2005 California Health and Safety Code Sections 33701-33738 CHAPTER 7. SPECIAL HOUSING AND RENEWAL

33701.  Unless the context otherwise requires, the definitions
contained in this chapter govern the construction of this chapter.
33702.  (a) "Commission" means a planning commission organized
pursuant to law or city charter.
   (b) "Legislative body" means the city council, board of
supervisors, or other legislative body of a community.
   (c) "Renewal area agency" means a renewal area agency formed
pursuant to this chapter.
   (d) "Actual cost" means (1) the cost of the land and buildings,
(2) charges, including reasonable attorney fees, for the formation of
a renewal area agency, for the reasonable costs of preparing a
preliminary general plan and for financing and supervision, and (3)
carrying charges during construction, including interest on borrowed
money and invested capital, when such charges have been approved by
the commission.
   (e) "Fixed charges" include all operating and maintenance charges,
taxes, assessments, insurance and depreciation, amortization,
interest, sinking fund, and other expenses and charges approved by
the legislative body.
   (f) "Bond" means any bonds, notes, interim certificates,
debentures, or other obligations issued by a renewal area agency
pursuant to Section 33732.
   (g) "Renewal area" means any area of real property a substantial
part of which is occupied by deteriorated, obsolete, substandard,
unsafe or unsanitary structures or other improvements.  A renewal
area shall not be less than three acres nor more than 30 acres except
upon approval of the commission, which shall not approve an area in
excess of five additional acres; provided, however, that in a city, a
county, or city and county with a population in excess of 1,000,000
persons, a renewal area shall not exceed 100 acres except upon
approval of the commission, which shall not approve an area in excess
of 25 additional acres.
   (h) "Low-income housing" means housing for persons of low income
as that term is defined from time to time by a local public agency.
   (i) "Middle-income housing" means housing for persons of middle
income as that term is defined from time to time by a local public
agency.
   (j) "Normal-market housing" means housing for persons other than
those of low and middle income.
   (k) "Local public agency" means a housing authority created under
the Housing Authorities Law of this state, Chapter 1 (commencing with
Section 34200) of Part 2 of this division; or in a city or county
wherein a housing authority is not functioning, an agency designated
by the legislative body thereof.
33703.  The Legislature has found and declared herein that
deteriorated, obsolete, substandard, unsafe or unsanitary housing
conditions in the urban areas of this state are a menace to the
health, safety, morals, welfare and reasonable comfort of the
residents of such areas and the residents of this state.  The
Legislature further finds and declares that the participation by the
property owners and persons residing in renewal areas in their
rebuilding and rehabilitation is desirable to the extent that is
feasible and practicable without jeopardizing the success of
proposals to rebuild and rehabilitate the renewal areas.  It is
further found and declared that the above conditions necessitate the
formation of renewal area agencies empowered to initiate and carry
out plans for the rebuilding and rehabilitation of renewal areas,
that the public interest requires the formation of such renewal area
agencies in order to facilitate the execution of such plans by the
cooperative efforts of persons owning property or residing in such
areas, that such rebuilding and rehabilitation, financed in part by
the issuance of tax-exempt bonds and in part by minimum use of public
funds are essential to provide low-income, middle-income and
normal-market housing together with small commercial establishments
in a number sufficient to serve those persons who reside within or a
reasonable distance of the renewal area, and that such rebuilding and
rehabilitation are public uses and purposes and governmental
functions of state concern.  It is further found and declared that
the correction of the above housing conditions is a public necessity
and that the acquisition of property within the renewal area to
permit the rebuilding and rehabilitation thereof is a public use
within the meaning of the laws relating to proceedings in eminent
domain.  As a matter of legislative determination, it is hereby found
and declared that the property and bonds of a renewal area agency
formed in accordance with the provisions of this chapter are of such
character as shall be exempt from taxation.
   The purposes of this chapter are to provide persons in renewal
areas of this state with a mechanism, the renewal area agency,
through which they can initiate, plan, finance and carry out the
rebuilding or rehabilitation of such areas; to reduce or eliminate
the need for the acquisition of property by the renewal area agency
by enabling it to act as agent of the property owners and persons
residing in the renewal area; to encourage persons in such areas
voluntarily to engage in a cooperative effort based on self-help,
with a minimum use of public funds, the objective of which is to
improve the quality of urban life for themselves and their neighbors;
and to enlist the capital and technological resources of the private
sector in meeting that objective.
