Amended in Assembly April 6, 2015

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 amended, 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, tobegin delete enter into, orend delete amendbegin insert or modifyend insert 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 appointbegin delete anend delete alternatebegin delete representativeend deletebegin insert representativesend insert to serve on the oversight board as may be necessary. This bill would provide thatbegin delete theend deletebegin insert anend insert 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 alternatebegin delete representative.end deletebegin insert representatives.end insert

(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 wouldbegin delete prohibit the department from requiring approval ofend deletebegin insert specify thatend insert the compensation agreement or agreementsbegin delete as part ofend deletebegin insert may be developed and executed subsequent toend insert 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.

P4    1(d) (1) “Enforceable obligation” means any of the following:

2(A) Bonds, as defined by Section 33602 and bonds issued
3pursuant to Chapter 10.5 (commencing with Section 5850) of
4Division 6 of Title 1 of the Government Code, including the
5required debt service, reserve set-asides, and any other payments
6required under the indenture or similar documents governing the
7issuance of the outstanding bonds of the former redevelopment
8agency. A reserve may be held when required by the bond
9indenture or when the next property tax allocation will be
10insufficient to pay all obligations due under the provisions of the
11bond for the next payment due in the following half of the calendar
12year.

13(B) Loans of moneys borrowed by the redevelopment agency
14for a lawful purpose, to the extent they are legally required to be
15 repaid pursuant to a required repayment schedule or other
16mandatory loan terms.

17(C) Payments required by the federal government, preexisting
18obligations to the state or obligations imposed by state law, other
19than passthrough payments that are made by the county
20auditor-controller pursuant to Section 34183, or legally enforceable
21payments required in connection with the agencies’ employees,
22including, but not limited to, pension payments, pension obligation
23debt service, unemployment payments, or other obligations
24conferred through a collective bargaining agreement. Costs incurred
25to fulfill collective bargaining agreements for layoffs or
26terminations of city employees who performed work directly on
27behalf of the former redevelopment agency shall be considered
28enforceable obligations payable from property tax funds. The
29obligations to employees specified in this subparagraph shall
30remain enforceable obligations payable from property tax funds
31 for any employee to whom those obligations apply if that employee
32is transferred to the entity assuming the housing functions of the
33former redevelopment agency pursuant to Section 34176. The
34successor agency or designated local authority shall enter into an
35agreement with the housing entity to reimburse it for any costs of
36the employee obligations.

37(D) Judgments or settlements entered by a competent court of
38law or binding arbitration decisions against the former
39redevelopment agency, other than passthrough payments that are
40made by the county auditor-controller pursuant to Section 34183.
P5    1Along with the successor agency, the oversight board shall have
2the authority and standing to appeal any judgment or to set aside
3any settlement or arbitration decision.

4(E) Any legally binding and enforceable agreement or contract
5that is not otherwise void as violating the debt limit or public
6 policy. However, nothing in this act shall prohibit either the
7successor agency, with the approval or at the direction of the
8oversight board, or the oversight board itself from terminating any
9existing agreements or contracts and providing any necessary and
10required compensation or remediation for such termination. Titles
11of or headings used on or in a document shall not be relevant in
12determining the existence of an enforceable obligation.

13(F) Contracts or agreements necessary for the administration or
14operation of the successor agency, in accordance with this part,
15including, but not limited to, agreements concerning litigation
16expenses related to assets or obligations, settlements and
17judgments, and the costs of maintaining assets prior to disposition,
18and agreements to purchase or rent office space, equipment and
19supplies, and pay-related expenses pursuant to Section 33127 and
20for carrying insurance pursuant to Section 33134.

21(G) Amounts borrowed from, or payments owing to, the Low
22and Moderate Income Housing Fund of a redevelopment agency,
23which had been deferred as of the effective date of the act adding
24this part; provided, however, that the repayment schedule is
25approved by the oversight board. Repayments shall be transferred
26to the Low and Moderate Income Housing Asset Fund established
27pursuant to subdivision (d) of Section 34176 as a housing asset
28and shall be used in a manner consistent with the affordable
29housing requirements of the Community Redevelopment Law (Part
301 (commencing with Section 33000)).

