BILL NUMBER: AB 1585 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 25, 2012
AMENDED IN SENATE JUNE 20, 2012
AMENDED IN ASSEMBLY MARCH 21, 2012
AMENDED IN ASSEMBLY MARCH 15, 2012
AMENDED IN ASSEMBLY MARCH 8, 2012
INTRODUCED BY Assembly Members John A. Pérez, Atkins, Dickinson,
Hill, Mitchell, Perea, and Torres
FEBRUARY 2, 2012
An act to amend Section 34176 of the Health and Safety Code,
relating to community development, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1585, as amended, John A. Pérez. Community development.
(1) Existing law dissolved redevelopment agencies and community
development agencies. Existing law authorizes the city, county, or
city and county that authorized the creation of a redevelopment
agency to retain the housing assets, functions, and powers previously
performed by the redevelopment agency, excluding amounts on deposit
in the Low and Moderate Income Housing Fund.
This bill would transfer to the Department of Housing and
Community Development the responsibility to perform housing functions
in the territorial jurisdiction of a former redevelopment agency, if
there is no local housing authority in that jurisdiction, the local
housing authority selected does not accept the responsibility for
performing housing functions, or certain local housing authorities
vote, on or before February 15, 2013, to transfer that responsibility
to the department due to financial hardship. The bill would create a
continuously appropriated fund within the State Treasury, the State
Low and Moderate Income Housing Trust Fund, for the transfer of
assets of local housing funds for these purposes, as specified,
thereby making an appropriation.
Under
(2) Under existing law, the
Housing and Emergency Shelter Trust Fund Act of 2006, authorizes the
issuance of bonds in the amount of $2,850,000,000 pursuant to the
State General Obligation Bond Law. Proceeds from the sale of these
bonds are used to finance various existing housing programs, capital
outlay related to infill development, brownfield cleanup that
promotes infill development, housing-related parks, and
transit-oriented development administered by the Department of
Housing and Community Development.
This bill would appropriate $50,000,000 of bond revenues to the
Department of Housing and Community Development and from that amount,
allocate $25,000,000 from the Regional Planning, Housing, and Infill
Incentive Account for infill incentive grants, and $25,000,000 from
the Transit-Oriented Development Implementation Fund for
transit-oriented grants and loans , thereby making an
appropriation .
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34176 of the Health
and Safety Code is amended to read:
34176. (a) (1) The city, county, or city and county that
authorized the creation of a redevelopment agency may elect to retain
the housing assets and functions previously performed by the
redevelopment agency. If a city, county, or city and county elects to
retain the authority to perform housing functions previously
performed by a redevelopment agency, all rights, powers, duties,
obligations, and housing assets, as defined in subdivision (e),
excluding any amounts on deposit in the Low and Moderate Income
Housing Fund and enforceable obligations retained by the successor
agency, shall be transferred to the city, county, or city and county.
(2) The entity assuming the housing functions of the former
redevelopment agency shall submit to the Department of Finance by
August 1, 2012, a list of all housing assets that contains an
explanation of how the assets meet the criteria specified in
subdivision (e). The Department of Finance shall prescribe the format
for the submission of the list. The list shall include assets
transferred between February 1, 2012, and the date upon which the
list is created. The department shall have up to 30 days from the
date of receipt of the list to object to any of the assets or
transfers of assets identified on the list. If the Department of
Finance objects to assets on the list, the entity assuming the
housing functions of the former redevelopment agency may request a
meet and confer process within five business days of receiving the
department objection. If the transferred asset is deemed not to be a
housing asset as defined in subdivision (e), it shall be returned to
the successor agency and the provision of Section 34178.8 may apply.
If a housing asset has been previously pledged to pay for bonded
indebtedness, the successor agency shall maintain control of the
asset in order to pay for the bond debt.
(b) (1) If a city, county, or city and
county does not elect to retain the responsibility for performing
housing functions previously performed by a redevelopment agency, all
rights, powers, assets, duties, and obligations associated with the
housing activities of the agency, excluding enforceable obligations
retained by the successor agency and any amounts in the Low and
Moderate Income Housing Fund, shall be transferred as follows:
(1) If there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency, to the Department of
Housing and Community Development.
