2005 California Health and Safety Code Sections 33330-33354.6 Plans by the Agency

33330.  Each agency shall prepare or cause to be prepared, and
approve, a redevelopment plan for each project area and for that
purpose may hold hearings and conduct examinations, investigations,
and other negotiations.  The agency shall consult with the planning
commission of the community and with the project area committee, if
applicable, in preparing a redevelopment plan.
33331.  Every redevelopment plan shall be consistent with the
community's general plan.
33332.  Every redevelopment plan shall contain a legal description
of the boundaries of the project area and shall be based upon the
preliminary plan.
33333.  Every redevelopment plan shall show by diagram and in
general terms:
   (a) The approximate amount of open space to be provided and street
layout.
   (b) Limitations on type, size, height, number, and proposed use of
buildings.
   (c) The approximate number of dwelling units.
   (d) The property to be devoted to public purposes and the nature
of such purposes.
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
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) When an agency is required to make a payment pursuant to
Section 33681.9, the legislative body may amend the redevelopment
plan to extend the time limits required pursuant to paragraphs (2)
and (3) of subdivision (a) by one year by adoption of an ordinance.
In adopting this ordinance, neither the legislative body nor the
agency is required to comply with Section 33354.6, Article 12
(commencing with Section 33450), or any other provision of this part
relating to the amendment of redevelopment plans.
   (d) When an agency is required pursuant to Section 33681.12 to
make a payment to the county auditor for deposit in the county's
Educational Revenue Augmentation Fund created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, the legislative body may amend the
redevelopment plan to extend the time limits required pursuant to
paragraphs (2) and (3) of subdivision (a) by the following:
   (1) One year for each year in which a payment is made, if the time
limit for the effectiveness of the redevelopment plan established
pursuant to paragraph (2) of subdivision (a) is 10 years or less from
the last day of the fiscal year in which such a payment is made.
   (2) One year for each year in which a payment is made, if both of
the following apply:
   (A) The time limit for the effectiveness of the redevelopment plan
established pursuant to paragraph (2) of subdivision (a) is more
than 10 years but less than 20 years from the last day of the fiscal
year in which a payment is made.
   (B) The legislative body determines in the ordinance adopting the
amendment that, with respect to the project, all of the following
apply:
   (i) The agency is in compliance with the requirements of Section
33334.2 or 33334.6, as applicable.
   (ii) The agency has adopted an implementation plan in accordance
with the requirements of Section 33490.
   (iii) The agency is in compliance with subdivisions (a) and (b) of
Section 33413, to the extent applicable.
   (iv) The agency is not subject to sanctions pursuant to
subdivision (e) of Section 33334.12 for failure to expend, encumber,
or disburse an excess surplus.
   (3) This subdivision shall not apply to any redevelopment plan if
the time limits for the effectiveness of the redevelopment plan
established pursuant to paragraph (2) of subdivision (a) is more than
20 years after the last day of the fiscal year in which a payment is
made.
   (4) The legislative body by ordinance may adopt the amendments
provided for under this subdivision following a public hearing.
Notice of the public hearing shall be mailed to the governing body of
each of the affected taxing entities at least 30 days prior to the
hearing.  Notice shall also be published in a newspaper of general
circulation in the community at least once, not less than 10 days
prior to the date of the public hearing.  The ordinance shall contain
a finding of the legislative body that funds used to make a payment
to the county's Educational Revenue Augmentation Fund pursuant to
Section 33681.12 would otherwise have been used to pay the costs of
projects and activities necessary to carry out the goals and
objectives of the redevelopment plan.  In adopting an ordinance
pursuant to this subdivision, neither the legislative body nor the
agency is required to comply with Section 33354.6, Article 12
(commencing with Section 33450), or any other provision of this part.
   (e) 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.
33333.3.  (a) The redevelopment agency shall send a notice of
preparation and a copy of a draft environmental impact report to each
affected taxing entity, as defined in Section 33353.2, prepared in
accordance with the provisions of the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) and regulations adopted pursuant thereto.
   (b) If the project area contains land in agricultural use, as
defined in subdivision (b) of Section 51201 of the Government Code,
the redevelopment agency shall also send a copy of the draft
environmental impact report to the Department of Conservation, the
county agricultural commissioner, the county farm bureau, the
California Farm Bureau Federation, and agricultural entities and
general farm organizations that provide a written request for notice.
  A separate written request for notice shall be required for each
proposed redevelopment plan or amendment that adds territory.  A
written request for notice applicable to one redevelopment plan or
amendment shall not be effective for a subsequent plan or amendment.
33333.4.  (a) Every legislative body that adopted a final
redevelopment plan prior to October 1, 1976, that contains the
provisions set forth in Section 33670 but does not contain all of the
limitations required by Section 33333.2, shall adopt an ordinance on
or before December 31, 1986, that contains all of the following:
   (1) A limitation on the number of dollars of taxes that may be
divided and allocated to the redevelopment agency pursuant to the
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 33333.8, 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
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.
33333.5.  (a) With respect to the adoption of the redevelopment plan
for an area of the City of South Gate with the approximate
boundaries east of Atlantic Boulevard, south of Wood Avenue, north of
Aldrich Road, and west of the Los Angeles River, the agency shall be
exempt from the provisions of Sections 33322 to 33327, inclusive,
and Section 33330 related to the addition of new territory to
existing project areas.
   (b) Notwithstanding any other exemption granted by this section,
the City of South Gate shall, prior to adoption of a redevelopment
plan, conduct at least two public meetings on the proposed plan for
South Gate residents and property owners.  The City of South Gate
shall also cause to be organized a citizens' advisory committee
comprised of residents and property owners of the project, which
shall advise the agency on development strategy and plans and other
matters that may affect the residents of the project area.  The
citizens' advisory committee shall remain in existence for at least
three years.
   (c) The adoption of a redevelopment plan pursuant to this section
is limited to a plan that adds land into an existing redevelopment
plan and does not involve a change of any general plan or zoning
ordinance or grant any variance.  Any change in zoning, a general
plan, or a variance relating to the additional redevelopment plan
area shall be subject to all applicable requirements of law.
   (d) Nothing in this section shall preclude the City of South Gate
or its redevelopment agency from using a prior environmental impact
report prepared for the site, referenced in subdivision (a), pursuant
to Section 15153 of Title 14 of the California Code of Regulations.
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 that shall not exceed 40
years from the adoption of the redevelopment plan or January 1, 2009,
whichever is later. After the time limit on the effectiveness of the
redevelopment plan, the agency shall have no authority to act
pursuant to the redevelopment plan except to pay previously incurred
indebtedness, to comply with Section 33333.8 and to enforce existing
covenants, contracts, or other obligations.
   (b) Except as provided in subdivisions (f) and (g), a
redevelopment agency may not pay indebtedness or receive property
taxes pursuant to Section 33670 after 10 years from the termination
of the effectiveness of the redevelopment plan pursuant to
subdivision (b).
   (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) A redevelopment plan adopted prior to January 1, 1994,
that has a limitation shorter than the terms provided in this section
may be amended by a legislative body by adoption of an ordinance on
or after January 1, 1999, but on or before December 31, 1999, to
extend the limitation, provided that the plan as so amended does not
exceed the terms provided in this section. In adopting an ordinance
pursuant to this subparagraph, neither the legislative body nor the
agency is required to comply with Section 33354.6, Article 12
(commencing with Section 33450), or any other provision of this part
relating to the amendment of redevelopment plans.
   (B) On or after January 1, 2002, a redevelopment plan may be
amended by a legislative body by adoption of an ordinance to
eliminate the time limit on the establishment of loans, advances, and
indebtedness required by this section prior to January 1, 2002. In
adopting an ordinance pursuant to this subparagraph, neither the
legislative body nor the agency is required to comply with Section
33354.6, Article 12 (commencing with Section 33450), or any other
provision of this part relating to the amendment of redevelopment
plans, except that the agency shall make the payment to affected
taxing entities required by Section 33607.7.
   (C) When an agency is required to make a payment pursuant to
Section 33681.9, the legislative body may amend the redevelopment
plan to extend the time limits required pursuant to subdivisions (a)
and (b) by one year by adoption of an ordinance. In adopting an
ordinance pursuant to this subparagraph, neither the legislative body
nor the agency is required to comply with Section 33354.6 or Article
12 (commencing with Section 33450) or any other provision of this
part relating to the amendment of redevelopment plans, including, but
not limited to, the requirement to make the payment to affected
taxing entities required by Section 33607.7.
   (D) When an agency is required pursuant to Section 33681.12 to
make a payment to the county auditor for deposit in the county's
Educational Revenue Augmentation Fund created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, the legislative body may amend the
redevelopment plan to extend the time limits required pursuant to
subdivisions (a) and (b) by the following:
   (i) One year for each year in which a payment is made, if the time
limit for the effectiveness of the redevelopment plan established
pursuant to subdivision (a) is 10 years or less from the last day of
the fiscal year in which a payment is made.
   (ii) One year for each year in which such a payment is made, if
both of the following apply:
   (I) The time limit for the effectiveness of the redevelopment plan
established pursuant to subdivision (a) is more than 10 years but
less than 20 years from the last day of the fiscal year in which a
payment is made.
   (II) The legislative body determines in the ordinance adopting the
amendment that, with respect to the project, the following:
   (IIa) The agency is in compliance with the requirements of Section
33334.2 or 33334.6, as applicable.
   (IIb) The agency has adopted an implementation plan in accordance
with the requirements of Section 33490.
   (IIc) The agency is in compliance with subdivisions (a) and (b) of
Section 33413, to the extent applicable.
   (IId) The agency is not subject to sanctions pursuant to
subdivision (e) of Section 33334.12 for failure to expend, encumber,
or disburse an excess surplus.
   (iii) This subparagraph shall not apply to any redevelopment plan
if the time limit for the effectiveness of the redevelopment plan
established pursuant to subdivision (a) is more than 20 years after
the last day of the fiscal year in which such a payment is made.
   (3) (A) The legislative body by ordinance may adopt the amendments
provided for under this paragraph following a public hearing. Notice
of the public hearing shall be mailed to the governing body of each
affected taxing entity at least 30 days prior to the public hearing
and published in a newspaper of general circulation in the community
at least once, not less than 10 days prior to the date of the public
hearing. The ordinance shall contain a finding of the legislative
body that funds used to make a payment to the county's Educational
Revenue Augmentation Fund pursuant to Section 33681.12 would
otherwise have been used to pay the costs of projects and activities
necessary to carry out the goals and objectives of the redevelopment
plan. In adopting an ordinance pursuant to this paragraph, neither
the legislative body nor the agency is required to comply with
Section 33354.6, Article 12 (commencing with Section 33450), or any
other provision of this part relating to the amendment of
redevelopment plans.
   (B) The time limit on the establishment of loans, advances, and
indebtedness shall be deemed suspended and of no force or effect but
only for the purpose of issuing bonds or other indebtedness the
proceeds of which are used to make the payments required by Section
33681.12 if the following apply:
   (i) The time limit on the establishment of loans, advances, and
indebtedness required by this section prior to January 1, 2002, has
expired and has not been eliminated pursuant to subparagraph (B).
   (ii) The agency is required to make a payment pursuant to Section
33681.12.
   (iii) The agency determines that in order to make the payment
required by Section 33681.12, it is necessary to issue bonds or incur
other indebtedness.
   (iv) The proceeds of the bonds issued or indebtedness incurred are
used solely for the purpose of making the payments required by
Section 33681.12 and related costs.
   The suspension of the time limit on the establishment of loans,
advances, and indebtedness pursuant to this subparagraph shall not
require the agency to make the payment to affected taxing entities
required by Section 33607.7.
   (4) (A) A time limit on the establishing of loans, advances, and
indebtedness to be paid with the proceeds of property taxes received
pursuant to Section 33670 to finance in whole or in part the
redevelopment project shall not prevent an agency from incurring debt
to be paid from the agency's Low and Moderate Income Housing Fund or
establishing more debt in order to fulfill the agency's affordable
housing obligations, as defined in paragraph (1) of subdivision (a)
of Section 33333.8.
   (B) A redevelopment plan may be amended by a legislative body to
provide that there shall be no time limit on the establishment of
loans, advances, and indebtedness paid from the agency's Low and
Moderate Income Housing Fund or establishing more debt in order to
fulfill the agency's affordable housing obligations, as defined in
paragraph (1) of subdivision (a) of Section 33333.8. In adopting such
an ordinance, neither the legislative body nor the agency is
required to comply with Section 33345.6, Article 12 (commencing with
Section 33450), or any other provision of this part relating to the
amendment of redevelopment plans, and the agency shall not make the
payment to affected taxing entities required by Section 33607.7.
   (f) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit the allocation of taxes
to an agency to the extent required to comply with Section 33333.8.
In the event of a conflict between these limitations and the
obligations under Section 33333.8, the limitations established in the
ordinance shall be suspended pursuant to Section 33333.8.
   (g) (1)This section does not effect the validity of any bond,
indebtedness, or other obligation, including any mitigation agreement
entered into pursuant to Section 33401, authorized by the
legislative body, or the agency pursuant to this part, prior to
January 1, 1994.
   (2) This section does not affect the right of an agency to receive
property taxes, pursuant to Section 33670, to pay the bond,
indebtedness, or other obligation.
   (3) This section does not affect the right of an agency to receive
property taxes pursuant to Section 33670 to pay refunding bonds
issued to refinance, refund, or restructure indebtedness authorized
prior to January 1, 1994, if the last maturity date of these
refunding bonds is not later than the last maturity date of the
refunded indebtedness and the sum of the total net interest cost to
maturity on the refunding bonds plus the principal amount of the
refunding bonds is less than the sum of the total net interest cost
to maturity on the refunded indebtedness plus the principal amount of
the refunded indebtedness.
