Bill Text: CA AB1598 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Affordable housing authorities.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2017-10-13 - Chaptered by Secretary of State - Chapter 764, Statutes of 2017. [AB1598 Detail]

Download: California-2017-AB1598-Amended.html

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Amended  IN  Assembly  April 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 1598

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Introduced by Assembly Member Mullin

February 17, 2017

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An act to amend Sections 62001, 62003, and 62004 of, and to add Section 62003.5 to, add Division 5 (commencing with Section 62250) to Title 6 of the Government Code, relating to economic development. housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 1598, as amended, Mullin. Community revitalization and investment authorities. Affordable housing authorities.

Existing law authorizes certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. Existing law provides for the financing of these activities by, among other things, the issuance of bonds serviced by property tax increment revenues, and requires the authority to adopt a community revitalization and investment plan for the community revitalization and investment area that includes elements describing and governing revitalization activities. Existing law requires a community revitalization and investment plan to include a 30-year limit for establishing loans, advances, and indebtedness by the authority.

This bill would authorize a city, county, or city and county to adopt a resolution creating an affordable housing authority with power limited to providing low- and moderate-income housing and with funded through a low- and moderate-income housing fund, as specified. The bill would authorize an authority created pursuant to those provisions to have boundaries that are identical to the boundaries of the city, county, or city and county that created the authority. The bill would require the community revitalization and authority to adopt an affordable housing investment plan for an authority created pursuant to these provisions to include that includes, among other things, an affordable housing program. The bill would require an authority created pursuant to these provisions to include a 45-year limit for establishing loans, advances, and indebtedness by the authority. The bill would authorize an authority created pursuant to these provisions to provide for the receipt and use of any increase of the total receipts of local sales and use tax or transactions and use tax from one year to the next collected by a consenting local agency and attributable to the territory of the authority. authority, and would provide for the financing of the activities of the authority by, among other things, the issuance of bonds serviced by funds received pursuant to those sale tax revenues and property tax increment revenues.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Division 5 (commencing with Section 62250) is added to Title 6 of the Government Code, to read:

DIVISION 5. Affordable Housing Authorities

62250.

 For purposes of this division, the following terms have the following meanings:

(a) “Authority” means an affordable housing authority created pursuant to this division.

(b) “Consenting local agency” means a local agency that has adopted a resolution of its governing body consenting to the affordable housing investment plan.

(c) “Plan” means an affordable housing investment plan adopted pursuant to Section 62252.

(d) “Real property” means any of the following:

(1) Land, including land under water and waterfront property.

(2) Buildings, structures, fixtures, and improvements on the land.

(3) Any property appurtenant to or used in connection with the land.

(4) Every estate, interest, privilege, easement, franchise, and right in land, including rights-of-way, terms for years, and liens, charges, or encumbrances by way of judgment, mortgage, or otherwise and the indebtedness secured by those liens.

62251.

 (a) A city, county, or city and county may adopt a resolution creating an affordable housing authority and a Low and Moderate Income Housing Fund which shall be limited to providing low- and moderate-income housing pursuant to this division. An authority created pursuant to this division is a public body, corporate and politic.

(b) A school entity, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, may not participate in an authority created pursuant to this section.

(c) The governing board of an authority created pursuant to this division shall be as follows:

(1) (A) At least three members of the city council or the board of supervisors appointed by the city council or the board of supervisors.

(B) In the case of an authority created by a city and county authority jointly, at least three members of the city council and three members of the board of supervisors.

(2) At least one member of the public who lives or works within the boundaries of the city or county that created the authority.

(d) The boundaries of an authority created pursuant to this division may be identical to the boundaries of the city or county that created the authority.

62252.

 (a) (1) An authority created pursuant to this division shall, by resolution, adopt an affordable housing investment plan that may include either of the following:

(A) A provision for the receipt of tax increment funds generated within the area.

