Bill Text: CA AB901 | 2023-2024 | Regular Session | Amended
Bill Title: Affordable housing financing districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB901 Detail]
Download: California-2023-AB901-Amended.html
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Amended
IN
Assembly
May 01, 2023 |
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Amended
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Assembly
April 11, 2023 |
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Amended
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Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 901
| Introduced by Assembly Member Ting |
February 14, 2023 |
An act to amend Sections 16305.2 and 53993 of, to add Section 16305.10 to, and to add Chapter 2.75 (commencing with Section 53394.01) to Part 1 of Division 2 of Title 5 of, the Government Code, and to add Chapter 14 (commencing with Section 51550) to Part 3 of Division 31 of the Health and Safety Code, relating to affordable housing financing districts, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 901, as amended, Ting.
Affordable housing financing districts.
Existing law authorizes the legislative body of a city or a county to propose the establishment of an enhanced infrastructure financing district, in accordance with specified procedures, to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase.
This bill would authorize the legislative body of a city or county to propose the establishment of an affordable housing financing authority by adopting a resolution of intention to form a district that complies with specified requirements. The bill would limit the activities of a district established pursuant to these provisions to financing the development of affordable housing, as defined, within its territorial
boundaries, infrastructure to support that housing, and specified related costs. The bill would require the legislative body of the city or county proposing the establishment of a district to serve as the governing board of the district. The bill would require the city or county engineer, or other appropriate official designated by the governing board of the district, to prepare an affordable housing financing plan, as provided. The bill would authorize the affordable housing financing plan to include a provision for the division of taxes, except as provided. The bill would require a district to spend at least 80% of its funding derived from the division of taxes on affordable housing and would prohibit the district from spending more than 20% of those funds on affordable housing-related infrastructure.
This bill would authorize an affordable housing finance
district to enter into a contract with the California Housing Finance Agency (CalHFA) that includes specified provisions, including a provision requiring the district to remit the entirety of the amount allocated to it by a division of taxes to CalHFA and that CalHFA will transfer that amount to the custody of the Treasurer for deposit in the Affordable Housing Tax Increment Pooling Trust Fund (trust fund), which this bill would create and continuously appropriate to CalHFA. The bill would require CalHFA to issue revenue bonds, in accordance with specified procedures, secured by moneys in the trust fund and allocate the proceeds of those bonds to districts with which it has a contract in proportion to the amount remitted by each district. The bill would specify that moneys in the trust fund are nonstate moneys and are instead the property of, and held in trust on behalf of, the districts that contract with CalHFA under these provisions. The bill would require that a district use the proceeds of revenue bonds
allocated to it pursuant to these provisions for those purposes enumerated in the affordable housing financing plan.
This bill would also establish the Affordable Housing Financing Fund and make the moneys in that fund available to CalHFA upon appropriation by the Legislature. The bill would also create the Tax Increment Pooling Loss Reserve Account (loss reserve account). The bill, upon appropriation in the annual Budget Act, would require the Controller to transfer moneys from the loss reserve account to the trust fund in any fiscal year in which CalHFA notifies the Joint Legislative Budget Committee that there are insufficient moneys in the trust fund to pay the debt service on the revenue bonds, as described above.
The bill would make various conforming changes to other laws relating to state moneys and the division of taxes by local agencies to issue revenue bonds.
By adding
to the duties of county auditors with respect to the allocation of property tax revenues, this bill would impose a state-mandated local program.
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.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 16305.2 of the Government Code is amended to read:16305.2.
(a) All money in the possession of or collected by any state agency or department, except for money in the Local Agency Investment Fund or the Affordable Housing Tax Increment Pooling Trust Fund, is subject to Sections 16305.3 to 16305.7, inclusive, and is hereafter referred to as state money.(b) Except as otherwise provided by this chapter or authorized by statute, any transfer, expenditure, or other use of state money knowingly committed by a state employee, outside of the State Treasury System is a misdemeanor, punishable by up to one year in a county jail, or a two-thousand-five-hundred-dollar ($2,500) fine, or both.
SEC. 2.
Section 16305.10 is added to the Government Code, to read:16305.10.
(a) All money in the Affordable Housing Tax Increment Pooling Trust Fund shall be held in trust in the custody of the Treasurer.(b) All money in the Affordable Housing Tax Increment Pooling Trust Fund is nonstate money. That money shall be held in a trust account or accounts. The Controller shall be responsible for maintaining those accounts to record the Treasurer’s accountability, and shall maintain a separate account for each trust deposit in the Affordable Housing Tax Increment Pooling Trust Fund.
