BILL NUMBER: AB 269 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 29, 2004
AMENDED IN SENATE JUNE 21, 2004
AMENDED IN ASSEMBLY JANUARY 20, 2004
AMENDED IN ASSEMBLY JANUARY 7, 2004
INTRODUCED BY Assembly Member Mullin
FEBRUARY 4, 2003
An act to add and repeal Section 33334.30 of the Health and Safety
Code, relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 269, as amended, Mullin. Redevelopment: San Mateo County.
The Community Redevelopment Law requires redevelopment agencies to
use not less than 20% of taxes allocated to the agency for low- and
moderate-income housing, as specified. These funds may be used
outside of the project area upon a finding by the agency and the
legislative body of the community that it will benefit the project
area.
This bill would authorize a redevelopment agency of a community
within San Mateo County that has a certified housing element and has
met an unspecified percent 40% of
its low- and moderate-income very low and
low-income housing needs to create and participate in a joint
powers authority in order to pool their low- and moderate-income
housing funds for affordable housing uses .
The bill would authorize the joint powers authority to loan,
grant, or advance transferred funds to a receiving entity for any
eligible housing development on specified property within 1/3 of a
mile of the Peninsula Corridor Joint Powers Authority right-of-way.
The bill would also require that specified conditions be met and
described in a mutually binding contract between the joint powers
authority and each participating agency and a receiving entity for
the use and transfer of pooled housing funds, and that the conditions
include, among other things, a determination by the department that
the community of each participating agency has adopted housing
elements that are in substantial compliance with existing
law and that the proposed use of pooled funds by the receiving entity
for these purposes is in compliance with these provisions.
The bill would, on or after January 1, 2009, prohibit a
participating agency from creating a new joint powers authority or
transferring funds to an existing joint powers authority unless a
later enacted statute deletes or extends that date.
This bill would repeal these provisions on January 1, 2010.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33334.30 is added to the Health and Safety
Code, to read:
33334.30. (a) The Legislature finds and declares all of the
following:
(1) The transfer of funds to a joint powers authority and the use
of pooled funds within the housing market area of the County of San
Mateo, within one-third of a mile of the El Camino Real
Corridor Peninsula Corridor Joint Powers Authority
right-of-way , on property provided by the San Mateo County
Transit Authority for the purpose of providing affordable housing
that is of benefit to the project area producing the tax increment.
(2) The cost and availability of land, geophysical and
environmental limitations, community patterns, and the lack of
financing make the availability of affordable housing more difficult
in San Mateo County.
(3)
(2) The cooperation of local agencies and the use of pooled
funds will result in more resources than would otherwise be available
for affordable housing.
(b) Notwithstanding any other provision of law, an agency of a
community within San Mateo County that has a certified
housing element certified by the Department of Housing
and Community Development and has met ____ percent
of its low and moderate 40 percent of its very low and
low-income housing needs may create and participate in a joint
powers authority for the purpose of pooling low- and
moderate-income housing funds for affordable housing uses.
Participating agencies may transfer not more than 25 percent of their
set-aside funds to a joint powers affordable housing
uses pursuant to this section. No participating agency may transfer
in any fiscal year more than 25 percent of the tax increment that is
deposited into the Low and Moderate Income Housing Fund to a joint
powers authority for use by the joint powers authority pursuant
to this section. The joint powers authority may determine the kinds
of housing projects or activities to be assisted, consistent with
this section. The joint powers authority may loan, grant, or advance
transferred housing funds from participating agencies to a receiving
entity for any eligible housing development within the
County of San Mateo within one-third of a mile of the El Camino Real
Corridor, on property provided by the San Mateo County Transit
Authority within the territorial jurisdiction of a
participating agency in San Mateo County on property provided by the
San Mateo County Transit Authority and located within one-third of a
mile of the Peninsula Corridor Joint Powers Authority right-of-way
, subject to the requirements of this section. In addition,
the agreement may authorize the joint powers authority to issue bonds
and to use the pooled funds to leverage other funds to assist
eligible developments, including loans from private institutions and
assistance provided by other governmental agencies.
(c) Each of the following conditions shall be met and described in
a mutually binding agreement between the joint powers authority and
each participating agency:
(1) The community of each participating agency shall have adopted
up-to-date housing elements an up-to-date
housing element pursuant to Article 10.6 (commencing with
Section 65580) of Division 1 of Title 7 of the Government Code,
and the housing elements have been determined to be in
that has been determined to be in substantial
compliance with the law by the Department of Housing and Community
Development.
