Chapter 2. Effect Of Redevelopment Agency Dissolution of California Health And Safety Code >> Division 24. >> Part 1.85. >> Chapter 2.
(a) (1) All redevelopment agencies and redevelopment agency
components of community development agencies created under Part 1
(commencing with Section 33000), Part 1.5 (commencing with Section
34000), Part 1.6 (commencing with Section 34050), and Part 1.7
(commencing with Section 34100) that were in existence on the
effective date of this part are hereby dissolved and shall no longer
exist as a public body, corporate or politic. Nothing in this part
dissolves or otherwise affects the authority of a community
redevelopment commission, other than in its authority to act as a
redevelopment agency, in its capacity as a housing authority or for
any other community development purpose of the jurisdiction in which
it operates. For those other nonredevelopment purposes, the community
development commission derives its authority solely from federal or
local laws, or from state laws other than the Community Redevelopment
Law (Part 1 (commencing with Section 33000)).
(2) A community in which an agency has been dissolved under this
section may not create a new agency pursuant to Part 1 (commencing
with Section 33000), Part 1.5 (commencing with Section 34000), Part
1.6 (commencing with Section 34050), or Part 1.7 (commencing with
Section 34100). However, a community in which the agency has been
dissolved and the successor entity has paid off all of the former
agency's enforceable obligations may create a new agency pursuant to
Part 1 (commencing with Section 33000), Part 1.5 (commencing with
Section 34000), Part 1.6 (commencing with Section 34050), or Part 1.7
(commencing with Section 34100), subject to the tax increment
provisions contained in Chapter 3.5 (commencing with Section 34194.5)
of Part 1.9 (commencing with Section 34192).
(b) All authority to transact business or exercise powers
previously granted under the Community Redevelopment Law (Part 1
(commencing with Section 33000) is hereby withdrawn from the former
redevelopment agencies.
(c) Solely for purposes of Section 16 of Article XVI of the
California Constitution, the Redevelopment Property Tax Trust Fund
shall be deemed to be a special fund of the dissolved redevelopment
agency to pay the principal of and interest on loans, moneys advanced
to, or indebtedness, whether funded, refunded, assumed, or otherwise
incurred by the redevelopment agency to finance or refinance, in
whole or in part, the redevelopment projects of each redevelopment
agency dissolved pursuant to this part.
(d) Revenues equivalent to those that would have been allocated
pursuant to subdivision (b) of Section 16 of Article XVI of the
California Constitution shall be allocated to the Redevelopment
Property Tax Trust Fund of each successor agency for making payments
on the principal of and interest on loans, and moneys advanced to or
indebtedness incurred by the dissolved redevelopment agencies.
Amounts in excess of those necessary to pay obligations of the former
redevelopment agency shall be deemed to be property tax revenues
within the meaning of subdivision (a) of Section 1 of Article XIII A
of the California Constitution.
(a) Successor agencies, as defined in this part, are hereby
designated as successor entities to the former redevelopment
agencies.
(b) Except for those provisions of the Community Redevelopment Law
that are repealed, restricted, or revised pursuant to the act adding
this part, all authority, rights, powers, duties, and obligations
previously vested with the former redevelopment agencies, under the
Community Redevelopment Law, are hereby vested in the successor
agencies.
(c) (1) If the redevelopment agency was in the form of a joint
powers authority, and if the joint powers agreement governing the
formation of the joint powers authority addresses the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part and each shall have a share of assets and liabilities based
on the provisions of the joint powers agreement.
(2) If the redevelopment agency was in the form of a joint powers
authority, and if the joint powers agreement governing the formation
of the joint powers authority does not address the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part, a proportionate share of the assets and liabilities shall
be based on the assessed value in the project areas within each
entity's jurisdiction, as determined by the county assessor, in its
jurisdiction as compared to the assessed value of land within the
boundaries of the project areas of the former redevelopment agency.
(d) (1) A city, county, city and county, or the entities forming
the joint powers authority that authorized the creation of each
redevelopment agency may elect not to serve as a successor agency
under this part. A city, county, city and county, or any member of a
joint powers authority that elects not to serve as a successor agency
under this part must file a copy of a duly authorized resolution of
its governing board to that effect with the county auditor-controller
no later than January 13, 2012.
(2) The determination of the first local agency that elects to
become the successor agency shall be made by the county
auditor-controller based on the earliest receipt by the county
auditor-controller of a copy of a duly adopted resolution of the
local agency's governing board authorizing such an election. As used
in this section, "local agency" means any city, county, city and
county, or special district in the county of the former redevelopment
agency.
