BILL NUMBER: AB 2	CHAPTERED
	BILL TEXT

	CHAPTER  319
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2015
	APPROVED BY GOVERNOR  SEPTEMBER 22, 2015
	PASSED THE SENATE  SEPTEMBER 9, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2015
	AMENDED IN SENATE  SEPTEMBER 4, 2015
	AMENDED IN SENATE  JULY 7, 2015
	AMENDED IN SENATE  JUNE 16, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

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

                        DECEMBER 1, 2014

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2, 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.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Certain areas of the state are generally characterized by
buildings in which it is unsafe or unhealthy for persons to live or
work, conditions that make the viable use of buildings or lots
difficult, high business vacancies and lack of employment
opportunities, and inadequate public improvements, water, or sewer
utilities. It is the intent of the Legislature to create a planning
and financing tool to support the revitalization of these
communities.
   (b) It is in the interest of the state to support the economic
revitalization of these communities through tax increment financing.
   (c) It is the intent of the Legislature to authorize the creation
of Community Revitalization and Investment Authorities to invest
property tax increment revenue to relieve conditions of unemployment,
reduce high crime rates, repair deteriorated or inadequate
infrastructure, promote affordable housing, and improve conditions
leading to increased employment opportunities.
  SEC. 2.  Division 4 (commencing with Section 62000) is added to
Title 6 of the Government Code, to read:

      DIVISION 4.  Community Revitalization and Investment
Authorities



      PART 1.  General Provisions


   62000.  As used in this division, the following terms have the
following meanings:
   (a) "Authority" means the Community Revitalization and Investment
Authority created pursuant to this division.
   (b) "Plan" means a community revitalization and investment plan
and shall be deemed to be the plan described in Section 16 of Article
XVI of the California Constitution.
   (c) "Plan area" means territory included within a community
revitalization and investment area.
   (d) "Revitalization project" means a physical improvement to real
property funded by the authority.
   62001.  (a) A community revitalization and investment authority is
a public body, corporate and politic, with jurisdiction to carry out
a community revitalization plan within a community revitalization
and investment area. The authority shall be deemed to be the "agency"
described in subdivision (b) of Section 16 of Article XVI of the
California Constitution for purposes of receiving tax increment
revenues. The authority shall have only those powers and duties
specifically set forth in Section 62002.
   (b) (1) An authority may be created in any one of the following
ways:
   (A) A city, county, or city and county may adopt a resolution
creating an authority. The composition of the governing board shall
be comprised as set forth in subdivision (c).
   (B) A city, county, city and county, and special district, as
special district is defined in subdivision (m) of Section 95 of the
Revenue and Taxation Code, or any combination thereof, may create an
authority by entering into a joint powers agreement pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
   (2) (A) A school entity, as defined in subdivision (f) of Section
95 of the Revenue and Taxation Code, may not participate in an
authority created pursuant to this part.
   (B) A successor agency, as defined in subdivision (j) of Section
34171 of the Health and Safety Code, may not participate in an
authority created pursuant to this part, and an entity created
pursuant to this part shall not receive any portion of the property
tax revenues or other moneys distributed pursuant to Section 34188 of
the Health and Safety Code.
   (3) An authority formed by a city or county that created a
redevelopment agency that was dissolved pursuant to Part 1.85
(commencing with Section 34170) of Division 24 of the Health and
Safety Code shall not become effective until the successor agency or
designated local authority for the former redevelopment agency has
adopted findings of fact stating all of the following:
   (A) The agency has received a finding of completion from the
Department of Finance pursuant to Section 34179.7 of the Health and
Safety Code.
   (B) No former redevelopment agency assets which are the subject of
litigation against the state, where the city or county or its
successor agency or designated local authority are a named plaintiff,
have been or will be used to benefit any efforts of an authority
formed under this part unless the litigation, has been resolved by
entry of a final judgment by any court of competent jurisdiction and
any appeals have been exhausted.
   (C) The agency has complied with all orders of the Controller
pursuant to Section 34167.5 of the Health and Safety Code.
   (c) (1) The governing board of an authority created pursuant to
subparagraph (A) of paragraph (1) of subdivision (b) shall be
appointed by the legislative body of the city, county, or city and
county that created the authority and shall include three members of
the legislative body of the city, county, or city and county that
created the authority and two public members. The appointment of the
two public members shall be subject to the provisions of Section
54974. The two public members shall live or work within the community
revitalization and investment area.
   (2) The governing body of the authority created pursuant to
subparagraph (B) of paragraph (1) of subdivision (b) shall be
comprised of a majority of members from the legislative bodies of the
public agencies that created the authority and a minimum of two
public members who live or work within the community revitalization
and investment area. The majority of the board shall appoint the
public members to the governing body. The appointment of the public
members shall be subject to the provisions of Section 54974.
   (d) An authority may carry out a community revitalization plan
within a community revitalization and investment area. Not less than
80 percent of the land calculated by census tracts, or census block
groups, as defined by the United States Census Bureau, within the
area shall be characterized by both of the following conditions:
   (1) An annual median household income that is less than 80 percent
of the statewide annual median income.
   (2) Three of the following four conditions:
   (A) Nonseasonal unemployment that is at least 3 percent higher
than statewide median unemployment, as defined by the report on labor
market information published by the Employment Development
Department in January of the year in which the community
revitalization plan is prepared.
   (B) Crime rates that are 5 percent higher than the statewide
median crime rate, as defined by the most recent annual report of the
Criminal Justice Statistics Center within the Department of Justice,
when data is available on the California Attorney General's Internet
Web site.
   (C) Deteriorated or inadequate infrastructure such as streets,
sidewalks, water supply, sewer treatment or processing, and parks.
   (D) Deteriorated commercial or residential structures.
   (e) As an alternative to subdivision (d), an authority may also
carry out a community revitalization plan within a community
revitalization and investment area established within a former
military base that is principally characterized by deteriorated or
inadequate infrastructure and structures. Notwithstanding subdivision
(c), the governing board of an authority established within a former
military base shall include a member of the military base closure
commission as a public member.
   (f) An authority created pursuant to this part shall be a local
public agency subject to the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5),
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1), and the Political Reform Act
of 1974 (Title 9 (commencing with Section 81000)).
   (g) (1) At any time after the authority is authorized to transact
business and exercise its powers, the legislative body or bodies of
the local government or governments that created the authority may
appropriate the amounts the legislative body or bodies deem necessary
for the administrative expenses and overhead of the authority.
   (2) The money appropriated may be paid to the authority as a grant
to defray the expenses and overhead, or as a loan to be repaid upon
the terms and conditions as the legislative body may provide. If
appropriated as a loan, the property owners and residents within the
plan area shall be made third-party beneficiaries of the repayment of
the loan. In addition to the common understanding and usual
interpretation of the term, "administrative expense" includes, but is
not limited to, expenses of planning and dissemination of
information.
   62002.  An authority may do all of the following:
   (a) Provide funding to rehabilitate, repair, upgrade, or construct
infrastructure.
   (b) Provide for low- and moderate-income housing in accordance
with Part 2 (commencing with Section 62100).
   (c) Remedy or remove a release of hazardous substances pursuant to
the Polanco Redevelopment Act (Article 12.5 (commencing with Section
33459) of Part 1 of Chapter 4 of Division 24) or Chapter 6.10
(commencing with Section 25403) of Division 20 of the Health and
Safety Code.
   (d) Provide for seismic retrofits of existing buildings in
accordance with all applicable laws and regulations.
   (e) Acquire and transfer real property in accordance with Part 3
(commencing with Section 62200). The authority shall retain controls
and establish restrictions or covenants running with the land sold or
leased for private use for such periods of time and under such
conditions as are provided in the plan. The establishment of such
controls is a public purpose under the provisions of this part.
   (f) Issue bonds in conformity with Article 4.5 (commencing with
Section 53506) and Article 5 (commencing with Section 53510) of
Chapter 3 of Part 1 of Division 2 of Title 5.
   (g) Borrow money, receive grants, or accept financial or other
assistance or investment from the state or the federal government or
any other public agency or private lending institution for any
project or within its area of operation, and may comply with any
conditions of the loan or grant. An authority may qualify for funding
as a disadvantaged community pursuant to Section 79505.5 of the
Water Code or as defined by Section 56033.5. An authority may also
enter into an agreement with a qualified community development
entity, as defined by Section 45D(c) of the Internal Revenue Code, to
coordinate investments of funds derived from the New Markets Tax
Credit with those of the authority in instances where coordination
offers opportunities for greater efficiency of investments to improve
conditions described in subdivisions (d) and (e) within the
territorial jurisdiction of the authority.
   (h) Adopt a community revitalization and investment plan pursuant
to Sections 62003 and 62004.
   (i) Make loans or grants for owners or tenants to improve,
rehabilitate, or retrofit buildings or structures within the plan
area.
   (j) Construct foundations, platforms, and other like structural
forms necessary for the provision or utilization of air rights sites
for buildings to be used for residential, commercial industrial, or
other uses contemplated by the revitalization plan.
   (k) Provide direct assistance to businesses within the plan area
in connection with new or existing facilities for industrial or
manufacturing uses, except as specified in this division.
   62003.  An authority shall adopt a community revitalization and
investment plan that may include a provision for the receipt of tax
increment funds generated within the area according to Section 62005,
provided the plan includes each of the following elements:
   (a) A statement of the principal goals and objectives of the plan
including territory to be covered by the plan.
   (b) A description of the deteriorated or inadequate infrastructure
within the area and a program for construction of adequate
infrastructure or repair or upgrading of existing infrastructure.
   (c) A housing program that describes how the authority will comply
with Part 2 (commencing with Section 62100). The program shall
include the following information:
   (1) The amount available in the Low and Moderate Income Housing
Fund and the estimated amounts that will be deposited in the fund
during each of the next five years.
   (2) Estimates of the number of new, rehabilitated, or price
restricted residential units to be assisted during each of the five
years and estimates of the expenditures of moneys from the Low and
Moderate Income Housing Fund during each of the five years.
   (3) A description of how the program will implement the
requirements for expenditures of funds in the Low and Moderate Income
Housing Fund over a 10-year period for various groups as required by
Chapter 2 (commencing with Section 62115) of Part 2.
   (4) Estimates of the number of units, if any, developed by the
authority for very low, low-, and moderate-income households during
the next five years.
   (d) A program to remedy or remove a release of hazardous
substances, if applicable.
   (e) A program to provide funding for or otherwise facilitate the
economic revitalization of the area.
   (f) A fiscal analysis setting forth the projected receipt of
revenue and projected expenses over a five-year planning horizon,
including the potential issuance of bonds backed by tax increment
during the term of the plan. Bonds shall be issued in conformity with
Article 4.5 (commencing with Section 53506) and Article 5
(commencing with Section 53510) of Chapter 3 of Part 1 of Division 2
of Title 5. An authority shall not spend revenue for any purpose that
is not identified as part of a program described in subdivisions
(b), (c), (d), and (e).
   (g) Time limits that may not exceed the following:
   (1) Thirty years for establishing loans, advances and
indebtedness.
   (2) Forty-five years for the repayment of all of the authority's
debts and obligations, and fulfilling all of the authority's housing
obligations. The plan shall specify that an authority shall dissolve
as a legal entity in no more than 45 years, and no further taxes
shall be allocated to the authority pursuant to Section 62005.
Nothing in this paragraph shall be interpreted to prohibit an
authority from refinancing outstanding debt solely to reduce interest
costs.
   (h) A determination that the community revitalization investment
area complies with the conditions described in subdivision (d) or (e)
of Section 62001.
   62004.  (a) The authority shall consider adoption of the plan at
three public hearings that shall take place at least 30 days apart.
At the first public hearing, the authority shall hear all written and
oral comments but take no action. At the second public hearing, the
authority shall consider any additional written and oral comments and
take action to modify or reject the plan. If the plan is not
rejected at the second public hearing, then the authority shall
conduct a protest proceeding at the third public hearing to consider
whether the property owners and residents within the plan area wish
to present oral or written protests against the adoption of the plan.