   (h) 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.
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
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.
33333.8.  (a) Every redevelopment agency shall comply with and
fulfill its obligations with regard to the provision of affordable
housing as required by this part prior to the time limit on the
effectiveness of the redevelopment plan established pursuant to
Sections 33333.2, 33333.6, and 33333.10, and before the agency
exceeds a limit on the number of dollars of taxes that may be divided
and allocated to the redevelopment agency if required by Section
33333.4 or the limit on the number of dollars of taxes in a
redevelopment plan.  A legislative body may not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with its affordable housing obligations.  Notwithstanding
any other provision of law, this section shall apply to each
redevelopment agency and each redevelopment project area established
or merged pursuant to this part and Part 1.5 (commencing with Section
34000), including project areas authorized pursuant to this chapter
and each individual project area that is authorized pursuant to any
other provision of law.
   (1) The affordable housing obligations specified in subdivision
(a) shall include all of the following:
   (A) The obligation to make deposits to and expenditures from the
Low and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, 33334.4, 33334.6, 33487, 33492.16, and other similar and
related statutes.
   (B) The obligation to eliminate project deficits pursuant to
Sections 33334.6, 33487, 33492.16, and other similar and related
statutes.
   (C) The obligation to expend or transfer excess surplus funds
pursuant to Section 33334.12 and other similar and related statutes.
   (D) The obligation to provide relocation assistance pursuant to
Article 9 (commencing with Section 33410), Section 7260 of the
Government Code, or other applicable relocation laws.
   (E) The obligation to provide replacement housing pursuant to
subdivision (a) of Section 33413, Article 9 (commencing with Section
33410), and other similar and related statutes.
   (F) The obligation to provide inclusionary housing pursuant to
Section 33413 and other similar and related statutes and ordinances.
   (2) A redevelopment agency shall not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with these obligations.
   (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, and, if necessary, the time limit for repayment
of indebtedness, shall be suspended until the agency has complied
with subdivision (a).  In addition, the agency shall receive and use
all tax increment funds that are not pledged to repay indebtedness
until the agency has fully complied with its obligations.
   (c) 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 until
the agency has complied with subdivision (a).  In addition, the
agency shall receive and use tax increment funds until the agency has
fully complied with its obligations.
   (d) 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 or account 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,
community housing authority, 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.
   (e) 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 until the agency has complied with
subdivision (a) and the agency shall receive and use tax increment
funds until the agency has fully complied with its obligations.
   (f) 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.
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.
   (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 Section 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, very low, or
extremely low income, as defined in Sections 50079.5, 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) 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, 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, very low,
or extremely low income.  An agency may spend an additional amount of
moneys in the same or other housing 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 at affordable
housing cost 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 redevelopment project area so amended shall be
deposited into that project's Low and Moderate Income Housing Fund
for the purposes specified in subdivision (f).
   (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 principal and interest payments during that fiscal
year on bonds sold by the agency to finance or refinance the
redevelopment project prior to six months before the date of adoption
of the amendment pursuant to subdivision (a).  Bonds sold by the
agency prior to six months before the date of the adoption of the
amendment pursuant to subdivision (a) may only be refinanced,
refunded, or restructured after the date of the amendment pursuant to
subdivision (a).  However, for purposes of this section, bonds
refinanced, refunded, or restructured after the date of the amendment
pursuant to subdivision (a) may only be treated as if sold on the
date the original bonds were sold if (A) the net proceeds were used
to refinance the original bonds, (B) there is no increase in the
amount of principal at the time of refinancing, restructuring, or
refunding, and (C) the time during which the refinanced indebtedness
is to be repaid does not exceed the date on which the existing
indebtedness would have been repaid.
   (3) No later than 120 days prior to depositing less than the
amount required by paragraph (1) into the Low and Moderate Income
Housing Fund, the agency shall adopt, by resolution after a noticed
public hearing, a finding that the difference between the amount
allocated and the amount required by paragraph (1) is necessary to
make payments on bonds sold by the agency to finance or refinance the
redevelopment project and identified in the preliminary report
adopted pursuant to paragraph (9) of subdivision (e) of Section
33333.11, and specifying the amount of principal remaining on the
bonds, the amount of annual payments, and the date on which the
indebtedness will be repaid.  Notice of the time and place of the
public hearing shall be published in a newspaper of general
circulation once a week for at least two successive weeks prior to
the public hearing.  The agency shall make available to the public
the proposed resolution no later than the time of the publication of
the first notice of the public hearing.  A copy of the resolution
shall be transmitted to the Department of Housing and Community
Development within 10 days after adoption.
   (4) 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 162/3 percent of its annual 30-percent
Low and Moderate Income Housing Fund deposit obligation to the
payment of debt service on the bonds.  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
30-percent 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 831/3 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 30-percent 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 (5).
   (5) If, pursuant to paragraph (2) or (4), 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
each affected redevelopment project area 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.  Any new tax increment funds not encumbered
pursuant to paragraph (2) or (4) shall be utilized to reduce or
eliminate the deficit prior to entering into any new contracts,
commitments, or indebtedness.  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 may 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.
   (l) 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 comply with Section 33333.8.  In
the event of a conflict between these limitations and the obligations
under Section 33333.8, the limitation established in the ordinance
shall be suspended pursuant to Section 33333.8.
33333.11.  (a) In order to adopt an amendment pursuant to Section
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 new neighborhood impact report if required by subdivision
(m) of Section 33352.
   (9) A description of each bond sold by the agency to finance or
refinance the redevelopment project prior to six months before the
date of adoption of the proposed amendment, and listing for each bond
the amount of remaining principal, the annual payments, and the date
that the bond will be paid in full.
   (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) A negative declaration, environmental impact report, or other
document that is required in order to comply with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) 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 revenues.
   (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
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.
   (l) 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.
33334.  Every redevelopment plan shall describe generally the
proposed method of financing the redevelopment of the project area.
33334.1.  If the plan authorizes the issuance of bonds to be repaid
in whole or in part from the allocation of taxes pursuant to Section
33670, the plan shall establish a limit on the amount of bonded
indebtedness which can be outstanding at one time without an
amendment of the plan.  This section shall apply only to
redevelopment plans adopted on or after October 1, 1976.
33334.2.  (a) Not less than 20 percent of all taxes that are
allocated to the agency pursuant to Section 33670 shall be used by
the agency for the purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as defined by Section 50052.5, to persons
and families of low or moderate income, as defined in Section 50093,
lower income households, as defined by Section 50079.5, very low
income households, as defined in Section 50105, and extremely low
income households, as defined by Section 50106, that is occupied by
these persons and families, unless one of the following findings is
made annually by resolution:
   (1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner that
would benefit the project area and that this finding is consistent
with the housing element of the community's general plan required by
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, including its share of the
regional housing needs of very low income households and persons and
families of low or moderate income.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a need to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persons and families of low or moderate income and to very low income
households. This finding shall only be made if it is consistent with
the planning agency's annual report to the legislative body on
implementation of the housing element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
   (2) (A) That some stated percentage less than 20 percent of the
taxes that are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing needs of the community, including its
share of the regional housing needs of persons and families of low-
or moderate-income and very low income households, and that this
finding is consistent with the housing element of the community's
general plan required by Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that a percentage of less than
20 percent will be sufficient to meet the community's need to
improve, increase, or preserve the supply of low- and moderate-income
housing available at affordable housing cost to persons and families
of low or moderate income and to very low income households. This
finding shall only be made if it is consistent with the planning
agency's annual report to the legislative body on implementation of
the housing element required by subdivision (b) of Section 65400 of
the Government Code. No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code. This finding
shall not take effect until the agency has complied with subdivision
(b) of this section.
   (C) For purposes of making the findings specified in this
paragraph and paragraph (1), the housing element of the general plan
of a city, county, or city and county shall be current, and shall
have been determined by the department pursuant to Section 65585 to
be in substantial compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
   (3) (A) That the community is making a substantial effort to meet
its existing and projected housing needs, including its share of the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3
of Division 1 of Title 7 of the Government Code, and that this
effort, consisting of direct financial contributions of local funds
used to increase and improve the supply of housing affordable to, and
occupied by, persons and families of low or moderate income and very
low income households is equivalent in impact to the funds otherwise
required to be set aside pursuant to this section. In addition to
any other local funds, these direct financial contributions may
include federal or state grants paid directly to a community and
which the community has the discretion of using for the purposes for
which moneys in the Low and Moderate Income Housing Fund may be used.
The legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low or
moderate income or very low income households from within, or
adjacent to, the project area, because of increased employment
opportunities, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subdivision may be made until the community has provided or ensured
the availability of replacement dwelling units as defined in Section
33411.2 and until it has complied with Article 9 (commencing with
Section 33410).
   (B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include only those financial contributions that are directly
related to programs or activities authorized under subdivision (e).
   (C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on the provisions of this paragraph. Agencies that make this
finding after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intention of making a finding under this paragraph in order to
provide sufficient revenues to pay off the indebtedness.
   (b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
Department of Housing and Community Development a copy of the
finding, including the factual information supporting the finding and
other factual information in the housing element that demonstrates
that either (1) the community does not need to increase, improve, or
preserve the supply of housing for low- and moderate-income
households, including very low income households, or (2) a percentage
less than 20 percent will be sufficient to meet the community's need
to improve, increase, and preserve the supply of housing for low-
and moderate-income households, including very low income households.
Within 10 days following the making of a finding under paragraph (3)
of subdivision (a), the agency shall send the Department of Housing
and Community Development a copy of the finding, including the
factual information supporting the finding that the community is
making a substantial effort to meet its existing and projected
housing needs. Agencies that make this finding after June 30, 1993,
shall also submit evidence to the department of its contractual
obligations with bondholders or private entities incurred prior to
May 1, 1991, and made in reliance on this finding.
   (c) In any litigation to challenge or attack a finding made under
paragraph (1), (2), or (3) of subdivision (a), the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
If an agency is determined by a court to have knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional housing need pursuant to
the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and
plaintiff's attorney's fees, and shall be required to allocate not
less than 25 percent of the agency's tax increment revenues to its
Low and Moderate Income Housing Fund in each year thereafter.
   (d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
   (e) In carrying out the purposes of this section, the agency may
exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low- and moderate-income persons or families,
including the following:
   (1) Acquire real property or building sites subject to Section
33334.16.
   (2) Improve real property or building sites with onsite or offsite
improvements, but only if both (A) the improvements are part of the
new construction or rehabilitation of affordable housing units for
low- or moderate-income persons that are directly benefited by the
improvements, and are a reasonable and fundamental component of the
housing units, and (B) the agency requires that the units remain
available at affordable housing cost to, and occupied by, persons and
families of extremely low, very low, low, or moderate income for the
same time period and in the same manner as provided in subdivision
(c) and paragraph (2) of subdivision (f) of Section 33334.3.
   If the newly constructed or rehabilitated housing units are part
of a larger project and the agency improves or pays for onsite or
offsite improvements pursuant to the authority in this subdivision,
the agency shall pay only a portion of the total cost of the onsite
or offsite improvement. The maximum percentage of the total cost of
the improvement paid for by the agency shall be determined by
dividing the number of housing units that are affordable to low- or
moderate-income persons by the total number of housing units, if the
project is a housing project, or by dividing the cost of the
affordable housing units by the total cost of the project, if the
project is not a housing project.
   (3) Donate real property to private or public persons or entities.
   (4) Finance insurance premiums pursuant to Section 33136.
   (5) Construct buildings or structures.
   (6) Acquire buildings or structures.
   (7) Rehabilitate buildings or structures.
   (8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing at affordable costs on the open
market. Housing units available on the open market are those units
developed without direct government subsidies.
   (9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
   (10) Maintain the community's supply of mobilehomes.
   (11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
   (f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However, nothing
in this section shall be construed as limiting in any way the
requirements of that section.
   (g) (1) The agency may use these funds inside or outside the
project area. The agency may only use these funds outside the project
area upon a resolution of the agency and the legislative body that
the use will be of benefit to the project. The determination by the
agency and the legislative body shall be final and conclusive as to
the issue of benefit to the project area. The Legislature finds and
declares that the provision of replacement housing pursuant to
Section 33413 is always of benefit to a project. Unless the
legislative body finds, before the redevelopment plan is adopted,
that the provision of low- and moderate-income housing outside the
project area will be of benefit to the project, the project area
shall include property suitable for low- and moderate-income housing.
   (2) (A) The Contra Costa County Redevelopment Agency may use these
funds anywhere within the unincorporated territory, or within the
incorporated limits of the City of Walnut Creek on sites contiguous
to the Pleasant Hill BART Station Area Redevelopment Project area.
The agency may only use these funds outside the project area upon a
resolution of the agency and board of supervisors determining that
the use will be of benefit to the project area. In addition, the
agency may use these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
   (i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
elements of their general plans that the Department of Housing and
Community Development has determined to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (ii) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
   (iii) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
   (iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit station than could be
constructed in the unincorporated territory outside the Pleasant Hill
BART Station Area Redevelopment Project.
   (B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements shall
apply:
   (i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
   (ii) If less than all the units in the development are affordable
to, and occupied by, low- or moderate-income persons, any agency
assistance shall not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
   (iii) The units in the development that are affordable to, and
occupied by, low- or moderate-income persons shall remain affordable
for a period of at least 55 years.
   (iv) The agency and the City of Walnut Creek shall determine, if
applicable, whether Article XXXIV of the California Constitution
permits the development.
