BILL NUMBER: SB 107 CHAPTERED
BILL TEXT
CHAPTER 325
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2015
APPROVED BY GOVERNOR SEPTEMBER 22, 2015
PASSED THE SENATE SEPTEMBER 11, 2015
PASSED THE ASSEMBLY SEPTEMBER 11, 2015
AMENDED IN ASSEMBLY SEPTEMBER 10, 2015
AMENDED IN ASSEMBLY SEPTEMBER 4, 2015
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2015
An act to amend Sections 34171, 34173, 34176, 34176.1, 34177,
34177.3, 34177.5, 34178, 34179, 34179.7, 34180, 34181, 34183, 34186,
34187, 34189, 34191.3, 34191.4, and 34191.5 of, and to add Sections
34170.1, 34177.7, 34179.9, and 34191.6 to, the Health and Safety
Code, and to amend Sections 96.11 and 98 of, and to add Section 96.24
to, the Revenue and Taxation Code, relating to local government, and
making an appropriation therefor, to take effect immediately, bill
related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 107, Committee on Budget and Fiscal Review. Local government.
(1) Existing law dissolved redevelopment agencies and community
development agencies as of February 1, 2012, and provides for the
designation of successor agencies to wind down the affairs of the
dissolved redevelopment agencies and to, among other things, make
payments due for enforceable obligations and to perform obligations
required pursuant to any enforceable obligation.
This bill would provide that any action by the Department of
Finance, that occurred on or after June 28, 2011, carrying out the
department's obligations under the provisions described above
constitutes a department action for the preparation, development, or
administration of the state budget and is exempt from the
Administrative Procedure Act.
(2) Existing law defines "administrative cost allowance" for the
purposes of successor agencies' duties in the winding down of the
affairs of the dissolved redevelopment agencies to mean an amount
that is payable from property tax revenues up to a certain percentage
of the property tax allocated to the successor agency on the
Recognized Obligation Payment Schedule covering a specified period,
and up to a certain percentage of the property tax allocated to the
Redevelopment Obligation Retirement Fund that is allocated to the
successor agency for each fiscal year thereafter.
This bill would restate the definition of "administrative cost
allowance" as the maximum amount of administrative costs that may be
paid by a successor agency from the Redevelopment Property Tax Trust
Fund in a fiscal year. This bill would, commencing July 1, 2016, and
for each fiscal year thereafter, limit the administrative cost
allowance to an amount not to exceed 3% of the actual property tax
distributed to the successor agency for payment of approved
enforceable obligations, reduced by the successor agency's
administrative cost allowance and loan payments made to the city,
county, or city and county that created the redevelopment agency, as
specified, and would limit a successor agency's annual administrative
costs to an amount not to exceed 50% of the total Redevelopment
Property Tax Trust Fund distributed to pay enforceable obligations.
(3) Existing law excludes from the term "administrative cost
allowance" any administrative costs that can be paid from bond
proceeds or from sources other than property tax, any litigation
expenses related to assets or obligations, settlements and judgments,
and the costs of maintaining assets prior to disposition.
This bill would delete these exclusions and would further require
the "administrative cost allowance" to be approved by the oversight
board and to be the sole funding source for any legal expenses
related to civil actions brought by the successor agency or the city,
county, or city and county that created the former redevelopment
agency contesting the validity of laws and actions dissolving and
winding down the redevelopment agencies, as specified.
(4) Existing law specifies that the term "enforceable obligation"
does not include any agreements, contracts, or arrangements between
the city, county, or city and county that created the redevelopment
agency and the former redevelopment agency, as specified.
Notwithstanding this provision, existing law authorizes certain
written agreements to be deemed enforceable obligations.
This bill would specify that an agreement between a city, county,
or city and county that created the former redevelopment agency and
the former redevelopment agency is an enforceable obligation if that
agreement requires the former redevelopment agency to repay or
fulfill an outstanding loan or development obligation imposed by a
grant or loan awarded or issued by a federal agency to the city,
county, or city and county which subsequently loaned or provided
those funds to the former redevelopment agency.
This bill would additionally authorize written agreements entered
into at the time of issuance, but in no event later than June 27,
2011, solely for the refunding or refinancing of other indebtedness
obligations that existed prior to January 1, 2011, and solely for the
purpose of securing or repaying the refunded or refinanced
indebtedness obligations, to be deemed enforceable obligations. This
bill would provide that an agreement entered into by the
redevelopment agency prior to June 28, 2011, is an enforceable
obligation if the agreement relates to state highway infrastructure
improvements, as specified.
(5) Existing law authorizes the city, county, or city and county
that authorized the creation of a redevelopment agency to loan or
grant funds to a successor agency for administrative costs,
enforceable obligations, or project-related expenses at the city's
discretion.
This bill would limit the authorization to loan or grant funds to
the payment of administrative costs or enforceable obligations
excluding loans approved pursuant to specified provisions, and only
to the extent the successor agency receives an insufficient
distribution from the Redevelopment Property Tax Trust Fund, or other
approved sources of funding are insufficient, to pay approved
enforceable obligations, as specified. This bill would require these
loans to be repaid from the source of funds originally approved for
payment of the underlying enforceable obligation, as specified. This
bill would require the interest on these loans to be calculated on a
fixed annual simple basis, and would specify the manner in which
these loans are required to be repaid.
(6) Existing law provides for the transfer of housing assets and
functions previously performed by the dissolved redevelopment agency
to one of several specified public entities. Existing law authorizes
the successor housing entity to designate the use of, and commit,
proceeds from indebtedness that were issued for affordable housing
purposes prior to January 1, 2011, and were backed by the Low and
Moderate Income Housing Fund.
This bill would instead authorize a successor housing entity to
designate the use of, and commit, proceeds from indebtedness that
were issued for affordable housing purposes prior to June 28, 2011.
(7) Existing law authorizes the city, county, or city and county
that created a redevelopment agency to elect to retain the housing
assets and functions previously performed by the redevelopment
agency. Existing law requires that any funds transferred to the
housing successor, together with any funds generated from housing
assets, be maintained in a separate Low and Moderate Income Housing
Asset Fund to be used in accordance with applicable housing-related
provisions of the Community Redevelopment Law, except as specified.
Existing law requires the housing successor to provide an annual
independent financial audit of the fund to its governing body, and to
post on its Internet Web site specified information.
This bill would require that posted information to also include
specified amounts received by the city, county, or city and county.
(8) Existing law requires a successor agency to, among other
things, prepare a Recognized Obligation Payment Schedule for payments
on enforceable obligations for each 6-month fiscal period.
This bill would revise the timeline for the preparation of the
required Recognized Obligation Payment Schedule to require the
successor agency to prepare a schedule for a one year fiscal period,
with the first of these periods beginning July 1, 2016, and would
authorize the Recognized Obligation Payment Schedule to be amended by
the oversight board once per Recognized Obligation Payment Schedule
period, if the oversight board makes a finding that a revision is
necessary for the payment of approved enforceable obligations, as
specified.
This bill would, beginning January 1, 2015, authorize successor
agencies to submit a Last and Final Recognized Obligation Payment
Schedule, which shall list the remaining enforceable obligations of
the successor agency and the total outstanding obligation and a
schedule of remaining payments for each enforceable obligation, for
approval by the oversight board and the Department of Finance if
specified conditions are met. This bill would require the department
to review the Last and Final Recognized Obligation Payment Schedule,
as specified, and would require, upon approval by the department, the
Last and Final Recognized Obligation Payment Schedule to establish
the maximum amount of Redevelopment Property Tax Trust Funds to be
distributed to the successor agency, as specified. This bill would
authorize the successor agencies to submit no more than 2 requests to
the department to amend the approved Last and Final Recognized
Obligation Payment Schedule, except as specified. This bill would
also require the county auditor-controller to review the Last and
Final Recognized Obligation Payment Schedule and to continue to
allocate moneys in the Redevelopment Property Tax Trust Fund in a
specified order of priority.
(9) Existing law prohibits successor agencies from creating new
enforceable obligations, except in compliance with an enforceable
obligation that existed prior to June 28, 2011. Notwithstanding this
provision, existing law authorizes successor agencies to create
enforceable obligations to conduct the work of winding down the
redevelopment agency, including hiring staff, acquiring necessary
professional administrative services and legal counsel, and procuring
insurance. Existing law finds and declares that these provisions,
when enacted, were declaratory of existing law.
This bill, except as required by an enforceable obligation, would
exclude certain work from the authorization to create enforceable
obligations, and would prohibit a successor agency that is the city,
county, or city and county that formed the redevelopment agency from
creating enforceable obligations to repay loans entered into between
the redevelopment agency and the city, county, or city and county,
except as otherwise provided. This bill would delete those findings
and declarations, and would apply the provisions described above
retroactively to any successor agency or redevelopment agency actions
occurring after June 27, 2012.
(10) Existing law authorizes a successor agency to petition the
Department of Finance, if an enforceable obligation provides for an
irrevocable commitment of property tax revenue and the allocation of
those revenues is expected to occur over time, to provide written
confirmation that its determination of this enforceable obligation as
approved in a Recognized Obligation Payment Schedule is final and
conclusive.
This bill would require the successor agency to petition the
department by electronic means and in a manner of the department's
choosing, and would require the successor agency to provide a copy of
the petition to the county auditor-controller, as provided. This
bill would require the department to provide written confirmation of
approval or denial of the request within 100 days of the date of the
request.
(11) Existing law provides that agreements, contracts, or
arrangements between the city or county, or city and county that
created the redevelopment agency and the redevelopment agency are
invalid and shall not be binding on the successor agency, except that
a successor entity wishing to enter or reenter into agreements with
the city, county, or city and county that formed the redevelopment
agency may do so upon obtaining approval of its oversight board.
Existing law prohibits a successor agency or an oversight board from
exercising these powers to restore funding for an enforceable
obligation that was deleted or reduced by the Department of Finance,
as provided.
This bill would delete that prohibition, and would provide that a
duly authorized written agreement entered into at the time of
issuance, but in no event later than June 27, 2011, of indebtedness
obligations solely for the refunding or refinancing of indebtedness
obligations that existed prior to January 1, 2011, and solely for the
purpose of securing or repaying the refunded and refinanced
indebtedness obligations, is valid and may bind the successor agency.
This bill would prohibit an oversight board from approving any
agreements between the successor agency and the city, county, or city
and county that formed the redevelopment agency, except as otherwise
provided, and would prohibit a successor agency from entering or
reentering into any agreements with the city, county, or city and
county that formed the redevelopment agency, except as otherwise
provided. This bill would also prohibit a successor agency or an
oversight board from exercising any powers to restore funding for any
item that was denied or reduced by the Department of Finance. This
bill would apply these provisions retroactively to all agreements
entered or reentered on and after June 27, 2012.
(12) Existing law authorizes the Department of Finance to review
an oversight board action and requires written notice and information
about all actions taken by an oversight board to be provided to the
department by electronic means and in a manner of the department's
choosing.
This bill would require the written notice and information
described above to be provided to the department as an approved
resolution. This bill would provide that oversight boards are not
required to submit certain actions for department approval.
(13) Existing law requires, on and after July 1, 2016, in each
county where more than one oversight board was created, as provided,
that there be only one oversight board.
This bill, except as otherwise provided, commencing on and after
July 1, 2018, if more than one oversight board exists within a
county, would require the oversight board to be staffed by the county
auditor-controller, by another county entity selected by the county
auditor-controller, or by a city within the county selected by the
county auditor-controller, as specified. This bill would authorize
the county auditor-controller, if only one successor agency exists
within the county, to designate the successor agency to staff the
oversight board. This bill, commencing July 1, 2018, in each county
where more than 40 oversight boards were created, would require 5
oversight boards, as specified.
(14) Existing law requires an oversight board for a successor
agency to cease to exist when all of the indebtedness of the
dissolved redevelopment agency has been repaid.
This bill would instead generally require an oversight board to
cease to exist when the successor agency has been formally dissolved,
as specified, and would require a county oversight board to cease to
exist when all successor agencies subject to its oversight have been
formally dissolved, as specified.
(15) Existing law, upon full payment by a successor agency of
specified amounts due, requires the Department of Finance to issue a
finding of completion, as specified, within 5 days.
This bill, if a successor agency fails by December 31, 2015, to
pay, or to enter into a written installment plan with the Department
of Finance for payment of specified amounts, would prohibit the
successor agency from ever receiving a finding of completion. This
bill, if a successor agency, city, county, or city and county pays,
or enters into a written installment plan with the Department of
Finance for the payment of specified amounts and the successor
agency, city, county, or city and county subsequently receives a
final judicial determination that reduces or eliminates the amounts
determined, would require an enforceable obligation to be created for
the reimbursement of the excess amounts paid and the obligation to
make any payments in excess of the amount determined by a final
determination to be canceled. This bill, if upon consultation with
the county auditor-controller, the Department of Finance finds that a
successor agency, city, county, or city and county has failed to
fully make one or more payments agreed to in the written installment
plan, would prohibit specified provisions from applying to the
successor agency and would prohibit specified oversight board actions
and any approved long-range property management plan from being
effective.
(16) Existing law transfers all assets, properties, contracts,
leases, books and records, buildings, and equipment of former
redevelopment agencies, as of February 1, 2012, to the control of the
successor agency for administration, as specified.
This bill would require the city, county, or city and county that
created the former redevelopment agency to return to the successor
agency certain assets, cash, and cash equivalents that were not
required by an enforceable obligation, as specified, and other money
or assets that were not required or authorized pursuant to an
effective oversight board action or Recognized Obligation Payment
Schedule. This bill would authorize certain amounts required to be
returned to the successor agency to be placed on a Recognized
Obligation Payment Schedule by the successor agency for payment as an
enforceable obligation subject to specified conditions.
(17) Existing law requires a request by a successor agency to
enter into an agreement with the city, county, or city and county
that formed the redevelopment agency to first be approved by the
oversight board. Existing law provides that actions to reestablish
any other agreements that are in furtherance of enforceable
obligations with the city, county, or city and county that formed the
redevelopment agency are invalid until they are included in an
approved and valid Recognized Obligation Payment Schedule.
This bill would also require a request by the successor agency to
reenter into an agreement as described above to first be approved by
the oversight board. This bill would also provide that actions to
establish any other authorized agreements, as specified, are invalid
until they are included in an approved and valid Recognized
Obligation Payment Schedule.
(18) Existing law requires the oversight board to direct the
successor agency to, among other things, dispose of all assets and
properties of the former redevelopment agency, except that the
oversight board is authorized to instead direct the successor agency
to transfer ownership of those assets that were constructed and used
for a governmental purpose, such as roads, school buildings, parks,
police and fire stations, libraries, and local agency administrative
buildings, to the appropriate public jurisdiction, as provided.
This bill would expand that authorization to include parking
facilities and lots dedicated solely to public parking that do not
include properties that generate revenues in excess of reasonable
maintenance costs of the properties. This bill would authorize a
successor agency to amend its long-range property management plan
once, solely to allow for retention of real properties that
constitute public parking lots, as provided. This bill would provide
that a city, county, city and county, or parking district shall not
be required to reimburse or pay a successor agency for any funds
spent by a former redevelopment agency, as specified, to design and
construct a parking facility.
(19) Existing law requires, from February 1, 2012, to July 1,
2012, inclusive, and for each fiscal year thereafter, the county
auditor-controller, after deducting administrative costs, to allocate
property tax revenues in each Redevelopment Property Tax Trust Fund
first to each local agency and school entity, as provided.
This bill would require certain revenues attributable to a
property tax rate approved by the voters of a city, county, city and
county, or special district to make payments in support of pension
programs or in support of capital projects and programs related to
the State Water Project and levied in addition to the general
property tax rate, be allocated to, and when collected be paid into,
the fund of that taxing entity, unless those amounts are pledged as
security for the payment of any indebtedness obligation.
(20) Existing law requires certain estimates and accounts reported
in a Recognized Obligation Payment Schedule and transferred to the
Redevelopment Obligation Retirement Fund to be subject to audit by
the county auditor-controller and the Controller.
This bill would instead require the estimates and accounts
described above to be reviewed by the county auditor-controller
subject to the Department of Finance's review and approval. This bill
would require a successor agency, commencing October 1, 2018, and
each October 1 thereafter, to submit the differences between actual
payments and past estimated obligations on a Recognized Obligation
Payment Schedule to the county auditor-controller for review, and
would require the county-auditor controller to provide this
information to the Department of Finance, as specified.
(21) Existing law requires a successor agency, when all of the
debt of a redevelopment agency has been retired or paid off, to
dispose of all remaining assets and terminate its existence within
one year of the final debt payment.
This bill would instead require, when all of the enforceable
obligations have been retired or paid off, all real property has been
disposed of, and all outstanding litigation has been resolved, the
successor agency to submit to the oversight board a request, with a
copy of the request to the county auditor-controller, to formally
dissolve the successor agency. This bill would also require, if a
redevelopment agency was not previously allocated property tax
revenue, as specified, the successor agency to submit to the
oversight board a request to formally dissolve the successor agency.
This bill would require the oversight board to approve these requests
within 30 days and to submit the request to the Department of
Finance for approval or denial, as specified. This bill would require
the successor agency to take specified steps, including notifying
the oversight board, when the department approves a request to
formally dissolve a successor agency. This bill would require the
oversight board, upon receipt of notification from the successor
agency, to make certain verifications and adopt a final resolution of
dissolution for the successor agency, as specified. This bill would,
when a successor agency is finally dissolved, with respect to any
existing community facilities district formed by a redevelopment
agency, require the legislative body of the city or county that
formed the redevelopment agency to become the legislative body of the
community facilities district, and any existing obligations of the
former redevelopment agency or its successor agency to become the
obligations of the new legislative body of the community facilities
district.
(22) Existing law, with respect to any successor agency that has
been issued a finding of completion by the Department of Finance,
deems loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency to be an enforceable obligation, as provided.
Existing law specifies the manner in which the interest on the loan
should be calculated and how the loan should be repaid. Existing law
requires repayments received by the city, county, or city and county
that formed the redevelopment agency to be used to retire certain
outstanding amounts borrowed and owed, including a distribution to
the Low and Moderate Income Housing Asset Fund, as provided. Existing
law requires bond proceeds derived from bonds issued on or before
December 31, 2010, to be used for the purposes for which the bonds
were sold.
This bill would define "loan agreement" for the purposes described
above, would specify the types of documents demonstrating valid loan
agreements, and would prohibit the Department of Finance from
requesting more than one of these documents to prove a valid loan
agreement. This bill would change the manner in which the interest on
the loan is calculated, and would require moneys repaid to be
applied first to the principal and second to the interest. This bill
would require distributions to the Low and Moderate Income Housing
Asset Fund to be subject to specified reporting requirements. This
bill would require bond proceeds derived from bonds issued on or
before December 31, 2010, in excess of the amounts needed to satisfy
approved enforceable obligations, to be expended in a manner
consistent with the original bond covenants. This bill would require
bond proceeds derived from bonds issued on or after January 1, 2011,
in excess of amounts needed to satisfy approved enforceable
obligations, to be used in a manner consistent with the original bond
covenants subject to specified conditions. This bill would apply
these provisions, and the provisions relating to any successor agency
that has been issued a finding of completion by the Department of
Finance described above, retroactively to actions occurring on or
after June 28, 2011. This bill would also provide that specified
changes to existing law shall not result in the denial of specified
loans previously approved by the Department of Finance and shall not
impact judgments, writs of mandate, and orders entered by the
Sacramento Superior Court in specified lawsuits.
(23) Existing law requires a successor agency to prepare a
long-range property management plan that addresses the disposition
and use of the real properties of the former redevelopment agency.
This bill would require, if the former redevelopment agency did
not have real properties, the successor agency to prepare a
long-range property management plan, as provided.
(24) Existing law authorizes successor agencies to, among other
things, issue bonds or incur indebtedness to refund the bonds or
indebtedness of a former redevelopment agency or to finance debt
service spikes, as specified. The issuance of bonds or incurrence of
other indebtedness by a successor agency is subject to the approval
of the oversight board of the successor agency.
This bill would authorize the successor agency to the
Redevelopment Agency of the City and County of San Francisco to have
the authority, rights, and powers of the Redevelopment Agency to
which it succeeded solely for the purpose of issuing bonds or
incurring other indebtedness to finance the construction of
affordable housing and infrastructure required by specified
agreements, subject to the approval of the oversight board. The bill
would provide that bonds or other indebtedness authorized by its
provisions would be considered indebtedness incurred by the dissolved
redevelopment agency, would be listed on the Recognized Obligation
Payment Schedule, and would be secured by a pledge of moneys
deposited into the Redevelopment Property Tax Trust Fund. The bill
would also require the
successor agency to make diligent efforts to obtain the lowest
long-term cost financing and to make use of an independent financial
advisor in developing financing proposals.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the City and County of San
Francisco.
