a former military base shall include a member of the military
39base closure commission as a public member.

P6    1(f) An authority created pursuant to this part shall be a local
2public agency subject to the Ralph M. Brown Act (Chapter 9
3(commencing with Section 54950) of Part 1 of Division 2 of Title
45), the California Public Records Act (Chapter 3.5 (commencing
5with Section 6250) of Division 7 of Title 1), and the Political
6Reform Act of 1974 (Title 9 (commencing with Section 81000)).

7(g) (1) At any time after the authority is authorized to transact
8business and exercise its powers, the legislative body or bodies of
9the local government or governments that created the authority
10may appropriate the amounts the legislative body or bodies deem
11necessary for the administrative expenses and overhead of the
12authority.

13(2) The money appropriated may be paid to the authority as a
14grant to defray the expenses and overhead, or as a loan to be repaid
15upon the terms and conditions as the legislative body may provide.
16If appropriated as a loan, the property ownersbegin insert and residentsend insert within
17the plan area shall be made third-party beneficiaries of the
18repayment of the loan. In addition to the common understanding
19and usual interpretation of the term, “administrative expense”
20includes, but is not limited to, expenses of planning and
21dissemination of information.

22

62002.  

An authority may do all of the following:

23(a) Provide funding to rehabilitate, repair, upgrade, or construct
24infrastructure.

begin delete

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

end delete
begin delete

26 26(c)

end delete

27begin insert(b)end insert Remedy or remove a release of hazardous substances
28pursuant to the Polanco Redevelopment Act (Article 12.5
29(commencing with Section 33459) of Part 1 of Chapter 4 of
30Division 24) or Chapter 6.10 (commencing with Section 25403)
31of Division 20 of the Health and Safety Code.

begin delete

31 32(d)

end delete

33begin insert(c)end insert Provide for seismic retrofits of existing buildings in
34accordance with all applicable laws and regulations.

begin delete

33 35(e)

end delete

36begin insert(d)end insert Acquire and transfer real property in accordance with Part
373 (commencing with Section 62200). The authority shall retain
38controls and establish restrictions or covenants running with the
39land sold or leased for private use for such periods of time and
40under such conditions as are provided in the plan. The
P7    1establishment of such controls is a public purpose under the
2provisions of this part.

begin delete

P7   1 3(f)

end delete

4begin insert(e)end insert Issue bonds in conformity with Article 4.5 (commencing
5with Section 53506) and Article 5 (commencing with Section
653510) of Chapter 3 of Part 1 of Division 2 of Title 5.

begin delete

4 7(g)

end delete

8begin insert(f)end insert Borrow money, receive grants, or accept financial or other
9assistance or investment from the state or the federal government
10or any other public agency or private lending institution for any
11project or within its area of operation, and may comply with any
12conditions of the loan or grant. An authority may qualify for
13funding as a disadvantaged community pursuant to Section 79505.5
14of the Water Code or as defined by Section 56033.5. An authority
15may also enter into an agreement with a qualified community
16development entity, as defined by Section 45D(c) of the Internal
17Revenue Code, to coordinate investments of funds derived from
18the New Markets Tax Credit with those of the authority in instances
19where coordination offers opportunities for greater efficiency of
20investments to improve conditions described in subdivisionsbegin delete (d)end delete
21begin insert (c)end insert andbegin delete (e)end deletebegin insert (d)end insert within the territorial jurisdiction of the authority.

begin delete

18 22(h)

end delete

23begin insert(g)end insert Adopt a community revitalization and investment plan
24pursuant to Sections 62003 and 62004.

begin delete

20 25(i)

end delete

26begin insert(h)end insert Make loans or grants for owners or tenants to improve,
27rehabilitate, or retrofit buildings or structures within the plan area.

begin delete

22 28(j)

end delete

29begin insert(i)end insert Construct foundations, platforms, and other like structural
30forms necessary for the provision or utilization of air rights sites
31for buildings to be used for residential, commercial industrial, or
32other uses contemplated by the revitalization plan.

begin delete

26 33(k)

end delete

34begin insert(j)end insert Provide direct assistance to businesses within the plan area
35in connection with new or existing facilities for industrial or
36manufacturing uses, except as specified in this division.

37

62003.  

An authority shall adopt a community revitalization
38and investment plan that may include a provision for the receipt
39of tax increment funds generated within the area according to
P8    1Section 62005, provided the plan includes each of the following
2elements:

3(a) A statement of the principal goals and objectives of the plan
4including territory to be covered by the plan.

5(b) A description of the deteriorated or inadequate infrastructure
6within the area and a program for construction of adequate
7infrastructure or repair or upgrading of existing infrastructure.

8(c) A housing program thatbegin delete compliesend deletebegin insert describes how the authority
9will complyend insert
with Part 2 (commencing with Section 62100).begin insert The
10program shall include the following information:end insert

begin insert

11(1) The amount available in the Low and Moderate Income
12Housing Fund and the estimated amounts that will be deposited
13in the fund during each of the next five years.

end insert
begin insert

14(2) Estimates of the number of new, rehabilitated, or price
15 restricted residential units to be assisted during each of the five
16years and estimates of the expenditures of moneys from the Low
17and Moderate Income Housing Fund during each of the five years.

end insert
begin insert

18(3) A description of how the program will implement the
19requirements for expenditures of funds in the Low and Moderate
20Income Housing Fund over a 10-year period for various groups
21as required by Chapter 2 (commencing with Section 62115) of
22Part 2.

end insert
begin insert

23(4) Estimates of the number of units, if any, developed by the
24authority for very low, low-, and moderate-income households
25during the next five years.

end insert

26(d) A program to remedy or remove a release of hazardous
27substances, if applicable.

28(e) A program to provide funding for or otherwise facilitate the
29economic revitalization of the area.

30(f) A fiscal analysis setting forth the projected receipt of revenue
31and projected expenses over a five-year planning horizon, including
32the potential issuance of bonds backed by tax increment during
33the term of the plan. Bonds shall be issued in conformity with
34Article 4.5 (commencing with Section 53506) and Article 5
35(commencing with Section 53510) of Chapter 3 of Part 1 of
36Division 2 of Title 5.begin insert An authority shall not spend revenue for any
37purpose that is not identified as part of a program described in
38subdivisions (b), (c), (d), and (e).end insert

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

P9    1(1) Thirty years for establishing loans, advances and
2indebtedness.

3(2) Forty-five years for the repayment of all of the authority’s
4debts and obligations, and fulfilling all of the authority’s housing
5obligations. The plan shall specify that an authority shall dissolve
6as a legal entity in no more than 45 years, and no further taxes
7shall be allocated to the authority pursuant to Section 62005.
8Nothing in this paragraph shall be interpreted to prohibit an
9authority from refinancing outstanding debt solely to reduce interest
10costs.

11(h) A determination that the community revitalization investment
12area complies with the conditions described in subdivision (d) or
13(e) of Section 62001.

14

62004.  

(a) The authority shall consider adoption of the plan
15at three public hearings that shall take place at least 30 days apart.
16At the first public hearing, the authority shall hear all written and
17oral comments but take no action. At the second public hearing,
18the authority shall considerbegin delete allend deletebegin insert any additionalend insert written and oral
19comments and take action to modify or reject the plan. If the plan
20isbegin delete not rejectedend deletebegin insert adoptedend insert at the second public hearing, then the
21authority shall conduct a protest proceeding at the third public
22hearing to consider whether the property owners and residents
23within the plan area wish to present oral or written protests against
24thebegin delete creation of the authority.end deletebegin insert adoption of the plan.end insert

25(b) The draft plan shall be made available to the public and to
26each property owner within the area at a meeting held at least 30
27days prior to the notice given for the first public hearing. The
28purposes of the meeting shall be to allow the staff of the authority
29to present the draft plan, answer questions about the plan, and
30consider comments about the plan.

31(c) begin insert(1)end insertbegin insertend insertNotice of the begin delete first public hearing shall be given by
32publication not less than once a week for four successive weeks
33in a newspaper of general circulation published in the county in
34which the area lies and shall be mailed to each property owner
35within the proposed area of the plan. Notice of the second public
36hearing shall be given by publication not less than 10 days prior
37to the date of the second public hearing in a newspaper of general
38circulation published in the county in which the area lies and shall
39be mailed to each property owner within the proposed area of the
40plan.end delete
begin insert meeting required by subdivision (b) and the public hearings
P10   1required by this subdivision shall be given in accordance with
2subdivision (k).end insert
The notice shall do all of the following, as
3applicable:

begin delete

13 4(1)

end delete

5begin insert(A)end insert Describe specifically the boundaries of the proposed area.

begin delete

14 6(2)

end delete

7begin insert(B)end insert Describe the purpose of the plan.

begin delete

15 8(3)

end delete

9begin insert(C)end insert State the day, hour, and place when and where any and all
10persons having any comments on the proposed plan may appear
11to provide written or oral comments to the authority.

begin delete

18 12(4)

end delete

13begin insert(D)end insert Notice of second public hearing shall include a summary
14of the changes made to the plan as a result of the oral and written
15testimony received at or before the public hearing and shall identify
16a location accessible to the public where the planbegin insert proposedend insert to be
17presentedbegin insert and adoptedend insert at the second public hearing can be
18reviewed.

begin delete

23 19(5)

end delete

20begin insert(E)end insert Notice of the third public hearing to consider any written
21or oral protests shall contain a copy of the final plan adopted
22pursuant to subdivision (a), and shall inform the property owner
23and resident of his or her right to submit an oral or written protest
24before the close of the public hearing. The protest may state that
25the property owner or resident objects to the authority taking action
26to implement the plan.

begin delete

30 27(d)

end delete

28begin insert(2)end insert At the third public hearing, the authority shall consider all
29written and oral protests received prior to the close of the public
30hearing and shall terminate the proceedings or adopt the plan
31subject to confirmation by the voters at an election called for that
32purpose. The authority shall terminate the proceedings if there is
33a majority protest. A majority protest exists if protests have been
34filed representing over 50 percent of the combined number of
35property owners and residents in the area who are at least 18 years
36of age. An election shall be called if between 25 percent and 50
37percent of the combined number of property owners and residents
38in the area who are at least 18 years of age file a protest.

begin delete

P10 1 39(e)

end delete

P11   1begin insert(d)end insert An election required pursuant tobegin insert paragraph (2) ofend insert
2 subdivisionbegin delete (d)end deletebegin insert (c)end insert shall be held within 90 days of the public
3hearing and may be held by mail-in ballot. The authority shall
4adopt, at a duly noticed public hearing, procedures for this election.

begin delete

5 5(f)

end delete

6begin insert(e)end insert If a majority of the property owners and residents vote
7against the plan, then the authority shall not take any further action
8to implement the proposed plan. The authority shall not propose
9a new or revised plan to the affected property owners and residents
10for at least one year following the date of an election in which the
11plan was rejected.

begin delete

11 12(g)

end delete

13begin insert(f)end insert The authority may provide notice of the public hearings to
14tenants of properties within the proposed area of the plan in a
15manner of its choosing.

begin delete

14 16(h)

end delete

17begin insert(g)end insert At the hour set in the notice required by subdivision (a), the
18authority shall consider all written and oral comments.

begin delete

16 19(i)

end delete

20begin insert(h)end insert If less than 25 percent of the combined number of property
21owners and residents in the area who are at least 18 years of age
22file a protest, the authority may adopt the plan at the conclusion
23of the third public hearing by ordinance. The ordinance adopting
24the plan shall be subject to referendum as prescribed by law.

begin delete

22 25(j)

end delete

26begin insert(i)end insert For the purposes of Section 62005, the plan shall be the plan
27adopted pursuant to this section.

begin delete

24 28(k)

end delete

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

begin insert

32(k) The authority shall post notice of each meeting or public
33hearing required by this section in an easily identifiable and
34accessible location on the authority’s Internet Web site and shall
35mail a written notice of the meeting or public hearing to each
36owner of land and each resident at least 10 days prior to the
37meeting or public hearing.

end insert
begin insert

38(1) Notice of the first public hearing shall also be published not
39less than once a week for four successive weeks prior to the first
P12   1public hearing in a newspaper of general circulation published in
2the county in which the area lies.

end insert
begin insert

3(2) Notice of the second public hearing shall also be published
4not less than 10 days prior to the second public hearing in a
5newspaper of general circulation in the county in which the area
6lies.

end insert
begin insert

7(3) Notice of the third public hearing shall also be published
8not less than 10 days prior to the third public hearing in a
9newspaper of general circulation in the county in which the area
10lies.

end insert
11

62005.  

