BILL ANALYSIS �
SB 1033
Page 1
SENATE THIRD READING
SB 1033 (Torres)
As Introduced February 14, 2014
Majority vote
SENATE VOTE :34-0
HOUSING 6-0 LOCAL GOVERNMENT 9-0
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|Ayes:|Beth Gaines, Ammiano, |Ayes:|Achadjian, Levine, Alejo, |
| |Brown, Maienschein, | |Bradford, Gordon, |
| |Quirk-Silva, Yamada | |Melendez, Frazier, |
| | | |Rendon, Waldron |
| | | | |
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SUMMARY : Updates housing element law references to
redevelopment housing funds with a reference to housing
successor agency funds.
FISCAL EFFECT : None
COMMENTS :
Purpose of the bill: The housing element describes a city's or
county's housing goals, the programs it will administer to
achieve those goals, and the resources that it has and will use
to implement those programs. With the demise of redevelopment,
there are no redevelopment tax increment funds available for
housing purposes, but housing successor agencies do receive
limited program income from outstanding loans originally made by
their communities' redevelopment agencies (RDAs). This bill
updates housing element law to reflect this change in available
funding sources for housing.
RDA dissolution: Historically, the Community Redevelopment Law
allowed a local government to establish a redevelopment area and
capture all of the increase in property taxes generated within
the area (referred to as "tax increment") over a period of
decades. The law required RDAs to deposit 20% of tax increment
into a Low and Moderate Income Housing Fund (L&M fund) to be
used to increase, improve, and preserve the community's supply
of low- and moderate-income housing available at an affordable
housing cost.
SB 1033
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In 2011, as a result of serious budget shortfalls, the Governor
proposed eliminating RDAs and creating a Voluntary Alternative
Redevelopment Program (VARP) to replace them. Two pieces of
budget trailer legislation, AB 26 1X (Blumenfield), Chapter 5,
Statutes of 2011-12 First Extraordinary Session, and AB 27 1X
(Blumenfield), Chapter 6, Statutes of 2011-12 First
Extraordinary Session, were enacted to achieve this goal. AB 26
1X provided for the dissolution of RDAs and for the winding up
of their obligations by successor agencies. AB 27 1X
established VARP, which would have allowed RDAs to continue
operations if their local city or county made voluntary annual
payments benefitting schools, for the purpose of offsetting
state education costs. In CRA v. Matosantos (2011), the
California Supreme Court upheld the constitutionality of AB 26
1X, but invalidated AB 27 1X. This had the effect of dissolving
RDAs without giving them the option of continuing operations by
offsetting state education costs. As a result, all of the
state's roughly 400 RDAs dissolved on February 1, 2012.
Housing Elements: Every local government is required to prepare
a housing element as part of its general plan. The housing
element process starts when HCD determines the number of new
housing units a region is projected to need at all income levels
(very low-, low-, moderate-, and above-moderate income) over the
course of the next housing element planning period to
accommodate population growth and overcome existing deficiencies
in the housing supply. This number is known as the regional
housing needs assessment (RHNA). The council of government
(COG) for the region, or HCD for areas with no COG, then assigns
a share of the RHNA number to every city and county in the
region based on a variety of factors.
A housing element must identify and analyze existing and
projected housing needs, identify adequate sites with
appropriate zoning to meet its share of the RHNA, and ensure
that regulatory systems provide opportunities for, and do not
unduly constrain, housing development. Among other things, the
element must specifically include an analysis of existing
assisted housing developments that are eligible to convert to
market-rate rental housing upon the expiration of affordability
restrictions, and identify all public resources, including RDA
tax increment funds, that are available to preserve the
affordability of these housing units. In addition, the housing
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element must include a program of actions that the city or
county will undertake to implement the policies and achieve the
goals and objectives of the housing element through regulatory
measures and the utilization of available public funding,
including RDA tax increment funds. HCD reviews both draft and
adopted housing elements to determine whether or not they are in
substantial compliance with the law.
This bill updates housing element law references to RDA housing
funds with a reference to housing successor agency funds.
Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916)
319-2085
FN: 0004146