California Legislature—2015–16 Regular Session

Assembly Bill No. 313

Introduced by Assembly Member Atkins

February 12, 2015

An act to amend Sections 53398.52, 53398.56, 53398.57, 53398.62, 53398.63, 53398.66, 53398.67, 53398.68, 53398.69, and 53398.75 of, and to repeal and add Section 53398.74 of, the Government Code, relating to enhanced infrastructure financing districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 313, as introduced, Atkins. Enhanced infrastructure financing districts.

Existing law authorizes the legislative body of a city or a county, defined to include a city and county, to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase. Existing law requires proceedings for the establishment of a district to be instituted by the adoption of a resolution of intention to establish the proposed district, and imposes specified duties on the legislative body with respect to the preparation, proposal, and adoption of an infrastructure financing plan after that resolution of intent is adopted.

Existing law also requires the legislative body to establish a public financing authority, defined as the governing board of the enhanced infrastructure financing authority, prior to the adoption of a resolution to form an enhanced infrastructure district and infrastructure financing plan.

This bill would require, after the adoption of a resolution of intention to establish the proposed district, the legislative body to send a copy of the resolution to the public financing authority. This bill would revise the duties of the public financing authority after the resolution of intention to establish the proposed district has been adopted, so that the public financing authority, instead of the legislative body, will perform the specified duties related to the preparation, proposal, and adoption of the infrastructure financing plan and the adoption of the formation of the district.

This bill would provide that if a resolution is adopted to abandon proceedings to adopt the infrastructure financing plan, then the public financing authority ceases to exist and the legislative body is prohibited from enacting a resolution of intent to establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.

This bill would authorize the enhanced infrastructure financing district to finance the acquisition, construction, or rehabilitation of housing for persons of very low income for rent or purchase, as provided.

Existing law authorizes an enhanced infrastructure financing district to utilize any powers under the Polanco Redevelopment Act, which authorizes a redevelopment agency to take action to remedy or remove a release of hazardous substances on, under, or from property, subject to specified conditions. Existing law also authorizes a local agency to take any action similar to that authorized under the Polanco Redevelopment Act.

This bill would instead authorize an enhanced infrastructure financing district to utilize any powers under either law.

Existing law requires the infrastructure financing plan to provided for specific actions if any dwelling units are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, including, but not limited to, causing or requiring the construction or rehabilitation, for rent or sale to persons or families of low or moderate income, of an equal number of replacement dwelling units at affordable housing cost within the territory of the district and providing relocation assistance to persons displaced by any public or private development occurring within the territory of the district.

This bill would revise and recast those provisions, and would require the infrastructure financing plan to contain those provisions if any dwelling units are proposed to be removed or destroyed either in the course of private development that is financed by the district or by public works construction resulting from the infrastructure financing plan.

Article XIIIB of the California Constitution (Article XIII B) prohibits the annual appropriations subject to limitation of a local government, defined to include a special district, from exceeding its annual appropriations limit, but allows for that appropriations limit to be established or changed by the electors of that entity in conformity with existing constitutional and statutory laws. Article XIII B defines “appropriations subject to limitation” as any authorization to expend during a fiscal year the proceeds of taxes levied by or for that entity. Existing law allows the public financing authority to submit a proposition to establish or change the appropriations limit of an enhanced infrastructure financing district to the qualified electors of a proposed or established district, which is effective if approved by the qualified electors.

Existing law also authorizes an enhanced infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxing entities, as defined.

This bill would repeal those provisions allowing the public financing authority to submit a proposition to establish or change the appropriations limit of the district, and instead provide that the allocation and payment to an enhanced infrastructure district of tax increment for the purpose of paying specified amounts incurred by the district is not the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B, and is not the receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B.

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

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

SECTION 1.  

Section 53398.52 of the Government Code is
amended to read:

53398.52.  

(a) (1) A district may finance any of the following:

(A) The purchase, construction, expansion, improvement,
seismic retrofit, or rehabilitation of any real or other tangible
property with an estimated useful life of 15 years or longer that
satisfies the requirements of subdivision (b).

(B) The planning and design work that is directly related to the
purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 53398.56 and 53398.57.

(2) The facilities need not be physically located within the
boundaries of the district. However, any facilities financed outside
of a district must have a tangible connection to the work of the
district, as detailed in the infrastructure financing plan adopted
pursuant to Section 53398.69.