(25) Existing law requires the county auditor for a county for
which a negative sum was calculated pursuant to a specified former
statute, in reducing the amount of property tax revenue otherwise
allocated to the county by an amount attributable to that negative
sum, to apply a reduction amount equal to or based on the reduction
amount determined for specified fiscal years.
This bill, for the 2015-16 fiscal year and each fiscal year
thereafter, would prohibit the county auditor from applying the
reduction amount.
(26) Existing property tax law requires the county auditor, in
each fiscal year, to allocate property tax revenue to local
jurisdictions in accordance with specified formulas and procedures,
and generally requires that each jurisdiction be allocated an amount
equal to the total of the amount of revenue allocated to that
jurisdiction in the prior fiscal year, subject to certain
modifications, and that jurisdiction's portion of the annual tax
increment, as defined. Existing law provides for the computation, on
the basis of these allocations, of apportionment factors that are
applied to actual property tax revenues in each county in order to
determine actual amounts of property tax revenue received by each
recipient jurisdiction.
This bill would deem to be correct those property tax revenue
apportionment factors that were applied in allocating property tax
revenues in the County of San Benito for each fiscal year through the
2000-01 fiscal year. This bill would, notwithstanding specified
audit requirements, require the county auditor to make the allocation
adjustments identified in the Controller's audit of the County of
San Benito for the 2001-02 fiscal year. The bill would additionally
require property tax apportionment factors applied in allocating
property tax revenue in the County of San Benito for the 2002-03
fiscal year and each fiscal year thereafter to be determined on the
basis of apportionment factors for prior fiscal years that have been
corrected or adjusted as would be required if those prior
apportionment factors were not deemed correct by this bill.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the County of San Benito.
(27) Existing property tax law reduces the amounts of ad valorem
property tax revenue that would otherwise be annually allocated to
the county, cities, and special districts pursuant to general
allocation requirements by requiring, for purposes of determining
property tax revenue allocations in each county for the 1992-93 and
1993-94 fiscal years, that the amounts of property tax revenue deemed
allocated in the prior fiscal year to the county, cities, and
special districts be reduced in accordance with certain formulas. It
requires that the revenues not allocated to the county, cities, and
special districts as a result of these reductions be transferred to
the Educational Revenue Augmentation Fund (ERAF) in that county for
allocation to school districts, community college districts, and the
county office of education.
Existing property tax law requires the auditor of each county with
qualifying cities, as defined, to make certain property tax revenue
allocations to those cities in accordance with a specified Tax Equity
Allocation (TEA) formula established in a specified statute and to
make corresponding reductions in the amount of property tax revenue
that is allocated to the county. Existing law requires the auditor of
Santa Clara County, for the 2006-07 fiscal year and for each fiscal
year thereafter, to reduce the amount of property tax revenue
allocated to qualified cities in that county by the ERAF
reimbursement amount, as defined, and to commensurately increase the
amount of property tax revenue allocated to the county ERAF, as
specified.
This bill would, instead, for the 2015-16 fiscal year and for each
fiscal year thereafter, require the auditor of Santa Clara County to
reduce the amount of property tax revenues that are required to be
allocated from the qualified cities in that county to the county ERAF
by a specified percentage of the ERAF reimbursement amount. This
bill would prohibit the auditor of Santa Clara County from reducing
the amounts allocated to the county ERAF in any fiscal year in which
the amount of moneys required to be applied by the state for the
support of school districts and community college districts is
determined pursuant to Test 1 of Proposition 98.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the County of Santa Clara.
(28) This bill would appropriate $23,750,000 from the General Fund
to the Department of Forestry and Fire Protection contingent upon
the County of Riverside agreeing to forgive amounts owed to it by
certain cities.
(29) By imposing new duties upon local government officials with
respect to the winddown of the dissolved redevelopment agencies, and
in the annual allocation of ad valorem property tax revenues, this
bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(30) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34170.1 is added to the Health and Safety Code,
to read:
34170.1. Any action by the department carrying out the department'
s obligations under this part and Part 1.8 (commencing with Section
34161) constitutes a department action for the preparation,
development, or administration of the state budget pursuant to
Section 11357 of the Government Code, and is exempt from Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. This section applies retroactively to any
action by the department described in this section that occurred on
or after June 28, 2011.
SEC. 2. Section 34171 of the Health and Safety Code is amended to
read:
34171. The following terms shall have the following meanings:
(a) "Administrative budget" means the budget for administrative
costs of the successor agencies as provided in Section 34177.
(b) (1) "Administrative cost allowance" means the maximum amount
of administrative costs that may be paid by a successor agency from
the Redevelopment Property Tax Trust Fund in a fiscal year.
(2) The administrative cost allowance shall be 5 percent of the
property tax allocated to the successor agency on the Recognized
Obligation Payment Schedule covering the period January 1, 2012,
through June 30, 2012. The administrative cost allowance shall be up
to 3 percent of the property tax allocated to the Redevelopment
Obligation Retirement Fund for each fiscal year thereafter ending on
June 30, 2016. However, the administrative cost allowance shall not
be less than two hundred fifty thousand dollars ($250,000) in any
fiscal year, unless this amount is reduced by the oversight board or
by agreement with the successor agency.
(3) Commencing July 1, 2016, and for each fiscal year thereafter,
the administrative cost allowance shall be up to 3 percent of the
actual property tax distributed to the successor agency by the county
auditor-controller in the preceding fiscal year for payment of
approved enforceable obligations, reduced by the successor agency's
administrative cost allowance and loan repayments made to the city,
county, or city and county that created the redevelopment agency that
it succeeded pursuant to subdivision (b) of Section 34191.4 during
the preceding fiscal year. However, the administrative cost allowance
shall not be less than two hundred fifty thousand dollars ($250,000)
in any fiscal year, unless this amount is reduced by the oversight
board or by agreement between the successor agency and the
department.
(4) Notwithstanding paragraph (3), commencing July 1, 2016, a
successor agency's annual administrative costs shall not exceed 50
percent of the total Redevelopment Property Tax Trust Fund
distributed to pay enforceable obligations in the preceding fiscal
year, which latter amount shall be reduced by the successor agency's
administrative cost allowance and loan repayments made to the city,
county, or city and county that created the redevelopment agency that
it succeeded pursuant to subdivision (b) of Section 34191.4 during
the preceding fiscal year. This limitation applies to administrative
costs whether paid within the administrative cost allowance or not,
but does not apply to administrative costs paid from bond proceeds or
grant funds, or, in the case of a successor agency that is a
designated local authority, from sources other than property tax.
(5) The administrative cost allowance shall be approved by the
oversight board and shall be the sole funding source for any legal
expenses related to civil actions brought by the successor agency or
the city, county, or city and county that created the former
redevelopment agency, including writ proceedings, contesting the
validity of this part or Part 1.8 (commencing with Section 34161) or
challenging acts taken pursuant to these parts. Employee costs
associated with work on specific project implementation activities,
including, but not limited to, construction inspection, project
management, or actual construction, shall be considered
project-specific costs and shall not constitute administrative costs.
(c) "Designated local authority" shall mean a public entity formed
pursuant to subdivision (d) of Section 34173.
(d) (1) "Enforceable obligation" means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant
to Chapter 10.5 (commencing with Section 5850) of Division 6 of Title
1 of the Government Code, including the required debt service,
reserve set-asides, and any other payments required under the
indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency. A reserve may
be held when required by the bond indenture or when the next property
tax allocation will be insufficient to pay all obligations due under
the provisions of the bond for the next payment due in the following
half of the calendar year.
(B) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan
terms.
(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations conferred
through a collective bargaining agreement. Costs incurred to fulfill
collective bargaining agreements for layoffs or terminations of city
employees who performed work directly on behalf of the former
redevelopment agency shall be considered enforceable obligations
payable from property tax funds. The obligations to employees
specified in this subparagraph shall remain enforceable obligations
payable from property tax funds for any employee to whom those
obligations apply if that employee is transferred to the entity
assuming the housing functions of the former redevelopment agency
pursuant to Section 34176. The successor agency or designated local
authority shall enter into an agreement with the housing entity to
reimburse it for any costs of the employee obligations.
(D) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(E) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
However, nothing in this act shall prohibit either the successor
agency, with the approval or at the direction of the oversight board,
or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required
compensation or remediation for such termination. Titles of or
headings used on or in a document shall not be relevant in
determining the existence of an enforceable obligation.
(F) (i) Contracts or agreements necessary for the administration
or operation of the successor agency, in accordance with this part,
including, but not limited to, agreements concerning litigation
expenses related to assets or obligations, settlements and judgments,
and the costs of maintaining assets prior to disposition, and
agreements to purchase or rent office space, equipment and supplies,
and pay-related expenses pursuant to Section 33127 and for carrying
insurance pursuant to Section 33134. Beginning January 1, 2016, any
legal expenses related to civil actions, including writ proceedings,
contesting the validity of this part or Part 1.8 (commencing with
Section 34161) or challenging acts taken pursuant to these parts
shall only be payable out of the administrative cost allowance.
(ii) A sponsoring entity may provide funds to a successor agency
for payment of legal expenses related to civil actions initiated by
the successor agency, including writ proceedings, contesting the
validity of this part or Part 1.8 (commencing with Section 34161) or
challenging acts taken pursuant to these parts. If the successor
agency obtains a final judicial determination granting the relief
requested in the action, the funds provided by the sponsoring entity
for legal expenses related to successful causes of action pled by the
successor agency shall be deemed an enforceable obligation for
repayment under the terms set forth in subdivision (h) of Section
34173. If the successor agency does not receive a final judicial
determination granting the relief requested, the funds provided by
the sponsoring entity shall be considered a grant by the sponsoring
entity and shall not qualify for repayment as an enforceable
obligation.
(G) Amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency, which had
been deferred as of the effective date of the act adding this part;
provided, however, that the repayment schedule is approved by the
oversight board. Repayments shall be transferred to the Low and
Moderate Income Housing Asset Fund established pursuant to
subdivision (d) of Section 34176 as a housing asset and shall be used
in a manner consistent with the affordable housing requirements of
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(2) For purposes of this part, "enforceable obligation" does not
include any agreements, contracts, or arrangements between the city,
county, or city and county that created the redevelopment agency and
the former redevelopment agency. However, written agreements entered
into (A) at the time of issuance, but in no event later than December
31, 2010, of indebtedness obligations, and (B) solely for the
purpose of securing or repaying those indebtedness obligations may be
deemed enforceable obligations for purposes of this part.
Additionally, written agreements entered into (A) at the time of
issuance, but in no event later than June 27, 2011, of indebtedness
obligations solely for the refunding or refinancing of other
indebtedness obligations that existed prior to January 1, 2011, and
(B) solely for the purpose of securing or repaying the refunded or
refinanced indebtedness obligations may be deemed enforceable
obligations for purposes of this part. Notwithstanding this
paragraph, loan agreements entered into between the redevelopment
agency and the city, county, or city and county that created it,
within two years of the date of creation of the redevelopment agency,
may be deemed to be enforceable obligations. Notwithstanding this
paragraph, an agreement entered into by the redevelopment agency
prior to June 28, 2011, is an enforceable obligation if the agreement
relates to state highway infrastructure improvements to which the
redevelopment agency committed funds pursuant to Section 33445.
Notwithstanding this paragraph, an agreement between the city,
county, or city and county that created the former redevelopment
agency and the former redevelopment agency is an enforceable
obligation if that agreement requires the former redevelopment agency
to repay or fulfill an outstanding loan or development obligation
imposed by a grant or loan awarded or issued by a federal agency,
including the United States Department of Housing and Urban
Development, to the city, county, or city and county which
subsequently loaned or provided those funds to the former
redevelopment agency.
(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit to
the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed void on
the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall not be
deemed void.
(e) "Indebtedness obligations" means bonds, notes, certificates of
participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to third-party
investors or bondholders to finance or refinance redevelopment
projects undertaken by the redevelopment agency in compliance with
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(f) "Oversight board" shall mean each entity established pursuant
to Section 34179.
(g) "Recognized obligation" means an obligation listed in the
Recognized Obligation Payment Schedule.
(h) "Recognized Obligation Payment Schedule" means the document
setting forth the minimum payment amounts and due dates of payments
required by enforceable obligations for each six-month fiscal period
until June 30, 2016, as provided in subdivision (m) of Section 34177.
On and after July 1, 2016, "Recognized Obligation Payment Schedule"
means the document setting forth the minimum payment amounts and due
dates of payments required by enforceable obligations for each fiscal
year as provided in subdivision (o) of Section 34177.
(i) "School entity" means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(j) "Successor agency" means the successor entity to the former
redevelopment agency as described in Section 34173.
(k) "Taxing entities" means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant to
the provisions of this part.
( l ) "Property taxes" include all property tax
revenues, including those from unitary and supplemental and roll
corrections applicable to tax increment.
(m) "Department" means the Department of Finance unless the
context clearly refers to another state agency.
(n) "Sponsoring entity" means the city, county, or city and
county, or other entity that authorized the creation of each
redevelopment agency.
(o) "Final judicial determination" means a final judicial
determination made by any state court that is not appealed, or by a
court of appellate jurisdiction that is not further appealed, in an
action by any party.
(p) From July 1, 2014, to July 1, 2018, inclusive, "housing entity
administrative cost allowance" means an amount of up to 1 percent of
the property tax allocated to the Redevelopment Obligation
Retirement Fund on behalf of the successor agency for each applicable
fiscal year, but not less than one hundred fifty thousand dollars
($150,000) per fiscal year.
(1) If a local housing authority assumed the housing functions of
the former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176, then the housing entity
administrative cost allowance shall be listed by the successor agency
on the Recognized Obligation Payment Schedule. Upon approval of the
Recognized Obligation Payment Schedule by the oversight board and the
department, the housing entity administrative cost allowance shall
be remitted by the successor agency on each January 2 and July 1 to
the local housing authority that assumed the housing functions of the
former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176.
(2) If there are insufficient moneys in the Redevelopment
Obligations Retirement Fund in a given fiscal year to make the
payment authorized by this subdivision, the unfunded amount may be
listed on each subsequent Recognized Obligation Payment Schedule
until it has been paid in full. In these cases the five-year time
limit on the payments shall not apply.
SEC. 3. Section 34173 of the Health and Safety Code is amended to
read:
34173. (a) Successor agencies, as defined in this part, are
hereby designated as successor entities to the former redevelopment
agencies.
(b) Except for those provisions of the Community Redevelopment Law
that are repealed, restricted, or revised pursuant to the act adding
this part, all authority, rights, powers, duties, and obligations
previously vested with the former redevelopment agencies, under the
Community Redevelopment Law, are hereby vested in the successor
agencies.
(c) (1) If the redevelopment agency was in the form of a joint
powers authority, and if the joint powers agreement governing the
formation of the joint powers authority addresses the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part and each shall have a share of assets and liabilities based
on the provisions of the joint powers agreement.
(2) If the redevelopment agency was in the form of a joint powers
authority, and if the joint powers agreement governing the formation
of the joint powers authority does not address the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part, a proportionate share of the assets and liabilities shall
be based on the assessed value in the project areas within each
entity's jurisdiction, as determined by the county assessor, in its
jurisdiction as compared to the assessed value of land within the
boundaries of the project areas of the former redevelopment agency.
(d) (1) A city, county, city and county, or the entities forming
the joint powers authority that authorized the creation of each
redevelopment agency may elect not to serve as a successor agency
under this part. A city, county, city and county, or any member of a
joint powers authority that elects not to serve as a successor agency
under this part must file a copy of a duly authorized resolution of
its governing board to that effect with the county auditor-controller
no later than January 13, 2012.
(2) The determination of the first local agency that elects to
become the successor agency shall be made by the county
auditor-controller based on the earliest receipt by the county
auditor-controller of a copy of a duly adopted resolution of the
local agency's governing board authorizing such an election. As used
in this section, "local agency" means any city, county, city and
county, or special district in the county of the former redevelopment
agency.
(3) (A) If no local agency elects to serve as a successor agency
for a dissolved redevelopment agency, a public body, referred to
herein as a "designated local authority" shall be immediately formed,
pursuant to this part, in the county and shall be vested with all
the powers and duties of a successor agency as described in this
part. The Governor shall appoint three residents of the county to
serve as the governing board of the authority. The designated local
authority shall serve as successor agency until a local agency elects
to become the successor agency in accordance with this section.
(B) Designated local authority members are protected by the
immunities applicable to public entities and public employees
governed by Part 1 (commencing with Section 810) and Part 2
(commencing with Section 814) of Division 3.6 of Title 1 of the
Government Code.
(4) A city, county, or city and county, or the entities forming
the joint powers authority that authorized the creation of a
redevelopment agency and that elected not to serve as the successor
agency under this part, may subsequently reverse this decision and
agree to serve as the successor agency pursuant to this section. Any
reversal of this decision shall not become effective for 60 days
after notice has been given to the current successor agency and the
oversight board and shall not invalidate any action of the successor
agency or oversight board taken prior to the effective date of the
transfer of responsibility.
(e) The liability of any successor agency, acting pursuant to the
powers granted under the act adding this part, shall be limited to
the extent of the total sum of property tax revenues it receives
pursuant to this part and the value of assets transferred to it as a
successor agency for a dissolved redevelopment agency.
(f) Any existing cleanup plans and liability limits authorized
under the Polanco Redevelopment Act (Article 12.5 (commencing with
Section 33459) of Chapter 4 of Part 1) shall be transferred to the
successor agency and may be transferred to the successor housing
entity at that entity's request.
(g) A successor agency is a separate public entity from the public
agency that provides for its governance and the two entities shall
not merge. The liabilities of the former redevelopment agency shall
not be transferred to the sponsoring entity and the assets shall not
become assets of the sponsoring entity. A successor agency has its
own name, can be sued, and can sue. All litigation involving a
redevelopment agency shall automatically be transferred to the
successor agency. The separate former redevelopment agency employees
shall not automatically become sponsoring entity employees of the
sponsoring entity and the successor agency shall retain its own
collective bargaining status. As successor entities, successor
agencies succeed to the organizational status of the former
redevelopment agency, but without any legal authority to participate
in redevelopment activities, except to complete any work related to
an approved enforceable obligation. Each successor agency shall be
deemed to be a local entity for purposes of the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of
Title 5 of the Government Code).
(h) (1) The city, county, or city and county that authorized the
creation of a redevelopment agency may loan or grant funds to a
successor agency for the payment of administrative costs or
enforceable obligations excluding loans approved under this
subdivision or pursuant to Section 34191.4, or project-related
expenses that qualify as an enforceable obligation, and only to the
extent that the successor agency receives an insufficient
distribution from the Redevelopment Property Tax Trust Fund, or other
approved sources of funding are insufficient, to pay approved
enforceable obligations in the recognized obligation payment schedule
period. The receipt and use of these funds shall be reflected on the
Recognized Obligation Payment Schedule or the administrative budget
and therefore are subject to the oversight and approval of the
oversight board. An enforceable obligation shall be deemed to be
created for the repayment of those loans. A loan made under this
subdivision shall be repaid from the source of funds originally
approved for payment of the underlying enforceable obligation in the
Recognized Obligation Payment Schedule once sufficient funds become
available from that source. The interest payable on any loan created
pursuant to this subdivision shall be calculated on a fixed annual
simple basis and applied to the outstanding principal amount until
fully paid, at a rate not to exceed the most recently published
interest rate earned by funds deposited into the Local Agency
Investment Fund during the previous fiscal quarter. Repayment of
loans created under this subdivision shall be applied first to
principal, and second to interest, and shall be subordinate to other
approved enforceable obligations. Loans created under this
subdivision shall be repaid to the extent property tax revenue
allocated to the successor agency is available after fulfilling other
enforceable obligations approved in the Recognized Obligation
Payment Schedule.
(2) This subdivision shall not apply where the successor agency's
distribution from the Redevelopment Property Tax Trust Fund has been
reduced pursuant to Section 34179.6 or 34186.
(i) At the request of the city, county, or city and county,
notwithstanding Section 33205, all land use related plans and
functions of the former redevelopment agency are hereby transferred
to the city, county, or city and county that authorized the creation
of a redevelopment agency; provided, however, that the city, county,
or city and county shall not create a new project area, add territory
to, or expand or change the boundaries of a project area, or take
any action that would increase the amount of obligated property tax
(formerly tax increment) necessary to fulfill any existing
enforceable obligation beyond what was authorized as of June 27,
2011.
SEC. 4. Section 34176 of the Health and Safety Code is amended to
read:
34176. (a) (1) The city, county, or city and county that
authorized the creation of a redevelopment agency may elect to retain
the housing assets and functions previously performed by the
redevelopment agency. If a city, county, or city and county elects to
retain the authority to perform housing functions previously
performed by a redevelopment agency, all rights, powers, duties,
obligations, and housing assets, as defined in subdivision (e),
excluding any amounts on deposit in the Low and Moderate Income
Housing Fund and enforceable obligations retained by the successor
agency, shall be transferred to the city, county, or city and county.
