BILL NUMBER: AB 2759 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Nestande
FEBRUARY 19, 2010
An act to amend Sections 33021, 33334.3, and 33413 of, and to add
Section 33334.35 to, the Health and Safety Code, relating to
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2759, as introduced, Nestande. Redevelopment: pooled housing
funds: emergency shelters.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities in order to address the effects
of blight, as defined, in those communities and requires those
agencies to prepare, or cause to be prepared, and approve a
redevelopment plan for each area.
The Community Redevelopment Law requires that not less than 20% of
the tax-increment revenue allocated to a redevelopment agency be
used to increase, improve, and preserve the supply of the community's
low- and moderate-income housing within the territorial jurisdiction
of the agency, and for this purpose, the funds are held in a
separate Low and Moderate Income Housing Fund. Existing law requires
that all new or substantially rehabilitated housing units developed
or otherwise assisted with moneys from the Low and Moderate Income
Housing Fund pursuant to an agreement approved by an agency on or
after January 1, 1988, remain available at affordable housing cost
to, and occupied by, persons and families of low or moderate income,
very low income, and extremely low income households for the longest
feasible time, but for not less than specified periods of time,
except as specified.
This bill would redefine the term redevelopment to include
improving, increasing, or preserving emergency shelters for homeless
persons or households. The bill would authorize contiguous
redevelopment agencies located within adjoining cities within a
single Metropolitan Statistical Area to create and participate in a
joint powers authority for the purpose of pooling low- and
moderate-income housing funds for funding emergency shelters for
homeless persons or households. The bill would authorize the agencies
to transfer a portion of their housing funds to a joint powers
authority for use by the authority pursuant to these provisions. The
bill would require that the emergency shelters assisted with low- and
moderate-income housing funds remain available at affordable housing
cost to specified persons, families, and households for not less
than 15 years.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Homelessness is a statewide problem that affects many cities
and counties. There are an estimated 360,000 homeless individuals and
families in California. In some counties, including the County of
Los Angeles, an estimated 254,000 men, women, and children experience
homelessness over the course of each year. Some of the causes of
homelessness include mental illness, substance abuse, prison release,
and a lack of affordable housing.
(b) Homelessness affects people of all races, gender, age, and
geographic location. However, the cost and availability of land,
geophysical and environmental limitations, community patterns, and
the lack of financing make the availability of affordable housing for
homeless more difficult in some communities. These factors
contribute to the growing need for a regional approach to plan for
the location of adequate emergency shelters. A regional approach
would allow the expansion of existing facilities, result in more
efficient overhead, create more efficient facilities, and avoid
fragmenting and duplicating administrative and operating overhead
caused by creating multiple smaller facilities in individual
communities.
(c) In order to ensure access to services in every housing market
area for homeless individuals and families, the cooperation of local
redevelopment agencies and the use of pooled funds is necessary to
increase available resources and to provide opportunities that would
otherwise be unavailable for emergency shelters.
SEC. 2. Section 33021 of the Health and Safety Code is amended to
read:
33021. Redevelopment includes any of the following :
(a) The alteration, improvement, modernization, reconstruction, or
rehabilitation, or any combination of these, of existing structures
in a project area.
(b) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
(c) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist.
(1) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
(2) The areas require replanning and land assembly for reclamation
or development in the interest of the general welfare because of
widely scattered ownership, tax delinquency, or other reasons.
(d) Improving, increasing, or preserving emergency shelters for
homeless persons or households. The shelters may be located within or
outside of established redevelopment project areas. Notwithstanding
any other provision of law, these activities may be financed with
funds available pursuant to Section 33334.3.
SEC. 3. Section 33334.3 of the Health and Safety Code is amended
to read:
33334.3. (a) The funds that are required by Section 33334.2 or
33334.6 to be used for the purposes of increasing, improving, and
preserving the community's supply of low- and moderate-income housing
shall be held in a separate Low and Moderate Income Housing Fund
until used.
