Bill Text: CA AB1250 | 2011-2012 | Regular Session | Amended
Bill Title: Redevelopment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1250 Detail]
Download: California-2011-AB1250-Amended.html
BILL NUMBER: AB 1250 AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 4, 2012 AMENDED IN ASSEMBLY JUNE 3, 2011 AMENDED IN ASSEMBLY MAY 27, 2011 INTRODUCED BY AssemblyMembersAlejo,Lara,Perea,and V. Manuel PérezMember Alejo(Principal coauthor:SenatorWright)(Coauthors:Assembly MembersAllen,Campos,Carter,Davis,Galgiani,Hall,Bonnie Lowenthal,Mendoza,and Solorio)(Coauthor:SenatorDe León)FEBRUARY 18, 2011An act to amend Sections 33080.3, 33080.6, 33320.1, 33334.2, 33353.2, 33367, 33426.5, 33488, 33601, 33610, and 33670 of, to add Sections 33080.14, 33444.7, 33444.8, 33491, 33607.9, and 33675.1 to, and to add Article 6.5 (commencing with Section 33679.1) to Chapter 6 of Part 1 of Division 24 of, the Health and Safety Code, relating to redevelopment, and declaring the urgency thereof, to take effect immediately.An act to amend Section 34194 of the Health and Safety Code, relating to redevelopment . LEGISLATIVE COUNSEL'S DIGEST AB 1250, as amended, Alejo. Redevelopment. Existing law establishes an alternative voluntary redevelopment program whereby a redevelopment agency would be authorized to continue to exist upon the enactment of an ordinance by the community to comply with specified provisions. A city or county that participates in the program is required to make remittances to the county auditor-controller for deposit in the Special District Allocation Fund, with remaining funds deposited in the Educational Revenue Augmentation Fund. Existing law prescribes the amount a participating community is required to remit for the 2012-13 fiscal year and each fiscal year thereafter. This bill would modify the calculation of the remittance a participating community is required to make for the 2012-13 fiscal year and each fiscal year thereafter.(1) The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in blighted areas in those communities known as project areas. Existing law requires that each redevelopment agency submit the final report of any audit undertaken by any other local, state, or federal government entity to its legislative body and to additionally present an annual report to the legislative body containing specified information.This bill would impose new requirements on the agency with respect to implementation plans and evidentiary standards and expand existing prohibitions on agency direct assistance to certain projects.The bill would require the Controller, on or before January 1, 2013, to issue regulations revising and consolidating reporting for redevelopment agencies and to develop a simple, uniform, and consistent methodology for the calculation, payment, and reporting of passthrough payments. The bill would also require the Controller to review and revise the guidelines adopted for the content of the final report at least every 5 years, as specified. The bill would also transfer certain reporting requirements from the Department of Housing and Community Development to the Controller, as specified, and require that agencies send certain notifications to the Controller in addition to sending the notifications to the department. The bill would require that the department develop guidelines establishing standards to evaluate agency performance.(2) The California Constitution authorizes a redevelopment agency to receive funding through tax increment revenues attributable to increases in assessed property tax valuation of property in a project area due to redevelopment. Existing law prescribes the procedure by which the tax increment revenue is allocated.The bill would establish an alternate procedure by which tax increment revenue is allocated for purposes of redevelopment plans adopted on or after January 1, 2012, and for any new territory added to a redevelopment plan that was adopted prior to January 1, 2012, but amended after January 1, 2012, to add new territory. Specifically, the procedure would require that tax increment revenue transferred to an agency exclude any funds considered educational entity property tax revenues, as prescribed.(3) The bill would authorize an agency to loan or grant funds for projects relating to energy efficiency. The bill would also authorize an agency to provide direct assistance, as described, to businesses within project areas for industrial or manufacturing uses or similar uses of statewide benefit.(4) This bill would declare that it is to take effect immediately as an urgency statute.Vote:2/3majority . Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 34194 of the Health and Safety Code is amended to read: 34194. (a) A city or county that includes a redevelopment agency that has complied with this part shall make the remittances required by this section to the county auditor-controller. The county auditor-controller shall deposit an amount as determined by Section 34194.4 into the Special District Allocation Fund, and remaining funds shall be remitted to the county Educational Revenue Augmentation Fund, created pursuant to Article 3 (commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code. (b) (1) For the 2011-12 fiscal year, a city or county shall remit an amount equal to the amount determined for the redevelopment agencies in that city or county pursuant to subparagraph (I) of paragraph (2). (2) Utilizing the Controller's redevelopment agency 2008-09 annual report, the Director of Finance shall do all of the following for the 2011-12 fiscal year: (A) Determine the net tax increment apportioned to each redevelopment agency pursuant to Section 33670, calculated as a redevelopment agency's tax increment revenue, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and excluding all amounts used to pay for tax allocation bonds and interest payments specified in the Controller's report, in the 2008-09 fiscal year. (B) Determine the net tax increment apportioned to all redevelopment agencies pursuant to Section 33670, calculated as all redevelopment agencies' tax increment revenue, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and excluding all amounts used to pay for tax allocation bonds and interest payments specified in the Controller's report, in the 2008-09 fiscal year. (C) Determine each redevelopment agency's proportionate share of statewide net tax increment by dividing the amount determined pursuant to subparagraph (A) by the amount determined pursuant to subparagraph (B). (D) Determine a proportionate amount of net tax increment for each redevelopment agency by multiplying one billion seven hundred million dollars ($1,700,000,000) by the proportionate share determined pursuant to subparagraph (C). (E) Determine the total amount of property tax revenue apportioned to each redevelopment agency pursuant to Section 33670, calculated as a redevelopment agency's tax increment revenue, including any amounts apportioned to affected taxing agencies pursuant to Section 33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and including all amounts used for payments of tax allocation bonds and interest payments specified in the Controller's report, in the 2008-09 fiscal year. (F) Determine the total amount of property tax revenue apportioned to all redevelopment agencies pursuant to Section 33670, calculated as all redevelopment agencies' tax increment revenue, including any amounts apportioned to affected taxing agencies pursuant to Section 33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and including all amounts used for payments of tax allocation bonds and interest payments specified in the Controller's report, in the 2008-09 fiscal year. (G) Determine each redevelopment agency's proportionate share of property tax revenue by dividing the amount determined pursuant to subparagraph (E) by the amount determined pursuant to subparagraph (F). (H) Determine a proportionate amount of property tax revenue for each redevelopment agency by multiplying one billion seven hundred million dollars ($1,700,000,000) by the proportionate share determined pursuant to subparagraph (G). (I) Average the amounts determined pursuant to subparagraphs (D) and (H). (J) On or before August 1, 2011, notify each city or county of the amount determined pursuant to subparagraph (I) for a redevelopment agency of that city or county. (K) Notify each county auditor-controller of the amounts determined pursuant to subparagraph (I) for each agency in his or her county. (L) (i) After receiving the notification from the Director of Finance pursuant to subparagraph (J), a city or county may appeal the amount of remittance to the director on or before August 15, 2011, on the basis that the information in the Controller's report was in error or that the percentage of tax increment necessary to pay for tax allocation bonds and interest payments has increased by 10 percent or more over the percentage calculated pursuant to the Controller's redevelopment agency 2008-09 annual report. Any appeal shall include documentation that clearly and convincingly establishes the basis of the appeal and the amount of the claimed discrepancy. (ii) The director may reject the appeal or approve it, in whole or in part, at the director's sole discretion. The director shall notify the city or county and the county auditor-controller of the decision on the appeal by September 15, 2011. However, the director may extend the decision deadline, at the director's discretion and upon notification of the city or county and the county auditor-controller, until October 15, 2011, in which case the date by which the city or county must enact the ordinance required by this part shall be extended until December 1, 2011. If the director determines that the percentage of tax increment necessary to pay for tax allocation bonds or interest payments has increased by 10 percent or more, as described by this subparagraph, then the director shall recalculate the remittance amount for the city or