(B) If the boundaries of the authority are identical to the boundaries of the city or county that created the authority, a provision for the receipt of any increase of the total receipts of local sales and use tax or transactions and use tax from one year to the next collected by a consenting local agency and attributable to the area of the authority. For purposes of this division, sales and use tax and transactions and use tax revenues may be allocated and used in the same manner as tax increment.

(b) The plan shall include each of the following elements:

(1) A statement of the principal goals and objectives of the plan.

(2) An affordable housing program that describes how the authority will fulfill its objective and if duties and activities will be assigned to a city or county housing department or public housing authority.

(3) The amount available in the Low and Moderate Income Housing Fund and the estimated amounts that will be deposited in the fund during each of the next five years.

(c) Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years.

(4) A description of how the program will implement the requirements for expenditures of funds in the Low and Moderate Income Housing Fund over a 10-year period at various income levels.

(5) Estimates of the number of units, if any, to be developed by the authority for very low, low-, and moderate-income households during the next five years.

(6) A fiscal analysis setting forth the projected receipt of revenue and projected expenses over a five-year planning horizon, including the potential issuance of bonds backed by tax increment and increased local sales and use and transactions and use tax revenues during the term of the plan. Bonds shall be issued in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5.

(7) Time limits as follows:

(A) Forty-five years for the establishing of loans, advances, and indebtedness.

(B) Forty-five years for repayment of all of the authority’s debts and obligations, and fulfilling all of the authority’s housing obligations. The plan shall specify that an authority shall dissolve as a legal entity in no more than 45 years, and that no further taxes shall be allocated to the authority thereafter. Nothing in this subparagraph shall be interpreted to prohibit an authority from refinancing outstanding debt solely to reduce interest costs.

62253.

 (a) At any time prior to or after adoption of the plan, any city, county, or special district, other than a school entity as defined in subdivision (n) of Section 95 of the Revenue and Taxation Code or a successor agency as defined in subdivision (j) of Section 34171, that receives ad valorem property taxes from property located within an area, or local sales and use taxes or transactions and use taxes, may adopt a resolution directing the county auditor-controller to allocate its share of tax increment funds within the area covered by the plan, or its increased local sales and use taxes or transactions and use taxes attributable to the area, to the authority. The resolution adopted pursuant to this subdivision may direct the county auditor-controller to allocate less than the full amount of the tax increment, or increased attributable tax revenues, and establish a maximum amount of time in years that the allocation takes place. A resolution adopted pursuant to this section for an affordable housing authority may be repealed and be of no further effect by giving the county auditor-controller 90 days’ notice; provided, however, that the county auditor-controller shall continue to allocate to the authority the taxing entity’s share of ad valorem property taxes, or local sales and use or transactions and use taxes that have been pledged to the repayment of debt issued by the authority until the debt has been fully repaid. Prior to adopting a resolution pursuant to this subdivision, a city, county, or special district shall approve a memorandum of understanding with the authority governing the authority’s use of tax increment funds and local sales and use and transactions and use tax revenues for administrative and overhead expenses.

(b) A minimum of 95 percent of the allocated tax increment revenues and allocated local sales and use or transactions and use tax revenues shall be used to increase, improve, and preserve the community’s supply of housing for low- and moderate-income families. Not more than 5 percent of allocated revenues may be used for administration.

(c) Housing funds expended by an authority shall be spent proportionally on low, very low, and moderate-income housing.

62254.

 An authority may do all of the following:

(a) Provide for low- and moderate-income housing in accordance with this division.

(b) Remedy or remove a release of hazardous substances pursuant to the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code.

(c) Provide for seismic retrofits of existing buildings in accordance with all applicable laws and regulations.

(d) Acquire and transfer real property in accordance with Section 62260. The authority shall retain controls and establish restrictions or covenants running with the land sold or leased for private use for the periods of time and under the conditions as provided in the plan. The establishment of these controls is a public purpose under this division.

(e) Issue bonds in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5.

