BILL NUMBER: SB 447INTRODUCED BILL TEXT INTRODUCED BY Senator DeSaulnier FEBRUARY 16, 2011 An act to repeal Section 33334.29 of the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST SB 447, as introduced, DeSaulnier. Redevelopment agency of the City of Redding: veterans home property acquisition. Existing law authorizes the redevelopment agency of the City of Redding to borrow and use a specified amount from its Low and Moderate Income Housing Fund to provide financial assistance for the acquisition of property for a veterans home. This bill would repeal this provision of law. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 33334.29 of the Health and Safety Code is repealed.33334.29. (a) Notwithstanding Sections 33334.2, 33334.3, and 33334.6, the redevelopment agency of the City of Redding, of the County of Shasta, or of any other city located within the County of Shasta, may borrow and use up to two million three hundred thousand dollars ($2,300,000) from its Low and Moderate Income Housing Fund to provide financial assistance for the acquisition of property for a veterans home within the territorial jurisdiction of the agency of the City of Redding. As used in this section, "veterans' home" shall mean a veterans' home authorized pursuant to Division 5 (commencing with Section 1010) of the Military and Veterans Code. (b) Funds borrowed pursuant to subdivision (a) shall be repaid within 15 years from the date they are loaned, with interest at the rate earned from time to time on funds deposited in the State of California Local Agency Investment Fund. The indebtedness created pursuant to this section shall not be considered to meet the requirements imposed by Section 33333.8, and the agency shall comply in full with that section. If a redevelopment agency described in subdivision (a) is required to remit an amount of tax increment funds to the county auditor for deposit in the county's 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, then the time limit on repayment of the funds borrowed pursuant to this section shall be suspended for one year after the funds are remitted to the county auditor. In addition, the agency shall receive and use tax increment funds to pay the loan described in subdivision (a) until the funds borrowed pursuant to subdivision (a) have been fully repaid. The agency may not incur any obligation with respect to loans, advance of money, or indebtedness, or whether funded, refunded, assumed or otherwise, that would impair or delay its ability or capacity to repay the funds loaned pursuant to this section; except that the agency may incur indebtedness against non-Low and Moderate Income Housing Fund moneys if the proceeds of the indebtedness will be used to repay the funds borrowed pursuant to this section.