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AB-3037 Community Redevelopment Law of 2018.(2017-2018)

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Date Published: 05/01/2018 10:00 AM
AB3037:v97#DOCUMENT

Amended  IN  Assembly  April 30, 2018
Amended  IN  Assembly  March 19, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 3037

Introduced by Assembly Members Chiu, Bloom, Holden, Irwin, Mullin, Santiago, Daly, Eduardo Garcia, and Gloria
(Coauthor: Assembly Member Ting)

February 16, 2018

An act to amend Section 53993 of, and to add Title 23 (commencing with Section 100600) to, the Government Code, and to add Section 97.82 to the Revenue and Taxation Code, relating to redevelopment.


LEGISLATIVE COUNSEL'S DIGEST


AB 3037, as amended, Chiu. Community Redevelopment Law of 2018.
(1) The California Constitution, with respect to any taxes levied on taxable property in a redevelopment project established under the Community Redevelopment Law, as it then read or may be amended, authorizes the Legislature to provide for the division of those taxes under a redevelopment plan between the taxing agencies and the redevelopment agency, as provided.
Existing law dissolved redevelopment agencies as of February 1, 2012, and designates successor agencies to act as successor entities to the dissolved redevelopment agencies.
This bill, the Community Redevelopment Law of 2018, would authorize a city or county to propose the formation of a redevelopment housing and infrastructure agency by adoption of a resolution of intention that meets specified requirements, and providing that requirements, including that the resolution of intention include a passthrough provision and an override passthrough provision, as defined. The bill would require the city or county to submit that resolution to each affected taxing entity. entity, and would authorize an entity that receives that resolution to elect to not receive a passthrough payment, as provided. The bill would require the city or county that adopted that resolution to hold a public hearing on the proposal to consider all written and oral objections to the formation, as well as any recommendations of the affected taxing entities, and would authorize that city or county to adopt a resolution of formation at the conclusion of that hearing. The bill would then authorize require that city or county to submit the resolution of formation (1) to the Strategic Growth Council for a determination as to whether the agency would promote statewide greenhouse gas reduction goals and (2) would require that the council recommend to the Department of Finance whether to approve the resolution. The bill would require the council to establish a program to provide technical assistance to a city or county desiring to form an agency pursuant to these provisions. The bill would then require that city or county to submit the resolution of formation to the Department of Finance for approval, subject to certain standards, including that the department then determine an affected tax entity equity amount for affected taxing entities that are local agencies, determine that any passthrough provision included is consistent with certain requirements and would impose a statewide cap on the amount of equity equity, as defined, received by all local agencies within the state in any fiscal year. The bill would, alternatively, authorize the local agency forming the entity to include a passthrough provision under which the agency would make payments to affected taxing entities in an amount that is equivalent to the affected taxing entity equity amount, and would not be subject to the equity provisions. year, and to consider any recommendations of the Strategic Growth Council. The bill would require the department to disapprove the resolution if the department determines that the creation of the agency will result in a state fiscal impact that exceeds a specified amount in any fiscal year. The bill would deem the agency to be in existence as of the date of the department’s approval.
The bill would provide for a governing board of the agency consisting of one member appointed by the legislative body that adopted the resolution of intention, one member appointed by each affected taxing entity, and 2 public members. The bill would authorize an agency formed pursuant to these provisions to finance specified infrastructure and housing projects, and to carry out related powers, such as the power to purchase and lease property within the redevelopment project area, that are similar to the powers previously granted to redevelopment agencies. The bill would require an agency to adopt an annual budget and to maintain detailed records of every action taken by that agency for a specified period of time, and would provide that any person who violates this requirement be subject to a fine of $10,000 per violation.
The bill would require the agency to submit an annual report, report containing specified information, and a final report of any audit undertaken by any other local, state, or federal government entity entity, to its governing body within specified time periods. The bill would also require the agency to submit a copy of the annual report with the Controller and a copy of any audit report with the Department of Housing and Community Development. The bill would establish procedures under which the Controller would identify major audit violations and the Attorney General would bring an action to compel compliance.
The bill would require the governing board of an agency to designate an appropriate official to prepare a proposed redevelopment project plan, in accordance with specified procedures. The bill would require the agency to hold a public hearing on the proposed redevelopment project plan, and would authorize the governing board to either adopt the redevelopment project plan or abandon proceedings, in which case the agency would cease to exist. The bill would authorize the redevelopment project plan to provide for the division of taxes levied upon taxable property, if any, between an affected taxing entity and the agency, as provided. The bill would declare that this authorization fulfills the intent of constitutional redevelopment provisions. The bill would also require that not less than 30% of all taxes allocated to the agency from an affected taxing entity be deposited into a separate fund, established by the agency, and used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at an affordable housing cost, as provided.
The bill would authorize the agency to issue bonds to finance redevelopment housing or infrastructure projects, in accordance with specified requirements and procedures, including that the resolution proposing the bonds include a description of the facilities or developments to be financed and the estimated cost of those facilities or developments, and that the resolution adopting the bonds provide for specified matters such as the principal amount of bonds. The bill would also authorize a city, county, or special district that contains territory within the boundaries of an agency to loan moneys to the agency to fund activities described in the redevelopment project plan. The bill would require the agency to contract for an independent financial and performance audit every 2 years after the issuance of debt.

(2)Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined.

Existing property tax law requires that, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education.

This bill would modify these reduction and transfer provisions by requiring the auditor of a county in which a qualified local agency is located to increase the total amount of ad valorem property tax revenue otherwise required to be allocated to the qualified local agency by the affected tax entity equity amount, as defined, and to commensurately reduce the total amount of ad valorem property tax revenue otherwise required to be allocated to school entities in the county, as provided. The bill would define “qualified local agency” to mean an affected tax entity that the Department of Finance determines is to receive an affected tax entity equity amount at the time of the formation of a redevelopment housing and infrastructure agency, as described above. By imposing new duties in the annual allocation of ad valorem property tax revenue, this bill would impose a state-mandated local program.

By imposing additional duties on the county auditor with respect to the allocation of tax increment revenues, and the review of information submitted to the county auditor by an agency pursuant to these provisions, this bill would impose a state-mandated local program.

(3)

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 53993 of the Government Code is amended to read:

53993.
 (a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398.75, and 62005, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided.
(b) Subdivision (a) shall not apply to either of the following:
(1) The allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.
(2) The division of taxes authorized by Section 100660.

SEC. 2.

 Title 23 (commencing with Section 100600) is added to the Government Code, to read:

TITLE 23. Community Redevelopment Law of 2018

PART 1. General Provisions

100600.
 This title shall be known, and may be cited, as the Community Redevelopment Law of 2018.

100601.
 For purposes of this title:
(a) “Affected taxing entity” means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed agency in the fiscal year before the designation of the agency district.
(b) “Affected taxing entity equity amount” means the amount of ad valorem property tax revenue that the affected taxing entity would have received from property located within the redevelopment project area in the absence of the redevelopment and housing and infrastructure agency, calculated pursuant to subdivision (d) of Section 100661

(b)

(c) “Agency” means a redevelopment housing and infrastructure agency created by this title.

(c)

(d) “County” means a county or a city and county.

(d)

(e) “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.

(e)

(f) “Designated official” means the appropriate official, such as an engineer of a city or county that is an affected taxing entity, designated pursuant to Section 100650.

(f)

(g) “Governing board” means the governing body of an agency established pursuant to this title.

(g)

(h) “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 governing board. The governing board 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 agency.

(h)

(i) “Legislative body” means the city council of the city or board of supervisors of the county.

(i)

(j) “Redevelopment project” means any undertaking of an agency pursuant to this title.

(j)

(k) “Special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries.

100602.
 (a) The Legislature declares that this title constitutes the Community Redevelopment Law within the meaning of Article XVI of Section 16 of the California Constitution, and that a redevelopment housing and infrastructure agency formed pursuant to this title shall have all powers granted to a redevelopment agency pursuant to that section.
(b) Unless the context clearly indicates otherwise, whenever the term “redevelopment agency” or “Community Redevelopment Law” appears in this code or any other code, except those laws described in the following sentence, it shall be deemed to refer to a “redevelopment housing and infrastructure agency” formed pursuant to this part or the “Community Redevelopment Law of 2018,” as applicable. The previous sentence does not apply to any of the following laws:
(1) Part 1 (commencing with Section 33300) of Division 24 of the Health and Safety Code.
(2) Part 1.7 (commencing with Section 34100) of Division 24 of the Health and Safety Code.
(3) Part 1.8 (commencing with Section 34161) of Division 24 of the Health and Safety Code.
(4) Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.
(5) Part 1.9 (commencing with Section 34192) of Division 24 of the Health and Safety Code.

PART 2. Formation of a Redeveloping Redevelopment Housing and Infrastructure Agency

100610.
 (a) The legislative body of a city or county, subject to the conditions as may apply under Section 100633, may propose to form an agency pursuant to this title by adopting a resolution of intention to establish the agency. The resolution of intention shall contain all the following:
(1) A statement that a redevelopment housing and infrastructure agency is proposed to be established in accordance with the terms of this title.
(2) A statement of the need for the proposed agency and the goals that the proposed agency seeks to achieve.
(3) A preliminary project plan prepared by the legislative body. The preliminary project plan shall, at a minimum, include the following:
(A) A description of the proposed boundaries of the project area. This may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable.
(B) A general statement of the land uses, layout of principal streets, population densities and building intensities, and standards proposed as the basis for the redevelopment of the project area.
(C) Evidence that redevelopment will achieve the purposes of this title.
(D) Evidence that the proposed redevelopment is consistent with the general plan of each applicable city or county in which the projects are proposed to be located.
(E) A general description of the impact of the project upon the area’s residents and upon the surrounding neighborhood.
(F) A description of the affordable housing or infrastructure projects that are proposed to be financed by the agency.
(4) A financing section that shall contain all of the following information:
(A) A projection of the amount of tax revenues expected to be received by the agency in each year during which the agency will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(B) A plan for financing the affordable housing or infrastructure projects to be assisted by the agency, including a detailed description of any intention to incur debt.
(C) A limit on statement of the total number of dollars of taxes that may be allocated to the agency pursuant to the plan.
(D) The date on which the agency will cease to exist, by which time all tax allocation to the agency will end. The date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 100684, or the issuance of a loan is approved by the legislative body of a city, county, or special district pursuant to Section 100689.
(E) An analysis of the costs to the city or county of providing facilities and services to the area of the agency 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 or county as a result of expected development in the area of the agency.
(F) An analysis of the projected fiscal impact of the agency and the associated development upon each affected taxing entity.

