Amended  IN  Senate  March 09, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 679

Introduced by Senator Hertzberg

February 19, 2021

An act to amend Section 65000 of the Government Code, relating to land use. An act to add Title 6.9 (commencing with Section 64700) to the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 679, as amended, Hertzberg. General plans. Los Angeles County: housing development: financing.
Existing law provides for the establishment of various special districts that may support and finance housing development, including affordable housing special beneficiary districts that are authorized to promote affordable housing development with certain property tax revenues that a city or county would otherwise be entitled to receive.
Existing law, the San Francisco Bay Area Regional Housing Finance Act, establishes the Bay Area Housing Finance Authority to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, as defined, and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production.
This bill, the Los Angeles County Regional Housing Finance Act, would establish the Los Angeles County Affordable Housing Solutions Agency and would state that the agency’s purpose is to increase affordable housing in Los Angeles County by providing for significantly enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing production, as specified. The bill would require a board composed of 13 voting members from Los Angeles County, as specified, to govern the agency. The bill would require the board to provide for regular audits of the agency’s accounts and records and to provide for financial reports. The bill would include findings that the provisions proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities within Los Angeles County, including charter cities.
The bill would authorize the agency to, among other things, incur and issue indebtedness, and place on the ballot in Los Angeles County and its incorporated cities funding measures, in accordance with applicable constitutional requirements, to raise and allocate funds to the County of Los Angeles, the cities in Los Angeles County, and other public agencies and affordable housing projects within its jurisdiction for purposes of preserving and enhancing existing housing, funding renter protection programs, and financing new construction of housing developments, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for Los Angeles County.
By adding to the duties of local officials with respect to elections procedures for revenue measures on behalf of the authority, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries that relates to its planning, and provides for the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.

This bill would make a nonsubstantive change to these provisions.

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

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


SECTION 1.

 Title 6.9 (commencing with Section 64700) is added to the Government Code, to read:

TITLE 6.9. Los Angeles County Affordable Housing Solutions Agency

PART 1. Formation of the Los Angeles County Affordable Housing Solutions Agency and General Powers

CHAPTER  1. General Provisions

64700.
 This title shall be known, and may be cited, as the Los Angeles County Regional Housing Finance Act.

64701.
 The Legislature finds and declares the following:
(a) Los Angeles County is facing the most significant housing crisis in the region’s history, as tens of thousands of residents are living in overcrowded housing, being pushed out of their homes, spending hours driving every day to and from work, one paycheck away from an eviction, or experiencing homelessness.
(b) The impacts of Los Angeles County’s affordable housing crisis are disproportionately being borne by Black, Brown, and low-income residents.
(c) Los Angeles County faces this crisis because, as a region, it has failed to produce enough housing at all income levels, particularly at the lowest levels of affordability, preserve affordable housing, protect existing residents from displacement, and address the housing issue throughout the county in a comprehensive fashion.
(d) Housing costs have dramatically outpaced wage growth, and an average two-bedroom apartment in Los Angeles County requires a household income of $41.96 per hour.
(e) The housing crisis in Los Angeles County is regional in nature and too great to be addressed individually by the county’s 88 incorporated cities on their own, especially in the context of ambitious Regional Housing Needs Assessments goals—341,000 affordable units in the sixth cycle, which the county as a whole in on track to produce 25,000.
(f) Seventy-nine percent of extremely low income households in Los Angeles County are paying more than half of their income on housing costs compared to just 3 percent of moderate income households.
(g) However, the current process is anything but regional; instead each city and the county is each responsible for their own decisions around housing financing and renter protection programs.
(h) Based on the most recent regional housing needs assessment cycle, Los Angeles County faces an annual gap of 39,375 units between what is being created and what is needed to achieve the sixth cycle affordable housing countywide goals.
(i) A multistakeholder countywide agency is necessary to help address the affordable housing crisis in Los Angeles County by delivering resources and technical assistance at a regional scale, including:
(1) Generating new dedicated regional funding for critical capital and other supports for affordable housing developments across Los Angeles County.
(2) Providing staff support to local jurisdictions that require capacity or technical assistance to expedite the preservation and production of housing.
(3) Funding renter programs and services, such as emergency rental assistance and access to counsel, thereby relieving local jurisdictions of this cost and responsibility and supporting a unified countywide approach.
(4) Assembling parcels, acquiring land, and supporting community land trusts for the purpose of building affordable housing.
(5) Monitoring and reporting on progress at a regional scale.

64702.
 For purposes of this title:
(a) “Agency” means the Los Angeles County Affordable Housing Solutions Agency established pursuant to Section 64710.
(b) “Board” means the governing board of the Los Angeles County Affordable Housing Solutions Agency.
(c) “Los Angeles County” means the entire area within the territorial boundary of the County of Los Angeles.

64703.
 The Legislature finds and declares that providing a regional financing mechanism for affordable housing development, preservation, and renter protections in Los Angeles County, as described in this section and Section 64701, is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this title applies to all cities within the County of Los Angeles, including charter cities.

CHAPTER  2. The Los Angeles County Affordable Housing Solutions Agency and Governing Board

64710.
 (a) The Los Angeles County Affordable Housing Solutions Agency is hereby established with jurisdiction extending throughout Los Angeles County.
(b) The formation and jurisdictional boundaries of the agency are not subject to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5).
(c) The agency’s purpose is to increase affordable housing in Los Angeles County by providing for significantly enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing production of 100 percent affordable housing for households earning 120 percent of the appropriate area median income or below, with financing priority on the lowest levels of affordability.
(d) It is the intent of the Legislature that the agency complement and supplement existing efforts by cities, counties, districts, and other local, regional, and state entities, related to addressing the goals described in this title.

