BILL NUMBER: AB 806 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 6, 2015
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, to enter into,
or amend or modify 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
representatives to serve on the oversight board as may be
necessary. This bill would provide that the an
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. representatives.
(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 specify that the
compensation agreement or agreements as part of
may be developed and executed subsequent to 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:
SECTION 1. Section 34171 of the Health and Safety Code is amended
to read:
34171. The following terms shall have the following meanings:
(a) "Administrative budget" means the budget for administrative
costs of the successor agencies as provided in Section 34177.
(b) "Administrative cost allowance" means an amount that, subject
to the approval of the oversight board, is payable from property tax
revenues of up to 5 percent of the property tax allocated to the
successor agency on the Recognized Obligation Payment Schedule
covering the period January 1, 2012, through June 30, 2012, and up to
3 percent of the property tax allocated to the Redevelopment
Obligation Retirement Fund money that is allocated to the successor
agency for each fiscal year thereafter; provided, however, that the
amount shall not be less than two hundred fifty thousand dollars
($250,000), unless the oversight board reduces this amount, for any
fiscal year or such lesser amount as agreed to by the successor
agency. However, the allowance amount shall exclude, and shall not
apply to, any administrative costs that can be paid from bond
proceeds or from sources other than property tax. Administrative cost
allowances shall exclude any litigation expenses related to assets
or obligations, settlements and judgments, and the costs of
maintaining assets prior to disposition. Employee costs associated
with work on specific project implementation activities, including,
but not limited to, construction inspection, project management, or
actual construction, shall be considered project-specific costs and
shall not constitute administrative costs.
(c) "Designated local authority" shall mean a public entity formed
pursuant to subdivision (d) of Section 34173.
(d) (1) "Enforceable obligation" means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant
to Chapter 10.5 (commencing with Section 5850) of Division 6 of Title
1 of the Government Code, including the required debt service,
reserve set-asides, and any other payments required under the
indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency. A reserve may
be held when required by the bond indenture or when the next property
tax allocation will be insufficient to pay all obligations due under
the provisions of the bond for the next payment due in the following
half of the calendar year.
(B) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan
terms.
(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations conferred
through a collective bargaining agreement. Costs incurred to fulfill
collective bargaining agreements for layoffs or terminations of city
employees who performed work directly on behalf of the former
redevelopment agency shall be considered enforceable obligations
payable from property tax funds. The obligations to employees
specified in this subparagraph shall remain enforceable obligations
payable from property tax funds for any employee to whom those
obligations apply if that employee is transferred to the entity
assuming the housing functions of the former redevelopment agency
pursuant to Section 34176. The successor agency or designated local
authority shall enter into an agreement with the housing entity to
reimburse it for any costs of the employee obligations.
(D) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(E) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
However, nothing in this act shall prohibit either the successor
agency, with the approval or at the direction of the oversight board,
or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required
compensation or remediation for such termination. Titles of or
headings used on or in a document shall not be relevant in
determining the existence of an enforceable obligation.
(F) Contracts or agreements necessary for the administration or
operation of the successor agency, in accordance with this part,
including, but not limited to, agreements concerning litigation
expenses related to assets or obligations, settlements and judgments,
and the costs of maintaining assets prior to disposition, and
agreements to purchase or rent office space, equipment and supplies,
and pay-related expenses pursuant to Section 33127 and for carrying
insurance pursuant to Section 33134.
(G) Amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency, which had
been deferred as of the effective date of the act adding this part;
provided, however, that the repayment schedule is approved by the
oversight board. Repayments shall be transferred to the Low and
Moderate Income Housing Asset Fund established pursuant to
subdivision (d) of Section 34176 as a housing asset and shall be used
in a manner consistent with the affordable housing requirements of
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(2) For purposes of this part, "enforceable obligation" does not
include any agreements, contracts, or arrangements between the city,
county, or city and county that created the redevelopment agency and
the former redevelopment agency. However, written agreements entered
into (A) at the time of issuance, but in no event later than December
31, 2010, of indebtedness obligations, and (B) solely for the
purpose of securing or repaying those indebtedness
obligations obligations, may be deemed
enforceable obligations for purposes of this part. Notwithstanding
this paragraph, loan agreements entered into between the
redevelopment agency and the city, county, or city and county that
created it, within two years of the date of creation of the
redevelopment agency, may be deemed to be enforceable obligations.
Notwithstanding this paragraph, an agreement entered into by the
redevelopment agency prior to June 30, 2011, is an enforceable
obligation if the agreement relates to state highway infrastructure
improvements to which the redevelopment agency committed funds
pursuant to Section 33445.
