CC - Item 4A - Eminent Domain and Redevelopment Related Legislation0
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ROSEMEAD CITY COUNCIL
7V/) STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNC L
FROM: ANDREW C. LAZZARETTO, CITY MANAG
DATE: JULY 11, 2006
SUBJECT: EMINENT DOMAIN AND REDEVELOPMENT RELATED LEGISLATION
SUMMARY
Senate Bill 1206 (Kehoe) is a measure that is currently awaiting hearing in the Assembly
Appropriations Committee and seeks to redefine blight and the documentation of blighting
conditions for the purpose of utilizing redevelopment authority. If approved, the measure
would restrict Rosemead's economic development efforts by imposing new regulations
governing redevelopment activities.
Proposition 90 is an initiative constitutional amendment that will appear on the November
2006 ballot and is titled the Government Acquisition, Regulation of Private Property. The
measure has been dubbed the "Anderson Initiative," and if approved, would impact a variety
of public projects and economic development programs by limiting a government's ability to
adopt certain land use, housing, consumer, environmental and workplace laws and
regulations.
Staff Recommendation
Staff recommends that the City Council take the following action:
1. Vote to oppose Proposition 90 and SB 1206.
2. Direct the City Manager to send correspondences to the appropriate agencies and
individuals regarding the City's opposition to Proposition 90 and SB 1206.
ANALYSIS
Senate Bill 1206
Senate Bill 1206 seeks to make extensive changes to the current definition of blight, a
condition that would affect redevelopment activities throughout the State of California. In
particular, this measure would require that for each blight condition that is found, it must
also be shown that the situation is significantly worse within the proposed project area than
in the rest of the community. Such a requirement will present a hardship in pursuing
redevelopment projects within a community and will also increase the expense of
conducting blight findings. 1
APPROVED FOR CITY COUNCIL AGENDA: 04-4-J \'V ITEM NUMBER:
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City Council Meeting
June 6, 2006
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Proposition 90: Anderson Initiative
The Anderson Initiative will be appearing on the November 2006 ballot and seeks to make
far reaching changes in the way that eminent domain authority can be exercised by a
governmental entity, thus severely restricting redevelopment related activities. The League
of California Cities, the California Redevelopment Association, a number of utility
companies, business entities, and the Howard Jarvis Taxpayers Association have all
banded together in its opposition to this initiative, which if enacted, would do the following:
■ Prohibits use of eminent domain unless the property acquired is owned and
occupied by a governmental agency.
■ Redefines "just compensation" as the sum of money necessary to place the property
owner in the same position monetarily, as if the property had never been taken. It is
unclear what would be included to make the property owner whole, but presumably
things such as lost income, relocation costs, and more. Redefines "fair market
value" as the highest and best use the property would bring on the open market.
■ If a property taken by the government is to be put to use at a higher value after
acquisition, the property owner must be paid at the fair market value in accordance
with the government's use. For example, if a city uses eminent domain to acquire
agricultural land for a municipal airport (from which the city would receive revenues
from commercial leases, for example), then the owner must be paid fair market value
in accordance with the city's use. The owners would be paid this higher amount
regardless of whether or not they could have achieved such a use under the
applicable zoning, and regardless of whether other laws would have required them
to dedicate a portion of the land.
■ Redefines "damage" to include government actions that result in economic loss to
private property, including many zoning practices such as down zoning or height
restrictions, environmental regulations, affordable housing covenants, etc. Requires
compensatory payment of these damages by implementing agency.
■ Would require that blight findings be made on a parcel-by-parcel basis. Current law
requires that a project area be declared blighted before eminent domain can be
used, but it does not require every parcel in the area to be blighted.
■ Would annul judgments in every eminent domain action that does not result in a
published appellate opinion. Currently, most eminent domain decisions are not
published because they are settled in Superior Courts, which never publish
decisions. Only appellate decisions are published and even then they are not
published in every case.
■ Provisions of this initiative would take effect the day following the election and would
apply to any eminent domain proceedings in which no final court judgment has been
obtained. It is unclear how the provisions relating to damages would apply to
regulations in effect at the time of enactment.
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City Council Meeting
June 6, 2006
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PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
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Oliver Chi
Director of Administrative Services
Attachment A: Proposition 90
Attachment B: SIB 1206
• • ATTACHMENT A
~DQJ P-F o / y 0
December 13, 2005
The Honorable Bill Lockyer
Attorney General, State of California
Office of the Attorney General
AT1T1:Initiative Coordinator
13001 Street
Sacramento, California 95814
~CE! VSO
DEC 2 12005
INITIATIVE COORDINATOR
ATTORNEY GENERAL'S OFFICE
Dear General Lockyer:
Pursuant to Elections Code §9002, I hereby request that your office prepare a title and
summary of the chief purpose and points of the attached proposed initiative measure. I
am registered to vote in the State of California at the address listed below. Included is
my check for $200 as required by §9002.
Thank you.
Anita S. Anderson
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,S,q 2cg,5 efdlyo
Section 1. STATEMENT OF FINDINGS
(a) The California Constitution provides that no person shall be deprived of
property without due process of law and allows government to take or damage private
property only for a public use and only after payment to the property owner of just
compensation.
(b) Despite these constitutional protections, state and local governments have
undermined private property rights through an excessive use of eminent domain power
and the regulation of private property for purposes unrelated to public health and safety.
(c) Neither the federal nor the California courts have protected the full scope
of private property rights found in the state constitution. The courts have allowed local
governments to exercise eminent domain powers to advance private economic interests in
the face of protests from affected homeowners and neighborhood groups. The courts
have not required government to pay compensation to property owners when enacting
statutes, charter provisions, ordinances, resolutions, laws, rules or regulations not related
to public health and safety that reduce the value of private property.
(d) As currently structured, the judicial process in California available to
property owners to pursue property rights claims is cumbersome and costly.
Section 2. STATEMENT OF PURPOSE
(a) The power of eminent domain available to government in California shall
be limited to projects of public use. Examples of public use projects include, but are not
limited to, road construction, the creation of public parks, the creation of public facilities,
land-use planning, property zoning, and actions to preserve the public health and safety.
(b) Public use projects that the government assigns, contracts or otherwise
arranges for private entities to perform shall retain the power of eminent domain.
Examples of public use projects that private entities perform include, but are not limited
to, the construction and operation of private toll roads and privately-owned prison
facilities.
(c) Whenever government takes or damages private property for a public use,
the owner of any affected property shall receive just compensation for the property taken
or damaged. Just compensation shall be set at fair market value for property taken and
diminution of fair market value for property damaged. Whenever a property owner and
the government can not agree on fair compensation, the California courts shall provide
through a jury trial a fair and timely process for the settlement of disputes.