(2)
(A) If there is one local housing authority
in the territorial jurisdiction of the former redevelopment agency,
to that local housing authority.
(3)
(B) If there is more than one local housing
authority in the territorial jurisdiction of the former redevelopment
agency, to the local housing authority selected by the city, county,
or city and county that authorized the creation of the redevelopment
agency.
(C) If there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency or if the local
housing authority selected does not accept the responsibility for
performing housing functions previously performed by the former
redevelopment agency, to the Department of Housing and Community
Development. Funds transferred pursuant to this section shall be
deposited into the State Low and Moderate Income Housing Trust Fund,
which is, notwithstanding Section 13340 of the Government Code,
hereby created as a continuously appropriated fund in the State
Treasury, for expenditure by the Department of Housing and Community
Development for the purpose of increasing the supply of low- and
moderate-income housing and awarded on a competitive basis to
projects within the counties in which the funds were collected.
Priority shall be given to eligible projects for extremely low, very
low, and low-income projects.
(2) If a local housing authority accepted the responsibility for
performing housing functions of the former redevelopment agency
between February 1, 2012, and December 31, 2012, and the local
housing authority later determines that it will cause a financial
hardship for it to continue being the entity that assumes the housing
functions formerly performed by the redevelopment agency, then the
local housing authority may, by a super majority vote of its
commission, resolve to no longer perform this function, and all
rights, powers, assets, duties, and obligations associated with the
housing activities of the former redevelopment agency shall be
transferred to the Department of Housing and Community Development
pursuant to subparagraph (C) of paragraph (1). That determination
must be made by the local housing authority on or before February 15,
2013.
(c) Commencing on the operative date of this part, the entity that
assumes the housing functions formerly performed by the
redevelopment agency and receives the transferred housing assets may
enforce affordability covenants and perform related activities
pursuant to applicable provisions of the Community Redevelopment Law
(Part 1 (commencing with Section 33000)), including, but not limited
to, Section 33418.
(d) Except as specifically provided in Section 34191.4, any funds
transferred to the city, county, or city and county or designated
entity pursuant to this section, together with any funds generated
from housing assets, as defined in subdivision (e), shall be
maintained in a separate Low and Moderate Income Housing Asset Fund
which is hereby created in the accounts of the entity assuming the
housing functions pursuant to this section. Funds in this account
shall be used in accordance with applicable housing-related
provisions of the Community Redevelopment Law (Part 1 (commencing
with Section 33000)).
(e) For purposes of this part, "housing asset" includes all of the
following:
(1) Any real property, interest in, or restriction on the use of
real property, whether improved or not, and any personal property
provided in residences, including furniture and appliances, all
housing-related files and loan documents, office supplies, software
licenses, and mapping programs, that were acquired for low- and
moderate-income housing purposes, either by purchase or through a
loan, in whole or in part, with any source of funds.
(2) Any funds that are encumbered by an enforceable obligation to
build or acquire low- and moderate-income housing, as defined by the
Community Redevelopment Law (Part 1 (commencing with Section 33000))
unless required in the bond covenants to be used for repayment
purposes of the bond.
(3) Any loan or grant receivable, funded from the Low and Moderate
Income Housing Fund, from homebuyers, homeowners, nonprofit or
for-profit developers, and other parties that require occupancy by
persons of low or moderate income as defined by the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).
(4) Any funds derived from rents or operation of properties
acquired for low- and moderate-income housing purposes by other
parties that were financed with any source of funds, including
residual receipt payments from developers, conditional grant
repayments, cost savings and proceeds from refinancing, and principal
and interest payments from homebuyers subject to enforceable income
limits.
(5) A stream of rents or other payments from housing tenants or
operators of low- and moderate-income housing financed with any
source of funds that are used to maintain, operate, and enforce the
affordability of housing or for enforceable obligations associated
with low- and moderate-income housing.
