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| 1 | + | Amended IN Assembly September 05, 2019 Amended IN Assembly June 24, 2019 Amended IN Senate April 24, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 532Introduced by Senator PortantinoFebruary 21, 2019 An act to amend Section 34191.4 of the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGESTSB 532, as amended, Portantino. Redevelopment: City of Glendale: bond proceeds: affordable housing.Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law requires any successor agency that has been issued a finding of completion to use bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, in a manner consistent with the original bond covenants, subject to certain requirements, including a requirement that no more than 5% of the proceeds derived from the bonds be expended, unless the successor agency has an approved Last and Final Recognized Obligation Payment Schedule, in which case the agency is authorized to expend no more than 20% of the proceeds derived from the bonds, subject to specified adjustments. Existing law requires remaining bond proceeds that cannot be spent pursuant to those requirements to be used at the earliest possible date to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.This bill, notwithstanding the requirement that the remaining bond proceeds be used to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, would authorize the successor agency in the City of Glendale to use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, as defined, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill, if the remaining bond proceeds are used for these purposes, would require the Last and Final Recognized Obligation Payment Schedule to be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. This bill would incorporate additional changes in Section 34191.4 of the Health and Safety Code made by AB 411 that would become operative if both this bill and AB 411 are enacted and this bill is chaptered last. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Glendale.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924).SEC. 1.5 Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924).SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs facing the successor agency in the City of Glendale in using excess bond proceeds to provide affordable housing within the city.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 34191.4 of the Health and Safety Code proposed by both this bill and Assembly Bill 411. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2020, (2) each bill amends Section 34191.4 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 411, in which case Section 1 of this bill shall not become operative. | |
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| 3 | + | Amended IN Assembly September 05, 2019 Amended IN Assembly June 24, 2019 Amended IN Senate April 24, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 532Introduced by Senator PortantinoFebruary 21, 2019 An act to amend Section 34191.4 of the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGESTSB 532, as amended, Portantino. Redevelopment: City of Glendale: bond proceeds: affordable housing.Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law requires any successor agency that has been issued a finding of completion to use bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, in a manner consistent with the original bond covenants, subject to certain requirements, including a requirement that no more than 5% of the proceeds derived from the bonds be expended, unless the successor agency has an approved Last and Final Recognized Obligation Payment Schedule, in which case the agency is authorized to expend no more than 20% of the proceeds derived from the bonds, subject to specified adjustments. Existing law requires remaining bond proceeds that cannot be spent pursuant to those requirements to be used at the earliest possible date to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.This bill, notwithstanding the requirement that the remaining bond proceeds be used to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, would authorize the successor agency in the City of Glendale to use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, as defined, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill, if the remaining bond proceeds are used for these purposes, would require the Last and Final Recognized Obligation Payment Schedule to be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. This bill would incorporate additional changes in Section 34191.4 of the Health and Safety Code made by AB 411 that would become operative if both this bill and AB 411 are enacted and this bill is chaptered last. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Glendale.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | + | Amended IN Assembly September 05, 2019 Amended IN Assembly June 24, 2019 Amended IN Senate April 24, 2019 | |
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| 7 | - | Enrolled September 16, 2019 | |
| 8 | - | Passed IN Senate September 12, 2019 | |
| 9 | - | Passed IN Assembly September 10, 2019 | |
| 10 | 7 | Amended IN Assembly September 05, 2019 | |
| 11 | 8 | Amended IN Assembly June 24, 2019 | |
| 12 | 9 | Amended IN Senate April 24, 2019 | |
| 13 | 10 | ||
| 14 | 11 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 15 | 12 | ||
| 16 | 13 | Senate Bill | |
| 17 | 14 | ||
| 18 | 15 | No. 532 | |
| 19 | 16 | ||
| 20 | 17 | Introduced by Senator PortantinoFebruary 21, 2019 | |
| 21 | 18 | ||
| 22 | 19 | Introduced by Senator Portantino | |
| 23 | 20 | February 21, 2019 | |
| 24 | 21 | ||
| 25 | 22 | An act to amend Section 34191.4 of the Health and Safety Code, relating to redevelopment. | |
| 26 | 23 | ||
| 27 | 24 | LEGISLATIVE COUNSEL'S DIGEST | |
| 28 | 25 | ||
| 29 | 26 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 30 | 27 | ||
| 31 | - | SB 532, Portantino. Redevelopment: City of Glendale: bond proceeds: affordable housing. | |
| 28 | + | SB 532, as amended, Portantino. Redevelopment: City of Glendale: bond proceeds: affordable housing. | |
| 32 | 29 | ||
| 33 | 30 | Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law requires any successor agency that has been issued a finding of completion to use bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, in a manner consistent with the original bond covenants, subject to certain requirements, including a requirement that no more than 5% of the proceeds derived from the bonds be expended, unless the successor agency has an approved Last and Final Recognized Obligation Payment Schedule, in which case the agency is authorized to expend no more than 20% of the proceeds derived from the bonds, subject to specified adjustments. Existing law requires remaining bond proceeds that cannot be spent pursuant to those requirements to be used at the earliest possible date to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.This bill, notwithstanding the requirement that the remaining bond proceeds be used to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, would authorize the successor agency in the City of Glendale to use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, as defined, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill, if the remaining bond proceeds are used for these purposes, would require the Last and Final Recognized Obligation Payment Schedule to be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. This bill would incorporate additional changes in Section 34191.4 of the Health and Safety Code made by AB 411 that would become operative if both this bill and AB 411 are enacted and this bill is chaptered last. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Glendale. | |
| 34 | 31 | ||
| 35 | 32 | Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law requires any successor agency that has been issued a finding of completion to use bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, in a manner consistent with the original bond covenants, subject to certain requirements, including a requirement that no more than 5% of the proceeds derived from the bonds be expended, unless the successor agency has an approved Last and Final Recognized Obligation Payment Schedule, in which case the agency is authorized to expend no more than 20% of the proceeds derived from the bonds, subject to specified adjustments. Existing law requires remaining bond proceeds that cannot be spent pursuant to those requirements to be used at the earliest possible date to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 36 | 33 | ||
| 37 | 34 | This bill, notwithstanding the requirement that the remaining bond proceeds be used to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, would authorize the successor agency in the City of Glendale to use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, as defined, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill, if the remaining bond proceeds are used for these purposes, would require the Last and Final Recognized Obligation Payment Schedule to be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. | |
| 38 | 35 | ||
| 39 | 36 | This bill would incorporate additional changes in Section 34191.4 of the Health and Safety Code made by AB 411 that would become operative if both this bill and AB 411 are enacted and this bill is chaptered last. | |
| 40 | 37 | ||
| 41 | 38 | This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Glendale. | |
| 42 | 39 | ||
| 43 | 40 | ## Digest Key | |
| 44 | 41 | ||
| 45 | 42 | ## Bill Text | |
| 46 | 43 | ||
| 47 | - | The people of the State of California do enact as follows:SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. | |
| 44 | + | The people of the State of California do enact as follows:SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924).SEC. 1.5 Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924).SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs facing the successor agency in the City of Glendale in using excess bond proceeds to provide affordable housing within the city.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 34191.4 of the Health and Safety Code proposed by both this bill and Assembly Bill 411. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2020, (2) each bill amends Section 34191.4 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 411, in which case Section 1 of this bill shall not become operative. | |
| 48 | 45 | ||
| 49 | 46 | The people of the State of California do enact as follows: | |
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| 51 | 48 | ## The people of the State of California do enact as follows: | |
| 52 | 49 | ||
| 53 | - | SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. | |
| 50 | + | SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 54 | 51 | ||
| 55 | 52 | SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read: | |
| 56 | 53 | ||
| 57 | 54 | ### SECTION 1. | |
| 58 | 55 | ||
| 59 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. | |
| 56 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 60 | 57 | ||
| 61 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. | |
| 58 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 62 | 59 | ||
| 63 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. | |
| 60 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds.(III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units.(IV) For purposes of this clause, all of the following definitions shall apply:(ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing.(ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number.(V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV).(D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 64 | 61 | ||
| 65 | 62 | ||
| 66 | 63 | ||
| 67 | 64 | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department: | |
| 68 | 65 | ||
| 69 | 66 | (a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation. | |
| 70 | 67 | ||
| 71 | 68 | (b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes. | |
| 72 | 69 | ||
| 73 | 70 | (2) For purposes of this section, loan agreement means any of the following: | |
| 74 | 71 | ||
| 75 | - | (A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. | |
| 72 | + | (A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. | |
| 76 | 73 | ||
| 77 | - | (B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest. | |
| 74 | + | (B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest. | |
| 78 | 75 | ||
| 79 | - | (C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party. | |
| 76 | + | (C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party. | |
| 80 | 77 | ||
| 81 | 78 | (ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000). | |
| 82 | 79 | ||
| 83 | 80 | (3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations: | |
| 84 | 81 | ||
| 85 | 82 | (A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176. | |
| 86 | 83 | ||
| 87 | 84 | (B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. | |
| 88 | 85 | ||
| 89 | 86 | (C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. | |
| 90 | 87 | ||
| 91 | 88 | (c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency. | |
| 92 | 89 | ||
| 93 | 90 | (B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 94 | 91 | ||
| 95 | 92 | (2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions: | |
| 96 | 93 | ||
| 97 | 94 | (A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B). | |
| 98 | 95 | ||
| 99 | 96 | (B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments: | |
| 100 | 97 | ||
| 101 | 98 | (i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent. | |
| 102 | 99 | ||
| 103 | 100 | (ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent. | |
| 104 | 101 | ||
| 105 | 102 | (iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent. | |
| 106 | 103 | ||
| 107 | 104 | (iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent. | |
| 108 | 105 | ||
| 109 | 106 | (v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent. | |
| 110 | 107 | ||
| 111 | - | (C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 108 | + | (C) (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 112 | 109 | ||
| 113 | 110 | (ii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). | |
| 114 | 111 | ||
| 115 | 112 | (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. | |
| 116 | 113 | ||
| 117 | 114 | (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. | |
| 118 | 115 | ||
| 119 | 116 | (IV) For purposes of this clause, all of the following definitions shall apply: | |
| 120 | 117 | ||
| 121 | 118 | (ia) Affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. | |
| 122 | 119 | ||
| 123 | 120 | (ib) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5. | |
| 124 | 121 | ||
| 125 | 122 | (ic) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced. | |
| 126 | 123 | ||
| 127 | - | (id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. | |
| 124 | + | (id) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. | |
| 128 | 125 | ||
| 129 | 126 | (V) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (IV). | |
| 130 | 127 | ||
| 131 | 128 | (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency. | |
| 132 | 129 | ||
| 133 | 130 | (3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. | |
| 134 | 131 | ||
| 135 | 132 | (4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010. | |
| 136 | 133 | ||
| 137 | - | (d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 134 | + | (d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 138 | 135 | ||
| 139 | - | SEC. 1.5 | |
| 136 | + | SEC. 1.5 Section 34191.4 of the Health and Safety Code is amended to read:34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 140 | 137 | ||
| 141 | - | SEC. 1.5 | |
| 138 | + | SEC. 1.5 Section 34191.4 of the Health and Safety Code is amended to read: | |
| 142 | 139 | ||
| 143 | - | ### SEC. 1.5 | |
| 140 | + | ### SEC. 1.5 | |
| 144 | 141 | ||
| 145 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 142 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 146 | 143 | ||
| 147 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 144 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 148 | 145 | ||
| 149 | - | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 146 | + | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department:(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation.(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes.(2) For purposes of this section, loan agreement means any of the following:(A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule.(B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest.(C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party.(ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000).(3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations:(A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176.(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1.(c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency.(B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions:(A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B).(B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments:(i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent.(ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent.(iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent.(iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent.(v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent.(C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation.(ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows:(ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093.(ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1.(III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds.(IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. (iii) For purposes of this subparagraph, all of the following definitions shall apply:(I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5.(II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency.(3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section.(4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010.(d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 150 | 147 | ||
| 151 | 148 | ||
| 152 | 149 | ||
| 153 | 150 | 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department: | |
| 154 | 151 | ||
| 155 | 152 | (a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation. | |
| 156 | 153 | ||
| 157 | 154 | (b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes. | |
| 158 | 155 | ||
| 159 | 156 | (2) For purposes of this section, loan agreement means any of the following: | |
| 160 | 157 | ||
| 161 | - | (A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. | |
| 158 | + | (A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. | |
| 162 | 159 | ||
| 163 | - | (B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest. | |
| 160 | + | (B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency transferred a real property interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest. | |
| 164 | 161 | ||
| 165 | - | (C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party. | |
| 162 | + | (C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency agency, under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party. | |
| 166 | 163 | ||
| 167 | 164 | (ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000). | |
| 168 | 165 | ||
| 169 | 166 | (3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations: | |
| 170 | 167 | ||
| 171 | 168 | (A) Loan repayments shall not be made prior to the 201314 fiscal year. Beginning in the 201314 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 201213 base year, provided, however, that calculation of the amount distributed to taxing entities during the 201213 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176. | |
| 172 | 169 | ||
| 173 | 170 | (B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. | |
| 174 | 171 | ||
| 175 | 172 | (C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. | |
| 176 | 173 | ||
| 177 | 174 | (c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency. | |
| 178 | 175 | ||
| 179 | 176 | (B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 180 | 177 | ||
| 181 | 178 | (2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions: | |
| 182 | 179 | ||
| 183 | 180 | (A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B). | |
| 184 | 181 | ||
| 185 | 182 | (B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments: | |
| 186 | 183 | ||
| 187 | 184 | (i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent. | |
| 188 | 185 | ||
| 189 | 186 | (ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent. | |
| 190 | 187 | ||
| 191 | 188 | (iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent. | |
| 192 | 189 | ||
| 193 | 190 | (iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent. | |
| 194 | 191 | ||
| 195 | 192 | (v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent. | |
| 196 | 193 | ||
| 197 | - | (C) (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 194 | + | (C) Remaining (i) Except as provided in clauses (ii) and (iii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. | |
| 198 | 195 | ||
| 199 | 196 | (ii) (I) Notwithstanding clause (i), the City of Santa Cruz may use the remaining bond proceeds for the purposes of increasing, improving, and preserving affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). | |
| 200 | 197 | ||
| 201 | 198 | (II) Bond proceeds used for the purposes authorized in subclause (I) shall be expended as follows: | |
| 202 | 199 | ||
| 203 | 200 | (ia) Up to 10 percent of the bond proceeds may be used for affordable housing for persons and families of moderate income, as defined in Section 50093. | |
| 204 | 201 | ||
| 205 | 202 | (ib) The remainder of the bond proceeds shall be expended in accordance with Section 34176.1. | |
| 206 | 203 | ||
| 207 | 204 | (III) If the City of Santa Cruz uses the remaining bond proceeds for the purposes authorized in subclause (I), the Last And Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the Santa Cruz Successor Agency for purposes of paying the remaining principal and interest on the bonds. | |
| 208 | 205 | ||
| 209 | 206 | (IV) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development using the bond proceeds described in subclause (I) shall replace those units. | |
| 210 | 207 | ||
| 211 | 208 | (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of at least 55 years for rental housing and 45 years for owner-occupied housing. | |
| 212 | 209 | ||
| 213 | 210 | (iii) (I) Notwithstanding clause (i), the successor agency in the City of Glendale may use the remaining bond proceeds for the purposes of predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, so long as those proceeds are used in a manner consistent with any original bond covenant. If the uses described in this subparagraph are inconsistent with an original bond covenant, then the remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation, as provided in clause (i). | |
| 214 | 211 | ||
| 215 | 212 | (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. | |
| 216 | 213 | ||
| 217 | 214 | (III) If any affordable housing units are demolished as a result of the remaining bond proceeds being used for the purposes authorized in subclause (I), the proposed housing development shall replace those units. | |
| 218 | 215 | ||
| 219 | 216 | (IV) The remaining bond proceeds authorized to be spent pursuant to this clause shall only be used to finance affordable housing where 100 percent of the units meet the definition of affordable housing set forth in subclause (V). | |
| 220 | 217 | ||
| 221 | 218 | (V) For purposes of this clause, affordable housing means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106, for a period of 55 years for rental housing and 45 years for owner-occupied housing. | |
| 222 | 219 | ||
| 223 | 220 | (iii) For purposes of this subparagraph, all of the following definitions shall apply: | |
| 224 | 221 | ||
| 225 | 222 | (I) Affordable housing cost has the same meaning as affordable housing cost described in Section 50052.5. | |
| 226 | 223 | ||
| 227 | 224 | (II) Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced. | |
| 228 | 225 | ||
| 229 | 226 | (III) Replace those units means to provide at least the same number of units of equivalent size to be made available at affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be a rebuttable presumption that lower income households occupied these units in the same proportion of lower income households to all households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Developments Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. | |
| 230 | 227 | ||
| 231 | 228 | (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency. | |
| 232 | 229 | ||
| 233 | 230 | (3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expend the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. | |
| 234 | 231 | ||
| 235 | 232 | (4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010. | |
| 236 | 233 | ||
| 237 | - | (d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 234 | + | (d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); 34-2014-80001910) and (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). | |
| 238 | 235 | ||
| 239 | 236 | SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs facing the successor agency in the City of Glendale in using excess bond proceeds to provide affordable housing within the city. | |
| 240 | 237 | ||
| 241 | 238 | SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs facing the successor agency in the City of Glendale in using excess bond proceeds to provide affordable housing within the city. | |
| 242 | 239 | ||
| 243 | 240 | SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs facing the successor agency in the City of Glendale in using excess bond proceeds to provide affordable housing within the city. | |
| 244 | 241 | ||
| 245 | 242 | ### SEC. 2. | |
| 246 | 243 | ||
| 247 | 244 | SEC. 3. Section 1.5 of this bill incorporates amendments to Section 34191.4 of the Health and Safety Code proposed by both this bill and Assembly Bill 411. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2020, (2) each bill amends Section 34191.4 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 411, in which case Section 1 of this bill shall not become operative. | |
| 248 | 245 | ||
| 249 | 246 | SEC. 3. Section 1.5 of this bill incorporates amendments to Section 34191.4 of the Health and Safety Code proposed by both this bill and Assembly Bill 411. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2020, (2) each bill amends Section 34191.4 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 411, in which case Section 1 of this bill shall not become operative. | |
| 250 | 247 | ||
| 251 | 248 | SEC. 3. Section 1.5 of this bill incorporates amendments to Section 34191.4 of the Health and Safety Code proposed by both this bill and Assembly Bill 411. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2020, (2) each bill amends Section 34191.4 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 411, in which case Section 1 of this bill shall not become operative. | |
| 252 | 249 | ||
| 253 | 250 | ### SEC. 3. |