(d) This constitutional amendment shall apply prospectively. Its terms shall
apply to any eminent domain proceeding brought by a public agency not yet subject to a
final adjudication. No statute, charter provision, ordinance, resolution, law, rule or
regulation in effect on the date of enactment that results or has resulted in a substantial
loss to the value of private property shall be subject to the new provisions of Section 19
of Article 1.
(e) Therefore, the people of the state of California hereby enact "The Protect
Our Homes Act."
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Section 3. AMENDMENT TO THE CALIFORNIA CONSTITUTION
Section 19 of Article I of the state constitution is amended to read:
SEC. 19. mi(l) Private property may be taken or damaged only for a stated public use
and only when just compensation, ascertained by a jury unless waived, has first been paid
to, or into court for, the owner. Private property may not be taken or damaged for private
use.
2 Property taken by eminent domain shall be owned and occupied by the
condemnor, or another governmental agency utilizing the property for the stated public
use by agreement with the condemnor, or may be leased to entities that are regulated by
the Public Utilities Commission or any other entity that the government assigns, contracts
or arranges with to perform a public use project. All property that is taken by eminent
domain shall be ased only for the stated public use.
(3 If any property taken through eminent domain after the effective date of this
subdivision ceases to be used for the stated public use, the former owner of the property
or a beneficiary or an heir, if a beneficiary or heir has been designated for this purpose,
assessor for purposes of property taxation at its base year value, with any authorized
adjustments, as had been last determined in accordance with Article XIII A at the time
the property was acquired by the condemnor.
The Legislature may provide for possession by the condemnor following
commencement of eminent domain proceedings upon deposit in court and prompt release
to the owner of money determined by the court to be the probable amount of just
compensation.
(b) For purposed of applying this section:
u "Public use" shall have a distinct and more narrow meaning than the term
"public purpose;" its limiting effect prohibits takings expected to result in
even though these uses may serve otherwise legitimate public purposes.
Public use shall not include the direct or indirect transfer of any possessory
interest in property taken in an eminent domain proceeding from one private
party to another private party unless that transfer proceeds pursuant to a
In all eminent domain actions prior to the government's occupancy, a property
owner shall be given copies of all appraisals by the government and shall be
entitled, at the property owner's election, to a separate and distinct
determination by a superior court iury, as to whether the taking is actually for a
public use.
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In all eminent domain actions, fair market value shall be defined as the highest
(8) Except when taken to protect public health and safety, "damage" to pnvate
property includes government actions that result in substantial economic loss to
private property. Examples of substantial economic loss include but are not
limited to the down zoning of private property, the elimination of any access to
private property, and limitations on the use of private air space. "Government
action" shall mean any statute charter provision, ordinance, resolution, law, rule
or regulation.
(9) A property shall not be liable to the government for attorney fees or costs
in any eminent domain action.
For all provisions contained in this section government shall be defined as the
of eminent domain.
(c) Nothing in this section shall prohibit the California Public Utilities Commission from
reaulatinp, public utility rates.
Section 4. IMPLEMENTATION AND AMENDMENT
This section shall be self-executing. The Legislature may adopt laws to further
the purposes of this section and aid in its implementation. No amendment to this section
may be made except by a vote of the people pursuant to Article 11 or Article XVIII.
government intends to put the property, if such use results in a higher value for
the land taken.
In all eminent domain actions, just compensation shall be defined as that sum of
conditions provided those condemnations are limited to abatement of specific conditions
on specific parcels.
Section 5. SEVERABILITY
The provisions of this section are severable. If any provision of this section or its
application is held invalid, that finding shall not affect other provisions or applications
that can he given effect without the invalid provision or application.
Section 6. EFFECTIVE DATE
This section shall become effective on the day following the election pursuant to
section 10(a) of Article II.
The provisions of this section shall apply immediately to any eminent domain
proceeding by a public agency in which there has been no final adjudication.
Other than eminent domain powers, the provisions added to this section shall not
apply to any stat-ite, charter provision, ordinance, resolution, law, rule or regulation in
effect on the date of enactment that results in substantial economic loss to private
property. Any statute, charter provision, ordinance, resolution, law, rule or regulation in
effect on the date of enactment that is amended after the date of enactment shall continue
to be exempt from the provisions added to this section provided that the amendment both
serves to promote the original policy of the statute, charter provision, ordinance,
resolution, law, rule or regulation and does not significantly broaden the scope of
application of the statute, charter provision, ordinance, resolution, law, rule or regulation
being amended. The governmental entity making the amendment shall make a
declaration contemporaneously with enactment of the amendment that the amendment
promotes the original policy of the statute, charter provision, ordinance, resolution, law,
rule or regulation and does not significantly broaden its scope of application. The
question of whether an amendment significantly broadens the scope of application is
subject to judicial review.
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ATTACHMENT B
AMENDED IN ASSEMBLY JUNE 19, 2006
AMENDED IN SENATE MAY 9, 2006
AMENDED IN SENATE APRIL 18, 2006
AMENDED IN SENATE MARCH 28, 2006
AMENDED IN SENATE MARCH 21, 2006
AMENDED IN SENATE MARCH 14, 2006
AMENDED IN SENATE FEBRUARY 27, 2006
SENATE BILL No. 1206
Introduced by Senator Kehoe
(Coauthors: Senators Dunn and Machado)
January 26, 2006
An act to amend Sections 33030, 33031, 33320.1, 33333.6, 33352,
33367, 33378, 33445, 33485, 33486, 33500, and 33501 of, and to add
Sections 33501.1, 33501.2, 33501.3,-33501 and 33601.5 and
33501.7 to, the Health and Safety Code, relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 1206, as amended, Kehoe. Redevelopment.
(1) The Community Redevelopment Law authorizes the
establishment of redevelopment agencies in communities in order to
address the effects of blight in those communities and defines a
blighted area as one that is predominantly urbanized and characterized
by specified conditions.
This bill would revise the definition of "predominantly urbanized"
and revise the conditions that characterize a blighted area. The bill
would prohibit the inclusion of nonblighted parcels in a
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redevelopment project area for the purpose of obtaining property tax
revenue from the area without substantial justification for their
inclusion.
(2) Existing law specifies certain limitations that apply to every
redevelopment plan adopted on or before December 31, 1993.
This bill would speck that the time limit on the establishing of
loans, advances, and indebtedness shall not exceed 20 years from the
adoption of the redevelopment plan or January 1, 2009, whichever is
later, and that the time limit may be extended by amending the
redevelopment plan after the redevelopment agency finds, based on
substantial evidence, that significant blight remains within the project
and that the blight cannot be eliminated without the establishment of
additional debt.