   (b) The draft plan shall be made available to the public and to
each property owner within the area at a meeting held at least 30
days prior to the notice given for the first public hearing. The
purposes of the meeting shall be to allow the staff of the authority
to present the draft plan, answer questions about the plan, and
consider comments about the plan.
   (c) (1) Notice of the meeting required by subdivision (b) and the
public hearings required by this subdivision shall be given in
accordance with subdivision (k). The notice shall do all of the
following, as applicable:
   (A) Describe specifically the boundaries of the proposed area.
   (B) Describe the purpose of the plan.
   (C) State the day, hour, and place when and where any and all
persons having any comments on the proposed plan may appear to
provide written or oral comments to the authority.
   (D) Notice of second public hearing shall include a summary of the
changes made to the plan as a result of the oral and written
testimony received at or before the public hearing and shall identify
a location accessible to the public where the plan proposed to be
presented and adopted at the second public hearing can be reviewed.
   (E) Notice of the third public hearing to consider any written or
oral protests shall contain a copy of the final plan adopted pursuant
to subdivision (a), and shall inform the property owner and resident
of his or her right to submit an oral or written protest before the
close of the public hearing. The protest may state that the property
owner or resident objects to the authority taking action to implement
the plan.
   (2) At the third public hearing, the authority shall consider all
written and oral protests received prior to the close of the public
hearing and shall terminate the proceedings or adopt the plan subject
to confirmation by the voters at an election called for that
purpose. The authority shall terminate the proceedings if there is a
majority protest. A majority protest exists if protests have been
filed representing over 50 percent of the combined number of property
owners and residents in the area who are at least 18 years of age.
An election shall be called if between 25 percent and 50 percent of
the combined number of property owners and residents in the area who
are at least 18 years of age file a protest.
   (d) An election required pursuant to paragraph (2) of subdivision
(c) shall be held within 90 days of the public hearing and may be
held by mail-in ballot. The authority shall adopt, at a duly noticed
public hearing, procedures for this election.
   (e) If a majority of the property owners and residents vote
against the plan, then the authority shall not take any further
action to implement the proposed plan. The authority shall not
propose a new or revised plan to the affected property owners and
residents for at least one year following the date of an election in
which the plan was rejected.
   (f) At the hour set in the notice required by subdivision (a), the
authority shall consider all written and oral comments.
   (g) If less than 25 percent of the combined number of property
owners and residents in the area who are at least 18 years of age
file a protest, the authority may adopt the plan at the conclusion of
the third public hearing by ordinance. The ordinance adopting the
plan shall be subject to referendum as prescribed by law.
   (h) For the purposes of Section 62005, the plan shall be the plan
adopted pursuant to this section.
   (i) The authority shall consider and adopt an amendment or
amendments to a plan in accordance with the provisions of this
section.
   (j) The authority shall post notice of each meeting or public
hearing required by this section in an easily identifiable and
accessible location on the authority's Internet Web site and shall
mail a written notice of the meeting or public hearing to each owner
of land and each resident at least 10 days prior to the meeting or
public hearing.
   (1) Notice of the first public hearing shall also be published not
less than once a week for four successive weeks prior to the first
public hearing in a newspaper of general circulation published in the
county in which the area lies.
   (2) Notice of the second public hearing shall also be published
not less than 10 days prior to the second public hearing in a
newspaper of general circulation in the county in which the area
lies.
   (3) Notice of the third public hearing shall also be published not
less than 10 days prior to the third public hearing in a newspaper
of general circulation in the county in which the area lies.
   62005.  (a) (1) The plan adopted pursuant to Section 62004 may
include a provision that taxes levied and collected upon taxable
property in the area included within the territory each year by or
for the benefit the taxing agencies that have adopted a resolution
pursuant to subdivision (d), shall be divided as follows:
   (A) That portion of the taxes that would have been produced by the
rate upon which the tax is levied each year by or for each of the
consenting local agencies upon the total sum of the assessed value of
the taxable property in the territory as shown upon the assessment
roll used in connection with the taxation of the property by the
consenting local agency, last equalized prior to the effective date
of the certification of completion, and that portion of taxes by or
for each school entity, shall be allocated to, and when collected
shall be paid to, the respective consenting local agencies and school
entities as taxes by or for the consenting local agencies and school
entities on all property are paid.
   (B) That portion of the levied taxes each year specified in the
community revitalization plan adopted pursuant to Section 62004 for
each consenting local agency that has agreed to participate pursuant
a resolution adopted pursuant to subdivision (d), in excess of the
amount specified in subparagraph (A), shall be allocated to, and when
collected shall be paid into a special fund of the authority to
finance the improvements specified in the community revitalization
plan.
   (2) A consenting local agency may advance funds to the authority.
The authority shall use those advanced funds solely for the purposes
specified in the community revitalization plan and shall repay the
consenting local agency with revenue from the taxes received pursuant
to this subdivision.
   (b) For purposes of this section, the following definitions apply:

   (1) "Taxing agency" means a local agency as defined by subdivision
(a) of Section 95 of the Revenue and Taxation Code, and does not
include any school entity as defined in subdivision (f) of Section 95
of the Revenue and Taxation Code.
   (2) "Consenting local agency" means a local agency that has
adopted a resolution of its governing body consenting to the
community revitalization and investment plan.
   (3) "Territory" means the land that is contained within the
community revitalization plan.
   (c) The provision for the receipt of tax increment funds shall
become effective in the tax year that begins after the December 1
first following the adoption of the plan.
   (d) At any time prior to or after adoption of the plan, any city,
county, or special district, other than a school entity as defined in
subdivision (n) of Section 95 of the Revenue and Taxation Code or a
successor agency as defined in subdivision (j) of Section 34171, that
receives ad valorem property taxes from property located within an
area may adopt a resolution directing the county auditor-controller
to allocate its share of tax increment funds within the area covered
by the plan according to subdivision (a) to the authority. The
resolution adopted pursuant to this subdivision may direct the county
auditor-controller to allocate less than the full amount of the tax
increment, establish a maximum amount of time in years that the
allocation takes place, or limit the use of the funds by the
authority for specific purposes or programs, provided that 25 percent
of the amount of tax increment designated shall be allocated for
affordable housing pursuant to Section 62100. A resolution adopted
pursuant to this subdivision may be repealed and be of no further
effect by giving the county auditor-controller 60 days' notice;
provided, however, that the county auditor-controller shall continue
to allocate to the authority the taxing entity's share of ad valorem
property taxes that have been pledged to the repayment of debt issued
by the authority until the debt has been fully repaid. Prior to
adopting a resolution pursuant to this subdivision, a city, county,
or special district shall approve a memorandum of understanding with
the authority governing the authority's use of tax increment funds
for administrative and overhead expenses pursuant to subdivision (g)
of Section 62001.
   (e) Upon adoption of a plan that includes a provision for the
receipt of tax increment funds according to subdivision (a), the
county auditor-controller shall allocate tax increment revenue to the
authority as follows:
   (1) If the authority was formed pursuant to subparagraph (A) of
paragraph (1) of subdivision (b) of Section 62001, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each city, county, city and county, and special
district that has adopted a resolution pursuant to subdivision (d),
in excess of the amount specified in paragraph (1) of subdivision
(a).
   (2) If the authority was formed pursuant to subparagraph (B) of
paragraph (1) of subdivision (b) of Section 62001, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each jurisdiction as provided in the joint
powers agreement in excess of the amount specified in paragraph (1)
of subdivision (a).
   (f) If an area includes, in whole or in part, land formerly or
currently designated as a part of a redevelopment project area, as
defined in Section 33320.1 of the Health and Safety Code, any plan
adopted pursuant to this part that includes a provision for the
receipt of tax increment revenues according to subdivision (a) shall
include a provision that tax increment amounts payable to an
authority are subject and subordinate to any preexisting enforceable
obligation as that term is defined by Section 34171 of the Health and
Safety Code.
   62006.  (a) The authority shall review the plan at least annually
and make any amendments that are necessary and appropriate in
accordance with the procedures set forth in Section 62004 and shall
require the preparation of an annual independent financial audit paid
for from revenues of the authority.
   (b) An authority shall adopt an annual report on or before June 30
of each year after holding a public hearing. Written copies of the
draft report shall be made available to the public 30 days prior to
the public hearing. The authority shall cause the draft report to be
posted in an easily identifiable and accessible location on the
authority's Internet Web site and shall mail a written notice of the
availability of the draft report on the Internet Web site to each
owner of land and each resident within the area covered by the plan
and to each taxing entity that has adopted a resolution pursuant to
subdivision (d) of Section 62005. The notice shall be mailed by
first-class mail, but may be addressed to "occupant."
   (c) The annual report shall contain all of the following:
   (1) A description of the projects undertaken in the fiscal year,
including any rehabilitation of structures, and a comparison of the
progress expected to be made on those projects compared
                               to the actual progress.
   (2) A chart comparing the actual revenues and expenses, including
administrative costs, of the authority to the budgeted revenues and
expenses.
   (3) The amount of tax increment revenues received.
   (4) The amount of revenues expended for low- and moderate-income
housing.
   (5) An assessment of the status regarding completion of the
authority's projects.
   (6) The amount of revenues expended to assist private businesses.
   (d) If the authority fails to provide the annual report required
by subdivision (a), the authority shall not spend any funds received
pursuant to a resolution adopted pursuant to subdivision (d) of
Section 62005 until the authority has provided the report, except for
funds necessary to carry out its obligation under Part 2 (commencing
with Section 62100).
   (e) Every 10 years, at the public hearing held pursuant to
subdivision (b), the authority shall conduct a protest proceeding to
consider whether the property owners and residents within the plan
area wish to present oral or written protests against the authority.
Notice of this protest proceeding shall be included in the written
notice of the hearing on the annual report and shall inform the
property owner and resident of his or her right to submit an oral or
written protest before the close of the public hearing. The protest
may state that the property owner or resident objects to the
authority taking action to implement the plan on and after the date
of the election described in subdivision (f). The authority shall
consider all written and oral protests received prior to the close of
the public hearing.
   (f) If there is a majority protest, the authority shall not take
any further action to implement the plan on and after the date the
existence of a majority protest is determined. If between 25 percent
and 50 percent of the property owners and residents file protests,
then the authority shall call an election of the property owners and
residents in the area covered by the plan, and shall not initiate or
authorize any new projects until the election is held. A majority
protest exists if protests have been filed representing over 50
percent of the combined number of property owners and residents, at
least 18 years of age or older, in the area.
   (g) An election required pursuant to subdivision (f) shall be held
within 90 days of the public hearing and may be held by mail-in
ballot. The authority shall adopt, at a duly noticed public hearing,
procedures for holding this election.
   (h) If a majority of the property owners and residents vote
against the plan, then the authority shall not take any further
action to implement the plan on and after the date of the election
held pursuant to subdivision (e). This section shall not prevent the
authority from taking any and all actions and appropriating and
expending funds, including, but not limited to, any and all payments
on bonded or contractual indebtedness, to carry out and complete
projects for which expenditures of any kind had been made prior to
the date of the election and any expenditures for obligations
required by Part 2 (commencing with Section 62100) that were incurred
prior to the date of the election.
   62007.  (a) Every five years, beginning in the calendar year in
which the authority has allocated a cumulative total of more than one
million dollars ($1,000,000) in tax increment revenues, including
any proceeds of a debt issuance, for the purposes of subdivision (c)
of Section 62003, the authority shall contract for an independent
audit to determine compliance with the affordable housing
requirements of Chapter 1 (commencing with Section 62100) and Chapter
2 (commencing with Section 62115) of Part 2, including provisions to
ensure that the requirements are met within each five-year period
covered by the audit and completed no later than the time limit
established pursuant to subdivision (g) of Section 62003. The audit
shall be conducted according to guidelines established by the
Controller, which shall be established on or before December 31,
2021. A copy of the completed audit shall be provided to the
Controller. The Controller shall not be required to review and
approve the completed audits.
   (b) Where the audit demonstrates a failure to comply with the
requirements of Chapter 1 (commencing with Section 62100) and Chapter
2 (commencing with Section 62115) of Part 2, the authority shall
adopt and submit to the Controller, as part of the audit, a plan to
achieve compliance with those provisions as soon as feasible, but in
not less than two years following the audit findings. The Controller
shall review and approve the compliance plan, and require the
compliance plan to stay in effect until compliance is achieved. The
Controller shall ensure that the compliance plan includes one or more
of the following means of achieving compliance:
   (1) The expenditure of an additional 10 percent of gross tax
increment revenue on increasing, preserving, and improving the supply
of low-income housing.
   (2) An increase in the production, by an additional 10 percent, of
housing for very low income households as required by paragraph (2)
of subdivision (b) of Section 62120.
   (3) The targeting of expenditures pursuant to Section 62100
exclusively to rental housing affordable to, and occupied by, persons
of very low and extremely low income.
   (c) If an authority is required to conduct an audit pursuant to
subdivision (a) in advance of the issuance of the Controller's
guidelines, then it shall prepare an updated audit pursuant to the
Controller's guidelines on or before January 1, 2023.
   62008.  (a) If an authority fails to provide a copy of the
completed audit to the Controller as required by paragraph (2) of
subdivision (c) within 20 days following receipt of a written notice
of the failure from the Controller, the authority shall forfeit to
the state:
   (1) Two thousand five hundred dollars ($2,500) in the case of an
authority with a total revenue, in the prior year, of less than one
hundred thousand dollars ($100,000), as reported in the Controller's
annual financial reports.
   (2) Five thousand five hundred dollars ($5,500) in the case of an
authority with a total revenue, in the prior year, of at least one
hundred thousand dollars ($100,000) but less than two hundred fifty
thousand dollars ($250,000), as reported in the Controller's annual
financial reports.
   (3) Ten thousand dollars ($10,000) in the case of an authority
with a total revenue, in the prior year, of at least two hundred
fifty thousand dollars ($250,000), as reported in the Controller's
annual financial reports.
   (b) If an authority fails to provide a copy of the completed audit
to the Controller as required by paragraph (2) of subdivision (c)
within 20 days after receipt of a written notice pursuant to
subdivision (a) for two consecutive years, the authority shall
forfeit an amount that is double the amount of the forfeiture
assessed pursuant to subdivision (a).
   (c) (1) If an authority fails to provide a copy of the completed
audit to the Controller as required by paragraph (2) of subdivision
(c) within 20 days after receipt of a written notice pursuant to
subdivision (a) for three or more consecutive years, the authority
shall forfeit an amount that is triple the amount of the forfeiture
assessed pursuant to subdivision (a).
   (2) The Controller shall conduct, or cause to be conducted, an
independent financial audit report.
   (3) The authority shall reimburse the Controller for the cost of
complying with this subdivision.
   (d) Upon the request of the Controller, the Attorney General shall
bring an action for the forfeiture in the name of the people of the
State of California. If the Attorney General fails to respond to the
request within 90 days of its receipt, then any other available
remedies may be exercised. An action filed pursuant to this section
to compel an agency to comply with this section is in addition to any
other remedy and is not an exclusive means to compel compliance.
   (e) Upon satisfactory showing of good cause, the Controller shall
waive the forfeiture requirements of this section.

      PART 2.  Housing


      CHAPTER 1.  HOUSING FOR PERSONS OF LOW AND MODERATE INCOME


   62100.  (a) Not less than 25 percent of all taxes that are
allocated to the authority from any participating entity pursuant to
Section 62005 shall be deposited into a separate Low and Moderate
Income Housing Fund pursuant to Section 62101 and used by the
authority for the purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as defined by the following sections of
the Health and Safety Code: Section 50052.5, to persons and families
of low or moderate income, as defined in Section 50093, lower income
households, as defined by Section 50079.5, very low income
households, as defined in Section 50105, and extremely low income
households, as defined by Section 50106, that is occupied by these
persons and families unless the authority makes a finding that
combining funding received under this program with other funding for
the same purpose shall reduce administrative costs or expedite the
construction of affordable housing. If the authority makes such a
finding, then (1) an authority may transfer funding from the program
adopted pursuant to subdivision (c) of Section 62003 to the housing
authority within the territorial jurisdiction of the local
jurisdiction that created the authority or to the entity that
received the housing assets of the former redevelopment agency
pursuant to Section 34176 of the Health and Safety Code or to a
private nonprofit housing developer, and (2) Section 34176.1 of the
Health and Safety Code shall not apply to funds transferred. Funding
shall be spent within the plan area in which the funds were
generated. Any recipient of funds transferred pursuant to this
subdivision shall comply with all applicable provisions of this part.

   (b) In carrying out the purposes of this section, the authority
may exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low- and moderate-income persons or families,
including the following:
   (1) Acquire real property or building sites subject to Section
62112.
   (2) (A) Improve real property or building sites with onsite or
offsite improvements, but only if both (i) the improvements are part
of the new construction or rehabilitation of affordable housing units
for low- or moderate-income persons that are directly benefited by
the improvements, and are a reasonable and fundamental component of
the housing units, and (ii) the authority requires that the units
remain available at affordable housing cost to, and occupied by,
persons and families of extremely low, very low, low, or moderate
income for the same time period and in the same manner as provided in
subdivision (c) and paragraph (2) of subdivision (f) of Section
62101.
   (B) If the newly constructed or rehabilitated housing units are
part of a larger project and the agency improves or pays for onsite
or offsite improvements pursuant to the authority in this
subdivision, the authority shall pay only a portion of the total cost
of the onsite or offsite improvement. The maximum percentage of the
total cost of the improvement paid for by the authority shall be
determined by dividing the number of housing units that are
affordable to low- or moderate-income persons by the total number of
housing units, if the project is a housing project, or by dividing
the cost of the affordable housing units by the total cost of the
project, if the project is not a housing project.
   (3) Donate real property to private or public persons or entities.

   (4) Finance insurance premiums necessary for the provision of
insurance during the construction or rehabilitation of properties
that are administered by governmental entities or nonprofit
organizations to provide housing for lower income households, as
defined in Section 50079.5 of the Health and Safety Code, including
rental properties, emergency shelters, transitional housing, or
special residential care facilities.
   (5) Construct buildings or structures.
   (6) Acquire buildings or structures.
   (7) Rehabilitate buildings or structures.
   (8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106 of the Health and
Safety Code, very low income households, as defined by Section 50105
of the Health and Safety Code, lower income households, as defined by
Section 50079.5 of the Health and Safety Code, or persons and
families of low or moderate income, as defined by Section 50093 of
the Health and Safety Code, to the extent those households cannot
obtain housing at affordable costs on the open market. Housing units
available on the open market are those units developed without direct
government subsidies.
   (9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
   (10) Maintain the community's supply of mobilehomes.
   (11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
   (c) The authority may use these funds to meet, in whole or in
part, the replacement housing provisions in Section 62120. However,
this section shall not be construed as limiting in any way the
requirements of that section.
   (d) The authority shall use these funds inside the plan area.
   (e) The Legislature finds and declares that expenditures or
obligations incurred by the authority pursuant to this section shall
constitute an indebtedness of the plan area.
   (f) (1) (A) An action to compel compliance with the requirement of
this section to deposit not less than 25 percent of all taxes that
are allocated to the authority pursuant to Section 62005 in the Low
and Moderate Income Housing Fund shall be commenced within 10 years
of the alleged violation. A cause of action for a violation accrues
on the last day of the fiscal year in which the funds were required
to be deposited in the Low and Moderate Income Housing Fund.
   (B) An action to compel compliance with the requirement of this
section that money deposited in the Low and Moderate Income Housing
Fund be used by the agency for purposes of increasing, improving, and
preserving the community's supply of low- and moderate-income
housing available at affordable housing cost shall be commenced
within 10 years of the alleged violation. A cause of action for a
violation accrues on the date of the actual expenditure of the funds.