33704.  (a) A renewal area shall be designated as such only upon a
verified petition addressed to the legislative body and signed by not
less than 20 percent of those persons who reside within the
boundaries of such renewal area.  Such petition shall describe the
boundaries proposed by petitioners, and it shall contain the names
and addresses of all those persons signing the petition, any two of
whom shall be designated as acting chairman and acting vice chairman.
   (b) Registration as a voter within a renewal area for a period of
at least 126 days preceding execution of the petition described in
subdivision (a) shall be conclusive evidence of residence in the
renewal area.
   (c) The payment by any person of rent or for water, gas,
electricity or telephone services arising out of his occupancy of
real property within the renewal area for a period of 234 days
preceding execution of the petition described in subdivision (a)
shall be prima facie evidence of residence within the renewal area.
33705.  Upon the receipt of such a petition by the legislative body,
it shall immediately refer the petition to the commission for study.
  Study by the commission shall be made expeditiously and with the
participation in the study of petitioners, and a report of the study
shall be made to the legislative body.  Such report shall show all
the following:
   (a) The boundaries of the proposed renewal area.
   (b) The number and type of deteriorated, obsolete, unsafe or
unsanitary single or multiple buildings, and which, if any, are
recommended for rehabilitation or removal.
   (c) A preliminary general plan for the rehabilitation and renewal
of the area in conformity with the master plan of the community.
   (d) The number of single persons and families residing within the
area.
33706.  The legislative body may, upon receipt of such report from
the commission, approve the formation of a renewal area agency for
the renewal area in accordance with this chapter if the legislative
body finds and adopts a resolution stating that the provisions of
this chapter for formation have been complied with, that a
substantial part of the area included within the boundaries of the
proposed renewal area is occupied by deteriorated, obsolete,
substandard, unsafe or unsanitary structures or other improvements,
and that all the property within the boundaries of the proposed
renewal area must be included within the renewal area to accomplish
the purposes of this chapter.  The renewal area agency shall be
deemed created and authorized to exercise its powers, functions and
responsibilities from and after the date of recordation of a
certified copy of the resolution in the office of the county recorder
in the county in which the real property is located.
33707.  In any proceeding involving the validity or enforcement of
or relating to any contract of a renewal area agency, the renewal
area agency is conclusively deemed to have been established and
authorized to transact business and exercise its powers upon proof of
the adoption of a resolution by the legislative body pursuant to
Section 33706.  The resolution is sufficient if it finds in
substantially the terms of Section 33706 that all the conditions set
forth in that section exist in the renewal area.  A copy of the
resolution duly certified by the clerk is admissible in evidence in
any proceeding.
33708.  A renewal area agency for a renewal area may be formed
pursuant to this chapter for the purpose of providing low-income,
middle-income and normal-market housing, including single- or
multiple-family dwellings, and sufficient commercial establishments
to serve persons living within a reasonable distance of the renewal
area, and for the purpose of rebuilding or rehabilitating a renewal
area to maintain its neighborhood character.  An undertaking of a
renewal area agency pursuant to the provisions of this chapter shall
be treated for all purposes as though it were a redevelopment project
as that term is defined in Section 33010.
33709.  A renewal area agency is a public agency of the state.  The
business and affairs of every renewal area agency shall be controlled
by a board of not more than 15 directors, two-thirds of whom shall
be persons residing within the boundaries of the renewal area.
Residence within the boundaries of a renewal area shall be determined
in accordance with the provisions of subdivisions (b) and (c) of
Section 33704.
   Such directors shall be elected for a term of three years at a
public meeting called for that purpose upon written notice to all
those persons registered to vote and all persons owning real property
within the renewal area on the date of the notice at least 15 days
prior to such public meeting.  The notice shall be signed by the
acting chairman and the acting vice chairman and sent by one or both
of them to such registered voters and real property owners.  The
notice provided for in this section shall be sent by certified mail
with a return receipt requested.  Candidates for election to the
board of directors shall be nominated by a petition in writing signed
by three or more persons qualified to vote at such election and
filed with the acting chairman or acting vice chairman not more than
20 days after the petition provided for in Section 33704 is filed
with the legislative body.  The names of those so nominated shall
appear in the notice of election provided for in this section.  The
acting chairman or, in his absence, the acting vice chairman, shall
conduct the public meeting provided for in this section.  The 15
persons receiving the highest number of votes at such election shall
be declared elected, and there shall be no cumulative voting.  Their
terms of office shall be for three years.  Thereafter, the board of
directors shall elect its chairman and such other officers as it may
deem necessary.  All voting provided for in this section shall be by
secret ballot.