(3) Existing law requires that every redevelopment plan submitted
by a redevelopment agency to the legislative body of the local agency
contain a report with specified information, including a description of
the physical and economic conditions that cause the project area to be
blighted.
This bill would require that the description contain specific,
quantifiable evidence that documents specified physical and economic
conditions in the project area.
(4) Existing law specifies the contents of the ordinance adopting a
redevelopment plan, including the findings and determinations of the
legislative body about the blighted area that is to be redeveloped.
This bill would state that the findings shall be based on clear and
convincing evidence, and would add an additional finding and
determination that the implementation of the redevelopment plan will
improve the physical and economic conditions of blight in the project
area.
(5) Existing law makes an ordinance that adopts, modifies, or
amends a redevelopment plan subject to referendum and requires the
referendum petitions circulated in cities and counties over 500,000
population be submitted to the clerk of the legislative body within 90
days of the adoption of the ordinance subject to referendum.
This bill would extend these , notwithstanding any other
provision of law, make this 90-day requirement applicable to all cities
and counties.
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(6) Existing law prohibits a redevelopment agency from using tax
increment funds for the construction or rehabilitation of a city hall or
county administration building.
This bill would include land acquisition, related site clearance, and
design costs in the prohibition against using tax increment funds for
the construction of a city hall or county administration building.
(7) Existing law authorizes a redevelopment agency to merge
project areas under its jurisdiction without regard to contiguity of the
areas.
This bill would require the legislative body of the redevelopment
agency that intends such a merger to find, based on substantial
evidence, that significant blight remains within one of the project
areas and that the blight cannot be eliminated without the merger.
(8) Existing law authorizes the bringing of a civil action to
determine the validity of proceedings taken by a legislative body
related to the establishment of a redevelopment agency and specified
actions taken by a redevelopment agency and makes the Department
of Finance an interested person in action brought with regard to the
validity of an ordinance adopting a redevelopment plan.
This bill would not permit the civil action to be commenced within
90 days from the date of the decision of the legislative body or
redevelopment agency and would also make the Attorney General an
interested person in a civil action brought to determine the validity of
these matters. The bill would authorize the Attorney General to
intervene as of right in these civil actions.
The bill would prohibit an action from being brought against a
redevelopment agency or legislative body unless the grounds for
noncompliance with the Community Redevelopment Law are
presented to the agency or legislative body orally or in writing before
the close of the required public hearing.
The bill would require any party filing a pleading or brief in an
action challenging the validity of a finding and determination that the
project area is blighted to serve a copy of the pleading or brief on the
Attorney General and would prohibit a court from granting relief to a
party unless proof is filed with the court that the party has complied
with this requirement.
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The bill would prohibit a redevelopment agency or legislative body
from permitting or requiring a property owner or real party in interest
to indemnify the agency or legislative body against these civil actions
as a condition of adopting or amending a redevelopment plan.
any bonded irid_ebtledn_-_~~ to be Fftid with tax inerement eventieS
blight emains within the tjeet atea and this blight eartno
eliminated _ thout the establishment of the indebtedness.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 33030 of the Health and Safety Code is
2 amended to read:
3 33030. (a) It is found and declared that there exist in many
4 communities blighted areas that constitute physical and economic
5 liabilities, requiring redevelopment in the interest of the health,
6 safety, and general welfare of the people of these communities
7 and of the state.
8 (b) A blighted area is one that contains both of the following:
9 (1) An area that is predominantly urbanized, as that term is
10 defined in Section 33320.1, and is an area in which the
11 combination of conditions set forth in Section 33031 is so
12 prevalent and so substantial that it causes a reduction of, or lack
13 of, proper utilization of the area to such an extent that it
14 constitutes a serious physical and economic burden on the
15 community that cannot reasonably be expected to be reversed or
16 alleviated by private enterprise or governmental action, or both,
17 without redevelopment.
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(2) An area that is characterized by one or more conditions set
forth in any paragraph of subdivision (a) of Section 33031 and
one or more conditions set forth in any paragraph of subdivision
(b) of Section 33031.
(c) A blighted area that contains the conditions described in
subdivision (b) may also be characterized by the existence of
inadequate public improvements or inadequate water or sewer
utilities.
SEC. 2. Section 33031 of the Health and Safety Code is
amended to read:
33031. (a) This subdivision describes physical conditions
that cause blight:
(1) Buildings in which it is unsafe or unhealthy for persons to
live or work. These conditions can be caused by serious building
code violations, serious dilapidation and deterioration caused by
long-term neglect, seriously defective design, construction that is
vulnerable to serious damage from seismic or geologic hazards,
and faulty or inadequate water or sewer utilities.
(2) Factors that prevent or substantially hinder the
economically viable use or capacity of buildings or lots. This
condition can be caused by buildings of substandard design or
lots of inadequate size, given present general plan and zoning
standards and present market conditions.
(3) Adjacent or nearby incompatible land uses that prevent the
economic development of those parcels or other portions of the
project area.
(4) The existence of subdivided lots that are in multiple
ownership and whose economic development has been impaired
by their irregular shapes and inadequate sizes, given present
general plan and zoning standards and present market conditions.
(b) This subdivision describes economic conditions that cause
blight:
(1) Depreciated or stagnant property values or impaired
investments, including properties containing hazardous wastes
that require the use of agency authority as specified in Article
12.5 (commencing with Section 33459).
(2) Abnormally high business vacancies, abnormally low lease
rates, or an abnormally high number of abandoned buildings.
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1 (3) An acute lack of necessary commercial facilities that are
2 normally found in neighborhoods, including grocery stores, drug
3 stores, and banks and other lending institutions.
4 (4) Serious residential overcrowding that has resulted in
5 significant public health or safety problems. As used in this
6 paragraph, "overcrowding" means exceeding the standard
7 referenced in Section 32 of Article 5 of Chapter 1 of Title 25 of
8 the California Code of Regulations.
9 (5) An excess of bars, liquor stores, or adult-oriented
10 businesses that has resulted in significant public health or safety
11 problems.
12 (6) A very high crime rate that constitutes a serious threat to
13 the public safety and welfare. As used in this paragraph, "crime"
14 means the crimes measured by either the California Crime Index
15 prepared by the Department of Justice, pursuant to Sections
16 13010 and 13012 of the Penal Code, or the Uniform Crime
17 Reporting Program operated by the Federal Bureau of
18 Investigation.
19 SEC. 3. Section 33320.1 of the Health and Safety Code is
20 amended to read:
21 33320.1. (a) "Project area" means, except as provided in
22 Section 33320.2, 33320.3, 33320.4, or 33492.3, a predominantly
23 urbanized area of a community that is a blighted area, the
24 redevelopment of which is necessary to effectuate the public
25 purposes declared in this part, and that is selected by the planning
26 commission pursuant to Section 33322.
