BILL ANALYSIS
AB 269
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 269 (Mullin)
As Amended July 13, 2004
Majority vote
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|ASSEMBLY: |78-0 |(January 29, |SENATE: |28-6 |(August 25, 2004) |
| | |2004) | | | |
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|COMMITTEE VOTE: |8-0 |(August 26, 2004) |RECOMMENDATION: |Concur |
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Original Committee Reference: H. & C.D.
SUMMARY : Allows any redevelopment agency within San Mateo County
to participate in a joint powers authority for the purpose of
pooling low- and moderate-income housing funds (L&M funds) for
affordable housing.
The Senate amendments recast the Assembly version of this bill to
allow any redevelopment agency within San Mateo County to
participate in a joint powers authority (JPA) for the purpose of
pooling L&M funds subject to the following conditions:
Eligibility to participate:
1)Require the host jurisdiction of the agency have a housing
element that is current and that has been certified by the
Department of Housing and Community Development (HCD).
2)Require the host jurisdiction has met 40% of its regional housing
need for low- and very low-income households in the current or
previous housing element cycle.
3)Require that the agency must not owe money to its L&M fund.
4)Require the agency to have met its replacement housing obligation
or contractually committed funds to meet those obligations.
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Transfer of funds:
1)Provide that no more than 25% of the agency's L&M funds may be
transferred to the JPA.
2)Require each participating agency must hold a public hearing at
least 45 days prior to the transfer of L&M funds to the JPA.
Expenditure of funds by the JPA:
1)Require funds be used within the territorial jurisdiction of a
participating agency in San Mateo County on property within
one-half mile of the San Mateo County Transit District, the San
Mateo County Transportation Authority or the Peninsula Corridor
JPA right-of-way.
2)Require funds be used for the direct costs constructing,
substantially rehabilitating, or preserving the affordability of
low and very low income housing.
3)Prohibit funds from being used for planning and administrative
costs, offsite improvements, or fees or exactions levied solely
on funded project.
4)Prohibit funds from being used to construct a development in a
census tract that has more than 50% of its population comprised
of racial minorities or low-income families.
5)Require HCD verify each proposed use of funds to ensure
compliance with the provisions of this bill.
6)Require that the JPA expend or encumber and transferred within
two years. If not, the funds are returned to the donor agency
and deemed excess surplus.
7)Require that the JPA submit an annual report to HCD documenting
funds received and funds allocated or expended.
8)Require that the JPA is subject to the replacement housing
requirements, relocation requirements, and all other provisions
that would otherwise apply to the use of L&M funds by the agency
directly.
9)Provides that no new JPA may be created nor additional funds
received by an existing JPA after January 2009. The bill sunsets
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on January 1, 2010.
AS PASSED BY THE ASSEMBLY , this bill allowed redevelopment agencies
within San Mateo County to use their L&M funds anywhere within the
unincorporated territory or within the incorporated limits of any
city within San Mateo County. Specifically, this bill :
1)Provided that the redevelopment agencies within San Mateo County
may only use L&M funds outside their project area upon a
resolution of the agency and Board of Supervisors that the use
will benefit the project area. L&M funds may be transferred to a
city if the agency and Board of Supervisors find all of the
following:
a) Both the county and city have housing elements that comply
with the law;
b) The development receiving funds does not result in any
residential displacement;
c) The development receiving funds shall be rental, providing
affordable units to low- and very low-income households;
d) The development is in an area with a need for additional
affordable housing;
e) That Article XXXIV, if applicable, (Public Housing Project
Law) permits the development; and,
f) The city has certified that its redevelopment agency (if
one exists) is not in violation for failure to spend excess
surplus housing funds.
2)Provided that if San Mateo County L&M funds are used within a
city all of the following must apply:
a) The funds shall be used only for the design and
construction of housing that contains units affordable to low-
and moderate-income persons and located on property that has
been turned over by the San Mateo County Transit Authority
along the El Camino Real Transit Corridor in San Mateo County;
b) If less than all the units are affordable to low- and
moderate-income households, any agency assistance shall not
exceed the amount needed to make housing affordable to such
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households;
c) The units in the development affordable to low- and
moderate-income households shall remain affordable for a
period of at least 55 years with covenants and restrictions
that run with the land;
d) That developments will not be located in a census tract
where more than 50% of its population is very low income;
e) That assisted developments be located on sites suitable for
multi-family housing near transportation;
f) That developed units can not be treated as meeting the
regional housing needs allocation under both the city's and
county's housing element;
g) The city receiving funds has approved the development; and,
h) That the aggregate of units assisted by the county over
each five-year period shall include at least 10% that are
affordable to households earning 30% or less of area median
income, and at least 40% that are affordable to very
low-income households.
3)Stated that unique circumstances exist in San Mateo County that
justify the enactment of this bill.
4)Stated, among other things, that San Mateo County has high
housing costs and has a transit corridor for the CalTrain that is
ideal for affordable transit oriented development.
FISCAL EFFECT : Unknown
COMMENTS : Redevelopment agencies' L&M funds are one of the largest
sources of affordable housing money in California. Redevelopment
agencies are required by California state law to deposit 20% of
their annual tax increment revenues into a L&M fund, and spend the
money to increase, improve and preserve the community's supply of
low- and moderate-income housing. Statewide, in 2000-01, this
set-aside requirement resulted in the deposit of $225 million in
property tax increment revenues into the agencies' L&M funds. An
additional $337 million came from accrued interest, transfers, and
bond proceeds.
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Redevelopment officials spend their L&M funds for a variety of
housing activities, including land acquisition, financing for the
acquisition, rehabilitation, or new construction of multifamily
housing developments, on- or off-site improvements, first-time
homebuyer assistance, and home rehabilitation loans.
Except as noted below, redevelopment agencies do not have authority
to spend monies, including L&M Funds, outside the community which
established the agency. Since some agencies do not want to assist
low- and moderate-income housing and others would welcome increased
revenues to do so, and because neither the housing nor the job
market is restricted by community boundaries, it has been suggested
that agencies should be authorized to transfer monies from their
L&M fund to nearby communities or agencies that are willing to use
them.
State law specifically allows for L&M funds to be spent inside or
outside a project area, but within the territorial jurisdiction of
the agency, upon a finding that the use will be of benefit to the
project area.
According to the author, the vision for building along the CalTrain
right-of-way is transit oriented, smart growth in-fill development.
The purpose of this bill is to authorize redevelopment agencies
within San Mateo County to pool L&M funds for the purpose of
directing those funds outside of the specific project area from
which they were derived, to be used for low- and very low-income
housing development along the CalTrain transit corridor. This
bill, according to the author, builds on the recognition that
unlike other communities, San Mateo County has a unique level of
countywide cooperation and collaboration in planning efforts.
According to the author, 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.
Analysis Prepared by : Hubert Bower / H. & C.D. / (916) 319-2085
FN: 0008927