MEETING DATE: May 23, 2011
AGENDA ITEM: Adoption of a Position to Support SB 286 and any
Subsequent Legislation that is Essentially Similar to SB
286, Relating to Redevelopment Reforms.
ATTACHMENTS
Pages
1. Senate Bill 286 1-27
AMENDED IN SENATE APRIL 27, 2011
SENATE BILL No. 286
Introduced by Senator Wright
(Principal coauthor: Senator Rubio)
February 14, 2011
An act to amend Sections 33607.5 and 33607.7 of the Health and An
act to amend Sections 33080.3, 33080.6, 33320.1, 33334.2, 33367,
33426.5, 33488, 33601, 33610, 33670, and 33670.5 of, to add Sections
33080.14, 33444.7, 33444.8, 33460.1, 33491, 33607.9, 33675.1, and
50464.6 to, the Health and Safety Code, relating to redevelopment.
legislative counsel
’
s digest
SB 286, as amended, Wright. Redevelopment: local education agency
payments. Redevelopment.
(1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities to address the effects of
blight, as defined, in blighted areas in those communities known as
project areas. Existing law requires that each redevelopment agency
submit the final report of any audit undertaken by any other local, state,
or federal government entity to its legislative body and to additionally
present an annual report to the legislative body containing specified
information.
This bill would, until January 1, 2013, prohibit the legislative body
of a city, county, or city and county from adopting an ordinance to
adopt or amend a redevelopment plan, as described. The bill would
also impose new requirements on the agency with respect to
implementation plans and evidentiary standards and expand existing
prohibitions on agency direct assistance to certain projects.
98The bill would require the Controller, on or before January 1, 2013,
to issue regulations revising and consolidating reporting for
redevelopment agencies and to develop a simple, uniform, and consistent
methodology for the calculation, payment, and reporting of passthrough
payments. The bill would also require the Controller to review and
revise the guidelines adopted for the content of the final report at least
every 5 years, as specified. The bill would also transfer certain reporting
requirements from the Department of Housing and Community
Development to the Controller, as specified, and require that agencies
send certain notifications to the Controller in addition to sending the
notifications to the department. The bill would require that the
department develop guidelines establishing standards to evaluate agency
performance.
(2) The bill would require the State Auditor to conduct audits of
selected redevelopment agencies to ensure compliance with existing
law. The bill would require each agency, immediately upon receipt, to
deposit 0.025% of tax increment into the Redevelopment Agency State
Audit Fund, which the bill would create, to fund the audits.
(3) The California Constitution authorizes a redevelopment agency
to receive funding through tax increment revenues attributable to
increases in assessed property tax valuation of property in a project
area due to redevelopment. Existing law prescribes the procedure by
which the tax increment revenue is allocated.
The bill would provide, for purposes of the above provisions, tax
increment revenue transferred to an agency exclude any funds
considered educational entity property tax revenues. The bill would
provide that this provision applies only to tax increment revenues
generated from any redevelopment project established on or after
January 1, 2012.
(4) The bill would authorize an agency to loan or grant funds for
projects relating to energy efficiency or the reduction of greenhouse
gas emissions. The bill would also authorize an agency to provide direct
assistance, as described, to businesses within project areas for industrial
or manufacturing uses or similar uses of statewide benefit.
The Community Redevelopment Law requires a redevelopment
agency that has adopted a redevelopment plan on or after January 1,
1994, that contains specified provisions, amends a plan to include new
territory, or amends its plan to modify specified limitations, to make
payments to taxing entities, and requires that these payments be allocated
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— 2 — SB 286among these entities in proportion to the percentage share of property
tax revenues received by these entities in these fiscal years.
Existing property tax law requires the county auditor, in each fiscal
year, to allocate property tax revenue to local jurisdictions in accordance
with specified formulas and procedures, and generally requires that
each jurisdiction be allocated an amount equal to the total of the amount
of revenue allocated to that jurisdiction in the prior fiscal year, subject
to certain modifications, and that jurisdiction’s portion of the annual
tax increment, as defined.
This bill would, notwithstanding existing law, on and after January
1, 2012, require that agency payments to a local education agency under
the above provisions be adjusted to ensure that the local education
agency continues to receive, at a minimum, the amount attributable to
the agency’s property tax revenue received during the year immediately
preceding the adoption or amendment of the redevelopment plan.
V ote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:|101010101010101010 10
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SECTION 1. Section 33080.3 of the Health and Safety Code
is amended to read:
33080.3. The Controller shall develop and periodically revise
the guidelines for the content of the report required by Section
33080.1. The Controller shall appoint an advisory committee to
advise in the development of the guidelines. The advisory
committee shall include representatives from among those persons
nominated by the department, the Legislative Analyst, the
California Society of Certified Public Accountants, the California
Redevelopment Association, and any other authorities in the field
that the Controller deems necessary and appropriate. The Controller
shall review and revise the guidelines at least every five years,
following consultation with the advisory committee.
SEC. 2. Section 33080.6 of the Health and Safety Code is
amended to read:
33080.6. (a) On or before May 1 of each year, the department
Controller shall compile and publish annual reports of the activities
of redevelopment agencies for the previous fiscal year, based on
the information reported pursuant to subdivision (c) of Section
33080.1 and reporting the types of findings made by agencies
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pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section
33334.2, including the date of the findings. The department’s
Controller’s compilation shall also report on the project area
mergers reported pursuant to Section 33488. The department
Controller shall publish this information for each project area of
each redevelopment agency. These reports may also contain the
biennial review of relocation assistance required by Section 50460.
The first report published pursuant to this section shall be for the
1984–85 2013–14 fiscal year. For fiscal year 1987–88 and
succeeding fiscal years, the report shall contain a list of those
project areas which are not subject to the requirements of Section
33413.
The department shall send a copy of the executive summary of
its report to each redevelopment agency for which information
was reported pursuant to Section 33080.1 for the fiscal year covered
by the report. The department shall send a copy of its report to
each redevelopment agency that requests a copy.
(b) Changes to this section made by the act amending this
section shall take effect on January 1, 2013.
SEC. 3. Section 33080.14 is added to the Health and Safety
Code, to read:
33080.14. (a) On or before January 1, 2013, the department
shall develop guidelines establishing specific measures and
standards to evaluate redevelopment agency performance in
specific areas, including the following:
(1) A uniform method of calculating and reporting job creation
and retention.
