SB 563

Bill Subjects

Abstract

Existing law, the Second Neighborhood Infill Finance and Transit Improvements Act, or NIFTI-2, authorizes a city or county to adopt a resolution to allocate its tax revenues to an enhanced infrastructure financing district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law, if certain conditions are or will be met. Among those conditions, existing law includes requirements that the area financed with those funds is within 12 mile of a major transit stop, as specified, and that the boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district. Existing law also requires the infrastructure financing plan to require specified minimum percentages of the funds to be used to develop affordable housing, as specified, and to give first priority to income-qualified households displaced from the district, as specified, and secondary priority to households with a member or members employed within 2 miles of the district. Existing law authorizes the remaining funds to be used for certain affordable housing, mixed-use, transit, or greenhouse gas emission reduction related projects or programs. This bill would revise NIFTI-2 to, among other things, remove the requirements that the area financed be within 12 mile of a major transit stop and that the boundaries of the district be coterminous with the city or county. The bill would require specified minimum percentages of the funds be used for homelessness prevention programs or development of affordable housing that is within 12 mile of a major transit stop, as specified. The bill would revise the description of tax revenue that may be allocated to a district. The bill would require first priority for the housing be given to households who were displaced from the district within the past 10 years, and secondary priority for households with a member or members who are employed within 2 miles of the housing or who live within the district and are children, elderly, or disabled. The bill would require first priority for the homelessness prevention programs to be given to households living within the district with a member or members who are employed within the district or who are children, elderly, or disabled, and secondary priority for households not living within the district with a member or members who are employed within the district or who are children, elderly, or disabled. The bill would authorize the remaining funds to be used for certain transit related projects in specified areas within a 12 mile of a major transit stop. The bill would also authorize the remaining funds to be used for certain homelessness prevention, affordable housing, enhanced transit ridership, or greenhouse gas emission reduction projects or programs throughout the district. The bill would prohibit a project receiving financing from an enhanced infrastructure financing district unless various requirements regarding the use of a skilled and trained workforce, as defined, on the project are satisfied. The bill would prescribe enforcement procedures and penalties in this regard. By requiring that a developer certify specified information with respect to these requirements, this bill would expand the crime of perjury. This bill would prohibit a city or county that allocates tax revenues to a district pursuant to NIFTI-2 from approving a development project within the district that will require the demolition of housing or certain classes of housing units unless the project will create at least as many units or comply with specified requirements, including the provision of relocation assistance and a right of first refusal in the new housing to displaced occupants, as provided. The bill would provide that these provisions do not supersede any provision of a locally adopted ordinance that places greater restrictions on the demolition of residential dwelling units or the subdivision of residential rental units or that requires greater relocation assistance to displaced households. This bill would authorize a district to receive funds, real property, or other in-kind resources from private persons, the state, or the federal government. The bill would also authorize a district to receive real property or other in-kind resources from the city or county. Existing law establishes the Department of Housing and Community Development and prescribes its powers and duties. Existing law establishes in state government the Strategic Growth Council and requires the council to, among other duties, manage and award grants and loans to support the planning and development of sustainable communities. This bill would require the Department of Housing and Community Development, upon appropriation, to disburse each year matching funds to a district formed by a city and county, or jointly formed by a city and a county, based on the funds and other resources contributed by those local governments, as specified. The bill would require the department to administer this matching fund program in consultation with the Strategic Growth Council and the Homeless Coordinating and Financing Council. The bill would prescribe requirements for applications for state matching funds and their use and would authorize the council to establish other requirements in this regard. The bill would also prescribe requirements for the department in approving these applications, including that it approve all plans for qualifying homelessness prevention programs and affordable housing requirements. The bill would require districts that receive funds to provide reports to the department and, under certain circumstances, to develop a corrective action plan based on council recommendations. The bill would require the department to issue findings if a district fails to provide or comply with a corrective action plan and to stop providing funds, and prohibit application for additional funds, if the district has not satisfied funding requirements. The bill would condition a district's receipt of any matching funds on compliance with specified requirements by the constituent entities of the district. Existing law exempts the adoption of an enhanced infrastructure financing plan that allocates tax revenues pursuant to NIFTI-2 from certain provisions generally applicable to enhanced infrastructure financing districts, and instead requires the district to follow specific notice, protest, and election proceedings for the adoption, review, and amendment of the enhanced infrastructure financing plan. With regard to the review and amendment of the plan, existing law requires the public finance authority to adopt annually, after holding a public hearing, a report containing, among other information, a description of the projects undertaken in the fiscal year and a chart comparing the actual revenues and expenses of the authority to the budgeted revenues and expenses. Existing law requires the authority every 10 years at that public hearing to conduct a protest proceeding to consider whether the landowners and residents within the district wish to present oral or written protests against the enhanced infrastructure financing district, as specified. This bill, instead, would require the authority every 15 years at that public hearing to consider whether the landowners and residents within the district wish to propose amendments to the plan, and would authorize the authority to consider and adopt amendments to the plan at the conclusion of the hearing. After considering any amendments, the bill would require the authority to conduct a protest proceeding to consider whether the landowners or residents within the district wish to present oral or written protests against the enhanced infrastructure financing district undertaking new projects under the plan, as specified. The bill would make other related changes. 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 is required by this act for a specified reason.