100630.

 (a) (1) An agency may finance any of the following:

(A) The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that constitutes affordable housing or infrastructure projects as described in subdivision (b).

(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 100635 and 100636. Section 100635.

(2) Facilities financed pursuant to this title are not required to be physically located within the boundaries of the agency. However, any facilities financed outside of an agency’s boundaries shall have a tangible connection to the work of the agency, as detailed in the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650).

(3) An agency shall not finance routine maintenance, repair work, or the costs of an ongoing operation or providing services of any kind.

(b) An agency shall only finance redevelopment projects that the agency finds are appropriate or necessary in the interests of the general welfare. For purposes of this title, redevelopment projects shall only include the following affordable housing or infrastructure projects:

(1) Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and interceptor pipes.

(3) Facilities for the collection and treatment of water for urban uses.

(4) Flood control levees and dams, retention basins, and drainage channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.

(9) Brownfield restoration and other environmental mitigation.

(10) The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase. The agency may finance mixed-income housing developments, but may finance only those units in a mixed-income development that are restricted to occupancy by persons of very low, low, or moderate incomes, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for child care, after school care, and social services that are integrally linked to the tenants of the restricted units.

(11) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area. An agency may reimburse a developer of a project that is located entirely within the boundaries of that agency for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470.

(12) Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.

(13) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.

(c) An agency shall not finance any project that is not described in subdivision (b).

(d) The agency shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low-, or moderate-income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.

(e) An agency may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.

100630.5.

 (a) Except as provided in subdivision (b), an agency shall not, directly or indirectly, allocate or transfer any funds received by the agency pursuant to Chapter 1 (commencing with Section 100660) of Part 6 to any city, county, or special district.

(b) Notwithstanding subdivision (a), an agency shall make any payment required by a passthrough provision that was included in the financing section of its resolution of formation and included within the redevelopment project plan, as required by paragraphs (8) and (9) of subdivision (d) of Section 100651. In making payments required by this subdivision, the agency shall comply with the requirements of subparagraphs (G) and (H) of paragraph (4) of subdivision (a) of Section 100610. An agency shall not, directly or indirectly, make passthrough payments to any affected taxing entity, including by entering into a passthrough agreement, unless that passthrough provision was included in the resolution of formation of the agency.

100631.

 An agency may, within the area established in an approved redevelopment project plan, do either of the following:

(a) Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the agency, to be used in a redevelopment project. An agency shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the agency acquires or purchases real property.

(b) Acquire real property by eminent domain to be used in a redevelopment project. Property already devoted to a public use may be acquired by the agency through eminent domain, but the agency shall not acquire property of a public body without the consent of that public body.

100632.

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

100633.

 A city or county that created a former redevelopment agency, as defined in Section 33003 of the Health and Safety Code shall neither initiate the creation of an agency, either on its own pursuant to Section 100610 or jointly pursuant to Section 100610.5, nor participate in the governance or financing of an agency, until each of the following has occurred:

(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.

(b) The city or county certifies to the Department of Finance and to the agency that no former redevelopment agency assets that are the subject of litigation involving the state, where the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an agency formed under this title, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate or initiate the formation of an agency under this title.

(c) The Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.

(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

100634.

 (a) An agency may include any portion of a former redevelopment project area that was previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, provided that the city or county that created the former redevelopment agency has met the requirements of Section 100633.

(b) An agency may finance only the facilities authorized in this title to the extent that the facilities are in addition to those provided in the territory of the agency before the agency was created. The additional facilities may not supplant facilities already available within that territory when the agency was created but may supplement, rehabilitate, upgrade, or make more sustainable those facilities.

(c) An agency may include areas which are not contiguous.

100635.

 It is the intent of the Legislature that the creation of an agency should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency then the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650) shall contain provisions to do all of the following:

(a) If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, at any time within five years before establishment of the agency, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in the same or a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.

(b) If the dwelling units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50105 and 50106 of the Health and Safety Code.

(c) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency as a result of the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650). The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action.

(d) Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income not take place unless and until there has been full compliance with the relocation assistance requirements of this section, Section 100651, and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.

(e) (1) The agency shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.

(2) The agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency’s investment of moneys in the unit or units, including, but not limited to, an equity sharing program, that is not in conflict with another public funding source or law, and that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the agency to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code.

100636.

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

100637.

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

100638.

 (a) An agency shall maintain detailed records of every action taken by that agency, including, but not limited to, all the following:

(1) Original copies of any agreement, memorandum of understanding, or contact entered into by the agency.

(2) A record of any payment made by the agency.

(3) For each loan, advance, or indebtedness incurred or entered into, all of the following information:

(A) The date the loan, advance, or indebtedness was incurred or entered into.

(B) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.

(C) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.

(D) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.

(b) The agency shall maintain any record described in this section for a period of 15 years after the later of the following:

(1) The date the record was originally created.

(2) The date that the agreement, memorandum of understanding, or contract expired or concluded.

(3) The date that the loan was fully paid off.

(c) Any person who violates this section is subject to a civil penalty of ten thousand dollars ($10,000) per violation. All moneys collected as penalties pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund, and, notwithstanding Section 50661 of the Health and Safety Code, those funds shall be available, upon appropriation by the Legislature, for support of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).

100639.

 (a) An agency shall adopt an annual budget containing all of the following specific information:

(1) The proposed expenditures of the agency.

(2) The proposed indebtedness to be incurred by the agency.

(3) The anticipated revenues of the agency.

(4) The work program planned by the agency with respect to projects approved for the coming year, including goals.

(5) An examination of the previous year’s achievements and a comparison of the achievements with the goals of the previous year’s work program.

(b) An agency may amend the annual budget from time to time. All expenditures and indebtedness of the agency shall be in conformity with the adopted or amended budget.

100640.

