California 2019-2020 Regular Session

California Assembly Bill AB2763 Compare Versions

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11 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2763Introduced by Assembly Member BloomFebruary 20, 2020 An act to amend Section 7260 of the Government Code, and to amend Sections 50199.14 and 50199.15 of, and to add Section 50199.23 to, the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2763, as introduced, Bloom. Housing: relocation assistance.(1) Existing law provides for relocation assistance for persons subject to possible displacement as a result of projects undertaken by a public entity. Existing law defines terms for purposes of these provisions, including defining a public entity to include, among others, the state, the Regents of the University of California, a county, city, or district, various other political subdivisions, and any person who has the authority to acquire property by eminent domain.This bill would expand that definition to include an entity utilizing low-income housing credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(2) Existing law defines a displaced person for purposes of the above provisions to include a person who moves from real property, or who moves their personal property from real property as a direct result of the rehabilitation, demolition, or other displacing activity, as specified.This bill would define other displacing activity within the above provisions to include rent increases exceeding 5% or more of a tenants current rent in the subsequent 48 months after a public entity utilizes specified tax credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(3) The federal Tax Reform Act of 1986 and amendments to the Internal Revenue Code establish a low-income housing tax credit to stimulate the production and rehabilitation of shelter for lower income individuals and families. Existing state law implements the low-income housing tax credit and requires the California Tax Credit Allocation Committee to, among other duties, allocate the housing credit on a regular basis consisting of 2 or more periods in each calendar year during which applications may be filed and considered and adopt a qualified allocation plan that complies with federal law.This bill would require the committee to implement regulations requiring housing credit applicants, with projects that will displace tenants and trigger specified relocation assistance protections, to both prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement and make the displacement prevention analysis available to all residents of the building affected by the project. The bill would also provide that an application for housing credits that triggers relocation protections will not be considered complete until the displacement analysis is approved by the committee at a public board meeting.The bill would also provide that an eligible person shall not be required to move from that persons dwelling because of the action of a public entity unless comparable replacement housing is available to that person. The bill would prohibit a public entity from proceeding with any phase of a project or other activity if the entity cannot determine that comparable replacement housing will be available, as required. The bill would also provide that if the action of the public entity would result in displacement and comparable replacement housing is not available, the public entity would be required to use its funds, or funds authorized for the project, to provide that housing, or terminate or suspend further implementation of the project activity.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 no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.(4) Existing law implementing the low-income tax credit requires the California Tax Credit Allocation Committee to annually submit to the Legislature a report specifying certain information about its activities relating to the total amount of low-income housing credits allocated by the committee.This bill would require the committee to include in its report information about the number of persons who were displaced by projects receiving housing credits.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7260 of the Government Code is amended to read:7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.SEC. 2. Section 50199.14 of the Health and Safety Code is amended to read:50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting. SEC. 3. Section 50199.15 of the Health and Safety Code is amended to read:50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.SEC. 4. Section 50199.23 is added to the Health and Safety Code, to read:50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.SEC. 5. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
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33 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2763Introduced by Assembly Member BloomFebruary 20, 2020 An act to amend Section 7260 of the Government Code, and to amend Sections 50199.14 and 50199.15 of, and to add Section 50199.23 to, the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2763, as introduced, Bloom. Housing: relocation assistance.(1) Existing law provides for relocation assistance for persons subject to possible displacement as a result of projects undertaken by a public entity. Existing law defines terms for purposes of these provisions, including defining a public entity to include, among others, the state, the Regents of the University of California, a county, city, or district, various other political subdivisions, and any person who has the authority to acquire property by eminent domain.This bill would expand that definition to include an entity utilizing low-income housing credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(2) Existing law defines a displaced person for purposes of the above provisions to include a person who moves from real property, or who moves their personal property from real property as a direct result of the rehabilitation, demolition, or other displacing activity, as specified.This bill would define other displacing activity within the above provisions to include rent increases exceeding 5% or more of a tenants current rent in the subsequent 48 months after a public entity utilizes specified tax credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(3) The federal Tax Reform Act of 1986 and amendments to the Internal Revenue Code establish a low-income housing tax credit to stimulate the production and rehabilitation of shelter for lower income individuals and families. Existing state law implements the low-income housing tax credit and requires the California Tax Credit Allocation Committee to, among other duties, allocate the housing credit on a regular basis consisting of 2 or more periods in each calendar year during which applications may be filed and considered and adopt a qualified allocation plan that complies with federal law.This bill would require the committee to implement regulations requiring housing credit applicants, with projects that will displace tenants and trigger specified relocation assistance protections, to both prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement and make the displacement prevention analysis available to all residents of the building affected by the project. The bill would also provide that an application for housing credits that triggers relocation protections will not be considered complete until the displacement analysis is approved by the committee at a public board meeting.The bill would also provide that an eligible person shall not be required to move from that persons dwelling because of the action of a public entity unless comparable replacement housing is available to that person. The bill would prohibit a public entity from proceeding with any phase of a project or other activity if the entity cannot determine that comparable replacement housing will be available, as required. The bill would also provide that if the action of the public entity would result in displacement and comparable replacement housing is not available, the public entity would be required to use its funds, or funds authorized for the project, to provide that housing, or terminate or suspend further implementation of the project activity.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 no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.(4) Existing law implementing the low-income tax credit requires the California Tax Credit Allocation Committee to annually submit to the Legislature a report specifying certain information about its activities relating to the total amount of low-income housing credits allocated by the committee.This bill would require the committee to include in its report information about the number of persons who were displaced by projects receiving housing credits.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
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99 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
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1111 Assembly Bill
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1313 No. 2763
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1515 Introduced by Assembly Member BloomFebruary 20, 2020
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1717 Introduced by Assembly Member Bloom
1818 February 20, 2020
1919
2020 An act to amend Section 7260 of the Government Code, and to amend Sections 50199.14 and 50199.15 of, and to add Section 50199.23 to, the Health and Safety Code, relating to housing.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
2626 AB 2763, as introduced, Bloom. Housing: relocation assistance.
2727
2828 (1) Existing law provides for relocation assistance for persons subject to possible displacement as a result of projects undertaken by a public entity. Existing law defines terms for purposes of these provisions, including defining a public entity to include, among others, the state, the Regents of the University of California, a county, city, or district, various other political subdivisions, and any person who has the authority to acquire property by eminent domain.This bill would expand that definition to include an entity utilizing low-income housing credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(2) Existing law defines a displaced person for purposes of the above provisions to include a person who moves from real property, or who moves their personal property from real property as a direct result of the rehabilitation, demolition, or other displacing activity, as specified.This bill would define other displacing activity within the above provisions to include rent increases exceeding 5% or more of a tenants current rent in the subsequent 48 months after a public entity utilizes specified tax credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.(3) The federal Tax Reform Act of 1986 and amendments to the Internal Revenue Code establish a low-income housing tax credit to stimulate the production and rehabilitation of shelter for lower income individuals and families. Existing state law implements the low-income housing tax credit and requires the California Tax Credit Allocation Committee to, among other duties, allocate the housing credit on a regular basis consisting of 2 or more periods in each calendar year during which applications may be filed and considered and adopt a qualified allocation plan that complies with federal law.This bill would require the committee to implement regulations requiring housing credit applicants, with projects that will displace tenants and trigger specified relocation assistance protections, to both prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement and make the displacement prevention analysis available to all residents of the building affected by the project. The bill would also provide that an application for housing credits that triggers relocation protections will not be considered complete until the displacement analysis is approved by the committee at a public board meeting.The bill would also provide that an eligible person shall not be required to move from that persons dwelling because of the action of a public entity unless comparable replacement housing is available to that person. The bill would prohibit a public entity from proceeding with any phase of a project or other activity if the entity cannot determine that comparable replacement housing will be available, as required. The bill would also provide that if the action of the public entity would result in displacement and comparable replacement housing is not available, the public entity would be required to use its funds, or funds authorized for the project, to provide that housing, or terminate or suspend further implementation of the project activity.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 no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.(4) Existing law implementing the low-income tax credit requires the California Tax Credit Allocation Committee to annually submit to the Legislature a report specifying certain information about its activities relating to the total amount of low-income housing credits allocated by the committee.This bill would require the committee to include in its report information about the number of persons who were displaced by projects receiving housing credits.
2929
3030 (1) Existing law provides for relocation assistance for persons subject to possible displacement as a result of projects undertaken by a public entity. Existing law defines terms for purposes of these provisions, including defining a public entity to include, among others, the state, the Regents of the University of California, a county, city, or district, various other political subdivisions, and any person who has the authority to acquire property by eminent domain.
3131
3232 This bill would expand that definition to include an entity utilizing low-income housing credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.
3333
3434 (2) Existing law defines a displaced person for purposes of the above provisions to include a person who moves from real property, or who moves their personal property from real property as a direct result of the rehabilitation, demolition, or other displacing activity, as specified.
