64830.
(a) Revenue generated pursuant to this part shall be used for the construction of new affordable housing, affordable housing preservation, tenant protection programs, planning and technical assistance related to affordable housing, and for other purposes, as provided for in this section.(b) For purposes of this section, “regional housing revenues” are those revenues generated pursuant to this Chapter 2 (commencing with Section 64810).
(c) The allocation of regional housing revenues to projects and programs shall be approved by the board.
(d) Subject to funding eligibility and adjustment pursuant to paragraph
(4), the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following minimum shares over five-year periods commencing after revenue is approved by voters as follows:
(1) A minimum of 50 percent of the annual programmatic budget, excluding any bond indebtedness, shall be spent on affordable housing creation, preservation, and ownership as follows:
(A) The following conditions shall apply with regard to affordable housing creation:
(i) Funding pursuant to this subparagraph may be used for the following purposes, including, but not limited to, land acquisition, housing acquisition, financing, and ownership programs, including the agency serving as a single source of financing as
appropriate.
(ii) Financing for any development costs associated with a project or funding grant that is for housing that is 100 percent affordable, which means restricted to any household that earns less than 80 percent of the area median income (AMI).
(iii) In any funded development or affordable housing grant, at least 25 percent of the units in an awarded project or grant shall be reserved for extremely low income households that fall within zero percent to 30 percent of the AMI.
(iv) In any funded development or affordable housing grant, at least 25 percent of the units in an awarded project or grant shall be reserved for very low income households that fall within 30 percent to 50 percent of the AMI or lower.
(B) The following conditions shall
apply with regard to affordable housing preservation:
(i) Funding pursuant to this subparagraph for preservation programs may be used to acquire, rehabilitate, and preserve existing housing units for affordability, as well as housing from the private market, including residential hotels, as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code, in order to prevent the loss of affordability as well as expand permanent affordability. Funding provided pursuant to this subparagraph shall be subject to both of the following conditions:
(I) Existing residents of buildings acquired for the purpose of affordable housing preservation shall not be permanently displaced, even if the resident’s household income exceeds the moderate-income limits in Section 50093 of the Health and Safety Code.
(II) Buildings acquired for the purpose of affordable housing preservation shall achieve 100 percent occupancy by extremely low and very low income households over time through unit turnover.
(ii) Community land trusts, and other similar structures, are an eligible use pursuant to this subparagraph.
(C) The following conditions shall apply to affordable ownership:
(i) Programs to enable low- or moderate-income households to become or remain homeowners, including, but not limited to, below market rate ownership programs, down payment assistance programs, residential rehabilitation loan programs, and grants or loans to assist in the rehabilitation or replacement of existing mobilehomes located in a mobilehome or manufactured home community.
(ii) Community land trusts, and other similar structures, are an eligible use
pursuant to this subparagraph.
(D) Funding provided pursuant to this subparagraph shall be subject to the following conditions in the event that demolition or rehabilitation of housing units is required:
(i) (I) Any funded development or affordable housing grant on any property that includes a parcel or parcels that currently have residential uses, or within the five years preceding the grant have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low- or very low income, subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units with at least the same number of units of equivalent number of bedrooms to be made
available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy.
(II) Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915, provided that any dwelling unit that is or was, within the five-year period preceding the grant, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income shall be replaced with units made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families.
(ii) If existing residents are required to be relocated due to demolition or rehabilitation needs, the developer is required to provide relocation benefits to the occupants of those housing rental units subject to Chapter 16 (commencing with Section 7260)
of Division 7 of Title 1. This clause shall not supersede any provision of a locally adopted ordinance that requires greater relocation assistance to displaced households.
(iii) If existing residents are required to be relocated due to demolition or rehabilitation needs, the developer shall provide a right of first refusal for a comparable unit available in the new or rehabilitated housing development that is affordable to the household at an affordable rent, as defined in Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code.
(2) (A) No less than 30 percent and not more than 40 percent of the total annual programmatic budget, excluding any bond indebtedness, shall be spent on countywide renter protection and support programs.
(B) These programs include any effort that helps low-income renters, defined as a household that
earns 80 percent or less of the AMI.
(C) Eligible uses of the funds, include, but are not limited to, all of the following:
(i) Preeviction and eviction legal services, counseling, advice and consultation, training, renter education and representation, and services to improve habitability that protect against displacement of tenants.
(ii) Providing rental assistance for lower-income households. Rental assistance shall be paired with supportive services, such as eviction prevention and defense, to the greatest extent possible.
(iii) Providing relocation assistance for lower-income households beyond what is legally required of landlords according to local or state law.
(iv) Collection and tracking of information related to displacement and displacement risk, rents, and evictions in the region.
(3) Not more than 10 percent of the percent of the
total annual programmatic budget, excluding any bond indebtedness, shall be used for administrative and operations expenses associated with the agency.
(4) No earlier than five years after approval of a funding measure under Chapter 2 (commencing with Section 64810) and subject to consultation with the advisory committee, the board may change any of the minimum requirements in paragraph (1) or (2) if the board adopts a finding that the region’s needs in a given category differ from those requirements. The board is required to approve the finding by a two-thirds vote. Approval of the finding shall be subject to the public participation requirements provided in subdivision (f) of Section 64711.
(e) (1) The board shall, in consultation with the advisory committee, adopt a regional expenditure plan for the use of housing revenue by July 1 of each year, except the board shall select the deadline to adopt the first regional expenditure
plan. The regional expenditure plan may cover multiple years, as determined by the board.
(2) The regional expenditure plan shall set forth the share of revenue and estimated funding amount to be spent on each of the categories established in subdivision (d), indicate the household income levels to be served within each category of expenditures, and estimate the number of affordable housing units to be built or preserved and the number of tenants to be protected. To the extent feasible, the regional expenditure plan shall include a description of any specific project or program proposed to receive funding, including the location, amount of funding, and anticipated outcomes.
(3) The regional expenditure plan shall include the following information for any specific project that has received an allocation of regional housing revenue during the prior year:
(A) Whether the project proponent has requested a building permit for
the project, and if so, the date when it was requested.
(B) Whether the project proponent is eligible to request a building permit for the project, and if so, the date when it became eligible.
(C) Whether the project proponent has obtained final approval or certification that the housing development is habitable, such as a certificate of occupancy, and if so, the date when it was obtained.
(f) (1) Funds allocated to a city pursuant to paragraph (4) of subdivision (d) shall be committed to a specific project within five years of receipt.
(2) Once committed to a specific project, funds shall remain available for expenditure for an additional five years, unless an extension is authorized pursuant to paragraph (3).
(3) If the funds have not been expended within five years of receipt as required in paragraph (2), the city shall show that it has made
adequate progress towards completing the project. If the county finds that the city has made adequate progress, the county shall authorize an additional 24 months to grant entitlements to the remainder of the project. If the county does not find that the city has made adequate progress, the funds shall be transferred to the county. The county shall hold the funds until the city submits a plan satisfactory to the county to move forward with the project or allocate funds to another qualified project consistent with the city’s expenditure plan.
(4) For purposes of this subdivision “adequate progress” means the project has received the land use approvals or entitlements necessary for at least 75 percent of the project’s units.