(b) Any interest earned by the Low and Moderate Income Housing
Fund and any repayments or other income to the agency for loans,
advances, or grants, of any kind from the Low and Moderate Income
Housing Fund, shall accrue to and be deposited in, the fund and may
only be used in the manner prescribed for the Low and Moderate Income
Housing Fund.
(c) The moneys in the Low and Moderate Income Housing Fund shall
be used to increase, improve, and preserve the supply of low- and
moderate-income housing within the territorial jurisdiction of the
agency.
(d) It is the intent of the Legislature that the Low and Moderate
Income Housing Fund be used to the maximum extent possible to defray
the costs of production, improvement, and preservation of low- and
moderate-income housing and that the amount of money spent for
planning and general administrative activities associated with the
development, improvement, and preservation of that housing not be
disproportionate to the amount actually spent for the costs of
production, improvement, or preservation of that housing. The agency
shall determine annually that the planning and administrative
expenses are necessary for the production, improvement, or
preservation of low- and moderate-income housing.
(e) (1) Planning and general administrative costs which may be
paid with moneys from the Low and Moderate Income Housing Fund are
those expenses incurred by the agency which are directly related to
the programs and activities authorized under subdivision (e) of
Section 33334.2 and are limited to the following:
(A) Costs incurred for salaries, wages, and related costs of the
agency's staff or for services provided through interagency
agreements, and agreements with contractors, including usual indirect
costs related thereto.
(B) Costs incurred by a nonprofit corporation which are not
directly attributable to a specific project.
(2) Legal, architectural, and engineering costs and other
salaries, wages, and costs directly related to the planning and
execution of a specific project that are authorized under subdivision
(e) of Section 33334.2 and that are incurred by a nonprofit housing
sponsor are not planning and administrative costs for the purposes of
this section, but are instead project costs.
(f) (1) The requirements of this subdivision apply to all new or
substantially rehabilitated housing units developed or otherwise
assisted with moneys from the Low and Moderate Income Housing Fund,
pursuant to an agreement approved by an agency on or after January 1,
1988. Except to the extent that a longer period of time may be
required by other provisions of law, the agency shall require that
housing units subject to this subdivision shall remain available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income and very low income and extremely low income
households for the longest feasible time, but for not less than the
following periods of time:
(A) Fifty-five years for rental units. However, the agency may
replace rental units with equally affordable and comparable rental
units in another location within the community if (i) the replacement
units are available for occupancy prior to the displacement of any
persons and families of low or moderate income residing in the units
to be replaced and (ii) the comparable replacement units are not
developed with moneys from the Low and Moderate Income Housing Fund.
(B) Forty-five years for owner-occupied units. However, the agency
may permit sales of owner-occupied units prior to the expiration of
the 45-year period for a price in excess of that otherwise permitted
under this subdivision pursuant to an adopted program which protects
the agency's investment of moneys from the Low and Moderate Income
Housing Fund, including, but not limited to, an equity sharing
program which establishes a schedule of equity sharing that permits
retention by the seller of a portion of those excess proceeds based
on the length of occupancy. The remainder of the excess proceeds of
the sale shall be allocated to the agency and deposited in the Low
and Moderate Income Housing Fund. Only the units originally assisted
by the agency shall be counted towards the agency's obligations under
Section 33413.
(C) Fifteen years for mutual self-help housing units that are
occupied by and affordable to very low and low-income households.