(5)The financing section may include a

(G) A passthrough provision that provides that the agency will will, except as otherwise provided in this subparagraph, pay to each affected taxing entity an amount equivalent to the affected taxing entity equity amount, as determined pursuant to Section 97.82 of the Revenue and Taxation Code, provided that the affected taxing entity does not receive an amount of ad valorem property tax revenues that is in excess of its proportionate share of property tax revenues in the tax rate area in that fiscal year. amount. A passthrough provision shall not provide payment to the city or county that proposes to form the agency, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code. All amounts calculated pursuant to this subparagraph shall be calculated after deducting the amount required to be deposited in the separate fund established pursuant to subdivision (a) of Section 100670 from the total amount of tax increment funds proposed to be received by the agency in the applicable fiscal year.
(H) An override passthrough provision that provides that the agency will pay to each affected taxing entity that imposed an override property tax on property located within the proposed redevelopment project area an amount that is equivalent to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the redevelopment housing and infrastructure agency. For purposes of this subparagraph, “imposed an override property tax” means that an ad valorem property tax was imposed on property by, on or behalf of, the affected taxing entity within the meaning of subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution. An override passthrough provision shall not provide payment to the city or county that proposes to form the agency, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
(5) A statement that the city or county adopting the resolution thereby elects to not receiving, whether by pass through or otherwise, a portion of those ad valorem property tax revenues that are in excess of the base year amount as described in paragraph (2) of subdivision (a) of Section 100660 that the city or county would have otherwise been entitled to from property in the redevelopment project area in the absence of the redevelopment housing and infrastructure agency. This statement is irrevocable unless and until the agency ceases to exist pursuant to the redevelopment project plan.
(6) A statement that a public hearing shall be held on the proposal, and a statement of the time and place of that hearing.
(b) The legislative body shall direct the city clerk or county recorder, as applicable, to mail a copy of the resolution of intention to each affected taxing entity.

100611.
 (a) The city or county that adopted the resolution of intention pursuant to Section 100610 shall consult with each affected taxing entity. Any affected taxing entity may suggest revisions to be included in the resolution of formation.
(b) Any affected taxing entity entitled to receive a passthrough may submit a written election to the Department of Finance to not receive an amount that the entity otherwise would have received under a passthrough provision described in subparagraphs (G) or (H) of paragraph (4) of subdivision (a) of Section 100610. The affected taxing entity shall include in that written election a statement that the affected taxing entity consents to not receive any amount that would have been received under a passthrough provision, and that the entity is aware that statement is irrevocable unless and until the agency ceases to exist pursuant to the redevelopment project plan.

100612.
 (a) The legislative body shall, no sooner than 60 days after the resolution of intention was provided to each affected taxing entity pursuant to subdivision (b) of Section 100610, hold a public hearing on the proposal.
(b) The legislative body shall provide notice of the public hearing by publication not less than once a week for four successive weeks in a newspaper of general circulation published in each city or county in which the proposed agency is located. The notice shall state that the agency will be used to finance affordable housing or infrastructure projects, briefly describe the proposed affordable housing or infrastructure projects, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed agency and state the day, hour, and place when and where any persons having any objections to the proposed agency or the regularity of any of the prior proceedings, may appear before the legislative body and object to the formation of the agency.
(c) At the public hearing, the legislative body shall proceed to hear and pass upon all written and oral objections to the formation of the agency. The hearing may be continued from time to time. The legislative body shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the formation of the agency.
(d) At the conclusion of the public hearing, the legislative body may adopt a resolution proposing the formation of the agency. The resolution of formation shall contain all the information described in subdivision (a) of Section 100610, and shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The legislative body shall direct the city clerk or county recorder, as applicable, to mail the resolution of formation to each affected taxing entity.

100613.
 (a) The legislative body that adopted the resolution of formation pursuant to subdivision (d) of Section 100612 shall submit that resolution to the Strategic Growth Council for review.
(b) The Strategic Growth Council shall determine whether the establishment of an agency pursuant to this title, as provided in the resolution of formation, would promote statewide greenhouse gas reduction goals and recommend to the Department of Finance, based on that determination, whether the Department of Finance should approve the resolution of formation pursuant to Section 100614. In making the determination required by this subdivision, the Strategic Growth Council shall ensure that the projects proposed in the resolution of intention equitably represent rural, suburban, and urban communities, and that establishing the agency would not result in an inequitable geographic distribution of agencies throughout the state.
(c) The Strategic Growth Council shall adopt policies and procedures for the receipt and evaluation of resolutions of formation pursuant to this section.
(d) The Strategic Growth Council shall establish a program to provide technical assistance to a city or county that desires to form a redevelopment housing and infrastructure agency. The Strategic Growth Council shall provide that technical assistance by entering into a contract with that city or county, and may include a provision in that contract to recover the reasonable cost of the council in providing the technical assistance. In providing technical assistance, the council shall encourage that the proposed agency promote statewide greenhouse gas reduction goals as described in subdivision (b).

100614.
 (a) The legislative body that adopted the resolution of formation pursuant to subdivision (d) of Section 100612 shall submit that resolution, along with all supporting documents, to the Department of Finance for approval.
(b) The Department of Finance shall have 90 days to approve or disapprove the resolution of formation. The Department of Finance shall approve the resolution if the Department of Finance finds that the plan will further the purposes of this title, and subject to the following:

(1)Except as provided in paragraph (2), the Department of Finance shall determine the affected taxing entity equity amount pursuant to Section 97.82 of the Revenue and Taxation Code for each affected taxing entity, subject to all the following requirements:

(A)In making the determinations required by this paragraph, the Department of Finance shall ensure that the total equity authorized with respect to all agencies within the state does not exceed more than ____ in any fiscal year.

(B)Equity shall not be provided to the city or county that adopted the resolution of formation pursuant to subdivision (d) of Section 100612, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.

(2)If the resolution of formation includes a passthrough provision that the Department of Finance determines meets the requirements described in paragraph (5) of subdivision (a) of Section 100610, then the Department of Finance shall provide that agency resolution with priority review, and that agency shall not be subject to paragraph (1).

(1) The Department of Finance shall determine whether the passthrough provision or the override passthrough provision meet the requirements described in subparagraph (G) or (H) of paragraph (4) of subdivision (a) of Section 100610. If the Department of Finance concludes that a passthrough provision does not meet those requirements, the department shall modify the passthrough provision in order to bring it into compliance. If the Department of Finance received a written election from an affected taxing entity to not receive a passthrough payment pursuant to Section 100611, the department shall modify the passthrough provision appropriately.

(3)

(2) The Department of Finance shall disapprove a resolution if the department determines that the creation of that agency will result in a state fiscal impact with respect to all agencies within the state that exceeds more than ___ ____ in any fiscal year. For purposes of this paragraph, “state fiscal impact” means the impact on the amount that the state is required to apportion to local educational entities, in accordance with existing requirements, with respect to all agencies within the state.

(4)

(3) The Department of Finance shall consider the recommendation of the Strategic Growth Council pursuant to Section 100613.
(c) If the Department of Finance disapproves the resolution, the department shall submit an explanation of its disapproval in writing to the legislative body and to each affected taxing entity.
(d) If the Department of Finance approves the resolution, then the agency shall be deemed to be in existence as of the date of that approval.

PART 3. Governing Board of a Redevelopment Housing and Infrastructure Agency

100620.
 (a) The governing board of the agency shall consist of the following:
(1) One member appointed by the legislative body that adopted the resolution of intention pursuant to Section 100610.
(2) One member appointed by each affected taxing entity.
(3) Two public members initially appointed by the members appointed by the board composed of the members described in paragraphs (1) and (2) appointed, and then thereafter appointed by the board as a whole. The public members shall not be an elective officer or employee of any affected taxing entity.
(b) A majority of the membership of the board constitutes a quorum for the transaction of any business, the performance of any duty, or the exercise of any power of the board. If a vacancy in the board occurs, then a majority of the remaining members of the board constitutes a quorum.

100621.
 Members of the governing board established pursuant to this chapter shall not receive compensation but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5.

100623.
 (a) Members of the governing board are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5.
(b) An agency created pursuant to this title shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).

PART 4. Redevelopment Housing and Infrastructure Agency Powers and Duties

CHAPTER  1. Agency Powers

100630.
 (a) (1) An agency may finance any of the following:
(A) 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 that constitutes affordable housing or infrastructure projects as described in subdivision (b).
(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.
(C) The costs described in Sections 100635 and 100636.
(2) Facilities financed pursuant to this title are not required to be physically located within the boundaries of the agency. However, any facilities financed outside of an agency’s boundaries shall have a tangible connection to the work of the agency, as detailed in the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650).
(3) An agency shall not finance routine maintenance, repair work, or the costs of an ongoing operation or providing services of any kind.
(b) An agency shall only finance redevelopment projects that the agency finds are appropriate or necessary in the interests of the general welfare. For purposes of this title, redevelopment projects shall only include the following housing or infrastructure projects:
(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.
(9) Brownfield restoration and other environmental mitigation.
(10) The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase. The agency may finance mixed-income housing developments, but may finance only those units in a mixed-income development that are restricted to occupancy by persons of very low, low, or moderate incomes, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for child care, after school care, and social services that are integrally linked to the tenants of the restricted units.
(11) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area. An agency may reimburse a developer of a project that is located entirely within the boundaries of that agency for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470.
(12) Projects that implement a sustainable communities strategy, when the State 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 would, if implemented, achieve the greenhouse gas emission reduction targets.
(13) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.
(c) An agency shall not finance any project that is not described in subdivision (b).
(d) The agency shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, 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.
(e) An agency may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.