(2) The community of each participating agency shall have met, in
its current or previous housing element cycle, ___
40 percent or more of its share of the region's
affordable housing needs, as defined in Section 65584 of the
Government Code, in each of the very low and lower income
categories of income groups defined in Section 50025.5.
(3) Each participating agency shall hold, at least 45 days prior
to the transfer of funds to the joint powers authority, a public
hearing, after providing notice pursuant to Section 6062 of the
Government Code to solicit public comments on the draft agreement.
(4) No housing funds shall be transferred from a project area that
has indebtedness to its Low and Moderate Income Housing Fund
pursuant to Section 33334.6.
(5) No housing funds shall be transferred from an agency that has
not met its need for replacement housing pursuant to Section 33413,
unless the agency has encumbered and contractually committed
sufficient funds to meet those requirements.
(6) Pooled funds shall be used within the county
territorial jurisdiction of a participating agency
within the County of San Mateo, within one-third of a mile of
the El Camino Real Corridor Peninsula
Corridor Joint Powers Authority right-of-way on property
provided by the San Mateo County Transit Authority.
(7) The agreement shall require compliance by the joint powers
authority with the provisions of this section.
(8) The joint powers authority shall ensure that the funds it
receives are used in accordance with this section.
(9) Funds transferred by an agency to a joint powers authority
pursuant to this section shall be expended or encumbered by the joint
powers authority for the purposes of this section within two years
of the transfer. Transferred funds not so expended or encumbered by
the joint powers authority within two years after the transfer shall
be returned to the original agency and shall be deemed excess surplus
funds as provided in, and subject to, the requirements of Sections
33334.10 and 33334.12. Excess surplus funds held by an agency may
not be transferred to a joint powers authority.
(10) The joint powers authority shall prepare and submit an annual
report to the department that documents the amount of housing funds
received and expended or allocated for specific housing assistance
activities consistent with Section 33080.4.
(d) Each of the following conditions shall be met and described in
a mutually binding contract between the joint powers authority and a
receiving entity:
(1) Pooled housing funds may only be used to pay for the direct
costs of constructing, substantially rehabilitating, or preserving
the affordability of housing units that are affordable to very low or
low-income households. Units assisted with pooled funds shall
remain available at affordable housing costs in accordance with
subdivision (f) of Section 33334.3.
(2) Except as provided in this section, pooled housing funds may
not be used in any way that is inconsistent with the requirements of
Section 33334.3. Pooled housing funds may not be used to pay for
planning and administrative costs, offsite improvements associated
with a housing project, or fees or exactions levied solely for
development projects constructed, substantially rehabilitated, or
preserved with pooled funds. The receiving entity shall be subject
to the same replacement requirements provided in Section 33413 and
any relocation requirements applicable pursuant to Section 7260 of
the Government Code.
(3) The joint powers authority shall make findings, based on
substantial evidence on the record, that each proposed use of pooled
funds will not exacerbate racial or economic segregation.
(3) Pooled housing funds may not be used to construct a
development in a census tract that currently has more than 50 percent
of its population comprised of racial minorities or low-income
families.
(4) The Department of Housing and Community Development has
evaluated each proposed use of pooled funds to construct,
substantially rehabilitate, or preserve the affordability of housing
and determined that the proposed use is in compliance with this
section. In considering whether a proposed use of funds will
exacerbate racial or economic segregation, the department shall
consider all of the following:
(A) The record of participating jurisdictions in meeting their
share of the regional need for very low and low-income households
allocated to the jurisdiction pursuant to Section 65584 of the
Government Code.
(B) The distance of the proposed housing from a redevelopment area
from which pooled funds originated.
(C) The income and ethnicity of the residents of the census tract
from which the pooled funds originated and in which the housing will
be located.
(D) The housing need and availability of sufficient sites for
housing within jurisdictions from which pooled funds originated.
(e) As used in this section, the following terms shall apply:
(1) "Housing funds" mean funds in or from the low- and
moderate-income housing fund established by an agency pursuant to
Section 33334.3.
(2) "Joint powers authority" means a joint powers authority
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code for the purposes of
receiving and using housing funds pursuant to this section.
(3) "Receiving entity" means any person, partnership, joint
venture, corporation, governmental body, or other organization
receiving housing funds from a joint powers authority for the purpose
of providing housing pursuant to this section.
(f) On or after January 1, 2009, no participating agency shall
create a new joint powers authority or transfer funds to an existing
joint powers authority pursuant to this section, unless a later
enacted statute, which is enacted before January 1, 2009, deletes or
extends that date.
(g) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted on or before January 1, 2010, deletes or
extends that date.