BILL NUMBER: AB 269 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 27, 2004
PASSED THE SENATE AUGUST 25, 2004
AMENDED IN SENATE JULY 13, 2004
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, 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 40% of very low and low-income housing needs to create and
participate in a joint powers authority in order to pool low- and
moderate-income housing funds. 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 1/2 of a mile of the San Mateo County Transit
District, San Mateo County Transportation Authority, or 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.
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 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 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 housing element
certified by the Department of Housing and Community Development and
has met 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 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 territorial jurisdiction of a participating agency in San
Mateo County on property provided by the San Mateo County Transit
District, the San Mateo County Transportation Authority, or the
Peninsula Corridor Joint Powers Authority and located within one-half
of a mile of the San Mateo County Transit District, the San Mateo
County Transportation Authority, or 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
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,
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 territorial jurisdiction
of a participating agency within the County of San Mateo, within
one-half of a mile of the San Mateo County Transit District, the San
Mateo County Transportation Authority, or the Peninsula Corridor
Joint Powers Authority right-of-way on property provided by any of
these entities.
(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) 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.