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AB-1717 Transit-Oriented Affordable Housing Funding Program Act.(2019-2020)

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Date Published: 04/10/2019 09:00 PM
AB1717:v97#DOCUMENT

Amended  IN  Assembly  April 10, 2019
Amended  IN  Assembly  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1717


Introduced by Assembly Member Friedman

February 22, 2019


An act to amend Sections 16305.2 and 53993 of, and to add Section 16305.10 to, the Government Code, and to amend Section 51350.5 of, and to add Part 18 (commencing with Section 54200) to Division 31 of, the Health and Safety Code, relating to housing, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1717, as amended, Friedman. Transit-Oriented Affordable Housing Funding Program Act.
Existing law authorizes the legislative body of a city or a county to propose the establishment of an enhanced infrastructure financing district, in accordance with specified procedures, to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase.
This bill would establish the Transit-Oriented Affordable Housing Funding Program, to be administered by the California Housing Finance Agency (CalHFA). The bill would authorize the city council of a city, or the board of supervisors of a city and county, to participate in the program by enactment of an ordinance establishing a transit-oriented affordable housing district, as provided. The bill would require that the city council or board of supervisors serve as the governing board of the district and, in that capacity, prepare and adopt a transit-oriented affordable housing financing plan. The bill would authorize a district to designate program areas. The bill would authorize the district to provide program funding to multifamily housing developments, as defined, within those program areas that meet specified requirements, including that the housing include a minimum percentage of units that are restricted to very lower, low, or moderate income households, and that the development receives to preliminary approval from CalHFA, as provided. The bill would require that program funding be used for the acquisition, construction, or rehabilitation of housing for very low income households and persons and families of low or moderate income. The bill would authorize the transit-oriented affordable housing financing plan to include a provision for the division of taxes with respect to those properties selected for participation. The bill would establish a maximum amount of program funding, and a maximum term for the division of taxes, for multifamily housing developments based on the percentage of very low, lower, or moderate income units included.
The bill would authorize a transit-oriented affordable housing district to enter into a contract with CalHFA that includes specified provisions, including a provision requiring the district to remit the entirety of the amount allocated to it by a division of taxes to CalHFA and a provision requiring that CalHFA transfer that amount to the custody of the Treasurer for deposit in the Transit-Oriented Affordable Housing Trust Fund (trust fund), which this bill would create and continuously appropriate to CalHFA. The bill would require CalHFA to issue revenue bonds, in accordance with specified procedures, secured by moneys in the trust fund and allocate the proceeds of those bonds to districts with which it has a contract in proportion to the amount remitted by each district. The bill would specify that moneys in the trust fund are nonstate moneys and are instead the property of, and held in trust on behalf of, the districts that contract with CalHFA under these provisions. The bill would require that a district use the proceeds of revenue bonds allocated to it pursuant to these provisions for those purposes to provide program funding to participating multifamily housing developments.
The bill would make various conforming changes to other laws relating to state moneys, the division of taxes by local agencies, and the authority of CalHFA to issue revenue bonds.
By adding to the duties of county auditors with respect to the allocation of property tax revenues, this bill would impose a state-mandated local program.
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 no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 16305.2 of the Government Code is amended to read:

16305.2.
 (a) All money in the possession of or collected by any state agency or department, except for money in the Local Agency Investment Fund or the Transit-Oriented Affordable Housing Trust Fund, is subject to Sections 16305.3 to 16305.7, inclusive, and is hereafter referred to as state money.
(b) Except as otherwise provided by this chapter or authorized by statute, any transfer, expenditure, or other use of state money knowingly committed by a state employee, outside of the State Treasury System is a misdemeanor, punishable by up to one year in a county jail, or a two-thousand-five-hundred-dollar ($2,500) fine, or both.

SEC. 2.

 Section 16305.10 is added to the Government Code, to read:

16305.10.
 (a) All money in the Transit-Oriented Affordable Housing Trust Fund shall be held in trust in the custody of the Treasurer.
(b) All money in the Transit-Oriented Affordable Housing Trust Fund is nonstate money. That money shall be held in a trust account or accounts. The Controller shall be responsible for maintaining those accounts to record the Treasurer’s accountability, and shall maintain a separate account for each trust deposit in the ___ Transit-Oriented Affordable Housing Trust Fund.
(c) Moneys in the Transit-Oriented Affordable Housing Trust Fund subject to this section shall be subject to audit by the Department of Finance and to cash count as provided for in Sections 13297, 13298, and 13299. It may be withdrawn only upon the order of the depositing entity or its disbursing officers. The system that the Director of Finance has established for the handling, receiving, holding, and disbursing of state agency money shall also be used for the money in the Transit-Oriented Affordable Housing Trust Fund.

SEC. 3.

 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 54220 of the Health and Safety Code.

SEC. 4.

 Section 51350.5 of the Health and Safety Code is amended to read:

51350.5.
 (a) The limitation set forth in Section 51350 on the amount of the agency’s bonds which may be concurrently outstanding, including any changes, expansions of, or additions to, such limitations, shall not apply to either of the following:
(1) Bonds issued to finance construction of rental housing developments assisted pursuant to Chapter 9 (commencing with Section 50735) of Part 2 or to refund or renew any bonds described in this paragraph, to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon, and any interest accrued or to accrue to the date of redemption of those bonds.
(2) Bonds issued pursuant to Article 2 (commencing with Section 54260) of Chapter 3 of Part 18.
(b) Bonds specified in this section shall not be included or considered when applying the limitation on amount of bonds specified in subdivision (c) of Section 51350 or in any other law which may be enacted to provide additional bonding authority to the agency and which certain dollar limitations respecting the amount of bonds issued or outstanding.

SEC. 5.

 Part 18 (commencing with Section 54200) is added to Division 31 of the Health and Safety Code, to read:

PART 18. Transit-Oriented Affordable Housing Funding Program

CHAPTER  1. General Provisions

54200.
 This part shall be known, and may be cited, as the Transit-Oriented Affordable Housing Funding Program Act.

54201.
 The Legislature finds and declares all of the following:
(a) With the dissolution of redevelopment agencies, public benefits will accrue if cities are able to finance multifamily housing developments near high-transit areas through tax increment financing.
(b) The financing of multifamily housing developments near high-transit areas serves a public purpose by incentivizing and supporting the development of housing to alleviate the state’s housing crisis, reducing greenhouse gas emissions by locating housing near transit and thereby reducing travel times, and activating underused land near high-transit areas and revitalizing surrounding neighborhoods.
(c) It is the intent of the Legislature in enacting this part to provide funding to affordable multifamily housing projects near transit by reallocating the tax increment share proceeds of cities and school districts from a qualifying multifamily housing development built near transit, providing for the issuance of revenue bonds by the California Housing Finance Agency that are secured by future tax increment proceeds, and providing grant funding to qualifying multifamily housing developments with the proceeds of those bonds.
(d) It is further the intent of the Legislature in enacting this part to promote denser and smarter development near transit and make multifamily housing developments more feasible.

54202.
 For purposes of this part:
(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 district in the fiscal year before to the designation of the 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 transit-oriented affordable housing financing district, calculated pursuant to subdivision (e) of Section 54221.
(c) “City” means a city or city and county.
(d) “District” means a transit-oriented affordable housing district established pursuant to Section 54210.
(e) “District contract” means a contract entered into between the agency and a district pursuant to Section 54225.
(f) “Governing board” means the legislative body of a city that establishes a district pursuant to Chapter 2 (commencing with Section 54210) acting as the governing board of that district.
(g) “High-quality bus corridor” means a corridor with fixed route bus service that meets both of the following criteria:
(1) It has average service intervals of no more than 15 minutes during the four peak hours between 6 a.m. to 10 a.m., inclusive, and the four peak hours between 3 p.m. and 7 p.m., inclusive, Monday through Friday.
(2) It has average service intervals of no more than 20 minutes during the hours of 6 a.m. to 10 a.m., inclusive, Monday through Friday.
(h) “Landowner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this part. A public agency is not a landowner for purposes of this part, unless the public agency owns all of the land to be included within the program area.
(i) “Legislative body” means the city council of a city, or the board of supervisors of a city and county, that participates in the program by establishment of a district.
(j) “Major transit stop” means a site containing an existing rail transit station or a ferry terminal served by either bus or rail transit service.
(k) “Multifamily housing development” means a project, including a mixed-use project, for which a developer seeks entitlements from the city that includes 10 or more proposed residential units and that is located within the plan area.
(l) “Plan area” and “area included within the district” includes only those properties located within a program area that are selected pursuant to Section 54216 for the term for which those properties are eligible to participate pursuant to subdivision (c) of Section 54217.
(m) “Program” means the Transit-Oriented Affordable Housing Funding Program established pursuant to this part.
(n) “Program area” means any site, parcel, or area within the territorial boundaries of a city participating in the program that is eligible for program funding and designated pursuant to Section 54212.
(o) “Program funding” means financing provided by a district and the agency pursuant to the program in accordance with this part.
(p) “Transit-oriented affordable housing district” means a legally constituted governmental entity separate and distinct from the city that established it pursuant to Chapter 2 (commencing with Section 54210) for the sole purpose of financing affordable housing as authorized by this chapter. An affordable housing financing district shall be a local agency for purposes of the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(q) “Trust fund,” except as used in Sections 54221 and 54222, means the Transit-Oriented Affordable Housing Trust Fund established pursuant to Section 54260.

54203.
 There is hereby established the Transit-Oriented Affordable Housing Funding Program. The agency shall administer the program consistent with the requirements of this part.

CHAPTER  2. Transit-Oriented Affordable Housing Districts
Article  1. District Formation

54210.
 (a) (1) A city may participate in the program by enactment of an ordinance establishing a transit-oriented affordable housing district in accordance with this article.
(2) The legislative body of the city shall serve as the governing board of the district.
(b) Upon enactment of an ordinance pursuant to this section, the city shall notify the agency of its intent to participate in the program and the formation of a district pursuant to this section by providing a written notice that includes all of the following:
(1) A copy of the ordinance enacted pursuant to this section establishing the city’s district.
(2) An estimate, prepared by the director of the city’s planning agency or a comparable officer, of the current percentage of the area within the jurisdictional boundaries of the city that is within a one-half mile radius of a major transit stop or a one-quarter mile radius of a high-quality bus corridor.
(c) (1) Within 30 days of receiving a notice pursuant to subdivision (b), the agency shall acknowledge the receipt of that notice. A city’s participation in the program shall be effective as of the date of the agency’s acknowledgment pursuant to this subdivision or after the 30-day period specified in this subdivision has passed, whichever occurs sooner.
(2)  Once the city’s participation in the program becomes effective pursuant to this subdivision, the city district may designate program areas pursuant to Section 54212 and approve multifamily housing developments for program funding pursuant to Article 2 (commencing with Section 54215).

54211.
 After the establishment of a district, the governing board shall prepare, or cause to be prepared, and adopt a proposed transit-oriented affordable housing financing plan. The proposed transit-oriented affordable housing financing plan shall be consistent with the general plan of the city or county within which the district is located. The governing body board shall include all of the following in the plan:
(a) A map and legal description of the district, which may include all or a portion of the district designated by the legislative body in the ordinance adopted pursuant to Section 54210.
(b) Identification of those areas proposed to be designated as program areas pursuant to Section 54212. This subdivision does not preclude a district from designating additional program areas within its boundaries pursuant to Section 54212.
(c) A statement that the plan area comprises only those parcels located within program areas, designated pursuant to Section 54212, and selected for participation, pursuant to Section 54216.
(d) A financing section, which shall contain all of the following information:
(1) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues.
(2) A plan for awarding program funding in accordance with Section 54217. Sections 54217 and 54218.
(3) A passthrough provision that provides that the district will, except as otherwise provided in this paragraph, pay to each affected taxing entity an amount equivalent to the affected taxing entity equity amount, as calculated pursuant to subdivision (e) of Section 54221. A passthrough provision shall not provide payment to the city that established the district, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
(4) An override passthrough provision that provides that the district will pay to each affected taxing entity that imposed an override property tax on property located within the proposed district 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 district, as calculated pursuant to subdivision (f) of Section 54221. For purposes of this paragraph, “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 that established the district, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
(e) Procedures for allocation of program funding to each multifamily housing development within the plan area, not to exceed the amount or the term for which those multifamily housing developments are eligible pursuant to Section 54217.

54212.
 (a) The governing board of a district may designate one or more program areas that cover any site that meets the following requirements:
(1) The site is located within a one-half mile radius of a major transit stop or a one-quarter mile radius of a high-quality bus corridor. A site shall be deemed to be within a one-half mile radius of a major transit stop or a one-quarter mile radius of a high-quality bus corridor if no more than 25 percent of the area is outside a one-half mile radius of the major transit stop or a one-quarter mile radius of the high-quality bus corridor, as applicable.
(2) The site is zoned to permit multifamily housing as an allowable use under the city’s zoning ordinances and is designated for residential use in the city’s general plan and land use map.
(b) (1) The governing board, a landowner residing within the city, or any member of the public may propose to designate program areas pursuant to this section.
(2) If the governing board or a person other than a landowner who owns the affected property proposes to designate a program area, the governing board shall provide written notice to the landowner of a property proposed to be included in that program area at least 15 days before the first public hearing on the ordinance or resolution proposing to designate a program area.
(c) The governing board shall maintain, and make publicly available, a map identifying all areas within the city designated as program areas pursuant to this section.
(d) The governing board shall notify the agency that it has designated program areas pursuant to this section within 15 days of adopting that ordinance.

54213.
 Any action or proceeding to attack, review, set aside, void, or annul the creation of a district or adoption of a transit-oriented affordable housing financing plan, including a division of taxes thereunder, shall be commenced within 30 days after the enactment of the transit-oriented affordable housing financing plan pursuant to Section 54211. Consistent with the time limitations of this section, an 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.

Article  2. Selection of Participating Projects

54215.
 In order to be eligible for program funding pursuant to this part, a multifamily housing development shall meet all of the following criteria:
(a) At least two-thirds of the total square footage of the multifamily housing development is designated for residential use.
(b) The multifamily housing development is located within a program area designated pursuant to Section 54212.
(c) The multifamily housing development includes deed-restricted affordable units at the levels required for very low, low-, or moderate-income households specified in Section 54217.
(d) The multifamily housing development is located on a site that is zoned to permit multifamily housing as an allowable use under the city’s zoning ordinances and is designated for residential use in the city’s general plan and land use map.
(e) The multifamily housing development complies with either of the following:
(1) The multifamily housing development is not located on a site described in subdivision (b) of Section 54215.5.
(2) If the multifamily housing development is located on a site described in subdivision (b) of Section 54215.5, the developer agrees to replace any rental dwelling units on that site in the manner specified in Section 54215.5.

54215.5.
 (a) For purposes of this section:
(1) “Affordability restriction” means either of the following:
(A) A recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income.
(B) Any other form of rent or price control through a public entity’s valid exercise of its police power.
(2) “Equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(3) “Replace” means either of the following:
(A) (i) If any dwelling units described in subdivision (b) are occupied on the date of application for program funding, the multifamily housing development provides at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
(ii) For unoccupied dwelling units described in subdivision (b) in a development with occupied units, the multifamily housing development shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
(B) If all dwelling units described in subdivision (b) have been vacated or demolished within the five-year period preceding the application for program funding, the multifamily housing development provides at least the same number of units of equivalent size as existed at the high point of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the high point is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database.
(b) In order to be eligible for program funding, a multifamily housing development that is located or proposed to be located on a site that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been either subject to an affordability restriction or occupied by lower or very low income households shall do both of the following:
(1) Replace those units.
(2) Comply with either of the following:
(A) The multifamily housing development, inclusive of the units replaced pursuant to this section, contains affordable units at the percentages set forth in Section 54217.
(B) Each unit in the multifamily housing development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.
(c) Notwithstanding any other provision of this section, for any dwelling unit described in subdivision (b) that is or was, within the five-year period preceding the application, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income, the district may do either of the following:
(1) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families.
(2) Require that the units be replaced in compliance with the jurisdiction’s rent or price control ordinance, provided that each unit described in subdivision (b) is replaced. Unless otherwise required by the jurisdiction’s rent or price control ordinance, these units shall not be subject to a recorded affordability restriction.
(d) The following shall apply to any replacement units provided pursuant to this section:
(1) If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years.
(2) If the multifamily housing development is for-sale units, the units replaced shall be subject to an equity sharing agreement that meets the requirements of paragraph (2) of subdivision (c) of Section 65915 of the Government Code.
(e) All replacement calculations pursuant to this section resulting in fractional units shall be rounded up to the next whole number.

54216.
 (a) A developer of a multifamily housing development that satisfies the requirements specified in Section 54215 may apply for program funding by submitting an application, in the form and manner prescribed by the district, to the district.
(b) An application for program funding shall contain all of the following:
(1) A description of the multifamily housing development project.
(2) The total square footage of the multifamily housing development project, the square footage designated for residential use, and the square footage designated for nonresidential use.
(3) The number of market rate residential units, and the number of residential units required to be restricted to very low, low-, or moderate-income households pursuant to Section 54217, proposed to be included in the multifamily housing development.
(4) The financial information required pursuant to Section 54251.
(5) Any other information required by the district or the agency that will enable to district and the agency to determine the eligibility of the multifamily housing development to receive program funding.
(c) Upon receipt of a complete application for program funding, the district shall provide a copy of the application to the agency for review in accordance with Article 1 (commencing with Section 54250) of Chapter 3.
(d) (1) Subject to paragraph (2), upon receipt of the approval of the agency, the district may approve a multifamily housing development to receive program funding.
(2) The district may approve a multifamily housing development for program funding either simultaneously with or subsequent to the issuance of any necessary approval of a conditional use or other discretionary permit or other zoning entitlement by the city for the project, but shall not approve a multifamily housing development for program funding before the project has received all necessary conditional use or other discretionary permits or other zoning entitlements.
(e) The district shall provide the agency a copy of any final approved application for program funding, along with a copy of any necessary conditional use or other discretionary permits or other zoning entitlements issued by the city, for a multifamily housing development.