 (a) An agency shall submit an annual report to its governing board within six months of the end of the agency’s fiscal year. The agency shall also submit the final report of any audit undertaken by any other local, state, or federal government entity to its governing board within 30 days of receipt of that audit report.

(b) The annual report required by subdivision (a) shall contain all of the following:

(1) (A) An independent financial audit report for the previous fiscal year. For purposes of this section, “audit report” means an examination of, and opinion on, the financial statements of the agency which present the results of the operations and financial position of the agency, including all financial activities with moneys required to be held in a separate fund established pursuant to subdivision (a) of Section 100670. This audit shall be conducted by a certified public accountant or public accountant, licensed by the State of California, in accordance with Government Auditing Standards adopted by the Comptroller General of the United States. The audit report shall meet, at a minimum, the audit guidelines prescribed by the Controller’s office pursuant to Section 100642, and also include a report on the agency’s compliance with laws, regulations, and administrative requirements governing activities of the agency, and a calculation of the excess surplus, as that term is defined in subdivision (g) of Section 100674, in the separate fund established pursuant to subdivision (a) of Section 100670.

(B) However, the governing board may elect to omit from inclusion in the audit report prepared pursuant to subparagraph (A) any distinct activity of the agency that is funded exclusively by the federal government and that is subject to audit by the federal government.

(2) A fiscal statement for the previous fiscal year that contains the information required pursuant to Section 100644.

(3) A description of the agency’s activities in the previous fiscal year affecting housing and displacement that contains the information required by Section 100643.

(4) A description of the agency’s progress, including specific actions and expenditures, in accomplishing the agency’s purpose in the previous fiscal year.

(5) A list of, and status report on, all loans made by the agency that are fifty thousand dollars ($50,000) or more, that in the previous fiscal year were in default, or not in compliance with the terms of the loan approved by the agency.

(6) A description of the total number and nature of the properties that the agency owns and those properties the agency has acquired in the previous fiscal year.

(7) A list of the fiscal years that the agency expects each of the following time limits to expire:

(A) The time limit for the commencement for eminent domain proceedings to acquire property within the project area.

(B) The time limit for the establishment of loans, advances, and indebtedness to finance the redevelopment project.

(C) The time limit for the effectiveness of the redevelopment plan.

(D) The time limit to repay indebtedness with the proceeds of property taxes.

(8) Any other information that the agency believes useful to explain its programs, including, but not limited to, the number of jobs created and lost in the previous fiscal year as a result of its activities.

(c) (1) The agency shall file with the Controller within six months of the end of the agency’s fiscal year a copy of the annual report required by subdivision (a). In addition, the agency shall file with the Department of Housing and Community Development a copy of an audit report as required by subdivision (a). The reports shall be made in the time, format, and manner prescribed by the Controller after consultation with the Department of Housing and Community Development.

(2) The agency shall provide a copy of the annual report required by subdivision (a), upon the written request of any person or any affected taxing entity. If the report does not include detailed information regarding administrative costs, professional services, or other expenditures, the person or affected taxing entity may request, and the agency shall provide, that information. The person or affected taxing entity shall reimburse the agency for all actual and reasonable costs incurred in connection with the provision of the requested information. information consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1).

100641.

 (a) When the agency presents the annual report to the governing board pursuant to Section 100640, the agency shall inform the governing board of any major audit violations of this title based on the independent financial audit report. The agency shall inform the governing board that the failure to correct a major audit violation of this part may result in the filing of an action by the Attorney General pursuant to Section 100646.

(b) The governing board shall review any report submitted pursuant to Section 100640 and take any action it deems appropriate on that report no later than the first meeting of the governing board occurring more than 21 days from the receipt of the report.

100642.

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

100643.

 (a) For the purposes of compliance with paragraph (3) of subdivision (b) of Section 100640, the description of the agency’s activities shall contain the following information, regardless of whether each activity is funded exclusively by the state or federal government, for each project area and for the agency overall:

(1) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that were displaced or moved from their dwelling units as part of a redevelopment project of the agency during the previous fiscal year.

(2) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that the agency estimates will be displaced or will move from their dwellings as part of a redevelopment project of the agency during the present fiscal year and the date of adoption of a replacement housing portion of the redevelopment project plan required by Section 100635.

(3) The total number of dwelling units housing very low income households, other lower income households, and persons and families of moderate income, respectively, which have been destroyed or removed from the low- or moderate-income housing market during the previous fiscal year as part of a redevelopment project of the agency, specifying the number of those units that are not subject to the replacement requirements of Section 100635.

(4) The total numbers of agency-assisted dwelling units which were constructed, rehabilitated, acquired, or subsidized during the previous fiscal year for occupancy at an affordable housing cost by elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, specifying those units that are not currently so occupied, those units which have replaced units destroyed or removed pursuant to Section 100635, and the length of time any agency-assisted units are required to remain available at affordable costs.

(5) The total numbers of new or rehabilitated units subject to Section 100635, including separate subtotals of the number originally affordable to and currently occupied by, elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, and the length of time these units are required to remain available at affordable costs.

(6) The status and use of the separate fund established pursuant to subdivision (a) of Section 100670, including information on the use of this fund for very low income households, other lower income households, and persons and families of moderate income, respectively. If the separate fund is used to subsidize the cost of onsite or offsite improvements, then the description of the agency’s activities shall include the number of housing units affordable to persons and families of low or moderate income which have been directly benefited by the onsite or offsite improvements.

(7) The amount of excess surplus, as defined in Section 100673.5, that has accumulated in the agency’s separate fund established pursuant to subdivision (a) of Section 100670. Of the total excess surplus, the description shall also identify the amount that has accrued to the separate fund during each fiscal year. This component of the annual report shall also include any plan required to be reported by subdivision (c) of Section 100673.5.

(8) The total amount of funds expended for planning and general administrative costs.

(9) Any other information which the agency believes useful to explain its housing programs, including, but not limited to, housing for persons and families of other than low and moderate income.