(2) The housing successor shall submit to the Department of
Finance by August 1, 2012, a list of all housing assets that contains
an explanation of how the assets meet the criteria specified in
subdivision (e). The Department of Finance shall prescribe the format
for the submission of the list. The list shall include assets
transferred between February 1, 2012, and the date upon which the
list is created. The department shall have up to 30 days from the
date of receipt of the list to object to any of the assets or
transfers of assets identified on the list. If the Department of
Finance objects to assets on the list, the housing successor may
request a meet and confer process within five business days of
receiving the department objection. If the transferred asset is
deemed not to be a housing asset as defined in subdivision (e), it
shall be returned to the successor agency. If a housing asset has
been previously pledged to pay for bonded indebtedness, the successor
agency shall maintain control of the asset in order to pay for the
bond debt.
(3) For purposes of this section and Section 34176.1,
"housing successor" means the entity assuming the housing function of
a former redevelopment agency pursuant to this section.
(b) If a city, county, or city and county does not elect to retain
the responsibility for performing housing functions previously
performed by a redevelopment agency, all rights, powers, assets,
duties, and obligations associated with the housing activities of the
agency, excluding enforceable obligations retained by the successor
agency and any amounts in the Low and Moderate Income Housing Fund,
shall be transferred as follows:
(1) If there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency, to the Department of
Housing and Community Development.
(2) If there is one local housing authority in the territorial
jurisdiction of the former redevelopment agency, to that local
housing authority.
(3) If there is more than one local housing authority in the
territorial jurisdiction of the former redevelopment agency, to the
local housing authority selected by the city, county, or city and
county that authorized the creation of the redevelopment agency.
(c) Commencing on the operative date of this part, the housing
successor may enforce affordability covenants and perform related
activities pursuant to applicable provisions of the Community
Redevelopment Law (Part 1 (commencing with Section 33000)),
including, but not limited to, Section 33418.
(d) Except as specifically provided in Section 34191.4, any funds
transferred to the housing successor, together with any funds
generated from housing assets, as defined in subdivision (e), shall
be maintained in a separate Low and Moderate Income Housing Asset
Fund which is hereby created in the accounts of the housing
successor.
(e) For purposes of this part, "housing asset" includes all of the
following:
(1) Any real property, interest in, or restriction on the use of
real property, whether improved or not, and any personal property
provided in residences, including furniture and appliances, all
housing-related files and loan documents, office supplies, software
licenses, and mapping programs, that were acquired for low- and
moderate-income housing purposes, either by purchase or through a
loan, in whole or in part, with any source of funds.
(2) Any funds that are encumbered by an enforceable obligation to
build or acquire low- and moderate-income housing, as defined by the
Community Redevelopment Law (Part 1 (commencing with Section 33000))
unless required in the bond covenants to be used for repayment
purposes of the bond.
(3) Any loan or grant receivable, funded from the Low and Moderate
Income Housing Fund, from homebuyers, homeowners, nonprofit or
for-profit developers, and other parties that require occupancy by
persons of low or moderate income as defined by the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).
(4) Any funds derived from rents or operation of properties
acquired for low- and moderate-income housing purposes by other
parties that were financed with any source of funds, including
residual receipt payments from developers, conditional grant
repayments, cost savings and proceeds from refinancing, and principal
and interest payments from homebuyers subject to enforceable income
limits.
(5) A stream of rents or other payments from housing tenants or
operators of low- and moderate-income housing financed with any
source of funds that are used to maintain, operate, and enforce the
affordability of housing or for enforceable obligations associated
with low- and moderate-income housing.
(6) (A) Repayments of loans or deferrals owed to the Low and
Moderate Income Housing Fund pursuant to subparagraph (G) of
paragraph (1) of subdivision (d) of Section 34171, which shall be
used consistent with the affordable housing requirements in the
Community Redevelopment Law (Part 1 (commencing with Section 33000)).
(B) Loan or deferral repayments shall not be made prior to the
2013-14 fiscal year. Beginning in the 2013-14 fiscal year, the
maximum repayment amount authorized each fiscal year for repayments
made pursuant to this paragraph and subdivision (b) of Section
34191.4 combined shall be equal to one-half of the increase between
the amount distributed to taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year. Loan or deferral repayments made pursuant to
this paragraph shall take priority over amounts to be repaid pursuant
to subdivision (b) of Section 34191.4.
(f) If a development includes both low- and moderate-income
housing that meets the definition of a housing asset under
subdivision (e) and other types of property use, including, but not
limited to, commercial use, governmental use, open space, and parks,
the oversight board shall consider the overall value to the community
as well as the benefit to taxing entities of keeping the entire
development intact or dividing the title and control over the
property between the housing successor and the successor agency or
other public or private agencies. The disposition of those assets may
be accomplished by a revenue-sharing arrangement as approved by the
oversight board on behalf of the affected taxing entities.
(g) (1) (A) The housing successor may designate the use of and
commit indebtedness obligation proceeds that remain after the
satisfaction of enforceable obligations that have been approved in a
Recognized Obligation Payment Schedule and that are consistent with
the indebtedness obligation covenants. The proceeds shall be derived
from indebtedness obligations that were issued for the purposes of
affordable housing prior to June 28, 2011, and were backed by the Low
and Moderate Income Housing Fund. Enforceable obligations may be
satisfied by the creation of reserves for the projects that are the
subject of the enforceable obligation that are consistent with the
contractual obligations for those projects, or by expending funds to
complete the projects. It is the intent of the Legislature to
authorize housing successors to designate the use of and commit 100
percent of indebtedness obligation proceeds described in this
subparagraph.
(B) The housing successor shall provide notice to the successor
agency of any designations of use or commitments of funds specified
in subparagraph (A) that it wishes to make at least 20 days before
the deadline for submission of the Recognized Obligation Payment
Schedule to the oversight board. Commitments and designations shall
not be valid and binding on any party until they are included in an
approved and valid Recognized Obligation Payment Schedule. The review
of these designations and commitments by the successor agency,
oversight board, and Department of Finance shall be limited to a
determination that the designations and commitments are consistent
with bond covenants and that there are sufficient funds available.
(2) Funds shall be used and committed in a manner consistent with
the purposes of the Low and Moderate Income Housing Asset Fund.
Notwithstanding any other law, the successor agency shall retain and
expend the excess housing obligation proceeds at the discretion of
the housing successor, provided that the successor agency ensures
that the proceeds are expended in a manner consistent with the
indebtedness obligation covenants and with any requirements relating
to the tax status of those obligations. The amount expended shall not
exceed the amount of indebtedness obligation proceeds available and
such expenditure shall constitute the creation of excess housing
proceeds expenditures to be paid from the excess proceeds. Excess
housing proceeds expenditures shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(h) This section shall not be construed to provide any stream of
tax increment financing.
SEC. 5. Section 34176.1 of the Health and Safety Code is amended
to read:
34176.1. Funds in the Low and Moderate Income Housing Asset Fund
described in subdivision (d) of Section 34176 shall be subject to the
provisions of the Community Redevelopment Law (Part 1 (commencing
with Section 33000)) relating to the Low and Moderate Income Housing
Fund, except as follows:
(a) Subdivision (d) of Section 33334.3 and subdivision (a) of
Section 33334.4 shall not apply. Instead, funds received from the
successor agency for items listed on the Recognized Obligation
Payment Schedule shall be expended to meet the enforceable
obligations, and the housing successor shall expend all other funds
in the Low and Moderate Income Housing Asset Fund as follows:
(1) For the purpose of monitoring and preserving the long-term
affordability of units subject to affordability restrictions or
covenants entered into by the redevelopment agency or the housing
successor and for the purpose of administering the activities
described in paragraphs (2) and (3), a housing successor may expend
per fiscal year up to an amount equal to 5 percent of the statutory
value of real property owned by the housing successor and of loans
and grants receivable, including real property and loans and grants
transferred to the housing successor pursuant to Section 34176 and
real property purchased and loans and grants made by the housing
successor. If this amount is less than two hundred thousand dollars
($200,000) for any given fiscal year, the housing successor may
expend up to two hundred thousand dollars ($200,000) in that fiscal
year for these purposes. The Department of Housing and Community
Development shall annually publish on its Internet Web site an
adjustment to this amount to reflect any change in the Consumer Price
Index for All Urban Consumers published by the federal Department of
Labor for the preceding calendar year. For purposes of this
paragraph, "statutory value of real property" means the value of
properties formerly held by the former redevelopment agency as listed
on the housing asset transfer form approved by the department
pursuant to paragraph (2) of subdivision (a) of Section 34176, the
value of the properties transferred to the housing successor pursuant
to subdivision (f) of Section 34181, and the purchase price of
properties purchased by the housing successor.
(2) Notwithstanding Section 33334.2, if the housing successor has
fulfilled all obligations pursuant to Sections 33413 and 33418, the
housing successor may expend up to two hundred fifty thousand dollars
($250,000) per fiscal year for homeless prevention and rapid
rehousing services for individuals and families who are homeless or
would be homeless but for this assistance, including the provision of
short-term or medium-term rental assistance, housing relocation and
stabilization services including housing search, mediation, or
outreach to property owners, credit repair, security or utility
deposits, utility payments, rental assistance for a final month at a
location, moving cost assistance, and case management, or other
appropriate activities for homelessness prevention and rapid
rehousing of persons who have become homeless.
(3) (A) The housing successor shall expend all funds remaining in
the Low and Moderate Income Housing Asset Fund after the expenditures
allowed pursuant to paragraphs (1) and (2) for the development of
housing affordable to and occupied by households earning 80 percent
or less of the area median income, with at least 30 percent of these
remaining funds expended for the development of rental housing
affordable to and occupied by households earning 30 percent or less
of the area median income and no more than 20 percent of these
remaining funds expended for the development of housing affordable to
and occupied by households earning between 60 percent and 80 percent
of the area median income. A housing successor shall demonstrate in
the annual report described in subdivision (f), for 2019, and every
five years thereafter, that the housing successor's expenditures from
January 1, 2014, through the end of the latest fiscal year covered
in the report comply with the requirements of this subparagraph.
(B) If the housing successor fails to comply with the extremely
low income requirement in any five-year report, then the housing
successor shall ensure that at least 50 percent of these remaining
funds expended in each fiscal year following the latest fiscal year
following the report are expended for the development of rental
housing affordable to, and occupied by, households earning 30 percent
or less of the area median income until the housing successor
demonstrates compliance with the extremely low income requirement in
an annual report described in subdivision (f).
(C) If the housing successor exceeds the expenditure limit for
households earning between 60 percent and 80 percent of the area
median income in any five-year report, the housing successor shall
not expend any of the remaining funds for households earning between
60 percent and 80 percent of the area median income until the housing
successor demonstrates compliance with this limit in an annual
report described in subdivision (f).
(D) For purposes of this subdivision, "development" means new
construction, acquisition and rehabilitation, substantial
rehabilitation as defined in Section 33413, the acquisition of
long-term affordability covenants on multifamily units as described
in Section 33413, or the preservation of an assisted housing
development that is eligible for prepayment or termination or for
which within the expiration of rental restrictions is scheduled to
occur within five years as those terms are defined in Section
65863.10 of the Government Code. Units described in this subparagraph
may be counted towards any outstanding obligations pursuant to
Section 33413, provided that the units meet the requirements of that
section and are counted as provided in that section.
(b) Subdivision (b) of Section 33334.4 shall not apply. Instead,
if the aggregate number of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years exceeds 50 percent of the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period, then the housing successor shall not expend these funds to
assist additional senior housing units until the housing successor or
its host jurisdiction assists, and construction has commenced, a
number of units available to all persons, regardless of age, that is
equal to 50 percent of the aggregate number of units of
deed-restricted rental housing units assisted individually or jointly
by the housing successor, its former redevelopment agency, and its
host jurisdiction within the time period described above.
(c) (1) Program income a housing successor receives shall not be
associated with a project area and, notwithstanding subdivision (g)
of Section 33334.2, may be expended anywhere within the jurisdiction
of the housing successor or transferred pursuant to paragraph (2)
without a finding of benefit to a project area. For purposes of this
paragraph, "program income" means the sources described in paragraphs
(3), (4), and (5) of subdivision (e) of Section 34176 and interest
earned on deposits in the account.
(2) Two or more housing successors within a county, within a
single metropolitan statistical area, within 15 miles of each other,
or that are in contiguous jurisdictions may enter into an agreement
to transfer funds among their respective Low and Moderate Income
Housing Asset Funds for the sole purpose of developing transit
priority projects as defined in subdivisions (a) and (b) of Section
21155 of the Public Resources Code, permanent supportive housing as
defined in paragraph (2) of subdivision (b) of Section 50675.14,
housing for agricultural employees as defined in subdivision (g) of
Section 50517.5, or special needs housing as defined in federal or
state law or regulation if all of the following conditions are met:
(A) Each participating housing successor has made a finding based
on substantial evidence, after a public hearing, that the agreement
to transfer funds will not cause or exacerbate racial, ethnic, or
economic segregation.
(B) The development to be funded shall not be located in a census
tract where more than 50 percent of its population is very low
income, unless the development is within one-half mile of a major
transit stop or high-quality transit corridor as defined in paragraph
(3) of subdivision (b) of Section 21155 of the Public Resources
Code.
(C) The completed development shall not result in a reduction in
the number of housing units or a reduction in the affordability of
housing units on the site where the development is to be built.
(D) A transferring housing successor shall not have any
outstanding obligations pursuant to Section 33413.
(E) No housing successor may transfer more than one million
dollars ($1,000,000) per fiscal year.
(F) The jurisdictions of the transferring and receiving housing
successors each have an adopted housing element that the Department
of Housing and Community Development has found pursuant to Section
65585 of the Government Code to be in substantial compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code and have
submitted to the Department of Housing and Community Development the
annual progress report required by Section 65400 of the Government
Code within the preceding 12 months.
(G) Transferred funds shall only assist rental units affordable
to, and occupied by, households earning 60 percent or less of the
area median income.
(H) Transferred funds not encumbered within two years shall be
transferred to the Department of Housing and Community Development
for expenditure pursuant to the Multifamily Housing Program or the
Joe Serna, Jr. Farmworker Housing Grant Program.
(d) Sections 33334.10 and 33334.12 shall not apply. Instead, if a
housing successor has an excess surplus, the housing successor shall
encumber the excess surplus for the purposes described in paragraph
(3) of subdivision (a) or transfer the funds pursuant to paragraph
(2) of subdivision (c) within three fiscal years. If the housing
successor fails to comply with this subdivision, the housing
successor, within 90 days of the end of the third fiscal year, shall
transfer any excess surplus to the Department of Housing and
Community Development for expenditure pursuant to the Multifamily
Housing Program or the Joe Serna, Jr. Farmworker Housing Grant
Program. For purposes of this subdivision, "excess surplus" shall
mean an unencumbered amount in the account that exceeds the greater
of one million dollars ($1,000,000) or the aggregate amount deposited
into the account during the housing successor's preceding four
fiscal years, whichever is greater.
(e) Section 33334.16 shall not apply to interests in real property
acquired on or after February 1, 2012. With respect to interests in
real property acquired by the former redevelopment agency prior to
February 1, 2012, the time periods described in Section 33334.16
shall be deemed to have commenced on the date that the department
approved the property as a housing asset.
(f) Section 33080.1 of this code and Section 12463.3 of the
Government Code shall not apply. Instead, the housing successor shall
conduct, and shall provide to its governing body, an independent
financial audit of the Low and Moderate Income Housing Asset Fund
within six months after the end of each fiscal year, which may be
included in the independent financial audit of the host jurisdiction.
If the housing successor is a city or county, it shall also include
in its report pursuant to Section 65400 of the Government Code and
post on its Internet Web site all of the following information for
the previous fiscal year. If the housing successor is not a city or
county, it shall also provide to its governing body and post on its
Internet Web site all of the following information for the previous
fiscal year:
(1) The amount the city, county, or city and county received
pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of
Section 34191.4.
(2) The amount deposited to the Low and Moderate Income Housing
Asset Fund, distinguishing between amounts deposited pursuant to
subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of
Section 34191.4, amounts deposited for other items listed on the
Recognized Obligation Payment Schedule, and other amounts deposited.
(3) A statement of the balance in the fund as of the close of the
fiscal year, distinguishing any amounts held for items listed on the
Recognized Obligation Payment Schedule from other amounts.
(4) A description of expenditures from the fund by category,
including, but not limited to, expenditures (A) for monitoring and
preserving the long-term affordability of units subject to
affordability restrictions or covenants entered into by the
redevelopment agency or the housing successor and administering the
activities described in paragraphs (2) and (3) of subdivision (a),
(B) for homeless prevention and rapid rehousing services for the
development of housing described in paragraph (2) of subdivision (a),
and (C) for the development of housing pursuant to paragraph (3) of
subdivision (a).
(5) As described in paragraph (1) of subdivision (a), the
statutory value of real property owned by the housing successor, the
value of loans and grants receivable, and the sum of these two
amounts.
(6) A description of any transfers made pursuant to paragraph (2)
of subdivision (c) in the previous fiscal year and, if still
unencumbered, in earlier fiscal years and a description of and status
update on any project for which transferred funds have been or will
be expended if that project has not yet been placed in service.
(7) A description of any project for which the housing successor
receives or holds property tax revenue pursuant to the Recognized
Obligation Payment Schedule and the status of that project.
(8) For interests in real property acquired by the former
redevelopment agency prior to February 1, 2012, a status update on
compliance with Section 33334.16. For interests in real property
acquired on or after February 1, 2012, a status update on the
project.
(9) A description of any outstanding obligations pursuant to
Section 33413 that remained to transfer to the housing successor on
February 1, 2012, of the housing successor's progress in meeting
those obligations, and of the housing successor's plans to meet unmet
obligations. In addition, the housing successor shall include in the
report posted on its Internet Web site the implementation plans of
the former redevelopment agency.
(10) The information required by subparagraph (B) of paragraph (3)
of subdivision (a).
(11) The percentage of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years in relation to the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period.
(12) The amount of any excess surplus, the amount of time that the
successor agency has had excess surplus, and the housing successor's
plan for eliminating the excess surplus.
(13) An inventory of homeownership units assisted by the former
redevelopment agency or the housing successor that are subject to
covenants or restrictions or to an adopted program that protects the
former redevelopment agency's investment of moneys from the Low and
Moderate Income Housing Fund pursuant to subdivision (f) of Section
33334.3. This inventory shall include all of the following
information:
(A) The number of those units.
(B) In the first report pursuant to this subdivision, the number
of units lost to the portfolio after February 1, 2012, and the reason
or reasons for those losses. For all subsequent reports, the number
of the units lost to the portfolio in the last fiscal year and the
reason for those losses.
(C) Any funds returned to the housing successor as part of an
adopted program that protects the former redevelopment agency's
investment of moneys from the Low and Moderate Income Housing Fund.
(D) Whether the housing successor has contracted with any outside
entity for the management of the units and, if so, the identity of
the entity.
SEC. 6. Section 34177 of the Health and Safety Code is amended to
read:
34177. Successor agencies are required to do all of the
following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (d) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum. In recognition of the fact that the timing
of the California Supreme Court's ruling in the case California
Redevelopment Association v. Matosantos (2011) 53 Cal.4th 231 delayed
the preparation by successor agencies and the approval by oversight
boards of the January 1, 2012, through June 30, 2012, Recognized
Obligation Payment Schedule, a successor agency may amend the
Enforceable Obligation Payment Schedule to authorize the continued
payment of enforceable obligations until the time that the January 1,
2012, through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the department. The
successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the Department of Finance and the auditor-controller.
(2) The department, the county auditor-controller, and the
Controller shall each have the authority to require any documents
associated with the enforceable obligations to be provided to them in
a manner of their choosing. Any taxing entity, the department, and
the Controller shall each have standing to file a judicial action to
prevent a violation under this part and to obtain injunctive or other
appropriate relief.
(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be made by
the successor agency from the funds specified in the Recognized
Obligation Payment Schedule. In addition, after it becomes valid, the
Recognized Obligation Payment Schedule shall supersede the Statement
of Indebtedness, which shall no longer be prepared nor have any
effect under the Community Redevelopment Law (Part 1 (commencing with
Section 33000)).
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shall not
apply to a successor agency that has been issued a finding of
completion by the department pursuant to Section 34179.7.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
( l ) (1) Before each fiscal period set forth in
subdivision (m) or (o), as applicable, prepare a Recognized
Obligation Payment Schedule in accordance with the requirements of
this paragraph. For each recognized obligation, the Recognized
Obligation Payment Schedule shall identify one or more of the
following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A Recognized Obligation Payment Schedule is prepared by the
successor agency for the enforceable obligations of the former
redevelopment agency. The initial schedule shall project the dates
and amounts of scheduled payments for each enforceable obligation for
the remainder of the time period during which the redevelopment
agency would have been authorized to obligate property tax increment
had the redevelopment agency not been dissolved.
