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CC - Item III.E - Amending Part 6 Of The Redevelopment Plan
TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGE DATE: JANUARY 8, 2002 RE: ORDINANCE NO. 822 — AMENDING PART 6 OF THE REDEVELOPMENT PLAN FOR PROJECT AREA NO. 1 BY ELIMINATING THE RESTRICTION ON THE ABILITY OF THE AGENCY TO INCUR DEBT IN PROJECT AREA NO. 1 Several years ago amendments to the Redevelopment Law required that agencies amend their pre -1993 plans to establish a time limit on their ability to incur debt. In response the City Council adopted Ordinance No. 752 that established a January 1, 2004 time limit on the establishment of loans, advances and indebtedness. Recent legislation ( 211 signed into law by the Governor, now allows agencies to eliminate that deadline for projects adopted prior to 1993. Ordinance No. 822 eliminates the deadline on incurring indebtedness. The limitations on redevelopment plan effectiveness and receipt of tax increment, also established by Ordinance 752, will remain in effect: June 27, 2012 and June 27, 2022, respectively. The deadline for incurring indebtedness for Project Area No. 2, which was adopted after 1993, is not eligible for elimination under this new legislation. Attached is a copy of SB 211 that empowers the City Council to eliminate this deadline 1 restriction for the Council's review. RECOMMENDATION It is recommended that the City Council waive further reading and introduce Ordinance No. 822 eliminating the time limit of the Rosemead Redevelopment Agency to incur debt, make loans and advances for Project Area No. 1. COUNCIL JAN 0 s 2002 a ITEM No. 1_,1L . E ORDINANCE NO. 822 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD AMENDING PART 6 OF THE REDEVELOPMENT PLAN FOR PROJECT AREA NUMBER I IN ACCORDANCE WITH SECTION 33333.6(e)(2) OF THE COMMUNITY REDEVELOPMENT LAW THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS: Section 1 . The City Council finds, determines and declares that this Ordinance is enacted pursuant to the authority of Health and Safety Code section 33333.6(e)(2) for the purpose of amending the Redevelopment Plan for Project Area 1, as enacted by Ordinance No. 340 on June 27, 1972, and subsequently amended, by eliminating therefrom the Redevelopment Plan's January 1, 2004 time limit on the establishment of loans, advances, and indebtedness. Section 2 . The Redevelopment Plan is hereby amended by deleting the provisions in Part 6, entitled "FINANCING LIMITATIONS AND DURATION OF REDEVELOPMENT PLAN'S EFFECTIVENESS" that were added by Ordinance No. 752 adopted December 20, 1994, and replacing said provisions with the following: DURATION OF REDEVELOPMENT PLAN'S EFFECTIVENESS Notwithstanding any provisions of this Plan to the contrary, consistent with section 33333.6 of the California Community Redevelopment Law, the following limitations are imposed on this Plan: This Plan, including the land use and development control provisions, shall be effective until June 27, 2012. After June 27, 2012, the Agency shall have no authority to act pursuant to this Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts or other obligations, provided, however, that this prohibition shall not limit actions designed to eliminate housing program project deficits or to implement a replacement housing program, as more particularly authorized by section 33333.6(g) of the Community Redevelopment Law. The Agency shall not pay indebtedness or receive property taxes pursuant to section 33670 after June 27, 2022, the date that is ten years from the termination of the effectiveness of this Plan, provided, however, that this prohibition shall not limit allocation of taxes for the purpose of eliminating housing program project deficits or implementing a replacement housing program, as more particularly authorized by section 33333.6(g) of the Community Redevelopment Law, nor shall it limit allocation of taxes to pay indebtedness incurred prior to January 1, 1994, including the indebtedness incurred by Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 1993A and Redevelopment Project Area No. 1 Taxable Tax Allocation Refunding Bonds, Series 1993B." Section 3 . The City Clerk shall certify to the adoption of this Ordinance and cause the same to be processed in accordance with state law. PASSED, APPROVED and ADOPTED this day of , 2002. Mayor, City of Rosemead ATTEST: City C tk SB 211 Senate Bill -Status CURRENT BILL STATUS MEASURE : S.B. No. 211 AUTHOR(S) Torlakson (Coauthor: Senator Machado). TOPIC Redevelopment: indebtedness. +LAST AMENDED DATE 09/12/2001 TYPE OF BILL : Inactive Non - Urgency Non - Appropriations Majority Vote Required Non - State - Mandated Local Program Fiscal Non -Tax Levy LAST HIST. ACT. DATE: 10/11/2001 LAST HIST. ACTION Chaptered by Secretary of State. Chapter 741, Statutes of 2001. TITLE An act to amend Sections 33140, 33141, 33333.2, 33333.4, 33333.6, 33333.7, 33490, 33492, 33607.7, and 50093 of, to amend, repeal, and add Section 33413 of, and to add Sections 33333.8, 33333.10, 33333.11, 33333.13, and 50106 to, the Health and Safety Code, relating to redevelopment. Page 1 of 1 file: / /C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Status.htm 1/3/2002 SB 211 Senate Bill -History Page I of 2 COMPLETE BILL HISTORY BILL NUMBER : S.B. No. 211 AUTHOR Torlakson TOPIC Redevelopment: indebtedness. TYPE OF BILL : BILL HISTORY 2001 Inactive Non - Urgency Non - Appropriations Majority Vote Required Non - State - Mandated Local Program Fiscal Non -Tax Levy Oct. 11 Chaptered by Secretary of State. Chapter 741, Statutes of 2001. Oct. 10 Approved by Governor. Sept. 24 Enrolled. To Governor at 3 p.m. Sept. 14 In Senate. Senate concurs in Assembly amendments. (Ayes 24. Noes 11. Page 3004.) To enrollment. Sept. 13 Read third time. Passed. (Ayes 53. Noes 24. Page 3929.) To Senate. Sept. 12 Read third time. Amended. To third reading. (Corrected September 13. ) Sept. 10 Read third time. Amended. To third reading. Sept. 6 From committee: Do pass. (Ayes 15. Noes 5.) Read second time. To third reading. Sept. 5 From committee with author's amendments. Read second time. Amended. Re- referred to committee. Aug. 30 Joint Rule 61(a) (10) & (11) suspended. Aug. 29 Placed on APPR. suspense file. Aug. 27 From committee with author's amendments. Read second time. Amended. Re- referred to committee. (Corrected August 29. ) Aug. 23 From committee: Do pass, but first be re- referred to Com. on APPR. (Ayes 8. Noes 1.) Re- referred to Com. on APPR. Aug. 20 From committee with author's amendments. Read second time. Amended. Re- referred to committee. July 12 Joint Rule 61(a)(9) suspended. July 9 From committee with author's amendments. Read second time. Amended. Re- referred to committee. July 3 Set, first hearing. Hearing canceled at the request of author. June 25 To Com. on H. & C.D. June 5 In Assembly. Read first time. Held at Desk. June 5 Read third time. Passed. (Ayes 25. Noes 12. Page 1431.) To Assembly. June 4 From committee: Do pass as amended. (Ayes 9. Noes 2. Pace 1385.) Read second time. Amended. To third reading. May 25 Set for hearing May 31. May 21 Placed on APPR. suspense file. May 10 Set for hearing May 21. May 3 From committee: Do pass, but first be re- referred to Com. on APPR. (Ayes 4. Noes 2. Page 931.) Re- referred to Com. on APPR. Apr. 30 From committee with author's amendments. Read second time. Amended. Re- referred to committee. Apr. 5 Set for hearing May 2. Feb. 22 To Com. on L.GOV. Feb. 14 From print. May be acted upon on or after March 16. Feb. 13 Introduced. Read first time. To Com. on RLS. for assignment. To print. file: / /C:\ DATA \legislation \Cal_SBills\200 \SB 211 Senate Bill - History.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED BILL NUMBER: SB 211 CHAPTERED BILL TEXT CHAPTER 741 FILED WITH SECRETARY OF STATE OCTOBER 11, 2001 APPROVED BY GOVERNOR OCTOBER 10, 2001 PASSED THE SENATE SEPTEMBER 14, 2001 PASSED THE ASSEMBLY SEPTEMBER 13, 2001 AMENDED IN ASSEMBLY SEPTEMBER 12, 2001 AMENDED IN ASSEMBLY SEPTEMBER 10, 2001 AMENDED IN ASSEMBLY SEPTEMBER 5, 2001 AMENDED IN ASSEMBLY AUGUST 27, 2001 AMENDED IN ASSEMBLY AUGUST 20, 2001 AMENDED IN ASSEMBLY JULY 9, 2001 AMENDED IN SENATE JUNE 4, 2001 AMENDED IN SENATE APRIL 30, 2001 INTRODUCED BY Senator Torlakson (Coauthor: Senator Machado) FEBRUARY 13. 2001 An act to amend Sections 33140, 33141, 33333.2, 33333.4, 33333.6, 33333.7, 33490, 33492.13, 33607.7, and 50093 of, to amend„ repeal, and add Section 33413 of, and to add Sections 33333.8, 33333.10, 33333.11, 33333.13, and 50106 to, the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST SB 211, Torlakson. Redevelopment: indebtedness. The existing Community Redevelopment Law authorizes the legislative body of a community to adopt an ordinance declaring that there is no further need for a redevelopment agency under prescribed conditions. It also prohibits a redevelopment agency from acting pursuant to a redevelopment plan after a specified time limit on the effectiveness of the plan, except to pay previously incurred indebtedness. - This bill would prohibit the adoption of an ordinance declaring that there is no further need for an agency if the agency has excess surplus funds or has not completed specified obligations. It would authorize a redevelopment agency that adopted a redevelopment plan on or before December 31, 1993, to amend that plan in accordance with specified procedures to extend its effectiveness to pay indebtedness and receive tax increment revenues with respect to the plan for not more than 10 years if specified requirements are met, including the issuance of a letter by the Department of Housing and Community. Development confirming that the agency has not accumulated an excess surplus in its Low and Moderate Income Housing Fund. The bill would authorize an affected taxing entity, the Department of Finance, or the Department of Housing and Community Development to request the Attorney General to participate in the amendment process. It also would authorize the Attorney General to bring a civil action to determine the validity of an adopted amendment. This bill would, on or after January 1, 2002, allow those redevelopment plans to be amended by adoption of an ordinance to eliminate the time limit on the establishment of loans, advances, and indebtedness required prior to January 1, 2002, without being required to comply with any other provision of law relating to the amendment of redevelopment plans. Page 1 of 27 file://C:\DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED This bill, among other things, would prescribe additional requirements that a redevelopment agency would have to meet prior to the time limit on the effectiveness -of a redevelopment plan, including requiring a percentage of new and substantially rehabilitated dwelling units to be available at affordable housing cost to persons and families of low or moderate income prior to the time limit on the effectiveness of the plan, as specified. The bill would prohibit the Redevelopment Agency of the City of Oakland from receiving specified property tax revenue upon the extension of a specified plan amendment. The bill would incorporate additional changes in Section 33413 of the Health and Safety Code proposed by AB 637, to be operative if AB 637 and this bill are both enacted and become effective on or before January 1, 2002, and this bill is enacted last. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 33140 of the Health and Safety Code is amended to read: 33140. If an agency has not redeveloped or acquired land for, or commenced the redevelopment of, a project, or entered into contracts for redevelopment within two years after the adoption of an ordinance pursuant to Section 33101, or, in the case of an agency authorized to transact business and exercise powers by resolution adopted pursuant to the provisions of Section 33101 that were in effect prior to the adoption of that resolution, the legislative body may, by ordinance, declare that there is no further need for the agency. A legislative body shall not adopt an ordinance declaring that there is no further need for the agency if, in one or more project areas, the agency has not complied with subdivision (a) of Section 33333.8. Upon the adoption of the ordinance, the offices of the agency members are vacated and the capacity of the agency to transact business or exercise any powers is suspended until the legislative body adopts an ordinance declaring the need for the agency to function. SEC. 2. Section 33141 of the Health and Safety Code is amended to read: 33141. Upon the motion of the legislative body or upon recommendation of the agency, the legislative body of the community may, by ordinance, order the deactivation of an agency by declaring that there is no need for an agency to function in the community, if the agency has no outstanding bonded indebtedness, no other unpaid loans, indebtedness, or advances, and no legally binding contractual obligations with persons or entities other than the community, unless the community assumes the bonded indebtedness, unpaid loans, indebtedness, and advances, and legally binding contractual obligations. A legislative body shall not adopt an ordinance declaring that there is no need for the agency, if in one or more project areas, the agency has not complied with subdivision (a) of Section 33333.8. An ordinance of a legislative body declaring there is no need for an agency to function in the community shall be subject to referendum as prescribed by law for the ordinances of the legislative body. SEC. 3. Section 33333.2 of the Health and Safety Code is amended to read: 33333.2. (a) A redevelopment plan containing the provisions set forth in Section 33670 shall contain all of the following limitations. A redevelopment plan that does not contain the provisions set forth in Section 33670 shall contain the limitations in paragraph (4): (1) (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 Page 2 of 27 file: //C:\ DATA \Iegislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED redevelopment project, which may not exceed 20 years from the adoption of the redevelopment plan, except by amendment of the redevelopment plan as authorized by subparagraph (B). 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 fulfill the agency's housing obligations . under subdivision (a) of Section 33333.8. The loans, advances, or indebtedness may be repaid over a period of time longer than this time limit as provided in this section. No loans, advances, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the agency beyond this time limitation. This limit shall not prevent agencies from refinancing, refunding, or restructuring indebtedness after the time limit if the indebtedness is not increased and the time during which the indebtedness is to be repaid is not extended beyond the time limit to repay indebtedness required by this section. (B) The time limitation established by subparagraph (A) may be extended only by amendment of the redevelopment plan after the agency finds, based on substantial evidence, that (i) significant blight remains within the project area; and (ii) this blight cannot be� eliminated without the establishment of additional debt. However, this amended time limitation may not exceed 30 years from the effective date of the ordinance adopting the redevelopment plan, except as necessary to comply with subdivision (a) of Section 33333.8. (2) A time limit, not to exceed 30 years from the adoption of the redevelopment plan, on the effectiveness of the redevelopment plan. 