(10) The total number of dwelling units for very low income households, other lower income households, and persons and families of moderate income to be constructed under the terms of an executed agreement or contract and the name and execution date of the agreement or contract. These units may only be reported for a period of two years from the execution date of the agreement or contract.

(11) The date and amount of all deposits and withdrawals of moneys deposited to and withdrawn from the separate fund established pursuant to subdivision (a) of Section 100670.

(b) As used in this section:

(1) “Elderly,” has the same meaning as specified in Section 50067 of the Health and Safety Code.

(2) “Persons and families of moderate income,” has the same meaning as specified in subdivision (b) of Section 50093 of the Health and Safety Code.

(3) “Other lower income households,” has the same meaning as “lower income households” as specified in Section 50079.5 of the Health and Safety Code, exclusive of very low income households.

(4) “Persons and families of low or moderate income,” has the same meaning as specified in Section 50093 of the Health and Safety Code.

(5) “Very low income households,” has the same meaning as specified in Section 50105 of the Health and Safety Code.

(c) Notwithstanding any other law, costs associated with preparing the report required by this section may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670.

100644.

 For the purposes of compliance with paragraph (2) of subdivision (b) of Section 100640, the fiscal statement shall contain the following information:

(a) The amount of outstanding indebtedness of the agency and each project area.

(b) The amount of tax increment property tax revenues generated in the agency and in each project area.

(c) The financial transactions report required pursuant to Section 53891.

(d) The amount of outstanding debt and the total amount of payments required to be paid on that debt for that fiscal year.

(e) The amount owed under any passthrough provision that was approved at the time of the creation of the agency, and calculated pursuant to subdivision (d) or (e) (e) or (f) of Section 100661.

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

100645.

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

(b) The department shall send a copy of the executive summary of its report to each agency for which information was reported pursuant to Section 100640 for the fiscal year covered by the report. The department shall send a copy of its report to each agency that requests a copy.

100646.

 (a) On or before April 1 of each year, the Controller shall compile a list of agencies that appear to have major audit violations as defined in this section, based on the independent financial audit reports filed with the Controller pursuant to Section 100640.

(b) On or before June 1 of each year, for each major audit violation of each agency identified pursuant to subdivision (a), the Controller shall determine if the agency has corrected the major audit violation. Before making this determination, the Controller shall consult with each affected agency that is the subject of the report. In making this determination, the Controller may request and shall receive the prompt assistance of public officials and public agencies, including, but not limited to, the affected agency subject to the report, counties, and cities. If the Controller determines that an agency has not corrected the major audit violation, the Controller shall send a list of that agency, its major violations, all relevant documents, and the affidavits required pursuant to subdivision (d) to the Attorney General for action pursuant to this section.

(c) For each agency that the Controller refers to the Attorney General pursuant to subdivision (b), the Controller shall notify the agency and the governing board that the agency was on the list sent to the Attorney General. The Controller’s notice shall inform the agency and the governing board of the duties imposed by Section 100641.

(d) Within 45 days of receiving the referral from the Controller pursuant to subdivision (b), the Attorney General shall determine whether to file an action to compel the agency’s compliance with this title. Any action filed pursuant to this section shall be commenced in the County of Sacramento. The time limit for the Attorney General to make this determination is directory and not mandatory. Any action shall be accompanied by an affidavit or affidavits, to be provided by the Controller with the referral, setting forth facts that demonstrate a likelihood of success on the merits of the claim that the agency has a major audit violation. The affidavit shall also certify that the agency and the governing board were informed not less than 10 days before the date on which the action was filed. The agency shall file a response to any action filed by the Attorney General pursuant to this section within 15 days of service.

(e) (1) On the earliest day that the business of the court will permit, but not later than 45 days after the filing of an action pursuant to this section, the court shall conduct a hearing to determine if good cause exists for believing that the agency has a major audit violation and has not corrected that violation.

(2) If the court determines that no good cause exists or that the agency had a major audit violation but corrected the major audit violation, the court shall dismiss the action.

(3) If the court determines that there is good cause for believing that the agency has a major audit violation and has not corrected that major audit violation, the court shall immediately issue an order that prohibits the agency from doing any of the following:

(A) Encumbering any funds or expending any money derived from any source except to pay the obligations designated in paragraph (1) of subdivision (e) of Section 100674.

(B) Adopting a redevelopment project plan.

(C) Amending a redevelopment project plan, except to correct the major audit violation that is the subject of the action.

(D) Issuing, selling, offering for sale, or delivering any bonds or any other evidence of indebtedness.

(E) Incurring any indebtedness.

(f) In a case that is subject to paragraph (3) of subdivision (e), the court shall also set a hearing on the matter within 60 days.

(g) If, on the basis of that subsequent hearing, the court determines that the agency has a major audit violation and has not corrected that violation, the court shall order the agency to comply with this part within 30 days, and order the agency to forfeit to the state no more than:

(1) Two thousand dollars ($2,000) in the case of an agency with a total revenue, in the prior year, of less than one hundred thousand dollars ($100,000) as reported in the Controller’s annual financial reports.

(2) Five thousand dollars ($5,000) in the case of an agency with a total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.

(3) Ten thousand dollars ($10,000) in the case of an agency with a total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.

(h) The order issued by the court pursuant to paragraph (3) of subdivision (e) shall continue in effect until the court determines that the agency has corrected the major audit violation. If the court determines that the agency has corrected the major audit violation, the court may dissolve its order issued pursuant to paragraph (3) of subdivision (e) at any time.

(i) An action filed pursuant to this section to compel an agency to comply with this part is in addition to any other remedy, and is not an exclusive means to compel compliance.

(j) As used in this section, “major audit violation” means that, for the fiscal year in question, an agency did not:

(1) File an independent financial audit report that substantially conforms to the requirements of paragraph (1) of subdivision (b) of Section 100640.

(2) File a fiscal statement that includes substantially all of the information required by Section 100644.