(2) Standards for measuring the efficiency and effectiveness of
expenditures for affordable housing.
(3) Standards for measuring and reducing poverty levels in
project areas.
(4) Standards for measuring and reducing crime in project
areas.
(5) Methods for measuring reductions in vehicle miles traveled
accomplished through redevelopment projects, including, but not
limited to, assistance provided to infill and transit oriented
development.
(6) Standards for reporting on brownfield cleanup and
hazardous waste mitigation.
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(b) The department shall appoint an advisory committee to assist
and advise in the development of the guidelines required by this
section. The advisory committee shall include representatives with
demonstrated expertise in redevelopment, local government metrics
that measure any one or more of the standards described above,
or any other fields of study that the department deems necessary
and appropriate.
(c) Commencing with the 2013–14 fiscal year , the annual report
required by Section 33080.1 shall include a discussion of the
redevelopment agency’s performance based on the guidelines
prepared by the department pursuant to this section.
SEC. 4. Section 33320.1 of the Health and Safety Code is
amended to read:
33320.1. (a) “Project area” means, except as provided in
Section 33320.2, 33320.3, 33320.4, or 33492.3, a predominantly
urbanized area of a community that is a blighted area, the
redevelopment of which is necessary to effectuate the public
purposes declared in this part, and that is selected by the planning
commission pursuant to Section 33322.
(b) As used in this section, “predominantly urbanized” means
that not less than 80 percent of the land in the project area is either
of the following:
(1) Has been or is developed for urban uses.
(2) Is an integral part of one or more areas developed for urban
uses that are surrounded or substantially surrounded by parcels
that have been or are developed for urban uses. Parcels separated
by only an improved right-of-way shall be deemed adjacent for
the purpose of this subdivision. Parcels that are not blighted shall
not be included in the project area for the purpose of obtaining the
allocation of taxes from the area pursuant to Section 33670 without
other substantial justification for their inclusion.
(c) For the purposes of this section, a parcel of property as
shown on the official maps of the county assessor is developed if
that parcel is developed in a manner that is consistent with zoning
standards or is otherwise permitted under law.
(d) Except for a redevelopment plan or plan amendment to add
territory to a project area pursuant to Chapter 4.5 (commencing
with Section 33492), a redevelopment plan or plan amendment to
add territory to a project area shall not be adopted by a community
if the proposed project area or area to be added by plan
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amendment, when aggregated with all other existing project areas
within the community, would result in having (1) 25 percent of a
city’s total land area included within the combined redevelopment
project areas or (2) 10 percent of a county’s or city and county’s
total unincorporated land area included within redevelopment
project areas. The limitations contained in this subdivision shall
apply only to a project area for which a final redevelopment plan
is adopted on or after January 1, 2012, or to an area that is added
to a project area by an amendment to a redevelopment plan, which
amendment is adopted on or after January 1, 2012.
(d)
(e) The requirement that a project be predominantly urbanized
shall apply only to a project area for which a final redevelopment
plan is adopted on or after January 1, 1984, or to an area that is
added to a project area by an amendment to a redevelopment plan,
which amendment is adopted on or after January 1, 1984.
SEC. 5. Section 33334.2 of the Health and Safety Code is
amended to read:
33334.2. (a) Except as provided in subdivision (k), not less
than 20 percent of all taxes that are allocated to the agency pursuant
to Section 33670 shall be used by the agency for the purposes of
increasing, improving, and preserving the community’s supply of
low- and moderate-income housing available at affordable housing
cost, as defined by Section 50052.5, to persons and families of
low or moderate income, as defined in Section 50093, lower
income households, as defined by Section 50079.5, very low
income households, as defined in Section 50105, and extremely
low income households, as defined by Section 50106, that is
occupied by these persons and families, unless one of the following
findings is made annually by resolution:
(1) (A) That no need exists in the community to improve,
increase, or preserve the supply of low- and moderate-income
housing, including housing for very low income households in a
manner that would benefit the project area and that this finding is
consistent with the housing element of the community’s general
plan required by Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code,
including its share of the regional housing needs of very low
income households and persons and families of low or moderate
income.
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(B) This finding shall only be made if the housing element of
the community’s general plan demonstrates that the community
does not have a need to improve, increase, or preserve the supply
of low- and moderate-income housing available at affordable
housing cost to persons and families of low or moderate income
and to very low income households. This finding shall only be
made if it is consistent with the planning agency’s annual report
to the legislative body on implementation of the housing element
required by subdivision (b) of Section 65400 of the Government
Code. No agency of a charter city shall make this finding unless
the planning agency submits the report pursuant to subdivision (b)
of Section 65400 of the Government Code. This finding shall not
take effect until the agency has complied with subdivision (b) of
this section.
(2) (A) That some stated percentage less than 20 percent of the
taxes that are allocated to the agency pursuant to Section 33670
is sufficient to meet the housing needs of the community , including
its share of the regional housing needs of persons and families of
low- or moderate-income and very low income households, and
that this finding is consistent with the housing element of the
community’s general plan required by Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(B) This finding shall only be made if the housing element of
the community’s general plan demonstrates that a percentage of
less than 20 percent will be sufficient to meet the community’s
need to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persons and families of low or moderate income and to very low
income households. This finding shall only be made if it is
consistent with the planning agency’s annual report to the
legislative body on implementation of the housing element required
by subdivision (b) of Section 65400 of the Government Code. No
agency of a charter city shall make this finding unless the planning
agency submits the report pursuant to subdivision (b) of Section
65400 of the Government Code. This finding shall not take effect
until the agency has complied with subdivision (b) of this section.
(C) For purposes of making the findings specified in this
paragraph and paragraph (1), the housing element of the general
plan of a city, county, or city and county shall be current, and shall
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have been determined by the department pursuant to Section 65585
to be in substantial compliance with Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(3) (A) That the community is making a substantial effort to
meet its existing and projected housing needs, including its share
of the regional housing needs, with respect to persons and families
of low and moderate income, particularly very low income
households, as identified in the housing element of the
community’s general plan required by Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code, and that this effort, consisting of direct financial
contributions of local funds used to increase and improve the
supply of housing affordable to, and occupied by, persons and
families of low or moderate income and very low income
households is equivalent in impact to the funds otherwise required
to be set aside pursuant to this section. In addition to any other
local funds, these direct financial contributions may include federal
or state grants paid directly to a community and that the community
has the discretion of using for the purposes for which moneys in
the Low and Moderate Income Housing Fund may be used. The
legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low
or moderate income or very low income households from within,
or adjacent to, the project area, because of increased employment
opportunities, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subdivision may be made until the community has provided or
ensured the availability of replacement dwelling units as defined
in Section 33411.2 and until it has complied with Article 9
(commencing with Section 33410).
