HomeMy WebLinkAboutAgenda Report - August 7, 2019 C-19AGENDA ITEM c-lq
Crrv or Loor
CouNcrl, CovTMUNICATIoN
TM
AGENDA TITLE:
MEET¡NG DATE:
PREPARED BY:
Receive Report Regarding Communication Pertaining to Senate Bill 5
(Beall/McGuire) Local-State Sustainable lnvestment I ncentive Program
August 7,2019
City Clerk
RECOMMENDED ACT¡ON Receive report regarding communication pertaining to Senate Bill 5
(Beall/McGuire) Local-State Sustainable lnvestment lncentive
Program.
BACKGROUND INFORMAT¡ON: The City received a request for communication from the League of
California Cities regarding Senate Bill (SB) 5 (Beall/McGuire) Local-
State Sustainable lnvestment lncentive Program. There was a need
to send a letter of support in light of a pending hearing.
SB 5 provides the opportunities for communities to access additional tax increment revenues to fund
affordable housing, infrastructure, and economic development projects that advance state and local
priorities, including reducing greenhouse gas emissions, expanding transit oriented development,
addressing poverty, and revitalizing neighborhoods.
The attached letter was sent on July 18,2019. A copy of the text of the bill is attached. This report is
provided for informational purposes only, pursuant to policy.
FISCAL IMPACT Not applicable
FUNDING AVAILABLE: Not applicable
nifer M
City Clerk
APPROVED
n , City Manager
olo
\\cvcfilv01\administration$\Administration\CLERK\Council\COUNCOM\LeagueReceiveReportMaste13.doc
AMENDED IN ASSEMBLY JUNE 17, 2019
AMENDED IN SENATE MAY 24, 2019
AMENDED IN SENATE MAY 21, 2019
AMENDED IN SENATE APRIL 23, 2019
AMENDED IN SENATE APRIL 8, 2019
AMENDED IN SENATE MARCH 21, 2019
AMENDED IN SENATE MARCH 18, 2019
SENATE BILL No. 5
Introduced by Senators Beall, McGuire, and Portantino
(Principal coauthor: Senator Roth)
(Coauthors: Senators Bradford, Caballero, Hueso, Stern, and
Wiener)
(Coauthor: Assembly Member Mullin)
(Coauthors: Assembly Members Carrillo, Kalra, Mullin, Wicks, and
Gabriel)
December 3, 2018
An act to add Section 41202.6 to the Education Code, to add Part 4
(commencing with Section 55900) to Division 2 of Title 5 of, and to
add Division 6 (commencing with Section 62300) to Title 6 of, the
Government Code, and to add Section 97.68.1 to the Revenue and
Taxation Code, relating to local government finance.
legislative counsel’s digest
SB 5, as amended, Beall. Affordable Housing and Community
Development Investment Program.
Revised 7-3-19—See last page.92
Existing property tax law requires the county auditor, in each fiscal
year, to allocate property tax revenue to local jurisdictions in accordance
with specified formulas and procedures, subject to certain modifications.
Existing law requires an annual reallocation of property tax revenue
from local agencies in each county to the Educational Revenue
Augmentation Fund (ERAF) in that county for allocation to specified
educational entities.
Existing law authorizes certain local agencies to form an enhanced
infrastructure financing district, affordable housing authority, transit
village development district, or community revitalization and investment
authority for purposes of, among other things, infrastructure, affordable
housing, and economic revitalization.
This bill would establish in state government the Affordable Housing
and Community Development Investment Program, which would be
administered by the Affordable Housing and Community Development
Investment Committee. The bill would authorize a city, county, city
and county, joint powers agency, enhanced infrastructure financing
district, affordable housing authority, community revitalization and
investment authority, transit village development district, or a
combination of those entities, to apply to the Affordable Housing and
Community Development Investment Committee to participate in the
program and would authorize the committee to approve or deny plans
for projects meeting specific criteria. The bill would also authorize
certain local agencies to establish an affordable housing and community
development investment agency and authorize an agency to apply for
funding under the program and issue bonds, as provided, to carry out
a project under the program.
The bill would require the Affordable Housing and Community
Development Investment Committee to adopt guidelines for plans.
Subject to the Legislature enacting a budget bill for the applicable fiscal
year that specifies the amount for the committee to allocate pursuant
to the program, the bill would require the committee to approve no more
than $200,000,000 per year from July 1, 2021, to June 30, 2026, and
$250,000,000 per year from July 1, 2026, to June 30, 2030, in transfers
from a county’s ERAF for applicants for plans approved pursuant to
this program. This bill would provide that eligible projects include,
among other things, the predevelopment, development, acquisition,
rehabilitation, and preservation of workforce and affordable housing,
certain transit-oriented development, and projects promoting strong
neighborhoods.
92
— 2 — SB 5
The bill would require the Affordable Housing and Community
Development Investment Committee, upon approval of a plan and
subject to specified conditions, to issue an order directing the county
auditor to transfer ad valorem property tax revenue from the county’s
ERAF into the Affordable Housing and Community Development
Investment Fund, which is created by this bill in the treasury of each
county, and allocate moneys in that fund as directed by the committee,
as specified. The bill would require the auditor, if the applicant is an
enhanced infrastructure financing district, affordable housing authority,
affordable housing and community development investment agency,
transit village development district, or community revitalization
investment authority, to transfer to the city or county that created the
authority or district an amount of property tax revenue equal to the
amount approved by the Affordable Housing and Community
Development Investment Committee for that authority or district. The
bill would require the city or county that created the district to, upon
receipt, transfer those funds to the authority or district in an amount
equal to the affordable housing and community development investment
amount for that authority or district. By imposing additional duties on
local officials, the bill would impose a state-mandated local program.
The bill would authorize applicants to use approved amounts to incur
debt or issue bonds or other financing to support an approved project.
The bill also would require each applicant that has received funding
to submit annual reports, as specified, and would require the Affordable
Housing and Community Development Investment Committee to
provide a report to the Joint Legislative Budget Committee, if it approves
funding under the program, that includes certain project information.
Section 8 of Article XVI of the California Constitution sets forth a
formula for computing the minimum amount of revenues that the state
is required to appropriate for the support of school districts and
community college districts for each fiscal year.
This bill would require the Director of Finance to adjust the percentage
of General Fund revenues appropriated for school districts and
community college districts for these purposes in a manner that ensures
that the transfers from a county’s ERAF pursuant to the Affordable
Housing and Community Development Investment Program have no
net fiscal impact upon the total amount of the General Fund revenue
and local property tax revenue allocated to school districts and
community college districts pursuant to Section 8 of Article XVI of the
California Constitution, as specified.
92
SB 5 — 3 —
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares all of the
line 2 following:
line 3 (a) In recent years the Legislature has created several new
line 4 opportunities to use tax increment financing, which include the
line 5 formation of enhanced infrastructure financing districts, affordable
line 6 housing authorities, and community revitalization investment
line 7 authorities. While these new tools can be useful to local agencies,
line 8 they are widely viewed as lacking sufficient financial capacity
line 9 compared to what existed under the former tax increment financing
line 10 tool utilized by community redevelopment agencies.
line 11 (1) Under redevelopment, all of the growth in property tax (tax
line 12 increment) within a project area over a base year, net of mandatory
line 13 pass-through payments, that would otherwise be allocated to cities,
line 14 counties, special districts and school districts was dedicated to
line 15 redevelopment purposes. Under the new tax increment tools,
line 16 however, property tax increment from affected taxing agencies
line 17 other than the initiating city or county can only be dedicated with
line 18 the approval of the affected local agencies.
line 19 (2) While potential local partnerships between cities, counties,
line 20 and special districts involving new economic development tools
line 21 continue to be explored by the state and local governments, a reality
line 22 is that the state and local governments often have other policy and
line 23 budget priorities, and lack incentives to participate.
line 24 (3) The language in the new tax increment laws currently
line 25 prohibit school districts from participating, largely reflecting state
line 26 concerns over potential backfill requirements for school funding
line 27 under the requirements of Proposition 98 of 1988.