(3) A district may not finance routine maintenance, repair work,
or the costs of an ongoing operation or providing services of any
kind.

(b) The district shall finance only public capital facilities or
other specified projects of communitywide significance that
provide significant benefits to the district or the surrounding
community, including, but not limited to, all of the following:

(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and
interceptor pipes.

(3) Facilities for the collection and treatment of water for urban
uses.

(4) Flood control levees and dams, retention basins, and drainage
channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.

(9) Brownfield restoration and other environmental mitigation.

(10) The development of projects on a former military base,
provided that the projects are consistent with the military base
authority reuse plan and are approved by the military base reuse
authority, if applicable.

(11) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851 that occurred on or after
the creation of the district.

(12) The acquisition, construction, or rehabilitation of housing
for persons of begin delete low end delete begin insert very low, low, end insert and moderate income, as defined
in begin delete Section end delete begin insert Sections 50105 and end insert 50093 of the Health and Safety
Code, for rent or purchase.

(13) Acquisition, construction, or repair of industrial structures
for private use.

(14) Transit priority projects, as defined in Section 21155 of
the Public Resources Code, that are located within a transit priority
project area. For purposes of this paragraph, a transit priority
project area may include a military base reuse plan that meets the
definition of a transit priority project area and it may include a
contaminated site within a transit priority project area.

(15) Projects that implement a sustainable communities strategy,
when the State Air Resources Board, pursuant to Chapter 2.5
(commencing with Section 65080) of Division 2 of Title 7, has
accepted a metropolitan planning organization’s determination
that the sustainable communities strategy or the alternative planning
strategy would, if implemented, achieve the greenhouse gas
emission reduction targets.

(c) The district shall require, by recorded covenants or
restrictions, that housing units built pursuant to this section shall
remain available at affordable housing costs to, and occupied by,
persons and families of begin delete low- end delete begin insert very low, low, end insert or moderate-income
households for the longest feasible time, but for not less than 55
years for rental units and 45 years for owner-occupied units.

(d) The district may finance mixed-income housing
developments, but may finance only those units in such a
development that are restricted to occupancy by persons of begin delete low end delete
begin insert very low, low, end insert or moderate incomes as defined in begin delete Section end delete begin insert Sections
50105 and end insert 50093 of the Health and Safety Code, and those onsite
facilities for child care, after-school care, and social services that
are integrally linked to the tenants of the restricted units.

(e) A district may utilize any powers under begin insert either end insert the Polanco
Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety Code) begin insert or Chapter 6.10 (commencing with Section 25403)
of Division 20 of the Health and Safety Code end insert , and finance any
action necessary to implement that act.

SEC. 2.  

Section 53398.56 of the Government Code is amended
to read:

53398.56.  

It is the intent of the Legislature that the creation of
the districts should not ordinarily lead to the removal of existing
dwelling units. If, however, any dwelling units are proposed to be
removed or destroyed in the course of private development begin insert that is
financed by the district end insert or public works construction begin delete within the
area of the district, end delete begin insert as a result of end insert the infrastructure financing plan
adopted pursuant to Section 53398.69 begin insert , then that infrastructure
financing plan end insert shall contain provisions to do all of the following:

begin delete

(a) Within two years of the removal or destruction, cause or
require the construction or rehabilitation, for rent or sale to persons
or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined
in Section 50052.5 of the Health and Safety Code, within the
territory of the district if the dwelling units removed were inhabited
by persons or families of low or moderate income, as defined in
Section 50093 of the Health and Safety Code.

(b) Within two years of the removal or destruction, cause or
require the construction or rehabilitation, for rent or sale to persons
of low or moderate income, a number of dwelling units that is at
least one unit but not less than 25 percent of the total dwelling
units removed at affordable housing cost, as defined in Section
50052.5 of the Health and Safety Code, within the territory of the
district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in
Section 50093 of the Health and Safety Code.

(c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of
Division 7 of Title 1, to persons displaced by any public or private
development occurring within the territory of the district. This
displacement shall be deemed to be the result of public action.