(B) In making the determination that other financial
contributions are equivalent in impact pursuant to this subdivision,
the agency shall include only those financial contributions that are
directly related to programs or activities authorized under
subdivision (e).
(C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to
bondholders or private entities incurred prior to May 1, 1991, and
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made in reliance on the provisions of this paragraph. Agencies that
make this finding after June 30, 1993, shall show evidence that
the agency entered into the specific contractual obligation with
the specific intention of making a finding under this paragraph in
order to provide sufficient revenues to pay off the indebtedness.
(b) Within 10 days following the making of a finding under
either paragraph (1) or (2) of subdivision (a), the agency shall send
the Department of Housing and Community Development
department and the Controller a copy of the finding, including the
factual information supporting the finding and other factual
information in the housing element that demonstrates that either
(1) the community does not need to increase, improve, or preserve
the supply of housing for low- and moderate-income households,
including very low income households, or (2) a percentage less
than 20 percent will be sufficient to meet the community’s need
to improve, increase, and preserve the supply of housing for low-
and moderate-income households, including very low income
households. Within 10 days following the making of a finding
under paragraph (3) of subdivision (a), the agency shall send the
Department of Housing and Community Development department
and the Controller a copy of the finding, including the factual
information supporting the finding that the community is making
a substantial effort to meet its existing and projected housing needs.
Agencies that make this finding after June 30, 1993, shall also
submit evidence to the department of its contractual obligations
with bondholders or private entities incurred prior to May 1, 1991,
and made in reliance on this finding.
(c) In any litigation to challenge or attack a finding made under
paragraph (1), (2), or (3) of subdivision (a), the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
If an agency is determined by a court to have knowingly
misrepresented any material facts regarding the community’s share
of its regional housing need for low- and moderate-income housing,
including very low income households, or the community’s
production record in meeting its share of the regional housing need
pursuant to the report required by subdivision (b) of Section 65400
of the Government Code, the agency shall be liable for all court
costs and plaintiff’s attorney’s fees, and shall be required to allocate
not less than 25 percent of the agency’s tax increment revenues to
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its Low and Moderate Income Housing Fund in each year
thereafter.
(d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of
any legal obligations for replacement or relocation housing arising
out of its activities.
(e) In carrying out the purposes of this section, the agency may
exercise any or all of its powers for the construction, rehabilitation,
or preservation of affordable housing for extremely low, very low,
low- and moderate-income persons or families, including the
following:
(1) Acquire real property or building sites subject to Section
33334.16.
(2) (A) Improve real property or building sites with onsite or
offsite improvements, but only if both (i) the improvements are
part of the new construction or rehabilitation of affordable housing
units for low- or moderate-income persons that are directly
benefited by the improvements, and are a reasonable and
fundamental component of the housing units, and (ii) the agency
requires that the units remain available at affordable housing cost
to, and occupied by, persons and families of extremely low, very
low, low, or moderate income for the same time period and in the
same manner as provided in subdivision (c) and paragraph (2) of
subdivision (f) of Section 33334.3.
(B) If the newly constructed or rehabilitated housing units are
part of a larger project and the agency improves or pays for onsite
or offsite improvements pursuant to the authority in this
subdivision, the agency shall pay only a portion of the total cost
of the onsite or offsite improvement. The maximum percentage
of the total cost of the improvement paid for by the agency shall
be determined by dividing the number of housing units that are
affordable to low- or moderate-income persons by the total number
of housing units, if the project is a housing project, or by dividing
the cost of the affordable housing units by the total cost of the
project, if the project is not a housing project.
(3) Donate real property to private or public persons or entities.
(4) Finance insurance premiums pursuant to Section 33136.
(5) Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
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(8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106, very low income
households, as defined by Section 50105, lower income
households, as defined by Section 50079.5, or persons and families
of low or moderate income, as defined by Section 50093, to the
extent those households cannot obtain housing at affordable costs
on the open market. Housing units available on the open market
are those units developed without direct government subsidies.
(9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
(10) Maintain the community’s supply of mobilehomes.
(11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted
or subsidized by public entities and that are threatened with
imminent conversion to market rates.
(f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However,
nothing in this section shall be construed as limiting in any way
the requirements of that section.
(g) (1) The agency may use these funds inside or outside the
project area. The agency may only use these funds outside the
project area upon a resolution of the agency and the legislative
body that the use will be of benefit to the project. The
determination by the agency and the legislative body shall be final
and conclusive as to the issue of benefit to the project area. The
Legislature finds and declares that the provision of replacement
housing pursuant to Section 33413 is always of benefit to a project.
Unless the legislative body finds, before the redevelopment plan
is adopted, that the provision of low- and moderate-income housing
outside the project area will be of benefit to the project, the project
area shall include property suitable for low- and moderate-income
housing.
(2) (A) The Contra Costa County Redevelopment Agency may
use these funds anywhere within the unincorporated territory, or
within the incorporated limits of the City of Walnut Creek on sites
contiguous to the Pleasant Hill BART Station Area Redevelopment
Project area. The agency may only use these funds outside the
project area upon a resolution of the agency and board of
supervisors determining that the use will be of benefit to the project
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area. In addition, the agency may use these funds within the
incorporated limits of the City of Walnut Creek only if the agency
and the board of supervisors find all of the following:
(i) Both the County of Contra Costa and the City of Walnut
Creek have adopted and are implementing complete and current
housing elements of their general plans that the Department of
Housing and Community Development has determined to be in
compliance with the requirements of Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(ii) The development to be funded shall not result in any
residential displacement from the site where the development is
to be built.
(iii) The development to be funded shall not be constructed in
an area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
(iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit station than could be
constructed in the unincorporated territory outside the Pleasant
Hill BART Station Area Redevelopment Project.
(B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements
shall apply:
(i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
(ii) If less than all the units in the development are affordable
to, and occupied by, low- or moderate-income persons, any agency
assistance shall not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
(iii) The units in the development that are affordable to, and
occupied by, low- or moderate-income persons shall remain
affordable for a period of at least 55 years.