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

   (i) Petition the court under Section 970.6 for repayment in
installments.
   (ii) Repay the portion of the judgment due to the Low and Moderate
Income Housing Fund in equal installments over a period of five
years following the judgment.
   (2) Repayment shall not be made from the funds required to be set
aside or used for low- and moderate-income housing pursuant to this
section.
   (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paragraph (1), all costs, including reasonable attorney's fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
   (4) Except as otherwise provided in this subdivision, Chapter 2
(commencing with Section 970) of Part 5 of Division 3.6 of Title 1
for the enforcement of a judgment against a local public entity
applies to a judgment against a local public entity that violates
this section.
   (5) This subdivision applies to actions filed on and after January
1, 2016.
   (6) The limitations period specified in subparagraphs (A) and (B)
of paragraph (1) does not apply to a cause of action brought pursuant
to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure.
   62101.  (a) The funds that are required by Section 62100 or 62103
to be used for the purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing shall be
held in a separate Low and Moderate Income Housing Fund until used.
   (b) Any interest earned by the Low and Moderate Income Housing
Fund and any repayments or other income to the authority for loans,
advances, or grants, of any kind from the Low and Moderate Income
Housing Fund, shall accrue to and be deposited in, the fund and may
only be used in the manner prescribed for the Low and Moderate Income
Housing Fund.
   (c) The moneys in the Low and Moderate Income Housing Fund shall
be used to increase, improve, and preserve the supply of low- and
moderate-income housing within the territorial jurisdiction of the
authority.
   (d) It is the intent of the Legislature that the Low and Moderate
Income Housing Fund be used to the maximum extent possible to defray
the costs of production, improvement, and preservation of low- and
moderate-income housing and that the amount of money spent for
planning and general administrative activities associated with the
development, improvement, and preservation of that housing not be
disproportionate to the amount actually spent for the costs of
production, improvement, or preservation of that housing. The
authority shall determine annually that the planning and
administrative expenses are necessary for the production,
improvement, or preservation of low- and moderate-income housing.
   (e) (1) Planning and general administrative costs that may be paid
with moneys from the Low and Moderate Income Housing Fund are those
expenses incurred by the authority that are directly related to the
programs and activities authorized under subdivision (e) of Section
62100 and are limited to the following:
   (A) Costs incurred for salaries, wages, and related costs of the
authority's staff or for services provided through interagency
agreements, and agreements with contractors, including usual indirect
costs related thereto.
   (B) Costs incurred by a nonprofit corporation which are not
directly attributable to a specific project.
   (2) Legal, architectural, and engineering costs and other
salaries, wages, and costs directly related to the planning and
execution of a specific project that are authorized under subdivision
(e) of Section 62100 and that are incurred by a nonprofit housing
sponsor are not planning and administrative costs for the purposes of
this section, but are instead project costs.
   (f) (1) The requirements of this subdivision apply to all new or
substantially rehabilitated housing units developed or otherwise
assisted with moneys from the Low and Moderate Income Housing Fund.
Except to the extent that a longer period of time may be required by
other provisions of law, the authority shall require that housing
units subject to this subdivision shall remain available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income and very low income and extremely low income
households for the longest feasible time, but for not less than the
following periods of time:
   (A) Fifty-five years for rental units. However, the authority may
replace rental units with equally affordable and comparable rental
units in another location within the community if (i) the replacement
units are available for occupancy prior to the displacement of any
persons and families of low or moderate income residing in the units
to be replaced, and (ii) the comparable replacement units are not
developed with moneys from the Low and Moderate Income Housing Fund.
   (B) Forty-five years for owner-occupied units. However, the
authority may permit sales of owner-occupied units prior to the
expiration of the 45-year period for a price in excess of that
otherwise permitted under this subdivision pursuant to an adopted
program which protects the agency's investment of moneys from the Low
and Moderate Income Housing Fund, including, but not limited to, an
equity sharing program which establishes a schedule of equity sharing
that permits retention by the seller of a portion of those excess
proceeds based on the length of occupancy. The remainder of the
excess proceeds of the sale shall be allocated to the authority and
deposited in the Low and Moderate Income Housing Fund. Only the units
originally assisted by the authority shall be counted towards the
agency's obligations under Section 62102.
   (C) Fifteen years for mutual self-help housing units that are
occupied by and affordable to very low and low-income households.
However, the authority may permit sales of mutual self-help housing
units prior to expiration of the 15-year period for a price in excess
of that otherwise permitted under this subdivision pursuant to an
adopted program that (i) protects the agency's investment of moneys
from the Low and Moderate Income Housing Fund, including, but not
limited to, an equity sharing program that establishes a schedule of
equity sharing that permits retention by the seller of a portion of
those excess proceeds based on the length of occupancy, and (ii)
ensures through a recorded regulatory agreement, deed of trust, or
similar recorded instrument that if a mutual self-help housing unit
is sold at any time after expiration of the 15-year period and prior
to 45 years after the date of recording of the covenants or
restrictions required pursuant to paragraph (2), the authority
recovers, at a minimum, its original principal from the Low and
Moderate Income Housing Fund from the proceeds of the sale and
deposits those funds into the Low and Moderate Income Housing Fund.
The remainder of the excess proceeds of the sale not retained by the
seller shall be allocated to the agency and deposited in the Low and
Moderate Income Housing Fund. For the purposes of this subparagraph,
"mutual self-help housing unit" means an owner-occupied housing unit
for which persons and families of very low and low income contribute
no fewer than 500 hours of their own labor in individual or group
efforts to provide a decent, safe, and sanitary ownership housing
unit for themselves, their families, and others authorized to occupy
that unit. This subparagraph shall not preclude the authority and the
developer of the mutual self-help housing units from agreeing to
45-year deed restrictions.
   (2) If land on which those dwelling units are located is deleted
from the plan area, the authority shall continue to require that
those units remain affordable as specified in this subdivision.
   (3) The authority shall require the recording in the office of the
county recorder of the following documents:
   (A) The covenants or restrictions implementing this subdivision
for each parcel or unit of real property subject to this subdivision.
The authority shall obtain and maintain a copy of the recorded
covenants or restrictions for not less than the life of the covenant
or restriction.
   (B) For all new or substantially rehabilitated units developed or
otherwise assisted with moneys from the Low and Moderate Income
Housing Fund, a separate document called "Notice of Affordability
Restrictions on Transfer of Property," set forth in 14-point type or
larger. This document shall contain all of the following information:

   (i) A recitation of the affordability covenants or restrictions.
The document recorded under this subparagraph shall be recorded
concurrently with the covenants or restrictions recorded under
subparagraph (A), the recitation of the affordability covenants or
restrictions shall also reference the concurrently recorded document.

   (ii) The date the covenants or restrictions expire.
   (iii) The street address of the property, including, if
applicable, the unit number, unless the property is used to
confidentially house victims of domestic violence.
   (iv) The assessor's parcel number for the property.
   (v) The legal description of the property.
   (4) The authority shall require the recording of the document
required under subparagraph (B) of paragraph (3) not more than 30
days after the date of recordation of the covenants or restrictions
required under subparagraph (A) of paragraph (3).
   (5) The county recorder shall index the documents required to be
recorded under paragraph (3) by the authority and current owner.
   (6) Notwithstanding Section 27383, a county recorder may charge
all authorized recording fees to any party, including a public
agency, for recording the document specified in subparagraph (B) of
paragraph (3).
   (7) Notwithstanding any other law, the covenants or restrictions
implementing this subdivision shall run with the land and shall be
enforceable against any owner who violates a covenant or restriction
and each successor in interest who continues the violation, by any of
the following:
   (A) The authority.
   (B) The city or county that established the authority.
   (C) A resident of a unit subject to this subdivision.
   (D) A residents' association with members who reside in units
subject to this subdivision.
   (E) A former resident of a unit subject to this subdivision who
last resided in that unit.
   (F) An applicant seeking to enforce the covenants or restrictions
for a particular unit that is subject to this subdivision, if the
applicant conforms to all of the following:
   (i) Is of low or moderate income, as defined in Section 50093 of
the Health and Safety Code.
   (ii) Is able and willing to occupy that particular unit.
   (iii) Was denied occupancy of that particular unit due to an
alleged breach of a covenant or restriction implementing this
subdivision.
   (G) A person on an affordable housing waiting list who is of low
or moderate income, as defined in Section 50093, and who is able and
willing to occupy a unit subject to this subdivision.
   (8) A dwelling unit shall not be counted as satisfying the
affordable housing requirements of this part, unless covenants for
that dwelling unit are recorded in compliance with subparagraph (A)
of paragraph (3).
   (9) Failure to comply with the requirements of subparagraph (B) of
paragraph (3) shall not invalidate any covenants or restrictions
recorded pursuant to subparagraph (A) of paragraph (3).
                                      (g) "Housing," as used in this
section, includes residential hotels, as defined in subdivision (k)
of Section 37912 of the Health and Safety Code. The definitions of
"lower income households," "very low income households," and
"extremely low income households" in Sections 50079.5, 50105, and
50106 of the Health and Safety Code shall apply to this section.
"Longest feasible time," as used in this section, includes, but is
not limited to, unlimited duration.
   (h) "Increasing, improving, and preserving the community's supply
of low- and moderate-income housing," as used in this section and in
Section 62100, includes the preservation of rental housing units
assisted by federal, state, or local government on the condition that
units remain affordable to, and occupied by, low- and
moderate-income households, including extremely low and very low
income households, for the longest feasible time, but not less than
55 years, beyond the date the subsidies and use restrictions could be
terminated and the assisted housing units converted to market rate
rentals. In preserving these units the authority shall require that
the units remain affordable to, and occupied by, persons and families
of low- and moderate-income and extremely low and very low income
households for the longest feasible time, but not less than 55 years.