(a) (1) The plan adopted pursuant to Section 62004
12may include a provision that taxes levied and collected upon
13taxable property in the area included within the territory each year
14by or for the benefit the taxing agencies that have adopted a
15resolution pursuant to subdivision (d), shall be divided as follows:

16(A) That portion of the taxes that would have been produced
17by the rate upon which the tax is levied each year by or for each
18of the consenting local agencies upon the total sum of the assessed
19value of the taxable property in the territory as shown upon the
20assessment roll used in connection with the taxation of the property
21by the consenting local agency, last equalized prior to the effective
22date of the certification of completion, and that portion of taxes
23by or for each school entity, shall be allocated to, and when
24collected shall be paid to, the respective consenting local agencies
25and school entities as taxes by or for the consenting local agencies
26and school entities on all property are paid.

27(B) That portion of the levied taxes each year specified in the
28community revitalization plan adopted pursuant to Section 62004
29for each consenting local agency that has agreed to participate
30pursuant a resolution adopted pursuant to subdivision (d), in excess
31of the amount specified in subparagraph (A), shall be allocated to,
32and when collected shall be paid into a special fund of the authority
33to finance the improvements specified in the community
34revitalization plan.

35(2) A consenting local agency may advance funds to the
36authority. The authority shall use those advanced funds solely for
37the purposes specified in the community revitalization plan and
38shall repay the consenting local agency with revenue from the
39taxes received pursuant to this subdivision.

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

P13   1(1) “Taxing agency” means a local agency as defined by
2subdivision (a) of Section 95 of the Revenue and Taxation Code,
3and does not include any school entity as defined in subdivision
4(f) of Section 95 of the Revenue and Taxation Code.

5(2) “Consenting local agency” means a local agency that has
6adopted a resolution of its governing body consenting to the
7begin delete annexation developmentend deletebegin insert community revitalization and investmentend insert
8 plan.

9(3) “Territory” means the land that is contained within the
10community revitalization plan.

11(c) The provision for the receipt of tax increment funds shall
12become effective in the tax year that begins after the December 1
13first following the adoption of the plan.

14(d) At any time prior to or after adoption of the plan, any city,
15county, or special district, other than a school entity as defined in
16subdivision (n) of Section 95 of the Revenue and Taxation Code
17or a successor agency as defined in subdivision (j) of Section
1834171, that receives ad valorem property taxes from property
19located within an area may adopt a resolution directing the county
20auditor-controller to allocate its share of tax increment funds within
21the area covered by the plan according to subdivision (a) to the
22authority. The resolution adopted pursuant to this subdivision may
23direct the county auditor-controller to allocate less than the full
24amount of the tax increment, establish a maximum amount of time
25in years that the allocation takes place, or limit the use of the funds
26by the authority for specific purposes orbegin delete programs.end deletebegin insert programs,
27provided that 25 percent of the amount of tax increment designated
28is allocated for affordable housing pursuant to Section 62100.end insert
A
29resolution adopted pursuant to this subdivision may be repealed
30and be of no further effect by giving the county auditor-controller
3160 days’ notice; provided, however, that the county
32auditor-controller shall continue to allocate to the authority the
33taxing entity’s share of ad valorem property taxes that have been
34pledged to the repayment of debt issued by the authority until the
35debt has been fully repaid. Prior to adopting a resolution pursuant
36to this subdivision, a city, county, or special district shall approve
37a memorandum of understanding with the authority governing the
38authority’s use of tax increment funds for administrative and
39overhead expenses pursuant to subdivision (g) of Section 62001.

P14   1(e) Upon adoption of a plan that includes a provision for the
2receipt of tax increment funds according to subdivision (a), the
3county auditor-controller shall allocate tax increment revenue to
4the authority as follows:

5(1) If the authority was formed pursuant to subparagraph (A)
6of paragraph (1) of subdivision (b) of Section 62001, the authority
7shall be allocated each year specified in the plan that portion of
8the taxes levied for each city, county, city and county, and special
9district that has adopted a resolution pursuant to subdivision (d),
10in excess of the amount specified in paragraph (1) of subdivision
11(a).

12(2) If the authority was formed pursuant to subparagraph (B)
13of paragraph (1) of subdivision (b) of Section 62001, the authority
14shall be allocated each year specified in the plan that portion of
15the taxes levied for each jurisdiction as provided in the joint powers
16agreement in excess of the amount specified in paragraph (1) of
17subdivision (a).

18(f) If an area includes, in whole or in part, land formerly or
19currently designated as a part of a redevelopment project area, as
20defined in Section 33320.1 of the Health and Safety Code, any
21plan adopted pursuant to this part that includes a provision for the
22receipt of tax increment revenues according to subdivision (a) shall
23include a provision that tax increment amountsbegin delete collected and
24received byend delete
begin insert payable toend insert an authority are subject and subordinate to
25any preexisting enforceable obligation as that term is defined by
26Section 34171 of the Health and Safety Code.

27

62006.  

(a) The authority shall review the plan at least annually
28and make any amendments that are necessary and appropriate in
29accordance with the procedures set forth in Section 62004 and
30shall require the preparation of an annual independent financial
31audit paid for from revenues of the authority.

32(b) An authority shall adopt an annual report on or before June
3330 of each year after holding a public hearing. Written copies of
34the draft report shall be made available to the public 30 days prior
35to the public hearing. The authority shall cause the draft report to
36be posted in an easily identifiable and accessible location on the
37authority’s Internet Web site and shall mail a written notice of the
38availability of the draft report on the Internet Web site to each
39owner of land and each resident within the area covered by the
40plan and to each taxing entity that has adopted a resolution pursuant
P15   1to subdivision (d) of Section 62005. The notice shall be mailed by
2first-class mail, but may be addressed to “occupant.”

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

4(1) A description of the projects undertaken in the fiscal year,
5including any rehabilitation of structures, and a comparison of the
6progress expected to be made on those projects compared to the
7actual progress.

8(2) A chart comparing the actual revenues and expenses,
9including administrative costs, of the authority to the budgeted
10revenues and expenses.

11(3) The amount of tax increment revenues received.

12(4) The amount of revenues expended for low- and
13moderate-income housing.

14(5) An assessment of the status regarding completion of the
15authority’s projects.

16(6) The amount of revenues expended to assist private
17businesses.

18(d) If the authority fails to provide the annual report required
19by subdivision (a), the authority shall not spend any funds received
20pursuant to a resolution adopted pursuant to subdivision (d) of
21Section 62005.

22(e) Every 10 years, at the public hearing held pursuant to
23subdivision (b), the authority shall conduct a protest proceeding
24to consider whether the property owners and residents within the
25plan area wish to present oral or written protests against the
26authority. Notice of this protest proceeding shall be included in
27the written notice of the hearing on the annual report and shall
28inform the property owner and resident of his or her right to submit
29an oral or written protest before the close of the public hearing.
30The protest may state that the property owner or resident objects
31to the authority taking action to implement the plan on and after
32the date of the election described in subdivision (f). The authority
33shall consider all written and oral protests received prior to the
34close of the public hearing.

35(f) If there is a majority protest, the authority shall not take any
36further action to implement the plan on and after the date the
37existence of a majority protest is determined. If between 25 percent
38and 50 percent of the property owners and residents file protests,
39then the authority shall call an election of the property owners and
40residents in the area covered by the plan, and shall not initiate or
P16   1authorize any new projects until the election is held. A majority
2protest exists if protests have been filed representing over 50
3percent of the combined number of property owners and residents,
4at least 18 years of age or older, in the area.

5(g) An election required pursuant to subdivision (f) shall be held
6within 90 days of the public hearing and may be held by mail-in
7ballot. The authority shall adopt, at a duly noticed public hearing,
8procedures for holding this election.

9(h) If a majority of the property owners and residents vote
10against the authority, then the authority shall not take any further
11action to implement the plan on and after the date of the election
12held pursuant to subdivision (e). This section shall not prevent the
13authority from taking any and all actions and appropriating and
14expending funds, including, but not limited to, any and all
15payments on bonded or contractual indebtedness, to carry out and
16complete projects for which expenditures of any kind had been
17made prior to the date of thebegin delete election.end deletebegin insert election and any expenditures
18required by Section 62100 that were incurred prior to the date of
19the election.end insert

20

62007.  

(a) Every five years, beginning in the calendar year in
21which the authority has allocated a cumulative total of more than
22one million dollars ($1,000,000) in tax increment revenues,
23including any proceeds of a debt issuance, for the purposes of
24subdivision (c)begin delete orend deletebegin insert ofend insert Section 62003, the authority shall contract
25for an independent audit to determine compliance with the
26affordable housingbegin delete set-aside, maintenance and replacementend delete
27 requirements of Chapter 1 (commencing with Section 62100) and
28 Chapter 2 (commencing with Section 62115) of Part 2, including
29provisions to ensure that the requirements are met within each
30five-year period covered by the audit. The audit shall be conducted
31according to guidelines established by the Controller, which shall
32be established on or before December 31, 2021. A copy of the
33completed audit shall be provided to the Controller. The Controller
34shall not be required to review and approve the completed audits.

35(b) Where the audit demonstrates a failure to comply with the
36requirements of Chapter 1 (commencing with Section 62100) and
37Chapter 2 (commencing with Section 62115) of Part 2, the
38authority shall adopt and submit to the Controller, as part of the
39audit, a plan to achieve compliance with those provisions as soon
40as feasible, but in not less than two years following the audit
P17   1findings. The Controller shall review and approve thebegin insert complianceend insert
2 plan, and require thebegin insert complianceend insert plan to stay in effect until
3compliance is achieved. The Controller shall ensure that the
4begin insert complianceend insert plan includes one or more of the following means of
5achieving compliance:

6(1) The expenditure of an additional 10 percent of gross tax
7increment revenue on increasing, preserving, and improving the
8supply of low-income housing.

9(2) An increase in the production, by an additional 10 percent,
10of housing for very low income households as required by
11paragraph (2) of subdivision (b) of Section 62120.

12(3) The targeting of expenditures pursuant to Section 62100
13exclusively to rental housing affordable to, and occupied by,
14persons of very low and extremely low income.

15(c) If an authority is required to conduct an audit pursuant to
16subdivision (a) in advance of the issuance of the Controller’s
17guidelines, then it shall prepare an updated audit pursuant to the
18Controller’s guidelines on or before January 1, 2023.

19

62008.  

(a) If an authority fails to provide a copy of the
20completed audit to the Controller as required by paragraph (2) of
21subdivision (c) within 20 days following receipt of a written notice
22of the failure from the Controller, the authority shall forfeit to the
23state:

24(1) Two thousand five hundred dollars ($2,500) in the case of
25an authority with a total revenue, in the prior year, of less than one
26hundred thousand dollars ($100,000), as reported in the Controller’s
27annual financial reports.

28(2) Five thousand five hundred dollars ($5,500) in the case of
29an authority with a total revenue, in the prior year, of at least one
30hundred thousand dollars ($100,000) but less than two hundred
31fifty thousand dollars ($250,000), as reported in the Controller’s
32annual financial reports.

33(3) Ten thousand dollars ($10,000) in the case of an authority
34with a total revenue, in the prior year, of at least two hundred fifty
35thousand dollars ($250,000), as reported in the Controller’s annual
36financial reports.

37(b) If an authority fails to provide a copy of the completed audit
38to the Controller as required by paragraph (2) of subdivision (c)
39within 20 days after receipt of a written notice pursuant to
40subdivision (a) for two consecutive years, the authority shall forfeit
P18   1an amount that is double the amount of the forfeiture assessed
2pursuant to subdivision (a).

3(c) (1) If an authority fails to provide a copy of the completed
4audit to the Controller as required by paragraph (2) of subdivision
5(c) within 20 days after receipt of a written notice pursuant to
6subdivision (a) for three or more consecutive years, the authority
7shall forfeit an amount that is triple the amount of the forfeiture
8assessed pursuant to subdivision (a).

