Bill Text: CA SB628 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Enhanced infrastructure financing districts.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State. Chapter 785, Statutes of 2014. [SB628 Detail]

Download: California-2013-SB628-Introduced.html

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BILL NUMBER: SB 628	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Beall

                        FEBRUARY 22, 2013

   An act to amend Sections 53395.1, 53395.3, 53395.10, 53395.11,
53395.12, 53395.14, 53395.19, 53395.20, 53396, 53397.1, and 53397.2
of, and to add Sections 53395.7.5 and 65460.2.5 to, the Government
Code, relating to local planning.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 628, as introduced, Beall. Infrastructure financing.
   (1) Existing law establishes the Transit Priority Project Program,
and authorizes a city or county to participate in the program by
adopting an ordinance indicating its intent to participate in the
program and by forming an infrastructure financing district. Existing
law requires a city or county that elects to participate in the
program to amend, if necessary, its general plan, and any related
specific plan, to authorize participating developers to build at an
increased height of a minimum of 3 stories within the newly created
infrastructure financing district. Existing law exempts from these
provisions a city or county that has adopted specified language in
its charter, or by ordinance or resolution.
   This bill would eliminate the requirement of voter approval for
the adoption of an infrastructure financing plan, the creation of an
infrastructure financing district, and the issuance of bonds with
respect to a transit priority project. The bill would require a city
or county that uses infrastructure financing district bonds to
finance its transit priority project to use at least 20% of the
revenue from those bonds for the purposes of increasing, improving,
and preserving the supply of lower and moderate-income housing; to
require that those housing units remain available and occupied by
moderate-, low-, very low, and extremely low income households for at
least 55 years for rental units and 45 years for owner-occupied
units; and to rehabilitate, develop, or construct for rental or sale
to persons and families of low or moderate income an equal number of
replacement dwellings to those removed or destroyed from the low- and
moderate-income segment of the housing market as a result of the
development of the district, as specified. The bill would set forth
the findings and declarations of the Legislature, and the intent of
the Legislature that the development of transit priority projects be
environmentally conscious and sustainable, and that related
construction meet or exceed the requirements of the California Green
Building Standards Code.
   (2) Existing law prohibits the legislative body of a city or
county from enacting a resolution proposing the formation of an
infrastructure finance district and providing for the division of
taxes of any affected taxing entity 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 has
been filed with the legislative body at or prior to the time of the
hearing.
   This bill would require, in the case of an affected taxing entity
that is a special district that provides fire protection services and
where the county board of supervisors is the governing authority or
has appointed itself as the governing board of the district, that the
proposed infrastructure financing district plan be adopted by a
separate resolution approved by the special district's governing
authority or board.
   This bill would also eliminate the requirement of voter approval
and authorize the legislative body to create the district, adopt the
plan, and issue the bonds by resolutions.
   (3) Existing law requires that an infrastructure financing plan
created by a legislative body to include a date on which the
infrastructure finance district will cease to exist, which shall not
be more than 30 years from the date on which the ordinance forming
the district is adopted.
   This bill instead would specify that the date on which the
infrastructure finance district would cease to exist would not be
more than 40 years from the date on which the legislative body
adopted the resolution adopting the infrastructure financing plan.
   The bill would also impose additional reporting requirements after
the adoption of an infrastructure financing plan.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) Federal, state, and local governments in California are
investing in new and expanded transit systems in areas throughout the
state, including the County of Los Angeles, the San Francisco Bay
area, the County of San Diego, the County of Santa Clara, and the
County of Sacramento.
   (2) This public investment in transit is unrivaled in the state's
history and represents well over $10,000,000,000 in planned
investment alone.
   (3) Recent studies of transit ridership in California indicate
that people who live within a one-half mile radius of transit
stations utilize the transit system in far greater numbers than does
the general public living elsewhere.
   (4) The planning strategy of clustering housing and commercial
development around transit stations, and the creation of transit
priority projects pursuant to that strategy, has gained momentum in
recent years.
   (5) Only a few transit stations in California have any
concentration of housing in close proximity to the station.
   (6) The greater use of public transit facilitated by the
development of transit priority projects improves local street, road,
and highway congestion by providing viable alternatives to
automobile use.
   (7) The development of transit priority projects can improve
environmental conditions by increasing the use of public transit,
facilitating the creation of and improvements to walkable, mixed-use
communities, and decreasing automobile use.
   (8) Transit-oriented development can improve local and regional
economies by providing appropriate commercial and residential
development opportunities, including investment in local transit
priority project development, job creation through the construction
of related facilities, and job creation through employment
opportunities associated with related entertainment, retail,
residential, and other mixed-use development.
   (9) Facilitating the use of infrastructure financing districts for
transit priority projects could provide local jurisdictions with a
cost-effective tool for pursuing transit-oriented development
projects.
   (10) Tax-increment financing of transit priority projects will
provide a new tool for green development to help achieve the
sustainable communities strategy and regional transportation plan
goals of Senate Bill 375 of the 2007-08 Regular Session of the
Legislature (Chapter 728 of the Statutes of 2008), as well as the
greenhouse gas reduction goals of Assembly Bill 32 of the 2005-06
Regular Session of the Legislature (Chapter 488 of the Statutes of
2006).
   (11) Tax-increment financing has been a useful tool for local
government to fund redevelopment projects, and there is a need for
the state to continue to provide local governments with revenue
generating infrastructure financing tools during difficult economic
times. Local governments will benefit greatly from the expanded use
of infrastructure financing districts for the delivery of
transit-oriented development and related low-income housing.
   (b) It is the intent of the Legislature that the development of
transit priority projects throughout the state be environmentally
conscious and sustainable, and that related construction meet or
exceed the requirements of the California Green Building Standards
Code (Part 11 (commencing with Section 101.1) of Title 24 of the
California Code of Regulations, or its successor code).
  SEC. 2.  Section 53395.1 of the Government Code is amended to read:

   53395.1.  Unless the context otherwise requires, the 
following  definitions  contained in this article
 shall govern the construction of this  chapter.
  chapter: 
   (a) "Affected taxing entity" means any governmental taxing agency
 which   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 prior to the designation of
the district, but not including any county office of education,
school district, or community college district.
   (b) "City" means a city, a county, or a city and county.
   (c) "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.
   (d) "Designated official" means the city engineer or other
appropriate official designated pursuant to Section 53395.13.
   (e) (1) "District" means an infrastructure financing district.
   (2) An infrastructure financing district is a "district" within
the meaning of Section 1 of Article XIII A of the California
Constitution.
   (f) "Infrastructure financing district" means a legally
constituted governmental entity established pursuant to this chapter
for the sole purpose of financing public facilities.
   (g) "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.
   (h) "Legislative body" means the city council or board of
supervisors. 
   (i) "Transit facility" includes, but is not limited to, any
publicly owned facility and amenity necessary to implement a transit
priority project plan adopted pursuant to Article 8.5 (commencing
with Section 65460) of Chapter 3 of Division 1 of Title 7. 
  SEC. 3.  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  
property,  and (3) the costs described in Sections 53395.5, and
53396.5. A district  may   shall  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.  A
district shall not compensate the members of the legislative body of
the city for any activities undertaken pursuant to this chapter.

   (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. 4.  Section 53395.7.5 is added to the Government Code, to
read:
   53395.7.5.  (a) The district may finance any project that
implements a transit priority project pursuant to Section 65470,
regional transportation plan, or other project that is consistent
with the general use, designation, density, building intensity, and
applicable policies specified for the project area in either a
sustainable communities strategy, or an alternative planning
strategy, for which the Air Resources Board, pursuant to Chapter 2.5
(commencing with Section 65080) of Division 1 of Title 7, has
accepted a metropolitan planning organization's determination that
the sustainable communities strategy or the alternative planning
strategy, if implemented, would achieve the greenhouse gas emission
reduction targets.
   (b) With respect to an infrastructure financing district proposed
to implement a transit priority project, an election is not required
to form an infrastructure financing district, adopt an infrastructure
financing plan, or issue bonds pursuant to this chapter. Any other
provision of this chapter applies to the formation of an
infrastructure financing district and the adoption of an
infrastructure financing plan.
  SEC. 5.  Section 53395.10 of the Government Code is amended to
read:
   53395.10.  A legislative body of a city may designate one or more
proposed infrastructure financing districts pursuant to this chapter.
Proceedings for the establishment of a district shall be instituted
by the adoption of a resolution of intention to establish the
proposed district and shall do all of the following:
   (a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.
   (b) State the type of public facilities proposed to be financed by
the district. The district may only finance public facilities
authorized by Section 53395.3. 
   (c) State the need for the district and the goals the district
proposes to achieve by financing public facilities.  
   (c) 
    (d)  State that incremental property tax revenue from
the city and some or all affected taxing entities within the district
may be used to finance these public facilities. 
   (d) 
    (e)  Fix a time and place for a public hearing on the
proposal.
  SEC. 6.  Section 53395.11 of the Government Code is amended to
read:
   53395.11.  The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the  district.   district
and to each affected taxing entity. 
  SEC. 7.  Section 53395.12 of the Government Code is amended to
read:
   53395.12.  The legislative body shall direct the clerk to 
mail   post  a copy of the resolution  of
intention  to  each affected taxing entity. 
 create the district in an easily identifiable and accessible
location on the legislative body's Internet Web site. 
  SEC. 8.  Section 53395.14 of the Government Code is amended to
read:
   53395.14.  After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing plan. The
infrastructure financing plan shall be consistent with the general
plan of the city within which the district is located and shall
include all of the following:
   (a) 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.
   (b) A description of the public facilities required to serve the
development proposed in the area of the district including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
   (c) A finding that the public facilities  are of
communitywide significance and  provide significant benefits
to an area larger than the area of the district.
   (d) A financing section, which shall contain all of the following
information:
   (1) A specification of the maximum portion of the incremental tax
revenue of the city 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. The portion need not be the
same for all affected taxing entities. The portion may change over
time.
   (2) 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.
   (3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
   (4) A limit on the total number of dollars of taxes which may be
allocated to the district pursuant to the plan.
   (5) 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  30   40  years from the date
on which the ordinance forming the district is adopted pursuant to
Section 53395.23.
   (6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed. The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city as a result of expected
development in the area of the district.
   (7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.