   (i) Funds from the Low and Moderate Income Housing Fund shall not
be used to the extent that other reasonable means of private or
commercial financing of the new or substantially rehabilitated units
at the same level of affordability and quantity are reasonably
available to the agency or to the owner of the units. Prior to the
expenditure of funds from the Low and Moderate Income Housing Fund
for new or substantially rehabilitated housing units, where those
funds will exceed 50 percent of the cost of producing the units, the
authority shall find, based on substantial evidence, that the use of
the funds is necessary because the authority or owner of the units
has made a good faith attempt but has been unable to obtain
commercial or private means of financing the units at the same level
of affordability and quantity.
   62102.  (a) Except as specified in subdivision (d), each authority
shall expend over each 10-year period of the community
revitalization plan the moneys in the Low and Moderate Income Housing
Fund to assist housing for persons of low income and housing for
persons of very low income in at least the same proportion as the
total number of housing units needed that each of those income groups
bears to the total number of units needed for persons of moderate,
low, and very low income within the community, as those needs have
been determined for the community pursuant to Section 65584. In
determining compliance with this obligation, the authority may adjust
the proportion by subtracting from the need identified for each
income category, the number of units for persons of that income
category that are newly constructed over the duration of the
implementation plan with other locally controlled government
assistance and without agency assistance and that are required to be
affordable to, and occupied by, persons of the income category for at
least 55 years for rental housing and 45 years for ownership
housing, except that in making an adjustment the agency may not
subtract units developed pursuant to a replacement housing obligation
under state or federal law.
   (b) Each authority shall expend over the duration of each plan,
the moneys in the Low and Moderate Income Housing Fund to assist
housing that is available to all persons regardless of age in at
least the same proportion as the number of low-income households with
a member under 65 years of age bears to the total number of
low-income households of the community as reported in the most recent
census of the United States Census Bureau.
   (c) An authority that has deposited in the Low and Moderate Income
Housing Fund over the first five years of the period of a plan an
aggregate that is less than two million dollars ($2,000,000) shall
have an extra five years to meet the requirements of this section.
   (d) For the purposes of this section, "locally controlled" means
government assistance where the city or county that created the
authority or other local government entity has the discretion and the
authority to determine the recipient and the amount of the
assistance, whether or not the source of the funds or other
assistance is from the state or federal government. Examples of
locally controlled government assistance include, but are not limited
to, the Community Development Block Grant Program (42 U.S.C. Sec.
5301 et seq.) funds allocated to a city or county, the Home
Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds
allocated to a city or county, fees or funds received by a city or
county pursuant to a city or county authorized program, and the
waiver or deferral of city or other charges.
   62103.  Every community revitalization plan shall contain both of
the following:
   (a) A provision that requires, whenever dwelling units housing
persons and families of low or moderate income are destroyed or
removed from the low- and moderate-income housing market as part of a
revitalization project, the authority to, within two years of such
destruction or removal, rehabilitate, develop, or construct, or cause
to be rehabilitated, developed, or constructed, for rental or sale
to persons and families of low or moderate income an equal number of
replacement dwelling units at affordable housing costs, as defined by
Section 50052.5 of the Health and Safety Code, within the
territorial jurisdiction of the authority, in accordance with all of
the provisions of Sections 62120 and 62120.5.
   (b) A provision that prohibits the number of housing units
occupied by extremely low, very low-, and low-income households,
including the number of bedrooms in those units, at the time the plan
is adopted, from being reduced in the plan area during the effective
period of the plan.
   62104.  Programs to assist or develop low- and moderate-income
housing pursuant to this part shall be entitled to priority
consideration after a program implemented by a housing successor
pursuant to Section 34176.1 of the Health and Safety Code for
assistance in housing programs administered by the California Housing
Finance Agency, the Department of Housing and Community Development,
and other state agencies and departments, if those agencies or
departments determine that the housing is otherwise eligible for
assistance under a particular program.
   62105.  The same notice requirements as specified in Section
65863.10 shall apply to multifamily rental housing that receives
financial assistance pursuant to Sections 62100 and 62101.
   62106.  Notwithstanding Sections 62100 and 62101, assistance
provided by an authority to preserve the availability to lower income
households of affordable housing units within the plan area which
are assisted or subsidized by public entities and which are
threatened with imminent conversion to market rates may be credited
and offset against an agency's obligations under Section 62100.
   62107.  (a) Except as otherwise provided in this subdivision, not
later than six months following the close of any fiscal year of an
authority in which excess surplus accumulates in the authority's Low
and Moderate Income Housing Fund, the authority may adopt a plan
pursuant to this section for expenditure of all moneys in the Low and
Moderate Income Housing Fund within five years from the end of that
fiscal year. The plan may be general and need not be site-specific,
but shall include objectives respecting the number and type of
housing to be assisted, identification of the entities, which will
administer the plan, alternative means of ensuring the affordability
of housing units for the longest feasible time, as specified in
subdivision (e) of Section 62101 the income groups to be assisted,
and a schedule by fiscal year for expenditure of the excess surplus.
   (b) The authority shall separately account for any excess surplus
accumulated each year either as part of or in addition to a Low and
Moderate Income Housing Fund.
   (c) If the authority develops a plan for expenditure of excess
surplus or other moneys in the Low and Moderate Income Housing Fund,
a copy of that plan and any amendments to that plan shall be included
in the authority's annual report pursuant to Section 62006.
   62108.  (a) (1) Upon failure of the authority to expend or
encumber excess surplus in the Low and Moderate Income Housing Fund
within one year from the date the moneys become excess surplus, as
defined in paragraph (1) of subdivision (g), the authority shall do
either of the following:
   (A) Disburse voluntarily its excess surplus to the county housing
authority, a private nonprofit housing developer, or to another
public agency exercising housing development powers within the
territorial jurisdiction of the agency in accordance with subdivision
(b).
   (B) Expend or encumber its excess surplus within two additional
years.
   (2) If an authority, after three years has elapsed from the date
that the moneys become excess surplus, has not expended or encumbered
its excess surplus, the authority shall be subject to sanctions
pursuant to subdivision (e), until the authority has expended or
encumbered its excess surplus plus an additional amount, equal to 50
percent of the amount of the excess surplus that remains at the end
of the three-year period. The additional expenditure shall not be
from the authority's Low and Moderate Income Housing Fund, but shall
be used in a manner that meets all requirements for expenditures from
that fund.
   (b) The housing authority or other public agency to which the
money is transferred shall utilize the moneys for the purposes of,
and subject to the same restrictions that are applicable to, the
authority under this part, and for that purpose may exercise all of
the powers of a housing authority under Part 2 (commencing with
Section 34200) of Division 24 of the Health and Safety Code to an
extent not inconsistent with these limitations.
   (c) Notwithstanding Section 34209 of the Health and Safety Code or
any other law, for the purpose of accepting a transfer of, and
using, moneys pursuant to this section, the housing authority of a
county or other public agency may exercise its powers within the
territorial jurisdiction of an authority located in that county.
   (d) The amount of excess surplus that shall be transferred to the
housing authority or other public agency because of a failure of the
authority to expend or encumber excess surplus within one year shall
be the amount of the excess surplus that is not so expended or
encumbered. The housing authority or other public agency to which the
moneys are transferred shall expend or encumber these moneys for
authorized purposes not later than three years after the date these
moneys were transferred from the Low and Moderate Income Housing
Fund.
   (e) (1) Until a time when the authority has expended or encumbered
excess surplus moneys pursuant to subdivision (a), the authority
shall be prohibited from encumbering any funds or expending any
moneys derived from any source, except that the authority may
encumber funds and expend moneys to pay the following obligations, if
any, that were incurred by the authority prior to three years from
the date the moneys became excess surplus:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an authority, whether funded, refunded,
assumed, or otherwise, pursuant to subdivision (f) of Section 62003.
   (B) Loans or moneys advanced to the authority, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) Contractual obligations which, if breached, could subject the
authority to damages or other liabilities or remedies.
   (D) Indebtedness incurred pursuant to Section 62100 or 62104.
   (E) An amount, to be expended for the operation and administration
of the authority, that may not exceed 75 percent of the amount spent
for those purposes in the preceding fiscal year.
   (2) This subdivision shall not be construed to prohibit the
expenditure of excess surplus funds or other funds to meet the
requirement in paragraph (2) of subdivision (a) that the agency spend
or encumber excess surplus funds, plus an amount equal to 50 percent
of excess surplus, prior to spending or encumbering funds for any
other purpose.
   (f) This section shall not be construed to limit any authority
that an authority may have under other provisions of this part to
contract with a housing authority, private nonprofit housing
developer, or other public agency exercising housing developer
powers, for increasing or improving the community's supply of low-
and moderate-income housing.
   (g) For purposes of this section:
   (1) "Excess surplus" means any unexpended and unencumbered amount
in an authority's Low and Moderate Income Housing Fund that exceeds
the greater of one million dollars ($1,000,000) or the aggregate
amount deposited into the Low and Moderate Income Housing Fund
pursuant to Sections 62100 and 62104 during the authority's preceding
four fiscal years. The first fiscal year to be included in this
computation is the 2016-17 fiscal year, and the first date on which
an excess surplus may exist is July 1, 2021.
   (2) Moneys shall be deemed encumbered if committed pursuant to a
legally enforceable contract or agreement for expenditure for
purposes specified in Sections 62100 and 62101.
   (3) (A) For purposes of determining whether an excess surplus
exists, it is the intent of the Legislature to give credit to
authorities which convey land for less than fair market value, on
which low- and moderate-income housing is built or is to be built if
at least 49 percent of the units developed on the land are available
at an affordable housing cost to lower income households for at least
the time specified in subdivision (e) of Section 62101, and
otherwise comply with all of the provisions of this division
applicable to expenditures of moneys from a low- and moderate-income
housing fund established pursuant to Section 62101. Therefore, for
the sole purpose of determining the amount, if any, of an excess
surplus, an authority may make the following calculation: if an
authority sells, leases, or grants land acquired with moneys from the
Low and Moderate Income Housing Fund, established pursuant to
Section 62101, for an amount which is below fair market value, and if
at least 49 percent of the units constructed or rehabilitated on the
land are affordable to lower income households, as defined in
Section 50079.5 of the Health and Safety Code, the difference between
the fair market value of the land and the amount the authority
receives may be subtracted from the amount of moneys in an agency's
Low and Moderate Income Housing Fund.
   (B) If taxes that are deposited in the Low and Moderate Income
Housing Fund are used as security for bonds or other indebtedness,
the proceeds of the bonds or other indebtedness, and income and
expenditures related to those proceeds, shall not be counted in
determining whether an excess surplus exists. The unspent portion of
the proceeds of bonds or other indebtedness, and income related
thereto, shall be excluded from the calculation of the unexpended and
unencumbered amount in the Low and Moderate Income Housing Fund when
determining whether an excess surplus exists.
   (C) This subdivision shall not be construed to restrict the
authority of an authority provided in any other provision of this
part to expend funds from the Low and Moderate Income Housing Fund.
   (D) The Department of Housing and Community Development shall
develop and periodically revise the methodology to be used in the
calculation of excess surplus as required by this section. The
director shall appoint an advisory committee to advise in the
development of this methodology. The advisory committee shall include
department staff, affordable housing advocates, and representatives
of the housing successors of former redevelopment agencies, the
League of California Cities, the California Society of Certified
Public Accountants, the Controller, and any other authorities or
persons interested in the field that the director deems necessary and
appropriate.
   (h) Communities in which an agency has disbursed excess surplus
funds pursuant to this section shall not disapprove a low- or
moderate-income housing project funded in whole or in part by the
excess surplus funds if the project is consistent with applicable
building codes and the land use designation specified in any element
of the general plan as it existed on the date the application was
deemed complete. A local agency may require compliance with local
development standards and policies appropriate to and consistent with
meeting the quantified objectives relative to the development of
housing, as required in housing elements of the community pursuant to
subdivision (b) of Section 65583.
   62109.  (a) Notwithstanding Sections 50079.5, 50093, and 50105 of
the Health and Safety Code, for purposes of providing assistance to
mortgagors participating in a homeownership residential mortgage
revenue bond program pursuant to Section 33750 of the Health and
Safety Code, or a home financing program pursuant to Section 52020 of
the Health and Safety Code, or a California Housing Finance Agency
home financing program, "area median income" means the highest of the
following:
   (1) Statewide median household income.
   (2) Countywide median household income.
   (3) Median family income for the area, as determined by the United
States Department of Housing and Urban Development with respect to
either a standard metropolitan statistical area or an area outside of
a standard metropolitan statistical area.
   (b) To the extent that any portion of the Low and Moderate Income
Housing Fund is expended to provide assistance to mortgagors
participating in programs whose income exceeds that of persons and
families of low or moderate income, as defined in Section 50093 of
the Health and Safety Code, the authority shall, within two years,
expend or enter into a legally enforceable agreement to expend twice
that sum exclusively to increase and improve the community's supply
of housing available at an affordable housing cost, as defined in
Section 50052.5, to lower income households, as defined in Section
50079.5 of the Health and Safety Code, of which at least 50 percent
shall be very low income households, as defined in Section 50105 of
the Health and Safety Code.
   (c) In addition to the requirements of subdivision (c) of Section
33413 of the Health and Safety Code, the authority shall require that
the lower and very low income dwelling units developed pursuant to
this subdivision remain available at an affordable housing cost to
lower and very low income households for at least 45 years, except as
to dwelling units developed with the assistance of federal or state
subsidy programs which terminate in a shorter period and cannot be
extended or renewed.
   (d) The authority shall include within the report required by
Section 62008 information with respect to compliance by the agency
with the requirements of this subdivision.
   62110.  The covenants or restrictions imposed by the authority
pursuant to subdivision (f) of Section 62101 may be subordinated
under any of the following alternatives:
   (a) To a lien, encumbrance, or regulatory agreement under a
federal or state program when a federal or state agency is providing
financing, refinancing, or other assistance to the housing units or
parcels, if the federal or state agency refuses to consent to the
seniority of the authority's covenant or restriction on the basis
that it is required to maintain its lien, encumbrance, or regulatory
agreement or restrictions due to statutory or regulatory
requirements, adopted or approved policies, or other guidelines
pertaining to the financing, refinancing, or other assistance of the
housing units or parcels.
   (b) To a lien, encumbrance, or regulatory agreement of a lender
other than the authority or from a bond issuance providing financing,
refinancing, or other assistance of owner-occupied units or parcels
where the authority makes a finding that an economically feasible
alternative method of financing, refinancing, or assisting the units
or parcels on substantially comparable terms and conditions, but
without subordination, is not reasonably available.
   (c) To an existing lien, encumbrance, or regulatory agreement of a
lender other than the authority or from a bond issuance providing
financing, refinancing, or other assistance of rental units, where
the agency's funds are utilized for rehabilitation of the rental
units.
   (d) To a lien, encumbrance, or regulatory agreement of a lender
other than the authority or from a bond issuance providing financing,
refinancing, or other assistance of rental units or parcels where
the authority makes a finding that an economically feasible
alternative method of financing, refinancing, or assisting the units
or parcels on substantially comparable terms and conditions, but
without subordination, is not reasonably available, and where the
authority obtains written commitments reasonably designed to protect
the authority's investment in the event of default, including, but
not limited to, any of the following:
   (1) A right of the authority to cure a default on the loan.
   (2) A right of the authority to negotiate with the lender after
notice of default from the lender.
   (3) An agreement that if prior to foreclosure of the loan, the
authority takes title to the property and cures the default on the
loan, the lender will not exercise any right it may have to
accelerate the loan by reason of the transfer of title to the
authority.
   (4) A right of the authority to purchase property from the owner
at any time after a default on the loan.
   62111.  Subsidies provided pursuant to subdivision (e) of Section
62100 may include payment of a portion of the principal and interest
on bonds issued by a public agency to finance housing for persons and
families specified in that paragraph if the authority ensures by
contract that the benefit of the subsidy will be passed on to those
persons and families in the form of lower housing costs.
   62112.  For each interest in real property acquired using moneys
from the Low and Moderate Income Housing Fund, the authority shall,
within five years from the date it first acquires the property
interest for the development of housing affordable to persons and
families of low and moderate income, initiate activities consistent
with the development of the property for that purpose. These
activities may include, but are not limited to, zoning changes or
agreements entered into for the development and disposition of the
property. If these activities have not been initiated within this
period, the city or county that created the authority may, by
resolution, extend the period during which the authority may retain
the property for one additional period not to exceed five years. The
resolution of extension shall affirm the intention of the city or
county that the property be used for the development of housing
affordable to persons and families of low and moderate income. In the
event that physical development of the property for this purpose has
not begun by the end of the extended period, or if the authority
does not comply with this requirement, the property shall be sold and
the moneys from the sale, less reimbursement to the agency for the
cost of the sale, shall be deposited in the authority's Low and
Moderate Income Housing Fund.
      CHAPTER 2.  REPLACEMENT AND LOCATION