27 (b) As used in this section, "predominantly urbanized" means
28 that not less than 80 percent of the land in the project area is
29 either of the following:
30 (1) Developed for urban uses.
31 (2) An integral part of one or more areas developed for urban
32 uses that are surrounded or substantially surrounded by parcels
33 that have been or are developed for urban uses. Parcels separated
34 by only an improved right-of-way shall be deemed adjacent for
35 the purpose of this subdivision. Parcels that are not blighted shall
36 not be included in the project area for the purpose of obtaining
37 the allocation of taxes from the area pursuant to Section 33670
38 without other substantial justification for their inclusion.
39 (c) For the purposes of this section, a parcel of property as
40 shown on the official maps of the county assessor is developed
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for urban uses if that parcel meets any of the following
conditions:
(1) Is presently developed for urban uses consistent with
present general plan and zoning standards.
(2) Is presently developed for urban uses as a legal,
nonconforming use.
(3) Had been developed for urban uses consistent with the then
applicable general plan and zoning standards.
(d) 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. 4. Section 33333.6 of the Health and Safety Code is
amended to read.-
33333.6. The limitations of this section shall apply to every
redevelopment plan adopted on or before December 31, 1993.
(a) (1) The time limit on the establishing of loans, advances,
and indebtedness adopted pursuant to paragraph (2) of
subdivision (a) of Section 33333.2 or paragraph (2) of
subdivision (a) of Section 33333.4, shall not exceed 20 years
from the adoption of the redevelopment plan or January 1, 2009,
whichever is later. This limit, however, shall not prevent
agencies from incurring debt to be paid from the Low and
Moderate Income Housing Fund or establishing more debt in
order to full the agency's housing obligations under Section
33413. This limit shall not prevent agencies from refinancing,
refunding, or restructuring indebtedness after the time limits if
the indebtedness is not increased and the time during which the
indebtedness is to be repaid does not exceed the date on which
the indebtedness would have been paid.
(2) The time limit established by this subdivision may be
extended, only by amendment of the redevelopment plan, after
the agency finds, based on substantial evidence that: (A)
significant blight remains within the project area, and (B) this
blight cannot be eliminated without the establishment of
additional debt. However, this amended time limitation may not
exceed 10 years from the time limit established pursuant to this
subdivision or the time limit on the effectiveness of the plan
established pursuant to subdivision (b), whichever is earlier.
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(b) The effectiveness of every redevelopment plan to which
this section applies shall terminate at a date that shall not exceed
40 years from the adoption of the redevelopment plan or January
1, 2009, whichever is later. After the time limit on the
effectiveness of the redevelopment plan, the agency shall have no
authority to act pursuant to the redevelopment plan except to pay
previously incurred indebtedness, to comply with Section
33333.8 and to enforce existing covenants, contracts, or other
obligations.
(c) Except as provided in subdivisions {0 and (g) (g) and (h),
a redevelopment agency may not pay indebtedness or receive
property taxes pursuant to Section 33670 after 10 years from the
termination of the effectiveness of the redevelopment plan
pursuant to subdivision (b).
(e)
(d) (1) If plans that had different dates of adoption were
merged on or before December 31, 1993, the time limitations
required by this section shall be counted individually for each
merged plan from the date of the adoption of each plan. If an
amendment to a redevelopment plan added territory to the project
area on or before December 31, 1993, the time limitations
required by this section shall commence, with respect to the
redevelopment plan, from the date of the adoption of the
redevelopment plan, and, with respect to the added territory,
from the date of the adoption of the amendment.
(2) If plans that had different dates of adoption are merged on
or after January 1, 1994, the time limitations required by this
section shall be counted individually for each merged plan from
the date of the adoption of each plan.
(d)
(e) (1) Unless a redevelopment plan adopted prior to January
1, 1994, contains all of the limitations required by this section
and each of these limitations does not exceed the applicable time
limits established by this section, the legislative body, acting by
ordinance on or before December 31, 1994, shall amend every
redevelopment plan adopted prior to January 1, 1994, either to
amend an existing time limit that exceeds the applicable time
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limit established by this section or to establish time limits that do
not exceed the provisions of subdivision-(b) (a), (b), or (c).
(2) The limitations established in the ordinance adopted
pursuant to this section shall apply to the redevelopment plan as
if the redevelopment plan had been amended to include those
limitations. However, in adopting the ordinance required by this
section, neither the legislative body nor the agency is required to
comply with Article 12 (commencing with Section 33450) or any
other provision of this part relating to the amendment of
redevelopment plans.
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(fl (1) If a redevelopment plan adopted prior to January 1,
1994, contains one or more limitations required by this section,
and the limitation does not exceed the applicable time limit
required by this section, this section shall not be construed to
require an amendment of this limitation.
(2) (A) A redevelopment plan adopted prior to January 1,
1994, that has a limitation shorter than the terms provided in this
section may be amended by a legislative body by adoption of an
ordinance on or after January 1, 1999, but on or before December
31, 1999, to extend the limitation, provided that the plan as so
amended does not exceed the terms provided in this section. In
adopting an ordinance pursuant to this subparagraph, neither the
legislative body nor the agency is required to comply with
Section 33354.6, Article 12 (commencing with Section 33450),
or any other provision of this part relating to the amendment of
redevelopment plans.
(B) On or after January 1, 2002, a redevelopment plan may be
amended by a legislative body by adoption of an ordinance to
eliminate the time limit on the establishment of loans, advances,
and indebtedness required by this section prior to January 1,
2002. In adopting an ordinance pursuant to this subparagraph,
neither the legislative body nor the agency is required to comply
with Section 33354.6, Article 12 (commencing with Section
33450), or any other provision of this part relating to the
amendment of redevelopment plans, except that the agency shall
make the payment to affected taxing entities required by Section
33607.7.
(C) When an agency is required to make a payment pursuant
to Section 33681.9, the legislative body may amend the
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redevelopment plan to extend the time limits required pursuant to
subdivisions (a) and (b) by one year by adoption of an ordinance.
In adopting an ordinance pursuant to this subparagraph, neither
the legislative body nor the agency is required to comply with
Section 33354.6 or Article 12 (commencing with Section 33450)
or any other provision of this part relating to the amendment of
redevelopment plans, including, but not limited to, the
requirement to make the payment to affected taxing entities
required by Section 33607.7.