(d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not
take place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families
were displaced, available and ready for occupancy by the residents
of the units at the time of their displacement. The housing units
shall be suitable to the needs of these displaced persons or families,
and shall be decent, safe, sanitary, and otherwise standard
dwellings.

end delete begin insert

(a) If the dwelling units to be removed or destroyed are or were
inhabited by persons or families of very low, low, or moderate
income, as defined in Sections 50105 and 50093 of the Health and
Safety Code, at any time within five years prior to establishment
of the district, cause or require the construction or rehabilitation
of an equal number of replacement dwelling units, within one-half
mile of the location of the units to be removed or destroyed, that
have an equal or greater number of bedrooms as those removed
or destroyed units, within two years of the removal or destruction
of the dwelling units. The replacement dwelling units shall be
available for rent or sale to persons or families of very low, low,
or moderate income, at affordable rent, as defined in Section 50053
of the Health and Safety Code, or at affordable housing cost, as
defined in Section 50052.5 of the Health and Safety Code, to
persons in the same or a lower income category (extremely low,
very low, low, or moderate), as the persons displaced from, or
who last occupied, the removed or destroyed dwelling units.

end insert begin insert

(b) If the dwelling units to be removed or destroyed were not
inhabited by persons of low or moderate income within the period
of time specified in subdivision (a), cause or require the
construction or rehabilitation within one-half mile of the location
of the units to be removed or destroyed of at least one unit but not
less than 25 percent of the total dwelling units removed or
destroyed, within two years of the removal or destruction of the
dwelling units. The units constructed or rehabilitated pursuant to
this subdivision shall be of equivalent size and type to the units to
be removed or destroyed. An equal percentage of the replacement
dwelling units constructed or rehabilitated pursuant to this
subdivision shall be available for rent or sale at affordable rent,
as defined in Section 50053 of the Health and Safety Code, or
affordable housing cost, as defined in Section 50052.5 of the Health
and Safety Code, to extremely low and very low income persons
or families, as defined in Sections 50106 and 50105 of the Health
and Safety Code.

end insert begin insert

(c) Comply with all relocation assistance requirements of
Chapter 16 (commencing with Section 7260) of Division 7 of Title
1, for persons displaced from dwelling units by any public or
private action occurring as a result of the infrastructure financing
plan adopted pursuant to Section 53398.69. The displacement of
any persons from a dwelling unit as a result of the plan shall be
deemed to be the result of public action.

end insert begin insert

(d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not
take place unless and until there has been full compliance with
the relocation assistance requirements of this section, Section
53398.63, and Chapter 16 (commencing with Section 7260) of
Division 7 of Title 1.

end insert

(e) (1) The district shall require, by recorded covenants or
restrictions, that begin delete housing end delete begin insert all dwelling end insert units begin delete built end delete begin insert constructed or
rehabilitated end insert pursuant to this section shall remain available at
affordable begin insert rent or end insert housing begin delete costs end delete begin insert cost end insert to, and occupied by, persons
and families of begin delete low- or moderate-income households end delete begin insert the same
income categories as required by subdivision end insert begin insert (a) or (b), as
applicable, end insert for the longest feasible time, but for not less than 55
years for rental units and 45 years for owner-occupied units.

begin delete

(2) In lieu of a 45-year covenant or restriction, the district may
subject owner-occupied units to an equity sharing agreement
described in paragraph (2) of subdivision (c) of Section 65915.

end delete begin insert

(2) The district 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 district’s investment of moneys in the
unit or units, including, but not limited to, an equity sharing
program, not in conflict with another public funding source or
law, 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. For purposes of this paragraph, the
terms of the equity sharing program shall be consistent with the
provisions of paragraph (2) of subdivision (c) of Section 65915,
provided, however, that the program shall require any amounts
recaptured by the district to be used within five years for any of
the affordable housing purposes described in Section 34176.1 of
the Health and Safety Code.

end insert

SEC. 3.  

Section 53398.57 of the Government Code is amended
to read:

53398.57.  

Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an infrastructure
financing plan, including a division of taxes thereunder, or an
election pursuant to this chapter shall be commenced within 30
days after the enactment of the resolution creating the district
pursuant to Section 53398.69. Consistent with the time limitations
of this section, such an action or proceeding with respect to a
division of taxes under this chapter may be brought pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil begin delete Procedure, except that Section 869 of the Code
of Civil Procedure shall not apply. end delete begin insert Procedure. end insert

SEC. 4.  

Section 53398.62 of the Government Code is amended
to read:

53398.62.  

After adopting the resolution pursuant to Section
53398.59, the legislative body shall begin insert send a copy of the resolution
to the public financing authority. The public financing authority
shall end insert designate and direct the city or county engineer or other
appropriate official to prepare an infrastructure plan pursuant to
Section 53398.63.