(3) (A) If no local agency elects to serve as a successor agency
for a dissolved redevelopment agency, a public body, referred to
herein as a "designated local authority" shall be immediately formed,
pursuant to this part, in the county and shall be vested with all
the powers and duties of a successor agency as described in this
part. The Governor shall appoint three residents of the county to
serve as the governing board of the authority. The designated local
authority shall serve as successor agency until a local agency elects
to become the successor agency in accordance with this section.
(B) Designated local authority members are protected by the
immunities applicable to public entities and public employees
governed by Part 1 (commencing with Section 810) and Part 2
(commencing with Section 814) of Division 3.6 of Title 1 of the
Government Code.
(4) A city, county, or city and county, or the entities forming
the joint powers authority that authorized the creation of a
redevelopment agency and that elected not to serve as the successor
agency under this part, may subsequently reverse this decision and
agree to serve as the successor agency pursuant to this section. Any
reversal of this decision shall not become effective for 60 days
after notice has been given to the current successor agency and the
oversight board and shall not invalidate any action of the successor
agency or oversight board taken prior to the effective date of the
transfer of responsibility.
(e) The liability of any successor agency, acting pursuant to the
powers granted under the act adding this part, shall be limited to
the extent of the total sum of property tax revenues it receives
pursuant to this part and the value of assets transferred to it as a
successor agency for a dissolved redevelopment agency.
(f) Any existing cleanup plans and liability limits authorized
under the Polanco Redevelopment Act (Article 12.5 (commencing with
Section 33459) of Chapter 4 of Part 1) shall be transferred to the
successor agency and may be transferred to the successor housing
entity at that entity's request.
(g) A successor agency is a separate public entity from the public
agency that provides for its governance and the two entities shall
not merge. The liabilities of the former redevelopment agency shall
not be transferred to the sponsoring entity and the assets shall not
become assets of the sponsoring entity. A successor agency has its
own name, can be sued, and can sue. All litigation involving a
redevelopment agency shall automatically be transferred to the
successor agency. The separate former redevelopment agency employees
shall not automatically become sponsoring entity employees of the
sponsoring entity and the successor agency shall retain its own
collective bargaining status. As successor entities, successor
agencies succeed to the organizational status of the former
redevelopment agency, but without any legal authority to participate
in redevelopment activities, except to complete any work related to
an approved enforceable obligation. Each successor agency shall be
deemed to be a local entity for purposes of the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of
Title 5 of the Government Code).
(h) (1) The city, county, or city and county that authorized the
creation of a redevelopment agency may loan or grant funds to a
successor agency for the payment of administrative costs or
enforceable obligations excluding loans approved under this
subdivision or pursuant to Section 34191.4, or project-related
expenses that qualify as an enforceable obligation, and only to the
extent that the successor agency receives an insufficient
distribution from the Redevelopment Property Tax Trust Fund, or other
approved sources of funding are insufficient, to pay approved
enforceable obligations in the recognized obligation payment schedule
period. The receipt and use of these funds shall be reflected on the
Recognized Obligation Payment Schedule or the administrative budget
and therefore are subject to the oversight and approval of the
oversight board. An enforceable obligation shall be deemed to be
created for the repayment of those loans. A loan made under this
subdivision shall be repaid from the source of funds originally
approved for payment of the underlying enforceable obligation in the
Recognized Obligation Payment Schedule once sufficient funds become
available from that source. The interest payable on any loan created
pursuant to this subdivision shall be calculated on a fixed annual
simple basis and applied to the outstanding principal amount until
fully paid, at a rate not to exceed the most recently published
interest rate earned by funds deposited into the Local Agency
Investment Fund during the previous fiscal quarter. Repayment of
loans created under this subdivision shall be applied first to
principal, and second to interest, and shall be subordinate to other
approved enforceable obligations. Loans created under this
subdivision shall be repaid to the extent property tax revenue
allocated to the successor agency is available after fulfilling other
enforceable obligations approved in the Recognized Obligation
Payment Schedule.
(2) This subdivision shall not apply where the successor agency's
distribution from the Redevelopment Property Tax Trust Fund has been
reduced pursuant to Section 34179.6 or 34186.