3535
3636 This bill would define other displacing activity within the above provisions to include rent increases exceeding 5% or more of a tenants current rent in the subsequent 48 months after a public entity utilizes specified tax credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.
3737
3838 (3) The federal Tax Reform Act of 1986 and amendments to the Internal Revenue Code establish a low-income housing tax credit to stimulate the production and rehabilitation of shelter for lower income individuals and families. Existing state law implements the low-income housing tax credit and requires the California Tax Credit Allocation Committee to, among other duties, allocate the housing credit on a regular basis consisting of 2 or more periods in each calendar year during which applications may be filed and considered and adopt a qualified allocation plan that complies with federal law.
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4040 This bill would require the committee to implement regulations requiring housing credit applicants, with projects that will displace tenants and trigger specified relocation assistance protections, to both prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement and make the displacement prevention analysis available to all residents of the building affected by the project. The bill would also provide that an application for housing credits that triggers relocation protections will not be considered complete until the displacement analysis is approved by the committee at a public board meeting.
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4242 The bill would also provide that an eligible person shall not be required to move from that persons dwelling because of the action of a public entity unless comparable replacement housing is available to that person. The bill would prohibit a public entity from proceeding with any phase of a project or other activity if the entity cannot determine that comparable replacement housing will be available, as required. The bill would also provide that if the action of the public entity would result in displacement and comparable replacement housing is not available, the public entity would be required to use its funds, or funds authorized for the project, to provide that housing, or terminate or suspend further implementation of the project activity.
4343
4444 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.
4545
4646 This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
4747
4848 (4) Existing law implementing the low-income tax credit requires the California Tax Credit Allocation Committee to annually submit to the Legislature a report specifying certain information about its activities relating to the total amount of low-income housing credits allocated by the committee.
4949
5050 This bill would require the committee to include in its report information about the number of persons who were displaced by projects receiving housing credits.
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5555
5656 The people of the State of California do enact as follows:SECTION 1. Section 7260 of the Government Code is amended to read:7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.SEC. 2. Section 50199.14 of the Health and Safety Code is amended to read:50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting. SEC. 3. Section 50199.15 of the Health and Safety Code is amended to read:50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.SEC. 4. Section 50199.23 is added to the Health and Safety Code, to read:50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.SEC. 5. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
5757
5858 The people of the State of California do enact as follows:
5959
6060 ## The people of the State of California do enact as follows:
6161
6262 SECTION 1. Section 7260 of the Government Code is amended to read:7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.
6363
6464 SECTION 1. Section 7260 of the Government Code is amended to read:
6565
6666 ### SECTION 1.
6767
6868 7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.
6969
7070 7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.
7171
7272 7260. As used in this chapter:(a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.(2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,(b) Person means any individual, partnership, corporation, limited liability company, or association.(c) (1) Displaced person means both of the following:(A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For(I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.(II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:(i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.(ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.(2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.(3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:(A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.(B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.(C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.(D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.(E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.(d) Business means any lawful activity, except a farm operation, conducted for any of the following:(1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.(2) Primarily for the sale of services to the public.(3) Primarily by a nonprofit organization.(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.(e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.(f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.(g) Public use means a use for which real property may be acquired by eminent domain.(h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.(i) Comparable replacement dwelling means any dwelling that is all of the following:(1) Decent, safe, and sanitary.(2) Adequate in size to accommodate the occupants.(3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:(A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.(B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.(D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.(E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.(F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.(H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.(I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.(J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.(4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.(5) In an area not subject to unreasonable adverse environmental conditions.(6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.(j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.(k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.(l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.(m) Lead agency means the Department of Housing and Community Development.
7373
7474
7575
7676 7260. As used in this chapter:
7777
7878 (a) (1) Public entity includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law.
7979
8080 (2) Public entity also includes an entity utilizing low-income housing tax credits authorized by Section 42 of Title 26 of the United States Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, and Sections 12205, 12206, 17057.5, 17058, 23610.4, and 23610.5 of the Revenue and Taxation Code, as applicable, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants,
8181
8282 (b) Person means any individual, partnership, corporation, limited liability company, or association.
8383
8484 (c) (1) Displaced person means both of the following:
8585
8686 (A) Any person who moves from real property, or who moves his or her that persons personal property from real property, either:
8787
8888 (i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity.
8989
9090 (ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For
9191
9292 (I) For purposes of this subparagraph, residential tenant includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling.
9393
9494 (II) For purposes of this subparagraph, other displacing activity includes rent increases exceeding 5 percent or more of a tenants current rent in the subsequent 48 months after a public entity utilizes tax credits authorized by Section 42 of Title 26 of the United States Code or Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, for the purposes of acquiring or rehabilitating a property already occupied by residential tenants.
9595
9696 (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her that persons personal property from real property, either:
9797
9898 (i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity.
9999
100100 (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent.
101101
102102 (2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use.
103103
104104 (3) Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a displaced person shall not include any of the following:
105105
106106 (A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings.
107107
108108 (B) Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property.
109109
110110 (C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter.
111111
112112 (D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project.
113113
114114 (E) Any person who donates or willingly sells his or her that persons property for the purposes of protecting fish and wildlife habitat, providing recreational areas, or preserving cultural or agricultural resources and open space, or any person who occupies that property on a rental basis. This subparagraph does not apply when a sale is in response to an eminent domain proceeding.
115115
116116 (d) Business means any lawful activity, except a farm operation, conducted for any of the following:
117117
118118 (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property.
119119
120120 (2) Primarily for the sale of services to the public.
121121
122122 (3) Primarily by a nonprofit organization.
123123
124124 (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted.
125125
126126 (e) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operators support.
127127
128128 (f) Affected property means any real property that actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity.
129129
130130 (g) Public use means a use for which real property may be acquired by eminent domain.
131131
132132 (h) Mortgage means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.
133133
134134 (i) Comparable replacement dwelling means any dwelling that is all of the following:
135135
136136 (1) Decent, safe, and sanitary.
137137
138138 (2) Adequate in size to accommodate the occupants.
139139
140140 (3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the persons average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the persons average monthly income:
141141
142142 (A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity.
143143
144144 (B) The displaced person resides on property that was acquired by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.
145145
146146 (C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides.
147147
148148 (D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides.
149149
150150 (E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides.
151151
152152 (F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.
153153
154154 (G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter.
155155
156156 (H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan.
157157
158158 (I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1, 1998.
159159
160160 (J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity, showing that he or she the person did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement.
161161
162162 (4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present.
163163
164164 (5) In an area not subject to unreasonable adverse environmental conditions.
165165
166166 (6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced persons place of employment.
167167
168168 (j) Displacing agency means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project.
169169
170170 (k) Appraisal means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.
171171
172172 (l) Small business means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations.
173173
174174 (m) Lead agency means the Department of Housing and Community Development.
175175
176176 SEC. 2. Section 50199.14 of the Health and Safety Code is amended to read:50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
177177
178178 SEC. 2. Section 50199.14 of the Health and Safety Code is amended to read:
179179
180180 ### SEC. 2.
181181
182182 50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
183183
184184 50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
185185
186186 50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.(b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.(c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:(1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:(A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.(B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.(C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.(D) The housing credit applicant shall have and maintain control of the site for the project.(E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.(F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.(G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.(2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:(A) The project serves the lowest income tenants at rents affordable to those tenants; and(B) The project is obligated to serve qualified tenants for the longest period.(3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:(A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.(B) Projects providing single room occupancy units serving very low income tenants.(C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.(D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.(E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.(d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.(e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.(f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.(g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
187187
188188
189189
190190 50199.14. (a) The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made. If the enactment of federal or state law, or the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates.
191191
192192 (b) The committee shall adopt a qualified allocation plan, as provided in paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code. In adopting this plan, the committee shall comply with the provisions of subparagraphs (B) and (C) of paragraph (1) of subsection (m) of Section 42 of Title 26 of the United States Code.
193193
194194 (c) In order to promote the provision of affordable low-income housing within and throughout the state, the committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:
195195
196196 (1) All housing credit applicants shall demonstrate at the time the application is filed with the committee, that the project meets the following threshold requirements:
197197
198198 (A) The housing credit applicant shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed.
199199
200200 (B) The projects proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period.
201201
202202 (C) The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.
203203
204204 (D) The housing credit applicant shall have and maintain control of the site for the project.
205205
206206 (E) The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.
207207
208208 (F) The housing credit applicant shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.
209209
210210 (G) The housing credit applicant shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, supportable debt service, reserves, funds set aside for rental subsidies, and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the basis, as determined by the committee.
211211
212212 (2) The committee shall give a preference to those projects satisfying all of the threshold requirements of paragraph (1) if:
213213
214214 (A) The project serves the lowest income tenants at rents affordable to those tenants; and
215215
216216 (B) The project is obligated to serve qualified tenants for the longest period.
217217
218218 (3) In addition to the provisions of paragraphs (1) and (2) of subdivision (c), the committee shall use the following criteria in allocating housing credits:
219219
220220 (A) Projects serving large families in which a substantial number, as defined by the committee, of all residential units are comprised of low-income units with three and more bedrooms.
221221
222222 (B) Projects providing single room occupancy units serving very low income tenants.
223223
224224 (C) Existing projects that are at risk of conversion, as defined by paragraph (4) of subdivision (c) of Section 17058 of the Revenue and Taxation Code.
225225
226226 (D) Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owners equity constitutes at least 30 percent of the total project development costs.
227227
228228 (E) Projects that provide tenant amenities not generally available to residents of low-income housing projects.
229229
230230 (d) For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application, except to break a tie when two or more of the projects have the same rating.
231231
232232 (e) The committee shall allocate credits to a project under this section prior to allocating credit to that project under Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code.
233233
234234 (f) The committee shall allocate credits to a project only if the housing sponsor enters into a regulatory agreement that provides for an extended use period as defined in subparagraph (D) of paragraph (6) of subsection (h) of Section 42 of the Internal Revenue Code, which shall terminate on the date specified in the regulatory agreement or the date the project is acquired in foreclosure, including any instrument in lieu of foreclosure, whichever occurs first, and subclause (II) of subparagraph (E) of clause (i) of paragraph (6) of subsection (h) of Section 42 shall not apply.
235235
236236 (g) The committee shall implement regulations requiring housing credit applicants with projects that will displace tenants and trigger the relocation assistance protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, to do the following:(1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.(2) Make the displacement prevention analysis available to all residents of the building affected by the project.(h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
237237
238238 (1) Prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement, including, but not limited to, income averaging, the phasing in of rent increases over time, and allowing existing income ineligible tenants to remain in place.
239239
240240 (2) Make the displacement prevention analysis available to all residents of the building affected by the project.
241241
242242 (h) An application for housing credits that triggers the protections of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code, shall not be considered complete and eligible for submission until the displacement prevention analysis is approved by the committee at a public board meeting.
243243
244244 SEC. 3. Section 50199.15 of the Health and Safety Code is amended to read:50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.
245245
246246 SEC. 3. Section 50199.15 of the Health and Safety Code is amended to read:
247247
248248 ### SEC. 3.
249249
250250 50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.
251251
252252 50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.
253253
254254 50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.(b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:(1) Information sufficient to identify the project.(2) The total number of units in the project.(3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.(4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.(c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.
255255
256256
257257
258258 50199.15. (a) The committee shall annually submit to the Legislature by April 1 of each year a report specifying, with respect to its activities under this chapter during the previous calendar year, (1) the total amount of low-income housing credits allocated by the committee, (2) the total number of units assisted by the credit that are, or are to be, occupied by households whose income is 60 percent or less of area median gross income, (3) the amount of the credit allocated to each project, the other financing available to the project, and the number of units that are, or are to be, therein occupied by households whose income is 60 percent or less of area median gross income, and (4) sufficient information to identify the project. project, and (5) the number of persons who were displaced by projects receiving housing credits.
259259
260260 (b) The committee shall also include in its annual report to the Legislature, an aggregation of the information which shall be submitted annually by housing sponsors for all projects which have received an allocation in previous years, specifying all of the following:
261261
262262 (1) Information sufficient to identify the project.
263263
264264 (2) The total number of units in the project.
265265
266266 (3) The total number of units assisted by the credit that are required to be occupied by households whose income is 60 percent or less of the area median gross income as a condition of receiving a tax credit.
267267
268268 (4) The total number of units assisted by the credit that are occupied by households whose income is 60 percent or less of the area median gross income.
269269
270270 (c) The committee shall also include in its annual report to the Legislature, any recommendations for improvement in the low-income housing tax credit.
271271
272272 SEC. 4. Section 50199.23 is added to the Health and Safety Code, to read:50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.
273273
274274 SEC. 4. Section 50199.23 is added to the Health and Safety Code, to read:
275275
276276 ### SEC. 4.
277277
278278 50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.
279279
280280 50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.
281281
282282 50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.(b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.(c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.
283283
284284
285285
286286 50199.23. (a) An eligible person shall not be required to move from that persons dwelling because of the action of a public entity pursuant to this chapter unless comparable replacement housing is available to that person.
287287
288288 (b) If, on the basis of its survey and analysis of relocation needs and resources, a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity that will result in displacement unless it provides that housing.
289289
290290 (c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project, to provide that housing, or shall terminate or suspend further implementation of the project activity.
291291
292292 SEC. 5. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
293293
294294 SEC. 5. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
295295
296296 SEC. 5. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
297297
298298 ### SEC. 5.