   When any office of director becomes vacant for any reason other
than the expiration of his term, the remaining directors shall
appoint a person to fill the vacancy to serve for the remainder of
the unexpired term.
   Vacancies in the board of directors as a result of the expiration
of their terms shall be filled by election at a public meeting called
by the chairman of the board of directors six months prior to the
expiration of such terms.  Candidates for election to the board of
directors shall be nominated by petition in writing signed by three
or more persons qualified to vote at such election, and filed with
the chairman not more than 60 days after the election is called.
Such election shall thereafter be noticed, held, and conducted by the
chairman and vice chairman of the board pursuant to the provisions
of this section.
33710.  None of the earnings or profits of the renewal area agency
shall inure or be paid to any private individual, and the renewal
area agency shall only issue bonds which qualify for tax exempt
status under the laws of the United States and the State of
California.
33711.  Upon completion of all requirements incident to the
formation of the renewal area agency it may:
   (a) Sue and be sued.
   (b) Make and execute contracts and other instruments necessary or
convenient to the exercise of its powers.
   (c) Make, amend, and repeal rules and regulations, not
inconsistent with this chapter, to carry into effect the powers and
purposes of the renewal area agency.
33712.  Upon completion of all requirements incident to the
formation of the renewal area agency, its board of directors may make
agreements with such agencies of the local or state government, or
agencies of the United States, as may be necessary to assist it in
further developing the preliminary general plan described in
subdivision (c) of Section 33705, and to advise it as to the economic
feasibility of such plan, and it may also make agreements with
qualified private concerns for such purpose.  The reasonable charges
therefor, if any, shall be paid by the renewal area agency.
33713.  (a) The renewal area agency may invite persons or
combinations of companies specializing in urban economics and design,
architecture, construction, housing, and commercial development to
submit proposals to rebuild or rehabilitate all or any part of the
renewal area using new techniques and technology to the end that the
same may enable the project to be carried out at low cost.
   (b) Such proposals may be submitted without regard to local
building codes applicable to construction within a renewal area, and,
upon a showing satisfactory to it that the construction proposed may
be accomplished consistently with such standards of strength,
effectiveness, fire resistance, durability and safety, as the
legislative body determines are reasonably necessary for the
protection of the health and safety of the occupants, the legislative
body, by ordinance, may, for a period long enough to complete
construction within the renewal area, suspend those provisions of the
local building codes which are inconsistent with the proposal or
proposals submitted in accordance with subdivision (a) of this
section and more restrictive than minimum state standards.
33714.  A renewal area agency may:
   (a) Lease or rent any dwellings, houses, accommodations, lands,
buildings, structures, or facilities embraced in any renewal area.
   (b) Own, hold, and improve real or personal property.
   (c) Purchase, lease, obtain option upon, acquire by gift, grant,
bequest, devise, or otherwise any real or personal property or any
interest in property.
   (d) Sell, lease, exchange, transfer, assign, pledge, or dispose of
any real or personal property or any interest in it.
   (e) Insure or provide for the insurance of any real or personal
property or operations of the authority against any risks or hazards.
33715.  The renewal area agency may make agreements with an agency
of the local or state government, or an agency of the United States,
for the payment by such agency of loans by persons owning property
within the renewal area if such loans are secured by liens on such
property.
33716.  (a) The owners of rebuilt or rehabilitated residential
property within the renewal area may do any of the following:
   (1) Occupy all or a part of such property themselves;
   (2) Lease all or a part of such property to third persons;
   (3) Lease all or a part of such property to a local public agency
for sublease by it to persons qualifying for occupancy of low or
middle income housing.
   (b) The owners of rebuilt or rehabilitated commercial property
within the renewal area may do any of the following:
   (1) Occupy all or a part of such property themselves;
   (2) Lease all or a part of such property to third persons.