9(2) The Controller shall conduct, or cause to be conducted, an
10independent financial audit report.

11(3) The authority shall reimburse the Controller for the cost of
12complying with this subdivision.

13(d) Upon the request of the Controller, the Attorney General
14shall bring an action for the forfeiture in the name of the people
15of the State of California.begin insert If the Attorney General fails to respond
16to the request within 90 days of its receipt, then any other available
17remedies may be exercised.end insert

18(e) Upon satisfactory showing of good cause, the Controller
19shall waive the forfeiture requirements of this section.

20 

21PART 2.  Housing

22

22 

23Chapter  1. Housing for Persons of Low and Moderate
24Income
25

 

26

62100.  

(a) Not less than 25 percent of all taxes that are
27allocated to the authoritybegin insert from any participating entityend insert pursuant
28to Section 62005 shall be deposited into a separate Low and
29Moderate Income Housing Fund pursuant to Section 62101 and
30used by the authority for the purposes of increasing, improving,
31and preserving the community’s supply of low- and
32moderate-income housing available at affordable housing cost, as
33defined by the following sections of the Health and Safety Code:
34Section 50052.5, to persons and families of low or moderate
35income, as defined in Section 50093, lower income households,
36as defined by Section 50079.5, very low income households, as
37defined in Section 50105, and extremely low income households,
38as defined by Section 50106, that is occupied by these persons and
39families unless the authority makes a finding that combining
40funding received under this program with other funding for the
P19   1same purpose shall reduce administrative costs or expedite the
2construction of affordable housing. If the authority makes such a
3finding, then (1) an authority may transfer funding from the
4program adopted pursuant to subdivision (c) of Section 62003 to
5the housing authority within the territorial jurisdiction of the local
6jurisdiction that created the authority or to the entity that received
7the housing assets of the former redevelopment agency pursuant
8to Section 34176 of the Health and Safetybegin delete Code,end deletebegin insert Code or to a
9private nonprofit housing developer,end insert
and (2) Section 34176.1 of
10the Health and Safety Code shall not apply to funds transferred.
11Funding shall be spent within thebegin delete projectend deletebegin insert planend insert area in which the
12funds were generated. Any recipient of funds transferred pursuant
13to this subdivision shall comply with all applicable provisions of
14this part.

15(b) In carrying out the purposes of this section, the authority
16may exercise any or all of its powers for the construction,
17rehabilitation, or preservation of affordable housing for extremely
18low, very low, low- and moderate-income persons or families,
19including the following:

20(1) Acquire real property or building sites subject to Section
2162112.

22(2) (A) Improve real property or building sites with onsite or
23offsite improvements, but only if both (i) the improvements are
24part of the new construction or rehabilitation of affordable housing
25units for low- or moderate-income persons that are directly
26benefited by the improvements, and are a reasonable and
27fundamental component of the housing units, and (ii) the authority
28requires that the units remain available at affordable housing cost
29to, and occupied by, persons and families of extremely low, very
30low, low, or moderate income for the same time period and in the
31same manner as provided in subdivision (c) and paragraph (2) of
32subdivision (f) of Section 62101.

33(B) If the newly constructed or rehabilitated housing units are
34part of a larger project and the agency improves or pays for onsite
35or offsite improvements pursuant to the authority in this
36subdivision, the authority shall pay only a portion of the total cost
37of the onsite or offsite improvement. The maximum percentage
38of the total cost of the improvement paid for by the authority shall
39be determined by dividing the number of housing units that are
40affordable to low- or moderate-income persons by the total number
P20   1of housing units, if the project is a housing project, or by dividing
2the cost of the affordable housing units by the total cost of the
3project, if the project is not a housing project.

4(3) Donate real property to private or public persons or entities.

5(4) Finance insurance premiums necessary for the provision of
6insurance during the construction or rehabilitation of properties
7that are administered by governmental entities or nonprofit
8organizations to provide housing for lower income households, as
9defined in Section 50079.5 of the Health and Safety Code,
10including rental properties, emergency shelters, transitional
11housing, or special residential care facilities.

12(5) Construct buildings or structures.

13(6) Acquire buildings or structures.

14(7) Rehabilitate buildings or structures.

15(8) Provide subsidies to, or for the benefit of, extremely low
16income households, as defined by Section 50106 of the Health and
17Safety Code, very low income households, as defined by Section
1850105 of the Health and Safety Code, lower income households,
19as defined by Section 50079.5 of the Health and Safety Code, or
20persons and families of low or moderate income, as defined by
21Section 50093 of the Health and Safety Code, to the extent those
22households cannot obtain housing at affordable costs on the open
23market. Housing units available on the open market are those units
24developed without direct government subsidies.

25(9) Develop plans, pay principal and interest on bonds, loans,
26advances, or other indebtedness, or pay financing or carrying
27charges.

28(10) Maintain the community’s supply of mobilehomes.

29(11) Preserve the availability to lower income households of
30affordable housing units in housing developments that are assisted
31or subsidized by public entities and that are threatened with
32imminent conversion to market rates.

33(c) The authority may use these funds to meet, in whole or in
34part, the replacement housing provisions in Section 62120.
35However, this section shall not be construed as limiting in any way
36the requirements of that section.

37(d) The authoritybegin delete mayend deletebegin insert shallend insert use these funds insidebegin delete or outsideend delete
38 the plan area. begin deleteThe authority may only use these funds outside the
39plan area upon a resolution of the authority that the use will be of
40benefit to the plan. The determination by the authority shall be
P21   1final and conclusive as to the issue of benefit to the plan area. The
2Legislature finds and declares that the provision of replacement
3housing pursuant to Section 62120 is always of benefit to a plan.
4Unless the authority finds, before the plan is adopted, that the
5provision of low- and moderate-income housing outside the plan
6area will be of benefit to the plan, the plan area shall include
7property suitable for low- and moderate-income housing.end delete

begin insert

8(e) The Legislature finds and declares that expenditures or
9obligations incurred by the authority pursuant to this section shall
10constitute an indebtedness of the plan area.

end insert
begin delete

11(e)

end delete

12begin insert(f)end insert (1) (A) An action to compel compliance with the
13requirement of this section to deposit not less than 25 percent of
14all taxes that are allocated to the authority pursuant to Section
1562005 in the Low and Moderate Income Housing Fund shall be
16commenced within 10 years of the alleged violation. A cause of
17action for a violation accrues on the last day of the fiscal year in
18which the funds were required to be deposited in the Low and
19Moderate Income Housing Fund.

20(B) An action to compel compliance with the requirement of
21this section that money deposited in the Low and Moderate Income
22Housing Fund be used by the agency for purposes of increasing,
23improving, and preserving the community’s supply of low- and
24moderate-income housing available at affordable housing cost
25shall be commenced within 10 years of the alleged violation. A
26cause of action for a violation accrues on the date of the actual
27expenditure of the funds.

28(C) An agency found to have deposited less into the Low and
29Moderate Income Housing Fund than mandated by Section 62101
30or to have spent money from the Low and Moderate Income
31Housing Fund for purposes other than increasing, improving, and
32preserving the community’s supply of low- and moderate-income
33housing, as mandated by this section, shall repay the funds with
34interest in one lump sum pursuant to Section 970.4 or 970.5 or
35may do either of the following:

36(i) Petition the court under Section 970.6 for repayment in
37installments.

38(ii) Repay the portion of the judgment due to the Low and
39Moderate Income Housing Fund in equal installments over a period
40of five years following the judgment.

P22   1(2) Repayment shall not be made from the funds required to be
2set aside or used for low- and moderate-income housing pursuant
3to this section.

4(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
5paragraph (1), all costs, including reasonable attorney’s fees if
6included in the judgment, are due and shall be paid upon entry of
7judgment or order.

8(4) Except as otherwise provided in this subdivision, Chapter
92 (commencing with Section 970) of Part 5 of Division 3.6 of Title
101 for the enforcement of a judgment against a local public entity
11applies to a judgment against a local public entity that violates this
12section.

13(5) This subdivision applies to actions filed on and after January
141, 2016.

15(6) The limitations period specified in subparagraphs (A) and
16(B) of paragraph (1) does not apply to a cause of action brought
17pursuant to Chapter 9 (commencing with Section 860) of Title 10
18of Part 2 of the Code of Civil Procedure.

19

62101.  

(a) The funds that are required by Section 62100 or
2062103 to be used for the purposes of increasing, improving, and
21preserving the community’s supply of low- and moderate-income
22housing shall be held in a separate Low and Moderate Income
23Housing Fund until used.

24(b) Any interest earned by the Low and Moderate Income
25Housing Fund and any repayments or other income to the authority
26for loans, advances, or grants, of any kind from the Low and
27Moderate Income Housing Fund, shall accrue to and be deposited
28in, the fund and may only be used in the manner prescribed for the
29Low and Moderate Income Housing Fund.

30(c) The moneys in the Low and Moderate Income Housing Fund
31shall be used to increase, improve, and preserve the supply of low-
32and moderate-income housing within the territorial jurisdiction of
33the authority.

34(d) It is the intent of the Legislature that the Low and Moderate
35Income Housing Fund be used to the maximum extent possible to
36defray the costs of production, improvement, and preservation of
37low- and moderate-income housing and that the amount of money
38spent for planning and general administrative activities associated
39with the development, improvement, and preservation of that
40housing not be disproportionate to the amount actually spent for
P23   1the costs of production, improvement, or preservation of that
2housing. The authority shall determine annually that the planning
3and administrative expenses are necessary for the production,
4improvement, or preservation of low- and moderate-income
5housing.

6(e) (1) Planning and general administrative costsbegin delete whichend deletebegin insert thatend insert
7 may be paid with moneys from the Low and Moderate Income
8Housing Fund are those expenses incurred by the authoritybegin delete whichend delete
9begin insert thatend insert are directly related to the programs and activities authorized
10under subdivision (e) of Section 62100 and are limited to the
11following:

12(A) Costs incurred for salaries, wages, and related costs of the
13authority’s staff or for services provided through interagency
14agreements, and agreements with contractors, including usual
15indirect costs related thereto.

16(B) Costs incurred by a nonprofit corporation which are not
17directly attributable to a specific project.

18(2) Legal, architectural, and engineering costs and other salaries,
19wages, and costs directly related to the planning and execution of
20a specific project that are authorized under subdivision (e) of
21Section 62100 and that are incurred by a nonprofit housing sponsor
22are not planning and administrative costs for the purposes of this
23section, but are instead project costs.

24(f) (1) The requirements of this subdivision apply to all new or
25substantially rehabilitated housing units developed or otherwise
26assisted with moneys from the Low and Moderate Income Housing
27Fund. Except to the extent that a longer period of time may be
28required by other provisions of law, the authority shall require that
29housing units subject to this subdivision shall remain available at
30affordable housing cost to, and occupied by, persons and families
31of low or moderate income and very low income and extremely
32low income households for the longest feasible time, but for not
33less than the following periods of time:

34(A) Fifty-five years for rental units. However, the authority may
35replace rental units with equally affordable and comparable rental
36units in another location within the community if (i) the
37replacement units are available for occupancy prior to the
38displacement of any persons and families of low or moderate
39income residing in the units to be replaced, and (ii) the comparable
P24   1replacement units are not developed with moneys from the Low
2and Moderate Income Housing Fund.

3(B) Forty-five years for owner-occupied units. However, the
4authority may permit sales of owner-occupied units prior to the
5expiration of the 45-year period for a price in excess of that
6otherwise permitted under this subdivision pursuant to an adopted
7program which protects the agency’s investment of moneys from
8the Low and Moderate Income Housing Fund, including, but not
9limited to, an equity sharing program which establishes a schedule
10of equity sharing that permits retention by the seller of a portion
11of those excess proceeds based on the length of occupancy. The
12remainder of the excess proceeds of the sale shall be allocated to
13the authority and deposited in the Low and Moderate Income
14Housing Fund. Only the units originally assisted by the authority
15shall be counted towards the agency’s obligations under Section
1662102.

