Amended in Senate August 2, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2031

Introduced by Assembly Members Bonta and Atkins

(Coauthors: Assembly Members Low and Mullin)

February 16, 2016

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

LEGISLATIVE COUNSEL’S DIGEST

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

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.

This bill would authorize a city or county begin delete that formed a redevelopment agency and became the successor agency that received a finding of completion from the Department of Finance end delete to reject its allocations of property tax revenues begin delete from the trust fund. end delete begin insert that it would otherwise receive pursuant to specified statutory provisions governing the dissolution of redevelopment agencies. The bill would except from this authorization a city, county, or city and county that became the successor agency to the redevelopment agency and did not receive a finding of completion from the Department of Finance, as specified, and any designated local authority of a redevelopment agency, formed as specified, that did not receive the finding of completion from the Department of Finance. end insert 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.

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

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

SECTION 1.  

Part 1.87 (commencing with Section 34191.30)
is added to Division 24 of the Health and Safety Code, to read:

 

PART 1.87.  Affordable Housing Special
Beneficiary District

 

34191.30  

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

(a) “Affordable housing” means a dwelling available for
purchase or lease by persons and families who qualify as low or
moderate income, as defined in Section begin delete 50093 of the Health and
Safety Code, end delete begin insert 50093, end insert very low income households, as defined in
Section begin delete 50105 of the Health and Safety Code, end delete begin insert 50105, end insert or extremely
low income households, as defined in Section begin delete 50106 of the Health
and Safety Code. end delete begin insert 50106. end insert

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

(c) “Distributions of property tax revenues” means all property
tax revenues a city or county would be entitled to receive pursuant
to Part begin delete 1.85. end delete begin insert 1.85 (commencing with Section 34170). end insert

34191.35.  

(a) Commencing when a successor begin delete entity end delete begin insert entity,
including a designated local authority established pursuant to
subdivision (d) of Section 34173, end insert receives a finding of completion
pursuant to Section 34179.7, there exists, within the same
geographical boundaries of the jurisdiction of that successor
begin delete agency, end delete begin insert entity, end insert an affordable housing special beneficiary district.

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

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

(3) Any legal right of the beneficiary district on or after the date
the beneficiary district ceases to exist, including, but not limited
to, the right to repayment pursuant to a loan made by the
beneficiary district, is the right of the city or county that rejected
its distributions of property tax revenues pursuant to Section
34191.45 that was thereafter directed to the district.

34191.40.  

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

(1) Three members of the city council, if a city formed the
redevelopment begin delete agency and became the successor agency that
received the finding of completion pursuant to Section 34179.7, end delete
begin insert agency, end insert or three members of the board of supervisors, if a county
formed the redevelopment begin delete agency and became the successor agency
that received the finding of completion pursuant to Section
34179.7. end delete begin insert agency. end insert The three members shall be appointed by the
city council or board of supervisors, as applicable.

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

begin insert agency. end insert

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

begin insert agency. end insert

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

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

(d) Each member shall serve without compensation.

34191.45.  

begin insert (a) end insert begin insert   end insert Notwithstanding any other law, a city or county
begin delete that formed a redevelopment agency and became the successor
agency that received the finding of completion pursuant to Section
34179.7, end delete may by ordinance or resolution reject its distributions of
property tax revenues begin delete from the trust fund. end delete begin insert that it would otherwise
receive pursuant to Part 1.85 (commencing with Section 34170). end insert
Except as provided in subdivision (b) of Section 34191.35, on and
after the date that a city or county rejects its distributions of
property tax revenues, the city or county shall not have any claim
to, or control over, the distributions of property tax revenues it
may have otherwise received pursuant to Part begin delete 1.85, end delete begin insert 1.85
(commencing with Section 34170), end insert and the county
auditor-controller shall transfer all of that distribution of property
tax revenues to the beneficiary district.

begin insert

(b) This section shall not apply to any city, county, or city and
county that formed a redevelopment agency if either of the
following apply:

end insert begin insert

(1) The city, county, or city and county became the successor
agency to the redevelopment agency and did not receive a finding
of completion pursuant to Section 34179.7.

end insert begin insert

(2) The designated local authority of the redevelopment agency,
formed pursuant to subdivision (d) of Section 34173, did not
receive the finding of completion pursuant to Section 34179.7.

end insert

34191.50.  

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

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

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

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

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

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

34191.55.  

begin delete (1) end delete begin delete   end delete begin insert (a) end insert begin insert   end insert A beneficiary district shall comply with the
Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) and the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code).

begin delete

(2)

end delete

begin insert (b) end insert  When a beneficiary district ceases to exist pursuant to
subdivision (b) of Section 34191.35, a public record of the
beneficiary district shall be the property of the city or county that
rejected its distribution of property tax begin delete proceeds end delete begin insert revenues end insert pursuant
to Section 34191.45.