(3) Deposit all required tax increment revenues directly into the separate fund established pursuant to subdivision (a) of Section 100670 upon receipt, as required under Chapter 2 (commencing with Section 100670) of Part 6.

(4) Establish a separate fund as required by subdivision (a) of Section 100670.

(5) Accrue interest earned by the separate fund established pursuant to subdivision (a) of Section 100670 to that fund, as required by subdivision (b) of Section 100670.

(6) Determine that the planning and administrative costs charged to the separate fund established pursuant to subdivision (a) Section 100670 are necessary for the production, improvement, or preservation of low- and moderate-income housing, as required by subdivision (d) of Section 100670.5.

(7) Initiate development of housing on real property acquired using moneys from the separate fund established pursuant to subdivision (a) of Section 100670 or sell the property, as required by Section 100676.

100660.

 (a) Any redevelopment project plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the agency each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance resolution approving the redevelopment project plan, shall be divided as follows:

(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the agency as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the formation of the agency, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid. For the purpose of allocating taxes levied by or for any affected taxing entity or entities that did not include the territory in a redevelopment project on the effective date of the ordinance resolution 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 resolution shall be used in determining the assessed valuation of the taxable property in the project on the effective date.

(2) That portion of the levied taxes each year in excess of the amount specified in paragraph (1) shall be allocated to and when collected shall be paid into a special fund of the agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the agency to finance or refinance, in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the affected taxing entities. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the affected taxing entities as taxes on all other property are paid. When the agency ceases to exist pursuant to the adopted redevelopment project plan, all moneys thereafter received from taxes upon the taxable property in the agency shall be paid to the respective affected taxing entities as taxes on all other property are paid.

(3) That portion of the taxes in excess of the amount identified in paragraph (1) which are attributable to a tax rate levied by an affected taxing entity for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that affected taxing entity. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the affected taxing entity on or after January 1, 1989.

(b) Notwithstanding subdivision (a), where an agency’s boundaries overlap with the boundaries of any former redevelopment project area that is subject to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code, any debt or obligation of the agency shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this part, the division of taxes allocated to the agency pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.

(c) (1) The legislative body of the city or county forming the agency, or of each city that jointly formed the agency, as applicable, may choose to dedicate any portion of its net available revenue to the agency through the redevelopment project plan.

(2) For the purposes of this subdivision, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund before distribution.

(d) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the redevelopment project plan adopted pursuant to Part 5 (Commencing with Section 100650), and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the agency for redevelopment purposes.

(2) When the agency ceases to exist pursuant to the adopted redevelopment project plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.

(e) This section shall not be construed to prevent an agency from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the redevelopment project plan has been approved:

(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).

(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).

(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).

(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).

(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).

(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).

(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).

(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).

(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).

(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.

100661.

 (a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 100660 shall be allocated and paid to into a special fund held in trust for the agency by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.

(b) Not later than October 1 of each year, for each redevelopment project for which the redevelopment project plan provides for the division of taxes pursuant to Section 100660, the agency shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), a reconciliation statement consistent with subdivision (d), and a passthrough statement consistent with subdivision (e). (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 agency.

(c) (1) For each redevelopment project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:

(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:

(i) The date the loan, advance, or indebtedness was incurred or entered into.

(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.

(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.

(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.

(B) The sum of the amounts determined under clause (iii) of subparagraph (A).

(C) The sum of the amounts determined under clause (iv) of subparagraph (A).

(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).

(2) The agency may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The agency may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.

(d) For each redevelopment project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:

(1) A list of all loans, advances, and indebtedness listed on the previous year’s statement of indebtedness.

(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the agency pursuant to Section 100650. 100660. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing.

(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:

(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.

(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.

(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the agency pursuant to Section 100660.

(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the agency pursuant to Section 100660.

(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.

(4) The available revenues of the agency as of the beginning of the previous fiscal year.

(5) The amount of revenue received by the agency in the previous fiscal year pursuant to Section 100660.

(6) The amount of available revenue received by the agency in the previous fiscal year from any source other than pursuant to Section 100660.

(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).

(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).

(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).

(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.

(e) An agency shall prepare a passthrough statement that includes all of the following information:

(1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660.

(2) For each affected taxing entity that is entitled to a passthrough, the agency shall subtract from the amount described in paragraph (1) the 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 in the redevelopment project area. area 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 agency that is attributable to that affected taxing entity. 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 agency is required to make as calculated pursuant to paragraph (2).

(f) For each agency that has an override passthrough provision in the financing section of its resolution of intention, in accordance with subparagraph (H) of paragraph (4) of subdivision (a) of Section 160010, at the time of creation of that agency, the agency shall prepare an override passthrough statement that includes all of the following information:

(1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660.

(2) For each affected taxing entity that imposed an override property tax with respect to property located with the redevelopment project area, the agency shall subtract from the amount described in paragraph (1) the amount 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 affordable housing and infrastructure agency. agency during the relevant fiscal year. The agency shall include in the override passthrough statement a the following information, to be provided to the county auditor:

(A) A description of the applicable override property tax that was imposed, the imposed.

(B) The purpose for which it was imposed for, and the imposed.

(C) The entity that is entitled to receive revenue under that override property tax.

(3) A statement of the total amount of override 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 agency pursuant to Section 100660 and all cash or cash equivalents held by the agency that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the agency has listed on a statement of indebtedness. However, available revenue, for purposes of this section, shall not include the amount of any payment that the agency is required to make under a passthrough provision as described in the passthrough statements prepared pursuant to 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 100660 to a special trust fund established for each agency. The amount allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) plus the amount owed under any passthrough provision under subdivision (d) or (e), (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 agency.

(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the agency thereof.

(B) The agency shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the agency, and the amount disputed may be withheld from allocation and payment to the agency as otherwise required by subdivision (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.

(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (h).

