BILL NUMBER: AB 1963 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 4, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
INTRODUCED BY Assembly Members Atkins and Dickinson
FEBRUARY 19, 2014
An act to amend Section Sections 34176 and
34191.3 of , and to repeal Section 34178.8 of, the
Health and Safety Code, relating to redevelopment, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1963, as amended, Atkins. Redevelopment.
The
(1) The Community Redevelopment
Law authorized the establishment of redevelopment agencies in
communities to address the effects of blight, as defined. Existing
law dissolved redevelopment agencies as of February 1, 2012, and
provides for the designation of successor agencies, as defined.
Existing law requires successor agencies to wind down the affairs of
the dissolved redevelopment agencies, subject to review by oversight
boards. The oversight board is required to direct a successor agency
to, and a successor agency is required to, among other things,
dispose of assets and properties of the former redevelopment agency
as directed by the oversight board. Existing law suspends this
requirement, except as it applies to the transfer or assets and
properties for governmental use, until the Department of Finance has
approved a long-range property management plan, as specified. Upon
approval of a long-range property management plan, the plan governs
and supersedes, all other provisions relating to the disposition and
use of the real property assets of the former redevelopment agency.
If the department has not approved a long-range property management
plan by January 1, 2015, existing law requires the property of a
former redevelopment agency to be disposed of according to law.
This bill would instead require the property of a former
redevelopment agency to be disposed of according to law if the
department has not approved a long-range property management plan by
January 1, 2016.
(2) Existing law requires the Controller to review the activities
of successor agencies in the state to determine if an asset transfer
has occurred after January 31, 2012, between the successor agency and
the city, county, or city and county that created a redevelopment
agency, or any other public agency, that was not made pursuant to an
enforceable obligation on an approved and valid Recognized Obligation
Payment Schedule, and if so, to order the return of the asset,
except as specified. Existing law further requires an affected local
agency, upon receiving such an order from the Controller, to reverse
the transfer and return the applicable assets to the successor
agency.
This bill would repeal those requirements and make a conforming
change.
This
(3 ) This bill would
declare that it is to take effect immediately as an urgency statute.
Vote: 2/3. Appropriation: no. 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 housing successor 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 housing successor 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.
(3) For purposes of this section and Section 34176.1, "housing
successor" means the entity assuming the housing function of a former
redevelopment agency pursuant to this section.
(b) 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) If there is one local housing authority in the territorial
jurisdiction of the former redevelopment agency, to that local
housing authority.
(3) 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) Commencing on the operative date of this part, the housing
successor 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 housing successor, 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 housing
successor.
(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 housing successor 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 housing successor 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 housing successor, 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.
(h) This section shall not be construed to provide any stream of
tax increment financing.
SEC. 2. Section 34178.8 of the Health
and Safety Code is repealed.
34178.8. Commencing on the effective date of the act adding this
section, the Controller shall review the activities of successor
agencies in the state to determine if an asset transfer has occurred
after January 31, 2012, between the successor agency and the city,
county, or city and county that created a redevelopment agency, or
any other public agency, that was not made pursuant to an enforceable
obligation on an approved and valid Recognized Obligation Payment
Schedule. If such an asset transfer did occur, to the extent not
prohibited by state and federal law, the Controller shall order the
available assets to be returned to the successor agency. Upon
receiving that order from the Controller, an affected local agency
shall, as soon as practicable, reverse the transfer and return the
applicable assets to the successor agency. This section shall not
apply to housing assets as defined in subdivision (e) of Section
34176.
SECTION 1. SEC. 3. Section 34191.3
of the Health and Safety Code is amended to read:
34191.3. Notwithstanding Section 34191.1, the requirements
specified in subdivision (e) of Section 34177 and subdivision (a) of
Section 34181 shall be suspended, except as those provisions apply to
the transfers for governmental use, until the Department of Finance
has approved a long-range property management plan pursuant to
subdivision (b) of Section 34191.5, at which point the plan shall
govern, and supersede all other provisions relating to, the
disposition and use of the real property assets of the former
redevelopment agency. If the department has not approved a plan by
January 1, 2016, subdivision (e) of Section 34177 and subdivision (a)
of Section 34181 shall be operative with respect to that successor
agency.
SEC. 2. SEC. 4. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
Because the Legislature's intent in passing Assembly Bill 1484
(Chapter 26 of the Statutes of 2012) was to prevent the "fire sale"
of property through the approval of long-range property management
plans, it is crucial that each successor agency that receives a
finding of completion is also able to receive an approval for that
successor agency's long-range property management plan as quickly as
possible.