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 and to enforce existing covenants or contracts, unless the agency has not completed its housing obligations pursuant to subdivision (a) of Section 33333.8, in which case the agency shall retain its authority to implement requirements under subdivision (a) of Section 33333.8, including its ability to incur and pay indebtedness for this purpose, and shall use this authority to complete these housing obligations as soon as is reasonably possible. (3) A time limit, not to exceed 45 years from the adoption of the redevelopment plan, to repay indebtedness with the proceeds of property taxes received pursuant to Section 33670. After the time limit established pursuant to this paragraph, an agency may not receive property taxes pursuant to Section 33670, except as necessary to comply with subdivision (a) of Section 33333.8. (4) A time limit, not to exceed 12 years from the adoption of the redevelopment plan, for commencement of eminent domain proceedings to acquire property within the project area. This time limitation may be extended only by amendment of the redevelopment plan. (b) If a redevelopment plan is amended to add territory, the amendment shall contain the time limits required by this section. (c) This section shall apply only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) on or after January 1, 1994, and to amendments that add territory and that are adopted on or after January 1, 1994. . SEC. 4. Section 33333.4 of the Health and Safety Code is amended to read: 33333.4. (a) Every legislative body which adopted a final redevelopment plan prior to October 1, 1976, that contains the provisions set forth in Section 33670 but which does not contain all of the limitations required by Section 33333.2, shall adopt an ordinance on or before December 31, 1986, which contains all of the following: (1) A limitation on the number of dollars of taxes which may be divided and allocated to the redevelopment agency pursuant to the Page 3 of 27 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED plan, including any amendments to the plan. Taxes shall not be divided and shall not be allocated to the redevelopment agency beyond that limitation, except as necessary to comply with subdivision (a) of Section 33333.8. (2) A time limit on the establishing of loans, advances, and indebtedness to finance in whole, or in part, the redevelopment project. No loans, advances, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the agency beyond the time limitation, except as necessary to comply with subdivision (a) of Section 33333.8. (3) A time limit, not to exceed 12 years, for commencement of eminent domain proceedings to acquire property within the project area. (b) 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, 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. (c) The limitations established in the ordinance adopted pursuant to this section shall not be applied to limit allocation of taxes to an agency to the extent required to eliminate project deficits created under subdivision (g) of Section 33334.6 in accordance with the plan adopted pursuant thereto for the purpose of eliminating the deficit or to comply with subdivision (a) of Section 33333.8. In the event of a conflict between these limitations and the obligations under Section 33334.6 or subdivision (a) of Section 33333.8, the legislative body shall amend the ordinance adopted pursuant to this section to modify the limitations to the extent necessary to permit compliance with the plan adopted pursuant to subdivision (g) of Section 33334.6, to permit compliance with subdivision (a) of Section 33333.8, and to allow full expenditure of moneys in the agency's Low and Moderate Income Housing Fund in accordance with Section 33334.3. The procedure for amending the ordinance pursuant to this subdivision shall be the same as for adopting the ordinance under subdivision (b). (d) This section shall not be construed to allow the impairment of any obligation or indebtedness incurred by the legislative body or the agency pursuant to this part. (e) In any litigation to challenge or attack any ordinance adopted pursuant to this section, the court shall sustain the actions of the legislative body and the agency unless the court finds those actions were arbitrary or capricious. The Legislature finds and declares that this is necessary because redevelopment agencies with project areas established prior to October 1, 1976, have incurred existing obligations and indebtedness and have adopted projects, programs, and activities with the authority to receive and pledge the entire allocation of taxes authorized by Section 33670 and that it is necessary to protect against the possible impairment of existing obligations and indebtedness and to allow the completion of adopted projects and programs. (f) The ordinance adopted by the legislative body in compliance with this section does not relieve any agency of its obligations under Section 33334.2, 33334.3, Article 9 (commencing with Section 33410), or any other requirement contained in this part. (g) A redevelopment plan adopted on or after October 1, 1976, and prior to January 1, 1994, containing the provisions set forth in Section 33670, shall also contain: (1) A limitation on the number of dollars of taxes that may be divided and allocated to the agency pursuant to the plan, including any amendments to the plan. Taxes shall not be divided and shall not be allocated to the agency beyond this limitation, except pursuant to amendment of the redevelopment plan, or as necessary to comply Page 4 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTEPED with subdivision (a) of Section 33333.8. (2) A time limit, not to exceed 12 years, for commencement of eminent domain proceedings to acquire property within the project area. This time limit may be extended only pursuant to amendment of the redevelopment plan. SEC. 5. 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) The effectiveness of every redevelopment plan to which this section applies shall terminate at a date which 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 subdivision (a) of Section 33333.8 and to enforce existing covenants, contracts, or other obligations. (b) Except as provided in subdivisions (f) and (g), a redevelopment agency shall 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). (c) (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) (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 limit established by this section or to establish time limits that do not exceed the provisions of subdivision (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. (e) (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 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 this ordinance, neither the legislative body nor the agency is required to comply with Section 33354.6 or Article 12 (commencing with Section 33450) or Page 5 of 27 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED any other provision of this part relating to the amendment of redevelopment plans. 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 this ordinance, 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, except that the agency shall make the payment to affected taxing entities required by Section 33607.7. (£) The limitations established in the ordinance adopted pursuant to this section or Section 33333.10 shall not be applied to limit allocation of taxes to an agency to the extent required to comply . with subdivision (a) of Section 33333.8. In the event of a conflict between these limitations and the obligations under subdivision (a) of Section 33333.8, the legislative body shall amend the ordinance adopted pursuant to this section to modify the limitations to the extent necessary to permit compliance with subdivision (a) of Section 33333.8 and to allow full expenditure of moneys in the agency's Low and Moderate Income Housing Fund in accordance with subdivision (a) of Section 33333.8. The procedure for amending the ordinance pursuant to this subdivision shall be the same as for adopting the ordinance under subdivision (d). (g) This section shall not be construed to affect 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. This section shall not be construed to affect the right of an agency to receive property taxes, pursuant to Section 33670, to pay the bond, indebtedness, or other obligation. (h) 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. (j) If a redevelopment plan is amended to add territory, the amendment shall contain the time limits required by Section 33333.2. SEC. 6. Section 33333.7 of the Health and Safety Code is amended to read: 33333.7. (a) Notwithstanding the time limits in paragraph (1) of subdivision (a) of Section 33333.6, as that paragraph (1) read on December 31, 2001, the Redevelopment Agency of the City and County of San Francisco may, subject to the approval of the Board of Supervisors of the City and County of San Francisco, retain its ability to incur indebtedness exclusively for Low and Moderate Income Housing Fund activities eligible under Sections 33334.2 and 33334.3 until January 1, 2014, or until the agency replaces all of the housing units demolished prior to the enactment of the replacement housing obligations in Chapter 970 of the Statutes of 1975, whichever occurs earlier. The ability of the agency to receive tax increment revenues to repay indebtedness incurred for these Low and Moderate Page 6 of 27 file: / /C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED Income Housing Fund activities may be extended until no later than January 1, 2044. Nothing in this paragraph shall be construed to extend a plan's effectiveness, except to incur additional indebtedness for Low and Moderate Income Housing Fund activities, to pay previously incurred indebtedness, and to enforce existing covenants, contracts, or other obligations. (b) Annual revenues shall not exceed the amount necessary to fund the Low and Moderate Income Housing Fund activities of the agency. The agency shall neither collect nor spend more than 10 percent for the planning and administrative costs authorized pursuant to subdivision (e) of Section 33334.3. Revenues received under this paragraph shall not exceed the amount of tax increment received and allocated to the agency pursuant to the plan, as it has been amended, less the amount necessary to pay prior outstanding indebtedness, and less the amount of the project area's property tax revenue that school entities are entitled to receive pursuant to Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code if the plan had not been amended. Additionally, revenues collected under this paragraph are subject to the payments to affected taxing entities pursuant to Section 33607. (c) The activities conducted with revenues received under this paragraph shall be consistent with the policies and objectives of the community's housing element, as reviewed and approved by the department, and shall address the unmet housing needs of very low, low- and moderate- income households. The activities shall also be consistent with the community's most recently approved consolidated and annual action plans submitted to the United States Department of Housing and Urban Development, and if the director deems it necessary, the annual action plans shall be submitted to the department on an annual basis. No less than 50 percent of the revenues received shall be devoted to assisting in the development of housing that is affordable to very low income households. (d) The agency shall not incur any indebtedness pursuant to this paragraph until the director certifies, after consulting with the agency, the net difference between the number of housing units affordable to persons and families of low and moderate income that the agency destroyed or removed prior to January 1, 1976, and the number of housing units affordable to persons and families of low and moderate income that the agency rehabilitated, developed, or constructed, or caused to be rehabilitated, developed, or constructed within the project areas adopted prior to January 1, 1976. (e) The agency shall not incur any indebtedness pursuant to this paragraph unless the director of the department certifies annually, prior to the creation of indebtedness, all of the following: (1) The community has a current housing element that 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. (2) The community's housing element indicates an unmet need for Low and Moderate Income Housing Fund activities.. (3) The agency's most recent independent financial audit report prepared pursuant to Section 33080.1 reports acceptable findings and no major violations of this part. (4) The agency has complied with subdivision (a) of Section 33334.2. (5) The agency has met the requirements of this part with respect to the provision of dwelling units for persons and families of low or moderate income, including, but not limited to, the requirements of Section 33413. SEC. 7. Section 33333.8 is added to the Health and Safety Code, to read: 33333.6. (a) Every redevelopment agency shall comply with and fulfill its obligations with regard to the provision of affordable Page 7 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED housing as required by this part prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Sections 33333.2 and 33333.6. A legislative body shall not adopt an ordinance terminating a redevelopment project area if the agency has not complied with subdivision (a) of Section 33413 with respect to replacement housing, subdivision (b) of Section 33413 with respect to agency developed housing and project area housing, and Section 33333.12 with respect to excess surplus funds. (b) If, on the date of the time limit on the effectiveness of the redevelopment plan, a redevelopment agency has not complied with subdivision (a), the time limit on the effectiveness of the redevelopment plan shall be suspended and the agency shall use all tax increment funds that are not pledged to repay indebtedness to comply with subdivision (a). If, on the date of the time limit on the repayment of indebtedness, the agency has not complied with subdivision (a), the time limit on the repayment of indebtedness shall be suspended and the agency shall receive and use tax increment funds to comply with subdivision (a). (c) If, on the date of the time limit on the repayment of indebtedness, the agency has complied with its obligations under subdivision (a) and has moneys remaining in the Low and Moderate Income Housing Fund, the agency shall transfer the remaining moneys to a low and moderate income housing fund for a different project area within the agency's jurisdiction, if one exists, or if a different project area does not exist, the agency shall either transfer the remaining moneys to a special fund of the community or to the community or county housing authority. The community or county housing authority to which the remaining moneys are transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the redevelopment agency under this part. (d) If a redevelopment plan provides a limit on the total amount of tax increment funds that may be received by a redevelopment agency for any project area, and if that limit is reached prior to the agency complying with its obligations pursuant to subdivision (a), that limit is suspended and the agency shall receive and use tax increment funds until the agency has fully complied with its obligations. (e) If an agency fails to comply with its obligations pursuant to this section, any person may seek judicial relief. The court shall require the agency to take all steps necessary to comply with those obligations, including as necessary the adoption of ordinances, to incur debt, to obtain tax increments, to expend tax increments, and to enter into contracts as necessary to meet its housing obligations under this part. SEC. 8. Section 33333.10 is added to the Health and Safety Code, to read: 33333.10. (a) (1) Notwithstanding the time limits in subdivisions (a) and (b) of Section 33333.6, an agency that adopted a redevelopment plan on or before