Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2031


Introduced by Assembly Members Bonta and Atkins

(Coauthors: Assembly Members Low and Mullin)

February 16, 2016


An act tobegin insert add Part 1.87 (commencing with Section 34191.30) to Division 24 of the Health and Safety Code,end insert relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2031, as amended, Bonta. Local government: affordable housing: financing.

begin insert

Existing law requires, from February 1, 2012, to July 1, 2012, inclusive, and for each fiscal year thereafter, the county auditor-controller in each county to allocate property tax revenues in the county’s Redevelopment Property Tax Trust Fund, established to receive revenues equivalent to those that would have been allocated to former redevelopment agencies had those agencies not been dissolved, towards the payment of enforceable obligations and among entities that include, among others, a city and the county or the city and county.

end insert
begin insert

This bill would authorize a city or county that formed a redevelopment agency and became the successor agency that received a finding of completion from the Department of Finance to reject its allocations of property tax revenues from the trust fund. The bill would direct those rejected property tax revenues to an affordable housing special beneficiary district, established as a temporary and distinct local governmental entity for the purposes of receiving a rejected distribution of property tax proceeds and promoting affordable housing by providing financing assistance within its boundaries. The bill would require a beneficiary district to be governed by a 5-member board and comply with specified open meeting and public record laws. The bill would require a beneficiary district to cease to exist on the 90th calendar day after the date the county auditor-controller makes the final transfer of the distribution of property tax revenues to the beneficiary district, and prohibit a beneficiary district from undertaking any obligation that requires its action past that date. The bill would transfer any funds and public records of a beneficiary district remaining after the date the beneficiary district ceases to exist to the city or county that rejected the of property tax revenues thereafter directed to that district, as specified.

end insert
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Existing law establishes various programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, veteran housing, home ownership for very low and low-income households, and downpayments for first-time homebuyers. Additionally, the Housing Authorities Law establishes public corporations known as housing authorities within each city and county in this state, and authorizes these housing authorities to undertake various actions for the purpose of increasing the availability of housing.

end delete
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This bill would state the intent of the Legislature to enact legislation that would allow local governments to provide additional funding for affordable housing.

end delete

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertPart 1.87 (commencing with Section 34191.30)
2is added to Division 24 of the end insert
begin insertHealth and Safety Codeend insertbegin insert, to read:end insert

begin insert

3 

4PART begin insert1.87.end insert  Affordable Housing Special Beneficiary
5District

6

 

7

begin insert34191.30end insert  

For purposes of this part, the following definitions
8shall apply:

9(a) “Affordable housing” means a dwelling available for
10purchase or lease by persons and families who qualify as low or
11moderate income, as defined in Section 50093 of the Health and
12Safety Code, very low income households, as defined in Section
1350105 of the Health and Safety Code, or extremely low income
P3    1households, as defined in Section 50106 of the Health and Safety
2Code.

3(b) “Beneficiary district” is an affordable housing special
4beneficiary district established pursuant to this part that exists for
5a limited duration as a distinct local governmental entity for the
6purposes of receiving rejected distributions of property tax
7 revenues and providing financing assistance to promote affordable
8housing within its boundaries.

9(c) “Distributions of property tax revenues” means all property
10tax revenues a city or county would be entitled to receive pursuant
11to Part 1.85.

12

begin insert34191.35.end insert  

(a) Commencing when a successor entity receives
13a finding of completion pursuant to Section 34179.7, there exists,
14within the same geographical boundaries of the jurisdiction of
15that successor agency, an affordable housing special beneficiary
16district.

17(b) (1) A beneficiary district ceases to exist on the 90th calendar
18day after the date the county auditor-controller makes the final
19transfer of distributed property tax revenues to the beneficiary
20district. On and after the date a beneficiary district ceases to exist,
21the beneficiary district shall not have the authority to conduct any
22business, including, but not limited to, taking any action or making
23any payment, and any funds of the beneficiary district shall
24 automatically transfer to the city or county that rejected its
25distributions of property tax revenues pursuant to Section 34191.45
26that were thereafter directed to the district.

