Bill Text: CA AB662 | 2013-2014 | Regular Session | Enrolled
Bill Title: Local government: redevelopment: successor agencies to redevelopment agencies.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Vetoed) 2014-03-06 - Last day to consider Governor's veto pursuant to Joint Rule 58.5. [AB662 Detail]
Download: California-2013-AB662-Enrolled.html
BILL NUMBER: AB 662 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 11, 2013
PASSED THE ASSEMBLY SEPTEMBER 12, 2013
AMENDED IN SENATE SEPTEMBER 6, 2013
AMENDED IN SENATE SEPTEMBER 3, 2013
AMENDED IN SENATE AUGUST 13, 2013
AMENDED IN SENATE JUNE 11, 2013
AMENDED IN SENATE MAY 24, 2013
INTRODUCED BY Assembly Members Atkins, Dickinson, Mitchell, Perea,
Ting, and Torres
(Coauthor: Senator Wolk)
FEBRUARY 21, 2013
An act to amend Section 53395.4 of the Government Code, and to
amend Sections 34163, 34171, 34177, 34180, 34183, 34191.4, and
34191.5 of the Health and Safety Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 662, Atkins. Local government: redevelopment: successor
agencies to redevelopment agencies.
(1) Existing law authorizes the creation of infrastructure
financing districts, as defined, for the sole purpose of financing
public facilities, subject to adoption of a resolution by the
legislative body and affected taxing entities proposed to be subject
to the division of taxes and voter approval requirements. Existing
law prohibits an infrastructure financing district from including any
portion of a redevelopment project area.
This bill would delete that prohibition and would authorize a
district to finance a project or portion of a project that is located
in, or overlaps with, a redevelopment project area or former
redevelopment project area, as specified.
(2) 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
prohibits a successor agency from entering into contracts with, incur
obligations, or make commitments to, any entity, as specified, or to
amend or modify existing agreements, obligations, or commitments
with any entity, for any purpose.
This bill would authorize a successor agency, if the successor
agency has received a finding of completion, to enter into, or amend
existing, contracts and agreements, or otherwise administer projects
in connection with enforceable obligations, if the contract,
agreement, or project will not commit new property tax funds or
otherwise adversely affect the flow of specified tax revenues or
payments to the taxing agencies.
(3) Existing law requires a successor agency to submit a
Recognized Obligation Payment Schedule to the Department of Finance,
and requires the successor agency to make payments pursuant to that
schedule.
This bill would authorize the successor agency to schedule
Recognized Obligation Payment Schedule payments beyond the existing
Recognized Obligation Payment Schedule cycle upon a showing that a
lender requires cash on hand beyond the Recognized Obligation Payment
Schedule cycle, or when a payment is shown to be due during the
Recognized Obligation Payment Schedule period. The bill would
authorize the successor agency to utilize reasonable estimates and
projections to support payment amounts where a payment is shown to be
due during the Recognized Obligation Payment Schedule period but an
invoice or other billing document has not been received, if the
successor agency submits appropriate supporting documentation for the
basis of the estimate or projection to the department. The bill
would provide that a Recognized Obligation Payment Schedule may also
include appropriation of moneys from bonds subject to passage during
the Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(4) Existing law requires that specified actions of a successor
agency be first approved by its oversight board, including, among
others, the establishment of a Recognized Obligation Payment
Schedule.
This bill would require a successor agency to notify the board 10
days prior to entering into a contract or agreement for the use or
disposition of specified properties. The bill would authorize the
board to notify the successor agency during that 10-day period that
the board intends to conduct a hearing to determine whether the
contract or agreement is consistent with the successor agency's
long-range property management plan and would require the board to
hold the hearing and issue findings within 30 days after it so
notified the successor agency.
(5) Existing law requires the county auditor-controller to
determine the amount of property taxes that would have been allocated
to each redevelopment agency if it had not been dissolved and to
deposit this amount in a Redevelopment Property Tax Trust Fund in the
county. Existing law requires the conducting of a due diligence
review to determine the unobligated balances available for transfer
to affected taxing entities. Existing law requires the county
auditor-controller for each fiscal year to allocate moneys in the
Redevelopment Property Tax Trust Fund for passthrough payment
obligations, enforceable obligations of the dissolved redevelopment
agency, and administrative costs, as specified. Any remaining moneys
in the Redevelopment Property Tax Trust Fund are required to be
distributed as local property tax revenues to local agencies and
school entities, as specified.