December 31, 1993, may, pursuant to this section, amend that plan to extend the time limit on effectiveness of the plan for up to 10 additional years beyond the limit allowed by subdivision (a) of Section 33333.6. (2) In addition, the agency may, pursuant to this section, amend that plan to extend the time limit on the payment of indebtedness and receipt of property taxes to be not more than 10 years from the termination of the effectiveness of the redevelopment plan as that time limit has been amended pursuant to paragraph (1). (b) A redevelopment plan may be amended pursuant to subdivision (a) only after the agency finds, based on substantial evidence, that both of the following conditions exist: (1) Significant blight remains within the project area. (2) This blight cannot be eliminated without extending the effectiveness of the plan and the receipt of property taxes. Page 8 of 27 file: / /C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED (c) As used in this section: (1) "Blight" has the same meaning as that term is given in Section 33030. (2) "Significant" means important and of a magnitude to warrant agency assistance. (3) "Necessary and essential parcels" means parcels that are not blighted but are so necessary and essential to the elimination of the blight that these parcels should be included within the portion of the project area in which tax increment funds may be spent. "Necessary and essential parcels" are (A) parcels that are adjacent to one or more blighted parcels that are to be assembled in order to create a parcel of adequate size given present standards and market conditions, and (B) parcels that are adjacent or near parcels that are blighted on which it is necessary to construct a public improvement to eliminate the blight. (d) For purposes of this section, significant blight can exist in a project area even though blight is not prevalent in a project area. The report submitted to the legislative body pursuant to Section 33352 shall identify on a map the portion of the project area in which significant blight remains. (e) After the limit on the payment of indebtedness and receipt of property taxes that would have taken effect but for the amendment pursuant to this section, except for funds deposited in the Low and Moderate Income Housing Fund pursuant to Sections 33334.2 or 33334.6, the agency shall spend tax increment funds only within the portion of the project area that has been identified in the report adopted pursuant to Section 33352 as the area containing blighted parcels and necessary and essential parcels. Except as otherwise limited by subdivisions (f) and (g), agencies may continue to spend funds deposited in the Low and Moderate Income Housing Fund in accordance with this division. (f) (1) Except as otherwise provided in this subdivision, after the limit on the payment of indebtedness and receipt of property taxes that would have taken effect, but for the amendment pursuant to this section, agencies shall only spend moneys from the Low and Moderate Income Housing Fund for the purpose of increasing, improving, and preserving the community's supply of housing at affordable housing cost to persons and families of low or very low income, as defined in Sections 50093, 50105, and 50106. During this period, an agency that has adopted an amendment pursuant to subdivision (a) may use moneys from the Low and Moderate Income Housing Fund for the purpose of increasing, improving, and preserving housing at affordable housing cost to persons and families of moderate income as defined in Section 50093. However, this amount shall not exceed, in a five -year period, the amount of moneys from the Low and Moderate Income Housing Fund that are used to increase, improve, and preserve housing at affordable housing cost to persons and families of extremely low income, as defined in Section 50106. In no case shall the amount expended for housing for persons and families of moderate income exceed 15 percent of the annual amount deposited in the Low and Moderate Income Housing Fund during a five -year period and the number of housing units affordable to moderate - income persons shall not exceed the number of housing units affordable to extremely low income persons. (2) Commencing with the first fiscal year that commences after the date of the adoption of an amendment pursuant to subdivision (a) and until the limit on the payment of indebtedness and receipt of property taxes that would have taken effect but for the amendment pursuant to this section, an agency that has adopted an amendment pursuant to subdivision (a) use moneys from the Low and Moderate Income Housing Fund for the purpose of increasing, improving, and preserving housing at affordable housing cost to persons and families of moderate income as defined in section 50093. However, this Page 9 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED amount shall not exceed, in a five -year period, 15 percent of the amount of moneys deposited in the Low and Moderate Income Housing Fund during that five -year period and shall only be used to assist housing projects in which no less than 49 percent of the units are affordable to and occupied by persons and families of low or very low income. An agency may spend an additional amount of moneys in the same or other projects to assist housing units affordable to and occupied by moderate income.persons. However, this amount shall not exceed the lesser of: the amount of moneys spent to increase, improve, and preserve housing, the amount of affordable housing costs to persons and families of extremely low income as defined in Section 50106, or 5 percent of the moneys deposited in the Low and Moderate Income Housing Fund during that five -year period. (g) (1) Except as provided in paragraph (2) or (3), commencing with the first fiscal year that commences after the date of adoption of an amendment pursuant to subdivision (a), not less than 30 percent of all taxes that are allocated to the agency pursuant to Section 33670 from the project so amended shall be deposited into that project's Low and Moderate Income Housing Fund for the purposes specified in subdivision M. (2) In any fiscal year, the agency may deposit less than the amount required by paragraph (1), but not less than the amount required by Section 33334.2 or 33334.6, into the Low and Moderate Income Housing Fund if the agency finds that the difference between the amount deposited and the amount required by paragraph (1) is necessary to make payments under existing obligations of amounts due or required to be committed, set aside, or reserved by the agency during that fiscal year and that are used by the agency for that purpose. For the purposes of this subdivision, "existing obligations" means the principal of, and interest on, bonds, loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the agency to finance or refinance, in whole or in part, the redevelopment project so amended, existing on and created prior to the date of adoption of the amendment pursuant to subdivision (a). Obligations incurred on or after the date of adoption of the amendment pursuant to subdivision (a) shall be deemed existing obligations for the purposes of this subdivision if the net proceeds are used to refinance existing obligations as defined in this paragraph. (3) Notwithstanding paragraph (1), an agency that sells bonds on or after the date of adoption of an amendment pursuant to subdivision (a), the repayment of which is to be made from taxes allocated to the agency pursuant to Section 33670 from the project so amended, may elect to subordinate up to 16 2/3 percent of its annual Low and Moderate Income Housing Fund deposit obligation to the payment of debt service. If the agency makes that election and in any year the agency has insufficient tax - increment revenue available to pay debt service on the bonds to which the funds from the Low and Moderate Income Housing Fund are subordinated, the agency may deposit less than the full 100 percent of its annual Low and Moderate Income Housing Fund obligation but only to the extent necessary to pay that debt service and in no event shall less than 83 1/3 percent of that obligation be deposited into the Low and Moderate Income Housing Fund for that year. The difference between the amount that is actually deposited in the Low and Moderate Income Housing Fund and the full 100 percent of the agency's Low and Moderate Income Housing Fund deposit obligation shall constitute a deficit in the Low and Moderate Income Housing Fund subject to repayment pursuant to paragraph (4). (4) If, pursuant to paragraph (2) or (3), the agency deposits less than 30 percent of the taxes allocated to the agency pursuant to Section 33670 in any fiscal year in the Low "and Moderate Income Housing Fund, the amount equal to the difference between 30 percent of the taxes allocated to the agency pursuant to Section 33670 for Page 10 of 27 file://C:\DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED each affected project and the amount actually deposited in the Low and Moderate Income Housing Fund for that fiscal year shall be established as a deficit in the Low and Moderate Income Housing Fund. The agency shall adopt a plan to eliminate the deficit in the Low and Moderate Income Housing Fund in subsequent years as determined by the agency. The obligations imposed by this section are hereby declared to be an indebtedness of the redevelopment project to which they relate, payable from taxes allocated to the agency pursuant to Section 33670 and, notwithstanding any other provision of law, shall constitute an indebtedness of the agency with respect to the redevelopment project, and the agency shall continue to receive allocations of taxes pursuant to Section 33670 until the deficit is paid in full. (h) An agency shall not amend its redevelopment plan pursuant to this section unless the agency first adopts a resolution that finds, based on substantial evidence, all of the following: (1) The community has adopted a housing element that the department has determined pursuant to Section 65585 of the Government Code to be in substantial 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, or if applicable, an eligible city or county within the jurisdiction of the San Diego Association of Governments has adopted a self - certification of compliance with its adopted housing element pursuant to Section 65585.1 of the Government Code. (2) During the three fiscal years prior to the year in which the amendment is adopted, the agency has not been included in the report sent by the Controller to the Attorney General pursuant to subdivision (b) of Section 33080.8 as an agency that has a "major violation" pursuant to Section 33080.8. (3) After a written request by the agency and provision of the information requested by the department, the department has issued a letter to the agency, confirming that the agency has not accumulated an excess surplus in its Low and Moderate Income Housing Fund. As used in this section, "excess surplus" has the same meaning as that term is defined in Section 33334.12. The department shall develop a methodology to collect information required by this section. Information requested by the department shall include a certification by the agency's independent auditor on the status of excess surplus and submittal of data for the department to verify the status of excess surplus. The independent auditor shall make the required certification based on the Controller's office guidelines which shall include the methodology prescribed by the department pursuant to subparagraph (D) of paragraph (3) of subdivision (g) of Section 33334.12. If the department does not respond to the written request of the agency for this determination within 90 days after receipt of the written request, compliance with this requirement shall be deemed confirmed. (i) Each redevelopment plan that has been adopted prior to January 1, 1976, that is amended pursuant to subdivision (a) shall also be amended at the same time to make subdivision (b) of Section 33413 applicable to the redevelopment plan in accordance with paragraph (1) of subdivision (d) of Section 33413. (j) The amendment to the redevelopment plan authorized pursuant to this section shall be made by ordinance pursuant to Article 12 (commencing with Section 33450). The ordinance shall be subject to referendum as prescribed by law for ordinances of the legislative body. (k) This section shall not apply to a project area that retains its eligibility to incur indebtedness and receive tax increment revenues pursuant to Section 33333.7. SEC. 9. Section 33333.11 is added to the Health and Safety Code, to read: 33333.11. (a) In order to adopt an amendment pursuant to Section Page 11 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED 33333.10, the redevelopment agency shall also comply with the procedures in this section. (b) Before adopting an amendment of the plan, the agency shall hold a public hearing on the proposed amendment. The notice of the public hearing shall comply with Section 33452. (c) Prior to the publication of the notice of the public hearing on the proposed amendment, the agency shall consult with each affected taxing agency with respect to the proposed amendment. At a, minimum, the agency shall give each affected taxing agency the opportunity to meet with representatives of the agency for the purpose of discussing the effect of the proposed amendment upon the affected taxing agency and shall notify each affected taxing agency that any written comments from the affected taxing agency will be included in the report to the legislative body. (d) Prior to the publication of the notice of the public hearing on the proposed amendment, the agency shall consult with and obtain the advice of members of a project area committee, if a project area committee exists, and residents and community organizations and provide to those persons and organizations, including the project area committee, if any, the amendment prior to the agency's submitting the amendment to the legislative body. In addition, the preliminary report prepared pursuant to subdivision (e) shall be made available at no cost to the project area committee, if one exists, and residents and community organizations not later than 120 days prior to holding a public hearing on the proposed amendment. (e) No later than 120 days prior to holding a public hearing on the proposed amendment, the agency shall send to each affected taxing entity, as defined in Section 33353.2, the Department of Finance, and the Department of Housing and Community Development, a preliminary report that contains all of the following: (1) A map of the project area that identifies the portion, if any, of the project area that is no longer blighted and the portion of the project area that is blighted and the portion of the project area that contains necessary and essential parcels for the elimination of the remaining blight. (2) A description of the remaining blight. (3) A description of the projects or programs proposed to eliminate the remaining blight. (4) A description of how the project or programs will improve the conditions of blight. (5) The reasons why the projects or programs cannot be completed without extending the time limits on the effectiveness of the plan and receipt of tax increment revenues. . (6) The proposed method of financing these programs or projects. This description shall include the amount of tax increment revenues that is projected to be generated during the period of the extension, including amounts projected to be deposited into the Low and Moderate Income Housing Fund and amounts to be paid to affected taxing entities. This description shall also include sources and amounts of moneys other than tax increment revenues that are available to finance these projects or