BILL ANALYSIS
AB 1641
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
AB 1641 (Hall) - As Amended: April 5, 2010
SUBJECT : Redevelopment: City of Los Angeles public housing
projects
SUMMARY : Establishes a special process for the redevelopment
agency of Los Angeles to facilitate the redevelopment of public
housing projects that are 50 years or older. Specifically, this
bill :
1)Defines a "public housing project" as a public housing project
in the City of Los Angeles that is owned by the Housing
Authority of the City of Los Angeles and was built prior to
January 1, 1960.
2)Provides that a public housing project as defined above may
constitute blight.
3)Adds the" redevelopment of public housing" to the meaning of
"redevelopment."
4)Defines "redevelopment of public housing" as redevelopment
that results in the removal or rehabilitation and replacement
of existing public housing project buildings with
master-planned, mixed-income, and mixed-use projects that do
the following:
a) Includes replacement on at least a one-to-one basis of
all existing public housing units with publicly or
privately owned units inside or outside the project area
containing and equal or greater number of bedrooms as the
replaced housing units;
b) The replacement units must be occupied by very low and
low income people at an affordable housing cost in the same
or lower income level as the persons displaced from the
public housing;
c) It may include additional privately owned housing units
that are available to and occupied by low and moderate
income persons and families, including very-low income
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families and individuals at an affordable housing cost;
d) May include work force market rate housing units, retail
services, commercial, industrial, educational,
recreational, and other uses that are appropriate to serve
the residents of the area; and
e) Subjects the construction of privately owned components
of the project to applicable community benefits
requirements of the redevelopment agency and housing
authority.
EXISTING LAW :
1)Requires a redevelopment agency to prepare a relocation plan
or method for families and individuals who are temporarily or
permanently displaced by the removal of housing in a project
area (Health & Safety Code 33411).
2)Provides no low or moderate income persons may be displaced by
the removal of housing until the redevelopment agency has
determined that there are suitable housing units that are
ready and available to be occupancy at comparable rents
(Health & Safety Code Section 33411.1).
3)Requires low and moderate income persons to be given the first
right of refusal to purchase or rent new units produced in the
project area. The redevelopment agency must create a list of
low and moderate income residents that qualify for this right
(Health & Safety Code Section 33411.3).
4)Requires permanent housing be available to displaced low and
moderate income residents within three years of the time
occupants are displaced and during the time that units are
being made available, replacement housing at a comparable rent
must be made available to displaced residents (Health & Safety
Code Section 33412).
5)Requires the redevelopment agency to replace or cause to be
replaced, an equal number of low and moderate income housing
units, with an equal or greater number of bedrooms, as the
number that are removed or destroyed in a project area.
Housing units must be built inside the territorially
jurisdiction of the redevelopment agency. Requires 100% of
the housing units to be provided at the same income levels or
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at lower income levels than the units destroyed or
removed.(Health & Safety Code Section 33413).
FISCAL EFFECT : None.
COMMENTS :
Background : Community Redevelopment Law (CRL) requires
redevelopment agencies to insure that low and moderate income
housing units are replaced, if they are destroyed or removed as
part of the redevelopment of a project area. Units are required
to be replaced on a one-to-one basis, with an equal or greater
number of bedrooms as those removed from the project area.
Redevelopment agencies are required to develop a relocation plan
for displaced low and moderate income residents. Prior to
destroying or removing low and moderate income units, the
redevelopment agency must make sure that qualified residents are
relocated to replacement units.
Need for the bill : According to the sponsor, the Los Angeles
County Redevelopment Agency (LACRA), LACRA is authorized under
the state community redevelopment law to act in areas of the
city that have been designated by the city council as being
eligible for redevelopment. After making findings required by
law and following the many required procedures, the LACRA and
city council may adopt redevelopment plans for areas of the city
that need revitalization. In order to justify the creation of
these areas, LACRA must demonstrate that the conditions of the
neighborhood, specifically the buildings (both residential and
commercial), are blighted.
Since units within these neighborhoods are considered federally
funded public housing developments, the housing authority is
obligated under its operating agreement with the U.S. Department
of Housing and Urban Development (Public Housing Act of 1937) to
maintain the units in decent, sanitary and safe conditions. By
determining that the neighborhood and specifically the
residential units are "blighted," LACRA would be making a
determination that would call into question the housing
authority's compliance with its operating agreements. This would
be highly problematic and jeopardize the operating subsidy that
the authority receives for these housing units and, thereby,
endanger the housing for families living within public housing.
When the federal government announced the closure of surplus
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military bases in the 1990's and transferred ownership to local
governments, the California Legislature amended the CRL to allow
for the expedited adoption of redevelopment plans to provide for
the accelerated conversion of these former military bases into
productive civilian uses. The "Military Base Conversion
Redevelopment Agencies" law made it possible for cities and
counties in California to place these targeted areas back on the
tax roles and authorized these areas into new commercial,
industrial and residential uses, including affordable housing.