(iv) The agency and the City of Walnut Creek shall determine,
if applicable, whether Article XXXIV of the California Constitution
permits the development.
(h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
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(i) This section shall only apply to taxes allocated to a
redevelopment agency for which a final redevelopment plan is
adopted on or after January 1, 1977, or for any area that is added
to a project by an amendment to a redevelopment plan, which
amendment is adopted on or after the effective date of this section.
An agency may, by resolution, elect to make all or part of the
requirements of this section applicable to any redevelopment
project for which a redevelopment plan was adopted prior to
January 1, 1977, subject to any indebtedness incurred prior to the
election.
(j) (1) (A) An action to compel compliance with the
requirement of Section 33334.3 to deposit not less than 20 percent
of all taxes that are allocated to the agency pursuant to Section
33670 in the Low and Moderate Income Housing Fund shall be
commenced within 10 years of the alleged violation. A cause of
action for a violation accrues on the last day of the fiscal year in
which the funds were required to be deposited in the Low and
Moderate Income Housing Fund.
(B) An action to compel compliance with the requirement of
this section or Section 33334.6 that money deposited in the Low
and Moderate Income Housing Fund be used by the agency for
purposes of increasing, improving, and preserving the community’s
supply of low- and moderate-income housing available at
affordable housing cost shall be commenced within 10 years of
the alleged violation. A cause of action for a violation accrues on
the date of the actual expenditure of the funds.
(C) An agency found to have deposited less into the Low and
Moderate Income Housing Fund than mandated by Section 33334.3
or to have spent money from the Low and Moderate Income
Housing Fund for purposes other than increasing, improving, and
preserving the community’s supply of low- and moderate-income
housing, as mandated, by this section or Section 33334.6 shall
repay the funds with interest in one lump sum pursuant to Section
970.4 or 970.5 of the Government Code or may do either of the
following:
(i) Petition the court under Section 970.6 for repayment in
installments.
(ii) Repay the portion of the judgment due to the Low and
Moderate Income Housing Fund in equal installments over a period
of five years following the judgment.
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(2) Repayment shall not be made from the funds required to be
set aside or used for low- and moderate-income housing pursuant
to this section.
(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paragraph (1), all costs, including reasonable attorney’s fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
(4) Except as otherwise provided in this subdivision, Chapter
2 (commencing with Section 970) of Part 5 of Division 3.6 of Title
1 of the Government Code for the enforcement of a judgment
against a local public entity applies to a judgment against a local
public entity that violates this section.
(5) This subdivision applies to actions filed on and after January
1, 2006.
(6) The limitations period specified in subparagraphs (A) and
(B) of paragraph (1) does not apply to a cause of action brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10
of Part 2 of the Code of Civil Procedure.
(k) (1) From July 1, 2009, to June 30, 2010, inclusive, an agency
may suspend all or part of its required allocation to the Low and
Moderate Income Housing Fund from taxes that are allocated to
that agency pursuant to Section 33670.
(2) An agency that suspends revenue pursuant to paragraph (1)
shall pay back to its low- and moderate-income housing fund the
amount of revenue that was suspended in the 2009–10 fiscal year
pursuant to this subdivision from July 1, 2010, to June 30, 2015,
inclusive.
(3) An agency that suspends revenue pursuant to paragraph (1)
and fails to repay or have repaid on its behalf the amount of revenue
suspended pursuant to paragraph (2) shall, commencing July 1,
2015, be required to allocate an additional 5 percent of all taxes
that are allocated to that agency pursuant to Section 33670 for low-
and moderate-income housing for the remainder of the time that
the agency receives allocations of tax revenue pursuant to Section
33670.
(4) An agency that fails to pay or have paid on its behalf the
full amount calculated pursuant to subparagraph (J) of paragraph
(2) of subdivision (a) of Section 33690, or subparagraph (J) of
paragraph (2) of subdivision (a) of Section 33690.5, as the case
may be, shall, commencing July 1, 2010, or July 1, 2011, as
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applicable, be required to allocate an additional 5 percent of all
taxes that are allocated to that agency pursuant to Section 33670
for low- and moderate-income housing for the remainder of the
time that the agency receives allocations of tax revenue pursuant
to Section 33670.
SEC. 6. Section 33367 of the Health and Safety Code is
amended to read:
33367. The ordinance shall contain all of the following:
(a) The purposes and intent of the legislative body with respect
to the project area.
(b) The plan incorporated by reference.
(c) A designation of the approved plan as the official
redevelopment plan of the project area.
(d) The findings and determinations of the legislative body,
which shall be based on clearly articulated and documented
evidence, that:
(1) The project area is a blighted area, the redevelopment of
which is necessary to effectuate the public purposes declared in
this part. This finding shall be supported by empirical and, to the
greatest extent feasible, quantifiable evidence demonstrating the
prevalence of specific conditions set forth in Section 33031on
specific properties that are so substantial that they cause a
reduction of, or lack of, proper utilization of the entire project
area. Evidence shall be reasonable in nature, credible, and of solid
value. Conclusions not based on documented evidence of specific
conditions shall be deemed insufficient.
(2) The redevelopment plan would redevelop the area in
conformity with this part and in the interests of the public peace,
health, safety, and welfare.
(3) The adoption and carrying out of the redevelopment plan is
economically sound and feasible.
(4) The redevelopment plan is consistent with the general plan
of the community, including, but not limited to, the community’s
housing element, which substantially complies with the
requirements of Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
(5) The carrying out of the redevelopment plan would promote
the public peace, health, safety, and welfare of the community and
would effectuate the purposes and policy of this part.
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(6) The condemnation of real property, if provided for in the
redevelopment plan, is necessary to the execution of the
redevelopment plan and adequate provisions have been made for
payment for property to be acquired as provided by law.
(7) The agency has a feasible method or plan for the relocation
of families and persons displaced from the project area, if the
redevelopment plan may result in the temporary or permanent
displacement of any occupants of housing facilities in the project
area.
(8) (A) There are, or shall be provided, in the project area or
in other areas not generally less desirable in regard to public
utilities and public and commercial facilities and at rents or prices
within the financial means of the families and persons displaced
from the project area, decent, safe, and sanitary dwellings equal
in number to the number of and available to the displaced families
and persons and reasonably accessible to their places of
employment.
(B) Families and persons shall not be displaced prior to the
adoption of a relocation plan pursuant to Sections 33411 and
33411.1. Dwelling units housing persons and families of low or
moderate income shall not be removed or destroyed prior to the
adoption of a replacement housing plan pursuant to Sections
33334.5, 33413, and 33413.5.