(i) At the request of the city, county, or city and county,
notwithstanding Section 33205, all land use related plans and
functions of the former redevelopment agency are hereby transferred
to the city, county, or city and county that authorized the creation
of a redevelopment agency; provided, however, that the city, county,
or city and county shall not create a new project area, add territory
to, or expand or change the boundaries of a project area, or take
any action that would increase the amount of obligated property tax
(formerly tax increment) necessary to fulfill any existing
enforceable obligation beyond what was authorized as of June 27,
2011.
(a) Solely for the purposes of Section 16 of Article XVI of
the California Constitution, commencing on the effective date of this
part, all agency loans, advances, or indebtedness, and interest
thereon, shall be deemed extinguished and paid; provided, however,
that nothing herein is intended to absolve the successor agency of
payment or other obligations due or imposed pursuant to the
enforceable obligations; and provided further, that nothing in the
act adding this part is intended to be construed as an action or
circumstance that may give rise to an event of default under any of
the documents governing the enforceable obligations.
(b) Nothing in this part, including, but not limited to, the
dissolution of the redevelopment agencies, the designation of
successor agencies, and the transfer of redevelopment agency assets
and properties, shall be construed as a voluntary or involuntary
insolvency of any redevelopment agency for purposes of the indenture,
trust indenture, or similar document governing its outstanding
bonds.
(a) It is the intent of this part that pledges of revenues
associated with enforceable obligations of the former redevelopment
agencies are to be honored. It is intended that the cessation of any
redevelopment agency shall not affect either the pledge, the legal
existence of that pledge, or the stream of revenues available to meet
the requirements of the pledge.
(b) All assets, properties, contracts, leases, books and records,
buildings, and equipment of the former redevelopment agency are
transferred on February 1, 2012, to the control of the successor
agency, for administration pursuant to the provisions of this part.
This includes all cash or cash equivalents and amounts owed to the
redevelopment agency as of February 1, 2012. Any legal or contractual
restrictions on the use of these funds or assets shall also be
transferred to the successor agency.
(a) (1) The city, county, or city and county that authorized
the creation of a redevelopment agency may elect to retain the
housing assets and functions previously performed by the
redevelopment agency. If a city, county, or city and county elects to
retain the authority to perform housing functions previously
performed by a redevelopment agency, all rights, powers, duties,
obligations, and housing assets, as defined in subdivision (e),
excluding any amounts on deposit in the Low and Moderate Income
Housing Fund and enforceable obligations retained by the successor
agency, shall be transferred to the city, county, or city and county.
(2) The housing successor shall submit to the Department of
Finance by August 1, 2012, a list of all housing assets that contains
an explanation of how the assets meet the criteria specified in
subdivision (e). The Department of Finance shall prescribe the format
for the submission of the list. The list shall include assets
transferred between February 1, 2012, and the date upon which the
list is created. The department shall have up to 30 days from the
date of receipt of the list to object to any of the assets or
transfers of assets identified on the list. If the Department of
Finance objects to assets on the list, the housing successor may
request a meet and confer process within five business days of
receiving the department objection. If the transferred asset is
deemed not to be a housing asset as defined in subdivision (e), it
shall be returned to the successor agency. If a housing asset has
been previously pledged to pay for bonded indebtedness, the successor
agency shall maintain control of the asset in order to pay for the
bond debt.
(3) For purposes of this section and Section 34176.1, "housing
successor" means the entity assuming the housing function of a former
redevelopment agency pursuant to this section.
(b) If a city, county, or city and county does not elect to retain
the responsibility for performing housing functions previously
performed by a redevelopment agency, all rights, powers, assets,
duties, and obligations associated with the housing activities of the
agency, excluding enforceable obligations retained by the successor
agency and any amounts in the Low and Moderate Income Housing Fund,
shall be transferred as follows:
(1) If there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency, to the Department of
Housing and Community Development.
(2) If there is one local housing authority in the territorial
jurisdiction of the former redevelopment agency, to that local
housing authority.
(3) If there is more than one local housing authority in the
territorial jurisdiction of the former redevelopment agency, to the
local housing authority selected by the city, county, or city and
county that authorized the creation of the redevelopment agency.
(c) Commencing on the operative date of this part, the housing
successor may enforce affordability covenants and perform related
activities pursuant to applicable provisions of the Community
Redevelopment Law (Part 1 (commencing with Section 33000)),
including, but not limited to, Section 33418.