(D) When an agency is required pursuant to Section 33681.12
to make a payment to the county auditor for deposit in the
county's Educational Revenue Augmentation Fund created
pursuant to Article 3 (commencing with Section 97) of Chapter 6
of Part 0.5 of Division 1 of the Revenue and Taxation Code, the
legislative body may amend the redevelopment plan to extend the
time limits required pursuant to subdivisions (a) and (b) by the
following:
(i) One year for each year in which a payment is made, if the
time limit for the effectiveness of the redevelopment plan
established pursuant to subdivision (a) is 10 years or less from
the last day of the fiscal year in which a payment is made.
(ii) One year for each year in which such a payment is made, if
both of the following apply:
(I) The time limit for the effectiveness of the redevelopment
plan established pursuant to subdivision (a) is more than 10 years
but less than 20 years from the last day of the fiscal year in which
a payment is made.
(II) The legislative body determines in the ordinance adopting
the amendment that, with respect to the project, the following:
(IIa) The agency is in compliance with the requirements of
Section 33334.2 or 33334.6, as applicable.
(IIb) The agency has adopted an implementation plan in
accordance with the requirements of Section 33490.
(IIc) The agency is in compliance with subdivisions (a) and (b)
of Section 33413, to the extent applicable.
(lid) The agency is not subject to sanctions pursuant to
subdivision (e) of Section 33334.12 for failure to expend,
encumber, or disburse an excess surplus.
(iii) This subparagraph shall not apply to any redevelopment
plan if the time limit for the effectiveness of the redevelopment
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1 plan established pursuant to subdivision (a) is more than 20 years
2 after the last day of the fiscal year in which such a payment is
3 made.
4 (3) (A) The legislative body by ordinance may adopt the
5 amendments provided for under this paragraph following a
6 public hearing. Notice of the public hearing shall be mailed to the
7 governing body of each affected taxing entity at least 30 days
8 prior to the public hearing and published in a newspaper of
9 general circulation in the community at least once, not less than
10 10 days prior to the date of the public hearing. The ordinance
11 shall contain a finding of the legislative body that funds used to
12 make a payment to the county's Educational Revenue
13 Augmentation Fund pursuant to Section 33681.12 would
14 otherwise have been used to pay the costs of projects and
15 activities necessary to carry out the goals and objectives of the
16 redevelopment plan. In adopting an ordinance pursuant to this
17 paragraph, neither the legislative body nor the agency is required
18 to comply with Section 33354.6, Article 12 (commencing with
19 Section 33450), or any other provision of this part relating to the
20 amendment of redevelopment plans.
21 (B) The time limit on the establishment of loans, advances,
22 and indebtedness shall be deemed suspended and of no force or
23 effect but only for the purpose of issuing bonds or other
24 indebtedness the proceeds of which are used to make the
25 payments required by Section 33681.12 if the following apply:
26 (i) The time limit on the establishment of loans, advances, and
27 indebtedness required by this section prior to January 1, 2002,
28 has expired and has not been eliminated pursuant to
29 subparagraph (B).
30 (ii) The agency is required to make a payment pursuant to
31 Section 33681.12.
32 (iii) The agency determines that in order to make the payment
33 required by Section 33681.12, it is necessary to issue bonds or
34 incur other indebtedness.
35 (iv) The proceeds of the bonds issued or indebtedness incurred
36 are used solely for the purpose of making the payments required
37 by Section 33681.12 and related costs.
38 The suspension of the time limit on the establishment of loans,
39 advances, and indebtedness pursuant to this subparagraph shall
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not require the agency to make the payment to affected taxing
entities required by Section 33607.7.
(4) (A) A time limit on the establishing of loans, advances,
and indebtedness to be paid with the proceeds of property taxes
received pursuant to Section 33670 to finance in whole or in part
the redevelopment project shall not prevent an agency from
incurring debt to be paid from the agency's Low and Moderate
Income Housing Fund or establishing more debt in order to fulfill
the agency's affordable housing obligations, as defined in
paragraph (1) of subdivision (a) of Section 33333.8.
(B) A redevelopment plan may be amended by a legislative
body to provide that there shall be no time limit on the
establishment of loans, advances, and indebtedness paid from the
agency's Low and Moderate Income Housing Fund or
establishing more debt in order to fulfill the agency's affordable
housing obligations, as defined in paragraph (1) of subdivision
(a) of Section 33333.8. In adopting such an ordinance, neither the
legislative body nor the agency is required to comply with
Section 33345.6, Article 12 (commencing with Section 33450),
or any other provision of this part relating to the amendment of
redevelopment plans, and the agency shall not make the payment
to affected taxing entities required by Section 33607.7.
(f)
(g) The limitations established in the ordinance adopted
pursuant to this section shall not be applied to limit the allocation
of taxes to an agency to the extent required to comply with
Section 33333.8. In the event of a conflict between these
limitations and the obligations under Section 33333.8, the
limitations established in the ordinance shall be suspended
pursuant to Section 33333.8.
(9)
(h) (1) This section does not effect the validity of any bond,
indebtedness, or other obligation, including any mitigation
agreement entered into pursuant to Section 33401, authorized by
the legislative body, or the agency pursuant to this part, prior to
January 1, 1994.
(2) This section does not affect the right of an agency to
receive property taxes, pursuant to Section 33670, to pay the
bond, indebtedness, or other obligation.
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(3) This section does not affect the right of an agency to
receive property taxes pursuant to Section 33670 to pay
refunding bonds issued to refinance, refund, or restructure
indebtedness authorized prior to January 1, 1994, if the last
maturity date of these refunding bonds is not later than the last
maturity date of the refunded indebtedness and the sum of the
total net interest cost to maturity on the refunding bonds plus the
principal amount of the refunding bonds is less than the sum of
the total net interest cost to maturity on the refunded
indebtedness plus the principal amount of the refunded
indebtedness.
(.h)
(i) A redevelopment agency shall not pay indebtedness or
receive property taxes pursuant to Section 33670, with respect to
a redevelopment plan adopted prior to January 1, 1994, after the
date identified in subdivision (b) or the date identified in the
redevelopment plan, whichever is earlier, except as provided in
paragraph (2) of subdivision (e), in subdivision (g), or in Section
33333.8.
(i) The Legislature finds and declares that the amendments
made to this section by the act that adds this subdivision are
intended to add limitations to the law on and after January 1,
1994, and are not intended to change or express legislative intent
with respect to the law prior to that date. It is not the intent of the
Legislature to affect the merits of any litigation regarding the
ability of a redevelopment agency to sell bonds for a term that
exceeds the limit of a redevelopment plan pursuant to law that
existed prior to January 1, 1994.