(f) (1) Borrow money, receive grants, or accept financial or other assistance or investment from the state or the federal government or any other public agency or private lending institution for any project within its area of operation, and comply with any conditions of a loan or grant. An authority may qualify for funding as a disadvantaged community pursuant to Section 79505.5 of the Water Code or as defined by Section 56033.5. An authority may also enter into an agreement with a qualified community development entity, as defined by Section 45D(c) of the Internal Revenue Code, to coordinate investments of funds derived from the New Markets Tax Credit with those of the authority in instances where coordination offers opportunities for greater efficiency of investments to improve conditions described in subdivisions (c) and (d) within the territorial jurisdiction of the authority.

(2) Receive funds allocated to it pursuant to a resolution adopted by a city, county, or special district to transfer these funds from a source described in subdivision (d), (e), or (f) of Section 53398.75, subject to any requirements upon, or imposed by, the city, county, or special district as to the use of these funds.

(g) Adopt an affordable housing plan pursuant to Section 62252.

(h) Make loans or grants for owners or tenants to improve, rehabilitate, or retrofit buildings or structures within the plan area.

(i) Construct foundations, platforms, and other like structural forms necessary for the provision or utilization of air rights sites for buildings to be used for purposes of providing affordable housing pursuant to this division.

62255.

 Every five years, beginning in the calendar year in which the authority has allocated a cumulative total of more than one million dollars ($1,000,000) in tax increment or local sales and use or transactions and use tax revenues, including any proceeds of a debt issuance, the authority shall contract for an independent audit conducted in accordance with generally accepted governmental auditing standards.

62256.

 An authority shall prepare a feasible method or plan for relocation of all of any families and persons to be temporarily or permanently displaced from housing facilities as a result of actions by the authority.

62257.

 An authority shall receive a priority for assistance in housing programs administered by the California Housing Finance Agency, the Department of Housing and Community Development, and other state agencies and departments.

62258.

 An authority may transfer its housing responsibilities to a housing authority or city or county housing department if it determines that combining funding streams will reduce administrative costs or expedites the construction of affordable housing.

62259.

 All housing assisted by an authority created pursuant to this division shall remain affordable for at least 55 years for rental units and 45 years for owner-occupied units.

62260.

 Within the area of the authority, an authority may:

(a) Purchase, lease, obtain an option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the authority. The authority shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the authority acquires or purchases real property.

(b) Accept, at the request of the legislative body of the community, a conveyance of real property, located either within or outside the plan area, owned by a public entity and declared surplus by the public entity, or owned by a private entity. The authority may dispose of that property to private persons or to public or private entities, by sale or long-term lease for development. All or any part of the funds derived from the sale or lease of that property may, at the discretion of the legislative body of the community, be paid to the community, or to the public entity from which any of that property was acquired.

(c) Sell, lease, grant, or donate real property owned or acquired by the authority in a plan area to a housing authority or to any public agency for public housing projects.

(d) Offer for resale property acquired by an authority for rehabilitation and resale within one year after completion of rehabilitation. Properties held by the authority in excess of a one-year period shall be listed in the authority’s annual report with information conveying the reasons that property remains unsold and indicating plans for its disposition.

62261.

 (a) The authority shall retain controls and establish restrictions or covenants running with land sold or leased for private use for those periods of time and under those conditions as are provided in the plan. The establishment of those controls is a public purpose under this division.

(b) An authority shall obligate lessees or purchasers of property acquired in an affordable housing project to:

(1) Use the property for the purpose designated in the affordable housing plan.

(2) Begin the project within a period of time which the authority fixes as reasonable.

(3) Comply with the covenants, conditions, or restrictions that the authority deems necessary to prevent speculation or excess profittaking in undeveloped land, including right of reverter to the agency. Covenants, conditions, and restrictions imposed by an authority may provide for the reasonable protection of lenders.

(4) Comply with other conditions that the authority deems necessary to carry out the purposes of this division.

SECTION 1.Section 62001 of the Government Code is amended to read:

62001.

(a)A community revitalization and investment authority is a public body, corporate and politic, with jurisdiction to carry out a community revitalization plan within a community revitalization and investment area. The authority shall be deemed to be the “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution for purposes of receiving tax increment revenues. The authority shall have only those powers and duties specifically set forth in Section 62002.