64711.
 (a) The agency shall be governed by a board composed of 13 voting members from Los Angeles County, representative of the diverse cities and unincorporated communities across the county.
(b) The board shall select from its members a chair, who shall preside over meetings of the board, and a vice chair from its members, who shall preside in the absence of the chair.
(c) (1) A member of the board may receive a per diem for each board meeting that the member attends. The board shall set the amount of that per diem for a member’s attendance, but that amount shall not exceed one hundred dollars ($100) per meeting. A member shall not receive a payment for more than two meetings in a calendar month.
(2) A member may waive a payment of per diem authorized by this subdivision.
(d) (1) Members of the board are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5.
(2) The agency shall be 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.)).

64712.
 A member of the board shall exercise independent judgment on behalf of the interests of the residents, the property owners, and the public in furthering the intent and purposes of this title.

64713.
 (a) The board shall hold its first meeting at a time and place within Los Angeles County fixed by the chair of the board.
(b) After the first meeting described in subdivision (a), the board shall hold meetings at times and places determined by the board.

64714.
 (a) The board may make and enforce rules and regulations necessary for governing the board, the preservation of order, and the transaction of business.
(b) In exercising the powers and duties conferred on the agency by this title, the board may act by ordinance or resolution.

CHAPTER  3. Powers of the Los Angeles County Affordable Housing Solutions Agency

64720.
 In implementing this title, the agency may do all of the following:
(a) Place on the ballot in Los Angeles County and its incorporated cities funding measures, in accordance with applicable constitutional requirements, to raise and allocate funds to the County of Los Angeles, the cities in Los Angeles County, and other public agencies and affordable housing projects within its jurisdiction for purposes of preserving and enhancing existing housing, funding renter protection programs, and financing new construction of housing developments that are 100 percent affordable to households earning 120 percent of the relevant area median income or below, with a priority on the lowest levels of affordability.
(b) Apply for and receive grants from federal and state agencies.
(c) Incur and issue indebtedness and assess fees on any debt issuance and loan products for reinvestment of fees and loan repayments in affordable housing production and preservation.
(d) Solicit and accept gifts, fees, grants, and other allocations from public and private entities.
(e) Deposit or invest moneys of the agency in banks or financial institutions in the state.
(f) Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction.
(g) Engage counsel and other professional services.
(h) Enter into and perform all necessary contracts.
(i) Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).
(j) Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties.
(k) Assemble parcels and lease, purchase, or otherwise acquire land for housing development.
(l) Collect data on housing production and monitor progress on meeting regional and state housing goals.
(m) Provide support and technical assistance to local governments in relation to producing and preserving affordable housing.
(n) Provide public information about the agency’s housing programs and policies.
(o) Any other express or implied powers necessary to carry out the intent and purposes of this title.

64721.
 (a) If the agency proposes a measure pursuant to subdivision (a) of Section 64720 that will generate revenues, the board of supervisors of Los Angeles County shall call a special election on the measure. The special election shall be consolidated with the next regularly scheduled statewide election and the measure shall be submitted to the voters of Los Angeles County.
(b) (1) For the purpose of placement of a measure on the ballot, the agency is a district, as defined in Section 317 of the Elections Code. Except as otherwise provided in this section, a measure proposed by the agency that requires voter approval shall be submitted to the voters of Los Angeles County, as determined by the agency, in accordance with the provisions of the Elections Code applicable to districts, including the provisions of Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code.
(2) Because the agency has no revenues as of the operative date of this section, the appropriations limit for the agency shall be originally established based on receipts from the initial measure that would generate revenues for the agency pursuant to subdivision (a), and that establishment of an appropriations limit shall not be deemed a change in an appropriations limit for purposes of Section 4 of Article XIII B of the California Constitution.
(c) (1) Notwithstanding Section 10520 of the Elections Code, for any election at which the agency proposes a measure pursuant to subdivision (a) of Section 64720 that would generate revenues, the agency shall reimburse the County of Los Angeles for the incremental costs incurred by the county elections official related to submitting the measure to the voters with any eligible funds transferred to the agency.
(2) For purposes of this subdivision, “incremental costs” include all of the following:
(A) The cost to prepare, review, and revise the impartial analysis of the measure.
(B) The cost to prepare a translation of ballot materials into a language other than English by the county.
(C) The additional costs that exceed the costs incurred for other election races or ballot measures, if any, appearing on the same ballot in Los Angeles County, including both of the following:
(i) The printing and mailing of ballot materials.
(ii) The canvass of the vote regarding the measure pursuant to Division 15 (commencing with Section 15000) of the Elections Code.

CHAPTER  4. Financial Provisions

64730.
 The board shall provide for regular audits of the agency’s accounts and records, shall maintain accounting records, and shall report accounting transactions in accordance with generally accepted accounting principles adopted by the Governmental Accounting Standards Board of the Financial Accounting Foundation for both public reporting purposes and for reporting of activities to the Controller.

64731.
 The board shall provide for annual financial reports. The board shall make copies of the annual financial reports available to the public.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely severe shortage of available funding and resources for the development and preservation of affordable housing and the particularly acute nature of the housing crisis within Los Angeles County.

SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 65000 of the Government Code is amended to read:
65000.

This title shall be known and may be cited as the Planning and Zoning Law.