AB 2, as amended, Alejo. Community revitalization authority.
The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined by means of redevelopment projects financed by the issuance of bonds serviced by tax increment revenues derived from the project area. Existing law dissolved redevelopment agencies and community development agencies, as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved agencies and to fulfill the enforceable obligations of those agencies. Existing law also provides for various economic development programs that foster community sustainability and community and economic development initiatives throughout the state.
This bill would authorize certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. The bill would provide for the financing of these activities by, among other things, the issuance of bonds serviced by tax increment revenues, and would require the authority to adopt a community revitalization and investment 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:
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.
P3 1(b) It is in the interest of the state to support the economic
2revitalization
of these communities through tax increment
3financing.
4(c) It is the intent of the Legislature to authorize the creation of
5Community Revitalization and Investment Authorities to invest
6property tax increment revenue to relieve conditions of
7unemployment, reduce high crime rates, repair deteriorated or
8inadequate infrastructure, promote affordable housing, and improve
9conditions leading to increased employment opportunities.
Division 4 (commencing with Section 62000) is added
11to Title 6 of the Government Code, to read:
12
15
As used in this division, the following terms have the
19following meanings:
20(a) “Authority” means the Community Revitalization and
21Investment Authority created pursuant to this division.
22(b) “Plan” means a community revitalization and investment
23plan and shall be deemed to be the plan described in Section 16
24of Article XVI of the California Constitution.
25(c) “Plan area” means territory included within a community
26revitalization and investment area.
27(d) “Revitalization project” means a physical improvement to
28real
property funded by the authority.
(a) A community revitalization and investment
30authority is a public body, corporate and politic, with jurisdiction
31to carry out a community revitalization plan within a community
32revitalization and investment area. The authority shall be deemed
33to be the “agency” described in subdivision (b) of Section 16 of
34Article XVI of the California Constitution for purposes of receiving
35tax increment revenues. The authority shall have only those powers
36and duties specifically set forth in Section 62002.
37(b) (1) An authority may be created in any one of the following
38ways:
P4 1(A) A city, county, or city and county may
adopt a resolution
2creating an authority. The composition of the governing board
3shall be comprised as set forth in subdivision (c).
4(B) A city, county, city and county, and special district, as
5special district is defined in subdivision (m) of Section 95 of the
6Revenue and Taxation Code, or any combination thereof, may
7create an authority by entering into a joint powers agreement
8pursuant to Chapter 5 (commencing with Section 6500) of Division
97 of Title 1.
10(2) (A) A school entity, as defined in subdivision (f) of Section
1195 of the Revenue and Taxation Code, may not participate in an
12authority created pursuant to this part.
13(B) A successor agency, as defined in subdivision (j) of Section
1434171 of the Health and
Safety Code, may not participate in an
15authority created pursuant to this part, and an entity created
16pursuant to this part shall not receive any portion of the property
17tax revenues or other moneys distributed pursuant to Section 34188
18of the Health and Safety Code.
19(3) An authority formed by a city or county that created a
20redevelopment agency that was dissolved pursuant to Part 1.85
21(commencing with Section 34170) of Division 24 of the Health
22and Safety Code shall not become effective until the successor
23agency or designated local authority for the former redevelopment
24agency has adopted findings of fact stating all of the following:
25(A) The agency has received a finding of completion from the
26Department of Finance pursuant to Section 34179.7 of the Health
27and Safety
Code.
28(B) No former redevelopment agency assets which are the
29subject of litigation against the state, where the city or county or
30its successor agency or designated local authority are a named
31plaintiff, have been or will be used to benefit any efforts of an
32authority formed under this part unless the litigation, has been
33resolved by entry of a final judgment by any court of competent
34jurisdiction and any appeals have been exhausted.
35(C) The agency has complied with all orders of the Controller
36pursuant to Section 34167.5 of the Health and Safety Code.
37(c) (1) The governing board of an authority created pursuant
38to subparagraph (A) of paragraph (1) of subdivision (b) shall be
39appointed by the
legislative body of the city, county, or city and
40county that created the authority and shall include three members
P5 1of the legislative body of the city, county, or city and county that
2created the authority and two public members. The appointment
3of the two public members shall be subject to the provisions of
4Section 54974. The two public members shall live or work within
5the community revitalization and investment area.
6(2) The governing body of the authority created pursuant to
7subparagraph (B) of paragraph (1) of subdivision (b) shall be
8comprised of a majority of members from the legislative bodies
9of the public agencies that created the authority and a minimum
10of two public members who live or work within the community
11revitalization and investment area. The majority of the board shall
12appoint the public members to the governing body.
The
13appointment of the public members shall be subject to the
14provisions of Section 54974.
15(d) An authority may carry out a community revitalization plan
16within a community revitalization and investment area. Not less
17than 80 percent of the land calculated by census tracts, or census
18block groups, as defined by the United States Census Bureau,
19within the area shall be characterized by both of the following
20conditions:
21(1) An annual median household income that is less than 80
22percent of the statewide annual median income.
23(2) Three of the following four conditions:
24(A) Nonseasonal unemployment that is at least 3 percent higher
25than statewide median
unemployment, as defined by the report on
26labor market information published by the Employment
27Development Department in January of the year in which the
28community revitalization plan is prepared.
29(B) Crime rates that are 5 percent higher than the statewide
30median crime rate, as defined by the most recent annual report of
31the Criminal Justice Statistics Center within the Department of
32Justice, when data is available on the California Attorney General’s
33Internet Web site.
34(C) Deteriorated or inadequate infrastructure such as streets,
35sidewalks, water supply, sewer treatment or processing, and parks.
36(D) Deteriorated commercial or residential structures.
37(e) As
an alternative to subdivision (d), an authority may also
38carry out a community revitalization plan within a community
39revitalization and investment area established within a former
40military base that is principally characterized by deteriorated or
P6 1inadequate infrastructure and structures. Notwithstanding
2subdivision (c), the governing board of an authority established
3within a former military base shall include a member of the military
4base closure commission as a public member.
5(f) An authority created pursuant to this part shall be a local
6public agency subject to the Ralph M. Brown Act (Chapter 9
7(commencing with Section 54950) of Part 1 of Division 2 of Title
85), the California Public Records Act (Chapter 3.5 (commencing
9with Section 6250) of Division 7 of Title 1), and the Political
10Reform Act of 1974 (Title 9 (commencing with Section
81000)).
11(g) (1) At any time after the authority is authorized to transact
12business and exercise its powers, the legislative body or bodies of
13the local government or governments that created the authority
14may appropriate the amounts the legislative body or bodies deem
15necessary for the administrative expenses and overhead of the
16authority.
17(2) The money appropriated may be paid to the authority as a
18grant to defray the expenses and overhead, or as a loan to be repaid
19upon the terms and conditions as the legislative body may provide.
20If appropriated as a loan, the property owners and residents within
21the plan area shall be made third-party beneficiaries of the
22repayment of the loan. In addition to the common understanding
23and usual interpretation of the term, “administrative
expense”
24includes, but is not limited to, expenses of planning and
25dissemination of information.
An authority may do all of the following:
27(a) Provide funding to rehabilitate, repair, upgrade, or construct
28infrastructure.
29(b) Provide for low- and moderate-income housing in
30accordance with Part 2 (commencing with Section 62100).
31(b)
end delete
32begin insert(c)end insert Remedy or remove a release of hazardous substances
33pursuant to the Polanco Redevelopment Act (Article 12.5
34(commencing with Section 33459) of Part 1 of Chapter 4 of
35Division 24) or Chapter 6.10 (commencing with Section 25403)
36of Division 20 of the Health and Safety Code.
37(c)
end delete
38begin insert(d)end insert Provide for seismic retrofits of existing buildings in
39accordance with all applicable laws and regulations.
40(d)
end delete
P7 1begin insert(e)end insert Acquire and transfer real property in accordance with Part
23 (commencing with Section 62200). The authority shall retain
3controls and establish restrictions or covenants running with the
4land sold or leased for private use for such periods of time and
5under such conditions as are provided in the plan. The
6establishment of such controls is a public purpose under the
7provisions of this part.
8(e)
end delete
9begin insert(f)end insert Issue bonds in conformity with Article 4.5
(commencing
10with Section 53506) and Article 5 (commencing with Section
1153510) of Chapter 3 of Part 1 of Division 2 of Title 5.
12(f)
end delete
13begin insert(g)end insert Borrow money, receive grants, or accept financial or other
14assistance or investment from the state or the federal government
15or any other public agency or private lending institution for any
16project or within its area of operation, and may comply with any
17conditions of the loan or grant. An authority may qualify for
18funding as a disadvantaged community pursuant to Section 79505.5
19of the Water Code or as defined by Section 56033.5. An authority
20may also enter
into an agreement with a qualified community
21development entity, as defined by Section 45D(c) of the Internal
22Revenue Code, to coordinate investments of funds derived from
23the New Markets Tax Credit with those of the authority in instances
24where coordination offers opportunities for greater efficiency of
25investments to improve conditions described in subdivisionsbegin delete (c) begin insert (d) and (e)end insert within the territorial jurisdiction of the authority.
26and (d)end delete
27(g)
end delete
28begin insert(h)end insert Adopt a community revitalization and investment plan
29pursuant to Sections 62003 and 62004.
30(h)
end delete
31begin insert(i)end insert Make loans or grants for owners or tenants to improve,
32rehabilitate, or retrofit buildings or structures within the plan area.
33(i)
end delete
34begin insert(j)end insert Construct foundations, platforms, and other like
structural
35forms necessary for the provision or utilization of air rights sites
36for buildings to be used for residential, commercial industrial, or
37other uses contemplated by the revitalization plan.
38(j)
end delete
P8 1begin insert(k)end insert Provide direct assistance to businesses within the plan area
2in connection with new or existing facilities for industrial or
3manufacturing uses, except as specified in this division.
An authority shall adopt a community revitalization
5and investment plan that may include a provision for the receipt
6of tax increment funds generated within the area according to
7Section 62005, provided the plan includes each of the following
8elements:
9(a) A statement of the principal goals and objectives of the plan
10including territory to be covered by the plan.
11(b) A description of the deteriorated or inadequate infrastructure
12within the area and a program for construction of adequate
13infrastructure or repair or upgrading of existing infrastructure.
14(c) A housing
program that describes how the authority will
15comply with Part 2 (commencing with Section 62100). The
16program shall include the following information:
17(1) The amount available in the Low and Moderate Income
18Housing Fund and the estimated amounts that will be deposited
19in the fund during each of the next five years.
20(2) Estimates of the number of new, rehabilitated, or price
21
restricted residential units to be assisted during each of the five
22years and estimates of the expenditures of moneys from the Low
23and Moderate Income Housing Fund during each of the five years.
24(3) A description of how the program will implement the
25requirements for expenditures of funds in the Low and Moderate
26Income Housing Fund over a 10-year period for various groups
27as required by Chapter 2 (commencing with Section 62115) of
28Part 2.
29(4) Estimates of the number of units, if any, developed by the
30authority for very low, low-, and moderate-income households
31during the next five years.
32(d) A program to remedy or remove a release of hazardous
33substances, if applicable.
34(e) A program to provide funding for or otherwise facilitate the
35economic revitalization of the area.
36(f) A fiscal analysis setting forth the projected receipt of revenue
37and projected expenses over a five-year planning horizon, including
38the potential issuance of bonds backed by tax increment during
39the term of the plan. Bonds shall be issued in conformity with
40Article 4.5 (commencing with Section 53506) and Article 5
P9 1(commencing with Section 53510) of Chapter 3 of Part 1 of
2Division 2 of Title 5. An authority shall not spend revenue for any
3purpose that is not identified as part of a program described in
4subdivisions (b), (c), (d), and (e).
5(g) Time limits that may not exceed the following:
6(1) Thirty years for establishing loans, advances and
7indebtedness.
8(2) Forty-five years for the repayment of all of the authority’s
9debts and obligations, and fulfilling all of the authority’s housing
10obligations. The plan shall specify that an authority shall dissolve
11as a legal entity in no more than 45 years, and no further taxes
12shall be allocated to the authority pursuant to Section 62005.