54217.
 (a) A multifamily housing development that receives program funding shall include units that are subject to a recorded affordability restriction for at least 55 years at one of the following affordability levels:
(1) At least 5 percent of the total units are restricted to very low income households.
(2) At least 10 percent of the total units are restricted to lower income households.
(3) At least 15 percent of the total units are restricted to moderate-income households.
(b) Any units required to be included in a multifamily housing development as a condition of approval of that development by a local inclusionary housing ordinance shall be considered in determining whether the multifamily housing development meets the minimum requirements specified in subdivision (a).
(c) (1) A multifamily housing development approved to receive program funding pursuant to Section 54216 shall receive the following amounts of program funding and shall be subject to the division of taxes pursuant to Section 54220 for the following term:
(A) For multifamily housing developments that include the minimum percentage of very low income units pursuant to paragraph (1) of subdivision (a):
Percentage Very Low Income UnitsProgram Funding Limit (dollars)Term of Division of Taxes (years)
13 or less___4
14___9
15___14
16___17
17___21
18___24
19___27
20 or more___29
(B) For multifamily housing developments that include the minimum percentage of lower income units pursuant to paragraph (2) of subdivision (a):
Percentage Lower Income UnitsProgram Funding Limit (dollars)Term of Division of Taxes (years)
15 or less___5
16___10
17___14
18___18
19___21
20___23
21___26
22___28
23 or more___30
(C) For multifamily housing developments that include the minimum percentage of moderate-income units pursuant to subdivision (a):
Percentage Moderate Income UnitsProgram Funding Limit (dollars)Term of Division of Taxes (years)
17 or less___5
18___9
19___13
20___16
21___19
22___22
23___24
24___26
25___28
26 or more___30
(2) If a multifamily housing development includes a qualifying percentage of units affordable at more than one income level specified in subdivision (a), that multifamily housing development shall be eligible for the maximum amount of program funding, and the longest term for the division of taxes, for which it qualifies under paragraph (1).
(d) For purposes of determining the eligibility of, and the maximum amount of program funding and term for the division of taxes for, a multifamily housing development pursuant to this section, “moderate income units” includes all lower income and very low income units and “lower income units” includes all very low income units.

54218.
 (a) Except as provided in subdivision (b), a multifamily housing development approved to receive program funding pursuant to Section 54216 shall use that program funding for the acquisition, construction, or rehabilitation of housing for very low income households and persons and families of low or moderate income, as defined in Sections 50105 and 50093, respectively, for rent or purchase.
(b) Notwithstanding subdivision (a), a district may provide, and the developer of a multifamily housing development may use, program funding to finance mixed-income housing developments, but that program funding may finance only those units in the development that are restricted to occupancy by very low income households and persons and families of low or moderate income, as defined in Sections 50105 and 50093, respectively, and those onsite facilities for childcare, after school care, and social services that are integrally linked to the tenants of the restricted units.

54218.54219.
 If the developer does not complete a multifamily housing development selected to receive program funding pursuant to this article within ___ years, the developer shall pay to the district an amount equal to the amount of program funding that the developer received.

Article  3. Division of Taxes

54220.
 (a) An affordable housing financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the transit-oriented affordable housing financing plan adopted pursuant to Section 54211 and selection of projects for participation pursuant to Section 54216, 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 district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized before the effective date of the transit-oriented affordable housing financing plan adopted pursuant to Section 54211 and selection of projects for participation pursuant to Section 54216, 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.
(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 district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted affordable housing financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
(b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district 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 chapter, the division of taxes allocated to the district 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.
(c) The legislative body of the city that established the district may choose to dedicate any portion of its net available revenue to the district through the transit-oriented affordable housing financing plan adopted pursuant to Section 54211.
(d) For the purposes of this section, “net available revenue” means periodic distributions to the city from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5, that are available to the city 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. For purposes of this section, “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 prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183.
(e) (1) That portion of any ad valorem property tax revenue annually allocated to a city pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted transit-oriented affordable housing financing plan for the city 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 district for all lawful purposes of the district.
(2) When the district ceases to exist, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city.
(f) A district may utilize revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the transit-oriented affordable housing financing plan adopted pursuant to Section 54211 has been approved pursuant to Section 54211:
(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.