(c) Moneys in the Affordable Housing Tax Increment Pooling Trust Fund subject to this section shall be subject to audit by the Department of Finance and to cash count as provided for in Sections 13297, 13298, and 13299. It may be withdrawn only upon the order of the depositing entity or its disbursing officers. The system that the Director of Finance has established for the handling, receiving, holding, and disbursing of state agency money shall also be used for the money in the Affordable Housing Tax Increment Pooling Trust Fund.
SEC. 3.
Section 53993 of the Government Code is amended to read:53993.
(a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398.75, and 62005, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided.(b) Subdivision (a) shall not apply to either of the following:
(1) The allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.
(2) The division of taxes authorized by Section 53394.30.
SEC. 4.
Chapter 2.75 (commencing with Section 53394.01) is added to Part 1 of Division 2 of Title 5 of the Government Code, to read:CHAPTER 2.75. Affordable Housing Financing Districts
Article 1. General Provisions
53394.01.
For purposes of this chapter:(a) “Affected taxing entity” means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year before to the designation of the district. An “affected taxing entity” does not include a special district unless the special district adopts a resolution approving the affordable housing financing plan pursuant to subdivision (c) of Section 53394.16. “Affected taxing entity” does not include a school district of every class or kind, including, but not limited to, a unified or nonunified school district, that maintains kindergarten and grades
1 to 12, inclusive, community college districts, or county office of education.
(b) “Affected taxing entity equity amount” means the amount of ad valorem property tax revenue that the affected taxing entity would have received from property located within the redevelopment project area in the absence of the affordable housing financing district, calculated pursuant to subdivision (e) of Section 53394.31.
(c) “Affordable housing” means owner-occupied either of the following:
(1) Owner-occupied housing with an affordable housing cost or rental cost, as provided in Section 50052.5 of the Health and Safety Code, to persons and families whose income does not exceed 120 percent of the area median income, as determined pursuant to Section 50093 of the Health and Safety Code.
(2) Rental housing with an affordable rent, as provided in Sections 50052.5 and 50053, respectively,
Section 50053 of the Health and Safety Code, to persons and families whose income does not exceed 60 80 percent of the area median income, as determined pursuant to Section 50093 of the Health and Safety Code.
(d) “Affordable housing financing district” means a legally constituted governmental entity separate and distinct from the city or county that established it pursuant to this chapter for the sole purpose of financing affordable housing and related infrastructure as authorized by this chapter. An affordable housing financing district shall be a local agency for purposes of the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)).
(e) “Affordable housing-related infrastructure” includes, but is not limited to, all of the following:
(1) Below ground utilities.
(2) Items included in a circulation element adopted pursuant to subdivision (b) of Section 65302, including streets, sidewalks, bike lanes, and lighting.
(3) Curbs and gutters.
(4) Parks.
(e)
(f) “Agency” means the California Housing Finance Agency.
(f)
(g) “Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.
(g)
(h) “Designated official” means the city or county engineer or other appropriate official designated pursuant to Section 53394.14.
(h)
(i) “District” means an affordable housing financing district.
(i)
(j) “Fiscal year” means a year beginning on July 1 and ending the following June 30.
(j)
(k) “Governing board” means the legislative body of the city or county that establishes a district pursuant to this chapter acting as the governing board of that district.
(k)
(l) “Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district.
(l)
(m) “Legislative body” means the city council of the city or board of supervisors of the county.
(m)
(n) “Project” means any undertaking of a district pursuant to this chapter.
(n)
(o) “Special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries.
Article 2. District Formation and Affordable Housing Financing Plan
53394.10.
(a) Subject to Section 53394.11, a legislative body of a city or county may propose the establishment of a district pursuant to this chapter. The legislative body of the city or county may institute proceedings for the establishment of a district by adopting a resolution of intention to establish the proposed district. The legislative body shall include all of the following in the resolution of intention:(1) State that the legislative body proposes the establishment of an affordable housing financing district under the terms of this chapter and describe the boundaries of the proposed district. The requirements
of this paragraph may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable.
(2) State the type of affordable housing projects and related infrastructure proposed to be financed or assisted by the district in accordance with Section 53394.21.
(3) State the need for the district and the goals the district proposes to achieve.
(4) State that incremental property tax revenue from the city or county and all affected taxing entities within the district, if
approved by resolution pursuant to Section 53394.16, may be used to finance these activities.
(5) Fix a time and place for a public hearing on the proposal.