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

(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, redevelopment agencies, and organizations of county auditors and redevelopment agencies.

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

100662.

 (a) Section 100660 fulfills the intent of Section 16 of Article XVI of the California Constitution. To further carry out the intent of Section 16 of Article XVI of the Constitution, whenever that provision requires the allocation of money between agencies such allocation shall be consistent with the intent of the people when they approved Section 16 of Article XVI of the California Constitution. Whenever money is allocated between agencies by means of a comparison of assessed values for different years, that comparison shall be based on the same assessment ratio. When there are different assessment ratios for the years compared, the assessed value shall be changed so that it is based on the same assessment ratio for the years so compared.

(b) As used in this part, the word “taxes” shall include, but without limitation, all levies on an ad valorem basis upon land or real property. However, “taxes” shall not include amounts of money deposited in a Sales and Use Tax Compensation Fund pursuant to Section 97.68 of the Revenue and Taxation Code or a Vehicle License Fee Property Tax Compensation Fund pursuant to Section 97.70 of the Revenue and Taxation Code.

100663.

 (a) This section implements and fulfills the intent of this article and of Article XIII B and Section 16 of Article XVI of the California Constitution. The allocation and payment to an agency of the portion of taxes specified in paragraph (2) of subdivision (a) of Section 100660 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for redevelopment activity, as defined in subdivision (b) of this section, shall not be deemed the receipt by an agency of proceeds of taxes levied by or on behalf of the agency within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B. The allocation and payment to an agency of this portion of taxes shall not be deemed the appropriation by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning or for purposes of Article XIII B of the California Constitution.

(b) As used in this section, “redevelopment activity” means redevelopment meeting all the following criteria:

(1) Is redevelopment as prescribed in Section 100630.

(2) Primarily benefits the project area.

(3) None of the funds are used for the purpose of paying for employee or contractual services of any local governmental agency unless these services are directly related to a redevelopment project, as described in subdivision (b) of Section 100630.

(c) Should any law hereafter enacted, without a vote of the electorate, confer taxing power upon an agency, the exercise of that power by the agency in any fiscal year shall be deemed a transfer of financial responsibility from the community sponsoring city or county to the agency for that fiscal year within the meaning of subdivision (a) of Section 3 of Article XIII B of the California Constitution.

100664.

 An agency that is allocated a portion of taxes pursuant to paragraph (2) of subdivision (a) of Section 100660 and 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 100661 in a fiscal year and shall distribute those taxes according to the following schedule: 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, to satisfy any passthrough provisions described in subparagraph (G) or (H) of paragraph (4) of subdivision (a) Section 100610 that was approved at the time of the formation of the agency, and calculated pursuant to subdivision (d) or (e) (e) or (f) of Section 100661. The amount transferred to each affected taxing agency pursuant to this subdivision shall be based on the amount calculated pursuant to subdivision (e) or (f) of Section 10661.

(b) Second, 30 percent of the amount remaining after making the allocations pursuant to subdivision (a) shall be deposited transferred from the special trust fund to the agency. The agency shall deposit the amount transferred pursuant to this subdivision into the separate fund established pursuant to Section 100670.

(c) Third, any amount remaining in the special trust fund after making the allocations pursuant to subdivisions (a) and (b) shall be transferred to the agency and available to the agency for any valid redevelopment purpose.

100670.

 (a) Not less than 30 percent of all taxes that are allocated to the agency from any affected taxing entity pursuant to Section 100660 100664 shall be deposited into a separate fund, which the agency shall establish pursuant to Section 100670.5, and the agency shall use all moneys in that fund for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost, as defined by the following sections of the Health and Safety Code: Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families unless the agency makes a finding that combining funding received under this program with other funding for the same purpose shall reduce administrative costs or expedite the construction of affordable housing. If the agency makes the finding described in the previous sentence, then (1) an agency may transfer funding from the program adopted pursuant to subdivision (e) of Section 100651 to the housing authority within the territorial jurisdiction of the local jurisdiction that created the agency or to the entity that received the housing assets of the former redevelopment agency pursuant to Section 34176 of the Health and Safety Code or to a private nonprofit housing developer, and (2) Section 34176.1 of the Health and Safety Code shall not apply to funds transferred. The agency shall spend all funds described in this subdivision within the plan area in which the funds were generated. Any person who receives funds transferred pursuant to this subdivision shall comply with all applicable provisions of this part.

(b) In carrying out the purposes of this section, the agency may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low- and moderate-income persons or families, including the following:

(1) (A) Improve real property or building sites with onsite or offsite improvements, but only if both of the following are met:

(i) The improvements are part of the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited by the improvements, and are a reasonable and fundamental component of the housing units.

(ii) The agency requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 100670.5.

(B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the agency shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the agency shall be determined by dividing the number of housing units that are affordable to low- or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project.

(2) Donate real property to private or public persons or entities.

(3) Finance insurance premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are administered by governmental entities or nonprofit organizations to provide housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, including rental properties, emergency shelters, transitional housing, or special residential care facilities.

(4) Construct buildings or structures.

(5) Acquire buildings or structures.

(6) Rehabilitate buildings or structures.

(7) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106 of the Health and Safety Code, very low income households, as defined by Section 50105 of the Health and Safety Code, lower income households, as defined by Section 50079.5 of the Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies.

(8) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges.

(9) Maintain the community’s supply of mobilehomes.

(10) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates.

(c) The agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 100635. However, this section shall not be construed as limiting in any way the requirements of that section.

(d) The agency shall use these funds inside the plan area.

(e) The Legislature finds and declares that expenditures or obligations incurred by the agency pursuant to this section shall constitute an indebtedness of the plan area.

(f) (1) (A) An action to compel compliance with the requirement of this section to deposit not less than 25 30 percent of all taxes that are allocated to the agency pursuant to Section 100660 100664 in the separate fund established pursuant to subdivision (a) shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in that separate fund.