100630.5.
 (a) Except as provided in subdivision (b), an agency shall not, directly or indirectly, allocate or transfer any funds received by the agency pursuant to Chapter 1 (commencing with Section 100660) of Part 6 to any city, county, or special district.
(b) Notwithstanding subdivision (a), an agency shall make any payments required by a passthrough provision that was approved by the Department of Finance at the time of the formation of the agency pursuant to paragraph (2) (1) of subdivision (b) of Section 100614, and included within the redevelopment project plan, as required by paragraph (8) of subdivision (d) of Section 100651. In making any payments required by this subdivision, the agency shall comply with the requirements of paragraph (5) subparagraphs (G) and (H) of paragraph (4) of subdivision (a) of Section 100610. An agency shall not, directly or indirectly, make passthrough payments to any affected taxing entity, including by entering into a passthrough agreement, unless that passthrough provision was approved by the Department of Finance at the time of the formation of the agency pursuant to paragraph (2) (1) of subdivision (b) of Section 100614.

100631.
 An agency may, within the area established in an approved redevelopment project plan, do either of the following:
(a) Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the agency, to be used in a redevelopment project. An agency shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the agency acquires or purchases real property.
(b) Acquire real property by eminent domain to be used in a redevelopment project. Property already devoted to a public use may be acquired by the agency through eminent domain, but the agency shall not acquire property of a public body without the consent of that public body.

100632.
 An agency may rent, maintain, manage, operate, repair, and clear real property owned by the agency within the area established in an approved redevelopment project plan for the purpose of providing affordable housing.

100633.
 A city or county that created a former redevelopment agency, as defined in Section 33003 of the Health and Safety Code shall neither initiate the creation of an agency, nor participate in the governance or financing of an agency, until each of the following has occurred:
(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.
(b) The city or county certifies to the Department of Finance and to the agency that no former redevelopment agency assets that are the subject of litigation involving the state, where the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an agency formed under this title, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate or initiate the formation of an agency under this title.
(c) The Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.
(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

100634.
 (a) An agency may include any portion of a former redevelopment project area that was previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, provided that the city or county that created the former redevelopment agency has met the requirements of Section 100633.
(b) An agency may finance only the facilities authorized in this title to the extent that the facilities are in addition to those provided in the territory of the agency before the agency was created. The additional facilities may not supplant facilities already available within that territory when the agency was created but may supplement, rehabilitate, upgrade, or make more sustainable those facilities.
(c) An agency may include areas which are not contiguous.

100635.
 It is the intent of the Legislature that the creation of an agency 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 public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency then the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650) shall contain provisions to do all of the following:
(a) If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, at any time within five years before establishment of the agency, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in the same or a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.
(b) If the dwelling units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50105 and 50106 of the Health and Safety Code.
(c) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency as a result of the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650). The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action.
(d) 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 has been full compliance with the relocation assistance requirements of this section, Section 100651, and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(e) (1) The agency shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(2) The agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency’s investment of moneys in the unit or units, including, but not limited to, an equity sharing program, that is not in conflict with another public funding source or law, and that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the agency to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code.

100636.
 Any action or proceeding to attack, review, set aside, void, or annul the creation of an agency, adoption of redevelopment project plan, including a division of taxes thereunder, shall be commenced within 30 days after the formation of the agency. Consistent with the time limitations of this section, action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

100637.
 An action to determine the validity of the issuance of bonds pursuant to this title may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 100684 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment.

100638.
 (a) An agency shall maintain detailed records of every action taken by that agency, including, but not limited to, all the following:
(1) Original copies of any agreement, memorandum of understanding, or contact entered into by the agency.
(2) A record of any payment made by the agency.
(3) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(A) The date the loan, advance, or indebtedness was incurred or entered into.
(B) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(C) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.
(D) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(b) The agency shall maintain any record described in this section for a period of 15 years after the later of the following:
(1) The date the record was originally created.
(2) The date that the agreement, memorandum of understanding, or contract expired or concluded.
(3) The date that the loan was fully paid off.
(c) Any person who violates this section is subject to a civil penalty of ten thousand dollars ($10,000) per violation. All moneys collected as penalties pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund, and, notwithstanding Section 50661 of the Health and Safety Code, those funds shall be available, upon appropriation by the Legislature, for support of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).

100639.
 (a) An agency shall adopt an annual budget containing all of the following specific information:
(1) The proposed expenditures of the agency.
(2) The proposed indebtedness to be incurred by the agency.
(3) The anticipated revenues of the agency.
(4) The work program planned by the agency with respect to projects approved for the coming year, including goals.
(5) An examination of the previous year’s achievements and a comparison of the achievements with the goals of the previous year’s work program.
(b) An agency may amend the annual budget from time to time. All expenditures and indebtedness of the agency shall be in conformity with the adopted or amended budget.

CHAPTER  2. Reporting Requirement

100640.
 (a) An agency shall submit an annual report to its governing board within six months of the end of the agency’s fiscal year. The agency shall also submit the final report of any audit undertaken by any other local, state, or federal government entity to its governing board within 30 days of receipt of that audit report.
(b) The annual report required by subdivision (a) shall contain all of the following:
(1) (A) An independent financial audit report for the previous fiscal year. For purposes of this section, “audit report” means an examination of, and opinion on, the financial statements of the agency which present the results of the operations and financial position of the agency, including all financial activities with moneys required to be held in a separate fund established pursuant to subdivision (a) of Section 100670. This audit shall be conducted by a certified public accountant or public accountant, licensed by the State of California, in accordance with Government Auditing Standards adopted by the Comptroller General of the United States. The audit report shall meet, at a minimum, the audit guidelines prescribed by the Controller’s office pursuant to Section 100642, and also include a report on the agency’s compliance with laws, regulations, and administrative requirements governing activities of the agency, and a calculation of the excess surplus, as that term is defined in subdivision (g) of Section 100674, in the separate fund established pursuant to subdivision (a) of Section 100670.
(B) However, the governing board may elect to omit from inclusion in the audit report prepared pursuant to subparagraph (A) any distinct activity of the agency that is funded exclusively by the federal government and that is subject to audit by the federal government.
(2) A fiscal statement for the previous fiscal year that contains the information required pursuant to Section 100644.
(3) A description of the agency’s activities in the previous fiscal year affecting housing and displacement that contains the information required by Section 100643.
(4) A description of the agency’s progress, including specific actions and expenditures, in accomplishing the agency’s purpose in the previous fiscal year.
(5) A list of, and status report on, all loans made by the agency that are fifty thousand dollars ($50,000) or more, that in the previous fiscal year were in default, or not in compliance with the terms of the loan approved by the agency.
(6) A description of the total number and nature of the properties that the agency owns and those properties the agency has acquired in the previous fiscal year.
(7) A list of the fiscal years that the agency expects each of the following time limits to expire:
(A) The time limit for the commencement for eminent domain proceedings to acquire property within the project area.
(B) The time limit for the establishment of loans, advances, and indebtedness to finance the redevelopment project.
(C) The time limit for the effectiveness of the redevelopment plan.
(D) The time limit to repay indebtedness with the proceeds of property taxes.
(8) Any other information that the agency believes useful to explain its programs, including, but not limited to, the number of jobs created and lost in the previous fiscal year as a result of its activities.
(c) (1) The agency shall file with the Controller within six months of the end of the agency’s fiscal year a copy of the annual report required by subdivision (a). In addition, the agency shall file with the Department of Housing and Community Development a copy of an audit report as required by subdivision (a). The reports shall be made in the time, format, and manner prescribed by the Controller after consultation with the Department of Housing and Community Development.
(2) The agency shall provide a copy of the annual report required by subdivision (a), upon the written request of any person or any affected taxing entity. If the report does not include detailed information regarding administrative costs, professional services, or other expenditures, the person or affected taxing entity may request, and the agency shall provide, that information. The person or affected taxing entity shall reimburse the agency for all actual and reasonable costs incurred in connection with the provision of the requested information.

100641.
 (a) When the agency presents the annual report to the governing board pursuant to Section 100640, the agency shall inform the governing board of any major audit violations of this title based on the independent financial audit report. The agency shall inform the governing board that the failure to correct a major audit violation of this part may result in the filing of an action by the Attorney General pursuant to Section 100646.
(b) The governing board shall review any report submitted pursuant to Section 100640 and take any action it deems appropriate on that report no later than the first meeting of the governing board occurring more than 21 days from the receipt of the report.

100642.
 The Controller shall develop and periodically revise the guidelines for the content of the report required by Section 100640. The Controller shall appoint an advisory committee to advise in the development of the guidelines. The advisory committee shall include representatives from among those persons nominated by the Department of Housing and Community Development, the Legislative Analyst, the California Society of Certified Public Accountants, and any other authorities in the field that the Controller deems necessary and appropriate.

