AB 2493, as amended, Bloom. Redevelopment dissolution: housing projects: bond proceeds.
Existing law dissolved redevelopment agencies and community development agencies, as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law provides for the transfer of housing assets and functions previously performed by the dissolved redevelopment agency to one of several specified public entities. Existing law authorizes the successor housing entity to designate the use of, and commit, proceeds from indebtedness that was issued for affordable housing purposes prior to January 1, 2011, and was backed by the Low and Moderate Income Housing Fund.
This bill would instead authorize a successor housing entity to designate the use of, and commit, proceeds from indebtedness that was issued for affordable housing purposes prior to June 28, 2011, and would require the proceeds from bonds issued between January 1, 2011, and June 28, 2011, be used for projects meeting certain criteria established in this bill for projects, to be funded by successor agencies generally, from proceeds of bonds issued during the same period.
Existing law authorizes the Department of Finance to issue a finding of completion to a successor agency that completes a due diligence review and meets other requirements. Upon receiving a finding of completion, a successor agency is authorized to expend excess bond proceeds derived from bonds issued on or before December 31, 2010, in a manner consistent with the original bond covenants.
The bill would expand this authorization to include the expenditure of excess bond proceeds derived from bonds issued on or before June 28, 2011, and would require proceeds derived from bonds issued between January 1, 2011, and June 28, 2011, to be used by successor agencies only for projects meeting certain criteria.
begin insertThis bill would incorporate additional changes to Section 34191.4 of the Health and Safety Code proposed by AB 1582 and SB 1129 that would become operative only if this bill and either AB 1582 or SB 1129 are enacted and this bill is enacted last.
end insertVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 34176 of the Health and Safety Code is
2amended to read:
(a) (1) The city, county, or city and county that
4authorized the creation of a redevelopment agency may elect to
5retain the housing assets and functions previously performed by
6the redevelopment agency. If a city, county, or city and county
P3 1elects to retain the authority to perform housing functions
2previously performed by a redevelopment agency, all rights,
3powers, duties, obligations, and housing assets, as defined in
4subdivision (e), excluding any amounts on deposit in the Low and
5Moderate Income Housing Fund and enforceable obligations
6retained by the successor agency, shall be transferred to the city,
7county, or city and county.
8(2) The housing successor
shall submit to the Department of
9Finance by August 1, 2012, a list of all housing assets that contains
10an explanation of how the assets meet the criteria specified in
11subdivision (e). The Department of Finance shall prescribe the
12format for the submission of the list. The list shall include assets
13transferred between February 1, 2012, and the date upon which
14the list is created. The department shall have up to 30 days from
15the date of receipt of the list to object to any of the assets or
16transfers of assets identified on the list. If the Department of
17Finance objects to assets on the list, the housing successor may
18request a meet and confer process within five business days of
19receiving the department objection. If the transferred asset is
20deemed not to be a housing asset as defined in subdivision (e), it
21shall be returned to the successor agency and the provision of
22Section 34178.8 may apply. If a
housing asset has been previously
23pledged to pay for bonded indebtedness, the successor agency shall
24maintain control of the asset in order to pay for the bond debt.
25(3) For purposes of this section and Section 34176.1, “housing
26successor” means the entity assuming the housing function of a
27former redevelopment agency pursuant to this section.
28(b) If a city, county, or city and county does not elect to retain
29the responsibility for performing housing functions previously
30performed by a redevelopment agency, all rights, powers, assets,
31duties, and obligations associated with the housing activities of
32the agency, excluding enforceable obligations retained by the
33successor agency and any amounts in the Low and Moderate
34Income Housing Fund, shall be transferred as follows:
35(1) If there is no local housing authority in the territorial
36jurisdiction of the former redevelopment agency, to the Department
37of Housing and Community Development.
38(2) If there is one local housing authority in the territorial
39jurisdiction of the former redevelopment agency, to that local
40housing authority.
P4 1(3) If there is more than one local housing authority in the
2territorial jurisdiction of the former redevelopment agency, to the
3local housing authority selected by the city, county, or city and
4county that authorized the creation of the redevelopment agency.
5(c) Commencing on the operative date of this part, the housing
6successor may enforce
affordability covenants and perform related
7activities pursuant to applicable provisions of the Community
8Redevelopment Law (Part 1 (commencing with Section 33000)),
9including, but not limited to, Section 33418.
10(d) Except as specifically provided in Section 34191.4, any
11funds transferred to the housing successor, together with any funds
12generated from housing assets, as defined in subdivision (e), shall
13be maintained in a separate Low and Moderate Income Housing
14Asset Fund which is hereby created in the accounts of the housing
15successor.
16(e) For purposes of this part, “housing asset” includes all of the
17following:
18(1) Any real property, interest in, or restriction on the use of
19real property, whether improved or not, and
any personal property
20provided in residences, including furniture and appliances, all
21housing-related files and loan documents, office supplies, software
22licenses, and mapping programs, that were acquired for low- and
23moderate-income housing purposes, either by purchase or through
24a loan, in whole or in part, with any source of funds.
25(2) Any funds that are encumbered by an enforceable obligation
26to build or acquire low- and moderate-income housing, as defined
27by the Community Redevelopment Law (Part 1 (commencing with
28Section 33000)) unless required in the bond covenants to be used
29for repayment purposes of the bond.
30(3) Any loan or grant receivable, funded from the Low and
31Moderate Income Housing Fund, from homebuyers, homeowners,
32nonprofit or for-profit developers, and other
parties that require
33occupancy by persons of low or moderate income as defined by
34the Community Redevelopment Law (Part 1 (commencing with
35Section 33000)).
