Bill Text: CA SB1260 | 2013-2014 | Regular Session | Introduced
Bill Title: Local government: affordable housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-05-23 - Held in committee and under submission. [SB1260 Detail]
Download: California-2013-SB1260-Introduced.html
BILL NUMBER: SB 1260 INTRODUCED
BILL TEXT
INTRODUCED BY Senator DeSaulnier
FEBRUARY 21, 2014
An act to amend Sections 53395.3 and 53395.5 of the Government
Code, and to amend Sections 34191.26 and 34191.31 of the Health and
Safety Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1260, as introduced, DeSaulnier. Local government: affordable
housing.
Existing law authorizes a city or county to establish
infrastructure financing districts to finance specified types public
facilities.
Existing law requires any district that constructs dwelling units
to set aside not less than 20% of those units to increase and improve
the community's supply of low- and moderate-income housing available
at an affordable housing cost to persons and families of low- and
moderate-income.
This bill would eliminate the requirement of a district that
constructs dwelling units to set aside not less than 20% of those
units for the purpose described above.
Existing law requires the legislative body of the district, if
dwelling units are proposed to be removed or destroyed in the course
of private development or public works construction within the area
of the district, to, among other things, cause or require the
construction or rehabilitation, within 4 years of the removal or
destruction, for rental or sale to persons or families of low or
moderate income, an equal number of replacement dwelling units at
affordable housing cost, as specified, and a number of dwelling units
that is at least one unit but not less than 20% of the total
dwelling units removed at affordable cost, as specified.
This bill would instead require the district to dedicate no less
than 25% of allocated tax increment revenues for affordable housing
purposes in accordance with the applicable affordable housing
provisions of the Community Redevelopment Law. This bill would
require the district to ensure that the number of housing units
occupied by extremely low, very low, and low-income households in the
area of the district is not reduced during the effective period of
the district, to ensure the replacement of dwelling units that house
extremely low, very low, or low-income households within 2 years of
their removal by public or private action from the area of the
district, and to ensure that during the effective period of the
district at least 20% of all new and substantially rehabilitated
dwelling units developed are available at affordable housing cost to,
and occupied by, persons and families of low or moderate income.
This bill would require the district to require that housing units
built remain available at affordable housing cost to, and occupied
by, persons and families of low- or moderate-income households for
the longest feasible time, as provided. This bill would also require
the district to contract for an independent financial and performance
audit every 5 years pursuant to guidelines established by the
Controller, as provided.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined. Existing law dissolved community redevelopment
agencies, as of February 1, 2012, and provides for the designation of
successor agencies.
Senate Bill 1 of the 2013-14 Regular Session, if enacted, would
authorize certain public entities of a Sustainable Communities
Investment Area, as described, to form a Sustainable Communities
Investment Authority (authority) to carry out the Community
Redevelopment Law in a specified manner. The bill would require the
authority to adopt a Sustainable Communities Investment Plan for a
Sustainable Communities Investment Area, and would authorize the
authority to include in that plan a provision for the receipt of tax
increment funds provided that certain economic development and
planning requirements are met, including, among others, a requirement
in an ordinance for the replacement of dwelling units that house
extremely low, very low, and low-income households, as specified. The
bill would require the authority to contract for an independent
financial and performance audit every 5 years, conducted according to
guidelines established by the Controller. The bill would, where
compliance has not been achieved, require the authority to adopt and
submit to the Controller, as part of the audit, a plan to achieve
compliance with the economic development and planning requirements,
which includes, among other things, a means of achieving an increase
in the production of housing for very low income households as
required by other provisions of this bill.
This bill would require the low-income housing ordinance to
require the replacement of dwelling units that house extremely low,
very low, and low-income households within 2 years of their removal
by public or private action, and to also require, prior to the time
limit on the effective period of the Sustainable Communities
Investment Plan, that at least 20% of all new and substantially
rehabilitated dwelling units developed in the Sustainable Communities
Investment Area meet specified affordability and occupancy
requirements.
This bill would make the operation of its provisions contingent
upon the enactment of specified bills.
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. Section 53395.3 of the Government Code is amended to
read:
53395.3. (a) A district may finance (1) 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 which satisfies the
requirements of subdivision (b), (2) may finance planning and design
work which is directly related to the purchase, construction,
expansion, or rehabilitation of that property and (3) the costs
described in Sections 53395.5, and 53396.5. A district may only
finance the purchase of facilities for which construction has been
completed, as determined by the legislative body. The facilities need
not be physically located within the boundaries of the district. A
district may not finance routine maintenance, repair work, or the
costs of ongoing operation or providing services of any kind.