county identified in subparagraph (I) by reducing the amount in subparagraph (D) to reflect any percentage increase that is in excess of 10 percent. (c) For the 2012-13 fiscal year and each fiscal year thereafter a participating community shall remit an amount equal to the sum of the amounts specified in paragraphs (1) and (2): (1) For a community subject to a remittance amount determined for the 2011-12 fiscal year pursuant to subdivision (b), a base payment equal to the base payment in the prior fiscal year, increased by the percentage growth or decreased by the percentage reduction, as appropriate, from the prior fiscal year in the total adjusted amount of property tax increment revenue allocated to the redevelopment agency of the community pursuant to Section 33670 with respect to project areas that were in existence, and for which the agency received allocations of tax increment revenue, during the 2011-12 fiscal year. (A) For the 2012-13 fiscal year, the base payment in the prior fiscal year shall be the remittance amount determined pursuant to subdivision (b) for the 2011-12 fiscal year multiplied by the ratio of four hundred million dollars ($400,000,000) to one billion seven hundred million dollars ($1,700,000,000). (B) The "adjusted amount of property tax increment revenue" described in this paragraph means an amount of property tax increment in any fiscal year for a project area that is calculated by subtracting the amount of any debt service or other payments for new debt issuances or obligations, as provided in paragraph (2), from the total amount of property tax increment revenue allocated in that year to the agency with respect to that project area. (2) (A) An amount equivalent to 80 percent, or any lesser amount as may be authorized by law for qualifying projects, of the total net school share, as described in subparagraph (B), of debt service or other payments made in that fiscal year for new debt or obligations issued or incurred on or after November 1, 2011, as shown on the agency's statement of indebtedness, excluding any debts issued or incurred on behalf of the agency's Low and Moderate Income Housing Fund, established pursuant to Section 33334.3 , the refinancing of any indebtedness that existed as of November 1, 2011, that does not increase the amount of overall indebtedness or extend the time for repayment, or financings that fulfill an agency obligation that existed as of November 1, 2011 . "New debt" means debt that is displayed on a statement of indebtedness filed after a statement of indebtedness filed on October 1, 2011, that was not displayed on the statement of indebtedness filed on October 1, 2011. (B) For the purpose of subparagraph (A), the net school share shall be the school share of the property tax increment revenues, less any passthrough payments to school entities, that would have been received in the absence of redevelopment by school entities, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, in the jurisdictional territory of the redevelopment agency, including, but not limited to, the amounts specified in Section 97.68 and 97.70 of the Revenue and Taxation Code. (C) It is the intent of the Legislature to enact legislation in the 2011-12 session to prescribe a schedule of reductions in the community remittance, described in subparagraph (A), that will authorize payments of less than 80 percent of the school share of property taxes to the Educational Revenue Augmentation Fund. The reductions shall apply for bonds issued for the purpose of funding projects that advance the achievement of statewide goals with respect to transportation, housing, economic development and job creation, environmental protection and remediation, and climate change, including, but not limited to, projects that are consistent with the Sustainable Communities Strategies developed pursuant to Chapter 4.2 (commencing with Section 21155) of Division 13 of the Public Resources Code. (3) On or before November 1 of each year, the city or county shall notify the Department of Finance, the Controller, and the county auditor-controller of the remittance amount required by the calculations described in this subdivision. The Director of Finance, the Controller, and the county auditor-controller shall each be authorized to audit and verify the remittance amount that is determined by the city or county. The county auditor-controller, based upon an audit conducted by that office, or upon notification by the Director of Finance or the Controller based on an audit conducted by those offices, that determines that the city or county has miscalculated its remittance payment amount, shall adjust the amount of the next remittance payment that shall be paid by the city or county to reflect the correct amount of payment previously owed by the city or county as identified in that audit, as required by this subdivision. (d) (1) A city or county shall pay one-half of the total remittance amount, as calculated pursuant to subdivision (b) or (c), on or before January 15 of each year and shall pay the remaining one-half of the remittance amount on or before May 15 of each year. (2) If a city or county fails to make its remittance payment as required by paragraph (1), the county auditor-controller shall notify the Director of Finance of the failure to make the payment within 30 days. Upon receipt of the notification, the Director of Finance may determine that the redevelopment agency in the city or county shall be subject to the requirements of Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) as described in Section 34195.SECTION 1.Section 33080.3 of the Health and Safety Code is amended to read: 33080.3. The Controller shall develop and periodically revise the guidelines for the content of the report required by Section 33080.1. The Controller shall appoint an advisory committee to advise in the development of the guidelines. The advisory committee shall include representatives from among those persons nominated by the department, the Legislative Analyst, the California Society of Certified Public Accountants, the California Redevelopment Association, and any other authorities in the field that the Controller deems necessary and appropriate. The Controller shall review and revise the guidelines at least every five years, following consultation with the advisory committee.SEC. 2.Section 33080.6 of the Health and Safety Code is amended to read: 33080.6. (a) On or before May 1 of each year, the Controller shall compile and publish annual reports of the activities of redevelopment agencies for the previous fiscal year, based on the information reported pursuant to subdivision (c) of Section 33080.1 and reporting the types of findings made by agencies pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 33334.2, including the date of the findings. The Controller's compilation shall also report on the project area mergers reported pursuant to Section 33488. The Controller shall publish this information for each project area of each redevelopment agency. The first report published pursuant to this section shall be for the 2013-14 fiscal year. (b) Changes to this section made by the act amending this section shall take effect on January 1, 2013.SEC. 3.Section 33080.14 is added to the Health and Safety Code, to read: 33080.14. (a) On or before January 1, 2013, the department shall develop guidelines establishing specific measures and standards to evaluate redevelopment agency performance in specific areas, including the following: (1) A uniform method of calculating and reporting job creation and retention. (2) Standards for measuring the efficiency and effectiveness of expenditures for affordable housing. (3) Standards for measuring and reducing poverty levels in project areas. (4) Standards for measuring and reducing crime in project areas. (5) Methods for measuring reductions in vehicle miles traveled accomplished through redevelopment projects, including, but not limited to, assistance provided to infill and transit oriented development. (6) Standards for reporting on brownfield cleanup and hazardous waste mitigation. (b) The department shall appoint an advisory committee to assist and advise in the development of the guidelines required by this section. The advisory committee shall include representatives with demonstrated expertise in redevelopment, local government metrics that measure any one or more of the standards described above, or any other fields of study that the department deems necessary and appropriate. (c) Commencing with the 2013-14 fiscal year, the annual report required by Section 33080.1 shall include a discussion of the redevelopment agency's performance based on the guidelines prepared by the department pursuant to this section.SEC. 4.Section 33320.1 of the Health and Safety Code is amended to read: 33320.1. (a) "Project area" means, except as provided in Section 33320.2, 33320.3, 33320.4, or 33492.3, a predominantly urbanized area of a community that is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in this part, and that is selected by the planning commission pursuant to Section 33322. (b) As used in this section, "predominantly urbanized" means that not less than 80 percent of the land in the project area is either of the following: (1) Has been or is developed for urban uses. (2) Is an integral part of one or more areas developed for urban uses that are surrounded or substantially surrounded by parcels that have been or are developed for urban uses. Parcels separated by only an improved right-of-way shall be deemed adjacent for the purpose of this subdivision. Parcels that are not blighted shall not be included in the project area for the purpose of obtaining the allocation of taxes from the area pursuant to Section 33670 without other substantial justification for their inclusion. (c) For the purposes of this section, a parcel of property as shown on the official maps of the county assessor is developed if that parcel is developed in a manner that