36(4) Any funds derived from rents or operation of properties
37acquired for low- and moderate-income housing purposes by other
38parties that were financed with any source of funds, including
39residual receipt payments from developers, conditional grant
40repayments, cost savings and proceeds from refinancing, and
P5 1principal and interest payments from homebuyers subject to
2enforceable income limits.
3(5) A stream of rents or other payments from housing tenants
4or operators of low- and moderate-income housing financed with
5any source of funds that are used to maintain, operate, and enforce
6the affordability of housing or
for enforceable obligations
7associated with low- and moderate-income housing.
8(6) (A) Repayments of loans or deferrals owed to the Low and
9Moderate Income Housing Fund pursuant to subparagraph (G) of
10paragraph (1) of subdivision (d) of Section 34171, which shall be
11used consistent with the affordable housing requirements in the
12Community Redevelopment Law (Part 1 (commencing with
13Section 33000)).
14(B) Loan or deferral repayments shall not be made prior to the
152013-14 fiscal year. Beginning in the 2013-14 fiscal year, the
16maximum repayment amount authorized each fiscal year for
17repayments made pursuant to this paragraph and subdivision (b)
18of Section 34191.4 combined shall be equal to one-half of the
19increase between the amount distributed to taxing entities
pursuant
20to paragraph (4) of subdivision (a) of Section 34183 in that fiscal
21year and the amount distributed to taxing entities pursuant to that
22paragraph in the 2012-13 base year. Loan or deferral repayments
23made pursuant to this paragraph shall take priority over amounts
24to be repaid pursuant to subdivision (b) of Section 34191.4.
25(f) If a development includes both low- and moderate-income
26housing that meets the definition of a housing asset under
27subdivision (e) and other types of property use, including, but not
28limited to, commercial use, governmental use, open space, and
29parks, the oversight board shall consider the overall value to the
30community as well as the benefit to taxing entities of keeping the
31entire development intact or dividing the title and control over the
32property between the housing successor and the successor agency
33or
other public or private agencies. The disposition of those assets
34may be accomplished by a revenue-sharing arrangement as
35approved by the oversight board on behalf of the affected taxing
36entities.
37(g) (1) (A) The housing successor may designate the use of
38and commit indebtedness obligation proceeds that remain after the
39satisfaction of enforceable obligations that have been approved in
40a Recognized Obligation Payment Schedule and that are consistent
P6 1with the indebtedness obligation covenants. The proceeds shall be
2derived from indebtedness obligations that were issued for the
3purposes of affordable housing prior to June 28, 2011. Bond
4proceeds derived from bonds issued between January 1, 2011, and
5June 28, 2011, shall only be used for projects that meet the criteria
6set forth in subparagraph
(A) or (B) of paragraph (1) of subdivision
7(c) of Section 34191.4. Enforceable obligations may be satisfied
8by the creation of reserves for the projects that are the subject of
9the enforceable obligation that are consistent with the contractual
10obligations for those projects, or by expending funds to complete
11the projects.
12(B) The housing successor shall provide notice to the successor
13agency of any designations of use or commitments of funds
14specified in subparagraph (A) that it wishes to make at least 20
15days before the deadline for submission of the Recognized
16Obligation Payment Schedule to the oversight board. Commitments
17and designations shall not be valid and binding on any party until
18they are included in an approved and valid Recognized Obligation
19Payment Schedule. The review of these designations and
20commitments by the successor
agency, oversight board, and
21Department of Finance shall be limited to a determination that the
22designations and commitments are consistent with bond covenants
23and that there are sufficient funds available.
24(2) Funds shall be used and committed in a manner consistent
25with the purposes of the Low and Moderate Income Housing Asset
26Fund. Notwithstanding any other law, the successor agency shall
27retain and expend the excess housing obligation proceeds at the
28discretion of the housing successor, provided that the successor
29agency ensures that the proceeds are expended in a manner
30consistent with the indebtedness obligation covenants and with
31any requirements relating to the tax status of those obligations.
32The amount expended shall not exceed the amount of indebtedness
33obligation proceeds available and such expenditure shall constitute
34the
creation of excess housing proceeds expenditures to be paid
35from the excess proceeds. Excess housing proceeds expenditures
36shall be listed separately on the Recognized Obligation Payment
37Schedule submitted by the successor agency.
38(h) This section shall not be construed to provide any stream of
39tax increment financing.
Section 34191.4 of the Health and Safety Code is
2amended to read:
The following provisions shall apply to any successor
4agency that has been issued a finding of completion by the
5Department of Finance:
6(a) All real property and interests in real property identified in
7subparagraph (C) of paragraph (5) of subdivision (c) of Section
834179.5 shall be transferred to the Community Redevelopment
9Property Trust Fund of the successor agency upon approval by the
10Department of Finance of the long-range property management
11plan submitted by the successor agency pursuant to subdivision
12(b) of Section 34191.5 unless that property is subject to the
13requirements of any existing enforceable obligation.
14(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
15application by
the successor agency and approval by the oversight
16board, loan agreements entered into between the redevelopment
17agency and the city, county, or city and county that created the
18redevelopment agency shall be deemed to be enforceable
19obligations provided that the oversight board makes a finding that
20the loan was for legitimate redevelopment purposes.