17(C) Fifteen years for mutual self-help housing units that are
18occupied by and affordable to very low and low-income
19households. However, the authority may permit sales of mutual
20self-help housing units prior to expiration of the 15-year period
21for a price in excess of that otherwise permitted under this
22subdivision pursuant to an adopted program that (i) protects the
23agency’s investment of moneys from the Low and Moderate
24Income Housing Fund, including, but not limited to, an equity
25sharing program that establishes a schedule of equity sharing that
26permits retention by the seller of a portion of those excess proceeds
27based on the length of occupancy, and (ii) ensures through a
28recorded regulatory agreement, deed of trust, or similar recorded
29instrument that if a mutual self-help housing unit is sold at any
30time after expiration of the 15-year period and prior to 45 years
31after the date of recording of the covenants or restrictions required
32pursuant to paragraph (2), the authority recovers, at a minimum,
33its original principal from the Low and Moderate Income Housing
34Fund from the proceeds of the sale and deposits those funds into
35the Low and Moderate Income Housing Fund. The remainder of
36the excess proceeds of the sale not retained by the seller shall be
37allocated to the agency and deposited in the Low and Moderate
38Income Housing Fund. For the purposes of this subparagraph,
39“mutual self-help housing unit” means an owner-occupied housing
40unit for which persons and families of very low and low income
P25   1contribute no fewer than 500 hours of their own labor in individual
2or group efforts to provide a decent, safe, and sanitary ownership
3housing unit for themselves, their families, and others authorized
4to occupy that unit. This subparagraph shall not preclude the
5authority and the developer of the mutual self-help housing units
6from agreeing to 45-year deed restrictions.

7(2) If land on which those dwelling units are located is deleted
8from the plan area, the authority shall continue to require that those
9units remain affordable as specified in this subdivision.

10(3) The authority shall require the recording in the office of the
11county recorder of the following documents:

12(A) The covenants or restrictions implementing this subdivision
13for each parcel or unit of real property subject to this subdivision.
14The authority shall obtain and maintain a copy of the recorded
15covenants or restrictions for not less than the life of the covenant
16or restriction.

17(B) For all new or substantially rehabilitated units developed
18or otherwise assisted with moneys from the Low and Moderate
19Income Housing Fund, a separate document called “Notice of
20Affordability Restrictions on Transfer of Property,” set forth in
2114-point type or larger. This document shall contain all of the
22following information:

23(i) A recitation of the affordability covenants or restrictions.begin delete If
24theend delete
begin insert Theend insert document recorded under this subparagraphbegin delete isend deletebegin insert shall beend insert
25 recorded concurrently with the covenants or restrictions recorded
26under subparagraph (A), the recitation of the affordability
27covenants or restrictions shall also reference the concurrently
28recorded document. begin delete If the document recorded under this
29subparagraph is not recorded concurrently with the covenants or
30restrictions recorded under subparagraph (A), the recitation of the
31affordability covenants or restrictions shall also reference the
32recorder’s identification number of the document recorded under
33subparagraph (A).end delete

34(ii) The date the covenants or restrictions expire.

35(iii) The street address of the property, including, if applicable,
36the unit number, unless the property is used to confidentially house
37victims of domestic violence.

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

39(v) The legal description of the property.

P26   1(4) The authority shall require the recording of the document
2required under subparagraph (B) of paragraph (3) not more than
330 days after the date of recordation of the covenants or restrictions
4required under subparagraph (A) of paragraph (3).

5(5) The county recorder shall index the documents required to
6be recorded under paragraph (3) by the authority and current owner.

7(6) Notwithstanding Section 27383, a county recorder may
8charge all authorized recording fees to any party, including a public
9agency, for recording the document specified in subparagraph (B)
10of paragraph (3).

11(7) Notwithstanding any other law, the covenants or restrictions
12implementing this subdivision shall run with the land and shall be
13enforceable against any owner who violates a covenant or
14restriction and each successor in interest who continues the
15violation, by any of the following:

16(A) The authority.

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

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

19(D) A residents’ association with members who reside in units
20subject to this subdivision.

21(E) A former resident of a unit subject to this subdivision who
22last resided in that unit.

23(F) An applicant seeking to enforce the covenants or restrictions
24for a particular unit that is subject to this subdivision, if the
25applicant conforms to all of the following:

26(i) Is of low or moderate income, as defined in Section 50093
27of the Health and Safety Code.

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

29(iii) Was denied occupancy of that particular unit due to an
30alleged breach of a covenant or restriction implementing this
31subdivision.

32(G) A person on an affordable housing waiting list who is of
33low or moderate income, as defined in Section 50093, and who is
34able and willing to occupy a unit subject to this subdivision.

35(8) A dwelling unit shall not be counted as satisfying the
36affordable housing requirements of this part, unless covenants for
37that dwelling unit are recorded in compliance with subparagraph
38(A) of paragraph (3).

39(9) Failure to comply with the requirements of subparagraph
40(B) of paragraph (3) shall not invalidate any covenants or
P27   1restrictions recorded pursuant to subparagraph (A) of paragraph
2(3).

3(g) “Housing,” as used in this section, includes residential hotels,
4as defined in subdivision (k) of Section 37912 of the Health and
5Safety Code. The definitions of “lower income households,” “very
6low income households,” and “extremely low income households”
7in Sections 50079.5, 50105, and 50106 of the Health and Safety
8Code shall apply to this section. “Longest feasible time,” as used
9in this section, includes, but is not limited to, unlimited duration.

10(h) “Increasing, improving, and preserving the community’s
11supply of low- and moderate-income housing,” as used in this
12section and in Section 62100, includes the preservation of rental
13housing units assisted by federal, state, or local government on the
14condition that units remain affordable to, and occupied by, low-
15and moderate-income households, including extremely low and
16very low income households, for the longest feasible time, but not
17less than 55 years, beyond the date the subsidies and use restrictions
18could be terminated and the assisted housing units converted to
19market rate rentals. In preserving these units the authority shall
20require that the units remain affordable to, and occupied by, persons
21and families of low- and moderate-income and extremely low and
22very low income households for the longest feasible time, but not
23less than 55 years. begin delete However, the authority may replace rental units
24with equally affordable and comparable rental units in another
25location within the community if (1) the replacement units in
26another location are available for occupancy prior to the
27displacement of any persons and families of low or moderate
28income residing in the units to be replaced and (2) the comparable
29replacement units are not developed with moneys from the Low
30and Moderate Income Housing Fund.end delete

31(i) Funds from the Low and Moderate Income Housing Fund
32shall not be used to the extent that other reasonable means of
33private or commercial financing of the new or substantially
34rehabilitated units at the same level of affordability and quantity
35are reasonably available to the agency or to the owner of the units.
36Prior to the expenditure of funds from the Low and Moderate
37Income Housing Fund for new or substantially rehabilitated
38housing units, where those funds will exceed 50 percent of the
39cost of producing the units, the authority shall find, based on
40 substantial evidence, that the use of the funds is necessary because
P28   1the authority or owner of the units has made a good faith attempt
2but has been unable to obtain commercial or private means of
3financing the units at the same level of affordability and quantity.

4

62102.  

(a) Except as specified in subdivision (d), each
5authority shall expend over each 10-year period of the community
6revitalization plan the moneys in the Low and Moderate Income
7Housing Fund to assist housing for persons of low income and
8housing for persons of very low income in at least the same
9proportion as the total number of housing units needed that each
10of those income groups bears to the total number of units needed
11for persons of moderate, low, and very low income within the
12community, as those needs have been determined for the
13community pursuant to Section 65584. In determining compliance
14with this obligation, the authority may adjust the proportion by
15subtracting from the need identified for each income category, the
16number of units for persons of that income category that are newly
17constructed over the duration of the implementation plan with
18other locally controlled government assistance and without agency
19assistance and that are required to be affordable to, and occupied
20by, persons of the income category for at least 55 years for rental
21housing and 45 years for ownership housing, except that in making
22an adjustment the agency may not subtract units developed
23pursuant to a replacement housing obligation under state or federal
24law.

25(b) Each authority shall expend over the duration of each
26begin delete implementationend delete plan, the moneys in the Low and Moderate Income
27Housing Fund to assist housing that is available to all persons
28regardless of age in at least the same proportion as the number of
29low-income households with a member under 65 years of age bears
30 to the total number of low-income households of the community
31as reported in the most recent census of the United States Census
32Bureau.

33(c) An authority that has deposited in the Low and Moderate
34Income Housing Fund over the first five years of the period ofbegin delete an
35implementationend delete
begin insert aend insert plan an aggregate that is less than two million
36dollars ($2,000,000) shall have an extra five years to meet the
37requirements of this section.

38(d) For the purposes of this section, “locally controlled” means
39government assistance where the city or county that created the
40authority or other local government entity has the discretion and
P29   1the authority to determine the recipient and the amount of the
2assistance, whether or not the source of the funds or other
3assistance is from the state or federal government. Examples of
4locally controlled government assistance include, but are not
5limited to, the Community Development Block Grant Program
6(42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county,
7the Home Investment Partnership Program (42 U.S.C. Sec. 12721
8et seq.) funds allocated to a city or county, fees or funds received
9by a city or county pursuant to a city or county authorized program,
10and the waiver or deferral of city or other charges.

11

62103.  

Every community revitalization plan shall containbegin delete aend delete
12begin insert both of the following:end insert

13begin insert(1)end insertbegin insertend insertbegin insertAend insert provision thatbegin insert requires,end insert whenever dwelling units housing
14persons and families of low or moderate income are destroyed or
15removed from the low- and moderate-income housing market as
16part of a revitalizationbegin delete projectend deletebegin insert project,end insert the authoritybegin delete shall,end deletebegin insert to,end insert within
17two years of such destruction or removal, rehabilitate, develop, or
18construct, or cause to be rehabilitated, developed, or constructed,
19for rental or sale to persons and families of low or moderate income
20an equal number of replacement dwelling units at affordable
21housing costs, as defined by Section 50052.5 of the Health and
22Safety Code, within the territorial jurisdiction of the authority, in
23accordance with all of the provisions of Sections 62120 and
2462120.5.

begin insert

25(2) A provision that prohibits the number of housing units
26occupied by extremely low, very low-, and low-income households,
27including the number of bedrooms in those units, at the time the
28plan is adopted, from being reduced in the plan area during the
29effective period of the plan.

end insert
30

62104.  

Programs to assist or develop low- and
31moderate-income housing pursuant to this part shall be entitled to
32priority considerationbegin insert after a program implemented by a housing
33successor pursuant to Section 34176.1 of the Health and Safety
34Codeend insert
for assistance in housing programs administered by the
35California Housing Finance Agency, the Department of Housing
36and Community Development, and other state agencies and
37departments, if those agencies or departments determine that the
38housing is otherwise eligible for assistance under a particular
39program.

P30   1

62105.  

The same notice requirements as specified in Section
265863.10 shall apply to multifamily rental housing that receives
3financial assistance pursuant to Sections 62100 and 62101.

4

62106.  

Notwithstanding Sections 62100 and 62101, assistance
5provided by an authority to preserve the availability to lower
6income households of affordable housing units which are assisted
7or subsidized by public entities and which are threatened with
8imminent conversion to market rates may be credited and offset
9against an agency’s obligations under Section 62100.

10

62107.  

(a) Except as otherwise provided in this subdivision,
11not later than six months following the close of any fiscal year of
12an authority in which excess surplus accumulates in the authority’s
13Low and Moderate Income Housing Fund, the authority may adopt
14a plan pursuant to this section for expenditure of all moneys in the
15Low and Moderate Income Housing Fund within five years from
16the end of that fiscal year. The plan may be general and need not
17be site-specific, but shall include objectives respecting the number
18and type of housing to be assisted, identification of the entities,
19which will administer the plan, alternative means of ensuring the
20affordability of housing units for the longest feasible time, as
21specified in subdivision (e) of Section 62101 the income groups
22to be assisted, and a schedule by fiscal year for expenditure of the
23excess surplus.

24(b) The authority shall separately account forbegin delete eachend deletebegin insert anyend insert excess
25surplusbegin insert accumulated each yearend insert either as part of or in addition to
26a Low and Moderate Income Housing Fund.

27(c) If the authority develops a plan for expenditure of excess
28surplus or other moneys in the Low and Moderate Income Housing
29Fund, a copy of that plan and any amendments to that plan shall
30be included in the authority’s annual report pursuant to Section
3162006.

32

62108.  

(a) (1) Upon failure of the authority to expend or
33encumber excess surplus in the Low and Moderate Income Housing
34Fund within one year from the date the moneys become excess
35surplus, as defined in paragraph (1) of subdivision (g), the authority
36shall do either of the following:

37(A) Disburse voluntarily its excess surplus to the county housing
38begin delete authorityend deletebegin insert authority, a private nonprofit housing developer,end insert or to
39another public agency exercising housing development powers
P31   1within the territorial jurisdiction of the agency in accordance with
2subdivision (b).

3(B) Expend or encumber its excess surplus within two additional
4years.

5(2) If an authority, after three years has elapsed from the date
6that the moneys become excess surplus, has not expended or
7encumbered its excess surplus, the authority shall be subject to
8sanctions pursuant to subdivision (e), until the authority has
9expended or encumbered its excess surplus plus an additional
10amount, equal to 50 percent of the amount of the excess surplus
11that remains at the end of the three-year period. The additional
12expenditure shall not be from the authority’s Low and Moderate
13Income Housing Fund, but shall be used in a manner that meets
14all requirements for expenditures from that fund.

15(b) The housing authority or other public agency to which the
16money is transferred shall utilize the moneys for the purposes of,
17and subject to the same restrictions that are applicable to, the
18authority under this part, and for that purpose may exercise all of
19the powers of a housing authority under Part 2 (commencing with
20Section 34200) of Division 24 of the Health and Safety Code to
21an extent not inconsistent with these limitations.

22(c) Notwithstanding Section 34209 of the Health and Safety
23Code or any other law, for the purpose of accepting a transfer of,
24and using, moneys pursuant to this section, the housing authority
25of a county or other public agency may exercise its powers within
26the territorial jurisdiction of an authority located in that county.

27(d) The amount of excess surplus that shall be transferred to the
28housing authority or other public agency because of a failure of
29the authority to expend or encumber excess surplus within one
30year shall be the amount of the excess surplus that is not so
31expended or encumbered. The housing authority or other public
32agency to which the moneys are transferred shall expend or
33encumber these moneys for authorized purposes not later than
34three years after the date these moneys were transferred from the
35Low and Moderate Income Housing Fund.

36(e) (1) Until a time when the authority has expended or
37encumbered excess surplus moneys pursuant to subdivision (a),
38the authority shall be prohibited from encumbering any funds or
39expending any moneys derived from any source, except that the
40authority may encumber funds and expend moneys to pay the
P32   1following obligations, if any, that were incurred by the authority
2prior to three years from the date the moneys became excess
3surplus:

4(A) Bonds, notes, interim certificates, debentures, or other
5obligations issued by an authority, whether funded, refunded,
6assumed, or otherwise, pursuant to subdivision (f) of Section
762003.

8(B) Loans or moneys advanced to the authority, including, but
9not limited to, loans from federal, state, or local agencies, or a
10private entity.

11(C) Contractual obligations which, if breached, could subject
12the authority to damages or other liabilities or remedies.

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

14(E) An amount, to be expended for the operation and
15administration of the authority, that may not exceed 75 percent of
16the amount spent for those purposes in the preceding fiscal year.

17(2) This subdivision shall not be construed to prohibit the
18expenditure of excess surplus funds or other funds to meet the
19requirement in paragraph (2) of subdivision (a) that the agency
20spend or encumber excess surplus funds, plus an amount equal to
2150 percent of excess surplus, prior to spending or encumbering
22funds for any other purpose.

23(f) This section shall not be construed to limit any authoritybegin insert thatend insert
24 an authority may have under other provisions of this part to contract
25with a housingbegin delete authorityend deletebegin insert authority, private nonprofit housing
26developer, or other public agency exercising housing developer
27powers,end insert
for increasing or improving the community’s supply of
28low- and moderate-income housing.

29(g) For purposes of this section:

30(1) “Excess surplus” means any unexpended and unencumbered
31amount in an authority’s Low and Moderate Income Housing Fund
32that exceeds the greater of one million dollars ($1,000,000) or the
33aggregate amount deposited into the Low and Moderate Income
34Housing Fund pursuant to Sections 62100 and 62104 during the
35authority’s preceding four fiscal years. The first fiscal year to be
36included in this computation is the 2016-17 fiscal year, and the
37first date on which an excess surplus may exist is July 1, 2021.

38(2) Moneys shall be deemed encumbered if committed pursuant
39to a legally enforceable contract or agreement for expenditure for
40purposes specified in Sections 62100 and 62101.

P33   1(3) (A) For purposes of determining whether an excess surplus
2exists, it is the intent of the Legislature to give credit to authorities
3which convey land for less than fair market value, on which low-
4and moderate-income housing is built or is to be built if at least
549 percent of the units developed on the land are available at an
6affordable housing cost to lower income households for at least
7the time specified in subdivision (e) of Section 62101, and
8otherwise comply with all of the provisions of this division
9applicable to expenditures of moneys from a low- and
10moderate-income housing fund established pursuant to Section
1162101. Therefore, for the sole purpose of determining the amount,
12if any, of an excess surplus, an authority may make the following
13calculation: if an authority sells, leases, or grants land acquired
14with moneys from the Low and Moderate Income Housing Fund,
15established pursuant to Section 62101, for an amount which is
16below fair market value, and if at least 49 percent of the units
17constructed or rehabilitated on the land are affordable to lower
18income households, as defined in Section 50079.5 of the Health
19and Safety Code, the difference between the fair market value of
20the land and the amount the authority receives may be subtracted
21from the amount of moneys in an agency’s Low and Moderate
22Income Housing Fund.

23(B) If taxes that are deposited in the Low and Moderate Income
24Housing Fund are used as security for bonds or other indebtedness,
25the proceeds of the bonds or other indebtedness, and income and
26expenditures related to those proceeds, shall not be counted in
27determining whether an excess surplus exists. The unspent portion
28of the proceeds of bonds or other indebtedness, and income related
29thereto, shall be excluded from the calculation of the unexpended
30and unencumbered amount in the Low and Moderate Income
31Housing Fund when determining whether an excess surplus exists.

32(C) This subdivision shall not be construed to restrict the
33authority of an authority provided in any other provision of this
34part to expend funds from the Low and Moderate Income Housing
35Fund.

36(D) The Department of Housing and Community Development
37shall develop and periodically revise the methodology to be used
38in the calculation of excess surplus as required by this section. The
39director shall appoint an advisory committee to advise in the
40development of this methodology. The advisory committee shall
P34   1include department staff, affordable housing advocates, and
2representatives of thebegin insert housing successors of former redevelopment
3agencies, theend insert
League of California Cities, the California Society
4of Certified Public Accountants, the Controller, and any other
5authorities or persons interested in the field that the director deems
6necessary and appropriate.

7(h) Communities in which an agency has disbursed excess
8surplus funds pursuant to this section shall not disapprove a low-
9or moderate-income housing project funded in whole or in part by
10the excess surplus funds if the project is consistent with applicable
11building codes and the land use designation specified in any
12element of the general plan as it existed on the date the application
13was deemed complete. A local agency may require compliance
14with local development standards and policies appropriate to and
15consistent with meeting the quantified objectives relative to the
16development of housing, as required in housing elements of the
17community pursuant to subdivision (b) of Section 65583.

18

62109.  

(a) Notwithstanding Sections 50079.5, 50093, and
1950105 of the Health and Safety Code, for purposes of providing
20assistance to mortgagors participating in a homeownership
21residential mortgage revenue bond program pursuant to Section
2233750 of the Health and Safety Code, or a home financing program
23pursuant to Section 52020 of the Health and Safety Code, or a
24California Housing Finance Agency home financing program,
25“area median income” means the highest of the following:

26(1) Statewide median household income.

27(2) Countywide median household income.

28(3) Median family income for the area, as determined by the
29United States Department of Housing and Urban Development
30with respect to either a standard metropolitan statistical area or an
31area outside of a standard metropolitan statistical area.

32Nothing in Section 50093 of the Health and Safety Code shall
33prevent the agency from adopting separate family size adjustment
34factors or programmatic definitions of income to qualify
35households, persons, and families for the programs of the agency.

36(b) To the extent that any portion of the Low and Moderate
37Income Housing Fund is expended to provide assistance to
38mortgagors participating in programs whose income exceeds that
39of persons and families of low or moderate income, as defined in
40Section 50093 of the Health and Safety Code, the authority shall,
P35   1within two years, expend or enter into a legally enforceable
2agreement to expend twice that sum exclusively to increase and
3improve the community’s supply of housing available at an
4affordable housing cost, as defined in Section 50052.5, to lower
5income households, as defined in Section 50079.5 of the Health
6and Safety Code, of which at least 50 percent shall be very low
7income households, as defined in Section 50105 of the Health and
8Safety Code.

9(c) In addition to the requirements of subdivision (c) of Section
1033413 of the Health and Safety Code, the authority shall require
11that the lower and very low income dwelling units developed
12pursuant to this subdivision remain available at an affordable
13housing cost to lower and very low income households for at least
14begin delete 30end deletebegin insert 45end insert years, except as to dwelling units developed with the
15assistance of federal or state subsidy programs which terminate in
16a shorter period and cannot be extended or renewed.

17(d) The authority shall include within the report required by
18Section 62008 information with respect to compliance by the
19agency with the requirements of this subdivision.

20

62110.  

The covenants or restrictions imposed by the authority
21pursuant to subdivision (f) of Section 62101 may be subordinated
22under any of the following alternatives:

23(a) To a lien, encumbrance, or regulatory agreement under a
24federal or state program when a federal or state agency is providing
25financing, refinancing, or other assistance to the housing units or
26parcels, if the federal or state agency refuses to consent to the
27seniority of thebegin delete agency’send deletebegin insert authority’send insert covenant or restriction on the
28basis that it is required to maintain its lien, encumbrance, or
29regulatory agreement or restrictions due to statutory or regulatory
30requirements, adopted or approved policies, or other guidelines
31pertaining to the financing, refinancing, or other assistance of the
32housing units or parcels.

33(b) To a lien, encumbrance, or regulatory agreement of a lender
34other than the authority or from a bond issuance providing
35financing, refinancing, or other assistance of owner-occupied units
36or parcels where thebegin delete agencyend deletebegin insert authorityend insert makes a finding that an
37economically feasible alternative method of financing, refinancing,
38or assisting the units or parcels on substantially comparable terms
39and conditions, but without subordination, is not reasonably
40available.

P36   1(c) To an existing lien, encumbrance, or regulatory agreement
2of a lender other than the authority or from a bond issuance
3providing financing, refinancing, or other assistance of rental units,
4where the agency’s funds are utilized for rehabilitation of the rental
5units.

6(d) To a lien, encumbrance, or regulatory agreement of a lender
7other than the authority or from a bond issuance providing
8financing, refinancing, or other assistance of rental units or parcels
9where thebegin delete agencyend deletebegin insert authorityend insert makes a finding that an economically
10feasible alternative method of financing, refinancing, or assisting
11the units or parcels on substantially comparable terms and
12conditions, but without subordination, is not reasonably available,
13and where thebegin delete agencyend deletebegin insert authorityend insert obtains written commitments
14reasonably designed to protect thebegin delete agency’send deletebegin insert authority’send insert investment
15in the event of default, including, but not limited to, any of the
16following:

17(1) A right of the authority to cure a default on the loan.

18(2) A right of the authority to negotiate with the lender after
19notice of default from the lender.

20(3) An agreement that if prior to foreclosure of the loan, the
21authority takes title to the property and cures the default on the
22loan, the lender will not exercise any right it may have to accelerate
23the loan by reason of the transfer of title to thebegin delete agency.end deletebegin insert authority.end insert

24(4) A right of the authority to purchase property from the owner
25at any time after a default on the loan.

26

62111.  

Subsidies provided pursuant to subdivision (e) of
27Section 62100 may include payment of a portion of the principal
28and interest on bonds issued by a public agency to finance housing
29for persons and families specified in that paragraph if the authority
30ensures by contract that the benefit of the subsidy will be passed
31on to those persons and families in the form of lower housing costs.

32

62112.  