(b) Upon adoption of a resolution of intention pursuant to this section, the legislative body shall act as the governing board of the district.
53394.11.
A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.
(b) The city or county certifies to the Department of
Finance and to the governing board that no former redevelopment agency assets that are the subject of litigation involving the state, where the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an affordable housing financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate in an affordable housing financing district, or of a governing board’s action to form an affordable housing financing district, pursuant to subdivision (d) of Section 53394.16.
(c) The office of the
Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.
(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).
53394.12.
(a) (1) A city or county may establish more than one district within its jurisdictional boundaries, but the city or county shall not merge existing districts or establish a new district that includes any area within the boundaries of another district. However, a city or county may establish districts with adjoining boundaries.(2) A district may include any portion of a former redevelopment project area that was previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, provided that the city or county that created the former redevelopment agency has met the requirements of Section 53394.11.
(b) A district may finance only the facilities authorized in this chapter to the extent that the facilities are in addition to those provided in the territory of the district before the district was created. The district shall not finance additional facilities that supplant facilities already available within that territory when the district was created, but may supplement, rehabilitate, upgrade, or make more sustainable those facilities.
(c) A district may include areas that are not contiguous.
53394.13.
(a) (1) The legislative body shall direct the city official or county official, as applicable, selected by the legislative body, to mail a copy of the resolution of intention to create the district to each owner of land within the district.(2) As an alternative to mailing a copy of the resolution of intention pursuant to paragraph (1), the legislative body may direct the city official or county official, as applicable, selected by the legislative body, to mail a single-page notice of intention to create the district to each owner of land within the district. For purposes of this
section, the notice of intention shall indicate the physical
location or internet website where documents related to the district, including the resolution of intention, will be made available for public viewing or inspection. The notice of intention shall also state the date of the public hearing on the proposal and include a brief description of the types of public facilities to be financed by the district.
(b) The legislative body shall direct the city official or county official, as applicable, selected by the legislative body, to mail a copy of the resolution to each affected taxing entity.
53394.14.
Upon adoption of the resolution of intention to establish the district by the legislative body pursuant to Section 53394.10, the governing board shall designate and direct the city or county engineer or other appropriate official to prepare an affordable housing financing plan pursuant to subdivision (a) of Section 53394.15.53394.15.
(a) After receipt of a copy of the resolution of intention to establish a district, the designated official shall prepare a proposed affordable housing financing plan. The proposed affordable housing financing plan shall be consistent with the general plan of the city or county within which the district is located and shall include all of the following:(1) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.
(2) A description of the affordable housing and related infrastructure, as described in Section 53394.21, that is proposed in the area of the district.
(3) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.
(4) A financing section, which shall contain all of the following information:
(A) A specification of the amount of the incremental tax
revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue.
(B) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(C) A plan for financing the affordable housing and related infrastructure to be assisted by the district, including a detailed description of any intention to incur debt.
(D) A statement on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.
(E) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 45 years from the effective date of an initial contract with the agency pursuant to Section 53394.40.
(b) The affordable housing financing plan, prepared in accordance with subdivision (a), shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California
Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed affordable housing and related infrastructure projects, and shall be made available for public inspection. The report shall also be sent to the governing board, the planning commission, and the legislative body.
(c) The designated official shall consult with each affected
taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.
53394.16.
(a) The governing board shall conduct a public hearing before adopting the proposed affordable housing financing plan. The governing board shall call the public hearing no sooner than 60 days after the plan has been sent to each affected taxing entity. In addition to the notice given to landowners and affected taxing entities pursuant to Section 53394.13, the governing board shall give notice of the public hearing by publication not less than once a week for four successive weeks in a newspaper of general circulation published in the city or county in which the proposed district is located. The notice shall state all of the following:(1) That the district will be
used to finance public facilities or development.
(2) Briefly describe the public facilities or development.
(3) Briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue.
(4) Describe the boundaries of the proposed district.
(5) State the day, hour, and place when and where any persons having any objections to the proposed affordable housing financing plan, or the regularity of any of the prior proceedings, may appear before the governing board and object to the adoption of the proposed plan by the governing board.
(b) At the hour set in the required notices, the governing board shall proceed to hear and pass upon all written and oral objections. The governing board may continue the hearing from time to time. The governing board shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The governing board may modify the plan.