(b) The district shall finance only public capital facilities of
communitywide significance, which provide significant benefits to an
area larger than the area of the district, including, but not limited
to, all of the following:
(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
pipes.
(3) Facilities for the collection and treatment of water for urban
uses.
(4) Flood control levees and dams, retention basins, and drainage
channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, and open space.
(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(c) Any district which constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community's supply of low- and moderate-income housing available at
an affordable housing cost, as defined by Section 50052.5 of the
Health and Safety Code, to persons and families of low- and
moderate-income, as defined in Section 50093 of the Health and Safety
Code.
SEC. 2. Section 53395.5 of the Government Code is amended to read:
53395.5. It is the intent of the Legislature that the
area of the districts created be substantially undeveloped, and
the establishment of a district 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 private development or public works construction within the area
of the district, the legislative body shall do all of the following:
and should increase and improve the community's supply
of low- and moderate-income housing available at an affordable
housing cost, as defined by Section 50052.5 of the Health
and Safety Code, to persons and families of low and moderate income,
as defined in Section 50093 of the Health and Safety Code.
(a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed were inhabited by
persons or families of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
(b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units which
is at least one unit but not less than 20 percent of the total
dwelling units removed at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
(a) The district shall dedicate no less than 25 percent of
allocated tax increment revenues for affordable housing purposes in
accordance with Section 33334.2 and all other applicable affordable
housing provisions of the Community Redevelopment Law (Part 1
(commencing with Section 33000)).
(b) The district shall ensure that the number of housing units
occupied by extremely low, very low, and low-income households,
including the number of bedrooms in those units, in the area of the
district at the time the district is established is not reduced
during the effective period of the district.
(c) The district shall ensure the replacement pursuant to
subdivision (a) of Section 33413 of dwelling units that house
extremely low, very low, or low-income households within two years of
their removal by public or private action from the area of the
district.
(d) The district shall ensure that during the effective period of
the district at least 20 percent of all new and substantially
rehabilitated dwelling units developed in the area of the district by
public or private entities or persons, excluding any units developed
to meet the requirements of subdivisions (b) and (c), shall be
available at affordable housing cost to, and occupied by, persons and
families of low or moderate income. Not less than 40 percent of the
dwelling units required to be available at affordable housing cost
to, and occupied by, persons and families of low or moderate income
shall be available at affordable housing cost to, and occupied by,
very low income households.
(c) Provided
(e) The district shall provide
relocation assistance and make all the payments required by Chapter
16 (commencing with Section 7260) of Division 7 of Title 1, to
persons displaced by any public or private development occurring
within the territory of the district. This displacement shall be
deemed to be the result of public action.
(d) Ensure
(f) The district shall 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 are suitable housing units, at comparable cost to the
units from which the persons or families were displaced, available
and ready for occupancy by the residents of the units at the time of
their displacement. The housing units shall be suitable to the needs
of these displaced persons or families and shall be decent, safe,
sanitary, and otherwise standard dwellings.
(g) (1) Except as provided in paragraph (2), the district shall
require, by recorded covenants or restrictions, that housing units
built pursuant to this section shall remain available at affordable
housing cost to, and occupied by, persons and families of low- or
moderate-income households for the longest feasible time, but for not
less than 55 years for rental units and 45 years for owner-occupied
units.
(2) In lieu of a 45-year covenant or restriction, the district may
subject owner-occupied units to an equity sharing agreement
described in paragraph (2) of subdivision (c) of Section 65915.
(h) (1) Every five years the district shall contract for an
independent financial and performance audit. The audit shall be
conducted according to guidelines established by the Controller. A
copy of the completed audit shall be provided to the Controller, the
Director of the Department of Finance, and to the Joint Legislative
Budget Committee. The Controller shall not be required to review and
approve the completed audits.
(2) The guidelines established by the Controller shall include
guidelines for determining compliance with the affordable housing
production, maintenance, and replacement requirements of this
section, including provisions to ensure that the requirements are met
within each five-year period covered by the audit. A finding of
failure to comply with the requirements of this section shall require
the district to adopt and submit to the Controller, as part of the
audit, a plan to achieve compliance with those provisions as soon as
feasible but in not less than two years following the findings. The
Controller shall review and approve the plan, and shall require the
plan to stay in effect until compliance is achieved. The Controller
shall ensure that the plan includes one or more of the following
means of achieving compliance:
(A) The expenditure of an additional 10 percent of gross tax
increment revenue for increasing, preserving, and improving the
supply of low-income housing.
(B) An increase in the production, by an additional 10 percent, of
housing for very low income households as required by subdivision
(d).
(C) The targeting of expenditures pursuant to Section 33334.2
exclusively to rental housing affordable to, and occupied by, persons
of very low and extremely low income.