This bill would require that, on January 2, 2014, and twice yearly
thereafter until June 1, 2018, funds be allocated to cover the
housing entity administrative cost allowance of a local housing
authority that has assumed the housing duties of the former
redevelopment agency, as specified, before remaining moneys are
distributed to local agencies and school entities. The bill would
define "housing entity administrative cost allowance" for these
purposes. This bill would also exclude from the calculation of the
amount distributed to taxing entities during the 2012-13 base year
the amounts distributed to taxing entities pursuant to the due
diligence review process. By imposing additional duties upon local
public officials, the bill would create a state-mandated local
program.
(6) Existing law requires a successor agency to prepare a
long-range property management plan that addresses the disposition
and use of the real properties of a former redevelopment agency and
requires a transfer of the property to the city, county, or city and
county if the plan directs the use or liquidation of the property for
a project identified in an approved redevelopment plan, as
specified.
This bill would specify that the term "identified in an approved
redevelopment plan" includes properties listed in a community plan or
a 5-year implementation plan.
(7) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(8) This bill would incorporate additional changes to Sections
34191.4 and 34191.5 of the Health and Safety Code, proposed by AB
564, that would become operative only if this bill and AB 564 are
chaptered and become effective January 1, 2014, and this bill is
chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53395.4 of the Government Code is amended to
read:
53395.4. (a) A district may finance only the facilities or
services authorized in this chapter to the extent that the facilities
or services are in addition to those provided in the territory of
the district before the district was created. The additional
facilities or services may not supplant facilities or services
already available within that territory when the district was created
but may supplement those facilities and services as needed to serve
new developments.
(b) A district may include areas that are not contiguous.
(c) A district may finance a project or portion of a project that
is located in, or overlaps with, a redevelopment project area or
former redevelopment project area. The successor agency to the former
redevelopment agency shall receive a certificate of completion, as
defined in Section 34179.7 of the Health and Safety Code, prior to
the district financing any project or portion of a project under this
subdivision.
(d) Notwithstanding subdivision (c), any debt or obligation of a
district shall be subordinate to an enforceable obligation of a
former redevelopment agency, as defined in Section 34171 of the
Health and Safety Code. For the purposes of this chapter, the
division of taxes allocated to the district pursuant to subdivision
(b) of Section 53396 shall not include any taxes required to be
deposited by the county auditor-controller into the Redevelopment
Property Tax Trust Fund created pursuant to subdivision (b) of
Section 34170.5 of the Health and Safety Code.
(e) The legislative body of the city forming the district may
choose to dedicate any portion of its net available revenue to the
district through the financing plan described in Section 53395.14.
(f) For the purposes of this section, "net available revenue"
means periodic distributions to the city from the Redevelopment
Property Tax Trust Fund, created pursuant to Section 34170.5 of the
Health and Safety Code, that are available to the city after all
preexisting legal commitments and statutory obligations funded from
that revenue are made pursuant to Part 1.85 (commencing with Section
34170) of Division 24 of the Health and Safety Code. Net available
revenue shall not include any funds deposited by the county
auditor-controller into the Redevelopment Property Tax Trust Fund or
funds remaining in the Redevelopment Property Tax Trust Fund prior to
distribution. Net available revenues shall not include any moneys
payable to a school district that maintains kindergarten and grades 1
to 12, inclusive, community college districts, or to the Educational
Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision
(a) of Section 34183 of the Health and Safety Code.
SEC. 2. Section 34163 of the Health and Safety Code is amended to
read:
34163. Notwithstanding Part 1 (commencing with Section 33000),
Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with
Section 34050), and Part 1.7 (commencing with Section 34100), or any
other law, commencing on the effective date of this part, an agency
shall not have the authority to, and shall not, do any of the
following:
(a) Make loans or advances or grant or enter into agreements to
provide funds or provide financial assistance of any sort to any
entity or person for any purpose, including, but not limited to, all
of the following:
(1) Loans of moneys or any other thing of value or commitments to
provide financing to nonprofit organizations to provide those
organizations with financing for the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing or the acquisition of commercial property for lease, each
pursuant to Chapter 7.5 (commencing with Section 33741) of Part 1.
(2) Loans of moneys or any other thing of value for residential
construction, improvement, or rehabilitation pursuant to Chapter 8
(commencing with Section 33750) of Part 1. These include, but are not
limited to, construction loans to purchasers of residential housing,
mortgage loans to purchasers of residential housing, and loans to
mortgage lenders, or any other entity, to aid in financing pursuant
to Chapter 8 (commencing with Section 33750).
(3) The purchase, by an agency, of mortgage or construction loans
from mortgage lenders or from any other entities.
