Today's Law As Amended

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AB-1659 Local home financing agencies: City of Los Angeles: nonprofit public benefit corporation.(2019-2020)



SECTION 1.

 Section 52011.6 is added to the Health and Safety Code, to read:

52011.6.
 “City” also includes a nonprofit public benefit corporation created by the City of Los Angeles for the purpose of financing, creating, or preserving affordable housing within the City of Los Angeles, subject to all of the following conditions:
(a) The nonprofit public benefit corporation is created at the direction of, and is designated by, the City of Los Angeles by a vote of its city council in an open meeting. The action shall include findings demonstrating that the creation of the nonprofit public benefit corporation is in the interests of the public.
(b) The nonprofit public benefit corporation is governed by a board of directors that consists of officials designated by the city, affordable housing advocates, members of the public, and private industry experts with knowledge of, and expertise in, the areas of housing finance and development.
(c) The members of the board of directors shall be appointed by the mayor with the advice and consent of the City Council of the City of Los Angeles. All members of the board shall serve staggered terms.
(d) The members of the board of directors shall not be compensated for service on the board.
(e) The board of directors shall hold appropriate meetings to authorize all corporate actions and all of its meetings shall be open to the public.
(f) The board of directors shall be subject to the prudent investor standard as defined in Section 53600.3 of the Government Code.
(g) The nonprofit public benefit corporation shall do all of the following:
(1) Maintain books and records prepared in accordance with generally accepted accounting principles that are audited each fiscal year.
(2) Prepare an annual report detailing its programs, accomplishments, and costs associated with operating the corporation during the fiscal year.
(3) Maintain a public internet website, and, at the end of each fiscal year, post on that internet website its audited financial statements and annual report described in paragraph (2).
(4) Submit its audited financial statements and annual report to the mayor, the city council, and the treasurer at the end of each fiscal year.
(5) Establish a policy for preventing conflicts of interest and violations of Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code.
(h) The nonprofit public benefit corporation shall only provide the services authorized in this part to benefit residents within the City of Los Angeles.
(i) The nonprofit public benefit corporation shall submit its policies for issuing bonds to the California Debt Limit Allocation Committee, as defined in Section 8869.83 of the Government Code, for review and approval before the corporation receives any allocation pursuant to Section 8869.84 of the Government Code.
(j) (1) On or before January 1, 2026, the City of Los Angeles shall submit a report on the nonprofit public benefit corporation’s activities to the Legislature. The report shall include, but not be limited to, all of the following:
(A) Information included in the annual reports prepared pursuant to paragraph (2) of subdivision (g).
(B) Any investment made by the city to the nonprofit public benefit corporation and the date that the corporation paid off the investment.
(C) Information describing the terms of the bonds issued by the nonprofit public benefit corporation and how the corporation believes that those terms compare to the terms that the corporation would otherwise have received in the absence of these provisions.
(D) The policies that the nonprofit public benefit corporation submitted to the California Debt Limit Allocation Committee pursuant to subdivision (i), the date of the committee’s approval, and information on any allocations received by the corporation pursuant to Section 8869.84 of the Government Code.
(E) Changes the nonprofit public benefit corporation would recommend to the Legislature regarding this section.
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(k) The nonprofit public benefit corporation and its board members, officers, and employees are subject to all of the following, as applicable:
(1) The Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(2) The California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(3) The Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).
(l) The nonprofit public benefit corporation shall not do either of the following:
(1) Establish rules or regulations, make land use decisions, or pass resolutions on behalf of the City of Los Angeles.
(2) Regulate or enforce local land use decisions or acquire property by eminent domain.
SEC. 2.
 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need to address home financing in the City of Los Angeles.