is consistent with zoning standards or is otherwise permitted under law. (d) Except for a redevelopment plan or plan amendment to add territory to a project area pursuant to Chapter 4.5 (commencing with Section 33492), a redevelopment plan or plan amendment to add territory to a project area shall not be adopted by a community if the proposed project area or area to be added by plan amendment, when aggregated with all other existing project areas within the community, would result in having (1) 25 percent of a city's or city and county's total land area included within the combined redevelopment project areas or (2) 10 percent of a county's total unincorporated land area included within redevelopment project areas. The limitations contained in this subdivision shall apply only to a project area for which a final redevelopment plan is adopted on or after January 1, 2012, or to an area that is added to a project area by an amendment to a redevelopment plan, which amendment is adopted on or after January 1, 2012. (e) The requirement that a project be predominantly urbanized shall apply only to a project area for which a final redevelopment plan is adopted on or after January 1, 1984, or to an area that is added to a project area by an amendment to a redevelopment plan, which amendment is adopted on or after January 1, 1984.SEC. 5.Section 33334.2 of the Health and Safety Code is amended to read: 33334.2. (a) Except as provided in subdivision (k), not less than 20 percent of all taxes that are allocated to the agency pursuant to Section 33670 shall be used by the agency for the purposes of increasing, improving, and preserving the community's supply of low- and moderate-income housing available at affordable housing cost, as defined by Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families, unless one of the following findings is made annually by resolution: (1) (A) That no need exists in the community to improve, increase, or preserve the supply of low- and moderate-income housing, including housing for very low income households in a manner that would benefit the project area and that this finding is consistent with the housing element of the community's general plan required by Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, including its share of the regional housing needs of very low income households and persons and families of low or moderate income. (B) This finding shall only be made if the housing element of the community's general plan demonstrates that the community does not have a need to improve, increase, or preserve the supply of low- and moderate-income housing available at affordable housing cost to persons and families of low or moderate income and to very low income households. This finding shall only be made if it is consistent with the planning agency's annual report to the legislative body on implementation of the housing element required by subdivision (b) of Section 65400 of the Government Code. No agency of a charter city shall make this finding unless the planning agency submits the report pursuant to subdivision (b) of Section 65400 of the Government Code. This finding shall not take effect until the agency has complied with subdivision (b) of this section. (2) (A) That some stated percentage less than 20 percent of the taxes that are allocated to the agency pursuant to Section 33670 is sufficient to meet the housing needs of the community, including its share of the regional housing needs of persons and families of low- or moderate-income and very low income households, and that this finding is consistent with the housing element of the community's general plan required by Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. (B) This finding shall only be made if the housing element of the community's general plan demonstrates that a percentage of less than 20 percent will be sufficient to meet the community's need to improve, increase, or preserve the supply of low- and moderate-income housing available at affordable housing cost to persons and families of low or moderate income and to very low income households. This finding shall only be made if it is consistent with the planning agency's annual report to the legislative body on implementation of the housing element required by subdivision (b) of Section 65400 of the Government Code. No agency of a charter city shall make this finding unless the planning agency submits the report pursuant to subdivision (b) of Section 65400 of the Government Code. This finding shall not take effect until the agency has complied with subdivision (b) of this section. (C) For purposes of making the findings specified in this paragraph and paragraph (1), the housing element of the general plan of a city, county, or city and county shall be current, and shall have been determined by the department pursuant to Section 65585 to be in substantial compliance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. (3) (A) That the community is making a substantial effort to meet its existing and projected housing needs, including its share of the regional housing needs, with respect to persons and families of low and moderate income, particularly very low income households, as identified in the housing element of the community's general plan required by Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, and that this effort, consisting of direct financial contributions of local funds used to increase and improve the supply of housing affordable to, and occupied by, persons and families of low or moderate income and very low income households is equivalent in impact to the funds otherwise required to be set aside pursuant to this section. In addition to any other local funds, these direct financial contributions may include federal or state grants paid directly to a community and that the community has the discretion of using for the purposes for which moneys in the Low and Moderate Income Housing Fund may be used. The legislative body shall consider the need that can be reasonably foreseen because of displacement of persons and families of low or moderate income or very low income households from within, or adjacent to, the project area, because of increased employment opportunities, or because of any other direct or indirect result of implementation of the redevelopment plan. No finding under this subdivision may be made until the community has provided or ensured the availability of replacement dwelling units as defined in Section 33411.2 and until it has complied with Article 9 (commencing with Section 33410). (B) In making the determination that other financial contributions are equivalent in impact pursuant to this subdivision, the agency shall include only those financial contributions that are directly related to programs or activities authorized under subdivision (e). (C) The authority for making the finding specified in this paragraph shall expire on June 30, 1993, except that the expiration shall not be deemed to impair contractual obligations to bondholders or private entities incurred prior to May 1, 1991, and made in reliance on the provisions of this paragraph. Agencies that make this finding after June 30, 1993, shall show evidence that the agency entered into the specific contractual obligation with the specific intention of making a finding under this paragraph in order to provide sufficient revenues to pay off the indebtedness. (b) Within 10 days following the making of a finding under either paragraph (1) or (2) of subdivision (a), the agency shall send the department and the Controller a copy of the finding, including the factual information supporting the finding and other factual information in the housing element that demonstrates that either (1) the community does not need to increase, improve, or preserve the supply of housing for low- and moderate-income households, including very low income households, or (2) a percentage less than 20 percent will be sufficient to meet the community's need to improve, increase, and preserve the supply of housing for low- and moderate-income households, including very low income households. Within 10 days following the making of a finding under paragraph (3) of subdivision (a), the agency shall send the department and the Controller a copy of the finding, including the factual information supporting the finding that the community is making a substantial effort to meet its existing and projected housing needs. Agencies that make this finding after June 30, 1993, shall also submit evidence to the department of its contractual obligations with bondholders or private entities incurred prior to May 1, 1991, and made in reliance on this finding. (c) In any litigation to challenge or attack a finding made under paragraph (1), (2), or (3) of subdivision (a), the burden shall be upon the agency to establish that the finding is supported by substantial evidence in light of the entire record before the agency. If an agency is determined by a court to have knowingly misrepresented any material facts regarding the community's share of its regional housing need for low- and moderate-income housing, including very low income households, or the community's production record in meeting its share of the regional housing need pursuant to the report required by subdivision (b) of Section 65400 of the Government Code, the agency shall be liable for all court costs and plaintiff's attorney's fees, and shall be required to allocate not less than 25 percent of the agency's tax increment revenues to its Low and Moderate Income Housing Fund in each year thereafter. (d) Nothing in this section shall be construed as relieving any other public entity or entity with the power of eminent domain of any legal obligations for replacement or relocation housing arising out of its activities. (e) In carrying out the purposes of this section, the agency may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low- and moderate-income persons or families, including the following: (1) Acquire real property or building sites subject to Section 33334.16. (2) (A) Improve real property or building sites with onsite or offsite improvements, but only if both (i) the improvements are part of the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited by the improvements, and are a reasonable and fundamental component of the housing units, and (ii) the agency requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 33334.3. (B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the agency shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the agency shall be determined by dividing the number of housing units that are affordable to low- or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project. (3) Donate real property to private or public persons or entities. (4) Finance insurance premiums pursuant to Section 33136. (5) Construct buildings or structures. (6) Acquire buildings or structures. (7) Rehabilitate buildings or structures. (8) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106, very low income households, as defined by Section 50105, lower income households, as defined by Section 50079.5, or persons and families of low or moderate income, as defined by Section 50093, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies. (9) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges. (10) Maintain the community's supply of mobilehomes. (11) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates. (f) The agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 33413. However, nothing in this section shall be construed as limiting in any way the requirements of that section. (g) (1) The agency may use these funds inside or outside the project area. 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. The 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 always of benefit to a project. Unless the legislative body finds, before the redevelopment plan is adopted, that the provision of low- and moderate-income housing outside the project area will be of benefit to the project, the project area shall include property suitable for low- and moderate-income housing. (2) (A) The Contra Costa County Redevelopment Agency may use these funds anywhere within the unincorporated territory, or within the incorporated limits of the City of Walnut Creek on sites contiguous to the Pleasant Hill BART Station Area Redevelopment Project area. The agency may only use these funds outside the project area upon a resolution of the agency and board of supervisors determining that the use will be of benefit to the project area. In addition, the agency may use these funds within the incorporated limits of the City of Walnut Creek only if the agency and the board of supervisors find all of the following: (i) Both the County of Contra Costa and the City of Walnut Creek have adopted and are implementing complete and current housing elements of their general plans that the Department of Housing and Community Development has determined to be in 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. (ii) The development to be funded shall not result in any residential displacement from the site where the development is to be built. (iii) The development to be funded shall not be constructed in an area that currently has more than 50 percent of its population comprised of racial minorities or low-income families. (iv) The development to be funded shall allow construction of affordable housing closer to a rapid transit station than could be constructed in the unincorporated territory outside the Pleasant Hill BART Station Area Redevelopment Project. (B) If the agency uses these funds within the incorporated limits of the City of Walnut Creek, all of the following requirements shall apply: (i) The funds shall be used only for the acquisition of land for, and the design and construction of, the development of housing containing units affordable to, and occupied by, low- and moderate-income persons. (ii) If less than all the units in the development are affordable to, and occupied by, low- or moderate-income persons, any agency assistance shall not exceed the amount needed to make the housing affordable to, and occupied by, low- or moderate-income persons. (iii) The units in the development that are affordable to, and occupied by, low- or moderate-income persons shall remain affordable for a period of at least 55 years. (iv) The agency and the City of Walnut Creek shall determine, if applicable, whether Article XXXIV of the California Constitution permits the development. (h) The Legislature finds and declares that expenditures or obligations incurred by the agency pursuant to this section shall constitute an indebtedness of the project. (i) This section shall only apply to taxes allocated to a redevelopment agency for which a final redevelopment plan is adopted on or after January 1, 1977, or for any area that is added to a project by an amendment to a redevelopment plan, which amendment is adopted on or after the effective date of this section. An agency may, by resolution, elect to make all or part of the requirements of this section applicable to any redevelopment project for which a redevelopment plan was adopted prior to January 1, 1977, subject to any indebtedness incurred prior to the election. (j) (1) (A) An action to compel compliance with the requirement of Section 33334.3 to deposit not less than 20 percent of all taxes that are allocated to the agency pursuant to Section 33670 in the Low and Moderate Income Housing Fund shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in the Low and Moderate Income Housing Fund. (B) An action to compel compliance with the requirement of this section or Section 33334.6 that money deposited in the Low and Moderate Income Housing Fund be used by the agency for purposes of increasing, improving, and preserving the community's supply of low- and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds. (C) An agency found to have deposited less into the Low and Moderate Income Housing Fund than mandated by Section 33334.3 or to have spent money from the Low and Moderate Income Housing Fund for purposes other than increasing, improving, and preserving the community's supply of low- and moderate-income housing, as mandated, by this section or Section 33334.6 shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 of the Government Code or may do either of the following: (i) Petition the court under Section 970.6 for repayment in installments. (ii) Repay the portion of the judgment due to the Low and Moderate Income Housing Fund in equal installments over a period of five years following the judgment. (2) Repayment shall not be made from the funds required to be set aside or used for low- and moderate-income housing pursuant to this section. (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney's fees if included in the judgment, are due and shall be paid upon entry of judgment or order. (4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 of the Government Code for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section. (5) This subdivision applies to actions filed on and after January 1, 2006. (6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (k) (1) From July 1, 2009, to June 30, 2010, inclusive, an agency may suspend all or part of its required allocation to the Low and Moderate Income Housing Fund from taxes that are allocated to that agency pursuant to Section 33670. (2) An agency that suspends revenue pursuant to paragraph (1) shall pay back to its low- and moderate-income housing fund the amount of revenue that was suspended in the 2009-10 fiscal year pursuant to this subdivision from July 1, 2010, to June 30, 2015, inclusive. (3) An agency that suspends revenue pursuant to paragraph (1) and fails to repay or have repaid on its behalf the amount of revenue suspended pursuant to paragraph (2) shall, commencing July 1, 2015, be required to allocate an additional 5 percent of all taxes that are allocated to that agency pursuant to Section 33670 for low- and moderate-income housing for the remainder of the time that the agency receives allocations of tax revenue pursuant to Section 33670. (4) An agency that fails to pay or have paid on its behalf the full amount calculated pursuant to subparagraph (J) of paragraph (2) of subdivision (a) of Section 33690, or subparagraph (J) of paragraph (2) of subdivision (a) of Section 33690.5, as the case may be, shall, commencing July 1, 2010, or July 1, 2011, as applicable, be required to allocate an additional 5 percent of all taxes that are allocated to that agency pursuant to Section 33670 for low- and moderate-income housing for the remainder of the time that the agency receives allocations of tax revenue pursuant to Section 33670.SEC. 6.Section 33353.2 of the Health and Safety Code is amended to read: 33353.2. Except as provided in Section 33679.2, "affected taxing entity" means any governmental taxing agency that levies a property tax on all or any portion of the property located in the adopted project area in the fiscal year prior to the fiscal year in which the report prepared pursuant to Section 33328 is issued or in any fiscal year after the date the redevelopment plan is adopted. To the extent that a new governmental taxing agency wholly or partially replaces the geographic jurisdiction of a preexisting governmental taxing agency, the new taxing agency shall be an "affected taxing entity" and the preexisting taxing agency shall no longer be an "affected taxing entity."SEC. 7.Section 33367 of the Health and Safety Code is amended to read: 33367. The ordinance shall contain all of the following: (a) The purposes and intent of the legislative body with respect to the project area. (b) The plan incorporated by reference. (c) A designation of the approved plan as the official redevelopment plan of the project area. (d) The findings and determinations of the legislative body that: (1) The project area is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in this part. This