31(2) For purposes of this part, “enforceable obligation” does not
32include any agreements, contracts, or arrangements between the
33city, county, or city and county that created the redevelopment
34agency and the former redevelopment agency. However, written
35agreements entered into (A) at the time of issuance, but in no event
36later than December 31, 2010, of indebtedness obligations, and
37(B) solely for the purpose of securing or repaying those
38indebtednessbegin delete obligationsend deletebegin insert obligations,end insert may be deemed enforceable
39obligations for purposes of this part. Notwithstanding this
40paragraph, loan agreements entered into between the redevelopment
P6    1agency and the city, county, or city and county that created it,
2within two years of the date of creation of the redevelopment
3agency, may be deemed to be enforceable obligations.
4Notwithstanding this paragraph, an agreement entered into by the
5redevelopment agency prior to June 30, 2011, is an enforceable
6obligation if the agreement relates to state highway infrastructure
7improvements to which the redevelopment agency committed
8funds pursuant to Section 33445.

9(3) Contracts or agreements between the former redevelopment
10agency and other public agencies, to perform services or provide
11funding for governmental or private services or capital projects
12outside of redevelopment project areas that do not provide benefit
13to the redevelopment project and thus were not properly authorized
14under Part 1 (commencing with Section 33000) shall be deemed
15void on the effective date of this part; provided, however, that such
16contracts or agreements for the provision of housing properly
17authorized under Part 1 (commencing with Section 33000) shall
18not be deemed void.

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

27(f) “Oversight board” shall mean each entity established pursuant
28to Section 34179.

29(g) “Recognized obligation” means an obligation listed in the
30Recognized Obligation Payment Schedule.

31(h) “Recognized Obligation Payment Schedule” means the
32document setting forth the minimum payment amounts and due
33dates of payments required by enforceable obligations for each
34six-month fiscal period as provided in subdivision (m) of Section
3534177.

36(i) “School entity” means any entity defined as such in
37subdivision (f) of Section 95 of the Revenue and Taxation Code.

38(j) “Successor agency” means the successor entity to the former
39redevelopment agency as described in Section 34173.

P7    1(k) “Taxing entities” means cities, counties, a city and county,
2special districts, and school entities, as defined in subdivision (f)
3of Section 95 of the Revenue and Taxation Code, that receive
4passthrough payments and distributions of property taxes pursuant
5to the provisions of this part.

6(l) “Property taxes” include all property tax revenues, including
7those from unitary and supplemental and roll corrections applicable
8to tax increment.

9(m) “Department” means the Department of Finance unless the
10context clearly refers to another state agency.

11(n) “Sponsoring entity” means the city, county, or city and
12county, or other entity that authorized the creation of each
13redevelopment agency.

14(o) “Final judicial determination” means a final judicial
15determination made by any state court that is not appealed, or by
16a court of appellate jurisdiction that is not further appealed, in an
17action by any party.

18(p) From July 1, 2014, to July 1, 2018, inclusive, “housing entity
19administrative cost allowance” means an amount of up to 1 percent
20of the property tax allocated to the Redevelopment Obligation
21Retirement Fund on behalf of the successor agency for each
22applicable fiscal year, but not less than one hundred fifty thousand
23dollars ($150,000) per fiscal year.

24(1) If a local housing authority assumed the housing functions
25of the former redevelopment agency pursuant to paragraph (2) or
26(3) of subdivision (b) of Section 34176, then the housing entity
27administrative cost allowance shall be listed by the successor
28agency on the Recognized Obligation Payment Schedule. Upon
29approval of the Recognized Obligation Payment Schedule by the
30oversight board and the department, the housing entity
31administrative cost allowance shall be remitted by the successor
32agency on each January 2 and July 1 to the local housing authority
33that assumed the housing functions of the former redevelopment
34agency pursuant to paragraph (2) or (3) of subdivision (b) of
35Section 34176.

36(2) If there are insufficient moneys in the Redevelopment
37 Obligations Retirement Fund in a given fiscal year to make the
38payment authorized by this subdivision, the unfunded amount may
39be listed on each subsequent Recognized Obligation Payment
P8    1Schedule until it has been paid in full. In these cases the five-year
2time limit on the payments shall not apply.

3

SEC. 2.  

Section 34179 of the Health and Safety Code is
4amended to read:

5

34179.  

(a) Each successor agency shall have an oversight
6board composed of seven members. The members shall elect one
7of their members as the chairperson and shall report the name of
8the chairperson and other members to the Department of Finance
9on or before May 1, 2012. Members shall be selected as follows:

10(1) One member appointed by the county board of supervisors.

11(2) One member appointed by the mayor for the city that formed
12the redevelopment agency.