(b) Except as provided in subdivision (d) of Section 34191.4,
enter into contracts with, incur obligations, or make commitments to,
any entity, whether governmental, tribal, or private, or any
individual or groups of individuals for any purpose, including, but
not limited to, loan agreements, passthrough agreements, regulatory
agreements, services contracts, leases, disposition and development
agreements, joint exercise of powers agreements, contracts for the
purchase of capital equipment, agreements for redevelopment
activities, including, but not limited to, agreements for planning,
design, redesign, development, demolition, alteration, construction,
reconstruction, rehabilitation, site remediation, site development or
improvement, removal of graffiti, land clearance, and seismic
retrofits.
(c) Amend or modify existing agreements, obligations, or
commitments with any entity, for any purpose, including, but not
limited to, any of the following:
(1) Renewing or extending term of leases or other agreements,
except that the agency may extend lease space for its own use to a
date not to exceed six months after the effective date of the act
adding this part and for a rate no more than 5 percent above the rate
the agency currently pays on a monthly basis.
(2) Modifying terms and conditions of existing agreements,
obligations, or commitments.
(3) Forgiving all or any part of the balance owed to the agency on
existing loans or extend the term or change the terms and conditions
of existing loans.
(4) Making any future deposits to the Low and Moderate Income
Housing Fund created pursuant to Section 33334.3.
(5) Transferring funds out of the Low and Moderate Income Housing
Fund, except to meet the minimum housing-related obligations that
existed as of January 1, 2011, to make required payments under
Sections 33690 and 33690.5, and to borrow funds pursuant to Section
34168.5.
(d) Dispose of assets by sale, long-term lease, gift, grant,
exchange, transfer, assignment, or otherwise, for any purpose,
including, but not limited to, any of the following:
(1) Assets, including, but not limited to, real property, deeds of
trust, and mortgages held by the agency, moneys, accounts
receivable, contract rights, proceeds of insurance claims, grant
proceeds, settlement payments, rights to receive rents, and any other
rights to payment of whatever kind.
(2) Real property, including, but not limited to, land, land under
water and waterfront property, buildings, structures, fixtures, and
improvements on the land, any property appurtenant to, or used in
connection with, the land, every estate, interest, privilege,
easement, franchise, and right in land, including rights-of-way,
terms for years, and liens, charges, or encumbrances by way of
judgment, mortgage, or otherwise, and the indebtedness secured by the
liens.
(e) Acquire real property by any means for any purpose, including,
but not limited to, the purchase, lease, or exercising of an option
to purchase or lease, exchange, subdivide, transfer, assume, obtain
option upon, acquire by gift, grant, bequest, devise, or otherwise
acquire any real property, any interest in real property, and any
improvements on it, including the repurchase of developed property
previously owned by the agency and the acquisition of real property
by eminent domain; provided, however, that nothing in this
subdivision is intended to prohibit the acceptance or transfer of
title for real property acquired prior to the effective date of this
part.
(f) Transfer, assign, vest, or delegate any of its assets, funds,
rights, powers, ownership interests, or obligations for any purpose
to any entity, including, but not limited to, the community, the
legislative body, another member of a joint powers authority, a
trustee, a receiver, a partner entity, another agency, a nonprofit
corporation, a contractual counterparty, a public body, a
limited-equity housing cooperative, the state, a political
subdivision of the state, the federal government, any private entity,
or an individual or group of individuals.
(g) Accept financial or other assistance from the state or federal
government or any public or private source if the acceptance
necessitates or is conditioned upon the agency incurring indebtedness
as that term is described in this part.
SEC. 3. Section 34171 of the Health and Safety Code is amended to
read:
34171. The following terms shall have the following meanings:
(a) "Administrative budget" means the budget for administrative
costs of the successor agencies as provided in Section 34177.
(b) "Administrative cost allowance" means an amount that, subject
to the approval of the oversight board, is payable from property tax
revenues of up to 5 percent of the property tax allocated to the
successor agency on the Recognized Obligation Payment Schedule
covering the period January 1, 2012, through June 30, 2012, and up to
3 percent of the property tax allocated to the Redevelopment
Obligation Retirement Fund money that is allocated to the successor
agency for each fiscal year thereafter; provided, however, that the
amount shall not be less than two hundred fifty thousand dollars
($250,000), unless the oversight board reduces this amount, for any
fiscal year or such lesser amount as agreed to by the successor
agency. However, the allowance amount shall exclude, and shall not
apply to, any administrative costs that can be paid from bond
proceeds or from sources other than property tax. Administrative cost
allowances shall exclude any litigation expenses related to assets
or obligations, settlements and judgments, and the costs of
maintaining assets prior to disposition. Employee costs associated
with work on specific project implementation activities, including,
but not limited to, construction inspection, project management, or
actual construction, shall be considered project-specific costs and
shall not constitute administrative costs.
(c) "Designated local authority" shall mean a public entity formed
pursuant to subdivision (d) of Section 34173.