For each interest in real property acquired using moneys
33from the Low and Moderate Income Housing Fund, the authority
34shall, within five years from the date it first acquires the property
35interest for the development of housing affordable to persons and
36families of low and moderate income, initiate activities consistent
37with the development of the property for that purpose. These
38activities may include, but are not limited to, zoning changes or
39agreements entered into for the development and disposition of
40the property. If these activities have not been initiated within this
P37   1period, the city or county that created the authority may, by
2resolution, extend the period during which the authority may retain
3the property for one additional period not to exceed five years.
4The resolution of extension shall affirm the intention of the city
5or county that the property be used for the development of housing
6affordable to persons and families of low and moderate income.
7In the event that physical development of the property for this
8purpose has not begun by the end of the extended period, or if the
9authority does not comply with this requirement, the property shall
10be sold and the moneys from the sale, less reimbursement to the
11agency for the cost of the sale, shall be deposited in thebegin delete agency'send delete
12begin insert authority’send insert Low and Moderate Income Housing Fund.

13 

14Chapter  2. Replacement and Location
15

 

16

62115.  

The authority shall prepare a feasible method or plan
17for relocation of all of the following:

18(a) Families and persons to be temporarily or permanently
19displaced from housing facilities in the plan area.

20(b) Nonprofit local community institutions to be temporarily or
21permanently displaced from facilities actually used for institutional
22purposes in the project area.

begin insert

23(c) The relocation plan required by this section shall comply
24with the relocation plan requirements of Chapter 16 (commencing
25with Section 7260) of Division 7 of Title 1.

end insert
26

62116.  

The city, county, or city and county that created the
27authority shall insure that the method or plan of the authority for
28the relocation of families or single persons to be displaced by a
29revitalization project shall provide that no persons or families of
30low and moderate income shall be displaced unless and until there
31is a suitable housing unit available and ready for occupancy by
32the displaced person or family at rents comparable to those at the
33time of their displacement. The housing units shall be suitable to
34the needs of those displaced persons or families and must be decent,
35safe, sanitary, and otherwise standard dwellings. The authority
36shall not displace the person or family until the housing units are
37available and ready for occupancy.

38

62117.  

Whenever all or any portion of a revitalizationbegin delete projectend delete
39begin insert plan areaend insert is developed with low- or moderate-income housing
40units and whenever any low- or moderate-income housing units
P38   1are developed with any authority assistance or pursuant to Section
262120, the authority shall requirebegin delete by contract or other appropriate
3meansend delete
begin insert in the recorded covenants for those unitsend insert that the housing
4be made available for rent or purchase to the persons and families
5of low or moderate income displaced by the revitalization project.
6Those persons and families shall be given priority in renting or
7buying thatbegin delete housing. However, failureend deletebegin insert in advance of marketing
8the units to the general public. Failureend insert
to give that priority shall
9not affect the validity of title to realbegin delete property.end deletebegin insert property; however,
10a unit may not be counted as a replacement or production unit in
11the event of noncompliance with this provision.end insert
The authority shall
12keep a list of persons and families of low and moderate income
13displaced by the revitalization project who are to be given priority,
14and may establish reasonable rules for determining the order or
15priority on the list.begin insert The list shall be provided to the owner of those
16properties at or before any certificate of occupancy is issued.end insert

17

62118.  

If insufficient suitable housing units are available in
18thebegin delete communityend deletebegin insert plan areaend insert for low- and moderate-income persons
19and families to be displaced from a community revitalization area,
20the city council or board of supervisors that created the authority
21shall assure that sufficient land be made availablebegin insert in the communityend insert
22 for suitable housing for rental or purchase by low- and
23moderate-income persons and families. If insufficient suitable
24housing units are available in the community for use by persons
25and families of low and moderate income displaced by the
26revitalization project, the authority may, to the extent of that
27deficiency, direct or cause the development, rehabilitation, or
28construction of housing units within the community, both inside
29and outside of revitalizationbegin delete projectend deletebegin insert planend insert areas.

30

62119.  

Permanent housing facilities shall be made available
31within two years from the time occupants are displaced and that
32pending the development of such facilities there will be available
33to such displaced occupants adequate temporary housing facilities
34at rents comparable to those in the community at the time of their
35displacement.

36

62120.  

(a) Whenever dwelling units housing persons and
37families of low or moderate income are destroyed or removed from
38the low- and moderate-income housing market as part of a
39revitalization project that is subject to a written agreement with
40the authority or where financial assistance has been provided by
P39   1the authority, the authority shall, within two years of the destruction
2or removal, rehabilitate, develop, or construct, or cause to be
3rehabilitated, developed, or constructed, for rental or sale to persons
4and families of low or moderate income, an equal number of
5replacement dwelling units that have an equal or greater number
6of bedrooms as those destroyed or removed units at affordable
7housing costs within the territorial jurisdiction of thebegin delete agency.end delete
8begin insert authority.end insert One hundred percent of the replacement dwelling units
9shall be available at an affordable housing cost to persons in the
10same or a lower income categorybegin delete (low,end deletebegin insert (extremely low, low,end insert very
11low, or moderate), as the persons displaced from those destroyed
12or removed units.

13(b) (1) Prior to the time limit on the effectiveness of the
14community revitalization plan established pursuant to subdivision
15(f) of Section 62004 at least 30 percent of all new and substantially
16rehabilitated dwelling units developed by an authority shall be
17available at affordable housing cost to, and occupied by, persons
18and families of low or moderate income. Not less than 50 percent
19of the dwelling units required to be available at affordable housing
20cost to, and occupied by, persons and families of low or moderate
21income shall be available at affordable housing cost to, and
22occupied by, very low income households.

23(2) (A) (i) Prior to the time limit on the effectiveness of the
24revitalization plan established pursuant to subdivision (f) of Section
2562003 at least 15 percent of all new and substantially rehabilitated
26dwelling units developed within a plan area under the jurisdiction
27of an authority by public or private entities or persons other than
28thebegin delete agencyend deletebegin insert authorityend insert shall be available at affordable housing cost
29to, and occupied by, persons and families of low or moderate
30income. Not less than 40 percent of the dwelling units required to
31be available at affordable housing cost to, and occupied by, persons
32and families of low or moderate income shall be available at
33affordable housing cost to, and occupied by, very low income
34households.

35(ii) To satisfy this paragraph, in whole or in part, the authority
36may cause, by regulation or agreement, to be available, at an
37affordable housing cost, to, and occupied by, persons and families
38of low or moderate income or to very low income households, as
39applicable, two units outside a project area for each unit that
P40   1otherwise would have been required to be available inside a project
2area.

3(iii) “Substantially rehabilitated dwelling units” means all units
4substantially rehabilitated, with authority assistance.

5(iv) As used in this paragraph and in paragraph (1), “substantial
6rehabilitation” means rehabilitation, the value of which constitutes
725 percent of the after rehabilitation value of the dwelling, inclusive
8 of the land value.

begin delete

9(v) To satisfy this paragraph, the authority may aggregate new
10or substantially rehabilitated dwelling units in one or more project
11areas, if the authority finds, based on substantial evidence, after a
12public hearing, that the aggregation will not cause or exacerbate
13racial, ethnic, or economic segregation.

end delete

14(B) To satisfy the requirements of paragraph (1) and
15subparagraph (A), the authority may purchase, or otherwise acquire
16or cause by regulation or agreement the purchase or other
17acquisition of, long-term affordability covenants on multifamily
18units that restrict the cost of renting or purchasing those units that
19either: (i) are not presently available at affordable housing cost to
20persons and families of low- or very low income households, as
21applicable; or (ii) are units that are presently available at affordable
22housing cost to this same group of persons or families, but are
23units that the authority finds, based upon substantial evidence,
24after a public hearing, cannot reasonably be expected to remain
25affordable to this same group of persons or families.

26(C) To satisfy the requirements of paragraph (1) and
27subparagraph (A), the long-term affordability covenants purchased
28or otherwise acquired pursuant to subparagraph (B) shall be
29required to be maintained on dwelling units at affordable housing
30cost to, and occupied by, persons and families of low or very low
31income, for the longest feasible time but not less than 55 years for
32rental units and 45 years for owner-occupied units. Not more than
3350 percent of the units made available pursuant to paragraph (1)
34and subparagraph (A) may be assisted through the purchase or
35acquisition of long-term affordability covenants pursuant to
36subparagraph (B). Not less than 50 percent of the units made
37available through the purchase or acquisition of long-term
38affordability covenants pursuant to subparagraph (B) shall be
39available at affordable housing cost to, and occupied by, very low
40income households.

P41   1(D) To satisfy the requirements of paragraph (1) and
2subparagraph (A), each mutual self-help housing unit, as defined
3in subparagraph (C) of paragraph (1) of subdivision (f) of Section
462101, that is subject to a 15-year deed restriction shall count as
5one-third of a unit.

6(3) The requirements of this subdivision shall apply
7independently of the requirements of subdivision (a). The
8requirements of this subdivision shall apply, in the aggregate, to
9housing made available pursuant to paragraphs (1) and (2),
10respectively, and not to each individual case of rehabilitation,
11development, or construction of dwelling units, unless an agency
12determines otherwise.

13(4) Each authority, as part of thebegin delete implementationend deletebegin insert community
14revitalization and investmentend insert
plan required by Section 62003, shall
15adopt a plan to comply with the requirements of this subdivision.
16The plan shall be consistentbegin delete with, and may be included within,end delete
17begin insert withend insert the community’s housing element. The plan shall be reviewed
18and, if necessary, amended at least in conjunction withbegin delete either the
19housing element cycle orend delete
the plan implementation cycle. The plan
20shall ensure that the requirements of this subdivision are met every
2110 years. If the requirements of this subdivision are not met by the
22end of each 10-year period, the agency shall meet these goals on
23an annual basis until the requirements for the 10-year period are
24met. If the agency has exceeded the requirements within the 10-year
25period, the agency may count the units that exceed the requirement
26in order to meet the requirements during the next 10-year period.

27(c) (1) The authority shall requirebegin delete that the aggregate number
28ofend delete
begin insert allend insert replacement dwelling units and other dwelling units
29rehabilitated, developed, constructed, or price restricted pursuant
30to subdivision (a) or (b) remain available at affordable housing
31cost to, and occupied by, persons and families ofbegin insert extremely low
32income,end insert
low-income, moderate-income, and very low income
33households, respectively, for the longest feasible time, but for not
34less than 55 years for rental units, 45 years for home ownership
35units, and 15 years for mutual self-help housing units, as defined
36in subparagraph (C) of paragraph (1) of subdivision (f) of Section
3762101, except as set forth in paragraph (2). Nothing in this
38paragraph precludes the agency and the developer of the mutual
39self-help housing units from agreeing to 45-year deed restrictions.

P42   1(2) Notwithstanding paragraph (1), the authority may permit
2sales of owner-occupied units prior to the expiration of the 45-year
3period, and mutual self-help housing units prior to the expiration
4of the 15-year period, established by thebegin delete agencyend deletebegin insert authorityend insert for a
5price in excess of that otherwise permitted under this subdivision
6pursuant to an adopted program that protects thebegin delete agency’send delete
7begin insert authority’send insert investment of moneys from the Low and Moderate
8Income Housing Fund, including, but not limited to, an equity
9 sharing program that establishes a schedule of equity sharing that
10permits retention by the seller of a portion of those excess proceeds,
11based on the length of occupancy. The remainder of the excess
12proceeds of the sale shall be allocated to thebegin delete agency,end deletebegin insert authority,end insert
13 and deposited into the Low and Moderate Income Housing Fund.
14Thebegin delete agencyend deletebegin insert authorityend insert shall, within three years from the date of
15sale pursuant to this paragraph of each home ownership or mutual
16self-help housing unit subject to a 45-year deed restriction, and
17every third mutual self-help housing unit subject to a 15-year deed
18restriction, expend funds to make affordable an equal number of
19units at the same or lowest income level as the unit or units sold
20pursuant to this paragraph, for a period not less than the duration
21of the original deed restrictions. Only the units originally assisted
22by thebegin delete agencyend deletebegin insert authorityend insert shall be counted towards the authority’s
23obligations under Section 62120.