   62115.  The authority shall prepare a feasible method or plan for
relocation of all of the following:
   (a) Families and persons to be temporarily or permanently
displaced from housing facilities in the plan area.
   (b) Nonprofit local community institutions to be temporarily or
permanently displaced from facilities actually used for institutional
purposes in the project area.
   (c) The relocation plan required by this section shall comply with
the relocation plan and assistance requirements of Chapter 16
(commencing with Section 7260) of Division 7 of Title 1.
   62116.  The city, county, or city and county that created the
authority shall insure that the method or plan of the authority for
the relocation of families or single persons to be displaced by a
revitalization project shall provide that no persons or families of
low and moderate income shall be displaced unless and until there is
a suitable housing unit available and ready for occupancy by the
displaced person or family at rents comparable to those at the time
of their displacement and that all other requirements of Chapter 16
(commencing with Section 7260) of Division 7 of Title 1 of the
Government Code are met. The housing units shall be suitable to the
needs of those displaced persons or families and must be decent,
safe, sanitary, and otherwise standard dwellings. The authority shall
not displace the person or family until the housing units are
available and ready for occupancy.
   62117.  Whenever all or any portion of a revitalization plan area
is developed with low- or moderate-income housing units and whenever
any low- or moderate-income housing units are developed with any
authority assistance or pursuant to Section 62120, the authority
shall require in the recorded covenants for those units that the
housing be made available for rent or purchase to the persons and
families of low or moderate income displaced by the revitalization
project. Those persons and families shall be given priority in
renting or buying that in advance of marketing the units to the
general public. Failure to give that priority shall not affect the
validity of title to real property; however, a unit may not be
counted as a replacement or production unit in the event of
noncompliance with this provision. The authority shall keep a list of
persons and families of low and moderate income displaced by the
revitalization project who are to be given priority, and may
establish reasonable rules for determining the order or priority on
the list. The list shall be provided to the owner of those properties
at or before any certificate of occupancy is issued.
   62118.  If insufficient suitable housing units are available in
the plan area for low- and moderate-income persons and families to be
displaced from a community revitalization area, the city council or
board of supervisors that created the authority shall assure that
sufficient land be made available within its territorial jurisdiction
for suitable housing                                           for
rental or purchase by low- and moderate-income persons and families.
If insufficient suitable housing units are available in the community
for use by persons and families of low and moderate income displaced
by the revitalization project, the authority may, to the extent of
that deficiency, direct or cause the development, rehabilitation, or
construction of housing units within the community, both inside and
outside of revitalization plan areas.
   62119.  Permanent housing facilities shall be made available
within two years from the time occupants are displaced and that
pending the development of such facilities there will be available to
such displaced occupants adequate temporary housing facilities at
rents comparable to the units from which the displaced occupants were
displaced.
   62120.  (a) Whenever dwelling units housing persons and families
of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a revitalization project
that is subject to a written agreement with the authority or where
financial assistance has been provided by the authority, the
authority shall, within two years of the destruction or removal,
rehabilitate, develop, or construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families
of low or moderate income, an equal number of replacement dwelling
units that have an equal or greater number of bedrooms as those
destroyed or removed units at affordable housing costs within the
territorial jurisdiction of the authority. One hundred percent of the
replacement dwelling units shall be available at an affordable
housing cost to persons in the same or a lower income category
(extremely low, low, very low, or moderate), as the persons displaced
from those destroyed or removed units.
   (b) (1) Prior to the time limit on the effectiveness of the
community revitalization plan established pursuant to subdivision (g)
of Section 62003 at least 30 percent of all new and substantially
rehabilitated dwelling units developed by an authority shall be
available at affordable housing cost to, and occupied by, persons and
families of low or moderate income. Not less than 50 percent of the
dwelling units required to be available at affordable housing cost
to, and occupied by, persons and families of low or moderate income
shall be available at affordable housing cost to, and occupied by,
very low income households.
   (2) (A) (i) Prior to the time limit on the effectiveness of the
revitalization plan established pursuant to subdivision (g) of
Section 62003 at least 15 percent of all new and substantially
rehabilitated dwelling units developed within a plan area under the
jurisdiction of an authority by public or private entities or persons
other than the authority shall be available at affordable housing
cost to, and occupied by, persons and families of low or moderate
income. Not less than 40 percent of the dwelling units required to be
available at affordable housing cost to, and occupied by, persons
and families of low or moderate income shall be available at
affordable housing cost to, and occupied by, very low income
households.
   (ii) To satisfy this paragraph, in whole or in part, the authority
may cause, by regulation or agreement, to be available, at an
affordable housing cost, to, and occupied by, persons and families of
low or moderate income or to very low income households, as
applicable, two units outside a project area for each unit that
otherwise would have been required to be available inside a project
area.
   (iii) "Substantially rehabilitated dwelling units" means all units
substantially rehabilitated, with authority assistance.
   (iv) As used in this paragraph and in paragraph (1), "substantial
rehabilitation" means rehabilitation, the value of which constitutes
25 percent of the after rehabilitation value of the dwelling,
inclusive of the land value.
   (B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the authority may purchase, or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of,
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and
families of low- or very low income households, as applicable; or
(ii) are units that are presently available at affordable housing
cost to this same group of persons or families, but are units that
the authority finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
   (C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost to, and
occupied by, persons and families of low or very low income, for the
longest feasible time but not less than 55 years for rental units and
45 years for owner-occupied units. Not more than 50 percent of the
units made available pursuant to paragraph (1) and subparagraph (A)
may be assisted through the purchase or acquisition of long-term
affordability covenants pursuant to subparagraph (B). Not less than
50 percent of the units made available through the purchase or
acquisition of long-term affordability covenants pursuant to
subparagraph (B) shall be available at affordable housing cost to,
and occupied by, very low income households.
   (D) To satisfy the requirements of paragraph (1) and subparagraph
(A), each mutual self-help housing unit, as defined in subparagraph
(C) of paragraph (1) of subdivision (f) of Section 62101, that is
subject to a 15-year deed restriction shall count as one-third of a
unit.
   (3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a). The requirements of this
subdivision shall apply, in the aggregate, to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units, unless an agency determines otherwise.
   (4) Each authority, as part of the community revitalization and
investment plan required by Section 62003, shall adopt a plan to
comply with the requirements of this subdivision. The plan shall be
consistent with the community's housing element. The plan shall be
reviewed and, if necessary, amended at least in conjunction with the
plan implementation cycle. The plan shall ensure that the
requirements of this subdivision are met every 10 years. If the
requirements of this subdivision are not met by the end of each
10-year period, the agency shall meet these goals on an annual basis
until the requirements for the 10-year period are met. If the agency
has exceeded the requirements within the 10-year period, the agency
may count the units that exceed the requirement in order to meet the
requirements during the next 10-year period.
   (c) (1) The authority shall require all replacement dwelling units
and other dwelling units rehabilitated, developed, constructed, or
price restricted pursuant to subdivision (a) or (b) remain available
at affordable housing cost to, and occupied by, persons and families
of extremely low income, low-income, moderate-income, and very low
income households, respectively, for the longest feasible time, but
for not less than 55 years for rental units, 45 years for home
ownership units, and 15 years for mutual self-help housing units, as
defined in subparagraph (C) of paragraph (1) of subdivision (f) of
Section 62101, except as set forth in paragraph (2). Nothing in this
paragraph precludes the agency and the developer of the mutual
self-help housing units from agreeing to 45-year deed restrictions.
   (2) Notwithstanding paragraph (1), the authority may permit sales
of owner-occupied units prior to the expiration of the 45-year
period, and mutual self-help housing units prior to the expiration of
the 15-year period, established by the authority for a price in
excess of that otherwise permitted under this subdivision pursuant to
an adopted program that protects the authority's investment of
moneys from the Low and Moderate Income Housing Fund, including, but
not limited to, an equity sharing program that establishes a schedule
of equity sharing that permits retention by the seller of a portion
of those excess proceeds, based on the length of occupancy. The
remainder of the excess proceeds of the sale shall be allocated to
the authority, and deposited into the Low and Moderate Income Housing
Fund. The authority shall, within three years from the date of sale
pursuant to this paragraph of each home ownership or mutual self-help
housing unit subject to a 45-year deed restriction, and every third
mutual self-help housing unit subject to a 15-year deed restriction,
expend funds to make affordable an equal number of units at the same
or lowest income level as the unit or units sold pursuant to this
paragraph, for a period not less than the duration of the original
deed restrictions. Only the units originally assisted by the
authority shall be counted towards the authority's obligations under
Section 62120.
   (3) The requirements of this section shall be made enforceable in
the same manner as provided in paragraph (7) of subdivision (f) of
Section 62101.
   (4) If land on which the dwelling units required by this section
are located is deleted from the plan area, the authority shall
continue to require that those units remain affordable as specified
in this subdivision.
   (5) For each unit counted towards the requirements of subdivisions
(a) and (b), the authority shall require the recording in the office
of the county recorder of covenants or restrictions that ensure
compliance with this subdivision and shall comply with the
requirements of paragraphs (3) and (4) of subdivision (f) of Section
62101.
   (d) Except as otherwise authorized by law, this section does not
authorize an authority to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
   (e) Notwithstanding subdivision (a), the authority may replace
destroy or remove dwelling units with a fewer number of replacement
dwelling units if the replacement dwelling units meet both of the
following criteria:
   (1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units. Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
   (2) The replacement units are affordable to, and occupied by, the
same income level of households as the destroyed or removed units.
   (f) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
   62120.5.  (a) Not less than 30 days prior to the execution of an
agreement for acquisition of real property, or the execution of an
agreement for the disposition and development of property, or the
execution of an owner participation agreement, which agreement would
lead to the destruction or removal of dwelling units from the low-
and moderate-income housing market, the authority shall adopt by
resolution a replacement housing plan. Not less than 30 days prior to
adopting a replacement housing plan by resolution, the authority
shall make available a draft of the proposed replacement housing plan
for review and comment by property owners and residents within the
plan area, any persons who have requested notice of that replacement
housing plan, other public agencies, and the general public.
   The replacement housing plan shall include all of the following:
   (1) A description of the housing to be destroyed or removed,
including the address, parcel number, number and size of units,
whether the units are occupied, and if so, the income categories of
the occupants, if that information is available, whether the units
are rental or ownership, the rent levels or sale price of the units,
and if the units have existing affordable covenants, the nature and
source of the subsidy and duration of the covenants.
   (2) A description of the housing to be rehabilitated, developed,
or constructed pursuant to Section 62120 to replace the units
described in paragraph (1), including the general location of the
replacement units, the number and size of the replacement units, the
affordability levels of the replacement units, whether the
replacement units will be rental or ownership, and duration of the
affordability covenants applicable to the units.
   (3) An analysis of the cost of producing the replacement units and
a description of the source and adequacy of funds or financing, or
both, available for the rehabilitation, development, or construction.