(6) (A) Repayments of loans or deferrals owed to the Low and
Moderate Income Housing Fund pursuant to subparagraph (G) of
paragraph (1) of subdivision (d) of Section 34171, which shall be
used consistent with the affordable housing requirements in the
Community Redevelopment Law (Part 1 (commencing with Section 33000)).
(B) Loan or deferral repayments shall not be made prior to the
2013-14 fiscal year. Beginning in the 2013-14 fiscal year, the
maximum repayment amount authorized each fiscal year for repayments
made pursuant to this paragraph and subdivision (b) of Section
34191.4 combined shall be equal to one-half of the increase between
the amount distributed to taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year. Loan or deferral repayments made pursuant to
this paragraph shall take priority over amounts to be repaid pursuant
to subdivision (b) of Section 34191.4.
(f) If a development includes both low- and moderate-income
housing that meets the definition of a housing asset under
subdivision (e) and other types of property use, including, but not
limited to, commercial use, governmental use, open space, and parks,
the oversight board shall consider the overall value to the community
as well as the benefit to taxing entities of keeping the entire
development intact or dividing the title and control over the
property between the housing successor and the successor agency or
other public or private agencies. The disposition of those assets may
be accomplished by a revenue-sharing arrangement as approved by the
oversight board on behalf of the affected taxing entities.
(g) (1) (A) The entity assuming the housing functions pursuant to
this section may designate the use of and commit indebtedness
obligation proceeds that remain after the satisfaction of enforceable
obligations that have been approved in a Recognized Obligation
Payment Schedule and that are consistent with the indebtedness
obligation covenants. The proceeds shall be derived from indebtedness
obligations that were issued for the purposes of affordable housing
prior to January 1, 2011, and were backed by the Low and Moderate
Income Housing Fund. Enforceable obligations may be satisfied by the
creation of reserves for the projects that are the subject of the
enforceable obligation that are consistent with the contractual
obligations for those projects, or by expending funds to complete the
projects.
(B) The entity assuming the housing functions pursuant to this
section shall provide notice to the successor agency of any
designations of use or commitments of funds specified in subparagraph
(A) that it wishes to make at least 20 days before the deadline for
submission of the Recognized Obligation Payment Schedule to the
oversight board. Commitments and designations shall not be valid and
binding on any party until they are included in an approved and valid
Recognized Obligation Payment Schedule. The review of these
designations and commitments by the successor agency, oversight
board, and Department of Finance shall be limited to a determination
that the designations and commitments are consistent with bond
covenants and that there are sufficient funds available.
(2) Funds shall be used and committed in a manner consistent with
the purposes of the Low and Moderate Income Housing Asset Fund.
Notwithstanding any other law, the successor agency shall retain and
expend the excess housing obligation proceeds at the discretion of
the succeeding housing entity, provided that the successor agency
ensures that the proceeds are expended in a manner consistent with
the indebtedness obligation covenants and with any requirements
relating to the tax status of those obligations. The amount expended
shall not exceed the amount of indebtedness obligation proceeds
available and such expenditure shall constitute the creation of
excess housing proceeds expenditures to be paid from the excess
proceeds. Excess housing proceeds expenditures shall be listed
separately on the Recognized Obligation Payment Schedule submitted by
the successor agency.
SECTION 1. SEC. 2. The sum of fifty
million dollars ($50,000,000) is hereby appropriated to the
Department of Housing and Community Development as follows:
(a) Twenty-five million dollars ($25,000,000) from the Regional
Planning, Housing, and Infill Incentive Account established pursuant
to subdivision (b) of Section 53545 of the Health and Safety Code,
for the purpose of funding infill incentive grants pursuant to
Section 53545.13 of the Health and Safety Code.
(b) Twenty-five million dollars ($25,000,000) from the
Transit-Oriented Development Implementation Fund established pursuant
to subdivision (c) of Section 53545 of the Health and Safety Code,
for the purpose of funding transit-oriented grants and loans pursuant
to Part 13 (commencing with Section 53560) of Division 31 of the
Health and Safety Code.