(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit to
the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed void on
the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall not be
deemed void.
(e) "Indebtedness obligations" means bonds, notes, certificates of
participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to third-party
investors or bondholders to finance or refinance redevelopment
projects undertaken by the redevelopment agency in compliance with
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(f) "Oversight board" shall mean each entity established pursuant
to Section 34179.
(g) "Recognized obligation" means an obligation listed in the
Recognized Obligation Payment Schedule.
(h) "Recognized Obligation Payment Schedule" means the document
setting forth the minimum payment amounts and due dates of payments
required by enforceable obligations for each six-month fiscal period
as provided in subdivision (m) of Section 34177.
(i) "School entity" means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(j) "Successor agency" means the successor entity to the former
redevelopment agency as described in Section 34173.
(k) "Taxing entities" means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant to
the provisions of this part.
(l) "Property taxes" include all property tax revenues, including
those from unitary and supplemental and roll corrections applicable
to tax increment.
(m) "Department" means the Department of Finance unless the
context clearly refers to another state agency.
(n) "Sponsoring entity" means the city, county, or city and
county, or other entity that authorized the creation of each
redevelopment agency.
(o) "Final judicial determination" means a final judicial
determination made by any state court that is not appealed, or by a
court of appellate jurisdiction that is not further appealed, in an
action by any party.
(p) From July 1, 2014, to July 1, 2018, inclusive, "housing entity
administrative cost allowance" means an amount of up to 1 percent of
the property tax allocated to the Redevelopment Obligation
Retirement Fund on behalf of the successor agency for each applicable
fiscal year, but not less than one hundred fifty thousand dollars
($150,000) per fiscal year.
(1) If a local housing authority assumed the housing functions of
the former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176, then the housing entity
administrative cost allowance shall be listed by the successor agency
on the Recognized Obligation Payment Schedule. Upon approval of the
Recognized Obligation Payment Schedule by the oversight board and the
department, the housing entity administrative cost allowance shall
be remitted by the successor agency on each January 2 and July 1 to
the local housing authority that assumed the housing functions of the
former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176.
(2) If there are insufficient moneys in the Redevelopment
Obligations Retirement Fund in a given fiscal year to make the
payment authorized by this subdivision, the unfunded amount may be
listed on each subsequent Recognized Obligation Payment Schedule
until it has been paid in full. In these cases the five-year time
limit on the payments shall not apply.
SEC. 2. Section 34179 of the Health and Safety Code is amended to
read:
34179. (a) Each successor agency shall have an oversight board
composed of seven members. The members shall elect one of their
members as the chairperson and shall report the name of the
chairperson and other members to the Department of Finance on or
before May 1, 2012. Members shall be selected as follows:
(1) One member appointed by the county board of supervisors.
(2) One member appointed by the mayor for the city that formed the
redevelopment agency.
(3) (A) One member appointed by the largest special district, by
property tax share, with territory in the territorial jurisdiction of
the former redevelopment agency, which is of the type of special
district that is eligible to receive property tax revenues pursuant
to Section 34188.
(B) On or after the effective date of this subparagraph, the
county auditor-controller may determine which is the largest special
district for purposes of this section.
(4) One member appointed by the county superintendent of education
to represent schools if the superintendent is elected. If the county
superintendent of education is appointed, then the appointment made
pursuant to this paragraph shall be made by the county board of
education.
(5) One member appointed by the Chancellor of the California
Community Colleges to represent community college districts in the
county.
(6) One member of the public appointed by the county board of
supervisors.
(7) One member representing the employees of the former
redevelopment agency appointed by the mayor or chair of the board of
supervisors, as the case may be, from the recognized employee
organization representing the largest number of former redevelopment
agency employees employed by the successor agency at that time. In
the case where city or county employees performed administrative
duties of the former redevelopment agency, the appointment shall be
made from the recognized employee organization representing those
employees. If a recognized employee organization does not exist for
either the employees of the former redevelopment agency or the city
or county employees performing administrative duties of the former
redevelopment agency, the appointment shall be made from among the
employees of the successor agency. In voting to approve a contract as
an enforceable obligation, a member appointed pursuant to this
paragraph shall not be deemed to be interested in the contract by
virtue of being an employee of the successor agency or community for
purposes of Section 1090 of the Government Code.
(8) If the county or a joint powers agency formed the
redevelopment agency, then the largest city by acreage in the
territorial jurisdiction of the former redevelopment agency may
select one member. If there are no cities with territory in a project
area of the redevelopment agency, the county superintendent of
education may appoint an additional member to represent the public.