(d) (1) "Enforceable obligation" means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant
to Chapter 10.5 (commencing with Section 5850) of Division 6 of Title
1 of the Government Code, including the required debt service,
reserve set-asides, and any other payments required under the
indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency. A reserve may
be held when required by the bond indenture or when the next property
tax allocation will be insufficient to pay all obligations due under
the provisions of the bond for the next payment due in the following
half of the calendar year.
(B) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan
terms.
(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations conferred
through a collective bargaining agreement. Costs incurred to fulfill
collective bargaining agreements for layoffs or terminations of city
employees who performed work directly on behalf of the former
redevelopment agency shall be considered enforceable obligations
payable from property tax funds. The obligations to employees
specified in this subparagraph shall remain enforceable obligations
payable from property tax funds for any employee to whom those
obligations apply if that employee is transferred to the entity
assuming the housing functions of the former redevelopment agency
pursuant to Section 34176. The successor agency or designated local
authority shall enter into an agreement with the housing entity to
reimburse it for any costs of the employee obligations.
(D) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(E) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
However, nothing in this act shall prohibit either the successor
agency, with the approval or at the direction of the oversight board,
or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required
compensation or remediation for such termination. Titles of or
headings used on or in a document shall not be relevant in
determining the existence of an enforceable obligation.
(F) Contracts or agreements necessary for the administration or
operation of the successor agency, in accordance with this part,
including, but not limited to, agreements concerning litigation
expenses related to assets or obligations, settlements and judgments,
and the costs of maintaining assets prior to disposition, and
agreements to purchase or rent office space, equipment and supplies,
and pay-related expenses pursuant to Section 33127 and for carrying
insurance pursuant to Section 33134.
(G) Amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency, which had
been deferred as of the effective date of the act adding this part;
provided, however, that the repayment schedule is approved by the
oversight board. Repayments shall be transferred to the Low and
Moderate Income Housing Asset Fund established pursuant to
subdivision (d) of Section 34176 as a housing asset and shall be used
in a manner consistent with the affordable housing requirements of
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(2) For purposes of this part, "enforceable obligation" does not
include any agreements, contracts, or arrangements between the city,
county, or city and county that created the redevelopment agency and
the former redevelopment agency. However, written agreements entered
into (A) at the time of issuance, but in no event later than December
31, 2010, of indebtedness obligations, and (B) solely for the
purpose of securing or repaying those indebtedness obligations may be
deemed enforceable obligations for purposes of this part.
Notwithstanding this paragraph, loan agreements entered into between
the redevelopment agency and the city, county, or city and county
that created it, within two years of the date of creation of the
redevelopment agency, may be deemed to be enforceable obligations.
(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit to
the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed void on
the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall not be
deemed void.
(e) "Indebtedness obligations" means bonds, notes, certificates of
participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to third-party
investors or bondholders to finance or refinance redevelopment
projects undertaken by the redevelopment agency in compliance with
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(f) "Oversight board" shall mean each entity established pursuant
to Section 34179.
(g) "Recognized obligation" means an obligation listed in the
Recognized Obligation Payment Schedule.
(h) "Recognized Obligation Payment Schedule" means the document
setting forth the minimum payment amounts and due dates of payments
required by enforceable obligations for each six-month fiscal period
as provided in subdivision (m) of Section 34177.
(i) "School entity" means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(j) "Successor agency" means the successor entity to the former
redevelopment agency as described in Section 34173.
(k) "Taxing entities" means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant to
the provisions of this part.
(l) "Property taxes" include all property tax revenues, including
those from unitary and supplemental and roll corrections applicable
to tax increment.
(m) "Department" means the Department of Finance unless the
context clearly refers to another state agency.
(n) "Sponsoring entity" means the city, county, or city and
county, or other entity that authorized the creation of each
redevelopment agency.
(o) "Final judicial determination" means a final judicial
determination made by any state court that is not appealed, or by a
court of appellate jurisdiction that is not further appealed, in an
action by any party.
(p) From January 2, 2014, to June 1, 2018, inclusive, "housing
entity administrative cost allowance" means an amount of up to 1
percent of the property tax allocated to the Redevelopment Obligation
Retirement Fund on behalf of the successor agency for each
applicable fiscal year, but not less than one hundred fifty thousand
dollars ($150,000) per fiscal year.
(1) The housing entity administrative cost allowance shall be
listed by the successor agency on the Recognized Obligation Payment
Schedule. Upon approval of the Recognized Obligation Payment Schedule
by the oversight board and the department, the housing entity
administrative cost allowance shall be remitted by the county
auditor-controller on each January 2 and June 1 to the local housing
authority that assumed the housing functions of the former
redevelopment agency pursuant to paragraph (2) or (3) of subdivision
(b) of Section 34176. To assist the county auditor-controller in this
duty, the successor agency shall notify the county
auditor-controller by January 2, 2014, of the identity of the entity
that has assumed the housing functions of the former redevelopment
agency.