27(2) Notwithstanding Section 34191.40, the terms of the members
28of the board of a beneficiary district shall expire on the date the
29beneficiary district ceases to exist.

30(3) Any legal right of the beneficiary district on or after the date
31the beneficiary district ceases to exist, including, but not limited
32to, the right to repayment pursuant to a loan made by the
33beneficiary district, is the right of the city or county that rejected
34its distributions of property tax revenues pursuant to Section
3534191.45 that was thereafter directed to the district.

36

begin insert34191.40.end insert  

(a) A beneficiary district shall be governed by a
37board composed of the following five members:

38(1) Three members of the city council, if a city formed the
39redevelopment agency and became the successor agency that
40received the finding of completion pursuant to Section 34179.7,
P4    1or three members of the board of supervisors, if a county formed
2the redevelopment agency and became the successor agency that
3received the finding of completion pursuant to Section 34179.7.
4The three members shall be appointed by the city council or board
5of supervisors, as applicable.

6(2) The treasurer of the city or county that formed the
7redevelopment agency and became the successor agency that
8 received the finding of completion pursuant to Section 34179.7.

9(3) One member of the public who lives within the boundaries
10of the beneficiary district who is appointed by the city council or
11county board of supervisors of the city or county that formed the
12redevelopment agency and became the successor agency that has
13received a finding of completion pursuant to Section 34179.7.

14(b) The board shall elect one of its members as the chairperson.

15(c) Each member shall serve a term of four years from the date
16of his or her appointment. Vacancies on the board shall be filled
17by the appointing authority for a new four-year term. A member
18may be reappointed.

19(d) Each member shall serve without compensation.

20

begin insert34191.45.end insert  

Notwithstanding any other law, a city or county that
21formed a redevelopment agency and became the successor agency
22that received the finding of completion pursuant to Section 34179.7,
23may by ordinance or resolution reject its distributions of property
24tax revenues from the trust fund. Except as provided in subdivision
25(b) of Section 34191.35, on and after the date that a city or county
26rejects its distributions of property tax revenues, the city or county
27shall not have any claim to, or control over, the distributions of
28property tax revenues it may have otherwise received pursuant to
29Part 1.85, and the county auditor-controller shall transfer all of
30that distribution of property tax revenues to the beneficiary district.

31

begin insert34191.50.end insert  

(a) A beneficiary district shall only promote the
32development of affordable housing within its boundaries.

33(b) A beneficiary district may promote the development of
34affordable housing by doing any of the following:

35(1) Issuing bonds to be repaid from the property tax revenues
36directed to the district.

37(2) Providing financial assistance for the development of
38affordable housing, including, but not limited to, providing loans,
39grants, and other financial incentives and support.

P5    1(3) Taking other actions the board determines will promote the
2 financing of the development of affordable housing within its
3boundaries.

4(c) A beneficiary district shall not undertake any obligation that
5requires an action after the date it will cease to exist, including,
6but not limited to, issuing a bond that requires any repayment of
7the bond obligation after the date the beneficiary district will cease
8to exist.

9

begin insert34191.55.end insert  

(1) A beneficiary district shall comply with the
10Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
11of Part 1 of Division 2 of Title 5 of the Government Code) and the
12California Public Records Act (Chapter 3.5 (commencing with
13Section 6250) of Division 7 of Title 1 of the Government Code).

14(2) When a beneficiary district ceases to exist pursuant to
15subdivision (b) of Section 34191.35, a public record of the
16beneficiary district shall be the property of the city or county that
17rejected its distribution of property tax proceeds pursuant to
18Section 34191.45.

end insert
begin delete
19

SECTION 1.  

It is the intent of the Legislature to enact
20legislation that would allow local governments to provide
21additional funding for affordable housing.

end delete


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