(9) If there are no special districts of the type that are
eligible to receive property tax pursuant to Section 34188, within
the territorial jurisdiction of the former redevelopment agency, then
the county may appoint one member to represent the public.
(10) If a redevelopment agency was formed by an entity that is
both a charter city and a county, the oversight board shall be
composed of seven members selected as follows: three members
appointed by the mayor of the city, if that appointment is subject to
confirmation by the county board of supervisors, one member
appointed by the largest special district, by property tax share,
with territory in the territorial jurisdiction of the former
redevelopment agency, which is the type of special district that is
eligible to receive property tax revenues pursuant to Section 34188,
one member appointed by the county superintendent of education to
represent schools, one member appointed by the Chancellor of the
California Community Colleges to represent community college
districts, and one member representing employees of the former
redevelopment agency appointed by the mayor of the city if that
appointment is subject to confirmation by the county board of
supervisors, to represent the largest number of former redevelopment
agency employees employed by the successor agency at that time.
(11) Each appointing authority identified in this subdivision may,
but is not required to, appoint an alternate
representative representatives to serve
on the oversight board as may be necessary to attend any meeting of
the oversight board in the event that the appointing authority's
primary representative is unable to attend any meeting for any
reason. If the an alternate
representative attends any meeting in place of the primary
representative, the alternative representative shall have the same
participatory and voting rights as all other attending members of the
oversight board. The successor agency shall promptly notify the
department regarding the appointment of any
alternate representative representatives
to the oversight board.
(b) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (a) that has not been
filled by May 15, 2012, or any member position that remains vacant
for more than 60 days.
(c) The oversight board may direct the staff of the successor
agency to perform work in furtherance of the oversight board's duties
and responsibilities under this part. The successor agency shall pay
for all of the costs of meetings of the oversight board and may
include such costs in its administrative budget. Oversight board
members shall serve without compensation or reimbursement for
expenses.
(d) Oversight board members are protected by the immunities
applicable to public entities and public employees governed by Part 1
(commencing with Section 810) and Part 2 (commencing with Section
814) of Division 3.6 of Title 1 of the Government Code.
(e) A majority of the total membership of the oversight board
shall constitute a quorum for the transaction of business. A majority
vote of the total membership of the oversight board is required for
the oversight board to take action. The oversight board shall be
deemed to be a local entity for purposes of the Ralph M. Brown Act,
the California Public Records Act, and the Political Reform Act of
1974. All actions taken by the oversight board shall be adopted by
resolution.
(f) All notices required by law for proposed oversight board
actions shall also be posted on the successor agency's Internet Web
site or the oversight board's Internet Web site.
(g) Each member of an oversight board shall serve at the pleasure
of the entity that appointed such member.
(h) The Department of Finance may review an oversight board action
taken pursuant to this part. Written notice and information about
all actions taken by an oversight board shall be provided to the
department by electronic means and in a manner of the department's
choosing. An action shall become effective five business days after
notice in the manner specified by the department is provided unless
the department requests a review. Each oversight board shall
designate an official to whom the department may make those requests
and who shall provide the department with the telephone number and
email contact information for the purpose of communicating with the
department pursuant to this subdivision. Except as otherwise provided
in this part, in the event that the department requests a review of
a given oversight board action, it shall have 40 days from the date
of its request to approve the oversight board action or return it to
the oversight board for reconsideration and the oversight board
action shall not be effective until approved by the department. In
the event that the department returns the oversight board action to
the oversight board for reconsideration, the oversight board shall
resubmit the modified action for department approval and the modified
oversight board action shall not become effective until approved by
the department. If the department reviews a Recognized Obligation
Payment Schedule, the department may eliminate or modify any item on
that schedule prior to its approval. The county auditor-controller
shall reflect the actions of the department in determining the amount
of property tax revenues to allocate to the successor agency. The
department shall provide notice to the successor agency and the
county auditor-controller as to the reasons for its actions. To the
extent that an oversight board continues to dispute a determination
with the department, one or more future recognized obligation
schedules may reflect any resolution of that dispute. The department
may also agree to an amendment to a Recognized Obligation Payment
Schedule to reflect a resolution of a disputed item; however, this
shall not affect a past allocation of property tax or create a
liability for any affected taxing entity.