(b)(1)An authority may be created in any one of the following ways:

(A)A city, county, or city and county may adopt a resolution creating an authority. The composition of the governing board shall be comprised as set forth in subdivision (c).

(B)A city, county, city and county, and special district, as special district is defined in subdivision (m) of Section 95 of the Revenue and Taxation Code, or any combination thereof, may create an authority by entering into a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.

(C)A city, county, or city and county may adopt a resolution creating an authority limited to providing low- and moderate-income housing in accordance with Part 2 (commencing with Section 62100).

(2)(A)A school entity, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, may not participate in an authority created pursuant to this part.

(B)A successor agency, as defined in subdivision (j) of Section 34171 of the Health and Safety Code, may not participate in an authority created pursuant to this part, and an entity created pursuant to this part shall not receive any portion of the property tax revenues or other moneys distributed pursuant to Section 34188 of the Health and Safety Code.

(3)An authority formed by a city or county that created a redevelopment agency that was dissolved pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code shall not become effective until the successor agency or designated local authority for the former redevelopment agency has adopted findings of fact stating all of the following:

(A)The agency has received a finding of completion from the Department of Finance pursuant to Section 34179.7 of the Health and Safety Code.

(B)Former redevelopment agency assets which are the subject of litigation against the state, where the city or county or its successor agency or designated local authority are a named plaintiff, have not been or will not be used to benefit any efforts of an authority formed under this part unless the litigation has been resolved by entry of a final judgment by any court of competent jurisdiction and any appeals have been exhausted.

(C)The agency has complied with all orders of the Controller pursuant to Section 34167.5 of the Health and Safety Code.

(c)(1)The governing board of an authority created pursuant to subparagraph (A) of paragraph (1) of subdivision (b) shall be appointed by the legislative body of the city, county, or city and county that created the authority and shall include three members of the legislative body of the city, county, or city and county that created the authority and two public members. The appointment of the two public members shall be subject to Section 54974. The two public members shall live or work within the community revitalization and investment area.

(2)The governing body of the authority created pursuant to subparagraph (B) of paragraph (1) of subdivision (b) shall be comprised of a majority of members from the legislative bodies of the public agencies that created the authority and a minimum of two public members who live or work within the community revitalization and investment area. The majority of the board shall appoint the public members to the governing body. The appointment of the public members shall be subject to Section 54974.

(3)The governing board of an authority created pursuant to subparagraph (C) of paragraph (1) of subdivision (b) shall be composed as follows:

(A)Three members of the city council or the board of supervisors appointed by the city council or the board of supervisors.

(B)The treasurer of the city or county that created the authority.

(C)One member of the public who lives within the boundaries of the authority appointed by the city council or board of supervisors.

(d)An authority may carry out a community revitalization plan within a community revitalization and investment area. Not less than 80 percent of the land calculated by census tracts, census block groups, as defined by the United States Census Bureau, or any combination of both within the area shall be characterized by both of the following conditions:

(1)An annual median household income that is less than, at the option of the authority, 80 percent of the statewide, countywide, or citywide annual median income.

(2)Three of the following four conditions:

(A)An unemployment rate that is at least 3 percentage points higher than the statewide average annual unemployment rate, as defined by the report on labor market information published by the Employment Development Department in March of the year in which the community revitalization plan is prepared. In determining the unemployment rate within the community revitalization and investment area, an authority may use unemployment data from the periodic American Community Survey published by the United States Census Bureau.

(B)Crime rates, as documented by records maintained by the law enforcement agency that has jurisdiction in the proposed plan area for violent or property crime offenses, that are at least 5 percent higher than the statewide average crime rate for violent or property crime offenses, as defined by the most recent annual report of the Criminal Justice Statistics Center within the Department of Justice, when data is available on the Attorney General’s Internet Web site. The crime rate shall be calculated by taking the local crime incidents for violent or property crimes, or any offense within those categories, for the most recent calendar year for which the Department of Justice maintains data, divided by the total population of the proposed plan area, multiplied by 100,000. If the local crime rate for the proposed plan area exceeds the statewide average rate for either violent or property crime, or any offense within these categories, by more than 5 percent, then the condition described in this subparagraph shall be met.