   (h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
   (i) The requirements of this section shall only apply to taxes
allocated to a redevelopment agency for which a final redevelopment
plan is adopted on or after January 1, 1977, or for any area that is
added to a project by an amendment to a redevelopment plan, which
amendment is adopted on or after the effective date of this section.
An agency may, by resolution, elect to make all or part of the
requirements of this section applicable to any redevelopment project
for which a redevelopment plan was adopted prior to January 1, 1977,
subject to any indebtedness incurred prior to the election.
   (j) (1) (A) An action to compel compliance with the requirement of
Section 33334.3 to deposit not less than 20 percent of all taxes
that are allocated to the agency pursuant to Section 33670 in a Low
and Moderate Income Housing Fund shall be commenced within 10 years
of the alleged violation. A cause of action for a violation accrues
on the last day of the fiscal year in which the funds were required
to be deposited in the Low and Moderate Income Housing Fund.
   (B) An action to compel compliance with the requirement of this
section or Section 33334.6 that money deposited in the Low and
Moderate Income Housing Fund be used by the agency for purposes of
increasing, improving, and preserving the community's supply of low-
and moderate-income housing available at affordable housing cost
shall be commenced within 10 years of the alleged violation. A cause
of action for a violation accrues on the date of the actual
expenditure of the funds.
   (C) An agency found to have deposited less into the Low and
Moderate Income Housing Fund than mandated by Section 33334.3 or to
have spent money from the Low and Moderate Income Housing Fund for
purposes other than increasing, improving, and preserving the
community's supply of low- and moderate-income housing, as mandated,
by this section or Section 33334.6 shall repay the funds with
interest in one lump sum pursuant to Section 970.4 or 970.5 of the
Government Code or may do either of the following:
   (i) Petition the court under Section 970.6 for repayment in
installments.
   (ii) Repay the portion of the judgment due to the Low and Moderate
Income Housing Fund in equal installments over a period of five
years following the judgment.
   (2) Repayment shall not be made from the funds required to be set
aside or used for low- and moderate-income housing pursuant to this
section.
   (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paragraph (1), all costs, including reasonable attorney fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
   (4) Except as otherwise provided in this subdivision, Chapter 2
(commencing with Section 970) of Part 5 of Division 3.6 of Title 1 of
the Government Code for the enforcement of a judgment against a
local public entity applies to a judgment against a local public
entity that violates this section.
   (5) This subdivision applies to actions filed on and after January
1, 2006.
   (6) The limitations period specified in subparagraphs (A) and (B)
of paragraph (1) does not apply to a cause of action brought pursuant
to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure.
33334.2a.  (a) The Orange County Development Agency may use the
funds described in Section 33334.2 anywhere within the unincorporated
territory, or within the incorporated limits of any city within the
County of Orange.  The agency may only use these funds outside the
project area upon a resolution of the agency and board of supervisors
determining that the use will be of benefit to the project area.  In
addition, the agency may use these funds within the incorporated
limits of a city only if the agency and the board of supervisors find
all of the following:
   (1) Both the County of Orange and the city have adopted and are
implementing complete and current housing elements of their general
plans that the department has determined to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (2) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
   (3) The development to be funded shall be a rental housing
development containing units affordable to lower income households or
very low income households, as defined in Sections 50079.5 and
50105.
   (4) The development is in an area with a need for additional
affordable housing.
   (5) If applicable, Article XXXIV of the California Constitution
permits the development.
   (6) The city in which the development is to be constructed has
certified to the agency that the city's redevelopment agency, if one
exists, is not subject to sanctions pursuant to subdivision (e) of
Section 33334.12 for failure to expend or encumber a housing fund
excess surplus.
   (b) If the agency uses these funds within the incorporated limits
of a city, all of the following requirements shall apply:
   (1) The funds shall be used only for the acquisition of land for,
and the design and construction of, housing containing units
affordable to lower income households or very low income households,
as defined in Sections 50079.5 and 50105, or for the acquisition or
rehabilitation of publicly assisted rental housing that is threatened
with conversion to market rates.
   (2) If less than all the units in the development are affordable
to lower income households or very low income households, any agency
assistance shall not exceed the amount needed to make the housing
affordable to lower income households and very low income households.
   (3) The units in the development that are affordable to lower
income households or very low income households shall remain
affordable for a period of at least 55 years.  Compliance with this
requirement shall be ensured by the execution and recordation of
covenants and restrictions that, notwithstanding any other provision
of law, shall run with the land.
   (4) No development shall be located in a census tract where more
than 50 percent of its population is very low income.
   (5) Assisted developments shall be located on sites suitable for
multifamily housing near public transportation.
   (6) Developed units shall not be treated as meeting the regional
housing needs allocation under both the city's and county's housing
elements.
   (7) The funds shall be used only for developments for which the
city in which the development will be constructed has approved the
agency's use of funds for the development or has granted land use
approvals for the development.
   (8) The aggregate number of units assisted by the county over each
five-year period shall include at least 10 percent that are
affordable to households earning 30 percent or less of the area
median income, and at least 40 percent that are affordable to very
low income households.
   (c) The Orange County Development Agency shall make diligent
efforts to obtain the development of low- and moderate-income housing
in unincorporated areas, including in developing areas of the
county.
33334.3.  (a) The funds that are required by Section 33334.2 or
33334.6 to be used for the purposes of increasing and improving the
community's supply of low- and moderate-income housing shall be held
in a separate Low and Moderate Income Housing Fund until used.
   (b) Any interest earned by the Low and Moderate Income Housing
Fund and any repayments or other income to the agency for loans,
advances, or grants, of any kind from the Low and Moderate Income
Housing Fund, shall accrue to and be deposited in, the fund and may
only be used in the manner prescribed for the Low and Moderate Income
Housing Fund.
   (c) The moneys in the Low and Moderate Income Housing Fund shall
be used to increase, improve, and preserve the supply of low- and
moderate-income housing within the territorial jurisdiction of the
agency.
   (d) It is the intent of the Legislature that the Low and Moderate
Income Housing Fund be used to the maximum extent possible to defray
the costs of production, improvement, and preservation of low- and
moderate-income housing and that the amount of money spent for
planning and general administrative activities associated with the
development, improvement, and preservation of that housing not be
disproportionate to the amount actually spent for the costs of
production, improvement, or preservation of that housing.  The agency
shall determine annually that the planning and administrative
expenses are necessary for the production, improvement, or
preservation of low- and moderate-income housing.
   (e) (1) Planning and general administrative costs which may be
paid with moneys from the Low and Moderate Income Housing Fund are
those expenses incurred by the agency which are directly related to
the programs and activities authorized under subdivision (e) of
Section 33334.2 and are limited to the following:
   (A) Costs incurred for salaries, wages, and related costs of the
agency's staff or for services provided through interagency
agreements, and agreements with contractors, including usual indirect
costs related thereto.
   (B) Costs incurred by a nonprofit corporation which are not
directly attributable to a specific project.
   (2) Legal, architectural, and engineering costs and other
salaries, wages, and costs directly related to the planning and
execution of a specific project which are authorized under
subdivision (e) of Section 33334.2 and which are incurred by a
nonprofit housing sponsor are not planning and administrative costs
for the purposes of this section, but are instead project costs.
   (f) (1) The requirements of this subdivision apply to all new or
substantially rehabilitated housing units developed or otherwise
assisted, with moneys from the Low and Moderate Income Housing Fund,
pursuant to an agreement approved by an agency on or after January 1,
1988.  Except to the extent a longer period of time may be required
by other provisions of law, the agency shall require that housing
units subject to this subdivision shall remain available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income and very low income and extremely low income
households for the longest feasible time, but for not less than the
following periods of time:
   (A) Fifty-five years for rental units.  However, the agency may
replace rental units with equally affordable and comparable rental
units in another location within the community if (A) the replacement
units are available for occupancy prior to the displacement of any
persons and families of low or moderate income residing in the units
to be replaced and (B) the comparable replacement units are not
developed with moneys from the Low and Moderate Income Housing Fund.
   (B) Forty-five years for owner-occupied units.  However, 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 which protects the agency's investment of moneys from the Low
and Moderate Income Housing Fund, including, but not limited to, an
equity sharing program which 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 in the Low and Moderate Income Housing Fund.  Only the
units originally assisted by the agency shall be counted towards the
agency's obligations under Section 33413.
   (C) 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.
   (2) The agency shall require the recording in the office of the
county recorder of covenants or restrictions implementing this
subdivision for each parcel or unit of real property subject to this
subdivision.  Notwithstanding any other provision of law, the
covenants or restrictions shall run with the land and shall be
enforceable, against the original owner and successors in interest,
by the agency or the community.
   (g) "Housing," as used in this section, includes residential
hotels, as defined in subdivision (k) of Section 37912.  The
definitions of "lower income households," "very low income
households," and "extremely low income households" in Sections
50079.5, 50105, and 50106 shall apply to this section.  "Longest
feasible time," as used in this section, includes, but is not limited
to, unlimited duration.
   (h) "Increasing, improving, and preserving the community's supply
of low- and moderate-income housing," as used in this section and in
Section 33334.2, includes the preservation of rental housing units
assisted by federal, state, or local government on the condition that
units remain affordable to, and occupied by, low- and
moderate-income households, including extremely low and very low
income households, for the longest feasible time, but not less than
55 years, beyond the date the subsidies and use restrictions could be
terminated and the assisted housing units converted to market rate
rentals.  In preserving these units the agency shall require that the
units remain affordable to, and occupied by, persons and families of
low- and moderate-income and extremely low and very low income
households for the longest feasible time but not less than 55 years.
However, the agency may replace rental units with equally affordable
and comparable rental units in another location within the community
if (1) the replacement units in another location are available for
occupancy prior to the displacement of any persons and families of
low or moderate income residing in the units to be replaced and (2)
the comparable replacement units are not developed with moneys from
the Low and Moderate Income Housing Fund.
   (i) Agencies that have more than one project area may satisfy the
requirements of Sections 33334.2 and 33334.6 and of this section by
allocating, in any fiscal year, less than 20 percent in one project
area, if the difference between the amount allocated and the 20
percent required is instead allocated, in that same fiscal year, to
the Low and Moderate Income Housing Fund from tax increment revenues
from other project areas.  Prior to allocating funds pursuant to this
subdivision, the agency shall make the finding required by
subdivision (g) of Section 33334.2.
   (j) Funds from the Low and Moderate Income Housing Fund shall not
be used to the extent that other reasonable means of private or
commercial financing of the new or substantially rehabilitated units
at the same level of affordability and quantity are reasonably
available to the agency or to the owner of the units.  Prior to the
expenditure of funds from the Low and Moderate Income Housing Fund
for new or substantially rehabilitated housing units, where those
funds will exceed 50 percent of the cost of producing the units, the
agency shall find, based on substantial evidence, that the use of the
funds is necessary because the agency or owner of the units has made
a good faith attempt but been unable to obtain commercial or private
means of financing the units at the same level of affordability and
quantity.
33334.4.  (a) Except as specified in subdivision (d), each agency
shall expend over each 10-year period of the implementation plan, as
specified in clause (iii) of subparagraph (A) of paragraph (2) of
subdivision (a) of Section 33490, the moneys in the Low and Moderate
Income Housing Fund to assist housing for persons of low income and
housing for persons of very low income in at least the same
proportion as the total number of housing units needed for each of
those income groups bears to the total number of units needed for
persons of moderate, low, and very low income within the community,
as those needs have been determined for the community pursuant to
Section 65584 of the Government Code. In determining compliance with
this obligation, the agency may adjust the proportion by subtracting
from the need identified for each income category, the number of
units for persons of that income category that are newly constructed
over the duration of the implementation plan with other locally
controlled government assistance and without agency assistance and
that are required to be affordable to, and occupied by, persons of
the income category for at least 55 years for rental housing and 45
years for ownership housing, except that in making an adjustment the
agency may not subtract units developed pursuant to a replacement
housing obligation under state or federal law.
   (b) Each agency shall expend over the duration of each
redevelopment implementation plan, the moneys in the Low and Moderate
Income Housing Fund to assist housing that is available to all
persons regardless of age in at least the same proportion as the
number of low-income households with a member under age 65 years
bears to the total number of low-income households of the community
as reported in the most recent census of the United States Census
Bureau.
   (c) An agency that has deposited in the Low and Moderate Income
Housing Fund over the first five years of the period of an
implementation plan an aggregate that is less than two million
dollars ($2,000,000) shall have an extra five years to meet the
requirements of this section.
   (d) For the purposes of this section, "locally controlled" means
government assistance where the community or other local government
entity has the discretion and the authority to determine the
recipient and the amount of the assistance, whether or not the source
of the funds or other assistance is from the state or federal
government.  Examples of locally controlled government assistance
include, but are not limited to, Community Development Block Grant
Program (42 U.S.C. Sec. 5301 and following) funds allocated to a city
or county, Home Investment Partnership Program (42 U.S.C. Sec. 12721
and following) funds allocated to a city or county, fees or funds
received by a city or county pursuant to a city or county authorized
program, and the waiver or deferral of city or other charges.
33334.5.  Every redevelopment plan adopted or amended to expand the
project area after January 1, 1977, shall contain a provision that
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,
the agency shall, within four years of such 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 at affordable housing costs, as defined by Section 50052.5,
within the project area or within the territorial jurisdiction of the
agency, in accordance with all of the provisions of Sections 33413
and 33413.5.