92
— 4 — SB 5
line 1 (b) The state shares many policy priorities with local
line 2 governments, including affordable housing and economic
line 3 development, that can be advanced by creating a new infrastructure
line 4 financing tool that would focus on the following:
line 5 (1) Increasing the production of affordable housing available
line 6 to very low, low-, and moderate-income families.
line 7 (2) Expanding transit-oriented development at higher densities.
line 8 (3) Reducing jobs-housing imbalances in areas with high job
line 9 growth.
line 10 (4) Increasing the availability of high-quality jobs through the
line 11 rehabilitation, construction, and maintenance of housing and
line 12 infrastructure.
line 13 (5) Improving the quality of life in neighborhoods and
line 14 disadvantaged communities.
line 15 (6) Incentivizing growth in urban areas, thereby reducing sprawl
line 16 and ensuring that open space is preserved throughout the state.
line 17 (7) Reducing poverty and caseloads of state and county safety
line 18 net support programs by incentivizing the training and hiring of
line 19 affected individuals to jobs where they can be self-supporting.
line 20 (8) Protecting communities dealing with the effects of sea level
line 21 rise, which is one of the most significant threats of climate change.
line 22 (c) The Legislature has declared that the policy priorities listed
line 23 in subdivision (b) are matters of statewide concern. It is therefore
line 24 appropriate that the state and local governments contribute
line 25 financially to the realization of these priorities.
line 26 (d) By allowing local agencies to reduce their contributions to
line 27 their county’s Educational Revenue Augmentation Fund (ERAF)
line 28 to fund affordable housing projects and related infrastructure, the
line 29 state can advance its policy priorities while also protecting funding
line 30 for schools and limiting effects on the state budget. The state’s
line 31 interests can be ensured and protected in the following manner:
line 32 (1) Requiring approval of the newly created Affordable Housing
line 33 and Community Development Investment Committee, to ensure
line 34 that the investment of property taxes otherwise allocated to schools
line 35 through a county’s ERAF are used only for projects that maximize
line 36 state policy benefits while ensuring that an economic analysis
line 37 projects increased property tax revenues for schools in the affected
line 38 territory upon project completion.
line 39 (2) Offering additional incentives to participating counties and
line 40 special districts.
92
SB 5 — 5 —
line 1 (3) Establishing an annual cap on the total affordable housing
line 2 and community development investment amount that may be
line 3 approved to be allocated by the Affordable Housing and
line 4 Community Development Investment Committee, as follows:
line 5 (A) Not to exceed two hundred million dollars ($200,000,000)
line 6 annually between July 1, 2021, and June 30, 2026.
line 7 (B) Not to exceed two hundred fifty million dollars
line 8 ($250,000,000) annually between July 1, 2026, and June 30, 2030.
line 9 (4) Requiring annual reports to the Legislature on the status of
line 10 all projects funded through this program.
line 11 (e) It is the intent of the Legislature that schools and community
line 12 colleges receive no less total funding from General Fund and local
line 13 property tax revenue as a result of the bill.
line 14 (f) It is the intent of the Legislature to have the state provide
line 15 increased funding in an amount that equals reductions in local
line 16 ERAF funds to the point necessary for schools to meet their
line 17 minimum funding guarantee pursuant to existing law.
line 18 (g) It is the intent of the Legislature that local agencies receive
line 19 the same amount of excess ERAF as they would have if the
line 20 program established by this bill were not in effect.
line 21 SEC. 2. Section 41202.6 is added to the Education Code, to
line 22 read:
line 23 41202.6. (a) It is the intent of the Legislature to ensure that
line 24 the program authorized by the Affordable Housing and Community
line 25 Development Investment Program established by Part 4
line 26 (commencing with Section 55900) of Division 2 of Title 5 of the
line 27 Government Code does not affect the amount of funding required
line 28 to be applied for the support of school districts and community
line 29 college districts pursuant to Section 8 of Article XVI of the
line 30 California Constitution.
line 31 (b) The Director of Finance shall adjust “the percentage of
line 32 General Fund revenues appropriated for school districts and
line 33 community college districts” for the purpose of applying paragraph
line 34 (1) of subdivision (b) of Section 8 of Article XVI of the California
line 35 Constitution in a manner that ensures that transfers from a county’s
line 36 Educational Revenue Augmentation Fund authorized by Section
line 37 97.68.1 of the Revenue and Taxation Code shall have no net fiscal
line 38 impact upon the total amount of General Fund revenue and local
line 39 property tax revenue allocated to school districts and community
line 40 college districts pursuant to Section 8 of Article XVI of the
92
— 6 — SB 5
line 1 California Constitution. The Director of Finance shall make this
line 2 adjustment effective with the 2021–22 fiscal year, consistent with
line 3 the start of the grant program pursuant to paragraph (1) of
line 4 subdivision (a) of Section 55906 of the Government Code. The
line 5 Director of Finance shall update the adjustment for subsequent
line 6 increases or decreases in the amount of transfers authorized by the
line 7 Affordable Housing and Community Development Investment
line 8 Program.
line 9 SEC. 3. Part 4 (commencing with Section 55900) is added to
line 10 Division 2 of Title 5 of the Government Code, to read:
line 11
line 12 PART 4. AFFORDABLE HOUSING AND COMMUNITY
line 13 DEVELOPMENT INVESTMENT PROGRAM
line 14
line 15 55900. This part is known and may be cited as the Affordable
line 16 Housing and Community Development Investment Program.
line 17 55901. The Affordable Housing and Community Development
line 18 Investment Program is hereby established to create a local-state
line 19 partnership to reduce poverty and advance other state priorities
line 20 financed, in part, by property tax increment.
line 21 55902. As used in this part, the following terms have the
line 22 following meanings:
line 23 (a) “Affordable housing and community development investment
line 24 amount” is the amount of property tax revenue allocated pursuant
line 25 to Section 97.68.1 of the Revenue and Taxation Code.
line 26 (b) “Applicant” means any entity identified in subdivision (a)
line 27 of Section 55905 that has submitted a plan to the committee
line 28 pursuant to that section.
line 29 (c) “Committee” means the Affordable Housing and Community
line 30 Development Investment Committee established by Section 55904.
line 31 (d) “Plan” means an application for one or more projects that
line 32 is submitted to the committee.
line 33 (e) “Program” means the Affordable Housing and Community
line 34 Development Investment Program established by this part.
line 35 (f) “Project” shall include:
line 36 (1) A project undertaken by a city, county, city or county, joint
line 37 powers authority, enhanced infrastructure financing district,
line 38 affordable housing authority, community revitalization and
line 39 investment authority, affordable housing and community
92
SB 5 — 7 —
line 1 development investment agency, or a transit village development
line 2 district.
line 3 (2) A transit priority project that meets the requirements of
line 4 subdivision (d) of Section 65470.
line 5 (g) “Skilled and trained workforce” has the same meaning as
line 6 set forth in Chapter 2.9 (commencing with Section 2600) of Part
line 7 1 of Division 2 of the Public Contract Code.
line 8 (h) “Transit Priority Project Program” has the same meaning
line 9 as contained in Section 65470.
line 10 55903. (a) (1) Funding allocated to the program shall be used
line 11 to support a plan that includes affordable housing. Subject to
line 12 paragraph (2), eligible uses of this funding include:
line 13 (A) Predevelopment, development, acquisition, rehabilitation,
line 14 and preservation of affordable housing, as provided in subdivision
line 15 (b). For purposes of this section, the term “affordable housing”
line 16 means housing affordable to households earning under 120 percent
line 17 of area median income.