(9) All noncontiguous areas of a project area are either blighted
or necessary for effective redevelopment and are not included for
the purpose of obtaining the allocation of taxes from the area
pursuant to Section 33670 without other substantial justification
for their inclusion.
(10) Inclusion of any lands, buildings, or improvements which
are not detrimental to the public health, safety, or welfare is
necessary for the effective redevelopment of the area of which
they are a part; that any area included is necessary for effective
redevelopment and is not included for the purpose of obtaining
the allocation of tax increment revenues from the area pursuant to
Section 33670 without other substantial justification for its
inclusion.
(11) The elimination of blight and the redevelopment of the
project area could not be reasonably expected to be accomplished
by private enterprise acting alone without the aid and assistance
of the agency.
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(12) The project area is predominantly urbanized, as defined
by subdivision (b) of Section 33320.1.
(13) The time limitation and, if applicable, the limitation on the
number of dollars to be allocated to the agency that are contained
in the plan are reasonably related to the proposed projects to be
implemented in the project area and to the ability of the agency to
eliminate blight within the project area.
(14) The implementation of the redevelopment plan will improve
or alleviate the physical and economic conditions of blight in the
project area, as described in the report prepared pursuant to Section
33352.
(e) A statement that the legislative body is satisfied that
permanent housing facilities will be available within three years
from the time occupants of the project area are displaced and that,
pending the development of the facilities, there will be available
to the displaced occupants adequate temporary housing facilities
at rents comparable to those in the community at the time of their
displacement.
SEC. 7. Section 33426.5 of the Health and Safety Code is
amended to read:
33426.5. Notwithstanding the provisions of Sections 33391,
33430, 33433, and 33445, or any other provision of this part, an
agency shall not provide any form of direct assistance to the
following:
(a) An automobile dealership which will be or is on a parcel
of land which has not previously been developed for urban use,
unless, prior to the effective date of the act that adds this section,
the agency either owns the land or has entered into an enforceable
agreement, for the purchase of the land or of an interest in the land,
including, but not limited to, a lease or an agreement containing
covenants affecting real property, that requires the land to be
developed and used as an automobile dealership.
(b) (1) A development that will be or is on a parcel of land of
five acres or more which has not previously been developed for
urban use and that will, when developed, generate sales or use tax
pursuant to Part 1.5 (commencing with Section 7200) of Division
2 of the Revenue and Taxation Code, unless the principal permitted
use of the development is office, hotel, manufacturing, or industrial,
or unless, prior to the effective date of the act that adds this section,
the agency either owns the land or has entered into an enforceable
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agreement, for the purchase of the land or of an interest in the land,
including, but not limited to, a lease or an agreement containing
covenants affecting real property, that requires the land to be
developed.
(2) For the purposes of this subdivision, a parcel shall include
land on an adjacent or nearby parcel on which a use exists that is
necessary for the legal development of the parcel.
(c) A development that will be or is on a parcel of land of 20
acres or more that has not previously been developed for urban
use, except that this restriction shall not apply to land located
within both a project area adopted pursuant to Chapter 4.5
(commencing with Section 33492) and the boundaries of a former
military base that has been closed or realigned by the actions of
the federal Defense Base Closure and Realignment Commission.
(d) A development or business, either directly or indirectly, for
the acquisition, construction, improvement, rehabilitation, or
replacement of property that is or would be used for a golf course
or for a racetrack, speedway or other racing venue.
(e) A development or business, for the acquisition, construction,
improvement, rehabilitation, or replacement of property that is or
would be used for a stadium, coliseum, arena, ballpark or other
sports facility that is intended for use by a professional sports
franchise unless the proposed assistance or another component
of the financing for the proposed project is submitted to the
electorate that resides in the territorial jurisdiction of the agency
providing assistance, and is approved by a majority of the voters
voting on the proposed development.
(c)
(f) A development or business, either directly or indirectly, for
the acquisition, construction, improvement, rehabilitation, or
replacement of property that is or would be used for gambling or
gaming of any kind whatsoever including, but not limited to,
casinos, gaming clubs, bingo operations, or any facility wherein
banked or percentage games, any form of gambling device, or
lotteries, other than the California State Lottery, are or will be
played.
(d)
(g) The prohibition in subdivision (c) (f) is not intended to
prohibit a redevelopment agency from acquiring property on or in
which an existing gambling enterprise is located, for the purpose
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of selling or leasing the property for uses other than gambling,
provided that the agency acquires the property for fair market
value.
(e)
(h) This section shall not be construed to apply to agency
assistance in the construction of public improvements that serve
all or a portion of a project area and that are not required to be
constructed as a condition of approval of a development described
in subdivision (a), (b), or (c), (c), (d), (e), or (f) or to prohibit
assistance in the construction of public improvements that are
being constructed for a development that is not described in
subdivision (a), (b), or (c) (c), (d), (e), or (f).
SEC. 8. Section 33444.7 is added to the Health and Safety
Code, to read:
33444.7. An agency may establish a program under which it
loans or grants funds to owners or tenants to improve, rehabilitate,
or retrofit buildings or structures located within the redevelopment
project area to increase energy efficiency or reduce greenhouse
gas emissions resulting from such buildings or structures, or to
facilitate infill development of areas targeted for such development
in an approved sustainable communities strategy that applies to
the agency’s jurisdiction.
SEC. 9. Section 33444.8 is added to the Health and Safety
Code, to read:
33444.8. (a) An agency may provide direct assistance to
businesses within project areas in connection with new or existing
facilities for industrial or manufacturing uses or similar uses of
statewide benefit, where the assistance provided is reasonably
expected to result in the retention or expansion of not less than 25
full-time equivalent jobs within the project area.
(b) Direct assistance may include, but is not limited to, loans,
loan guarantees, or the provision or replacement of machinery
and equipment in new or existing facilities for industrial or
manufacturing uses in the project area.
(c) The Legislature finds and declares that the purpose of this
section is to clarify existing law and to provide agencies with
additional authority to assist businesses in order to encourage the
retention of existing employment opportunities and the attraction
of new employment opportunities. These activities and programs
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shall constitute redevelopment as prescribed in Sections 33020
and 33021.