However, the agency may permit sales of mutual self-help housing
units prior to expiration of the 15-year period for a price in excess
of that otherwise permitted under this subdivision pursuant to an
adopted program that (i) protects the agency's investment of moneys
from the Low and Moderate Income Housing Fund, including, but not
limited to, an equity sharing program that establishes a schedule of
equity sharing that permits retention by the seller of a portion of
those excess proceeds based on the length of occupancy; and (ii)
ensures through a recorded regulatory agreement, deed of trust, or
similar recorded instrument that if a mutual self-help housing unit
is sold at any time after expiration of the 15-year period and prior
to 45 years after the date of recording of the covenants or
restrictions required pursuant to paragraph (2), the agency recovers,
at a minimum, its original principal from the Low and Moderate
Income Housing Fund from the proceeds of the sale and deposits those
funds into the Low and Moderate Income Housing Fund. The remainder of
the excess proceeds of the sale not retained by the seller shall be
allocated to the agency and deposited in the Low and Moderate Income
Housing Fund. For the purposes of this subparagraph, "mutual
self-help housing unit" means an owner-occupied housing unit for
which persons and families of very low and low income contribute no
fewer than 500 hours of their own labor in individual or group
efforts to provide a decent, safe, and sanitary ownership housing
unit for themselves, their families, and others authorized to occupy
that unit. Nothing in this subparagraph precludes the agency and the
developer of the mutual self-help housing units from agreeing to
45-year deed restrictions.
(D) Fifteen years for emergency shelters for homeless persons or
households that are occupied by and affordable to very low and
extremely low-income persons and households. However, the agency may
permit sales of mutual self-help housing units prior to expiration of
the 15-year period for a price in excess of that otherwise permitted
under this subdivision pursuant to an adopted program that (i)
protects the agency's investment of moneys from the Low and Moderate
Income Housing Fund, including, but not limited to, an equity sharing
program that establishes a schedule of equity sharing that permits
retention by the seller of a portion of those excess proceeds based
on the length of occupancy; and (ii) ensures through a recorded
regulatory agreement, deed of trust, or similar recorded instrument
that if an emergency shelter is sold at any time after expiration of
the 15-year period and prior to 45 years after the date of recording
of the covenants or restrictions required pursuant to paragraph (2),
the agency recovers, at a minimum, its original principal from the
Low and Moderate Income Housing Fund from the proceeds of the sale
and deposits those funds into the fund. The remainder of the excess
proceeds of the sale not retained by the seller shall be allocated to
the agency and deposited in the Low and Moderate Income Housing
Fund. For the purposes of this subparagraph, "emergency shelter"
means a facility with minimal supportive services for homeless
persons that is limited to occupancy of six months or less by a
homeless person or household as defined in Section 50801. Nothing in
this subparagraph precludes the agency and the developer of the
emergency shelter from agreeing to 45-year deed restrictions.
(2) If land on which those dwelling units are located is deleted
from the project area, the agency shall continue to require that
those units remain affordable as specified in this subdivision.
(3) The agency shall require the recording in the office of the
county recorder of the following documents:
(A) The covenants or restrictions implementing this subdivision
for each parcel or unit of real property subject to this subdivision.
The agency shall obtain and maintain a copy of the recorded
covenants or restrictions for not less than the life of the covenant
or restriction.
(B) For all new or substantially rehabilitated units developed or
otherwise assisted with moneys from the Low and Moderate Income
Housing Fund on or after January 1, 2008, a separate document called
"Notice of Affordability Restrictions on Transfer of Property," set
forth in 14-point type or larger. This document shall contain all of
the following information:
(i) A recitation of the affordability covenants or restrictions.
If the document recorded under this subparagraph is recorded
concurrently with the covenants or restrictions recorded under
subparagraph (A), the recitation of the affordability covenants or
restrictions shall also reference the concurrently recorded document.
If the document recorded under this subparagraph is not recorded
concurrently with the covenants or restrictions recorded under
subparagraph (A), the recitation of the affordability covenants or
restrictions shall also reference the recorder's identification
number of the document recorded under subparagraph (A).
(ii) The date the covenants or restrictions expire.
(iii) The street address of the property, including, if
applicable, the unit number.
(iv) The assessor's parcel number for the property.
(v) The legal description of the property.
(4) The agency shall require the recording of the document
required under subparagraph (B) of paragraph (3) not more than 30
days after the date of recordation of the covenants or restrictions
required under subparagraph (A) of paragraph (3).
(5) The county recorder shall index the documents required to be
recorded under paragraph (3) by the agency and current owner.
(6) Notwithstanding Section 27383 of the Government Code, a county
recorder may charge all authorized recording fees to any party,
including a public agency, for recording the document specified in
subparagraph (B) of paragraph (3).
