BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 182|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 182
Author: Assembly Budget Committee
Amended: 9/4/09 in Senate
Vote: 27 - Urgency
ASSEMBLY FLOOR : Not relevant
SENATE FLOOR : 23-6, 9/12/09 (FAIL)
AYES: Alquist, Calderon, Cedillo, Corbett, DeSaulnier,
Ducheny, Florez, Hancock, Kehoe, Leno, Liu, Lowenthal,
Oropeza, Padilla, Pavley, Price, Romero, Simitian,
Steinberg, Wiggins, Wolk, Wright, Yee
NOES: Correa, Denham, Dutton, Hollingsworth, Runner,
Strickland
NO VOTE RECORDED: Aanestad, Ashburn, Benoit, Cogdill, Cox,
Harman, Huff, Maldonado, Negrete McLeod, Walters, Wyland
SUBJECT : Budget Act of 2008: community redevelopment
SOURCE : Author
DIGEST : This bill provides additional flexibility to
Redevelopment Agencies (RDA) in making the required
transfers and specifies the use of more recent RDA data in
the calculation of the revenue shift.
Senate Floor Amendments delete the prior version of the
bill, which stated legislative intent to the Budget Act of
2009, and instead adds the current language.
CONTINUED
AB 182
Page
2
ANALYSIS : The Community Redevelopment Law authorizes the
establishment of redevelopment agencies in communities to
address the effects of blight, as defined, in blighted
areas in those communities known as project areas.
Section 16 of Article XVI of the California Constitution
authorizes a redevelopment agency to receive funding
through tax increments attributable to increases in
assessed property tax valuation of property in a project
area due to redevelopment. Not less than 20 percent of tax
increments generated from a project area are required to be
used by a redevelopment agency to increase and improve the
community's supply of low- and moderate-income housing.
Redevelopment agencies are required in the 2009-10 fiscal
year to remit to the county auditor an amount of revenue
for deposit in the Supplemental Educational Revenue
Augmentation Fund in each county for allocation to school
entities.
Existing law authorizes the agency, in order to make the
full allocation, to borrow the amount required to be
allocated to the Low and Moderate Income Housing Fund,
pursuant to existing law, unless executed contracts exist
that would be impaired if the agency reduced the amount
allocated to the Low and Moderate Income Housing Fund.
Under existing law, the amount of revenue a redevelopment
agency is required to remit to the county auditor during
the 2009-10 and 2010-11 fiscal years is determined in
accordance with specified calculations made by the Director
of Finance and is based, in part, on a specified report of
the Controller.
This bill makes the following statutory changes in the area
of community redevelopment in order to amend the 2009
Budget Act:
1.Low and Moderate Income Housing Fund Borrowing . To help
fund the 2009-10 and 2010-11 shifts to the Supplemental
Educational Revenue Augmentation Fund, existing law
authorizes RDAs to borrow from that year's contribution
to the Low and Moderate Income Housing Fund. Any
borrowing must be fully repaid within five years. This
bill additionally allows RDA's to borrow from the
AB 182
Page
3
existing balance in the Low and Moderate Income Housing
Fund for the purposes of making the 2009-10 transfer.
This borrowing would also have to be fully repaid within
five years.
2.Use of Updated Data . This bill allows the Department of
Finance to use the 2007-08 edition of the Controller's
Community Redevelopment Agencies Annual Report, should
that report be available in time for Director of
Finance's calculation of each RDA's obligation. If the
2007-08 edition of the report is not available, the
Director of Finance will use the 2006-07 report.
However, the Director of Finance would be required to
adjust the data in the 2006-07 report to exclude amounts
apportioned to any RDA from any territory that has been
deleted from any project area prior to August 1, 2009.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
JA:nl 10/12/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****