54221.
 (a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 54220 shall be allocated and paid into a special fund held in trust for the district 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 project selected pursuant to Section 54216 for which the transit-oriented affordable housing financing plan provides for the division of taxes pursuant to Section 54220, the district shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), a reconciliation statement consistent with subdivision (d), a passthrough statement consistent with subdivision (e), and an override passthrough statement consistent with subdivision (f). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the district.
(c) (1) For each project selected pursuant to Section 54216 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 district 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 district 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 project selected pursuant to Section 54216 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 district pursuant to Section 54220. 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 district pursuant to Section 54220.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the district pursuant to Section 54220.
(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 district as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the district in the previous fiscal year pursuant to Section 54220.
(6) The amount of available revenue received by the district in the previous fiscal year from any source other than pursuant to Section 54220.
(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) A district shall prepare a passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the district expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 54220.
(2) For each affected taxing entity that is entitled to a passthrough, the district shall subtract from the amount described in paragraph (1) the amount calculated by the county auditor as provided in this paragraph. The county auditor shall calculate the proportional amount that the affected taxing entity would have received from property located within the boundaries of the district during the relevant fiscal year, inclusive of amounts the affected taxing entity would receive, if any, pursuant to Section 97.70 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code. 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 district that is attributable to that affected taxing entity, inclusive of the amounts the affected taxing entity would receive from any of the sources described in the preceding sentence.
(3) A statement of the total amount of passthrough payments that the district is required to make as calculated pursuant to paragraph (2).
(f) For each district that has an override passthrough provision in the financing section of its transit-oriented affordable housing financing plan, in accordance with paragraph (4) of subdivision (c) of Section 54211, at the time of creation of that district, the district shall prepare an override passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the district expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 54220.
(2) For each affected taxing entity that imposed an override property tax with respect to property located with the boundaries of the district, the agency shall subtract from the amount described in paragraph (1) the amount calculated by the county auditor 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 district during the relevant fiscal year. The district shall include in the override passthrough statement the following information, to be provided to the county auditor:
(A) A description of the applicable override property tax that was imposed
(B) The purpose it was imposed for.
(C) 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).
(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 district pursuant to Section 54220 and all cash or cash equivalents held by the district that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the district 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 district is required to make under a passthrough provision as described in the passthrough statements prepared pursuant to subdivisions (e) and (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 54220 to a special trust fund established for each district. The amount allocated and paid pursuant to this section 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 (e) or (f), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).
(i) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the district.
(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 district thereof.
(B) The district 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 district, and the amount disputed may be withheld from allocation and payment to the district as otherwise required by subdivision (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 an 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 (h).
(j) This section does not permit a challenge to or attack on matters precluded from challenge or attack by reason of Section 54213. However, this section does not deny a remedy against the district otherwise provided by law.
(k) The Controller shall prescribe a uniform form for a statement of 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 and organizations of county auditors.

54222.
 The county auditor shall, after deducting its administrative costs for activities performed pursuant to this chapter and Section 95.3 of the Revenue and Taxation Code, allocate the funds deposited in a special trust fund established for a district pursuant to subdivision (h) of Section 54221 in the same manner and at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, as follows:
(a) First, the county auditor shall distribute funds from the special trust fund sufficient to satisfy any passthrough provisions described in paragraph (3) of (4) of subdivision (a) Section 54211 that was approved at the time of the adoption of the transit-oriented affordable housing financing plan pursuant to Section 54211, and calculated pursuant to subdivision (e) or (f) of Section 54221. The amount transferred pursuant to this subdivision shall be equal to the amount calculated pursuant to subdivision (e) or (f) of Section 54221.
(b) Second, the county auditor shall transfer the amount remaining in the special trust fund after any transfer required by subdivision (a) to the district for use in accordance with the transit-oriented affordable housing financing plan adopted pursuant to Section 54211 or remittance to the agency pursuant to a contract entered into under Section 54225.

Article  4. Contracts with the California Housing Finance Agency

54225.
 A district may enter into a contract with the agency that shall include, at minimum, the following provisions:
(a) No later than December 31 of each year for which the contract is in effect, the district will remit the entirety of the amount allocated to it pursuant to Section 54220 to the agency. The contract may provide for either a one-time lump sum or a periodic remission of funds.
(b) Upon receipt of moneys remitted pursuant to subdivision (a) and in accordance with Section 16305.10, the agency shall transfer the full amount to the custody of the Treasurer for deposit in the trust fund, established pursuant to Section 54260.
(c) The contract is subject to annual renewal, as follows:
(1) If the governing body board adopts a resolution to terminate the contract, the agency shall make a final allocation to the district from the trust fund, as provided in Section 54260, after which the district shall have no claim to any moneys in the trust fund.
(2) If the governing body board does not take any action by December 31 of any year for which a contract is entered into or renewed under this section, the contract shall be deemed to be renewed for the following year.
(d) The agency shall issue revenue bonds secured by moneys remitted to the trust fund pursuant to the contract in accordance with Article 2 (commencing with Section 54260) of Chapter 3.
(e) No later than January 31 of each year following any year in which the contract is in effect, the agency shall allocate an amount from the trust fund to the district in proportion to the amount of moneys the district remitted for that year, as provided in Section 54260.
(f) Moneys remitted to the agency and deposited in the trust fund, as required by this section and the contract, are property of the district that remitted the moneys and are not state moneys.
(g) Any other provision consistent with the requirements of this section that the district and the agency agree to in order to fulfill the purposes of this part.