(B) The Recognized Obligation Payment Schedule is submitted to and
duly approved by the oversight board. The successor agency shall
submit a copy of the Recognized Obligation Payment Schedule to the
county administrative officer, the county auditor-controller, and the
department at the same time that the successor agency submits the
Recognized Obligation Payment Schedule to the oversight board for
approval.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller, the Controller's
office, and the Department of Finance, and is posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months or one year pursuant to subdivision
(m) or (o), as applicable. The first Recognized Obligation Payment
Schedule shall be submitted to the Controller's office and the
department by April 15, 2012, for the period of January 1, 2012, to
June 30, 2012, inclusive. This Recognized Obligation Payment Schedule
shall include all payments made by the former redevelopment agency
between January 1, 2012, through January 31, 2012, and shall include
all payments proposed to be made by the successor agency from
February 1, 2012, through June 30, 2012. Former redevelopment agency
enforceable obligation payments due, and reasonable or necessary
administrative costs due or incurred, prior to January 1, 2012, shall
be made from property tax revenues received in the spring of 2011
property tax distribution, and from other revenues and balances
transferred to the successor agency.
(m) (1) The Recognized Obligation Payment Schedule for the period
of January 1, 2013, to June 30, 2013, shall be submitted by the
successor agency, after approval by the oversight board, no later
than September 1, 2012. Commencing with the Recognized Obligation
Payment Schedule covering the period July 1, 2013, through December
31, 2013, successor agencies shall submit an oversight board-approved
Recognized Obligation Payment Schedule to the department and to the
county auditor-controller no fewer than 90 days before the date of
property tax distribution. The department shall make its
determination of the enforceable obligations and the amounts and
funding sources of the enforceable obligations no later than 45 days
after the Recognized Obligation Payment Schedule is submitted. Within
five business days of the department's determination, a successor
agency may request additional review by the department and an
opportunity to meet and confer on disputed items, except for those
items which are the subject of litigation disputing the department's
previous or related determination. The meet and confer period may
vary; an untimely submittal of a Recognized Obligation Payment
Schedule may result in a meet and confer period of less than 30 days.
The department shall notify the successor agency and the county
auditor-controllers as to the outcome of its review at least 15 days
before the date of property tax distribution.
(A) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department electronically, and the
successor agency shall complete the Recognized Obligation Payment
Schedule in the manner provided for by the department. A successor
agency shall be in noncompliance with this paragraph if it only
submits to the department an electronic message or a letter stating
that the oversight board has approved a Recognized Obligation Payment
Schedule.
(B) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if it is acting as the successor agency, shall be subject to
a civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the Department of
Finance or any affected taxing entity shall have standing to and may
request a writ of mandate to require the successor agency to
immediately perform this duty. Those actions may be filed only in the
County of Sacramento and shall have priority over other civil
matters. Additionally, if an agency does not submit a Recognized
Obligation Payment Schedule within 10 days of the deadline, the
maximum administrative cost allowance for that period shall be
reduced by 25 percent.
(C) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers shall
lack the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 unless required
by a court order.
(D) (i) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(ii) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the auditor-controller.
(iii) A Recognized Obligation Payment Schedule may also include
appropriation of moneys from bonds subject to passage during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(2) The requirements of this subdivision shall apply until
December 31, 2015.
(n) Cause a postaudit of the financial transactions and records of
the successor agency to be made at least annually by a certified
public accountant.
(o) (1) Commencing with the Recognized Obligation Payment Schedule
covering the period from July 1, 2016, to June 30, 2017, inclusive,
and for each period from July 1 to June 30, inclusive, thereafter, a
successor agency shall submit an oversight board-approved Recognized
Obligation Payment Schedule to the department and to the county
auditor-controller no later than February 1, 2016, and each February
1 thereafter. The department shall make its determination of the
enforceable obligations and the amounts and funding sources of the
enforceable obligations no later than April 15, 2016, and each April
15 thereafter. Within five business days of the department's
determination, a successor agency may request additional review by
the department and an opportunity to meet and confer on disputed
items, except for those items which are the subject of litigation
disputing the department's previous or related determination. An
untimely submittal of a Recognized Obligation Payment Schedule may
result in a meet and confer period of less than 30 days. The
department shall notify the successor agency and the county
auditor-controller as to the outcome of its review at least 15 days
before the date of the first property tax distribution for that
period.
(A) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department in the manner provided
for by the department.
(B) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if acting as the successor agency, shall be subject to a
civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the department or
any affected taxing entity shall have standing to, and may request a
writ of mandate to, require the successor agency to immediately
perform this duty. Those actions may be filed only in the County of
Sacramento and shall have priority over other civil matters.
Additionally, if an agency does not submit a Recognized Obligation
Payment Schedule within 10 days of the deadline, the maximum
administrative cost for that period shall be reduced by 25 percent.
(C) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers do
not have the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 except as
required by a court order.
(D) (i) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(ii) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the county auditor-controller.
(iii) A Recognized Obligation Payment Schedule may also include a
request to use proceeds from bonds expected to be issued during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(E) Once per Recognized Obligation Payment Schedule period, and no
later than October 1, a successor agency may submit one amendment to
the Recognized Obligation Payment Schedule approved by the
department pursuant to this subdivision, if the oversight board makes
a finding that a revision is necessary for the payment of approved
enforceable obligations during the second one-half of the Recognized
Obligation Payment Schedule period, which shall be defined as January
1 to June 30, inclusive. A successor agency may only amend the
amount requested for payment of approved enforceable obligations. The
revised Recognized Obligation Payment Schedule shall be approved by
the oversight board and submitted to the department by electronic
means in a manner of the department's choosing. The department shall
notify the successor agency and the county auditor-controller as to
the outcome of the department's review at least 15 days before the
date of the property tax distribution.
(2) The requirements of this subdivision shall apply on and after
January 1, 2016.
SEC. 7. Section 34177.3 of the Health and Safety Code is amended
to read:
34177.3. (a) Successor agencies shall lack the authority to, and
shall not, create new enforceable obligations or begin redevelopment
work, except in compliance with an enforceable obligation, as defined
by subdivision (d) of Section 34171, that existed prior to June 28,
2011.
(b) Notwithstanding subdivision (a), successor agencies may create
enforceable obligations to conduct the work of winding down the
redevelopment agency, including hiring staff, acquiring necessary
professional administrative services and legal counsel, and procuring
insurance. Except as required by an enforceable obligation, the work
of winding down the redevelopment agency does not include planning,
design, redesign, development, demolition, alteration, construction,
construction financing, site remediation, site development or
improvement, land clearance, seismic retrofits, and other similar
work. Successor agencies may not create enforceable obligations to
repay loans entered into between the redevelopment agency that it is
succeeding and the city, county, or city and county that formed the
redevelopment agency that it is succeeding, except as provided in
Chapter 9 (commencing with Section 34191.1).
(c) Successor agencies shall lack the authority to, and shall not,
transfer any powers or revenues of the successor agency to any other
party, public or private, except pursuant to an enforceable
obligation on a Recognized Obligation Payment Schedule approved by
the department. Any such transfers of authority or revenues that are
not made pursuant to an enforceable obligation on a Recognized
Obligation Payment Schedule approved by the department are hereby
declared to be void, and the successor agency shall take action to
reverse any of those transfers. The Controller may audit any transfer
of authority or revenues prohibited by this section and may order
the prompt return of any money or other things of value from the
receiving party.
(d) Redevelopment agencies that resolved to participate in the
Voluntary Alternative Redevelopment Program under Chapter 6 of the
First Extraordinary Session of the Statutes of 2011 were and are
subject to the provisions of Part 1.8 (commencing with Section
34161). Any actions taken by redevelopment agencies to create
obligations after June 27, 2011, are ultra vires and do not create
enforceable obligations.
(e) The provisions of this section shall apply retroactively to
any successor agency or redevelopment agency actions occurring on or
after June 27, 2012.
SEC. 8. Section 34177.5 of the Health and Safety Code is amended
to read:
34177.5. (a) In addition to the powers granted to each successor
agency, and notwithstanding anything in the act adding this part,
including, but not limited to, Sections 34162 and 34189, a successor
agency shall have the authority, rights, and powers of the
redevelopment agency to which it succeeded solely for the following
purposes:
(1) For the purpose of issuing bonds or incurring other
indebtedness to refund the bonds or other indebtedness of its former
redevelopment agency or of the successor agency to provide savings to
the successor agency, provided that (A) the total interest cost to
maturity on the refunding bonds or other indebtedness plus the
principal amount of the refunding bonds or other indebtedness shall
not exceed the total remaining interest cost to maturity on the bonds
or other indebtedness to be refunded plus the remaining principal of
the bonds or other indebtedness to be refunded, and (B) the
principal amount of the refunding bonds or other indebtedness shall
not exceed the amount required to defease the refunded bonds or other
indebtedness, to establish customary debt service reserves, and to
pay related costs of issuance. If the foregoing conditions are
satisfied, the initial principal amount of the refunding bonds or
other indebtedness may be greater than the outstanding principal
amount of the bonds or other indebtedness to be refunded. The
successor agency may pledge to the refunding bonds or other
indebtedness the revenues pledged to the bonds or other indebtedness
being refunded, and that pledge, when made in connection with the
issuance of such refunding bonds or other indebtedness, shall have
the same lien priority as the pledge of the bonds or other
obligations to be refunded, and shall be valid, binding, and
enforceable in accordance with its terms.
(2) For the purpose of issuing bonds or other indebtedness to
finance debt service spikes, including balloon maturities, provided
that (A) the existing indebtedness is not accelerated, except to the
extent necessary to achieve substantially level debt service, and (B)
the principal amount of the bonds or other indebtedness shall not
exceed the amount required to finance the debt service spikes,
including establishing customary debt service reserves and paying
related costs of issuance.
(3) For the purpose of amending an existing enforceable obligation
under which the successor agency is obligated to reimburse a
political subdivision of the state for the payment of debt service on
a bond or other obligation of the political subdivision, or to pay
all or a portion of the debt service on the bond or other obligation
of the political subdivision to provide savings to the successor
agency, provided that (A) the enforceable obligation is amended in
connection with a refunding of the bonds or other obligations of the
political subdivision so that the enforceable obligation will apply
to the refunding bonds or other refunding indebtedness of the
political subdivision, (B) the total interest cost to maturity on the
refunding bonds or other indebtedness plus the principal amount of
the refunding bonds or other indebtedness shall not exceed the total
remaining interest cost to maturity on the bonds or other
indebtedness to be refunded plus the remaining principal of the bonds
or other indebtedness to be refunded, and (C) the principal amount
of the refunding bonds or other indebtedness shall not exceed the
amount required to defease the refunded bonds or other indebtedness,
to establish customary debt service reserves and to pay related costs
of issuance. The pledge set forth in that amended enforceable
obligation, when made in connection with the execution of the
amendment of the enforceable obligation, shall have the same lien
priority as the pledge in the enforceable obligation prior to its
amendment and shall be valid, binding, and enforceable in accordance
with its terms.
(4) For the purpose of issuing bonds or incurring other
indebtedness to make payments under enforceable obligations when the
enforceable obligations include the irrevocable pledge of property
tax increment, formerly tax increment revenues prior to the effective
date of this part, or other funds and the obligation to issue bonds
secured by that pledge. The successor agency may pledge to the bonds
or other indebtedness the property tax revenues and other funds
described in the enforceable obligation, and that pledge, when made
in connection with the issuance of the bonds
or the incurring of other indebtedness, shall be
valid, binding, and enforceable in accordance with its terms. This
paragraph shall not be deemed to authorize a successor agency to
increase the amount of property tax revenues pledged under an
enforceable obligation or to pledge any property tax revenue not
already pledged pursuant to an enforceable obligation. This paragraph
does not constitute a change in, but is declaratory of, the existing
law.
(b) The refunding bonds authorized under this section may be
issued under the authority of Article 11 (commencing with Section
53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code, and the refunding bonds may be sold at public or
private sale, or to a joint powers authority pursuant to the
Marks-Roos Local Bond Pooling Act (Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the Government Code).
(c) (1) Prior to incurring any bonds or other indebtedness
pursuant to this section, the successor agency may subordinate to the
bonds or other indebtedness the amount required to be paid to an
affected taxing entity pursuant to paragraph (1) of subdivision (a)
of Section 34183, provided that the affected taxing entity has
approved the subordinations pursuant to this subdivision.
(2) At the time the successor agency requests an affected taxing
entity to subordinate the amount to be paid to it, the successor
agency shall provide the affected taxing entity with substantial
evidence that sufficient funds will be available to pay both the debt
service on the bonds or other indebtedness and the payments required
by paragraph (1) of subdivision (a) of Section 34183, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the successor agency will not be able to pay the debt service
payments and the amount required to be paid to the affected taxing
entity. If the affected taxing entity does not act within 45 days
after receipt of the agency's request, the request to subordinate
shall be deemed approved and shall be final and conclusive.
(d) An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of bonds or other obligations
authorized by this section, the pledge of revenues to those bonds or
other obligations authorized by this section, the legality and
validity of all proceedings theretofore taken and, as provided in the
resolution of the legislative body of the successor agency
authorizing the bonds or other obligations authorized by this
section, proposed to be taken for the authorization, execution,
issuance, sale, and delivery of the bonds or other obligations
authorized by this section, and for the payment of debt service on
the bonds or the payment of amounts under other obligations
authorized by this section. Subdivision (c) of Section 33501 shall
not apply to any such action. The department shall be notified of the
filing of any action as an affected party.
(e) Notwithstanding any other law, including, but not limited to,
Section 33501, an action to challenge the issuance of bonds, the
incurrence of indebtedness, the amendment of an enforceable
obligation, or the execution of a financing agreement by a successor
agency shall be brought within 30 days after the date on which the
oversight board approves the resolution of the successor agency
approving the issuance of bonds, the incurrence of indebtedness, the
amendment of an enforceable obligation, or the execution of a
financing agreement authorized under this section.
(f) The actions authorized in this section shall be subject to the
approval of the oversight board, as provided in Section 34180.
Additionally, an oversight board may direct the successor agency to
commence any of the transactions described in subdivision (a) so long
as the successor agency is able to recover its related costs in
connection with the transaction. After a successor agency, with
approval of the oversight board, issues any bonds, incurs any
indebtedness, or executes an amended enforceable obligation pursuant
to subdivision (a), the oversight board shall not unilaterally
approve any amendments to or early termination of the bonds,
indebtedness, or enforceable obligation. If, under the authority
granted to it by subdivision (h) of Section 34179, the department
either reviews and approves or fails to request review within five
business days of an oversight board approval of an action authorized
by this section, the scheduled payments on the bonds or other
indebtedness shall be listed in the Recognized Obligation Payment
Schedule and shall not be subject to further review and approval by
the department or the Controller. The department may extend its
review time to 60 days for actions authorized in this section and may
seek the assistance of the Treasurer in evaluating proposed actions
under this section.
(g) Any bonds, indebtedness, or amended enforceable obligation
authorized by this section shall be considered indebtedness incurred
by the dissolved redevelopment agency, with the same legal effect as
if the bonds, indebtedness, financing agreement, or amended
enforceable obligation had been issued, incurred, or entered into
prior to June 28, 2011, in full conformity with the applicable
provisions of the Community Redevelopment Law that existed prior to
that date, shall be included in the successor agency's Recognized
Obligation Payment Schedule, and shall be secured by a pledge of, and
lien on, and shall be repaid from moneys deposited from time to time
in the Redevelopment Property Tax Trust Fund established pursuant to
subdivision (c) of Section 34172, as provided in paragraph (2) of
subdivision (a) of Section 34183. Property tax revenues pledged to
any bonds, indebtedness, or amended enforceable obligations
authorized by this section are taxes allocated to the successor
agency pursuant to subdivision (b) of Section 33670 and Section 16 of
Article XVI of the California Constitution.
(h) The successor agency shall make diligent efforts to ensure
that the lowest long-term cost financing is obtained. The financing
shall not provide for any bullets or spikes and shall not use
variable rates. The successor agency shall make use of an independent
financial advisor in developing financing proposals and shall make
the work products of the financial advisor available to the
department at its request.
(i) If an enforceable obligation provides for an irrevocable
commitment of revenue and where allocation of such revenues is
expected to occur over time, the successor agency may petition the
department by electronic means and in a manner of the department's
choosing to provide written confirmation that its determination of
such enforceable obligation as approved in a Recognized Obligation
Payment Schedule is final and conclusive, and reflects the department'
s approval of subsequent payments made pursuant to the enforceable
obligation. The successor agency shall provide a copy of the petition
to the county auditor-controller at the same time it is submitted to
the department. The department shall have 100 days from the date of
the request for a final and conclusive determination to provide
written confirmation of approval or denial of the request. For any
pending final and conclusive determination requests submitted prior
to June 30, 2015, the department shall have until December 31, 2015,
to provide written confirmation of approval or denial of the request.
If the confirmation of approval is granted, then the department's
review of such payments in future Recognized Obligation Payment
Schedules shall be limited to confirming that they are required by
the prior enforceable obligation.
(j) The successor agency may request that the department provide a
written determination to waive the two-year statute of limitations
on an action to review the validity of the adoption or amendment of a
redevelopment plan pursuant to subdivision (c) of Section 33500 or
on any findings or determinations made by the agency pursuant to
subdivision (d) of Section 33500. The department at its discretion
may provide a waiver if it determines it is necessary for the agency
to fulfill an enforceable obligation.
SEC. 9. Section 34177.7 is added to the Health and Safety Code, to
read:
34177.7. (a) (1) In addition to the powers granted to each
successor agency, and notwithstanding anything in the act adding this
part, including, but not limited to, Sections 34162 and 34189, the
successor agency to the Redevelopment Agency of the City and County
of San Francisco shall have the authority, rights, and powers of the
Redevelopment Agency to which it succeeded solely for the purpose of
issuing bonds or incurring other indebtedness to finance:
(A) The affordable housing required by the Mission Bay North Owner
Participation Agreement, the Mission Bay South Owner Participation
Agreement, the Disposition and Development Agreement for Hunters
Point Shipyard Phase 1, the Candlestick Point-Hunters Point Shipyard
Phase 2 Disposition and Development Agreement, and the Transbay
Implementation Agreement.
(B) The infrastructure required by the Transbay Implementation
Agreement.
(2) The successor agency to the Redevelopment Agency of the City
and County of San Francisco may pledge to the bonds or other
indebtedness the property tax revenues available in the successor
agency's Redevelopment Property Tax Trust Fund that are not otherwise
obligated.
(b) Bonds issued pursuant to this section may be sold pursuant to
either a negotiated or a competitive sale. The bonds issued or other
indebtedness obligations incurred pursuant to this section may be
issued or incurred on a parity basis with outstanding bonds or other
indebtedness obligations of the successor agency to the Redevelopment
Agency of the City and County of San Francisco and may pledge the
revenues pledged to those outstanding bonds or other indebtedness
obligations to the issuance of bonds or other obligations pursuant to
this section. The pledge, when made in connection with the issuance
of bonds or other indebtedness obligations under this section, shall
have the same lien priority as the pledge of outstanding bonds or
other indebtedness obligations, and shall be valid, binding, and
enforceable in accordance with its terms.
(c) (1) Prior to issuing any bonds or incurring other indebtedness
pursuant to this section, the successor agency to the Redevelopment
Agency of the City and County of San Francisco may subordinate to the
bonds or other indebtedness the amount required to be paid to an
affected taxing entity pursuant to paragraph (1) of subdivision (a)
of Section 34183, provided that the affected taxing entity has
approved the subordinations pursuant to this subdivision.
(2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service on the bonds or
other indebtedness and the payments required by paragraph (1) of
subdivision (a) of Section 34183, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the successor agency will not be able to pay the debt service
payments and the amount required to be paid to the affected taxing
entity. If the affected taxing entity does not act within 45 days
after receipt of the agency's request, the request to subordinate
shall be deemed approved and shall be final and conclusive.
(d) An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of bonds or other obligations
authorized by this section, the pledge of revenues to those bonds or
other obligations authorized by this section, the legality and
validity of all proceedings theretofore taken and, as provided in the
resolution of the legislative body of the successor agency to the
Redevelopment Agency of the City and County of San Francisco
authorizing the bonds or other indebtedness obligations authorized by
this section, proposed to be taken for the authorization, execution,
issuance, sale, and delivery of the bonds or other obligations
authorized by this section, and for the payment of debt service on
the bonds or the payment of amounts under other obligations
authorized by this section. Subdivision (c) of Section 33501 shall
not apply to any such action. The department shall be notified of the
filing of any action as an affected party.
