California Legislature—2015–16 Regular Session

Assembly BillNo. 806


Introduced by Assembly Member Dodd

(Coauthor: Assembly Member Atkins)

February 26, 2015


An act to amend Sections 34171, 34179, 34191.4, and 34191.5 of the Health and Safety Code, relating to redevelopment.

LEGISLATIVE COUNSEL’S DIGEST

AB 806, as introduced, Dodd. Redevelopment: successor agencies to redevelopment agencies.

(1) 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 redevelopment agencies, subject to review by oversight boards, and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law prohibits a successor agency from entering into contracts with, incurring obligations or making commitments to, any entity, as specified; or from amending or modifying existing agreements, obligations, or commitments with any entity, for any purpose. Existing law defines “enforceable obligation” for these purposes to generally exclude any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency.

This bill would authorize a successor agency, if the successor agency has received a finding of completion, to enter into, or amend existing, contracts and agreements, or otherwise administer projects in connection with enforceable obligations, if the contract, agreement, or project will not commit new property tax funds or otherwise adversely affect the flow of specified tax revenues or payments to the taxing agencies, as specified.

The bill would specifically include within the definition of “enforceable obligation” an agreement entered into by the redevelopment agency prior to June 30, 2011, if the agreement relates to state highway infrastructure improvements to which the redevelopment agency committed funds pursuant to specified law.

(2) Existing law requires each successor agency to have an oversight board composed of 7 members and requires each member to be appointed by a specified authority.

This bill would allow each appointing authority to appoint an alternate representative to serve on the oversight board as may be necessary. This bill would provide that the alternative representative has the same participatory and voting rights as all other attending members of the oversight board, and would require the successor agency to promptly notify the Department of Finance regarding the appointment of any alternate representative.

(3) Existing law requires the disposition of assets and properties of the former redevelopment agency as directed by the oversight board, as specified, and suspends these requirements until the Department of Finance has approved a long-range property management plan, as specified. Upon approval of a long-range property management plan, the plan governs and supersedes all other provisions relating to the disposition and use of the real property assets of the former redevelopment agency. Existing law requires the property of a former redevelopment agency to be disposed of according to law if the department has not approved a long-range property management plan by January 1, 2016.

This bill would authorize the department to require a compensation agreement or agreements, but would prohibit the department from requiring approval of the compensation agreement or agreements as part of the approval of a long-range property management plan. The bill would describe the criteria and standard to be applied by the department in approving a long-range property management plan. The bill would require the department to approve long-range property management plans as expeditiously as possible. This bill would also provide that actions relating to the disposition of property after approval of a long-range property management plan do not require review by the department.

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

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

P3    1

SECTION 1.  

Section 34171 of the Health and Safety Code is
2amended to read:

3

34171.  

The following terms shall have the following meanings:

4(a) “Administrative budget” means the budget for administrative
5costs of the successor agencies as provided in Section 34177.

6(b) “Administrative cost allowance” means an amount that,
7subject to the approval of the oversight board, is payable from
8property tax revenues of up to 5 percent of the property tax
9allocated to the successor agency on the Recognized Obligation
10Payment Schedule covering the period January 1, 2012, through
11June 30, 2012, and up to 3 percent of the property tax allocated to
12the Redevelopment Obligation Retirement Fund money that is
13allocated to the successor agency for each fiscal year thereafter;
14provided, however, that the amount shall not be less than two
15hundred fifty thousand dollars ($250,000), unless the oversight
16board reduces this amount, for any fiscal year or such lesser amount
17as agreed to by the successor agency. However, the allowance
18amount shall exclude, and shall not apply to, any administrative
19costs that can be paid from bond proceeds or from sources other
20than property tax. Administrative cost allowances shall exclude
21any litigation expenses related to assets or obligations, settlements
22and judgments, and the costs of maintaining assets prior to
23disposition. Employee costs associated with work on specific
24project implementation activities, including, but not limited to,
25construction inspection, project management, or actual
26construction, shall be considered project-specific costs and shall
27not constitute administrative costs.

28(c) “Designated local authority” shall mean a public entity
29formed pursuant to subdivision (d) of Section 34173.

