BILL ANALYSIS
SB 977
Page 1
Date of Hearing: June 16, 2010
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
SB 977 (Hollingsworth) - As Amended: May 19, 2010
SENATE VOTE : 35-0
SUBJECT : Redevelopment: Redevelopment Agency of the County of
Riverside
SUMMARY : Permits the Riverside County Redevelopment Agency to
continue to fund affordable housing projects in project areas
that were annexed from the county after the projects were
started. Specifically, this bill :
1)Declares that the territorial jurisdiction of the Riverside
County Redevelopment Agency includes former agency territory
within the geographic boundaries of the City of Menifee or the
City of Wildomar and territory currently within an island of
unincorporated territory that is surrounded or substantially
surrounded by the City of Indio after the city annexed the
property, provided that prior to incorporation of the
applicable city the agency did the following:
a) entered into a binding agreement with a third party to
produce affordable housing; and
b) acquired land or spent money from its Low and Moderate
(L&M) Income Housing Fund
1)Provides that the provisions of this bill apply retroactively
and prospectively to the territory described above.
2)Allows the redevelopment agency to apply housing built in the
territory described above to its' affordable housing
obligation.
EXISTING LAW
1)Finds and declares that the fundamental purpose of
redevelopment is to expand the supply of low- and
moderate-income housing, expand employment opportunities for
jobless, underemployed low-income persons, and to provide an
environment for the social economic and psychological growth
SB 977
Page 2
and well-being of all citizens (Health & Safety Code Section
33071).
2)Requires 20% of all tax increment funds allocated to a
redevelopment agency must be used for the purpose of
increasing, improving and preserving the community's supply of
extremely low-, very low-, low- and moderate-income housing
unless the agency makes findings that the housing is not
needed (Health & Safety Code Section 33334.2).
FISCAL EFFECT : None.
COMMENTS :
There are 425 redevelopment agencies in the state. Thirty-one of
those agencies are governed by County Boards of Supervisors.
The jurisdiction of the county redevelopment agency includes
unincorporated land in the county. If the unincorporated area
is incorporated, existing law provides a process for
transferring control of the project areas annexed from the
county redevelopment agency to the new city.
The Redevelopment Agency of the County of Riverside includes
five project areas. The new cities of Menifee and Wildomar
incorporated in 2008, over the existing project areas of the
county project areas. The redevelopment agency had started two
affordable housing projects in the areas by purchasing land and
taking other steps. Menifee and Wildomar incorporation placed
these projects in jeopardy.
In addition, the redevelopment agency also closed a mobilehome
park within the agency's territory and relocated the former
tenants to an island of unincorporated territory surrounded by
the City of Indio. To replace the old mobilehome park, the
redevelopment agency planned to develop an 81-unit affordable
housing project. Riverside County and City of Indio officials
are cooperating to annex most of the unincorporated island to
the city. The Riverside Local Agency Formation Commission will
act on the proposed annexation in late 2020. However, this
unincorporated island is not within one of the County
Redevelopment Agency's project areas.
SB 977
Page 3
Purpose of this bill : This bill will allow affordable housing
projects that the Riverside County Redevelopment Agency began
prior to annexation to continue and allow the units to be
counted toward the counties affordable housing obligation.
Double referred : The Assembly Committee on Rules referred SB
977 to the Committee on Housing and Community Development and
Local Government. If SB 977 passes this committee, the bill
must be referred to the Committee on Local Government.
REGISTERED SUPPORT / OPPOSITION :
Support
County of Riverside
Opposition
None on file.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085