13(3) (A) One member appointed by the largest special district,
14by property tax share, with territory in the territorial jurisdiction
15of the former redevelopment agency, which is of the type of special
16district that is eligible to receive property tax revenues pursuant
17to Section 34188.

18(B) On or after the effective date of this subparagraph, the
19county auditor-controller may determine which is the largest special
20district for purposes of this section.

21(4) One member appointed by the county superintendent of
22education to represent schools if the superintendent is elected. If
23the county superintendent of education is appointed, then the
24appointment made pursuant to this paragraph shall be made by the
25county board of education.

26(5) One member appointed by the Chancellor of the California
27Community Colleges to represent community college districts in
28the county.

29(6) One member of the public appointed by the county board
30of supervisors.

31(7) One member representing the employees of the former
32redevelopment agency appointed by the mayor or chair of the
33board of supervisors, as the case may be, from the recognized
34employee organization representing the largest number of former
35redevelopment agency employees employed by the successor
36agency at that time. In the case where city or county employees
37performed administrative duties of the former redevelopment
38agency, the appointment shall be made from the recognized
39employee organization representing those employees. If a
40recognized employee organization does not exist for either the
P9    1employees of the former redevelopment agency or the city or
2county employees performing administrative duties of the former
3redevelopment agency, the appointment shall be made from among
4the employees of the successor agency. In voting to approve a
5contract as an enforceable obligation, a member appointed pursuant
6to this paragraph shall not be deemed to be interested in the contract
7by virtue of being an employee of the successor agency or
8community for purposes of Section 1090 of the Government Code.

9(8) If the county or a joint powers agency formed the
10redevelopment agency, then the largest city by acreage in the
11territorial jurisdiction of the former redevelopment agency may
12select one member. If there are no cities with territory in a project
13area of the redevelopment agency, the county superintendent of
14education may appoint an additional member to represent the
15public.

16(9) If there are no special districts of the type that are eligible
17to receive property tax pursuant to Section 34188, within the
18territorial jurisdiction of the former redevelopment agency, then
19the county may appoint one member to represent the public.

20(10) If a redevelopment agency was formed by an entity that is
21both a charter city and a county, the oversight board shall be
22composed of seven members selected as follows: three members
23appointed by the mayor of the city, if that appointment is subject
24to confirmation by the county board of supervisors, one member
25appointed by the largest special district, by property tax share, with
26territory in the territorial jurisdiction of the former redevelopment
27agency, which is the type of special district that is eligible to
28receive property tax revenues pursuant to Section 34188, one
29member appointed by the county superintendent of education to
30represent schools, one member appointed by the Chancellor of the
31California Community Colleges to represent community college
32districts, and one member representing employees of the former
33redevelopment agency appointed by the mayor of the city if that
34appointment is subject to confirmation by the county board of
35supervisors, to represent the largest number of former
36redevelopment agency employees employed by the successor
37agency at that time.

38(11) Each appointing authority identified in this subdivision
39may, but is not required to, appointbegin delete anend delete alternatebegin delete representativeend delete
40begin insert representativesend insert to serve on the oversight board as may be necessary
P10   1to attend any meeting of the oversight board in the event that the
2appointing authority’s primary representative is unable to attend
3any meeting for any reason. Ifbegin delete theend deletebegin insert anend insert alternate representative
4attends any meeting in place of the primary representative, the
5alternative representative shall have the same participatory and
6voting rights as all other attending members of the oversight board.
7The successor agency shall promptly notify the department
8regarding the appointment ofbegin delete anyend delete alternatebegin delete representativeend delete
9begin insert representativesend insert to the oversight board.

10(b) The Governor may appoint individuals to fill any oversight
11board member position described in subdivision (a) that has not
12been filled by May 15, 2012, or any member position that remains
13vacant for more than 60 days.

14(c) The oversight board may direct the staff of the successor
15agency to perform work in furtherance of the oversight board’s
16duties and responsibilities under this part. The successor agency
17shall pay for all of the costs of meetings of the oversight board
18and may include such costs in its administrative budget. Oversight
19board members shall serve without compensation or reimbursement
20for expenses.

21(d) Oversight board members are protected by the immunities
22applicable to public entities and public employees governed by
23Part 1 (commencing with Section 810) and Part 2 (commencing
24with Section 814) of Division 3.6 of Title 1 of the Government
25Code.