(k) If a redevelopment plan is amended to add territory, the
amendment shall contain the time limits required by Section
33333.2.
SEG. 4.
SEC. S. Section 33352 of the Health and Safety Code is
amended to read:
33352. Every redevelopment plan submitted by the agency to
the legislative body shall be accompanied by a report containing
all of the following:
(a) The reasons for the selection of the project area, a
description of the specific projects then proposed by the agency,
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a description of how these projects will improve or alleviate the
conditions described in subdivision (b).
(b) A description of the physical and economic conditions
specified in Section 33031 that exist in the area that cause the
project area to be blighted. The description shall include a list of
the physical and economic conditions described in Section 33031
that exist within the project area and a map showing where in the
project the conditions exist. The description shall contain
specific, quantifiable evidence that documents each of the
following:
(1) The physical and economic conditions specified in Section
33301 33031.
(2) That each of the described physical and economic
conditions is so prevalent and substantial that collectively they
seriously harm the entire project area.
(3) That each of the described physical and economic
conditions is significantly worse than the physical and economic
conditions that exist in the rest of the community, outside the
project area.
(4) That collectively, the physical and economic conditions
constitute dire inner-city slum conditions or equivalently
degraded inner-city business conditions.
(c) An implementation plan that describes specific goals and
objectives of the agency, specific projects then proposed by the
agency, including a program of actions and expenditures
proposed to be made within the first five years of the plan, and a
description of how these projects will improve or alleviate the
conditions described in Section 33031.
(d) An explanation of why the elimination of blight and the
redevelopment of the project area cannot reasonably be expected
to be accomplished by private enterprise acting alone or by the
legislative body's use of financing alternatives other than tax
increment financing.
(e) The proposed method of financing the redevelopment of
the project area in sufficient detail so that the legislative body
may determine the economic feasibility of the plan.
(f) A method or plan for the relocation of families and persons
to be temporarily or permanently displaced from housing
facilities in the project area, which method or plan shall include
the provision required by Section 33411.1 that no persons or
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families of low and moderate income shall be displaced unless
and until there is a suitable housing unit available and ready for
occupancy by the displaced person or family at rents comparable
to those at the time of their displacement.
(g) An analysis of the preliminary plan.
(h) The report and recommendations of the planning
commission.
(i) The summary referred to in Section 33387.
0) The report required by Section 65402 of the Government
Code.
(k) The report required by Section 21151 of the Public
Resources Code.
(n The report of the county fiscal officer as required by
Section 33328.
(m) If the project area contains low- or moderate-income
housing, a neighborhood impact report which describes in detail
the impact of the project upon the residents of the project area
and the surrounding areas, in tenns of relocation, traffic
circulation, environmental quality, availability of community
facilities and services, effect on school population and quality of
education, property assessments and taxes, and other matters
affecting the physical and social quality of the neighborhood.
The neighborhood impact report shall also include all of the
following:
(1) The number of dwelling units housing persons and families
of low or moderate income expected to be destroyed or removed
from the low- and moderate-income housing market as part of a
redevelopment project.
(2) The number of persons and families of low or moderate
income expected to be displaced by the project.
(3) The general location of housing to be rehabilitated,
developed, or constructed pursuant to Section 33413.
(4) The number of dwelling units housing persons and families
of low or moderate income planned for construction or
rehabilitation, other than replacement housing.
(5) The projected means of financing the proposed dwelling
units for housing persons and families of low and moderate
income planned for construction or rehabilitation.
(6) A projected timetable for meeting the plan's relocation,
rehabilitation, and replacement housing objectives.
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(n) (1) An analysis by the agency of the report submitted by
the county as required by Section 33328, which shall include a
summary of the consultation of the agency, or attempts to consult
by the agency, with each of the affected taxing entities as
required by Section 33328. If any of the affected taxing entities
have expressed written objections or concerns with the proposed
project area as part of these consultations, the agency shall
include a response to these concerns, additional information, if
any, and, at the discretion of the agency, proposed or adopted
mitigation measures.
(2) As used in this subdivision:
(A) "Mitigation measures" may include the amendment of the
redevelopment plan with respect to the size or location of the
project area, time duration, total amount of tax increment to be
received by the agency, or the proposed use, size, density, or
location of development to be assisted by the agency.
(B) "Mitigation measures" shall not include obligations to
make payments to any affected taxing entity.
SEC-. 5
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 clear and convincing 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.
(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
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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.
(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
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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.
(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.
SE& 6.
SEC. 7. Section 33378 of the Health and Safety Code is
amended to read:
33378. (a) With respect to any ordinance that is subject to
referendum pursuant to Sections 33365 and 33450, the language
of the statement of the ballot measure shall set forth with clarity
and in language understandable to the average person that a
"Yes" vote is a vote in favor of adoption or amendment of the
redevelopment plan and a "No" vote is a vote against the
adoption or amendment of the redevelopment plan.
(b) (1) Notwithstanding any other provision of law, including
the charter of any city or city and county, referendum petitions
circulated in-a+1 cities or counties over 500,000 in population
shall bear valid signatures numbering not less than 10 percent of
the total votes cast within the city or county for Governor at the
last gubernatorial-eleetion election. and shall be .8tibnritted to
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(2) Notwithstanding any other provision of law, including the
charter of any city or city and county, or Section 9242 of the
Elections Code, the referendum petitions of all cities and
counties shall be submitted to the clerk of the legislative body
within 90 days of the adoption of an ordinance subject to
referendum under this act.
(c) With respect to any ordinance that is subject to referendum
pursuant to Sections 33365 and 33450 and either provides for
tax-increment financing pursuant to Section 33670 or expands a
project area that is subject to tax-increment financing, the
referendum measure shall include, in the ballot pamphlet, an
analysis by the county auditor-controller and, at the option of the
legislative body, a separate analysis by the agency, of the
redevelopment plan or amendment that will include both of the
following:
(1) An estimate of the potential impact on property taxes per
each ten thousand dollars ($10,000) of assessed valuation for
taxpayers located in the city or county, as the case may be,
outside the redevelopment project area during the life of the
redevelopment project.
(2) An estimate of what would happen to the project area in
the absence of the redevelopment project or in the absence of the
proposed amendment to the plan.
SEC. 7.