24(3) The requirements of this section shall be made enforceable
25in the same manner as provided in paragraph (7) of subdivision
26(f) of Section 62101.

27(4) If land on which the dwelling units required by this section
28are located is deleted from the plan area, thebegin delete agencyend deletebegin insert authorityend insert shall
29continue to require that those units remain affordable as specified
30in this subdivision.

31(5) For each unit counted towards the requirements of
32subdivisions (a) and (b), the authority shall require the recording
33in the office of the county recorder of covenants or restrictions
34that ensure compliance with this subdivision and shall comply
35with the requirements of paragraphs (3) and (4) of subdivision (f)
36of Section 62101.

37(d) Except as otherwise authorized by law, this section does not
38authorize an authority to operate a rental housing development
39beyond the period reasonably necessary to sell or lease the housing
40development.

P43   1(e) Notwithstanding subdivision (a), the authority may replace
2destroy or remove dwelling units with a fewer number of
3replacement dwelling units if the replacement dwelling units meet
4both of the following criteria:

5(1) The total number of bedrooms in the replacement dwelling
6units equals or exceeds the number of bedrooms in the destroyed
7or removed units. Destroyed or removed units having one or no
8bedroom are deemed for this purpose to have one bedroom.

9(2) The replacement units are affordable to, and occupied by,
10the same income level of households as the destroyed or removed
11units.

12(f) “Longest feasible time,” as used in this section, includes,
13but is not limited to, unlimited duration.

14

62120.5.  

begin insert(a)end insertbegin insertend insertNot less than 30 days prior to the execution of
15an agreement for acquisition of real property, or the execution of
16an agreement for the disposition and development of property, or
17the execution of an owner participation agreement, which
18agreement would lead to the destruction or removal of dwelling
19units from the low- and moderate-income housing market, the
20authority shall adopt by resolution a replacement housing plan.
21begin delete For a reasonable timeend deletebegin insert Not less than 30 daysend insert prior to adopting a
22replacement housing plan by resolution, the authority shall make
23available a draft of the proposed replacement housing plan for
24review and comment by property owners and residents within the
25plan area, any persons who have requested notice of that
26replacement housing plan, other public agencies, and the general
27public.

28The replacement housing plan shallbegin delete include: (1) the general
29location of housing to be rehabilitated, developed, or constructed
30pursuant to Section 62120; (2) an adequate means of financing
31such as rehabilitation, development, or construction; (3) aend delete
begin insert include
32all of the following:end insert

begin insert

33(1) A description of the housing to be destroyed or removed,
34including the address, parcel number, number and size of units,
35whether the units are occupied, and if so, the income categories
36of the occupants, if that information is available, whether the units
37are rental or ownership, the rent levels or sale price of the units,
38and if the units have existing affordable covenants, the nature and
39source of the subsidy and duration of the covenants.

end insert
begin insert

P44   1(2) A description of the housing to be rehabilitated, developed,
2or constructed pursuant to Section 62120 to replace the units
3described in paragraph (1), including the general location of the
4replacement units, the number and size of the replacement units,
5the affordability levels of the replacement units, whether the
6replacement units will be rental or ownership, and duration of the
7affordability covenants applicable to the units.

end insert
begin insert

8(3) An analysis of the cost of producing the replacement units
9and a description of the source and adequacy of funds or financing,
10or both, available for the rehabilitation, development, or
11construction.

end insert

12begin insert(4)end insertbegin insertend insertbegin insertAend insert finding that the replacement housing does not require the
13approval of the voters pursuant to Article XXXIV of the California
14Constitution, or that such approval has beenbegin delete obtained; (4) the
15number of dwelling units housing persons and families of low or
16moderate income planned for construction or rehabilitation; and
17(5) theend delete
begin insert obtained.end insert

18begin insert(5)end insertbegin insertend insertbegin insertTheend insert timetable for meeting the plan’s relocation,
19rehabilitation, and replacement housing objectives. A dwelling
20unit whose replacement is required by Section 62120 but for which
21no replacement housing plan has been prepared, shall not be
22destroyed or removed from the low- and moderate-income housing
23market until the agency has by resolution adopted a replacement
24housing plan.

begin delete

25Nothing

end delete

26begin insert(b)end insertbegin insertend insertbegin insertNothingend insert in this section shall prevent an authority from
27destroying or removing from the low- and moderate-income
28housing market a dwelling unit which the authority owns and which
29is an immediate danger to health and safety. The authority shall,
30as soon as practicable, adopt by resolution a replacement housing
31plan with respect to that dwellingbegin delete unit.end deletebegin insert unit pursuant to this part.end insert

32

62120.7.  

An authority causing the rehabilitation, development,
33or construction of replacement dwelling units, other than
34single-family residences, pursuant to Section 62120, or pursuant
35to a replacement housing plan as required by Section 62120.5, or
36pursuant to provisions of a revitalization plan required by Section
3762103, primarily for persons of low income, as defined in Section
3850093 of the Health and Safety Code, shall give preference to those
39developments that are proposed to be organized as limited-equity
40housing cooperatives, when so requested as part of the public
P45   1review, provided the project is achievable in an efficient and timely
2manner.

3The limited-equity housing cooperatives shall, in addition to the
4provisions of Section 817 of the Civil Code, be organized so that
5the consideration paid for memberships or shares by the first
6occupants following construction or acquisition by the corporation,
7including the principal amount of obligations incurred to finance
8the share or membership purchase, does not exceed 3 percent of
9the development cost or acquisition cost, or of the fair market value
10appraisal by the permanent lender, whichever is greater.

11

62121.  

An authority shall provide relocation assistance and
12shall make all of the payments required by Chapter 16
13(commencing with Section 7260) of Division 7 of Title 1, including
14the making of those payments financed by the federal government.

15This section shall not be construed to limit any other authority
16which an authority may have to make other relocation assistance
17payments, or to make any relocation assistance payment in an
18amount which exceeds the maximum amount for that payment
19authorized by Chapter 16 (commencing with Section 7260) of
20Division 7 of Title 1.

21

62122.  

In order to facilitate the rehousing of families and single
22persons displaced by any governmental action, an authority, at the
23request of the city council or board of supervisors that created the
24authority, may dispose of the real property acquired under the
25provisions of subdivision (b) of section 62201, by sale or long-term
26lease, for use as, or development of, housing for those displaced
27persons.

28

62123.  

(a) An authority shall monitor, on an ongoing basis,
29any housing affordable to persons and families of low or moderate
30income developed or otherwise made available pursuant to any
31provisions of this part. As part of this monitoring, an authority
32shall require owners or managers of the housing to submit an
33annual report to the authority. The annual reports shall include for
34each rental unit the rental rate and the income and family size of
35the occupants, and for each owner-occupied unit whether there
36was a change in ownership from the prior year and, if so, the
37income and family size of the new owners. The income information
38required by this section shall be supplied by the tenant in a certified
39statement on a form provided by thebegin delete agency.end deletebegin insert authority.end insert

P46   1(b) The data specified in subdivision (a) shall be obtained by
2the authority from owners and managers of the housing specified
3therein and current data shall be included in any reports required
4by law to be submitted to the Department of Housing and
5Community Development or the Controller. The information on
6income and family size that is required to be reported by the owner
7or manager shall be supplied by the tenant and shall be the only
8information on income or family size that the owner or manager
9shall be required to submit on his or her annual report to the
10agency.

11(c) (1) The authority shall compile and maintain a database of
12existing, new, and substantially rehabilitated, housing units
13developed or otherwise assisted with moneys from the Low and
14Moderate Income Housing Fund, or otherwise counted towards
15the requirements of subdivision (a) or (b) of Section 62120. The
16database shall bebegin delete made available to the publicend deletebegin insert posted in an easily
17identifiable and accessible locationend insert
on thebegin insert authority’send insert Internet
18begin insert Web siteend insert and updated on an annual basis and shall include the date
19the database was last updated. The database shall require all of the
20following information for each owner-occupied unit or rental unit,
21or for each group of units, if more than one unit is subject to the
22same covenant:

23(A) The street address and the assessor’s parcel number of the
24property.

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

26(C) The year in which the construction or substantial
27rehabilitation of the unit was completed.

28(D) The date of recordation and document number of the
29affordability covenants or restrictions required under subdivision
30(f) of Section 33334.3 of the Health and Safety Code.

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

32(F) For owner-occupied units that have changed ownership
33during the reporting year, as described in subdivision (a), the date
34and document number of the new affordability covenants or other
35documents recorded to assure that the affordability restriction is
36enforceable and continues to run with the land.

37(G) Whether occupancy in the unit or units is restricted to any
38special population,begin delete includingend deletebegin insert including, but not limited to,end insert senior
39begin delete citizens.end deletebegin insert citizens and persons with disabilities.end insert

begin insert

P47   1(H) Whether occupancy in the unit or units is restricted to an
2extremely low, very low, low-, or moderate-income household.

end insert

3(2) Notwithstanding subparagraphs (A) and (D) of paragraph
4(1), the database shall omit any property used to confidentially
5house victims of domestic violence.

6(3) Upon establishment of a database under this section, the
7authority shall provide reasonable notice to the community
8regarding the existence of the database.

9(d) The authority shall adequately fund its monitoring activities
10 as needed to insure compliance of applicable laws and agreements
11in relation to affordable units. For purposes of defraying the cost
12of complying with the requirements of this section and the changes
13in reporting requirements enacted by the act enacting this section,
14an authority may establish and impose fees upon owners of
15properties monitored pursuant to this section.

16 

17PART 3.  Property Acquisition

18

 

19

62200.  

“Real property” means any of the following:

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

21(b) Buildings, structures, fixtures, and improvements on the
22land.

23(c) Any property appurtenant to or used in connection with the
24land.

25(d) Every estate, interest, privilege, easement, franchise, and
26right in land, including rights-of-way, terms for years, and liens,
27charges, or encumbrances by way of judgment, mortgage, or
28otherwise and the indebtedness secured by those liens.

29

62201.  

Within the plan area or for purposes of revitalization
30an authority may:

31(a) Purchase, lease, obtain option upon, acquire by gift, grant,
32bequest, devise, or otherwise, any real or personal property, any
33interest in property, and any improvements on it, including
34repurchase of developed property previously owned by the
35authority. An authority shall obtain an appraisal from a qualified
36independent appraiser to determine the fair market value of
37property before the authority acquires or purchases real property.

38(b) Accept, at the request of the legislative body of the
39community, a conveyance of real property (located either within
40or outside the plan area) owned by a public entity and declared
P48   1surplus by the public entity, or owned by a private entity. The
2authority may dispose of that property to private persons or to
3public or private entities, by sale or long-term lease for
4development. All or any part of the funds derived from the sale or
5lease of that property may, at the discretion of the legislative body
6of the community, be paid to the community, or to the public entity
7from which any of that property was acquired.

8(c) Sell, lease, grant, or donate real property owned or acquired
9by thebegin delete agencyend deletebegin insert authorityend insert in abegin delete surveyend deletebegin insert planend insert area to a housing authority
10or to any public agency for public housing projects.

11(d) Offer for resale property acquired by an authority for
12rehabilitation and resale within one year after completion of
13rehabilitation. Properties held by the authority in excess of one-year
14period shall be listed in the authority’s annual report with
15information conveying the reasons that property remains unsold
16and indicating plans for its disposition.

17(e) Acquire real property by eminent domain, provided that
18authority is exercised within 12 years from the adoption of the
19plan.

20(1) Every plan adopted by an authority which contemplates
21property owner participation in the revitalization of thebegin insert planend insert area
22shall contain alternative provisions for revitalization of the property
23if the owners fail to participate in the revitalization as agreed. Prior
24to the adoption of a plan, each property owner whose property
25would be subject to acquisition by purchase or condemnation under
26the plan shall be sent a statement in nontechnical language and in
27a clear and coherent manner using words with common and
28everyday meaning to that effect attached to the notice of the
29begin delete hearing.end deletebegin insert hearing as required by subdivision (b) of Section 62004.end insert
30 Alternatively, a list or map of all properties which would be subject
31to acquisition by purchase or condemnation under the plan may
32be mailed to affected property owners with the notices of hearing
33pursuant to Section 62004.