26(e) A majority of the total membership of the oversight board
27shall constitute a quorum for the transaction of business. A majority
28vote of the total membership of the oversight board is required for
29the oversight board to take action. The oversight board shall be
30deemed to be a local entity for purposes of the Ralph M. Brown
31Act, the California Public Records Act, and the Political Reform
32Act of 1974. All actions taken by the oversight board shall be
33adopted by resolution.

34(f) All notices required by law for proposed oversight board
35actions shall also be posted on the successor agency’s Internet
36Web site or the oversight board’s Internet Web site.

37(g) Each member of an oversight board shall serve at the
38pleasure of the entity that appointed such member.

39(h) The Department of Finance may review an oversight board
40action taken pursuant to this part. Written notice and information
P11   1about all actions taken by an oversight board shall be provided to
2the department by electronic means and in a manner of the
3department’s choosing. An action shall become effective five
4business days after notice in the manner specified by the
5department is provided unless the department requests a review.
6Each oversight board shall designate an official to whom the
7department may make those requests and who shall provide the
8department with the telephone number and email contact
9information for the purpose of communicating with the department
10pursuant to this subdivision. Except as otherwise provided in this
11part, in the event that the department requests a review of a given
12 oversight board action, it shall have 40 days from the date of its
13request to approve the oversight board action or return it to the
14oversight board for reconsideration and the oversight board action
15shall not be effective until approved by the department. In the
16event that the department returns the oversight board action to the
17oversight board for reconsideration, the oversight board shall
18resubmit the modified action for department approval and the
19modified oversight board action shall not become effective until
20approved by the department. If the department reviews a
21Recognized Obligation Payment Schedule, the department may
22eliminate or modify any item on that schedule prior to its approval.
23The county auditor-controller shall reflect the actions of the
24department in determining the amount of property tax revenues to
25allocate to the successor agency. The department shall provide
26notice to the successor agency and the county auditor-controller
27as to the reasons for its actions. To the extent that an oversight
28board continues to dispute a determination with the department,
29one or more future recognized obligation schedules may reflect
30any resolution of that dispute. The department may also agree to
31an amendment to a Recognized Obligation Payment Schedule to
32reflect a resolution of a disputed item; however, this shall not affect
33a past allocation of property tax or create a liability for any affected
34taxing entity.

35(i) Oversight boards shall have fiduciary responsibilities to
36holders of enforceable obligations and the taxing entities that
37benefit from distributions of property tax and other revenues
38pursuant to Section 34188. Further, the provisions of Division 4
39(commencing with Section 1000) of the Government Code shall
40apply to oversight boards. Notwithstanding Section 1099 of the
P12   1Government Code, or any other law, any individual may
2simultaneously be appointed to up to five oversight boards and
3may hold an office in a city, county, city and county, special
4district, school district, or community college district.

5(j) Commencing on and after July 1, 2016, in each county where
6more than one oversight board was created by operation of the act
7adding this part, there shall be only one oversight board appointed
8as follows:

9(1) One member may be appointed by the county board of
10supervisors.

11(2) One member may be appointed by the city selection
12committee established pursuant to Section 50270 of the
13Government Code. In a city and county, the mayor may appoint
14one member.

15(3) One member may be appointed by the independent special
16district selection committee established pursuant to Section 56332
17of the Government Code, for the types of special districts that are
18eligible to receive property tax revenues pursuant to Section 34188.

19(4) One member may be appointed by the county superintendent
20of education to represent schools if the superintendent is elected.
21If the 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 may be appointed by the Chancellor of the
25California Community Colleges to represent community college
26districts in the county.

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

29(7) One member may be appointed by the recognized employee
30organization representing the largest number of successor agency
31employees in the county.

32(k) The Governor may appoint individuals to fill any oversight
33board member position described in subdivision (j) that has not
34been filled by July 15, 2016, or any member position that remains
35vacant for more than 60 days.

36(l) Commencing on and after July 1, 2016, in each county where
37only one oversight board was created by operation of the act adding
38this part, then there will be no change to the composition of that
39oversight board as a result of the operation of subdivision (b).

P13   1(m) Any oversight board for a given successor agency shall
2cease to exist when all of the indebtedness of the dissolved
3redevelopment agency has been repaid.

4(n) An oversight board may direct a successor agency to provide
5additional legal or financial advice than what was given by agency
6staff.

7(o) An oversight board is authorized to contract with the county
8or other public or private agencies for administrative support.

9(p) On matters within the purview of the oversight board,
10decisions made by the oversight board supersede those made by
11the successor agency or the staff of the successor agency.

12

SEC. 3.  

Section 34191.4 of the Health and Safety Code is
13amended to read:

14

34191.4.  

The following provisions shall apply to any successor
15agency that has been issued a finding of completion by the
16Department of Finance:

17(a) All real property and interests in real property identified in
18subparagraph (C) of paragraph (5) of subdivision (c) of Section
1934179.5 shall be transferred to the Community Redevelopment
20Property Trust Fund of the successor agency upon approval by the
21Department of Finance of the long-range property management
22plan submitted by the successor agency pursuant to subdivision
23(b) of Section 34191.5 unless that property is subject to the
24requirements of any existing enforceable obligation.

25(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
26application by the successor agency and approval by the oversight
27board, loan agreements entered into between the redevelopment
28agency and the city, county, or city and county that created the
29redevelopment agency shall be deemed to be enforceable
30obligations provided that the oversight board makes a finding that
31the loan was for legitimate redevelopment purposes.

32(2) If the oversight board finds that the loan is an enforceable
33obligation, the accumulated interest on the remaining principal
34amount of the loan shall be recalculated from origination at the
35interest rate earned by funds deposited into the Local Agency
36Investment Fund. The loan shall be repaid to the city, county, or
37city and county in accordance with a defined schedule over a
38reasonable term of years at an interest rate not to exceed the interest
39rate earned by funds deposited into the Local Agency Investment
40Fund. The annual loan repayments provided for in the recognized
P14   1obligation payment schedules shall be subject to all of the following
2limitations:

3(A) Loan repayments shall not be made prior to the 2013-14
4fiscal year. Beginning in the 2013-14 fiscal year, the maximum
5repayment amount authorized each fiscal year for repayments
6made pursuant to this subdivision and paragraph (7) of subdivision
7(e) of Section 34176 combined shall be equal to one-half of the
8increase between the amount distributed to the taxing entities
9pursuant to paragraph (4) of subdivision (a) of Section 34183 in
10that fiscal year and the amount distributed to taxing entities
11pursuant to that paragraph in the 2012-13 base year, provided,
12however, that calculation of the amount distributed to taxing
13entities during the 2012-13 base year shall not include any amounts
14distributed to taxing entities pursuant to the due diligence review
15process established in Sections 34179.5 to 34179.8, inclusive.
16Loan or deferral repayments made pursuant to this subdivision
17 shall be second in priority to amounts to be repaid pursuant to
18paragraph (7) of subdivision (e) of Section 34176.

19(B) Repayments received by the city, county, or city and county
20that formed the redevelopment agency shall first be used to retire
21any outstanding amounts borrowed and owed to the Low and
22Moderate Income Housing Fund of the former redevelopment
23agency for purposes of the Supplemental Educational Revenue
24Augmentation Fund and shall be distributed to the Low and
25Moderate Income Housing Asset Fund established by subdivision
26(d) of Section 34176.

27(C) Twenty percent of any loan repayment shall be deducted
28from the loan repayment amount and shall be transferred to the
29Low and Moderate Income Housing Asset Fund, after all
30outstanding loans from the Low and Moderate Income Housing
31Fund for purposes of the Supplemental Educational Revenue
32Augmentation Fund have been paid.

33(c) (1) Bond proceeds derived from bonds issued on or before
34December 31, 2010, shall be used for the purposes for which the
35bonds were sold.

36(2) (A) Notwithstanding Section 34177.3 or any other
37conflicting provision of law, bond proceeds in excess of the
38amounts needed to satisfy approved enforceable obligations shall
39thereafter be expended in a manner consistent with the original
40bond covenants. Enforceable obligations may be satisfied by the
P15   1creation of reserves for projects that are the subject of the
2enforceable obligation and that are consistent with the contractual
3obligations for those projects, or by expending funds to complete
4the projects. An expenditure made pursuant to this paragraph shall
5constitute the creation of excess bond proceeds obligations to be
6paid from the excess proceeds. Excess bond proceeds obligations
7shall be listed separately on the Recognized Obligation Payment
8Schedule submitted by the successor agency.

9(B) If remaining bond proceeds cannot be spent in a manner
10consistent with the bond covenants pursuant to subparagraph (A),
11the proceeds shall be used to defease the bonds or to purchase
12those same outstanding bonds on the open market for cancellation.