(e) Notwithstanding any other law, including, but not limited to,
Section 33501, an action to challenge the issuance of bonds or the
incurrence of indebtedness by the successor agency to the
Redevelopment Agency of the City and County of San Francisco shall be
brought within 30 days after the date on which the oversight board
approves the resolution of the agency approving the issuance of bonds
or the incurrence of indebtedness under this section.
(f) The actions authorized in this section shall be subject to the
approval of the oversight board, as provided in Section 34180.
Additionally, the oversight board may direct the successor agency to
the Redevelopment Agency of the City and County of San Francisco to
commence any of the transactions described in subdivision (a) so long
as the agency is able to recover its related costs in connection
with the transaction. After the agency, with approval of the
oversight board, issues any bonds or incurs any indebtedness pursuant
to subdivision (a), the oversight board shall not unilaterally
approve any amendments to or early termination of the bonds or
indebtedness. If, under the authority granted to it by subdivision
(h) of Section 34179, the department either reviews and approves or
fails to request review within five business days of an oversight
board approval of an action authorized by this section, the scheduled
payments on the bonds or other indebtedness shall be listed in the
Recognized Obligation Payment Schedule and shall not be subject to
further review and approval by the department or the Controller. The
department may extend its review time to 60 days for actions
authorized in this section and may seek the assistance of the
Treasurer in evaluating proposed actions under this section.
(g) Any bonds or other indebtedness authorized by this section
shall be considered indebtedness incurred by the dissolved
redevelopment agency, with the same legal effect as if the bonds or
other indebtedness had been issued, incurred, or entered into prior
to June 28, 2011, in full conformity with the applicable provisions
of the Community Redevelopment Law that existed prior to that date,
shall be included in the successor agency to the Redevelopment Agency
of the City and County of San Francisco's Recognized Obligation
Payment Schedule, and shall be secured by a pledge of, and lien on,
and shall be repaid from moneys deposited from time to time in the
Redevelopment Property Tax Trust Fund established pursuant to
subdivision (c) of Section 34172, as provided in paragraph (2) of
subdivision (a) of Section 34183. Property tax revenues pledged to
any bonds or other indebtedness obligations authorized by this
section are taxes allocated to the successor agency pursuant to
subdivision (b) of Section 33670 and Section 16 of Article XVI of the
California Constitution.
(h) The successor agency to the Redevelopment Agency of the City
and County of San Francisco shall make diligent efforts to ensure
that the lowest long-term cost financing is obtained. The financing
shall not provide for any bullets or spikes and shall not use
variable rates. The agency shall make use of an independent financial
advisor in developing financing proposals and shall make the work
products of the financial advisor available to the department at its
request.
SEC. 10. Section 34178 of the Health and Safety Code is amended to
read:
34178. (a) Commencing on the operative date of this part,
agreements, contracts, or arrangements between the city or county, or
city and county that created the redevelopment agency and the
redevelopment agency are invalid and shall not be binding on the
successor agency; provided, however, that a successor entity wishing
to enter or reenter into agreements with the city, county, or city
and county that formed the redevelopment agency that it is succeeding
may do so subject to the restrictions identified in subdivision (c),
and upon obtaining the approval of its oversight board.
(b) Notwithstanding subdivision (a), any of the following
agreements are not invalid and may bind the successor agency:
(1) A duly authorized written agreement entered into at the time
of issuance, but in no event later than December 31, 2010, of
indebtedness obligations, and solely for the purpose of securing or
repaying those indebtedness obligations.
(2) A written agreement between a redevelopment agency and the
city, county, or city and county that created it that provided loans
or other startup funds for the redevelopment agency that were entered
into within two years of the formation of the redevelopment agency.
(3) A joint exercise of powers agreement in which the
redevelopment agency is a member of the joint powers authority.
However, upon assignment to the successor agency by operation of the
act adding this part, the successor agency's rights, duties, and
performance obligations under that joint exercise of powers agreement
shall be limited by the constraints imposed on successor agencies by
the act adding this part.
(4) A duly authorized written agreement entered into at the time
of issuance, but in no event later than June 27, 2011, of
indebtedness obligations solely for the refunding or refinancing of
other indebtedness obligations that existed prior to January 1, 2011,
and solely for the purpose of securing or repaying the refunded and
refinanced indebtedness obligations.
(c) An oversight board shall not approve any agreements between
the successor agency and the city, county, or city and county that
formed the redevelopment agency that it is succeeding, except for
agreements for the limited purposes set forth in subdivision (b) of
Section 34177.3. A successor agency shall not enter or reenter into
any agreements with the city, county, or city and county that formed
the redevelopment agency that it is succeeding, except for agreements
for the limited purposes set forth in subdivision (b) of Section
34177.3. A successor agency or an oversight board shall not exercise
the powers granted by subdivision (a) to restore funding for any item
that was denied or reduced by the department. This subdivision shall
apply retroactively to all agreements entered or reentered pursuant
to this section on and after June 27, 2012. Any agreement entered or
reentered pursuant to this section on and after June 27, 2012, that
does not comply with this subdivision is ultra vires and void, and
does not create an enforceable obligation. The Legislature finds and
declares that this subdivision is necessary to promote the
expeditious wind down of redevelopment agency affairs.
SEC. 11. Section 34179 of the Health and Safety Code is amended to
read:
34179. (a) Each successor agency shall have an oversight board
composed of seven members. The members shall elect one of their
members as the chairperson and shall report the name of the
chairperson and other members to the Department of Finance on or
before May 1, 2012. Members shall be selected as follows:
(1) One member appointed by the county board of supervisors.
(2) One member appointed by the mayor for the city that formed the
redevelopment agency.
(3) (A) One member appointed by the largest special district, by
property tax share, with territory in the territorial jurisdiction of
the former redevelopment agency, which is of the type of special
district that is eligible to receive property tax revenues pursuant
to Section 34188.
(B) On or after the effective date of this subparagraph, the
county auditor-controller may determine which is the largest special
district for purposes of this section.
(4) One member appointed by the county superintendent of education
to represent schools if the superintendent is elected. If the county
superintendent of education is appointed, then the appointment made
pursuant to this paragraph shall be made by the county board of
education.
(5) One member appointed by the Chancellor of the California
Community Colleges to represent community college districts in the
county.
(6) One member of the public appointed by the county board of
supervisors.
(7) One member representing the employees of the former
redevelopment agency appointed by the mayor or chair of the board of
supervisors, as the case may be, from the recognized employee
organization representing the largest number of former redevelopment
agency employees employed by the successor agency at that time. In
the case where city or county employees performed administrative
duties of the former redevelopment agency, the appointment shall be
made from the recognized employee organization representing those
employees. If a recognized employee organization does not exist for
either the employees of the former redevelopment agency or the city
or county employees performing administrative duties of the former
redevelopment agency, the appointment shall be made from among the
employees of the successor agency. In voting to approve a contract as
an enforceable obligation, a member appointed pursuant to this
paragraph shall not be deemed to be interested in the contract by
virtue of being an employee of the successor agency or community for
purposes of Section 1090 of the Government Code.
(8) If the county or a joint powers agency formed the
redevelopment agency, then the largest city by acreage in the
territorial jurisdiction of the former redevelopment agency may
select one member. If there are no cities with territory in a project
area of the redevelopment agency, the county superintendent of
education may appoint an additional member to represent the public.
(9) If there are no special districts of the type that are
eligible to receive property tax pursuant to Section 34188, within
the territorial jurisdiction of the former redevelopment agency, then
the county may appoint one member to represent the public.
(10) If a redevelopment agency was formed by an entity that is
both a charter city and a county, the oversight board shall be
composed of seven members selected as follows: three members
appointed by the mayor of the city, if that appointment is subject to
confirmation by the county board of supervisors, one member
appointed by the largest special district, by property tax share,
with territory in the territorial jurisdiction of the former
redevelopment agency, which is the type of special district that is
eligible to receive property tax revenues pursuant to Section 34188,
one member appointed by the county superintendent of education to
represent schools, one member appointed by the Chancellor of the
California Community Colleges to represent community college
districts, and one member representing employees of the former
redevelopment agency appointed by the mayor of the city if that
appointment is subject to confirmation by the county board of
supervisors, to represent the largest number of former redevelopment
agency employees employed by the successor agency at that time.
(11) Each appointing authority identified in this subdivision may,
but is not required to, appoint alternate representatives to serve
on the oversight board as may be necessary to attend any meeting of
the oversight board in the event that the appointing authority's
primary representative is unable to attend any meeting for any
reason. If an alternate representative attends any meeting in place
of the primary representative, the alternate representative shall
have the same participatory and voting rights as all other attending
members of the oversight board.
(b) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (a) that has not been
filled by May 15, 2012, or any member position that remains vacant
for more than 60 days.
(c) The oversight board may direct the staff of the successor
agency to perform work in furtherance of the oversight board's and
the successor agency's duties and responsibilities under this part.
The successor agency shall pay for all of the costs of meetings of
the oversight board and may include such costs in its administrative
budget. Oversight board members shall serve without compensation or
reimbursement for expenses.
(d) Oversight board members are protected by the immunities
applicable to public entities and public employees governed by Part 1
(commencing with Section 810) and Part 2 (commencing with Section
814) of Division 3.6 of Title 1 of the Government Code.
(e) A majority of the total membership of the oversight board
shall constitute a quorum for the transaction of business. A majority
vote of the total membership of the oversight board is required for
the oversight board to take action. The oversight board shall be
deemed to be a local entity for purposes of the Ralph M. Brown Act,
the California Public Records Act, and the Political Reform Act of
1974. All actions taken by the oversight board shall be adopted by
resolution.
(f) All notices required by law for proposed oversight board
actions shall also be posted on the successor agency's Internet Web
site or the oversight board's Internet Web site.
(g) Each member of an oversight board shall serve at the pleasure
of the entity that appointed such member.
(h) (1) The department may review an oversight board action taken
pursuant to this part. Written notice and information about all
actions taken by an oversight board shall be provided to the
department as an approved resolution by electronic means and in a
manner of the department's choosing. Without abrogating the
department's authority to review all matters related to the
Recognized Obligation Payment Schedule pursuant to Section 34177,
oversight boards are not required to submit the following oversight
board actions for department approval:
(A) Meeting minutes and agendas.
(B) Administrative budgets.
(C) Changes in oversight board members, or the selection of an
oversight board chair or vice chair.
(D) Transfers of governmental property pursuant to an approved
long-range property management plan.
(E) Transfers of property to be retained by the sponsoring entity
for future development pursuant to an approved long-range property
management plan.
(2) An oversight board action submitted in a manner specified by
the department shall become effective five business days after
submission, unless the department requests a review of the action.
Each oversight board shall designate an official to whom the
department may make those requests and who shall provide the
department with the telephone number and e-mail contact information
for the purpose of communicating with the department pursuant to this
subdivision. Except as otherwise provided in this part, in the event
that the department requests a review of a given oversight board
action, it shall have 40 days from the date of its request to approve
the oversight board action or return it to the oversight board for
reconsideration and the oversight board action shall not be effective
until approved by the department. In the event that the department
returns the oversight board action to the oversight board for
reconsideration, the oversight board shall resubmit the modified
action for department approval and the modified oversight board
action shall not become effective until approved by the department.
If the department reviews a Recognized Obligation Payment Schedule,
the department may eliminate or modify any item on that schedule
prior to its approval. The county auditor-controller shall reflect
the actions of the department in determining the amount of property
tax revenues to allocate to the successor agency. The department
shall provide notice to the successor agency and the county
auditor-controller as to the reasons for its actions. To the extent
that an oversight board continues to dispute a determination with the
department, one or more future Recognized Obligation Payment
Schedules may reflect any resolution of that dispute. The department
may also agree to an amendment to a Recognized Obligation Payment
Schedule to reflect a resolution of a disputed item; however, this
shall not affect a past allocation of property tax or create a
liability for any affected taxing entity.
(i) Oversight boards shall have fiduciary responsibilities to
holders of enforceable obligations and the taxing entities that
benefit from distributions of property tax and other revenues
pursuant to Section 34188. Further, the provisions of Division 4
(commencing with Section 1000) of the Government Code shall apply to
oversight boards. Notwithstanding Section 1099 of the Government
Code, or any other law, any individual may simultaneously be
appointed to up to five oversight boards and may hold an office in a
city, county, city and county, special district, school district, or
community college district.
(j) Except as specified in subdivision (q), commencing on and
after July 1, 2018, in each county where more than one oversight
board was created by operation of the act adding this part, there
shall be only one oversight board, which shall be staffed by the
county auditor-controller, by another county entity selected by the
county auditor-controller, or by a city within the county that the
county auditor-controller may select after consulting with the
department. Pursuant to Section 34183, the county auditor-controller
may recover directly from the Redevelopment Property Tax Trust Fund,
and distribute to the appropriate city or county entity,
reimbursement for all costs incurred by it or by the city or county
pursuant to this subdivision, which shall include any associated
startup costs. However, if only one successor agency exists within
the county, the county auditor-controller may designate the successor
agency to staff the oversight board. The oversight board is
appointed as follows:
(1) One member may be appointed by the county board of
supervisors.
(2) One member may be appointed by the city selection committee
established pursuant to Section 50270 of the Government Code. In a
city and county, the mayor may appoint one member.
(3) One member may be appointed by the independent special
district selection committee established pursuant to Section 56332 of
the Government Code, for the types of special districts that are
eligible to receive property tax revenues pursuant to Section 34188.
(4) One member may be appointed by the county superintendent of
education to represent schools if the superintendent is elected. If
the county superintendent of education is appointed, then the
appointment made pursuant to this paragraph shall be made by the
county board of education.
(5) One member may be appointed by the Chancellor of the
California Community Colleges to represent community college
districts in the county.
(6) One member of the public may be appointed by the county board
of supervisors.
(7) One member may be appointed by the recognized employee
organization representing the largest number of successor agency
employees in the county.
(k) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (j) that has not been
filled by July 15, 2018, or any member position that remains vacant
for more than 60 days.
( l ) Commencing on and after July 1, 2018, in each
county where only one oversight board was created by operation of the
act adding this part, then there will be no change to the
composition of that oversight board as a result of the operation of
subdivision (j).
(m) Any oversight board for a given successor agency, with the
exception of countywide oversight boards, shall cease to exist when
the successor agency has been formally dissolved pursuant to Section
34187. A county oversight board shall cease to exist when all
successor agencies subject to its oversight have been formally
dissolved pursuant to Section 34187.
(n) An oversight board may direct a successor agency to provide
additional legal or financial advice than what was given by agency
staff.
(o) An oversight board is authorized to contract with the county
or other public or private agencies for administrative support.
(p) On matters within the purview of the oversight board,
decisions made by the oversight board supersede those made by the
successor agency or the staff of the successor agency.
(q) (1) Commencing on and after July 1, 2018, in each county where
more than 40 oversight boards were created by operation of the act
adding this part, there shall be five oversight boards, which shall
each be staffed in the same manner as specified in subdivision (j).
The membership of each oversight board shall be as specified in
paragraphs (1) through (7), inclusive, of subdivision (j).
(2) The oversight boards shall be numbered one through five, and
their respective jurisdictions shall encompass the territory located
within the respective borders of the first through fifth county board
of supervisors districts, as those borders existed on July 1, 2018.
Except as specified in paragraph (3), each oversight board shall have
jurisdiction over each successor agency located within its borders.
(3) If a successor agency has territory located within more than
one county board of supervisors' district, the county board of
supervisors shall, no later than July 15, 2018, determine which
oversight board shall have jurisdiction over that successor agency.
The county board of supervisors or their designee shall report this
information to the successor agency and the department by the
aforementioned date.
(4) The successor agency to the former redevelopment agency
created by a county where more than 40 oversight boards were created
by operation of the act adding this part, shall be under the
jurisdiction of the oversight board with the fewest successor
agencies under its jurisdiction.
SEC. 12. Section 34179.7 of the Health and Safety Code is amended
to read:
34179.7. Upon full payment of the amounts determined in
subdivision (d) or (e) of Section 34179.6 as reported by the county
auditor-controller pursuant to subdivision (g) of Section 34179.6 and
of any amounts due as determined by Section 34183.5, or upon a final
judicial determination of the amounts due and confirmation that
those amounts have been paid by the county auditor-controller, or
upon entering into a written installment payment plan with the
department for payment of the amounts due, the department shall
issue, within five business days, a finding of completion of the
requirements of Section 34179.6 to the successor agency.
(a) Notwithstanding any other of law, if a successor agency fails
by December 31, 2015, to pay, or to enter into a written installment
payment plan with the department for the payment of, the amounts
determined in subdivision (d) or (e) of Section 34179.6, or the
amounts determined by Section 34183.5, the successor agency shall
never receive a finding of completion.
(b) If a successor agency, city, county, or city and county pays,
or enters into a written installment payment plan with the department
for the payment of the amounts determined in subdivision (d) or (e)
of Section 34179.6 or the amounts determined by Section 34183.5, and
the successor agency, city, county, or city and county subsequently
receives a final judicial determination that reduces or eliminates
the amounts determined, an enforceable obligation for the
reimbursement of the excess amounts paid shall be created and the
obligation to make any payments in excess of the amount determined by
a final judicial determination shall be canceled and be of no
further force or effect.
(c) If, upon consultation with the county auditor-controller, the
department finds that a successor agency, city, county, or city and
county has failed to fully make one or more payments agreed to in the
written installment payment plan, the following shall occur unless
the county auditor-controller reports within 10 business days that
the successor agency, city, county, or city and county has made the
entirety of the incomplete payment or payments:
(1) Section 34191.3, subdivision (b) of Section 34191.4, and
Section 34191.5 shall not apply to the successor agency.
(2) Oversight board actions taken under subdivision (b) of Section
34191.4 shall no longer be effective. Any loan agreements entered
into between the redevelopment agency and the city, county, or city
and county that created the redevelopment agency that were deemed
enforceable obligations pursuant to such oversight board actions
shall no longer be enforceable obligations.
(3) If the department has approved a long-range property
management plan for the successor agency, that plan shall no longer
be effective. Any property that has not been disposed of through the
plan prior to the nonpayment discussed in this subdivision shall be
disposed of pursuant to Section 34181.
(4) If applicable, the successor agency's Last and Final
Recognized Obligation Payment Schedule shall cease to be effective.
However, to ensure the flow of lawful payments to third parties is
not impeded, the Last and Final Recognized Obligation Payment
Schedule shall remain operative until the successor agency's next
Recognized Obligation Payment Schedule is approved and becomes
operative pursuant to Section 34177.
(d) Subdivision (c) shall not be construed to prevent the
department from working with a successor agency, city, county, or
city and county to amend the terms of a written installment payment
plan if the department determines the amendments are necessitated by
the successor agency's, city's, county's, or city and county's fiscal
situation.
SEC. 13. Section 34179.9 is added to the Health and Safety Code,
to read:
34179.9. (a) The city, county, or city and county that created
the former redevelopment agency shall return to the successor agency
all assets transferred to the city, county, or city and county
ordered returned pursuant to Section 34167.5.
(b) (1) The city, county, or city and county that created the
former redevelopment agency shall return to the successor agency all
cash and cash equivalents transferred to the city, county, or city
and county that were not required by an enforceable obligation as
determined pursuant to Sections 34179.5 and 34179.6.
(2) Any amounts required to be returned to the successor agency
under Sections 34179.5 and 34179.6, and paragraph (1) of this
subdivision, that were transferred to the city, county, or city and
county that created the former redevelopment agency as repayment for
an advance of funds made by the city, county, or city and county to
the former redevelopment agency or successor agency that was needed
to pay the former redevelopment agency's debt service or passthrough
payments may be placed on a Recognized Obligation Payment Schedule by
the successor agency for payment as an enforceable obligation
subject to the following conditions:
(A) The transfer to the city, county, or city and county by the
former redevelopment agency or successor agency as repayment for the
advance of funds occurred within 30 days of receipt of a duly
scheduled property tax distribution to the former redevelopment
agency by the county auditor-controller.
(B) The loan from the city, county, or city and county was
necessary because the former redevelopment agency or successor agency
had insufficient funds to pay for the former redevelopment agency's
debt service or passthrough payments.
(3) Paragraph (2) shall not apply if:
(A) The former redevelopment agency had insufficient funds as a
result of an unauthorized transfer of cash or cash equivalents to the
city, county, or city and county that created the former
redevelopment agency.
(B) The successor agency has received a finding of completion as
of the effective date of the act that added this section.
(C) The successor agency, the city, county, or city and county
that created the former redevelopment agency, or the successor agency'
s oversight board, is currently or was previously a party to
outstanding litigation contesting the department's determination
under subdivision (d) or (e) of Section 34179.6.
