BILL ANALYSIS
AB 1641
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ASSEMBLY THIRD READING
AB 1641 (Hall)
As Amended May 11, 2010
Majority vote
HOUSING 6-3
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|Ayes:|Torres, Arambula, | | |
| |Bradford, Eng, Saldana, | | |
| |Torlakson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gilmore, Knight, Tran | | |
| | | | |
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SUMMARY : Establishes that public housing projects over 50-years-old
are blighted if they meet the blight definition and provides the
requirements for redeveloping public housing projects.
Specifically, this bill :
1)Declares that a government-owned housing project constructed prior
to January 1, 1960, may be blighted if it is characterized by one
or more economic or physical blight characteristic.
2)Requires a redevelopment agency that is undertaking activities or
funding to replace blighted government-owned housing projects must
do all of the following:
a) Complies with all the requirements of Community
Redevelopment Law (CRL);
b) Provides replacement housing on at least a one-to-one basis
of all existing public housing units affordable and occupied by
extremely-low, very-low and lower-income households, at the
same or lower-income levels as the household displaced by the
removed public housing units;
c) Requires replacement housing to be restricted by income
level for at least 55-years and be provided by the unit type
required by the displaced household;
d) Requires that replacement units must be inside the project
area or within a five-mile radius of the public housing that is
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being replaced; and,
e) Requires households displaced by the removal of public
housing units to be offered permanent replacement housing at
the initial time of relocation, unless the household decides
not to accept the replacement housing.
3)Provides that replacement units may be either publicly or
privately owned.
4)Provides that additional privately owned housing units may be
available to moderate income households.
5)Provides that workforce market-rate housing units, retail
services, commercial, industrial, educational, recreational and
other uses may be included in the development to serve the
residents of the area and public improvements inside and adjacent
to the project area.
COMMENTS : 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.
According to the sponsor, the Los Angeles County Redevelopment
Agency (LACRA), LACRA is authorized under the CRL 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
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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
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.
If a redevelopment agency removed or a replaced public housing
project, this bill would require the agency to comply with all of
the provisions of the CRL. Replacement housing would be required on
one-to-one units consistent with the income levels of existing
tenants including extremely-low income units and at the unit size
required for that income level. The replacement housing would have
to be built and available to be occupied by displaced residents
before the public housing is demolished or renovated.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085 FN:
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