programs. This description shall also include the reasons that the remaining blight cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without the use of the tax increment revenues available to the agency because of the proposed amendment. (7) An amendment to the agency's implementation plan that includes, but is not limited to, the agency's housing responsibilities pursuant to Section 33490. However, the agency shall not be required to hold a separate public hearing on the implementation plan pursuant to subdivision (d) of Section 33490 in addition to the public hearing on the amendment to the redevelopment plan. (8) A neighborhood impact report if required by subdivision (m) of Page 12 of 27 file: //C:\ DATA \legislation \Cal_SBiIIs\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED Section 33352. (f) No later than 120 days prior to holding a public hearing on the proposed amendment, the agency shall send the proposed amendment to the planning commission. If the planning commission does not report upon the amendment within 30 days after its submission by the agency, the planning commission shall be deemed to have waived its report and recommendations concerning the amendment. (g) No later than 45 days prior to the public hearing on the proposed amendment by the agency or the joint public hearing of the agency and the legislative body, the agency shall notify each affected taxing entity, the Department of Finance, the Department of Housing and Community Development, and each individual and organization that submitted comments on the preliminary report by certified mail of the public hearing, the date of the public hearing, and the proposed amendment. This notice shall be accompanied by the report required to be prepared pursuant to subdivision (h). (h) No later than 45 days prior to the public hearing on the proposed amendment by the agency or the joint public hearing by the agency and the legislative body, the agency shall adopt a report to the legislative body containing all of the following: (1) All of the information required to be contained in the preliminary report prepared pursuant to subdivision (e). (2) The report and recommendation of the planning commission. (3) The report required by Section 21151 of the Public Resources Code. (4) A summary of the consultations with the affected taxing entities. If any of the affected taxing entities, a project area committee, if any, residents, or community organizations have expressed written objections or concerns with the proposed amendment as'part of these consultations, the agency shall include a response to these concerns. (5) A summary of the consultation with residents and community organizations, including the project area committee, if any. (i) After receiving the recommendation of the agency on the proposed amendment, and not sooner than 30 days after the submission of changes to the planning commission, the legislative body shall hold a public hearing on the proposed amendment. The notice of the public hearing shall comply with Section 33452. (j) As an alternative to the separate public hearing required by subdivision (i), the agency and the legislative body, with the consent of both, may hold a joint public hearing on the proposed amendment. Notice of this public hearing shall comply with Section 33452. When a joint public hearing is held and the legislative body is also the agency, the legislative body may adopt the amended plan with no actions required of the agency. If, after the public hearing, the legislative body determines that the amendment to the plan is necessary or desirable, the legislative body shall adopt an ordinance amending the ordinance adopting the plan thus amended. The ordinance adopting the amendment shall contain findings that both (1) significant blight remains within the project area, and (2) the blight cannot be eliminated without the extension of the effectiveness of the plan and receipt of tax increment. (k) If an affected taxing entity, the Department of Finance, or the Department of Housing and Community Development believes that significant remaining blight does not exist within the portion of the project area designated as blighted in the report to the legislative body regarding a proposed amendment to be adopted pursuant to Section 33333.10, the affected taxing entity, the Department of Finance, or the Department of Housing and Community Development may request the Attorney General to participate in the amendment process. The affected taxing entity, the Department of Finance, or the Department of Housing and Community Development shall request this participation within 21 days after receipt of the notice of the public hearing sent pursuant to subdivision (g). The Attorney Page 13 of 27 file: / /C:ADATA \legislation \Cal SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED General shall determine whether or not to participate in the amendment process. The Attorney General may consult with and request the assistance of departments of the state and any other persons or groups that are interested or that have expertise in redevelopment. The Attorney General may participate in the amendment process by requesting additional information from the agency, conducting his or her own review of the project area, meeting with the agency and any affected taxing entity, submitting evidence for consideration at the public hearing, or presenting oral evidence at the public hearing. No later than five days prior to the public hearing on the proposed amendment, the Attorney General shall notify each affected taxing agency, each department that has requested the Attorney General to review the proposed amendment, and the redevelopment agency with regard to whether the Attorney General will participate in the amendment process and, if so, how he or she will participate, on their behalf. (1) The Attorney General may bring a civil action pursuant to Section 33501 to determine the validity of an amendment adopted pursuant to Section 33333.10. The Department of Finance and the Department of Housing and Community Development shall be considered interested persons for the purposes of protecting the interests of the state pursuant to Section 863 of the Code of Civil Procedure in any action brought with regard to the validity of an ordinance adopting a proposed amendment.pursuant to Section 33333.10. Either department may request the Attorney General to bring an action pursuant to Section 33501 to determine the validity of an amendment adopted pursuant to Section 33333.10. Actions brought pursuant to this subdivision are in addition to any other actions that may be brought by the Attorney General or other persons. SEC. 10. Section 33333.13 is added to the Health and Safety Code, to read: 33333.13. Notwithstanding any other provision of this division, after the limit on the payment of indebtedness and receipt of property taxes that would have taken effect but for the amendment pursuant to Section 33333.10, notwithstanding Section 33670, the Redevelopment Agency of the City of Oakland shall not receive the amount of the project area's property tax revenue that the East Bay Regional Park District would be entitled to receive pursuant to Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code if the plan had not been amended. SEC. 11. Section 33413 of the Health and Safety Code, as amended by Section 3 of Chapter 756 of the Statutes of 2000, is amended to read: 33413. (a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate - income housing market as part of a redevelopment project that is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing cost within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling "units shall replace dwelling units available at affordable housing cost in the same income level of very low income households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. (b) (1) Prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Sections 33333.2, 33333.6, Page 14 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED and 33333.10, at least 30 percent of all new or rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (2) Prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Sections 33333.2, 33333.6, and 33333.10, at least 15 percent of all new or rehabilitated dwelling units developed within the project area by public or private entities or persons other than the agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable housing cost to very low income households. (3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a) and in the aggregate to housing made available pursuant to paragraphs (1) and (2), respectively, and not to each individual case of rehabilitation, development, or construction of dwelling units. (4) Each redevelopment agency, as part of the implementation plan required by Section 33490, shall adopt a plan to comply with the requirements of this subdivision for each project area. The plan shall be consistent with, and may be included within, the community's housing element. The plan shall be reviewed and, if necessary, amended at least every five years in conjunction with either the housing element cycle or the plan implementation cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. If the requirements of this subdivision are not met by the end of each 10 -year period, the agency shall meet these goals on an annual basis until the requirements for the 10 -year period are met. If the agency has exceeded the requirements within the 10 -year period, the agency may count the units that exceed the requirement in order to meet the requirements during the next 10 -year period. The plan shall contain the contents required by paragraphs (2) and (3) of subdivision (a) of Section 33490. (c) The agency shall require that the aggregate number of replacement dwelling units and other dwelling units rehabilitated, developed, or constructed pursuant to subdivision (a) or (b) remain available at affordable housing cost to persons and families of low- income, moderate - income, and very low income households, respectively, for the longest feasible time, as determined by the agency, but for not less than the period of the land use controls established in the redevelopment plan, except to the extent a longer period of time may be required by other provisions of law. If land on which those dwelling units are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in the previous sentence. These requirements shall be made enforceable in the same manner as provided in subdivision (e) of Section 33334.3. (d) (1) This section applies only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) on or after January 1, 1976, and to areas that are added to a project area by amendment to a final redevelopment plan adopted on or after January 1, 1976. In addition, subdivision (a) shall apply to any other redevelopment project with respect to dwelling units destroyed or removed from the low- and moderate - income housing market on or after January 1, 1996, irrespective of the date of adoption of a final redevelopment plan or an amendment to a final redevelopment plan adding areas to a project area. Additionally, any agency may, by resolution, elect to make all or part of the Page 15 of 27 file: //C:A DATA Uegislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED requirements of this section applicable to any redevelopment project of the agency for which the final redevelopment plan was adopted prior to January 1, 1976. In addition, subdivision (b) shall apply to redevelopment plans adopted prior to January 1, 1976, for which an amendment is adopted pursuant to Section 33333.10, except that subdivision (b) shall apply to those redevelopment plans prospectively only so that the requirements of subdivision (b) shall apply only to new and substantially rehabilitated dwelling units for which the building permits are issued on or after the date that the ordinance adopting the amendment pursuant to Section 33333.10 becomes effective. (2) An agency may, by resolution, elect to require that whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate - income housing market as part of a redevelopment project, the agency shall replace each dwelling unit with up to three replacement dwelling units pursuant to subdivision (a). (e) Except as otherwise authorized by law, this section does not authorize an agency to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. (f) Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: (1) The total number of bedrooms in the replacement dwelling units equal or exceed the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom. (2) The replacement units are affordable to the same income level of households as the destroyed or removed units. (g) "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. (h) Any dwelling units constructed, rehabilitated, or acquired prior to January 1, 1997, pursuant to provisions that were in effect at the time of the construction, rehabilitation, or acquisition may continue to be counted to meet the requirements of this section. (i) This section shall become operative on January 1, 2002. SEC. 11.5. Section 33413 of the Health and Safety Code, as amended by Section 3 of Chapter 756 of the Statutes of 2000, is amended to read: 33413. (a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate - income housing market as part of a redevelopment project that is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling units shall replace dwelling units available at affordable housing cost in the same income level of very low income households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. When dwelling units are destroyed or removed on or after January 1, 2002, 100 percent of the replacement dwelling units shall be available at affordable housing cost to persons in the same or a lower income category (low, very low, or moderate), as the persons displaced from those destroyed or removed units. (b) (1) Prior to the time limit on the effectiveness of the Page 16 of 27 file:HC:A DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.hhn 1/3/2002 SB 211 Senate Bill - CHAPTERED Page 17 of 27 redevelopment plan established pursuant to Sections 33333.2, 33333.6, and 33333.10 at least 30 percent of all new and substantially rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons and families. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (2) (A) (i) Prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Section 33333.2, 33333.6, and 33333.10 at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under' the jurisdiction of an agency by public or private entities or persons other than the agency shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons and families. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable,housing cost to very low income households and shall be occupied by these persons and families'. (ii) To satisfy this paragraph, in whole or in part, the agency may cause, by regulation or agreement, to be available, at affordable housing costs, to persons and families of low or moderate income or to very low income households, as applicable, two units outside a project area for each unit that otherwise would have been required to be available inside a project area. (iii) on or after January 1, 2002, as used in this paragraph and in paragraph (1), "substantially rehabilitated dwelling units" means substantially rehabilitated, with agency assistance, multifamily rented dwelling units with three or more units, or substantially rehabilitated, with agency assistance, single - family dwelling units with one or two units. Prior to January 1, 2002, "substantially rehabilitated dwelling units" shall mean substantially rehabilitated multifamily rented dwelling units with three or more units or substantially rehabilitated, with agency assistance, single - family dwelling units with one or two units. (iv) As used in this paragraph and in paragraph (1), "substantial rehabilitation" means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. (v) To satisfy this paragraph, the agency may aggregate new or substantially rehabilitated dwelling units in one or more project areas, if the agency finds, based on substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic, or economic segregation. (B) To satisfy the requirements of paragraph (1) and subparagraph (A), the agency may purchase, or otherwise acquire or cause by regulation or agreement the purchase or other acquisition of, long -term affordability covenants on multifamily units that restrict the cost of renting or purchasing those units that either: (i) are not presently available at affordable housing cost to persons and families of low or very low income households, as applicable; or (ii) are units that are presently available at affordable housing cost to this same group of persons or families, but are units that the agency finds, based upon substantial evidence, after a public hearing, cannot reasonably be expected to remain affordable to this same group of persons or families. (C) To satisfy the requirements of paragraph (1) and subparagraph (A), the long -term affordability covenants purchased or otherwise acquired pursuant to subparagraph (B) shall be required to be maintained on dwelling units at affordable housing cost to, and occupied by, persons and families of low or very low income, for the longest feasible time but not less than 55 years for rental units and file:HC:ADATA\ legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED 45 years for owner- occupied units. Not more than 50 percent of the units made available pursuant to paragraph (1) and subparagraph (A) may be assisted through the purchase or acquisition of long -term affordability covenants pursuant to subparagraph (B). Not less than 50 percent of the units made available through the purchase or acquisition of long -term affordability covenants pursuant to subparagraph (B) shall be available at affordable housing cost to, and occupied by, very low income households. (3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a). The requirements of this subdivision shall apply, in the aggregate, to housing made available pursuant to paragraphs (1) and (2), respectively, and not to,each individual case of rehabilitation, development, or construction of dwelling units, unless an agency determines otherwise. (4) Each redevelopment agency, as part of the implementation plan required by Section 33490, shall adopt a plan to comply with the requirements of this subdivision for each project area. The plan shall be consistent with, and may be included within, the community's housing element. The plan shall be reviewed and, if necessary, amended at least every five years in conjunction with either the housing element cycle or the plan implementation cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. If the requirements of this subdivision are not met by the end of each 10 -year period, the agency shall meet these goals on an annual basis until the requirements for the 10 -year period are met. If the agency has exceeded the requirements within the 10 -year period, the agency may count the units that exceed the requirement in order to meet the requirements during the next 10 -year period. The plan shall contain the contents required by paragraphs (2) and (3) of subdivision (a) of Section 33490. (c) The agency shall require that the aggregate number of replacement dwelling units and other dwelling units rehabilitated, developed, constructed, or price- restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to persons and families of low- income, moderate- income, and very low income households, respectively, and remain occupied by those persons and families for the longest feasible time, but for not less than 55 years for rental units and 45 years for homeownership units, except for the following: (1) The agency may permit sales of owner - occupied units prior to the expiration of the 45 -year period established by the agency for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency's investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds, based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency, and deposited into the Low and Moderate Income Housing Fund. The agency shall, within three years from the date of sale of units pursuant to this subparagraph, expend funds to make affordable an equal number of units at the same income level as units sold pursuant to this subparagraph. (2) The requirements of this subdivision shall be made enforceable in the same manner as provided in paragraph (2) of subdivision (f) of Section 33334.3. (3) If land on which those dwelling units are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in this subdivision. (d) (1) This section applies only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) on or after January 1, 1976, and to areas that are added to a project area by amendment to a final redevelopment plan adopted on or after January 1, 1976. In addition, Page 18 of 27 file:HC:\DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED subdivision (a) shall apply to any other redevelopment project with respect to dwelling units destroyed or removed from the low- and moderate - income housing market on or after January 1, 1996, irrespective of the date of adoption of a final redevelopment plan or an amendment to a final redevelopment plan adding areas to a project area. Additionally, any agency may, by resolution, elect to make all or part of the requirements of this section applicable to any redevelopment project of the agency for which the final redevelopment plan was adopted prior to January 1, 1976. In addition, subdivision (b) shall apply to redevelopment plans adopted prior to January 1, 1976, for which an amendment is adopted pursuant to Section 33333.10, except that subdivision (b) shall apply to those redevelopment plans prospectively only so that the requirements of subdivision (b) shall apply only to new and substantially rehabilitated dwelling units for which the building permits are issued on or after the date that the ordinance adopting the amendment pursuant to Section 33333.10 becomes effective. (2) An agency may, by resolution, elect to require that whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate- income housing market as part of a redevelopment project, the agency shall replace each dwelling unit with up to three replacement dwelling units pursuant to subdivision (a). (e) Except as otherwise authorized by law, this section does not authorize an agency to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. (f) Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: (1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom. (2) The replacement units are affordable to and occupied by the same income level of households as the destroyed or removed units. (g) "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. (h) This section shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2006, deletes or extends that date. SEC. 11.6. Section 33413 is added to the Health and Safety Code, to read: 33413. (a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate - income housing market as part of a redevelopment project that is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing cost within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling units shall replace dwelling units available at affordable housing cost to, and occupied by, persons in the same income level of very low income households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. When dwelling units are destroyed or removed after January 1, 2002, 100 percent of the replacement Page 19 of 27 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED dwelling units shall be available at affordable housing cost to, and occupied by, persons in the same or a lower income category (low, very low, or moderate) as the persons displaced from those destroyed or removed units. (b) (1) Prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Sections 33333.2, 33333.6, and 33333.10, at least 30 percent of all new or rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (2) (A) (i) Prior to the time limit on the effectiveness of the redevelopment plan established pursuant to Sections 33333.2, 33333.6, and 33333.10, at least 15 percent of all new or rehabilitated dwelling units developed within the project area by public or private entities or persons other than the agency shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (ii) To satisfy this paragraph, in whole or in part, the agency may cause, by regulation or agreement, to be available, at affordable housing cost to, and occupied by, persons and families of low or moderate income or to very low income households, as applicable, two units outside a project area for each unit that otherwise would have had to be available inside a project area. (iii) To satisfy the provisions of this paragraph, the agency may aggregate new or rehabilitated dwelling units in one or more project areas, if the agency finds, based on substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic, or economic segregation. (B) To satisfy the requirements of paragraph (1) and subparagraph (A), the agency may purchase or otherwise acquire or cause by regulation or agreement the purchase or other acquisition of long -term affordability covenants on multifamily units that restrict the cost of renting or purchasing those units that either: (i) are not presently available at affordable housing cost to persons and families of low or very low income households, as applicable; or (ii) are units that are presently available at affordable housing cost to this same group of persons or families, but are units that the agency finds, based upon substantial evidence, after a public hearing, cannot reasonably be expected to remain affordable to this same group of persons or families. (C) To satisfy the requirements of paragraph (1) and subparagraph (A), the long -term affordability covenants purchased or otherwise acquired pursuant to subparagraph (B) shall be required to be maintained on dwelling units at affordable housing cost to, and occupied by, persons and families of low or very low income, for the longest feasible time but not less than 55 years for rental units and 45 years for owner- occupied units. Not more than 50 percent of the units made available pursuant to paragraph (1) and subparagraph (A) may be assisted through the purchase of acquisition of long -term affordability covenants pursuant to subparagraph (B). Not less than 50 percent of the units made available through the purchase or acquisition of long -term affordability covenants pursuant to subparagraph (B) shall be available at affordable housing cost to, and occupied by, very low income households. (3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a). The requirements of this Page 20 of 27 file: / /C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED subdivision shall apply in the aggregate to housing made available pursuant to paragraphs (1) and (2), respectively, and not to each individual case of rehabilitation, development, or construction of dwelling units. (4) Each redevelopment agency, as part of the implementation plan required by Section 33490, shall . adopt a plan to comply with the requirements of this subdivision for each project area. The plan shall be consistent with, and may be included within, the community's housing element. The plan shall be reviewed and, if necessary, amended at least every five years in conjunction with either the housing element cycle or the plan implementation cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. If the requirements of this subdivision are not met by the end of each 10 -year period, the agency shall meet these goals on an annual basis until the requirements for the 10 -year period are met. If the agency has exceeded the requirements within the 10 -year period, the agency may count the units that exceed the requirement in order to meet the requirements during the next 10 -year period. The plan shall contain the contents required by paragraphs (2) and (3) of subdivision (a) of Section 33490. (c) The agency shall require that the aggregate number of replacement dwelling units and other dwelling units rehabilitated, developed, constructed, or price- restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to, and occupied by, persons and families of low- income, moderate - income, and very low income households, respectively, for the longest feasible time, but for not less than 55 years for rental units and 45 years for home ownership units, except for the following: (1) The agency may permit sales of owner- occupied units prior to the expiration of the 45 -year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency's investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds, based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency and deposited into the Low and Moderate Income Housing Fund. The agency shall, within three years from the date of sale of units under this paragraph, expend funds to make affordable an equal number of units at the same income level as units sold under this paragraph. Only the units originally assisted by the agency shall be counted towards the agency's obligations under Section 33413. (2) The requirements of this subdivision shall be made enforceable in the same manner as provided in paragraph (2) of subdivision (f) of Section 33334.3. If land on which dwelling units required by this section are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in this subdivision. (d) (1) This section applies only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) on or after January 1, 1976, and to areas which are added to a project area by amendment to a final redevelopment plan adopted on or after January 1, 1976. In addition, subdivision (a) shall apply to any other redevelopment project with respect to dwelling units destroyed or removed from the low- and moderate - income housing market on or after January 1, 1996, irrespective of the date of adoption of a final redevelopment plan or an amendment to a final redevelopment plan adding areas to a project area. Additionally, any agency may, by resolution, elect to make all or part of the requirements of this section applicable to any redevelopment project of the agency for which the final redevelopment plan was adopted prior to January 1, 1976. In addition, subdivision Page 21 of 27 file://C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED (b) shall apply to redevelopment plans adopted prior to January 1, 1976, for which an amendment is adopted pursuant to Section 33333.10, except that subdivision (b) shall apply to those redevelopment plans prospectively only so that the requirements of subdivision (b) shall apply only to new and substantially rehabilitated dwelling units for which the building permits are issued on or after the date that the ordinance adopting the amendment pursuant to Section 33333.10 becomes effective. (2) An agency may, by resolution, elect to require that whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate - income housing market as part of a redevelopment project, the agency shall replace each dwelling unit with up to three replacement dwelling units pursuant to subdivision (a). (e) Except as otherwise authorized by law, this section does not authorize an agency to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. (f) Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: (1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom. (2) The replacement units are affordable to and occupied by the same income level of households as the destroyed or removed units. (g) "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. (h) This