(2) If there are insufficient moneys in the Redevelopment
Obligations Retirement Fund in a given fiscal year to make the
payment authorized by this subdivision, the unfunded amount may be
listed on each subsequent Recognized Obligation Payment Schedule
until it has been paid in full. In these cases the five-year time
limit on the payments shall not apply.
SEC. 4. Section 34177 of the Health and Safety Code is amended to
read:
34177. Successor agencies are required to do all of the
following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (d) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum. In recognition of the fact that the timing
of the California Supreme Court's ruling in the case California
Redevelopment Association v. Matosantos (2011) 53 Cal.4th 231 delayed
the preparation by successor agencies and the approval by oversight
boards of the January 1, 2012, through June 30, 2012, Recognized
Obligation Payment Schedule, a successor agency may amend the
Enforceable Obligation Payment Schedule to authorize the continued
payment of enforceable obligations until the time that the January 1,
2012, through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the Department of
Finance. The successor agency may utilize reasonable estimates and
projections to support payment amounts for enforceable obligations if
the successor agency submits appropriate supporting documentation of
the basis for the estimate or projection to the Department of
Finance.
(2) The Department of Finance and the Controller shall each have
the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller shall
each have standing to file a judicial action to prevent a violation
under this part and to obtain injunctive or other appropriate relief.
(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be made by
the successor agency from the funds specified in the Recognized
Obligation Payment Schedule. In addition, after it becomes valid, the
Recognized Obligation Payment Schedule shall supersede the Statement
of Indebtedness, which shall no longer be prepared nor have any
effect under the Community Redevelopment Law (Part 1 (commencing with
Section 33000)).
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shall not
apply to a successor agency that has been issued a finding of
completion by the Department of Finance pursuant to Section 34179.7.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
(l) (1) Before each six-month fiscal period, prepare a Recognized
Obligation Payment Schedule in accordance with the requirements of
this paragraph. For each recognized obligation, the Recognized
Obligation Payment Schedule shall identify one or more of the
following sources of payment:
(A) Low and Moderate
Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A Recognized Obligation Payment Schedule is prepared by the
successor agency for the enforceable obligations of the former
redevelopment agency. The initial schedule shall project the dates
and amounts of scheduled payments for each enforceable obligation for
the remainder of the time period during which the redevelopment
agency would have been authorized to obligate property tax increment
had the a redevelopment agency not been dissolved.
(B) The Recognized Obligation Payment Schedule is submitted to and
duly approved by the oversight board. The successor agency shall
submit a copy of the Recognized Obligation Payment Schedule to the
county administrative officer, the county auditor-controller, and the
Department of Finance at the same time that the successor agency
submits the Recognized Obligation Payment Schedule to the oversight
board for approval.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller and both the Controller'
s office and the Department of Finance and is posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months. The first Recognized Obligation
Payment Schedule shall be submitted to the Controller's office and
the Department of Finance by April 15, 2012, for the period of
January 1, 2012, to June 30, 2012, inclusive. This Recognized
Obligation Payment Schedule shall include all payments made by the
former redevelopment agency between January 1, 2012, through January
31, 2012, and shall include all payments proposed to be made by the
successor agency from February 1, 2012, through June 30, 2012. Former
redevelopment agency enforceable obligation payments due, and
reasonable or necessary administrative costs due or incurred, prior
to January 1, 2012, shall be made from property tax revenues received
in the spring of 2011 property tax distribution, and from other
revenues and balances transferred to the successor agency.
(m) The Recognized Obligation Payment Schedule for the period of
January 1, 2013, to June 30, 2013, shall be submitted by the
successor agency, after approval by the oversight board, no later
than September 1, 2012. Commencing with the Recognized Obligation
Payment Schedule covering the period July 1, 2013, through December
31, 2013, successor agencies shall submit an oversight board-approved
Recognized Obligation Payment Schedule to the Department of Finance
and to the county auditor-controller no fewer than 90 days before the
date of property tax distribution. The Department of Finance shall
make its determination of the enforceable obligations and the amounts
and funding sources of the enforceable obligations no later than 45
days after the Recognized Obligation Payment Schedule is submitted.
Within five business days of the department's determination, a
successor agency may request additional review by the department and
an opportunity to meet and confer on disputed items. The meet and
confer period may vary; an untimely submittal of a Recognized
Obligation Payment Schedule may result in a meet and confer period of
less than 30 days. The department shall notify the successor agency
and the county auditor-controllers as to the outcome of its review at
least 15 days before the date of property tax distribution.