(7) Notwithstanding any other provision of law, the covenants or
restrictions implementing this subdivision shall run with the land
and shall be enforceable against any owner who violates a covenant or
restriction and each successor in interest who continues the
violation, by any of the following:
(A) The agency.
(B) The community, as defined in Section 33002.
(C) A resident of a unit subject to this subdivision.
(D) A residents' association with members who reside in units
subject to this subdivision.
(E) A former resident of a unit subject to this subdivision who
last resided in that unit.
(F) An applicant seeking to enforce the covenants or restrictions
for a particular unit that is subject to this subdivision, if the
applicant conforms to all of the following:
(i) Is of low or moderate income, as defined in Section 50093.
(ii) Is able and willing to occupy that particular unit.
(iii) Was denied occupancy of that particular unit due to an
alleged breach of a covenant or restriction implementing this
subdivision.
(G) A person on an affordable housing waiting list who is of low
or moderate income, as defined in Section 50093, and who is able and
willing to occupy a unit subject to this subdivision.
(8) A dwelling unit shall not be counted as satisfying the
affordable housing requirements of this part, unless covenants for
that dwelling unit are recorded in compliance with subparagraph (A)
of paragraph (3).
(9) Failure to comply with the requirements of subparagraph (B) of
paragraph (3) shall not invalidate any covenants or restrictions
recorded pursuant to subparagraph (A) of paragraph (3).
(g) "Housing," as used in this section, includes residential
hotels, as defined in subdivision (k) of Section 37912. The
definitions of "lower income households," "very low income
households," and "extremely low income households" in Sections
50079.5, 50105, and 50106 shall apply to this section. "Longest
feasible time," as used in this section, includes, but is not limited
to, unlimited duration.
(h) "Increasing, improving, and preserving the community's supply
of low- and moderate-income housing," as used in this section and in
Section 33334.2, includes the increase, improvement, and
preservation of emergency shelters for homeless persons or households
in accordance with Section 33334.35 and the preservation of
rental housing units assisted by federal, state, or local government
on the condition that units remain affordable to, and occupied by,
low- and moderate-income households, including extremely low and very
low income households, for the longest feasible time, but not less
than 55 years, beyond the date the subsidies and use restrictions
could be terminated and the assisted housing units converted to
market rate rentals. In preserving these units the agency shall
require that the units remain affordable to, and occupied by, persons
and families of low- and moderate-income and extremely low and very
low income households for the longest feasible time but not less than
55 years. However, the agency may replace rental units with equally
affordable and comparable rental units in another location within the
community if (1) the replacement units in another location are
available for occupancy prior to the displacement of any persons and
families of low or moderate income residing in the units to be
replaced and (2) the comparable replacement units are not developed
with moneys from the Low and Moderate Income Housing Fund.
(i) Agencies that have more than one project area may satisfy the
requirements of Sections 33334.2 and 33334.6 and of this section by
allocating, in any fiscal year, less than 20 percent in one project
area, if the difference between the amount allocated and the 20
percent required is instead allocated, in that same fiscal year, to
the Low and Moderate Income Housing Fund from tax increment revenues
from other project areas. Prior to allocating funds pursuant to this
subdivision, the agency shall make the finding required by
subdivision (g) of Section 33334.2.
(j) Funds from the Low and Moderate Income Housing Fund shall not
be used to the extent that other reasonable means of private or
commercial financing of the new or substantially rehabilitated units
at the same level of affordability and quantity are reasonably
available to the agency or to the owner of the units. Prior to the
expenditure of funds from the Low and Moderate Income Housing Fund
for new or substantially rehabilitated housing units, where those
funds will exceed 50 percent of the cost of producing the units, the
agency shall find, based on substantial evidence, that the use of the
funds is necessary because the agency or owner of the units has made
a good faith attempt but been unable to obtain commercial or private
means of financing the units at the same level of affordability and
quantity.