SEC. 3. Section 34191.26 of the Health and Safety Code, as added
by Senate Bill 1 of the 2013-14 Regular Session, is amended to read:
34191.26. A Sustainable Communities Investment Plan may include a
provision for the receipt of tax increment funds according to
Section 33670, provided that the local government with land use
jurisdiction has adopted all of the following:
(a) A sustainable parking standards ordinance that restricts
parking in transit priority project areas to encourage transit use to
the greatest extent feasible.
(b) An ordinance creating a jobs plan that requires all entities
receiving financial support from the authority to enter into an
agreement with the authority describing how the project will do both
of the following:
(1) Further construction careers that pay prevailing wages and
create living wage permanent jobs.
(2) Implement a program for community outreach, local hire, and
job training that includes disadvantaged California residents,
including veterans of the Iraq and Afghanistan wars, people with a
history in the criminal justice system, and single-parent families.
(c) For transit priority project areas and small walkable
communities within a metropolitan planning organization, a plan
consistent with the use designation, density, building intensity, and
applicable policies specified for the Sustainable Communities
Investment Area in the sustainable communities strategy.
(d) Within small walkable communities outside a metropolitan
planning organization, a plan for new residential construction that
provides a density of at least 20 dwelling units per net acre and,
for nonresidential uses, provides a minimum floor area ratio of 0.75.
(e) An ordinance that does both all
of the following:
(1) Prohibits the number of housing units occupied by extremely
low, very low, and low-income households, including the number of
bedrooms in those units, in the Sustainable Communities Investment
Area at the time the Sustainable Communities Investment Authority is
established from being reduced during the effective period of the
Sustainable Communities Investment Plan.
(2) Requires the replacement , pursuant to subdivision
(a) of Section 33413, of dwelling units that house
extremely low, very low, or low-income households,
households within two years upon their removal by
public or private action from the Sustainable Communities
Investment Area , pursuant to subdivision (a) of Section
33413 within two years of their displacement .
(3) Notwithstanding subdivision (b) of Section 33413, requires
that prior to the time limit on the effective period of the
Sustainable Communities Investment Plan at least 20 percent of all
new and substantially rehabilitated dwelling units developed in the
Sustainable Communities Investment Area by public or private entities
or persons, excluding any units developed to meet the requirements
of paragraphs (1) and (2), shall be available at affordable housing
cost to, and occupied by, persons and families of low or moderate
income. Not less than 40 percent of the dwelling units required to be
available at affordable housing cost to, and occupied by, persons
and families of low or moderate income shall be available at
affordable housing cost to, and occupied by, very low income
households.
SEC. 4. Section 34191.31 of the Health and Safety Code, as added
by Senate Bill 1 of the 2013-14 Regular Session, is amended to read:
34191.31. (a) Every five years the authority shall contract for
an independent financial and performance audit. The audit shall be
conducted according to guidelines established by the Controller. A
copy of the completed audit shall be provided to the Controller, the
Director of the Department of Finance, and to the Joint Legislative
Budget Committee. The Controller shall not be required to review and
approve the completed audits.
(b) The guidelines established by the Controller shall include
guidelines for determining compliance with the affordable housing
maintenance and replacement requirements of subdivision (e) of
Section 34191.26, including provisions to ensure that the
requirements are met within each five-year period covered by the
audit. A finding of failure to comply with the requirements of
subdivision (e) of Section 34191.26 shall require the authority to
adopt and submit to the Controller, as part of the audit, a plan to
achieve compliance with those provisions as soon as feasible but in
not less than two years following the findings. The Controller shall
review and approve the plan, and require the plan to stay in effect
until compliance is achieved. The Controller shall ensure that the
plan includes one or more of the following means of achieving
compliance:
(1) The expenditure of an additional 10 percent of gross tax
increment revenue on increasing, preserving, and improving the supply
of low-income housing.
(2) An increase in the production, by an additional 10 percent, of
housing for very low income households as required by paragraph
(2) (3) of subdivision (b)
(e) of Section 33413
34191.26 .
(3) The targeting of expenditures pursuant to Section 33334.2
exclusively to rental housing affordable to, and occupied by, persons
of very low and extremely low income.
SEC. 5. Sections 1 to 4, inclusive, of this act shall only become
operative if Senate Bill 1 of the 2013-14 Regular Session, and any of
the following bills, become operative:
(a) Senate Bill 33 of the 2013-14 Regular Session.
(b) Senate Bill 628 of the 2013-14 Regular Session.
(c) Assembly Bill 229 of the 2013-14 Regular Session.
(d) Senate Bill 243 of the 2013-14 Regular Session.