(C)Deteriorated or inadequate infrastructure, including streets, sidewalks, water supply, sewer treatment or processing, and parks.

(D)Deteriorated commercial or residential structures.

(e)As an alternative to subdivision (d), an authority may also carry out a community revitalization plan within a community revitalization and investment area if it meets either of the following conditions:

(1)The area is established within a former military base that is principally characterized by deteriorated or inadequate infrastructure and structures. Notwithstanding subdivision (c), the governing board of an authority established within a former military base shall include a member of the military base closure commission as a public member.

(2)The census tracts or census block groups, as defined by the United States Census Bureau, within the area are situated within a disadvantaged community as described in Section 39711 of the Health and Safety Code.

(f)An authority created pursuant to this part shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).

(g)(1)At any time after the authority is authorized to transact business and exercise its powers, the legislative body or bodies of the local government or governments that created the authority may appropriate the amounts the legislative body or bodies deem necessary for the administrative expenses and overhead of the authority.

(2)The money appropriated may be paid to the authority as a grant to defray the expenses and overhead, or as a loan to be repaid upon the terms and conditions as the legislative body may provide. If appropriated as a loan, the property owners and residents within the plan area shall be made third-party beneficiaries of the repayment of the loan. In addition to the common understanding and usual interpretation of the term, “administrative expense” includes, but is not limited to, expenses of planning and dissemination of information.

SEC. 2.Section 62003 of the Government Code is amended to read:

62003.

An authority shall adopt a community revitalization and investment plan that may include a provision for the receipt of tax increment funds generated within the area according to Section 62005, or includes the receipt of the increase in total receipts of a local sales and use tax or transactions and use tax according to Section 62003.5, or both, provided the plan includes each of the following elements:

(a)A statement of the principal goals and objectives of the plan including territory to be covered by the plan.

(b)A description of the deteriorated or inadequate infrastructure within the area and a program for construction of adequate infrastructure or repair or upgrading of existing infrastructure.

(c)A housing program that describes how the authority will comply with Part 2 (commencing with Section 62100). The program shall include the following information:

(1)The amount available in the Low and Moderate Income Housing Fund and the estimated amounts that will be deposited in the fund during each of the next five years.

(2)Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years.

(3)A description of how the program will implement the requirements for expenditures of funds in the Low and Moderate Income Housing Fund over a 10-year period for various groups as required by Chapter 2 (commencing with Section 62115) of Part 2.

(4)Estimates of the number of units, if any, developed by the authority for very low, low-, and moderate-income households during the next five years.

(d)A program to remedy or remove a release of hazardous substances, if applicable.

(e)A program to provide funding for or otherwise facilitate the economic revitalization of the area.

(f)A fiscal analysis setting forth the projected receipt of revenue and projected expenses over a five-year planning horizon, including the potential issuance of bonds backed by tax increment during the term of the plan. Bonds shall be issued in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5. An authority shall not spend revenue for any purpose that is not identified as part of a program described in subdivisions (b), (c), (d), and (e).

(g)Time limits that may not exceed the following:

(1)(A)For an authority created pursuant to subparagraph (A) or (B) of paragraph (1) of subdivision (b) of Section 62001, 30 years for establishing loans, advances, and indebtedness.

(B)For an authority created pursuant to subparagraph (C) of paragraph (1) of subdivision (b) of Section 62001, 45 years for establishing loans, advances, and indebtedness.

(2)Forty-five years for the repayment of all of the authority’s debts and obligations, and fulfilling all of the authority’s housing obligations. The plan shall specify that an authority shall dissolve as a legal entity in no more than 45 years, and no further taxes shall be allocated to the authority pursuant to Section 62005. Nothing in this paragraph shall be interpreted to prohibit an authority from refinancing outstanding debt solely to reduce interest costs.