33334.6.  (a) The Legislature finds and declares that the provision
of housing is itself a fundamental purpose of the Community
Redevelopment Law and that a generally inadequate statewide supply of
decent, safe, and sanitary housing affordable to persons and
families of low or moderate income, as defined by Section 50093,
threatens the accomplishment of the primary purposes of the Community
Redevelopment Law, including job creation, attracting new private
investments, and creating physical, economic, social, and
environmental conditions to remove and prevent the recurrence of
blight.  The Legislature further finds and declares that the
provision and improvement of affordable housing, as provided by
Section 33334.2, outside of redevelopment project areas can be of
direct benefit to those projects in assisting the accomplishment of
project objectives whether or not those redevelopment projects
provide for housing within the project area.  The Legislature finds
and determines that the provision of affordable housing by
redevelopment agencies and the use of taxes allocated to the agency
pursuant to subdivision (b) of Section 33670 is of statewide benefit
and of particular benefit and assistance to all local governmental
agencies in the areas where the housing is provided.
   (b) This section is applicable to all project areas, or portions
of project areas, which are not subject to Section 33334.2, except
that a project area, or portion of a project area, for which a
resolution was adopted pursuant to subdivision (i) of Section 33334.2
is subject to this section.  Project areas subject to this section
which are merged are subject to the requirements of both this section
and Section 33487.  The deposit of taxes into the Low and Moderate
Income Housing Fund in compliance with either this section or Section
33487 shall satisfy the requirements of both sections in the year
those taxes are deposited.
   (c) Except as otherwise permitted by subdivisions (d) and (e), not
less than 20 percent of the taxes allocated to the agency pursuant
to Section 33670 from project areas specified in subdivision (b) for
the 1985-86 fiscal year and each succeeding fiscal year shall be
deposited into the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3 and used for the purposes set forth in
Section 33334.2, unless the agency, by resolution, makes one of the
findings described in paragraphs (1) to (3), inclusive, of
subdivision (a) of Section 33334.2, except that the authority to make
the finding specified in paragraph (3) of subdivision (a) of that
section shall expire as specified in that paragraph.  Subdivisions
(b) and (c) of Section 33334.2 apply if an agency makes any of those
findings.
   (d) In any fiscal year, the agency may deposit less than the
amount required by subdivision (c) into the Low and Moderate Income
Housing Fund if the agency finds that the difference between the
amount deposited and the amount required by  subdivision (c) 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 which are used by the agency for that
purpose.  For purposes of this section, "existing obligations" means
the principal of, and interest on, 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,
any redevelopment project existing on, and created prior to January
1, 1986, and contained on the statement of existing obligations
adopted pursuant to subdivision (f).  Obligations incurred on or
after January 1, 1986, shall be deemed existing obligations for
purposes of this section if the net proceeds are  used to refinance
existing obligations contained on the statement.
   (e) In each fiscal year prior to July 1, 1996, the agency may
deposit less than the amount required by subdivisions (c) and (d)
into the Low and Moderate Income Housing Fund if the agency finds
that the deposit of less than the amount required by those
subdivisions is necessary in order to provide for the orderly and
timely completion of public and private projects, programs, or
activities approved by the agency prior to January 1, 1986, which are
contained on the statement of existing programs adopted pursuant to
subdivision (f).  Approval of these projects, programs, and
activities means approval by the agency of written documents which
demonstrate an intent to implement a specific project, program, or
activity and is not limited to final approval of a specific project,
program, or activity.
   (f) Any agency which deposits less than the amount required by
subdivision (c) into the Low and Moderate Income Housing Fund
pursuant to subdivision (d) or (e) shall adopt prior to September 1,
1986, by resolution, after a noticed public  hearing, a statement of
existing obligations or a statement of existing programs, or both.
   (1) The agency shall prepare and submit the proposed statement to
the legislative body and to the Department of Housing and Community
Development prior to giving notice of the public hearing.  Notice of
the time and place of the public hearing shall be transmitted to the
Department of Housing and Community Development at least 15 days
prior to the public hearing and notice of the time and place  of the
public hearing shall be published in a newspaper of general
circulation in the community once a week for at least two successive
weeks prior to the public hearing.  The legislative body shall
maintain a record of the public hearing.
   (2) A copy of the resolution adopted by the agency, together with
any amendments to the statement of the agency, shall be transmitted
to the Department of Housing and Community Development within 10 days
following adoption of the resolution by the agency.
   (3) A statement of existing obligations shall describe each
existing obligation and, based upon the best available information,
as determined by the agency, list the total amount of the existing
obligation, the annual payments required to be made by the agency
pursuant to the existing obligation, and the date the existing
obligation will be discharged in full.
   (4) A statement of existing programs shall list the specific
public and private projects, programs, or activities approved prior
to January 1, 1986, which are necessary for the orderly completion of
the redevelopment plan as it existed on January 1, 1986.  No
project, program, or activity shall be included on the statement of
existing programs unless written evidence of the existence and
approval of the project, program, or activity prior to January 1,
1986, is attached to the statement of existing programs.
   (g) If, pursuant to subdivision (d) or (e), the agency deposits
less than 20 percent of the taxes allocated to the agency pursuant to
Section 33670 in the 1985-86 fiscal year or any subsequent fiscal
year in the Low and Moderate Income Housing Fund, the  amount equal
to the difference between 20 percent of the taxes allocated to the
agency pursuant to Section 33670 for each affected project and the
amount deposited that year shall constitute a deficit of the project.
  The agency shall adopt a plan to eliminate the deficit in
subsequent years as determined by the agency.
   (h) The obligations imposed by this section, including deficits,
if any, created under 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 shall constitute an indebtedness of the agency with respect to
the redevelopment project until paid in full.
   (i) In any litigation to challenge or attack a statement of
existing obligations, the decision by the agency after the public
hearing to include an existing obligation on the statement of
existing obligations, or the decision by the agency after the public
hearing to include a project, program, or activity on the statement
of existing programs, the court shall uphold the action of the agency
unless the court finds that the agency has abused its discretion.
The Legislature  finds and declares that this standard of review is
necessary in order to protect against the possible impairment of
existing obligations, programs, and activities because agencies with
project areas adopted prior to January 1, 1977, have incurred
existing obligations and have adopted projects, programs, and
activities with the authority to receive and pledge the entire
allocation of funds authorized by Section 33670.
33334.7.  Programs to assist or develop low- and moderate-income
housing pursuant to Sections 33334.2, 33334.3, 33334.6, 33413, and
33449 shall be entitled to  priority consideration for assistance in
housing programs administered by the  California Housing Finance
Agency, the Department of Housing and Community Development, and
other state agencies and departments, if those agencies or
departments determine that the housing is otherwise eligible for
assistance under a particular program.
33334.8.  The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to multifamily rental
housing that receives financial assistance pursuant to Sections
33334.2, 33334.3, and 33334.6.
33334.9.  Notwithstanding Sections 33334.2 and 33334.3, assistance
provided by an agency to preserve the availability to lower income
households of affordable housing units which are assisted or
subsidized by public entities and which are threatened with imminent
conversion to market rates may be credited and offset against an
agency's obligations under Section 33334.2.
33334.10.  (a) Except as otherwise provided in this subdivision, not
later than six months following the close of any fiscal year of an
agency in which excess surplus accumulates in the agency's Low and
Moderate Income Housing Fund, the agency may adopt a plan pursuant to
this section for expenditure of all moneys in the Low and Moderate
Income Housing Fund within five years from the end of that fiscal
year.  The plan may be general and need not be site-specific, but
shall include objectives respecting the number and type of housing to
be assisted, identification of the entities, which will administer
the plan, alternative means of ensuring the affordability of housing
units for the longest feasible time, as specified in subdivision (e)
of Section 33334.3 the income groups to be assisted, and a schedule
by fiscal year for expenditure of the excess surplus.
   (b) The agency shall separately account for each excess surplus
either as part of or in addition to a Low and Moderate Income Housing
Fund.
   (c) If the agency develops a plan for expenditure of excess
surplus or other moneys in the Low and Moderate Income Housing Fund,
a copy of that plan and any amendments thereto shall be included in
the agency's annual report required by Article 6 (commencing with
Section 33080).
33334.12.  (a) (1) Upon failure of the agency to expend or encumber
excess surplus in the Low and Moderate Income Housing Fund within one
year from the date the moneys become excess surplus, as defined in
paragraph (1) of subdivision (g), the agency shall do either of the
following:
   (A) Disburse voluntarily its excess surplus to the county housing
authority or to another public agency exercising housing development
powers within the territorial jurisdiction of the agency in
accordance with subdivision (b).
   (B) Expend or encumber its excess surplus within two additional
years.
   (2) If an agency, after three years has elapsed from the date that
the moneys become excess surplus, has not expended or encumbered its
excess surplus, the agency shall be subject to sanctions pursuant to
subdivision (e), until the agency has expended or encumbered its
excess surplus plus an additional amount, equal to 50 percent of the
amount of the excess surplus that remains at the end of the
three-year period.  The additional expenditure shall not be from the
agency's Low and Moderate Income Housing Fund, but shall be used in a
manner that meets all requirements for expenditures from that fund.
   (b) The housing authority or other public agency to which the
money is 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, and for that purpose may
exercise all of the powers of a housing authority under Part 2
(commencing with Section 34200) to an extent not inconsistent with
these limitations.
   (c) Notwithstanding Section 34209 or any other provision of law,
for the purpose of accepting a transfer of, and using, moneys
pursuant to this section, the housing authority of a county or other
public agency may exercise its powers within the territorial
jurisdiction of a city redevelopment agency located in that county.
   (d) The amount of excess surplus that shall be transferred to the
housing authority or other public agency because of a failure of the
redevelopment agency to expend or encumber excess surplus within one
year shall be the amount of the excess surplus that is not so
expended or encumbered.  The housing authority or other public agency
to which the moneys are transferred shall expend or encumber these
moneys for authorized purposes not later than three years after the
date these moneys were transferred from the Low and Moderate Income
Housing Fund.
   (e) (1) Until a time when the agency has expended or encumbered
excess surplus moneys pursuant to subdivision (a), the agency shall
be prohibited from encumbering any funds or expending any moneys
derived from any source, except that the agency may encumber funds
and expend moneys to pay the following obligations, if any, that were
incurred by the agency prior to three years from the date the moneys
became excess surplus:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency, whether funded, refunded, assumed,
or otherwise, pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) Contractual obligations which, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) Obligations incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (F) Obligations incurred pursuant to Section 33401.
   (G) An amount, to be expended for the operation and administration
of the agency, that may not exceed 75 percent of the amount spent
for those purposes in the preceding fiscal year.
   (2) This subdivision shall not be construed to prohibit the
expenditure of excess surplus funds or other funds to meet the
requirement in paragraph (2) of subdivision (a) that the agency spend
or encumber excess surplus funds, plus an amount equal to 50 percent
of excess surplus, prior to spending or encumbering funds for any
other purpose.
   (f) Nothing in this section shall be construed to limit any
authority a redevelopment agency may have under other provisions of
this part to contract with a housing authority for increasing or
improving the community's supply of low- and moderate-income housing.
   (g) For purposes of this section:
   (1) "Excess surplus" means any unexpended and unencumbered amount
in an agency's Low and Moderate Income Housing Fund that exceeds the
greater of one million dollars ($1,000,000) or the aggregate amount
deposited into the Low and Moderate Income Housing Fund pursuant to
Sections 33334.2 and 33334.6 during the agency's preceding four
fiscal years.  The first fiscal year to be included in this
computation is the 1989-90 fiscal year, and the first date on which
an excess surplus may exist is July 1, 1994.
   (2) Moneys shall be deemed encumbered if committed pursuant to a
legally enforceable contract or agreement for expenditure for
purposes specified in Section 33334.2 or 33334.3.
   (3) (A) For purposes of determining whether an excess surplus
exists, it is the intent of the Legislature to give credit to
agencies which convey land for less than fair market value, on which
low- and moderate-income housing is built or is to be built if at
least 49 percent of the units developed on the land are available at
affordable housing cost to lower income households for at least the
time specified in subdivision (e) of Section 33334.3, and otherwise
comply with all of the provisions of this division applicable to
expenditures of moneys from a low- and moderate-income housing fund
established pursuant to Section 33334.3.  Therefore, for the sole
purpose of determining the amount, if any, of an excess surplus, an
agency may make the following calculation:  if an agency sells,
leases, or grants land acquired with moneys from the Low and Moderate
Income Housing Fund, established pursuant to Section 33334.3, for an
amount which is below fair market value, and if at least 49 percent
of the units constructed or rehabilitated on the land are affordable
to lower income households, as defined in Section 50079.5, the
difference between the fair market value of the land and the amount
the agency receives may be subtracted from the amount of moneys in an
agency's Low and Moderate Income Housing Fund.
   (B) If taxes that are deposited in the Low and Moderate Income
Housing Fund are used as security for bonds or other indebtedness,
the proceeds of the bonds or other indebtedness, and income and
expenditures related to those proceeds, shall not be counted in
determining whether an excess surplus exists.  The unspent portion of
the proceeds of bonds or other indebtedness, and income related
thereto, shall be excluded from the calculation of the unexpended and
unencumbered amount in the Low and Moderate Income Housing Fund when
determining whether an excess surplus exists.
   (C) Nothing in this subdivision shall be construed to restrict the
authority of an agency provided in any other provision of this part
to expend funds from the Low and Moderate Income Housing Fund.
   (D) The department shall develop and periodically revise the
methodology to be used in the calculation of excess surplus as
required by this section.  The director shall appoint an advisory
committee to advise in the development of this methodology.  The
advisory committee shall include department staff, affordable housing
advocates, and representatives of the California Redevelopment
Association, the California Society of Certified Public Accountants,
the Controller, and any other authorities or persons interested in
the field that the director deems necessary and appropriate.
