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 to reject its allocations of property tax revenues 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
begin delete aend delete rejected begin delete distributionend delete of property tax begin delete proceedsend delete and begin delete promotingend delete affordable housing begin delete by providing financing assistanceend delete 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 begin delete 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,end delete 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 begin delete the ofend delete 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:
Part 1.87 (commencing with Section 34191.30)
2is added to Division 24 of the Health and Safety Code, to read:
For purposes of this part, the following definitions
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, very low income
12households, as defined in Section 50105, or extremely low income
13households, as defined in Section 50106.
P3 1(b) “Beneficiary district” is an affordable housing special
2beneficiary district established pursuant to this part that exists for
3a limited duration as a distinct local governmental entity for the
4 purposes of receiving rejected distributions of property
5tax revenues and providing financing assistance to promote
6affordable housing within its boundaries.
7(c) “Distributions of property tax revenues” means all property
8tax revenues a city or county would be entitled to receive pursuant
9to Part 1.85 (commencing with Section 34170).
(a) Commencing when a successor entity, including
11a designated local authority established pursuant to subdivision
12(d) of Section 34173, receives a finding of completion pursuant
13to Section 34179.7, there exists, within the same geographical
14boundaries of the jurisdiction of that successor entity, an affordable
15housing special beneficiary district.
16(b) (1) A beneficiary district
begin delete ceasesend delete to exist on the
17 90th calendar day after the date the
begin delete county On and after the date a beneficiary district ceases
18auditor-controller makes the final transfer of distributed property
19tax revenues to the beneficiary district.end delete
24to exist, the beneficiary district shall not have the authority to
25conduct any business, including, but not limited to, taking any
26action or making any payment, and any funds of the beneficiary
27district shall automatically transfer to the city or county that
28rejected its distributions of property tax revenues pursuant to
29Section 34191.45 that were thereafter directed to the
31(2) Notwithstanding Section 34191.40, the terms of the members
32of the board of a beneficiary district shall expire on the date the
33beneficiary district ceases to exist.
34(3) Any legal right of the beneficiary district on or after the date
35the beneficiary district ceases to exist, including, but not limited
36to, the right to repayment pursuant to a loan made by the
37beneficiary district, is the right of the city or county that rejected
38its distributions of property tax revenues pursuant to Section
3934191.45 that was thereafter directed to the district.
(a) A beneficiary district shall be governed by a
2board composed of the following five members:
3(1) Three members of the city council, if a city formed the
4redevelopment agency, or three members of the board of
5supervisors, if a county formed the redevelopment agency. The
6three members shall be appointed by the city council or board of
7supervisors, as applicable.
8(2) The treasurer of the city or county that formed the
10(3) One member of the public who lives within the boundaries
11of the beneficiary district who is appointed by the city council or
12county board of supervisors of the city or county that formed the
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.
(a) Notwithstanding any other law, a city or county
21may by ordinance or resolution reject its distributions of property
22tax revenues that it would otherwise receive pursuant to Part 1.85
23(commencing with Section 34170). Except as provided in
24subdivision (b) of Section 34191.35, on and after the date that a
25city or county rejects its distributions of property tax revenues, the
26city or county shall not have any claim to, or control over, the
27distributions of property tax revenues it may have otherwise
28received pursuant to Part 1.85 (commencing with Section 34170),
29and the county auditor-controller shall transfer all of
begin delete that of property tax revenues to the
32(b) This section shall not apply to any city, county, or city and
33county that formed a redevelopment agency if either of the
35(1) The city, county, or city and county became the successor
36agency to the redevelopment agency and did not receive a finding
37of completion pursuant to Section 34179.7.
38(2) The designated local authority of the redevelopment agency,
39formed pursuant to subdivision (d) of Section 34173, did not
40receive the finding of completion pursuant to Section 34179.7.
(a) A beneficiary district shall
begin delete only promoteend delete the
3development of affordable housing within its boundaries.
4(b) A beneficiary district may promote the development of
5affordable housing by doing any of the following:
6(1) Issuing bonds to be repaid from the property
7tax revenues directed to the district.
8(2) Providing financial assistance for the development of
9affordable housing, including, but not limited to, providing loans,
10grants, and other financial incentives and support.
11(3) Taking other actions the board determines will promote the
12 financing of the development of affordable housing within its
14(c) A beneficiary district shall not undertake any obligation that
15requires an action after the date it will cease to exist, including,
16but not limited to, issuing a bond that requires any repayment of
17the bond obligation after the date the beneficiary district will cease
(a) A beneficiary district shall comply with the
20Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
21of Part 1 of Division 2 of Title 5 of the Government Code) and the
22California Public Records Act (Chapter 3.5 (commencing with
23Section 6250) of Division 7 of Title 1 of the Government Code).
24(b) When a beneficiary district ceases to exist pursuant to
25subdivision (b) of Section 34191.35, a public record of the
26beneficiary district shall be the property of the city or county that
begin delete distributionend delete of property tax revenues
28pursuant to Section 34191.45.