Bill Text: CA AB564 | 2013-2014 | Regular Session | Enrolled
Bill Title: Community redevelopment: successor agencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2014-03-06 - Last day to consider Governor's veto pursuant to Joint Rule 58.5. [AB564 Detail]
Download: California-2013-AB564-Enrolled.html
BILL NUMBER: AB 564 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 2013
PASSED THE ASSEMBLY SEPTEMBER 11, 2013
AMENDED IN SENATE SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY MARCH 12, 2013
INTRODUCED BY Assembly Member Mullin
FEBRUARY 20, 2013
An act to amend Sections 34191.4 and 34191.5 of the Health and
Safety Code, relating to community redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 564, Mullin. Community redevelopment: successor agencies.
Existing law dissolved redevelopment agencies and community
development agencies, as of February 1, 2012, and provides for the
designation of successor agencies, as defined. Existing law requires
successor agencies to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, make payments due
for enforceable obligations, as defined, perform obligations required
pursuant to any enforceable obligation, dispose of all assets of the
former redevelopment agency, and to remit unencumbered balances of
redevelopment agency funds, including housing funds, to the county
auditor-controller for distribution to taxing entities. Existing law
requires each successor agency to have an oversight board to approve
certain actions of the successor agency, including the approval of an
enforceable obligation. Existing law requires the Department of
Finance to review the actions of an oversight board. Existing law
prescribes when an action of an oversight board shall become
effective, subject to approval by the Department of Finance.
Existing law provides that certain loan agreements entered into
between a redevelopment agency and the city, county, or city and
county that created the redevelopment agency are deemed enforceable
obligations. Existing law provides that bond proceeds derived from
bonds issued by a redevelopment agency on or before December 31,
2012, are to be used for the purposes for which the bonds are sold.
Existing law provides that enforceable obligations may be satisfied
by the creation of reserves for projects that are the subject of the
enforceable obligation, as specified. Existing law provides that an
expenditure made pursuant to these provisions constitutes the
creation of excess bond proceeds obligations.
This bill would prohibit the Department of Finance from taking any
future action to modify the enforceable obligations described above
following the effective date of the approval of those enforceable
obligations after review by the oversight board and the department.
Existing law establishes a Community Redevelopment Property Trust
Fund, administered by the successor agency, to serve as the
repository of the former redevelopment agency's real properties.
Existing law requires the successor agency to prepare a long-range
property management plan that addresses the disposition and use of
the real properties of the former redevelopment agency. Existing law
provides for the transfer of property, and the liquidation of
property and the use of proceeds, in a specified manner.
This bill would prohibit the Department of Finance from taking any
future action to modify a transfer of property, or the liquidation
of property and the use of proceeds, as described above, if the
transfer, liquidation, or use of proceeds is consistent with the
approved plan of the successor agency.
This bill would incorporate additional changes to Sections 34191.4
and 34191.5 of the Health and Safety Code, proposed by AB 662, that
would become operative only if this bill and AB 662 are chaptered and
become effective January 1, 2014, and this bill is chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34191.4 of the Health and Safety Code is
amended to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.5,
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created by the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The annual loan repayments provided for in the
recognized obligations payment schedules shall be subject to all of
the following limitations:
(A) Loan repayments shall not be made prior to the 2013-14 fiscal
year. Beginning in the 2013-14 fiscal year, the maximum repayment
amount authorized each fiscal year for repayments made pursuant to
this subdivision and paragraph (7) of subdivision (e) of Section
34176 combined shall be equal to one-half of the increase between the
amount distributed to the taxing entities pursuant to paragraph (4)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of the
Supplemental Educational Revenue Augmentation Fund have been paid.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and may be relied upon by all
public and private entities, and, except for an amendment to an
enforceable obligation initiated by a successor agency, may not be
modified or reversed by any future action of the Department of
Finance.
(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and, except for an amendment
to an enforceable obligation initiated by a successor agency, may be
relied upon by all public and private entities, and may not be
modified or reversed by any future action of the Department of
Finance.
SEC. 1.5. Section 34191.4 of the Health and Safety Code is amended
to read:
34191.4. The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment Property
Trust Fund of the successor agency upon approval by the Department of
Finance of the long-range property management plan submitted by the
successor agency pursuant to subdivision (b) of Section 34191.5
unless that property is subject to the requirements of any existing
enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment agency
and the city, county, or city and county that created the
redevelopment agency shall be deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The annual loan repayments provided for in the
recognized obligation payment schedules shall be subject to all of
the following limitations:
(A) Loan repayments shall not be made prior to the 2013-14 fiscal
year. Beginning in the 2013-14 fiscal year, the maximum repayment
amount authorized each fiscal year for repayments made pursuant to
this subdivision and paragraph (7) of subdivision (e) of Section
34176 combined shall be equal to one-half of the increase between the
amount distributed to the taxing entities pursuant to paragraph (5)
of subdivision (a) of Section 34183 in that fiscal year and the
amount distributed to taxing entities pursuant to that paragraph in
the 2012-13 base year, provided, however, that calculation of the
amount distributed to taxing entities during the 2012-13 base year
shall not include any amounts distributed to taxing entities pursuant
to the due diligence review process established in Sections 34179.5
to 34179.8, inclusive. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.