SEC. 5.  

Section 53398.63 of the Government Code is amended
to read:

53398.63.  

After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.62 shall prepare a proposed infrastructure financing plan.
The infrastructure financing plan shall be consistent with the
general plan of the city or county within which the district is
located and shall include all of the following:

(a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.

(b) A description of the public facilities and other forms of
development or financial assistance that is proposed in the area of
the district, including those to be provided by the private sector,
those to be provided by governmental entities without assistance
under this chapter, those public improvements and facilities to be
financed with assistance from the proposed district, and those to
be provided jointly. The description shall include the proposed
location, timing, and costs of the development and financial
assistance.

(c) If funding from affected taxing entities is incorporated into
the financing plan, a finding that the development and financial
assistance are of communitywide significance and provide
significant benefits to an area larger than the area of the district.

(d) A financing section, which shall contain all of the following
information:

(1) A specification of the maximum portion of the incremental
tax revenue of the city or county and of each affected taxing entity
proposed to be committed to the district for each year during which
the district will receive incremental tax revenue. The portion need
not be the same for all affected taxing entities. The portion may
change over time.

(2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.

(3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.

(4) A limit on the total number of dollars of taxes that may be
allocated to the district pursuant to the plan.

(5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than 45 years from the date on which the issuance of bonds
is approved pursuant to subdivision (a) of Section 53398.81, or
the issuance of a loan is approved by the governing board of a
local agency pursuant to Section 53398.87.

(6) An analysis of the costs to the city or county of providing
facilities and services to the area of the district while the area is
being developed and after the area is developed. The plan shall
also include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city or county as a result of expected
development in the area of the district.

(7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.

(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including
any permit and affordable housing expenses related to the project.

(e) If any dwelling units begin delete occupied by persons or families end delete begin insert within
the territory of the district end insert are proposed to be removed or destroyed
in the course of private development or public works construction
within the begin delete area end delete begin insert territory end insert of the district, a plan providing for
replacement of those units and relocation of those persons or
families consistent with the requirements of Section 53398.56.

(f) The goals the district proposes to achieve for each project
financed pursuant to Section 53398.52.

SEC. 6.  

Section 53398.66 of the Government Code is amended
to read:

53398.66.  

The begin delete legislative body end delete begin insert public financing authority end insert shall
conduct a public hearing prior to adopting the proposed
infrastructure financing plan. The public hearing shall be called
no sooner than 60 days after the plan has been sent to each affected
taxing entity. In addition to the notice given to landowners and
affected taxing entities pursuant to Sections 53398.60 and
53398.61, notice of the public hearing shall be given by publication
not less than once a week for four successive weeks in a newspaper
of general circulation published in the city or county in which the
proposed district is located. The notice shall state that the district
will be used to finance public facilities or development, briefly
describe the public facilities or development, briefly describe the
proposed financial arrangements, including the proposed
commitment of incremental tax revenue, describe the boundaries
of the proposed district and state the day, hour, and place when
and where any persons having any objections to the proposed
infrastructure financing plan, or the regularity of any of the prior
proceedings, may appear before the begin delete legislative body end delete begin insert public
financing authority end insert and object to the adoption of the proposed plan
by the begin delete legislative body end delete begin insert public financing authority end insert .

SEC. 7.  

Section 53398.67 of the Government Code is amended
to read:

53398.67.  

At the hour set in the required notices, the begin delete legislative
body end delete begin insert public financing authority end insert shall proceed to hear and pass
upon all written and oral objections. The hearing may be continued
from time to time. The begin delete legislative body end delete begin insert public financing authority end insert
shall consider the recommendations, if any, of affected taxing
entities, and all evidence and testimony for and against the adoption
of the plan. The begin delete legislative body end delete begin insert public financing authority end insert may
modify the plan by eliminating or reducing the size and cost of
proposed facilities or development, by reducing the amount of
proposed debt, or by reducing the portion, amount, or duration of
incremental tax revenues to be committed to the district.

SEC. 8.  

Section 53398.68 of the Government Code is amended
to read:

53398.68.  

(a) The begin delete legislative body end delete begin insert public financing authority end insert
shall not enact a resolution proposing formation of a district and
providing for the division of taxes of any affected taxing entity
pursuant to Article 3 (commencing with Section 53398.75) unless
a resolution approving the plan has been adopted by the governing
body of each affected taxing entity which is proposed to be subject
to division of taxes pursuant to Article 3 (commencing with Section
53398.75) and has been filed with the legislative body at or prior
to the time of the hearing.

