33334.6
. (a) The Legislature finds and declares that the provision
of housing is itself a fundamental purpose of the Community
Redevelopment Law and that a generally inadequate statewide supply of
decent, safe, and sanitary housing affordable to persons and
families of low or moderate income, as defined by Section 50093,
threatens the accomplishment of the primary purposes of the Community
Redevelopment Law, including job creation, attracting new private
investments, and creating physical, economic, social, and
environmental conditions to remove and prevent the recurrence of
blight. The Legislature further finds and declares that the provision
and improvement of affordable housing, as provided by Section
33334.2, outside of redevelopment project areas can be of direct
benefit to those projects in assisting the accomplishment of project
objectives whether or not those redevelopment projects provide for
housing within the project area. The Legislature finds and determines
that the provision of affordable housing by redevelopment agencies
and the use of taxes allocated to the agency pursuant to subdivision
(b) of Section 33670 is of statewide benefit and of particular
benefit and assistance to all local governmental agencies in the
areas where the housing is provided.
(b) This section is applicable to all project areas, or portions
of project areas, which are not subject to Section 33334.2, except
that a project area, or portion of a project area, for which a
resolution was adopted pursuant to subdivision (i) of Section 33334.2
is subject to this section. Project areas subject to this section
which are merged are subject to the requirements of both this section
and Section 33487. The deposit of taxes into the Low and Moderate
Income Housing Fund in compliance with either this section or Section
33487 shall satisfy the requirements of both sections in the year
those taxes are deposited.
(c) Except as otherwise permitted by subdivisions (d) and (e), not
less than 20 percent of the taxes allocated to the agency pursuant
to Section 33670 from project areas specified in subdivision (b) for
the 1985-86 fiscal year and each succeeding fiscal year shall be
deposited into the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3 and used for the purposes set forth in
Section 33334.2, unless the agency, by resolution, makes one of the
findings described in paragraphs (1) to (3), inclusive, of
subdivision (a) of Section 33334.2, except that the authority to make
the finding specified in paragraph (3) of subdivision (a) of that
section shall expire as specified in that paragraph. Subdivisions (b)
and (c) of Section 33334.2 apply if an agency makes any of those
findings.
(d) In any fiscal year, the agency may deposit less than the
amount required by subdivision (c) into the Low and Moderate Income
Housing Fund if the agency finds that the difference between the
amount deposited and the amount required by subdivision (c) is
necessary to make payments under existing obligations of amounts due
or required to be committed, set aside, or reserved by the agency
during that fiscal year and which are used by the agency for that
purpose. For purposes of this section, "existing obligations" means
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,
any redevelopment project existing on, and created prior to January
1, 1986, and contained on the statement of existing obligations
adopted pursuant to subdivision (f). Obligations incurred on or after
January 1, 1986, shall be deemed existing obligations for purposes
of this section if the net proceeds are used to refinance existing
obligations contained on the statement.
(e) In each fiscal year prior to July 1, 1996, the agency may
deposit less than the amount required by subdivisions (c) and (d)
into the Low and Moderate Income Housing Fund if the agency finds
that the deposit of less than the amount required by those
subdivisions is necessary in order to provide for the orderly and
timely completion of public and private projects, programs, or
activities approved by the agency prior to January 1, 1986, which are
contained on the statement of existing programs adopted pursuant to
subdivision (f). Approval of these projects, programs, and activities
means approval by the agency of written documents which demonstrate
an intent to implement a specific project, program, or activity and
is not limited to final approval of a specific project, program, or
activity.
(f) Any agency which deposits less than the amount required by
subdivision (c) into the Low and Moderate Income Housing Fund
pursuant to subdivision (d) or (e) shall adopt prior to September 1,
1986, by resolution, after a noticed public hearing, a statement of
existing obligations or a statement of existing programs, or both.
(1) The agency shall prepare and submit the proposed statement to
the legislative body and to the Department of Housing and Community
Development prior to giving notice of the public hearing. Notice of
the time and place of the public hearing shall be transmitted to the
Department of Housing and Community Development at least 15 days
prior to the public hearing and notice of the time and place of the
public hearing shall be published in a newspaper of general
circulation in the community once a week for at least two successive
weeks prior to the public hearing. The legislative body shall
maintain a record of the public hearing.
(2) A copy of the resolution adopted by the agency, together with
any amendments to the statement of the agency, shall be transmitted
to the Department of Housing and Community Development within 10 days
following adoption of the resolution by the agency.
(3) A statement of existing obligations shall describe each
existing obligation and, based upon the best available information,
as determined by the agency, list the total amount of the existing
obligation, the annual payments required to be made by the agency
pursuant to the existing obligation, and the date the existing
obligation will be discharged in full.
(4) A statement of existing programs shall list the specific
public and private projects, programs, or activities approved prior
to January 1, 1986, which are necessary for the orderly completion of
the redevelopment plan as it existed on January 1, 1986. No project,
program, or activity shall be included on the statement of existing
programs unless written evidence of the existence and approval of the
project, program, or activity prior to January 1, 1986, is attached
to the statement of existing programs.
(g) If, pursuant to subdivision (d) or (e), the agency deposits
less than 20 percent of the taxes allocated to the agency pursuant to
Section 33670 in the 1985-86 fiscal year or any subsequent fiscal
year in the Low and Moderate Income Housing Fund, the amount equal to
the difference between 20 percent of the taxes allocated to the
agency pursuant to Section 33670 for each affected project and the
amount deposited that year shall constitute a deficit of the project.
The agency shall adopt a plan to eliminate the deficit in subsequent
years as determined by the agency.
(h) The obligations imposed by this section, including deficits,
if any, created under 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 shall constitute an indebtedness of the agency with respect to
the redevelopment project until paid in full.
(i) In any litigation to challenge or attack a statement of
existing obligations, the decision by the agency after the public
hearing to include an existing obligation on the statement of
existing obligations, or the decision by the agency after the public
hearing to include a project, program, or activity on the statement
of existing programs, the court shall uphold the action of the agency
unless the court finds that the agency has abused its discretion.
The Legislature finds and declares that this standard of review is
necessary in order to protect against the possible impairment of
existing obligations, programs, and activities because agencies with
project areas adopted prior to January 1, 1977, have incurred
existing obligations and have adopted projects, programs, and
activities with the authority to receive and pledge the entire
allocation of funds authorized by Section 33670.