   (c) (1) Owners who choose to occupy their property under the
provisions of paragraph (1) of subdivision (a) or paragraph (1) of
subdivision (b) of this section shall, for the period necessary to
amortize the bonds issued pursuant to the provisions of Section
33732, make monthly payments in lieu of rental thereon to the renewal
area agency.  Such payments shall be determined by dividing the fair
rental value for all of such property after its construction or
rehabilitation by the percentage of such property occupied by the
owner of the property.
   (2) Owners who choose to lease their property under the provisions
of paragraph (2) of subdivision (a), or paragraph (2) of subdivision
(b) of this section, shall, from the rental received therefrom
during the period necessary to amortize the bonds issued pursuant to
the provisions of Section 33732, pay to the renewal area agency such
amount as will provide the owner of the property a fair rate of
return over that period.
   (3) Owners who choose to lease their property under the provisions
of paragraph (3) of subdivision (a) of this section shall be paid as
rent on such property not more than an amount equal to a fair rate
of return over the period necessary to amortize the bonds issued
pursuant to the provisions of Section 33732.  During such period, 90
percent of the moneys paid to the local public agency for the rental
of such property shall be pledged to the repayment of such bonds in
the event of any default in the payment to the holders of the bonds
of principal of, or interest on, the bonds, provided, however, that
if no such default occurs, such moneys shall be subject to such
disposition as the legislative body may determine.
   (d) Subject to approval of the legislative body, a fair rental
value for all property within the renewal area shall be determined by
a local public agency as of the date of the application made
pursuant to the provisions of Section 33717. "Fair rental value," as
used in this section, means the amount for which the property was, or
in good faith could have been, rented on such date by a willing
owner to a willing tenant as the result of an arm's length agreement.
  Fair rental value for structures proposed for property having no
improvements thereon at the time of said application shall not exceed
the fair rental value of comparable unimproved property elsewhere
within the renewal area.  For a period of not to exceed 10 years from
the date of completion of construction or rehabilitation of property
within the renewal area, the fair rental value of all property
within such area may be increased by 6 percent of such fair rental
value in each year of such 10-year period.
   (e) "Fair return," as used in this section, means the amount each
owner would have received on his property in its condition on the
date of the application made pursuant to the provisions of Section
33717, and such fair return shall not exceed an average of 8 percent
per year of the fair market value of the property in such condition
over the period necessary to amortize the bonds issued pursuant to
the provisions of Section 33732.  In determining a fair return to
each owner, all pertinent factors shall be considered including, but
without being limited to, the discounted cash flow that will be
received by him from property within the renewal area which is newly
constructed or rehabilitated.  The discounted cash flow shall include
an estimate of the capitalized value of such property at the end of
the period necessary to amortize the bonds issued pursuant to the
provisions of Section 33732.
   (f) "Discounted cash flow," as used in this section, means the
value of the year-to-year cash flow available to the owner of the
newly constructed or rehabilitated property because of his investment
in that property.  Such value shall be determined by discounting
annually the cash flow available to him by a compound interest factor
of 8 percent back to the first year in which such new construction
or rehabilitation occurred.
   (g) Except as otherwise provided therein, all amounts paid to the
renewal area agency under the provisions of paragraphs (1), (2) and
(3) of subdivision (c) of this section shall be applied by it to the
amortization of the bonds issued pursuant to the provisions of
Section 33732.
   (h) Nothing in this section shall be construed as a prohibition
against sale or conveyance of his property by an owner or owners
thereof.
33717.  Upon completion by the renewal area agency of specific plans
for the rehabilitation and renewal of the renewal area, it shall, by
verified application, apply to the commission for approval of such
plans.  Such application shall be submitted to the commission within
nine months from the date the resolution provided for in Section
33706 has been adopted by the legislative body, except that, for good
cause shown by the renewal area agency, the commission may allow an
additional period of six months within which such application may be
submitted to it.  If such application is not submitted within the
time specified in this section, or such period as it may be extended
as provided for herein, the renewal area agency shall be deemed
dissolved and the project planned by it shall be deemed abandoned.
The commission shall not approve such plans unless they show all the
following:
   (a) The exact boundaries of the renewal area.
   (b) The number and type of buildings to be rehabilitated or
removed.
   (c) The number of single persons and families who have indicated
they have requested temporary or permanent relocation housing and
that such housing is available to them at a fair rental value.
   (d) Site development with plans, elevations, design and
perspective of the housing and commercial construction proposed.
