BILL NUMBER: SB 447	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator DeSaulnier

                        FEBRUARY 16, 2011

   An act to repeal Section 33334.29 of the Health and Safety Code,
relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 447, as introduced, DeSaulnier. Redevelopment agency of the
City of Redding: veterans home property acquisition.
   Existing law authorizes the redevelopment agency of the City of
Redding to borrow and use a specified amount from its Low and
Moderate Income Housing Fund to provide financial assistance for the
acquisition of property for a veterans home.
   This bill would repeal this provision of law.
   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.  Section 33334.29 of the Health and Safety Code is
repealed. 
   33334.29.  (a)  Notwithstanding Sections 33334.2, 33334.3, and
33334.6, the redevelopment agency of the City of Redding, of the
County of Shasta, or of any other city located within the County of
Shasta, may borrow and use up to two million three hundred thousand
dollars ($2,300,000) from its Low and Moderate Income Housing Fund to
provide financial assistance for the acquisition of property for a
veterans home within the territorial jurisdiction of the agency of
the City of Redding. As used in this section, "veterans' home" shall
mean a veterans' home authorized pursuant to Division 5 (commencing
with Section 1010) of the Military and Veterans Code.
   (b)  Funds borrowed pursuant to subdivision (a) shall be repaid
within 15 years from the date they are loaned, with interest at the
rate earned from time to time on funds deposited in the State of
California Local Agency Investment Fund. The indebtedness created
pursuant to this section shall not be considered to meet the
requirements imposed by Section 33333.8, and the agency shall comply
in full with that section. If a redevelopment agency described in
subdivision (a) is required to remit an amount of tax increment funds
to the county auditor for deposit in the county's Educational
Revenue Augmentation Fund, created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code, then the time limit on repayment of the
funds borrowed pursuant to this section shall be suspended for one
year after the funds are remitted to the county auditor. In addition,
the agency shall receive and use tax increment funds to pay the loan
described in subdivision (a) until the funds borrowed pursuant to
subdivision (a) have been fully repaid. The agency may not incur any
obligation with respect to loans, advance of money, or indebtedness,
or whether funded, refunded, assumed or otherwise, that would impair
or delay its ability or capacity to repay the funds loaned pursuant
to this section; except that the agency may incur indebtedness
against non-Low and Moderate Income Housing Fund moneys if the
proceeds of the indebtedness will be used to repay the funds borrowed
pursuant to this section.