21(2) If the oversight board finds that the loan is an enforceable
22obligation, the accumulated interest on the remaining principal
23amount of the loan shall be recalculated from origination at the
24interest rate earned by funds deposited into the Local Agency
25Investment Fund. The loan shall be repaid to the city, county, or
26city and county in accordance with a defined schedule over a
27reasonable term of years at an interest rate not to exceed the interest
28rate earned by funds deposited into the Local Agency Investment
29
Fund. The annual loan repayments provided for in the recognized
30obligation payment schedules shall be subject to all of the following
31limitations:
32(A) Loan repayments shall not be made prior to the 2013-14
33fiscal year. Beginning in the 2013-14 fiscal year, the maximum
34repayment amount authorized each fiscal year for repayments
35made pursuant to this subdivision and paragraph (7) of subdivision
36(e) of Section 34176 combined shall be equal to one-half of the
37increase between the amount distributed to the taxing entities
38pursuant to paragraph (4) of subdivision (a) of Section 34183 in
39that fiscal year and the amount distributed to taxing entities
40pursuant to that paragraph in the 2012-13 base year, provided,
P8 1however, that calculation of the amount distributed to taxing
2entities during the 2012-13 base year shall not include any amounts
3distributed to taxing entities pursuant to the due diligence review
4process established in Sections 34179.5 to
34179.8, inclusive.
5Loan or deferral repayments made pursuant to this subdivision
6shall be second in priority to amounts to be repaid pursuant to
7paragraph (7) of subdivision (e) of Section 34176.
8(B) Repayments received by the city, county, or city and county
9that formed the redevelopment agency shall first be used to retire
10any outstanding amounts borrowed and owed to the Low and
11Moderate Income Housing Fund of the former redevelopment
12agency for purposes of the Supplemental Educational Revenue
13Augmentation Fund and shall be distributed to the Low and
14Moderate Income Housing Asset Fund established by subdivision
15(d) of Section 34176.
16(C) Twenty percent of any loan repayment shall be deducted
17from the loan repayment amount and shall be transferred to the
18Low and Moderate Income Housing Asset Fund, after all
19outstanding loans from the Low and Moderate Income Housing
20Fund for
purposes of the Supplemental Educational Revenue
21Augmentation Fund have been paid.
22(c) (1) Bond proceeds derived from bonds issued on or before
23June 28, 2011, shall be used for the purposes for which the bonds
24were sold.
25 (A) Bond proceeds derived from bonds issued between January
261, 2011, and June 28, 2011, shall only be used for projects which
27meet the following criteria, as determined by a resolution issued
28by the oversight board:
29(i) The project shall be consistent with the applicable regional
30sustainable communities strategy or alternative planning strategy
31adopted pursuant to Section 65080 of the Government Code that
32the State Air Resources Board has determined would, if
33implemented, achieve the greenhouse gas emission reduction
34targets established by the board or, if a sustainable
communities
35strategy is not required for a region by law, a regional
36transportation plan that includes programs and policies to reduce
37greenhouse gas emissions.
38(ii) Two or more significant planning or implementation actions
39shall have occurred on or before December 31, 2010. The term
P9 1“significant planning and implementation actions” means any of
2the following:
3(I) An action approved by the governing body of the city,
4county, city and county, the board of the former redevelopment
5agency, or the planning commission directly related to the planning
6or implementation of the project.
7(II) The project is included within an approved city, county,
8city and county, or redevelopment agency planning document,
9including, but not limited to, a redevelopment agency five-year
10implementation plan, capital improvement plan, master
plan, or
11other planning document.
12(III) The expenditure by the city, county, city and county, or
13project sponsor, of more than twenty-five thousand dollars
14($25,000) on planning-related activities for the project within one
15fiscal year, or fifty thousand dollars ($50,000) in total, over
16multiple fiscal years.
17(iii) Documentation dated on or before December 31, 2010,
18shall be provided indicating the intention to finance all or a portion
19of the project with the future issuance of long-term debt, or
20documentation showing that the issuance of long-term
21redevelopment agency debt was being planned on or before
22December 31, 2010.
23(iv) Each construction contract over one hundred thousand
24dollars ($100,000) shall include a provision that prevailing wage
25will be paid by the contractor and all of that contractor’s
26
subcontractors.
27(v) For each construction contract over two hundred fifty
28thousand dollars ($250,000), the successor agency shall require
29prospective contractors to submit a standardized questionnaire and
30financial statements as part of their bid package, to establish the
31contractor’s financial ability and experience in performing large
32construction projects.
33(B) Any city, county, or city and county that funded an eligible
34project, meeting the criteria listed in clauses (i) to (iii), inclusive,
35of subparagraph (A) with funds other than redevelopment funds,
36between June 28, 2011, and the effective date of the act adding
37this paragraph, shall be eligible to be reimbursed utilizing 2011
38bond proceeds, if the project meets the purpose for which the bonds
39were issued.
P10 1(C) Any successor agency requesting the use of bond proceeds
2derived from bonds issued between January 1, 2011, and June 28,
32011, in accordance with subparagraphs (A) and (B), shall place
4that request on its Recognized Obligation Payment Schedule. The
5successor agency shall place each project on a separate Recognized
6Obligation Payment Schedule line item. The successor agency
7shall detail in the resolution adopting the Recognized Obligation
8Payment Schedule how each project will meet the requirement in
9subparagraphs (A) and (B), and all documentation showing how
10the project meets those criteria shall be attached to the resolution.
11The resolution adopting the Recognized Obligation Payment
12Schedule, including the supporting documentation, shall be
13forwarded to the department for review and approval or denial.
14Pursuant to subdivision (h) of Section 34179, the department may
15review and deny any action by the oversight board.
16(2) (A) Notwithstanding Section 34177.3 or any other
17conflicting provision of law, bond proceeds in excess of the
18amounts needed to satisfy approved enforceable obligations shall
19thereafter be expended in a manner consistent with the original
20bond covenants. Enforceable obligations may be satisfied by the
21creation of reserves for projects that are the subject of the
22enforceable obligation and that are consistent with the contractual
23obligations for those projects, or by expending funds to complete
24the projects. An expenditure made pursuant to this paragraph shall
25constitute the creation of excess bond proceeds obligations to be
26paid from the excess proceeds. Excess bond proceeds obligations
27shall be listed separately on the Recognized Obligation Payment
28Schedule submitted by the successor agency.
