AB 1543

Bill Subjects

Abstract

(1) Existing law dissolved redevelopment agencies as of February 1, 2012, and designates successor agencies to, among other things, continue to make payments due for enforceable obligations and expeditiously wind down the affairs of dissolved redevelopment agencies. Existing law also provides for the designation of a housing successor to assume the housing function of a former redevelopment agency and generally requires that funds transferred to the housing successor, together with any funds generated from housing assets, be maintained in a separate Low and Moderate Income Housing Asset Fund and used subject to the provisions of the Community Redevelopment Law relating to the Low and Moderate Income Fund of the former redevelopment agency, except as provided. Existing law requires the county auditor-controller to create within the county treasury a Redevelopment Property Tax Trust Fund, to determine and deposit that fund the amount of property taxes that would have been allocated to each redevelopment agency within the county, and to allocate moneys in that fund for passthrough payments to local agencies and school entities and payments listed on the Recognized Obligation Payment Schedule for each successor agency, as provided. Under existing law, on June 1, 2012, and each January 2 and June 1 thereafter, any moneys remaining in the Redevelopment Property Tax Trust Fund after all other authorized payments and transfers are made, other than moneys attributable to certain property tax rates approved by the voters for specified purposes, are distributed to local agencies and school entities, in accordance with specified requirements, including a requirement that property tax shares of local agencies be determined based on the property tax allocation laws in effect on the date of distribution, as provided. This bill would modify the requirement to distribute remaining moneys in the Redevelopment Property Tax Trust Fund, as described above, by requiring, for the period commencing on January 2, 2025, until the successor is dissolved as provided, that 20% of the amount that would otherwise be allocated to local agencies and school entities that exceeds the amount transferred between January 1, 2024, and January 1, 2025, inclusive, be deposited in the Low and Moderate Income Housing Fund if specified conditions are met. Among other things, the bill would require that the successor agency have received a finding of completion from the Department of Finance, and that the housing successor or sponsoring entity comply with specified reporting requirements. The bill, on and after January 2, 2025, and until the successor agency is dissolved as provided, would require the county auditor to allocate a corresponding amount of revenues, designated as the affordable housing and community development investment amount, to the Low and Moderate Income Housing Asset Fund in each fiscal year and to commensurately decrease the amount of ad valorem property tax revenue that is otherwise required to be allocated among all other local agencies in the county, as provided. This bill would require the housing successor to designate the use of any proceeds deposited in the Low and Moderate Income Housing Asset Fund under the bill's provisions in accordance with specified requirements. The bill would limit the eligible uses of those funds to the predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing, as defined. (2) Existing law requires the housing successor of a former redevelopment agency to annually conduct, and provide to its governing body, an independent financial audit of the Low and Moderate Income Housing Asset Fund, which is required to be posted on the internet website of the housing successor, as specified. Existing law requires that the independent financial audit include, among other information, the amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing between amounts deposited pursuant to specified law, amounts deposited for other items listed on the Recognized Obligation Payment Schedule, and other amounts deposited. This bill would require that the independent financial audit also distinguish amounts deposited in the Low and Moderate Income Housing Asset Fund as provided in this bill. The bill would also require that the independent financial audit include a description of how the amounts deposited as provided in this bill have been used to meet the housing successor's share of regional housing need, determined as provided. (3) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other mandatory elements, a housing element. Existing law requires that the housing element include, among other things, an analysis of existing housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. Existing law requires that the analysis identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, including tax increment funds received by a redevelopment agency of the community. This bill would delete the requirement that this analysis identify tax increment funds received by a redevelopment agency of the community and, instead, require that the analysis identify Low and Moderate Income Housing Asset Fund funds received by a housing successor, as provided in the bill. (4) The bill would make legislative findings with regard to its provisions. (5) By adding to the duties of local officials with respect to the wind down of former redevelopment agencies and the use of moneys in the Low and Moderate Income Housing Asset Fund, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.