section shall become operative on January 1, 2006. SEC. 12. Section 33490 of the Health and Safety Code is amended to read: 33490. (a) (1) (A) On or before December 31, 1994, and each five years thereafter, each agency that has adopted a redevelopment plan prior to December 31, 1993, shall adopt, after a public hearing, an implementation plan that shall contain the specific goals and objectives of the agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413. After adoption of the first implementation plan, the parts of the implementation plan that address Sections 33334.2, 33334.4, 33334.6, and 33413 shall be adopted every five years either in conjunction with the housing element cycle or the implementation plan cycle. The agency may amend the implementation plan after conducting a public hearing on the proposed amendment. If an action attacking the adoption, approval, or validity of a redevelopment plan adopted prior to January 1, 1994, has been brought pursuant to Chapter 5 (commencing with Section 33500), the first implementation plan required pursuant to this section shall be adopted within six months after a final judgment or order has been entered. Subsequent implementation plans required pursuant to this section shall be adopted pursuant to the terms of this section, and as if the first implementation plan had been adopted on or before December 31, 1994. (B) Adoption of an implementation plan shall not constitute an approval of any specific program, project, or expenditure and shall not change the need to obtain any required approval of a specific program, project, or expenditure from the agency or community. The adoption of an implementation plan shall not constitute a project within the meaning of Section 21000 of the Public Resources Code. Page 22 of 27 file: / /C:A DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTER-ED However, the inclusion of a specific program, potential project, or expenditure in an implementation plan prepared pursuant to subdivision (c) of Section 33352 in conjunction with a redevelopment plan adoption shall not eliminate analysis of those programs, potential projects, and expenditures in the environmental impact report prepared pursuant to subdivision (k) of Section 33352 to the extent that it would be otherwise required. In addition, the inclusion of programs, potential projects, and expenditures in an implementation plan shall not eliminate review pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), at the time of the approval of the program, project, or expenditure, to the extent that it would be otherwise required. (2) (A) A portion of the implementation plan shall address the agency housing responsibilities and shall contain a section addressing Sections 33334.2, 33334.4, and 33334.6, the Low and Moderate Income Housing Fund, and, if subdivision (b) of Section 33413 applies, a section addressing agency - developed and project area housing. The section addressing the Low and Moderate Income Housing Fund shall contain: (i) The amount available in the Low and Moderate Income Housing Fund and the estimated amounts which will be deposited in the Low and Moderate Income Housing Fund during each of the next five years. (ii) A housing program with estimates of the number of new, rehabilitated, or price- restricted units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years. (B) For each project area to which subdivision (b) of Section 33413 applies, the section addressing the agency developed and project area housing shall contain: (i) Estimates of the number of new, substantially rehabilitated or price- restricted residential units to be developed or purchased within one or more project areas, both over the life of the plan and during the next 10 years. (ii) Estimates of the number of units of very low, low -, and moderate - income households required to be developed within one or more project areas in order to meet the requirements of paragraph (2) of subdivision (b) of Section 33413, both over the life of the plan and during the next 10 years. (iii) The number of units of very low, low -, and moderate - income households which have been developed within one or more project areas which meet the requirements of paragraph (2) of subdivision (b) of Section 33413. (iv) Estimates of the number of agency developed residential units which will be developed during the next five years, if any, which will be governed by paragraph (1) of subdivision (b) of Section 33413. (v) Estimates of the number of agency developed units for very low, low -, and moderate - income households which will be developed by the agency during the next five years to meet the requirements of paragraph (1) of subdivision (b) of Section 33413. (3) If the implementation plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to subdivision (a) of Section 33413, the implementation plan shall identify proposed locations suitable for those replacement dwelling units. (4) For a project area that is within six years of the time limit on the effectiveness of the redevelopment plan established pursuant to Section 33333.2 or 33333.6, the portion of the implementation plan addressing the housing responsibilities shall specifically address the ability of the agency to.comply, prior to the time limit on the effectiveness of the redevelopment plan, with subdivision (a) of Section 33413 with respect to replacement dwelling units, subdivision Page 23 of 27 file: / /C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED (b) of Section 33413 with respect to project area housing, and the disposition of the remaining moneys in the Low and Moderate Income Housing Fund. (b) For a project area for which a redevelopment plan is adopted on or after January 1, 1994, the implementation plan prepared pursuant to subdivision (c) of Section 33352 shall constitute the initial implementation plan and thereafter the agency after a public hearing shall adopt an implementation plan every five years commencing with the fifth year after the plan has been adopted. Agencies may adopt implementation plans that include more than one project area. (c) Every agency, at least once within the five -year term of the plan, shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation plan for each redevelopment project within the jurisdiction and evaluating the progress of the redevelopment project. The hearing required by this subdivision shall take place no earlier than two years and no later than three years after the adoption of the implementation plan. An agency may hold one hearing for two or more project areas if those project areas are included within the same implementation plan. (d) Notice of public hearings conducted pursuant to this section shall be published pursuant to Section 6063 of the Government Code and posted in at least four permanent places within the project area for a period of three weeks. Publication and posting shall be completed not less than 10 days prior to the date set for hearing. SEC. 13. Section 33492.13 of the Health and Safety Code is amended to read: 33492.13. (a) A redevelopment plan, adopted pursuant to this chapter and containing the provisions set forth in Section 33670, shall contain all of the following limitations: (1) A limitation on the number of dollars of taxes which may be divided and allocated to the redevelopment agency pursuant thereto. Taxes shall not be divided and shall not be allocated to the redevelopment agency beyond this limitation, except by amendment of the redevelopment plan pursuant to Section 33354.6, or as necessary to comply with subdivision (a) of section 33333.8. (2) (A) The 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, which may not exceed 20 years from the date the county auditor certifies pursuant to Section 33492.9, except by amendment of the redevelopment plan as authorized by subparagraph (B). The loans, advances, or indebtedness may be repaid over a period of time longer than the time limit as provided in this section. No loans, advances, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the agency beyond this time limitation, except as necessary to comply with subdivision (a) of Section 33333.8. (B) The time limitation established by subparagraph (A) may be extended only by amendment of the redevelopment plan after the agency finds, based on substantial evidence, that (i) substantial blight remains within the project area; (ii) this blight cannot be eliminated without the establishment of additional debt; and (iii) the elimination of blight cannot reasonably be accomplished by private enterprise acting alone or by the legislative body's use of financing alternatives other than tax increment financing. However, this amended time limitation may not exceed 30 years from the date the county auditor certifies pursuant to Section 33492.9, except as necessary to comply with subdivision (a) of Section 33333.8. (3) A time limit, not to exceed 30 years from the date the county auditor certifies pursuant to Section 33492.9, on the effectiveness of the redevelopment plan. After the time limit on the effectiveness of the redevelopment plan, the agency shall have no authority to act Page 24 of 27 file: / /C:A DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED pursuant to the redevelopment plan except to pay previously incurred indebtedness, comply with subdivision (a) of Section 33333.8, and enforce existing covenants or contracts. (4) A time limit, not to exceed 45 years from the date the county auditor certifies pursuant to Section 33492.9, to repay indebtedness with the proceeds of property taxes received pursuant to Section 33670. After the time limit established pursuant to this paragraph, an agency may not receive property taxes pursuant to Section 33670, except as necessary to comply with subdivision (a) of Section 33333.8. (b) (1) A redevelopment plan, adopted pursuant to this chapter, that does not contain the provisions set forth in Section 33670 shall contain the limitations in paragraph (2). (2) A time limit, not to exceed 12 years from the date the county auditor certifies pursuant to Section 33492.9, for commencement of eminent domain proceedings to acquire property within the project area. This time limitation may be extended only by amendment of the redevelopment plan. SEC. 14. Section 33607.7 of the Health and Safety Code is amended to read: 33607.7. (a) This section shall apply to a redevelopment plan amendment for any redevelopment plans adopted prior to January 1, 1994, that increases the limitation on the number of dollars to be allocated to the redevelopment agency or that increases, or eliminates pursuant to paragraph (1) of subdivision (e) of Section 33333.6, the time limit on the establishing of loans, advances, and indebtedness established pursuant to paragraphs (1) and (2) of subdivision (a) of Section 33333.6, as those paragraphs read on December 31, 2001, or that lengthens the period during which the redevelopment plan is effective if the redevelopment plan being amended contains the provisions required by subdivision (b) of Section 33670. However, this section shall not apply to those redevelopment plans that add new territory. (b) If a redevelopment agency adopts an amendment that is governed by the provisions of this section, it shall pay to each affected taxing entity either of the following: (1) If an agreement exists that requires payments to the taxing entity, the amount required to be paid by an agreement between the agency and an affected taxing entity entered into prior to January 1, 1994. (2) If an agreement does not exist, the amounts required pursuant to subdivisions (b), (c), (d), and (e) of Section 33607.5, until termination of the redevelopment plan, calculated against the amount of assessed value by which the current year assessed value exceeds an adjusted base year assessed value. The amounts shall be allocated between property taxes and educational facilities according to the appropriate formula in paragraph (3) of subdivision (a) of Section 33607.5. In determining the applicable amount under Section 33607.5, the first fiscal year shall be the first fiscal year following the fiscal year in which the adjusted base year value is determined. (c) The adjusted base year assessed value shall be the assessed value of the project area in the year in which the limitation being amended would have taken effect without the amendment or, if more than one limitation is being amended, the first year in which one or more of the limitations would have taken effect without the amendment. The agency shall commence making these payments pursuant to the terms of the agreement, if applicable, or, if an agreement does not exist, in the first fiscal year following the fiscal year in which the adjusted base year value is determined. SEC. 15. Section 50093 of the Health and Safety Code is amended to read: 50093. "Persons and families of low or moderate income" means persons and families whose income does not exceed 120 percent of area median income, adjusted for family size by the department in Page 25 of 27 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTEPED accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. However, the agency and the department jointly, or either acting with the concurrence of the Secretary of the Business and Transportation Agency, may permit the agency to use higher income limitations in designated geographic areas of the state, upon a determination that 120 percent of the median income d n the particular geographic area is too low to qualify a substantial number of persons and families of low or moderate income who can afford rental or home purchase of housing financed pursuant to Part 3 (commencing with Section 50900) without subsidy. "Persons and families of low or moderate income" includes very low income households, as defined in Section 50105, extremely low income households, as defined in Section 50106, and lower income households as defined in Section 50079.5, and includes persons and families of extremely low income, persons and families of very low income, persons and families of low income, persons and families of moderate income, and middle- income families. As used in this division: (a) "Persons and families of low income" or "persons of low income" means persons or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of housing financed pursuant to this division. (b) "Persons and families of moderate income" or "middle- income families" means persons and families of low or moderate income whose income exceeds the income limit for lower income households. (c) "Persons and families of median income" means persons and families whose income does not exceed the area median income, as adjusted by the department for family size in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. As used in this section, "area median income" means the median family income of a geographic area of the state, as annually estimated by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. In the event these federal determinations of area median income are discontinued, the department shall establish and publish as regulations income limits for persons and families of median income for all geographic areas of the state at 100 percent of area median income, and for persons and families of low or moderate income for all geographic areas of the state at 120 percent of area median income. These income limits shall be adjusted for family size and shall be revised annually. For purposes of this section, the department shall file, with the Office of Administrative Law, any changes in area median income and income limits determined by the United States Department of Housing and Urban Development, together with any consequent changes in other derivative income limits determined by the department pursuant to this section. These filings