finding shall be supported by empirical and, to the greatest extent feasible, quantifiable evidence demonstrating the prevalence of specific conditions set forth in Section 33031 on specific properties that are so substantial that they cause a reduction of, or lack of, proper utilization of the entire project area. Evidence shall be reasonable in nature, credible, and of solid value. Conclusions not based on documented evidence of specific conditions shall be deemed insufficient. (2) The redevelopment plan would redevelop the area in conformity with this part and in the interests of the public peace, health, safety, and welfare. (3) The adoption and carrying out of the redevelopment plan is economically sound and feasible. (4) The redevelopment plan is consistent with the general plan of the community, including, but not limited to, the community's housing element, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. (5) The carrying out of the redevelopment plan would promote the public peace, health, safety, and welfare of the community and would effectuate the purposes and policy of this part. (6) The condemnation of real property, if provided for in the redevelopment plan, is necessary to the execution of the redevelopment plan and adequate provisions have been made for payment for property to be acquired as provided by law. (7) The agency has a feasible method or plan for the relocation of families and persons displaced from the project area, if the redevelopment plan may result in the temporary or permanent displacement of any occupants of housing facilities in the project area. (8) (A) There are, or shall be provided, in the project area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families and persons displaced from the project area, decent, safe, and sanitary dwellings equal in number to the number of and available to the displaced families and persons and reasonably accessible to their places of employment. (B) Families and persons shall not be displaced prior to the adoption of a relocation plan pursuant to Sections 33411 and 33411.1. Dwelling units housing persons and families of low or moderate income shall not be removed or destroyed prior to the adoption of a replacement housing plan pursuant to Sections 33334.5, 33413, and 33413.5. (9) All noncontiguous areas of a project area are either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of taxes from the area pursuant to Section 33670 without other substantial justification for their inclusion. (10) Inclusion of any lands, buildings, or improvements which are not detrimental to the public health, safety, or welfare is necessary for the effective redevelopment of the area of which they are a part; that any area included is necessary for effective redevelopment and is not included for the purpose of obtaining the allocation of tax increment revenues from the area pursuant to Section 33670 without other substantial justification for its inclusion. (11) The elimination of blight and the redevelopment of the project area could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the agency. (12) The project area is predominantly urbanized, as defined by subdivision (b) of Section 33320.1. (13) The time limitation and, if applicable, the limitation on the number of dollars to be allocated to the agency that are contained in the plan are reasonably related to the proposed projects to be implemented in the project area and to the ability of the agency to eliminate blight within the project area. (14) The implementation of the redevelopment plan will improve or alleviate the physical and economic conditions of blight in the project area, as described in the report prepared pursuant to Section 33352. (e) A statement that the legislative body is satisfied that permanent housing facilities will be available within three years from the time occupants of the project area are displaced and that, pending the development of the facilities, there will be available to the displaced occupants adequate temporary housing facilities at rents comparable to those in the community at the time of their displacement.SEC. 8.Section 33426.5 of the Health and Safety Code is amended to read: 33426.5. Notwithstanding the provisions of Sections 33391, 33430, 33433, and 33445, or any other provision of this part, an agency shall not provide any form of direct assistance to the following: (a) An automobile dealership which will be or is on a parcel of land which has not previously been developed for urban use, unless, prior to the effective date of the act that adds this section, the agency either owns the land or has entered into an enforceable agreement, for the purchase of the land or of an interest in the land, including, but not limited to, a lease or an agreement containing covenants affecting real property, that requires the land to be developed and used as an automobile dealership. (b) (1) A development that will be or is on a parcel of land of five acres or more which has not previously been developed for urban use and that will, when developed, generate sales or use tax pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code, unless the principal permitted use of the development is office, hotel, manufacturing, or industrial, or unless, prior to the effective date of the act that adds this section, the agency either owns the land or has entered into an enforceable agreement, for the purchase of the land or of an interest in the land, including, but not limited to, a lease or an agreement containing covenants affecting real property, that requires the land to be developed. (2) For the purposes of this subdivision, a parcel shall include land on an adjacent or nearby parcel on which a use exists that is necessary for the legal development of the parcel. (c) A development that will be or is on a parcel of land of 20 acres or more that has not previously been developed for urban use, except that this restriction shall not apply to land located within both a project area adopted pursuant to Chapter 4.5 (commencing with Section 33492) and the boundaries of a former military base that has been closed or realigned by the actions of the federal Defense Base Closure and Realignment Commission. (d) A development or business, either directly or indirectly, for the acquisition, construction, improvement, rehabilitation, or replacement of property that is or would be used for a golf course or for a racetrack, speedway, or other racing venue. (e) A development or business, either directly or indirectly, for the acquisition, construction, improvement, rehabilitation, or replacement of property that is or would be used for gambling or gaming of any kind whatsoever including, but not limited to, casinos, gaming clubs, bingo operations, or any facility wherein banked or percentage games, any form of gambling device, or lotteries, other than the California State Lottery, are or will be played. (f) The prohibition in subdivision (e) is not intended to prohibit a redevelopment agency from acquiring property on or in which an existing gambling enterprise is located, for the purpose of selling or leasing the property for uses other than gambling, provided that the agency acquires the property for fair market value. (g) This section shall not be construed to apply to agency assistance in the construction of public improvements that serve all or a portion of a project area and that are not required to be constructed as a condition of approval of a development described in subdivision (a), (b), (c), (d), or (e), or to prohibit assistance in the construction of public improvements that are being constructed for a development that is not described in subdivision (a), (b), (c), (d), or (e).SEC. 9.Section 33444.7 is added to the Health and Safety Code, to read: 33444.7. An agency may establish a program under which it loans or grants funds to owners or tenants to improve, rehabilitate, or retrofit buildings or structures located within the redevelopment project area to increase energy efficiency for such buildings or structures, or to facilitate infill development of areas targeted for such development in an approved sustainable communities strategy that applies to the agency's jurisdiction.SEC. 10.Section 33444.8 is added to the Health and Safety Code, to read: 33444.8. (a) An agency may provide direct assistance to businesses within project areas in connection with new or existing facilities for industrial or manufacturing uses or similar uses of statewide benefit, where the assistance provided is reasonably expected to result in the retention or expansion of not less than 25 full-time equivalent jobs within the project area. (b) Direct assistance may include, but is not limited to, loans, loan guarantees, or the provision or replacement of machinery and equipment in new or existing facilities for industrial or manufacturing uses in the project area. (c) The Legislature finds and declares that the purpose of this section is to clarify existing law and to provide agencies with additional authority to assist businesses in order to encourage the retention of existing employment opportunities and the attraction of new employment opportunities. These activities and programs shall constitute redevelopment as prescribed in Sections 33020 and 33021.SEC. 11.Section 33488 of the Health and Safety Code is amended to read: 33488. Prior to merging project areas pursuant to Section 33486, a redevelopment agency shall notify the department and the Controller of its intention to merge its project areas, which shall occur no later than 30 days prior to adoption of the ordinance which provides for merger.SEC. 12.Section 33491 is added to the Health and Safety Code, to read: 33491. (a) Commencing with the implementation plan next adopted following January 1, 2012, an implementation plan shall contain the specific goals and objectives of the agency for the project area and the specific programs and potential projects that will cause not less than 50 percent of its net