BILL ANALYSIS
AB 1641
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CONCURRENCE IN SENATE AMENDMENTS
AB 1641 (Hall)
As Amended August 9, 2010
Majority vote
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|ASSEMBLY: |46-26|(May 13, 2010) |SENATE: |21-13|(August 18, |
| | | | | |2010) |
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Original Committee Reference: PUB. S.
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.
The Senate amendments require that replacement housing, for
displaced households that choose to relocate meet the following
requirements:
1)Be provided at a rent that does not exceed 30% of that
household's income; and,
2)Be provided at a unit size and type that is required by the
displaced household and requires the size to conform to the
principles for a public housing policy for unit size as
provided in the "Public Housing Occupancy Guidebook" published
by the U.S. Department of Housing & Urban Development (HUD).
AS PASSED BY THE ASSEMBLY , this bill established 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)Declared 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)Required a redevelopment agency that is undertaking activities
or funding to replace blighted government-owned housing
projects must do all of the following:
a) Comply with all the requirements of Community
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Redevelopment Law (CRL);
b) Provide 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) Require 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) Require that replacement units must be inside the
project area or within a five-mile radius of the public
housing that is being replaced; and,
e) Require 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)Provided that replacement units may be either publicly or
privately owned.
4)Provided that additional privately owned housing units may be
available to moderate income households.
5)Provided 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.
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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 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
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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: 0005802