SEC. 4. Section 33334.35 is added to the Health and Safety Code,
to read:
33334.35. (a) The Legislature finds and declares all of the
following:
(1) The transfer of funds to a joint powers authority and the use
of pooled funds within the housing market area of the participating
agencies for the purpose of providing emergency shelters for homeless
persons or households is of benefit to the project area producing
the tax increment.
(2) The cost and availability of land, geophysical and
environmental limitations, community patterns, and the lack of
financing make the availability of affordable housing for homeless
persons or households more difficult in some communities.
(3) The cooperation of local agencies and the use of pooled funds
will result in more resources and more opportunities than would
otherwise be available for affordable housing for homeless persons or
households.
(b) As used in this section, the following terms shall have the
following meanings:
(1) "Emergency shelter" shall have the same meaning as described
in subdivision (e) of Section 50801.
(2) "Housing funds" mean funds in or from the Low and Moderate
Income Housing Fund established by an agency pursuant to Section
33334.3.
(3) "Joint powers authority" means a joint powers authority
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code for the purposes of
receiving and using housing funds pursuant to this section.
(4) "Receiving entity" means any person, partnership, joint
venture, corporation, governmental body, or other organization
receiving housing funds from a joint powers authority for the purpose
of providing housing pursuant to this section.
(c) Notwithstanding any other provision of law, contiguous
agencies located within adjoining cities within a single Metropolitan
Statistical Area (MSA) may create and participate in a joint powers
authority for the purpose of pooling their low- and moderate-income
housing funds for funding emergency shelters for homeless persons or
households. Agencies may transfer a portion of their housing funds to
a joint powers authority for use by the joint powers authority
pursuant to this section. The joint powers authority may determine
the kinds of housing projects or activities to be assisted,
consistent with this section. The joint powers authority may issue
loans or grants, or advance transferred housing funds from
participating agencies to a receiving entity for any eligible
emergency shelter project within the territorial jurisdiction of any
of the participating agencies, subject to the requirements of this
section. In addition, the agreement may authorize the joint powers
authority to issue bonds and to use the pooled funds to leverage
other funds to assist eligible developments, including loans from
private institutions and assistance provided by other governmental
agencies.
(d) All of the following conditions shall be met and described in
a mutually binding agreement between the joint powers authority and
each participating agency:
(1) Each participating agency shall hold, at least 45 days prior
to the transfer of funds to the joint powers authority, a public
hearing, after providing notice pursuant to Section 6062 of the
Government Code to solicit public comments on the draft agreement.
(2) No housing funds shall be transferred from a project area that
has an indebtedness to its low- and moderate-income housing fund
pursuant to Section 33334.6.
(3) The agreement shall require compliance by the joint powers
authority with the provisions of this section.
(4) The joint powers authority shall ensure that the funds it
receives are used in accordance with the requirements of this
section.
(5) Funds transferred by an agency to a joint powers authority
pursuant to this section shall be expended or encumbered by the joint
powers authority for the purposes of this section within two years
of the transfer. Transferred funds not expended or encumbered by the
joint powers authority within two years after the transfer shall be
returned to the original agency and shall be deemed excess surplus
funds as provided in, and subject to, the requirements of Sections
33334.10 and 33334.12. Excess surplus funds held by an agency may not
be transferred to a joint powers authority.
(e) Both of the following requirements shall be met and described
in a mutually binding contract between the joint powers authority and
a receiving entity:
(1) Pooled housing funds may only be used to pay for the direct
costs of constructing, substantially rehabilitating, or preserving
the affordability of emergency shelters for homeless persons or
households that are affordable to very low or extremely low income
households. Emergency shelters assisted with pooled funds shall
remain available at affordable housing costs in accordance with
subdivision (f) of Section 33334.3.
(2) Except as provided in this section, pooled housing funds may
not be used in any way that is inconsistent with the requirements of
Section 33334.3. Pooled housing funds may not be used to pay for
planning and administrative costs, offsite improvements associated
with an emergency shelter project, or fees or exactions levied solely
for development projects constructed, substantially rehabilitated,
or preserved with pooled funds. The receiving entity shall be subject
to the same replacement requirements provided in Section 33413 and
any relocation requirements applicable pursuant to Section 7260 of
the Government Code.