(c) (1) The governing body shall not adopt a resolution adopting the affordable housing financing plan providing for the division of taxes of any affected taxing entity pursuant to Article 4 (commencing with Section 53394.30) unless a resolution approving the plan has been adopted by the governing
body of each affected taxing entity that is proposed to be subject to the division of taxes pursuant to Article 4 (commencing with Section 53394.30) has been filed with the governing body at or prior to the time of the hearing.
(2) Nothing in this subdivision shall be construed to prevent the governing body from amending the affordable housing financing plan without allocation of the tax revenues of any affected taxing entity that has not approved the affordable housing financing plan by resolution of the governing body of the affected taxing entity.
(d) At the conclusion of the hearing, the governing board may adopt a resolution adopting the affordable housing financing plan, as modified, and formation of the affordable housing financing district, or it may adopt a
resolution abandoning the proceedings. If the proceedings are abandoned, then the governing board shall cease to exist by operation of this section with no further action required of the legislative body and the legislative body shall not enact a resolution of intention to establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.
53394.17.
The affordable housing financing plan shall take effect upon the adoption of the resolution adopting the plan pursuant to Section 53394.16. The affordable housing financing plan shall specify if the district shall be funded solely through the district’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the governing board shall not levy assessments or fees that may be included in the affordable housing financing plan unless the governing board complies with the procedures specified in subdivision (f) of Section 53394.30 for the levying of assessments or fees to finance the affordable housing financing plan.53394.18.
Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of an affordable housing financing plan, including a division of taxes thereunder, shall be commenced within 30 days after the enactment of the resolution creating the district pursuant to Section 53394.16. Consistent with the time limitations of this section, an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.Article 3. Governing Board and District Powers
53394.20.
(a) The legislative body of the county or city that established the district shall serve as the governing board of the district.(b) Members of the governing board established pursuant to this chapter shall not receive compensation but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2.
(c) Members of the governing are subject to Article 2.4 (commencing with Section 53234) of Chapter 2.
(d) The governing board created pursuant to this chapter shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)), the California Public Records Act (Chapter 1 (commencing with Section 7920.000) of Part 1 of Division 10 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).
53394.21.
(a) (1) The activities of a district established pursuant to this chapter shall be limited to financing the development of affordable housing and housing-related infrastructure, as described in this section, within its territorial boundaries. In connection with the development of affordable housing and related infrastructure, the district may finance any of the following:(A) The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer.
(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of affordable housing.
(C) Water, sewer, or other public infrastructure affordable housing-related infrastructure necessary to support the development of affordable housing pursuant to this chapter.
(D) The costs described in Sections 53394.16, 53394.22, 53394.23, and 53394.32.
(E) The ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the district.
(2) A district may not do either of the following in connection with the development of affordable housing and related infrastructure:
(A) Finance services of any kind.
(B) Use the proceeds of bonds issued to finance the costs of maintenance or ongoing operations of any kind.
(3) The affordable housing and housing-related infrastructure financed by the district are not required to be
physically located within the boundaries of the district. However, any affordable housing and housing-related infrastructure financed outside of a district shall have a tangible connection to the work of the district, as detailed in the affordable housing financing plan adopted pursuant to Section 53394.16.
(b) For district funds derived from incremental tax revenues, both of the following shall apply:
(1) At least 80 percent of the funds shall be spent on the construction, acquisition, and preservation of affordable housing.
(2) No more than 20 percent of the funds shall be spent on affordable housing-related infrastructure necessary to support the development of affordable housing.
(b)
(c) The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain affordable housing for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(c)
(d) The district may finance mixed-income housing developments, but may finance only those units in such a
development that constitute affordable housing for purposes of this chapter, and those onsite facilities for childcare, after school care, and social services that are integrally linked to the tenants of those affordable housing units.
(d)
(e) A district may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and
Safety Code, and finance any action necessary to implement that act.
(e)
(f) A district shall not incur debt in the form of bonds secured by revenues allocated to it pursuant to Section 53394.30.
53394.22.
A district may reimburse a developer of a project that is located entirely within the boundaries of that district for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470.53394.23.
It is the intent of the Legislature that the creation of the districts should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district then the affordable housing financing plan adopted pursuant to subdivision (d) of Section 53394.16 shall contain provisions to do all of the following:(a) If the dwelling units
to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, at any time within five years prior to establishment of the district, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in the same or
a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.
(b) If the dwelling units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal
percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50106 and 50105 of the Health and Safety Code.
(c) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is
financed in whole or in part by the district as a result of the affordable housing financing plan adopted pursuant to subdivision (d) of Section 53394.16. The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action.