22 29(B)
30If remaining bond proceeds cannot be spent in a manner
31
consistent with the bond covenants pursuant to subparagraph (A),
32the proceeds shall be used to defease the bonds or to purchase
33those same outstanding bonds on the open market for cancellation.
begin insertSection 34191.4 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
35amended to read:end insert
The following provisions shall apply to any successor
37agency that has been issued a finding of completion by the
38Department of Finance:
39(a) All real property and interests in real property identified in
40subparagraph (C) of paragraph (5) of subdivision (c) of Section
P11 134179.5 shall be transferred to the Community Redevelopment
2Property Trust Fund of the successor agency upon approval by the
3Department of Finance of the long-range property management
4plan submitted by the successor agency pursuant to subdivision
5(b) of Section 34191.5 unless that property is subject to the
6requirements of any existing enforceable obligation.
7(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
8application
by the successor agency and approval by the oversight
9board, loan agreements entered into between the redevelopment
10agency and the city, county, or city and county that created the
11redevelopment agency shall be deemed to be enforceable
12obligations provided that the oversight board makes a finding that
13the loan was for legitimate redevelopment purposes.
14(2) If the oversight board finds that the loan is an enforceable
15obligation, the accumulated interest on the remaining principal
16amount of the loan shall be recalculated from origination at the
17interest rate earned by funds deposited into the Local Agency
18Investment Fund. The loan shall be repaid to the city, county, or
19city and county in accordance with a defined schedule over a
20reasonable term of years at an interest rate not to exceed the interest
21rate earned by funds deposited into the Local Agency Investment
22Fund. The annual loan repayments provided for in the recognized
23obligation payment
schedules shall be subject to all of the following
24limitations:
25(A) Loan repayments shall not be made prior to the 2013-14
26fiscal year. Beginning in the 2013-14 fiscal year, the maximum
27repayment amount authorized each fiscal year for repayments
28made pursuant to this subdivision and paragraph (7) of subdivision
29(e) of Section 34176 combined shall be equal to one-half of the
30increase between the amount distributed to the taxing entities
31pursuant to paragraph (4) of subdivision (a) of Section 34183 in
32that fiscal year and the amount distributed to taxing entities
33pursuant to that paragraph in the 2012-13 base year, provided,
34however, that calculation of the amount distributed to taxing
35entities during the 2012-13 base year shall not include any amounts
36distributed to taxing entities pursuant to the due diligence review
37process established in Sections 34179.5 to 34179.8, inclusive.
38Loan or deferral repayments made pursuant to this subdivision
39
shall be second in priority to amounts to be repaid pursuant to
40paragraph (7) of subdivision (e) of Section 34176.
P12 1(B) Repayments received by the city, county, or city and county
2that formed the redevelopment agency shall first be used to retire
3any outstanding amounts borrowed and owed to the Low and
4Moderate Income Housing Fund of the former redevelopment
5agency for purposes of the Supplemental Educational Revenue
6Augmentation Fund and shall be distributed to the Low and
7Moderate Income Housing Asset Fund established by subdivision
8(d) of Section 34176.
9(C) Twenty percent of any loan repayment shall be deducted
10from the loan repayment amount and shall be transferred to the
11Low and Moderate Income Housing Asset Fund, after all
12outstanding loans from the Low and Moderate Income Housing
13Fund for purposes of the Supplemental Educational Revenue
14Augmentation Fund have been paid.
15(c) (1) Bond proceeds derived from bonds issued on or before
16begin delete December 31, 2010,end deletebegin insert
June 28, 2011,end insert shall be used for the purposes
17for which the bonds were sold.
18(2) begin delete(A)end deletebegin delete end deleteNotwithstanding Section 34177.3 or any other
19conflicting provision of law, bond proceedsbegin insert derived from bonds
20issued on or before December 31, 2010,end insert in excess of the amounts
21needed to satisfy approved enforceable obligations shall thereafter
22be expended in a manner consistent with the original bond
23covenants. Enforceable obligations may be satisfied by the creation
24of reserves for projects that are the subject of the enforceable
25obligation and that are consistent with the contractual obligations
26for those projects, or by expending funds
to complete the projects.
27An expenditure made pursuant to this paragraph shall constitute
28the creation of excess bond proceeds obligations to be paid from
29the excess proceeds. Excess bond proceeds obligations shall be
30listed separately on the Recognized Obligation Payment Schedule
31submitted by the successor agency.
32(3) (A) Bond proceeds derived from bonds issued between
33January 1, 2011, and June 28, 2011, shall only be used for projects
34which meet the following criteria, as determined by a resolution
35issued by the oversight board:
36(i) The project shall be consistent with the applicable regional
37sustainable communities strategy or alternative planning strategy
38adopted pursuant to Section 65080 of the Government Code that
39the State Air Resources Board has determined would, if
40
implemented, achieve the greenhouse gas emission reduction
P13 1targets established by the board or, if a sustainable communities
2strategy is not required for a region by law, a regional
3transportation plan that includes programs and policies to reduce
4greenhouse gas emissions.
5(ii) Two or more significant planning or implementation actions
6shall have occurred on or before December 31, 2010. The term
7“significant planning and implementation actions” means any of
8the following:
9(I) An action approved by the governing body of the city, county,
10city and county, the board of the former redevelopment agency,
11or the planning commission directly related to the planning or
12implementation of the project.
13(II) The project is included within an approved city, county, city
14and county, or redevelopment agency planning document,
15
including, but not limited to, a redevelopment agency five-year
16implementation plan, capital improvement plan, master plan, or
17other planning document.
18(III) The expenditure by the city, county, city and county, or
19project sponsor, of more than twenty-five thousand dollars
20($25,000) on planning-related activities for the project within one
21fiscal year, or fifty thousand dollars ($50,000) in total, over
22multiple fiscal years.