unencumbered revenue during the next five years to be expended for one or more of the following: (1) Development, including rehabilitation, resulting in significant job retention or creation. (2) Remediation of contaminated properties. (3) Infill and transit-oriented development. (4) Military base conversion. (5) Public infrastructure, excluding buildings. (6) Housing affordable to persons of very low and extremely low income. (b) "Net unencumbered revenue" shall mean all revenue received by the agency, less: debt service on bonds, notes and other obligations entered into prior to January 1, 2012; payments to taxing agencies pursuant to Section 33607.5 or 33607.7 or under agreements entered into pursuant to former Section 33401; and deposits in the agency's low- and moderate-income housing fund. (c) Prior to approving an implementation plan subject to this subdivision, the agency shall obtain the recommendation of the project area committee. If a project area committee does not exist, the agency shall obtain the recommendation of a community advisory body designated by the legislative body which is representative of interests described in subdivision (c) of Section 33385. If the project area committee or community advisory body does not make its recommendation within 60 days after receiving a copy of the proposed implementation plan, the agency may consider the implementation plan without their recommendation. (d) The implementation plans adopted every five years after the implementation plan that implements this subdivision shall evaluate the agency's progress in achieving the goals and objectives described in subdivision (a). The agency shall obtain the recommendation of the project area committee or community advisory body in the manner set forth in subdivision (c). If a project area committee or community advisory body recommends against adoption of the implementation plan adopted 10 years or 20 years after the implementation plan that implements this subdivision, the agency shall only adopt that implementation plan upon a two-thirds vote of its members. Until an implementation plan has been approved as set forth in this subdivision, an agency shall not undertake any activity not provided for in the existing implementation plan.SEC. 13.Section 33601 of the Health and Safety Code is amended to read: 33601. (a) An agency may borrow money or accept financial or other assistance from the state or the federal government or any other public agency for any redevelopment project within its area of operation, and may comply with any conditions of such loan or grant. (b) An agency may borrow money (by the issuance of bonds or otherwise) or accept financial or other assistance from any private lending institution for any redevelopment project for any of the purposes of this part, and may execute trust deeds or mortgages on any real or personal property owned or acquired. (c) An agency shall pay interest on any money borrowed from the legislative body at a rate no greater than simple interest at rate equal to the rate on 10-year United States Treasury bills on the date the loan is made. The provisions of this subdivision shall become effective January 1, 2012, and shall apply to money borrowed from the legislative body at any time, regardless of the provisions of any note, agreement, or other written instrument to the contrary.SEC. 14.Section 33607.9 is added to the Health and Safety Code, to read: 33607.9. On or before January 1, 2013, the Controller shall develop a simple, uniform, and consistent methodology for the calculation, payment, and reporting of passthrough payments as required by Sections 33607.5 and 33607.7 that is consistent with existing published case law and Attorney General opinions interpreting Sections 33607.5 and 33607.7. The Controller shall appoint an advisory committee to advise in the development of methodology. The advisory committee shall include representatives from the Chancellor of the California Community Colleges, the State Department of Education, the California Redevelopment Association, county auditor-controllers, and any other authorities in the field that the Controller deems necessary or appropriate.SEC. 15.Section 33610 of the Health and Safety Code is amended to read: 33610. (a) At any time after the agency created for any community becomes authorized to transact business and exercise its powers, the legislative body of the community may appropriate to the agency such amounts as the legislative body deems necessary for the administrative expenses and overhead of the agency. The money appropriated may be paid to the agency as a grant to defray the expenses and overhead, or as a loan to be repaid upon such terms and conditions as the legislative body may provide. (b) In addition to the common understanding and usual interpretation of the term, "administrative expense" includes, but is not limited to, expenses of redevelopment planning and dissemination of redevelopment information. (c) An agency may enter into an agreement with the legislative body to reimburse the legislative body for administrative expenses and overhead of the agency paid by the legislative body. An agency shall not pay costs of providing services, materials, or facilities which do not directly benefit the redevelopment project.SEC. 16.Section 33670 of the Health and Safety Code is amended to read: 33670. Any redevelopment plan adopted prior to January 1, 2012, may contain a provision that taxes, if any, levied upon taxable property in a redevelopment project each year by or for the benefit of any city, county, city and county, district, or other public corporation (hereinafter sometimes called "taxing agencies") after the effective date of the ordinance approving the redevelopment plan, shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment project as shown upon the assessment roll used in connection with the taxation of that property by the taxing agency, last equalized prior to the effective date of the ordinance, shall be allocated to and when collected shall be paid to the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any taxing agency or agencies which did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after that effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date); and (b) Except as provided in subdivision (e) or in Section 33492.15, that portion of the levied taxes each year in excess of that amount shall be allocated to and when collected shall be paid into a special fund of the 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 project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies as taxes on all other property are paid. (c) In any redevelopment project in which taxes have been divided pursuant to this section prior to 1968, located within any county with total assessed valuation subject to general property taxes for the 1967-68 fiscal year between two billion dollars ($2,000,000,000) and two billion one hundred million dollars ($2,100,000,000), if the total assessed valuation of taxable property within the redevelopment project for the 1967-68 fiscal year was reduced, the total sum of the assessed value of taxable property used as the basis for apportionment of taxes under subdivision (a) shall be reduced by 10 percent for the 1968-69 fiscal year and fiscal years thereafter. (d) For the purposes of this section, taxes shall not include taxes from the supplemental assessment roll levied pursuant to Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of the Revenue and Taxation Code for the 1983-84 fiscal year. (e) That portion of the taxes in excess of the amount identified in subdivision (a) which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that taxing agency. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989.SEC. 17.Section 33675.1 is added to the Health and Safety Code, to read: 33675.1. On or before January 1, 2013, and periodically thereafter, the Controller shall review the uniform form for a statement of indebtedness and a reconciliation statement prescribed pursuant to Section 33675 and shall, after obtaining the input of county auditor-controllers, the California Redevelopment Association, the Society of Certified Public Accountants, and any other authorities in the field that the Controller deems necessary or appropriate, make revisions to the uniform form for a statement of indebtedness and a reconciliation statement consistent with this part, including, but not limited to, the types and amounts of indebtedness to be reported.SEC. 18.Article 6.5 (commencing with Section 33679.1) is added to Chapter 6 of Part 1 of Division 24 of the Health and Safety Code, to read: Article 6.5. Tax Increment Financing for Projects Created After January 1, 2012 33679.1. (a) This article shall apply to any redevelopment plan adopted on or after January 1, 2012. For purposes of a redevelopment plan that is adopted prior to January 1, 2012, but amended after January 1, 2012, this article shall apply only to new territory added by that amendment. (b) A redevelopment plan or plan amendment that is subject to this article shall be adopted and implemented in the manner provided by this part, except to the extent that the other provisions of this part are inconsistent with this article, in which case this article shall prevail. 