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SB-679 Los Angeles County: affordable housing.(2021-2022)

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Date Published: 04/19/2021 09:00 PM
SB679:v95#DOCUMENT

Amended  IN  Senate  April 19, 2021
Amended  IN  Senate  April 05, 2021
Amended  IN  Senate  March 22, 2021
Amended  IN  Senate  March 09, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 679


Introduced by Senator Kamlager

February 19, 2021


An act to add Title 6.9 (commencing with Section 64700) to the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 679, as amended, Kamlager. Los Angeles County: housing development: financing. affordable housing.
Existing law provides for the establishment of various special districts that may support and finance housing development, including affordable housing special beneficiary districts that are authorized to promote affordable housing development with certain property tax revenues that a city or county would otherwise be entitled to receive.
Existing law, the San Francisco Bay Area Regional Housing Finance Act, establishes the Bay Area Housing Finance Authority to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, as defined, and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production.
This bill, the Los Angeles County Regional Housing Finance Act, would establish the Los Angeles County Affordable Housing Solutions Agency and would state that the agency’s purpose is to increase affordable housing in Los Angeles County by providing for significantly enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing production, as specified. The bill would require a board composed of 13 voting members from Los Angeles County, as specified, to govern the agency. The bill would require the board to provide for regular audits of the agency’s accounts and records, including an independent financial and performance audit for bonds secured by ad valorem property taxes, and provide for financial reports. The bill would include findings that the provisions proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities within Los Angeles County, including charter cities.

The bill would authorize the agency to, among other things, raise and allocate new revenue, incur and issue bonds and other indebtedness, and place on the ballot in Los Angeles County and its incorporated cities funding measures, in accordance with applicable constitutional requirements, to raise and allocate funds to the county, the cities in the county, and other public agencies and affordable housing projects within its jurisdiction for purposes of preserving and enhancing existing housing, funding renter protection programs, and financing new construction of housing developments, as specified. In this regard, the bill would authorize the entity, among other things, to impose various special taxes, including a parcel tax and a documentary transfer tax, within its jurisdiction, and to issue general obligation bonds secured by the levy of ad valorem property taxes, in accordance with applicable constitutional requirements, and revenue bonds payable from the revenues of the agency, other than revenues generated from ad valorem property taxes. The bill would require that revenue generated by the agency pursuant to these provisions be used for specified housing purposes and require the agency to distribute those funds in accordance with specified requirements, including the adoption of a regional expenditure plan by the board.

Existing law defines “public works,” for the purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.

This bill would require that any construction project receiving funding under these provisions constitute a public work for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for Los Angeles County.

By adding to the duties of local officials with respect to elections procedures for revenue measures on behalf of the agency, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YESNO  

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


SECTION 1.

 Title 6.9 (commencing with Section 64700) is added to the Government Code, to read:

TITLE 6.9. Los Angeles County Affordable Housing Solutions Agency

PART 1. Formation of the Los Angeles County Affordable Housing Solutions Agency and General PowersGeneral Provisions

1.General Provisions

64700.
 This title shall be known, and may be cited, as the Los Angeles County Regional Housing Finance Act.

64701.
 The Legislature finds and declares the following:
(a) Los Angeles County is facing the most significant housing crisis in the region’s history, as tens of thousands of residents are living in overcrowded housing, being pushed out of their homes, spending hours driving every day to and from work, one paycheck away from an eviction, or experiencing homelessness.
(b) The impacts of Los Angeles County’s affordable housing crisis are disproportionately being borne by people of color, including Black, Latino, Asian and Pacific Islander Americans, and low-income residents.
(c) Women of color face an even greater burden due to systemic barriers, including wage discrimination, unsafe transit options, and lack of access to affordable childcare.
(d) Los Angeles County faces this crisis because, as a region, it has failed to produce enough housing at all income levels, particularly at the lowest levels of affordability, preserve affordable housing, protect existing residents from displacement, and address the housing issue throughout the county in a comprehensive fashion.
(e) Housing costs have dramatically outpaced wage growth. An average two-bedroom apartment in Los Angeles County requires a household income of $41.96 forty-one dollars and ninety-six ($41.96) per hour.
(f) The housing crisis in Los Angeles County is regional in nature and too great to be addressed individually by the county’s 88 incorporated cities on their own, especially in the context of ambitious Regional Housing Needs Assessments goals—341,000 affordable units in the sixth cycle, which the county as a whole in is on track to produce 25,000.
(g) Seventy-nine percent of extremely low income households in Los Angeles County are paying more than half of their income on housing costs compared to just 3 percent of moderate income households.
(h) However, the current process is anything but regional; instead each city and the county is each responsible for their own decisions around housing financing and renter protection programs.
(i) Based on the most recent regional housing needs assessment cycle, Los Angeles County faces an annual gap of 39,375 units between what is being created and what is needed to achieve the sixth cycle affordable housing countywide goals.
(j) A multistakeholder countywide agency is necessary to help address the affordable housing crisis in Los Angeles County by delivering resources and technical assistance at a regional scale, including:
(1) Generating new dedicated regional funding for critical capital and other supports for affordable housing developments across Los Angeles County.
(2) Providing staff support to local jurisdictions that require capacity or technical assistance to expedite the preservation and production of housing.
(3) Funding renter programs and services, such as emergency rental assistance and access to counsel, thereby relieving local jurisdictions of this cost and responsibility and supporting a unified countywide approach.
(4) Assembling parcels, acquiring land, and supporting community land trusts for the purpose of building affordable housing.
(5) Monitoring and reporting on progress at a regional scale.

64702.
 For purposes of this title:
(a) “Agency” means the Los Angeles County Affordable Housing Solutions Agency established pursuant to Section 64710.
(b) “Board” means the governing board of the Los Angeles County Affordable Housing Solutions Agency.
(c)  “Los Angeles County” means the entire area within the territorial boundary of the County of Los Angeles.

64703.
 The Legislature finds and declares that providing a regional financing mechanism for affordable housing development, preservation, and renter protections in Los Angeles County, as described in this section and Section 64701, is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this title applies to all cities within the County of Los Angeles, including charter cities.

2. The Los Angeles County Affordable Housing Solutions Agency and Governing Board

64710.
 (a) The Los Angeles County Affordable Housing Solutions Agency is hereby established with jurisdiction extending throughout Los Angeles County.
(b) The formation and jurisdictional boundaries of the agency are not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5).
(c) The agency’s purpose is to increase affordable housing in Los Angeles County by providing for significantly enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing production of 100 percent affordable housing for households earning 80 percent of the appropriate area median income or below, with financing priority on the lowest levels of affordability.
(d) It is the intent of the Legislature that the agency complement and supplement existing efforts by cities, counties, districts, and other local, regional, and state entities, related to addressing the goals described in this title.

64711.
 (a) The agency shall be governed by a board composed of 13 voting members from Los Angeles County, representative of the diverse cities and unincorporated communities across the county.
(b) The board shall select from its members a chair, who shall preside over meetings of the board, and a vice chair from its members, who shall preside in the absence of the chair.
(c) (1) A member of the board may receive a per diem for each board meeting that the member attends. The board shall set the amount of that per diem for a member’s attendance, but that amount shall not exceed one hundred dollars ($100) per meeting. A member shall not receive a payment for more than two meetings in a calendar month.
(2) A board member may waive a payment of per diem authorized by this subdivision.

(d)The board shall review and approve a regional expenditure plan pursuant to subdivision (e) of Section 64830 and projects authorized by this chapter before review, approval, and allocation by the agency.

(e)

(d) (1) The board shall form an advisory committee composed of nine representatives with knowledge and experience in the areas of affordable housing finance and development, tenant protection, and housing preservation. The advisory committee shall assist in the development of funding guidelines and the overall implementation of the program.
(2) Consistent with the provisions of this chapter, the advisory committee shall provide consultation and make recommendations to the board. The advisory committee shall meet as necessary to fulfill their roles and responsibilities.

(f)In addition to the requirements under subdivision (g), the agency shall engage in public participation processes, which shall include the following:

(1)Outreach efforts to encourage the active participation of a broad range of stakeholder groups in the planning process, including, but not limited to, affordable housing and homelessness advocates, nonprofit developers, neighborhood and community groups, environmental advocates, equity organizations, home builder representatives, and business organizations.

(2)Holding at least one public meeting regarding any relevant plan or proposals being considered by the agency. The agency shall hold any such meeting at a time and a location convenient for members of the public. The agency shall place each plan or proposal under consideration on a meeting agenda of the board for discussion at least 30 days before the board takes action.

(3)A process for enabling members of the public to provide a single request to receive agency notices, information, and updates.

(g)

(e) (1) Members of the board are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5.
(2) The agency shall be subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000.)). 81000)).

64712.
 A member of the board shall exercise independent judgment on behalf of the interests of the residents, the property owners, and the public in furthering the intent and purposes of this title.

64713.
 (a) The board shall hold its first meeting at a time and place within Los Angeles County fixed by the Los Angeles County Clerk, as a ministerial duty.
(b) After the first meeting described in subdivision (a), the board shall hold meetings at times and places determined by the board.

64714.

(a)The board may make and enforce rules and regulations necessary for governing the board, the preservation of order, and the transaction of business.

(b)In exercising the powers and duties conferred on the agency by this title, the board may act by ordinance or resolution.

64715.

Five years after the voters approve an initial ballot measure pursuant to Section 64721, the board shall review the implementation of the measure. The review shall include the following:

(a)An analysis of the expenditures to date.

(b)The number of affordable housing units produced and preserved at different household income levels.

(c)The tenant protection services provided, and the role of the agency.

3.Powers of the Los Angeles County Affordable Housing Solutions Agency
64720.

In implementing this title, the agency may do all of the following:

(a)Place on the ballot in Los Angeles County and its incorporated cities funding measures, in accordance with applicable constitutional requirements, to raise and allocate funds to the County of Los Angeles, the cities in Los Angeles County, and other public agencies and affordable housing projects within its jurisdiction for purposes of preserving and enhancing existing housing, funding renter protection programs, and financing new construction of housing developments that are 100 percent affordable to households earning 80 percent of the relevant area median income or below, with a priority on the lowest levels of affordability.

(b)Apply for and receive grants from federal and state agencies.

(c)Incur and issue indebtedness and assess fees on any debt issuance and loan products for reinvestment of fees and loan repayments in affordable housing production and preservation.

(d)Incur debt and issue bonds and otherwise incur liabilities or obligations in accordance with Article 2 (commencing with Section 64820) of Chapter 2 of Part 2.

(e)Solicit and accept gifts, fees, grants, and other allocations from public and private entities.

(f)Deposit or invest moneys of the agency in banks or financial institutions in the state.

(g)Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction.

(h)Engage counsel and other professional services.

(i)Enter into and perform all necessary contracts.

(j)Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).

(k)Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties.

(l)Assemble parcels and lease, purchase, or otherwise acquire land for housing development.

(m)Collect data on housing production and monitor progress on meeting regional and state housing goals.

(n)Provide support and technical assistance to local governments in relation to producing and preserving affordable housing.

(o)Provide public information about the agency’s housing programs and policies.

(p)Act in compliance with the Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584)) of Chapter 5 of Division 7 of Title 1.

(q)Allocate and deploy capital and generated fees or income in the form of grants, loans, equity, interest rate subsidies, and other financing tools to the cities and other public agencies within the Los Angeles County area, and private affordable housing developers to finance affordable housing development, preserve and enhance existing affordable housing, and fund tenant protection programs, pursuant to this title, in accordance with applicable constitutional requirements.

(r)Collaborate with staff employed by the Los Angeles Metropolitan Transportation Authority with shared planning and services.

(s)Any other express or implied powers necessary to carry out the intent and purposes of this title.

64720.5.

(a)Any construction project receiving funding or financing from the agency, or from a measure proposed by the agency pursuant to subdivision (a) of Section 64720, or from a joint powers authority of which the agency is a member, shall constitute a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(b)As a condition of providing funding or financing for a construction project, the agency and any joint powers authority of which the agency is a member, shall obtain an enforceable commitment from the recipient that all contractors and subcontractors at every tier performing work on the project shall use a skilled and trained workforce to perform all work on the project that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

(c)A public agency that uses funding from the agency, or from a measure proposed by the agency pursuant to subdivision (a) of Section 64720, to provide funding or financing for a construction project, shall require the developer or direct contractor to provide an enforceable commitment to the public agency that all contractors and subcontractors at every tier performing work on the project shall use a skilled and trained workforce to perform all work on the project that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

(d)Subdivisions (b) and (c) shall not apply if all contractors and subcontractors at every tier performing work on the project are bound by a project labor agreement to use a skilled and trained workforce to perform the work. For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

64721.

(a)If the agency proposes a measure pursuant to subdivision (a) of Section 64720 that will generate revenues, the board of supervisors of Los Angeles County shall call a special election on the measure. The special election shall be consolidated with the next regularly scheduled statewide election and the measure shall be submitted to the voters of Los Angeles County.

(b)(1)For the purpose of placement of a measure on the ballot, the agency is a district, as defined in Section 317 of the Elections Code. Except as otherwise provided in this section, a measure proposed by the agency that requires voter approval shall be submitted to the voters of Los Angeles County, as determined by the agency, in accordance with the provisions of the Elections Code applicable to districts, including the provisions of Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code.

(2)Because the agency has no revenues as of the operative date of this section, the appropriations limit for the agency shall be originally established based on receipts from the initial measure that would generate revenues for the agency pursuant to subdivision (a), and that establishment of an appropriations limit shall not be deemed a change in an appropriations limit for purposes of Section 4 of Article XIII B of the California Constitution.

(c)(1)Notwithstanding Section 10520 of the Elections Code, for any election at which the agency proposes a measure pursuant to subdivision (a) of Section 64720 that would generate revenues, the agency shall reimburse the County of Los Angeles for the incremental costs incurred by the county elections official related to submitting the measure to the voters with any eligible funds transferred to the agency.

(2)For purposes of this subdivision, “incremental costs” include all of the following:

(A)The cost to prepare, review, and revise the impartial analysis of the measure.

(B)The cost to prepare a translation of ballot materials into a language other than English by the county.

(C)The additional costs that exceed the costs incurred for other election races or ballot measures, if any, appearing on the same ballot in Los Angeles County, including both of the following:

(i)The printing and mailing of ballot materials.

(ii)The canvass of the vote regarding the measure pursuant to Division 15 (commencing with Section 15000) of the Elections Code.

(d)Notwithstanding Section 9313 of the Elections Code, the legal counsel for the board shall prepare an impartial analysis of the measure. The impartial analysis prepared by the legal counsel for the board shall be subject to review and revision by the county counsel.

(e)The summary of the regional expenditure plan shall be prepared by the board and include all of the following:

(1)A description of the purpose and goals of the measure.

(2)A description of the categories of eligible expenditures to be funded.

(3)An estimate of the number of affordable housing units to be built or preserved by household income category served, and a description of any specific projects planned to be funded.

(4)An estimate of minimum funding levels to be provided to different expenditure categories.

(5)An overview of decisionmaking and oversight provisions applicable to the funds.

64722.

The board and the agency shall not do either of the following:

(a)Regulate or enforce local land use decisions.

(b)Acquire property by eminent domain.

4.Financial Provisions
64730.

The board shall provide for regular audits of the agency’s accounts and records, shall maintain accounting records, and shall report accounting transactions in accordance with generally accepted accounting principles adopted by the Governmental Accounting Standards Board of the Financial Accounting Foundation for both public reporting purposes and for reporting of activities to the Controller.

64731.

The board shall provide for annual financial reports. The board shall make copies of the annual financial reports available to the public.

2.Financing Activities of the Los Angeles County Affordable Housing Solutions Agency
1.General Provisions
64800.

(a)The agency may raise and allocate new revenue through all of the following funding mechanisms:

(1)Special taxes, subject to voter approval, as provided in Article 1 (commencing with Section 64810) of Chapter 2, as follows:

(A)A parcel tax, as provided in Section 64810.

(B)A gross receipts business license tax, as provided in Section 64811.

(C)A documentary transfer tax, as provided in Section 64813.

(3)The issuance of bonds, including, but not limited to, general obligation bonds, revenue bonds, mortgage revenue bonds, and private activity bonds as provided in Article 2 (commencing with Section 64820) of Chapter 2.

(b)It is the intent of the Legislature that the funding measures authorized by this subdivision distribute the responsibility for addressing the affordable housing needs of the region across commercial developers, taxpayers, and property owners within the region.

2.Revenue
1.Special Taxes
64810.

(a)Subject to Section 4 of Article XIII A of the California Constitution, and approval by the board before the agency takes action to approve the placement of a measure on the ballot, the agency may impose, by resolution, a parcel tax within the Los Angeles County area pursuant to the procedures established in Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title 5, Section 64721, and any other applicable procedures provided by law.

(b)For purposes of this section, “parcel tax” means a special tax imposed upon a parcel of real property at a rate that is determined without regard to that property’s value and that applies uniformly to all taxpayers or all real property within the jurisdiction of the local government. “Parcel tax” does not include a tax imposed on a particular class of property or taxpayers.

(c)The agency shall provide notice of any parcel tax imposed pursuant to this section in the manner specified in Section 54930.

(d)Thereafter the amount of the lien shall be collected at the same time, and in the same manner, as ordinary city taxes are collected, and shall be subject to the same penalties and interest and to the same procedure under foreclosure and sale in case of delinquency as provided for ordinary city taxes. All laws applicable to the levy, collection, and enforcement of city taxes and county taxes are hereby made applicable to the special assessment taxes.

64811.

(a)(1) The agency may impose, subject to approval by the board before the agency takes action to approve the placement of a measure on the ballot, by resolution, a special tax, measured by gross receipts, for the privilege of engaging in any kind of lawful business transacted in the Los Angeles County area pursuant to the procedures established in Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title 5, Section 64721, and any other applicable procedures provided by law.

(2)The resolution imposing a special tax pursuant to this subdivision may provide for the following:

(A)Variable rates based on the business sector of each person subject to the tax.

(B)Exemptions for small businesses.

(C)Collection of the tax by suit or otherwise.

(b)If the agency levies a special tax pursuant to subdivision (a) upon a business operating both within and outside the agency’s taxing jurisdiction, the agency shall levy the tax so that the measure of tax fairly reflects that proportion of the taxed activity actually carried on within the taxing jurisdiction.

(c)A special tax levied pursuant to subdivision (a) shall not apply to any nonprofit organization that is exempted from taxes by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or leader of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code or a successor to that section.

64812.

Taxes levied pursuant to Section 64811 shall be collected in the following manner:

(a)County tax collectors shall be responsible for collecting the tax revenue.

(b)The county levying the tax shall prepare a tax return.

(c)The county shall create policies and procedures necessary to collect tax revenue, including, but not limited to, policies that achieve both of the following:

(1)Ensure adequate enforcement of taxes levied pursuant to Section 64811.

(2)Provide subjects of a tax with an opportunity to appeal the amount of tax owed.

64813.

Subject to Section 4 of Article XIII A of the California Constitution, and approval by the board before the agency takes action to approve the placement of a measure on the ballot, the agency may impose, by resolution, a documentary transfer tax within the Los Angeles County area, pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code, and any other applicable procedures provided by law.

64814.

All special taxes levied pursuant to this article shall be administered in the following manner:

(a)Taxes collected shall be deposited in a separate fund, which shall be established in the treasury of the county and used only as prescribed by this section.

(b)The county shall transfer moneys intended for regional projects pursuant to Section 64830 from the fund to the agency periodically as promptly as feasible. The transmittals shall be made at least twice in each calendar quarter.

2.Bonds
64820.

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

64821.

(a)The agency may incur general obligation bonded indebtedness, secured by the levy of ad valorem property taxes, pursuant to paragraph (2) of subdivision (b) of Section 1 of Article XIII A of the California Constitution, for the acquisition or improvement of real property or for funding or refunding of any outstanding indebtedness in connection with the acquisition or improvement of that real property.

(b)For purposes of incurring general obligation bonded indebtedness pursuant to this subdivision, the agency shall comply with the requirements of Chapter 3 (commencing with Section 53400) of Part 1 of Division 2 of Title 5.

64822.

(a)(1)For purposes of this section, “agency revenues” includes, without limitation, revenues generated by any special tax, fee, or charge imposed by the agency, other than ad valorem property taxes.

(2)The agency may issue revenue bonds, payable from agency revenues, in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5), for the purposes set forth in this title and in any resolution adopted by the agency, or measure adopted by voters, in connection with the generation of agency revenues or imposition of those special taxes, fees, or other charges. For purposes of issuing revenue bonds pursuant to this section, the special taxes, fees, or other charges described in the previous sentence shall constitute an “enterprise” within the meaning of Section 54309.

(3)To exercise the powers described in this section, the agency shall ensure that any regional expenditure plan summary prepared pursuant to Section 64721 related to voter approval of a special tax under this title notifies the voters that proceeds from the special tax may be used as payment for revenue bonds.

(4)For purposes of this section, the agency shall be deemed to be a local agency within the meaning of Section 54307. Article 3 (commencing with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 and the limitations on the rate of interest set forth in subdivision (b) of Section 54402 do not apply to the issuance and sale of bonds pursuant to this section. Instead, the agency shall authorize the issuance of bonds by resolution at any time, and from time to time, which shall specify all of the following:

(A)The purposes for which the bonds are to be issued.

(B)The maximum principal amount of the bonds.

(C)The maximum term for the bonds.

(D)(i)The maximum rate of interest to be payable upon the bonds, which shall not exceed the maximum rate permitted for bonds of the agency by Section 53531 or any other applicable provisions of law.

(ii)In the case of bonds bearing a variable interest rate, the variable rate shall not, on any day, exceed the maximum rate permitted for bonds of the agency by Section 53531 or any other applicable provisions of law. However, the variable interest rate may, on any day, exceed that maximum rate in clause (i), if the interest paid on the bonds from their date of original issuance to that day does not exceed the total interest that would have been permitted if the bonds had borne interest at all times from the date of issuance to that day at the maximum rate permitted from time to time by Section 53531 or any other applicable provisions of law.

(E)The maximum original issue premium or discount on the sale of the bonds.

(F)The denomination or denominations of the revenue bonds, which shall not be less than five thousand dollars ($5,000).

(b)The resolution may also contain any other matters authorized by this chapter or any other law.

(c)The revenue bonds may be sold at public or private sale or on a negotiated sale basis and at the prices, above or below par, as determined by the board.

(d)The revenue bonds, or each series thereof, shall be dated and numbered consecutively and shall be signed by the executive director of the agency, whose signature may be printed, lithographed, or mechanically reproduced. If any officer whose signature appears on the revenue bonds ceases to be that officer before the delivery of the bonds, the officer’s signature is as effective as if the officer had remained in office.

(e)This section provides a complete, additional, and alternative method or the issuance of revenue bonds by the agency. An issuance does not need to comply with the procedures specified elsewhere in this article or other laws, but shall instead be issued in accordance with the procedures specified in this article.

64822.5.

The agency may issue mortgage revenue bonds pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, and other applicable law.

64822.7.

The agency may issue private activity bonds pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2, and other applicable law.

64823.

(a)The agency or any person executing the bonds issued pursuant to this title shall not be personally liable on the bonds by reason of their issuance.

(b)The bonds and other obligations of the agency are not a debt of any city or Los Angeles County, or any of its affiliated entities, or of the state or of any of its political subdivisions, other than the agency, and neither a city or county nor the state or any of its political subdivisions, other than the agency, shall be liable on the bonds, and the bonds or obligations shall be payable exclusively from funds or properties of the agency, as specified in the applicable bond or other security document. Bonds issued pursuant to this title shall contain a statement to this effect on their face.

(c)If the signature of any member of the agency or staff member of the agency appears on bonds issued pursuant to this title, and that individual ceases to be a member of the agency or staff member of the agency before delivery of the bonds, that member’s signature shall be as effective as if the member had remained in office.

64824.

(a)Every two years after the issuance of bonds pursuant to this section, the agency shall contract for an independent financial and performance audit. The audit shall be conducted according to guidelines established by the Controller. A copy of the completed audit shall be provided to the Controller, the Director of Finance, and the Joint Legislative Budget Committee.

(b)Upon the request of the Governor or the Legislature, the Bureau of State Audits may conduct a financial and performance audit of the agency. The results of any audit shall be provided to the board, the Controller, the Director of Finance, and the Joint Legislative Budget Committee.

64825.

Bonds issued pursuant to this article are fully negotiable.

64826.

Any action to determine the validity or adoption of any tax, fee, or other charge provided for in, or the validity of bonds issued pursuant to, this title, or any of the proceedings, contracts, agreements, or other arrangements or matters entered into, shall be commenced within 60 days from date of the election or the adoption of the resolution approving those matters, as applicable, pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. After that date, the adoption of that tax, fee, or other charge, the issuance of the bonds, and all proceedings in relation thereto, shall be held valid and incontestable in every respect.

3.Expenditures
64830.

(a)Revenue generated pursuant to this part shall be used for the construction of new affordable housing, affordable housing preservation, tenant protection programs, planning and technical assistance related to affordable housing, and for other purposes, as provided for in this section.

(b)For purposes of this section, “regional housing revenues” are those revenues generated pursuant to this Chapter 2 (commencing with Section 64810).

(c)The allocation of regional housing revenues to projects and programs shall be approved by the board.

(d)Subject to funding eligibility and adjustment pursuant to paragraph (4), the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following minimum shares over five-year periods commencing after revenue is approved by voters as follows:

(1)A minimum of 50 percent of the annual programmatic budget, excluding any bond indebtedness, shall be spent on affordable housing creation, preservation, and ownership as follows:

(A)The following conditions shall apply with regard to affordable housing creation:

(i)Funding pursuant to this subparagraph may be used for the following purposes, including, but not limited to, land acquisition, housing acquisition, financing, and ownership programs, including the agency serving as a single source of financing as appropriate.

(ii)Financing for any development costs associated with a project or funding grant that is for housing that is 100 percent affordable, which means restricted to any household that earns less than 80 percent of the area median income (AMI).

(iii)In any funded development or affordable housing grant, at least 25 percent of the units in an awarded project or grant shall be reserved for extremely low income households that fall within zero percent to 30 percent of the AMI.

(iv)In any funded development or affordable housing grant, at least 25 percent of the units in an awarded project or grant shall be reserved for very low income households that fall within 30 percent to 50 percent of the AMI or lower.

(B)The following conditions shall apply with regard to affordable housing preservation:

(i)Funding pursuant to this subparagraph for preservation programs may be used to acquire, rehabilitate, and preserve existing housing units for affordability, as well as housing from the private market, including residential hotels, as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code, in order to prevent the loss of affordability as well as expand permanent affordability. Funding provided pursuant to this subparagraph shall be subject to both of the following conditions:

(I)Existing residents of buildings acquired for the purpose of affordable housing preservation shall not be permanently displaced, even if the resident’s household income exceeds the moderate-income limits in Section 50093 of the Health and Safety Code.

(II)Buildings acquired for the purpose of affordable housing preservation shall achieve 100 percent occupancy by extremely low and very low income households over time through unit turnover.

(ii)Community land trusts, and other similar structures, are an eligible use pursuant to this subparagraph.

(C)The following conditions shall apply to affordable ownership:

(i)Programs to enable low- or moderate-income households to become or remain homeowners, including, but not limited to, below market rate ownership programs, down payment assistance programs, residential rehabilitation loan programs, and grants or loans to assist in the rehabilitation or replacement of existing mobilehomes located in a mobilehome or manufactured home community.

(ii)Community land trusts, and other similar structures, are an eligible use pursuant to this subparagraph.

(D)Funding provided pursuant to this subparagraph shall be subject to the following conditions in the event that demolition or rehabilitation of housing units is required:

(i)(I)Any funded development or affordable housing grant on any property that includes a parcel or parcels that currently have residential uses, or within the five years preceding the grant have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low- or very low income, subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units with at least the same number of units of equivalent number of bedrooms to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy.

(II)Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915, provided that any dwelling unit that is or was, within the five-year period preceding the grant, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income shall be replaced with units made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families.

(ii)If existing residents are required to be relocated due to demolition or rehabilitation needs, the developer is required to provide relocation benefits to the occupants of those housing rental units subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1. This clause shall not supersede any provision of a locally adopted ordinance that requires greater relocation assistance to displaced households.

(iii)If existing residents are required to be relocated due to demolition or rehabilitation needs, the developer shall provide a right of first refusal for a comparable unit available in the new or rehabilitated housing development that is affordable to the household at an affordable rent, as defined in Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code.

(2)(A)No less than 30 percent and not more than 40 percent of the total annual programmatic budget, excluding any bond indebtedness, shall be spent on countywide renter protection and support programs.

(B)These programs include any effort that helps low-income renters, defined as a household that earns 80 percent or less of the AMI.

(C)Eligible uses of the funds, include, but are not limited to, all of the following:

(i)Preeviction and eviction legal services, counseling, advice and consultation, training, renter education and representation, and services to improve habitability that protect against displacement of tenants.

(ii)Providing rental assistance for lower-income households. Rental assistance shall be paired with supportive services, such as eviction prevention and defense, to the greatest extent possible.

(iii)Providing relocation assistance for lower-income households beyond what is legally required of landlords according to local or state law.

(iv)Collection and tracking of information related to displacement and displacement risk, rents, and evictions in the region.

(3)Not more than 10 percent of the percent of the total annual programmatic budget, excluding any bond indebtedness, shall be used for administrative and operations expenses associated with the agency.

(4)No earlier than five years after approval of a funding measure under Chapter 2 (commencing with Section 64810) and subject to consultation with the advisory committee, the board may change any of the minimum requirements in paragraph (1) or (2) if the board adopts a finding that the region’s needs in a given category differ from those requirements. The board is required to approve the finding by a two-thirds vote. Approval of the finding shall be subject to the public participation requirements provided in subdivision (f) of Section 64711.

(e)(1)The board shall, in consultation with the advisory committee, adopt a regional expenditure plan for the use of housing revenue by July 1 of each year, except the board shall select the deadline to adopt the first regional expenditure plan. The regional expenditure plan may cover multiple years, as determined by the board.

(2)The regional expenditure plan shall set forth the share of revenue and estimated funding amount to be spent on each of the categories established in subdivision (d), indicate the household income levels to be served within each category of expenditures, and estimate the number of affordable housing units to be built or preserved and the number of tenants to be protected. To the extent feasible, the regional expenditure plan shall include a description of any specific project or program proposed to receive funding, including the location, amount of funding, and anticipated outcomes.

(3)The regional expenditure plan shall include the following information for any specific project that has received an allocation of regional housing revenue during the prior year:

(A)Whether the project proponent has requested a building permit for the project, and if so, the date when it was requested.

(B)Whether the project proponent is eligible to request a building permit for the project, and if so, the date when it became eligible.

(C)Whether the project proponent has obtained final approval or certification that the housing development is habitable, such as a certificate of occupancy, and if so, the date when it was obtained.

(f)(1)Funds allocated to a city pursuant to paragraph (4) of subdivision (d) shall be committed to a specific project within five years of receipt.

(2)Once committed to a specific project, funds shall remain available for expenditure for an additional five years, unless an extension is authorized pursuant to paragraph (3).

(3)If the funds have not been expended within five years of receipt as required in paragraph (2), the city shall show that it has made adequate progress towards completing the project. If the county finds that the city has made adequate progress, the county shall authorize an additional 24 months to grant entitlements to the remainder of the project. If the county does not find that the city has made adequate progress, the funds shall be transferred to the county. The county shall hold the funds until the city submits a plan satisfactory to the county to move forward with the project or allocate funds to another qualified project consistent with the city’s expenditure plan.

(4)For purposes of this subdivision “adequate progress” means the project has received the land use approvals or entitlements necessary for at least 75 percent of the project’s units.

64831.

The board shall monitor expenditures in coordination with local jurisdictions. At least once every five years, the monitoring shall include a review of revenues allocated to cities. The board may adopt guidelines applicable to those funds as deemed necessary to ensure they are spent in a timely manner consistent with the goals of this chapter.

64832.

To ensure oversight and accountability, the agency shall prepare and submit an annual report to the Legislature, in conformance with Sections 9795 and 53411 of the Government Code on allocations and expenditures under its control, and those controlled by counties pursuant to subdivision (d) of Section 64830. The report shall include a description of projects funded and their status, the households served by income level, and the extent to which the minimum targets in subdivision (d) of Section 64830 were achieved.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely severe shortage of available funding and resources for the development and preservation of affordable housing and the particularly acute nature of the housing crisis within Los Angeles County.
SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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