BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1641|
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THIRD READING
Bill No: AB 1641
Author: Hall (D)
Amended: 8/9/10 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 5-2, 6/22/10
AYES: Lowenthal, Ashburn, DeSaulnier, Pavley, Simitian
NOES: Huff, Harman
NO VOTE RECORDED: Kehoe, Oropeza
SENATE LOCAL GOVERNMENT COMMITTEE : 3-2, 6/30/10
AYES: Kehoe, DeSaulnier, Price
NOES: Cox, Aanestad
ASSEMBLY FLOOR : 46-26, 5/13/10 - See last page for vote
SUBJECT : Redevelopment and public housing
SOURCE : City of Los Angeles
DIGEST : This bill makes a finding those public housing
units over 50 years old may be blighted for purposes of
undertaking a redevelopment project.
Senate Floor Amendments of 8/9/10 requires that displaced
public housing tenants be housed in an appropriately sized
housing unit.
ANALYSIS : The Community Redevelopment Law allows local
governments to establish redevelopment project areas and
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capture all of the increase in property taxes that is
generated within a project area (referred to as "tax
increment") in order to address conditions of blight within
the project area.
The law requires redevelopment agencies to deposit 20
percent of tax increment funds into a Low & Moderate Income
Housing Fund (L&M Fund) to be used to increase, improve,
and preserve the community's supply of low and moderate
income housing at affordable housing cost. The other 80
percent of tax increment funds, known as economic
development funds, are to be used to eradicate blight.
Since 1994, existing law has defined blight for
redevelopment purposes as an area that is predominately
urbanized and characterized by one or more specified
conditions of physical blight and one or more conditions of
economic blight.
When a redevelopment project results in housing units being
demolished or removed from the market, existing law
requires that the redevelopment agency replace those units
that housed low- or moderate-income households within four
years with units affordable to those displaced. The
replacement units may be anywhere within the jurisdiction
of the redevelopment agency (i.e., within the city limits),
and they must remain affordable for 55 years for rental
units and 45 years for ownership units. In addition, those
actually displaced must be given priority in renting or
buying the replacement housing.
This bill:
1. Declares that a blighted area which contains
characteristics of physical and economic light may also
include housing constricted as a government-owned
project that was constructed before January 1, 1960.
2. Requires a redevelopment project area described above to
include the replacement, on at least a one-to-one basis,
of all existing public housing units. These replacement
units shall be:
A. For at least 55 years, affordable to and
occupied by extremely low, very low, and lower
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income households at the same or lower income level
as the households displaced from the public housing
units.
B. A unit type and size as required by the
displaced household as described in the United
States Department of Housing and Urban
Development's "Public Housing Occupancy guidebook."
C. Affordable to each displaced household that
chooses to relocate to a replacement unit, such
that the rent does not exceed 30 percent of the
income of that household.
D. Located either in the project area or within
five miles of the parcel containing the public
housing that is being replaced.
3. Households displaced shall be given priority for a
permanent replacement dwelling at the initial time of
relocation, unless the household members have decided
voluntarily not to accept the replacement unit.
4. Permits a redevelopment project area undertaken at a
public housing site to also include market-rate housing,
retail, commercial, industrial, educational,
recreational, and other uses appropriate to serve the
residents of the area plus public improvements inside or
adjacent to the project area.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/9/10)
City of Los Angeles (source)
Los Angeles County Supervisor Mark Ridley-Thomas
ARGUMENTS IN SUPPORT : The author's office introduced
this bill at the request of the City of Los Angeles, which
wants to declare at least two of it public housing
complexes to be redevelopment project areas. Built over 50
years ago, these housing projects include on a single large
site thousands of housing units, typically bungalows, which
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are on city-owned land. Some of these housing projects
have suffered from decades of disrepair and neglect.
Through the redevelopment project or projects, the city
will replace all of the housing in each project with a
mixed-use development that includes affordable and market
rate housing, retail and commercial facilities, and public
amenities.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Bass, Beall, Block,
Blumenfield, Bradford, Brownley, Buchanan, Charles
Calderon, Carter, Chesbro, Conway, Coto, Davis, De La
Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes,
Galgiani, Hall, Hayashi, Hernandez, Hill, Huffman, Jones,
Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava,
Portantino, Ruskin, Salas, Saldana, Solorio, Swanson,
Torlakson, Torrico, Yamada, John A. Perez
NOES: Anderson, Bill Berryhill, Tom Berryhill, Blakeslee,
Cook, DeVore, Emmerson, Fuller, Gaines, Garrick, Gilmore,
Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,
Niello, Nielsen, Norby, Silva, Audra Strickland, Torres,
Tran, Villines
NO VOTE RECORDED: Caballero, Fletcher, Furutani, Hagman,
V. Manuel Perez, Skinner, Smyth, Vacancy
JJA:do 8/10/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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