33333.10
. (a) (1) Notwithstanding the time limits in subdivisions
(a) and (b) of Section 33333.6, an agency that adopted a
redevelopment plan on or before December 31, 1993, may, pursuant to
this section, amend that plan to extend the time limit on
effectiveness of the plan for up to 10 additional years beyond the
limit allowed by subdivision (a) of Section 33333.6.
(2) In addition, the agency may, pursuant to this section, amend
that plan to extend the time limit on the payment of indebtedness and
receipt of property taxes to be not more than 10 years from the
termination of the effectiveness of the redevelopment plan as that
time limit has been amended pursuant to paragraph (1).
(b) A redevelopment plan may be amended pursuant to subdivision
(a) only after the agency finds, based on substantial evidence, that
both of the following conditions exist:
(1) Significant blight remains within the project area.
(2) This blight cannot be eliminated without extending the
effectiveness of the plan and the receipt of property taxes.
(c) As used in this section:
(1) "Blight" has the same meaning as that term is given in Section
33030.
(2) "Significant" means important and of a magnitude to warrant
agency assistance.
(3) "Necessary and essential parcels" means parcels that are not
blighted but are so necessary and essential to the elimination of the
blight that these parcels should be included within the portion of
the project area in which tax increment funds may be spent.
"Necessary and essential parcels" are (A) parcels that are adjacent
to one or more blighted parcels that are to be assembled in order to
create a parcel of adequate size given present standards and market
conditions, and (B) parcels that are adjacent or near parcels that
are blighted on which it is necessary to construct a public
improvement to eliminate the blight.
(d) For purposes of this section, significant blight can exist in
a project area even though blight is not prevalent in a project area.
The report submitted to the legislative body pursuant to Section
33352 shall identify on a map the portion of the project area in
which significant blight remains.
(e) After the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, except for funds deposited in the Low and
Moderate Income Housing Fund pursuant to Section 33334.2 or 33334.6,
the agency shall spend tax increment funds only within the portion of
the project area that has been identified in the report adopted
pursuant to Section 33352 as the area containing blighted parcels and
necessary and essential parcels. Except as otherwise limited by
subdivisions (f) and (g), agencies may continue to spend funds
deposited in the Low and Moderate Income Housing Fund in accordance
with this division.
(f) (1) Except as otherwise provided in this subdivision, after
the limit on the payment of indebtedness and receipt of property
taxes that would have taken effect, but for the amendment pursuant to
this section, agencies shall only spend moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving the community's supply of housing at
affordable housing cost to persons and families of low, very low, or
extremely low income, as defined in Sections 50079.5, 50093, 50105,
and 50106. During this period, an agency that has adopted an
amendment pursuant to subdivision (a) may use moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving housing at affordable housing cost to
persons and families of moderate income as defined in Section 50093.
However, this amount shall not exceed, in a five-year period, the
amount of moneys from the Low and Moderate Income Housing Fund that
are used to increase, improve, and preserve housing at affordable
housing cost to persons and families of extremely low income, as
defined in Section 50106. In no case shall the amount expended for
housing for persons and families of moderate income exceed 15 percent
of the annual amount deposited in the Low and Moderate Income
Housing Fund during a five-year period and the number of housing
units affordable to moderate-income persons shall not exceed the
number of housing units affordable to extremely low income persons.
(2) Commencing with the first fiscal year that commences after the
date of the adoption of an amendment pursuant to subdivision (a) and
until the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, an agency that has adopted an amendment
pursuant to subdivision (a) may use moneys from the Low and Moderate
Income Housing Fund for the purpose of increasing, improving, and
preserving housing at affordable housing cost to persons and families
of moderate income as defined in Section 50093. However, this amount
shall not exceed, in a five-year period, 15 percent of the amount of
moneys deposited in the Low and Moderate Income Housing Fund during
that five-year period and shall only be used to assist housing
projects in which no less than 49 percent of the units are affordable
to and occupied by persons and families of low, very low, or
extremely low income. An agency may spend an additional amount of
moneys in the same or other housing projects to assist housing units
affordable to and occupied by moderate-income persons. However, this
amount shall not exceed the lesser of: the amount of moneys spent to
increase, improve, and preserve housing at affordable housing cost to
persons and families of extremely low income as defined in Section
50106, or 5 percent of the moneys deposited in the Low and Moderate
Income Housing Fund during that five-year period.
(g) (1) Except as provided in paragraph (2) or (3), commencing
with the first fiscal year that commences after the date of adoption
of an amendment pursuant to subdivision (a), not less than 30 percent
of all taxes that are allocated to the agency pursuant to Section
33670 from the redevelopment project area so amended shall be
deposited into that project's Low and Moderate Income Housing Fund
for the purposes specified in subdivision (f).
(2) In any fiscal year, the agency may deposit less than the
amount required by paragraph (1), but not less than the amount
required by Section 33334.2 or 33334.6, into the Low and Moderate
Income Housing Fund if the agency finds that the difference between
the amount deposited and the amount required by paragraph (1) is
necessary to make principal and interest payments during that fiscal
year on bonds sold by the agency to finance or refinance the
redevelopment project prior to six months before the date of adoption
of the amendment pursuant to subdivision (a). Bonds sold by the
agency prior to six months before the date of the adoption of the
amendment pursuant to subdivision (a) may only be refinanced,
refunded, or restructured after the date of the amendment pursuant to
subdivision (a). However, for purposes of this section, bonds
refinanced, refunded, or restructured after the date of the amendment
pursuant to subdivision (a) may only be treated as if sold on the
date the original bonds were sold if (A) the net proceeds were used
to refinance the original bonds, (B) there is no increase in the
amount of principal at the time of refinancing, restructuring, or
refunding, and (C) the time during which the refinanced indebtedness
is to be repaid does not exceed the date on which the existing
indebtedness would have been repaid.