   (4) A finding that the replacement housing does not require the
approval of the voters pursuant to Article XXXIV of the California
Constitution, or that such approval has been obtained.
   (5) The timetable for meeting the plan's relocation,
rehabilitation, and replacement housing objectives. A dwelling unit
whose replacement is required by Section 62120 but for which no
replacement housing plan has been prepared, shall not be destroyed or
removed from the low- and moderate-income housing market until the
agency has by resolution adopted a replacement housing plan.
   (b) Nothing in this section shall prevent an authority from
destroying or removing from the low- and moderate-income housing
market a dwelling unit which the authority owns and which is an
immediate danger to health and safety. The authority shall, as soon
as practicable, adopt by resolution a replacement housing plan with
respect to that dwelling unit pursuant to this part.
   62120.7.  An authority causing the rehabilitation, development, or
construction of replacement dwelling units, other than single-family
residences, pursuant to Section 62120, or pursuant to a replacement
housing plan as required by Section 62120.5, or pursuant to
provisions of a revitalization plan required by Section 62103,
primarily for persons of low income, as defined in Section 50093 of
the Health and Safety Code, shall give preference to those
developments that are proposed to be organized as limited-equity
housing cooperatives, when so requested as part of the public review,
provided the project is achievable in an efficient and timely
manner.
   The limited-equity housing cooperatives shall, in addition to the
provisions of Section 817 of the Civil Code, be organized so that the
consideration paid for memberships or shares by the first occupants
following construction or acquisition by the corporation, including
the principal amount of obligations incurred to finance the share or
membership purchase, does not exceed 3 percent of the development
cost or acquisition cost, or of the fair market value appraisal by
the permanent lender, whichever is greater.
   62121.  An authority shall provide relocation assistance and shall
make all of the payments required by Chapter 16 (commencing with
Section 7260) of Division 7 of Title 1, including the making of those
payments financed by the federal government.
   This section shall not be construed to limit any other authority
which an authority may have to make other relocation assistance
payments, or to make any relocation assistance payment in an amount
which exceeds the maximum amount for that payment authorized by
Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
   62122.  In order to facilitate the rehousing of families and
single persons displaced by any governmental action, an authority, at
the request of the city council or board of supervisors that created
the authority, may dispose of the real property acquired under the
provisions of subdivision (b) of section 62201, by sale or long-term
lease, for use as, or development of, housing for those displaced
persons.
   62123.  (a) An authority shall monitor, on an ongoing basis, any
housing affordable to persons and families of low or moderate income
developed or otherwise made available pursuant to any provisions of
this part. As part of this monitoring, an authority shall require
owners or managers of the housing to submit an annual report to the
authority. The annual reports shall include for each rental unit the
rental rate and the income and family size of the occupants, and for
each owner-occupied unit whether there was a change in ownership from
the prior year and, if so, the income and family size of the new
owners. The income information required by this section shall be
supplied by the tenant in a certified statement on a form provided by
the authority.
   (b) The data specified in subdivision (a) shall be obtained by the
authority from owners and managers of the housing specified therein
and current data shall be included in any reports required by law to
be submitted to the Department of Housing and Community Development
or the Controller. The information on income and family size that is
required to be reported by the owner or manager shall be supplied by
the tenant and shall be the only information on income or family size
that the owner or manager shall be required to submit on his or her
annual report to the agency.
   (c) (1) The authority shall compile and maintain a database of
existing, new, and substantially rehabilitated, housing units
developed or otherwise assisted with moneys from the Low and Moderate
Income Housing Fund, or otherwise counted towards the requirements
of subdivision (a) or (b) of Section 62120. The database shall be
posted in an easily identifiable and accessible location on the
authority's Internet Web site and updated on an annual basis and
shall include the date the database was last updated. The database
shall require all of the following information for each
owner-occupied unit or rental unit, or for each group of units, if
more than one unit is subject to the same covenant:
   (A) The street address and the assessor's parcel number of the
property.
   (B) The size of each unit, measured by the number of bedrooms.
   (C) The year in which the construction or substantial
rehabilitation of the unit was completed.
   (D) The date of recordation and document number of the
affordability covenants or restrictions required under subdivision
(f) of Section 33334.3 of the Health and Safety Code.
   (E) The date on which the covenants or restrictions expire.
   (F) For owner-occupied units that have changed ownership during
the reporting year, as described in subdivision (a), the date and
document number of the new affordability covenants or other documents
recorded to assure that the affordability restriction is enforceable
and continues to run with the land.
   (G) Whether occupancy in the unit or units is restricted to any
special population, including, but not limited to, senior citizens
and persons with disabilities.
   (H) Whether occupancy in the unit or units is restricted to an
extremely low, very low, low-, or moderate-income household.
   (2) Notwithstanding subparagraphs (A) and (D) of paragraph (1),
the database shall omit any property used to confidentially house
victims of domestic violence.
   (3) Upon establishment of a database under this section, the
authority shall provide reasonable notice to the community regarding
the existence of the database.
   (d) The authority shall adequately fund its monitoring activities
as needed to insure compliance of applicable laws and agreements in
relation to affordable units. For purposes of defraying the cost of
complying with the requirements of this section and the changes in
reporting requirements enacted by the act enacting this section, an
authority may establish and impose fees upon owners of properties
monitored pursuant to this section.

      PART 3.  Property Acquisition


   62200.  "Real property" means any of the following:
   (a) Land, including land under water and waterfront property.
   (b) Buildings, structures, fixtures, and improvements on the land.

   (c) Any property appurtenant to or used in connection with the
land.
   (d) Every estate, interest, privilege, easement, franchise, and
right in land, including rights-of-way, terms for years, and liens,
charges, or encumbrances by way of judgment, mortgage, or otherwise
and the indebtedness secured by those liens.
   62201.  Within the plan area or for purposes of revitalization an
authority may:
   (a) Purchase, lease, obtain option upon, acquire by gift, grant,
bequest, devise, or otherwise, any real or personal property, any
interest in property, and any improvements on it, including
repurchase of developed property previously owned by the authority.
An authority shall obtain an appraisal from a qualified independent
appraiser to determine the fair market value of property before the
authority acquires or purchases real property.
   (b) Accept, at the request of the legislative body of the
community, a conveyance of real property (located either within or
outside the plan area) owned by a public entity and declared surplus
by the public entity, or owned by a private entity. The authority may
dispose of that property to private persons or to public or private
entities, by sale or long-term lease for development. All or any part
of the funds derived from the sale or lease of that property may, at
the discretion of the legislative body of the community, be paid to
the community, or to the public entity from which any of that
property was acquired.
   (c) Sell, lease, grant, or donate real property owned or acquired
by the authority in a plan area to a housing authority or to any
public agency for public housing projects.
   (d) Offer for resale property acquired by an authority for
rehabilitation and resale within one year after completion of
rehabilitation. Properties held by the authority in excess of a
one-year period shall be listed in the authority's annual report with
information conveying the reasons that property remains unsold and
indicating plans for its disposition.
   (e) Acquire real property by eminent domain, provided that
authority is exercised within 12 years from the adoption of the plan.

