BILL ANALYSIS
SB 1374
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Date of Hearing: June 30, 2010
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
SB 1374 (Kehoe) - As Introduced: February 19, 2010
SENATE VOTE : 31-0
SUBJECT : Redevelopment: plan amendment procedures
SUMMARY : Requires a redevelopment agency to include any
written objections the agency has received from resident or
community organizations as part of the agency's report to the
legislative body required to extend the time period for a
project area by ten years. Specifically, this bill :
1)Requires a redevelopment agency to include any written
objections the agency has received from resident or community
organizations as part of the agency's report to the
legislative body required to extend the time period for a
project area by ten years.
2)Requires, t the hearing to review a proposed amendment to a
redevelopment plan to extend a project area, that the
legislative body consider the objections or concerns of the
affected taxing entities, a project area committee if any,
residents, and community organizations.
EXISTING LAW
1)Limits the effectiveness of a redevelopment plan to 40 years
from the date of adoption of the plan or January 1, 2009,
whichever is later (Health & Safety Code Section 33333.6).
2)Allows redevelopment agencies to extend the effectiveness of a
redevelopment plan by 10 years, provided that both of the
following conditions exist:
a) Significant blight remains within the project area; and
b) This blight cannot be eliminated without extending the
effectiveness of the plan and receipt of property taxes.
(Heath & Safety Code Section 33333.10)
FISCAL EFFECT : None
SB 1374
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COMMENTS :
Redevelopment project areas formed prior to January 1, 1994
expire 40 years after the adoption date or January 1, 2009,
whichever comes first. AB 211 (Torlakson), Chaptered 741,
Statutes of 2001, allowed redevelopment agencies to make a
one-time 10-year extension to the project area to incur
additional indebtedness, provided that the agency can show that
there is significant blight remaining in the project area and
the blight cannot be eliminated without extending the
effectiveness of the plan and the receipt of property taxes. In
order to extend the redevelopment plan, the agency must hold a
public hearing. The redevelopment agency must notify each
affected taxing agency, project area committee, residents, and
community organizations of the proposed amendment and provide a
preliminary report that includes: a map of the project area
that identifies the portion, if any, of the project area that is
no longer blighted and the portion that is blighted; a
description of the remaining blight; a description of how the
programs or projects proposed will eliminate the remaining
blight, the reason why the project or program cannot be
completed without extending the effectiveness of the plan; and
the proposed method of financing these programs or projects.
This bill would require the redevelopment agency to include in
its report to the legislative body reviewing the proposed plan
extension a detailed response to any concerns raised by the
affected taxing entities, project area committee, residents and
community organizations. Additionally, the legislative body is
required to consider any objections or concerns raised to the
proposed amendment raised by the affected taxing entities,
project area committee, residents and community organizations
Purpose of this bill:
According to the author, affected taxing agencies, the project
area committee, residents and community organizations should
have the opportunity to meet with a redevelopment agency
proposing a time extension to a redevelopment plan so that each
objection and concern can be discussed and directly addressed in
writing by the agency as the legislative body considers the
proposed amendment. SB 1374 provides more transparency and
accountability in the process that allows an extension of a
redevelopment plan's time limit for up to 10 years.
SB 1374
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REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Recreation and Park Districts
California Rural Legal Assistance Foundation
California Special Districts Association
California State Association of Counties
Western Center on Law & Poverty
Opposition
None on file
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085