(f) For the purposes of the housing credit authorized by
subparagraph (E) of paragraph (2) of subdivision (b) of Section
33413, each participating agency shall be allocated a share of the
unit credits in the same proportion as the percentage each agency
contributed to the pooled funds.
SEC. 5. Section 33413 of the Health and Safety Code is amended to
read:
33413. (a) Whenever dwelling units housing persons and families
of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project
that is subject to a written agreement with the agency or where
financial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at affordable housing costs within the territorial
jurisdiction of the agency. When dwelling units are destroyed or
removed after September 1, 1989, 75 percent of the replacement
dwelling units shall replace dwelling units available at affordable
housing cost in the same or a lower income level of very low income
households, lower income households, and persons and families of low
and moderate income, as the persons displaced from those destroyed or
removed units. When dwelling units are destroyed or removed on or
after January 1, 2002, 100 percent of the replacement dwelling units
shall be available at affordable housing cost to persons in the same
or a lower income category (low, very low, or moderate), as the
persons displaced from those destroyed or removed units.
(b) (1) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
and 33333.10 at least 30 percent of all new and substantially
rehabilitated dwelling units developed by an agency shall be
available at affordable housing cost to, and occupied by, persons and
families of low or moderate income. Not less than 50 percent of the
dwelling units required to be available at affordable housing cost
to, and occupied by, persons and families of low or moderate income
shall be available at
affordable housing cost to, and occupied by, very low income
households.
(2) (A) (i) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
and 33333.10 at least 15 percent of all new and substantially
rehabilitated dwelling units developed within a project area under
the jurisdiction of an agency by public or private entities or
persons other than the agency shall be available at affordable
housing cost to, and occupied by, persons and families of low or
moderate income. Not less than 40 percent of the dwelling units
required to be available at affordable housing cost to, and occupied
by, persons and families of low or moderate income shall be available
at affordable housing cost to, and occupied by, very low income
households.
(ii) To satisfy this paragraph, in whole or in part, the agency
may cause, by regulation or agreement, to be available, at affordable
housing cost, to, and occupied by, persons and families of low or
moderate income or to very low income households, as applicable, two
units outside a project area for each unit that otherwise would have
been required to be available inside a project area.
(iii) On or after January 1, 2002, as used in this paragraph and
in paragraph (1), "substantially rehabilitated dwelling units" means
all units substantially rehabilitated, with agency assistance. Prior
to January 1, 2002, "substantially rehabilitated dwelling units"
shall mean substantially rehabilitated multifamily rented dwelling
units with three or more units regardless of whether there is agency
assistance, or substantially rehabilitated, with agency assistance,
single-family dwelling units with one or two units.
(iv) As used in this paragraph and in paragraph (1), "substantial
rehabilitation" means rehabilitation, the value of which constitutes
25 percent of the after rehabilitation value of the dwelling,
inclusive of the land value.
(v) To satisfy this paragraph, the agency may aggregate new or
substantially rehabilitated dwelling units in one or more project
areas, if the agency finds, based on substantial evidence, after a
public hearing, that the aggregation will not cause or exacerbate
racial, ethnic, or economic segregation.
(B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the agency may purchase, or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of,
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and
families of low or very low income households, as applicable; or (ii)
are units that are presently available at affordable housing cost to
this same group of persons or families, but are units that the
agency finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
(C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost to, and
occupied by, persons and families of low or very low income, for the
longest feasible time but not less than 55 years for rental units and
45 years for owner-occupied units. Not more than 50 percent of the
units made available pursuant to paragraph (1) and subparagraph (A)
may be assisted through the purchase or acquisition of long-term
affordability covenants pursuant to subparagraph (B). Not less than
50 percent of the units made available through the purchase or
acquisition of long-term affordability covenants pursuant to
subparagraph (B) shall be available at affordable housing cost to,
and occupied by, very low income households.