54226.
 The district shall expend moneys allocated to it under a contract entered into with the agency and in accordance with Section 54260 solely for those purposes of providing program funding for those uses specified in Section 54218 to multifamily housing developments that are selected pursuant to Section 54216, consistent with the maximum amount and for the period specified in subdivision (c) of Section 54217.

CHAPTER  3. Duties of the California Housing Finance Agency
Article  1. Preliminary Approval of Projects

54250.
 (a) The agency shall develop a process by which it shall preliminarily approve or disapprove multifamily housing developments for participation in the program based on applications provided to it pursuant to subdivision (c) of Section 54216.
(b) The agency shall provide preliminary approval of a multifamily housing development if it finds all of the following:
(1) The proposed multifamily housing development complies with the requirements of Article 2 (commencing with Section 54215) of Chapter 2.
(2) The agency is satisfied of the desirability of the construction of the multifamily housing development.
(3) The developer provides the necessary financial information required by Section 54251.

54251.
 The agency shall prescribe financial information required to be included in an application for participation in the program that shall include, at minimum, an identification of any other public or private sources of financing for the multifamily housing development.

Article  2. Transit-Oriented Affordable Housing Tax Increment Revenue Bonds

54260.
 (a) (1) There is hereby established in the State Treasury the Transit-Oriented Affordable Housing Trust Fund. Notwithstanding Section 13340 of the Government Code, moneys in the trust fund are hereby continuously appropriated to the agency for allocation to districts in accordance with this chapter.
(2) The agency shall transfer all moneys it receives under a district contract to the custody of the Treasurer for deposit into the trust fund in accordance with Section 16305.10 of the Government Code. No later than January 31 of each year, the agency shall allocate moneys from the trust fund to each district that has a district contract an amount proportionate to the amount of money in the trust fund that the district contributed to the trust fund pursuant to that district contract during the immediately preceding calendar year. The agency shall develop a methodology to determine the proportionate amount owed to each district.
(b) The Legislature hereby finds and declares that moneys in the trust fund are the property of the districts that have a district contract with the agency and are not state moneys within the meaning of Section 16305.2 of the Government Code, but are instead the property of, and held in trust on behalf of, those districts as provided in Section 16305.10 of the Government Code. The state and the board of directors of the agency shall not have any right, title, or interest in those moneys, except as is necessary for the issuance of revenue bonds pursuant to this chapter.

54261.
 (a) The agency shall issue revenue bonds secured by moneys in the trust fund. Notwithstanding any other law, bonds issued pursuant to this chapter shall not be subject to Chapter 7 (commencing with Section 51350) of Part 3, unless explicitly provided otherwise in this chapter.
(b) (1) The Treasurer shall coordinate the sale of the bonds of the agency. To obtain a date for the sale of bonds, the agency shall inform the Treasurer of the amount of the proposed issue. Upon that notification, the Treasurer shall provide three 10-day periods, within the 90 days next following, when the bonds can be sold. The agency may choose any date during the suggested periods or any other date to which the agency and the Treasurer have mutually agreed. The Treasurer shall sell the bonds on the date chosen according to terms approved by the agency.
(2) The agency shall exercise its powers with due regard for the right of the holders of bonds of the agency at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict, or alter the obligation or powers of the agency or any member, officer, or representative of the agency or the Treasurer to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into on behalf of the agency with respect to its bonds or its benefits, or the security of the holders of the bonds.
(c) The bonds authorized by resolution of the agency pursuant to this chapter shall be in the form, bear those date or dates, and mature at the time or times as the resolution or resolutions may provide, except that a bond shall not mature more than 50 years from the date of its issue. The bonds may be issued as serial bonds or as term bonds, or as a combination thereof, and, notwithstanding any other law, the amount of principal of, or interest on, bonds maturing at each date of maturity need not be equal. The bonds shall bear interest at the rate or rates, be in those denominations, be in the form, either coupon or registered, carry those registration privileges, be executed in that manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and contain those terms and conditions as the resolution or resolutions may provide. The bonds of the agency pursuant to this chapter shall be sold at public or private sale by the Treasurer at, above, or below the par value, on the terms and conditions and for consideration in the medium of payment as the agency shall determine by resolution before the sale.
(d) Any resolution or resolutions authorizing any bonds or issue therefor may contain the following provisions, which shall be a part of the contract or contracts with the holders of those bonds, as to:
(1) Pledging all or any part of the moneys in the trust fund to secure payment of the bonds or any issue of those bonds, subject to any agreement with the bondholders as may then exist.
(2) Limitations on the issuance of additional bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding bonds.
(3) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.
(4) Vesting in a trustee or trustees any property, rights, powers, and duties in trust as the agency may determine, and providing for or limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers, and duties of that trustee.
(5) Defining the acts or omissions to act that shall constitute a default in the obligations and duties of the agency to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of default. However, these rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter.
(6) Any other matters of like or different character, which in any way affect the security, protection, or investment return of the holders of the bonds.