SEC. 8. Section 33445 of the Health and Safety Code is
amended to read:
33445. (a) Notwithstanding Section 33440, an agency may,
with the consent of the legislative body, pay all or a part of the
value of the land for and the cost of the installation and
construction of any building, facility, structure, or other
improvement that is publicly owned either within or without the
project area, if the legislative body determines all of the
following:
(1) That the buildings, facilities, structures, or other
improvements are of benefit to the project area or the immediate
neighborhood in which the project is located, regardless of
whether the improvement is within another project area, or in the
case of a project area in which substantially all of the land is
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publicly owned that the improvement is of benefit to an adjacent
project area of the agency.
(2) That no other reasonable means of financing the buildings,
facilities, structures, or other improvements, are available to the
community.
(3) That the payment of funds for the acquisition of land or the
cost of buildings, facilities, structures, or other improvements
will assist in the elimination of one or more blighting conditions
inside the project area or provide housing for low- or
moderate-income persons, and is consistent with the
implementation plan adopted pursuant to Section 33490.
(b) The determinations by the agency and the local legislative
body pursuant to subdivision (a) shall be final and conclusive.
For redevelopment plans, and amendments to those plans which
add territory to a project, adopted after October 1, 1976,
acquisition of property and installation or construction of each
facility shall be provided for in the redevelopment plan. A
redevelopment agency shall not pay for the normal maintenance
or operations of buildings, facilities, structures, or other
improvements that are publicly owned. Normal maintenance or
operations do not include the construction, expansion, addition
to, or reconstruction of, buildings, facilities, structures, or other
improvements that are publicly owned otherwise undertaken
pursuant to this section.
(c) When the value of the land or the cost of the installation
and construction of the building, facility, structure, or other
improvement, or both, has been, or will be, paid or provided for
initially by the community or other public corporation, the
agency may enter into a contract with the community or other
public corporation under which it agrees to reimburse the
community or other public corporation for all or part of the value
of the land or all or part of the cost of the building, facility,
structure, or other improvement, or both, by periodic payments
over a period of years.
(d) The obligation of the agency under the contract shall
constitute an indebtedness of the agency for the purpose of
carrying out the redevelopment project for the project area,
which indebtedness may be made payable out of taxes levied in
the project area and allocated to the agency under subdivision (b)
of Section 33670 or out of any other available funds.
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(e) In a case where the land has been or will be acquired by, or
the cost of the installation and construction of the building,
facility, structure, or other improvement has been paid by, a
parking authority, joint powers entity, or other public corporation
to provide a building, facility, structure, or other improvement
that has been or will be leased to the community, the contract
may be made with, and the reimbursement may be made payable
to, the community.
(f) With respect to the financing, acquisition, or construction
of a transportation, collection, and distribution system and related
peripheral parking facilities, in a county with a population of
4,000,000 persons or more, the agency shall, in order to exercise
the powers granted by this section, enter into an agreement with
the rapid transit district that includes the county, or a portion
thereof, in which agreement the rapid transit district shall be
given all of the following responsibilities:
(1) To participate with the other parties to the agreement to
design, determine the location and extent of the necessary
rights-of-way for, and construct, the transportation, collection,
and distribution systems and related peripheral parking structures
and facilities.
(2) To operate and maintain the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities in accordance with the rapid transit district's
outstanding agreements and the agreement required by this
paragraph.
(g) (1) Notwithstanding any other authority granted in this
section, an agency shall not pay for, either directly or indirectly,
with tax increment funds the construction, including land
acquisition, related site clearance, and design costs, or
rehabilitation of a building that is, or that will be used as, a city
hall or county administration building.
(2) This subdivision shall not preclude an agency from making
payments to construct, rehabilitate, or replace a city hall if an
agency does any of the following:
(A) Allocates tax increment funds for this purpose during the
1988-89 fiscal year and each fiscal year thereafter in order to
comply with federal and state seismic safety and accessibility
standards.
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(B) Uses tax increment funds for the purpose of rehabilitating
or replacing a city hall that was seriously damaged during an
earthquake that was declared by the President of the United
States to be a natural disaster.
(C) Uses the proceeds of bonds, notes, certificates of
participation, or other indebtedness that was issued prior to
January 1, 1994, for the purpose of constructing or rehabilitating
a city hall, as evidenced by documents approved at the time of
the issuance of the indebtedness.
SEe. 8:
SEC. 9. Section 33485 of the Health and Safety Code is
amended to read:
33485. The Legislature finds and declares that the provisions
of this part, which require that taxes allocated pursuant to Section
16 of Article XVI of the California Constitution and Section
33670 be applied to the project area in which those taxes are
generated, are designed to assure (1) that project areas are
terminated when the redevelopment of those areas has been
completed and (2) that the increased revenues that result from
redevelopment accrue to the benefit of affected taxing
jurisdictions at the completion of redevelopment activities in a
project area. Mergers of project areas are desirable as a matter of
public policy if they result in substantial benefit to the public and
if they contribute to the revitalization of blighted areas through
the increased economic vitality of those areas and through
increased and improved housing opportunities in or near such
areas. The Legislature further finds and declares that it is
necessary to enact a statute that sets out uniform statewide
standards for merger of project areas to assure that those mergers
serve a vital public purpose.
S£&9.
SEC. 10. Section 33486 of the Health and Safety Code is
amended to read:
33486. (a) For the purpose of allocating taxes pursuant to
Section 33670 and subject to the provisions of this article,
redevelopment project areas under the jurisdiction of a
redevelopment agency for which redevelopment plans have been
adopted pursuant to Article 5 (commencing with Section 33360),
may be merged, without regard to contiguity of the areas, by the
amendment of each affected redevelopment plan as provided in
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1 Article 12 (commencing with Section 33450). Before adopting
2 the ordinance amending each affected redevelopment plan, the
3 legislative body shall find, based on substantial evidence, that
4 both of the following conditions exist:
5 (1) Significant blight remains within one of the project areas.
6 (2) This blight cannot be eliminated without merging the
7 project areas and the receipt of property taxes.
8 (b) (1) Except as provided in paragraph (2), taxes attributable
9 to each project area merged pursuant to this section that are
10 allocated to the redevelopment agency pursuant to Section 33670
11 may be allocated to the entire merged project area for the purpose
12 of paying the principal of, and interest on, indebtedness incurred
13 by the redevelopment agency to finance or refinance, in whole or
14 in part, the merged redevelopment project.
15 (2) If the redevelopment agency has, prior to merger of
16 redevelopment project areas, incurred any indebtedness on
17 account of a constituent project area so merged, taxes attributable
18 to that area that are allocated to the agency pursuant to Section
19 33670 shall be first used to comply with the terms of any bond
20 resolution or other agreement pledging the taxes from the
21 constituent project area.