SEC. 10. Section 33460.1 is added to the Health and Safety
Code, to read:
33460.1. Immediately upon receipt, each agency shall deposit
one quarter of one-tenth of 1 percent of the tax increment received
by the agency after the amount required to be deposited in the Low
and Moderate Income Housing Fund has been deducted, into the
Redevelopment Agency State Audit Fund created pursuant to
Section 50464.6 to be used solely for the purpose described in
subdivision (b) of that section.
SEC. 11. Section 33488 of the Health and Safety Code is
amended to read:
33488. Prior to merging project areas pursuant to Section
33486, a redevelopment agency shall notify the department and
the Controller of its intention to merge its project areas, which
shall occur no later than 30 days prior to adoption of the ordinance
which provides for merger.
SEC. 12. Section 33491 is added to the Health and Safety Code,
to read:
33491. (a) Commencing with the implementation plan next
adopted following January 1, 2012, an implementation plan shall
contain the specific goals and objectives of the agency for the
project area and the specific programs and potential projects that
will cause not less than 50 percent of its net unencumbered revenue
during the next five years to be expended for one or more of the
following:
(1) Development, including rehabilitation, resulting in
significant job retention or creation.
(2) Remediation of contaminated properties.
(3) Infill and transit-oriented development.
(4) Military base conversion.
(5) Public infrastructure, excluding buildings.
(6) Housing affordable to persons of very low and extremely
low income.
(b) “Net unencumbered revenue” shall mean all revenue
received by the agency, less: debt service on bonds, notes and
other obligations entered into prior to January 1, 2012; payments
to taxing agencies pursuant to Section 33607.5 or 33607.7 or under
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agreements entered into pursuant to former Section 33401; and
deposits in the agency’s low- and moderate-income housing fund.
(c) Prior to approving an implementation plan subject to this
subdivision, the agency shall obtain the recommendation of the
project area committee. If a project area committee does not exist,
the agency shall obtain the recommendation of a community
advisory body designated by the legislative body which is
representative of interests described in subdivision (c) of Section
33385. If the project area committee or community advisory body
does not make its recommendation within 60 days after receiving
a copy of the proposed implementation plan, the agency may
consider the implementation plan without their recommendation.
(d) The implementation plans adopted five and 10 years after
the implementation plan that implements this subdivision shall
evaluate the agency’s progress in achieving the goals and
objectives described in subdivision (a). The agency shall obtain
the recommendation of the project area committee or community
advisory body in the manner set forth in subdivision (c). If the
project area committee or community advisory body recommends
against adoption of the implementation plan adopted 10 years
after the implementation plan that implements this subdivision,
the agency shall only adopt that implementation plan upon a
two-thirds vote of all of its members. Until an implementation plan
has been approved as set forth in this subdivision, an agency shall
not undertake any activity not provided for in the existing
implementation plan.
SEC. 13. Section 33601 of the Health and Safety Code is
amended to read:
33601. (a) An agency may borrow money or accept financial
or other assistance from the state or the federal government or any
other public agency for any redevelopment project within its area
of operation, and may comply with any conditions of such loan or
grant.
An
(b) An agency may borrow money (by the issuance of bonds or
otherwise) or accept financial or other assistance from any private
lending institution for any redevelopment project for any of the
purposes of this part, and may execute trust deeds or mortgages
on any real or personal property owned or acquired.
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(c) An agency shall pay interest on any money borrowed from
the legislative body at a rate no greater than simple interest on 10
year United States Treasury bills. The provisions of this subdivision
shall become effective January 1, 2012, and shall apply to money
borrowed from the legislative body at any time, regardless of the
provisions of any note, agreement, or other written instrument to
the contrary.
SEC. 14. Section 33607.9 is added to the Health and Safety
Code, to read:
33607.9. On or before January 1, 2013, the Controller shall
develop a simple, uniform, and consistent methodology for the
calculation, payment, and reporting of passthrough payments as
required by Sections 33607.5 and 33607.7 that is consistent with
existing published case law and Attorney General opinions
interpreting Sections 33607.5 and 33607.7. The Controller shall
appoint an advisory committee to advise in the development of
methodology. The advisory committee shall include representatives
from the Chancellor of the California Community Colleges, the
State Department of Education, the California Redevelopment
Association, county auditor-controllers, and any other authorities
in the field that the Controller deems necessary or appropriate.
SEC. 15. Section 33610 of the Health and Safety Code is
amended to read:
33610. (a) At any time after the agency created for any
community becomes authorized to transact business and exercise
its powers, the legislative body of the community may appropriate
to the agency such amounts as the legislative body deems necessary
for the administrative expenses and overhead of the agency. The
money appropriated may be paid to the agency as a grant to defray
the expenses and overhead, or as a loan to be repaid upon such
terms and conditions as the legislative body may provide.
In
(b) In addition to the common understanding and usual
interpretation of the term, “administrative expense” includes, but
is not limited to, expenses of redevelopment planning and
dissemination of redevelopment information.
(c) An agency may enter into an agreement with the legislative
body to reimburse the legislative body for administrative expenses
and overhead of the agency paid by the legislative body. An agency
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shall not pay costs of providing services, materials, or facilities
which do not directly benefit the redevelopment project.
SEC. 16. Section 33670 of the Health and Safety Code is
amended to read:
33670. Any redevelopment plan may contain a provision that
taxes, if any, levied upon taxable property in a redevelopment
project each year by or for the benefit of the State of California,
any city, county, city and county, district, or other public
corporation (hereinafter sometimes called “taxing agencies”) after
the effective date of the ordinance approving the redevelopment
plan, shall be divided as follows:
(a) That portion of the taxes which would be produced by the
rate upon which the tax is levied each year by or for each of the
taxing agencies upon the total sum of the assessed value of the
taxable property in the redevelopment project as shown upon the
assessment roll used in connection with the taxation of that property
by the taxing agency, last equalized prior to the effective date of
the ordinance, shall be allocated to and when collected shall be
paid to the respective taxing agencies as taxes by or for the taxing
agencies on all other property are paid (for the purpose of allocating
taxes levied by or for any taxing agency or agencies which did not
include the territory in a redevelopment project on the effective
date of the ordinance but to which that territory has been annexed
or otherwise included after that effective date, the assessment roll
of the county last equalized on the effective date of the ordinance
shall be used in determining the assessed valuation of the taxable
property in the project on the effective date); and
(b) Except as provided in subdivision (e) or in Section 33492.15,
that portion of the levied taxes each year in excess of that amount
shall be allocated to and when collected shall be paid into a special
fund of the redevelopment agency to pay the principal of and
interest on loans, moneys advanced to, or indebtedness (whether
funded, refunded, assumed, or otherwise) incurred by the
redevelopment agency to finance or refinance, in whole or in part,
the redevelopment project. Unless and until the total assessed
valuation of the taxable property in a redevelopment project
exceeds the total assessed value of the taxable property in that
project as shown by the last equalized assessment roll referred to
in subdivision (a), all of the taxes levied and collected upon the
taxable property in the redevelopment project shall be paid to the
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respective taxing agencies. When the loans, advances, and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property
in the redevelopment project shall be paid to the respective taxing
agencies as taxes on all other property are paid.