23(iii) Documentation dated on or before December 31, 2010,
24shall be provided indicating the intention to finance all or a portion
25of the project with the future issuance of long-term debt, or
26documentation showing that the issuance of long-term
27redevelopment agency debt was being planned on or before
28December 31, 2010.
29(iv) Each construction contract over one hundred thousand
30dollars ($100,000)
shall include a provision that prevailing wage
31will be paid by the contractor and all of that contractor’s
32subcontractors.
33(v) For each construction contract over two hundred fifty
34thousand dollars ($250,000), the successor agency shall require
35prospective contractors to submit a standardized questionnaire
36and financial statements as part of their bid package, to establish
37the contractor’s financial ability and experience in performing
38large construction projects.
39(B) Any city, county, or city and county that funded an eligible
40project, meeting the criteria listed in clauses (i) to (iii), inclusive,
P14 1of subparagraph (A) with funds other than redevelopment funds,
2between June 28, 2011, and the effective date of the act adding
3this paragraph, shall be eligible to be reimbursed utilizing 2011
4bond proceeds, if the project meets the purpose for which the bonds
5were issued.
6(C) Any successor agency requesting the use of bond proceeds
7derived from bonds issued between January 1, 2011, and June 28,
82011, in accordance with subparagraphs (A) and (B), shall place
9that request on its Recognized Obligation Payment Schedule. The
10successor agency shall place each project on a separate
11Recognized Obligation Payment Schedule line item. The successor
12agency shall detail in the resolution adopting the Recognized
13Obligation Payment Schedule how each project will meet the
14requirement in subparagraphs (A) and (B), and all documentation
15showing how the project meets those criteria shall be attached to
16the resolution. The resolution adopting the Recognized Obligation
17Payment Schedule, including the supporting documentation, shall
18be forwarded to the Department of Finance for review and
19approval or denial. Pursuant to subdivision (h) of Section 34179,
20the Department of Finance may review and deny any action by
21the oversight board.
22(B)
end delete
23begin insert(4)end insert If remaining bond proceedsbegin insert derived from bonds issued on
24or before December 31, 2010,end insert cannot be spent in a manner
25consistent with the bond covenants pursuant tobegin delete subparagraph (A),end delete
26begin insert paragraph (2), or if bond proceeds derived from bonds issued
27between January 1, 2011, and June 28, 2011, cannot be used for
28projects that met the requirements in subparagraphs (A) and (B)
29of paragraph (3),end insert the proceeds shall be used to defeasebegin insert all or a
30portion ofend insert
the bonds or to purchasebegin insert all or a portion ofend insert those same
31outstanding bonds on the open market for cancellation.begin insert
If only a
32portion of the bonds proceeds will be used, the successor agency
33shall defease or purchase bonds for cancellation in a manner that
34maximizes fiscal savings.end insert
begin insertSection 34191.4 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert
The following provisions shall apply to any successor
38agency that has been issued a finding of completion by the
39Department of Finance:
P15 1(a) All real property and interests in real property identified in
2subparagraph (C) of paragraph (5) of subdivision (c) of Section
334179.5 shall be transferred to the Community Redevelopment
4Property Trust Fund of the successor agency upon approval by the
5Department of Finance of the long-range property management
6plan submitted by the successor agency pursuant to subdivision
7(b) of Section 34191.5 unless that property is subject to the
8requirements of any existing enforceable obligation.
9(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
10application
by the successor agency and approval by the oversight
11board, loan agreementsbegin insert, contracts, or arrangementsend insert entered into
12between the redevelopment agency and the city, county, or city
13and county that created the redevelopment agency shall be deemed
14to bebegin insert existingend insert enforceable obligations provided that the oversight
15board makes a finding that the loan was for legitimate
16redevelopment purposes.
17(2) If the oversight board finds that the loanbegin insert agreement, contract,
18or arrangement entered into between the redevelopment agency
19and the city, county, or city and county that created the
20redevelopment agencyend insert is anbegin insert
existingend insert enforceable obligation, the
21accumulated interest on the remaining principal amount of the loan
22shall be recalculated frombegin insert the loanend insert origination at thebegin insert historicend insert
23 interest rate earned by funds deposited into the Local Agency
24Investmentbegin delete Fund. Theend deletebegin insert Fund at the time of the loan origination and
25adjusted quarterly over time. For purposes of this paragraph, the
26term “remaining principal amount” means the amount of principal
27calculated from the loan origination date and any increase thereto
28that remains unpaid as of the date of oversight board approval.
29After the interest on the remaining
principal amount has been
30calculated, theend insert loan shall be repaid to the city, county, or city and
31county in accordance with a defined schedule over a reasonable
32term of years at an interest rate not to exceed thebegin insert quarterly adjustedend insert
33 interest rate earned by funds deposited into the Local Agency
34Investment Fund. The annual loan repayments provided for in the
35recognized obligation payment schedules shall be subject to all of
36the following limitations:
37(A) Loan repayments shall not be made prior to the 2013-14
38fiscal year. Beginning in the 2013-14 fiscal year, the maximum
39repayment amount authorized each fiscal year for repayments
40made pursuant to this subdivision and paragraph (7) of subdivision
P16 1(e) of Section 34176 combined shall be equal to one-half of the
2increase between the amount distributed to the taxing entities
3
pursuant to paragraph (4) of subdivision (a) of Section 34183 in
4that fiscal year and the amount distributed to taxing entities
5pursuant to that paragraph in the 2012-13 base year, provided,
6however, that calculation of the amount distributed to taxing
7entities during the 2012-13 base year shall not include any amounts
8distributed to taxing entities pursuant to the due diligence review
9process established in Sections 34179.5 to 34179.8, inclusive.