(1) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the Department of Finance
electronically, and the successor agency shall complete the
Recognized Obligation Payment Schedule in the manner provided for by
the department. A successor agency shall be in noncompliance with
this paragraph if it only submits to the department an electronic
message or a letter stating that the oversight board has approved a
Recognized Obligation Payment Schedule.
(2) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency shall be subject to a civil penalty equal to ten thousand
dollars ($10,000) per day for every day the schedule is not submitted
to the department. The civil penalty shall be paid to the county
auditor-controller for allocation to the taxing entities under
Section 34183. If a successor agency fails to submit a Recognized
Obligation Payment Schedule by the deadline, any creditor of the
successor agency or the Department of Finance or any affected taxing
entity shall have standing to and may request a writ of mandate to
require the successor agency to immediately perform this duty. Those
actions may be filed only in the County of Sacramento and shall have
priority over other civil matters. Additionally, if an agency does
not submit a Recognized Obligation Payment Schedule within ten days
of the deadline, the maximum administrative cost allowance for that
period shall be reduced by 25 percent.
(3) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers shall
lack the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 unless required
by a court order.
(4) (A) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(B) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department.
(C) A Recognized Obligation Payment Schedule may also include
appropriation of moneys from bonds subject to passage during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(n) Cause a postaudit of the financial transactions and records of
the successor agency to be made at least annually by a certified
public accountant.
SEC. 5. Section 34180 of the Health and Safety Code is amended to
read:
34180. (a) All of the following successor agency actions shall
first be approved by the oversight board:
(1) The establishment of new repayment terms for outstanding loans
where the terms have not been specified prior to the date of this
part. An oversight board shall not have the authority to reestablish
loan agreements between the successor agency and the city, county, or
city and county that formed the redevelopment agency except as
provided in Chapter 9 (commencing with Section 34191.1).
(2) The issuance of bonds or other indebtedness or the pledge or
agreement for the pledge of property tax revenues (formerly tax
increment prior to the effective date of this part) pursuant to
subdivision (a) of Section 34177.5.
(3) Setting aside of amounts in reserves as required by
indentures, trust indentures, or similar documents governing the
issuance of outstanding redevelopment agency bonds.
(4) Merging of project areas.
(5) Continuing the acceptance of federal or state grants, or other
forms of financial assistance from either public or private sources,
if that assistance is conditioned upon the provision of matching
funds, by the successor entity as successor to the former
redevelopment agency, in an amount greater than 5 percent.
(6) (A) If a city, county, or city and county wishes to retain any
properties or other assets for future redevelopment activities,
funded from its own funds and under its own auspices, it must reach a
compensation agreement with the other taxing entities to provide
payments to them in proportion to their shares of the base property
tax, as determined pursuant to Section 34188, for the value of the
property retained.
(B) If no other agreement is reached on valuation of the retained
assets, the value will be the fair market value as of the 2011
property tax lien date as determined by an independent appraiser
approved by the oversight board.
(7) Establishment of the Recognized Obligation Payment Schedule.
(8) A request by the successor agency to enter into an agreement
with the city, county, or city and county that formed the
redevelopment agency that it is succeeding. An oversight board shall
not have the authority to reestablish loan agreements between the
successor agency and the city, county, or city and county that formed
the redevelopment agency except as provided in Chapter 9 (commencing
with Section 34191.1). Any actions to reestablish any other
agreements that are in furtherance of enforceable obligations, with
the city, county, or city and county that formed the redevelopment
agency are invalid until they are included in an approved and valid
Recognized Obligation Payment Schedule.
(9) A request by a successor agency or taxing entity to pledge, or
to enter into an agreement for the pledge of, property tax revenues
pursuant to subdivision (b) of Section 34178.
(b) A successor agency shall provide notice to the oversight board
at least 10 days prior to entering into a contract or agreement for
the use or disposition of properties pursuant to paragraph (2) of
subdivision (c) of Section 34191.5. During the 10-day period the
oversight board may notify the successor agency that the board
intends to conduct a hearing to determine whether the contract or
agreement is consistent with the successor agency's long-range
property management plan. The board shall hold the hearing and issue
findings within 30 days after it so notified the successor agency.
(c) Any document submitted by a successor agency to an oversight
board for approval by any provision of this part shall also be
submitted to the county administrative officer, the county
auditor-controller, and the Department of Finance at the same time
that the successor agency submits the document to the oversight
board.
