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AB-1778 Transit-Oriented Redevelopment Law of 2018.(2017-2018)

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Date Published: 04/10/2018 09:00 PM
AB1778:v97#DOCUMENT

Amended  IN  Assembly  April 10, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1778


Introduced by Assembly Member Holden

January 04, 2018


An act to add Title 6.8 (commencing with Section 64500) to the Government Code, relating to redevelopment.


LEGISLATIVE COUNSEL'S DIGEST


AB 1778, as amended, Holden. Community Transit-Oriented Redevelopment Law of 2018.
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 Transit-Oriented Redevelopment Law of 2018, would authorize a city or county to propose the formation of a redevelopment agency by adopting a resolution of intention that meets specified requirements, and submitting that resolution to each affected taxing entity and to each owner of land within the district. The bill would require the city or county that adopted that resolution to hold a public hearing on the proposal, as provided, and would authorize that city or county to adopt a resolution of formation at the conclusion of that hearing. The bill would authorize an agency formed pursuant to these provisions to finance affordable housing or transit-oriented development projects, as defined. defined, and to carry out related powers, as specified.

The

This bill would provide for the governing board of the agency consisting of 2 members appointed by the legislative body that adopted the resolution of intention, one member appointed by each affected taxing entity, and 2 members of the public. The bill would require the governing board of an agency to designate an appropriate official to prepare a proposed redevelopment project plan. 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 the above-described constitutional provision. The bill would authorize the agency to issue bonds to finance developments in accordance with specified requirements and procedures. The bill would require the agency to contract for an independent financial and performance audit every 2 years after the issuance of debt. The bill would require the agency to submit an annual report, containing specified information, and a final report of any audit undertaken by any other local, state, or federal government entity to its governing body within specified time periods. The bill would also require the agency to file a copy of the report with the Controller and a copy of any audit report with the Department of Housing and Community Development.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Title 6.8 (commencing with Section 64500) is added to the Government Code, to read:

TITLE 6.8. Community Transit-Oriented Redevelopment Law of 2018

64500.
 This title shall be known, and may be cited, as the Community Transit-Oriented Redevelopment Law of 2018.

64501.
 For purposes of this title, all of the following definitions shall apply:
(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 or community college district. For the purposes of this section, “special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries.
(b)  “Agency” means a transit-oriented redevelopment agency created by this title.
(c) “County” means a county or a city and county.
(d) “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 title. A public agency is not a landowner or owner of land for purposes of this title, unless the public agency owns all of the land to be included within the proposed agency.
(e) “Legislative body” means the city council of the city or board of supervisors of the county.
(f) “Mixed use development” means that up to 50 percent of the square footage of a proposed development is designated for nonresidential use.

(f)

(g) “Transit-oriented development projects” means commercial, residential, or mixed-use development that is undertaken in connection with existing, planned, or proposed intermodal transit facilities and is located one quarter mile or less from the external boundaries of the facility.

64502.
 The Legislature declares that this title constitutes the Community Redevelopment Law within the meaning of Section 16 of Article XVI of the California Constitution, and that a transit-oriented redevelopment agency formed pursuant to this title shall have all powers granted to a redevelopment agency pursuant to that section.

64503.
 (a) The legislative body of a city or county 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 of the following:
(1) A statement that a redevelopment agency is proposed to be established in accordance with the terms of this title.
(2) A preliminary project plan prepared by the legislative body. The preliminary project plan shall, at a minimum, include all of 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) 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.
(C) A description of the affordable housing or transit-oriented development projects that are proposed to be financed by the agency.
(3) 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 transit-oriented development projects to be assisted by the agency, including a detailed description of any intention to incur debt.
(C) A limit on 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.
(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.
(4) 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 both of the following:
(1) Each affected taxing entity.
(2) Each owner of land within the district.