(b) Nothing in this section shall be construed to prevent the
begin delete legislative body end delete begin insert public financing authority end insert from amending its
infrastructure financing plan and adopting a resolution proposing
formation of the enhanced infrastructure financing district without
allocation of the tax revenues of any affected taxing entity that has
not approved the infrastructure financing plan by resolution of the
governing body of the affected taxing entity.

SEC. 9.  

Section 53398.69 of the Government Code is amended
to read:

53398.69.  

(a) At the conclusion of the hearing, the begin delete legislative
body end delete begin insert public financing authority end insert may adopt a resolution proposing
adoption of the infrastructure financing plan, as modified, and
formation of the enhanced infrastructure financing district in a
manner consistent with Section 53398.68, or it may begin delete abandon end delete begin insert adopt
a resolution abandoning end insert the proceedings. begin insert If the proceedings are
abandoned, then the public financing authority shall cease to exist
by operation of this section with no further action required of the
legislative body and the legislative body may not enact a resolution
of intention to establish a district that includes the same geographic
area within one year of the date of the resolution abandoning the
proceedings. end insert

(b) The infrastructure financing plan begin delete and the formation of the
enhanced infrastructure financing district end delete shall take effect upon
the begin delete legislative body’s end delete adoption of the resolution. The infrastructure
financing plan shall specify if the district shall be funded solely
through the district’s share of tax increment, governmental or
private loans, grants, bonds, assessments, fees, or some
combination thereof. However, the public financing authority may
not issue bonds or levy assessments or fees that may be included
in the infrastructure financing plan prior to one or more of the
following:

(1) An affirmative vote, pursuant to subdivision (a) of Section
53398.81, to issue bonds to finance the infrastructure financing
plan.

(2)  begin delete Without compliance end delete begin insert Compliance end insert with the procedures
required in subdivision (f) of Section 53398.75, to levy assessments
or fees to finance the infrastructure financing plan.

(c) In addition the district may expend up to 10 percent of any
accrued tax increment in the first two years of the effective date
of the enhanced infrastructure financing district on planning and
dissemination of information to the residents within the district’s
boundaries about the infrastructure financing plan and planned
activities to be funded by the district.

SEC. 10.  

Section 53398.74 of the Government Code is
repealed.

begin delete

53398.74.  

The public financing authority may submit a
proposition to establish or change the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, of a district to the qualified electors of a
proposed or established district. The proposition establishing or
changing the appropriations limit shall become effective if
approved by the qualified electors voting on the proposition and
shall be adjusted for changes in the cost of living and changes in
populations, as defined by subdivisions (b) and (c) of Section 7901,
except that the change in population may be estimated by the
legislative body in the absence of an estimate by the Department
of Finance, and in accordance with Section 1 of Article XIII B of
the California Constitution. For purposes of adjusting for changes
in population, the population of the district shall be deemed to be
at least one person during each calendar year. Any election held
pursuant to this section may be combined with any election held
pursuant to Section 53398.80 in any convenient manner.

end delete

SEC. 11.  

Section 53398.74 is added to the Government Code,
to read:

53398.74.  

This section implements and fulfills the intent of
this chapter and of Article XIII B of the California Constitution.
The allocation and payment to a district of the portion of taxes
specified in Section 53398.75 for the purpose of paying principal
of, or interest on, loans, advances, or indebtedness incurred by the
district pursuant to this chapter, shall not be deemed the receipt
by a district of proceeds of taxes levied by or on behalf of the
district within the meaning or for the purposes of Article XIII B
of the California Constitution, nor shall that portion of taxes be
deemed receipt of proceeds of taxes by, or an appropriation subject
to limitation of, any other public body within the meaning or for
purposes of Article XIII B of the California Constitution or any
statutory provision enacted in implementation of Article XIII B
of the California Constitution.

SEC. 12.  

Section 53398.75 of the Government Code is amended
to read:

53398.75.  

(a) Any infrastructure financing plan may contain
a provision that taxes, if any, levied upon taxable property in the
area included within the enhanced infrastructure financing district
each year by or for the benefit of the State of California, or any
affected taxing entity after the effective date of the ordinance
adopted pursuant to Section 53398.69 to create the district, shall
be divided as follows:

(1) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53398.69 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the affected
taxing entities on all other property are paid.