   (h) Communities in which an agency has disbursed excess surplus
funds pursuant to this section shall not disapprove a low- or
moderate-income housing project funded in whole or in part by the
excess surplus funds if the project is consistent with applicable
building codes and the land use designation specified in any element
of the general plan as it existed on the date the application was
deemed complete.  A local agency may require compliance with local
development standards and policies appropriate to and consistent with
meeting the quantified objectives relative to the development of
housing, as required in housing elements of the community pursuant to
subdivision (b) of Section 65583 of the Government Code.
   (i) Notwithstanding subdivision (a), any agency that has funds
that become excess surplus on July 1, 1994, shall have, pursuant to
subdivision (a), until January 1, 1995, to decide to transfer the
funds to a housing authority or other public agency, or until January
1, 1997, to expend or encumber those funds, or face sanctions
pursuant to subdivision (e).
33334.13.  (a) Notwithstanding Sections 50079.5, 50093, and 50105,
for purposes of providing assistance to mortgagors participating in a
homeownership residential mortgage revenue bond program pursuant to
Section 33750, or a home financing program pursuant to Section 52020,
or a California Housing Finance Agency home financing program, "area
median income" means the highest of the following:
   (1) Statewide median household income.
   (2) Countywide median household income.
   (3) Median family income for the area, as determined by the United
States Department of Housing and Urban Development with respect to
either a standard metropolitan statistical area or an area outside of
a standard metropolitan statistical area.
   Nothing in Section 50093 shall prevent the agency from adopting
separate family size adjustment factors or programmatic definitions
of income to qualify households, persons, and families for the
programs of the agency.
   (b) To the extent that any portion of the Low and Moderate Income
Housing Fund is expended to provide assistance to mortgagors
participating in programs whose income exceeds that of persons and
families of low or moderate income, as defined in Section 50093, the
agency shall, within two years, expend or enter into a legally
enforceable agreement to expend twice that sum exclusively to
increase and improve the community's supply of housing available at
affordable housing cost, as defined in Section 50052.5, to lower
income households, as defined in Section 50079.5, of which at least
50 percent shall be very low income households, as defined in Section
50105.
   (c) In addition to the requirements of subdivision (c) of Section
33413, the   agency shall require that the lower and very low income
dwelling units developed pursuant to this subdivision remain
available at affordable housing cost to lower and very low income
households for at least 30 years, except as to dwelling units
developed with the assistance of federal or state subsidy programs
which terminate in a shorter period and cannot be extended or
renewed.
   (d) The agency shall include within the report required by Section
33080 information with respect to compliance by the agency with the
requirements of this subdivision.
33334.14.  (a) The covenants or restrictions imposed by the agency
pursuant to subdivision (e) of Section 33334.3 may be subordinated
under any of the following alternatives:
   (1) To a lien, encumbrance, or regulatory agreement under a
federal or state program when a federal or state agency is providing
financing, refinancing, or other assistance to the housing units or
parcels, if the federal or state agency refuses to consent to the
seniority of the agency's covenant or restriction on the basis that
it is required to maintain its lien, encumbrance, or regulatory
agreement or restrictions due to statutory or regulatory
requirements, adopted or approved policies, or other guidelines
pertaining to the financing, refinancing, or other assistance of the
housing units or parcels.
   (2) To a lien, encumbrance, or regulatory agreement of a lender
other than the agency or from a bond issuance providing financing,
refinancing, or other assistance of owner-occupied units or parcels
where the agency makes a finding that an economically feasible
alternative method of financing, refinancing, or assisting the units
or parcels on substantially comparable terms and conditions, but
without subordination, is not reasonably available.
   (3) To an existing lien, encumbrance, or regulatory agreement of a
lender other than the agency or from a bond issuance providing
financing, refinancing, or other assistance of rental units, where
the agency's funds are utilized for rehabilitation of the rental
units.
   (4) To a lien, encumbrance, or regulatory agreement of a lender
other than the agency or from a bond issuance providing financing,
refinancing, or other assistance of rental units or parcels where the
agency makes a finding that an economically feasible alternative
method of financing, refinancing, or assisting the units or parcels
on substantially comparable terms and conditions, but without
subordination, is not reasonably available, and where the agency
obtains written commitments reasonably designed to protect the agency'
s investment in the event of default, including, but not limited to,
any of the following:
   (A) A right of the agency to cure a default on the loan.
   (B) A right of the agency to negotiate with the lender after
notice of default from the lender.
   (C) An agreement that if prior to foreclosure of the loan, the
agency takes title to the property and cures the default on the loan,
the lender will not exercise any right it may have to accelerate the
loan by reason of the transfer of title to the agency.
   (D) A right of the agency to purchase property from the owner at
any time after a default on the loan.
   (b) Notwithstanding the definition of "construction and
rehabilitation" in subdivision (a) of Section 33487, an agency that
has merged redevelopment projects pursuant to Article 16 (commencing
with Section 33485) of Chapter 4, and that is required to deposit
taxes into the Low and Moderate Income Housing Fund pursuant to
subdivision (a) of Section 33487, may use any of the funds for the
purposes and in the manner permitted by Sections 33334.2 and 33334.3.
  Nothing in this subdivision shall allow an agency with merged
project areas pursuant to Article 16 (commencing with Section 33485)
to utilize the provisions of paragraph (1), (2), or (3) of
subdivision (a) of Section 33334.2 so as to avoid or reduce its
obligations to deposit taxes from merged project areas into the Low
and Moderate Income Housing Fund.
33334.15.  Subsidies provided pursuant to paragraph (8) of
subdivision (e) of Section 33334.2 may include payment of a portion
of the principal and interest on bonds issued by a public agency to
finance housing for persons and families specified in that paragraph
if the agency ensures by contract that the benefit of the subsidy
will be passed on to those persons and families in the form of lower
housing costs.
33334.16.  For each interest in real property acquired using moneys
from the Low and Moderate Income Housing Fund, the agency shall,
within five years from the date it first acquires the property
interest for the development of housing affordable to persons and
families of low and moderate income, initiate activities consistent
with the development of the property for that purpose.  These
activities may include, but are not limited to, zoning changes or
agreements entered into for the development and disposition of the
property.  If these activities have not been initiated within this
period, the legislative body may, by resolution, extend the period
during which the agency may retain the property for one additional
period not to exceed five years.  The resolution of extension shall
affirm the intention of the legislative body that the property be
used for the development of housing affordable to persons and
families of low and moderate income.  In the event that physical
development of the property for this purpose has not begun by the end
of the extended period, or if the agency does not comply with this
requirement, the property shall be sold and the moneys from the sale,
less reimbursement to the agency for the cost of the sale, shall be
deposited in the agency's Low and Moderate Income Housing Fund.
33334.19.  (a) Notwithstanding Section 33670 or any other provision
of this division, an agency may increase, improve, and preserve the
supply of low- and moderate-income housing located within a transit
village plan adopted pursuant to the Transit Village Development
Planning Act of 1994, Article 8.5 (commencing with Section 65460) of
Chapter 3 of Division 1 of Title 7 of the Government Code, and is
within its territorial limits but outside of a project area.  In the
event that the agency seeks to comply with any of its obligations
under Section 33413 under a transit village plan, it shall provide
two units outside of a project area, both of which shall be at the
same level of affordability as, and otherwise comply with, all
requirements pertaining to the unit that would otherwise have been
available inside a project area.
   (b) To implement subdivision (a), an agency may increase, improve,
and preserve the supply of low- and moderate-income housing which is
located within a transit village plan with funds from the Low and
Moderate Income Housing Fund.  In using these funds, the agency shall
comply with all requirements of the Community Redevelopment Law
(Division 24 (commencing with Section 33000) of the Health and Safety
Code).
   (c) To implement subdivision (a), notwithstanding subdivision (a)
of Section 33670, an agency may determine the location and character
of any residential construction which is located within a transit
village plan and which is to be financed pursuant to Chapter 8
(commencing with Section 33750) and may make mortgage or construction
loans to participating parties through qualified mortgage lenders,
or purchase mortgage or construction loans without premium made by
qualified mortgage lenders to participating parties, for financing
residential construction of multifamily rental units located within a
transit village plan.
   (d) Expenditures from the Low and Moderate Income Housing Fund
pursuant to this section shall be deemed to be part of the agency's
redevelopment plans, as if those redevelopment plans had been amended
to include those expenditures, and the agency is not required to
comply with Article 12 (commencing with Section 33450).  The
Legislature hereby deems those expenditures to benefit the agency's
project areas.
33334.22.  (a) The Legislature finds and declares that in order to
avoid serious economic hardships and accompanying blight, it is
necessary to enact this section for the purpose of providing housing
assistance to very low, lower, and moderate-income households. This
section applies to any redevelopment agency located within Santa Cruz
County, the Contra Costa County Redevelopment Agency, and the
Monterey County Redevelopment Agency.
   (b) Notwithstanding Section 50052.5, any redevelopment agency to
which this section applies may make assistance available from its
low- and moderate-income housing fund directly to a home buyer for
the purchase of an owner-occupied home, and for purposes of that
assistance and this section, "affordable housing cost" shall not
exceed the following:
   (1) For very low income households, the product of 40 percent
times 50 percent of the area median income adjusted for family size
appropriate for the unit.
   (2) For lower income households whose gross incomes exceed the
maximum income for very low income households and do not exceed 70
percent of the area median income adjusted for family size, the
product of 40 percent times 70 percent of the area median income
adjusted for family size appropriate for the unit. In addition, for
any lower income household that has a gross income that equals or
exceeds 70 percent of the area median income adjusted for family
size, it shall be optional for any state or local funding agency to
require that the affordable housing cost not exceed 40 percent of the
gross income of the household.
   (3) For moderate income households, affordable housing cost shall
not exceed the product of 40 percent times 110 percent of the area
median income adjusted for family size appropriate for the unit. In
addition, for any moderate-income household that has a gross income
that exceeds 110 percent of the area median income adjusted for
family size, it shall be optional for any state or local funding
agency to require that affordable housing cost not exceed 40 percent
of the gross income of the household.
   (c) Any agency that provides assistance pursuant to this section
shall include in the annual report to the Controller, pursuant to
Sections 33080 and 33080.1, all of the following information:
   (1) The sales prices of homes purchased with assistance from the
agency's Low and Moderate Income Housing Fund for each year from 2000
to 2007, inclusive, for agencies in Santa Cruz County and for 2006
and 2007 for the Contra Costa County Redevelopment Agency and the
Monterey County Redevelopment Agency.
   (2) The sales prices of homes purchased and rehabilitated with
assistance from the agency's Low and Moderate Income Housing Fund for
each year from 2000 to 2007, inclusive, for agencies in Santa Cruz
County and for 2006 and 2007 for the Contra Costa County
Redevelopment Agency and the Monterey County Redevelopment Agency.
   (3) The incomes, and percentage of income paid for housing costs,
of all households that purchased, and that purchased and
rehabilitated, homes with assistance from the agency's Low and
Moderate Income Housing Fund for each year from 2000 to 2007,
inclusive, for agencies in Santa Cruz County and for 2006 and 2007
for the Contra Costa County Redevelopment Agency and the Monterey
County Redevelopment Agency.
   (d) Except as provided in subdivision (b), all provisions of
Section 50052.5, including any definitions, requirements, standards,
and regulations adopted to implement those provisions, shall apply to
this section.
   (e) By April 1, 2007, the Controller shall furnish a compilation
of the information described in subdivision (c) to the Legislature
and the director.
   (f) This section shall remain in effect only until January 1,
2008, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2008, deletes or extends
that date.
33334.25.  (a) The Legislature finds and declares all of the
following:
   (1) The transfer of funds to a joint powers authority and the use
of pooled funds within the housing market area of the participating
agencies for the purpose of providing affordable housing is of
benefit to the project area producing the tax increment.
   (2) The cost and availability of land, geophysical and
environmental limitations, community patterns, and the lack of
financing make the availability of affordable housing more difficult
in some communities.
   (3) The cooperation of local agencies and the use of pooled funds
will result in more resources than would otherwise be available for
affordable housing.
   (b) Notwithstanding any other provision of law, contiguous
agencies located within adjoining cities within a single Metropolitan
Statistical Area (MSA) may create and participate in a joint powers
authority for the purpose of pooling their low- and moderate-income
housing funds for affordable housing uses.  Agencies may transfer a
portion of their housing funds to a joint powers authority for use by
the joint powers authority pursuant to this section.  The joint
powers authority may determine the kinds of housing projects or
activities to be assisted, consistent with this section.  The joint
powers authority may loan, grant, or advance transferred housing
funds from participating agencies to a receiving entity for any
eligible housing development within the participating agency's
jurisdiction, subject to the requirements of this section.  In
addition, the agreement may authorize the joint powers authority to
issue bonds and to use the pooled funds to leverage other funds to
assist eligible developments, including loans from private
institutions and assistance provided by other governmental agencies.
   (c) Each of the following conditions shall be met and described in
a mutually binding agreement between the joint powers authority and
each participating agency:
   (1) The community of each participating agency shall have adopted
up-to-date housing elements pursuant to Article 10.6 (commencing with
Section 65580) of Division 1 of Title 7 of the Government Code, and
the housing elements have been determined to be in compliance with
the law by the Department of Housing and Community Development.
   (2) The community of each participating agency shall have met, in
its current or previous housing element cycle, 50 percent or more of
its share of the region's affordable housing needs, as defined in
Section 65584 of the Government Code, in the very low and lower
income categories of income groups defined in Section 50025.5.
   (3) Each participating agency shall hold, at least 45 days prior
to the transfer of funds to the joint powers authority, a public
hearing, after providing notice pursuant to Section 6062 of the
Government Code to solicit public comments on the draft agreement.