   (1) Every plan adopted by an authority which contemplates property
owner participation in the revitalization of the plan area shall
contain alternative provisions for revitalization of the property if
the owners fail to participate in the revitalization as agreed. Prior
to the adoption of a plan, each property owner whose property would
be subject to acquisition by purchase or condemnation under the plan
shall be sent a statement in nontechnical language and in a clear and
coherent manner using words with common and everyday meaning to that
effect attached to the notice of the hearing as required by
subdivision (b) of Section 62004. Alternatively, a list or map of all
properties which would be subject to acquisition by purchase or
condemnation under the plan may be mailed to affected property owners
with the notices of hearing pursuant to Section 62004.
   (2) Without the consent of an owner, an authority shall not
acquire any real property on which an existing building is to be
continued on its present site and in its present form and use unless
that building requires structural alteration, improvement,
modernization, or rehabilitation, or the site or lot on which the
building is situated requires modification in size, shape, or use, or
it is necessary to impose upon that property any of the standards,
restrictions, and controls of the plan and the owner fails or refuses
to agree to participate in the plan.
   (3) Property already devoted to a public use may be acquired by
the agency through eminent domain, but property of a public body
shall not be acquired without its consent.
   (4) An authority shall not acquire from any of its members or
officers any property or interest in property except through eminent
domain proceedings.
   62202.  An authority shall not provide any form of direct
assistance to:
   (a) An automobile dealership that will be or is on a parcel of
land which has not previously been developed for urban use.
   (b) A development that will be or is on a parcel of land of five
acres or more which has not previously been developed for urban use
and that will, when developed, generate sales or use tax pursuant to
Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code, unless the principal permitted use of the
development is office, hotel, manufacturing, or industrial. For the
purposes of this subdivision, a parcel shall include land on an
adjacent or nearby parcel on which a use exists that is necessary for
the legal development of the parcel.
   (c) A development or business, either directly or indirectly, for
the acquisition, construction, improvement, rehabilitation, or
replacement of property that is or would be used for gambling or
gaming of any kind whatsoever, including, but not limited to,
casinos, gaming clubs, bingo operations, or any facility wherein
banked or percentage games, any form of gambling device, or
lotteries, other than the California State Lottery, are or will be
played.
   (d) The prohibition in subdivision (c) is not intended to prohibit
an authority from acquiring property on or in which an existing
gambling enterprise is located, for the purpose of selling or leasing
the property for uses other than gambling, provided that the agency
acquires the property for fair market value.
   (e) This section shall not be construed to apply to an authority's
assistance in the construction of public improvements that serve all
or a portion of a project area and that are not required to be
constructed as a condition of approval of a development described in
subdivision (a), (b), or (c), or to prohibit assistance in the
construction of public improvements that are being constructed for a
development that is not described in subdivision (a), (b), or (c).
   62203.  (a) Any covenants, conditions, or restrictions existing on
any real property within a plan area prior to the time the authority
acquires title to that property, which covenants, conditions, or
restrictions restrict or purport to restrict the use of, or building
upon, that real property, shall be void and unenforceable as to the
authority and any other subsequent owners, tenants, lessees, easement
holders, mortgagees, trustees, beneficiaries under a deed of trust,
or any other persons or entities acquiring an interest in that real
property from that time as title to the real property is acquired by
an authority whether acquisition is by gift, purchase, eminent
domain, or otherwise.
           (b) Thirty days prior to the acquisition of real property
other than by eminent domain, the authority shall provide notice of
that acquisition and the provisions of this section to holders of
interests which would be made void and unenforceable pursuant to this
section, as follows:
   (1) The authority shall publish notice once in a newspaper of
general circulation in the community in which the agency is
functioning.
   (2) The authority shall mail notice to holders of those interests
if those holders appear of record 60 days prior to the date of
acquisition.
   The authority may accept any release by written instrument from
the holder of any interest or may commence action to acquire that
interest after the date of acquisition of the real property.
   (c) This section shall not apply to covenants, conditions, or
restrictions imposed by an authority pursuant to a plan. This section
also shall not apply to covenants, conditions, or restrictions where
an authority in writing expressly acquires or holds property subject
to those covenants, conditions, or restrictions.
   This section shall not limit or preclude any rights of reversion
of owners, assignees, or beneficiaries of those covenants,
conditions, or restrictions limiting the use of land in gifts of land
to cities, counties, or other governmental entities. This section
shall not limit or preclude the rights of owners or assignees of any
land benefited by any covenants, conditions, or restrictions to
recover damages against the agency if under law that owner or
assignee has any right to damages. No right to damages shall exist
against any purchaser from the authority or his or her successors or
assignees, or any other persons or entities.
   62204.  (a) If an authority has adopted a plan but has not
commenced an eminent domain proceeding to acquire any particular
parcel of property subject to eminent domain thereunder within three
years after the date of adoption of the plan, the owner or owners of
the entire fee at any time thereafter may offer in writing to sell
the property to the authority for its fair market value. If the
authority does not, within 18 months from the date of receipt of the
original offer, acquire or institute eminent domain proceedings to
acquire the property, the property owner or owners may file an action
against the authority in inverse condemnation to recover damages
from the authority for any interference with the possession and use
of the real property resulting from the plan, provided that this
section shall not be construed as establishing or creating a
presumption to any right to damages or relief solely by reason of the
failure of the authority to acquire the property within the time set
forth in this section.
   (b) No claim need be presented against an authority under Part 3
(commencing with Section 900) of Division 3.6 of Title 1 as a
prerequisite to commencement or maintenance of an action under
subdivision (a), but any action shall be commenced within one year
and six months after the expiration of the 18 months period.
   (c) An authority may commence an eminent domain proceeding or
designate the property to be exempt from eminent domain under the
plan at any time before the property owner commences an action under
this section. If the authority commences an eminent domain proceeding
or designates the property to be exempt from acquisition by eminent
domain before the property owner commences an action under this
section, the property owner may not thereafter bring an action under
this section.
   (d) After a property owner has commenced an action under this
section, the authority may declare the property to be exempt from
acquisition by eminent domain and abandon the taking of the property
only under the same circumstances and subject to the same conditions
and consequences as abandonment of an eminent domain proceeding.
   (e) Commencement of an action under this section does not affect
any authority an authority may have to commence an eminent domain
proceeding, take possession of the property pursuant to Article 3
(commencing with Section 1255.410) of Chapter 6 of Title 7 of the
Code of Civil Procedure, or abandon the eminent domain proceeding.
   (f) In lieu of bringing an action under subdivision (a) or if the
limitations period provided in subdivision (b) has run, the property
owner may obtain a writ of mandate to compel the authority, within
that time as the court deems appropriate, to declare the property
acquisition exempt or to commence an eminent domain proceeding to
acquire the property.
   (g) A declaration that the property is exempt from acquisition by
eminent domain shall be by resolution and shall be recordable. It
shall exempt the property from eminent domain under the plan, and the
authority shall have no power of eminent domain as to the property.
   62205.  Section 1245.260 of the Code of Civil Procedure shall not
apply to any resolution or ordinance adopting, approving, or amending
the amendment of plan. Section 1245.260 of the Code of Civil
Procedure shall apply to a resolution adopted by an authority
pursuant to Section 1245.220 of the Code of Civil Procedure with
respect to a particular parcel or parcels of real property.
   62206.  (a) The authority shall obligate lessees and purchasers of
real property acquired in revitalization projects undertaken or
assisted by the authority and owners of property improved as a part
of a revitalization project to refrain from restricting the rental,
sale, or lease of the property on any basis listed in subdivision (a)
or (d) of Section 12955, as those basis are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p)
of Section 12955, and Section 12955.2. All deeds, leases, or
contracts for the sale, lease, sublease, or other transfer of any
land in a revitalization project shall contain or be subject to the
nondiscrimination or nonsegregation clauses hereafter prescribed.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9. With respect to
familial status, nothing in subdivision (a) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51, Section 4760, and Section 6714 of the Civil Code, and
subdivisions (n), (o), and (p) of Section 12955 shall apply to
subdivision (a).
   62207.  Express provisions shall be included in all deeds, leases,
and contracts that the authority proposes to enter into with respect
to the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any land in a revitalization project in substantially
the following form:
   (a) (1) In deeds the following language shall appear:

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

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

   "The lessee herein covenants by and for himself or herself, his or
her heirs, executors, administrators, and assigns, and all persons
claiming under or through him or her, and this lease is made and
accepted upon and subject to the following conditions:
   That there shall be no discrimination against or segregation of
any person or group of persons, on account of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those basis are defined in Sections 12926, 12926.1 of, subdivision
(m) and paragraph (1) of subdivision (p) of Section 12955 of, and
Section 12955.2 of, the Government Code, in the leasing, subleasing,
transferring, use, occupancy, tenure, or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with reference
to the selection, location, number, use, or occupancy, of tenants,
lessees, sublessees, subtenants, or vendees in the premises herein
leased."

   (2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9. With respect to
familial status, nothing in paragraph (1) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and
subdivisions (n), (o), and (p) of Section 12955 shall apply to
paragraph (1).
   (c) In contracts entered into by the agency relating to the sale,
transfer, or leasing of land or any interest therein acquired by the
agency within any survey area or redevelopment project the foregoing
provisions in substantially the forms set forth shall be included and
the contracts shall further provide that the foregoing provisions
shall be binding upon and shall obligate the contracting party or
parties and any subcontracting party or parties, or other transferees
under the instrument.
   62208.  (a) The authority shall retain controls and establish
restrictions or covenants running with land sold or leased for
private use for those periods of time and under those conditions as
are provided in the plan. The establishment of those controls is a
public purpose under this division.
   (b) An authority shall obligate lessees or purchasers of property
acquired in a revitalization project to:
   (1) Use the property for the purpose designated in the
revitalization plans.
   (2) Begin the revitalization of the project area within a period
of time which the authority fixes as reasonable.
   (3) Comply with the covenants, conditions, or restrictions that
the authority deems necessary to prevent speculation or excess
profittaking in undeveloped land, including right of reverter to the
agency. Covenants, conditions, and restrictions imposed by an
authority may provide for the reasonable protection of lenders.
   (4) Comply with other conditions which the authority deems
necessary to carry out the purposes of this part.