   (e) Specifications and estimates of the cost of carrying out such
plans.
   (f) A reasonable scheme of protective restrictions and of
permanent maintenance of neighborhood design and architectural
control.
   (g) A practicable method of financing the cost of carrying out the
plans by issuing the bonds described in Section 33732 or evidence in
writing that such bonds, when issued, will be guaranteed by an
agency of the United States or the State of California, or both.
   (h) The number of persons who have made agreements with the
renewal area agency to lease their property within the renewal area
to a local public agency and the amount of money necessary to make
payments of the rental under such agreements.
   (i) The number of persons who have made agreements with the
renewal area agency to make payments to it in lieu of rental and
other charges.
   (j) The assessed value of all real property within the renewal
area as of the date of the application pursuant to this section.
   (k) The fair rental value of all residential and commercial
property within the renewal area of the date of the application
pursuant to this section.
   (l) Consent to the application in writing from 60 percent or more
of those persons owning real property within the renewal area.
Ownership of real property shall be determined on the basis of the
last equalized assessment roll of the city or city and county wherein
the renewal area is located, provided, however, that persons
purchasing real property within the renewal area between the date of
such last equalized assessment roll and the date of the petition
provided for in Section 33704 shall be included in determining
whether 60 percent or more of those persons owning real property
within the renewal area have consented to the application provided
for in this subdivision.
   (m) The election of directors provided for in Section 33709 was
duly held pursuant to notice of the election, and no proceedings are
pending for the removal of any director so elected on the ground that
notice was not given as provided for in Section 33709.
   (n) That notice in writing has been sent to all registered voters
and persons owning real property within the renewal area.  Such
notice shall be sent by certified mail with a return receipt
requested, and it shall specify the date, time and place for a
hearing on the application before the commission.
33718.  In approving plans submitted in accordance with Section
33717, the commission, in giving or withholding its approval of
plans, shall give due consideration to the need estimated to exist at
the time of completion of the project for low-income, middle-income
and normal-market housing, and it shall also give due consideration
to the need for small commercial establishments necessary to serve
the needs of the neighborhood, the importance of play and park spaces
within the area, the preservation of neighborhood characteristics
and the need for light, air and open space between low and medium
rise housing and other structures.  In a city or city and county
which has enacted an ordinance the effect of which is to encourage
the inclusion of these features in residential areas by a bonus
system based on floor area ratios, the commission may apply its
provisions to the plans submitted pursuant to Section 33717.
33719.  When the commission has approved a project of a renewal area
agency formed under this chapter, the renewal area agency may
acquire the property necessary for the project by gift, bequest,
purchase, lease, or eminent domain, provided, however, that if the
renewal area agency acquires the property by lease, the term of the
lease shall not exceed the period necessary to amortize bonds issued
or repay indebtedness incurred by the renewal area agency.
33720.  The power of eminent domain shall not be exercised by the
renewal area agency unless the legislative body has adopted a
resolution of necessity that satisfies the requirements of Article 2
(commencing with Section 1245.210) of Chapter 4 of Title 7 of Part 3
of the Code of Civil Procedure.
33724.  All property of the renewal area agency, and all property of
persons participating in the rebuilding or rehabilitation of the
renewal area or who derive any benefit from the rebuilding or
rehabilitation, shall be sold, transferred, leased, purchased,
acquired, administered and managed without discrimination on account
of race, color, creed, religion, sex, marital status, ancestry or
national origin.
33725.  Without the prior consent of the legislative body, a renewal
area agency shall not mortgage or otherwise encumber real property,
except in accordance with the provisions of this chapter.
33726.  A renewal area agency shall not effect any reorganization,
winding up, or dissolution unless authorized by the legislative body.
33727.  A renewal area agency shall not voluntarily dissolve or
transfer all or substantially all of its assets without first
obtaining the consent of the legislative body.
33728.  A renewal area agency shall not make any guaranty without
the approval of the legislative body.
33729.  Any purchase, conveyance, contract, encumbrance, lease, or
sublease made in violation of this chapter is voidable, but only at
the instance of a party to the transaction alleged to be in violation
of this chapter.  Any action brought under the provisions of this
section shall be barred unless filed within three years from the date
of such transaction.