30(d) (1) “Enforceable obligation” means any of the following:

P4    1(A) Bonds, as defined by Section 33602 and bonds issued
2pursuant to Chapter 10.5 (commencing with Section 5850) of
3Division 6 of Title 1 of the Government Code, including the
4required debt service, reserve set-asides, and any other payments
5required under the indenture or similar documents governing the
6issuance of the outstanding bonds of the former redevelopment
7agency. A reserve may be held when required by the bond
8indenture or when the next property tax allocation will be
9insufficient to pay all obligations due under the provisions of the
10bond for the next payment due in the following half of the calendar
11year.

12(B) Loans of moneys borrowed by the redevelopment agency
13for a lawful purpose, to the extent they are legally required to be
14 repaid pursuant to a required repayment schedule or other
15mandatory loan terms.

16(C) Payments required by the federal government, preexisting
17obligations to the state or obligations imposed by state law, other
18than passthrough payments that are made by the county
19auditor-controller pursuant to Section 34183, or legally enforceable
20payments required in connection with the agencies’ employees,
21including, but not limited to, pension payments, pension obligation
22debt service, unemployment payments, or other obligations
23conferred through a collective bargaining agreement. Costs incurred
24to fulfill collective bargaining agreements for layoffs or
25terminations of city employees who performed work directly on
26behalf of the former redevelopment agency shall be considered
27enforceable obligations payable from property tax funds. The
28obligations to employees specified in this subparagraph shall
29remain enforceable obligations payable from property tax funds
30 for any employee to whom those obligations apply if that employee
31is transferred to the entity assuming the housing functions of the
32former redevelopment agency pursuant to Section 34176. The
33successor agency or designated local authority shall enter into an
34agreement with the housing entity to reimburse it for any costs of
35the employee obligations.

36(D) Judgments or settlements entered by a competent court of
37law or binding arbitration decisions against the former
38redevelopment agency, other than passthrough payments that are
39made by the county auditor-controller pursuant to Section 34183.
40Along with the successor agency, the oversight board shall have
P5    1the authority and standing to appeal any judgment or to set aside
2any settlement or arbitration decision.

3(E) Any legally binding and enforceable agreement or contract
4that is not otherwise void as violating the debt limit or public
5 policy. However, nothing in this act shall prohibit either the
6successor agency, with the approval or at the direction of the
7oversight board, or the oversight board itself from terminating any
8existing agreements or contracts and providing any necessary and
9required compensation or remediation for such termination. Titles
10of or headings used on or in a document shall not be relevant in
11determining the existence of an enforceable obligation.

12(F) Contracts or agreements necessary for the administration or
13operation of the successor agency, in accordance with this part,
14including, but not limited to, agreements concerning litigation
15expenses related to assets or obligations, settlements and
16judgments, and the costs of maintaining assets prior to disposition,
17and agreements to purchase or rent office space, equipment and
18supplies, and pay-related expenses pursuant to Section 33127 and
19for carrying insurance pursuant to Section 33134.

20(G) Amounts borrowed from, or payments owing to, the Low
21and Moderate Income Housing Fund of a redevelopment agency,
22which had been deferred as of the effective date of the act adding
23this part; provided, however, that the repayment schedule is
24approved by the oversight board. Repayments shall be transferred
25to the Low and Moderate Income Housing Asset Fund established
26pursuant to subdivision (d) of Section 34176 as a housing asset
27and shall be used in a manner consistent with the affordable
28housing requirements of the Community Redevelopment Law (Part
291 (commencing with Section 33000)).

30(2) For purposes of this part, “enforceable obligation” does not
31include any agreements, contracts, or arrangements between the
32city, county, or city and county that created the redevelopment
33agency and the former redevelopment agency. However, written
34agreements entered into (A) at the time of issuance, but in no event
35later than December 31, 2010, of indebtedness obligations, and
36(B) solely for the purpose of securing or repaying those
37indebtedness obligations may be deemed enforceable obligations
38for purposes of this part. Notwithstanding this paragraph, loan
39agreements entered into between the redevelopment agency and
40the city, county, or city and county that created it, within two years
P6    1of the date of creation of the redevelopment agency, may be
2deemed to be enforceable obligations.begin insert Notwithstanding this
3paragraph, an agreement entered into by the redevelopment agency
4prior to June 30, 2011, is an enforceable obligation if the
5agreement relates to state highway infrastructure improvements
6to which the redevelopment agency committed funds pursuant to
7Section 33445. end insert

8(3) Contracts or agreements between the former redevelopment
9agency and other public agencies, to perform services or provide
10funding for governmental or private services or capital projects
11outside of redevelopment project areas that do not provide benefit
12to the redevelopment project and thus were not properly authorized
13under Part 1 (commencing with Section 33000) shall be deemed
14void on the effective date of this part; provided, however, that such
15contracts or agreements for the provision of housing properly
16authorized under Part 1 (commencing with Section 33000) shall
17not be deemed void.

18(e) “Indebtedness obligations” means bonds, notes, certificates
19of participation, or other evidence of indebtedness, issued or
20delivered by the redevelopment agency, or by a joint exercise of
21powers authority created by the redevelopment agency, to
22third-party investors or bondholders to finance or refinance
23redevelopment projects undertaken by the redevelopment agency
24in compliance with the Community Redevelopment Law (Part 1
25(commencing with Section 33000)).

26(f) “Oversight board” shall mean each entity established pursuant
27to Section 34179.

28(g) “Recognized obligation” means an obligation listed in the
29Recognized Obligation Payment Schedule.

30(h) “Recognized Obligation Payment Schedule” means the
31document setting forth the minimum payment amounts and due
32dates of payments required by enforceable obligations for each
33six-month fiscal period as provided in subdivision (m) of Section
3434177.

35(i) “School entity” means any entity defined as such in
36subdivision (f) of Section 95 of the Revenue and Taxation Code.

37(j) “Successor agency” means the successor entity to the former
38redevelopment agency as described in Section 34173.

39(k) “Taxing entities” means cities, counties, a city and county,
40special districts, and school entities, as defined in subdivision (f)
P7    1of Section 95 of the Revenue and Taxation Code, that receive
2passthrough payments and distributions of property taxes pursuant
3to the provisions of this part.

4(l) “Property taxes” include all property tax revenues, including
5those from unitary and supplemental and roll corrections applicable
6to tax increment.

7(m) “Department” means the Department of Finance unless the
8context clearly refers to another state agency.

9(n) “Sponsoring entity” means the city, county, or city and
10county, or other entity that authorized the creation of each
11redevelopment agency.

12(o) “Final judicial determination” means a final judicial
13determination made by any state court that is not appealed, or by
14a court of appellate jurisdiction that is not further appealed, in an
15action by any party.

16(p) From July 1, 2014, to July 1, 2018, inclusive, “housing entity
17administrative cost allowance” means an amount of up to 1 percent
18of the property tax allocated to the Redevelopment Obligation
19Retirement Fund on behalf of the successor agency for each
20applicable fiscal year, but not less than one hundred fifty thousand
21dollars ($150,000) per fiscal year.

22(1) If a local housing authority assumed the housing functions
23of the former redevelopment agency pursuant to paragraph (2) or
24(3) of subdivision (b) of Section 34176, then the housing entity
25administrative cost allowance shall be listed by the successor
26agency on the Recognized Obligation Payment Schedule. Upon
27approval of the Recognized Obligation Payment Schedule by the
28oversight board and the department, the housing entity
29administrative cost allowance shall be remitted by the successor
30agency on each January 2 and July 1 to the local housing authority
31that assumed the housing functions of the former redevelopment
32agency pursuant to paragraph (2) or (3) of subdivision (b) of
33Section 34176.

34(2) If there are insufficient moneys in the Redevelopment
35 Obligations Retirement Fund in a given fiscal year to make the
36payment authorized by this subdivision, the unfunded amount may
37be listed on each subsequent Recognized Obligation Payment
38Schedule until it has been paid in full. In these cases the five-year
39time limit on the payments shall not apply.

P8    1

SEC. 2.  

Section 34179 of the Health and Safety Code is
2amended to read:

3

34179.  

(a) Each successor agency shall have an oversight
4board composed of seven members. The members shall elect one
5of their members as the chairperson and shall report the name of
6the chairperson and other members to the Department of Finance
7on or before May 1, 2012. Members shall be selected as follows:

8(1) One member appointed by the county board of supervisors.

9(2) One member appointed by the mayor for the city that formed
10the redevelopment agency.

11(3) (A) One member appointed by the largest special district,
12by property tax share, with territory in the territorial jurisdiction
13of the former redevelopment agency, which is of the type of special
14district that is eligible to receive property tax revenues pursuant
15to Section 34188.

16(B) On or after the effective date of this subparagraph, the
17county auditor-controller may determine which is the largest special
18district for purposes of this section.

19(4) One member appointed by the county superintendent of
20education to represent schools if the superintendent is elected. If
21the county superintendent of education is appointed, then the
22appointment made pursuant to this paragraph shall be made by the
23county board of education.

24(5) One member appointed by the Chancellor of the California
25Community Colleges to represent community college districts in
26the county.

27(6) One member of the public appointed by the county board
28of supervisors.

29(7) One member representing the employees of the former
30redevelopment agency appointed by the mayor or chair of the
31board of supervisors, as the case may be, from the recognized
32employee organization representing the largest number of former
33redevelopment agency employees employed by the successor
34agency at that time. In the case where city or county employees
35performed administrative duties of the former redevelopment
36 agency, the appointment shall be made from the recognized
37employee organization representing those employees. If a
38recognized employee organization does not exist for either the
39employees of the former redevelopment agency or the city or
40county employees performing administrative duties of the former
P9    1redevelopment agency, the appointment shall be made from among
2the employees of the successor agency. In voting to approve a
3contract as an enforceable obligation, a member appointed pursuant
4to this paragraph shall not be deemed to be interested in the contract
5by virtue of being an employee of the successor agency or
6community for purposes of Section 1090 of the Government Code.

7(8) If the county or a joint powers agency formed the
8redevelopment agency, then the largest city by acreage in the
9territorial jurisdiction of the former redevelopment agency may
10select one member. If there are no cities with territory in a project
11area of the redevelopment agency, the county superintendent of
12education may appoint an additional member to represent the
13public.

14(9) If there are no special districts of the type that are eligible
15to receive property tax pursuant to Section 34188, within the
16territorial jurisdiction of the former redevelopment agency, then
17the county may appoint one member to represent the public.

18(10) If a redevelopment agency was formed by an entity that is
19both a charter city and a county, the oversight board shall be
20composed of seven members selected as follows: three members
21appointed by the mayor of the city, if that appointment is subject
22to confirmation by the county board of supervisors, one member
23appointed by the largest special district, by property tax share, with
24territory in the territorial jurisdiction of the former redevelopment
25agency, which is the type of special district that is eligible to
26receive property tax revenues pursuant to Section 34188, one
27member appointed by the county superintendent of education to
28represent schools, one member appointed by the Chancellor of the
29California Community Colleges to represent community college
30districts, and one member representing employees of the former
31redevelopment agency appointed by the mayor of the city if that
32appointment is subject to confirmation by the county board of
33supervisors, to represent the largest number of former
34redevelopment agency employees employed by the successor
35agency at that time.

begin insert

36(11) Each appointing authority identified in this subdivision
37may, but is not required to, appoint an alternate representative to
38serve on the oversight board as may be necessary to attend any
39meeting of the oversight board in the event that the appointing
40authority’s primary representative is unable to attend any meeting
P10   1for any reason. If the alternate representative attends any meeting
2in place of the primary representative, the alternative
3representative shall have the same participatory and voting rights
4as all other attending members of the oversight board. The
5successor agency shall promptly notify the department regarding
6the appointment of any alternate representative to the oversight
7board.

end insert

8(b) The Governor may appoint individuals to fill any oversight
9board member position described in subdivision (a) that has not
10been filled by May 15, 2012, or any member position that remains
11vacant for more than 60 days.

12(c) The oversight board may direct the staff of the successor
13agency to perform work in furtherance of the oversight board’s
14duties and responsibilities under this part. The successor agency
15shall pay for all of the costs of meetings of the oversight board
16and may include such costs in its administrative budget. Oversight
17board members shall serve without compensation or reimbursement
18for expenses.

19(d) Oversight board members are protected by the immunities
20applicable to public entities and public employees governed by
21Part 1 (commencing with Section 810) and Part 2 (commencing
22with Section 814) of Division 3.6 of Title 1 of the Government
23Code.

24(e) A majority of the total membership of the oversight board
25shall constitute a quorum for the transaction of business. A majority
26vote of the total membership of the oversight board is required for
27the oversight board to take action. The oversight board shall be
28deemed to be a local entity for purposes of the Ralph M. Brown
29Act, the California Public Records Act, and the Political Reform
30Act of 1974. All actions taken by the oversight board shall be
31adopted by resolution.

32(f) All notices required by law for proposed oversight board
33actions shall also be posted on the successor agency’s Internet
34Web site or the oversight board’s Internet Web site.

35(g) Each member of an oversight board shall serve at the
36pleasure of the entity that appointed such member.

37(h) The Department of Finance may review an oversight board
38action taken pursuant to this part. Written notice and information
39about all actions taken by an oversight board shall be provided to
40the department by electronic means and in a manner of the
P11   1department’s choosing. An action shall become effective five
2business days after notice in the manner specified by the
3department is provided unless the department requests a review.
4Each oversight board shall designate an official to whom the
5department may make those requests and who shall provide the
6department with the telephone number andbegin delete e-mailend deletebegin insert emailend insert contact
7information for the purpose of communicating with the department
8pursuant to this subdivision. Except as otherwise provided in this
9part, in the event that the department requests a review of a given
10 oversight board action, it shall have 40 days from the date of its
11request to approve the oversight board action or return it to the
12oversight board for reconsideration and the oversight board action
13shall not be effective until approved by the department. In the
14event that the department returns the oversight board action to the
15oversight board for reconsideration, the oversight board shall
16resubmit the modified action for department approval and the
17modified oversight board action shall not become effective until
18approved by the department. If the department reviews a
19Recognized Obligation Payment Schedule, the department may
20eliminate or modify any item on that schedule prior to its approval.
21The county auditor-controller shall reflect the actions of the
22department in determining the amount of property tax revenues to
23allocate to the successor agency. The department shall provide
24notice to the successor agency and the county auditor-controller
25as to the reasons for its actions. To the extent that an oversight
26board continues to dispute a determination with the department,
27one or more future recognized obligation schedules may reflect
28any resolution of that dispute. The department may also agree to
29an amendment to a Recognized Obligation Payment Schedule to
30reflect a resolution of a disputed item; however, this shall not affect
31a past allocation of property tax or create a liability for any affected
32taxing entity.

33(i) Oversight boards shall have fiduciary responsibilities to
34holders of enforceable obligations and the taxing entities that
35benefit from distributions of property tax and other revenues
36pursuant to Section 34188. Further, the provisions of Division 4
37(commencing with Section 1000) of the Government Code shall
38apply to oversight boards. Notwithstanding Section 1099 of the
39Government Code, or any other law, any individual may
40simultaneously be appointed to up to five oversight boards and
P12   1may hold an office in a city, county, city and county, special
2district, school district, or community college district.

3(j) Commencing on and after July 1, 2016, in each county where
4more than one oversight board was created by operation of the act
5adding this part, there shall be only one oversight board appointed
6as follows:

7(1) One member may be appointed by the county board of
8supervisors.

9(2) One member may be appointed by the city selection
10committee established pursuant to Section 50270 of the
11Government Code. In a city and county, the mayor may appoint
12one member.

13(3) One member may be appointed by the independent special
14district selection committee established pursuant to Section 56332
15of the Government Code, for the types of special districts that are
16eligible to receive property tax revenues pursuant to Section 34188.

17(4) One member may be appointed by the county superintendent
18of education to represent schools if the superintendent is elected.
19If the county superintendent of education is appointed, then the
20appointment made pursuant to this paragraph shall be made by the
21county board of education.

22(5) One member may be appointed by the Chancellor of the
23California Community Colleges to represent community college
24districts in the county.

25(6) One member of the public may be appointed by the county
26board of supervisors.

27(7) One member may be appointed by the recognized employee
28organization representing the largest number of successor agency
29employees in the county.

30(k) The Governor may appoint individuals to fill any oversight
31board member position described in subdivision (j) that has not
32been filled by July 15, 2016, or any member position that remains
33vacant for more than 60 days.

34(l) Commencing on and after July 1, 2016, in each county where
35only one oversight board was created by operation of the act adding
36this part, then there will be no change to the composition of that
37oversight board as a result of the operation of subdivision (b).

38(m) Any oversight board for a given successor agency shall
39cease to exist when all of the indebtedness of the dissolved
40redevelopment agency has been repaid.

P13   1(n) An oversight board may direct a successor agency to provide
2additional legal or financial advice than what was given by agency
3staff.

4(o) An oversight board is authorized to contract with the county
5or other public or private agencies for administrative support.

6(p) On matters within the purview of the oversight board,
7decisions made by the oversight board supersede those made by
8the successor agency or the staff of the successor agency.

9

SEC. 3.  

Section 34191.4 of the Health and Safety Code is
10amended to read:

11

34191.4.  

The following provisions shall apply to any successor
12agency that has been issued a finding of completion by the
13Department of Finance:

14(a) All real property and interests in real property identified in
15subparagraph (C) of paragraph (5) of subdivision (c) of Section
1634179.5 shall be transferred to the Community Redevelopment
17Property Trust Fund of the successor agency upon approval by the
18Department of Finance of the long-range property management
19plan submitted by the successor agency pursuant to subdivision
20(b) of Section 34191.5 unless that property is subject to the
21requirements of any existing enforceable obligation.

22(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
23application by the successor agency and approval by the oversight
24board, loan agreements entered into between the redevelopment
25agency and the city, county, or city and county that created the
26redevelopment agency shall be deemed to be enforceable
27obligations provided that the oversight board makes a finding that
28the loan was for legitimate redevelopment purposes.

29(2) If the oversight board finds that the loan is an enforceable
30obligation, the accumulated interest on the remaining principal
31amount of the loan shall be recalculated from origination at the
32interest rate earned by funds deposited into the Local Agency
33Investment Fund. The loan shall be repaid to the city, county, or
34city and county in accordance with a defined schedule over a
35reasonable term of years at an interest rate not to exceed the interest
36rate earned by funds deposited into the Local Agency Investment
37Fund. The annual loan repayments provided for in the recognized
38obligation payment schedules shall be subject to all of the following
39limitations:

P14   1(A) Loan repayments shall not be made prior to the 2013-14
2fiscal year. Beginning in the 2013-14 fiscal year, the maximum
3repayment amount authorized each fiscal year for repayments
4made pursuant to this subdivision and paragraph (7) of subdivision
5(e) of Section 34176 combined shall be equal to one-half of the
6increase between the amount distributed to the taxing entities
7pursuant to paragraph (4) of subdivision (a) of Section 34183 in
8that fiscal year and the amount distributed to taxing entities
9pursuant to that paragraph in the 2012-13 base year, provided,
10however, that calculation of the amount distributed to taxing
11entities during the 2012-13 base year shall not include any amounts
12distributed to taxing entities pursuant to the due diligence review
13process established in Sections 34179.5 to 34179.8, inclusive.
14Loan or deferral repayments made pursuant to this subdivision
15 shall be second in priority to amounts to be repaid pursuant to
16paragraph (7) of subdivision (e) of Section 34176.

17(B) Repayments received by the city, county, or city and county
18that formed the redevelopment agency shall first be used to retire
19any outstanding amounts borrowed and owed to the Low and
20Moderate Income Housing Fund of the former redevelopment
21agency for purposes of the Supplemental Educational Revenue
22Augmentation Fund and shall be distributed to the Low and
23Moderate Income Housing Asset Fund established by subdivision
24(d) of Section 34176.

25(C) Twenty percent of any loan repayment shall be deducted
26from the loan repayment amount and shall be transferred to the
27Low and Moderate Income Housing Asset Fund, after all
28outstanding loans from the Low and Moderate Income Housing
29Fund for purposes of the Supplemental Educational Revenue
30Augmentation Fund have been paid.

31(c) (1) Bond proceeds derived from bonds issued on or before
32December 31, 2010, shall be used for the purposes for which the
33bonds were sold.

34(2) (A) Notwithstanding Section 34177.3 or any other
35conflicting provision of law, bond proceeds in excess of the
36amounts needed to satisfy approved enforceable obligations shall
37thereafter be expended in a manner consistent with the original
38bond covenants. Enforceable obligations may be satisfied by the
39creation of reserves for projects that are the subject of the
40enforceable obligation and that are consistent with the contractual
P15   1obligations for those projects, or by expending funds to complete
2the projects. An expenditure made pursuant to this paragraph shall
3constitute the creation of excess bond proceeds obligations to be
4paid from the excess proceeds. Excess bond proceeds obligations
5shall be listed separately on the Recognized Obligation Payment
6Schedule submitted by the successor agency.

7(B) If remaining bond proceeds cannot be spent in a manner
8consistent with the bond covenants pursuant to subparagraph (A),
9the proceeds shall be used to defease the bonds or to purchase
10those same outstanding bonds on the open market for cancellation.

begin insert

11(d) Notwithstanding subdivision (b) of Section 34163, if a
12successor agency has received a finding of completion, the
13successor agency may enter into, or amend existing, contracts and
14agreements, or otherwise administer projects in connection with
15enforceable obligations approved pursuant to subdivision (m) of
16Section 34177, including the substitution of private developer
17capital in a disposition and development agreement that has been
18deemed an enforceable obligation, if the contract, agreement, or
19project will not commit new property tax funds, and will not
20otherwise reduce property tax revenues or payments made pursuant
21to paragraph (4) of subdivision (a) of Section 34183 to the taxing
22agencies.

end insert
23

SEC. 4.  

Section 34191.5 of the Health and Safety Code is
24amended to read:

25

34191.5.  

(a) There is hereby established a Community
26Redevelopment Property Trust Fund, administered by the successor
27agency, to serve as the repository of the former redevelopment
28agency’s real properties identified in subparagraph (C) of paragraph
29(5) of subdivision (c) of Section 34179.5.

30(b) The successor agency shall prepare a long-range property
31management plan that addresses the disposition and use of the real
32properties of the former redevelopment agency. The report shall
33be submitted to the oversight board and the Department of Finance
34for approval no later than six months following the issuance to the
35successor agency of the finding of completion.

36(c) The long-range property management plan shall do all of
37the following:

38(1) Include an inventory of all properties in the trust. The
39inventory shall consist of all of the following information:

P16   1(A) The date of the acquisition of the property and the value of
2the property at that time, and an estimate of the current value of
3the property.

4(B) The purpose for which the property was acquired.

5(C) Parcel data, including address, lot size, and current zoning
6in the former agency redevelopment plan or specific, community,
7or general plan.

8(D) An estimate of the current value of the parcel including, if
9available, any appraisal information.

10(E) An estimate of any lease, rental, or any other revenues
11generated by the property, and a description of the contractual
12requirements for the disposition of those funds.

13(F) The history of environmental contamination, including
14designation as a brownfield site, any related environmental studies,
15and history of any remediation efforts.

16(G) A description of the property’s potential for transit-oriented
17development and the advancement of the planning objectives of
18the successor agency.

19(H) A brief history of previous development proposals and
20activity, including the rental or lease of property.

21(2) Address the use or disposition of all of the properties in the
22trust. Permissible uses include the retention of the property for
23governmental use pursuant to subdivision (a) of Section 34181,
24the retention of the property for future development, the sale of
25the property, or the use of the property to fulfill an enforceable
26obligation. The plan shall separately identify and list properties in
27the trust dedicated to governmental use purposes and properties
28retained for purposes of fulfilling an enforceable obligation. With
29respect to the use or disposition of all other properties, all of the
30following shall apply:

31(A) (i) If the plan directs the use or liquidation of the property
32for a project identified in an approved redevelopment plan, the
33property shall transfer to the city, county, or city and county.

34(ii) For purposes of this subparagraph, the term “identified in
35an approved redevelopment plan” includes properties listed in a
36community plan or a five-year implementation plan.

37(B) If the plan directs the liquidation of the property or the use
38of revenues generated from the property, such as lease or parking
39revenues, for any purpose other than to fulfill an enforceable
40obligation or other than that specified in subparagraph (A), the
P17   1proceeds from the sale shall be distributed as property tax to the
2taxing entities.

3(C) Property shall not be transferred to a successor agency, city,
4county, or city and county, unless the long-range property
5management plan has been approved by the oversight board and
6the Department of Finance.

begin insert

7(d) The department may require approval of a compensation
8agreement or agreements, as described in subdivision (f) of Section
934180, except that the department shall not require approval of a
10compensation agreement or agreements as part of the approval
11 process of a long-range property management plan.

end insert
begin insert

12(e) The department shall only consider whether the long-range
13property management plan makes a good faith effort to address
14the requirements set forth in subdivision (c).

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begin insert

15(f) The department shall approve long-range property
16management plans as expeditiously as possible.

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begin insert

17(g) Actions relating to the disposition of property after approval
18of a long-range property management plan shall not require review
19by the department.

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