100643.
 (a) For the purposes of compliance with paragraph (3) of subdivision (b) of Section 100640, the description of the agency’s activities shall contain the following information, regardless of whether each activity is funded exclusively by the state or federal government, for each project area and for the agency overall:
(1) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that were displaced or moved from their dwelling units as part of a redevelopment project of the agency during the previous fiscal year.
(2) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that the agency estimates will be displaced or will move from their dwellings as part of a redevelopment project of the agency during the present fiscal year and the date of adoption of a replacement housing portion of the redevelopment project plan required by Section 100635.
(3) The total number of dwelling units housing very low income households, other lower income households, and persons and families of moderate income, respectively, which have been destroyed or removed from the low- or moderate-income housing market during the previous fiscal year as part of a redevelopment project of the agency, specifying the number of those units that are not subject to the replacement requirements of Section 100635.
(4) The total numbers of agency-assisted dwelling units which were constructed, rehabilitated, acquired, or subsidized during the previous fiscal year for occupancy at an affordable housing cost by elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, specifying those units that are not currently so occupied, those units which have replaced units destroyed or removed pursuant to Section 100635, and the length of time any agency-assisted units are required to remain available at affordable costs.
(5) The total numbers of new or rehabilitated units subject to Section 100635, including separate subtotals of the number originally affordable to and currently occupied by, elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, and the length of time these units are required to remain available at affordable costs.
(6) The status and use of the separate fund established pursuant to subdivision (a) of Section 100670, including information on the use of this fund for very low income households, other lower income households, and persons and families of moderate income, respectively. If the separate fund is used to subsidize the cost of onsite or offsite improvements, then the description of the agency’s activities shall include the number of housing units affordable to persons and families of low or moderate income which have been directly benefited by the onsite or offsite improvements.
(7) The amount of excess surplus, as defined in Section 100673.5, that has accumulated in the agency’s separate fund established pursuant to subdivision (a) of Section 100670. Of the total excess surplus, the description shall also identify the amount that has accrued to the separate fund during each fiscal year. This component of the annual report shall also include any plan required to be reported by subdivision (c) of Section 100673.5.
(8) The total amount of funds expended for planning and general administrative costs.
(9) Any other information which the agency believes useful to explain its housing programs, including, but not limited to, housing for persons and families of other than low and moderate income.
(10) The total number of dwelling units for very low income households, other lower income households, and persons and families of moderate income to be constructed under the terms of an executed agreement or contract and the name and execution date of the agreement or contract. These units may only be reported for a period of two years from the execution date of the agreement or contract.
(11) The date and amount of all deposits and withdrawals of moneys deposited to and withdrawn from the separate fund established pursuant to subdivision (a) of Section 100670.
(b) As used in this section:
(1) “Elderly,” has the same meaning as specified in Section 50067 of the Health and Safety Code.
(2) “Persons and families of moderate income,” has the same meaning as specified in subdivision (b) of Section 50093 of the Health and Safety Code.
(3) “Other lower income households,” has the same meaning as “lower income households” as specified in Section 50079.5 of the Health and Safety Code, exclusive of very low income households.
(4) “Persons and families of low or moderate income,” has the same meaning as specified in Section 50093 of the Health and Safety Code.
(5) “Very low income households,” has the same meaning as specified in Section 50105 of the Health and Safety Code.
(c) Notwithstanding any other law, costs associated with preparing the report required by this section may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670.

100644.
 For the purposes of compliance with paragraph (2) of subdivision (b) of Section 100640, the fiscal statement shall contain the following information:
(a) The amount of outstanding indebtedness of the agency and each project area.
(b) The amount of tax increment property tax revenues generated in the agency and in each project area.
(c) The financial transactions report required pursuant to Section 53891.
(d) The amount of outstanding debt and the total amount of payments required to be paid on that debt for that fiscal year.
(e) The amount owed under any passthrough provision that was approved at the time of the creation of the agency, and calculated pursuant to subdivision (d) or (e) of Section 100661.

(e)

(f) Any other fiscal information which the agency believes useful to describe its programs.

100645.
 (a) On or before May 1 of each year, the Department of Housing and Community Development shall compile and publish reports of the activities of each agency for the previous fiscal year, based on the information reported pursuant to paragraph (3) of subdivision (b) of Section 100640 and reporting the types of findings made by agencies pursuant to subdivision (a) of Section 100670, including the date of the findings. The department shall publish this information for each redevelopment project of each agency. These reports may also contain the biennial review of relocation assistance required by Section 50460 of the Health and Safety Code. The report shall contain a list of those project areas that are not subject to the requirements of Section 100635.
(b) The department shall send a copy of the executive summary of its report to each agency for which information was reported pursuant to Section 100640 for the fiscal year covered by the report. The department shall send a copy of its report to each agency that requests a copy.

100646.
 (a) On or before April 1 of each year, the Controller shall compile a list of agencies that appear to have major audit violations as defined in this section, based on the independent financial audit reports filed with the Controller pursuant to Section 100640.
(b) On or before June 1 of each year, for each major audit violation of each agency identified pursuant to subdivision (a), the Controller shall determine if the agency has corrected the major audit violation. Before making this determination, the Controller shall consult with each affected agency that is the subject of the report. In making this determination, the Controller may request and shall receive the prompt assistance of public officials and public agencies, including, but not limited to, the affected agency subject to the report, counties, and cities. If the Controller determines that an agency has not corrected the major audit violation, the Controller shall send a list of that agency, its major violations, all relevant documents, and the affidavits required pursuant to subdivision (d) to the Attorney General for action pursuant to this section.
(c) For each agency that the Controller refers to the Attorney General pursuant to subdivision (b), the Controller shall notify the agency and the governing board that the agency was on the list sent to the Attorney General. The Controller’s notice shall inform the agency and the governing board of the duties imposed by Section 100641.
(d) Within 45 days of receiving the referral from the Controller pursuant to subdivision (b), the Attorney General shall determine whether to file an action to compel the agency’s compliance with this title. Any action filed pursuant to this section shall be commenced in the County of Sacramento. The time limit for the Attorney General to make this determination is directory and not mandatory. Any action shall be accompanied by an affidavit or affidavits, to be provided by the Controller with the referral, setting forth facts that demonstrate a likelihood of success on the merits of the claim that the agency has a major audit violation. The affidavit shall also certify that the agency and the governing board were informed not less than 10 days before the date on which the action was filed. The agency shall file a response to any action filed by the Attorney General pursuant to this section within 15 days of service.
(e) (1) On the earliest day that the business of the court will permit, but not later than 45 days after the filing of an action pursuant to this section, the court shall conduct a hearing to determine if good cause exists for believing that the agency has a major audit violation and has not corrected that violation.
(2) If the court determines that no good cause exists or that the agency had a major audit violation but corrected the major audit violation, the court shall dismiss the action.
(3) If the court determines that there is good cause for believing that the agency has a major audit violation and has not corrected that major audit violation, the court shall immediately issue an order that prohibits the agency from doing any of the following:
(A) Encumbering any funds or expending any money derived from any source except to pay the obligations designated in paragraph (1) of subdivision (e) of Section 100674.
(B) Adopting a redevelopment project plan.
(C) Amending a redevelopment project plan, except to correct the major audit violation that is the subject of the action.
(D) Issuing, selling, offering for sale, or delivering any bonds or any other evidence of indebtedness.
(E) Incurring any indebtedness.
(f) In a case that is subject to paragraph (3) of subdivision (e), the court shall also set a hearing on the matter within 60 days.
(g) If, on the basis of that subsequent hearing, the court determines that the agency has a major audit violation and has not corrected that violation, the court shall order the agency to comply with this part within 30 days, and order the agency to forfeit to the state no more than:
(1) Two thousand dollars ($2,000) in the case of an agency with a total revenue, in the prior year, of less than one hundred thousand dollars ($100,000) as reported in the Controller’s annual financial reports.
(2) Five thousand dollars ($5,000) in the case of an agency with a total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.
(3) Ten thousand dollars ($10,000) in the case of an agency with a total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.
(h) The order issued by the court pursuant to paragraph (3) of subdivision (e) shall continue in effect until the court determines that the agency has corrected the major audit violation. If the court determines that the agency has corrected the major audit violation, the court may dissolve its order issued pursuant to paragraph (3) of subdivision (e) at any time.
(i) An action filed pursuant to this section to compel an agency to comply with this part is in addition to any other remedy, and is not an exclusive means to compel compliance.
(j) As used in this section, “major audit violation” means that, for the fiscal year in question, an agency did not:
(1) File an independent financial audit report that substantially conforms with the requirements of paragraph (1) of subdivision (b) of Section 100640.
(2) File a fiscal statement that includes substantially all of the information required by Section 100644.
(3) Deposit all required tax increment revenues directly into the separate fund established pursuant to subdivision (a) of Section 100670 upon receipt, as required under Chapter 2 (commencing with Section 100670) of Part 6.
(4) Establish a separate fund as required by subdivision (a) of Section 100670.
(5) Accrue interest earned by the separate fund established pursuant to subdivision (a) of Section 100670 to that fund, as required by subdivision (b) of Section 100670.
(6) Determine that the planning and administrative costs charged to the separate fund established pursuant to subdivision (a) Section 100670 are necessary for the production, improvement, or preservation of low- and moderate-income housing, as required by subdivision (d) of Section 100670.5.
(7) Initiate development of housing on real property acquired using moneys from the separate fund established pursuant to subdivision (a) of Section 100670 or sell the property, as required by Section 100676.

PART 5. Preparation of Redevelopment Project Plans

100650.
 (a) After the agency is formed, the governing board of the agency shall designate an appropriate official, such as an engineer of a city or county that is an affected taxing entity, to prepare a redevelopment project plan pursuant to Section 100651.
(b) In the case of an agency proposed for port or harbor infrastructure, the governing board shall designate and direct the harbor agency, except as provided in Section 1719 of the Harbors and Navigation Code, to prepare a redevelopment project plan pursuant to Section 100651.