22 (c) After the merger of redevelopment projects pursuant to
23 subdivision (a), the clerk of the legislative body shall transmit a
24 copy of the ordinance amending the plans for projects to be
25 merged to the governing body of each of the taxing agencies that
26 receives property taxes from or levies property taxes upon any
27 property in the project.
28 SEE- 10.
29 SEC. 11. Section 33500 of the Health and Safety Code is
30 amended to read:
31 33500. (a) Notwithstanding any other provision of law,
32 including Section 33501, an action may be brought to review the
33 validity of the adoption or amendment of a redevelopment plan at
34 any time within 90 days after the date of the adoption of the
35 ordinance adopting or amending the plan.
36 (b) Notwithstanding any other provision of law, including
37 Section 33501, an action may be brought to review the validity of
38 any findings or determinations by the agency or the legislative
39 body at any time within 90 days after the date on which the
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agency or the legislative body made those findings or
determinations.
SEG. i i.
SEC. 12. Section 33501 of the Health and Safety Code is
amended to read:
33501. (a) An action may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code
of Civil Procedure to determine the validity of bonds and the
redevelopment plan to be financed or refinanced, in whole or in
part, by the bonds, or to determine the validity of a
redevelopment plan not financed by bonds, including without
limiting the generality of the foregoing, the legality and validity
of all proceedings theretofore taken for or in any way connected
with the establishment of the agency, its authority to transact
business and exercise its powers, the designation of the survey
area, the selection of the project area, the formulation of the
preliminary plan, the validity of the finding and determination
that the project area is predominantly urbanized, and the validity
of the adoption of the redevelopment plan, and also including the
legality and validity of all proceedings theretofore taken and (as
provided in the bond resolution) proposed to be taken for the
authorization, issuance, sale, and delivery of the bonds, and for
the payment of the principal thereof and interest thereon.
(b) Notwithstanding subdivision (a), an action to determine the
validity of a redevelopment plan may be brought within 90 days
after the date of the adoption of the ordinance adopting or
amending the plan.
(c) For the purposes of protecting the interests of the state, the
Attorney General and the Department of Finance are interested
persons pursuant to Section 863 of the Code of Civil Procedure
in any action brought with respect to the validity of an ordinance
adopting or amending a redevelopment plan pursuant to this
section.
(d) For purposes of contesting the inclusion in a project area of
lands that are enforceably restricted, as that term is defined in
Sections 422 and 422.5 of the Revenue and Taxation Code, or
lands that are in agricultural use, as defined in subdivision (b) of
Section 51201 of the Government Code, the Department of
Conservation, the county agricultural commissioner, the county
farm bureau, the California Farm Bureau Federation, and
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agricultural entities and general farm organizations that provide a
written request for notice, are interested persons pursuant to
Section 863 of the Code of Civil Procedure, in any action
brought with respect to the validity of an ordinance adopting or
amending a redevelopment plan pursuant to this section.
SE& 12.
SEC. 13. Section 33501.1 is added to the Health and Safety
Code, to read:
33501.1. Notwithstanding Chapter 9 (commencing with
Section 860) of Title 10 of the Code of Civil Procedure, the
Attorney General may, pursuant to subdivision (b) of Section 387
of the Code of Civil Procedure, intervene as of right in an action
specified in Section 33501 challenging the validity of any finding
and determination that a project area is blighted. The Attorney
General may seek permissive intervention pursuant to
subdivision (a) of Section 387 of the Code of Civil Procedure in
any other action brought pursuant to Section 33501.
SEES. 13.
SEC. 14. Section 33501.2 is added to the Health and Safety
Code, to read:
33501.2. (a) An action shall not be brought pursuant to
Section 33501 unless the alleged grounds for noncompliance
with this division were presented to the agency or the legislative
body orally or in writing by any person before the close of the
public hearing required by this division.
(b) A person shall not bring an action pursuant to Section
33501 unless a person objected to the decision of the agency or
the legislative body before the close of the public hearing
required by this division.
(c) This section does not preclude any organization formed
after the approval of a project from bringing an action pursuant to
Section 33501 if a member of that organization has complied
with subdivision (b).
(d) This section does not apply to the Attorney General.
(e) This section does not apply to any alleged grounds for
noncompliance with this division for which there was no public
hearing or other opportunity for members of the public to raise
those objections orally or in writing before the decision by the
agency or the legislative body, or if the agency or the legislative
body failed to give the notice required by law.
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SEC. 15. Section 33501.3 is added to the Health and Safety
Code, to read:
33501.3. If an action specified in Section 33501 challenging
the validity of any finding and determination that the project area
is blighted is filed in any court, each party filing any pleading or
brief with the court in that proceeding shall serve, within three
days of the filing with the court, a copy of that pleading or brief
on the Attorney General. Relief, temporary or permanent, shall
not be granted to a party unless that party files proof with the
court showing that it has complied with this section. A court
may, by court order, allow a party to serve the Attorney General
after the three-day period, but only upon showing of good cause
for not complying with the three-day notice requirement, and that
late service will not prejudice the Attorney General's ability to
review, and possibly participate in, the action.
SEG. 15.
SEC. 16. Section 33501.7 is added to the Health and Safety
Code, to read:
33501.7. Notwithstanding any other provision of law, an
agency or legislative body shall not permit or require a property
owner or a real party in interest to indemnify the agency or the
legislative body against actions brought pursuant to Section
33501 to challenge the adoption or amendment of a
redevelopment plan, as a condition of adopting or amending a
redevelopment plan.
SEE3. 16. Seetion 33601.5 is added to the HeaM and Safe
Code, to iead.
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SEC. 17. It is the intent of the Legislature by amending
Section 33501 of the Health and Safety Code in Section44 12 of
this act to determine that the Attorney General and the
Department of Finance are interested persons pursuant to Section
863 of the Code of Civil Procedure in actions specified in
subdivision (c) of Section 33501 of the Health and Safety Code.
It is not the intent of the Legislature to preclude a court from
exercising its discretion to find that the Attorney General or the
Department of Finance are interested persons in other actions
brought pursuant to Section 33501 of the Health and Safety
Code. It is the intent of the Legislature that no court should
consider, in any manner, the fact that the Legislature did not
determine that the Attorney General and the Department of
Finance are interested persons in other actions brought pursuant
to Section 33501 of the Health and Safety Code.
SEC. 18. In enacting Section-+z 13 of this act to add Section
33501.1 to the Health and Safety Code, it is the intent of the
Legislature to create for the Attorney General an exception to the
ruling in Green v. Community Redevelopment Agency (1979) 96
Cal.App.3d 491.
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