33730.  The renewal area agency may:
   (a) Borrow money from and mortgage, pledge or otherwise
hypothecate its property to any bank or lending institution or any
other corporation or agency established by the United States or the
State of California.
   (b) Comply with the provisions for membership and become a member
of the Federal Home Loan Bank or of any other corporation or agency
established by the United States or the State of California.
   (c) Comply with any regulations of the Department of Housing and
Urban Development.
33731.  Upon approval of the plans submitted in accordance with
Section 33717, the commission shall forward a report of the approval
to the legislative body with its recommendations.  The legislative
body may approve or reject the report and recommendations, and it may
impose further conditions.  If the legislative body is considering
the report and recommendations pertaining to the plans for more than
one renewal area, it may assign a priority to each of such separate
plans or otherwise provide for the execution of such plans at
different times, provided however that it shall not approve a plan
for a renewal area within the boundaries of an area previously
approved by the commission as a redevelopment project area, except
with the consent of the redevelopment agency, as defined in Section
33003.
33732.  Upon the approval of the plans by the legislative body, it
may authorize the issuance of bonds by the renewal area agency to
finance the actual cost thereof in accordance with the following
provisions, but subject to any other provisions of this chapter which
may be inconsistent with this section:
   (a) A renewal area agency may issue bonds for any of its corporate
purposes. It may also issue refunding bonds for the purpose of
paying or retiring bonds previously issued by it.
   (b) A renewal area agency may issue such types of bonds as it
determines, including bonds on which the principal and interest are
payable:
   (i) Exclusively from the income and revenues of the renewal area
project financed with the proceeds of the bonds, or with such
proceeds together with a grant from the federal government in aid of
the project.
   (ii) Exclusively from the income and revenues of certain
designated renewal area projects whether or not they were financed in
whole or in part with the proceeds of the bonds.
   (iii) From its revenues generally.
   (c) Any of the bonds may be additionally secured by a pledge of
any revenues or a mortgage of any renewal area project or other
property of the renewal area agency.
   (d) Neither the director of a renewal area agency nor any person
executing the bonds is liable personally on the bonds by reason of
their issuance.  The bonds and other obligations of a renewal area
agency are not debts of the city, county, state, or any of its
political subdivisions and neither are they liable on the bonds; and
the bonds shall so state on their face.  The bonds do not constitute
an indebtedness within the meaning of any constitutional or statutory
debt limitation.
   (e) By resolution, a renewal area agency may authorize bonds.  The
resolution, its trust indenture, or mortgage may provide for:
   (i) The issuance of bonds in one or more series.
   (ii) The date the bonds shall bear.
   (iii) The date of maturity.
   (iv) The interest rate.
   (v) The denomination of the bonds.
   (vi) The form of the bonds, either coupon or registered.
   (vii) The conversion or registration privileges which the bonds
shall carry.
   (viii) The rank or priority of the bonds.
   (ix) The manner of execution of the bonds.
   (x) The medium of payment in which the bonds are payable.
   (xi) The place of payment.
   (xii) The terms of redemption, with or without premium.
   (f) The bonds may be sold at public sale.  At least five days
prior to the sale, notice shall be published once in a newspaper
having a general circulation in the city or the county and in a
financial    newspaper published in the City and County of San
Francisco or in the City of Los Angeles.  The bonds may be sold at
not less than par to the federal government at private sale without
any public advertisement.
   (g) If any renewal area agency officer whose signature appears on
bonds or coupons ceases to be an officer before delivery of the
bonds, his signature is as effective as if he had remained in office.
  Bonds issued pursuant to this chapter are fully negotiable.
   (h) In any proceedings involving the validity or enforceability of
any bond or its security, any such bond reciting in substance that
it has been issued by the renewal area agency to aid in financing a
renewal area project to provide housing and establishments as
described in Section 33708 is conclusively deemed to have been issued
for a renewal area project of such character and such project is
conclusively deemed to have been planned, located, and constructed
pursuant to this chapter.
   (i) In connection with the issuance of bonds or the incurring of
obligations under leases and in order to secure the payment of the
bonds or obligations, a renewal area agency has the powers conferred
by subdivisions (i) to (o), inclusive.
   (j) A renewal area agency may:
   (i) Pledge all or any part of its gross or net rents, fees, or
revenues to which its right then exists or may thereafter come into
existence.
   (ii) Mortgage all or any part of its real or personal property
then owned or thereafter acquired.