SEC. 6. Section 34183 of the Health and Safety Code is amended to
read:
34183. (a) Notwithstanding any other law, from February 1, 2012,
to July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property Tax
Trust Fund as follows:
(1) Subject to any prior deductions required by subdivision (b),
first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and school
entity an amount of property tax revenues in an amount equal to that
which would have been received under Section 33401, 33492.140,
33607, 33607.5, 33607.7, or 33676, as those sections read on January
1, 2011, or pursuant to any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, that would be in force during that fiscal year,
had the redevelopment agency existed at that time. The amount of the
payments made pursuant to this paragraph shall be calculated solely
on the basis of passthrough payment obligations, existing prior to
the effective date of this part and continuing as obligations of
successor entities, shall occur no later than May 16, 2012, and no
later than June 1, 2012, and each January 2 and June 1 thereafter.
Notwithstanding subdivision (e) of Section 33670, that portion of the
taxes in excess of the amount identified in subdivision (a) of
Section 33670, which are attributable to a tax rate levied by a
taxing entity for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing entity. The
amount of passthrough payments computed pursuant to this section,
including any passthrough agreements, shall be computed as though the
requirement to set aside funds for the Low and Moderate Income
Housing Fund was still in effect.
(2) Second, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for payments listed in its
Recognized Obligation Payment Schedule for the six-month fiscal
period beginning January 1, 2012, and July 1, 2012, and each January
2 and June 1 thereafter, in the following order of priority:
(A) Debt service payments scheduled to be made for tax allocation
bonds.
(B) Payments scheduled to be made on revenue bonds, but only to
the extent the revenues pledged for them are insufficient to make the
payments and only if the agency's tax increment revenues were also
pledged for the repayment of the bonds.
(C) Payments scheduled for other debts and obligations listed in
the Recognized Obligation Payment Schedule that are required to be
paid from former tax increment revenue.
(3) Third, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for the administrative cost
allowance, as defined in Section 34171, for administrative costs set
forth in an approved administrative budget for those payments
required to be paid from former tax increment revenues.
(4) Fourth, on January 2, 2014, and each January 2 and June 1
thereafter until June 1, 2018, for the housing entity administrative
cost allowance payable to the local housing authority that has
assumed the housing duties of the former redevelopment agency
pursuant to paragraph (2) or (3) of subdivision (b) of Section 34176.
(5) Fifth, on June 1, 2012, and each January 2 and June 1
thereafter, any moneys remaining in the Redevelopment Property Tax
Trust Fund after the payments and transfers authorized by paragraphs
(1) to (4), inclusive, shall be distributed to local agencies and
school entities in accordance with Section 34188.
(b) If the successor agency reports, no later than April 1, 2012,
and May 1, 2012, and each December 1 and May 1 thereafter, to the
county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation
Retirement Fund, from other funds transferred from each redevelopment
agency, and from funds that have or will become available through
asset sales and all redevelopment operations, are insufficient to
fund the payments required by paragraphs (1) to (4), inclusive, of
subdivision (a) in the next six-month fiscal period, the county
auditor-controller shall notify the Controller and the Department of
Finance no later than 10 days from the date of that notification. The
county auditor-controller shall verify whether the successor agency
will have sufficient funds from which to service debts according to
the Recognized Obligation Payment Schedule and shall report the
findings to the Controller. If the Controller concurs that there are
insufficient funds to pay required debt service, the amount of the
deficiency shall be deducted first from the amount remaining to be
distributed to taxing entities pursuant to paragraph (5), and if that
amount is exhausted, from amounts available for distribution for
administrative costs in paragraphs (3) and (4), with those amounts in
paragraph (3) to be exhausted first. If an agency, pursuant to the
provisions of Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15,
or 33688 or as expressly provided in a passthrough agreement entered
into pursuant to Section 33401, made passthrough payment obligations
subordinate to debt service payments required for enforceable
obligations, funds for servicing bond debt may be deducted from the
amounts for passthrough payments under paragraph (1), as provided in
those sections, but only to the extent that the amounts remaining to
be distributed to taxing entities pursuant to paragraph (5) and the
amounts available for distribution for administrative costs in
paragraphs (3) and (4) have all been exhausted.
(c) The county treasurer may loan any funds from the county
treasury to the Redevelopment Property Tax Trust Fund of the
successor agency for the purpose of paying an item approved on the
Recognized Obligation Payment Schedule at the request of the
Department of Finance that are necessary to ensure prompt payments of
redevelopment agency debts. An enforceable obligation is created for
repayment of those loans.
(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax Trust
Fund by presenting an invoice therefor to the county
auditor-controller who shall set aside sufficient funds for and
disburse the claimed amounts prior to making the next distributions
to the taxing entities pursuant to Section 34188. Subject to the
approval of the Director of Finance, the budget of the Controller may
be augmented to reflect the reimbursement, pursuant to Section 28.00
of the Budget Act.