(c) The city, county, or city and county that created the former
redevelopment agency shall return to the successor agency any money
or assets transferred to the city, county, or city and county by the
successor agency that were not authorized pursuant to an effective
oversight board action or Recognized Obligation Payment Schedule
determination.
SEC. 14. Section 34180 of the Health and Safety Code is amended to
read:
34180. All of the following successor agency actions shall first
be approved by the oversight board:
(a) The establishment of new repayment terms for outstanding loans
where the terms have not been specified prior to the date of this
part. An oversight board shall not have the authority to reestablish
loan agreements between the successor agency and the city, county, or
city and county that formed the redevelopment agency except as
provided in Chapter 9 (commencing with Section 34191.1).
(b) The issuance of bonds or other indebtedness or the pledge or
agreement for the pledge of property tax revenues (formerly tax
increment prior to the effective date of this part) pursuant to
subdivision (a) of Section 34177.5.
(c) Setting aside of amounts in reserves as required by
indentures, trust indentures, or similar documents governing the
issuance of outstanding redevelopment agency bonds.
(d) Merging of project areas.
(e) Continuing the acceptance of federal or state grants, or other
forms of financial assistance from either public or private sources,
if that assistance is conditioned upon the provision of matching
funds, by the successor entity as successor to the former
redevelopment agency, in an amount greater than 5 percent.
(f) (1) If a city, county, or city and county wishes to retain any
properties or other assets for future redevelopment activities,
funded from its own funds and under its own auspices, it must reach a
compensation agreement with the other taxing entities to provide
payments to them in proportion to their shares of the base property
tax, as determined pursuant to Section 34188, for the value of the
property retained.
(2) If no other agreement is reached on valuation of the retained
assets, the value will be the fair market value as of the 2011
property tax lien date as determined by an independent appraiser
approved by the oversight board.
(g) Establishment of the Recognized Obligation Payment Schedule.
(h) A request by the successor agency to enter or reenter into an
agreement with the city, county, or city and county that formed the
redevelopment agency that it is succeeding pursuant to Section 34178.
An oversight board shall not have the authority to reestablish loan
agreements between the successor agency and the city, county, or city
and county that formed the redevelopment agency except as provided
in Chapter 9 (commencing with Section 34191.1). Any actions to
establish or reestablish any other agreements that are authorized
under this part, with the city, county, or city and county that
formed the redevelopment agency are invalid until they are included
in an approved and valid Recognized Obligation Payment Schedule.
(i) A request by a successor agency or taxing entity to pledge, or
to enter into an agreement for the pledge of, property tax revenues
pursuant to subdivision (b) of Section 34178.
(j) Any document submitted by a successor agency to an oversight
board for approval by any provision of this part shall also be
submitted to the county administrative officer, the county
auditor-controller, and the Department of Finance at the same time
that the successor agency submits the document to the oversight
board.
SEC. 15. Section 34181 of the Health and Safety Code is amended to
read:
34181. The oversight board shall direct the successor agency to
do all of the following:
(a) (1) Dispose of all assets and properties of the former
redevelopment agency; provided, however, that the oversight board may
instead direct the successor agency to transfer ownership of those
assets that were constructed and used for a governmental purpose,
such as roads, school buildings, parks, police and fire stations,
libraries, parking facilities and lots dedicated solely to public
parking, and local agency administrative buildings, to the
appropriate public jurisdiction pursuant to any existing agreements
relating to the construction or use of such an asset. Any
compensation to be provided to the successor agency for the transfer
of the asset shall be governed by the agreements relating to the
construction or use of that asset. Disposal shall be done
expeditiously and in a manner aimed at maximizing value. Asset
disposition may be accomplished by a distribution of income to taxing
entities proportionate to their property tax share from one or more
properties that may be transferred to a public or private agency for
management pursuant to the direction of the oversight board.
(2) "Parking facilities and lots dedicated solely to public
parking" do not include properties that generate revenues in excess
of reasonable maintenance costs of the properties.
(b) Cease performance in connection with and terminate all
existing agreements that do not qualify as enforceable obligations.
(c) Transfer housing assets pursuant to Section 34176.
(d) Terminate any agreement, between the dissolved redevelopment
agency and any public entity located in the same county, obligating
the redevelopment agency to provide funding for any debt service
obligations of the public entity or for the construction, or
operation of facilities owned or operated by such public entity, in
any instance where the oversight board has found that early
termination would be in the best interests of the taxing entities.
(e) Determine whether any contracts, agreements, or other
arrangements between the dissolved redevelopment agency and any
private parties should be terminated or renegotiated to reduce
liabilities and increase net revenues to the taxing entities, and
present proposed termination or amendment agreements to the oversight
board for its approval. The board may approve any amendments to or
early termination of those agreements if it finds that amendments or
early termination would be in the best interests of the taxing
entities.
(f) All actions taken pursuant to subdivisions (a) and (c) shall
be approved by resolution of the oversight board at a public meeting
after at least 10 days' notice to the public of the specific proposed
actions. The actions shall be subject to review by the department
pursuant to Section 34179 except that the department may extend its
review period by up to 60 days. If the department does not object to
an action subject to this section, and if no action challenging an
action is commenced within 60 days of the approval of the action by
the oversight board, the action of the oversight board shall be
considered final and can be relied upon as conclusive by any person.
If an action is brought to challenge an action involving title to or
an interest in real property, a notice of pendency of action shall be
recorded by the claimant as provided in Title 4.5 (commencing with
Section 405) of Part 2 of the Code of Civil Procedure within a 60-day
period.
SEC. 16. Section 34183 of the Health and Safety Code is amended to
read:
34183. (a) Notwithstanding any other law, from February 1, 2012,
to July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property Tax
Trust Fund as follows:
(1) (A) Subject to any prior deductions required by subdivision
(b), first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and school
entity an amount of property tax revenues in an amount equal to that
which would have been received under Section 33401, 33492.140,
33607, 33607.5, 33607.7, or 33676, as those sections read on January
1, 2011, or pursuant to any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, that would be in force during that fiscal year,
had the redevelopment agency existed at that time. The amount of the
payments made pursuant to this paragraph shall be calculated solely
on the basis of passthrough payment obligations, existing prior to
the effective date of this part and continuing as obligations of
successor entities, shall occur no later than May 16, 2012, and no
later than June 1, 2012, and each January 2 and June 1 thereafter.
Notwithstanding subdivision (e) of Section 33670, that portion of the
taxes in excess of the amount identified in subdivision (a) of
Section 33670, which are attributable to a tax rate levied by a
taxing entity for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing entity. The
amount of passthrough payments computed pursuant to this section,
including any passthrough agreements, shall be computed as though the
requirement to set aside funds for the Low and Moderate Income
Housing Fund was still in effect.
(B) Notwithstanding subdivision (b) of Section 33670, that portion
of the taxes in excess of the amount identified in subdivision (a)
of Section 33670, which are attributable to a property tax rate
approved by the voters of a city, county, city and county, or special
district to make payments in support of pension programs or in
support of capital projects and programs related to the State Water
Project, and levied in addition to the property tax rate limited by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution, shall be allocated to, and when collected shall be paid
into, the fund of that taxing entity, unless the amounts in question
are pledged as security for the payment of any indebtedness
obligation, as defined in subdivision (e) of Section 34171, and
needed for payment thereof. Notwithstanding any other law, all
allocations of revenues above one cent ($0.01) derived from the
imposition of a property tax rate, approved by the voters of a city,
county, city and county, or special district to make payments in
support of pension programs or in support of capital projects and
programs related to the State Water Project and levied in addition to
the property tax rate limited by subdivision (a) of Section 1 of
Article XIII A of the California Constitution, made by any county
auditor-controller prior to June 15, 2015, are valid and shall not be
affected by this section. A city, county, city and county, county
auditor-controller, successor agency, department, or affected taxing
entity shall not be subject to any claim for money, damages, or
reallocated revenues based on any allocation of such revenues above
one cent ($0.01) prior to June 15, 2015.
(2) Second, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for payments listed in its
Recognized Obligation Payment Schedule for the six-month fiscal
period beginning January 1, 2012, and July 1, 2012, and each January
2 and June 1 thereafter, in the following order of priority:
(A) Debt service payments scheduled to be made for tax allocation
bonds.
(B) Payments scheduled to be made on revenue bonds, but only to
the extent the revenues pledged for them are insufficient to make the
payments and only if the agency's tax increment revenues were also
pledged for the repayment of the bonds.
(C) Payments scheduled for other debts and obligations listed in
the Recognized Obligation Payment Schedule that are required to be
paid from former tax increment revenue.
(3) Third, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for the administrative cost
allowance, as defined in Section 34171, for administrative costs set
forth in an approved administrative budget for those payments
required to be paid from former tax increment revenues.
(4) Fourth, on June 1, 2012, and each January 2 and June 1
thereafter, any moneys remaining in the Redevelopment Property Tax
Trust Fund after the payments and transfers authorized by paragraphs
(1) to (3), inclusive, shall
be distributed to local agencies and school entities in
accordance with Section 34188. The only exception shall be for moneys
remaining in the Redevelopment Property Tax Trust Fund that are
attributable to a property tax rate approved by the voters of a city,
county, city and county, or special district to make payments in
support of pension programs or in support of capital projects and
programs related to the State Water Project, and levied in addition
to the property tax rate limited by subdivision (a) of Section I of
Article XIII A of the California Constitution. The county
auditor-controller shall return these particular remaining moneys to
the levying taxing entity.
(b) If the successor agency reports, no later than April 1, 2012,
and May 1, 2012, and each December 1 and May 1 thereafter, to the
county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation
Retirement Fund, from other funds transferred from each redevelopment
agency, and from funds that have or will become available through
asset sales and all redevelopment operations, are insufficient to
fund the payments required by paragraphs (1) to (3), inclusive, of
subdivision (a) in the next six-month fiscal period, the county
auditor-controller shall notify the Controller and the Department of
Finance no later than 10 days from the date of that notification. The
county auditor-controller shall verify whether the successor agency
will have sufficient funds from which to service debts according to
the Recognized Obligation Payment Schedule and shall report the
findings to the Controller. If the Controller concurs that there are
insufficient funds to pay required debt service, the amount of the
deficiency shall be deducted first from the amount remaining to be
distributed to taxing entities pursuant to paragraph (4), and if that
amount is exhausted, from amounts available for distribution for
administrative costs in paragraph (3). If an agency, pursuant to the
provisions of Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15,
or 33688 or as expressly provided in a passthrough agreement entered
into pursuant to Section 33401, made passthrough payment obligations
subordinate to debt service payments required for enforceable
obligations, funds for servicing bond debt may be deducted from the
amounts for passthrough payments under paragraph (1), as provided in
those sections, but only to the extent that the amounts remaining to
be distributed to taxing entities pursuant to paragraph (4) and the
amounts available for distribution for administrative costs in
paragraph (3) have all been exhausted.
(c) The county treasurer may loan any funds from the county
treasury to the Redevelopment Property Tax Trust Fund of the
successor agency for the purpose of paying an item approved on the
Recognized Obligation Payment Schedule at the request of the
Department of Finance that are necessary to ensure prompt payments of
redevelopment agency debts. An enforceable obligation is created for
repayment of those loans.
(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax Trust
Fund by presenting an invoice therefor to the county
auditor-controller who shall set aside sufficient funds for and
disburse the claimed amounts prior to making the next distributions
to the taxing entities pursuant to Section 34188. Subject to the
approval of the Director of Finance, the budget of the Controller may
be augmented to reflect the reimbursement, pursuant to Section 28.00
of the Budget Act.
(e) Within 10 days of each distribution of property tax, the
county auditor-controller shall provide a report to the department
regarding the distribution for each successor agency that includes
information on the total available for allocation, the passthrough
amounts and how they were calculated, the amounts distributed to
successor agencies, and the amounts distributed to taxing entities in
a manner and form specified by the department. This reporting
requirement shall also apply to distributions required under
subdivision (b) of Section 34183.5.
SEC. 17. Section 34186 of the Health and Safety Code is amended to
read:
34186. (a) (1) Differences between actual payments and past
estimated obligations on recognized obligation payment schedules
shall be reported in subsequent Recognized Obligation Payment
Schedules and shall adjust the amount to be transferred to the
Redevelopment Obligation Retirement Fund pursuant to this part. These
estimates and accounts, as well as cash balances, shall be subject
to review by the county auditor-controller. The county
auditor-controller's review shall be subject to the department's
review and approval.
(2) Audits initiated by the Controller pursuant to this section
prior to July 1, 2015, shall be continued by the Controller and
completed no later than June 30, 2016. Nothing in this section shall
be construed in a manner which precludes, or in any way restricts,
the Controller from conducting audits of successor agencies pursuant
to Section 12410 of the Government Code.
(b) Differences between actual passthrough obligations and
property tax amounts and the amounts used by the county
auditor-controller in determining the amounts to be allocated under
Sections 34183 and 34188 for a prior six-month or annual period,
whichever is applicable, shall be applied as adjustments to the
property tax and passthrough amounts in subsequent periods as they
become known. County auditor-controllers shall not delay payments
under this part to successor agencies or taxing entities based on
pending transactions, disputes, or for any other reason, other than a
court order, and shall use the Recognized Obligation Payment
Schedule approved by the department and the most current data for
passthroughs and property tax available prior to the statutory
distribution dates to make the allocations required on the dates
required.
(c) Commencing on October 1, 2018, and each October 1 thereafter,
the differences between actual payments and past estimated
obligations on a Recognized Obligation Payment Schedule shall be
submitted by the successor agency to the county auditor-controller
for review. The county auditor-controller shall provide to the
department in a manner of the department's choosing a review of the
differences between actual payments and past estimated obligations,
including cash balances, no later than February 1, 2019, and each
February 1 thereafter.
SEC. 18. Section 34187 of the Health and Safety Code is amended to
read:
34187. (a) (1) Commencing May 1, 2012, whenever a recognized
obligation that had been identified in the Recognized Payment
Obligation Schedule is paid off or retired, either through early
payment or payment at maturity, the county auditor-controller shall
distribute to the taxing entities, in accordance with the provisions
of the Revenue and Taxation Code, all property tax revenues that were
associated with the payment of the recognized obligation.
(2) Notwithstanding paragraph (1), the department may authorize a
successor agency to retain property tax that otherwise would be
distributed to affected taxing entities pursuant to this subdivision,
to the extent the department determines the successor agency
requires those funds for the payment of enforceable obligations. Upon
making a determination, the department shall provide the county
auditor-controller with information detailing the amounts that it has
authorized the successor agency to retain. Upon determining the
successor agency no longer requires additional funds pursuant to this
subdivision, the department shall notify the successor agency and
the county auditor-controller. The county auditor-controller shall
then distribute the funds in question to the affected taxing entities
in accordance with the provisions of the Revenue and Taxation Code.
(b) When all of the enforceable obligations have been retired or
paid off, all real property has been disposed of pursuant to Section
34181 or 34191.4, and all outstanding litigation has been resolved,
the successor agency shall, within 30 days of meeting the
aforementioned criteria, submit to the oversight board a request,
with a copy of the request to the county auditor-controller, to
formally dissolve the successor agency. The oversight board shall
approve the request within 30 days, and shall submit the request to
the department.
(c) If a redevelopment agency was not allocated property tax
revenue pursuant to either subdivision (b) of Section 16 of Article
XVI of the California Constitution or Section 33670 prior to February
1, 2012, the successor agency shall, no later than November 1, 2015,
submit to the oversight board a request to formally dissolve the
successor agency. The oversight board shall approve this request
within 30 days, and shall submit the request to the department.
(d) The department shall have 30 days to approve or deny a request
submitted pursuant to subdivisions (b) or (c).
(e) When the department has approved a request to formally
dissolve a successor agency, the successor agency shall take both of
the following steps within 100 days of the department's notification:
(1) Dispose of all remaining assets as directed by the oversight
board. Any proceeds from the disposition of assets shall be
transferred to the county auditor-controller for distribution to the
affected taxing entities pursuant to Section 34183.
(2) Notify the oversight board that it has complied with paragraph
(1).
(f) Upon receipt of the notification required in paragraph (2) of
subdivision (e), the oversight board shall verify all obligations
have been retired or paid off, all outstanding litigation has been
resolved, and all remaining assets have been disposed of with any
proceeds remitted to the county auditor-controller for distribution
to the affected taxing entities. Within 14 days of verification, the
oversight board shall adopt a final resolution of dissolution for the
successor agency, which shall be effective immediately. This
resolution shall be submitted to the sponsoring entity, the county
auditor-controller, the State Controller's Office, and the department
by electronic means and in a manner of each entity's choosing.
(g) Subdivisions (b) to (f), inclusive, does not apply to those
entities specifically recognized as already dissolved by the
department by October 1, 2015.
(h) When all enforceable obligations have been retired or paid off
as specified in subdivision (b), all passthrough payment obligations
required pursuant to Sections 33401, 33492.140, 33607, 33607.5,
33607.7, and 33676, or any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, shall cease, and no property tax shall be
allocated to the Redevelopment Property Tax Trust Fund for that
agency. The Legislature finds and declares that this subdivision is
declaratory of existing law.
(i) When a successor agency is finally dissolved under subdivision
(b), with respect to any existing community facilities district
formed by a redevelopment agency, the legislative body of the city or
county that formed the redevelopment agency shall become the
legislative body of the community facilities district, and any
existing obligations of the former redevelopment agency or its
successor agency, in its capacity as the legislative body of the
community facilities district, shall become the obligations of the
new legislative body of the community facilities district. This
subdivision shall not be construed to result in the continued payment
of any of the passthrough payment obligations identified in
subdivision (h).
SEC. 19. Section 34189 of the Health and Safety Code is amended to
read:
34189. (a) Commencing on the effective date of this part, all
provisions of the Community Redevelopment Law that depend on the
allocation of tax increment to redevelopment agencies, including, but
not limited to, Sections 33445, 33640, 33641, and 33645, and
subdivision (b) of Section 33670, shall be inoperative. Solely for
the purposes of the payment of enforceable obligations defined by
subparagraphs (A) to (G), inclusive, of paragraph (1) of subdivision
(d) of Section 34171 and subdivision (b) of Section 34191.4, and for
no other purpose whatsoever, a successor agency is not subject to the
limitations relating to time, number of tax dollars, or any other
matters set forth in Sections 33333.2, 33333.4, and 33333.6.
Notwithstanding any other provision in this section, this subdivision
shall not result in the restoration or continuation of funding for
projects whose contractual terms specified that project funding would
cease once the limitations specified in any of Section 33333.2,
33333.4, or 33333.6 were realized.
(b) To the extent that a provision of Part 1 (commencing with
Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), and Part 1.7 (commencing with
Section 34100) conflicts with this part, the provisions of this part
shall control. Further, if a provision of Part 1 (commencing with
Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), or Part 1.7 (commencing with Section
34100) provides an authority that the act adding this part is
restricting or eliminating, the restriction and elimination
provisions of the act adding this part shall control.
(c) It is intended that the provisions of this part shall be read
in a manner as to avoid duplication of payments.
SEC. 20. Section 34191.3 of the Health and Safety Code is amended
to read:
34191.3. (a) Notwithstanding Section 34191.1, the requirements
specified in subdivision (e) of Section 34177 and subdivision (a) of
Section 34181 shall be suspended, except as those provisions apply to
the transfers for governmental use, until the Department of Finance
has approved a long-range property management plan pursuant to
subdivision (b) of Section 34191.5, at which point the plan shall
govern, and supersede all other provisions relating to, the
disposition and use of the real property assets of the former
redevelopment agency. If the department has not approved a plan by
January 1, 2016, subdivision (e) of Section 34177 and subdivision (a)
of Section 34181 shall be operative with respect to that successor
agency.
(b) If the department has approved a successor agency's long-range
property management plan prior to January 1, 2016, the successor
agency may amend its long-range property management plan once, solely
to allow for retention of real properties that constitute "parking
facilities and lots dedicated solely to public parking" for
governmental use pursuant to Section 34181. An amendment to a
successor agency's long-range property management plan under this
subdivision shall be submitted to its oversight board for review and
approval pursuant to Section 34179, and any such amendment shall be
submitted to the department prior to July 1, 2016.
(c) (i) Notwithstanding paragraph (2) of subdivision (a) of
Section 34181, for purposes of amending a successor agency's
long-range property management plan under subdivision (b), "parking
facilities and lots dedicated solely to public parking" do not
include properties that, as of the date of transfer pursuant to the
amended long-range property management plan, generate revenues in
excess of reasonable maintenance costs of the properties.
(ii) Notwithstanding any other law, a city, county, city and
county, or parking district shall not be required to reimburse or pay
a successor agency for any funds spent on or before December 31,
2010, by a former redevelopment agency to design and construct a
parking facility.