   (8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including any
permit and affordable housing expenses related to the project.

   (e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53395.5. 
   (f) The goals the district proposes to achieve by financing public
facilities. 
  SEC. 9.  Section 53395.19 of the Government Code is amended to
read:
   53395.19.  (a) The legislative body shall not enact a resolution
proposing formation of a district and providing for the division of
taxes of any affected taxing entity pursuant to Article 3 (commencing
with Section 53396) unless a resolution approving the plan has been
adopted by the governing body of each affected taxing entity which is
proposed to be subject to division of taxes pursuant to Article 3
(commencing with Section 53396) has been filed with the legislative
body at or prior to the time of the hearing. 
   (b) In the case of an affected taxing entity that is a special
district that provides fire protection services and where the county
board of supervisors is the governing authority or has appointed
itself as the governing board of the district, the plan shall be
adopted by a separate resolution approved by the district's governing
authority or governing board.  
   (b) 
    (c)  Nothing in this section shall be construed to
prevent the legislative body from amending its infrastructure
financing plan and adopting a resolution proposing formation of the
infrastructure financing district without allocation of the tax
revenues of any affected taxing entity which has not approved the
infrastructure financing plan by resolution of the governing body of
the affected taxing entity.
  SEC. 10.  Section 53395.20 of the Government Code is amended to
read:
   53395.20.  (a) At the conclusion of the  hearing,
  hearing required by Section 53395.17,  the
legislative body may adopt a resolution  proposing adoption
of   adopting  the infrastructure financing plan,
as modified, and  approving the  formation of the
infrastructure financing district in a manner consistent with Section
53395.19, or it may abandon the proceedings.  If the
legislative body adopts a resolution proposing formation of the
district, it shall then submit the proposal to create the district to
the qualified electors of the proposed district in the next general
election or in a special election to be held, notwithstanding any
other requirement, including any requirement that elections be held
on specified dates, contained in the Elections Code, at least 90
days, but not more than 180 days, following the adoption of the
resolution of formation. The legislative body shall provide the
resolution of formation, a certified map of sufficient scale and
clarity to show the boundaries of the district, and a sufficient
description to allow the election official to determine the
boundaries of the district to the official conducting the election
within three business days after the adoption of the resolution of
formation. The assessor's parcel numbers for the land within the
district shall be included if it is a landowner election or the
district does not conform to an existing district's boundaries and if
requested by the official conducting the election. If the election
is to be held less than 125 days following the adoption of the
resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct of
the election may be waived with the unanimous consent of the
qualified electors of the proposed district and the concurrence of
the election official conducting the election.  
   (b) If at least 12 persons have been registered to vote within the
territory of  
   (b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the legislative body shall direct the
clerk to mail an annual report to each owner of land within the
district and each affected taxing entity. The legislative body shall
direct the clerk to post this annual report in an easily identifiable
and accessible location on the legislative body's Internet Web site.
The annual report shall contain all of the following:  
   (1) A summary of the district's expenditures.  
   (2) A description of the progress made towards the district's
adopted goals. 
    (3)     An assessment of  the 
proposed district for each   status regarding
completion  of the  90 days preceding the close of the
hearing, the vote shall be by the registered voters of the proposed
district, who need not necessarily be the same persons, with each
voter having one vote. Otherwise, the vote shall be by the landowners
of the proposed district and each landowner who is the owner of
record at the close of the protest hearing, or the authorized
representative thereof, shall have one vote for each acre or portion
of an acre of land that he or she owns within the proposed district.
The number of votes to be voted by a particular landowner shall be
specified on the ballot provided to that landowner.  
district's public works projects. 
   (c)  Ballots for   If   the
 special election authorized   district fails to
provide the annual report required  by subdivision  (a)
may be distributed to qualified electors by mail with return postage
prepaid or by personal service by   (b),  the
 election official. The official conducting the election may
certify the proper mailing of ballots by an affidavit, which
  district  shall  be exclusive proof of
mailing in the absence of fraud. The voted ballots shall be returned
to the election officer conducting the election  not
 later than the hour specified in the resolution calling
  spend any funds to construct public works projects
until  the  election. However, if all the qualified
voters have voted, the election shall be closed.  
annual report is submitted.  
   (d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public works
projects; provided, however, the district may complete any public
works projects that it had started. Any excess property tax increment
revenues that had been allocated for new public works projects shall
be reallocated to the affected taxing entities. 
  SEC. 11.  Section 53396 of the Government Code is amended to read:
   53396.  Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the ordinance adopted pursuant to Section
53395.23 to create the district,  unless the district implements
a transit priority project   plan pursuant to Section
53395.75,  shall be divided as follows:
   (a) That portion of the taxes which 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 prior to the effective date of the
ordinance adopted pursuant to Section 53395.23 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.
   (b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) 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 subdivision (a), 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 infrastructure 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.
  SEC. 12.  Section 53397.1 of the Government Code is amended to
read:
   53397.1.  The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
 resolution stating its intent to issue the bonds. 
 resolution. 
  SEC. 13.  Section 53397.2 of the Government Code is amended to
read:
   53397.2.  The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the  proposed  bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
 proposed  bond issuance.
   (c) The maximum interest rate and discount on the proposed bond
issuance. 
   (d) The date of the election on the proposed bond issuance and the
manner of holding the election.  
   (e) 
    (d)  A determination of the amount of tax revenue
available or estimated to be available, for the payment of the
principal of, and interest on, the bonds. 
   (f) 
    (e)  A finding that the amount necessary to pay the
principal of, and interest on, the  proposed  bond
issuance will be less than, or equal to, the amount determined
pursuant to subdivision  (e).   (d).  
   (f) The issuance of the bonds in one or more series.  
   (g) The date the bonds will bear.  
   (h) The denomination of the bonds.  
   (i) The form of the bonds.  
   (j) The manner and execution of the bonds.  
   (k) The medium of payment in which the bonds are payable. 

