Section 33487 Of Article 16. Merger Of Project Areas From California Health And Safety Code >> Division 24. >> Part 1. >> Chapter 4. >> Article 16.
33487
. (a) Subject to subdivisions (a) and (b) of Section 33486,
not less than 20 percent of all taxes that are allocated to the
redevelopment agency pursuant to Section 33670 for redevelopment
projects merged pursuant to this article, irrespective of the date of
adoption of the final redevelopment plans, shall be deposited by the
agency in the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3, or which shall be established for
purposes of this section. The agency shall use the moneys in this
fund to assist in the construction or rehabilitation of housing units
that will be available to, or occupied by, persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105, for the longest
feasible time period but not less than 55 years for rental units and
45 years for owner-occupied units. For the purposes of this
subdivision, "construction and rehabilitation" shall include
acquisition of land, improvements to land; the acquisition,
rehabilitation, or construction of structures; or the provision of
subsidies necessary to provide housing for persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105.
(b) The agency may use the funds set aside by subdivision (a)
inside or outside the project area. However, the agency may only use
these funds outside the project area upon a resolution of the agency
and the legislative body that the use will be of benefit to the
project. This determination by the agency and the legislative body
shall be final and conclusive as to the issue of benefit to the
project area. The Legislature finds and declares that the provision
of replacement housing pursuant to Section 33413 is of benefit to a
project.
The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
(c) If moneys deposited in the Low and Moderate Income Housing
Fund pursuant to this section have not been committed for the
purposes specified in subdivisions (a) and (b) for a period of six
years following deposit in that fund, the agency shall offer these
moneys to the housing authority that operates within the jurisdiction
of the agency, if activated pursuant to Section 34240, for the
purpose of constructing or rehabilitating housing as provided in
subdivisions (a) and (b). However, if no housing authority operates
within the jurisdiction of the agency, the agency may retain these
moneys for use pursuant to this section.
(d) If the agency deposits less than 20 percent of taxes allocated
pursuant to Section 33670, due to the provisions of subdivisions (a)
and (b) of Section 33486, in any fiscal year, a deficit shall be
created in the Low and Moderate Income Housing Fund in an amount
equal to the difference between 20 percent of the taxes allocated
pursuant to Section 33670 and the amount deposited in that year. The
deficit, if any, created pursuant to this section constitutes an
indebtedness of the project. The agency shall eliminate the deficit
by expending taxes allocated in years subsequent to creation of the
deficit and, until the time when that deficit has been eliminated, an
agency shall not incur new obligations for purposes other than those
set forth in Section 33487, except to comply with the terms of any
resolution or other agreement pledging taxes allocated pursuant to
Section 33670 that existed on the date of merger pursuant to this
article.
(e) Notwithstanding subdivision (d) of Section 33413, any agency
that merges its redevelopment project areas pursuant to this article
shall be subject to subdivisions (a) and (c) of Section 33413.