10Loan or deferral repayments made pursuant to this subdivision
11shall be second in priority to amounts to be repaid pursuant to
12paragraph (7) of subdivision (e) of Section 34176.
13(B) Repayments received by the city, county, or city and county
14that formed the redevelopment agency shall first be used to retire
15any outstanding amounts borrowed and owed to the Low and
16Moderate Income Housing Fund of the former redevelopment
17agency for purposes of the Supplemental Educational Revenue
18Augmentation Fund and
shall be distributed to the Low and
19Moderate Income Housing Asset Fund established by subdivision
20(d) of Section 34176.
21(C) Twenty percent of any loan repayment shall be deducted
22from the loan repayment amount and shall be transferred to the
23Low and Moderate Income Housing Asset Fund, after all
24outstanding loans from the Low and Moderate Income Housing
25Fund for purposes of the Supplemental Educational Revenue
26Augmentation Fund have been paid.
27(c) (1) Bond proceeds derived from bonds issued on or before
28begin delete December 31, 2010,end deletebegin insert June 28, 2011,end insert shall be used for the purposes
29for which the bonds were sold.
30(2) begin delete(A)end deletebegin delete end deleteNotwithstanding
Section 34177.3 or any other
31conflicting provision of law, bond proceedsbegin insert derived from bonds
32issued on or before December 31, 2010,end insert in excess of the amounts
33needed to satisfy approved enforceable obligations shall thereafter
34be expended in a manner consistent with the original bond
35covenants. Enforceable obligations may be satisfied by the creation
36of reserves for projects that are the subject of the enforceable
37obligation and that are consistent with the contractual obligations
38for those projects, or by expending funds to complete the projects.
39An expenditure made pursuant to this paragraph shall constitute
40the creation of excess bond proceeds obligations to be paid from
P17 1the excess proceeds. Excess bond proceeds obligations shall be
2listed separately on the Recognized Obligation Payment Schedule
3submitted by the successor agency.
4(3) (A) Bond proceeds derived from bonds issued between
5January 1, 2011, and June 28, 2011, shall only be used for projects
6which meet the following criteria, as determined by a resolution
7issued by the oversight board:
8(i) The project shall be consistent with the applicable regional
9sustainable communities strategy or alternative planning strategy
10adopted pursuant to Section 65080 of the Government Code that
11the State Air Resources Board has determined would, if
12implemented, achieve the greenhouse gas emission reduction
13targets established by the board or, if a sustainable communities
14strategy is not required for a region by law, a regional
15transportation plan that includes programs and policies to reduce
16greenhouse gas emissions.
17(ii) Two or more significant planning
or implementation actions
18shall have occurred on or before December 31, 2010. The term
19“significant planning and implementation actions” means any of
20the following:
21(I) An action approved by the governing body of the city, county,
22city and county, the board of the former redevelopment agency,
23or the planning commission directly related to the planning or
24implementation of the project.
25(II) The project is included within an approved city, county, city
26and county, or redevelopment agency planning document,
27including, but not limited to, a redevelopment agency five-year
28implementation plan, capital improvement plan, master plan, or
29other planning document.
30(III) The expenditure by the city, county, city and county, or
31project sponsor, of more than
twenty-five thousand dollars
32($25,000) on planning-related activities for the project within one
33fiscal year, or fifty thousand dollars ($50,000) in total, over
34multiple fiscal years.
35(iii) Documentation dated on or before December 31, 2010,
36shall be provided indicating the intention to finance all or a portion
37of the project with the future issuance of long-term debt, or
38documentation showing that the issuance of long-term
39redevelopment agency debt was being planned on or before
40December 31, 2010.
P18 1(iv) Each construction contract over one hundred thousand
2dollars ($100,000) shall include a provision that prevailing wage
3will be paid by the contractor and all of that contractor’s
4subcontractors.
5(v) For each construction contract over two hundred
fifty
6thousand dollars ($250,000), the successor agency shall require
7prospective contractors to submit a standardized questionnaire
8and financial statements as part of their bid package, to establish
9the contractor’s financial ability and experience in performing
10large construction projects.
11(B) Any city, county, or city and county that funded an eligible
12project, meeting the criteria listed in clauses (i) to (iii), inclusive,
13of subparagraph (A) with funds other than redevelopment funds,
14between June 28, 2011, and the effective date of the act adding
15this paragraph, shall be eligible to be reimbursed utilizing 2011
16bond proceeds, if the project meets the purpose for which the bonds
17were issued.
18(C) Any successor agency requesting the use of bond proceeds
19derived from bonds issued between January 1, 2011, and June 28,
202011, in
accordance with subparagraphs (A) and (B), shall place
21that request on its Recognized Obligation Payment Schedule. The
22successor agency shall place each project on a separate
23Recognized Obligation Payment Schedule line item. The successor
24agency shall detail in the resolution adopting the Recognized
25Obligation Payment Schedule how each project will meet the
26requirement in subparagraphs (A) and (B), and all documentation
27showing how the project meets those criteria shall be attached to
28the resolution. The resolution adopting the Recognized Obligation
29Payment Schedule, including the supporting documentation, shall
30be forwarded to the Department of Finance for review and
31approval or denial. Pursuant to subdivision (h) of Section 34179,
32the Department of Finance may review and deny any action by
33the oversight board.