(D) To satisfy the requirements of paragraph (1) and subparagraph
(A), each mutual self-help housing unit, as defined in subparagraph
(C) of paragraph (1) of subdivision (f) of Section 33334.3, that is
subject to a 15-year deed restriction shall count as one-third of a
unit.
(E) To satisfy the requirements of paragraph (1) and subparagraph
(A), each bed in an emergency shelter, as defined in subparagraph (D)
of paragraph (1) of subdivision (f) of Section 33334.3, that is
subject to a 15-year deed restriction shall count as one-half of a
unit.
(3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a). The requirements of this
subdivision shall apply, in the aggregate, to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units, unless an agency determines otherwise.
(4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area. The plan
shall be consistent with, and may be included within, the community's
housing element. The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle. The plan
shall ensure that the requirements of this subdivision are met every
10 years. If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period. The
plan shall contain the contents required by paragraphs (2), (3), and
(4) of subdivision (a) of Section 33490.
(c) (1) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, constructed, or price restricted pursuant to subdivision
(a) or (b) remain available at affordable housing cost to, and
occupied by, persons and families of low-income, moderate-income, and
very low income households, respectively, for the longest feasible
time, but for not less than 55 years for rental units, 45 years for
home ownership units, and 15 years for mutual self-help housing
units, as defined in subparagraph (C) of paragraph (1) of subdivision
(f) of Section 33334.3, except as set forth in paragraph (2).
Nothing in this paragraph precludes the agency and the developer of
the mutual self-help housing units from agreeing to 45-year deed
restrictions.
(2) Notwithstanding paragraph (1), the agency may permit sales of
owner-occupied units prior to the expiration of the 45-year period,
and mutual self-help housing units prior to the expiration of the
15-year period, established by the agency for a price in excess of
that otherwise permitted under this subdivision pursuant to an
adopted program that protects the agency's investment of moneys from
the Low and Moderate Income Housing Fund, including, but not limited
to, an equity sharing program that establishes a schedule of equity
sharing that permits retention by the seller of a portion of those
excess proceeds, based on the length of occupancy. The remainder of
the excess proceeds of the sale shall be allocated to the agency, and
deposited into the Low and Moderate Income Housing Fund. The agency
shall, within three years from the date of sale pursuant to this
paragraph of each home ownership or mutual self-help housing unit
subject to a 45-year deed restriction, and every third mutual
self-help housing unit subject to a 15-year deed restriction, expend
funds to make affordable an equal number of units at the same or
lowest income level as the unit or units sold pursuant to this
paragraph, for a period not less than the duration of the original
deed restrictions. Only the units originally assisted by the agency
shall be counted towards the agency's obligations under Section
33413.
(3) The requirements of this section shall be made enforceable in
the same manner as provided in paragraph (7) of subdivision (f) of
Section 33334.3.
(4) If land on which the dwelling units required by this section
are located is deleted from the project area, the agency shall
continue to require that those units remain affordable as specified
in this subdivision.
(5) For each unit counted towards the requirements of subdivisions
(a) and (b), the agency shall require the recording in the office of
the county recorder of covenants or restrictions that ensure
compliance with this subdivision. With respect to covenants or
restrictions that are recorded on or after January 1, 2008, the
agency shall comply with the requirements of paragraphs (3) and (4)
of subdivision (f) of Section 33334.3.
(d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas that are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976. In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area. Additionally, any agency may, by resolution, elect to make all
or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976. In addition, subdivision
(b) shall apply to redevelopment plans adopted prior to January 1,
1976, for which an amendment is adopted pursuant to Section 33333.10,
except that subdivision (b) shall apply to those redevelopment plans
prospectively only so that the requirements of subdivision (b) shall
apply only to new and substantially rehabilitated dwelling units for
which the building permits are issued on or after the date that the
ordinance adopting the amendment pursuant to Section 33333.10 becomes
effective.
(2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
(e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
(f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
(1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units. Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
(2) The replacement units are affordable to and occupied by the
same income level of households as the destroyed or removed units.
(g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.