(d) Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income not take place unless and until there has been full compliance with the relocation assistance requirements of this section, Section 53394.15, and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(e) (1) Except as otherwise
provided in paragraph (2), the district shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(2) The district may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the district’s investment of moneys in the unit or units, including, but not limited to, an equity
sharing program that is not in conflict with another public funding source or law, and that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the district to be used within five years for any of the affordable housing purposes described in paragraph (3) of subdivision (a) of Section 34176.1 of the Health and Safety Code.
53394.24.
(a) No more than six months after the end of the district’s fiscal year, the district shall file a report with the governing board and the Department of Housing and Community Development containing the following information, regardless of whether each activity is funded exclusively by the state or federal government:(1) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that were displaced or moved from their dwelling units as part of an affordable housing or housing-related infrastructure project of the
district during the previous fiscal year.
(2) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that the district estimates will be displaced or will move from their dwellings as part of an affordable housing or housing-related infrastructure project of the district during the present fiscal year and the date of adoption of a replacement housing portion of the affordable housing financing plan required by Section 53394.23.
(3) The total number of dwelling units housing very low income households, other lower income households, and persons and families of moderate
income, respectively, which have been destroyed or removed from the low- or moderate-income housing market during the previous fiscal year as part of an affordable housing or housing-related infrastructure project of the district, specifying the number of those units that are not subject to the replacement requirements of Section 53394.23.
(4) The total numbers of district-assisted dwelling units that were constructed, rehabilitated, acquired, or subsidized during the previous fiscal year for occupancy at an affordable housing cost by elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, specifying those units that are not
currently so occupied, those units that have replaced units destroyed or removed pursuant to Section 53394.23, and the length of time any agency-assisted units are required to remain available at affordable costs.
(5) The total numbers of new or rehabilitated units subject to Section 53394.23, including separate subtotals of the number originally affordable to and currently occupied by, elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, and the length of time these units are required to remain available at affordable costs.
(6) The total amount of funds expended for planning and general administrative costs.
(7) Any other information that the agency believes useful to explain its housing programs.
(8) The total number of affordable housing units to be constructed under the terms of an executed agreement or contract and the name and execution date of the agreement or contract. These units may only be reported for a period of two years from the execution date of the agreement or contract.
(b) As used in this section:
(1) “Elderly,” has the same meaning as specified in
Section 50067 of the Health and Safety Code.
(2) “Persons and families of moderate income,” has the same meaning as specified in subdivision (b) of Section 50093 of the Health and Safety Code.
(3) “Other lower income households,” has the same meaning as “lower income households” as specified in Section 50079.5 of the Health and Safety Code, exclusive of very low income households.
(4) “Persons and families of low or moderate income,” has the same meaning as specified in Section 50093 of the Health and Safety Code.
(5) “Very low income
households,” has the same meaning as specified in Section 50105 of the Health and Safety Code.
Article 4. Division of Taxes
53394.30.
(a) An affordable housing financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to subdivision (d) of Section 53394.16 to create the district, shall be divided as follows:(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable
property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized before the effective date of the resolution adopted pursuant to subdivision (d) of Section 53394.16 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed
value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted affordable housing financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
(b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former
redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) 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.
(c) The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in Section 53394.15.
(d) For the purposes of this section, “net available revenue” means periodic distributions to the city or county 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 or county 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. For purposes of this section, “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, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code.
(e) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted
affordable housing financing plan for the city or county that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist pursuant to the adopted affordable housing financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
(f) A district may utilize revenues from any of the following sources to support its activities provided that the applicable voter approval
has been obtained, and the affordable housing financing plan has been approved pursuant to subdivision (d) of Section 53394.16:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of
Part 2 of Division 3 of Title 4 of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter
provision.
53394.31.
(a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 53394.30 shall be allocated and paid into a special fund held in trust for the district by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.(b) Not later than October 1 of each year, for each affordable housing or housing-related infrastructure project for which the affordable housing financing plan provides for the division of taxes pursuant to Section 53394.30, the district shall file, with the county auditor or officer described in subdivision
(a), a use of tax increment statement consistent with subdivision (c) and a reconciliation statement consistent with subdivision (d). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the district.
(c) (1) For each affordable housing or housing-related infrastructure project for which a use of tax increment statement is required to be filed, the use of tax increment statement shall contain all of the following:
(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(i) The
date the loan, advance, or indebtedness was incurred or entered into.
(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(iii) The principal amount and interest due in the fiscal year in which the use of tax increment statement is filed for each loan, advance, or indebtedness.