   (4) No housing funds shall be transferred from a project area that
has an indebtedness to its low- and moderate-income housing fund
pursuant to Section 33334.6.
   (5) No housing funds shall be transferred from an agency that has
not met its need for replacement housing pursuant to Section 33413,
unless the agency has encumbered and contractually committed
sufficient funds to meet those requirements.
   (6) Pooled funds shall be used within the participating agencies'
jurisdictions.
   (7) The agreement shall require compliance by the joint powers
authority with the provisions of this section.
   (8) The joint powers authority shall ensure that the funds it
receives are used in accordance with the requirements of this
section.
   (9) Funds transferred by an agency to a joint powers authority
pursuant to this section shall be expended or encumbered by the joint
powers authority for the purposes of this section within two years
of the transfer.  Transferred funds not so expended or encumbered by
the joint powers authority within two years after the transfer shall
be returned to the original agency and shall be deemed excess surplus
funds as provided in, and subject to, the requirements of Sections
33334.10 and 33334.12.  Excess surplus funds held by an agency may
not be transferred to a joint powers authority.
   (10) The joint powers authority shall prepare and submit an annual
report to the department that documents the amount of housing funds
received and expended or allocated for specific housing assistance
activities consistent with Sections 33080.4.
   (d) Each of the following conditions shall be met and described in
a mutually binding contract between the joint powers authority and a
receiving entity:
   (1) Pooled housing funds may only be used to pay for the direct
costs of constructing, substantially rehabilitating, or preserving
the affordability of housing units that are affordable to very low or
low income households.  Units assisted with pooled funds shall
remain available at affordable housing costs in accordance with
subdivision (f) of Section 33334.3.
   (2) Except as provided in this section, pooled housing funds may
not be used in any way that is inconsistent with the requirements of
Section 33334.3.  Pooled housing funds may not be used to pay for
planning and administrative costs, offsite improvements associated
with a housing project, or fees or exactions levied solely for
development projects constructed, substantially rehabilitated, or
preserved with pooled funds.  The receiving entity shall be subject
to the same replacement requirements provided in Section 33413 and
any relocation requirements applicable pursuant to Section 7260 of
the Government Code.
   (3) The joint powers authority shall make findings, based on
substantial evidence on the record, that each proposed use of pooled
funds will not exacerbate racial or economic segregation.
   (4) The Department of Housing and Community Development has
evaluated each proposed use of pooled funds to construct,
substantially rehabilitate, or preserve the affordability of housing
and determined that the proposed use is in compliance with this
section.  In considering whether a proposed use of funds will
exacerbate racial or economic segregation, the department shall
consider all of the following:
   (A) The record of participating jurisdictions in meeting their
share of the regional need for low and very low income households
allocated to the jurisdiction pursuant to Section 65584 of the
Government Code.
   (B) The distance of the proposed housing from a redevelopment area
from which pooled funds originated.
   (C) The income and ethnicity of the residents of the census tract
from which the pooled funds originated and in which the housing will
be located.
   (D) The housing need and availability of sufficient site for
housing within jurisdictions from which pooled funds originated.
   (e) As used in this section, the following terms shall apply:
   (1) "Housing funds" mean funds in or from the low- and
moderate-income housing fund established by an agency pursuant to
Section 33334.3.
   (2) "Joint powers authority" means a joint powers authority
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code for the purposes of
receiving and using housing funds pursuant to this section.
   (3) "Receiving entity" means any person, partnership, joint
venture, corporation, governmental body, or other organization
receiving housing funds from a joint powers authority for the purpose
of providing housing pursuant to this section.
   (f) On or after January 1, 2008, no participating agency shall
create a new joint powers authority or transfer funds to an existing
joint powers authority pursuant to this section, unless a later
enacted statute, which is enacted before January 1, 2008, deletes or
extends that date.
   (g) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted on or before January 1, 2010, deletes or
extends that date.
33334.27.  (a) The Legislature finds and declares all of the
following:
   (1) The retention of the Travis Air Force Base within the County
of Solano is crucial to the economic health of its surrounding
region.  If the closure of the Travis Air Force Base is not averted
by using the powers set forth in this section, it will cause serious
economic hardship throughout the State of California of an annual
multibillion dollar expenditure budget, increased unemployment,
deterioration of properties and land use, and undue disruption of the
lives and activities of the people of the area.  This concern is
based in large part on an inadequate supply of affordable housing for
low- and moderate-income persons and families employed by or serving
at the Travis Air Force Base.
   (2) To avoid serious economic hardship and accompanying blight, it
is necessary to enact the act which adds this section, which shall
apply only within the County of Solano and the Cities of Fairfield,
Suisun City, and Vacaville, and which is adopted only for the purpose
of retaining the Travis Air Force Base.  In enacting this act, it is
the policy of the Legislature to assist the County of Solano and the
Cities of Fairfield, Suisun City, and Vacaville in their attempt to
preserve the affected military facilities and installations for their
continued use as the Travis Air Force Base, and to protect and
enhance these vital facilities by, among other things, ensuring an
adequate supply of affordable housing in proximity to the Travis Air
Force Base.
   (3) The cost and availability of land, construction costs,
geophysical and environmental constraints, household incomes, the
market for affordable housing, commuting patterns, and fiscal and
other related factors make it infeasible for a single community
acting alone, limited to its own resources, to provide the entire
supply of affordable housing necessary to ensure the retention of the
Travis Air Force Base.  It is, therefore, necessary and appropriate
that the agencies of the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville be permitted, under specified
conditions, to pool their resources to retain the Travis Air Force
Base.  It is necessary that those agencies possess the limited
ability to use their tax-increment moneys outside their individual
communities for these limited purposes.
   (b) The agencies for the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville may create a separate joint
powers agency pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code, which joint powers
agency shall have, and exercise, powers of an agency within the
territorial jurisdiction of the City of Fairfield, Suisun City, the
City of Vacaville or the unincorporated area of the County of Solano
to provide housing for the retention of the Travis Air Force Base.
Notwithstanding any provision of existing law, the joint powers
agency shall not have the power to levy any tax.  All land use,
planning, and development decisions with regard to real property
within the City of Fairfield, the City of Suisun City, the City of
Vacaville or the unincorporated area of the County of Solano which is
to be developed or redeveloped by the joint powers agency pursuant
to this section shall continue to be under the control and
jurisdiction of the legislative body or planning commission, as
applicable, of the City of Fairfield, the City of Suisun City, the
City of Vacaville, or the unincorporated area of the County of
Solano.
   (c) The powers of the joint powers agency shall be used in
accordance with a "Travis Air Force Base Retention Program" to be
formulated and approved by the joint powers agency consistent with
this section.  The Travis Air Force Base Retention Program shall not
be implemented unless and until the legislative bodies of the County
of Solano and the Cities of Fairfield, Suisun City, and Vacaville
each adopts an ordinance approving the Travis Air Force Base
Retention Program.  The expenditure of tax-increment moneys outside
of the territorial jurisdiction of each agency involved, as
contemplated by that program, as well as the program itself, shall,
upon the adoption of each ordinance, be deemed to be a part of each
redevelopment plan for each redevelopment project generating the
tax-increment moneys to be expended in carrying out the program, as
if each redevelopment plan had been amended to include the program
and those expenditures.  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.  The
joint powers agency may amend the Travis Air Force Base Retention
Program from time to time.  The procedure for amending the ordinance
required by this section shall be the same as for adopting the
ordinance under this section.
   (d) As used in this section, "tax-increment moneys" shall mean all
tax-increment moneys allocated to an agency, including, but not
limited to, tax-increment moneys deposited in an agency's Low and
Moderate Income Fund.
   (e) Notwithstanding subdivision (c) of Section 33334.3 or Section
33670, an agency may use tax-increment moneys to develop housing
outside of the territorial jurisdiction of the agency pursuant to
this section and consistent with the provisions of a Travis Air Force
Base Retention Program approved and adopted pursuant to this
section, if each agency involved finds that no other reasonable means
of financing this housing are available in sufficient amount.  The
Legislature finds and declares that the use of tax-increment funds
pursuant to this section shall be conclusively deemed to be a benefit
to the project area in which those funds were generated.
   (f) Each of the following conditions shall be met before an agency
may use tax-increment moneys to develop housing outside its
territorial jurisdiction pursuant to this section or to lend, pay, or
advance these funds to the joint powers agency pursuant to this
section:
   (1) The community in which the agency is located must have met, in
the current or previous housing element cycle, at least 50 percent
of its existing share of the region's affordable housing needs, as
defined in Section 65684 of the Government Code, for very low income
households.
   (2) The community in which the housing will be developed shall be
the City of Fairfield, the City of Suisun City, or the City of
Vacaville.
   (3) The joint powers agency shall enter into a mutually
acceptable, binding agreement with the City of Fairfield, the City of
Suisun City, or the City of Vacaville where the housing will be
developed.  The contract shall specify the terms and conditions under
which the housing will be developed.  The contract shall specify the
responsibilities of the joint powers agency and the City of
Fairfield, the City of Suisun City, or the City of Vacaville.
   (4) The contract shall contain a provision that allows any
taxpayer or resident of the County of Solano and the Cities of
Fairfield, Suisun City, and Vacaville, the Attorney General, or any
other interested person to enforce the terms of the contract.
   (5) (A) Moneys from an agency's Low and Moderate Income Housing
Fund shall be used in the City of Fairfield, the City of Suisun City,
or the City of Vacaville to pay for the costs of developing housing
as permitted by subdivision (e) of Section 33334.2.
   (B) Notwithstanding subparagraph (A), money from a Low and
Moderate Income Housing Fund shall not be used for offsite
improvements.
   (6) (A) The joint powers agency or the City of Fairfield, the City
of Suisun City, or the City of Vacaville shall not spend money from
a Low and Moderate Income Housing Fund in any way which is
inconsistent with the requirements of Section 33334.3.
   (B) Notwithstanding subdivision (e) of Section 33334.3, the joint
powers agency, the City of Fairfield, the City of Suisun City, or the
City of Vacaville or the agency of the City of Fairfield, Suisun
City, the City of Vacaville, or the County of Solano shall not spend
money from a Low and Moderate Income Housing Fund for administrative
costs, salaries, or wages, except for legal, architectural, and
engineering costs and other salaries, wages, and costs directly
related to the planning and execution of the development of the
housing which is authorized by this section.
   (7) Each of the agencies whose Low and Moderate Income Housing
Fund moneys are to be expended pursuant to this section shall be in
compliance with all applicable replacement housing requirements of
this part.
   (8) The maximum aggregate number of dwelling units developed with
moneys transferred to the joint powers agency from the Low and
Moderate Income Housing Funds of its member agencies pursuant to this
section shall be no more than 500 dwelling units.
   (9) No agency shall transfer to the joint powers agency pursuant
to this section an amount more than:
   (A) Fifty percent of the balance of its Low and Moderate Income
Housing Fund moneys reflected in the accounts of the agency on June
30, 1997.
   (B) Fifty percent of the total amount required by Sections 33334.2
and 33334.6 to be set aside by the agency in its Low and Moderate
Income Housing Fund for all redevelopment projects for each fiscal
year commencing with the 1997-98 fiscal year and for each fiscal year
thereafter.
   (10) The County of Solano and the Cities of Fairfield, Suisun
City, and Vacaville shall each have a complete and adequate general
plan, including a housing element that substantially complies with
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code.
   (g) (1) At least 60 days before the date proposed for the approval
of the contract pursuant to subdivision (f), the joint powers agency
shall send the draft contract to the department for its review,
comment, and recommendation.
   (2) Upon receipt of a draft contract, the department shall solicit
public comments from persons and organizations experienced in
affordable housing issues.  After soliciting and considering these
public comments, the department shall review the draft contract for
its consistency with the requirements of this section.  The
department shall report its written findings and its recommendations
to the joint powers agency and the Cities of Fairfield, Suisun City,
and Vacaville, and the County of Solano, within 45 days of receiving
the draft contract.  The department may charge and the joint powers
agency shall pay a fee that shall not exceed the department's
estimated reasonable costs of complying with this section.  The joint
powers agency may pay this fee from Low and Moderate Income Housing
Fund moneys.
   (3) If the department finds that the draft contract is not
consistent with the requirements of this section, the department may
recommend changes to the draft contract to achieve that consistency.
The department shall recommend that the joint powers agency approve
the draft contract, approve the draft contract after making changes,
or not approve the draft contract.
   (4) If the department recommends against the approval of the draft
contract, the joint powers agency shall not approve the contract.
If the department recommends changes to the draft contract before its
approval, the joint powers agency shall not approve the contract
unless it makes the changes recommended by the department.
   (h) The housing units to be built within the City of Fairfield,
the City of Suisun City, or the City of Vacaville with Low and
Moderate Income Housing Fund moneys transferred pursuant to this
section shall be affordable to lower income households or very low
income households, as those terms are defined in Sections 50052.5 and
50053.
   (i) The joint powers agency shall not receive more than an
aggregate total of two million dollars ($2,000,000) from the other
agencies pursuant to this section.
   (j) (1) If any housing occupied by persons or families of very
low, low, or moderate income is destroyed by the development of
housing pursuant to the authority of this section, displaced
residents from the destroyed housing shall be provided with
relocation benefits which result in the additional replacement
housing payment required by Section 7264 of the Government Code,
enabling the person to lease or rent a comparable replacement
dwelling for a period not to exceed 96 months, instead of 48 months
as required by Section 7264 of the Government Code.
   (2) If any housing occupied by persons or families of very low,
low, or moderate income is destroyed by the development of housing
pursuant to the authority of this section, the destroyed housing
shall be replaced with housing of the same or greater size and shall
be affordable in direct proportion to the displaced income groups,
and shall be provided simultaneously with the housing developed
pursuant to the authority of this section.