shall not be subject to Article 5 (commencing with Section 11346) or Article 6 (commencing with section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code, but shall be effective upon filing with the office of Administrative Law and shall be published as soon as possible in the California Regulatory Code Supplement and the California Code of Regulations. The department shall establish and publish a general definition of income, including inclusions, exclusions, and allowances, for qualifying persons under the income limits of this section and ' Sections 50079.5, 50105, and 50106 to be used where no other federal or state definitions of income apply. This definition need not be established by regulation. Nothing in this division shall prevent the agency or the department from adopting separate family size adjustment factors or Page 26 of 27 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill - CHAPTERED programmatic definitions of income to qualify households, persons, and families for programs of the agency or department, as the case may be. SEC. 16. Section 50106 is added to the Health and Safety Code, to read: 50106. "Extremely low income households" means persons and families whose incomes do not exceed the qualifying limits for extremely low income families as established and amended from time to time by the Secretary of Housing and Urban Development and defined in Section 5.603(b) of Title 24 of the Code of Federal Regulations. These limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for extremely low income households for all geographic areas of the state at 30 percent of area median income, adjusted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. SEC. 17. (a) The Legislature finds and declares that in 1993 the Legislature adopted time limits contained in section 33333.6 of the Health and Safety Code that applied to project areas adopted prior to January 1, 1994. The Legislature further finds and declares that some community redevelopment agencies that adopted certain project areas prior to the establishment of these limits will not be able to eliminate blight within those project areas within those limits and that it is necessary to allow the limits within these project areas to be extended to eliminate significant remaining blight. (b) The Legislature further finds and declares that authorizing the extension of these limits within those project areas will have a financial effect upon the state and that because of this financial effect it will be necessary for one or more appropriate state agencies to have the authority to take appropriate actions to ensure that these time limits are extended only for those project areas adopted on or before December 31, 1993, that contain significant remaining blight as that term was defined by the Legislature in 1993. SEC. 18. Sections 11.5 and 11.6 of this bill incorporate amendments to Section 33413 of the Health and Safety Code proposed by both this bill and AB 637. They shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2002, (2) each bill amends Section 33413 of the Health and Safety Code, and AB 637 adds Section 33413 to the Health and Safety Code, and (3) this bill is enacted after AB 637, in which case Section 11 of this bill shall not become operative. Page 27 of 27 file://C:\DATA \legislation \Cal_SBillS\2001 \SB 211 Senate Bill - CHAPTERED.htm 1/3/2002 SB 211 Senate Bill -Bill Analysis ------------------------------------------------------------ SENATE RULES COMMITTEE SB 211 Office of Senate Floor Analyses 1020 N Street, Suite 524 (916) 445 -6614 Fax: (916) 327 -4478 _____________________________ _________________________ _ _ _ _ __ UNFINISHED BUSINESS Bill No: SB 211 Author: Torlakson (D), et al Amended: 9/12/01 Vote: 21 SENATE LOCAL GOVERNMENT COMMITTEE 4 -2, 5/2/01 AYES: Torlakson, Machado, Perata, Soto NOES: Ackerman, Margett SENATE APPROPRIATIONS COMMITTEE 9 -2, 5/31/01 AYES: Alpert, Bowen, Burton, Escutia, Karnette, McPherson, Murray, Perata, Speier NOES: Battin, Poochigian SENATE FLOOR 25 -12, 6/5/01 _ AYES: Alarcon, Bowen, Burton, Chesbro, Costa, Dunn, Escutia, Figueroa, Karnette, Kuehl, Machado, McPherson, Murray, O'Connell, Ortiz, Peace, Perata, Romero, Scott, Sher, Soto, Speier, Torlakson, Vasconcellos, Vincent NOES: Ackerman, Battin, Brulte, Haynes, Johannessen, Knight, Margett, McClintock, Monteith, Morrow, 011er, Poochigian ASSEMBLY FLOOR 53 -24, 9/13/01 - See last page for vote SUBJECT I Redevelopment: .indebtedness . SOURCE Author DIGEST This bill allows, under specified circumstances, redevelopment agencies extend deadlines for CONTINUED A SB 211 Page 6 Page 1 of 7 file://C:A DATA \legislation \Cal_SBills\200I \SB 211 Senate Bill -Bill Analysis.htm 1/3/2002 SB 211 Senate Bill -Bill Analysis effectiveness of the redevelopment plan and for receiving tax increment revenue. (See Analysis for specifics). Assembly amendments , add a provision disallowing an RDA from dissolving if housing requirements have not been met or if an "excess surplus" of funds remains, add reporting requirements, and incorporate changes to be operative if AB 637 and this bill are both enacted on or before January 1, 2002, make technical changes and add a co- author. Allows the Redevelopment Agency, the Department of Finance, or the Department of Housing and Community Development to request the Attorney General to participate rather than the Attorney General to review and participate in the amendment process on his own as in the Senate version. ANALYSIS The existing Community Redevelopment Law authorizes the legislative body of a community to adopt an ordinance declaring that there is no further need for a redevelopment agency under prescribed conditions. It also prohibits a redevelopment agency from acting pursuant to a redevelopment plan after a specified time limit on the effectiveness of the plan, except to pay previously incurred indebtedness. This bill prohibits the adoption of an ordinance declaring that there is no further need for an agency if the agency has excess surplus funds or has not completed specified obligations. It authorizes a redevelopment agency that adopted a redevelopment plan on or before December 31, 1993, to amend that plan in accordance with specified procedures to extend its effectiveness to pay indebtedness and receive tax increment revenues with respect to the plan for not more than 10 years, if specified requirements are met, including the issuance of a letter by the Department of Housing and Community Development confirming that the agency has not accumulated an excess surplus in its Low and Moderate Income Housing Fund. This bill authorizes the agency, the Department of Finance, or the Department of Housing and Community Development to request the Attorney General to participate in the amendment process and authorizes the Attorney General to bring a civil action to determine the validity of an adopted amendment. J SB 211 Page 3 This bill: 1. Provides, with respect to redevelopment plans adopted prior to January 1, 1994: A. Agencies must adopt a plan to eliminate the deficit in the Low and Moderate Income Housing Fund in subsequent years as determined by the agency. The Page 2 of 7 file: / /C:A DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Bill Analysis.htm 1/3/2002 SB 211 Senate Bill -Bill Analysis obligations are declared to be an indebtedness of the redevelopment project to which they relate. B. Agencies may extend time limits for redevelopment plan expiration and for receiving tax increment revenues, for purposes of repaying debt used to improve areas of substantial blight, for up to 10 additional years if specified conditions are met. (The current limit on the life of a redevelopment agency plan is January 1, 2009 or 40 years after the plan's original adoption, whichever is later, with an additional 10 years beyond this limit to receive tax increment revenue for paying off debt.) 1. Establishes that the conditions for obtaining the extensions in #lb above include: A. A finding by the agency that significant blight remains and cannot be eliminated without an extension. B. A housing element in compliance with state law. C. Increasing from 208 to 308 the tax increment revenue earmarked to provide low and moderate- income housing. D. Complying with a specified process involving public notice and hearings, and submitting a specified report justifying the time extension to each local affected taxing entity, the Department of Finance (DOF), and the Department of Housing and Community Development (HCD) . 1. Requires HCD to develop a methodology for collecting agency information requesting an extension. N SB 211 Page 4 2. Authorizes the affected taxing entities, DOF, or HCD to request the Attorney General (AG) to review the proposed extension on grounds that significant remaining blight does not exist. 3. Requires the AG to review the report and determine whether or not to participate in the extension process. 4. Authorizes the AG to bring a civil action to determine the validity of the proposed extension. 7. Allows an agency that sells bonds as specified to subordinate up to 16 2/38 of its annual Low and Moderate Income Housing Fund (Fund) deposit obligation to the payment of debt service. If the agency makes that election and in any year the agency has insufficient tax - increment revenue available to pay Page 3 of 7 file://C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Bill Analysis.htm 1/3/2002 SB 211 Senate Bill -Bill Analysis debt service on the bonds to which the funds from the Fund are subordinated, the agency may deposit less than the full 100% of its annual Fund obligation but only to the extent necessary to pay that debt service and in no event will less than 83 1/38 of that obligation be deposited into the Fund. NOTE: Legislation enacted last year, SB 2113 (Burton), Chapter 661, Statutes of 2000, allowed RDAs in San ' Francisco to extend collection of property tax increment, but only for the non - school portion of the increment. FISCAL EFFECT Appropriation: No Fiscal Com.: Yes Local: No Fiscal Impact_(in thousands) Major Provisions 2001 -02 2002 -03 2003 -04 Fund funding in 0 General Annual increased K -12 school SB 211 Page 5 beginning in 2019 -20 the $500 million+ range SUPPORT (Verified 8/31/01) (unable to re- verify at time of writing) California Redevelopment Association (source) California Rural Legal Assistance Foundation Western Center on Law and Poverty League of California Cities Alameda (city) Community Improvement commission Bakersfield Redevelopment Agency Centre City Development Corporation, San Diego Cities of: Long Beach, Palm Desert, Poway, Sacramento, San Diego, Santa Ana, Vista OPPOSITION (Verified 8/31/01) (unable to re- verify at time of writing) Department of Finance Attorney General State Controller California State Association of Counties Californian's United for Redevelopment Education Municipal Officials for Redevelopment Reform Page 4 of 7 file: / /C:\ DATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Bill Analysis.htm 1/3/2002 SB 211 Senate Bill - Bill Analysis Counties of: Los Angeles, San Diego, Santa Clara ARGUMENTS IN SUPPORT According to Senate Local Government Committee analysis, redevelopment is a powerful tool but in some communities physical and economic blight is so persistent and pervasive that it resists the efforts of well- intentioned local officials and well- financed programs. The uniform statewide deadlines set by the Legislature in 1993 just don't fit these situations. Communities need to rid their downtown districts, low- income neighborhoods, and industrial areas of physical and economic blight. This bill gives redevelopment officials the time and money they need to finish the job. ARGUMENTS IN OPPOSITION Department of Finance (DOF) notes the following as their concern: 0 SB 211 Page 0 1. This bill allows RDAs to repeal the time limit on loans, advances and indebtedness without subjecting the extension to a public referendum. 2. There is no guarantee that extending the funding will result in the elimination of blight when a RDA has so far been unsuccessful. 3. It is unclear what the review process would be for the Department of Housing and Community Development, DOF, or the Atorney General, but the new review process could result in significant increases in workload. The California state Association of Counties (CSAC) states concerns that, by encompassing redevelopment plans adopted as recently as 1993, this bill authorizes extensions for plans that are fairly new when it is unclear that their current deadline will not be met. CSAC also believes that this bill's definitions of "significant blight" and "necessary and essential parcels" need to be tightened to provide more objective descriptions. ASSEMBLY FLOOR . AYES: Alquist, Aroner, Calderon, Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Daucher, Diaz, Dutra, Firebaugh, Florez, Frommer, Goldberg, Harman, Havice, Horton, Jackson, Keeley, Kehoe, Koretz, Liu, Longville, Lowenthal, Matthews, Migden, Nakano, Nation, Negrete McLeod, Oropeza, Papan, Pavley, Reyes, Richman, Runner, Salinas, Shelley, Simitian, Steinberg, Strom - Martin, Thomson, Vargas, Washington, Wayne, Wesson, Wiggins, Wright, Hertzberg NOES: Aanestad, Ashburn, Bates, Bogh, Briggs, Bill Campbell, Cox, Dickerson, Hollingsworth, Kelley, La Suer, Leach, Leonard, Leslie, Maddox, Maldonado, Mountjoy, Page 5 of 7 file://C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Bill Analysis.htm 1/3/2002 SB 211 Senate Bill -Bill Analysis Robert Pacheco, Rod Pacheco, Pescetti, Strickland, Wyland, Wyman, Zettel LB:sl 9/25/01 Senate Floor Analyses SUPPORT /OPPOSITION: SEE ABOVE 0 SB 211 Page 7 * * ** END * * ** Page 6 of 7 file: //C:ADATA \legislation \Cal_SBills\2001 \SB 211 Senate Bill - Bill Analysis.htm 1/3/2002 Vote resulted: Yes: Bruesch, Imperial, Clark, Vasquez No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. TAYLOR: Mr. Mayor. I'd like my comments in the minutes. ROBERT KRESS, CITY ATTORNEY: You want it to reflect that you're voting against the measure but you don't want it read in full. TAYLOR: I want my comments in the minutes. KRESS: But you don't want the Ordinance to be read in full. TAYLOR: No. You're correct Mr. Kress. VERBATIM DIALOGUE ENDS. ORDINANCE NO. 822 — AMENDING PART 6 OF THE REDEVELOPMENT PLAN FOR PROJECT AREAS NUMBER 1 BY ELIMINATING THE RESTRICTION ON THE ABILITY OF THE AGENCY TO INCUR DEBT IN PROJECT AREA NO. I — INTRODUCE MOTION BY COUNCILMEMBER VASQUEZ, SECOND BY MAYOR PRO TEM BRUESCH that the Council waive further reading and introduce Ordinance No. 822. Before vote could occur, more discussion ensued. . VERBATIM DIALOGUE STARTS: COUNCILMAN TAYLOR: This law that they're referring to and the pre -,1993 legislation that was enacted... one of the things that we run into with the term limits, there were State Legislators, the Senate and Assembly that were well aware of the problems that were created with the Redevelopment Agencies and how the funding took place for a lot of the project areas. Almost all of those Assemblymembers and Senate members have been replaced by people who have no knowledge of that background that went into these laws or why they were put into place. The way it goes now that... it's the best county in the'world that we live in, but it's becoming such a bureaucratic condition that those that were involved with the struggles that went on to get. those laws, they're no longer in the Legislature. I couldn't say if there is even one... with the six year terms that are put on for the Assembly' and the eight or so years for two terms for the Senate. Because of all the abuses that went on prior to 1993, I can't vote for this one because it's taking away the purpose of the law which was to make the cities and agencies say put your plan CCMIN:01 -08 -02 Page 47 out for five vears and whatever it takes to get