34(B)
end delete
35begin insert(4)end insert If remaining bond proceedsbegin insert derived from bonds issued on
36or before December 31, 2010, end insert cannot be spent in a manner
37consistent with the bond covenants pursuant tobegin delete subparagraph (A),end delete
38begin insert paragraph (2), or if bond proceeds derived from bonds issued
39between January 1, 2011, and June 28, 2011, cannot be used for
40projects that met the requirements in subparagraphs (A) and (B)
P19 1of paragraph (3), end insert the proceeds shall be used to defeasebegin insert
all or a
2portion ofend insert the bonds or to purchasebegin insert all or a portion ofend insert those same
3outstanding bonds on the open market for cancellation.begin insert If only end insertbegin inserta
4portion of the bonds proceeds will be used, the successor agency
5shall defease or purchase bonds for cancellation in a manner that
6maximizes fiscal savings. end insert
begin insertSection 34191.4 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
8amended to read:end insert
The following provisions shall apply to any successor
10agency that has been issued a finding of completion by the
11Department of Finance:
12(a) All real property and interests in real property identified in
13subparagraph (C) of paragraph (5) of subdivision (c) of Section
1434179.5 shall be transferred to the Community Redevelopment
15Property Trust Fund of the successor agency upon approval by the
16Department of Finance of the long-range property management
17plan submitted by the successor agency pursuant to subdivision
18(b) of Section 34191.5 unless that property is subject to the
19requirements of any existing enforceable obligation.
20(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
21application
by the successor agency and approval by the oversight
22board,begin delete loan agreements entered into between theend deletebegin insert
loans made to aend insert
23 redevelopment agencybegin delete andend deletebegin insert byend insert the city, county, or city and county
24that created the redevelopment agency shall be deemed to be
25enforceable obligations provided that the oversight board makes
26a finding that thebegin delete loan wasend deletebegin insert loans wereend insert for legitimate redevelopment
27purposes.
28(2) If the oversight board finds thatbegin delete theend deletebegin insert aend insert loan is an
enforceable
29obligation, the accumulated interest on the remaining principal
30begin delete amountend deletebegin insert balanceend insert of the loan shall be recalculated from origination
31begin delete atend deletebegin insert usingend insert the interest rate earned by funds deposited into the Local
32Agency Investment Fundbegin insert in effect on the date of loan origination,
33and as adjusted quarterly thereafterend insert. Thebegin insert remaining principal
34balance of theend insert loanbegin insert
and the accumulated interestend insert
shall be repaid
35to the city, county, or city and county in accordance with a defined
36schedule over a reasonable term of years at an interest rate not to
37exceed the interest rate earned by funds deposited into the Local
38Agency Investment Fundbegin insert as the rate is adjusted on a quarterly
39basisend insert. The annual loan repayments provided for in the recognized
P20 1obligation payment schedules shall be subject to all of the following
2limitations:
3(A) Loan repayments shall not be made prior to the 2013-14
4fiscal year. Beginning in the 2013-14 fiscal year, the maximum
5repayment amount authorized each fiscal year for repayments
6made pursuant to this subdivision and paragraph (7) of subdivision
7(e) of Section 34176 combined shall be equal to one-half of the
8increase between the amount distributed to the taxing entities
9pursuant to paragraph (4)
of subdivision (a) of Section 34183 in
10that fiscal year and the amount distributed to taxing entities
11pursuant to that paragraph in the 2012-13 base year, provided,
12however, that calculation of the amount distributed to taxing
13entities during the 2012-13 base year shall not include any amounts
14distributed to taxing entities pursuant to the due diligence review
15process established in Sections 34179.5 to 34179.8, inclusive.
16Loan or deferral repayments made pursuant to this subdivision
17shall be second in priority to amounts to be repaid pursuant to
18paragraph (7) of subdivision (e) of Section 34176.
19(B) Repayments received by the city, county, or city and county
20that formed the redevelopment agency shall first be used to retire
21any outstanding amounts borrowed and owed to the Low and
22Moderate Income Housing Fund of the former redevelopment
23agency for purposes of the Supplemental Educational Revenue
24Augmentation Fund and shall be distributed to the
Low and
25Moderate Income Housing Asset Fund established by subdivision
26(d) of Section 34176.
27(C) Twenty percent of any loan repayment shall be deducted
28from the loan repayment amount and shall be transferred to the
29Low and Moderate Income Housing Asset Fund, after all
30outstanding loans from the Low and Moderate Income Housing
31Fund for purposes of the Supplemental Educational Revenue
32Augmentation Fund have been paid.
33(3) It is the intent of the Legislature that the amendments to this
34subdivision made by the act adding this paragraph be clarifying.
35(c) (1) Bond proceeds derived from bonds issued on or before
36begin delete December 31, 2010,end deletebegin insert
June 28, 2011,end insert shall be used for the purposes
37for which the bonds were sold.
38(2) begin delete(A)end deletebegin delete end deleteNotwithstanding Section 34177.3 or any other
39conflicting provision of law, bond proceedsbegin insert derived from bonds
40issued on or before December 31, 2010,end insert in excess of the amounts
P21 1needed to satisfy approved enforceable obligations shall thereafter
2be expended in a manner consistent with the original bond
3covenants. Enforceable obligations may be satisfied by the creation
4of reserves for projects that are the subject of the enforceable
5obligation and that are consistent with the contractual obligations
6for those projects, or by expending funds
to complete the projects.
7An expenditure made pursuant to this paragraph shall constitute
8the creation of excess bond proceeds obligations to be paid from
9the excess proceeds. Excess bond proceeds obligations shall be
10listed separately on the Recognized Obligation Payment Schedule
11submitted by the successor agency.
12(3) (A) Bond proceeds derived from bonds issued between
13January 1, 2011, and June 28, 2011, shall only be used for projects
14which meet the following criteria, as determined by a resolution
15issued by the oversight board:
16(i) The project shall be consistent with the applicable regional
17sustainable communities strategy or alternative planning strategy
18adopted pursuant to Section 65080 of the Government Code that
19the State Air Resources Board has
determined would, if
20implemented, achieve the greenhouse gas emission reduction
21targets established by the board or, if a sustainable communities
22strategy is not required for a region by law, a regional
23transportation plan that includes programs and policies to reduce
24greenhouse gas emissions.