line 18 (B) Transit-oriented development for the purpose of developing
line 19 or facilitating the development of higher density uses within close
line 20 proximity to transit stations that will increase public transit
line 21 ridership and contribute to the reduction of vehicle miles traveled
line 22 and greenhouse gas emissions. Fiscal incentives shall be offered
line 23 to offset local community impacts associated with greater densities.
line 24 (C) Infill development to assist in the new construction and
line 25 rehabilitation of infrastructure that supports high-density,
line 26 affordable, and mixed-income housing in locations designated as
line 27 infill, including, but not limited to, any of the following:
line 28 (i) Park creation, development, or rehabilitation to encourage
line 29 infill development.
line 30 (ii) Water, sewer, or other public infrastructure costs associated
line 31 with infill development.
line 32 (iii) Transportation improvements related to infill development
line 33 projects.
line 34 (iv) Traffic mitigation.
line 35 (D) Promoting strong neighborhoods through support of local
line 36 community planning and engagement efforts to revitalize and
line 37 restore neighborhoods, including repairing infrastructure and parks,
line 38 rehabilitating and building housing and public facilities, promoting
line 39 public-private partnerships, supporting small businesses and job
line 40 growth for affected residents.
92
— 8 — SB 5
line 1 (E) Protecting communities dealing with the effects of climate
line 2 change, including, but not limited to, sea level rise, wildfires,
line 3 seismic safety, and flood protection. Eligible projects include the
line 4 construction, repair, replacement, and maintenance of infrastructure
line 5 related to protecting communities from climate change.
line 6 (F) The acquisition, construction, or rehabilitation of land or
line 7 property pursuant to eligible uses of funding specified in
line 8 subparagraphs (A) to (E), inclusive.
line 9 (2) Eligible uses allocated to an applicant under the program
line 10 shall be limited to those uses described in subparagraphs (A) to
line 11 (C), inclusive, of paragraph (1) if the applicant has taken any
line 12 action, whether by the legislative body of the applicant or the
line 13 electorate exercising its local initiative or referendum power, that
line 14 has any of the following effects:
line 15 (A) Established or implemented any provision that:
line 16 (i) Limits the number of land use approvals or permits necessary
line 17 for the approval and construction of housing that will be issued or
line 18 allocated within all or a portion of the applicant.
line 19 (ii) Acts as a cap on the number of housing units that can be
line 20 approved or constructed either annually or for some other time
line 21 period.
line 22 (iii) Limits the population of the applicant.
line 23 (B) Imposes a moratorium or enforces an existing moratorium
line 24 on housing development, including mixed-use development, within
line 25 all or a portion of the jurisdiction of the applicant, except pursuant
line 26 to a zoning ordinance that complies with the requirements of
line 27 Section 65858.
line 28 (C) Requires voter approval of any updates to the applicant’s
line 29 housing element to comply with Article 10.6 (commencing with
line 30 Section 65580) of Chapter 3 of Division 1 of Title 7, or any
line 31 rezoning of sites or general plan amendment to comply with an
line 32 updated housing element or Section 65863.
line 33 (D) Changes the zoning of a parcel or parcels of property to a
line 34 less intensive use or reduces the intensity of land use within an
line 35 existing zoning district below what was allowed under the general
line 36 plan land use designation and zoning ordinances of the applicant
line 37 in effect on January 1, 2018. For purposes of this subparagraph,
line 38 “less intensive use” includes, but is not limited to, reductions to
line 39 height, density, floor area ratio, or new or increased open space
92
SB 5 — 9 —
line 1 or lot size requirements, for property zoned for residential use in
line 2 the applicant’s general plan or other planning document.
line 3 (b) At least 50 percent of the funding provided pursuant to the
line 4 program and at least 50 percent of the funding of each plan shall
line 5 be allocated according to subparagraph (A) of paragraph (1) of
line 6 subdivision (a), to be used as follows:
line 7 (1) At least 80 percent of the funds subject to this subdivision
line 8 shall be used to provide rental and owner-occupied housing for
line 9 low-income households with an annual income equal to or less
line 10 than 80 percent of the area median income, subject to the following:
line 11 (A) Funds used for rental housing shall have average
line 12 property-level affordability at or below the maximum level
line 13 established by the California Tax Credit Allocation Committee to
line 14 be eligible for low-income housing tax credits at the percentage
line 15 prescribed in accordance with Section 42(b)(1)(B)(ii) of the Title
line 16 26 of the United States Code, relating to method of prescribing
line 17 percentages.
line 18 (B) Funds used for owner-occupied housing shall not exceed
line 19 20 percent of the funds used for purposes of this paragraph.
line 20 (2) No more than 20 percent of the funds subject to this
line 21 subdivision may be used for the production of moderate-income
line 22 housing for households with an annual income greater than 80
line 23 percent, but no more than 120 percent, of the area median income.
line 24 (3) The rent or sales price of any housing assisted with funds
line 25 subject to this subdivision shall be in the following amounts:
line 26 (A) For housing for low-income households with an annual
line 27 income equal to or less than 80 percent of the area median income,
line 28 an amount that is at least 10 percent below the prevailing rent or
line 29 sales price for the region.
line 30 (B) For housing for moderate-income households with greater
line 31 than 80 percent, but no more than 120 percent, of the area median
line 32 income, an amount that is at least 20 percent below the prevailing
line 33 rent or sales price for the region.
line 34 (4) (A) Except as otherwise provided in subparagraph (B),
line 35 housing assisted with funds subject to this subdivision shall be
line 36 subject to a recorded affordability restriction for the following
line 37 time periods:
line 38 (i) For rental housing, at least 55 years, except as otherwise
line 39 provided.
line 40 (ii) For owner-occupied housing, at least 45 years.
92
— 10 — SB 5
line 1 (B) Notwithstanding subparagraph (A), self-help housing
line 2 assisted with funds subject to this subdivision shall be subject to
line 3 a recorded affordability restriction for at least 15 years.
line 4 (c) (1) Except as provided in paragraph (2), any plan approved
line 5 pursuant to the program shall be subject to a recorded affordability
line 6 restriction that requires the project or projects to include a
line 7 minimum of 30 percent of the total number of housing units to be
line 8 available at an affordable rent or affordable housing cost to, and
line 9 occupied by, households earning below 120 percent of the area
line 10 median income for at least 55 years.
line 11 (2) If the local agency has adopted a local ordinance that requires
line 12 that greater than 30 percent of the units in a project be dedicated
line 13 to housing affordable to households making below 120 percent of
line 14 the area median income, that ordinance shall apply.
line 15 (d) The affordable housing and community development
line 16 investment amount shall not be used to subsidize the construction
line 17 of market rate units. It is the intent of the Legislature to preserve
line 18 the incentives for affordable housing provided by existing density
line 19 bonus law.
line 20 (e) (1) At least 12 percent of the overall funding for the program
line 21 shall be set aside for counties with populations of less than 200,000.
line 22 Of this amount, 2 percent shall be set aside to provide technical
line 23 assistance for counties with populations of less than 200,000, which
line 24 shall not be considered administrative costs for purposes of a plan.
line 25 (2) Notwithstanding subdivision (a) of Section 55906, to the
line 26 extent that all funds set aside in one year for counties with
line 27 populations of less than 200,000 are not dedicated to plans
line 28 approved by the committee, the amount of funds not dedicated
line 29 shall be available to counties with populations of less than 200,000
line 30 residents in the following year pursuant to this program.
line 31 (f) All projects approved pursuant to the program shall be
line 32 considered public work for purposes of Chapter 1 (commencing
line 33 with Section 1720) of Part 7 of Division 2 of the Labor Code.
line 34 Code, regardless of whether an exemption under Section 1720 of
line 35 the Labor Code applies to the project.
line 36 55904. (a) The Affordable Housing and Community
line 37 Development Investment Committee is hereby established and
line 38 shall be comprised of the following:
line 39 (1) The Chair of the Strategic Growth Council, or the chair’s
line 40 designee.
92
SB 5 — 11 —
line 1 (2) The Chair of the California Housing Finance Agency, or the
line 2 chair’s designee.
line 3 (3) The Chair of California Workforce Investment Board, or
line 4 the chair’s designee.
line 5 (4) The Director of Housing and Community Development, or
line 6 the director’s designee.
line 7 (5) Two people appointed by the Speaker of the Assembly who
line 8 have knowledge and experience in finance, housing finance,
line 9 housing planning or development, or land use and planning.
line 10 (6) Two people appointed by the Senate Committee on Rules
line 11 who have knowledge and experience in finance, housing finance,
line 12 housing planning or development, or land use and planning.
line 13 (7) One public member appointed by the Joint Legislative
line 14 Budget Committee who has expertise in education finance.
line 15 (b) The committee shall review and approve or deny plans
line 16 received pursuant to Section 55905.
line 17 (c) The Department of Housing and Community Development
line 18 shall provide the technical assistance and administrative support
line 19 necessary for the committee to consider plans.
line 20 (d) Members of the committee shall serve without compensation,
line 21 but shall be reimbursed for actual and necessary expenses incurred
line 22 in connection with the performance of their duties.
line 23 55905. (a) A plan for the affordable housing and community
line 24 development investment amount may be submitted by any of the
line 25 following:
line 26 (1) A city, county, or city and county.
line 27 (2) A joint powers authority formed pursuant to Chapter 5
line 28 (commencing with Section 6500) of Division 7 of Title 1 that is
line 29 composed of entities that may submit a plan pursuant to this
line 30 subdivision.
line 31 (3) An enhanced infrastructure financing district established
line 32 pursuant to Chapter 2.99 (commencing with Section 53398.50) of
line 33 Part 1 of Division 2 of Title 5.
line 34 (4) An affordable housing authority established pursuant to
line 35 Division 5 (commencing with Section 62250) of Title 6.
line 36 (5) A community revitalization and investment authority
line 37 established pursuant to Division 4 (commencing with Section
line 38 62000) of Title 6.
92
— 12 — SB 5
line 1 (6) An affordable housing and community development
line 2 investment agency established pursuant to Division 6 (commencing
line 3 with Section 62300) of Title 6.
line 4 (7) A transit village development district established pursuant
line 5 to Article 8.5 (commencing with Section 65460) of Chapter 3 of
line 6 Division 1 of Title 7.
line 7 (b) A plan to participate in the program may be submitted to
line 8 the committee and shall include all of the following information:
line 9 (1) A description of the proposed project or projects to be
line 10 completed by the applicant pursuant to the plan and the funding
line 11 amount necessary for each year the applicant requests funding
line 12 pursuant to the program. The applicant may request funding for
line 13 no more than 30 years for each project included in the plan.
line 14 (2) Information necessary to demonstrate that each project
line 15 proposed by the plan complies with all of the statutory requirements
line 16 of any statutory authorization pursuant to which the project is
line 17 proposed.
line 18 (3) Certification that any low- and moderate-income housing
line 19 or other projects or portions of other projects that receive funding
line 20 from the program will comply with paragraph (8) of subdivision
line 21 (a) of Section 65913.4.
line 22 (4) A strategy for outreach to, and retention of, women, minority,
line 23 disadvantaged youth, formerly incarcerated, and other
line 24 underrepresented subgroups in coordination with the California
line 25 Workforce Investment Board and local boards, to increase their
line 26 representation and employment opportunities in the building and
line 27 construction trades.
line 28 (5) For each project identified in the plan, a requirement that
line 29 no eviction has been made on any project site within the last 10
line 30 years, and protections to avoid displacement of individuals affected
line 31 by the project.
line 32 (6) A requirement that any project included in the plan would
line 33 not require the demolition of any of the following types of housing:
line 34 (A) Housing that is subject to a recorded covenant, ordinance,
line 35 or law that restricts rents to levels affordable to persons and
line 36 families of moderate, low, or very low income.
line 37 (B) Housing that is subject to any form of rent or price control
line 38 through a public entity’s valid exercise of its police power.
line 39 (C) Housing that has been occupied by tenants within the past
line 40 10 years.
92
SB 5 — 13 —
line 1 (7) A requirement that the site was not previously used for
line 2 housing that was occupied by tenants that was demolished within
line 3 10 years before the applicant submits a plan pursuant to this
line 4 section.
line 5 (8) A requirement that the development of the project or projects
line 6 included in the plan would not require the demolition of a historic
line 7 structure that was placed on a national, state, or local historic
line 8 register.
line 9 (9) A requirement that the project or projects included in the
line 10 plan would not contain present or former tenant-occupied housing
line 11 units that will be, or were, subsequently offered for sale to the
line 12 general public by the subdivider or subsequent owner of the
line 13 property.
line 14 (10) An economic and fiscal analysis, paid for by the applicant
line 15 and prepared by the applicant or an individual or entity approved
line 16 by the committee that includes the following information as it
line 17 pertains to the plan:
line 18 (A) The estimated cost of providing services or facilities for
line 19 each project included in the plan.
line 20 (B) The estimated revenue available to provide services or
line 21 facilities for each project included in the plan.
line 22 (C) Identification of the taxing entities that are participating in
line 23 the financing of each project included in the plan through the
line 24 pledge of an amount equal to the entity’s incremental share of the
line 25 property tax or other means.
line 26 (D) Identification of the property tax, sales tax, and other public
line 27 funding available to invest in each project included in the plan or
line 28 the services or facilities needed by each project included in the
line 29 plan, as proposed, including, but not limited to, information from
line 30 the county auditor describing how the county or counties where
line 31 the applicant is from has historically distributed its educational
line 32 revenue augmentation fund revenue to schools and local agencies.
line 33 (E) Identification of the funding and financing methods that
line 34 will be used by each project included in the plan, including whether
line 35 the applicant intends to issue bonds that will be repaid from
line 36 property tax increment.
line 37 (F) The affordable housing and community development
line 38 investment amount requested by the applicant to complete each
line 39 project included in the plan or the services or facilities needed by
line 40 each project included in the plan, as proposed, and the proposed
92
— 14 — SB 5
line 1 date on which the annual allocation of the affordable housing and
line 2 community development investment amount will terminate.
line 3 (G) The amount of administrative costs associated with the plan.
line 4 The plan may set aside not more than 5 percent of the total
line 5 affordable housing and community development investment
line 6 amount requested in the plan for administrative costs.
line 7 (c) (1) The Except as provided in paragraph (3), the applicant
line 8 shall certify that a skilled and trained workforce will be used to
line 9 complete the project if the plan is approved.
line 10 (2) If the applicant has certified that a skilled and trained
line 11 workforce will be used to complete the project or projects and the
line 12 plan is approved, the following shall apply:
line 13 (A) The applicant shall require every contractor and
line 14 subcontractor at every tier performing work on the project to
line 15 provide the applicant with an enforceable commitment that the
line 16 contractor or subcontractor will individually use a skilled and
line 17 trained workforce to complete the project.
line 18 (B) Every contractor and subcontractor shall individually use
line 19 a skilled and trained workforce to complete the project.
line 20 (C) The applicant shall be considered an awarding body for
line 21 purposes of Section 2602 of the Public Contract Code.
line 22 (3) This subdivision shall not apply to projects that meet the
line 23 following criteria ____. a housing project that meets any of the
line 24 following criteria:
line 25 (A) One hundred percent of the housing project’s units, exclusive
line 26 of any legally required manager’s unit or units, are affordable to
line 27 households earning 80 percent or below of the area median
line 28 income.
line 29 (B) The housing project consists of 25 units or less.
line 30 (C) The housing project is located in a county with a population
line 31 of 100,000 or less.
line 32 (d) (1) Within 30 days of receipt of a plan pursuant to this
line 33 section, the committee shall provide the applicant with a written
line 34 statement identifying any questions about the plan.
line 35 (2) If the committee denies approval of the plan, the committee
line 36 shall, not more than 30 days following the date the committee has
line 37 issued a decision, provide the applicant with a written statement
line 38 explaining the reasons why the plan was denied.
92
SB 5 — 15 —
line 1 (3) Subject to subdivision (e), the committee shall develop a
line 2 rubric to determine which plan to approve. The rubric shall give
line 3 priority to plans based on, but not limited to, the following factors:
line 4 (A) The number of housing units created.
line 5 (B) The share of housing units to be constructed that are
line 6 available to individuals with an area median income below 120
line 7 percent.
line 8 (C) The share of housing units to be constructed that are
line 9 available to individuals with an area median income below 80
line 10 percent.
line 11 (D) The share of housing units to be constructed that are
line 12 available to individuals with an area median income below 50
line 13 percent.
line 14 (E) The level of local, state, and federal funds that will be
line 15 dedicated toward the projects included in the plan, including, but
line 16 not limited to, tax credits, in-kind transfers, personnel costs and
line 17 services, and land.
line 18 (F) Whether the applicant adopts plans that streamline
line 19 development, including the following:
line 20 (i) Plans adopted through a workforce housing opportunity zone
line 21 (Article 10.10 (commencing with Section 65620) of Chapter 3 of
line 22 Division 1 of Title 7) or a housing sustainability district (Chapter
line 23 11 (commencing with Section 66200) of Division 1 of Title 7).
line 24 (ii) Plans to streamline development funded by the Building
line 25 Homes and Jobs Act (Chapter 2.5 (commencing with Section
line 26 50470) of Part 2 of Division 31 of the Health and Safety Code).
line 27 (iii) Other local measures adopted to reduce development costs,
line 28 including, but not limited to, accelerating housing approvals,
line 29 reducing the average time for issuing a conditional use or other
line 30 development permit to less than one year, reducing fees imposed
line 31 in connection with the approval of accessory dwelling units, and
line 32 increasing density near transit.
line 33 (e) Notwithstanding any other provision of this part, the
line 34 committee may approve a plan submitted to it pursuant to this
line 35 section only if it finds all of the following:
line 36 (1) The conditions specified in paragraph (1) of subdivision (a)
line 37 of Section 55906 have been satisfied for the applicable fiscal year.
line 38 (2) (A) Except as otherwise provided in subparagraph (B), the
line 39 applicant will provide matching resources, including, but not
92
— 16 — SB 5
line 1 limited to, financial, in-kind land dedication, or public-private
line 2 funds, for the state investment in the program.
line 3 (B) This paragraph shall not apply in the case of an applicant
line 4 located in a rural area of the state.
line 5 (3) (A) If applicable, the applicant has a housing element that
line 6 the Department of Housing and Community Development has
line 7 determined to be in substantial compliance with Article 10.6
line 8 (commencing with Section 65580) of Chapter 3 of Division 1 of
line 9 Title 7, pursuant to Section 65585.
line 10 (B) An applicant subject to this paragraph shall annually submit
line 11 its housing element to the Department of Housing and Community
line 12 Development for review to ensure that its housing element remains
line 13 in substantial compliance with state law. The Department of
line 14 Housing and Community Development shall certify to the
line 15 committee whether the housing element is in substantial
line 16 compliance and whether any rezoning of sites required by law,
line 17 including, but not limited to, Sections 65583, 65583.2, and 65863,
line 18 have been completed.
line 19 (4) If applicable, the applicant has not been found to have
line 20 violated the Housing Accountability Act (Section 65589.5) or the
line 21 Density Bonus Law (Chapter 4.3 (commencing with Section
line 22 65915) of Division 1 of Title 7) within the following time periods:
line 23 (A) Until January 1, 2024, the applicant has not been found to
line 24 have violated the provisions specified in this paragraph on or after
line 25 January 1, 2019.
line 26 (B) On and after January 1, 2024, the applicant has not been
line 27 found to have violated the provisions specified in this paragraph
line 28 within the five years preceding the date of the submission of the
line 29 applicant’s plan pursuant to this section.
line 30 55906. (a) The committee shall adopt annual priorities
line 31 consistent with the objectives set forth in Section 55903 and shall
line 32 adhere to the following funding schedule:
line 33 (1) (A) Commencing January 1, 2021, the committee may only
line 34 approve a plan for funding pursuant to Section 55905 if the
line 35 Legislature enacts a budget bill for the applicable fiscal year that
line 36 specifies the amount available for the committee to allocate
line 37 pursuant to the program, subject to the limits of this section.
line 38 (B) Nothing in this paragraph shall affect or have any financial
line 39 impact upon previously approved funding pursuant to the program.
92
SB 5 — 17 —
line 1 (2) Subject to paragraph (1), for the five-year period
line 2 commencing July 1, 2021, and ending June 30, 2026, the committee
line 3 may approve no more than two hundred million dollars
line 4 ($200,000,000) in funding in any year for plans approved pursuant
line 5 to the program.
line 6 (3) Subject to paragraph (1), for the four-year period
line 7 commencing July 1, 2026, and ending June 30, 2030, the committee
line 8 may approve no more than two hundred fifty million dollars
line 9 ($250,000,000) in funding in any year for plans approved pursuant
line 10 to the program.
line 11 (4) The Legislature Legislature, by statute, may direct the
line 12 committee to suspend consideration of plans submitted pursuant
line 13 to Section 55903 in any fiscal year in which the Legislature passes
line 14 a bill described in Section 22 of Article XVI of the California
line 15 Constitution. Nothing in this paragraph shall affect or have any
line 16 financial impact upon previously approved funding pursuant to
line 17 this program.
line 18 (5) The Legislature Legislature, by statute, may direct the
line 19 committee to suspend consideration of plans submitted pursuant
line 20 to Section 55903 in any fiscal year in which the Legislature passes
line 21 a bill described in Section 8 of Article XVI of the California
line 22 Constitution. Nothing in this paragraph shall affect or have any
line 23 financial impact upon previously approved funding pursuant to
line 24 this program.
line 25 (b) The annual amounts dedicated to individual approved
line 26 projects shall be allocated based on the schedule of funding
line 27 included in the plan that includes the project, unless the committee
line 28 decides to allocate a different level of funding or change the
line 29 number of years that the project is to receive funding pursuant to
line 30 the program in accordance with the plan approved pursuant to
line 31 subdivision (d).
line 32 (c) The committee shall adopt guidelines to explain how
line 33 geographic equity will be maintained in the approval of plans
line 34 pursuant to this program.
line 35 (d) (1) The committee shall approve or deny a plan submitted
line 36 pursuant to Section 55905 upon both of the following:
line 37 (A) Receipt of the information required to be submitted pursuant
line 38 to paragraphs (1) through (4) of subdivision (b) of Section 55905.
92
— 18 — SB 5
line 1 (B) A determination that the affordable housing and community
line 2 development investment amount requested is consistent with the
line 3 guidelines adopted pursuant to subdivision (b).
line 4 (2) The approval shall state the amount of the affordable housing
line 5 and community development investment amount approved and
line 6 the date upon which the affordable housing and community
line 7 development investment amount terminates.
line 8 (e) The committee may require the applicant to reimburse it for
line 9 the reasonable cost incurred to review the plan to participate in
line 10 the program.
line 11 (f) The committee shall review, and may approve or deny, any
line 12 changes to a plan submitted by the applicant.
line 13 55907. (a) Upon approval of a plan pursuant to subdivision
line 14 (d) of Section 55906, and subject to paragraph (1) of subdivision
line 15 (a) of Section 55906, the committee shall issue an order directing
line 16 the county auditor to transfer an amount of ad valorem property
line 17 tax revenue pursuant to Section 97.68.1 of the Revenue and
line 18 Taxation Code in an amount equal to the annual affordable housing
line 19 and community development investment amount approved by the
line 20 committee.
line 21 (b) The revenues allocated to an applicant pursuant to Section
line 22 97.68.1 of the Revenue and Taxation Code may be used for the
line 23 purposes set forth in Section 55903.
line 24 (c) The applicant may use the additional revenue received
line 25 pursuant to Section 97.68.1 of the Revenue and Taxation Code to
line 26 incur debt or issue bonds or other financing to support the project
line 27 or projects included in the plan.
line 28 55908. (a) On or before July 1, 2022, and annually thereafter,
line 29 each applicant that has received financing pursuant to the program
line 30 for any fiscal year shall provide a report to the committee that
line 31 includes all of the following information for the previous fiscal
line 32 year:
line 33 (1) The affordable housing and community development
line 34 investment amount that the county auditor reallocated to the
line 35 applicant pursuant to Section 97.68.1 of the Revenue and Taxation
line 36 Code.
line 37 (2) The purposes for which that reallocated money was used,
line 38 including the number of housing units constructed and at which
line 39 income level.
92
SB 5 — 19 —
line 1 (3) The actions taken during the prior fiscal year to implement
line 2 the project.
line 3 (4) The total amount of funds expended for planning and general
line 4 administrative costs.
line 5 (b) Notwithstanding Section 10231.5, on or before March 1,
line 6 2021, and annually thereafter, if the committee has approved
line 7 funding pursuant to the program, the committee shall provide a
line 8 report to the Joint Legislative Budget Committee that includes all
line 9 of the following information for the preceding fiscal year:
line 10 (1) The name, location, and general description, including the
line 11 number of housing units constructed and at which income level,
line 12 of each project that received an affordable housing and community
line 13 development investment amount pursuant to this program.
line 14 (2) The total amount of money that county auditors reallocated
line 15 from affordable housing and community development investment
line 16 funds pursuant to the program in the previous fiscal year.
line 17 (3) An evaluation of the value of the state’s investment through
line 18 the funding provided by this program as measured by a net revenue
line 19 increase to the General Fund and progress towards achieving the
line 20 purposes and intent of the program.
line 21 (c) The committee shall develop a corrective action plan for
line 22 noncompliance with the requirement of this part.
line 23 55909. (a) If, based on annual reports submitted to the
line 24 committee pursuant to Section 55908, the committee determines
line 25 that any of the following has occurred, the committee shall direct
line 26 the applicant to develop a corrective action plan based on
line 27 recommendations made by the committee:
line 28 (1) The applicant is not on track to produce the number of
line 29 housing units included in the plan.
line 30 (2) The applicant is not on track to spend at least 50 percent of
line 31 plan funds on affordable housing, as required by subdivision (b)
line 32 of Section 55903.
line 33 (3) The applicant is on track to exceed 5 percent of the
line 34 administrative limit.
line 35 (4) The applicant is found to have used funding provided by the
line 36 program for purposes not authorized by the act.
line 37 (5) The applicant is found to have used funds to subsidize market
line 38 rate housing.
92
— 20 — SB 5
line 1 (6) The applicant has violated antidisplacement provisions
line 2 pursuant to paragraph (6), (7), (8), or (9) of subdivision (a) of
line 3 Section 55905.
line 4 (7) The applicant is not on track to complete all of the projects
line 5 included in the plan according to the timeline included in the plan.
line 6 (b) The applicant shall have one year from the date that the
line 7 committee directed the applicant to develop a corrective action
line 8 plan.
line 9 (c) The committee shall issue a finding that the applicant is out
line 10 of compliance with the program if the committee finds either of
line 11 the following apply:
line 12 (1) The applicant has not provided an adequate corrective action
line 13 plan to the committee within one year of the date the committee
line 14 directed the applicant to develop a corrective action plan.
line 15 (2) The annual report provided to the committee pursuant to
line 16 Section 55908 does not demonstrate that the applicant has taken
line 17 adequate steps to implement the corrective action plan that was
line 18 provided to the committee within one year of the date the
line 19 committee directed the applicant to develop a corrective action
line 20 plan.
line 21 (d) If the committee finds that the applicant is out of compliance
line 22 with the program, the committee shall direct the auditor to stop
line 23 transferring moneys from the county’s ERAF pursuant to the
line 24 program under Section 97.68.1 of the Revenue and Taxation Code,
line 25 and prohibit the applicant from applying for additional funds for
line 26 this program for a period of five years.
line 27 (e) If an applicant is found to be out of compliance with the
line 28 program, the applicant shall be ineligible to apply for other state
line 29 grant programs for a period of five years.
line 30 SEC. 4. Division 6 (commencing with Section 62300) is added
line 31 to Title 6 of the Government Code, to read:
line 32
line 33 DIVISION 6. AFFORDABLE HOUSING AND COMMUNITY
line 34 DEVELOPMENT INVESTMENT AGENCIES
line 35
line 36 62300. As used in this division:
line 37 (a) “Agency” means an affordable housing and community
line 38 development investment agency created pursuant to this division.
line 39 (b) “Affordable housing and community development
line 40 investment amount” means the amount approved by the Affordable
92
SB 5 — 21 —
line 1 Housing and Community Development Investment Committee
line 2 pursuant to Part 4 (commencing with Section 55900) of Division
line 3 2 of Title 5 and allocated to an agency pursuant to Section 97.68.1
line 4 of the Revenue and Taxation Code.
line 5 (c) “Program” means the Affordable Housing and Community
line 6 Development Investment Program established pursuant to Part 4
line 7 (commencing with Section 55900) of Division 2 of Title 5.
line 8 (d) “Project” has the same meaning as defined in Section 55902.
line 9 (e) “Plan area” means the area that includes the territory
line 10 described in any plan submitted by an agency pursuant to
line 11 subdivision (b) of Section 55905.
line 12 62302. (a) An affordable housing and community development
line 13 investment agency created pursuant to this division shall be a
line 14 public body, corporate and politic, with jurisdiction to carry out
line 15 one or more projects within a project area. The agency shall have
line 16 only those powers and duties specifically set forth in Section
line 17 62304.
line 18 (b) (1) Subject to paragraphs (2) and (3), an agency may be
line 19 created in any one of the following ways:
line 20 (A) A city, county, or city and county may adopt a resolution
line 21 creating an agency. The composition of the governing board shall
line 22 be comprised as set forth in subdivision (c).
line 23 (B) Any of the following entities may create an authority by
line 24 entering into a joint powers agreement pursuant to Chapter 5
line 25 (commencing with Section 6500) of Division 7 of Title 1:
line 26 (i) A city.
line 27 (ii) A county.
line 28 (iii) A city and county.
line 29 (iv) A special district, as that term is defined in subdivision (m)
line 30 of Section 95 of the Revenue and Taxation Code.
line 31 (v) Any combination of entities described in clauses (i) through
line 32 (iv), inclusive.
line 33 (2) (A) A school entity, as defined in subdivision (f) of Section
line 34 95 of the Revenue and Taxation Code, shall not participate in an
line 35 agency created pursuant to this division.
line 36 (B) A successor agency, as defined in subdivision (j) of Section
line 37 34171 of the Health and Safety Code, shall not participate in an
line 38 agency created pursuant to this division, and an agency created
line 39 pursuant to this division shall not receive any portion of the
92
— 22 — SB 5
line 1 property tax revenues or other moneys distributed pursuant to
line 2 Section 34188 of the Health and Safety Code.
line 3 (3) An agency created by a city or county that created a
line 4 redevelopment agency that was dissolved pursuant to Part 1.85
line 5 (commencing with Section 34170) of Division 24 of the Health
line 6 and Safety Code shall not become effective until the successor
line 7 agency or designated local authority for the former redevelopment
line 8 agency has adopted findings of fact stating all of the following:
line 9 (A) The successor agency has received a finding of completion
line 10 from the Department of Finance pursuant to Section 34179.7 of
line 11 the Health and Safety Code.
line 12 (B) Former redevelopment agency assets that are the subject of
line 13 litigation against the state, where the city or county or its successor
line 14 agency or designated local authority are a named plaintiff, have
line 15 not been or will not be used to benefit any efforts of an agency
line 16 created under this division unless the litigation has been resolved
line 17 by entry of a final judgment by any court of competent jurisdiction
line 18 and any appeals have been exhausted.
line 19 (C) The successor agency has complied with all orders of the
line 20 Controller pursuant to Section 34167.5 of the Health and Safety
line 21 Code.
line 22 (c) (1) The governing board of an agency created pursuant to
line 23 subparagraph (A) of paragraph (1) of subdivision (b) shall be
line 24 appointed by the legislative body of the city, county, or city and
line 25 county that created the agency and shall include three members
line 26 of the legislative body of the city, county, or city and county that
line 27 created the agency and two public members. The appointment of
line 28 the two public members shall be subject to Section 54974. The
line 29 two public members shall live or work within the plan area.
line 30 (2) The governing body of an agency created pursuant to
line 31 subparagraph (B) of paragraph (1) of subdivision (b) shall be
line 32 comprised of a majority of members from the legislative bodies
line 33 of the public agencies that created the agency and a minimum of
line 34 two public members who live or work within the plan area. The
line 35 majority of the board shall appoint the public members to the
line 36 governing body. The appointment of the public members shall be
line 37 subject to Section 54974.
line 38 62304. An agency may do all of the following in order to carry
line 39 out a project:
92
SB 5 — 23 —
line 1 (a) Apply for funding to carry out the project pursuant to the
line 2 program.
line 3 (b) Accept an allocation of property tax revenues, in the form
line 4 of an affordable housing and community development investment
line 5 amount allocated under the program pursuant to Section 97.68.1
line 6 of the Revenue and Taxation Code.
line 7 (c) Issue bonds in accordance with Article 4.5 (commencing
line 8 with Section 53506) and Article 5 (commencing with Section
line 9 53510) of Chapter 3 of Part 1 of Division 2 of Title 5.
line 10 (d) Borrow money, receive grants, or accept financial or other
line 11 assistance or investment from the state or the federal government
line 12 or any other public agency or private lending institution for any
line 13 project within its area of operation. The agency may comply with
line 14 any conditions of a loan or grant received pursuant to this
line 15 subdivision.
line 16 (e) Receive funds allocated to it pursuant to a resolution adopted
line 17 by a city, county, or special district to transfer these funds from a
line 18 source described in subdivision (d), (e), or (f) of Section 53398.75,
line 19 subject to any requirements upon, or imposed by, the city, county,
line 20 or special district as to the use of these funds.
line 21 (f) Acquire and transfer real property.
line 22 (g) Any other act that is necessary to carry out a project in
line 23 accordance with the requirements of the program and the agency’s
line 24 plan submitted pursuant to subdivision (b) of Section 55905.
line 25 SEC. 5. Section 97.68.1 is added to the Revenue and Taxation
line 26 Code, to read:
line 27 97.68.1. Notwithstanding any other provision of law, for each
line 28 fiscal year for which funding for a plan for the county is approved
line 29 under Part 4 (commencing with Section 55900) of Division 2 of
line 30 Title 5 of the Government Code, in allocating ad valorem property
line 31 tax revenue, all of the following shall apply:
line 32 (a) The county auditor shall transfer an amount, equal to the
line 33 countywide affordable housing and community development
line 34 investment amount, from the county’s Educational Revenue
line 35 Augmentation Fund to the county’s Affordable Housing and
line 36 Community Development Investment Fund established pursuant
line 37 to subdivision (b).
line 38 (b) (1) The county auditor shall, except as provided in paragraph
line 39 (2), deposit the countywide affordable housing and community
line 40 development investment amount into the Affordable Housing and
92
— 24 — SB 5
line 1 Community Development Investment Fund, which shall be
line 2 established in the treasury of each county. Moneys in the
line 3 Affordable Housing and Community Development Investment
line 4 Fund shall only be used for plans approved pursuant to Part 4
line 5 (commencing with Section 55900) of Division 2 of Title 5 of the
line 6 Government Code, and shall be allocated to the applicant as
line 7 directed by the committee.
line 8 (2) In the case of an applicant that is an enhanced infrastructure
line 9 financing district, affordable housing authority, community
line 10 revitalization investment authority, affordable housing and
line 11 community development investment agency, or transit village
line 12 development district, the auditor shall allocate an amount from the
line 13 county’s Educational Revenue Augmentation Fund equal to the
line 14 enhanced infrastructure financing district’s, affordable housing
line 15 authority’s, community revitalization investment authority’s,
line 16 affordable housing and community development investment
line 17 agency’s, or transit village development district’s affordable
line 18 housing and community development investment amount to the
line 19 city or county that created the enhanced infrastructure financing
line 20 district, affordable housing authority, community revitalization
line 21 investment authority, affordable housing and community
line 22 development investment agency, or transit village development
line 23 district. The city or county shall, upon receipt, transfer those funds
line 24 to that enhanced infrastructure financing district, affordable housing
line 25 authority, community revitalization investment authority,
line 26 affordable housing and community development investment
line 27 agency, or transit village development district, in an amount equal
line 28 to the affordable housing and community development investment
line 29 amount for that enhanced infrastructure financing district,
line 30 affordable housing authority, community revitalization investment
line 31 authority, affordable housing and community development
line 32 investment agency, or transit village development district.
line 33 (3) The county auditor shall allocate one-half of an amount
line 34 specified in paragraph (1) or (2) on or before January 31 of each
line 35 fiscal year, and the other one-half on or before May 31 of each
line 36 fiscal year.
line 37 (c) For purposes of this section, all of the following shall apply:
line 38 (1) “Affordable housing and community development
line 39 investment amount” for a particular city, county, or city and county
line 40 means the amount approved by the Affordable Housing and
92
SB 5 — 25 —
line 1 Community Development Committee pursuant to Part 4
line 2 (commencing with Section 55900) of Division 2 of Title 5 of the
line 3 Government Code.
line 4 (2) “Countywide affordable housing and community
line 5 development investment amount” means, for any fiscal year, the
line 6 total sum of the amounts described in paragraph (1) for a county
line 7 or a city and county, and each city and county.
line 8 (d) This section shall not be construed to do any of the
line 9 following:
line 10 (1) Reduce any allocations of excess, additional, or remaining
line 11 funds that would otherwise have been allocated to county
line 12 superintendents of schools, cities, counties, and cities and counties
line 13 pursuant to clause (i) of subparagraph (B) of paragraph (4) of
line 14 subdivision (d) of Sections 97.2 and 97.3, Section 97.70, and
line 15 Article 4 (commencing with Section 98) had this section not been
line 16 enacted. The allocations required by this section shall be adjusted
line 17 to comply with this paragraph.
line 18 (2) Require an increased ad valorem property tax revenue
line 19 allocation or increased tax increment allocation to a community
line 20 redevelopment agency.
line 21 (3) Alter the manner in which ad valorem property tax revenue
line 22 growth from fiscal year to fiscal year is otherwise determined or
line 23 allocated in a county.
line 24 (4) Reduce ad valorem property tax revenue allocations required
line 25 under Article 4 (commencing with Section 98).
line 26 (e) If, for the fiscal year, after complying with subparagraph
line 27 (B) of paragraph (1) of subdivision (a) of Section 97.70, there is
line 28 not enough ad valorem property tax revenue that is otherwise
line 29 required to be allocated to a county Educational Revenue
line 30 Augmentation Fund for the county auditor to complete the transfer
line 31 required by subdivision (a), the county auditor shall reduce the
line 32 total amount of ad valorem property tax revenue that is otherwise
line 33 required to be allocated to all school districts and community
line 34 college districts in the county for that fiscal year by an amount
line 35 equal to the difference between the countywide affordable housing
line 36 and community development investment amount and the amount
line 37 of ad valorem property tax revenue that is otherwise required to
line 38 be allocated to the county Educational Revenue Augmentation
line 39 Fund for that fiscal year. This reduction for each school district
line 40 and community college district in the county shall be the percentage
92
— 26 — SB 5
line 1 share of the total reduction that is equal to the proportion that the
line 2 total amount of ad valorem property tax revenue that is otherwise
line 3 required to be allocated to the school district or community college
line 4 district bears to the total amount of ad valorem property tax revenue
line 5 that is otherwise required to be allocated to all school districts and
line 6 community college districts in a county. For purposes of this
line 7 subdivision, “school districts” and “community college districts”
line 8 do not include any districts that are excess tax school entities, as
line 9 defined in Section 95.
line 10 (f) Any transfer of ad valorem property tax revenues deposited
line 11 in the county’s Educational Revenue Augmentation Fund as a
line 12 result of subdivision (a) shall be applied exclusively to reduce the
line 13 amounts that are allocated from that fund to school districts and
line 14 county offices of education, and shall not be applied to reduce the
line 15 amounts of ad valorem property tax revenues that are otherwise
line 16 required to be allocated from that fund to community college
line 17 districts.
line 18 (g) (1) A property tax revenue allocation or transfer made
line 19 pursuant to subdivision (a) or (b) shall not be considered for
line 20 purposes of determining under Section 96.1 the amount of property
line 21 tax revenue allocated to a jurisdiction in the prior fiscal year.
line 22 (2) The county auditor may deduct its administrative costs
line 23 related to this section from the affordable housing and community
line 24 development investment amount before depositing that amount
line 25 into the county’s Affordable Housing and Community
line 26 Development Investment Fund pursuant to subdivision (a).
line 27 SEC. 6. If the Commission on State Mandates determines that
line 28 this act contains costs mandated by the state, reimbursement to
line 29 local agencies and school districts for those costs shall be made
line 30 pursuant to Part 7 (commencing with Section 17500) of Division
line 31 4 of Title 2 of the Government Code.
line 32 SEC. 7. Each provision of this act is a material and integral
line 33 part of the act, and the provisions of this act are not severable. If
line 34 any provision of this act or its application is held invalid, the entire
line 35 act shall be null and void.
92
SB 5 — 27 —
line 1
line 2 REVISIONS:
line 3 Heading—Line 6.
line 4
O
92
— 28 — SB 5
Skip to Content Welcome, Jennifer CITY OF LODI FAQ (/Advocates/faces/faq.xhtml) Logout
.l'i",K{. .
¡)l, /*r r'r,
Posi Letter Portal
(/Advocates/faces/profi le. xhtm l)
Jennifer Ferraiolo
City Clerk
P.O. Box 3006
Lodi, CA 95241
jferraiolo@lodi.gov
Phone: 209-333-6702
CITY OF LODI
Activity
Submit a Letter (/Advocates/faces/uploadfilel.xhtml) lnbox (/Advocates/faces/inbox.xhtml)
Manage my account (/Advocates/faces/accou ntmanagement.xhtml)
Recent Document Submissions
I lSBS.pdf (../getExtDoc?docld=75568) - SB 5 Local-State Sustainable lnvestment
lncentive Program
2019107118 9:47:19 AM PDT
Stance : Support for SB 5 Affordable Housing and Community Development
I nvestment Program. (ver. 92)
Organization : CITY OF LODI
Received by:
. Estevan Ginsburg (Author Staff - Beall)
" Sunshine Borelli (Author Staff - Beall)
48516_Letter.pdf (../getExtDoc?docld=75358) - AB 516 (Chiu) Authority to
Remove Vehicles
2019107116 4:11:00 PM PDT
(../getExtDoc?
docld=75568)
H6coLq
OU
lur586
t40
(../getExtDoc?
docld=75358)
Withdraw
(../getExtDoc?
docld=75048)
Withdraw
Stance : Oppose for AB 516 Authority to remove vehicles. (ver. 96)
Organization : CITY OF LODI
Received by:
" Senate Appropriations Committee
. Riana King (Author Staff - Chiu)
lSB266.doc (../getExtDoc?docld=75048) - SB 266 (Leyva) - Notice of Opposition
2019107 112 10:30:1 1 AM PDT
Stance : Oppose for SB 266 Public Emoloyees' Retirement System: disallowed
comoensation: benefit adjustments. (ver. 97)
Organization : CITY OF LODI
Received by:
" Assembly Appropriations Committee
" Nycole Baruch (Author Staff - Leyva)
07/L8/20L9 IIIU 09:54 FAX Øo or
***************************
*** F:U( MULrI rX IìEPORT ***
***************************
JOB NO.
DEPT. TD
PGS.
TX INCOMPLETE
TF"AÀ¡SACTTON OK
0095
101
2
9r.9r.63r.92r09
919166514905
Cooper
Galgiani
ERROR
@
FACSIMILE COVER SHEET
CITY CLERK'S OFFICE
221 WEST PINE STREET. P.O. BOX 3006
LODT, CALIFORNIA 95241-1910
PHONE (209) 333-6702 FAX (209) 333-6807
oityclrk@locli,gov or jfen'aiolo@lodi.gov
DATE: July 18, 2019
FROM:Jennifer M. Ferraiolo
City Clerk
TO:Senator Cathleen Galgiani- (916) 651-4905
Assemblymember Jim Cooper - (916) 319-2109
COMMENTS:SB 5 I (Beall/McGulre) Local-State Sustainable
lnvestment lncentive Program - Notice of Support
TH|S TRANSMTTTAL CONTATNS 2 pAcE(S), tNCLUDtNc TH|S COVER SHEET.
FACSIMILE COVER SHEBT
CITY CLERK'S OFFICE
221 WEST PINE STREET - P.O. BOX 3006
LODI, CALIFORNI A 95241-1910
pHoNE (209)333-6702 FAX (209) 333-6807
cityclrk@lodi.gov or jfenaiolo@lodi.gov
DATE: July 18,2019
FROM Jennifer M. Ferraiolo
City Clerk
TO:Senator Cathleen Galgiani- (916) 651-4905
Assemblymernber Jim Cooper - (916) 319-2109
COMMENTS:SB 5 I (Beall/McGuire) Local-State Sustainable
lnvestment lncentive Program - Notice of Support
TH|S TRANSMTTTAL CONTATNS 2 pAcE(S), |NCLUD|NG TH|S COVER SHEET.
forms\aafaxjen.doc
Jennifer Ferraiolo
From:
Sent:
To:
Subject:
Attachments:
Jennifer Ferraiolo
Thursday, July 18,2019 9:49 AM
'Stephen R. Qualls';'cityletters@cacities.org'
SB 5 9 (Beall/McGuire) Local-State Sustainable lnvestment lncentive Program
lSB5.pdf
Jennifer M. Ferraierlo, MMt
City Clerk
F.t. 8ox 30t6
Lodi" CÅ S5241-1Såü
{209}333-6702 I {209}333-6807 ËAX
Website: www.lodi.eov
Attached please find City of Lodi's notice of support to SB 5 (Beall/McGuire). This letter was uploaded to the California
Legislature Position Letter Portal and faxed to our local representatives.
Crrv o¡
o I
CnlrFoRNrA
1