   (k) In the event the Travis Air Force Base relocates from its
current location prior to the substantial commencement of
construction of the housing authorized to be developed pursuant to
this section, all moneys from the Low and Moderate Income Housing
Funds which have been transferred to the joint powers agency pursuant
to this section shall be returned by the joint powers agency to the
agencies that originally transferred the funds in ratable portion to
the proportion of the transferred funds that were transferred from
each agency.  However, nothing in this subdivision shall require the
joint powers agency to return any funds that have been expended or
committed for the purposes of the joint powers agency or which are
necessary to pay any indebtedness of the joint powers agency.
   (l) The joint powers agency established pursuant to this section
shall require, as a condition precedent to the expenditure of any
tax-increment moneys to carry out the Travis Air Force Base Retention
Program, that the real property on which the housing is developed
pursuant to that program shall be burdened with covenants running
with the land for the period and with the substance required by
Section 33334.3.  The joint powers agency shall also require that
these covenants include a mechanism that shall ensure the continued
availability of the dwelling units for very low or low-income persons
and families for the period required by Section 33334.3 in the event
the Travis Air Force Base relocates or, for any other reason, no
longer uses these housing units, or, in the absence of this continued
availability, implements a procedure that protects the joint powers
agency's investment of moneys from Low and Moderate Income Housing
Funds and provides for the pro rata return of the sales proceeds to
the Low and Moderate Income Housing Funds of those agencies expending
these funds to carry out the Travis Air Force Base Retention
Program.
   (m) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, which is chaptered before January 1,  2006, deletes or
extends that date, or unless tax-increment moneys have, prior to that
date, been received by the joint powers agency, in which case the
date of repeal of this section shall be extended until the time that
the joint powers agency shall expend these funds in accordance with
this section.  This repeal shall not affect any contract or covenant
which shall have been entered into prior to January 1,  2006, to
implement this section, and all contracts and covenants shall
continue after the repeal date in full force and effect in accordance
with their terms.
33334.28.  (a) Until January 1, 2012, subdivision (b) of Section
33334.4 shall not apply to the Redevelopment Agency of the City of
Covina insofar as it exceeds the authorized ratio due exclusively to
the use of Low and Moderate Income Housing Fund moneys to continue to
provide rental subsidies to households with members over the age of
65 years if those rental subsidies were initially provided to these
households prior to January 1, 2002.
   (b) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
33334.29.  (a) Notwithstanding Sections 33334.2, 33334.3, and
33334.6, the redevelopment agency of the City of Redding, of the
County of Shasta, or of any other city located within the County of
Shasta, may borrow and use up to two million three hundred thousand
dollars ($2,300,000) from its Low and Moderate Income Housing Fund to
provide financial assistance for the acquisition of property for a
veterans home within the territorial jurisdiction of the agency of
the City of Redding.  As used in this section, "veterans' home" shall
mean a veterans' home authorized pursuant to Division 5 (commencing
with Section 1010) of the Military and Veterans Code.
   (b) Funds borrowed pursuant to subdivision (a) shall be repaid
within 15 years from the date they are loaned, with interest at the
rate earned from time to time on funds deposited in the State of
California Local Agency Investment Fund.  The indebtedness created
pursuant to this section shall not be considered to meet the
requirements imposed by Section 33333.8, and the agency shall comply
in full with that section.  If a redevelopment agency described in
subdivision (a) is required to remit an amount of tax increment funds
to the county auditor for deposit in the county's Educational
Revenue Augmentation Fund, created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code, then the time limit on repayment of the
funds borrowed pursuant to this section shall be suspended for one
year after the funds are remitted to the county auditor.  In
addition, the agency shall receive and use tax increment funds to pay
the loan described in subdivision (a) until the funds borrowed
pursuant to subdivision (a) have been fully repaid.  The agency may
not incur any obligation with respect to loans, advance of money, or
indebtedness, or whether funded, refunded, assumed or otherwise, that
would impair or delay its ability or capacity to repay the funds
loaned pursuant to this section; except that the agency may incur
indebtedness against non-Low and Moderate Income Housing Fund moneys
if the proceeds of the indebtedness will be used to repay the funds
borrowed pursuant to this section.
33334.30.  (a) The Legislature finds and declares all of the
following:
   (1) The transfer of funds to a joint powers authority and the use
of pooled funds within the housing market area of the County of San
Mateo, within one-third of a mile of the Peninsula Corridor Joint
Powers Authority right-of-way, on property provided by the San Mateo
County Transit Authority for the purpose of providing affordable
housing that is of benefit to the project area producing the tax
increment.
   (2) The cooperation of local agencies and the use of pooled funds
will result in more resources than would otherwise be available for
affordable housing.
   (b) Notwithstanding any other provision of law, an agency of a
community within San Mateo County that has a housing element
certified by the Department of Housing and Community Development and
has met 40 percent of its very low and low-income housing needs may
create and participate in a joint powers authority for the purpose of
pooling low- and moderate-income housing funds for affordable
housing uses pursuant to this section.  No participating agency may
transfer in any fiscal year more than 25 percent of the tax increment
that is deposited into the Low and Moderate Income Housing Fund to a
joint powers authority for use by the joint powers authority
pursuant to this section.  The joint powers authority may determine
the kinds of housing projects or activities to be assisted,
consistent with this section.  The joint powers authority may loan,
grant, or advance transferred housing funds from participating
agencies to a receiving entity for any eligible housing development
within the territorial jurisdiction of a participating agency in San
Mateo County on property provided by the San Mateo County Transit
District, the San Mateo County Transportation Authority, or the
Peninsula Corridor Joint Powers Authority and located within one-half
of a mile of the San Mateo County Transit District, the San Mateo
County Transportation Authority, or the Peninsula Corridor Joint
Powers Authority right-of-way, subject to the requirements of this
section.  In addition, the agreement may authorize the joint powers
authority to issue bonds and to use the pooled funds to leverage
other funds to assist eligible developments, including loans from
private institutions and assistance provided by other governmental
agencies.
   (c) Each of the following conditions shall be met and described in
a mutually binding agreement between the joint powers authority and
each participating agency:
   (1) The community of each participating agency shall have adopted
an up-to-date housing element pursuant to Article 10.6 (commencing
with Section 65580) of Division 1 of Title 7 of the Government Code,
that has been determined to be in substantial compliance with the law
by the Department of Housing and Community Development.
   (2) The community of each participating agency shall have met, in
its current or previous housing element cycle, 40 percent or more of
its share of the region's affordable housing needs, as defined in
Section 65584 of the Government Code, in each of the very low and
lower income categories of income groups defined in Section 50025.5.
   (3) Each participating agency shall hold, at least 45 days prior
to the transfer of funds to the joint powers authority, a public
hearing, after providing notice pursuant to Section 6062 of the
Government Code to solicit public comments on the draft agreement.
   (4) No housing funds shall be transferred from a project area that
has indebtedness to its Low and Moderate Income Housing Fund
pursuant to Section 33334.6.
   (5) No housing funds shall be transferred from an agency that has
not met its need for replacement housing pursuant to Section 33413,
unless the agency has encumbered and contractually committed
sufficient funds to meet those requirements.
   (6) Pooled funds shall be used within the territorial jurisdiction
of a participating agency within the County of San Mateo, within
one-half of a mile of the San Mateo County Transit District, the San
Mateo County Transportation Authority, or the Peninsula Corridor
Joint Powers Authority right-of-way on property provided by any of
these entities.
   (7) The agreement shall require compliance by the joint powers
authority with the provisions of this section.
   (8) The joint powers authority shall ensure that the funds it
receives are used in accordance with this section.
   (9) Funds transferred by an agency to a joint powers authority
pursuant to this section shall be expended or encumbered by the joint
powers authority for the purposes of this section within two years
of the transfer. Transferred funds not so expended or encumbered by
the joint powers authority within two years after the transfer shall
be returned to the original agency and shall be deemed excess surplus
funds as provided in, and subject to, the requirements of Sections
33334.10 and 33334.12.  Excess surplus funds held by an agency may
not be transferred to a joint powers authority.
   (10) The joint powers authority shall prepare and submit an annual
report to the department that documents the amount of housing funds
received and expended or allocated for specific housing assistance
activities consistent with Section 33080.4.
   (d) Each of the following conditions shall be met and described in
a mutually binding contract between the joint powers authority and a
receiving entity:
   (1) Pooled housing funds may only be used to pay for the direct
costs of constructing, substantially rehabilitating, or preserving
the affordability of housing units that are affordable to very low or
low-income households.  Units assisted with pooled funds shall
remain available at affordable housing costs in accordance with
subdivision (f) of Section 33334.3.
   (2) Except as provided in this section, pooled housing funds may
not be used in any way that is inconsistent with the requirements of
Section 33334.3.  Pooled housing funds may not be used to pay for
planning and administrative costs, offsite improvements associated
with a housing project, or fees or exactions levied solely for
development projects constructed, substantially rehabilitated, or
preserved with pooled funds.  The receiving entity shall be subject
to the same replacement requirements provided in Section 33413 and
any relocation requirements applicable pursuant to Section 7260 of
the Government Code.
   (3) Pooled housing funds may not be used to construct a
development in a census tract that currently has more than 50 percent
of its population comprised of racial minorities or low-income
families.
   (4) The Department of Housing and Community Development has
evaluated each proposed use of pooled funds to construct,
substantially rehabilitate, or preserve the affordability of housing
and determined that the proposed use is in compliance with this
section.  In considering whether a proposed use of funds will
exacerbate racial or economic segregation, the department shall
consider all of the following:
   (A) The record of participating jurisdictions in meeting their
share of the regional need for very low and low-income households
allocated to the jurisdiction pursuant to Section 65584 of the
Government Code.
   (B) The distance of the proposed housing from a redevelopment area
from which pooled funds originated.
   (C) The income and ethnicity of the residents of the census tract
from which the pooled funds originated and in which the housing will
be located.
   (D) The housing need and availability of sufficient sites for
housing within jurisdictions from which pooled funds originated.
   (e) As used in this section, the following terms shall apply:
   (1) "Housing funds" mean funds in or from the low- and
moderate-income housing fund established by an agency pursuant to
Section 33334.3.
   (2) "Joint powers authority" means a joint powers authority
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code for the purposes of
receiving and using housing funds pursuant to this section.
   (3) "Receiving entity" means any person, partnership, joint
venture, corporation, governmental body, or other organization
receiving housing funds from a joint powers authority for the purpose
of providing housing pursuant to this section.
   (f) On or after January 1, 2009, no participating agency shall
create a new joint powers authority or transfer funds to an existing
joint powers authority pursuant to this section, unless a later
enacted statute, which is enacted before January 1, 2009, deletes or
extends that date.
   (g) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted on or before January 1, 2010, deletes or
extends that date.
33335.  Every redevelopment plan shall provide for the agency to
lease or sell all real property acquired by it in any project area,
except property conveyed by it to the community.
33336.  Every redevelopment plan shall:
   (a) Contain adequate safeguards that the work of redevelopment
will be carried out pursuant to the plan;
   (b) Provide for the retention of controls and the establishment of
any restrictions or covenants running with land sold or leased for
private use for such periods of time and under such conditions as the
legislative body deems necessary to effectuate the purposes of this
part.  The establishment of such controls is a public purpose under
the provisions of this part.
33337.  Every redevelopment plan shall contain a provision requiring
that all deeds, leases, or contracts for the sale, lease, sublease,
or other transfer of any land in a redevelopment project shall
contain the nondiscrimination clauses prescribed in Section 33436.
33338.  Every redevelopment plan shall contain other covenants,
conditions, and restrictions which the legislative body prescribes.
33339.  Every redevelopment plan shall provide for participation in
the redevelopment of property in the project area by the owners of
all or part of such property if the owners agree to participate in
the redevelopment in conformity with the redevelopment plan adopted
by the legislative body for the area.
33339.5.  Every redevelopment agency shall extend reasonable
preference to persons who are engaged in business in the project area
to reenter in business within the redeveloped area if they otherwise
meet the requirements prescribed by the redevelopment plan.
   With respect to each redevelopment project, each agency shall,
within a reasonable time before its approval of the redevelopment
plan adopt and make available for public inspection rules to
implement the operation of this section in connection with the plan.
33340.  Every redevelopment plan which contemplates property owner
participation in the redevelopment of the project area shall contain
alternative provisions for redevelopment of the property if the
owners fail to participate in the redevelopment as agreed.
33341.  Redevelopment plans may provide for the agency to issue
bonds and expend the proceeds from their sale in carrying out the
redevelopment plan.  If such an issuance is provided for, the
redevelopment plan shall also contain adequate provision for the
payment of principal and interest when they become due and payable.
33342.  Redevelopment plans may provide for the agency to acquire by
gift, purchase, lease, or condemnation all or part of the real
property in the project area.
33343.  Redevelopment plans may provide for the expenditure of money
by the community.
33344.  Redevelopment plans may provide for the community to
undertake and complete any proceedings necessary to carry out the
project.
33344.5.  After receiving the report prepared pursuant to Section
33328, or after the time period for preparation of that report has
passed, a redevelopment agency that includes a provision for the
division of taxes pursuant to Section 33670 in the redevelopment plan
shall prepare and send to each affected taxing entity, as defined in
Section 33353.2, no later than the date specified in Section
33344.6, a preliminary report which shall contain all of the
following:
   (a) The reasons for the selection of the project area.
   (b) A description of the physical and economic conditions existing
in the project area.
   (c) A description of the project area which is sufficiently
detailed for a determination as to whether the project area is
predominantly urbanized.  The description shall include at least the
following information, which shall be based upon the terms described
and defined in Section 33320.1:
   (1) The total number of acres within the project area.
   (2) The total number of acres that is characterized by the
condition described in paragraph (4) of subdivision (a) of Section
33031.
   (3) The total number of acres that are in agricultural use.
"Agricultural use" shall have the same meaning as that term is
defined in subdivision (b) of Section 51201 of the Government Code.
   (4) The total number of acres that is an integral part of an area
developed for urban uses.
   (5) The percent of property within the project area that is
predominantly urbanized.
   (6) A map of the project area that identifies the property
described in paragraphs (2), (3), and (4), and the property not
developed for an urban use.
   (d) A preliminary assessment of the proposed method of financing
the redevelopment of the project area, including an assessment of the
economic feasibility of the project and the reasons for including a
provision for the division of taxes pursuant to Section 33670 in the
redevelopment plan.
   (e) A description of the specific project or projects then
proposed by the agency.
   (f) A description of how the project or projects to be pursued by
the agency in the project area will improve or alleviate the
conditions described in subdivision (b).
   (g) If the project area contains lands that are in agricultural
use, the preliminary report shall be sent to the Department of
Conservation, the county agricultural commissioner, the county farm
bureau, the California Farm Bureau Federation, and agricultural
entities and general farm organizations that provide a written
request for notice.  A separate written request for notice shall be
required for each proposed redevelopment plan or amendment that adds
territory.  A written request for notice applicable to one
redevelopment plan or amendment shall not be effective for a
subsequent plan or amendment.
33344.6.  A redevelopment agency that is required to prepare a
preliminary report pursuant to Section 33344.5 shall send the
preliminary report no later than 90 days before the date set for a
public hearing held pursuant to Section 33355 or 33360.  However,
notwithstanding this requirement, the redevelopment agency may send
the report no later than 21 days before the hearing held pursuant to
Section 33355 or 33360 if any one of the following conditions is met:
   (a) The redevelopment plan is proposed to be adopted pursuant to
Chapter 4.5 (commencing with Section 33492).
   (b) The redevelopment plan is proposed to be adopted pursuant to
the Community Redevelopment Disaster Project Law (Part 1.5
(commencing with Section 34000)).
   (c) The redevelopment plan is proposed to be amended and the
amendment will not do any of the following:
   (1) Add new territory to the project area.
   (2) Increase the limitation on the number of dollars of property
taxes that may be divided and allocated to the agency pursuant to
Section 33670.
   (3) Increase the limitation on the amount of the bonded
indebtedness that can be outstanding at one time.
   (4) Increase 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.
   (5) Increase the time limit on the receipt of property taxes by
the agency pursuant to Section 33670.
   (6) Merge project areas.
   (d) The agency has previously provided affected taxing agencies
with the preliminary report and proposes to change the base year
assessment roll pursuant to Section 33328.5.
   (e) The affected taxing entities waive, in writing, the 90-day
notice requirement.
33345.  With respect to each redevelopment project, each agency
shall, within a reasonable time before its approval of the
redevelopment plan adopt and make available for public inspection
rules to implement the operation of owner participation in connection
with the plan.
33346.  Before the redevelopment plan of each project area is
submitted to the legislative body, it shall be submitted to the
planning commission for its report and recommendation concerning the
redevelopment plan and its conformity to the general plan adopted by
the planning commission or the legislative body.  The planning
commission may recommend for or against the approval of the
redevelopment plan.
33347.  Within 30 days after a redevelopment plan is submitted to it
for consideration, the planning commission shall make and file its
report and recommendation with the agency.  If the planning
commission does not report upon the redevelopment plan within 30 days
after its submission by the agency, the planning commission shall be
deemed to have waived its report and recommendations concerning the
plan and the agency may thereafter approve the plan without the
report and recommendations of the planning commission.
33347.5.  If there exists within the project area a project area
committee, the redevelopment plan shall be submitted to such
committee before it is submitted to the legislative body.  The
committee may, if it chooses, prepare a report and recommendation for
submission to the legislative body.
33348.  Before the approval of a redevelopment plan by the agency,
the agency shall conduct a public hearing on it.
33349.  (a) The agency shall publish notice of the hearing not less
than once a week for four successive weeks prior to the hearing.  The
notice shall be published in a newspaper of general circulation,
printed and published in the community, or if there is none, in a
newspaper selected by the agency.  The notice of hearing shall
include a legible map of the boundaries of the area or areas
designated in the proposed redevelopment plan and a general statement
of the scope and objectives of the plan in nontechnical language and
in a clear and coherent manner using words with common and everyday
meaning.
   The agency shall prepare a legal description of the boundaries of
the area or areas designated in the proposed redevelopment plan and
make this legal description available to the public for inspection
during the agency's normal business hours.  The notice of the hearing
shall state that a copy of the legal description of the boundaries
is available upon request, free of charge.
   (b) Copies of the notices published pursuant to this section shall
be mailed, by first-class mail, to the last known assessee of each
parcel of land in the area designated in the redevelopment plan, at
his or her last known address as shown on the last equalized
assessment roll of the county; or where a city assesses, levies, and
collects its own taxes, as shown on the last equalized assessment
roll of the city; or to the owner of each parcel of land within the
boundaries of the area or areas designated in the proposed
redevelopment plan, as shown on the records of the county recorder 30
days prior to the date the notice is published.
   (c) (1) Notice shall also be provided, by first-class mail, to all
residents and businesses within the project area at least 30 days
prior to the hearing.
   (2) The mailed notice requirement of this subdivision shall only
apply when mailing addresses to all individuals and businesses, or to
all occupants, are obtainable by the agency at a reasonable cost.
The notice shall be mailed by first-class mail, but may be addressed
to "occupant."  If the agency has acted in good faith to comply with
the notice requirements of this subdivision, the failure of the
agency to provide the required notice to residents or businesses
unknown to the agency or whose addresses cannot be obtained at a
reasonable cost, shall not, in and of itself, invalidate a
redevelopment plan or amendment to a redevelopment plan.
   (d) Copies of the notices published pursuant to this section shall
also be mailed to the governing body of each of the taxing agencies
that levies taxes upon any property in the project area designated in
the proposed redevelopment plan.  Notices sent pursuant to this
subdivision shall be mailed by certified mail, return receipt
requested.
33349.5.  Notwithstanding Sections 33349 and 33361, the notice
provided for in such sections applicable to the Redevelopment Agency
of the City of Crescent City need be published only once, at least
ten days prior to the hearing in question.  The notice of the hearing
by the agency on the redevelopment plan may be published at the same
time as the notice of the hearing by the legislative body on the
redevelopment plan, and both hearings may be held on the same day.
   Notwithstanding Section 33500, no action attacking or otherwise
questioning the validity of any redevelopment plan, or the adoption
or approval of such plan, or any of the findings or determinations of
the Redevelopment Agency of the City of Crescent City or the
legislative body in connection with such plan shall be brought prior
to the adoption of the redevelopment plan nor at any time after the
lapse of thirty days from and after the date of adoption of the
ordinance adopting the plan.
33350.  Each assessee whose property would be subject to acquisition
by purchase or condemnation under the plan shall be sent a statement
in nontechnical language and in a clear and coherent manner using
words with common and everyday meaning, to that effect attached to
his notice of the hearing.  Alternatively, a list or map of all
properties which would be subject to acquisition by purchase or
condemnation under the plan may be mailed to assessees with the
notices of hearing.
33350.5.  After publication of notice of agency public hearing and
prior to approval of the redevelopment plan by the agency, an agency
may exclude land from a project area after receipt of a report and
recommendation from the planning commission.  Within 30 days after a
change is submitted to it for consideration, the planning commission
shall submit its report and recommendation to the agency.  If the
planning commission does not report upon the change within 30 days
after its submission by the agency, the planning commission shall be
deemed to have waived its report and recommendation concerning the
change, and the agency may proceed to exclude the land from the
project area without the report and recommendation of the planning
commission.
33351.  Upon the preparation and approval of a redevelopment plan
the agency shall submit it to the legislative body.
33352.  Every redevelopment plan submitted by the agency to the
legislative body shall be accompanied by a report containing all of
the following:
   (a) The reasons for the selection of the project area, a
description of the specific projects then proposed by the agency, a
description of how these projects will improve or alleviate the
conditions described in subdivision (b).
   (b) A description of the physical and economic conditions
specified in Section 33031 that exist in the area that cause the
project area to be blighted.  The description shall include a list of
the conditions described in Section 33031 that exist within the
project area and a map showing where in the project the conditions
exist.
   (c) An implementation plan that describes specific goals and
objectives of the agency, specific projects then proposed by the
agency, including a program of actions and expenditures proposed to
be made within the first five years of the plan, and a description of
how these projects will improve or alleviate the conditions
described in Section 33031.
   (d) An explanation of why the elimination of blight and the
redevelopment of the project area cannot reasonably be expected to be
accomplished by private enterprise acting alone or by the
legislative body's use of financing alternatives other than tax
increment financing.
   (e) The proposed method of financing the redevelopment of the
project area in sufficient detail so that the legislative body may
determine the economic feasibility of the plan.
   (f) A method or plan for the relocation of families and persons to
be temporarily or permanently displaced from housing facilities in
the project area, which method or plan shall include the provision
required by Section 33411.1 that no persons or families of low and
moderate income shall be displaced unless and until there is a
suitable housing unit available and ready for occupancy by the
displaced person or family at rents comparable to those at the time
of their displacement.
   (g) An analysis of the preliminary plan.
   (h) The report and recommendations of the planning commission.
   (i) The summary referred to in Section 33387.
   (j) The report required by Section 65402 of the Government Code.
   (k) The report required by Section 21151 of the Public Resources
Code.
   (l) The report of the county fiscal officer as required by Section
33328.
   (m) If the project area contains low- or moderate-income housing,
a neighborhood impact report which describes in detail the impact of
the project upon the residents of the project area and the
surrounding areas, in terms of relocation, traffic circulation,
environmental quality, availability of community facilities and
services, effect on school population and quality of education,
property  assessments and taxes, and other matters affecting the
physical and social quality of the neighborhood.  The neighborhood
impact report shall also include all  of the following:
   (1) The number of dwelling units housing persons and families of
low or moderate income expected to be destroyed or removed from the
low- and moderate-income housing market as part of a redevelopment
project.
   (2) The number of persons and families of low or moderate income
expected to be displaced by the project.
   (3) The general location of housing to be rehabilitated,
developed, or constructed pursuant to Section 33413.
   (4) The number of dwelling units housing persons and families of
low or moderate income planned for construction or rehabilitation,
other than replacement housing.
   (5) The projected means of financing the proposed dwelling units
for housing persons and families of low and moderate income planned
for construction or rehabilitation.
   (6) A projected timetable for meeting the plan's relocation,
rehabilitation, and replacement housing objectives.
   (n) (1) An analysis by the agency of the report submitted by the
county as required by Section 33328, which shall include a summary of
the consultation of the agency, or attempts to consult by the
agency, with each of the affected taxing entities as required by
Section 33328.  If any of the affected taxing entities have expressed
written objections or concerns with the proposed project area as
part of these consultations, the agency shall include a response to
these concerns, additional information, if any, and, at the
discretion of the agency, proposed or adopted mitigation measures.
   (2) As used in this subdivision:
   (A) "Mitigation measures" may include the amendment of the
redevelopment plan with respect to the size or location of the
project area, time duration, total amount of tax increment to be
received by the agency, or the proposed use, size, density, or
location of development to be assisted by the agency.
   (B) "Mitigation measures" shall not include obligations to make
payments to any affected taxing entity.
33353.2.  "Affected taxing entity" means any governmental taxing
agency that levies a property tax on all or any portion of the
property located in the adopted project area in the fiscal year prior
to the fiscal year in which the report prepared pursuant to Section
33328 is issued or in any fiscal year after the date the
redevelopment plan is adopted.  To the extent that a new governmental
taxing agency wholly or partially replaces the geographic
jurisdiction of a preexisting governmental taxing agency, the new
taxing agency shall be an "affected taxing entity" and the
preexisting taxing agency shall no longer be an "affected taxing
entity."
33354.5.  Where an agency proposes to amend a redevelopment plan
which does not utilize tax increment financing to include a tax
allocation provision, the agency shall follow the same procedure and
the legislative body is subject to the same restrictions as provided
for in this article for the adoption of a plan.
33354.6.  (a) When an agency proposes to amend a redevelopment plan
which utilizes tax increment financing to add new territory to the
project area, to increase either the limitation on the number of
dollars to be allocated to the redevelopment agency or the time limit
on the establishing of loans, advances, and indebtedness established
pursuant to paragraphs (1) and (2) of subdivision (a) of Section
33333.2 or pursuant to paragraphs (1) and (2) of subdivision (a) of
Section 33333.4, to lengthen the period during which the
redevelopment plan is effective, to merge project areas, or to add
significant additional capital improvement projects, as determined by
the agency, the agency shall follow the same procedure, and the
legislative body is subject to the same restrictions as provided for
in this article for the adoption of a plan.
   (b) When an agency proposes to increase the limitation on the
number of dollars to be allocated to the redevelopment agency, it
shall describe and identify, in the report required by Section 33352,
the remaining blight within the project area, identify the portion,
if any, that is no longer blighted, the projects that are required to
be completed to eradicate the remaining blight and the relationship
between the costs of those projects and the amount of increase in the
limitation on the number of dollars to be allocated to the agency.
The ordinance adopting the amendment shall contain findings that both
(1) significant blight remains with the project area and (2) the
blight cannot be eliminated without the establishment of additional
debt and the increase in the limitation on the number of dollars to
be allocated to the redevelopment agency.