(i) Oversight boards shall have fiduciary responsibilities to
holders of enforceable obligations and the taxing entities that
benefit from distributions of property tax and other revenues
pursuant to Section 34188. Further, the provisions of Division 4
(commencing with Section 1000) of the Government Code shall apply to
oversight boards. Notwithstanding Section 1099 of the Government
Code, or any other law, any individual may simultaneously be
appointed to up to five oversight boards and may hold an office in a
city, county, city and county, special district, school district, or
community college district.
(j) Commencing on and after July 1, 2016, in each county where
more than one oversight board was created by operation of the act
adding this part, there shall be only one oversight board appointed
as follows:
(1) One member may be appointed by the county board of
supervisors.
(2) One member may be appointed by the city selection committee
established pursuant to Section 50270 of the Government Code. In a
city and county, the mayor may appoint one member.
(3) One member may be appointed by the independent special
district selection committee established pursuant to Section 56332 of
the Government Code, for the types of special districts that are
eligible to receive property tax revenues pursuant to Section 34188.
(4) One member may be appointed by the county superintendent of
education to represent schools if the superintendent is elected. If
the county superintendent of education is appointed, then the
appointment made pursuant to this paragraph shall be made by the
county board of education.
(5) One member may be appointed by the Chancellor of the
California Community Colleges to represent community college
districts in the county.
(6) One member of the public may be appointed by the county board
of supervisors.
(7) One member may be appointed by the recognized employee
organization representing the largest number of successor agency
employees in the county.
(k) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (j) that has not been
filled by July 15, 2016, or any member position that remains vacant
for more than 60 days.
(l) Commencing on and after July 1, 2016, in each county where
only one oversight board was created by operation of the act adding
this part, then there will be no change to the composition of that
oversight board as a result of the operation of subdivision (b).
(m) Any oversight board for a given successor agency shall cease
to exist when all of the indebtedness of the dissolved redevelopment
agency has been repaid.
(n) An oversight board may direct a successor agency to provide
additional legal or financial advice than what was given by agency
staff.
(o) An oversight board is authorized to contract with the county
or other public or private agencies for administrative support.
(p) On matters within the purview of the oversight board,
decisions made by the oversight board supersede those made by the
successor agency or the staff of the successor agency.
SEC. 3. Section 34191.4 of the Health and Safety Code is amended
to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.5
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The annual loan repayments provided for in the
recognized obligation payment schedules shall be subject to all of
the following limitations:
(A) Loan repayments shall not be made prior to the 2013-14 fiscal
year. Beginning in the 2013-14 fiscal year, the maximum repayment
amount authorized each fiscal year for repayments made pursuant to
this subdivision and paragraph (7) of subdivision (e) of Section
34176 combined shall be equal to one-half of the increase between the
amount distributed to the taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year, provided, however, that calculation of the
amount distributed to taxing entities during the 2012-13 base year
shall not include any amounts distributed to taxing entities pursuant
to the due diligence review process established in Sections 34179.5
to 34179.8, inclusive. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of
the Supplemental Educational Revenue
Augmentation Fund have been paid.
(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
(d) Notwithstanding subdivision (b) of Section 34163, if a
successor agency has received a finding of completion, with the
approval of the successor agency's oversight board,
the successor agency may enter into, or amend
or modify existing, contracts and agreements, or otherwise
administer projects in connection with enforceable obligations
approved pursuant to subdivision (m) of Section 34177, including the
substitution of private developer capital in a disposition and
development agreement that has been deemed an enforceable obligation,
if the contract, agreement, or project will not commit new property
tax funds, and will not otherwise directly or indirectly
reduce property tax revenues or payments made pursuant to paragraph
(4) of subdivision (a) of Section 34183 to the taxing agencies.
SEC. 4. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) (i) If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.
(ii) For purposes of this subparagraph, the term "identified in an
approved redevelopment plan" includes properties listed in a
community plan or a five-year implementation plan.
(iii) The department or an oversight board may require approval of
a compensation agreement or agreements, as described in subdivision
(f) of Section 34180, prior to any transfer of property pursuant to
this subparagraph, provided, however, that a compensation agreement
or agreements may be developed and executed subsequent to the
approval process of a long-range property management plan.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
(d) The department may require approval of a compensation
agreement or agreements, as described in subdivision (f) of Section
34180, except that the department shall not require approval of a
compensation agreement or agreements as part of the approval process
of a long-range property management plan.
(e)
(d) The department shall only consider whether the
long-range property management plan makes a good faith effort to
address the requirements set forth in subdivision (c).
(f)
(e) The department shall approve long-range property
management plans as expeditiously as possible.
(g)
(f) Actions relating to the disposition of property
after approval of a long-range property management plan shall not
require review by the department.