(d) Except as specifically provided in Section 34191.4, any funds
transferred to the housing successor, together with any funds
generated from housing assets, as defined in subdivision (e), shall
be maintained in a separate Low and Moderate Income Housing Asset
Fund which is hereby created in the accounts of the housing
successor.
(e) For purposes of this part, "housing asset" includes all of the
following:
(1) Any real property, interest in, or restriction on the use of
real property, whether improved or not, and any personal property
provided in residences, including furniture and appliances, all
housing-related files and loan documents, office supplies, software
licenses, and mapping programs, that were acquired for low- and
moderate-income housing purposes, either by purchase or through a
loan, in whole or in part, with any source of funds.
(2) Any funds that are encumbered by an enforceable obligation to
build or acquire low- and moderate-income housing, as defined by the
Community Redevelopment Law (Part 1 (commencing with Section 33000))
unless required in the bond covenants to be used for repayment
purposes of the bond.
(3) Any loan or grant receivable, funded from the Low and Moderate
Income Housing Fund, from homebuyers, homeowners, nonprofit or
for-profit developers, and other parties that require occupancy by
persons of low or moderate income as defined by the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).
(4) Any funds derived from rents or operation of properties
acquired for low- and moderate-income housing purposes by other
parties that were financed with any source of funds, including
residual receipt payments from developers, conditional grant
repayments, cost savings and proceeds from refinancing, and principal
and interest payments from homebuyers subject to enforceable income
limits.
(5) A stream of rents or other payments from housing tenants or
operators of low- and moderate-income housing financed with any
source of funds that are used to maintain, operate, and enforce the
affordability of housing or for enforceable obligations associated
with low- and moderate-income housing.
(6) (A) Repayments of loans or deferrals owed to the Low and
Moderate Income Housing Fund pursuant to subparagraph (G) of
paragraph (1) of subdivision (d) of Section 34171, which shall be
used consistent with the affordable housing requirements in the
Community Redevelopment Law (Part 1 (commencing with Section 33000)).
(B) Loan or deferral repayments shall not be made prior to the
2013-14 fiscal year. Beginning in the 2013-14 fiscal year, the
maximum repayment amount authorized each fiscal year for repayments
made pursuant to this paragraph and subdivision (b) of Section
34191.4 combined shall be equal to one-half of the increase between
the amount distributed to taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year. Loan or deferral repayments made pursuant to
this paragraph shall take priority over amounts to be repaid pursuant
to subdivision (b) of Section 34191.4.
(f) If a development includes both low- and moderate-income
housing that meets the definition of a housing asset under
subdivision (e) and other types of property use, including, but not
limited to, commercial use, governmental use, open space, and parks,
the oversight board shall consider the overall value to the community
as well as the benefit to taxing entities of keeping the entire
development intact or dividing the title and control over the
property between the housing successor and the successor agency or
other public or private agencies. The disposition of those assets may
be accomplished by a revenue-sharing arrangement as approved by the
oversight board on behalf of the affected taxing entities.
(g) (1) (A) The housing successor may designate the use of and
commit indebtedness obligation proceeds that remain after the
satisfaction of enforceable obligations that have been approved in a
Recognized Obligation Payment Schedule and that are consistent with
the indebtedness obligation covenants. The proceeds shall be derived
from indebtedness obligations that were issued for the purposes of
affordable housing prior to June 28, 2011, and were backed by the Low
and Moderate Income Housing Fund. Enforceable obligations may be
satisfied by the creation of reserves for the projects that are the
subject of the enforceable obligation that are consistent with the
contractual obligations for those projects, or by expending funds to
complete the projects. It is the intent of the Legislature to
authorize housing successors to designate the use of and commit 100
percent of indebtedness obligation proceeds described in this
subparagraph.
(B) The housing successor shall provide notice to the successor
agency of any designations of use or commitments of funds specified
in subparagraph (A) that it wishes to make at least 20 days before
the deadline for submission of the Recognized Obligation Payment
Schedule to the oversight board. Commitments and designations shall
not be valid and binding on any party until they are included in an
approved and valid Recognized Obligation Payment Schedule. The review
of these designations and commitments by the successor agency,
oversight board, and Department of Finance shall be limited to a
determination that the designations and commitments are consistent
with bond covenants and that there are sufficient funds available.
(2) Funds shall be used and committed in a manner consistent with
the purposes of the Low and Moderate Income Housing Asset Fund.