25(ii) Two or more significant planning or implementation actions
26shall have occurred on or before December 31, 2010. The term
27“significant planning and implementation actions” means any of
28the following:
29(I) An action approved by the governing body of the city, county,
30city and county, the board of the former redevelopment agency,
31or the planning commission directly related to the planning or
32implementation of the project.
33(II) The project is included within
an approved city, county, city
34and county, or redevelopment agency planning document,
35including, but not limited to, a redevelopment agency five-year
36implementation plan, capital improvement plan, master plan, or
37other planning document.
38(III) The expenditure by the city, county, city and county, or
39project sponsor, of more than twenty-five thousand dollars
40($25,000) on planning related activities for the project within one
P22 1fiscal year, or fifty thousand dollars ($50,000) in total, over
2multiple fiscal years.
3(iii) Documentation dated on or before December 31, 2010,
4shall be provided indicating the intention to finance all or a portion
5of the project with the future issuance of long-term debt, or
6documentation showing that the issuance of long-term
7redevelopment agency debt was being planned on or before
8December 31, 2010.
9(iv) Each construction contract over one hundred thousand
10dollars ($100,000) shall include a provision that prevailing wage
11will be paid by the contractor and all of that contractor’s
12subcontractors.
13(v) For each construction contract over two hundred fifty
14thousand dollars ($250,000), the successor agency shall require
15prospective contractors to submit a standardized questionnaire
16and financial statements as part of their bid package, to establish
17the contractor’s financial ability and experience in performing
18large construction projects.
19(B) Any city, county, or city and county that funded an eligible
20project, meeting the criteria listed in clauses (i) to (iii), inclusive,
21of subparagraph (A) with funds other than redevelopment funds,
22between June 28, 2011, and the
effective date of the act adding
23this paragraph, shall be eligible to be reimbursed utilizing 2011
24bond proceeds, if the project meets the purpose for which the bonds
25were issued.
26(C) Any successor agency requesting the use of bond proceeds
27derived from bonds issued between January 1, 2011, and June 28,
282011, in accordance with subparagraphs (A) and (B), shall place
29that request on its Recognized Obligation Payment Schedule. The
30successor agency shall place each project on a separate
31Recognized Obligation Payment Schedule line item. The successor
32agency shall detail in the resolution adopting the Recognized
33Obligation Payment Schedule how each project will meet the
34requirement in subparagraphs (A) and (B), and all documentation
35showing how the project meets those criteria shall be attached to
36the resolution. The resolution adopting the Recognized Obligation
37Payment Schedule, including the supporting documentation, shall
38
be forwarded to the Department of Finance for review and
39approval or denial. Pursuant to subdivision (h) of Section 34179,
P23 1the Department of Finance may review and deny any action by
2the oversight board.
3(B)
end delete
4begin insert(4)end insert If remaining bond proceedsbegin insert derived from bonds issued on
5or before December 31, 2010,end insert cannot be spent in a manner
6consistent with the bond covenants pursuant tobegin delete subparagraph (A),end delete
7begin insert
paragraph (2), or if bond proceeds derived from bonds issued
8between January 1, 2011, and June 28, 2011, cannot be used for
9projects that met the requirements in subparagraphs (A) and (B)
10of paragraph (3),end insert the proceeds shall be used to defeasebegin insert all or a
11portion ofend insert the bonds or to purchasebegin insert
all or a portion ofend insert those same
12outstanding bonds on the open market for cancellation.begin insert If only end insertbegin inserta
13portion of the bonds proceeds will be used, the successor agency
14shall defease or purchase bonds for cancellation in a manner that
15maximizes fiscal savings.end insert
16(d) Notwithstanding subdivision (b) of Section 34163, if a
17successor agency has received a finding of completion, the
18successor agency may enter into, or amend existing, contracts and
19agreements, or otherwise administer projects in connection with
20enforceable obligations approved pursuant to subdivision (m) of
21Section 34177, including the substitution of
private developer
22capital in a disposition and development agreement that has been
23deemed an enforceable obligation, if the contract, agreement, or
24project will not commit new property tax funds, and will not
25otherwise reduce property tax revenues or payments made pursuant
26to paragraph (4) of subdivision (a) of Section 34183 to the taxing
27agencies.
(a) Section 2 of this bill shall become operative only
29if (1) this bill is enacted and becomes effective on or before January
301, 2015, (2) this bill amends Section 34191.4 of the Health and
31Safety Code, and (3) both Assembly Bill 1582 and Senate Bill 1129
32are not enacted, or as enacted do not amend that section, in which
33case neither Section 2.3 nor 2.5 of this bill shall become operative.
34(b) Section 2.3 of this bill
incorporates amendments to Section
3534191.4 of the Health and Safety Code proposed by both this bill
36and Assembly Bill 1582. It shall only become operative if (1) both
37bills are enacted and become effective on or before January 1,
382015, (2) each bill amends Section 34191.4 of the Health and
39Safety Code, (3) Senate Bill 1129 is not enacted or as enacted does
40not amend that section, and (4) this bill is enacted after Assembly
P24 1Bill 1582, in which case neither Section 2 nor Section 2.5 of this
2bill shall become operative.
3(c) Section 2.5 of this bill incorporates amendments to Section
434191.4 of the Health and Safety Code proposed by both this bill
5and Senate Bill 1129. It shall only become operative if (1) both
6bills are enacted and become effective on or before January 1,
72015, (2) each bill amends Section 34191.4 of the Health and
8Safety
Code, and (3) this bill is enacted after Senate Bill 1129, in
9which case neither Section 2 nor Section 2.3 of this bill shall
10become operative.
O
93