(B) An action to compel compliance with the requirement of this section that money deposited in the separate fund established pursuant to subdivision (a) be used by the agency for purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds.

(C) An agency found to have deposited less into the separate fund established pursuant to subdivision (a) than mandated by Section 100670.5 or to have spent money from that fund for purposes other than increasing, improving, and preserving the community’s supply of low- and moderate-income housing, as mandated by this section, shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 or may do either of the following:

(i) Petition the court under Section 970.6 for repayment in installments.

(ii) Repay the portion of the judgment due to the separate fund in equal installments over a period of five years following the judgment.

(2) Repayment shall not be made from the funds required to be set aside or used for low- and moderate-income housing pursuant to this section.

(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney’s fees if included in the judgment, are due and shall be paid upon entry of judgment or order.

(4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section.

(5) This subdivision applies to actions filed on and after January 1, 2019.

(6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

100670.5.

 (a) The funds that are required by Section 100670 or 100671.5 to be used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing shall be held in a separate fund, established pursuant to subdivision (a) of Section 100670, until used.

(b) Any interest earned by the separate fund and any repayments or other income to the agency for loans, advances, or grants, of any kind from that fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the separate fund.

(c) The moneys in the separate fund established pursuant to subdivision (a) of Section 100670 shall be used to increase, improve, and preserve the supply of low- and moderate-income housing within the territorial jurisdiction of the agency.

(d) It is the intent of the Legislature that the separate fund established pursuant to subdivision (a) of Section 100670 be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The agency shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low- and moderate-income housing.

(e) (1) Planning and general administrative costs that may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 are those expenses incurred by the agency that are directly related to the programs and activities authorized under subdivision (e) of Section 100670 and are limited to the following:

(A) Costs incurred for salaries, wages, and related costs of the agency’s staff or for services provided through interagency agreements, and agreements with contractors, including usual indirect costs related thereto.

(B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project.

(2) Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project that are authorized under subdivision (e) of Section 100670 and that are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are instead project costs.

(f) (1) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670. Except to the extent that a longer period of time may be required by other provisions of law, the agency shall require that housing units subject to this subdivision shall remain available at affordable housing cost to, and occupied by, persons and families of low or moderate income and very low income and extremely low income households for the longest feasible time, but for not less than the following periods of time:

(A) Fifty-five years for rental units. However, the agency may replace rental units with equally affordable and comparable rental units in another location within the community if both of the following are met:

(i) The replacement units are available for occupancy before the displacement of any persons and families of low or moderate income residing in the units to be replaced.

(ii) The comparable replacement units are not developed with moneys from the separate fund.

(B) Forty-five years for owner-occupied units. However, the agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency’s investment of moneys from the separate fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency and deposited in the separate fund. Only the units originally assisted by the agency shall be counted towards the agency’s obligations under Section 100671.

(C) Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low-income households. However, the agency may permit sales of mutual self-help housing units before expiration of the 15-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that (i) protects the agency’s investment of moneys from the separate fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy, and (ii) ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15-year period and before 45 years after the date of recording of the covenants or restrictions required pursuant to paragraph (2), the agency recovers, at a minimum, its original principal from the separate fund from the proceeds of the sale and deposits those funds into that fund. The remainder of the excess proceeds of the sale not retained by the seller shall be allocated to the agency and deposited in the separate fund. For the purposes of this subparagraph, “mutual self-help housing unit” means an owner-occupied housing unit for which persons and families of very low and low income contribute no fewer than 500 hours of their own labor in individual or group efforts to provide a decent, safe, and sanitary ownership housing unit for themselves, their families, and others authorized to occupy that unit. This subparagraph does not preclude the agency and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions.

(2) If land on which those dwelling units are located is deleted from the plan area, the agency shall continue to require that those units remain affordable as specified in this subdivision.

(3) The agency shall require the recording in the office of the county recorder of the following documents:

(A) The covenants or restrictions implementing this subdivision for each parcel or unit of real property subject to this subdivision. The agency shall obtain and maintain a copy of the recorded covenants or restrictions for not less than the life of the covenant or restriction.

(B) For all new or substantially rehabilitated units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670, a separate document called “Notice of Affordability Restrictions on Transfer of Property,” set forth in 14-point type or larger. This document shall contain all of the following information:

(i) A recitation of the affordability covenants or restrictions. The document recorded under this subparagraph shall be recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the concurrently recorded document.

(ii) The date the covenants or restrictions expire.

(iii) The street address of the property, including, if applicable, the unit number, unless the property is used to confidentially house victims of domestic violence.

(iv) The assessor’s parcel number for the property.

(v) The legal description of the property.

(4) The agency shall require the recording of the document required under subparagraph (B) of paragraph (3) not more than 30 days after the date of recordation of the covenants or restrictions required under subparagraph (A) of paragraph (3).

(5) The county recorder shall index the documents required to be recorded under paragraph (3) by the agency and current owner.

(6) Notwithstanding Section 27383, a county recorder may charge all authorized recording fees to any party, including a public agency, for recording the document specified in subparagraph (B) of paragraph (3).

(7) Notwithstanding any other law, the covenants or restrictions implementing this subdivision shall run with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:

(A) The agency.

(B) Any affected taxing entity.

(C) A resident of a unit subject to this subdivision.

(D) A residents’ association with members who reside in units subject to this subdivision.

(E) A former resident of a unit subject to this subdivision who last resided in that unit.

(F) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this subdivision, if the applicant conforms to all of the following:

(i) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

(ii) Is able and willing to occupy that particular unit.

(iii) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this subdivision.

(G) A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this subdivision.

(8) A dwelling unit shall not be counted as satisfying the affordable housing requirements of this title, unless covenants for that dwelling unit are recorded in compliance with subparagraph (A) of paragraph (3).

(9) Failure to comply with the requirements of subparagraph (B) of paragraph (3) shall not invalidate any covenants or restrictions recorded pursuant to subparagraph (A) of paragraph (3).

(g) “Housing,” as used in this section, includes residential hotels, as defined in subdivision (k) of Section 37912 of the Health and Safety Code. The definitions of “lower income households,” “very low income households,” and “extremely low income households” in Sections 50079.5, 50105, and 50106 of the Health and Safety Code shall apply to this section. “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration.

(h) “Increasing, improving, and preserving the community’s supply of low- and moderate-income housing,” as used in this section and in Section 100670, includes the preservation of rental housing units assisted by federal, state, or local government on the condition that units remain affordable to, and occupied by, low- and moderate-income households, including extremely low and very low income households, for the longest feasible time, but not less than 55 years, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the agency shall require that the units remain affordable to, and occupied by, persons and families of low- and moderate-income and extremely low and very low income households for the longest feasible time, but not less than 55 years.

(i) Funds from the separate fund established pursuant to subdivision (a) of Section 100670 shall not be used to the extent that other reasonable means of private or commercial financing of the new or substantially rehabilitated units at the same level of affordability and quantity are reasonably available to the agency or to the owner of the units. Before the expenditure of funds from the separate fund for new or substantially rehabilitated housing units, where those funds will exceed 50 percent of the cost of producing the units, the agency shall find, based on substantial evidence, that the use of the funds is necessary because the agency or owner of the units has made a good faith attempt but has been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity.

100671.

 (a) Except as specified in subdivision (d), each agency shall expend over each 10-year period of the redevelopment project plan the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed that each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584. In determining compliance with this obligation, the agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law.

(b) Each agency shall expend over the duration of each plan, the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under 65 years of age bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau.

(c) An agency that has deposited in the separate fund established pursuant to subdivision (a) of Section 100670 over the first five years of the period of a plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section.

(d) For the purposes of this section, “locally controlled” means government assistance if the city or county that proposed formation of the agency pursuant to Section 100610, one or more of the cities that jointly proposed formation of the agency pursuant to Section 100610.5, or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, the Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, the Home Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges.

100671.5.

 Every redevelopment project plan shall contain both of the following:

(a) A provision that requires, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project, the agency to, within two years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs, as defined by Section 50052.5 of the Health and Safety Code, within the territorial jurisdiction of the agency, in accordance with all of the provisions of Section 100635.

(b) A provision that prohibits the number of housing units occupied by extremely low, very low-, and low-income households, including the number of bedrooms in those units, at the time the plan is adopted, from being reduced in the plan area during the effective period of the plan.

100672.

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

100672.5.

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

100673.

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

100673.5.

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

(b) The agency shall separately account for any excess surplus accumulated each year either as part of or in addition to the separate fund established pursuant to subdivision (a) of Section 100670.

(c) If the agency develops a plan for expenditure of excess surplus or other moneys in the separate fund established pursuant to subdivision (a) of Section 100670, a copy of that plan and any amendments to that plan shall be included in the agency’s annual report pursuant to Section 100640.

100674.

 (a) (1) Upon failure of the agency to expend or encumber excess surplus in the separate fund established pursuant to subdivision (a) of Section 100670, within one year from the date the moneys become excess surplus, as defined in paragraph (1) of subdivision (g), the agency shall do either of the following:

(A) Disburse voluntarily its excess surplus to the county housing authority, a private nonprofit housing developer, or to another public agency exercising housing development powers within the territorial jurisdiction of the agency in accordance with subdivision (b).

(B) Expend or encumber its excess surplus within two additional years.

(2) If an agency, after three years has elapsed from the date that the moneys become excess surplus, has not expended or encumbered its excess surplus, the agency shall be subject to sanctions pursuant to subdivision (e), until the agency has expended or encumbered its excess surplus plus an additional amount, equal to 50 percent of the amount of the excess surplus that remains at the end of the three-year period. The additional expenditure shall not be from the agency’s separate fund established pursuant to subdivision (a) of Section 100670, but shall be used in a manner that meets all requirements for expenditures from that fund.

(b) The housing authority or other public agency to which the money is transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the agency under this part, and for that purpose may exercise all of the powers of a housing authority under Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code to an extent not inconsistent with these limitations.

(c) Notwithstanding Section 34209 of the Health and Safety Code or any other law, for the purpose of accepting a transfer of, and using, moneys pursuant to this section, the housing authority of a county or other public agency may exercise its powers within the territorial jurisdiction of an agency located in that county.

(d) The amount of excess surplus that shall be transferred to the housing authority or other public agency because of a failure of the agency to expend or encumber excess surplus within one year shall be the amount of the excess surplus that is not so expended or encumbered. The housing authority or other public agency to which the moneys are transferred shall expend or encumber these moneys for authorized purposes not later than three years after the date these moneys were transferred from the separate fund established pursuant to subdivision (a).

(e) (1) Until a time when the agency has expended or encumbered excess surplus moneys pursuant to subdivision (a), the agency shall be prohibited from encumbering any funds or expending any moneys derived from any source, except that the agency may encumber funds and expend moneys to pay the following obligations, if any, that were incurred by the agency before three years from the date the moneys became excess surplus:

(A) Bonds, notes, interim certificates, debentures, or other obligations issued by an agency, whether funded, refunded, assumed, or otherwise, pursuant to Part 7 (commencing with Section 100680).

(B) Loans or moneys advanced to the agency, including, but not limited to, loans from federal, state, or local agencies, or a private entity.

(C) Contractual obligations which, if breached, could subject the agency to damages or other liabilities or remedies.

(D) Indebtedness incurred pursuant to Section 100670 or 100672.

(E) An amount, to be expended for the operation and administration of the agency, that may not exceed 75 percent of the amount spent for those purposes in the preceding fiscal year.

(2) This subdivision shall not be construed to prohibit the expenditure of excess surplus funds or other funds to meet the requirement in paragraph (2) of subdivision (a) that the agency spend or encumber excess surplus funds, plus an amount equal to 50 percent of excess surplus, before spending or encumbering funds for any other purpose.

(f) This section shall not be construed to limit any authority that an agency may have under other provisions of this title to contract with a housing authority, private nonprofit housing developer, or other public agency exercising housing developer powers, for increasing or improving the community’s supply of low- and moderate-income housing.

(g) For purposes of this section:

(1) “Excess surplus” means any unexpended and unencumbered amount in an agency’s separate fund established pursuant to subdivision (a) of Section 100670 that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the separate fund pursuant to Sections 100670 and 100672 during the agency’s preceding four fiscal years. The first fiscal year to be included in this computation is the 2019–20 fiscal year, and the first date on which an excess surplus may exist is July 1, 2024.

(2) Moneys shall be deemed encumbered if committed pursuant to a legally enforceable contract or agreement for expenditure for purposes specified in Sections 100670 and 100670.5.

(3) (A) For purposes of determining whether an excess surplus exists, it is the intent of the Legislature to give credit to agencies which convey land for less than fair market value, on which low- and moderate-income housing is built or is to be built if at least 49 percent of the units developed on the land are available at an affordable housing cost to lower income households for at least the time specified in subdivision (f) of Section 100670.5, and otherwise comply with all of the provisions of this division applicable to expenditures of moneys from a low- and moderate-income housing fund established pursuant to Section 100670.5. Therefore, for the sole purpose of determining the amount, if any, of an excess surplus, an agency may make the following calculation: if an agency sells, leases, or grants land acquired with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 for an amount which is below fair market value, and if at least 49 percent of the units constructed or rehabilitated on the land are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code, the difference between the fair market value of the land and the amount the agency receives may be subtracted from the amount of moneys in an agency’s separate fund.

(B) If taxes that are deposited in the separate fund are used as security for bonds or other indebtedness, the proceeds of the bonds or other indebtedness, and income and expenditures related to those proceeds, shall not be counted in determining whether an excess surplus exists. The unspent portion of the proceeds of bonds or other indebtedness, and income related thereto, shall be excluded from the calculation of the unexpended and unencumbered amount in the separate fund when determining whether an excess surplus exists.

(C) This subdivision shall not be construed to restrict the authority of an agency provided in any other provision of this title to expend funds from the separate fund established pursuant to subdivision (a) of Section 100670.

(D) The Department of Housing and Community Development shall develop and periodically revise the methodology to be used in the calculation of excess surplus as required by this section. The Director of Housing and Community Development shall appoint an advisory committee to advise in the development of this methodology. The advisory committee shall include department staff, affordable housing advocates, and representatives of the housing successors of former redevelopment agencies, the League of California Cities, the California Society of Certified Public Accountants, the Controller, and any other authorities or persons interested in the field that the director deems necessary and appropriate.

(h) Communities in which an agency has disbursed excess surplus funds pursuant to this section shall not disapprove a low- or moderate-income housing project funded in whole or in part by the excess surplus funds if the project is consistent with applicable building codes and the land use designation specified in any element of the general plan as it existed on the date the application was deemed complete. A local agency may require compliance with local development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in housing elements of the community pursuant to subdivision (b) of Section 65583.

100674.5.

 (a) Notwithstanding Sections 50079.5, 50093, and 50105 of the Health and Safety Code, for purposes of an agency providing assistance to mortgagors participating in a homeownership residential mortgage revenue bond program pursuant to Section 33750 of the Health and Safety Code, or a home financing program pursuant to Section 52020 of the Health and Safety Code, or a California Housing Finance Agency home financing program, “area median income” means the highest of the following:

(1) Statewide median household income.

(2) Countywide median household income.

(3) Median family income for the area, as determined by the United States Department of Housing and Urban Development with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area.

(b) To the extent that any portion of the separate fund established pursuant to subdivision (a) of Section 100670 is expended by an agency to provide assistance to mortgagors participating in programs whose income exceeds that of persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, the agency shall, within two years, expend or enter into a legally enforceable agreement to expend twice that sum exclusively to increase and improve the community’s supply of housing available at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code, of which at least 50 percent shall be very low income households, as defined in Section 50105 of the Health and Safety Code.

(c) In addition to the requirements of subdivision (c) of Section 33413 of the Health and Safety Code, the agency shall require that the lower and very low income dwelling units developed pursuant to this subdivision remain available at an affordable housing cost to lower and very low income households for at least 45 years, except as to dwelling units developed with the assistance of federal or state subsidy programs which terminate in a shorter period and cannot be extended or renewed.

(d) The agency shall include within the report required by Section 100640 information with respect to compliance by the agency with the requirements of this section.

100675.

 The covenants or restrictions imposed by the agency pursuant to subdivision (f) of Section 100670.5 may be subordinated under any of the following alternatives:

(a) To a lien, encumbrance, or regulatory agreement under a federal or state program when a federal or state agency is providing financing, refinancing, or other assistance to the housing units or parcels, if the federal or state agency refuses to consent to the seniority of the agency’s covenant or restriction on the basis that it is required to maintain its lien, encumbrance, or regulatory agreement or restrictions due to statutory or regulatory requirements, adopted or approved policies, or other guidelines pertaining to the financing, refinancing, or other assistance of the housing units or parcels.

(b) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of owner-occupied units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available.

(c) To an existing lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units, where the agency’s funds are utilized for rehabilitation of the rental units.

(d) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available, and the agency obtains written commitments reasonably designed to protect the agency’s investment in the event of default, including, but not limited to, any of the following:

(1) A right of the agency to cure a default on the loan.

(2) A right of the agency to negotiate with the lender after notice of default from the lender.

(3) An agreement that if before foreclosure of the loan, the agency takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to the agency.

(4) A right of the agency to purchase property from the owner at any time after a default on the loan.

100675.5.

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

100676.

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