A similar approach is needed for Los Angeles' older public
housing projects. By seeking state legislation, that would
apply the precedent of the military base conversion statute to
the redevelopment of public housing sites, the LACRA and Housing
Authority of the City of Los Angeles would be able to establish
a test program in South Los Angeles where public housing
projects such as Jordan Downs and Nickerson Gardens in Watts,
which combined consist of 1,700 units of housing, may be
converted into well-designed privately owned mixed-income
communities, while ensuring the continued affordability of
replacement housing at least equal in number to the existing
housing in the project area.
Arguments in opposition : The Western Center on Law & Poverty
(WCLP) is opposed to this bill unless it is amended. In their
letter, they state "we are at a loss to comprehend the need for
AB 1641. We understand that there is concern that labeling a
public housing development as blighted may have repercussions
with the U.S. Department of Housing and Urban Development. But
the bill (page 3, lines 20-21) simply flat out declares that
public housing projects are "blighted." We do not see a blanket
pronouncement in California statute that public housing is per
se blighted as useful. Assuming that some other means of
authorizing redevelopment agency financing and activity can be
found for redeveloping public housing, we fail to understand why
the standard
redevelopment law cannot be applied." WCLP raises the following
issues, which if addressed appropriately in the bill, would
remove their opposition:
1) Provision providing for extremely low income replacement
housing;
2) That replacement housing is available to, and priority
for, all existing public housing authority residents;
3) That replacement housing is made by an equal bedroom
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size per each unit lost (v. cumulative number of bedrooms
in the development);
4) Replacement housing has a 55 year affordability
restrictions;
5) On-site one for one replacement housing; and
6) Adequate relocation requirements.
Staff comments : As proposed, the bill is unclear whether or not
the City of Los Angeles must comply with the requirements of
existing redevelopment law when removing and redeveloping
low-income housing, including developing a relocation plan,
requiring replacement of units be on a one-to-one basis, with an
equal or greater number of bedrooms as those removed from the
project area. The sponsor has indicated that it is their
intent to comply with the existing requirements of CRL. The
amendments below would make clear that the City of Los Angeles
must comply with CRL including providing one-to-one replacement
of units consistent with the income levels of existing tenants
including extremely-low income units. The amendments would also
require that the replacement housing be built and available to
be occupied by displaced residents before the public housing is
demolished or renovated.
Committee amendments:
1)Delete the contents of the bill.
2)Add Health & Safety Code Section 33038 and amend as follows:
Section 1. Section 33038 of the Health and Safety Code is
amended to read:
(a) It is found and declared that blighted areas may include
housing areas constructed as temporary government-owned
wartime housing projects constructed prior to January 1, 1960,
and that such areas may be characterized by one or more of the
conditions enumerated in Sections 33031 to 33034, inclusive.
(b) A redevelopment agency undertaking activities involving
property described in subdivision (a) shall comply with all of
the requirements of this part, except as specifically modified
in subdivision (c).
(c) In addition to the requirements specified in subdivision
(b):
(1) The project shall include the replacement, on at least a
one-to-one basis, of all existing public housing units. The
replacement dwelling units shall be made available to, and
occupied by, extremely low, very low and low income households
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at the same or lower income level as the household displaced
from the public housing units, for at least 55 years.
(2) The replacement dwelling units:
(A) May be either publicly- or privately-owned.
(B) Shall be located either inside the project area, or within a
5-mile radius of the parcel containing the public housing that
is being replaced.
(C) Shall have, for each income level described in paragraph
(1), an equal or greater number of bedrooms as the destroyed
or removed units.
(3) No household shall be displaced under this section unless
when being immediately relocated it is to a permanent
replacement dwelling unit created pursuant to this section.
This paragraph does not apply if the household, having been
given priority for a replacement dwelling unit under this
part, voluntarily chooses not to accept the replacement
dwelling unit.
(4) The project may include the development of additional
privately-owned housing units that will be available to and
occupied by persons and families of low and moderate income,
including very low income households, at an affordable housing
cost.
(5) The project may also include workforce market-rate housing
units, retail services, commercial, industrial, educational,
recreational and other uses as may be appropriate to serve the
residents of the area, and public improvements inside or
adjacent to the project area.
(6) The construction of any privately-owned components of the
project shall be subject to such community benefits
requirements as may be required by the redevelopment agency or
the housing authority.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Los Angeles (sponsor)
Opposition
California Rural Legal Assistance Foundation (oppose, unless
amended)
Western Center on Law & Poverty (oppose, unless amended)
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Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085