Bill Text: CA AB1793 | 2013-2014 | Regular Session | Chaptered
Bill Title: Redevelopment housing successor: report.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-27 - Chaptered by Secretary of State - Chapter 672, Statutes of 2014. [AB1793 Detail]
Download: California-2013-AB1793-Chaptered.html
BILL NUMBER: AB 1793 CHAPTERED
BILL TEXT
CHAPTER 672
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 19, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE JUNE 17, 2014
INTRODUCED BY Assembly Member Chau
FEBRUARY 18, 2014
An act to amend Section 34176.1 of the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1793, Chau. Redevelopment housing successor: report.
Existing law dissolved redevelopment agencies and community
development agencies, and provides for the designation of successor
agencies that are required to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, make payments due
for enforceable obligations, as defined.
Existing law provides that 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. Existing law requires that any funds
transferred to the city, county, or city and county or the entity
assuming the housing functions of the former redevelopment agency,
together with any funds generated from housing assets, to be
maintained in a separate Low and Moderate Income Housing Asset Fund
to be used in accordance with applicable housing-related provisions
of the Community Redevelopment Law, except as specified. Existing law
requires the housing successor annually to provide an independent
financial audit of the fund to its governing body, and to post on its
Internet Web site specified information.
This bill would require that posted information to also include,
as specified, an inventory of homeownership units assisted by the
former redevelopment agency or the housing successor that are subject
to covenants or restrictions or to an adopted program that protects
the former redevelopment agency's investment of moneys from the Low
and Moderate Income Housing Fund.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34176.1 of the Health and Safety Code is
amended to read:
34176.1. Funds in the Low and Moderate Income Housing Asset Fund
described in subdivision (d) of Section 34176 shall be subject to the
provisions of the Community Redevelopment Law (Part 1 (commencing
with Section 33000)) relating to the Low and Moderate Income Housing
Fund, except as follows:
(a) Subdivision (d) of Section 33334.3 and subdivision (a) of
Section 33334.4 shall not apply. Instead, funds received from the
successor agency for items listed on the Recognized Obligation
Payment Schedule shall be expended to meet the enforceable
obligations, and the housing successor shall expend all other funds
in the Low and Moderate Income Housing Asset Fund as follows:
(1) For the purpose of monitoring and preserving the long-term
affordability of units subject to affordability restrictions or
covenants entered into by the redevelopment agency or the housing
successor and for the purpose of administering the activities
described in paragraphs (2) and (3), a housing successor may expend
per fiscal year up to an amount equal to 2 percent of the statutory
value of real property owned by the housing successor and of loans
and grants receivable, including real property and loans and grants
transferred to the housing successor pursuant to Section 34176 and
real property purchased and loans and grants made by the housing
successor. If this amount is less than two hundred thousand dollars
($200,000) for any given fiscal year, the housing successor may
expend up to two hundred thousand dollars ($200,000) in that fiscal
year for these purposes. The Department of Housing and Community
Development shall annually publish on its Internet Web site an
adjustment to this amount to reflect any change in the Consumer Price
Index for All Urban Consumers published by the federal Department of
Labor for the preceding calendar year. For purposes of this
paragraph, "statutory value of real property" means the value of
properties formerly held by the former redevelopment agency as listed
on the housing asset transfer form approved by the Department of
Finance pursuant to paragraph (2) of subdivision (a) of Section
34176, the value of the properties transferred to the housing
successor pursuant to subdivision (f) of Section 34181, and the
purchase price of properties purchased by the housing successor.
(2) Notwithstanding Section 33334.2, if the housing successor has
fulfilled all obligations pursuant to Sections 33413 and 33418, the
housing successor may expend up to two hundred fifty thousand dollars
($250,000) per fiscal year for homeless prevention and rapid
rehousing services for individuals and families who are homeless or
would be homeless but for this assistance, including the provision of
short-term or medium-term rental assistance, housing relocation and
stabilization services including housing search, mediation, or
outreach to property owners, credit repair, security or utility
deposits, utility payments, rental assistance for a final month at a
location, moving cost assistance, and case management, or other
appropriate activities for homelessness prevention and rapid
rehousing of persons who have become homeless.
(3) (A) The housing successor shall expend all funds remaining in
the Low and Moderate Income Housing Asset Fund after the expenditures
allowed pursuant to paragraphs (1) and (2) for the development of
housing affordable to and occupied by households earning 80 percent
or less of the area median income, with at least 30 percent of these
remaining funds expended for the development of rental housing
affordable to and occupied by households earning 30 percent or less
of the area median income and no more than 20 percent of these
remaining funds expended for the development of housing affordable to
and occupied by households earning between 60 percent and 80 percent
of the area median income. A housing successor shall demonstrate in
the annual report described in subdivision (f), for 2019, and every
five years thereafter, that the housing successor's expenditures from
January 1, 2014, through the end of the latest fiscal year covered
in the report comply with the requirements of this subparagraph.
