Bill Text: CA SB1151 | 2011-2012 | Regular Session | Amended
Bill Title: Sustainable Economic Development and Housing Trust Fund:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2012-06-19 - Hearing postponed by committee. [SB1151 Detail]
Download: California-2011-SB1151-Amended.html
BILL NUMBER: SB 1151 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 29, 2012
AMENDED IN SENATE MARCH 29, 2012
INTRODUCED BY Senator Steinberg
FEBRUARY 21, 2012
An act to amend Section 34177 of, and to add Sections 34177.1 and
34177.2 to, the Health and Safety Code, relating to economic
development.
LEGISLATIVE COUNSEL'S DIGEST
SB 1151, as amended, Steinberg. Sustainable Economic Development
and Housing Trust Fund: long-range asset management plan.
Existing law dissolved redevelopment agencies and community
development agencies, as of February 1, 2012, and provides for the
designation of successor agencies, as defined. Existing law imposes
various requirements on successor agencies and subjects successor
agency actions to the review of oversight boards. Existing law
requires successor agencies to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, dispose of assets
and properties of the former redevelopment agencies, as directed by
the oversight board. Proceeds from the sale of assets are transferred
to the county auditor-controller for distribution as property tax
proceeds to taxing entities, as prescribed.
This bill would provide that the asset disposition and
transfer provisions do not apply to a jurisdiction in which a
Community Development and Housing Authority (authority) has been
formed by August 1, 2012. The bill would establish a
Sustainable Economic Development and Housing Trust Fund, to be
administered by an authority a Sustainable
Communities Investment Authority (authority) , to serve as a
repository of the unencumbered balances and assets of the former
redevelopment agency. The bill would authorize moneys from the fund
to be expended for specified purposes relating to economic
development and affordable housing. The bill would require an
authority to prepare a long-range asset management plan that governs
the disposition and ongoing use of the fund. The bill would require
an authority to submit the plan to the Department of Finance by
December 1, 2012, and would require the department to approve or
return the plan for revision to the authority prior to final approval
by December 31, 2012.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that the assets,
properties, contracts, leases, books and records, buildings, and
equipment of former redevelopment agencies constitute a valuable
resource that should be maintained for the purpose of economic
development and housing within the communities served by the former
redevelopment agency.
SEC. 2. 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 (e) 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.
(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 May 1, 2012, 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, commencing May 1, 2012, 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.
(4) Nothing in the act adding this part is to be
construed as preventing Chapter 5 of the First
Extraordinary Session of the Statutes of 2011 does not prevent
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) (1) 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.
(2) This subdivision shall not apply to a jurisdiction where a
Community Development and Housing Joint Powers Authority has been
formed pursuant to Part 1.86 (commencing with Section 34191.1) by
August 1, 2012.
(e) (1) 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
shall be done expeditiously, 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
Sustainable Economic Development and Housing Trust Fund,
regardless of whether a Sustainable Communities Investment Authority
has been formed pursuant to Part 1.86 (commencing with Section
34191.1) .
(2) This subdivision shall not apply to a jurisdiction where a
Community Development and Housing Joint Powers Authority has been
formed pursuant to Part 1.86 (commencing with Section 34191.1) by
August 1, 2012.
(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 draft Recognized Obligation Payment Schedule is prepared by
the successor agency for the enforceable obligations of the former
redevelopment agency by March 1, 2012. From October 1, 2011, to July
1, 2012, the initial draft of that 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 such a redevelopment agency not been dissolved, and shall be
reviewed and certified, as to its accuracy, by an external auditor
designated pursuant to Section 34182.
(B) The certified Recognized Obligation Payment Schedule is
submitted to and duly approved by the oversight board.
(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 be 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. 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.
SEC. 3. Section 34177.1 is added to the Health and Safety Code, to
read:
34177.1. (a) (1) A Community
Development and Housing Sustainable Communities
Investment Authority established pursuant to Part 1.86
(commencing with Section 34191.1) shall prepare a long-range asset
management plan that shall govern the disposition and ongoing use of
the Sustainable Economic Development and Housing Trust Fund.
(2) If a Sustainable Communities Investment Authority has been
formed pursuant to a joint powers agreement between a city and
county, or by the county alone in the case of an unincorporated area,
the authority shall develop the long-range asset management plan.
(3) If a Sustainable Communities Investment Authority has not been
formed, the oversight board shall develop the long-range asset
management plan.
(b) (1) The long-range asset management plan shall be submitted to
the Department of Finance for approval by December 1, 2012. The
department shall approve the plan or return the plan to the authority
for revisions prior to final approval, by December 31, 2012. The
plan shall be updated annually and submitted to the department for
approval by December 1 of each year. No assets shall be
liquidated until the plan is approved by the department.