(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(B) The sum of the amounts determined under clause (iii) of subparagraph (A).
(C) The sum of the amounts determined under clause (iv) of subparagraph (A).
(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).
(2) The district may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be
precisely determined. The district may list on a
use of tax increment statement any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.
(d) For each affordable housing or housing-related infrastructure project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:
(1) A list of all loans, advances, and indebtedness listed on the previous year’s use of tax increment statement.
(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s
use of tax increment statement, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the district pursuant to Section 53394.30. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing.
(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:
(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of
the previous year or the date the loan, advance, or indebtedness was incurred or entered into.
(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.
(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the district pursuant to Section 53394.30.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the district pursuant to Section 53394.30.
(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.
(4) The available revenues of the district as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the district in the previous fiscal year pursuant to Section 53394.30.
(6) The amount of available revenue received by the district in the previous fiscal year from any source other than pursuant to Section 53394.30.
(7) The sum of the amounts
specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).
(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).
(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).
(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.
53394.32.
The district shall pay all costs incurred by a county in connection with the division of taxes pursuant to Section 53394.30 for a district.Article 5. Tax Increment Pooling with the California Housing Finance Agency
53394.40.
A district may enter into a contract with the California Housing Finance Agency that shall include, at minimum, the following provisions:(a) No later than December 31 of each year for which the contract is in effect, the district will remit the entirety of the amount allocated to it pursuant to Section 53394.30 to the agency. The contract may provide for either a one-time lump sum or a periodic remission of funds.
(b) Upon receipt of moneys remitted pursuant to subdivision (a), the agency shall transfer the full amount to the custody of the Treasurer for deposit in the Affordable Housing Tax Increment Pooling Trust
Fund, established pursuant to Section 51560 of the Health and Safety Code.
(c) The contract is subject to annual renewal, as follows:
(1) If the governing body adopts a resolution to terminate the contract, the agency shall make a final allocation to the district from the Affordable Housing Tax Increment Pooling Trust Fund, as provided in Section 51560 of the Health and Safety Code, after which the district shall have no claim to any moneys in the Affordable Housing Tax Increment Pooling Trust Fund.
(2) If the governing body does not take any action by December 31 of any year for which a contract is entered into or renewed under this section, the contract shall be deemed to be renewed for the following year.
(d) The agency shall issue revenue bonds secured by moneys remitted to the Affordable Housing Tax Increment Pooling Trust Fund pursuant to the contract in accordance with Article 2 (commencing with Section 51560) of Chapter 12 of Part 3 of Division 31 of the Health and Safety Code.
(e) No later than January 31 of each year following any year in which the contract is in effect, the agency shall allocate an amount from the Affordable Housing Tax Increment Pooling Trust Fund to the district in proportion to the amount of moneys the district remitted for that year, as provided in Section 51560 of the Health and Safety Code.
(f) Moneys remitted to the agency and deposited in the Affordable Housing Tax Increment Pooling
Trust Fund, as required by this section and the contract, are property of the district that remitted the moneys and are not state moneys.
(g) Any other provision consistent with the requirements of this section that the district and the agency agree to in order to fulfill the purposes of this chapter.
53394.41.
The district shall expend moneys allocated to it under a contract entered into with the agency and in accordance with Section 51560 of the Health and Safety Code solely for those purposes enumerated in the affordable housing financing plan adopted pursuant to subdivision (d) of Section 53394.16.SEC. 5.
Chapter 14 (commencing with Section 51550) is added to Part 3 of Division 31 of the Health and Safety Code, to read:CHAPTER 14. Affordable Housing Financing Districts
Article 1. General Provisions
51550.
For purposes of this chapter:(a) “District contract” means a contract entered into between the agency and a district pursuant to Section 53394.40 of the Government Code.
(b) “District” means an affordable housing financing district established pursuant to Chapter 2.75 (commencing with Section 53394.01) of Part 1 of Division 2 of Title 5 of the Government Code.
(c) “Fund” means the Affordable Housing Financing Fund established pursuant to Section 51551.
(d) “Loss reserve account” means the Tax
Increment Pooling Loss Reserve Account established within the fund pursuant to
Section 51580.
(e) “Trust fund” means the Affordable Housing Tax Increment Pooling Trust Fund established pursuant to Section 51560.
51551.
There is hereby established in the State Treasury the Affordable Housing Financing Fund. Upon appropriation by the Legislature, moneys in the fund shall be available to the agency for purposes of Article 4 (commencing with Section 51580).Article 2. Affordable Housing Tax Increment Revenue Bonds
51560.
(a) (1) There is hereby established in the State Treasury the Affordable Housing Tax Increment Pooling Trust Fund. Notwithstanding Section 13340 of the Government Code, moneys in the trust fund are hereby continuously appropriated to the agency for allocation to districts in accordance with this chapter.(2) The agency shall transfer all moneys it receives under a district contract to the custody of the Treasurer for deposit into the trust fund. No later than January 31 of each year, the agency shall allocate moneys from the trust fund in the following order of priority:
(A) First,
to the loss reserve account an amount equal to the amount transferred pursuant to Article 4 (commencing with Section 51580), if any, for purposes of paying debt service on revenue bonds for the immediately preceding fiscal year.
(B) Second, to each district that has a district contract an amount proportionate to the amount of money in the trust fund that the district contributed to the trust fund pursuant to that district contract during the immediately preceding calendar year. The agency shall develop a methodology to determine the proportionate amount owed to each district. In no event shall a district receive an amount in excess of the amount that the district contributed to the trust fund.
(b) The Legislature hereby finds and declares that moneys in the trust fund are the
property of the districts that have a district contract with the agency and are not state moneys within the meaning of Section 16305.2 of the Government Code, but are instead the property of, and held in trust on behalf of, those districts. The state and the agency shall not have any right, title, or interest in those moneys, except as is necessary for the issuance of revenue bonds pursuant to this chapter.
51561.
(a) The agency shall issue revenue bonds secured by moneys in the trust fund. Notwithstanding any other law, bonds issued pursuant to this chapter shall not be subject to Chapter 7 (commencing with Section 51350), unless explicitly provided otherwise in this chapter.(b) (1) The treasurer shall coordinate the sale of the bonds of the agency. To obtain a date for the sale of bonds, the agency shall inform the Treasurer of the amount of the proposed issue. Upon that notification, the Treasurer shall provide three 10-day periods, within the 90 days next following, when the bonds can be sold. The agency may choose any date during the suggested
periods or any other date to which the agency and the Treasurer have mutually agreed. The Treasurer shall sell the bonds on the date chosen according to terms approved by the agency.
(2) The agency shall exercise its powers with due regard for the right of the holders of bonds of the agency at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict, or alter the obligation or powers of the agency or any member, officer, or representative of the agency or the Treasurer to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into on behalf of the agency with respect to its bonds or its benefits, or the security of the holders of the bonds.
(c) The bonds authorized by resolution of the agency pursuant to this chapter shall be in the form, bear those date or dates, and mature at the time or times as the resolution or resolutions may provide, except that a bond shall not mature more than 50 years from the date of its issue. The bonds may be issued as serial bonds or as term bonds, or as a combination thereof, and, notwithstanding any other law, the amount of principal of, or interest on, bonds maturing at each date of maturity need not be equal. The bonds shall bear interest at the rate or rates, be in those denominations, be in the form, either coupon or registered, carry those registration privileges, be executed in that manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and contain those terms
and conditions as the resolution or resolutions may provide. The bonds of the agency pursuant to this chapter shall be sold at public or private sale by the Treasurer at, above, or below the par value, on the terms and conditions and for consideration in the medium of payment as the agency shall determine by resolution before the sale.
(d) Any resolution or resolutions authorizing any bonds or issue therefor may contain the following provisions, which shall be a part of the contract or contracts with the holders of those bonds, as to:
(1) Pledging all or any part of the moneys in the trust fund to secure payment of the bonds or any issue of those bonds, subject to any agreement
with the bondholders as may then exist.
(2) Limitations on the issuance of additional bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding bonds.
(3) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.
(4) Vesting in a trustee or trustees any property, rights, powers, and duties in trust as the agency may determine, and providing for or limiting or abrogating the right of the bondholders to appoint a
trustee or limiting the rights, powers, and duties of that trustee.
(5) Defining the acts or omissions to act that shall constitute a default in the obligations and duties of the agency to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of default. However, these rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter.
(6) Any other matters of like or different character, which in any way affect the security, protection, or investment return of the holders of the bonds.
51562.
(a) Bonds issued under this chapter shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the agency, or a pledge of the faith and credit of the state or of any such political subdivision, other than the agency, but shall be payable solely from funds provided pursuant to a district contract under this chapter. All those bonds and any prospectus or other printed representation of the agency concerning those bonds shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this bond.”(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent or be construed to prevent the agency from pledging its full faith and credit to the payment of bonds or issue of bonds authorized pursuant to this chapter.
(c) The agency shall select bond underwriters and consultants.
(d) The members of the board, the executive director of the agency, or any other person executing those notes or bonds shall not be
subject to any personal liability or accountability by reason of the issuance thereof.
(e) In the event any of the board members or officers of the agency whose signatures appear on any bonds or coupons shall cease to be board members or officers of the agency before the delivery of those bonds, the signatures of those board members or officers shall, nevertheless, be valid and sufficient for all purposes, the same as if those board members or officers had remained in office until the delivery of the bonds.
51563.
(a) (1) The Treasurer shall act as trustee for the agency and the holders of its bonds, provided the Treasurer elects to serve as trustee with respect to a particular issuance of bonds by notifying the agency of this election in writing at or before the board meeting at which the board approves a resolution authorizing the issuance and sale of the bonds.(2) Any bonds issued under this chapter may be secured by a trust agreement, indenture, or resolution, by and between the agency and a trustee or trustees, which may be the Treasurer or any trust company or bank having the powers of a trust
company within or without the state. Notwithstanding other provisions in this division, references to the Treasurer as trustee shall be deemed to refer to either the Treasurer or the duly empowered bank or trust company trustee, as the case may be. The trust agreement, indenture, or the resolution providing for the issuance of the bonds may pledge or assign revenues to be received or proceeds of any contract or contracts pledged. Any resolution authorizing any bonds or issue thereof shall prescribe the duties of the Treasurer with respect to the issuance, authentication, sale, and delivery of the bonds, the payment of principal and interest thereof, and the redemption of the bonds. Notwithstanding any other law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as trustee pursuant to this chapter.
(3) The trustee shall act on behalf of the holders of the agency bonds, or any stated percentage thereof, for the purpose of exercising and prosecuting on behalf of the holders in the manner and under conditions provided in the resolution authorizing the bonds.
(b) The Treasurer or other trustee acting on behalf of bondholders shall have and possess all the powers necessary or convenient for the exercise of any functions specifically set forth in this chapter or incident to the general representation of bondholders in the enforcement and protection of their rights.
51564.
(a) The agency may provide for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding that have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of those bonds, and for any purpose of the agency. The issuance of those obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the agency in respect of the same shall be governed by the provisions of this chapter that relate to the issuance of bonds, insofar as those provisions may be appropriate therefor.(b) Refunding bonds issued as provided in this section may be sold, or exchanged for outstanding bonds issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of those outstanding bonds. Pending the application of the proceeds of any such refunding bonds, with any other available moneys, (1) to the payment of the principal, accrued interest, and any redemption premium on the bonds being refunded, (2) to the payment of any interest on such refunding bonds, or (3) to any expenses incurred in connection with such refunding, such proceeds may be invested in those obligations as are permitted under the bond resolution authorizing the issuance of refunding bonds.
51565.
The state hereby pledges to and agrees with the holders of any bonds issued under this chapter that the state will not limit or alter the rights hereby vested in the agency to fulfill the terms of any agreements made with the holders thereof or in any way impair the rights and remedies of those holders until those bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of those holders, are fully met and discharged. The agency is authorized to include this pledge and agreement of the state in any agreement with the holders of those notes or bonds.51566.
Any action or proceeding challenging the validity of revenue bonds or refunding bonds issued under this chapter shall be brought in accordance with, and within the time specified in, Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. The Superior Court of the County of Sacramento shall have jurisdiction of, and the County of Sacramento shall be the appropriate venue for any suit, action, or proceedings by the trustee on behalf of bondholders.Article 3. Tax Increment Pool Loss Reserve Account
51580.
(a) There is hereby established in the fund the Tax Increment Pool Loss Reserve Account. The agency shall, pursuant to subparagraph (A) of paragraph (2) of subdivision (a) of Section 51560, allocate money from the trust fund to the loss reserve account.(b) (1) The agency shall notify the Joint Legislative Budget Committee if, in any fiscal year, the agency determines that there are insufficient moneys in the trust fund to pay the debt service on revenue bonds issued pursuant to Article 2 (commencing with Section 51560) for that fiscal year.
(2) Upon appropriation in the annual Budget
Act, the Controller shall transfer moneys from the loss reserve account to the trust fund for the sole purpose of paying debt service on revenue bonds issued pursuant to Article 2 (commencing with Section 51560) for any fiscal year for which the agency notifies the Joint Legislative Budget Committee pursuant to paragraph (1), in an amount necessary to pay that debt service for that fiscal year.