(B) If the housing successor fails to comply with the extremely
low income requirement in any five-year report, then the housing
successor shall ensure that at least 50 percent of these remaining
funds expended in each fiscal year following the latest fiscal year
following the report are expended for the development of rental
housing affordable to, and occupied by, households earning 30 percent
or less of the area median income until the housing successor
demonstrates compliance with the extremely low income requirement in
an annual report described in subdivision (f).
(C) If the housing successor exceeds the expenditure limit for
households earning between 60 percent and 80 percent of the area
median income in any five-year report, the housing successor shall
not expend any of the remaining funds for households earning between
60 percent and 80 percent of the area median income until the housing
successor demonstrates compliance with this limit in an annual
report described in subdivision (f).
(D) For purposes of this subdivision, "development" means new
construction, acquisition and rehabilitation, substantial
rehabilitation as defined in Section 33413, the acquisition of
long-term affordability covenants on multifamily units as described
in Section 33413, or the preservation of an assisted housing
development that is eligible for prepayment or termination or for
which within the expiration of rental restrictions is scheduled to
occur within five years as those terms are defined in Section
65863.10 of the Government Code. Units described in this subparagraph
may be counted towards any outstanding obligations pursuant to
Section 33413, provided that the units meet the requirements of that
section and are counted as provided in that section.
(b) Subdivision (b) of Section 33334.4 shall not apply. Instead,
if the aggregate number of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years exceeds 50 percent of the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period, then the housing successor shall not expend these funds to
assist additional senior housing units until the housing successor or
its host jurisdiction assists, and construction has commenced, a
number of units available to all persons, regardless of age, that is
equal to 50 percent of the aggregate number of units of
deed-restricted rental housing units assisted individually or jointly
by the housing successor, its former redevelopment agency, and its
host jurisdiction within the time period described above.
(c) (1) Program income a housing successor receives shall not be
associated with a project area and, notwithstanding subdivision (g)
of Section 33334.2, may be expended anywhere within the jurisdiction
of the housing successor or transferred pursuant to paragraph (2)
without a finding of benefit to a project area. For purposes of this
paragraph, "program income" means the sources described in paragraphs
(3), (4), and (5) of subdivision (e) of Section 34176 and interest
earned on deposits in the account.
(2) Two or more housing successors within a county, within a
single metropolitan statistical area, within 15 miles of each other,
or that are in contiguous jurisdictions may enter into an agreement
to transfer funds among their respective Low and Moderate Income
Housing Asset Funds for the sole purpose of developing transit
priority projects as defined in subdivisions (a) and (b) of Section
21155 of the Public Resources Code, permanent supportive housing as
defined in paragraph (2) of subdivision (b) of Section 50675.14,
housing for agricultural employees as defined in subdivision (g) of
Section 50517.5, or special needs housing as defined in federal or
state law or regulation if all of the following conditions are met:
(A) Each participating housing successor has made a finding based
on substantial evidence, after a public hearing, that the agreement
to transfer funds will not cause or exacerbate racial, ethnic, or
economic segregation.
(B) The development to be funded shall not be located in a census
tract where more than 50 percent of its population is very low
income, unless the development is within one-half mile of a major
transit stop or high-quality transit corridor as defined in paragraph
(3) of subdivision (b) of Section 21155 of the Public Resources
Code.
(C) The completed development shall not result in a reduction in
the number of housing units or a reduction in the affordability of
housing units on the site where the development is to be built.
(D) A transferring housing successor shall not have any
outstanding obligations pursuant to Section 33413.
(E) No housing successor may transfer more than one million
dollars ($1,000,000) per fiscal year.
(F) The jurisdictions of the transferring and receiving housing
successors each have an adopted housing element that the Department
of Housing and Community Development has found pursuant to Section
65585 of the Government Code to be in substantial compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code and have
submitted to the Department of Housing and Community Development the
annual progress report required by Section 65400 of the Government
Code within the preceding 12 months.
(G) Transferred funds shall only assist rental units affordable
to, and occupied by, households earning 60 percent or less of the
area median income.
(H) Transferred funds not encumbered within two years shall be
transferred to the Department of Housing and Community Development
for expenditure pursuant to the Multifamily Housing Program or the
Joe Serna, Jr. Farmworker Housing Grant Program.