your loans, the debt, whatever it takes, but now by wiping out the time limit, it's just wide open again. I have to vote no on this one. MAYOR PRO TEM BRUESCH: Mr. Mayor. As the Ordinance clearly states, the law that was passed maintains two of the time limits. The only time limit that is changed is adding a few years to the ability of the Agency. to incur debt. The other two time limits about getting the program started, the Redevelopment program started and giving the time limit on how long they have to finish that, is still intact. In other words, you cannot keep a Redevelopment Agency going to 150 years. It's still that 20 -year time limit. The only thing that has changed is to add a few years to incur debt.. The reason why that was added was because they realize that, again, Redevelopment is becoming more of a long -term regional approach. To try to incur all your debts within the first 5 or 6 years of your program was just too much a quick time frame for these programs to fully utilize the powers given to them. That's the only reason that we're changing. Irs a minor change in the law that was passed. Limiting the length that the Redevelopment Agencies can exist has not changed. MAYOR IMPERIAL: Call for the question. ROBERT KRESS. CITY ATTORNEY: Once again, the minutes on this item reflect that Mr. Taylor is voting against the measure, but doesn't want it read in full. TAYLOR: That's correct. I've stated my objections against it. V `ERBATIM DIALOGUE ENDS. Vote resulted: Yes: Bruesch, Imperial, Clark, Vasquez No: Taylor Absent: None Abstain: None ")� Mayor declared said motion duly carried and so ordered. At this time, Mayor Imperial introduced Dan Scott, Assistant Fire Chief, Lt. Wayne Wallace, and Henry Lo from Senator Gloria,Romero's office. Il'. CONSENT CALENDAR CC -A REQUEST FROM MEXICAN AMERICAN STUDENT ORGANIZATION CC-13 AUTHORIZATION TO REJECT CLAIM AGAINST THE CITY FROM JOSE A. CORADO ccntm:m -os -oz Page #8 TO: FRANK G. TRIPEPI, CITY MANAGER FROM: MICHAEL D. BURBANK, DIRECTOR OF PARKS AND RECREATI DATE: JANUARY 2, 2002 RE: REQUEST FROM MEXICAN AMERICAN STUDENT ORGANIZATION The San Gabriel High School Mexican American Student Organization (M.A.S.O.) has again requested the use of the Community Center on March 16, 2002, for a Coronation Ball. Mrs. Bacio has requested that their group be allowed to use the facility until midnight. The designated closing time of the Community Center is 11:00 p.m. As a point of information, since they are a youth organization, they will pay a $ 50.00 refundable k Date: !/U r10 a- Agenda Item No. 1z. d' — '4 RES /ORD No. y� Title: VASQUEZ I TAYLOR I CLARK I BRUESCH I IMPERIAL CITY OF RO SEMEAD Roseme / 8838 E. Valley Blvd., ad, CA 91770 APPLICATION FOR USE OF FACILITIES FACILITY Rosemead CommunitY ('enter AREA /ROOM DESI ED 3 and 4 POOL DAY(S) OF WEEK Saturday DATE(S) OF.USE 03 Lem /'02 HOURS:12 Pm TO 12 am PUBLIC ADDRESS SYSTEM: YES X KITCHEN HOURS: 5 :00 om TO 8:00 pm ----------- ------- -- ----- --- --- ------ -- - -. TYPE OF ACTIVITY Dinner /Dance NO ATTENDING 150 NAME OF ORGANIZATION Mesican American Student Organization TITLE MASO NAME OF APPLICANT (PRINT) Ernestine Bacio APPLICANT IS 18 YRS OR OLDER YesX No ADDRESS OF APPLICANT 801 Ramona - San Gabriel High School PHONE: Hom e(626) 288 -52 Street City Zip Code Wor k(626) 308 -22 24 DRIVERS LICENSE NO. 60686743 DATE F-XPIRES /O1 /04 DIAGRAM PAGE COMPLETED: YES X ------------------ --- ---- --- ---- -- - --- ---- --- - - -- CHECK IF EVENT WILL BE OPEN TO: If funds are to be raised, for what P ur p ose. _ — Public/no charge. srhnl arsbjps _Public/by admission of $_ Public /by donation of $_ Percentage of users living in Rosemead _X Members &/or guest at $_ 25% _50% X 75%- --------- -- -- ---- -- ------ ------ - - -- - -- -------------------------------------------------- I hereby certify that I have read and will abide by all rules and regulations of the City. As a duly authorized representative of the sponsoring organization, & on behalf of sponsoring organization, I agree to save, keep and bear harmless the City & all its officers & agents from all damages, cost of expense in law or equity (including costs of suit & expense for legal services) that may at any time arise or be set-up because of damages to property or death or injury to persons received or suffered by any reason of the operation of this organization hereunder, or which may be occasioned by any negligent act or omission to act which amounts to negligence on the part of.- sponsoring organization or any of its agents or employees which results in a dangerous or defective condition of property, or any damages occasioned by an negligent act or ommission to act which amounts to negligence on the part of the City, its agents or employees in favor of either the sponsoring organization, its agents or employees or invitees of said sponsoring organization. APPLICATION MUST BE SUBMITTED A MINIMUM OF 10 WORKING DAYS IN ADVANCE AND CHARGES PAID WITHIN 7 WORKING DAYS OF USE OR APPLICATION WILL BE CANCELLED. Applicants Date /Z / /� / Signature A 1 G i/c C_L -G ------------------------ USE-------- - - ----- - ----------------------- FACILITY SUPERVISOR Is facility available? Ye No_ Date Received /�/QL Date Approved AMOUNT DUE $ DEPOSIT AMT. $ INVOICE NO. F & C Yes_ No OFFICE INFORMATION Date Received 1) 2) Date Amt. Due: of Parks and Recreation Rev 2/14/89 O1-G -M -A OFFICE COPY -1- out for five years and whatever it takes to get your loans, the debt, whatever it takes, but now by wiping out the time limit, it's just wide open again. I have to vote no on this one. MAYOR PRO TEM BRUESCH: Mr. Mayor. As the Ordinance clearly states, the law that was passed maintains two of the time limits. The only time limit that is changed is adding a few years to the ability of the Agency to incur debt. The other two time limits about getting the program started, the Redevelopment program started and giving the time limit on how long they have to finish that, is still intact. In other words, you cannot keep a Redevelopment Agency going to 150 years. It's still that 20 -year time limit. The only thing that has changed is to add a few years to incur debt. The reason why that was added was because they realize that, again, Redevelopment is becoming more of a long -term regional approach. To try to incur all your debts within the first 5 or 6 years of your program was just too much a quick time frame for these programs to fully utilize the powers given to them. That's the only reason that we're changing. It's a minor change in the law that was passed. Limiting the length that the Redevelopment Agencies can'exist has not changed. MAYOR IMPERIAL: Call for the question. ROBERT KRESS, CITY ATTORNEY: Once again, the minutes on this item reflect that Mr. Taylor is voting against the measure, but doesn't want it read in full. TAYLOR: That's correct. I've stated my objections against it. VERBATIM DIALOGUE ENDS Vote resulted: Yes: Bruesch, Imperial, Clark, Vasquez No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. At this time, Mayor Imperial introduced Dan Scott, Assistant Fire Chief, Lt. Wayne Wallace, and Henry Lo from Senator Gloria Romero's office. IV. CONSENT CALENDAR **�CC -A REQUEST FROM MEXICAN AMERICAN STUDENT ORGANIZATION. CC -B AUTHORIZATION TO REJECT CLAIM AGAINST THE CITY FROM JOSE A. CORADO pages :m -ox -oz Page NH CC -C AUTHORIZATION TO ATTEND .AMERICAN PLANNING ASSOCIATION .ANNUAL CONFERENCE — APRIL 13-14,2002, CHICAGO CC -D AUTHORIZATION TO ATTEND LEAGUE OF CALIFORNIA CITIES CITY MANAGER'S DEPARTMENT MEETING, FEBRUARY 13-15,2002, CORONADO. CC -E AUTHORIZATION TO ATTEND THE LEAGUE OF CITIES EMPLOYEE RELATIONS INSTITUTE, JANUARY 24 -25, 2002, NEWPORT BEACH CC -F APPROVAL OF CONCESSION STAND LICENSE AGREEMENT — ROSEMEARYOUTH ASSOCIATION MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ that the Council approve the aforementioned items on the Consent Calendar. Vote resulted: Yes: Bruesch, Taylor, Imperial, Clark, Vasquez No: None Absent: None Abstain: None he Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION - None VI. STATUS REPORTS - None VII. MATTERS FROM OFFICIALS VIII. ORAL COMMUNICATIONS FROM THE AUDIENCE - None IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 5:30 p.m. The neat regular meeting will be held on Tuesday, January 22, 2002, at 5:00 p.m. Respectfully submitted: City Clerk APPROVED: W a c. CCMIN:01 -05 -02 Page x9 V TO: HONORABLE MAYOR AND MEMBERS OF ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: JANUARY 3. 2002 SUBJECT: AUTHORIZATION TO ATTEND AMERICAN PLANNING ASSOCIATION NATIONAL CONFERENCE, APRIL 13 -17, 2002, CHICAGO Attached for your consideration is information regarding the upcoming national conference of the American Planning Association (APA). Topics will include land use planning, land use law, growth management, transportation, housing, economic development, infrastructure, smart - growth concepts, and many other municipal planning related issues. RECOMMENDATION It is recommended that the City Council authorize the attendance of the Planning Director. i Y Date: / X r/� ' Agenda Item No. -77— . &:t — C— RES /ORD No VASQUEZ I TAYLOR I CLARK I BRUESCH I IMPERIAL �SQO /C4 0,94 4th�P OFFICE OF THE MAYO Cl� OF CHICAGO RICHARD M. DAZEY MAI April 13, 2002 GREETINGS As Mayor and on behalf of the City of Chicago, I extend my warmest greetings to all those gathered for the American Planning Association National Conference. The American Planning Association (APA) is a nonprofit, Chicago -based national organization representing over 30,000 practicing planners, officials and citizens involved with urban and rural planning issues. The APA is dedicated to encouraging planning that will contribute to public well -being by developing communities and environments that meet the needs of people and society more effectively. This conference brings over 5,000 planners to Chicago and provides them the opportunity to meet and discuss the latest planning and development issues. As the host site for the American Planning Association National Conference, we welcome you to enjoy our city's many attractions. From our world - renowned architecture to our beautiful Lake Michigan shoreline, fine restaurants, clubs and theaters, Chicago offers something for everyone. Best wishes for a successful convention. Sincerely, ay, S 2 1 Chicago is a leader in inner -city housing and downtown revitalization. Through the leader- ship of Mayor Richard Daley and city and regional planners, Chicago is at the cutting edge of a 21st century City Beautiful movement that links street landscaping and parks, trans- portation with year -long city festivals, tourism to cultural amenities, and neighborhood plan- ning with reinvestment. If you haven't visited Chicago in the past five years, you haven't seen the difference that visionary leadership and good planning have made. From a downtown that stays up late to neighborhoods that get up early for coffee, see how this city transformed itself into an economically viable and highly attractive 21st century city. When you attend the 2002 National Planning Conference, you'll have endless opportunities to explore the city of Frank Lloyd Wright, Harold Washington, and Jane Addams. Through tours social events, and just by walk- ing around, you'll discover for yourself America's great second city. Take time to explore Burnham's Grant Park, located two blocks from the conference hotel. Tour the downtown by L train and see fascinating mod- ern architecture and historic Louis Sullivan sky- scrapers. Make plans to discover one of the city's many exciting and accessible neighbor- hoods —dine in Vietnamese or Cambodian neighborhoods, shop in Indian districts, sample German delis and Bosnian bakeries, treat your- self to the soul food of Bronzeville, and spice up the night with Mexican food in Pilsen. Chicago's ethnic museums, shops, restaurants, and nearly endless variety of music await you. Conference Site The conference will be held at the Hyatt Regency Chicago hotel, located at 151 East Wacker Drive. Except for the GIS sessions, the Hyatt Regency Chicago hotel is the headquarters for the opening session, conference.ses. sons, registration, exhibits, awards lun- cheon, and closing session. The Swissood Chicago will host the GIS ses- sions and some receptions. All buses for tours, workshops, and special events will depart from the Hyatt Regency Chicago, unless otherwise indicated. Registration Hours Registration will be held in the Riverside Center West Exhibition Hall at the Hyatt Regency Chicago hotel. Registration hours are Saturday, 7:30 a.m. -6:00 p.m.; Sunday, 7:30 a.m. -6:00 p.m.; Monday and Tuesday, 7:30 a.m. -5:00 p.m.; Wednesday, 7:30 a.m. —noon. Registration Scholarships APA is offering 25 conference scholar- ships that reduce the registration fee to $100. To be eligible, you must be a member of APA and earn less than $25,000 a year. For an application, download the form from the APA web - site (www.planning.org), or e -mail mmorrisongplanning.org. Applications must be submitted by January 4, 2002. Recipients will be notified by January 25, 2002, Child Care APA will provide child care for regis- tered participants children for $30 per day regardless of the number of hours or children. For more information e -mail mmurrison ©planning.org. Registration is offered on a first-come, first- served basis. Registration deadline is March 15, 2002. In addition, American Childcare Services, Inc. is offering Adventure Programs for children aged 8 to 15 years. These will be full -day off -site activities. Contact Margot Morrison at 312. 786 -6397 for more information. Arrangements for Persons with Disabilities APA strives to hold meetings that are .accessible to all. Tell us what accom- modations you require to make your participation more enjoyable. If you are in a wheelchair and plan to attend mobile workshops, please contact APA Prior to March 15. Call Margot Morrison at 312- 786 -6397 or e-mail nm iorrison ®p lanning.urg. Continuing Professional Development Program CPDP credits are noted for each conference session and mobile work- shop. CPDP is a voluntary program for AICP members. For more information about CPDF, contact Tun Akers at 202. 872 -0611, APA Office Tours Twenry-five thousand square feet with a lake view: Come visit APA's Chicago office, located on the 16th floor of a vintage office building designed by Daniel'Bumh an. Located only a half, mile from the conference headquarters. Tours will he offered Mondav through Wednesday (April 15 -17) 10:00 a.m. —I 1:30 a.m. Weather and Dress The average high temperature in April is 62 degrees and the average low is 44 degrees. Jackets and sweaters are the roan. There could be some precipita- tion, so bring an umbrella! Remember that meeting rooms are usually cowl so dress in lavers. �CC -C AUTHORIZATION TO ATTEND AMERICAN PLANNING . ASSOCIATION ANNUAL CONFERENCE - APRIL 13 -14, 2002, CHICAGO CC -D AUTHORIZATION TO ATTEND LEAGUE OF CALIFORNIA CITIES CITY MANAGER'S DEPARTMENT MEETING, FEBRUARY 13-15,2002, CORONADO CC -E AUTHORIZATION TO ATTEND THE LEAGUE OF CITIES EMPLOYEE RELATIONS INSTITUTE, JANUARY 24-25,2002, NEWPORT BEACH CC -F APPROVAL OF CONCESSION STAND LICENSE AGREEMENT — ROSEMEAD YOUTH ASSOCIATION MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ that the Council approve the aforementioned items on the Consent Calendar. Vote resulted: Yes: Bruesch, Taylor, Imperial, Clark, Vasquez No: None Absent: None Abstain: None She Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION - None VI. STATUS REPORTS - None VII. MATTERS FROM OFFICIALS VHL ORAL COMMUNICATIONS FROM THE AUDIENCE - None IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 8:30 p.m. The next regular meeting will be held on Tuesday, January 22, 2002, at 8:00 p.m. Respectfully submitted: City Clerk APPROVED: WAR CCMIN:01 -08 -02 Page a9