13(d) Notwithstanding subdivision (b) of Section 34163, if a
14successor agency has received a finding of completion,begin insert with the
15approval of the successor agency’s oversight board,end insert
the successor
16agency maybegin delete enter into, orend delete amendbegin insert or modifyend insert existing, contracts and
17agreements, or otherwise administer projects in connection with
18enforceable obligations approved pursuant to subdivision (m) of
19Section 34177, including the substitution of private developer
20capital in a disposition and development agreement that has been
21deemed an enforceable obligation, if the contract, agreement, or
22project will not commit new property tax funds, and will not
23otherwisebegin insert directly or indirectlyend insert reduce property tax revenues or
24payments made pursuant to paragraph (4) of subdivision (a) of
25 Section 34183 to the taxing agencies.

26

SEC. 4.  

Section 34191.5 of the Health and Safety Code is
27amended to read:

28

34191.5.  

(a) There is hereby established a Community
29Redevelopment Property Trust Fund, administered by the successor
30agency, to serve as the repository of the former redevelopment
31agency’s real properties identified in subparagraph (C) of paragraph
32(5) of subdivision (c) of Section 34179.5.

33(b) The successor agency shall prepare a long-range property
34management plan that addresses the disposition and use of the real
35properties of the former redevelopment agency. The report shall
36be submitted to the oversight board and the Department of Finance
37for approval no later than six months following the issuance to the
38successor agency of the finding of completion.

39(c) The long-range property management plan shall do all of
40the following:

P16   1(1) Include an inventory of all properties in the trust. The
2inventory shall consist of all of the following information:

3(A) The date of the acquisition of the property and the value of
4the property at that time, and an estimate of the current value of
5the property.

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

7(C) Parcel data, including address, lot size, and current zoning
8in the former agency redevelopment plan or specific, community,
9or general plan.

10(D) An estimate of the current value of the parcel including, if
11available, any appraisal information.

12(E) An estimate of any lease, rental, or any other revenues
13generated by the property, and a description of the contractual
14requirements for the disposition of those funds.

15(F) The history of environmental contamination, including
16designation as a brownfield site, any related environmental studies,
17and history of any remediation efforts.

18(G) A description of the property’s potential for transit-oriented
19development and the advancement of the planning objectives of
20the successor agency.

21(H) A brief history of previous development proposals and
22activity, including the rental or lease of property.

23(2) Address the use or disposition of all of the properties in the
24trust. Permissible uses include the retention of the property for
25governmental use pursuant to subdivision (a) of Section 34181,
26the retention of the property for future development, the sale of
27the property, or the use of the property to fulfill an enforceable
28obligation. The plan shall separately identify and list properties in
29the trust dedicated to governmental use purposes and properties
30retained for purposes of fulfilling an enforceable obligation. With
31respect to the use or disposition of all other properties, all of the
32following shall apply:

33(A) (i) If the plan directs the use or liquidation of the property
34for a project identified in an approved redevelopment plan, the
35property shall transfer to the city, county, or city and county.

36(ii) For purposes of this subparagraph, the term “identified in
37an approved redevelopment plan” includes properties listed in a
38community plan or a five-year implementation plan.

begin insert

39(iii) The department or an oversight board may require approval
40of a compensation agreement or agreements, as described in
P17   1subdivision (f) of Section 34180, prior to any transfer of property
2pursuant to this subparagraph, provided, however, that a
3compensation agreement or agreements may be developed and
4executed subsequent to the approval process of a long-range
5property management plan.

end insert

6(B) If the plan directs the liquidation of the property or the use
7of revenues generated from the property, such as lease or parking
8revenues, for any purpose other than to fulfill an enforceable
9obligation or other than that specified in subparagraph (A), the
10proceeds from the sale shall be distributed as property tax to the
11taxing entities.

12(C) Property shall not be transferred to a successor agency, city,
13county, or city and county, unless the long-range property
14management plan has been approved by the oversight board and
15the Department of Finance.

begin delete

16(d) The department may require approval of a compensation
17agreement or agreements, as described in subdivision (f) of Section
1834180, except that the department shall not require approval of a
19compensation agreement or agreements as part of the approval
20 process of a long-range property management plan.

end delete
begin delete

12 21(e)

end delete

22begin insert(d)end insert The department shall only consider whether the long-range
23property management plan makes a good faith effort to address
24the requirements set forth in subdivision (c).

begin delete

15 25(f)

end delete

26begin insert(e)end insert The department shall approve long-range property
27management plans as expeditiously as possible.

begin delete

17 28(g)

end delete

29begin insert(f)end insert Actions relating to the disposition of property after approval
30of a long-range property management plan shall not require review
31by the department.



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