(c) In any redevelopment project in which taxes have been
divided pursuant to this section prior to 1968, located within any
county with total assessed valuation subject to general property
taxes for the 1967–68 fiscal year between two billion dollars
($2,000,000,000) and two billion one hundred million dollars
($2,100,000,000), if the total assessed valuation of taxable property
within the redevelopment project for the 1967–68 fiscal year was
reduced, the total sum of the assessed value of taxable property
used as the basis for apportionment of taxes under subdivision (a)
shall be reduced by 10 percent for the 1968–69 fiscal year and
fiscal years thereafter.
(d) For the purposes of this section, taxes shall not include taxes
from the supplemental assessment roll levied pursuant to Chapter
3.5 (commencing with Section 75) of Part 0.5 of Division 1 of the
Revenue and Taxation Code for the 1983–84 fiscal year.
(e) That portion of the taxes in excess of the amount identified
in subdivision (a) which are attributable to a tax rate levied by a
taxing agency for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing agency. This
subdivision shall only apply to taxes levied to repay bonded
indebtedness approved by the voters of the taxing agency on or
after January 1, 1989.
(f) For purposes of this section, taxes levied, divided, and
allocated shall exclude any funds considered educational entity
property tax revenues. This subdivision shall apply to tax increment
revenues generated from any redevelopment project area
established on or after January 1, 2012.
SEC. 17. Section 33670.5 of the Health and Safety Code is
amended to read:
33670.5. (a) Section 33670 fulfills the intent of Section 16 of
Article XVI of the Constitution. To further carry out the intent of
Section 16 of Article XVI of the Constitution, whenever that
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provision requires the allocation of money between agencies such
allocation shall be consistent with the intent of the people when
they approved Section 16 of Article XVI of the Constitution.
Whenever money is allocated between agencies by means of a
comparison of assessed values for different years, that comparison
shall be based on the same assessment ratio. When there are
different assessment ratios for the years compared, the assessed
value shall be changed so that it is based on the same assessment
ratio for the years so compared.
(b) Pursuant to subdivision (f) of Section 33670, the Legislature
finds and declares that moneys allocated pursuant to Section 33670
in order to carry out the intent of Section 16 of Article XVI of the
California Constitution exclude any funds considered educational
entity property tax revenues.
SEC. 18. Section 33675.1 is added to the Health and Safety
Code, to read:
33675.1. On or before January 1, 2013, and periodically
thereafter, the Controller shall review the uniform form for a
statement of indebtedness and a reconciliation statement prescribed
pursuant to Section 33675 and shall, after obtaining the input of
county auditor-controllers, the California Redevelopment
Association, the Society of Certified Public Accountants, and any
other authorities in the field that the Controller deems necessary
or appropriate, make revisions to the uniform form for a statement
of indebtedness and a reconciliation statement consistent with this
part, including, but not limited to, the types and amounts of
indebtedness to be reported.
SEC. 19. Section 50464.6 is added to the Health and Safety
Code, to read:
50464.6. (a) The Redevelopment Agency State Audit Fund is
hereby created in the State Treasury and is available, upon
appropriation, to the State Auditor for the purposes of subdivision
(b). Notwithstanding Section 16305.7 of the Government Code,
any moneys received by the State Auditor pursuant to Section
33460.1, and any other sources, repayments, interest, or new
appropriations, shall be deposited in the fund established by this
section. Moneys in the fund shall not be subject to transfer to any
other fund pursuant to any provision of Part 2 (commencing with
Section 16300) of Division 4 of Title 2 of the Government Code,
except the Surplus Money Investment Fund. The State Auditor may
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require the transfer of moneys in the fund to the Surplus Money
Investment Fund for investment pursuant to Article 4 (commencing
with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title
2 of the Government Code. Notwithstanding Section 16305.7 of
the Government Code, all interest, dividends, and pecuniary gains
from the investments shall accrue to the fund.
(b) To the extent funds are available pursuant to subdivision
(a), the State Auditor shall conduct or shall have conducted
performance audits of selected redevelopment agencies to ensure
compliance with the requirements of the Community
Redevelopment Law. The performance audits conducted pursuant
to this subdivision shall include reviews of redevelopment agencies’
separately required independent audits from the previous year.
The State Auditor shall require that each agency take action to
correct any audit violations found through the performance audit.
If the State Auditor determines that an agency has not corrected
the audit violations within 180 days of a final audit report, the
State Auditor shall forward all relevant documents to the Attorney
General for action pursuant to Section 33080.8.
SEC. 20. (a) By January 1, 2013, the Controller shall issue
regulations revising and consolidating reporting for redevelopment
agencies. The goal of the regulations shall be to do all of the
following: (1) unify and simplify the reporting requirements of
redevelopment agencies; (2) focus reporting requirements on
information that will be of the greatest utility in monitoring the
activities of redevelopment agencies and their compliance with
the provisions of the Community Redevelopment Law; and (3)
produce consistent and comparable data using a user-friendly,
self-checking electronic data reporting system. The Controller
shall consult with an advisory committee comprised of persons
nominated by the department, the Legislative Analyst, the
California Society of Certified Public Accountants, the California
Redevelopment Association, and any other authorities in the field
that the Controller deems necessary and appropriate.
(b) In connection with issuing the regulations described in
subdivision (a), by January 1, 2013, the Controller shall prepare
or cause to be prepared a management study that evaluates the
reporting of redevelopment agencies and recommends any new
management systems, including required technology, needed to
implement the proposed regulations.
98
— 26 — SB 2861|1010101010|All matter omitted in this version of the bill
appears in the bill as introduced in the
Senate, February 14, 2011. (JR11)
O
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SB 286 — 27 —
City of Culver City, California
Agenda Item Report
Meeting Date: _05/23/11_ Item Number: _J-3
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Adoption of a Position to Support SB 286 and any Subsequent Legislation that is
Essentially Similar to SB 286, Relating to Redevelopment Reforms.