   (l  ) The place or manner of payment and any requirements for
registration of the bonds. 
   (m) The terms or call of redemption, with or without premium.

  SEC. 14.  Section 65460.2.5 is added to the Government Code, to
read:
   65460.2.5.  If a city, county, or city and county finances a
district that implements a transit priority project plan adopted
pursuant to this article, the city, county, or city and county shall
do all of the following:
   (a) Use at least 20 percent of all revenues derived from the
property tax increment under Chapter 2.8 (commencing with Section
53395) of Part 1 of Division 2 of Title 5 for the purposes of
increasing, improving, and preserving the supply of lower and
moderate-income housing available in the district at an affordable
housing cost, as defined in Section 50052.5 of the Health and Safety
Code, and occupied by persons and families of low or moderate income,
as defined in Section 50093 of the Health and Safety Code, lower
income households,                                             as
defined in Section 50079.5 of the Health and Safety Code, very low
income households, as defined in Section 50105 of the Health and
Safety Code, and extremely low income households, as defined in
Section 50106 of the Health and Safety Code. The amount of very low,
low- and moderate-income housing shall be in compliance with the
Community Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code) and any adopted
policies of the city, county, or city and county that adopted the
transit priority project plan.
   (b) Require that housing units described in subdivision (a) remain
available at affordable housing cost to, and occupied by, persons
and families of low- or moderate-income and very low income and
extremely low income households for the longest feasible time, but
for not less than 55 years for rental units and 45 years for
owner-occupied units. The covenants or restrictions implementing this
requirement shall be in compliance with subdivision (f) of Section
33334.3 of the Health and Safety Code.
   (c) Rehabilitate, develop, or construct, or cause to be
rehabilitated, developed, or constructed for rental or sale to
persons or families of low or moderate income an equal number of
replacement dwelling units that have an equal or greater number of
bedrooms as the destroyed or removed units, at affordable housing
costs within the district, and within four years after the
destruction or removal, whenever dwelling units housing persons or
families of low or moderate income are destroyed or removed from the
low- and moderate-income housing market as part of the development of
a district that is subject to a written agreement with the city,
county, or city and county, or when financial assistance has been
provided by the city, county, or city and county. The replacement
dwelling units shall be available at affordable housing cost to, and
occupied by, persons and families in the same or a lower income
category as the persons and families displaced from those destroyed
or removed units.
   (d) Include in the transit priority project plan both of the
following:
   (1) As one of the five demonstrable public benefits required by
subdivision (f) of Section 65460.2, either an increased stock of
affordable housing or live-travel options for transit-needy groups.
   (2) Provisions to implement subdivisions (a) and (b) and paragraph
(1).