100651.
 The official designated pursuant to Section 100650 shall prepare a proposed redevelopment project plan. The redevelopment project plan shall be consistent with the general plan of each city or county within the agency’s boundaries, or, if the proposed project is located outside those boundaries, with the general plan of the city or county that the project is located. The plan shall include all of the following:
(a) A map and legal description of the proposed agency, which may include all or a portion of the agency designated in the resolution of formation.
(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the agency, 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 agency, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.
(c) If tax increment funding is incorporated into the financing plan, a finding that the development and financial assistance further the purposes of this title and are for redevelopment purposes.
(d) A financing section that shall contain all of the following information:
(1) A projection of the amount of tax increment revenues expected to be received by the agency in each year during which the agency will receive tax increment revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(2) A plan for financing the public facilities to be assisted by the agency, including a detailed description of any intention to incur debt.
(3) A limit on statement of the total number of dollars of taxes that may be allocated to the agency pursuant to the plan.
(4) A date on which the agency will cease to exist, by which time all tax allocation to the agency will end. The date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 100684, or the issuance of a loan is approved by the legislative body of a city, county, or special district pursuant to Section 100689.
(5) An analysis of the costs to the city or county of providing facilities and services to the area of the agency 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 or county as a result of expected development in the area of the agency.
(6) An analysis of the projected fiscal impact of the agency and the associated development upon each affected taxing entity.
(7) 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 agency and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.
(8) If the agency had included a passthrough provision in the resolution of formation that was approved by the Department of Finance pursuant to paragraph (2) of subdivision (b) of Section 100614, a A passthrough provision that is consistent with the passthrough provision approved by the Department of Finance, and with the requirements of paragraph (5) subparagraph (G) of paragraph (4) of subdivision (a) of Section 100610.
(9) An override passthrough provision that is consistent with the override passthrough provision approved by the Department of Finance, and with the requirements of subparagraph (H) of paragraph (4) of subdivision (a) of Section 100610.
(e) A housing program that describes how the agency will comply with Chapter 2 (commencing with Section 100670) of Part 6. The program shall include the following information:
(1) The amount available in the separate fund established pursuant to subdivision (a) of Section 100670 and the estimated amounts that will be deposited in the fund during each of the next five years.
(2) Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the fund during each of the five years.
(3) Estimates of the number of units, if any, developed by the agency for very low, low-, and moderate-income households during the next five years.
(f) Those components required to be included pursuant to Section 100671.5.
(g) The goals the agency proposes to achieve for each project financed pursuant to Section 100630.
(h) When preparing the plan, the designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

100652.
 The designated official shall mail the redevelopment project plan to each owner of land within the agency’s boundaries and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the governing board.

100653.
 (a) The agency shall, no sooner than 60 days after the redevelopment project plan was submitted to each affected taxing entity pursuant to Section 100652, hold a public hearing on the proposal.
(b) The agency body shall provide notice of the public hearing by publication not less than once a week for four successive weeks in a newspaper of general circulation published in each city or county in which the agency is located. The notice shall briefly describe the proposed affordable housing or infrastructure projects, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, and state the day, hour, and place when and where any persons having any objections to the proposed agency or the regularity of any of the prior proceedings, may appear before the governing board and object to the proposed redevelopment project plan.
(c) At the public hearing, the governing board shall proceed to hear and pass upon all written and oral objections to the proposed redevelopment project plan. The hearing may be continued from time to time. The governing board shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the proposed redevelopment project plan. The governing board may modify the plan by eliminating or reducing the size and cost of the proposed facilities or development or by reducing the amount of proposed debt or by making other necessary changes.

100654.
 (a) At the conclusion of the hearing pursuant to Section 100653, the governing board may adopt a resolution proposing the adoption of the redevelopment project plan, as modified, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the agency shall cease to exist by operation of this section with no further action required of the legislative body that initially proposed to form the agency and the governing board may not enact a resolution of intention to adopt a plan that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.
(b) The redevelopment project plan shall take effect upon the adoption of the resolution. The redevelopment project plan shall specify if the agency shall be funded solely through the agency’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the agency shall not issue bonds or levy assessments or fees that may be included in the redevelopment project plan before one or more of the following:
(1) Approval pursuant to Section 100673, if applicable, to issue bonds to finance the redevelopment project plan.
(2) Compliance with the procedures required in subdivision (e) of Section 100660, to levy assessments or fees to finance the redevelopment project plan.
(c) In addition, the agency may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the formation of the agency on planning and dissemination of information to the residents within the agency’s boundaries about the redevelopment project plan and planned activities to be funded by the agency.

PART 6. Division of Taxes

CHAPTER  1. General Provisions

100660.
 (a) Any redevelopment project plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the agency each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance approving the redevelopment project plan, shall be divided as follows:
(1) That portion of the taxes that 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 agency 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 formation of the agency, 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. For the purpose of allocating taxes levied by or for any affected taxing entity or entities that did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after that effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date.
(2) That portion of the levied taxes each year in excess of the amount specified in paragraph (1) shall be allocated to and when collected shall be paid into a special fund of the agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the agency to finance or refinance, in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the affected taxing entities. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the affected taxing entities as taxes on all other property are paid. When the agency ceases to exist pursuant to the adopted redevelopment project plan, all moneys thereafter received from taxes upon the taxable property in the agency shall be paid to the respective affected taxing entities as taxes on all other property are paid.
(3) That portion of the taxes in excess of the amount identified in paragraph (1) which are attributable to a tax rate levied by an affected taxing entity for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that affected taxing entity. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the affected taxing entity on or after January 1, 1989.
(b) Notwithstanding subdivision (a), where an agency’s boundaries overlap with the boundaries of any former redevelopment project area that is subject to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code, any debt or obligation of the agency shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this part, the division of taxes allocated to the agency pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
(c) (1) The legislative body of the city or county forming the agency may choose to dedicate any portion of its net available revenue to the agency through the redevelopment project plan.
(2) For the purposes of this subdivision, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund before distribution.
(d) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the redevelopment project plan adopted pursuant to Part 5 (Commencing with Section 100650), and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the agency for redevelopment purposes.
(2) When the agency ceases to exist pursuant to the adopted redevelopment project plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
(e) This section shall not be construed to prevent an agency from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the redevelopment project plan has been approved:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.

100661.
 (a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 100660 shall be allocated and paid to the agency by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.
(b) Not later than October 1 of each year, for each redevelopment project for which the redevelopment project plan provides for the division of taxes pursuant to Section 100660, the agency shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness and indebtedness consistent with subdivision (c), a reconciliation statement statement consistent with subdivision (d), and a passthrough statement consistent with subdivision (e). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the agency.
(c) (1) For each redevelopment project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:
(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(i) The date the loan, advance, or indebtedness was incurred or entered into.
(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.
(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(B) The sum of the amounts determined under clause (iii) of subparagraph (A).
(C) The sum of the amounts determined under clause (iv) of subparagraph (A).
(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).
(2) The agency may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The agency may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.
(d) For each redevelopment project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:
(1) A list of all loans, advances, and indebtedness listed on the previous year’s statement of indebtedness.
(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the agency pursuant to Section 100650. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing.
(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:
(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.
(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.
(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the agency pursuant to Section 100660.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the agency pursuant to Section 100660.
(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.
(4) The available revenues of the agency as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the agency in the previous fiscal year pursuant to Section 100660.
(6) The amount of available revenue received by the agency in the previous fiscal year from any source other than pursuant to Section 100660.
(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).
(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).
(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).
(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.
(e) An agency shall prepare a passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660.
(2) For each affected taxing entity that is entitled to a passthrough, the agency shall subtract from the amount described in paragraph (1) the proportional amount that the affected taxing entity would have received from property located in the redevelopment project area. However, in no instance shall the amount calculated under this paragraph result in the affected taxing entity receiving an amount of ad valorem property tax revenue that is greater or lesser than the amount of ad valorem tax revenue received by the agency that is attributable to that affected taxing entity.
(3) A statement of the total amount of passthrough payments that the agency is required to make as calculated pursuant to paragraph (2).
(f) For each agency in which an override passthrough provision was approved by the Department of Finance at the time of creation of that agency, the agency shall prepare an override passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660.
(2) For each affected taxing entity that imposed an override property tax with respect to property located with the redevelopment project area, the agency shall subtract from the amount described in paragraph (1) the amount that is equivalent to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the redevelopment housing and infrastructure agency. The agency shall include in the override passthrough statement a description of the applicable override property tax that was imposed, the purpose it was imposed for, and the entity that is entitled to receive revenue under that override property tax.
(3) A statement of the total amount of passthrough payments that the agency is required to make as calculated pursuant to paragraph (2).

(e)

(g) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the agency that were received by the agency pursuant to Section 100660 and all cash or cash equivalents held by the agency that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the agency has listed on a statement of indebtedness. However, available revenue, for purposes of this section, shall not include the amount of any payment that the agency is required to make under a passthrough provision as described in the passthrough statements prepared pursuant to subdivision (e) and (f).

(f)

(h) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, allocate and pay the portion of taxes provided by paragraph (2) of subdivision (a) of Section 100660 to each agency. The amount allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) plus the amount owed under any passthrough provision under subdivision (d) or (e), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).

(g)

(i) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the agency.
(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the agency thereof.
(B) The agency shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the agency, and the amount disputed may be withheld from allocation and payment to the agency as otherwise required by subdivision (g). (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.
(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (f). (h).

(h)

(j) This section does not permit a challenge to or attack on matters precluded from challenge or attack by reason of Section 100636 or 100637. However, this section does not deny a remedy against the agency otherwise provided by law.

(i)

(k) The Controller shall prescribe a uniform form of for a statement of indebtedness and reconciliation statement. indebtedness, reconciliation, passthrough, and override passthrough. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors, redevelopment agencies, and organizations of county auditors and redevelopment agencies.

(j)

(l) For the purposes of this section, a fiscal year shall be a year that begins on July 1 and ends the following June 30.

100662.
 (a) Section 100660 fulfills the intent of Section 16 of Article XVI of the California Constitution. To further carry out the intent of Section 16 of Article XVI of the Constitution, whenever that provision requires the allocation of money between agencies such allocation shall be consistent with the intent of the people when they approved Section 16 of Article XVI of the California Constitution. Whenever money is allocated between agencies by means of a comparison of assessed values for different years, that comparison shall be based on the same assessment ratio. When there are different assessment ratios for the years compared, the assessed value shall be changed so that it is based on the same assessment ratio for the years so compared.
(b) As used in this part, the word “taxes” shall include, but without limitation, all levies on an ad valorem basis upon land or real property. However, “taxes” shall not include amounts of money deposited in a Sales and Use Tax Compensation Fund pursuant to Section 97.68 of the Revenue and Taxation Code or a Vehicle License Fee Property Tax Compensation Fund pursuant to Section 97.70 of the Revenue and Taxation Code.