(B) Repayments received by the city, county, or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and Moderate
Income Housing Fund of the former redevelopment agency for purposes
of the Supplemental Educational Revenue Augmentation Fund and shall
be distributed to the Low and Moderate Income Housing Asset Fund
established by subdivision (d) of Section 34176.
(C) Twenty percent of any loan repayment shall be deducted from
the loan repayment amount and shall be transferred to the Low and
Moderate Income Housing Asset Fund, after all outstanding loans from
the Low and Moderate Income Housing Fund for purposes of the
Supplemental Educational Revenue Augmentation Fund have been paid.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and may be relied upon by all
public and private entities, and, except for an amendment to an
enforceable obligation initiated by a successor agency, may not be
modified or reversed by any future action of the Department of
Finance.
(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
(2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds in excess of the amounts needed to
satisfy approved enforceable obligations shall thereafter be expended
in a manner consistent with the original bond covenants. Enforceable
obligations may be satisfied by the creation of reserves for
projects that are the subject of the enforceable obligation and that
are consistent with the contractual obligations for those projects,
or by expending funds to complete the projects. An expenditure made
pursuant to this paragraph shall constitute the creation of excess
bond proceeds obligations to be paid from the excess proceeds. Excess
bond proceeds obligations shall be listed separately on the
Recognized Obligation Payment Schedule submitted by the successor
agency.
(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
(3) Following the effective date of an oversight board's approval
of an enforceable obligation pursuant to this subdivision, as
determined pursuant to subdivision (h) of Section 34179, the
oversight board's action shall be final and, except for an amendment
to an enforceable obligation initiated by a successor agency, may be
relied upon by all public and private entities, and may not be
modified or reversed by any future action of the Department of
Finance.
(d) Notwithstanding subdivision (b) of Section 34163, if a
successor agency has received a finding of completion, the successor
agency may enter into, or amend existing, contracts and agreements,
or otherwise administer projects in connection with enforceable
obligations approved pursuant to subdivision (m) of Section 34177, if
the contract, agreement, or project will not commit new property tax
funds, and will not otherwise reduce property tax revenues or
payments made pursuant to paragraph (4) of subdivision (a) of Section
34183 to the taxing agencies. This subdivision is declaratory of
existing law.
SEC. 2. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) If the plan directs the use or liquidation of the property for
a project identified in an approved redevelopment plan, the property
shall transfer to the city, county, or city and county.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
(d) After approval by the Department of Finance, an action taken
pursuant to subparagraph (A) or (B) of paragraph (2) of subdivision
(c) that is consistent with the approved plan may not be modified or
reversed by future action of the Department of Finance, and may be
relied upon by all public and private entities.
SEC. 2.5. Section 34191.5 of the Health and Safety Code is amended
to read:
34191.5. (a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment agency'
s real properties identified in subparagraph (C) of paragraph (5) of
subdivision (c) of Section 34179.5.
(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall be
submitted to the oversight board and the Department of Finance for
approval no later than six months following the issuance to the
successor agency of the finding of completion.
(c) The long-range property management plan shall do all of the
following:
(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:
(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.
(B) The purpose for which the property was acquired.
(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community, or
general plan.
(D) An estimate of the current value of the parcel including, if
available, any appraisal information.
(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.
(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.
(G) A description of the property's potential for transit-oriented
development and the advancement of the planning objectives of the
successor agency.
(H) A brief history of previous development proposals and
activity, including the rental or lease of property.
(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181, the
retention of the property for future development, the sale of the
property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:
(A) (i) If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.
(ii) For purposes of this subparagraph, the term "identified in an
approved redevelopment plan" includes properties listed in a
community plan or a five-year implementation plan.
(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.
(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and the
Department of Finance.
(d) After approval by the Department of Finance, an action taken
pursuant to subparagraph (A) or (B) of paragraph (2) of subdivision
(c) that is consistent with the approved plan may not be modified or
reversed by future action of the Department of Finance, and may be
relied upon by all public and private entities.
SEC. 3. (a) Section 1.5 of this bill incorporates amendments to
Section 34191.4 of the Health and Safety Code proposed by both this
bill and Assembly Bill 662. It shall become operative only if (1)
both bills are enacted and become effective on or before January 1,
2014, (2) each bill amends Section 34191.4 of the Health and Safety
Code, and (3) this bill is enacted after Assembly Bill 662, in which
case Section 1 of this bill shall not become operative.
(b) Section 2.5 of this bill incorporates amendments to Section
34191.5 of the Health and Safety Code proposed by both this bill and
Assembly Bill 662. It shall become operative only if (1) both bills
are enacted and become effective on or before January 1, 2014, (2)
each bill amends Section 34191.5 of the Health and Safety Code, and
(3) this bill is enacted after Assembly Bill 662, in which case
Section 2 of this bill shall not become operative.