(2) The department, as a condition of granting approval to the
long-range asset management plan submitted by the authority, may
choose to establish a minimum asset distribution requirement, to
ensure that K-14 schools and local agencies receive a minimal amount
of funding from the dissolution of assets of the trust pursuant to
Section 34188.
(c) The long-range asset management plan shall outline a strategy
for maximizing the long-term social and monetary value of the real
property and assets in the trust for the purpose of sustainable
economic development consistent with Part 1.86 (commencing with
Section 34191.1) and creating high wage, high skill jobs, and
affordable housing.
(d) The long-range asset management plan shall do both of the
following:
(1) Include an inventory of all assets in the trust, including,
but not limited to, all assets identified by the auditor-controller
in the audit conducted pursuant to subdivision (a) of Section 34182.
The inventory shall consist of the following:
(A) The date of the acquisition of the asset and the value of the
asset at that time, and an estimate of the current value of the
asset.
(B) The purpose for which the asset was acquired.
(C) For real property assets:
(i) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(ii) An estimate of the current value of the parcel, including, if
available, any appraisal information.
(iii) A history of environmental contamination, including
designation as a brownfield, and any related environmental studies
and history of any remediation efforts.
(iv) A description of the strategic value of the property with
respect to its potential for transit-oriented development and
advancing the planning objectives of the member agencies of the
Community Development and Housing Sustainable
Communities Investment Authority.
(v) A brief history of previous development proposals and
activity, including rental or lease of property.
(2) Address the use or disposition of all of the assets in the
trust. Permissible uses include the retention of the asset for
governmental use pursuant to subdivision (a) of Section 34181, the
sale of the asset, and the retention of the asset in the trust for
future use. It shall not be necessary to maximize the monetary value
of the asset if an alternative deployment of the asset furthers
social and community objectives determined by the authority and
consistent with this article. Property disposed of by the authority
shall not be the subject of real estate speculation.
(e) All entities receiving financial support from or authorized by
this article shall incorporate into any and all agreements a jobs
plan, which shall describe how the project will create construction
careers that pay prevailing wages, living wage permanent jobs, and a
program for community outreach, local hire, and job training. This
plan shall also describe the project developer's commitment to offer
jobs to disadvantaged California residents, including veterans of the
Iraq and Afghanistan wars, people with a history in the criminal
justice system, and single parent families.
SEC. 4. Section 34177.2 is added to the Health and Safety Code, to
read:
34177.2. (a) The Sustainable Economic Development and Housing
Trust Fund is hereby established to serve as the repository of the
unencumbered balances for each former redevelopment agency's funds,
assets, and properties. For purposes of this section, "assets" shall
include, but are not limited to, real and personal property holdings,
tax revenues, former redevelopment project revenues, other revenues,
and investment accounts, deeds of trust and mortgages held by the
former agency, rents, fees, charges, moneys, accounts receivable,
contracts rights, and other rights to payment of whatever kind or
other real or personal property. The trust fund shall be in
existence regardless of whether a Sustainable Communities Investment
Authority has been formed.
(b) In addition to the assets of the former redevelopment
agencies, the trust fund may accept revenues from any source,
including tax revenues, grants, and loans. Notwithstanding paragraph
(1) of subdivision (e) of Section 34177, the proceeds of asset sales
may be retained for ongoing sustainable economic development and
affordable housing activities of the joint powers authority specified
in and consistent with Part 1.86 (commencing with Section 34191.1),
and shall not be distributed as property tax pursuant to Section
34188.
(c) The Sustainable Economic Development and Housing Trust Fund
shall be administered by the Community Development and
Housing Joint Powers Sustainable
Communities Investment Authority established pursuant to Part
1.86 (commencing with Section 34191.1).
(d) Moneys in the Sustainable Economic Development and Housing
Trust Fund may be used for any of the following purposes:
(1) The purchase, acquisition, financing, or maintenance of public
or private infrastructure needed for infill development consistent
with Chapter 728 of the Statutes of 2008.
(2) Affordable housing.
(3) Transitional housing needed for former inmate populations
transferred to the jurisdiction of the counties pursuant to the 2011
criminal justice realignment.
(4) Loans to public or private entities for development activities
defined in Section 34191.2.
(5) Environmental mitigation, including, but not limited to,
brownfield site remediation.
(6) Payment of liabilities of the former redevelopment agency.
(7) Land acquisition.
(8) Clean energy and energy efficiency investments.
(9) Educational, labor-management, and job training programs
leading to careers in high-need, high-growth, or emerging regional
economic sectors.
(e) This section shall apply to a jurisdiction where a Community
Development and Housing Authority has been formed pursuant to Part
1.86 (commencing with Section 34191.1) by August 1, 2012.