33679.2. For purposes of this article, the following terms shall have the following meanings: (a) Notwithstanding Section 33353.2, for purposes of a redevelopment plan or plan amendment subject to this article, "affected taxing entity" means any noneducational taxing agency that levies a property tax on all or any portion of the property located in the adopted project area in the fiscal year prior to the fiscal year in which the report prepared pursuant to Section 33328 is issued or in any fiscal year after the date the redevelopment plan is adopted. To the extent that a new noneducational taxing agency wholly or partially replaces the geographic jurisdiction of a preexisting noneducational taxing agency, the new noneducational taxing agency shall be an "affected taxing entity" and the preexisting taxing agency shall no longer be an "affected taxing entity." (b) "Noneducational taxing agency" means a city, county, city and county, district, or other public corporation, except a school district, community college district, or county office of education. (c) "Taxes" shall include, but without limitation, all levies on an ad valorem basis upon land or real property. "Taxes" shall not include any amounts of money deposited in a Sales and Use Tax Compensation Fund pursuant to Section 97.68 of the Revenue and Taxation Code or a Vehicle License Fee Property Tax Compensation Fund pursuant to Section 97.70 of the Revenue and Taxation Code. 33679.3. Any redevelopment plan or plan amendment that is subject to this article may contain a provision that taxes, if any, levied upon taxable property in a redevelopment project each year by or for the benefit of any noneducational taxing agencies after the effective date of the ordinance approving the redevelopment plan or plan amendment, shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the noneducational taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment project as shown upon the assessment roll used in connection with the taxation of that property by the noneducational taxing agency, last equalized prior to the effective date of the ordinance, shall be allocated to and when collected shall be paid to the respective noneducational taxing agencies as taxes by or for the noneducational taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any noneducational taxing agency or agencies which did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after that effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date); and (b) Except as provided in subdivision (c) or in Section 33492.15, that portion of the levied taxes each year by or for noneducational taxing agencies in excess of that amount shall be allocated to and when collected shall be paid into a special fund of the 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 project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the redevelopment project by or for noneducational taxing agencies shall be paid to the respective noneducational taxing agencies. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project by or for noneducational taxing agencies shall be paid to the respective noneducational taxing agencies as taxes on all other property are paid. (c) That portion of the taxes in excess of the amount identified in subdivision (a) which are attributable to a tax rate levied by a noneducational taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that noneducational taxing agency. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the noneducational taxing agency. (d) It is the intent of the Legislature in enacting this section and the amendments to Section 33670 made by the act adding this section to prohibit the use of Section 33670 to finance community redevelopment pursuant to any redevelopment plan or plan amendment that is adopted on or after January 1, 2012. It is the intent of the Legislature that this section provides an alternate method for financing community redevelopment, within the meaning of Section 16 of Article XVI of the California Constitution, for redevelopment plans and plan amendments adopted on or after January 1, 2012, that exclude property taxes levied by or for school districts, community college districts, or county offices of education. Except as specifically provided in this article in regard to plan amendments that add additional territory to an existing redevelopment plan, it is not the intent of the Legislature that this article limit or otherwise apply to the financing of community redevelopment pursuant to a redevelopment plan adopted prior to January 1, 2012. 33679.4. Notwithstanding any other law, for purposes of any redevelopment plan or plan amendment subject to this article: (a) A reference in this part to Section 33670 shall be construed to be a reference to Section 33679.3. (b) Sections 33328.1, 33360.5, 33607.5, and 33676 shall not apply. 33679.5. (a) Upon the written request of a redevelopment agency for the purpose of assisting the agency, the county auditor or other officer responsible for allocation of tax revenues pursuant to Section 33679.3 shall prepare a statement each fiscal year for each redevelopment project area and each area added to a redevelopment project area by amendment, which provides for all the following: (1) The total taxable assessed value of secured, unsecured, and state-assessed railroad and nonoperating, nonunitary property. (2) The total taxable assessed value used by the county auditor to determine the division of taxes required by subdivision (a) of Section 33679.3. (3) The total taxable assessed value used by the county auditor to determine the division of taxes required by subdivision (b) of Section 33679.3. (4) The estimated amount of taxes calculated pursuant to subdivision (b) of Section 33679.3, as adjusted by subdivision (c) of Section 33679.3 and subdivision (a) of Section 33679.6. The statement shall specify the gross amount of tax-increment revenue allocated to the agency and any payments to other noneducational taxing entities that are deducted from the gross amount allocated. (5) The estimated amount of taxes to be allocated pursuant to subdivisions (c) and (d) of Section 100 of the Revenue and Taxation Code. (b) If requested to provide a statement pursuant to subdivision (a), the county auditor shall deliver each statement to the respective redevelopment agencies receiving property tax revenue on or before November 30 of each year. (c) (1) Upon the request of a redevelopment agency pursuant to subdivision (a), and concurrently with the disbursement of those property tax revenues, the county auditor shall prepare a statement which provides the amount of disbursement made pursuant to all of the following: (A) Section 33679.3. (B) Section 100 of the Revenue and Taxation Code. (C) Supplemental property tax revenues allocated pursuant to Sections 75 to 75.80 of the Revenue and Taxation Code, inclusive. (2) The statement provided pursuant to this subdivision shall also include corrections, updates, or adjustments, if any, to the property tax revenue amounts and taxable assessed values reported pursuant to subdivision (a) of Section 33679.3. (d) The county auditor shall also provide to a redevelopment agency, no later than 30 days after the receipt of a written request from that agency, information or clarification with respect to any statement issued pursuant to this section. (e) If any redevelopment agency requests a statement or information pursuant to this section, the agency shall reimburse the county auditor for all actual and reasonable costs incurred. 33679.6. (a) Prior to the adoption by the legislative body of a redevelopment plan providing for tax increment financing pursuant to Section 33679.3, any affected taxing agency may elect to be allocated, in addition to the portion of taxes allocated to the affected taxing agency pursuant to subdivision (a) of Section 33679.3, all or any portion of the tax revenues allocated to the agency pursuant to subdivision (b) of Section 33679.3 attributable to increases in the rate of tax imposed for the benefit of the taxing agency which levy occurs after the tax year in which the ordinance adopting the redevelopment plan becomes effective. (b) The governing body of any affected taxing agency electing to receive allocation of taxes pursuant to this section in addition to taxes allocated to it pursuant to subdivision (a) of Section 33679.3 shall adopt a resolution to that effect and transmit the resolution, prior to the adoption of the redevelopment plan, to (1) the legislative body, (2) the agency, and (3) the official or officials performing the functions of levying and collecting taxes for the affected taxing agency. Upon receipt by the official or officials of the resolution, allocation of taxes pursuant to this section to the affected taxing agency which has elected to receive the allocation pursuant to this section by the adoption of the resolution and allocation of taxes pursuant to this section shall be made at the time or times allocations are made pursuant to subdivision (a) of Section 33679.3. (c) An affected taxing agency, at any time after the adoption of the resolution, may elect not to receive all or any portion of the additional allocation of taxes pursuant to this section by rescinding the resolution or by amending the same, as the case may be, and giving notice thereof to the legislative body, the agency, and the official or officials performing the functions of levying and collecting taxes for the affected taxing agency. After receipt of a notice by the official or officials that an affected taxing agency has elected not to receive all or a portion of the additional allocation of taxes by rescission or amendment of the resolution, any allocation of taxes to the affected taxing agency required to be made pursuant to this section shall not thereafter be made but shall be allocated to the agency, and the affected taxing agency shall thereafter be allocated only the portion of taxes provided for in subdivision (a) of Section 33679.3. After receipt of a notice by the official or officials that an affected taxing agency has elected to receive additional tax revenues attributable to only a portion of the increases in the rate of tax, only that portion of the tax revenues shall thereafter be allocated to the affected taxing agency in addition to the portion of taxes allocated pursuant to subdivision (a) of Section 33679.3, and the remaining portion thereof shall be allocated to the agency. 