Notwithstanding any other law, the successor agency shall retain and
expend the excess housing obligation proceeds at the discretion of
the housing successor, provided that the successor agency ensures
that the proceeds are expended in a manner consistent with the
indebtedness obligation covenants and with any requirements relating
to the tax status of those obligations. The amount expended shall not
exceed the amount of indebtedness obligation proceeds available and
such expenditure shall constitute the creation of excess housing
proceeds expenditures to be paid from the excess proceeds. Excess
housing proceeds expenditures shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(h) This section shall not be construed to provide any stream of
tax increment financing.
Funds in the Low and Moderate Income Housing Asset Fund
described in subdivision (d) of Section 34176 shall be subject to the
provisions of the Community Redevelopment Law (Part 1 (commencing
with Section 33000)) relating to the Low and Moderate Income Housing
Fund, except as follows:
(a) Subdivision (d) of Section 33334.3 and subdivision (a) of
Section 33334.4 shall not apply. Instead, funds received from the
successor agency for items listed on the Recognized Obligation
Payment Schedule shall be expended to meet the enforceable
obligations, and the housing successor shall expend all other funds
in the Low and Moderate Income Housing Asset Fund as follows:
(1) For the purpose of monitoring and preserving the long-term
affordability of units subject to affordability restrictions or
covenants entered into by the redevelopment agency or the housing
successor and for the purpose of administering the activities
described in paragraphs (2) and (3), a housing successor may expend
per fiscal year up to an amount equal to 5 percent of the statutory
value of real property owned by the housing successor and of loans
and grants receivable, including real property and loans and grants
transferred to the housing successor pursuant to Section 34176 and
real property purchased and loans and grants made by the housing
successor. If this amount is less than two hundred thousand dollars
($200,000) for any given fiscal year, the housing successor may
expend up to two hundred thousand dollars ($200,000) in that fiscal
year for these purposes. The Department of Housing and Community
Development shall annually publish on its Internet Web site an
adjustment to this amount to reflect any change in the Consumer Price
Index for All Urban Consumers published by the federal Department of
Labor for the preceding calendar year. For purposes of this
paragraph, "statutory value of real property" means the value of
properties formerly held by the former redevelopment agency as listed
on the housing asset transfer form approved by the department
pursuant to paragraph (2) of subdivision (a) of Section 34176, the
value of the properties transferred to the housing successor pursuant
to subdivision (f) of Section 34181, and the purchase price of
properties purchased by the housing successor.
(2) Notwithstanding Section 33334.2, if the housing successor has
fulfilled all obligations pursuant to Sections 33413 and 33418, the
housing successor may expend up to two hundred fifty thousand dollars
($250,000) per fiscal year for homeless prevention and rapid
rehousing services for individuals and families who are homeless or
would be homeless but for this assistance, including the provision of
short-term or medium-term rental assistance, housing relocation and
stabilization services including housing search, mediation, or
outreach to property owners, credit repair, security or utility
deposits, utility payments, rental assistance for a final month at a
location, moving cost assistance, and case management, or other
appropriate activities for homelessness prevention and rapid
rehousing of persons who have become homeless.
(3) (A) The housing successor shall expend all funds remaining in
the Low and Moderate Income Housing Asset Fund after the expenditures
allowed pursuant to paragraphs (1) and (2) for the development of
housing affordable to and occupied by households earning 80 percent
or less of the area median income, with at least 30 percent of these
remaining funds expended for the development of rental housing
affordable to and occupied by households earning 30 percent or less
of the area median income and no more than 20 percent of these
remaining funds expended for the development of housing affordable to
and occupied by households earning between 60 percent and 80 percent
of the area median income. A housing successor shall demonstrate in
the annual report described in subdivision (f), for 2019, and every
five years thereafter, that the housing successor's expenditures from
January 1, 2014, through the end of the latest fiscal year covered
in the report comply with the requirements of this subparagraph.
(B) If the housing successor fails to comply with the extremely
low income requirement in any five-year report, then the housing
successor shall ensure that at least 50 percent of these remaining
funds expended in each fiscal year following the latest fiscal year
following the report are expended for the development of rental
housing affordable to, and occupied by, households earning 30 percent
or less of the area median income until the housing successor
demonstrates compliance with the extremely low income requirement in
an annual report described in subdivision (f).
(C) If the housing successor exceeds the expenditure limit for
households earning between 60 percent and 80 percent of the area
median income in any five-year report, the housing successor shall
not expend any of the remaining funds for households earning between
60 percent and 80 percent of the area median income until the housing
successor demonstrates compliance with this limit in an annual
report described in subdivision (f).