34(2) Without the consent of an owner, an authority shall not
35acquire any real property on which an existing building is to be
36continued on its present site and in its present form and use unless
37that building requires structural alteration, improvement,
38modernization, or rehabilitation, or the site or lot on which the
39building is situated requires modification in size, shape, or use, or
40it is necessary to impose upon that property any of the standards,
P49   1restrictions, and controls of the plan and the owner fails or refuses
2to agree to participate in the plan.

3(3) Property already devoted to a public use may be acquired
4by the agency through eminent domain, but property of a public
5body shall not be acquired without its consent.

6(4) An authority shall not acquire from any of its members or
7officers any property or interest in property except through eminent
8domain proceedings.

9

62202.  

An authority shall not provide any form of direct
10assistance to:

11(a) An automobile dealership that will be or is on a parcel of
12land which has not previously been developed for urban use.

13(b) A development that will be or is on a parcel of land of five
14acres or more which has not previously been developed for urban
15use and that will, when developed, generate sales or use tax
16pursuant to Part 1.5 (commencing with Section 7200) of Division
172 of the Revenue and Taxation Code, unless the principal permitted
18use of the development is office, hotel, manufacturing, or industrial.
19For the purposes of this subdivision, a parcel shall include land on
20an adjacent or nearby parcel on which a use exists that is necessary
21for the legal development of the parcel.

22(c) A development or business, either directly or indirectly, for
23the acquisition, construction, improvement, rehabilitation, or
24replacement of property that is or would be used for gambling or
25gaming of any kind whatsoever, including, but not limited to,
26casinos, gaming clubs, bingo operations, or any facility wherein
27banked or percentage games, any form of gambling device, or
28lotteries, other than the California State Lottery, are or will be
29played.

30(d) The prohibition in subdivision (c) is not intended to prohibit
31an authority from acquiring property on or in which an existing
32gambling enterprise is located, for the purpose of selling or leasing
33the property for uses other than gambling, provided that the agency
34acquires the property for fair market value.

35(e) This section shall not be construed to apply to an authority’s
36assistance in the construction of public improvements that serve
37all or a portion of a project area and that are not required to be
38constructed as a condition of approval of a development described
39in subdivision (a), (b), or (c), or to prohibit assistance in the
40construction of public improvements that are being constructed
P50   1for a development that is not described in subdivision (a), (b), or
2(c).

3

62203.  

(a) Any covenants, conditions, or restrictions existing
4on any real property within a plan area prior to the time the
5authority acquires title to that property, which covenants,
6conditions, or restrictions restrict or purport to restrict the use of,
7or building upon, that real property, shall be void and unenforceable
8as to the authority and any other subsequent owners, tenants,
9lessees, easement holders, mortgagees, trustees, beneficiaries under
10a deed of trust, or any other persons or entities acquiring an interest
11in that real property from that time as title to the real property is
12acquired by an authority whether acquisition is by gift, purchase,
13eminent domain, or otherwise.

14(b) Thirty days prior to the acquisition of real property other
15than by eminent domain, the authority shall provide notice of that
16acquisition and the provisions of this section to holders of interests
17which would be made void and unenforceable pursuant to this
18section, as follows:

19(1) The authority shall publish notice once in a newspaper of
20general circulation in the community in which the agency is
21functioning.

22(2) The authority shall mail notice to holders of those interests
23if those holders appear of record 60 days prior to the date of
24acquisition.

25The authority may accept any release by written instrument from
26the holder of any interest or may commence action to acquire that
27interest after the date of acquisition of the real property.

28(c) This section shall not apply to covenants, conditions, or
29restrictions imposed by an authority pursuant to a plan. This section
30also shall not apply to covenants, conditions, or restrictions where
31an authority in writing expressly acquires or holds property subject
32to those covenants, conditions, or restrictions.

33This section shall not limit or preclude any rights of reversion
34of owners, assignees, or beneficiaries of those covenants,
35conditions, or restrictions limiting the use of land in gifts of land
36to cities, counties, or other governmental entities. This section
37shall not limit or preclude the rights of owners or assignees of any
38land benefited by any covenants, conditions, or restrictions to
39recover damages against the agency if under law that owner or
40assignee has any right to damages. No right to damages shall exist
P51   1against any purchaser from the authority or his or her successors
2or assignees, or any other persons or entities.

3

62204.  

(a) If an authority has adopted a plan but has not
4commenced an eminent domain proceeding to acquire any
5particular parcel of property subject to eminent domain thereunder
6within three years after the date of adoption of the plan, the owner
7or owners of the entire fee at any time thereafter may offer in
8writing to sell the property to the authority for its fair market value.
9If the authority does not, within 18 months from the date of receipt
10of the original offer, acquire or institute eminent domain
11proceedings to acquire the property, the property owner or owners
12may file an action against the authority in inverse condemnation
13to recover damages from the authority for any interference with
14the possession and use of the real property resulting from the plan,
15provided that this section shall not be construed as establishing or
16creating a presumption to any right to damages or relief solely by
17reason of the failure of the authority to acquire the property within
18the time set forth in this section.

19(b) No claim need be presented against an authority under Part
203 (commencing with Section 900) of Division 3.6 of Title 1 as a
21prerequisite to commencement or maintenance of an action under
22subdivision (a), but any action shall be commenced within one
23year and six months after the expiration of the 18 months period.

24(c) An authority may commence an eminent domain proceeding
25or designate the property to be exempt from eminent domain under
26the plan at any time before the property owner commences an
27action under this section. If the authority commences an eminent
28domain proceeding or designates the property to be exempt from
29acquisition by eminent domain before the property owner
30commences an action under this section, the property owner may
31not thereafter bring an action under this section.

32(d) After a property owner has commenced an action under this
33section, the authority may declare the property to be exempt from
34acquisition by eminent domain and abandon the taking of the
35property only under the same circumstances and subject to the
36same conditions and consequences as abandonment of an eminent
37domain proceeding.

38(e) Commencement of an action under this section does not
39affect any authority an authority may have to commence an eminent
40domain proceeding, take possession of the property pursuant to
P52   1Article 3 (commencing with Section 1255.410) of Chapter 6 of
2Title 7 of the Code of Civil Procedure, or abandon the eminent
3domain proceeding.

4(f) In lieu of bringing an action under subdivision (a) or if the
5limitations period provided in subdivision (b) has run, the property
6owner may obtain a writ of mandate to compel the authority, within
7that time as the court deems appropriate, to declare the property
8acquisition exempt or to commence an eminent domain proceeding
9to acquire the property.

10(g) A declaration that the property is exempt from acquisition
11by eminent domain shall be by resolution and shall be recordable.
12It shall exempt the property from eminent domain under the plan,
13and the authority shall have no power of eminent domain as to the
14property.

15

62205.  

Section 1245.260 of the Code of Civil Procedure shall
16not apply to any resolution or ordinance adopting, approving, or
17amending the amendment of plan. Section 1245.260 of the Code
18of Civil Procedure shall apply to a resolution adopted by an
19authority pursuant to Section 1245.220 of the Code of Civil
20Procedure with respect to a particular parcel or parcels of real
21property.

22

62206.  

(a) The authority shall obligate lessees and purchasers
23of real property acquired in revitalization projects undertaken or
24assisted by the authority and owners of property improved as a
25part of a revitalization project to refrain from restricting the rental,
26sale, or lease of the property on any basis listed in subdivision (a)
27or (d) of Section 12955, as those basis are defined in Sections
2812926, 12926.1, subdivision (m) and paragraph (1) of subdivision
29(p) of Section 12955, and Section 12955.2. All deeds, leases, or
30contracts for the sale, lease, sublease, or other transfer of any land
31in a revitalization project shall contain or be subject to the
32nondiscrimination or nonsegregation clauses hereafter prescribed.

33(b) Notwithstanding subdivision (a), with respect to familial
34status, subdivision (a) shall not be construed to apply to housing
35for older persons, as defined in Section 12955.9. With respect to
36familial status, nothing in subdivision (a) shall be construed to
37affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
38Civil Code, relating to housing for senior citizens. Subdivision (d)
39of Section 51, Section 4760, and Section 6714 of the Civil Code,
P53   1and subdivisions (n), (o), and (p) of Section 12955 shall apply to
2subdivision (a).

3

62207.  

Express provisions shall be included in all deeds, leases,
4and contracts that the authority proposes to enter into with respect
5to the sale, lease, sublease, transfer, use, occupancy, tenure, or
6enjoyment of any land in a revitalization project in substantially
7the following form:

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


10“The grantee herein covenants by and for himself or herself, his
11or her heirs, executors, administrators, and assigns, and all persons
12claiming under or through them, that there shall be no
13discrimination against or segregation of, any person or group of
14persons on account of any basis listed in subdivision (a) or (d) of
15Section 12955 of the Government Code, as those basis are defined
16in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1)
17of subdivision (p) of Section 12955 of, and Section 12955.2 of,
18the Government Code, in the sale, lease, sublease, transfer, use,
19occupancy, tenure, or enjoyment of the premises herein conveyed,
20nor shall the grantee or any person claiming under or through him
21or her, establish or permit any practice or practices of
22discrimination or segregation with reference to the selection,
23location, number, use, or occupancy of tenants, lessees, subtenants,
24sublessees, or vendees in the premises herein conveyed. The
25foregoing covenants shall run with the land.”


27(2) Notwithstanding paragraph (1), with respect to familial
28status, paragraph (1) shall not be construed to apply to housing for
29older persons, as defined in Section 12955.9. With respect to
30familial status, nothing in paragraph (1) shall be construed to affect
31Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil
32Code, relating to housing for senior citizens. Subdivision (d) of
33Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and
34subdivisions (n), (o), and (p) of Section 12955 shall apply to
35paragraph (1).

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


38“The lessee herein covenants by and for himself or herself, his
39or her heirs, executors, administrators, and assigns, and all persons
P54   1claiming under or through him or her, and this lease is made and
2accepted upon and subject to the following conditions:

3That there shall be no discrimination against or segregation of
4any person or group of persons, on account of any basis listed in
5subdivision (a) or (d) of Section 12955 of the Government Code,
6as those basis are defined in Sections 12926, 12926.1 of,
7subdivision (m) and paragraph (1) of subdivision (p) of Section
812955 of, and Section 12955.2 of, the Government Code, in the
9leasing, subleasing, transferring, use, occupancy, tenure, or
10enjoyment of the premises herein leased nor shall the lessee himself
11or herself, or any person claiming under or through him or her,
12establish or permit any such practice or practices of discrimination
13or segregation with reference to the selection, location, number,
14use, or occupancy, of tenants, lessees, sublessees, subtenants, or
15vendees in the premises herein leased.”


17(2) Notwithstanding paragraph (1), with respect to familial
18status, paragraph (1) shall not be construed to apply to housing for
19older persons, as defined in Section 12955.9. With respect to
20familial status, nothing in paragraph (1) shall be construed to affect
21Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil
22Code, relating to housing for senior citizens. Subdivision (d) of
23Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and
24subdivisions (n), (o), and (p) of Section 12955 shall apply to
25paragraph (1).

26(c) In contracts entered into by the agency relating to the sale,
27transfer, or leasing of land or any interest therein acquired by the
28agency within any survey area or redevelopment project the
29foregoing provisions in substantially the forms set forth shall be
30included and the contracts shall further provide that the foregoing
31provisions shall be binding upon and shall obligate the contracting
32party or parties and any subcontracting party or parties, or other
33transferees under the instrument.

34

62208.  

(a) The authority shall retain controls and establish
35restrictions or covenants running with land sold or leased for
36private use for those periods of time and under those conditions
37as are provided in the plan. The establishment of those controls is
38a public purpose under this division.

39(b) An authority shall obligate lessees or purchasers of property
40acquired in a revitalization project to:

P55   1(1) Use the property for the purpose designated in the
2revitalization plans.

3(2) Begin the revitalization of the project area within a period
4of time which the authority fixes as reasonable.

5(3) Comply with the covenants, conditions, or restrictions that
6the authority deems necessary to prevent speculation or excess
7profittaking in undeveloped land, including right of reverter to the
8agency. Covenants, conditions, and restrictions imposed by an
9authority may provide for the reasonable protection of lenders.

10(4) Comply with other conditions which the authority deems
11necessary to carry out the purposes of this part.



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