Amended in Senate August 19, 2016

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 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 begin insert distributions of end insert property tax revenues to an affordable housing special beneficiary district, established as a temporary and distinct local governmental entity for the begin insert express end insert purposes of receiving begin delete a end delete rejected begin delete distribution end delete begin insert distributions end insert of property tax begin delete proceeds end delete begin insert revenues end insert and begin delete promoting end delete begin insert providing financing assistance to promote end insert affordable housing begin delete by providing financing assistance end 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 begin insert automatically end insert 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 begin insert on a specifically calculated date end insert 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 of end delete begin insert its end insert property tax revenues begin insert that were end insert thereafter directed to that begin insert end insert begin insert beneficiary end insert 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, very low income
households, as defined in Section 50105, or extremely low income
households, as defined in Section 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
begin insert express end insert 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 (commencing with Section 34170).

34191.35.  

(a) Commencing when a successor 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 entity, an affordable
housing special beneficiary district.

(b) (1) A beneficiary district begin delete ceases end delete begin insert shall cease end insert to exist on the
begin insert earlier of the end insert 90th calendar day after the date the begin delete county
auditor-controller makes the final transfer of distributed property
tax revenues to the beneficiary district. end delete begin insert Department of Finance
approves a request to dissolve the successor entity pursuant to
Section 34187, or the 20th anniversary of the date that the
successor entity received a finding of completion pursuant to
Section 34179.7. end insert 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 begin insert beneficiary end insert
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 begin insert beneficiary end insert 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, or three members of the board of
supervisors, if a county formed the redevelopment 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.

(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.

(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
may by ordinance or resolution reject its distributions of property
tax revenues 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 (commencing with Section 34170),
and the county auditor-controller shall transfer all of begin delete that
distribution end delete begin insert the distributions end insert 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 begin delete only promote end delete begin insert use
any funds provided to it for the express purpose of promoting end insert 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 begin insert distributions of end insert property
tax revenues directed to the begin insert end insert begin insert beneficiary end insert 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.  

(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).

(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 begin delete distribution end delete begin insert distributions end insert of property tax revenues
pursuant to Section 34191.45.