100663.
 (a) This section implements and fulfills the intent of this article and of Article XIII B and Section 16 of Article XVI of the California Constitution. The allocation and payment to an agency of the portion of taxes specified in paragraph (2) of subdivision (a) of Section 100660 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for redevelopment activity, as defined in subdivision (b) of this section, shall not be deemed the receipt by an agency of proceeds of taxes levied by or on behalf of the agency within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B. The allocation and payment to an agency of this portion of taxes shall not be deemed the appropriation by a agency of proceeds of taxes levied by or on behalf of a agency within the meaning or for purposes of Article XIII B of the California Constitution.
(b) As used in this section, “redevelopment activity” means redevelopment meeting all the following criteria:
(1) Is redevelopment as prescribed in Section 100630.
(2) Primarily benefits the project area.
(3) None of the funds are used for the purpose of paying for employee or contractual services of any local governmental agency unless these services are directly related to a redevelopment project, as described in subdivision (b) of Section 100630.
(c) Should any law hereafter enacted, without a vote of the electorate, confer taxing power upon an agency, the exercise of that power by the agency in any fiscal year shall be deemed a transfer of financial responsibility from the community to the agency for that fiscal year within the meaning of subdivision (a) of Section 3 of Article XIII B of the California Constitution.

100664.
 An agency that is allocated a portion of taxes pursuant to paragraph (2) of subdivision (a) of Section 100660 and subdivision (h) of Section 100661 in a fiscal year shall distribute those taxes according to the following schedule:
(a) First, to satisfy any passthrough provisions described in subparagraph (G) or (H) of paragraph (4) of subdivision (a) Section 100610 that was approved at the time of the formation of the agency, and calculated pursuant to subdivision (d) or (e) of Section 100661.
(b) Second, 30 percent of the amount remaining after making the allocations pursuant to subdivision (a) shall be deposited into the separate fund established pursuant to Section 100670.
(c) Third, any amount remaining shall be available to the agency for any valid redevelopment purpose.

CHAPTER  2. Housing for Persons of Low and Moderate Income

100670.
 (a) Not less than 30 percent of all taxes that are allocated to the agency from any affected taxing entity pursuant to Section 100660 shall be deposited into a separate fund, which the agency shall establish pursuant to Section 100670.5, and the agency shall use all moneys in that fund for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost, as defined by the following sections of the Health and Safety Code: Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families unless the agency makes a finding that combining funding received under this program with other funding for the same purpose shall reduce administrative costs or expedite the construction of affordable housing. If the agency makes the finding described in the previous sentence, then (1) an agency may transfer funding from the program adopted pursuant to subdivision (e) of Section 100651 to the housing authority within the territorial jurisdiction of the local jurisdiction that created the agency or to the entity that received the housing assets of the former redevelopment agency pursuant to Section 34176 of the Health and Safety Code or to a private nonprofit housing developer, and (2) Section 34176.1 of the Health and Safety Code shall not apply to funds transferred. The agency shall spend all funds described in this subdivision within the plan area in which the funds were generated. Any person who receives funds transferred pursuant to this subdivision shall comply with all applicable provisions of this part.
(b) In carrying out the purposes of this section, the agency may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low- and moderate-income persons or families, including the following:
(1) (A) Improve real property or building sites with onsite or offsite improvements, but only if both of the following are met:
(i) The improvements are part of the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited by the improvements, and are a reasonable and fundamental component of the housing units.
(ii) The agency requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 100670.5.
(B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the agency shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the agency shall be determined by dividing the number of housing units that are affordable to low- or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project.
(2) Donate real property to private or public persons or entities.
(3) Finance insurance premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are administered by governmental entities or nonprofit organizations to provide housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, including rental properties, emergency shelters, transitional housing, or special residential care facilities.
(4) Construct buildings or structures.
(5) Acquire buildings or structures.
(6) Rehabilitate buildings or structures.
(7) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106 of the Health and Safety Code, very low income households, as defined by Section 50105 of the Health and Safety Code, lower income households, as defined by Section 50079.5 of the Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies.
(8) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges.
(9) Maintain the community’s supply of mobilehomes.
(10) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates.
(c) The agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 100635. However, this section shall not be construed as limiting in any way the requirements of that section.
(d) The agency shall use these funds inside the plan area.
(e) The Legislature finds and declares that expenditures or obligations incurred by the agency pursuant to this section shall constitute an indebtedness of the plan area.
(f) (1) (A) An action to compel compliance with the requirement of this section to deposit not less than 25 percent of all taxes that are allocated to the agency pursuant to Section 100660 in the separate fund established pursuant to subdivision (a) shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in that separate fund.
(B) An action to compel compliance with the requirement of this section that money deposited in the separate fund established pursuant to subdivision (a) be used by the agency for purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds.
(C) An agency found to have deposited less into the separate fund established pursuant to subdivision (a) than mandated by Section 100670.5 or to have spent money from that fund for purposes other than increasing, improving, and preserving the community’s supply of low- and moderate-income housing, as mandated by this section, shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 or may do either of the following:
(i) Petition the court under Section 970.6 for repayment in installments.
(ii) Repay the portion of the judgment due to the separate fund in equal installments over a period of five years following the judgment.
(2) Repayment shall not be made from the funds required to be set aside or used for low- and moderate-income housing pursuant to this section.
(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney’s fees if included in the judgment, are due and shall be paid upon entry of judgment or order.
(4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section.
(5) This subdivision applies to actions filed on and after January 1, 2019.
(6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

100670.5.
 (a) The funds that are required by Section 100670 or 100671.5 to be used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing shall be held in a separate fund, established pursuant to subdivision (a) of Section 100670, until used.
(b) Any interest earned by the separate fund and any repayments or other income to the agency for loans, advances, or grants, of any kind from that fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the separate fund.
(c) The moneys in the separate fund established pursuant to subdivision (a) of Section 100670 shall be used to increase, improve, and preserve the supply of low- and moderate-income housing within the territorial jurisdiction of the agency.
(d) It is the intent of the Legislature that the separate fund established pursuant to subdivision (a) of Section 100670 be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The agency shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low- and moderate-income housing.
(e) (1) Planning and general administrative costs that may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 are those expenses incurred by the agency that are directly related to the programs and activities authorized under subdivision (e) of Section 100670 and are limited to the following:
(A) Costs incurred for salaries, wages, and related costs of the agency’s staff or for services provided through interagency agreements, and agreements with contractors, including usual indirect costs related thereto.
(B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project.
(2) Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project that are authorized under subdivision (e) of Section 100670 and that are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are instead project costs.
(f) (1) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670. Except to the extent that a longer period of time may be required by other provisions of law, the agency shall require that housing units subject to this subdivision shall 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 the following periods of time:
(A) Fifty-five years for rental units. However, the agency may replace rental units with equally affordable and comparable rental units in another location within the community if both of the following are met:
(i) The replacement units are available for occupancy before the displacement of any persons and families of low or moderate income residing in the units to be replaced.
(ii) The comparable replacement units are not developed with moneys from the separate fund.
(B) Forty-five years for owner-occupied units. However, the agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency’s investment of moneys from the separate fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency and deposited in the separate fund. Only the units originally assisted by the agency shall be counted towards the agency’s obligations under Section 100671.
(C) Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low-income households. However, the agency may permit sales of mutual self-help housing units before expiration of the 15-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that (i) protects the agency’s investment of moneys from the separate fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy, and (ii) ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15-year period and before 45 years after the date of recording of the covenants or restrictions required pursuant to paragraph (2), the agency recovers, at a minimum, its original principal from the separate fund from the proceeds of the sale and deposits those funds into that fund. The remainder of the excess proceeds of the sale not retained by the seller shall be allocated to the agency and deposited in the separate fund. For the purposes of this subparagraph, “mutual self-help housing unit” means an owner-occupied housing unit for which persons and families of very low and low income contribute no fewer than 500 hours of their own labor in individual or group efforts to provide a decent, safe, and sanitary ownership housing unit for themselves, their families, and others authorized to occupy that unit. This subparagraph does not preclude the agency and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions.
(2) If land on which those dwelling units are located is deleted from the plan area, the agency shall continue to require that those units remain affordable as specified in this subdivision.
(3) The agency shall require the recording in the office of the county recorder of the following documents:
(A) The covenants or restrictions implementing this subdivision for each parcel or unit of real property subject to this subdivision. The agency shall obtain and maintain a copy of the recorded covenants or restrictions for not less than the life of the covenant or restriction.
(B) For all new or substantially rehabilitated units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670, a separate document called “Notice of Affordability Restrictions on Transfer of Property,” set forth in 14-point type or larger. This document shall contain all of the following information:
(i) A recitation of the affordability covenants or restrictions. The document recorded under this subparagraph shall be recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the concurrently recorded document.
(ii) The date the covenants or restrictions expire.
(iii) The street address of the property, including, if applicable, the unit number, unless the property is used to confidentially house victims of domestic violence.
(iv) The assessor’s parcel number for the property.
(v) The legal description of the property.
(4) The agency shall require the recording of the document required under subparagraph (B) of paragraph (3) not more than 30 days after the date of recordation of the covenants or restrictions required under subparagraph (A) of paragraph (3).
(5) The county recorder shall index the documents required to be recorded under paragraph (3) by the agency and current owner.
(6) Notwithstanding Section 27383, a county recorder may charge all authorized recording fees to any party, including a public agency, for recording the document specified in subparagraph (B) of paragraph (3).
(7) Notwithstanding any other law, the covenants or restrictions implementing this subdivision shall run with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(A) The agency.
(B) Any affected taxing entity.
(C) A resident of a unit subject to this subdivision.
(D) A residents’ association with members who reside in units subject to this subdivision.
(E) A former resident of a unit subject to this subdivision who last resided in that unit.
(F) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this subdivision, if the applicant conforms to all of the following:
(i) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(ii) Is able and willing to occupy that particular unit.
(iii) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this subdivision.
(G) A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this subdivision.
(8) A dwelling unit shall not be counted as satisfying the affordable housing requirements of this title, unless covenants for that dwelling unit are recorded in compliance with subparagraph (A) of paragraph (3).
(9) Failure to comply with the requirements of subparagraph (B) of paragraph (3) shall not invalidate any covenants or restrictions recorded pursuant to subparagraph (A) of paragraph (3).
(g) “Housing,” as used in this section, includes residential hotels, as defined in subdivision (k) of Section 37912 of the Health and Safety Code. The definitions of “lower income households,” “very low income households,” and “extremely low income households” in Sections 50079.5, 50105, and 50106 of the Health and Safety Code shall apply to this section. “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration.
(h) “Increasing, improving, and preserving the community’s supply of low- and moderate-income housing,” as used in this section and in Section 100670, includes the preservation of rental housing units assisted by federal, state, or local government on the condition that units remain affordable to, and occupied by, low- and moderate-income households, including extremely low and very low income households, for the longest feasible time, but not less than 55 years, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the agency shall require that the units remain affordable to, and occupied by, persons and families of low- and moderate-income and extremely low and very low income households for the longest feasible time, but not less than 55 years.
(i) Funds from the separate fund established pursuant to subdivision (a) of Section 100670 shall not be used to the extent that other reasonable means of private or commercial financing of the new or substantially rehabilitated units at the same level of affordability and quantity are reasonably available to the agency or to the owner of the units. Before the expenditure of funds from the separate fund for new or substantially rehabilitated housing units, where those funds will exceed 50 percent of the cost of producing the units, the agency shall find, based on substantial evidence, that the use of the funds is necessary because the agency or owner of the units has made a good faith attempt but has been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity.

