Bill Text: CA AB2031 | 2015-2016 | Regular Session | Chaptered
Bill Title: Local government: affordable housing: financing.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State - Chapter 453, Statutes of 2016. [AB2031 Detail]
Download: California-2015-AB2031-Chaptered.html
BILL NUMBER: AB 2031 CHAPTERED
BILL TEXT
CHAPTER 453
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2016
APPROVED BY GOVERNOR SEPTEMBER 22, 2016
PASSED THE SENATE AUGUST 23, 2016
PASSED THE ASSEMBLY AUGUST 29, 2016
AMENDED IN SENATE AUGUST 19, 2016
AMENDED IN SENATE AUGUST 2, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Members Bonta and Atkins
(Coauthors: Assembly Members Low and Mullin)
FEBRUARY 16, 2016
An act to add Part 1.87 (commencing with Section 34191.30) to
Division 24 of the Health and Safety Code, relating to local
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2031, Bonta. Local government: affordable housing: financing.
Existing law requires, from February 1, 2012, to July 1, 2012,
inclusive, and for each fiscal year thereafter, the county
auditor-controller in each county to allocate property tax revenues
in the county's Redevelopment Property Tax Trust Fund, established to
receive revenues equivalent to those that would have been allocated
to former redevelopment agencies had those agencies not been
dissolved, towards the payment of enforceable obligations and among
entities that include, among others, a city, county, or city and
county.
This bill would authorize a city or county to reject its
allocations of property tax revenues that it would otherwise receive
pursuant to specified statutory provisions governing the dissolution
of redevelopment agencies. The bill would except from this
authorization a city, county, or city and county that became the
successor agency to the redevelopment agency and did not receive a
finding of completion from the Department of Finance, as specified,
and any designated local authority of a redevelopment agency, formed
as specified, that did not receive the finding of completion from the
Department of Finance. The bill would direct those rejected
distributions of property tax revenues to an affordable housing
special beneficiary district, established as a temporary and distinct
local governmental entity for the express purposes of receiving
rejected distributions of property tax revenues and providing
financing assistance to promote affordable housing within its
boundaries. The bill would require a beneficiary district to be
governed by a 5-member board and comply with specified open meeting
and public record laws. The bill would automatically require a
beneficiary district to cease to exist on a specifically calculated
date and prohibit a beneficiary district from undertaking any
obligation that requires its action past that date. The bill would
transfer any funds and public records of a beneficiary district
remaining after the date the beneficiary district ceases to exist to
the city or county that rejected its distributions of property tax
revenues that were thereafter directed to that beneficiary district,
as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 1.87 (commencing with Section 34191.30) is added
to Division 24 of the Health and Safety Code, to read:
PART 1.87. Affordable Housing Special Beneficiary District
34191.30 For purposes of this part, the following definitions
shall apply:
(a) "Affordable housing" means a dwelling available for purchase
or lease by persons and families who qualify as low or moderate
income, as defined in Section 50093, very low income households, as
defined in Section 50105, or extremely low income households, as
defined in Section 50106.
(b) "Beneficiary district" is an affordable housing special
beneficiary district established pursuant to this part that exists
for a limited duration as a distinct local governmental entity for
the express purposes of receiving rejected distributions of property
tax revenues and providing financing assistance to promote affordable
housing within its boundaries.
(c) "Distributions of property tax revenues" means all property
tax revenues a city or county would be entitled to receive pursuant
to Part 1.85 (commencing with Section 34170).
34191.35. (a) Commencing when a successor entity, including a
designated local authority established pursuant to subdivision (d) of
Section 34173, receives a finding of completion pursuant to Section
34179.7, there exists, within the same geographical boundaries of the
jurisdiction of that successor entity, an affordable housing special
beneficiary district.
(b) (1) A beneficiary district shall cease to exist on the earlier
of the 90th calendar day after the date the Department of Finance
approves a request to dissolve the successor entity pursuant to
Section 34187, or the 20th anniversary of the date that the successor
entity received a finding of completion pursuant to Section 34179.7.
On and after the date a beneficiary district ceases to exist, the
beneficiary district shall not have the authority to conduct any
business, including, but not limited to, taking any action or making
any payment, and any funds of the beneficiary district shall
automatically transfer to the city or county that rejected its
distributions of property tax revenues pursuant to Section 34191.45
that were thereafter directed to the beneficiary district.
(2) Notwithstanding Section 34191.40, the terms of the members of
the board of a beneficiary district shall expire on the date the
beneficiary district ceases to exist.
(3) Any legal right of the beneficiary district on or after the
date the beneficiary district ceases to exist, including, but not
limited to, the right to repayment pursuant to a loan made by the
beneficiary district, is the right of the city or county that
rejected its distributions of property tax revenues pursuant to
Section 34191.45 that was thereafter directed to the beneficiary
district.
34191.40. (a) A beneficiary district shall be governed by a board
composed of the following five members:
(1) Three members of the city council, if a city formed the
redevelopment agency, or three members of the board of supervisors,
if a county formed the redevelopment agency. The three members shall
be appointed by the city council or board of supervisors, as
applicable.
(2) The treasurer of the city or county that formed the
redevelopment agency.
(3) One member of the public who lives within the boundaries of
the beneficiary district who is appointed by the city council or
county board of supervisors of the city or county that formed the
redevelopment agency.
(b) The board shall elect one of its members as the chairperson.
(c) Each member shall serve a term of four years from the date of
his or her appointment. Vacancies on the board shall be filled by the
appointing authority for a new four-year term. A member may be
reappointed.
(d) Each member shall serve without compensation.
34191.45. (a) Notwithstanding any other law, a city or county may
by ordinance or resolution reject its distributions of property tax
revenues that it would otherwise receive pursuant to Part 1.85
(commencing with Section 34170). Except as provided in subdivision
(b) of Section 34191.35, on and after the date that a city or county
rejects its distributions of property tax revenues, the city or
county shall not have any claim to, or control over, the
distributions of property tax revenues it may have otherwise received
pursuant to Part 1.85 (commencing with Section 34170), and the
county auditor-controller shall transfer all of the distributions of
property tax revenues to the beneficiary district.
(b) This section shall not apply to any city, county, or city and
county that formed a redevelopment agency if either of the following
apply:
(1) The city, county, or city and county became the successor
agency to the redevelopment agency and did not receive a finding of
completion pursuant to Section 34179.7.
(2) The designated local authority of the redevelopment agency,
formed pursuant to subdivision (d) of Section 34173, did not receive
the finding of completion pursuant to Section 34179.7.
34191.50. (a) A beneficiary district shall use any funds provided
to it for the express purpose of promoting the development of
affordable housing within its boundaries.
(b) A beneficiary district may promote the development of
affordable housing by doing any of the following:
(1) Issuing bonds to be repaid from the distributions of property
tax revenues directed to the beneficiary district.
(2) Providing financial assistance for the development of
affordable housing, including, but not limited to, providing loans,
grants, and other financial incentives and support.
(3) Taking other actions the board determines will promote the
financing of the development of affordable housing within its
boundaries.
(c) A beneficiary district shall not undertake any obligation that
requires an action after the date it will cease to exist, including,
but not limited to, issuing a bond that requires any repayment of
the bond obligation after the date the beneficiary district will
cease to exist.
34191.55. (a) A beneficiary district shall comply with the Ralph
M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of
Division 2 of Title 5 of the Government Code) and the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code).
(b) When a beneficiary district ceases to exist pursuant to
subdivision (b) of Section 34191.35, a public record of the
beneficiary district shall be the property of the city or county that
rejected its distributions of property tax revenues pursuant to
Section 34191.45.