(3) No later than 120 days prior to depositing less than the
amount required by paragraph (1) into the Low and Moderate Income
Housing Fund, the agency shall adopt, by resolution after a noticed
public hearing, a finding that the difference between the amount
allocated and the amount required by paragraph (1) is necessary to
make payments on bonds sold by the agency to finance or refinance the
redevelopment project and identified in the preliminary report
adopted pursuant to paragraph (9) of subdivision (e) of Section
33333.11, and specifying the amount of principal remaining on the
bonds, the amount of annual payments, and the date on which the
indebtedness will be repaid. Notice of the time and place of the
public hearing shall be published in a newspaper of general
circulation once a week for at least two successive weeks prior to
the public hearing. The agency shall make available to the public the
proposed resolution no later than the time of the publication of the
first notice of the public hearing. A copy of the resolution shall
be transmitted to the Department of Housing and Community Development
within 10 days after adoption.
(4) Notwithstanding paragraph (1), an agency that sells bonds on
or after the date of adoption of an amendment pursuant to subdivision
(a), the repayment of which is to be made from taxes allocated to
the agency pursuant to Section 33670 from the project so amended, may
elect to subordinate up to 16 2/3 percent of its annual 30-percent
Low and Moderate Income Housing Fund deposit obligation to the
payment of debt service on the bonds. If the agency makes that
election and in any year the agency has insufficient tax-increment
revenue available to pay debt service on the bonds to which the funds
from the Low and Moderate Income Housing Fund are subordinated, the
agency may deposit less than the full 100 percent of its annual
30-percent Low and Moderate Income Housing Fund obligation but only
to the extent necessary to pay that debt service and in no event
shall less than 83 1/3 percent of that obligation be deposited into
the Low and Moderate Income Housing Fund for that year. The
difference between the amount that is actually deposited in the Low
and Moderate Income Housing Fund and the full 100 percent of the
agency's 30-percent Low and Moderate Income Housing Fund deposit
obligation shall constitute a deficit in the Low and Moderate Income
Housing Fund subject to repayment pursuant to paragraph (5).
(5) If, pursuant to paragraph (2) or (4), the agency deposits less
than 30 percent of the taxes allocated to the agency pursuant to
Section 33670 in any fiscal year in the Low and Moderate Income
Housing Fund, the amount equal to the difference between 30 percent
of the taxes allocated to the agency pursuant to Section 33670 for
each affected redevelopment project area and the amount actually
deposited in the Low and Moderate Income Housing Fund for that fiscal
year shall be established as a deficit in the Low and Moderate
Income Housing Fund. Any new tax increment funds not encumbered
pursuant to paragraph (2) or (4) shall be utilized to reduce or
eliminate the deficit prior to entering into any new contracts,
commitments, or indebtedness. The obligations imposed by this section
are hereby declared to be an indebtedness of the redevelopment
project to which they relate, payable from taxes allocated to the
agency pursuant to Section 33670 and, notwithstanding any other
provision of law, shall constitute an indebtedness of the agency with
respect to the redevelopment project, and the agency shall continue
to receive allocations of taxes pursuant to Section 33670 until the
deficit is paid in full.
(h) An agency may not amend its redevelopment plan pursuant to
this section unless the agency first adopts a resolution that finds,
based on substantial evidence, all of the following:
(1) The community has adopted a housing element that the
department has determined pursuant to Section 65585 of the Government
Code to be in substantial compliance with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, or if applicable, an eligible
city or county within the jurisdiction of the San Diego Association
of Governments has adopted a self-certification of compliance with
its adopted housing element pursuant to Section 65585.1 of the
Government Code.
(2) During the three fiscal years prior to the year in which the
amendment is adopted, the agency has not been included in the report
sent by the Controller to the Attorney General pursuant to
subdivision (b) of Section 33080.8 as an agency that has a "major
violation" pursuant to Section 33080.8.
(3) After a written request by the agency and provision of the
information requested by the department, the department has issued a
letter to the agency, confirming that the agency has not accumulated
an excess surplus in its Low and Moderate Income Housing Fund. As
used in this section, "excess surplus" has the same meaning as that
term is defined in Section 33334.12. The department shall develop a
methodology to collect information required by this section.
Information requested by the department shall include a certification
by the agency's independent auditor on the status of excess surplus
and submittal of data for the department to verify the status of
excess surplus. The independent auditor shall make the required
certification based on the Controller's office guidelines which shall
include the methodology prescribed by the department pursuant to
subparagraph (D) of paragraph (3) of subdivision (g) of Section
33334.12. If the department does not respond to the written request
of the agency for this determination within 90 days after receipt of
the written request, compliance with this requirement shall be deemed
confirmed.
(i) Each redevelopment plan that has been adopted prior to January
1, 1976, that is amended pursuant to subdivision (a) shall also be
amended at the same time to make subdivision (b) of Section 33413
applicable to the redevelopment plan in accordance with paragraph (1)
of subdivision (d) of Section 33413.
(j) The amendment to the redevelopment plan authorized pursuant to
this section shall be made by ordinance pursuant to Article 12
(commencing with Section 33450). The ordinance shall be subject to
referendum as prescribed by law for ordinances of the legislative
body.
(k) This section shall not apply to a project area that retains
its eligibility to incur indebtedness and receive tax increment
revenues pursuant to Section 33333.7.
( l) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit allocation of taxes to
an agency to the extent required to comply with Section 33333.8. In
the event of a conflict between these limitations and the obligations
under Section 33333.8, the limitation established in the ordinance
shall be suspended pursuant to Section 33333.8.