(e) Within 10 days of each distribution of property tax, the
county auditor-controller shall provide a report to the department
regarding the distribution for each successor agency that includes
information on the total available for allocation, the passthrough
amounts and how they were calculated, the amounts distributed to
successor agencies, and the amounts distributed to taxing entities in
a manner and form specified by the department. This reporting
requirement shall also apply to distributions required under
subdivision (b) of Section 34183.5.
SEC. 7. Section 34191.4 of the Health and Safety Code is amended
to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.7
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The annual loan repayments provided for in the
recognized obligation payment schedules shall be subject to all of
the following limitations:
(A) Loan 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 subdivision and paragraph (7) of subdivision (e) of Section
34176 combined shall be equal to one-half of the increase between the
amount distributed to the taxing entities pursuant to paragraph (5)
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, provided, however, that calculation of the
amount distributed to taxing entities during the 2012-13 base year
shall not include any amounts distributed to taxing entities pursuant
to the due diligence review process established in Sections 34179.5
to 34179.8, inclusive. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of the
Supplemental Educational Revenue Augmentation Fund have been paid.
(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
(d) Notwithstanding subdivision (b) of Section 34163, if a
successor agency has received a finding of completion, the successor
agency may enter into, or amend existing, contracts and agreements,
or otherwise administer projects in connection with enforceable
obligations approved pursuant to subdivision (m) of Section 34177, if
the contract, agreement, or project will not commit new property tax
funds, and will not otherwise reduce property tax revenues or
payments made pursuant to paragraph (4) of subdivision (a) of Section
34183 to the taxing agencies.
SEC. 7.5. Section 34191.4 of the Health and Safety Code is amended
to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.5
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The annual loan repayments provided for in the
recognized obligation payment schedules shall be subject to all of
the following limitations:
(A) Loan 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 subdivision and paragraph (7) of subdivision (e) of
Section 34176 combined shall be equal to one-half of the increase
between the amount distributed to the taxing entities pursuant to
paragraph (5) 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, provided, however, that
calculation of the amount distributed to taxing entities during the
2012-13 base year shall not include any amounts distributed to taxing
entities pursuant to the due diligence review process established in
Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments
made pursuant to this subdivision shall be second in priority to
amounts to be repaid pursuant to paragraph (7) of subdivision (e) of
Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of the
Supplemental Educational Revenue Augmentation Fund have been paid.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and may be relied upon by all
public and private entities, and, except for an amendment to an
enforceable obligation initiated by a successor agency, may not be
modified or reversed by any future action of the Department of
Finance.
(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and, except for an amendment
to an enforceable obligation initiated by a successor agency, may be
relied upon by all public and private entities, and may not be
modified or reversed by any future action of the Department of
Finance.
(d) Notwithstanding subdivision (b) of Section 34163, if a
successor agency has received a finding of completion, the successor
agency may enter into, or amend existing, contracts and agreements,
or otherwise administer projects in connection with enforceable
obligations approved pursuant to subdivision (m) of Section 34177, if
the contract, agreement, or project will not commit new property tax
funds, and will not otherwise reduce property tax revenues or
payments made pursuant to paragraph (4) of subdivision (a) of Section
34183 to the taxing agencies.
SEC. 8. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) (i) If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.
(ii) For purposes of this subparagraph, the term "identified in an
approved redevelopment plan" includes properties listed in a
community plan or a five-year implementation plan.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
SEC. 8.5. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) (i) If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.
(ii) For purposes of this subparagraph, the term "identified in an
approved redevelopment plan" includes properties listed in a
community plan or a five-year implementation plan.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
(d) After approval by the Department of Finance, an action taken
pursuant to subparagraph (A) or (B) of paragraph (2) of subdivision
(c) that is consistent with the approved plan may not be modified or
reversed by future action of the Department of Finance, and may be
relied upon by all public and private entities.
SEC. 9. (a) Section 7.5 of this bill incorporates amendments to
Section 34191.4 of the Health and Safety Code proposed by both this
bill and Assembly Bill 564. It shall become operative only if (1)
both bills are enacted and become effective on or before January 1,
2014, (2) each bill amends Section 34191.4 of the Health and Safety
Code, and (3) this bill is enacted after Assembly Bill 564, in which
case Section 7 of this bill shall not become operative.
(b) Section 8.5 of this bill incorporates amendments to Section
34191.5 of the Health and Safety Code proposed by both this bill and
Assembly Bill 564. It shall become operative only if (1) both bills
are enacted and become effective on or before January 1, 2014, (2)
each bill amends Section 34191.5 of the Health and Safety Code, and
(3) this bill is enacted after Assembly Bill 564, in which case
Section 8 of this bill shall not become operative.
SEC. 10. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.