(h)A determination that the community revitalization investment area complies with the conditions described in subdivision (d) or (e) of Section 62001.

SEC. 3.Section 62003.5 is added to the Government Code, to read:

62003.5.

(a)In addition to the provision for the receipt of tax increment funds generated within the area of the authority pursuant to Section 62005, an authority created pursuant to subparagraph (C) of paragraph (1) of subdivision (b) of Section 62001 may include a provision for the receipt of any increase of the total receipts of local sales and use tax or transactions and use tax from one year to the next collected by a consenting local agency and attributable to the area of the authority. The authority shall comply with Section 62003 in adopting a community revitalization and investment plan that includes these provisions.

(b)For purposes of this division, sales and use tax and transactions and use tax revenues described in subdivision (a) may be allocated and used in the same manner as tax increment.

(c)For purposes of this section, the term “consenting local agency” has the same meaning as used in used in subdivision (b) of Section of 62005.

SEC. 4.Section 62004 of the Government Code is amended to read:

62004.

(a)The authority shall consider adoption of the plan at three public hearings that shall take place at least 30 days apart. At the first public hearing, the authority shall hear all written and oral comments but take no action. At the second public hearing, the authority shall consider any additional written and oral comments and take action to modify or reject the plan. If the plan is not rejected at the second public hearing, then the authority shall conduct a protest proceeding at the third public hearing to consider whether the property owners and residents within the plan area wish to present oral or written protests against the adoption of the plan.

(b)The draft plan shall be made available to the public and to each property owner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the authority to present the draft plan, answer questions about the plan, and consider comments about the plan.

(c)(1)Notice of the meeting required by subdivision (b) and the public hearings required by this subdivision shall be given in accordance with subdivision (j). The notice shall do all of the following, as applicable:

(A)Describe specifically the boundaries of the proposed area. The boundaries of an authority created pursuant to subparagraph (C) of paragraph (1) of subdivision (b) of Section 62001 may be identical to the boundaries of the city or county that created the authority.

(B)Describe the purpose of the plan.

(C)State the day, hour, and place when and where any and all persons having any comments on the proposed plan may appear to provide written or oral comments to the authority.

(D)Notice of second public hearing shall include a summary of the changes made to the plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the plan proposed to be presented and adopted at the second public hearing can be reviewed.

(E)Notice of the third public hearing to consider any written or oral protests shall contain a copy of the final plan adopted pursuant to subdivision (a), and shall inform the property owner and resident of his or her right to submit an oral or written protest before the close of the public hearing. The protest may state that the property owner or resident objects to the authority taking action to implement the plan.

(2)At the third public hearing, the authority shall consider all written and oral protests received prior to the close of the public hearing and shall terminate the proceedings or adopt the plan subject to confirmation by the voters at an election called for that purpose. The authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of property owners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of property owners and residents in the area who are at least 18 years of age file a protest.

(d)An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The authority shall adopt, at a duly noticed public hearing, procedures for this election.

(e)If a majority of the property owners and residents vote against the plan, then the authority shall not take any further action to implement the proposed plan. The authority shall not propose a new or revised plan to the affected property owners and residents for at least one year following the date of an election in which the plan was rejected.

(f)At the hour set in the notice required by subdivision (a), the authority shall consider all written and oral comments.

(g)If less than 25 percent of the combined number of property owners and residents in the area who are at least 18 years of age file a protest, the authority may adopt the plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the plan shall be subject to referendum as prescribed by law.

(h)For the purposes of Section 62005, the plan shall be the plan adopted pursuant to this section.

(i)The authority shall consider and adopt an amendment or amendments to a plan in accordance with the provisions of this section.

(j)The authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the authority’s Internet Web site and shall mail a written notice of the meeting or public hearing to each owner of land and each resident at least 10 days prior to the meeting or public hearing.

(1)Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the county in which the area lies.

(2)Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the county in which the area lies.

(3)Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies.