AB 2763

Bill Subjects

Abstract

(1) Existing law provides for relocation assistance for persons subject to possible displacement as a result of projects undertaken by a public entity. Existing law defines terms for purposes of these provisions, including defining a "public entity" to include, among others, the state, the Regents of the University of California, a county, city, or district, various other political subdivisions, and any person who has the authority to acquire property by eminent domain. This bill would expand that definition to include an entity utilizing low-income housing credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (2) Existing law defines a "displaced person" for purposes of the above provisions to include a person who moves from real property, or who moves their personal property from real property as a direct result of the rehabilitation, demolition, or other displacing activity, as specified. This bill would define "other displacing activity" within the above provisions to include rent increases exceeding 5% or more of a tenant's current rent in the subsequent 48 months after a public entity utilizes specified tax credits for the purposes of acquiring or rehabilitating a property already occupied by residential tenants. (3) The federal Tax Reform Act of 1986 and amendments to the Internal Revenue Code establish a low-income housing tax credit to stimulate the production and rehabilitation of shelter for lower income individuals and families. Existing state law implements the low-income housing tax credit and requires the California Tax Credit Allocation Committee to, among other duties, allocate the housing credit on a regular basis consisting of 2 or more periods in each calendar year during which applications may be filed and considered and adopt a qualified allocation plan that complies with federal law. This bill would require the committee to implement regulations requiring housing credit applicants, with projects that will displace tenants and trigger specified relocation assistance protections, to both prepare and submit a displacement prevention analysis discussing the feasibility of alternatives to displacement and make the displacement prevention analysis available to all residents of the building affected by the project. The bill would also provide that an application for housing credits that triggers relocation protections will not be considered complete until the displacement analysis is approved by the committee at a public board meeting. The bill would also provide that an eligible person shall not be required to move from that person's dwelling because of the action of a public entity unless comparable replacement housing is available to that person. The bill would prohibit a public entity from proceeding with any phase of a project or other activity if the entity cannot determine that comparable replacement housing will be available, as required. The bill would also provide that if the action of the public entity would result in displacement and comparable replacement housing is not available, the public entity would be required to use its funds, or funds authorized for the project, to provide that housing, or terminate or suspend further implementation of the project activity. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs. (4) Existing law implementing the low-income tax credit requires the California Tax Credit Allocation Committee to annually submit to the Legislature a report specifying certain information about its activities relating to the total amount of low-income housing credits allocated by the committee. This bill would require the committee to include in its report information about the number of persons who were displaced by projects receiving housing credits.