(D) For purposes of this subdivision, "development" means new
construction, acquisition and rehabilitation, substantial
rehabilitation as defined in Section 33413, the acquisition of
long-term affordability covenants on multifamily units as described
in Section 33413, or the preservation of an assisted housing
development that is eligible for prepayment or termination or for
which within the expiration of rental restrictions is scheduled to
occur within five years as those terms are defined in Section
65863.10 of the Government Code. Units described in this subparagraph
may be counted towards any outstanding obligations pursuant to
Section 33413, provided that the units meet the requirements of that
section and are counted as provided in that section.
(b) Subdivision (b) of Section 33334.4 shall not apply. Instead,
if the aggregate number of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years exceeds 50 percent of the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period, then the housing successor shall not expend these funds to
assist additional senior housing units until the housing successor or
its host jurisdiction assists, and construction has commenced, a
number of units available to all persons, regardless of age, that is
equal to 50 percent of the aggregate number of units of
deed-restricted rental housing units assisted individually or jointly
by the housing successor, its former redevelopment agency, and its
host jurisdiction within the time period described above.
(c) (1) Program income a housing successor receives shall not be
associated with a project area and, notwithstanding subdivision (g)
of Section 33334.2, may be expended anywhere within the jurisdiction
of the housing successor or transferred pursuant to paragraph (2)
without a finding of benefit to a project area. For purposes of this
paragraph, "program income" means the sources described in paragraphs
(3), (4), and (5) of subdivision (e) of Section 34176 and interest
earned on deposits in the account.
(2) Two or more housing successors within a county, within a
single metropolitan statistical area, within 15 miles of each other,
or that are in contiguous jurisdictions may enter into an agreement
to transfer funds among their respective Low and Moderate Income
Housing Asset Funds for the sole purpose of developing transit
priority projects as defined in subdivisions (a) and (b) of Section
21155 of the Public Resources Code, permanent supportive housing as
defined in paragraph (2) of subdivision (b) of Section 50675.14,
housing for agricultural employees as defined in subdivision (g) of
Section 50517.5, or special needs housing as defined in federal or
state law or regulation if all of the following conditions are met:
(A) Each participating housing successor has made a finding based
on substantial evidence, after a public hearing, that the agreement
to transfer funds will not cause or exacerbate racial, ethnic, or
economic segregation.
(B) The development to be funded shall not be located in a census
tract where more than 50 percent of its population is very low
income, unless the development is within one-half mile of a major
transit stop or high-quality transit corridor as defined in paragraph
(3) of subdivision (b) of Section 21155 of the Public Resources
Code.
(C) The completed development shall not result in a reduction in
the number of housing units or a reduction in the affordability of
housing units on the site where the development is to be built.
(D) A transferring housing successor shall not have any
outstanding obligations pursuant to Section 33413.
(E) No housing successor may transfer more than one million
dollars ($1,000,000) per fiscal year.
(F) The jurisdictions of the transferring and receiving housing
successors each have an adopted housing element that the Department
of Housing and Community Development has found 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 and have
submitted to the Department of Housing and Community Development the
annual progress report required by Section 65400 of the Government
Code within the preceding 12 months.
(G) Transferred funds shall only assist rental units affordable
to, and occupied by, households earning 60 percent or less of the
area median income.
(H) Transferred funds not encumbered within two years shall be
transferred to the Department of Housing and Community Development
for expenditure pursuant to the Multifamily Housing Program or the
Joe Serna, Jr. Farmworker Housing Grant Program.
(d) Sections 33334.10 and 33334.12 shall not apply. Instead, if a
housing successor has an excess surplus, the housing successor shall
encumber the excess surplus for the purposes described in paragraph
(3) of subdivision (a) or transfer the funds pursuant to paragraph
(2) of subdivision (c) within three fiscal years. If the housing
successor fails to comply with this subdivision, the housing
successor, within 90 days of the end of the third fiscal year, shall
transfer any excess surplus to the Department of Housing and
Community Development for expenditure pursuant to the Multifamily
Housing Program or the Joe Serna, Jr. Farmworker Housing Grant
Program. For purposes of this subdivision, "excess surplus" shall
mean an unencumbered amount in the account that exceeds the greater
of one million dollars ($1,000,000) or the aggregate amount deposited
into the account during the housing successor's preceding four
fiscal years, whichever is greater.