SEC. 21. Section 34191.4 of the Health and Safety Code is amended
to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the
department:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.5
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) For purposes of this section, "loan agreement" means any of
the following:
(A) Loans for money entered into between the former redevelopment
agency and the city, county, or city and county that created the
former redevelopment agency under which the city, county, or city and
county that created the former redevelopment agency transferred
money to the former redevelopment agency for use by the former
redevelopment agency for a lawful purpose, and where the former
redevelopment agency was obligated to repay the money it received
pursuant to a required repayment schedule.
(B) An agreement between the former redevelopment agency and the
city, county, or city and county that created the former
redevelopment agency under which the city, county, or city and county
that created the former redevelopment agency transferred a real
property interest to the former redevelopment agency for use by the
former redevelopment agency for a lawful purpose and the former
redevelopment agency was obligated to pay the city, county, or city
and county that created the former redevelopment agency for the real
property interest.
(C) (i) An agreement between the former redevelopment agency and
the city, county, or city and county that created the former
redevelopment agency under which the city, county, or city and county
that created the former redevelopment agency contracted with a third
party on behalf of the former redevelopment agency for the
development of infrastructure in connection with a redevelopment
project as identified in a redevelopment project plan and the former
redevelopment agency was obligated to reimburse the city, county, or
city and county that created the former redevelopment agency for the
payments made by the city, county, or city and county to the third
party.
(ii) The total amount of loan repayments to a city, county, or
city and county that created the former redevelopment agency for all
loan agreements described in clause (i) shall not exceed five million
dollars ($5,000,000).
(3) If the oversight board finds that the loan is an enforceable
obligation, any interest on the remaining principal amount of the
loan that was previously unpaid after the original effective date of
the loan shall be recalculated from the date of origination of the
loan as approved by the redevelopment agency on a quarterly basis, at
a simple interest rate of 3 percent. The recalculated loan shall be
repaid to the city, county, or city and county in accordance with a
defined schedule over a reasonable term of years. Moneys repaid shall
be applied first to the principal, and second to the interest. The
annual loan repayments provided for in the recognized obligation
payment schedules shall be subject to all of the following
limitations:
(A) Loan repayments shall not be made prior to the 2013-14 fiscal
year. Beginning in the 2013-14 fiscal year, the maximum repayment
amount authorized each fiscal year for repayments made pursuant to
this subdivision and paragraph (7) of subdivision (e) of Section
34176 combined shall be equal to one-half of the increase between the
amount distributed to the taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year, provided, however, that calculation of the
amount distributed to taxing entities during the 2012-13 base year
shall not include any amounts distributed to taxing entities pursuant
to the due diligence review process established in Sections 34179.5
to 34179.8, inclusive. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176. Distributions to the
Low and Moderate Income Housing Asset Fund are subject to the
reporting requirements of subdivision (f) of Section 34176.1.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of the
Supplemental Educational Revenue Augmentation Fund have been paid.
Transfers to the Low and Moderate Income Housing Asset Fund are
subject to the reporting requirements of subdivision (f) of Section
34176.1.
(c) (1) (A) Notwithstanding Section 34177.3 or any other
conflicting provision of law, bond proceeds derived from bonds issued
on or before December 31, 2010, in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency. The expenditure of bond proceeds described in this
subparagraph pursuant to an excess bond proceeds obligation shall
only require the approval by the oversight board of the successor
agency.
(B) If remaining bond proceeds derived from bonds issued on or
before December 31, 2010, cannot be spent in a manner consistent with
the bond covenants pursuant to subparagraph (A), the proceeds shall
be used at the earliest date permissible under the applicable bond
covenants to defease the bonds or to purchase those same outstanding
bonds on the open market for cancellation.
(2) Bond proceeds derived from bonds issued on or after January 1,
2011, in excess of the amounts needed to satisfy approved
enforceable obligations, shall be used in a manner consistent with
the original bond covenants, subject to the following provisions:
(A) No more than 5 percent of the proceeds derived from the bonds
may be expended, unless the successor agency meets the criteria
specified in subparagraph (B).
(B) If the successor agency has an approved Last and Final
Recognized Obligation Payment Schedule pursuant to Section 34191.6,
the agency may expend no more than 20 percent of the proceeds derived
from the bonds, subject to the following adjustments:
(i) If the bonds were issued during the period of January 1, 2011,
to January 31, 2011, inclusive, the successor agency may expend an
additional 25 percent of the proceeds derived from the bonds, for a
total authorized expenditure of no more than 45 percent.
(ii) If the bonds were issued during the period of February 1,
2011, to February 28, 2011, inclusive, the successor agency may
expend an additional 20 percent of the proceeds derived from the
bonds, for a total authorized expenditure of no more than 40 percent.
(iii) If the bonds were issued during the period of March 1, 2011,
to March 31, 2011, inclusive, the successor agency may expend an
additional 15 percent of the proceeds derived from the bonds, for a
total authorized expenditure of no more than 35 percent.
(iv) If the bonds were issued during the period of April 1, 2011,
to April 30, 2011, inclusive, the successor agency may expend an
additional 10 percent of the proceeds derived from the bonds, for a
total authorized expenditure of no more than 30 percent.
(v) If the bonds were issued during the period of May 1, 2011, to
May 31, 2011, inclusive, the successor agency may expend an
additional 5 percent of the proceeds derived from the bonds, for a
total authorized expenditure of no more than 25 percent.
(C) Remaining bond proceeds that cannot be spent pursuant to
subparagraphs (A) and (B) shall be used at the at the earliest date
permissible under the applicable bond covenants to defease the bonds
or to purchase those same outstanding bonds on the open market for
cancellation.
(D) The expenditure of bond proceeds described in this paragraph
shall only require the approval by the oversight board of the
successor agency.
(3) If a successor agency provides the oversight board and the
department with documentation that proves, to the satisfaction of
both entities, that bonds were approved by the former redevelopment
agency prior to January 31, 2011, but the issuance of the bonds was
delayed by the actions of a third-party metropolitan regional
transportation authority beyond January 31, 2011, the successor
agency may expend the associated bond proceeds in accordance with
clause (i) of subparagraph (B) of paragraph (2) of this section.
(4) Any proceeds derived from bonds issued by a former
redevelopment agency after December 31, 2010, that were issued, in
part, to refund or refinance tax-exempt bonds issued by the former
redevelopment agency on or before December 31, 2010, and which are in
excess of the amount needed to refund or refinance the bonds issued
on or before December 31, 2010, may be expended by the successor
agency in accordance with clause (i) of subparagraph (B) of paragraph
(2) of this section. The authority provided in this paragraph is
conditioned on the successor agency providing to its oversight board
and the department the
resolution by the former redevelopment agency approving the issuance
of the bonds issued after December 31, 2010.
(d) This section shall apply retroactively to actions occurring on
or after June 28, 2011. The amendment of this section by the act
adding this subdivision shall not result in the denial of a loan
under subdivision (b) that has been previously approved by the
department prior to the effective date of the act adding this
subdivision. Additionally, the amendment of this section by the act
adding this subdivision shall not impact the judgments, writs of
mandate, and orders entered by the Sacramento Superior Court in the
following lawsuits: (1) City of Watsonville v. California Department
of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (2)
City of Glendale v. California Department of Finance, et al. (Sac.
Superior Ct. Case No. 34-2014-80001924).
SEC. 22. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. If the former
redevelopment agency did not have real properties, the successor
agency shall prepare a long-range property management plan certifying
that the successor agency does not have real properties of the
former redevelopment agency for disposition or use. The plan shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) (i) If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.
(ii) For purposes of this subparagraph, the term "identified in an
approved redevelopment plan" includes properties listed in a
community plan or a five-year implementation plan.
(iii) The department or an oversight board may require approval of
a compensation agreement or agreements, as described in subdivision
(f) of Section 34180, prior to any transfer of property pursuant to
this subparagraph, provided, however, that a compensation agreement
or agreements may be developed and executed subsequent to the
approval process of a long-range property management plan.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds shall be distributed as property tax to the taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
(d) The department shall only consider whether the long-range
property management plan makes a good faith effort to address the
requirements set forth in subdivision (c).
(e) The department shall approve long-range property management
plans as expeditiously as possible.
(f) Actions to implement the disposition of property pursuant to
an approved long-range property management plan shall not require
review by the department.
SEC. 23. Section 34191.6 is added to the Health and Safety Code,
to read:
34191.6. (a) Beginning January 1, 2016, successor agencies may
submit a Last and Final Recognized Obligation Payment Schedule for
approval by the oversight board and the department if all of the
following conditions are met:
(1) The remaining debt of a successor agency is limited to
administrative costs and payments pursuant to enforceable obligations
with defined payment schedules including, but not limited to, debt
service, loan agreements, and contracts.
(2) All remaining obligations have been previously listed on a
Recognized Obligation Payment Schedule and approved for payment by
the department pursuant to subdivision (m) or (o) of Section 34177.
(3) The successor agency is not a party to outstanding or
unresolved litigation. Notwithstanding this provision, successor
agencies that are party to Los Angeles Unified School Dist. v. County
of Los Angeles (2010) 181 Cal.App.4th 414 or Los Angeles Unified
School District v. County of Los Angeles (2013) 217 Cal.App.4th 597,
may submit a Last and Final Recognized Obligation Payment Schedule.
(b) A successor agency that meets the conditions in subdivision
(a) may submit a Last and Final Recognized Obligation Payment
Schedule to its oversight board for approval at any time. The
successor agency may then submit the oversight board-approved Last
and Final Recognized Obligation Payment Schedule to the department
and only in a manner provided by the department. The Last and Final
Recognized Obligation Payment Schedule shall not be effective until
reviewed and approved by the department as provided for in
subdivision (c). The successor agency shall also submit a copy of the
oversight board-approved Last and Final Recognized Obligation
Payment Schedule to the county administrative officer, the county
auditor-controller, and post it to the successor agency's Internet
Web site at the same time that the successor agency submits the Last
and Final Recognized Obligation Payment Schedule to the department.
(1) The Last and Final Recognized Obligation Payment Schedule
shall list the remaining enforceable obligations of the successor
agency in the following order:
(A) Enforceable obligations to be funded from the Redevelopment
Property Tax Trust Fund.
(B) Enforceable obligations to be funded from bond proceeds or
enforceable obligations required to be funded from other legally or
contractually dedicated or restricted funding sources.
(C) Loans or deferrals authorized for repayment pursuant to
subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171
or Section 34191.4.
(2) The Last and Final Recognized Obligation Payment Schedule
shall include the total outstanding obligation and a schedule of
remaining payments for each enforceable obligation listed pursuant to
subparagraphs (A) and (B) of paragraph (1), and the total
outstanding obligation and interest rate of 4 percent, for loans or
deferrals listed pursuant to subparagraph (C) of paragraph (1).
(c) The department shall have 100 days to review the Last and
Final Recognized Obligation Payment Schedule submitted pursuant to
subdivision (b). The department may make any amendments or changes to
the Last and Final Recognized Obligation Payment Schedule, provided
the amendments or changes are agreed to by the successor agency in
writing. If the successor agency and the department cannot come to an
agreement on the proposed amendments or changes, the department
shall issue a letter denying the Last and Final Recognized Obligation
Payment Schedule. All Last and Final Recognized Obligation Payment
Schedules approved by the department shall become effective on the
first day of the subsequent Redevelopment Property Tax Trust Fund
distribution period. If the Last and Final Recognized Obligation
Payment Schedule is approved less than 15 days before the date of the
property tax distribution, the Last and Final Recognized Obligation
Payment Schedule shall not be effective until the subsequent
Redevelopment Property Tax Trust Fund distribution period.
(1) Upon approval by the department, the Last and Final Recognized
Obligation Payment Schedule shall establish the maximum amount of
Redevelopment Property Tax Trust Funds to be distributed to the
successor agency for each remaining fiscal year until all obligations
have been fully paid.
(2) (A) Successor agencies may submit no more than two requests to
the department to amend the approved Last and Final Recognized
Obligation Payment Schedule. Requests shall first be approved by the
oversight board and then submitted to the department for review. A
request shall not be effective until reviewed and approved by the
department. The request shall be provided to the department by
electronic means and in a manner of the department's choosing. The
department shall have 100 days from the date received to approve or
deny the successor agency's request. All amended Last and Final
Recognized Obligation Payment Schedules approved by the department
shall become effective in the subsequent Redevelopment Property Tax
Trust Fund distribution period. If an amended Last and Final
Recognized Obligation Payment Schedule is approved less than 15 days
before the date of the property tax distribution, the Last and Final
Recognized Obligation Payment Schedule shall not be effective until
the subsequent Redevelopment Property Tax Trust Fund distribution
period.
(B) Notwithstanding paragraph (2), there shall be no limitation on
the number of Last and Final Recognized Obligation Payment Schedule
amendment requests that may be submitted to the department by
successor agencies that are party to either of the cases specified in
paragraph (3) of subdivision (a), provided those additional
amendments are submitted for the sole purpose of complying with final
judicial determinations in those cases.
(3) Any revenues, interest, and earnings of the successor agency
not authorized for use pursuant to the approved Last and Final
Recognized Obligation Payment Schedule shall be remitted to the
county auditor-controller for distribution to the affected taxing
entities. Notwithstanding Sections 34191.3 and 34191.5, proceeds from
the disposition of real property subsequent to the approval of the
Last and Final Recognized Obligation Payment Schedule that are not
necessary for the payment of an enforceable obligation shall be
remitted to the county auditor-controller for distribution to the
affected taxing entities.
(4) A successor agency shall not expend more than the amount
approved for each enforceable obligation listed and approved on the
Last and Final Recognized Obligation Payment Schedule.
(5) If a successor agency receives insufficient funds to pay for
the enforceable obligations approved in the Last and Final Recognized
Obligation Payment Schedule in any given period, the city, county,
or city and county that created the redevelopment agency may loan or
grant funds to a successor agency for that period at the successor
agency's request for the sole purpose of paying for approved items on
the Last and Final Recognized Obligation Payment Schedule that would
otherwise go unpaid. Any loans provided pursuant to this paragraph
by the city, county, or city and county that created the
redevelopment agency shall not include an interest component.
Additionally, at the request of the department, the county treasurer
may loan any funds from the county treasury to the Redevelopment
Property Tax Trust Fund of the successor agency for the purpose of
paying an item approved on the Last and Final Recognized Obligation
Payment Schedule in order to ensure prompt payments of successor
agency debts. Any loans provided pursuant to this paragraph by the
county treasurer shall not include an interest component. A loan made
under this section shall be repaid from the source of funds approved
for payment of the underlying enforceable obligation in the Last and
Final Recognized Obligation Payment Schedule once sufficient funds
become available from that source. Payment of the loan shall not
increase the total amount of Redevelopment Property Tax Trust Fund
received by the successor agency as approved on the Last and Final
Recognized Obligation Payment Schedule.
(6) Notwithstanding subparagraph (B) of paragraph (6) of
subdivision (e) of Section 34176 and subparagraph (A) of paragraph
(3) of subdivision (b) of Section 34191.4, commencing on the date the
Last and Final Recognized Obligation Payment Schedule becomes
effective:
(A) The maximum repayment amount of the total principal and
interest on loans and deferrals authorized for repayment pursuant to
subparagraph (B) of paragraph (6) of subdivision (e) of Section 34176
or Section 34191.4 and listed and approved in the Last and Final
Recognized Obligation Payment Schedule shall be 15 percent of the
moneys remaining in the Redevelopment Property Tax Trust Fund after
the allocation of moneys in each six-month period pursuant to Section
34183 prior to the distributions under paragraph (4) of subdivision
(a) of Section 34183.
(B) If the calculation performed pursuant to subparagraph (A)
results in a lower repayment amount than would result from
application of the calculation specified in subparagraph (B) of
paragraph (6) of subdivision (e) of Section 34176 or subparagraph (A)
of paragraph (3) of subdivision (b) of Section 34191.4, the
successor agency may calculate its Last and Final Recognized
Obligation Payment Schedule loan repayments using the latter
calculation.
(7) Commencing on the effective date of the approved Last and
Final Recognized Obligation Payment Schedule, the successor agency
shall not prepare or transmit Recognized Obligation Payment Schedules
pursuant to Section 34177.
(8) Commencing on the effective date of the approved Last and
Final Recognized Obligation Payment Schedule, oversight board
resolutions shall not be submitted to the department pursuant to
subdivision (h) of Section 34179. This paragraph shall not apply to
oversight board resolutions necessary for refunding bonds pursuant to
Section 34177.5, long-range property management plans pursuant to
Section 34191.5, amendments to the Last and Final Recognized
Obligation Payment Schedule under paragraph (2) of subdivision (c),
and the final oversight board resolutions pursuant to Section 34187.
(d) The county auditor-controller shall do the following:
(1) Review the Last and Final Recognized Obligation Payment
Schedule and provide any objection to the inclusion of any items or
amounts to the department.
(2) After the Last and Final Recognized Obligation Payment
Schedule is approved by the department, the county auditor-controller
shall continue to allocate moneys in the Redevelopment Property Tax
Trust Fund pursuant to Section 34183; however, the allocation from
the Redevelopment Property Tax Trust Funds in each fiscal period,
after deducting auditor-controller administrative costs, shall be
according to the following order of priority:
(A) Allocations pursuant to paragraph (1) of subdivision (a) of
Section 34183.
(B) Debt service payments scheduled to be made for tax allocation
bonds that are listed and approved in the Last and Final Recognized
Obligation Payment Schedule.
(C) Payments scheduled to be made on revenue bonds that are listed
and approved in the Last and Final Recognized Obligation Payment
Schedule, but only to the extent the revenues pledged for them are
insufficient to make the payments and only if the agency's tax
increment revenues were also pledged for the repayment of bonds.
(D) Payments scheduled for debts and obligations listed and
approved in the Last and Final Recognized Obligation Payment Schedule
to be paid from the Redevelopment Property Tax Trust Fund pursuant
to subparagraph (A) of paragraph (1) of subdivision (b) and
subdivision (c).
(E) Payments listed and approved pursuant to subparagraph (A) of
paragraph (1) of subdivision (b) and subdivision (c) that were
authorized but unfunded in prior periods.
(F) Repayment in the amount specified in paragraph (6) of
subdivision (c) of loans and deferrals listed and approved on the
Last and Final Recognized Obligation Payment Schedule pursuant to
subparagraph (C) of paragraph (1) of subdivision (b) and subdivision
(c).
(G) Any moneys remaining in the Redevelopment Property Tax Trust
Fund after the payments and transfers authorized by subparagraphs (A)
to (F), inclusive, shall be distributed to taxing entities in
accordance with paragraph (4) of subdivision (a) of Section 34183.
(3) If the successor agency reports to the county
auditor-controller that the total available amounts in the
Redevelopment Property Tax Trust Fund will be insufficient to fund
their current or future fiscal year obligations, and if the county
auditor-controller concurs that there are insufficient funds to pay
the required obligations, the county auditor-controller may
distribute funds pursuant to subdivision (b) of Section 34183.
(4) The county auditor-controller shall no longer distribute
property tax to the Redevelopment Property Tax Trust Fund once the
aggregate amount of property tax allocated to the successor agency
equals the total outstanding obligation approved in the Last and
Final Recognized Obligation Payment Schedule.
(e) Successor agencies with a Last and Final Recognized Payment
Schedule approved by the department may amend or modify existing
contracts, agreements, or other arrangements identified on the Last
and Final Recognized Obligation Payment Schedule which the department
has already determined to be enforceable obligations, provided:
(1) The outstanding payments owing from the successor agency are
not accelerated or increased in any way.
(2) Any amendment to extend terms shall not include an extension
beyond the last scheduled payment for the enforceable obligations
listed and approved on the Last and Final Recognized Obligation
Payment Schedule.
(3) This subdivision shall not be construed as authorizing
successor agencies to create new or additional enforceable
obligations or otherwise increase, directly or indirectly, the amount
of Redevelopment Property Tax Trust Funds allocated to the successor
agency by the county auditor-controller.
SEC. 24. Section 96.11 of the Revenue and Taxation Code is amended
to read:
96.11. Notwithstanding any other provision of this article, for
purposes of property tax revenue allocations, the county auditor of a
county for which a negative sum was calculated pursuant to
subdivision (a) of former Section 97.75 as that section read on
September 19, 1983, shall, in reducing the amount of property tax
revenue that otherwise would be allocated to the county by an amount
attributable to that negative sum, do all of the following:
(a) For the 2011-12 fiscal year, apply a reduction amount that is
equal to the lesser of either of the following:
(1) The reduction amount that was determined for the 2010-11
fiscal year.
(2) The reduction amount that is determined for the 2011-12 fiscal
year.
(b) For the 2012-13 fiscal year, apply a reduction amount that is
equal to the lesser of either of the following:
(1) The reduction amount that was determined in subdivision (a)
for the 2011-12 fiscal year.