54262.
 (a) Bonds issued under this chapter shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the agency, or a pledge of the faith and credit of the state or of any such political subdivision, other than the agency, but shall be payable solely from funds provided pursuant to a district contract under this chapter. All those bonds and any prospectus or other printed representation of the agency concerning those bonds shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this bond.”
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent or be construed to prevent the agency from pledging its full faith and credit to the payment of bonds or issue of bonds authorized pursuant to this chapter.
(c) The agency shall select bond underwriters and consultants.
(d) The members of the board, the executive director of the agency, or any other person executing those notes or bonds shall not be subject to any personal liability or accountability by reason of the issuance thereof.
(e) In the event any of the board members or officers of the agency whose signatures appear on any bonds or coupons shall cease to be board members or officers of the agency before the delivery of those bonds, the signatures of those board members or officers shall, nevertheless, be valid and sufficient for all purposes, the same as if those board members or officers had remained in office until the delivery of the bonds.

54263.
 (a) (1) The Treasurer shall act as trustee for the agency and the holders of its bonds, provided the Treasurer elects to serve as trustee with respect to a particular issuance of bonds by notifying the agency of this election in writing at or before the board meeting at which the board approves a resolution authorizing the issuance and sale of the bonds.
(2) Any bonds issued under this chapter may be secured by a trust agreement, indenture, or resolution, by and between the agency and a trustee or trustees, which may be the Treasurer or any trust company or bank having the powers of a trust company within or without the state. Notwithstanding other provisions in this division, references to the Treasurer as trustee shall be deemed to refer to either the Treasurer or the duly empowered bank or trust company trustee, as the case may be. The trust agreement, indenture, or the resolution providing for the issuance of the bonds may pledge or assign revenues to be received or proceeds of any contract or contracts pledged. Any resolution authorizing any bonds or issue thereof shall prescribe the duties of the Treasurer with respect to the issuance, authentication, sale, and delivery of the bonds, the payment of principal and interest thereof, and the redemption of the bonds. Notwithstanding any other law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as trustee pursuant to this chapter.
(3) The trustee shall act on behalf of the holders of the agency’s bonds, or any stated percentage thereof, for the purpose of exercising and prosecuting on behalf of the holders in the manner and under conditions provided in the resolution authorizing the bonds.
(b) The Treasurer or other trustee acting on behalf of bondholders shall have and possess all the powers necessary or convenient for the exercise of any functions specifically set forth in this chapter or incident to the general representation of bondholders in the enforcement and protection of their rights.

54264.
 (a) The agency may provide for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of those bonds, and for any purpose of the agency. The issuance of those obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the agency in respect of the same shall be governed by the provisions of this chapter that relate to the issuance of bonds, insofar as those provisions may be appropriate therefor.
(b) Refunding bonds issued as provided in this section may be sold, or exchanged for outstanding bonds issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of those outstanding bonds. Pending the application of the proceeds of any such refunding bonds, with any other available moneys, (1) to the payment of the principal, accrued interest, and any redemption premium on the bonds being refunded, (2) to the payment of any interest on such refunding bonds, or (3) to any expenses incurred in connection with such refunding, such proceeds may be invested in those obligations as are permitted under the bond resolution authorizing the issuance of refunding bonds.

54265.
 The state hereby pledges to and agrees with the holders of any bonds issued under this chapter that the state will not limit or alter the rights hereby vested in the agency to fulfill the terms of any agreements made with the holders thereof or in any way impair the rights and remedies of those holders until those bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of those holders, are fully met and discharged. The agency may include this pledge and agreement of the state in any agreement with the holders of those notes or bonds.

54266.
 Any action or proceeding challenging the validity of revenue bonds or refunding bonds issued under this chapter shall be brought in accordance with, and within the time specified in, Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. The Superior Court of the County of Sacramento shall have jurisdiction of, and the County of Sacramento shall be the appropriate venue for any suit, action, or proceedings by the trustee on behalf of bondholders.

SEC. 6.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.