(d) Sections 33334.10 and 33334.12 shall not apply. Instead, if a
housing successor has an excess surplus, the housing successor shall
encumber the excess surplus for the purposes described in paragraph
(3) of subdivision (a) or transfer the funds pursuant to paragraph
(2) of subdivision (c) within three fiscal years. If the housing
successor fails to comply with this subdivision, the housing
successor, within 90 days of the end of the third fiscal year, shall
transfer any excess surplus to the Department of Housing and
Community Development for expenditure pursuant to the Multifamily
Housing Program or the Joe Serna, Jr. Farmworker Housing Grant
Program. For purposes of this subdivision, "excess surplus" shall
mean an unencumbered amount in the account that exceeds the greater
of one million dollars ($1,000,000) or the aggregate amount deposited
into the account during the housing successor's preceding four
fiscal years, whichever is greater.
(e) Section 33334.16 shall not apply to interests in real property
acquired on or after February 1, 2012. With respect to interests in
real property acquired by the former redevelopment agency prior to
February 1, 2012, the time periods described in Section 33334.16
shall be deemed to have commenced on the date that the Department of
Finance approved the property as a housing asset.
(f) Section 33080.1 of this code and Section 12463.3 of the
Government Code shall not apply. Instead, the housing successor shall
conduct, and shall provide to its governing body, an independent
financial audit of the Low and Moderate Income Housing Asset Fund
within six months after the end of each fiscal year, which may be
included in the independent financial audit of the host jurisdiction.
If the housing successor is a city or county, it shall also include
in its report pursuant to Section 65400 of the Government Code and
post on its Internet Web site all of the following information for
the previous fiscal year. If the housing successor is not a city or
county, it shall also provide to its governing body and post on its
Internet Web site all of the following information for the previous
fiscal year:
(1) The amount deposited to the Low and Moderate Income Housing
Asset Fund, distinguishing any amounts deposited for items listed on
the Recognized Obligation Payment Schedule from other amounts
deposited.
(2) A statement of the balance in the fund as of the close of the
fiscal year, distinguishing any amounts held for items listed on the
Recognized Obligation Payment Schedule from other amounts.
(3) A description of expenditures from the fund by category,
including, but not limited to, expenditures (A) for monitoring and
preserving the long-term affordability of units subject to
affordability restrictions or covenants entered into by the
redevelopment agency or the housing successor and administering the
activities described in paragraphs (2) and (3) of subdivision (a),
(B) for homeless prevention and rapid rehousing services for the
development of housing described in paragraph (2) of subdivision (a),
and (C) for the development of housing pursuant to paragraph (3) of
subdivision (a).
(4) As described in paragraph (1) of subdivision (a), the
statutory value of real property owned by the housing successor, the
value of loans and grants receivable, and the sum of these two
amounts.
(5) A description of any transfers made pursuant to paragraph (2)
of subdivision (c) in the previous fiscal year and, if still
unencumbered, in earlier fiscal years and a description of and status
update on any project for which transferred funds have been or will
be expended if that project has not yet been placed in service.
(6) A description of any project for which the housing successor
receives or holds property tax revenue pursuant to the Recognized
Obligation Payment Schedule and the status of that project.
(7) For interests in real property acquired by the former
redevelopment agency prior to February 1, 2012, a status update on
compliance with Section 33334.16. For interests in real property
acquired on or after February 1, 2012, a status update on the
project.
(8) A description of any outstanding obligations pursuant to
Section 33413 that remained to transfer to the housing successor on
February 1, 2012, of the housing successor's progress in meeting
those obligations, and of the housing successor's plans to meet unmet
obligations. In addition, the housing successor shall include in the
report posted on its Internet Web site the implementation plans of
the former redevelopment agency.
(9) The information required by subparagraph (B) of paragraph (3)
of subdivision (a).
(10) The percentage of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years in relation to the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period.
(11) The amount of any excess surplus, the amount of time that the
successor agency has had excess surplus, and the housing successor's
plan for eliminating the excess surplus.
(12) An inventory of homeownership units assisted by the former
redevelopment agency or the housing successor that are subject to
covenants or restrictions or to an adopted program that protects the
former redevelopment agency's investment of moneys from the Low and
Moderate Income Housing Fund pursuant to subdivision (f) of Section
33334.3. This inventory shall include all of the following
information:
(A) The number of those units.
(B) In the first report pursuant to this subdivision, the number
of units lost to the portfolio after February 1, 2012, and the reason
or reasons for those losses. For all subsequent reports, the number
of the units lost to the portfolio in the last fiscal year and the
reason for those losses.
(C) Any funds returned to the housing successor as part of an
adopted program that protects the former redevelopment agency's
investment of moneys from the Low and Moderate Income Housing Fund.
(D) Whether the housing successor has contracted with any outside
entity for the management of the units and, if so, the identity of
the entity.