(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and
each affected taxing entity that has agreed to participate pursuant
to Section 53398.68 in excess of the amount specified in begin insert paragraph
(1) of end insert subdivision (a) shall be allocated to, and when collected
shall be paid into a special fund of, the district for all lawful
purposes of the district. Unless and until the total assessed valuation
of the taxable property in a district exceeds the total assessed value
of the taxable property in the district as shown by the last equalized
assessment roll referred to in begin insert paragraph (1) of end insert subdivision (a), all
of the taxes levied and collected upon the taxable property in the
district shall be paid to the respective affected taxing entities. When
the district ceases to exist pursuant to the adopted infrastructure
financing plan, all moneys thereafter received from taxes upon the
taxable property in the district shall be paid to the respective
affected taxing entities as taxes on all other property are paid.

(b) Notwithstanding subdivision (a), where any district
boundaries overlap with the boundaries of any former
redevelopment project area, any debt or obligation of a district
shall be subordinate to any and all enforceable obligations of the
former redevelopment agency, as approved by the Oversight Board
and the Department of Finance. For the purposes of this chapter,
the division of taxes allocated to the district pursuant to subdivision
(a) of this section or of subdivision (b) of Section 53396 shall not
include any taxes required to be deposited by the county
auditor-controller into the Redevelopment Property Tax Trust Fund
created pursuant to subdivision (b) of Section 34170.5 of the Health
and Safety Code.

(c) The legislative body of the city or county forming the district
may choose to dedicate any portion of its net available revenue to
the district through the financing plan described in Section
53398.63.

(d) For the purposes of this section, “net available revenue”
means periodic distributions to the city or county from the
Redevelopment Property Tax Trust Fund, created pursuant to
Section 34170.5 of the Health and Safety Code, that are available
to the city or county after all preexisting legal commitments and
statutory obligations funded from that revenue are made pursuant
to Part 1.85 (commencing with Section 34170) of Division 24 of
the Health and Safety Code. “Net available revenue” shall not
include any funds deposited by the county auditor-controller into
the Redevelopment Property Tax Trust Fund or funds remaining
in the Redevelopment Property Tax Trust Fund prior to distribution.
Net available revenues shall not include any moneys payable to a
school district that maintains kindergarten and grades 1 to 12,
inclusive, community college districts, county office of education,
or to the Educational Revenue Augmentation Fund, pursuant to
paragraph (4) of subdivision (a) of Section 34183 of the Health
and Safety Code.

(e) (1) That portion of any ad valorem property tax revenue
annually allocated to a city or county pursuant to Section 97.70 of
the Revenue and Taxation Code that is specified in the adopted
infrastructure financing plan for the city or county that has agreed
to participate pursuant to Section 53398.68, and that corresponds
to the increase in the assessed valuation of taxable property shall
be allocated to, and when collected shall be apportioned to a special
fund of the district for all lawful purposes of the district.

(2) When the district ceases to exist pursuant to the adopted
infrastructure financing plan, the revenues described in this
subdivision shall be allocated to, and when collected, shall be
apportioned to the respective city or county.

(f) This section shall not be construed to prevent a district from
utilizing revenues from any of the following sources to support its
activities provided that the applicable voter approval has been
obtained, and the infrastructure financing plan has been approved
pursuant to Section 53398.69:

(1) The Improvement Act of 1911 (Division 7 (commencing
with Section 5000) of the Streets and Highways Code).

(2) The Municipal Improvement Act of 1913 (Division 12
(commencing with Section 10000) of the Streets and Highways
Code).

(3) The Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways
Code).

(4) The Landscaping and Lighting Act of 1972 (Part 2
(commencing with Section 22500) of Division 15 of the Streets
and Highways Code).

(5) The Vehicle Parking District Law of 1943 (Part 1
(commencing with Section 31500) of Division 18 of the Streets
and Highways Code).

(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division 18 of the Streets and Highways Code).

(7) The Park and Playground Act of 1909 (Chapter 7
(commencing with Section 38000) of Part 2 of Division 3 of Title
4 of this code).

(8) The Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of
this title).

(9) The Benefit Assessment Act of 1982 (Chapter 6.4
(commencing with Section 54703) of Part 1 of Division 2 of this
title).

(10) The so-called facilities benefit assessment levied by the
charter city of San Diego or any substantially similar assessment
levied for the same purpose by any other charter city pursuant to
any ordinance or charter provision.