BILL NUMBER: AB 2031 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 2, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
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 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. 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. 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 50093 of the Health and Safety
Code, 50093, very low income households, as
defined in Section 50105 of the Health and Safety Code,
50105, or extremely low income households, as
defined in Section 50106 of the Health and Safety Code.
50106.
(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 1.85. 1.85 (commencing with Section
34170).
34191.35. (a) Commencing when a successor entity
entity, including a designated local authority
established pursuant to subdivision (d) of Section 34173,
receives a finding of completion pursuant to Section 34179.7, there
exists, within the same geographical boundaries of the jurisdiction
of that successor agency, entity, 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 agency and became the successor agency that
received the finding of completion pursuant to Section 34179.7,
agency, or three members of the board of
supervisors, if a county formed the redevelopment agency and
became the successor agency that received the finding of completion
pursuant to Section 34179.7. agency. 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 agency and became the successor agency that
received the finding of completion pursuant to Section 34179.7.
agency.
(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 agency and became the successor agency that
has received a finding of completion pursuant to Section 34179.7.
agency.
(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. (a) Notwithstanding any other
law, a city or county that formed a redevelopment agency and
became the successor agency that received the finding of completion
pursuant to Section 34179.7, may by ordinance or resolution
reject its distributions of property tax revenues from the
trust fund. that it would otherwise receive pursuant
to Part 1.85 (commencing with Section 34170). 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 1.85,
1.85 (commencing with Section 34170), and the county
auditor-controller shall transfer all of that distribution of
property tax revenues to the beneficiary district.
(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:
(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.
(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.
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. (1) (a)
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).
(2)
(b) 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 proceeds
revenues pursuant to Section 34191.45.