(2) The reduction amount that is determined for the 2012-13 fiscal
year.
(c) For the 2013-14 fiscal year and for the 2014-15 fiscal year,
apply a reduction amount that is determined on the basis of the
reduction amount applied for the immediately preceding fiscal year.
(d) For the 2015-16 fiscal year and each fiscal year thereafter,
the county auditor shall not apply a reduction amount.
SEC. 25. Section 96.24 is added to the Revenue and Taxation Code,
to read:
96.24. Notwithstanding any other law, the property tax
apportionment factors applied in allocating property tax revenues in
the County of San Benito for each fiscal year through the 2000-01
fiscal year, inclusive, are deemed to be correct. Notwithstanding the
audit time limits specified in paragraph (3) of subdivision (c) of
Section 96.1, the county auditor shall make the allocation
adjustments identified in the State Controller's audit of the County
of San Benito for the 2001-02 fiscal year pursuant to the other
provisions of paragraph (3) of subdivision (c) of Section 96.1. For
the 2002-03 fiscal year and each fiscal year thereafter, property tax
apportionment factors applied in allocating property tax revenues in
the County of San Benito shall be determined on the basis of
property tax apportionment factors for prior fiscal years that have
been fully corrected and adjusted, pursuant to the review and
recommendation of the Controller, as would be required in the absence
of the preceding sentences.
SEC. 26. Section 98 of the Revenue and Taxation Code is amended to
read:
98. (a) In each county, other than the County of Ventura, having
within its boundaries a qualifying city, the computations made
pursuant to Section 96.1 or its predecessor section, for the 1989-90
fiscal year and each fiscal year thereafter, shall be modified as
follows:
With respect to tax rate areas within the boundaries of a
qualifying city, there shall be excluded from the aggregate amount of
"property tax revenue allocated pursuant to this chapter to local
agencies, other than for a qualifying city, in the prior fiscal year,"
an amount equal to the sum of the amounts calculated pursuant to the
TEA formula.
(b) (1) Except as otherwise provided in this section, each
qualifying city shall, for the 1989-90 fiscal year and each fiscal
year thereafter, be allocated by the auditor an amount determined
pursuant to the TEA formula.
(2) For each qualifying city, the auditor shall, for the 1989-90
fiscal year and each fiscal year thereafter, allocate the amount
determined pursuant to the TEA formula to all tax rate areas within
that city in proportion to each tax rate area's share of the total
assessed value in the city for the applicable fiscal year, and the
amount so determined shall be subtracted from the county's
proportionate share of property tax revenue for that fiscal year
within those tax rate areas.
(3) After making the allocations pursuant to paragraphs (1) and
(2), but before making the calculations pursuant to Section 96.5 or
its predecessor section, the auditor shall, for all tax rate areas in
the qualifying city, calculate the proportionate share of property
tax revenue allocated pursuant to this section and Section 96.1, or
their predecessor sections, in the 1989-90 fiscal year and each
fiscal year thereafter to each jurisdiction in the tax rate area.
(4) In lieu of making the allocations of annual tax increment
pursuant to subdivision (e) of Section 96.5 or its predecessor
section, the auditor shall, for the 1989-90 fiscal year and each
fiscal year thereafter, allocate the amount of property tax revenue
determined pursuant to subdivision (d) of Section 96.5 or its
predecessor section to jurisdictions in the tax rate area using the
proportionate shares derived pursuant to paragraph (3).
(5) For purposes of the calculations made pursuant to Section 96.1
or its predecessor section, in the 1990-91 fiscal year and each
fiscal year thereafter, the amounts that would have been allocated to
qualifying cities pursuant to this subdivision shall be deemed to be
the "amount of property tax revenue allocated in the prior fiscal
year."
(c) "TEA formula" means the Tax Equity Allocation formula, and
shall be calculated by the auditor for each qualifying city as
follows:
(1) For the 1988-89 fiscal year and each fiscal year thereafter,
the auditor shall determine the total amount of property tax revenue
to be allocated to all jurisdictions in all tax rate areas within the
qualifying city, before the allocation and payment of funds in that
fiscal year to a community redevelopment agency within the qualifying
city, as provided in subdivision (b) of Section 33670 of the Health
and Safety Code.
(2) The auditor shall determine the total amount of funds
allocated in each fiscal year to a community redevelopment agency in
accordance with subdivision (b) of Section 33670 of the Health and
Safety Code.
(3) The auditor shall determine the total amount of funds paid in
each fiscal year by a community redevelopment agency within the city
to jurisdictions other than the city pursuant to subdivision (b) of
Section 33401 and Section 33676 of the Health and Safety Code, and
the cost to the redevelopment agency of any land or facilities
transferred and any amounts paid to jurisdictions other than the city
to assist in the construction or reconstruction of facilities
pursuant to an agreement entered into under Section 33401 or 33445.5
of the Health and Safety Code.
(4) The auditor shall subtract the amount determined in paragraph
(3) from the amount determined in paragraph (2).
(5) The auditor shall subtract the amount determined in paragraph
(4) from the amount determined in paragraph (1).
(6) The amount computed in paragraph (5) shall be multiplied by
the following percentages in order to determine the TEA formula
amount to be distributed to the qualifying city in each fiscal year:
(A) For the
first fiscal year in which the qualifying city receives a
distribution pursuant to this section, 1 percent of the amount
determined in paragraph (5).
(B) For the second fiscal year in which the qualifying city
receives a distribution pursuant to this section, 2 percent of the
amount determined in paragraph (5).
(C) For the third fiscal year in which the qualifying city
receives a distribution pursuant to this section, 3 percent of the
amount determined in paragraph (5).
(D) For the fourth fiscal year in which the qualifying city
receives a distribution pursuant to this section, 4 percent of the
amount determined in paragraph (5).
(E) For the fifth fiscal year in which the qualifying city
receives a distribution pursuant to this section, 5 percent of the
amount determined in paragraph (5).
(F) For the sixth fiscal year in which the qualifying city
receives a distribution pursuant to this section, 6 percent of the
amount determined in paragraph (5).
(G) For the seventh fiscal year and each fiscal year thereafter in
which the city receives a distribution pursuant to this section, 7
percent of the amount determined in paragraph (5).
(d) "Qualifying city" means any city, except a qualifying city as
defined in Section 98.1, that incorporated prior to June 5, 1987, and
had an amount of property tax revenue allocated to it pursuant to
subdivision (a) of Section 96.1 or its predecessor section in the
1988-89 fiscal year that is less than 7 percent of the amount of
property tax revenue computed as follows:
(1) The auditor shall determine the total amount of property tax
revenue allocated to the city in the 1988-89 fiscal year.
(2) The auditor shall subtract the amount in the 1988-89 fiscal
year determined in paragraph (3) of subdivision (c) from the amount
determined in paragraph (2) of subdivision (c).
(3) The auditor shall subtract the amount determined in paragraph
(2) from the amount of property tax revenue determined in paragraph
(1) of subdivision (c).
(4) The auditor shall divide the amount of property tax revenue
determined in paragraph (1) of this subdivision by the amount of
property tax revenue determined in paragraph (3) of this subdivision.
(5) If the quotient determined in paragraph (4) of this
subdivision is less than 0.07, the city is a qualifying city. If the
quotient determined in that paragraph is equal to or greater than
0.07, the city is not a qualifying city.
(e) The auditor may assess each qualifying city its proportional
share of the actual costs of making the calculations required by this
section, and may deduct that assessment from the amount allocated
pursuant to subdivision (b). For purposes of this subdivision, a
qualifying city's proportional share of the auditor's actual costs
shall not exceed the proportion it receives of the total amounts
excluded in the county pursuant to subdivision (a).
(f) Notwithstanding subdivision (b), in any fiscal year in which a
qualifying city is to receive a distribution pursuant to this
section, the auditor shall reduce the actual amount distributed to
the qualifying city by the sum of the following:
(1) The amount of property tax revenue that was exchanged between
the county and the qualifying city as a result of negotiation
pursuant to Section 99.03.
(2) (A) The amount of revenue not collected by the qualifying city
in the first fiscal year following the city's reduction after
January 1, 1988, of the tax rate or tax base of any locally imposed
tax, except any tax that was imposed after January 1, 1988. In the
case of a tax that existed before January 1, 1988, this clause shall
apply only with respect to an amount attributable to a reduction of
the rate or base to a level lower than the rate or base applicable on
January 1, 1988. The amount so computed by the auditor shall
constitute a reduction in the amount of property tax revenue
distributed to the qualifying city pursuant to this section in each
succeeding fiscal year. That amount shall be aggregated with any
additional amount computed pursuant to this clause as the result of
the city's reduction in any subsequent year of the tax rate or tax
base of the same or any other locally imposed general or special tax.
(B) No reduction may be made pursuant to subparagraph (A) in the
case in which a local tax is reduced or eliminated as a result of
either a court decision or the approval or rejection of a ballot
measure by the voters.
(3) The amount of property tax revenue received pursuant to this
chapter in excess of the amount allocated for the 1986-87 fiscal year
by all special districts that are governed by the city council of
the qualifying city or whose governing body is the same as the city
council of the qualifying city with respect to all tax rate areas
within the boundaries of the qualifying city.
Notwithstanding this paragraph:
(A) Commencing with the 1994-95 fiscal year, the auditor shall not
reduce the amount distributed to a qualifying city under this
section by reason of that city becoming the successor agency to a
special district, that is dissolved, merged with that city, or
becomes a subsidiary district of that city, on or after July 1, 1994.
(B) Commencing with the 1997-98 fiscal year, the auditor shall not
reduce the amount distributed to a qualifying city under this
section by reason of that city withdrawing from a county free library
system pursuant to Section 19116 of the Education Code.
(4) Any amount of property tax revenues that has been exchanged
pursuant to Section 56842 of the Government Code, as that section
read on January 1, 1998, between the City of Rancho Mirage and a
community services district, the formation of which was initiated on
or after March 6, 1997, pursuant to Chapter 4 (commencing with
Section 56800) of Part 3 of Division 3 of Title 5 of the Government
Code.
(g) Notwithstanding any other provision of this section, in no
event may the auditor reduce the amount of ad valorem property tax
revenue otherwise allocated to a qualifying city pursuant to this
section on the basis of any additional ad valorem property tax
revenues received by that city pursuant to a services for revenue
agreement. For purposes of this subdivision, a "services for revenue
agreement" means any agreement between a qualifying city and the
county in which it is located, entered into by joint resolution of
that city and that county, under which additional service
responsibilities are exchanged in consideration for additional
property tax revenues.
(h) In any fiscal year in which a qualifying city is to receive a
distribution pursuant to this section, the auditor shall increase the
actual amount distributed to the qualifying city by the amount of
property tax revenue allocated to the qualifying city pursuant to
Section 19116 of the Education Code.
(i) If the auditor determines that the amount to be distributed to
a qualifying city pursuant to subdivision (b), as modified by
subdivisions (e), (f), and (g) would result in a qualifying city
having proceeds of taxes in excess of its appropriation limit, the
auditor shall reduce the amount, on a dollar-for-dollar basis, by the
amount that exceeds the city's appropriations limit.
(j) The amount not distributed to the tax rate areas of a
qualifying city as a result of this section shall be distributed by
the auditor to the county.
(k) Notwithstanding any other provision of this section, no
qualifying city shall be distributed an amount pursuant to this
section that is less than the amount the city would have been
allocated without the application of the TEA formula.
( l ) Notwithstanding any other provision of this
section, the auditor shall not distribute any amount determined
pursuant to this section to any qualifying city that has in the prior
fiscal year used any revenues or issued bonds for the construction,
acquisition, or development, of any facility which is defined in
Section 103(b)(4), 103(b)(5), or 103(b)(6) of the Internal Revenue
Code of 1954 prior to the enactment of the Tax Reform Act of 1986
(Public Law 99-514) and is no longer eligible for tax-exempt
financing.
(m) (1) The amendments made to this section, and the repeal of
Section 98.04, by the act that added this subdivision shall apply for
the 2006-07 fiscal year and each fiscal year thereafter.
(2) For the 2006-07 fiscal year and for each fiscal year
thereafter, all of the following apply:
(A) The auditor of the County of Santa Clara shall do both of the
following:
(i) Reduce the total amount of ad valorem property tax revenue
otherwise required to be allocated to qualifying cities in that
county by the ERAF reimbursement amount. This reduction for each
qualifying city in the county for each fiscal year shall be the
percentage share, of the total reduction required by this clause for
all qualifying cities in the county for the 2006-07 fiscal year, that
is equal to the proportion that the total amount of additional ad
valorem property tax revenue that is required to be allocated to the
qualifying city as a result of the act that added this subdivision
bears to the total amount of additional ad valorem property tax
revenue that is required to be allocated to all qualifying cities in
the county as a result of the act that added this subdivision.
(ii) Increase the total amount of ad valorem property tax revenue
otherwise required to be allocated to the county Educational Revenue
Augmentation Fund by the ERAF reimbursement amount.
(B) For purposes of this subdivision, "ERAF reimbursement amount"
means an amount equal to the difference between the following two
amounts:
(i) The portion of the annual tax increment that would have been
allocated from the county to the county Educational Revenue
Augmentation Fund for the applicable fiscal year if the act that
added this subdivision had not been enacted.
(ii) The portion of the annual tax increment that is allocated
from the county to the county Educational Revenue Augmentation Fund
for the applicable fiscal year.
(n) Notwithstanding subdivision (m) and except as provided in
paragraph (2), for the 2015-16 fiscal year and for each fiscal year
thereafter, all of the following shall apply:
(1) The auditor of the County of Santa Clara shall do both of the
following:
(A) (i) Reduce the total amount of ad valorem property tax revenue
otherwise required to be allocated to qualifying cities in that
county by the percentage specified in clause (ii) of the ERAF
reimbursement amount. This reduction for each qualifying city in the
county for each fiscal year shall be the percentage share, of the
total reduction required by this clause for all qualifying cities in
the county for the 2015-16 fiscal year, that is equal to the
proportion that the total amount of additional ad valorem property
tax revenue that is required to be allocated to the qualifying city
as a result of the act that added this subdivision bears to the total
amount of additional ad valorem property tax revenue that is
required to be allocated to all qualifying cities in the county as a
result of the act that added this subdivision.
(ii) (I) For the first fiscal year in which qualifying cities
receive an allocation pursuant to this subdivision, 80 percent.
(II) For the second fiscal year in which qualifying cities receive
an allocation pursuant to this subdivision, 60 percent.
(III) For the third fiscal year in which qualifying cities receive
an allocation pursuant to this subdivision, 40 percent.
(IV) For the fourth fiscal year in which qualifying cities receive
an allocation pursuant to this subdivision, 20 percent.
(V) For the fifth fiscal year in which qualifying cities receive
an allocation pursuant to this subdivision, and for each fiscal year
thereafter in which a qualifying city receives an allocation pursuant
to this subdivision, zero percent.
(B) Increase the total amount of ad valorem property tax revenue
otherwise required to be allocated to the county Educational Revenue
Augmentation Fund by the percentage specified in clause (ii) of
subparagraph (A) of the ERAF reimbursement amount.
(2) The auditor of the County of Santa Clara shall not adjust the
ERAF reimbursement amount by the percentages specified in clause (ii)
of subparagraph (A) of paragraph (1) in any fiscal year in which the
amount of moneys required to be applied by the state for the support
of school districts and community college districts is determined
pursuant to paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution.
(3) For purposes of this subdivision, "ERAF reimbursement amount"
has the same meaning as defined in subparagraph (B) of paragraph (2)
of subdivision (m).
SEC. 27. The Legislature hereby finds and declares all of the
following:
(a) The Department of Finance has provided written confirmation to
the successor agency to the Redevelopment Agency of the City and
County of San Francisco (successor agency) that the following
projects are finally and conclusively approved as enforceable
obligations:
(1) The Mission Bay North Owner Participation Agreement.
(2) The Mission Bay South Owner Participation Agreement.
(3) The Disposition and Development Agreement for Hunters Point
Shipyard Phase 1.
(4) The Candlestick Point-Hunters Point Shipyard Phase 2
Disposition and Development Agreement.
(5) The Transbay Implementation Agreement.
(b) The enforceable obligations described in subdivision (a)
require the successor agency to fund and develop affordable housing,
including 1,200 units in Transbay, 1,445 units in Mission Bay North
and Mission Bay South, and 1,358 units in Candlestick Point-Hunters
Point Shipyard Phases 1 and 2. In addition, the successor agency is
required to fund and develop public infrastructure in the Transbay
Redevelopment Project Area pursuant to the Transbay Implementation
Agreement, which is necessary to improve the area surrounding the
Transbay Transit Center.
(c) Due to insufficient property tax revenues in the Redevelopment
Property Tax Trust Fund, of the total number of affordable housing
units that the successor agency is obligated to fund and develop
under the enforceable obligations described in subdivision (a), the
successor agency has been able to finance the construction of only
642 units. Additionally, the successor agency has not been able to
fulfill its public infrastructure obligation under the Transbay
Implementation Agreement.
(d) The successor agency can more expeditiously construct the
3,361 additional units of required affordable housing and the
necessary infrastructure improvements if it is able to issue bonds or
incur other indebtedness secured by property tax revenues available
in the Redevelopment Property Tax Trust Fund to finance these
obligations.
(e) It is the intent of the Legislature to authorize the successor
agency to issue bonds or incur other indebtedness for the purpose of
financing the construction of affordable housing and infrastructure
required under the enforceable obligations described in subdivision
(a). These bonds or other indebtedness may be secured by property tax
revenues available in the successor agency's Redevelopment Property
Tax Trust Fund from those project areas that generated tax increment
for the Redevelopment Agency of the City and County of San Francisco
upon its dissolution, if the revenues are not otherwise obligated.
(f) Authorizing the successor agency to issue bonds or incur other
indebtedness to finance the enforceable obligations described in
subdivision (a) will financially benefit the affected taxing
entities, insofar as it will ensure that funds which would otherwise
flow to those entities as "residual" payments pursuant to paragraph
(4) of subdivision (a) of Section 34183 of the Health and Safety Code
will not be redirected to fund these enforceable obligations.
Instead, the enforceable obligations will be funded with the proceeds
of the bonds or debt issuances.
(g) The housing situation in the City and County of San Francisco
is unique, in that median rents and sales prices are among the
highest in the state. Because of this, the City and County of San
Francisco is currently facing an affordable housing crisis.
SEC. 28. (a) For the 2015-16 fiscal year, the sum of twenty-three
million seven hundred fifty thousand dollars ($23,750,000) is hereby
appropriated from the General Fund to the Department of Forestry and
Fire Protection. Provision of these funds to the department shall be
contingent on the County of Riverside agreeing to forgive amounts
owed to it by the Cities of Eastvale, Jurupa Valley, Menifee, and
Wildomar for services rendered to the cities between the respective
dates of their incorporation, and June 30, 2015. The county's
agreement to forgive these funds shall be forwarded to the
Chairperson of the Joint Legislative Budget Committee and to the
Director of Finance no later than December 1, 2015. The county's
agreement shall be accompanied by a summary of the actual amount owed
to the county by each of the cities for the period between the date
of their incorporation and June 30, 2015. The agreement reflects a
valid public purpose which benefits the cities, the county, and its
citizens.
(b) Within 30 days of receiving notification from the county as
specified in subdivision (a), the Director of Finance shall do all of
the following:
(1) Verify the accuracy of the county's summary of the amounts
owed to it by the four cities.
(2) Direct the Controller to transmit to the department, from the
appropriation provided in subdivision (a), an amount that corresponds
to the amount that the Director of Finance has verified pursuant to
paragraph (1).
(3) Initiate steps to reduce the amount of reimbursements provided
to the department in the Budget Act of 2015 by an amount that
corresponds to the amount provided to the department pursuant to
paragraph (2).
SEC. 29. (a) The Legislature finds and declares that the special
law contained in Section 9 of this measure is necessary and that a
general law cannot be made applicable within the meaning of Section
16 of Article IV of the California Constitution because of the unique
circumstances relating to affordable housing in the City and County
of San Francisco in conjunction with the affordable housing and
infrastructure requirements of the enforceable obligations specified
in this act.
(b) The Legislature finds and declares that the special law
contained in Section 25 of this measure is necessary and that a
general law cannot be made applicable within the meaning of Section
16 of Article IV of the California Constitution because of the
uniquely severe fiscal difficulties being suffered by the County of
San Benito.
(c) The Legislature finds and declares that the special law
contained in Section 26 of this measure is necessary and that a
general law cannot be made applicable within the meaning of Section
16 of Article IV of the California Constitution because of the unique
fiscal pressures being experienced by qualifying cities, as defined
in Section 98 of the Revenue and Taxation Code, in the County of
Santa Clara.
SEC. 30. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 31. This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.