100671.
 (a) Except as specified in subdivision (d), each agency shall expend over each 10-year period of the redevelopment project plan the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed that each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584. In determining compliance with this obligation, the agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law.
(b) Each agency shall expend over the duration of each plan, the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under 65 years of age bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau.
(c) An agency that has deposited in the separate fund established pursuant to subdivision (a) of Section 100670 over the first five years of the period of a plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section.
(d) For the purposes of this section, “locally controlled” means government assistance if the city or county that proposed formation of the agency pursuant to Section 100610 or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, the Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, the Home Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges.

100671.5.
 Every redevelopment project plan shall contain both of the following:
(a) A provision that requires, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project, the agency to, within two years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs, as defined by Section 50052.5 of the Health and Safety Code, within the territorial jurisdiction of the agency, in accordance with all of the provisions of Section 100635.
(b) A provision that prohibits the number of housing units occupied by extremely low, very low-, and low-income households, including the number of bedrooms in those units, at the time the plan is adopted, from being reduced in the plan area during the effective period of the plan.

100672.
 Programs to assist or develop low- and moderate-income housing pursuant to this title shall be entitled to priority consideration after a program implemented by a housing successor pursuant to Section 34176.1 of the Health and Safety Code for assistance in housing programs administered by the California Housing Finance Agency, the Department of Housing and Community Development, and other state agencies and departments, if those agencies or departments determine that the housing is otherwise eligible for assistance under a particular program.

100672.5.
 The same notice requirements as specified in Section 65863.10 shall apply to multifamily rental housing that receives financial assistance pursuant to Sections 100670 and 100670.5.

100673.
 Notwithstanding Sections 100670 and 100670.5, assistance provided by an agency to preserve the availability to lower income households of affordable housing units within the plan area which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates may be credited and offset against an agency’s obligations under Section 100670.

100673.5.
 (a) Except as otherwise provided in this subdivision, not later than six months following the close of any fiscal year of an agency in which excess surplus accumulates in the agency’s separate fund established pursuant to subdivision (a) of Section 100670, the agency may adopt a plan pursuant to this section for expenditure of all moneys in the separate fund within five years from the end of that fiscal year. The plan may be general and need not be site-specific, but shall include objectives respecting the number and type of housing to be assisted, identification of the entities that will administer the plan, alternative means of ensuring the affordability of housing units for the longest feasible time, as specified in subdivision (f) of Section 100670.5, the income groups to be assisted, and a schedule by fiscal year for expenditure of the excess surplus.
(b) The agency shall separately account for any excess surplus accumulated each year either as part of or in addition to the separate fund established pursuant to subdivision (a) of Section 100670.
(c) If the agency develops a plan for expenditure of excess surplus or other moneys in the separate fund established pursuant to subdivision (a) of Section 100670, a copy of that plan and any amendments to that plan shall be included in the agency’s annual report pursuant to Section 100640.

100674.
 (a) (1) Upon failure of the agency to expend or encumber excess surplus in the separate fund established pursuant to subdivision (a) of Section 100670, within one year from the date the moneys become excess surplus, as defined in paragraph (1) of subdivision (g), the agency shall do either of the following:
(A) Disburse voluntarily its excess surplus to the county housing authority, a private nonprofit housing developer, or to another public agency exercising housing development powers within the territorial jurisdiction of the agency in accordance with subdivision (b).
(B) Expend or encumber its excess surplus within two additional years.
(2) If an agency, after three years has elapsed from the date that the moneys become excess surplus, has not expended or encumbered its excess surplus, the agency shall be subject to sanctions pursuant to subdivision (e), until the agency has expended or encumbered its excess surplus plus an additional amount, equal to 50 percent of the amount of the excess surplus that remains at the end of the three-year period. The additional expenditure shall not be from the agency’s separate fund established pursuant to subdivision (a) of Section 100670, but shall be used in a manner that meets all requirements for expenditures from that fund.
(b) The housing authority or other public agency to which the money is transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the agency under this part, and for that purpose may exercise all of the powers of a housing authority under Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code to an extent not inconsistent with these limitations.
(c) Notwithstanding Section 34209 of the Health and Safety Code or any other law, for the purpose of accepting a transfer of, and using, moneys pursuant to this section, the housing authority of a county or other public agency may exercise its powers within the territorial jurisdiction of an agency located in that county.
(d) The amount of excess surplus that shall be transferred to the housing authority or other public agency because of a failure of the agency to expend or encumber excess surplus within one year shall be the amount of the excess surplus that is not so expended or encumbered. The housing authority or other public agency to which the moneys are transferred shall expend or encumber these moneys for authorized purposes not later than three years after the date these moneys were transferred from the separate fund established pursuant to subdivision (a).
(e) (1) Until a time when the agency has expended or encumbered excess surplus moneys pursuant to subdivision (a), the agency shall be prohibited from encumbering any funds or expending any moneys derived from any source, except that the agency may encumber funds and expend moneys to pay the following obligations, if any, that were incurred by the agency before three years from the date the moneys became excess surplus:
(A) Bonds, notes, interim certificates, debentures, or other obligations issued by an agency, whether funded, refunded, assumed, or otherwise, pursuant to Part 7 (commencing with Section 100680).
(B) Loans or moneys advanced to the agency, including, but not limited to, loans from federal, state, or local agencies, or a private entity.
(C) Contractual obligations which, if breached, could subject the agency to damages or other liabilities or remedies.
(D) Indebtedness incurred pursuant to Section 100670 or 100672.
(E) An amount, to be expended for the operation and administration of the agency, that may not exceed 75 percent of the amount spent for those purposes in the preceding fiscal year.
(2) This subdivision shall not be construed to prohibit the expenditure of excess surplus funds or other funds to meet the requirement in paragraph (2) of subdivision (a) that the agency spend or encumber excess surplus funds, plus an amount equal to 50 percent of excess surplus, before spending or encumbering funds for any other purpose.
(f) This section shall not be construed to limit any authority that an agency may have under other provisions of this title to contract with a housing authority, private nonprofit housing developer, or other public agency exercising housing developer powers, for increasing or improving the community’s supply of low- and moderate-income housing.
(g) For purposes of this section:
(1) “Excess surplus” means any unexpended and unencumbered amount in an agency’s separate fund established pursuant to subdivision (a) of Section 100670 that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the separate fund pursuant to Sections 100670 and 100672 during the agency’s preceding four fiscal years. The first fiscal year to be included in this computation is the 2019–20 fiscal year, and the first date on which an excess surplus may exist is July 1, 2024.
(2) Moneys shall be deemed encumbered if committed pursuant to a legally enforceable contract or agreement for expenditure for purposes specified in Sections 100670 and 100670.5.
(3) (A) For purposes of determining whether an excess surplus exists, it is the intent of the Legislature to give credit to agencies which convey land for less than fair market value, on which low- and moderate-income housing is built or is to be built if at least 49 percent of the units developed on the land are available at an affordable housing cost to lower income households for at least the time specified in subdivision (f) of Section 100670.5, and otherwise comply with all of the provisions of this division applicable to expenditures of moneys from a low- and moderate-income housing fund established pursuant to Section 100670.5. Therefore, for the sole purpose of determining the amount, if any, of an excess surplus, an agency may make the following calculation: if an agency sells, leases, or grants land acquired with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 for an amount which is below fair market value, and if at least 49 percent of the units constructed or rehabilitated on the land are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code, the difference between the fair market value of the land and the amount the agency receives may be subtracted from the amount of moneys in an agency’s separate fund.
(B) If taxes that are deposited in the separate fund are used as security for bonds or other indebtedness, the proceeds of the bonds or other indebtedness, and income and expenditures related to those proceeds, shall not be counted in determining whether an excess surplus exists. The unspent portion of the proceeds of bonds or other indebtedness, and income related thereto, shall be excluded from the calculation of the unexpended and unencumbered amount in the separate fund when determining whether an excess surplus exists.
(C) This subdivision shall not be construed to restrict the authority of an agency provided in any other provision of this title to expend funds from the separate fund established pursuant to subdivision (a) of Section 100670.
(D) The Department of Housing and Community Development shall develop and periodically revise the methodology to be used in the calculation of excess surplus as required by this section. The Director of Housing and Community Development shall appoint an advisory committee to advise in the development of this methodology. The advisory committee shall include department staff, affordable housing advocates, and representatives of the housing successors of former redevelopment agencies, the League of California Cities, the California Society of Certified Public Accountants, the Controller, and any other authorities or persons interested in the field that the director deems necessary and appropriate.
(h) Communities in which an agency has disbursed excess surplus funds pursuant to this section shall not disapprove a low- or moderate-income housing project funded in whole or in part by the excess surplus funds if the project is consistent with applicable building codes and the land use designation specified in any element of the general plan as it existed on the date the application was deemed complete. A local agency may require compliance with local development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in housing elements of the community pursuant to subdivision (b) of Section 65583.