33679.7. (a) (1) All the amounts calculated pursuant to this section shall be calculated after the amount required to be deposited in the Low and Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has been deducted from the total amount of tax increment funds received by the agency in the applicable fiscal year. (2) The payments made pursuant to this section shall be in addition to any amounts the affected taxing entities receive pursuant to subdivision (a) of Section 33679.3. The payments made pursuant to this section to the affected taxing entities, including the community, shall be allocated among the affected taxing entities, including the community if the community elects to receive payments, in proportion to the percentage share of property taxes of each affected taxing entity, including the community, receives during the fiscal year the funds are allocated, which percentage share shall be determined without regard to (A) any amounts allocated to a city, a city and county, or a county pursuant to Sections 97.68 and 97.70 of the Revenue and Taxation Code, (B) any allocation reductions to a city, a city and county, a county, a special district, or a redevelopment agency pursuant to Sections 97.71, 97.72, and 97.73 of the Revenue and Taxation Code and Section 33681.12, and (C) any amounts allocated to a school district, community college district, or county office of education. The agency shall reduce its payments pursuant to this section to an affected taxing entity by any amount the agency has paid, directly or indirectly, pursuant to Section 33445, 33445.5, 33445.6, 33446, or any other law other than this section for, or in connection with, a public facility owned or leased by that affected taxing agency, except for any amounts that are unrelated to the specific project area or amendment governed by this section. For purposes of calculating the allocation of payments made to affected taxing entities pursuant to this section, an Educational Revenue Augmentation Fund created pursuant to Article 3 (commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code is not an affected taxing entity. (b) Commencing with the first fiscal year in which the agency receives tax increments and continuing through the last fiscal year in which the agency receives tax increments, a redevelopment agency shall pay to the affected taxing entities, including the community if the community elects to receive a payment, an amount equal to 25 percent of the tax increments received by the agency after the amount required to be deposited in the Low and Moderate Income Housing Fund has been deducted. In any fiscal year in which the agency receives tax increments, the community that has adopted the redevelopment project area may elect to receive the amount authorized by this paragraph. If the community elects not to receive the amount authorized by this subdivision, the portion of the payment made pursuant to this subdivision that would otherwise have been calculated for and paid to the community based on the community's proportionate share of property tax revenues shall remain with the agency. (c) Commencing with the 11th fiscal year in which the agency receives tax increments and continuing through the last fiscal year in which the agency receives tax increments, a redevelopment agency shall pay to the affected taxing entities, other than the community which has adopted the project, in addition to the amounts paid pursuant to subdivision (b) and after deducting the amount allocated to the Low and Moderate Income Housing Fund, an amount equal to 21 percent of an amount, which shall be calculated by applying the tax rate for the affected taxing entities against the amount by which the assessed value of the taxable property in the redevelopment project, as shown upon the assessment roll of the county last equalized on the current year anniversary of the effective date of the ordinance adopting the redevelopment plan or plan amendment, as applicable, exceeds the assessed value of the taxable property in the redevelopment project, as shown upon the assessment roll of the county last equalized on the 10th anniversary of the effective date of the ordinance adopting the redevelopment plan or plan amendment. The portion of the payment made pursuant to this subdivision that would otherwise have been calculated for and paid to the community, based on the community's proportionate share of property tax revenues, shall instead be allocated among the other affected taxing entities based on their respective percentage shares calculated in accordance with paragraph (2) of subdivision (a), except that the calculation shall be based on the percentage share of property taxes that each affected taxing entity, excluding the community, receives during the fiscal year that the funds are allocated. (d) Commencing with the 31st fiscal year in which the agency receives tax increments and continuing through the last fiscal year in which the agency receives tax increments, a redevelopment agency shall pay to the affected taxing entities, other than the community which has adopted the project, in addition to the amounts paid pursuant to subdivisions (b) and (c) and after deducting the amount allocated to the Low and Moderate Income Housing Fund, an amount equal to 14 percent of an amount, which shall be calculated by applying the tax rate for the affected taxing entities against the amount by which the assessed value of the taxable property in the redevelopment project, as shown upon the assessment roll of the county last equalized on the current year anniversary of the effective date of the ordinance adopting the redevelopment plan or plan amendment exceeds the assessed value of the taxable property in the redevelopment project, as shown upon the assessment roll of the county last equalized on the 30th year anniversary of the effective date of the ordinance adopting the redevelopment plan or plan amendment. The portion of the payment made pursuant to this subdivision that would otherwise have been calculated for and paid to the community, based on the community's proportionate share of property tax revenues, shall instead be allocated among the other affected taxing entities based on their respective percentage shares calculated in accordance with paragraph (2) of subdivision (a), except that the calculation shall be based on the percentage share of property taxes that each affected taxing entity, excluding the community, receives during the fiscal year that the funds are allocated. (e) (1) Prior to incurring any loans, bonds, or other indebtedness, except loans or advances from the community, the agency may subordinate to the loans, bonds, or other indebtedness the amount required to be paid to an affected taxing entity by this section, provided that the affected taxing entity has approved these subordinations pursuant to this subdivision. (2) At the time the agency requests an affected taxing entity to subordinate the amount to be paid to it, the agency shall provide the affected taxing entity with substantial evidence that sufficient funds will be available to pay both the debt service and the payments required by this section, when due. (3) Within 45 days after receipt of the agency's request, the affected taxing entity shall approve or disapprove the request for subordination. An affected taxing entity may disapprove a request for subordination only if it finds, based upon substantial evidence, that the agency will not be able to pay the debt payments and the amount required to be paid to the affected taxing entity. If the affected taxing entity does not act within 45 days after receipt of the agency's request, the request to subordinate shall be deemed approved and shall be final and conclusive. (f) (1) The Legislature finds and declares both of the following: (A) The payments made pursuant to this section are necessary in order to alleviate the financial burden and detriment that affected taxing entities may incur as a result of the adoption of a redevelopment plan, and payments made pursuant to this section will benefit redevelopment project areas. (B) The payments made pursuant to this section are the exclusive payments that are required to be made by a redevelopment agency to affected taxing entities during the term of a redevelopment plan. (2) Notwithstanding any other law, a redevelopment agency shall not be required, either directly or indirectly, as a measure to mitigate a significant environmental effect or as part of any settlement agreement or judgment brought in any action to contest the validity of a redevelopment plan pursuant to Section 33501, to make any other payments to affected taxing entities, or to pay for public facilities that will be owned or leased to an affected taxing entity.SEC. 19.(a) By January 1, 2013, the Controller shall issue regulations revising and consolidating reporting for redevelopment agencies. The goal of the regulations shall be to do all of the following: (1) unify and simplify the reporting requirements of redevelopment agencies; (2) focus reporting requirements on information that will be of the greatest utility in monitoring the activities of redevelopment agencies and their compliance with the provisions of the Community Redevelopment Law; and (3) produce consistent and comparable data using a user-friendly, self-checking electronic data reporting system. The Controller shall consult with an advisory committee comprised of persons nominated by the department, the Legislative Analyst, the California Society of Certified Public Accountants, the California Redevelopment Association, and any other authorities in the field that the Controller deems necessary and appropriate. (b) In connection with issuing the regulations described in subdivision (a), by January 1, 2013, the Controller shall prepare or cause to be prepared a management study that evaluates the reporting of redevelopment agencies and recommends any new management systems, including required technology, needed to implement the proposed regulations.SEC. 20.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to preserve housing funds that are needed to house elderly individuals and working families, it is necessary that this act take effect immediately.