64504.
 (a) The city or county that adopted the resolution of intention pursuant to Section 64503 shall consult with each affected taxing entity. Any affected taxing entity may suggest revisions to be included in the resolution of formation.
(b) (1) The legislative body shall, no sooner than _____ days after the resolution of intention was submitted to each affected taxing entity pursuant to subdivision (a), hold a public hearing on the proposal.
(2) 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 transit-oriented development projects, briefly describe the proposed affordable housing or transit-oriented development 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.
(3) At the conclusion of the public hearing, the legislative body may adopt a resolution of formation of the agency. The resolution of formation shall contain all the information described in Section 64503, and shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the formation of the agency.

64504.3.
 (a) The governing board of the agency shall consist of the following:
(1) Two members appointed by the legislative body that adopted the resolution of intention pursuant to Section 65403.
(2) One member appointed by each affected taxing entity.
(3) Two public members appointed by the governing board composed of the members described in paragraphs (1) and (2). The appointment of the public members shall be subject to Section 54974.
(b) Members of the governing board 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.
(c) 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.

64504.6.
 The 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)).

64505.
 (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 a redevelopment project described in subdivision (b).
(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.
(2) The facilities are not required to be physically located within the boundaries of the agency. However, any facilities financed outside of a project area shall have a tangible connection to the work of the agency, as detailed in the redevelopment plan.
(3) An agency shall not finance routine maintenance, repair work, or the costs of an ongoing operation or providing services of any kind.
(b) The agency may finance both of the following redevelopment projects:
(1) The acquisition, construction, or rehabilitation of affordable housing.
(2) Transit-oriented development projects.
(c) An agency may, within the area established in an approved redevelopment project plan, do either or both of the following:
(1) 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.
(2) Acquire real property by eminent domain.

64505.

An agency may finance both of the following:

(a)The acquisition, construction, or rehabilitation of affordable housing.

(b)Transit-oriented development projects.

64506.

It is the intent of the Legislature to enact legislation that would provide for the composition of the governing board of the agency.

64507.
 (a) After adopting the resolution pursuant to Section 64504, 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.
(b) The official designated pursuant to subdivision (a) 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 in which the project is located. The plan shall include all of the following:
(1)  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.
(2) 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.
(3) A financing section that shall contain all of the following information:
(A) 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.
(B) A plan for financing the public facilities to be assisted by the agency, including a detailed description of any intention to incur debt.
(C) A limit on the total number of dollars of taxes that may be allocated to the agency pursuant to the plan.
(D) 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 64509.
(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.
(4) The goals the agency proposes to achieve for each project financed.
(5) 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.

64507.2.
 It is the intent of the Legislature to enact legislation that would provide for the adoption by the governing board of the redevelopment project plan proposed pursuant to Section 64507.

64508.
 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:
(a) 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.
(b) That portion of the levied taxes each year in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into, a special fund of the 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 subdivision (a), 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.
(c) That portion of the taxes in excess of the amount identified in subdivision (a) 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.
(d) This section 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 California 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.
(e) As used in this section, 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.

64509.
 (a) 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. The resolution shall contain all of the following information:
(1) A description of the developments to be financed with the proceeds of the proposed bond issue.
(2) The estimated cost of the developments, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.
(3) The maximum interest rate and discount on the proposed bond issuance.
(4) 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.
(b) The agency shall issue bonds by adopting a resolution providing for all of the following:
(1) The issuance of the bonds in one or more series.
(2) The principal amount of the bonds that shall be consistent with the amount specified in paragraph (2) of subdivision (a).
(3) The date the bonds will bear.
(4) The date of maturity of the bonds.
(5) The denomination of the bonds.
(6) The form of the bonds.
(7) The manner of execution of the bonds.
(8) The medium of payment in which the bonds are payable.
(9) The place or manner of payment and any requirements for registration of the bonds.

64510.
 (a) Every two years after the issuance of debt pursuant to Section 64509, 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 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.

64511.
 (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. 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, and also include a report on the agency’s compliance with laws, regulations, and administrative requirements governing activities of the agency.
(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.
(3) A description of the agency’s activities in the previous fiscal year affecting housing and displacement.
(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 in which 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.
(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 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.