100674.5.
 (a) Notwithstanding Sections 50079.5, 50093, and 50105 of the Health and Safety Code, for purposes of an agency providing assistance to mortgagors participating in a homeownership residential mortgage revenue bond program pursuant to Section 33750 of the Health and Safety Code, or a home financing program pursuant to Section 52020 of the Health and Safety Code, or a California Housing Finance Agency home financing program, “area median income” means the highest of the following:
(1) Statewide median household income.
(2) Countywide median household income.
(3) Median family income for the area, as determined by the United States Department of Housing and Urban Development with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area.
(b) To the extent that any portion of the separate fund established pursuant to subdivision (a) of Section 100670 is expended by an agency to provide assistance to mortgagors participating in programs whose income exceeds that of persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, the agency shall, within two years, expend or enter into a legally enforceable agreement to expend twice that sum exclusively to increase and improve the community’s supply of housing available at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code, of which at least 50 percent shall be very low income households, as defined in Section 50105 of the Health and Safety Code.
(c) In addition to the requirements of subdivision (c) of Section 33413 of the Health and Safety Code, the agency shall require that the lower and very low income dwelling units developed pursuant to this subdivision remain available at an affordable housing cost to lower and very low income households for at least 45 years, except as to dwelling units developed with the assistance of federal or state subsidy programs which terminate in a shorter period and cannot be extended or renewed.
(d) The agency shall include within the report required by Section 100640 information with respect to compliance by the agency with the requirements of this section.

100675.
 The covenants or restrictions imposed by the agency pursuant to subdivision (f) of Section 100670.5 may be subordinated under any of the following alternatives:
(a) To a lien, encumbrance, or regulatory agreement under a federal or state program when a federal or state agency is providing financing, refinancing, or other assistance to the housing units or parcels, if the federal or state agency refuses to consent to the seniority of the agency’s covenant or restriction on the basis that it is required to maintain its lien, encumbrance, or regulatory agreement or restrictions due to statutory or regulatory requirements, adopted or approved policies, or other guidelines pertaining to the financing, refinancing, or other assistance of the housing units or parcels.
(b) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of owner-occupied units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available.
(c) To an existing lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units, where the agency’s funds are utilized for rehabilitation of the rental units.
(d) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available, and the agency obtains written commitments reasonably designed to protect the agency’s investment in the event of default, including, but not limited to, any of the following:
(1) A right of the agency to cure a default on the loan.
(2) A right of the agency to negotiate with the lender after notice of default from the lender.
(3) An agreement that if before foreclosure of the loan, the agency takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to the agency.
(4) A right of the agency to purchase property from the owner at any time after a default on the loan.

100675.5.
 Subsidies provided pursuant to paragraph (8) of subdivision (b) of Section 100670 may include payment of a portion of the principal and interest on bonds issued by a public agency to finance housing for persons and families specified in that paragraph if the agency ensures by contract that the benefit of the subsidy will be passed on to those persons and families in the form of lower housing costs.

100676.
 For each interest in real property acquired using moneys from the separate fund established pursuant to subdivision (a) of Section 100670, the agency shall, within five years from the date it first acquires the property interest for the development of housing affordable to persons and families of low and moderate income, initiate activities consistent with the development of the property for that purpose. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the agency may, by resolution, extend the period during which the agency may retain the property for one additional period not to exceed five years. The resolution of extension shall affirm the intention of the governing board that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, or if the agency does not comply with this requirement, the property shall be sold and the moneys from the sale, less reimbursement to the agency for the cost of the sale, shall be deposited in the agency’s separate fund established pursuant to subdivision (a) of Section 100670.

PART 7. Tax Increment Bonds

100680.
 The agency may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds.

100681.
 The resolution adopted pursuant to Section 100680 shall contain all of the following information:
(a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue.
(b) The estimated cost of the facilities or developments, 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) 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.
(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).

100682.
 (a) Except as otherwise provided in subdivision (b), the clerk of the agency shall publish the resolution adopted pursuant to Section 100681 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week.
(b) If there are no newspapers that meet the criteria specified in subdivision (a), the resolution shall be posted in three public places within the territory of the district for two succeeding weeks.

100683.
 (a) If the agency adopts a resolution proposing initiation of proceedings to issue bonds pursuant to Section 100680 for port or harbor infrastructure, it shall submit the proposal, together with the information specified in Section 100681, to the affected harbor agency pursuant to Section 1713 of the Harbors and Navigation Code for its preliminary approval.
(b) If the harbor agency grants preliminary approval, the proposal shall be considered by the State Lands Commission for final approval pursuant to Section 1714 of the Harbors and Navigation Code.
(c) If the State Lands Commission votes in favor of the issuance of the bonds as provided in Section 1714 of the Harbors and Navigation Code, the agency may proceed with the issuance of bonds pursuant to this part.

100684.
 The agency shall issue bonds by adopting a resolution providing for all of the following:
(a) The issuance of the bonds in one or more series.
(b) The principal amount of the bonds that shall be consistent with the amount specified in subdivision (b) of Section 100681.
(c) The date the bonds will bear.
(d) The date of maturity of the bonds.
(e) The denomination of the bonds.
(f) The form of the bonds.
(g) The manner of execution of the bonds.
(h) The medium of payment in which the bonds are payable.
(i) The place or manner of payment and any requirements for registration of the bonds.
(j) The terms of call or redemption, with or without premium.

100685.
 The agency may provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The agency shall not extend the time to maturity of the bonds.

100686.
 The agency or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of an agency issued pursuant to this part are not a debt of the city, county, or state or of any of its political subdivisions, other than the agency, and none of those entities, other than the agency, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the agency. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

100687.
 The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days before the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.

100688.
 If any member of the agency whose signature appears on bonds ceases to be a member of the agency before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this part are fully negotiable.

100689.
 Upon the approval of its legislative body, a city, county, or special district that contains territory within the boundaries of an agency may loan moneys to the agency to fund those activities described in the redevelopment project plan approved and adopted pursuant to Part 5 (commencing with Section 100650). Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law, it is the intent of the Legislature that any loan issued to an agency by a governmental entity shall be repaid fully unless agreed to otherwise between the agency and the governmental entity.

100690.
 (a) Every two years after the issuance of debt pursuant to Section 100684, the agency 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 Finance, and to the Joint Legislative Budget Committee.
(b) Upon the request of the Governor or of the Legislature, the Bureau of State Audits may conduct financial and performance audits of districts. The results of the audits shall be provided to the agency, the Controller, the Director of Finance, and the Joint Legislative Budget Committee.

SEC. 3.Section 97.82 is added to the Revenue and Taxation Code, to read:
97.82.

(a)Notwithstanding any other law, for the 2019–20 fiscal year and for each fiscal year thereafter, the auditor of a county in which a qualified local agency is located shall do both of the following:

(1)Increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated to a qualified local agency by the affected tax entity equity amount.

(2)(A)Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the county’s Educational Revenue Augmentation Fund by the affected tax entity equity amount.

(B)If, for any fiscal year, there is not enough ad valorem property tax revenue that is otherwise required to be allocated to a county Educational Revenue Augmentation Fund for the auditor to complete the allocation reduction required by subparagraph (A), the auditor shall additionally reduce the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in the county for that fiscal year by an amount equal to the difference between the affected tax entity equity amount and the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund for that fiscal year. This reduction for each school district in the county shall be the percentage share of the total reduction that is equal to the proportion that the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the school district bears to the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in a county. For purposes of this subparagraph, “school districts” do not include any districts that are excess tax school entities, as defined in Section 95.

(C)Any reduction in the amount of ad valorem property tax revenues deposited in the county’s Educational Revenue Augmentation Fund as a result of subparagraph (A) shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and shall not be applied to reduce the amounts of ad valorem property tax revenues that are otherwise required to be allocated from that fund to community college districts.

(b)For purposes of this section:

(1)“Affected tax entity equity amount” means an amount determined by the Department of Finance pursuant to Section 100614 of the Government Code to be sufficient to alleviate the burden caused by the redevelopment housing and infrastructure’s agency’s activities, but in no instance shall that amount exceed the amount of ad valorem property tax revenue that the qualified local agency would have received from property located within the redevelopment project area in the absence of the redevelopment and housing and infrastructure agency.

(2)“Qualified local agency” means a local agency as defined in subdivision (a) of Section 95 that was approved by the Department of Finance to receive equity pursuant to Section 100614 of the Government Code. “Qualified local agency” does not include a school entity.

(c)For the 2019–20 fiscal year and each fiscal year thereafter, ad valorem property tax revenue allocations made pursuant to Sections 96.1 and 96.5, or any successor to either of those provisions, shall not incorporate the allocation adjustments made by this section.

SEC. 4.SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.