Contact Person/Dept.: Shelly
Wolfberg/City Manager’s Office
Phone Number: (310) 253-6008
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas-City Council and Redevelopment Agency
(05/19/11); Senator Rod Wright (D-25); Senator Curren D. Price (D-26);
Assemblymember Holly Mitchell (D-47); Assemblymember Luis Alejo (D-28); John Shirey,
California Redevelopment Association; and Jeff Kiernan, League of California Cities
(05/19/11).
Department Approval:
Martin R. Cole (05/19/11)
City Attorney Approval:
Carol A. Schwab (by H. Baker) (05/19/11)
Agency General Counsel:
Murray Kane (05/19/11)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (05/19/11)
City Manager/Executive Director Approval:
John M. Nachbar (05/19/11)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board (Agency
Board) adopt a motion supporting SB 286 and any subsequent legislation that is
essentially similar to SB 286 relating to redevelopment reforms.
BACKGROUND:
Redevelopment works to eliminate blight, thereby improving existing properties and
attracting new development throughout Culver City to help ensure properties reach
their highest and best use and to establish a balanced and prosperous community.
Redevelopment efforts in Culver City have been effective in stimulating private
reinvestment into areas by increasing public safety and creating opportunities for
business growth, jobs, and affordable housing.
The Governor’s 2011/12 May Revise version of the state budget reiterates his
proposal to abolish redevelopment agencies statewide in order to address the
State’s historic budget deficit. Over 400 redevelopment agencies in California would
be impacted.
City of Culver City, California
Agenda Item Report
In Fiscal Year 2009/2010 the State of California “redirected” over $10.9 million of
redevelopment funds from the Culver City Redevelopment Agency and, under
current legislation, an additional $2.25 million was “redirected” in Fiscal Year
2010/2011. “Redirected” funds are no longer available for local redevelopment
efforts and have been applied by the State to address its past budget deficits.
On March 7, 2011, the City Council and Agency Board adopted Joint Resolution No.
2011-R017 opposing all proposals to abolish redevelopment agencies. On April 27,
2011, State Senator Rod Wright introduced his amended SB 286, which outlines
various reforms related to redevelopment agencies in California. On May 2, 2011,
the League of California Cities took a support position on SB 286. On May 4, 2011,
SB 286 stalled in the Senate Governance and Finance Committee; and it has now
become a two year bill. On May 16, 2011, Governor Brown’s May Revise was
released and maintains the Governor’s proposal to eliminate redevelopment
agencies. On May 19, 2011, staff learned via League of California Cities staff, that
Assemblymember Alejo (D-28) is considering introducing legislation that is similar if
not identical to the language found in SB 286.
DISCUSSION:
Staff has reviewed the current version of SB 286. This bill (attached), according to
the summary provided: “1) prohibits the legislative body of a city, county, or city and
county from adopting an ordinance to adopt or amend a redevelopment plan; 2)
imposes new requirements on the redevelopment agency with respect to
implementation plans and evidentiary standards; 3) expands existing prohibits
(prohibitions) on agency direct assistance to certain projects; 4) requires the State
Auditor to conduct audits of selected agencies to ensure compliance; and 5) requires
each agency to deposit a percentage of tax increment into the agency audit fund.”
Senator Wright drafted SB 286 as a “Strong reform package (that) will increase
accountability and effectiveness of Redevelopment in California”. The author’s office
indicates that SB 286 is “a bill that would impose tough new reforms to increase
accountability and limit the size and scope of redevelopment in California. SB 286
would ensure redevelopment is being used responsibly to maximize job-creation,
revitalize rundown communities, clean up contaminated properties, finance
infrastructure improvements, and build affordable housing. It would also institute
tough new reporting and accountability standards.”
According to the author’s office SB 286, if approved, will:
1. Tighten the definition of blight to stop inappropriate uses of Redevelopment and
ensure it focuses on areas most in need;
2. Limit Redevelopment size; City of Culver City, California
Agenda Item Report
3. Provide for school districts to retain all property taxes and tax increment in new
Redevelopment project areas, increasing school funding and/or providing State
General Fund relief;
4. Implement strict, performance-based standards focused on State priorities and
increase oversight by local citizens committees;
5. Increase accountability with stringent reporting and performance standards;
6. Institute Annual Performance Audits by the State Auditor;
7. Prohibit the use of funds for Non-Redevelopment expenses; and
8. Reduce Redevelopment’s footprint in California.
Staff believes that while there may be some minor, less than favorable impacts to
the Culver City Redevelopment Agency if SB 286 is adopted or components of it are
incorporated into the State Budget, the implementation of Redevelopment reform
measures are preferable to the complete elimination of Redevelopment. It is
possible that legislators may feel that redevelopment reform is also a constructive,
preferred approach as the governor and the legislature struggle to close the State’s
budget deficit.
The City Council and Agency Board are being asked to consider taking a position of
support of SB 286 as it is written and any subsequent legislation that is essentially
similar to SB 286. If the bill language changes, staff will notify the City Council
immediately with an analysis of the changes and whether or not the changes
negatively impact the Culver City Redevelopment Agency or the City of Culver City.
Agency General Counsel Murray Kane will be available at the Council Meeting to
provide additional information and answer specific questions.
FISCAL ANALYSIS:
There is no fiscal impact to a take a position of support of SB 286. The Community
Development Director and Chief Financial Officer are currently analyzing potential
impacts to the Redevelopment Agency and City budgets if Redevelopment were to
be completely eliminated through the Governor’s budget. As SB 286 moves through
the legislature and any potential new information is announced about the Governor’s
Budget, the Chief Financial Officer will analyze new information accordingly. It is
certain that any potential negative fiscal impacts of SB 286 are favorable to the
complete elimination of redevelopment.
ATTACHMENTS:
SB 286
MOTION:
That the City Council and Agency Board: City of Culver City, California
Agenda Item Report
1. Adopt a position of support for SB 286 and any subsequent legislation that is
essentially similar to SB 286 and direct the City Manager/Executive Director to
transmit the City’s/Agency’s position letter to Culver City’s state representatives,
the California Redevelopment Association, the League of California Cities, and
others as appropriate;
and/or
2. Provide other direction to staff.