13Nothing in this paragraph shall be interpreted to prohibit an
14authority from refinancing outstanding debt solely to reduce interest
15costs.
16(h) A determination that the community revitalization investment
17area complies with the conditions described in subdivision (d) or
18(e) of Section
62001.
(a) The authority shall consider adoption of the plan
20at three public hearings that shall take place at least 30 days apart.
21At the first public hearing, the authority shall hear all written and
22oral comments but take no action. At the second public hearing,
23the authority shall consider any additional written and oral
24comments and take action to modify or reject the plan. If the plan
25isbegin delete adoptedend deletebegin insert not rejectedend insert at the second public hearing, then the
26authority shall conduct a protest proceeding at the third public
27hearing to consider whether the property owners and
residents
28within the plan area wish to present oral or written protests against
29the adoption of the plan.
30(b) The draft plan shall be made available to the public and to
31each property owner within the area at a meeting held at least 30
32days prior to the notice given for the first public hearing. The
33purposes of the meeting shall be to allow the staff of the authority
34to present the draft plan, answer questions about the plan, and
35consider comments about the plan.
36(c) (1) Notice of the meeting required by subdivision (b) and
37the public hearings required by this subdivision shall be given in
38accordance with subdivision (k). The notice shall do all of the
39following, as applicable:
40(A) Describe specifically the boundaries of the proposed area.
P10 1(B) Describe the purpose of the plan.
2(C) State the day, hour, and place when and where any and all
3persons having any comments on the proposed plan may appear
4to provide written or oral comments to the authority.
5(D) Notice of second public hearing shall include a summary
6of the changes made to the plan as a result of the oral and written
7testimony received at or before the public hearing and shall identify
8a location accessible to the public where the plan proposed to be
9presented and adopted at the second public hearing can be
10reviewed.
11(E) Notice of the third public hearing to consider any
written
12or oral protests shall contain a copy of the final plan adopted
13pursuant to subdivision (a), and shall inform the property owner
14and resident of his or her right to submit an oral or written protest
15before the close of the public hearing. The protest may state that
16the property owner or resident objects to the authority taking action
17to implement the plan.
18(2) At the third public hearing, the authority shall consider all
19written and oral protests received prior to the close of the public
20hearing and shall terminate the proceedings or adopt the plan
21subject to confirmation by the voters at an election called for that
22purpose. The authority shall terminate the proceedings if there is
23a majority protest. A majority protest exists if protests have been
24filed representing over 50 percent of the combined number of
25property owners
and residents in the area who are at least 18 years
26of age. An election shall be called if between 25 percent and 50
27percent of the combined number of property owners and residents
28in the area who are at least 18 years of age file a protest.
29(d) An election required pursuant to paragraph (2) of subdivision
30(c) shall be held within 90 days of the public hearing and may be
31held by mail-in ballot. The authority shall adopt, at a duly noticed
32public hearing, procedures for this election.
33(e) If a majority of the property owners and residents vote
34against the plan, then the authority shall not take any further action
35to implement the proposed plan. The authority shall not propose
36a new or revised plan to the affected property owners and residents
37for at least one year following the date of
an election in which the
38plan was rejected.
P11 1(f) The authority may provide notice of the public hearings to
2tenants
of properties within the proposed area of the plan in a
3manner of its choosing.
4(g)
end delete
5begin insert(f)end insert At the hour set in the notice required by subdivision (a), the
6authority shall consider all written and oral comments.
7(h)
end delete
8begin insert(g)end insert If less than 25 percent of the combined number of property
9owners and residents in the area who are at least 18 years of age
10file
a protest, the authority may adopt the plan at the conclusion
11of the third public hearing by ordinance. The ordinance adopting
12the plan shall be subject to referendum as prescribed by law.
13(i)
end delete
14begin insert(h)end insert For the purposes of Section 62005, the plan shall be the plan
15adopted pursuant to this section.
16(j)
end delete
17begin insert(i)end insert The authority shall consider and adopt an amendment or
18amendments to a plan in accordance with the provisions of this
19section.
20(k)
end delete
21begin insert(j)end insert The authority shall post notice of each meeting or public
22hearing required by this section in an easily identifiable and
23accessible location on the authority’s Internet Web site and shall
24mail a written notice of the meeting or public hearing to each owner
25of land and each resident at least 10 days prior to the meeting or
26public hearing.
27(1) Notice of the first public hearing shall
also be published not
28less than once a week for four successive weeks prior to the first
29public hearing in a newspaper of general circulation published in
30the county in which the area lies.
31(2) Notice of the second public hearing shall also be published
32not less than 10 days prior to the second public hearing in a
33newspaper of general circulation in the county in which the area
34lies.
35(3) Notice of the third public hearing shall also be published
36not less than 10 days prior to the third public hearing in a
37newspaper of general circulation in the county in which the area
38lies.
(a) (1) The plan adopted pursuant to Section 62004
40may include a provision that taxes levied and collected upon
P12 1taxable property in the area included within the territory each year
2by or for the benefit the taxing agencies that have adopted a
3resolution pursuant to subdivision (d), shall be divided as follows:
4(A) That portion of the taxes that would have been produced
5by the rate upon which the tax is levied each year by or for each
6of the consenting local agencies upon the total sum of the assessed
7value of the taxable property in the territory as shown upon the
8assessment roll used in connection with the taxation of the property
9by the
consenting local agency, last equalized prior to the effective
10date of the certification of completion, and that portion of taxes
11by or for each school entity, shall be allocated to, and when
12collected shall be paid to, the respective consenting local agencies
13and school entities as taxes by or for the consenting local agencies
14and school entities on all property are paid.
15(B) That portion of the levied taxes each year specified in the
16community revitalization plan adopted pursuant to Section 62004
17for each consenting local agency that has agreed to participate
18pursuant a resolution adopted pursuant to subdivision (d), in excess
19of the amount specified in subparagraph (A), shall be allocated to,
20and when collected shall be paid into a special fund of the authority
21to finance the improvements specified in the community
22revitalization plan.
23(2) A consenting local agency may advance funds to the
24authority. The authority shall use those advanced funds solely for
25the purposes specified in the community revitalization plan and
26shall repay the consenting local agency with revenue from the
27taxes received pursuant to this subdivision.
28(b) For purposes of this section, the following definitions apply:
29(1) “Taxing agency” means a local agency as defined by
30subdivision (a) of Section 95 of the Revenue and Taxation Code,
31and does not include any school entity as defined in subdivision
32(f) of Section 95 of the Revenue and Taxation Code.
33(2) “Consenting local agency” means a local agency that has
34adopted a
resolution of its governing body consenting to the
35community revitalization and investment plan.
36(3) “Territory” means the land that is contained within the
37community revitalization plan.
38(c) The provision for the receipt of tax increment funds shall
39become effective in the tax year that begins after the December 1
40first following the adoption of the plan.
P13 1(d) At any time prior to or after adoption of the plan, any city,
2county, or special district, other than a school entity as defined in
3subdivision (n) of Section 95 of the Revenue and Taxation Code
4or a successor agency as defined in subdivision (j) of Section
534171, that receives ad valorem property taxes from property
6located within an area may adopt a resolution
directing the county
7auditor-controller to allocate its share of tax increment funds within
8the area covered by the plan according to subdivision (a) to the
9authority. The resolution adopted pursuant to this subdivision may
10direct the county auditor-controller to allocate less than the full
11amount of the tax increment, establish a maximum amount of time
12in years that the allocation takes place, or limit the use of the funds
13by the authority for specific purposes or programs, provided that
1425 percent of the amount of tax increment designatedbegin delete isend deletebegin insert shall beend insert
15 allocated for affordable housing pursuant to Section 62100. A
16resolution adopted pursuant to this subdivision may be repealed
17and be of no further effect by giving the county
auditor-controller
1860 days’ notice; provided, however, that the county
19auditor-controller shall continue to allocate to the authority the
20taxing entity’s share of ad valorem property taxes that have been
21pledged to the repayment of debt issued by the authority until the
22debt has been fully repaid. Prior to adopting a resolution pursuant
23to this subdivision, a city, county, or special district shall approve
24a memorandum of understanding with the authority governing the
25authority’s use of tax increment funds for administrative and
26overhead expenses pursuant to subdivision (g) of Section 62001.
27(e) Upon adoption of a plan that includes a provision for the
28receipt of tax increment funds according to subdivision (a), the
29county auditor-controller shall allocate tax increment revenue to
30the authority as follows:
31(1) If the authority was formed pursuant to subparagraph (A)
32of paragraph (1) of subdivision (b) of Section 62001, the authority
33shall be allocated each year specified in the plan that portion of
34the taxes levied for each city, county, city and county, and special
35district that has adopted a resolution pursuant to subdivision (d),
36in excess of the amount specified in paragraph (1) of subdivision
37(a).
38(2) If the authority was formed pursuant to subparagraph (B)
39of paragraph (1) of subdivision (b) of Section 62001, the authority
40shall be allocated each year specified in the plan that portion of
P14 1the taxes levied for each jurisdiction as provided in the joint powers
2agreement in excess of the amount specified in paragraph (1) of
3subdivision (a).
4(f) If an area includes, in whole or in part, land formerly or
5currently designated as a part of a redevelopment project area, as
6defined in Section 33320.1 of the Health and Safety Code, any
7plan adopted pursuant to this part that includes a provision for the
8receipt of tax increment revenues according to subdivision (a) shall
9include a provision that tax increment amounts payable to an
10authority are subject and subordinate to any preexisting enforceable
11obligation as that term is defined by Section 34171 of the Health
12and Safety Code.
(a) The authority shall review the plan at least annually
14and make any amendments that are necessary and appropriate in
15accordance with the procedures set forth in Section 62004 and
16shall require the preparation of an annual independent financial
17audit paid for from revenues of the authority.
18(b) An authority shall adopt an annual report on or before June
1930 of each year after holding a public hearing. Written copies of
20the draft report shall be made available to the public 30 days prior
21to the public hearing. The authority shall cause the draft report to
22be posted in an easily identifiable and accessible location on the
23authority’s Internet Web site and shall mail a
written notice of the
24availability of the draft report on the Internet Web site to each
25owner of land and each resident within the area covered by the
26plan and to each taxing entity that has adopted a resolution pursuant
27to subdivision (d) of Section 62005. The notice shall be mailed by
28first-class mail, but may be addressed to “occupant.”
29(c) The annual report shall contain all of the following:
30(1) A description of the projects undertaken in the fiscal year,
31including any rehabilitation of structures, and a comparison of the
32progress expected to be made on those projects compared to the
33actual progress.
34(2) A chart comparing the actual revenues and expenses,
35including administrative costs, of the authority to the budgeted
36
revenues and expenses.
37(3) The amount of tax increment revenues received.
38(4) The amount of revenues expended for low- and
39moderate-income housing.
P15 1(5) An assessment of the status regarding completion of the
2authority’s projects.
3(6) The amount of revenues expended to assist private
4businesses.
5(d) If the authority fails to provide the annual report required
6by subdivision (a), the authority shall not spend any funds received
7pursuant to a resolution adopted pursuant to subdivision (d) of
8Sectionbegin delete 62005.end deletebegin insert
62005 until the authority has provided the report,
9except for funds necessary to carry out its obligation under Part
102 (commencing with Section 62100).end insert
11(e) Every 10 years, at the public hearing held pursuant to
12subdivision (b), the authority shall conduct a protest proceeding
13to consider whether the property owners and residents within the
14plan area wish to present oral or written protests against the
15authority. Notice of this protest proceeding shall be included in
16the written notice of the hearing on the annual report and shall
17inform the property owner and resident of his or her right to submit
18an oral or written protest before the close of the public hearing.
19The protest may state that the property owner or resident objects
20to the authority taking action to implement the plan on and after
21the date of the
election described in subdivision (f). The authority
22shall consider all written and oral protests received prior to the
23close of the public hearing.
24(f) If there is a majority protest, the authority shall not take any
25further action to implement the plan on and after the date the
26existence of a majority protest is determined. If between 25 percent
27and 50 percent of the property owners and residents file protests,
28then the authority shall call an election of the property owners and
29residents in the area covered by the plan, and shall not initiate or
30authorize any new projects until the election is held. A majority
31protest exists if protests have been filed representing over 50
32percent of the combined number of property owners and residents,
33at least 18 years of age or older, in the area.
34(g) An election required pursuant to subdivision (f) shall be held
35within 90 days of the public hearing and may be held by mail-in
36ballot. The authority shall adopt, at a duly noticed public hearing,
37procedures for holding this election.
38(h) If a majority of the property owners and residents vote
39against thebegin delete authority,end deletebegin insert plan,end insert then the authority shall not take any
40further action to implement the plan on and after the date of the
P16 1election held pursuant to subdivision (e). This section shall not
2prevent the authority from taking any and all actions and
3appropriating and expending funds, including, but not limited to,
4any and all payments on bonded or contractual
indebtedness, to
5carry out and complete projects for which expenditures of any kind
6had been made prior to the date of the election and any
7expendituresbegin insert for obligationsend insert required bybegin insert Part 2 (commencing withend insert
8 Sectionbegin delete 62100end deletebegin insert 62100)end insert that were incurred prior to the date of the
9election.
(a) Every five years, beginning in the calendar year in
11which the authority has allocated a cumulative total of more than
12one million dollars ($1,000,000) in tax increment revenues,
13including any proceeds of a debt issuance, for the purposes of
14subdivision (c) of Section 62003, the authority shall contract for
15an independent audit to determine compliance with the affordable
16housing requirements of Chapter 1 (commencing with Section
1762100) and
Chapter 2 (commencing with Section 62115) of Part
182, including provisions to ensure that the requirements are met
19within each five-year period covered by thebegin delete audit.end deletebegin insert audit and
20completed no later than the time limit established pursuant to
21subdivision (g) of Section 62003.end insert The audit shall be conducted
22according to guidelines established by the Controller, which shall
23be established on or before December 31, 2021. A copy of the
24completed audit shall be provided to the Controller. The Controller
25shall not be required to review and approve the completed audits.
26(b) Where the audit demonstrates a failure to comply with the
27requirements of Chapter 1 (commencing with Section
62100) and
28Chapter 2 (commencing with Section 62115) of Part 2, the
29authority shall adopt and submit to the Controller, as part of the
30audit, a plan to achieve compliance with those provisions as soon
31as feasible, but in not less than two years following the audit
32findings. The Controller shall review and approve the compliance
33plan, and require the compliance plan to stay in effect until
34compliance is achieved. The Controller shall ensure that the
35compliance plan includes one or more of the following means of
36achieving compliance:
37(1) The expenditure of an additional 10 percent of gross tax
38increment revenue on increasing, preserving, and improving the
39supply of low-income housing.
P17 1(2) An increase in the production, by an additional 10 percent,
2of housing for very low
income households as required by
3paragraph (2) of subdivision (b) of Section 62120.
4(3) The targeting of expenditures pursuant to Section 62100
5exclusively to rental housing affordable to, and occupied by,
6persons of very low and extremely low income.
7(c) If an authority is required to conduct an audit pursuant to
8subdivision (a) in advance of the issuance of the Controller’s
9guidelines, then it shall prepare an updated audit pursuant to the
10Controller’s guidelines on or before January 1, 2023.
(a) If an authority fails to provide a copy of the
12completed audit to the Controller as required by paragraph (2) of
13subdivision (c) within 20 days following receipt of a written notice
14of the failure from the Controller, the authority shall forfeit to the
15state:
16(1) Two thousand five hundred dollars ($2,500) in the case of
17an authority with a total revenue, in the prior year, of less than one
18hundred thousand dollars ($100,000), as reported in the Controller’s
19annual financial reports.
20(2) Five thousand five hundred dollars ($5,500) in the case of
21an authority with a total revenue, in the prior year, of
at least one
22hundred thousand dollars ($100,000) but less than two hundred
23fifty thousand dollars ($250,000), as reported in the Controller’s
24annual financial reports.
25(3) Ten thousand dollars ($10,000) in the case of an authority
26with a total revenue, in the prior year, of at least two hundred fifty
27thousand dollars ($250,000), as reported in the Controller’s annual
28financial reports.
29(b) If an authority fails to provide a copy of the completed audit
30to the Controller as required by paragraph (2) of subdivision (c)
31within 20 days after receipt of a written notice pursuant to
32subdivision (a) for two consecutive years, the authority shall forfeit
33an amount that is double the amount of the forfeiture assessed
34pursuant to subdivision (a).
35(c) (1) If an authority fails to provide a copy of the completed
36audit to the Controller as required by paragraph (2) of subdivision
37(c) within 20 days after receipt of a written notice pursuant to
38subdivision (a) for three or more consecutive years, the authority
39shall forfeit an amount that is triple the amount of the forfeiture
40assessed pursuant to subdivision (a).
P18 1(2) The Controller shall conduct, or cause to be conducted, an
2independent financial audit report.
3(3) The authority shall reimburse the Controller for the cost of
4complying with this subdivision.
5(d) Upon the request of the Controller, the Attorney General
6shall bring an action for
the forfeiture in the name of the people
7of the State of California. If the Attorney General fails to respond
8to the request within 90 days of its receipt, then any other available
9remedies may be exercised.begin insert An action filed pursuant to this section
10to compel an agency to comply with this section is in addition to
11any other remedy and is not an exclusive means to compel
12compliance.end insert
13(e) Upon satisfactory showing of good cause, the Controller
14shall waive the forfeiture requirements of this section.
15
17
(a) Not less than 25 percent of all taxes that are
22allocated to the authority from any participating entity pursuant
23to Section 62005 shall be deposited into a separate Low and
24Moderate Income Housing Fund pursuant to Section 62101 and
25used by the authority for the purposes of increasing, improving,
26and preserving the community’s supply of low- and
27moderate-income housing available at affordable housing cost, as
28defined by the following sections of the Health and Safety Code:
29Section 50052.5, to persons and families of low or moderate
30income, as defined in Section 50093, lower income households,
31as defined by Section 50079.5, very low income households, as
32defined in Section 50105, and extremely low income households,
33as
defined by Section 50106, that is occupied by these persons and
34families unless the authority makes a finding that combining
35funding received under this program with other funding for the
36same purpose shall reduce administrative costs or expedite the
37construction of affordable housing. If the authority makes such a
38finding, then (1) an authority may transfer funding from the
39program adopted pursuant to subdivision (c) of Section 62003 to
40the housing authority within the territorial jurisdiction of the local
P19 1jurisdiction that created the authority or to the entity that received
2the housing assets of the former redevelopment agency pursuant
3to Section 34176 of the Health and Safety Code or to a private
4nonprofit housing developer, and (2) Section 34176.1 of the Health
5and Safety Code shall not apply to funds transferred. Funding shall
6be spent within the plan area in which the funds were generated.
7
Any recipient of funds transferred pursuant to this subdivision
8shall comply with all applicable provisions of this part.
9(b) In carrying out the purposes of this section, the authority
10may exercise any or all of its powers for the construction,
11rehabilitation, or preservation of affordable housing for extremely
12low, very low, low- and moderate-income persons or families,
13including the following:
14(1) Acquire real property or building sites subject to Section
1562112.
16(2) (A) Improve real property or building sites with onsite or
17offsite improvements, but only if both (i) the improvements are
18part of the new construction or rehabilitation of affordable housing
19units for low- or moderate-income
persons that are directly
20benefited by the improvements, and are a reasonable and
21fundamental component of the housing units, and (ii) the authority
22requires that the units remain available at affordable housing cost
23to, and occupied by, persons and families of extremely low, very
24low, low, or moderate income for the same time period and in the
25same manner as provided in subdivision (c) and paragraph (2) of
26subdivision (f) of Section 62101.
27(B) If the newly constructed or rehabilitated housing units are
28part of a larger project and the agency improves or pays for onsite
29or offsite improvements pursuant to the authority in this
30subdivision, the authority shall pay only a portion of the total cost
31of the onsite or offsite improvement. The maximum percentage
32of the total cost of the improvement paid for by the authority shall
33be
determined by dividing the number of housing units that are
34affordable to low- or moderate-income persons by the total number
35of housing units, if the project is a housing project, or by dividing
36the cost of the affordable housing units by the total cost of the
37project, if the project is not a housing project.
38(3) Donate real property to private or public persons or entities.
39(4) Finance insurance premiums necessary for the provision of
40insurance during the construction or rehabilitation of properties
P20 1that are administered by governmental entities or nonprofit
2organizations to provide housing for lower income households, as
3defined in Section 50079.5 of the Health and Safety Code,
4including rental properties, emergency shelters, transitional
5housing, or special residential care
facilities.
6(5) Construct buildings or structures.
7(6) Acquire buildings or structures.
8(7) Rehabilitate buildings or structures.
9(8) Provide subsidies to, or for the benefit of, extremely low
10income households, as defined by Section 50106 of the Health and
11Safety Code, very low income households, as defined by Section
1250105 of the Health and Safety Code, lower income households,
13as defined by Section 50079.5 of the Health and Safety Code, or
14persons and families of low or moderate income, as defined by
15Section 50093 of the Health and Safety Code, to the extent those
16households cannot obtain housing at affordable costs on the open
17market. Housing units
available on the open market are those units
18developed without direct government subsidies.
19(9) Develop plans, pay principal and interest on bonds, loans,
20advances, or other indebtedness, or pay financing or carrying
21charges.
22(10) Maintain the community’s supply of mobilehomes.
23(11) Preserve the availability to lower income households of
24affordable housing units in housing developments that are assisted
25or subsidized by public entities and that are threatened with
26imminent conversion to market rates.
27(c) The authority may use these funds to meet, in whole or in
28part, the replacement housing provisions in Section 62120.
29However, this section shall not be
construed as limiting in any way
30the requirements of that section.
31(d) The authority shall use these funds inside the plan area.
32(e) The Legislature finds and declares that expenditures or
33obligations incurred by the authority pursuant to this section shall
34constitute an indebtedness of the plan area.
35(f) (1) (A) An action to compel compliance with the
36requirement of this section to deposit not less than 25 percent of
37all taxes that are allocated to the authority pursuant to Section
3862005 in the Low and Moderate Income Housing Fund shall be
39commenced within 10 years of the alleged violation. A cause of
40action for a violation accrues on the last day of the fiscal year in
P21 1which the funds were required to be deposited in the Low and
2Moderate Income Housing Fund.
3(B) An action to compel compliance with the requirement of
4this section that money deposited in the Low and Moderate Income
5Housing Fund be used by the agency for purposes of increasing,
6improving, and preserving the community’s supply of low- and
7moderate-income housing available at affordable housing cost
8shall be commenced within 10 years of the alleged violation. A
9cause of action for a violation accrues on the date of the actual
10expenditure of the funds.
11(C) An agency found to have deposited less into the Low and
12Moderate Income Housing Fund than mandated by Section 62101
13or to have spent money from the Low and Moderate Income
14Housing Fund for purposes other than increasing, improving, and
15preserving the community’s supply of low- and moderate-income
16housing, as mandated by this section, shall repay the funds with
17interest
in one lump sum pursuant to Section 970.4 or 970.5 or
18may do either of the following:
19(i) Petition the court under Section 970.6 for repayment in
20installments.
21(ii) Repay the portion of the judgment due to the Low and
22Moderate Income Housing Fund in equal installments over a period
23of five years following the judgment.
24(2) Repayment shall not be made from the funds required to be
25set aside or used for low- and moderate-income housing pursuant
26to this section.
27(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
28paragraph (1), all costs, including reasonable attorney’s fees if
29included in the judgment, are due and shall be paid upon entry of
30judgment
or order.
31(4) Except as otherwise provided in this subdivision, Chapter
322 (commencing with Section 970) of Part 5 of Division 3.6 of Title
331 for the enforcement of a judgment against a local public entity
34applies to a judgment against a local public entity that violates this
35section.
36(5) This subdivision applies to actions filed on and after January
371, 2016.
38(6) The limitations period specified in subparagraphs (A) and
39(B) of paragraph (1) does not apply to a cause of action brought
P22 1pursuant to Chapter 9 (commencing with Section 860) of Title 10
2of Part 2 of the Code of Civil Procedure.
(a) The funds that are required by Section 62100 or
462103 to be used for the purposes of increasing, improving, and
5preserving the community’s supply of low- and moderate-income
6housing shall be held in a separate Low and Moderate Income
7Housing Fund until used.
8(b) Any interest earned by the Low and Moderate Income
9Housing Fund and any repayments or other income to the authority
10for loans, advances, or grants, of any kind from the Low and
11Moderate Income Housing Fund, shall accrue to and be deposited
12in, the fund and may only be used in the manner prescribed for the
13Low and Moderate Income Housing Fund.
14(c) The moneys in the Low and Moderate Income Housing Fund
15shall be used to increase, improve, and preserve the supply of low-
16and moderate-income housing within the territorial jurisdiction of
17the authority.
18(d) It is the intent of the Legislature that the Low and Moderate
19Income Housing Fund be used to the maximum extent possible to
20defray the costs of production, improvement, and preservation of
21low- and moderate-income housing and that the amount of money
22spent for planning and general administrative activities associated
23with the development, improvement, and preservation of that
24housing not be disproportionate to the amount actually spent for
25the costs of production, improvement, or preservation of that
26housing. The authority shall determine annually that the planning
27and administrative expenses are necessary for the
production,
28improvement, or preservation of low- and moderate-income
29housing.
30(e) (1) Planning and general administrative costs that may be
31paid with moneys from the Low and Moderate Income Housing
32Fund are those expenses incurred by the authority that are directly
33related to the programs and activities authorized under subdivision
34(e) of Section 62100 and are limited to the following:
35(A) Costs incurred for salaries, wages, and related costs of the
36authority’s staff or for services provided through interagency
37agreements, and agreements with contractors, including usual
38indirect costs related thereto.
39(B) Costs incurred by a nonprofit corporation which are not
40directly attributable to a
specific project.
P23 1(2) Legal, architectural, and engineering costs and other salaries,
2wages, and costs directly related to the planning and execution of
3a specific project that are authorized under subdivision (e) of
4Section 62100 and that are incurred by a nonprofit housing sponsor
5are not planning and administrative costs for the purposes of this
6section, but are instead project costs.
7(f) (1) The requirements of this subdivision apply to all new or
8substantially rehabilitated housing units developed or otherwise
9assisted with moneys from the Low and Moderate Income Housing
10Fund. Except to the extent that a longer period of time may be
11required by other provisions of law, the authority shall require that
12housing units subject to this subdivision shall remain
available at
13affordable housing cost to, and occupied by, persons and families
14of low or moderate income and very low income and extremely
15low income households for the longest feasible time, but for not
16less than the following periods of time:
17(A) Fifty-five years for rental units. However, the authority may
18replace rental units with equally affordable and comparable rental
19units in another location within the community if (i) the
20replacement units are available for occupancy prior to the
21displacement of any persons and families of low or moderate
22income residing in the units to be replaced, and (ii) the comparable
23replacement units are not developed with moneys from the Low
24and Moderate Income Housing Fund.
25(B) Forty-five years for owner-occupied units. However, the
26authority
may permit sales of owner-occupied units prior to the
27expiration of the 45-year period for a price in excess of that
28otherwise permitted under this subdivision pursuant to an adopted
29program which protects the agency’s investment of moneys from
30the Low and Moderate Income Housing Fund, including, but not
31limited to, an equity sharing program which establishes a schedule
32of equity sharing that permits retention by the seller of a portion
33of those excess proceeds based on the length of occupancy. The
34remainder of the excess proceeds of the sale shall be allocated to
35the authority and deposited in the Low and Moderate Income
36Housing Fund. Only the units originally assisted by the authority
37shall be counted towards the agency’s obligations under Section
3862102.
39(C) Fifteen years for mutual self-help housing units that are
40occupied by and
affordable to very low and low-income
P24 1households. However, the authority may permit sales of mutual
2self-help housing units prior to expiration of the 15-year period
3for a price in excess of that otherwise permitted under this
4subdivision pursuant to an adopted program that (i) protects the
5agency’s investment of moneys from the Low and Moderate
6Income Housing Fund, including, but not limited to, an equity
7sharing program that establishes a schedule of equity sharing that
8permits retention by the seller of a portion of those excess proceeds
9based on the length of occupancy, and (ii) ensures through a
10recorded regulatory agreement, deed of trust, or similar recorded
11instrument that if a mutual self-help housing unit is sold at any
12time after expiration of the 15-year period and prior to 45 years
13after the date of recording of the covenants or restrictions required
14pursuant to paragraph (2), the
authority recovers, at a minimum,
15its original principal from the Low and Moderate Income Housing
16Fund from the proceeds of the sale and deposits those funds into
17the Low and Moderate Income Housing Fund. The remainder of
18the excess proceeds of the sale not retained by the seller shall be
19allocated to the agency and deposited in the Low and Moderate
20Income Housing Fund. For the purposes of this subparagraph,
21“mutual self-help housing unit” means an owner-occupied housing
22unit for which persons and families of very low and low income
23contribute no fewer than 500 hours of their own labor in individual
24or group efforts to provide a decent, safe, and sanitary ownership
25housing unit for themselves, their families, and others authorized
26to occupy that unit. This subparagraph shall not preclude the
27authority and the developer of the mutual self-help housing units
28from agreeing to 45-year deed
restrictions.
29(2) If land on which those dwelling units are located is deleted
30from the plan area, the authority shall continue to require that those
31units remain affordable as specified in this subdivision.
32(3) The authority shall require the recording in the office of the
33county recorder of the following documents:
34(A) The covenants or restrictions implementing this subdivision
35for each parcel or unit of real property subject to this subdivision.
36The authority shall obtain and maintain a copy of the recorded
37covenants or restrictions for not less than the life of the covenant
38or restriction.
39(B) For all new or substantially rehabilitated units developed
40or
otherwise assisted with moneys from the Low and Moderate
P25 1Income Housing Fund, a separate document called “Notice of
2Affordability Restrictions on Transfer of Property,” set forth in
314-point type or larger. This document shall contain all of the
4following information:
5(i) A recitation of the affordability covenants or restrictions.
6The document recorded under this subparagraph shall be recorded
7concurrently with the covenants or restrictions recorded under
8subparagraph (A), the recitation of the affordability covenants or
9restrictions shall also reference the concurrently recorded
10document.
11(ii) The date the covenants or restrictions expire.
12(iii) The street address of the property, including, if applicable,
13the
unit number, unless the property is used to confidentially house
14victims of domestic violence.
15(iv) The assessor’s parcel number for the property.
16(v) The legal description of the property.
17(4) The authority shall require the recording of the document
18required under subparagraph (B) of paragraph (3) not more than
1930 days after the date of recordation of the covenants or restrictions
20required under subparagraph (A) of paragraph (3).
21(5) The county recorder shall index the documents required to
22be recorded under paragraph (3) by the authority and current owner.
23(6) Notwithstanding Section 27383, a county
recorder may
24charge all authorized recording fees to any party, including a public
25agency, for recording the document specified in subparagraph (B)
26of paragraph (3).
27(7) Notwithstanding any other law, the covenants or restrictions
28implementing this subdivision shall run with the land and shall be
29enforceable against any owner who violates a covenant or
30restriction and each successor in interest who continues the
31violation, by any of the following:
32(A) The authority.
33(B) The city or county that established the authority.
34(C) A resident of a unit subject to this subdivision.
35(D) A residents’
association with members who reside in units
36subject to this subdivision.
37(E) A former resident of a unit subject to this subdivision who
38last resided in that unit.
P26 1(F) An applicant seeking to enforce the covenants or restrictions
2for a particular unit that is subject to this subdivision, if the
3applicant conforms to all of the following:
4(i) Is of low or moderate income, as defined in Section 50093
5of the Health and Safety Code.
6(ii) Is able and willing to occupy that particular unit.
7(iii) Was denied occupancy of that particular unit due to an
8alleged breach of a covenant or restriction implementing
this
9subdivision.
10(G) A person on an affordable housing waiting list who is of
11low or moderate income, as defined in Section 50093, and who is
12able and willing to occupy a unit subject to this subdivision.
13(8) A dwelling unit shall not be counted as satisfying the
14 affordable housing requirements of this part, unless covenants for
15that dwelling unit are recorded in compliance with subparagraph
16(A) of paragraph (3).
17(9) Failure to comply with the requirements of subparagraph
18(B) of paragraph (3) shall not invalidate any covenants or
19restrictions recorded pursuant to subparagraph (A) of paragraph
20(3).
21(g) “Housing,” as used in this section, includes
residential hotels,
22as defined in subdivision (k) of Section 37912 of the Health and
23Safety Code. The definitions of “lower income households,” “very
24low income households,” and “extremely low income households”
25in Sections 50079.5, 50105, and 50106 of the Health and Safety
26Code shall apply to this section. “Longest feasible time,” as used
27in this section, includes, but is not limited to, unlimited duration.
28(h) “Increasing, improving, and preserving the community’s
29supply of low- and moderate-income housing,” as used in this
30section and in Section 62100, includes the preservation of rental
31housing units assisted by federal, state, or local government on the
32condition that units remain affordable to, and occupied by, low-
33and moderate-income households, including extremely low and
34very low income households, for the longest feasible time, but not
35less
than 55 years, beyond the date the subsidies and use restrictions
36could be terminated and the assisted housing units converted to
37market rate rentals. In preserving these units the authority shall
38require that the units remain affordable to, and occupied by, persons
39and families of low- and moderate-income and extremely low and
P27 1very low income households for the longest feasible time, but not
2less than 55 years.
3(i) Funds from the Low and Moderate Income Housing Fund
4shall not be used to the extent that other reasonable means of
5private or commercial financing of the new or substantially
6rehabilitated units at the same level of affordability and quantity
7are reasonably available to the agency or to the owner of the units.
8Prior to the expenditure of funds from the Low and Moderate
9Income Housing Fund for new or substantially rehabilitated
10housing
units, where those funds will exceed 50 percent of the
11cost of producing the units, the authority shall find, based on
12
substantial evidence, that the use of the funds is necessary because
13the authority or owner of the units has made a good faith attempt
14but has been unable to obtain commercial or private means of
15financing the units at the same level of affordability and quantity.
(a) Except as specified in subdivision (d), each
17authority shall expend over each 10-year period of the community
18revitalization plan the moneys in the Low and Moderate Income
19Housing Fund to assist housing for persons of low income and
20housing for persons of very low income in at least the same
21proportion as the total number of housing units needed that each
22of those income groups bears to the total number of units needed
23for persons of moderate, low, and very low income within the
24community, as those needs have been determined for the
25community pursuant to Section 65584. In determining compliance
26with this obligation, the authority may adjust the proportion by
27subtracting from the need identified for each income category, the
28number
of units for persons of that income category that are newly
29constructed over the duration of the implementation plan with
30other locally controlled government assistance and without agency
31assistance and that are required to be affordable to, and occupied
32by, persons of the income category for at least 55 years for rental
33housing and 45 years for ownership housing, except that in making
34an adjustment the agency may not subtract units developed
35pursuant to a replacement housing obligation under state or federal
36law.
37(b) Each authority shall expend over the duration of each plan,
38the moneys in the Low and Moderate Income Housing Fund to
39assist housing that is available to all persons regardless of age in
40at least the same proportion as the number of low-income
P28 1households with a member under 65 years of age bears
to the total
2number of low-income households of the community as reported
3in the most recent census of the United States Census Bureau.
4(c) An authority that has deposited in the Low and Moderate
5Income Housing Fund over the first five years of the period of a
6plan an aggregate that is less than two million dollars ($2,000,000)
7shall have an extra five years to meet the requirements of this
8section.
9(d) For the purposes of this section, “locally controlled” means
10government assistance where the city or county that created the
11authority or other local government entity has the discretion and
12the authority to determine the recipient and the amount of the
13assistance, whether or not the source of the funds or other
14assistance is from the state or federal
government. Examples of
15locally controlled government assistance include, but are not
16limited to, the Community Development Block Grant Program
17(42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county,
18the Home Investment Partnership Program (42 U.S.C. Sec. 12721
19et seq.) funds allocated to a city or county, fees or funds received
20by a city or county pursuant to a city or county authorized program,
21and the waiver or deferral of city or other charges.
Every community revitalization plan shall contain both
23 of the following:
24(1)
end delete
25begin insert(a)end insert A provision that requires, whenever dwelling units housing
26persons and families of low or moderate income are destroyed or
27removed from the low- and moderate-income housing market as
28part of a revitalization project, the authority to, within two years
29of such destruction or removal, rehabilitate, develop, or construct,
30or cause to be rehabilitated, developed,
or constructed, for rental
31or sale to persons and families of low or moderate income an equal
32number of replacement dwelling units at affordable housing costs,
33as defined by Section 50052.5 of the Health and Safety Code,
34within the territorial jurisdiction of the authority, in accordance
35with all of the provisions of Sections 62120 and 62120.5.
36(2)
end delete
37begin insert(b)end insert A provision that prohibits the number of housing units
38occupied by extremely low, very low-, and low-income households,
39including the number of bedrooms in those units, at the time the
P29 1plan is adopted, from being reduced in the plan area
during the
2effective period of the plan.
Programs to assist or develop low- and
4moderate-income housing pursuant to this part shall be entitled to
5priority consideration after a program implemented by a housing
6successor pursuant to Section 34176.1 of the Health and Safety
7Code for assistance in housing programs administered by the
8California Housing Finance Agency, the Department of Housing
9and Community Development, and other state agencies and
10departments, if those agencies or departments determine that the
11housing is otherwise eligible for assistance under a particular
12program.
The same notice requirements as specified in Section
1465863.10 shall apply to multifamily rental housing that receives
15financial assistance pursuant to Sections 62100 and 62101.
Notwithstanding Sections 62100 and 62101, assistance
17provided by an authority to preserve the availability to lower
18income households of affordable housing unitsbegin insert within the plan
19areaend insert which are assisted or subsidized by public entities and which
20are threatened with imminent conversion to market rates may be
21credited and offset against an agency’s obligations under Section
2262100.
(a) Except as otherwise provided in this subdivision,
24not later than six months following the close of any fiscal year of
25an authority in which excess surplus accumulates in the authority’s
26Low and Moderate Income Housing Fund, the authority may adopt
27a plan pursuant to this section for expenditure of all moneys in the
28Low and Moderate Income Housing Fund within five years from
29the end of that fiscal year. The plan may be general and need not
30be site-specific, but shall include objectives respecting the number
31and type of housing to be assisted, identification of the entities,
32which will administer the plan, alternative means of ensuring the
33affordability of housing units for the longest feasible time, as
34specified in
subdivision (e) of Section 62101 the income groups
35to be assisted, and a schedule by fiscal year for expenditure of the
36excess surplus.
37(b) The authority shall separately account for any excess surplus
38accumulated each year either as part of or in addition to a Low
39and Moderate Income Housing Fund.
P30 1(c) If the authority develops a plan for expenditure of excess
2surplus or other moneys in the Low and Moderate Income Housing
3Fund, a copy of that plan and any amendments to that plan shall
4be included in the authority’s annual report pursuant to Section
562006.
(a) (1) Upon failure of the authority to expend or
7encumber excess surplus in the Low and Moderate Income Housing
8Fund within one year from the date the moneys become excess
9surplus, as defined in paragraph (1) of subdivision (g), the authority
10shall do either of the following:
11(A) Disburse voluntarily its excess surplus to the county housing
12authority, a private nonprofit housing developer, or to another
13public agency exercising housing development powers within the
14territorial jurisdiction of the agency in accordance with subdivision
15(b).
16(B) Expend or encumber its excess
surplus within two additional
17years.
18(2) If an authority, after three years has elapsed from the date
19that the moneys become excess surplus, has not expended or
20encumbered its excess surplus, the authority shall be subject to
21sanctions pursuant to subdivision (e), until the authority has
22expended or encumbered its excess surplus plus an additional
23amount, equal to 50 percent of the amount of the excess surplus
24that remains at the end of the three-year period. The additional
25expenditure shall not be from the authority’s Low and Moderate
26Income Housing Fund, but shall be used in a manner that meets
27all requirements for expenditures from that fund.
28(b) The housing authority or other public agency to which the
29money is transferred shall utilize the moneys for the purposes of,
30and
subject to the same restrictions that are applicable to, the
31authority under this part, and for that purpose may exercise all of
32the powers of a housing authority under Part 2 (commencing with
33Section 34200) of Division 24 of the Health and Safety Code to
34an extent not inconsistent with these limitations.
35(c) Notwithstanding Section 34209 of the Health and Safety
36Code or any other law, for the purpose of accepting a transfer of,
37and using, moneys pursuant to this section, the housing authority
38of a county or other public agency may exercise its powers within
39the territorial jurisdiction of an authority located in that county.
P31 1(d) The amount of excess surplus that shall be transferred to the
2housing authority or other public agency because of a failure of
3the authority to expend or
encumber excess surplus within one
4year shall be the amount of the excess surplus that is not so
5expended or encumbered. The housing authority or other public
6agency to which the moneys are transferred shall expend or
7encumber these moneys for authorized purposes not later than
8three years after the date these moneys were transferred from the
9Low and Moderate Income Housing Fund.
10(e) (1) Until a time when the authority has expended or
11encumbered excess surplus moneys pursuant to subdivision (a),
12the authority shall be prohibited from encumbering any funds or
13expending any moneys derived from any source, except that the
14authority may encumber funds and expend moneys to pay the
15following obligations, if any, that were incurred by the authority
16prior to three years from the date the moneys became excess
17surplus:
18(A) Bonds, notes, interim certificates, debentures, or other
19obligations issued by an authority, whether funded, refunded,
20assumed, or otherwise, pursuant to subdivision (f) of Section
2162003.
22(B) Loans or moneys advanced to the authority, including, but
23not limited to, loans from federal, state, or local agencies, or a
24private entity.
25(C) Contractual obligations which, if breached, could subject
26the authority to damages or other liabilities or remedies.
27(D) Indebtedness incurred pursuant to Section 62100 or 62104.
28(E) An amount, to be expended for the operation and
29administration of the authority, that
may not exceed 75 percent of
30the amount spent for those purposes in the preceding fiscal year.
31(2) This subdivision shall not be construed to prohibit the
32expenditure of excess surplus funds or other funds to meet the
33requirement in paragraph (2) of subdivision (a) that the agency
34spend or encumber excess surplus funds, plus an amount equal to
3550 percent of excess surplus, prior to spending or encumbering
36funds for any other purpose.
37(f) This section shall not be construed to limit any authority that
38
an authority may have under other provisions of this part to contract
39with a housing authority, private nonprofit housing developer, or
40other public agency exercising housing developer powers, for
P32 1increasing or improving the community’s supply of low- and
2moderate-income housing.
3(g) For purposes of this section:
4(1) “Excess surplus” means any unexpended and unencumbered
5amount in an authority’s Low and Moderate Income Housing Fund
6that exceeds the greater of one million dollars ($1,000,000) or the
7aggregate amount deposited into the Low and Moderate Income
8Housing Fund pursuant to Sections 62100 and 62104 during the
9authority’s preceding four fiscal years. The first fiscal year to be
10included in this computation is the 2016-17 fiscal year, and the
11first
date on which an excess surplus may exist is July 1, 2021.
12(2) Moneys shall be deemed encumbered if committed pursuant
13to a legally enforceable contract or agreement for expenditure for
14purposes specified in Sections 62100 and 62101.
15(3) (A) For purposes of determining whether an excess surplus
16exists, it is the intent of the Legislature to give credit to authorities
17which convey land for less than fair market value, on which low-
18and moderate-income housing is built or is to be built if at least
1949 percent of the units developed on the land are available at an
20affordable housing cost to lower income households for at least
21the time specified in subdivision (e) of Section 62101, and
22otherwise comply with all of the provisions of this division
23applicable to
expenditures of moneys from a low- and
24moderate-income housing fund established pursuant to Section
2562101. Therefore, for the sole purpose of determining the amount,
26if any, of an excess surplus, an authority may make the following
27calculation: if an authority sells, leases, or grants land acquired
28with moneys from the Low and Moderate Income Housing Fund,
29established pursuant to Section 62101, for an amount which is
30below fair market value, and if at least 49 percent of the units
31constructed or rehabilitated on the land are affordable to lower
32income households, as defined in Section 50079.5 of the Health
33and Safety Code, the difference between the fair market value of
34the land and the amount the authority receives may be subtracted
35from the amount of moneys in an agency’s Low and Moderate
36Income Housing Fund.
37(B) If taxes that are
deposited in the Low and Moderate Income
38Housing Fund are used as security for bonds or other indebtedness,
39the proceeds of the bonds or other indebtedness, and income and
40expenditures related to those proceeds, shall not be counted in
P33 1determining whether an excess surplus exists. The unspent portion
2of the proceeds of bonds or other indebtedness, and income related
3thereto, shall be excluded from the calculation of the unexpended
4and unencumbered amount in the Low and Moderate Income
5Housing Fund when determining whether an excess surplus exists.
6(C) This subdivision shall not be construed to restrict the
7authority of an authority provided in any other provision of this
8part to expend funds from the Low and Moderate Income Housing
9Fund.
10(D) The Department of Housing and
Community Development
11shall develop and periodically revise the methodology to be used
12in the calculation of excess surplus as required by this section. The
13director shall appoint an advisory committee to advise in the
14development of this methodology. The advisory committee shall
15include department staff, affordable housing advocates, and
16representatives of the housing successors of former redevelopment
17agencies, the League of California Cities, the California Society
18of Certified Public Accountants, the Controller, and any other
19authorities or persons interested in the field that the director deems
20necessary and appropriate.
21(h) Communities in which an agency has disbursed excess
22surplus funds pursuant to this section shall not disapprove a low-
23or moderate-income housing project funded in whole or in part by
24the excess surplus funds
if the project is consistent with applicable
25building codes and the land use designation specified in any
26element of the general plan as it existed on the date the application
27was deemed complete. A local agency may require compliance
28with local development standards and policies appropriate to and
29consistent with meeting the quantified objectives relative to the
30development of housing, as required in housing elements of the
31community pursuant to subdivision (b) of Section 65583.
(a) Notwithstanding Sections 50079.5, 50093, and
3350105 of the Health and Safety Code, for purposes of providing
34assistance to mortgagors participating in a homeownership
35residential mortgage revenue bond program pursuant to Section
3633750 of the Health and Safety Code, or a home financing program
37pursuant to Section 52020 of the Health and Safety Code, or a
38California Housing Finance Agency home financing program,
39“area median income” means the highest of the following:
40(1) Statewide median household income.
P34 1(2) Countywide median household income.
2(3) Median family income for the area, as determined by the
3United States Department of Housing and Urban Development
4with respect to either a standard metropolitan statistical area or an
5area outside of a standard metropolitan statistical area.
6Nothing in Section 50093 of the Health and Safety Code shall
7prevent the agency from adopting separate family size adjustment
8factors or programmatic definitions of income to qualify
9households, persons, and families for the programs of the agency.
10(b) To the extent that any portion of the Low and Moderate
11Income Housing Fund is expended to provide assistance to
12mortgagors participating in programs whose income exceeds that
13of
persons and families of low or moderate income, as defined in
14Section 50093 of the Health and Safety Code, the authority shall,
15within two years, expend or enter into a legally enforceable
16agreement to expend twice that sum exclusively to increase and
17improve the community’s supply of housing available at an
18affordable housing cost, as defined in Section 50052.5, to lower
19income households, as defined in Section 50079.5 of the Health
20and Safety Code, of which at least 50 percent shall be very low
21income households, as defined in Section 50105 of the Health and
22Safety Code.
23(c) In addition to the requirements of subdivision (c) of Section
2433413 of the Health and Safety Code, the authority shall require
25that the lower and very low income dwelling units developed
26pursuant to this subdivision remain available at an affordable
27housing cost
to lower and very low income households for at least
28
45 years, except as to dwelling units developed with the assistance
29of federal or state subsidy programs which terminate in a shorter
30period and cannot be extended or renewed.
31(d) The authority shall include within the report required by
32Section 62008 information with respect to compliance by the
33agency with the requirements of this subdivision.
The covenants or restrictions imposed by the authority
35pursuant to subdivision (f) of Section 62101 may be subordinated
36under any of the following alternatives:
37(a) To a lien, encumbrance, or regulatory agreement under a
38federal or state program when a federal or state agency is providing
39financing, refinancing, or other assistance to the housing units or
40parcels, if the federal or state agency refuses to consent to the
P35 1seniority of the authority’s covenant or restriction on the basis that
2it is required to maintain its lien, encumbrance, or regulatory
3agreement or restrictions due to statutory or regulatory
4requirements, adopted or approved policies, or other guidelines
5pertaining
to the financing, refinancing, or other assistance of the
6housing units or parcels.
7(b) To a lien, encumbrance, or regulatory agreement of a lender
8other than the authority or from a bond issuance providing
9financing, refinancing, or other assistance of owner-occupied units
10or parcels where the authority makes a finding that an economically
11feasible alternative method of financing, refinancing, or assisting
12the units or parcels on substantially comparable terms and
13conditions, but without subordination, is not reasonably available.
14(c) To an existing lien, encumbrance, or regulatory agreement
15of a lender other than the authority or from a bond issuance
16providing financing, refinancing, or other assistance of rental units,
17where the agency’s funds are utilized for
rehabilitation of the rental
18units.
19(d) To a lien, encumbrance, or regulatory agreement of a lender
20other than the authority or from a bond issuance providing
21financing, refinancing, or other assistance of rental units or parcels
22where the authority makes a finding that an economically feasible
23alternative method of financing, refinancing, or assisting the units
24or parcels on substantially comparable terms and conditions, but
25without subordination, is not reasonably available, and where the
26authority obtains written commitments reasonably designed to
27protect the authority’s investment in the event of default, including,
28but not limited to, any of the following:
29(1) A right of the authority to cure a default on the loan.
30(2) A right of the authority to negotiate with the lender after
31notice of default from the lender.
32(3) An agreement that if prior to foreclosure of the loan, the
33authority takes title to the property and cures the default on the
34loan, the lender will not exercise any right it may have to accelerate
35the loan by reason of the transfer of title to the authority.
36(4) A right of the authority to purchase property from the owner
37at any time after a default on the loan.
Subsidies provided pursuant to subdivision (e) of
39Section 62100 may include payment of a portion of the principal
40and interest on bonds issued by a public agency to finance housing
P36 1for persons and families specified in that paragraph if the authority
2ensures by contract that the benefit of the subsidy will be passed
3on to those persons and families in the form of lower housing costs.
For each interest in real property acquired using moneys
5from the Low and Moderate Income Housing Fund, the authority
6shall, within five years from the date it first acquires the property
7interest for the development of housing affordable to persons and
8families of low and moderate income, initiate activities consistent
9with the development of the property for that purpose. These
10activities may include, but are not limited to, zoning changes or
11agreements entered into for the development and disposition of
12the property. If these activities have not been initiated within this
13period, the city or county that created the authority may, by
14resolution, extend the period during which the authority may retain
15the property for one additional period
not to exceed five years.
16The resolution of extension shall affirm the intention of the city
17or county that the property be used for the development of housing
18affordable to persons and families of low and moderate income.
19In the event that physical development of the property for this
20purpose has not begun by the end of the extended period, or if the
21authority does not comply with this requirement, the property shall
22be sold and the moneys from the sale, less reimbursement to the
23agency for the cost of the sale, shall be deposited in the authority’s
24Low and Moderate Income Housing Fund.
25
The authority shall prepare a feasible method or plan
29for relocation of all of the following:
30(a) Families and persons to be temporarily or permanently
31displaced from housing facilities in the plan area.
32(b) Nonprofit local community institutions to be temporarily or
33permanently displaced from facilities actually used for institutional
34purposes in the project area.
35(c) The relocation plan required by this section shall comply
36with the relocation planbegin insert and assistanceend insert
requirements of Chapter
3716 (commencing with Section 7260) of Division 7 of Title 1.
The city, county, or city and county that created the
39authority shall insure that the method or plan of the authority for
40the relocation of families or single persons to be displaced by a
P37 1revitalization project shall provide that no persons or families of
2low and moderate income shall be displaced unless and until there
3is a suitable housing unit available and ready for occupancy by
4the displaced person or family at rents comparable to those at the
5time of theirbegin delete displacement.end deletebegin insert displacement and that all other
6requirements of Chapter 16 (commencing with Section 7260) of
7Division 7 of Title 1 of the Government Code are
met.end insert The housing
8units shall be suitable to the needs of those displaced persons or
9families and must be decent, safe, sanitary, and otherwise standard
10dwellings. The authority shall not displace the person or family
11until the housing units are available and ready for occupancy.
Whenever all or any portion of a revitalization plan
13area is developed with low- or moderate-income housing units and
14whenever any low- or moderate-income housing units are
15developed with any authority assistance or pursuant to Section
1662120, the authority shall require in the recorded covenants for
17those units that the housing be made available for rent or purchase
18to the persons and families of low or moderate income displaced
19by the revitalization project. Those persons and families shall be
20given priority in renting or buying that in advance of marketing
21the units to the general public. Failure to give that priority shall
22not affect the validity of title to real property; however, a unit may
23not be counted as a replacement or production
unit in the event of
24noncompliance with this provision. The authority shall keep a list
25of persons and families of low and moderate income displaced by
26the revitalization project who are to be given priority, and may
27establish reasonable rules for determining the order or priority on
28the list. The list shall be provided to the owner of those properties
29at or before any certificate of occupancy is issued.
If insufficient suitable housing units are available in
31the plan area for low- and moderate-income persons and families
32to be displaced from a community revitalization area, the city
33council or board of supervisors that created the authority shall
34assure that sufficient land be made availablebegin delete in the communityend delete
35begin insert within its territorial jurisdictionend insert for suitable housing for rental or
36purchase by low- and moderate-income persons and families. If
37insufficient suitable housing units are available in the community
38for use by persons and families of low and moderate income
39displaced by the revitalization
project, the authority may, to the
40extent of that deficiency, direct or cause the development,
P38 1rehabilitation, or construction of housing units within the
2community, both inside and outside of revitalization plan areas.
Permanent housing facilities shall be made available
4within two years from the time occupants are displaced and that
5pending the development of such facilities there will be available
6to such displaced occupants adequate temporary housing facilities
7at rents comparable tobegin delete those in the community at the time of their begin insert the units from which the displaced occupants were
8displacement.end delete
9displaced.end insert
(a) Whenever dwelling units housing persons and
11families of low or moderate income are destroyed or removed from
12the low- and moderate-income housing market as part of a
13revitalization project that is subject to a written agreement with
14the authority or where financial assistance has been provided by
15the authority, the authority shall, within two years of the destruction
16or removal, rehabilitate, develop, or construct, or cause to be
17rehabilitated, developed, or constructed, for rental or sale to persons
18and families of low or moderate income, an equal number of
19replacement dwelling units that have an equal or greater number
20of bedrooms as those destroyed or removed units at affordable
21housing costs within the territorial
jurisdiction of the authority.
22One hundred percent of the replacement dwelling units shall be
23available at an affordable housing cost to persons in the same or
24a lower income category (extremely low, low, very low, or
25moderate), as the persons displaced from those destroyed or
26removed units.
27(b) (1) Prior to the time limit on the effectiveness of the
28community revitalization plan established pursuant to subdivision
29begin delete (f) of Section 62004end deletebegin insert end insertbegin insert(g) of Section 62003end insert at least 30 percent of all
30new and substantially rehabilitated dwelling units developed by
31an
authority shall be available at affordable housing cost to, and
32occupied by, persons and families of low or moderate income. Not
33less than 50 percent of the dwelling units required to be available
34at affordable housing cost to, and occupied by, persons and families
35of low or moderate income shall be available at affordable housing
36cost to, and occupied by, very low income households.
37(2) (A) (i) Prior to the time limit on the effectiveness of the
38revitalization plan established pursuant to subdivisionbegin delete (f) of Section begin insert (g) of Section 62003end insert at least 15 percent of all new and
3962003end delete
40substantially rehabilitated dwelling units developed
within a plan
P39 1area under the jurisdiction of an authority by public or private
2entities or persons other than the authority shall be available at
3affordable housing cost to, and occupied by, persons and families
4of low or moderate income. Not less than 40 percent of the
5dwelling units required to be available at affordable housing cost
6to, and occupied by, persons and families of low or moderate
7income shall be available at affordable housing cost to, and
8occupied by, very low income households.
9(ii) To satisfy this paragraph, in whole or in part, the authority
10may cause, by regulation or agreement, to be available, at an
11affordable housing cost, to, and occupied by, persons and families
12of low or moderate income or to very low income households, as
13applicable, two units outside a project area for each unit that
14otherwise would
have been required to be available inside a project
15area.
16(iii) “Substantially rehabilitated dwelling units” means all units
17substantially rehabilitated, with authority assistance.
18(iv) As used in this paragraph and in paragraph (1), “substantial
19rehabilitation” means rehabilitation, the value of which constitutes
2025 percent of the after rehabilitation value of the dwelling, inclusive
21
of the land value.
22(B) To satisfy the requirements of paragraph (1) and
23subparagraph (A), the authority may purchase, or otherwise acquire
24or cause by regulation or agreement the purchase or other
25acquisition of, long-term affordability covenants on multifamily
26units that restrict the cost of renting or purchasing those units that
27either: (i) are not presently available at affordable housing cost to
28persons and families of low- or very low income households, as
29applicable; or (ii) are units that are presently available at affordable
30housing cost to this same group of persons or families, but are
31units that the authority finds, based upon substantial evidence,
32after a public hearing, cannot reasonably be expected to remain
33affordable to this same group of persons or families.
34(C) To satisfy the requirements of paragraph (1) and
35subparagraph (A), the long-term affordability covenants purchased
36or otherwise acquired pursuant to subparagraph (B) shall be
37required to be maintained on dwelling units at affordable housing
38cost to, and occupied by, persons and families of low or very low
39income, for the longest feasible time but not less than 55 years for
40rental units and 45 years for owner-occupied units. Not more than
P40 150 percent of the units made available pursuant to paragraph (1)
2and subparagraph (A) may be assisted through the purchase or
3acquisition of long-term affordability covenants pursuant to
4subparagraph (B). Not less than 50 percent of the units made
5available through the purchase or acquisition of long-term
6affordability covenants pursuant to subparagraph (B) shall be
7available at affordable housing cost to, and occupied by, very low
8income
households.
9(D) To satisfy the requirements of paragraph (1) and
10subparagraph (A), each mutual self-help housing unit, as defined
11in subparagraph (C) of paragraph (1) of subdivision (f) of Section
1262101, that is subject to a 15-year deed restriction shall count as
13one-third of a unit.
14(3) The requirements of this subdivision shall apply
15independently of the requirements of subdivision (a). The
16requirements of this subdivision shall apply, in the aggregate, to
17housing made available pursuant to paragraphs (1) and (2),
18respectively, and not to each individual case of rehabilitation,
19development, or construction of dwelling units, unless an agency
20determines otherwise.
21(4) Each authority, as part of the community revitalization
and
22investment plan required by Section 62003, shall adopt a plan to
23comply with the requirements of this subdivision. The plan shall
24be consistent
with the community’s housing element. The plan
25shall be reviewed and, if necessary, amended at least in conjunction
26with the plan implementation cycle. The plan shall ensure that the
27requirements of this subdivision are met every 10 years. If the
28requirements of this subdivision are not met by the end of each
2910-year period, the agency shall meet these goals on an annual
30basis until the requirements for the 10-year period are met. If the
31agency has exceeded the requirements within the 10-year period,
32the agency may count the units that exceed the requirement in
33order to meet the requirements during the next 10-year period.
34(c) (1) The authority shall require
all replacement dwelling
35units and other dwelling units rehabilitated, developed, constructed,
36or price restricted pursuant to subdivision (a) or (b) remain
37available at affordable housing cost to, and occupied by, persons
38and families of extremely low income, low-income,
39moderate-income, and very low income households, respectively,
40for the longest feasible time, but for not less than 55 years for
P41 1rental units, 45 years for home ownership units, and 15 years for
2mutual self-help housing units, as defined in subparagraph (C) of
3paragraph (1) of subdivision (f) of Section 62101, except as set
4forth in paragraph (2). Nothing in this paragraph precludes the
5agency and the developer of the mutual self-help housing units
6from agreeing to 45-year deed restrictions.
7(2) Notwithstanding paragraph (1), the authority may permit
8sales
of owner-occupied units prior to the expiration of the 45-year
9period, and mutual self-help housing units prior to the expiration
10of the 15-year period, established by the authority for a price in
11excess of that otherwise permitted under this subdivision pursuant
12to an adopted program that protects the authority’s investment of
13moneys from the Low and Moderate Income Housing Fund,
14including, but not limited to, an equity
sharing program that
15establishes a schedule of equity sharing that permits retention by
16the seller of a portion of those excess proceeds, based on the length
17of occupancy. The remainder of the excess proceeds of the sale
18shall be allocated to the authority, and deposited into the Low and
19Moderate Income Housing Fund. The authority shall, within three
20years from the date of sale pursuant to this paragraph of each home
21ownership or mutual self-help housing unit subject to a 45-year
22deed restriction, and every third mutual self-help housing unit
23subject to a 15-year deed restriction, expend funds to make
24affordable an equal number of units at the same or lowest income
25level as the unit or units sold pursuant to this paragraph, for a
26period not less than the duration of the original deed restrictions.
27Only the units originally assisted by the authority shall be counted
28towards the
authority’s obligations under Section 62120.
29(3) The requirements of this section shall be made enforceable
30in the same manner as provided in paragraph (7) of subdivision
31(f) of Section 62101.
32(4) If land on which the dwelling units required by this section
33are located is deleted from the plan area, the authority shall
34continue to require that those units remain affordable as specified
35in this subdivision.
36(5) For each unit counted towards the requirements of
37subdivisions (a) and (b), the authority shall require the recording
38in the office of the county recorder of covenants or restrictions
39that ensure compliance with this subdivision and shall comply
P42 1with the requirements of paragraphs (3) and (4) of subdivision
(f)
2of Section 62101.
3(d) Except as otherwise authorized by law, this section does not
4authorize an authority to operate a rental housing development
5beyond the period reasonably necessary to sell or lease the housing
6development.
7(e) Notwithstanding subdivision (a), the authority may replace
8destroy or remove dwelling units with a fewer number of
9replacement dwelling units if the replacement dwelling units meet
10both of the following criteria:
11(1) The total number of bedrooms in the replacement dwelling
12units equals or exceeds the number of bedrooms in the destroyed
13or removed units. Destroyed or removed units having one or no
14bedroom are deemed for this purpose to have one bedroom.
15(2) The replacement units are affordable to, and occupied by,
16the same income level of households as the destroyed or removed
17units.
18(f) “Longest feasible time,” as used in this section, includes,
19but is not limited to, unlimited duration.
(a) Not less than 30 days prior to the execution of
21an agreement for acquisition of real property, or the execution of
22an agreement for the disposition and development of property, or
23the execution of an owner participation agreement, which
24agreement would lead to the destruction or removal of dwelling
25units from the low- and moderate-income housing market, the
26authority shall adopt by resolution a replacement housing plan.
27
Not less than 30 days prior to adopting a replacement housing plan
28by resolution, the authority shall make available a draft of the
29proposed replacement housing plan for review and comment by
30property owners and residents within the plan area, any persons
31who have requested notice of that replacement housing plan, other
32public agencies, and the general public.
33The replacement housing plan shall include all of the following:
34(1) A description of the housing to be destroyed or removed,
35including the address, parcel number, number and size of units,
36whether the units are occupied, and if so, the income categories
37of the occupants, if that information is available, whether the units
38are rental or ownership, the rent levels or sale price of the units,
39and if the
units have existing affordable covenants, the nature and
40source of the subsidy and duration of the covenants.
P43 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.
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.
12(4) A 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 been obtained.
15(5) The timetable for meeting the plan’s relocation,
16rehabilitation, and replacement housing objectives. A dwelling
17unit whose replacement is required by Section 62120 but for which
18no replacement housing plan has been prepared, shall not be
19destroyed or removed from the low- and moderate-income housing
20market until the agency has by resolution adopted a replacement
21housing plan.
22(b) Nothing in this section shall prevent an authority from
23destroying or removing from the low- and moderate-income
24housing market a dwelling unit which the authority owns and which
25is an immediate
danger to health and safety. The authority shall,
26as soon as practicable, adopt by resolution a replacement housing
27plan with respect to that dwelling unit pursuant to this part.
An authority causing the rehabilitation, development,
29or construction of replacement dwelling units, other than
30single-family residences, pursuant to Section 62120, or pursuant
31to a replacement housing plan as required by Section 62120.5, or
32pursuant to provisions of a revitalization plan required by Section
3362103, primarily for persons of low income, as defined in Section
3450093 of the Health and Safety Code, shall give preference to those
35developments that are proposed to be organized as limited-equity
36housing cooperatives, when so requested as part of the public
37review, provided the project is achievable in an efficient and timely
38manner.
39The limited-equity housing cooperatives shall, in addition
to the
40provisions of Section 817 of the Civil Code, be organized so that
P44 1the consideration paid for memberships or shares by the first
2occupants following construction or acquisition by the corporation,
3including the principal amount of obligations incurred to finance
4the share or membership purchase, does not exceed 3 percent of
5the development cost or acquisition cost, or of the fair market value
6appraisal by the permanent lender, whichever is greater.
An authority shall provide relocation assistance and
8shall make all of the payments required by Chapter 16
9(commencing with Section 7260) of Division 7 of Title 1, including
10the making of those payments financed by the federal government.
11This section shall not be construed to limit any other authority
12which an authority may have to make other relocation assistance
13payments, or to make any relocation assistance payment in an
14amount which exceeds the maximum amount for that payment
15authorized by Chapter 16 (commencing with Section 7260) of
16Division 7 of Title 1.
In order to facilitate the rehousing of families and single
18persons displaced by any governmental action, an authority, at the
19request of the city council or board of supervisors that created the
20authority, may dispose of the real property acquired under the
21provisions of subdivision (b) of section 62201, by sale or long-term
22lease, for use as, or development of, housing for those displaced
23persons.
(a) An authority shall monitor, on an ongoing basis,
25any housing affordable to persons and families of low or moderate
26income developed or otherwise made available pursuant to any
27provisions of this part. As part of this monitoring, an authority
28shall require owners or managers of the housing to submit an
29annual report to the authority. The annual reports shall include for
30each rental unit the rental rate and the income and family size of
31the occupants, and for each owner-occupied unit whether there
32was a change in ownership from the prior year and, if so, the
33income and family size of the new owners. The income information
34required by this section shall be supplied by the tenant in a certified
35statement on a form provided by
the authority.
36(b) The data specified in subdivision (a) shall be obtained by
37the authority from owners and managers of the housing specified
38therein and current data shall be included in any reports required
39by law to be submitted to the Department of Housing and
40Community Development or the Controller. The information on
P45 1income and family size that is required to be reported by the owner
2or manager shall be supplied by the tenant and shall be the only
3information on income or family size that the owner or manager
4shall be required to submit on his or her annual report to the
5agency.
6(c) (1) The authority shall compile and maintain a database of
7existing, new, and substantially rehabilitated, housing units
8developed or otherwise assisted with moneys from
the Low and
9Moderate Income Housing Fund, or otherwise counted towards
10the requirements of subdivision (a) or (b) of Section 62120. The
11database shall be posted in an easily identifiable and accessible
12location on the authority’s Internet Web site and updated on an
13annual basis and shall include the date the database was last
14updated. The database shall require all of the following information
15for each owner-occupied unit or rental unit, or for each group of
16units, if more than one unit is subject to the same covenant:
17(A) The street address and the assessor’s parcel number of the
18property.
19(B) The size of each unit, measured by the number of bedrooms.
20(C) The year in which the construction or substantial
21rehabilitation
of the unit was completed.
22(D) The date of recordation and document number of the
23affordability covenants or restrictions required under subdivision
24(f) of Section 33334.3 of the Health and Safety Code.
25(E) The date on which the covenants or restrictions expire.
26(F) For owner-occupied units that have changed ownership
27during the reporting year, as described in subdivision (a), the date
28and document number of the new affordability covenants or other
29documents recorded to assure that the affordability restriction is
30enforceable and continues to run with the land.
31(G) Whether occupancy in the unit or units is restricted to any
32special population, including, but not
limited to, senior
citizens
33and persons with disabilities.
34(H) Whether occupancy in the unit or units is restricted to an
35extremely low, very low, low-, or moderate-income household.
36(2) Notwithstanding subparagraphs (A) and (D) of paragraph
37(1), the database shall omit any property used to confidentially
38house victims of domestic violence.
P46 1(3) Upon establishment of a database under this section, the
2authority shall provide reasonable notice to the community
3regarding the existence of the database.
4(d) The authority shall adequately fund its monitoring activities
5
as needed to insure compliance of applicable laws and agreements
6in relation to affordable units. For purposes of defraying the cost
7of complying with the requirements of this section and the changes
8in reporting requirements enacted by the act enacting this section,
9an authority may establish and impose fees upon owners of
10properties monitored pursuant to this section.
11
“Real property” means any of the following:
15(a) Land, including land under water and waterfront property.
16(b) Buildings, structures, fixtures, and improvements on the
17land.
18(c) Any property appurtenant to or used in connection with the
19land.
20(d) Every estate, interest, privilege, easement, franchise, and
21right in land, including rights-of-way, terms for years, and liens,
22charges, or encumbrances by way of judgment, mortgage, or
23otherwise and the indebtedness secured by those
liens.
Within the plan area or for purposes of revitalization
25an authority may:
26(a) Purchase, lease, obtain option upon, acquire by gift, grant,
27bequest, devise, or otherwise, any real or personal property, any
28interest in property, and any improvements on it, including
29repurchase of developed property previously owned by the
30authority. An authority shall obtain an appraisal from a qualified
31independent appraiser to determine the fair market value of
32property before the authority acquires or purchases real property.
33(b) Accept, at the request of the legislative body of the
34community, a conveyance of real property (located either
within
35or outside the plan area) owned by a public entity and declared
36surplus by the public entity, or owned by a private entity. The
37authority may dispose of that property to private persons or to
38public or private entities, by sale or long-term lease for
39development. All or any part of the funds derived from the sale or
40lease of that property may, at the discretion of the legislative body
P47 1of the community, be paid to the community, or to the public entity
2from which any of that property was acquired.
3(c) Sell, lease, grant, or donate real property owned or acquired
4by the authority in a plan area to a housing authority or to any
5public agency for public housing projects.
6(d) Offer for resale property acquired by an authority for
7rehabilitation and resale within one year after
completion of
8rehabilitation. Properties held by the authority in excess ofbegin insert aend insert
9 one-year period shall be listed in the authority’s annual report with
10information conveying the reasons that property remains unsold
11and indicating plans for its disposition.
12(e) Acquire real property by eminent domain, provided that
13authority is exercised within 12 years from the adoption of the
14plan.
15(1) Every plan adopted by an authority which contemplates
16property owner participation in the revitalization of the plan area
17shall contain alternative provisions for revitalization of the property
18if the owners fail to participate in the revitalization as agreed. Prior
19to the adoption of a plan, each
property owner whose property
20would be subject to acquisition by purchase or condemnation under
21the plan shall be sent a statement in nontechnical language and in
22a clear and coherent manner using words with common and
23everyday meaning to that effect attached to the notice of the hearing
24as required by subdivision (b) of Section 62004. Alternatively, a
25list or map of all properties which would be subject to acquisition
26by purchase or condemnation under the plan may be mailed to
27affected property owners with the notices of hearing pursuant to
28Section 62004.
29(2) Without the consent of an owner, an authority shall not
30acquire any real property on which an existing building is to be
31continued on its present site and in its present form and use unless
32that building requires structural alteration, improvement,
33modernization, or
rehabilitation, or the site or lot on which the
34building is situated requires modification in size, shape, or use, or
35it is necessary to impose upon that property any of the standards,
36restrictions, and controls of the plan and the owner fails or refuses
37to agree to participate in the plan.
38(3) Property already devoted to a public use may be acquired
39by the agency through eminent domain, but property of a public
40body shall not be acquired without its consent.
P48 1(4) An authority shall not acquire from any of its members or
2officers any property or interest in property except through eminent
3domain proceedings.
An authority shall not provide any form of direct
5assistance to:
6(a) An automobile dealership that will be or is on a parcel of
7land which has not previously been developed for urban use.
8(b) A development that will be or is on a parcel of land of five
9acres or more which has not previously been developed for urban
10use and that will, when developed, generate sales or use tax
11pursuant to Part 1.5 (commencing with Section 7200) of Division
122 of the Revenue and Taxation Code, unless the principal permitted
13use of the development is office, hotel, manufacturing, or industrial.
14For the purposes of this subdivision, a parcel shall
include land on
15an adjacent or nearby parcel on which a use exists that is necessary
16for the legal development of the parcel.
17(c) A development or business, either directly or indirectly, for
18the acquisition, construction, improvement, rehabilitation, or
19replacement of property that is or would be used for gambling or
20gaming of any kind whatsoever, including, but not limited to,
21casinos, gaming clubs, bingo operations, or any facility wherein
22banked or percentage games, any form of gambling device, or
23lotteries, other than the California State Lottery, are or will be
24played.
25(d) The prohibition in subdivision (c) is not intended to prohibit
26an authority from acquiring property on or in which an existing
27gambling enterprise is located, for the purpose of selling or leasing
28the
property for uses other than gambling, provided that the agency
29acquires the property for fair market value.
30(e) This section shall not be construed to apply to an authority’s
31assistance in the construction of public improvements that serve
32all or a portion of a project area and that are not required to be
33constructed as a condition of approval of a development described
34in subdivision (a), (b), or (c), or to prohibit assistance in the
35construction of public improvements that are being constructed
36for a development that is not described in subdivision (a), (b), or
37(c).
(a) Any covenants, conditions, or restrictions existing
39on any real property within a plan area prior to the time the
40authority acquires title to that property, which covenants,
P49 1conditions, or restrictions restrict or purport to restrict the use of,
2or building upon, that real property, shall be void and unenforceable
3as to the authority and any other subsequent owners, tenants,
4lessees, easement holders, mortgagees, trustees, beneficiaries under
5a deed of trust, or any other persons or entities acquiring an interest
6in that real property from that time as title to the real property is
7acquired by an authority whether acquisition is by gift, purchase,
8eminent domain, or otherwise.
9(b) Thirty days prior to the acquisition of real property other
10than by eminent domain, the authority shall provide notice of that
11acquisition and the provisions of this section to holders of interests
12which would be made void and unenforceable pursuant to this
13section, as follows:
14(1) The authority shall publish notice once in a newspaper of
15general circulation in the community in which the agency is
16functioning.
17(2) The authority shall mail notice to holders of those interests
18if those holders appear of record 60 days prior to the date of
19acquisition.
20The authority may accept any release by written instrument from
21the holder of any interest or may commence action to acquire that
22interest after the date of acquisition of
the real property.
23(c) This section shall not apply to covenants, conditions, or
24restrictions imposed by an authority pursuant to a plan. This section
25also shall not apply to covenants, conditions, or restrictions where
26an authority in writing expressly acquires or holds property subject
27to those covenants, conditions, or restrictions.
28This section shall not limit or preclude any rights of reversion
29of owners, assignees, or beneficiaries of those covenants,
30conditions, or restrictions limiting the use of land in gifts of land
31to cities, counties, or other governmental entities. This section
32shall not limit or preclude the rights of owners or assignees of any
33land benefited by any covenants, conditions, or restrictions to
34recover damages against the agency if under law that owner or
35assignee has any
right to damages. No right to damages shall exist
36against any purchaser from the authority or his or her successors
37or assignees, or any other persons or entities.
(a) If an authority has adopted a plan but has not
39commenced an eminent domain proceeding to acquire any
40particular parcel of property subject to eminent domain thereunder
P50 1within three years after the date of adoption of the plan, the owner
2or owners of the entire fee at any time thereafter may offer in
3writing to sell the property to the authority for its fair market value.
4If the authority does not, within 18 months from the date of receipt
5of the original offer, acquire or institute eminent domain
6proceedings to acquire the property, the property owner or owners
7may file an action against the authority in inverse condemnation
8to recover damages from the authority for any interference with
9the possession and use of the real
property resulting from the plan,
10provided that this section shall not be construed as establishing or
11creating a presumption to any right to damages or relief solely by
12reason of the failure of the authority to acquire the property within
13the time set forth in this section.
14(b) No claim need be presented against an authority under Part
153 (commencing with Section 900) of Division 3.6 of Title 1 as a
16prerequisite to commencement or maintenance of an action under
17subdivision (a), but any action shall be commenced within one
18year and six months after the expiration of the 18 months period.
19(c) An authority may commence an eminent domain proceeding
20or designate the property to be exempt from eminent domain under
21the plan at any time before the property owner commences an
22action
under this section. If the authority commences an eminent
23domain proceeding or designates the property to be exempt from
24acquisition by eminent domain before the property owner
25commences an action under this section, the property owner may
26not thereafter bring an action under this section.
27(d) After a property owner has commenced an action under this
28section, the authority may declare the property to be exempt from
29acquisition by eminent domain and abandon the taking of the
30property only under the same circumstances and subject to the
31same conditions and consequences as abandonment of an eminent
32domain proceeding.
33(e) Commencement of an action under this section does not
34affect any authority an authority may have to commence an eminent
35domain proceeding, take possession of the
property pursuant to
36Article 3 (commencing with Section 1255.410) of Chapter 6 of
37Title 7 of the Code of Civil Procedure, or abandon the eminent
38domain proceeding.
39(f) In lieu of bringing an action under subdivision (a) or if the
40limitations period provided in subdivision (b) has run, the property
P51 1owner may obtain a writ of mandate to compel the authority, within
2that time as the court deems appropriate, to declare the property
3acquisition exempt or to commence an eminent domain proceeding
4to acquire the property.
5(g) A declaration that the property is exempt from acquisition
6by eminent domain shall be by resolution and shall be recordable.
7It shall exempt the property from eminent domain under the plan,
8and the authority shall have no power of eminent domain as to the
9property.
Section 1245.260 of the Code of Civil Procedure shall
11not apply to any resolution or ordinance adopting, approving, or
12amending the amendment of plan. Section 1245.260 of the Code
13of Civil Procedure shall apply to a resolution adopted by an
14authority pursuant to Section 1245.220 of the Code of Civil
15Procedure with respect to a particular parcel or parcels of real
16property.
(a) The authority shall obligate lessees and purchasers
18of real property acquired in revitalization projects undertaken or
19assisted by the authority and owners of property improved as a
20part of a revitalization project to refrain from restricting the rental,
21sale, or lease of the property on any basis listed in subdivision (a)
22or (d) of Section 12955, as those basis are defined in Sections
2312926, 12926.1, subdivision (m) and paragraph (1) of subdivision
24(p) of Section 12955, and Section 12955.2. All deeds, leases, or
25contracts for the sale, lease, sublease, or other transfer of any land
26in a revitalization project shall contain or be subject to the
27nondiscrimination or nonsegregation clauses hereafter prescribed.
28(b) Notwithstanding subdivision (a), with respect to familial
29status, subdivision (a) shall not be construed to apply to housing
30for older persons, as defined in Section 12955.9. With respect to
31familial status, nothing in subdivision (a) shall be construed to
32affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
33Civil Code, relating to housing for senior citizens. Subdivision (d)
34of Section 51, Section 4760, and Section 6714 of the Civil Code,
35and subdivisions (n), (o), and (p) of Section 12955 shall apply to
36subdivision (a).
Express provisions shall be included in all deeds, leases,
38and contracts that the authority proposes to enter into with respect
39to the sale, lease, sublease, transfer, use, occupancy, tenure, or
P52 1enjoyment of any land in a revitalization project in substantially
2the following form:
3(a) (1) In deeds the following language shall appear:
5“The grantee herein covenants by and for himself or herself, his
6or her heirs, executors, administrators, and assigns, and all persons
7claiming under or through them, that there shall be no
8discrimination against or segregation of, any person or group of
9persons on account of any
basis listed in subdivision (a) or (d) of
10Section 12955 of the Government Code, as those basis are defined
11in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1)
12of subdivision (p) of Section 12955 of, and Section 12955.2 of,
13the Government Code, in the sale, lease, sublease, transfer, use,
14occupancy, tenure, or enjoyment of the premises herein conveyed,
15nor shall the grantee or any person claiming under or through him
16or her, establish or permit any practice or practices of
17discrimination or segregation with reference to the selection,
18location, number, use, or occupancy of tenants, lessees, subtenants,
19sublessees, or vendees in the premises herein conveyed. The
20foregoing covenants shall run with the land.”
22(2) Notwithstanding paragraph (1), with respect to familial
23status, paragraph (1)
shall not be construed to apply to housing for
24older persons, as defined in Section 12955.9. With respect to
25familial status, nothing in paragraph (1) shall be construed to affect
26Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil
27Code, relating to housing for senior citizens. Subdivision (d) of
28Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and
29subdivisions (n), (o), and (p) of Section 12955 shall apply to
30paragraph (1).
31(b) (1) In leases the following language shall appear:
33“The lessee herein covenants by and for himself or herself, his
34or her heirs, executors, administrators, and assigns, and all persons
35claiming under or through him or her, and this lease is made and
36accepted upon and subject to the following conditions:
37That there shall be no discrimination against or segregation of
38any person or group of persons, on account of any basis listed in
39subdivision (a) or (d) of Section 12955 of the Government Code,
40as those basis are defined in Sections 12926, 12926.1 of,
P53 1subdivision (m) and paragraph (1) of subdivision (p) of Section
212955 of, and Section 12955.2 of, the Government Code, in the
3leasing, subleasing, transferring, use, occupancy, tenure, or
4enjoyment of the premises herein leased nor shall the lessee himself
5or herself, or any person claiming under or through him or her,
6establish or permit any such practice or practices of discrimination
7or segregation with reference to the selection, location, number,
8use, or occupancy, of tenants, lessees, sublessees, subtenants, or
9vendees in the premises herein leased.”
11(2) Notwithstanding paragraph (1), with respect to familial
12status, paragraph (1) shall not be construed to apply to housing for
13older persons, as defined in Section 12955.9. With respect to
14familial status, nothing in paragraph (1) shall be construed to affect
15Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil
16Code, relating to housing for senior citizens. Subdivision (d) of
17Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and
18subdivisions (n), (o), and (p) of Section 12955 shall apply to
19paragraph (1).
20(c) In contracts entered into by the agency relating to the sale,
21transfer, or leasing of land or any interest therein acquired by the
22agency within any survey area or redevelopment project the
23foregoing provisions in substantially the forms set forth
shall be
24included and the contracts shall further provide that the foregoing
25provisions shall be binding upon and shall obligate the contracting
26party or parties and any subcontracting party or parties, or other
27transferees under the instrument.
(a) The authority shall retain controls and establish
29restrictions or covenants running with land sold or leased for
30private use for those periods of time and under those conditions
31as are provided in the plan. The establishment of those controls is
32a public purpose under this division.
33(b) An authority shall obligate lessees or purchasers of property
34acquired in a revitalization project to:
35(1) Use the property for the purpose designated in the
36revitalization plans.
37(2) Begin the revitalization of the project area within a period
38of time
which the authority fixes as reasonable.
39(3) Comply with the covenants, conditions, or restrictions that
40the authority deems necessary to prevent speculation or excess
P54 1profittaking in undeveloped land, including right of reverter to the
2agency. Covenants, conditions, and restrictions imposed by an
3authority may provide for the reasonable protection of lenders.
4(4) Comply with other conditions which the authority deems
5necessary to carry out the purposes of this part.
O
95