(e) Section 33334.16 shall not apply to interests in real property
acquired on or after February 1, 2012. With respect to interests in
real property acquired by the former redevelopment agency prior to
February 1, 2012, the time periods described in Section 33334.16
shall be deemed to have commenced on the date that the department
approved the property as a housing asset.
(f) Section 33080.1 of this code and Section 12463.3 of the
Government Code shall not apply. Instead, the housing successor shall
conduct, and shall provide to its governing body, an independent
financial audit of the Low and Moderate Income Housing Asset Fund
within six months after the end of each fiscal year, which may be
included in the independent financial audit of the host jurisdiction.
If the housing successor is a city or county, it shall also include
in its report pursuant to Section 65400 of the Government Code and
post on its Internet Web site all of the following information for
the previous fiscal year. If the housing successor is not a city or
county, it shall also provide to its governing body and post on its
Internet Web site all of the following information for the previous
fiscal year:
(1) The amount the city, county, or city and county received
pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of
Section 34191.4.
(2) The amount deposited to the Low and Moderate Income Housing
Asset Fund, distinguishing between amounts deposited pursuant to
subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of
Section 34191.4, amounts deposited for other items listed on the
Recognized Obligation Payment Schedule, and other amounts deposited.
(3) A statement of the balance in the fund as of the close of the
fiscal year, distinguishing any amounts held for items listed on the
Recognized Obligation Payment Schedule from other amounts.
(4) A description of expenditures from the fund by category,
including, but not limited to, expenditures (A) for monitoring and
preserving the long-term affordability of units subject to
affordability restrictions or covenants entered into by the
redevelopment agency or the housing successor and administering the
activities described in paragraphs (2) and (3) of subdivision (a),
(B) for homeless prevention and rapid rehousing services for the
development of housing described in paragraph (2) of subdivision (a),
and (C) for the development of housing pursuant to paragraph (3) of
subdivision (a).
(5) As described in paragraph (1) of subdivision (a), the
statutory value of real property owned by the housing successor, the
value of loans and grants receivable, and the sum of these two
amounts.
(6) A description of any transfers made pursuant to paragraph (2)
of subdivision (c) in the previous fiscal year and, if still
unencumbered, in earlier fiscal years and a description of and status
update on any project for which transferred funds have been or will
be expended if that project has not yet been placed in service.
(7) A description of any project for which the housing successor
receives or holds property tax revenue pursuant to the Recognized
Obligation Payment Schedule and the status of that project.
(8) For interests in real property acquired by the former
redevelopment agency prior to February 1, 2012, a status update on
compliance with Section 33334.16. For interests in real property
acquired on or after February 1, 2012, a status update on the
project.
(9) A description of any outstanding obligations pursuant to
Section 33413 that remained to transfer to the housing successor on
February 1, 2012, of the housing successor's progress in meeting
those obligations, and of the housing successor's plans to meet unmet
obligations. In addition, the housing successor shall include in the
report posted on its Internet Web site the implementation plans of
the former redevelopment agency.
(10) The information required by subparagraph (B) of paragraph (3)
of subdivision (a).
(11) The percentage of units of deed-restricted rental housing
restricted to seniors and assisted individually or jointly by the
housing successor, its former redevelopment agency, and its host
jurisdiction within the previous 10 years in relation to the
aggregate number of units of deed-restricted rental housing assisted
individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time
period.
(12) The amount of any excess surplus, the amount of time that the
successor agency has had excess surplus, and the housing successor's
plan for eliminating the excess surplus.
(13) An inventory of homeownership units assisted by the former
redevelopment agency or the housing successor that are subject to
covenants or restrictions or to an adopted program that protects the
former redevelopment agency's investment of moneys from the Low and
Moderate Income Housing Fund pursuant to subdivision (f) of Section
33334.3. This inventory shall include all of the following
information:
(A) The number of those units.
(B) In the first report pursuant to this subdivision, the number
of units lost to the portfolio after February 1, 2012, and the reason
or reasons for those losses. For all subsequent reports, the number
of the units lost to the portfolio in the last fiscal year and the
reason for those losses.
(C) Any funds returned to the housing successor as part of an
adopted program that protects the former redevelopment agency's
investment of moneys from the Low and Moderate Income Housing Fund.
(D) Whether the housing successor has contracted with any outside
entity for the management of the units and, if so, the identity of
the entity.