   (k) A renewal area agency may:
   (i) Covenant against pledging all or part of its rents, fees, and
revenues, against mortgaging all or part of its real or personal
property, to which its right or title then exists or may thereafter
come into existence, or against permitting or suffering any lien on
such revenues or property.
   (ii) Covenant with respect to limitations on its right to sell,
lease, or otherwise dispose of all or part of any renewal area
project.
   (iii) Covenant as to what other or additional debts or obligations
may be incurred by it.
   (iv) Covenant as to the bonds to be issued, as to their issuance
in escrow or otherwise, and as to the use and disposition of the bond
proceeds.
   (v) Provide for the replacement of lost, destroyed, or mutilated
bonds.
   (vi) Covenant against extending the time for the payment of its
bonds or interest on them.
   (vii) Redeem the bonds, covenant for their redemption, and provide
the redemption terms and conditions.
   (l) A renewal area agency may:
   (i) Covenant as to the rents and fees to be charged in the
operation of a renewal area project, the amount to be raised each
year or other period of time by rents, fees, and other revenue, and
as to their use and disposition.
   (ii) Create or authorize the creation of special funds for money
held for construction or operating costs, debt service, reserves, or
other purposes, and covenant as to the use and disposition of the
money held in the funds.
   (m) A renewal area agency may prescribe procedure by which the
terms of any contract with bondholders may be amended or abrogated,
the amount of bonds whose holders are required to consent, and the
manner in which consent may be given.
   (n) A renewal area agency may:
   (i) Covenant as to the use of any or all of its real or personal
property.
   (ii) Covenant as to the maintenance of its real and personal
property, its replacement, the insurance to be carried on it, and the
use and disposition of insurance money.
   (iii) Covenant as to the rights, liabilities, powers, and duties
arising upon the breach by it of any covenant, condition, or
obligation.
   (iv) Covenant and prescribe as to events of default and terms and
conditions upon which any or all of if its bonds or obligations
become or may be declared due before maturity, and as to the terms
and conditions upon which such declaration and its consequences may
be waived.
   (o) A renewal area agency may:
   (i) Vest in a trustee or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants
securing or relating to the bonds.
   (ii) Vest in a trustee the right, in the event of a default by the
renewal area agency, to take possession and use, operate, and manage
all or part of any renewal area project, to collect the rents and
revenues arising from it, and to dispose of the money pursuant to the
agreement of the renewal area agency with the trustee.
   (iii) Provide for the powers and duties of a trustee and limit his
liabilities.
   (iv) Provide the terms and conditions upon which the trustee or
the holders of bonds or any proportion of them may enforce any
covenant or rights securing or relating to the bonds.
   (p) A renewal area agency may exercise all or any part or
combination of the powers granted in subdivisions (i) to (n),
inclusive, and make covenants other than the covenants expressly
authorized in such sections, of like or different character.  A
renewal area agency may make covenants and do any and all acts and
things necessary, convenient, or desirable to secure its bonds, or
which will tend to make them more marketable notwithstanding that
such covenants, acts, or things are not enumerated in this chapter.
   (q) A renewal area agency may submit to the Attorney General any
bonds to be issued pursuant to this chapter after all proceedings for
their issuance have been taken.  Upon such submission the Attorney
General shall examine into and pass upon the validity of the bonds
and the regularity of all proceedings in connection with them.  If
the proceedings conform to this chapter and are otherwise regular in
form and if the bonds when delivered and paid for will constitute
binding and legal obligations of the renewal area agency enforceable
according to their terms, the Attorney General shall certify in
substance upon the back of each bond that it is issued in accordance
with the Constitution and state laws.
   (r) Subject only to any contractual restrictions binding upon him,
an obligee may:
   (i) By proper proceeding compel the renewal area agency and its
officers, agents, or employees to perform each and every provision
contained in any contract of the renewal area agency with or for his
benefit, and require the carrying out of any or all the covenants and
agreements of the renewal area agency and the fulfillment of all
duties imposed upon it by this chapter.
   (ii) By proper proceeding enjoin any acts or things which may be
unlawful, or the violation of any of his rights by the renewal area
agency.
   (s) By its resolution, trust indenture, mortgage, lease, or other
contract a renewal area agency may confer upon any obligee holding or
representing a specified amount in bonds, or holding a lease, the
following rights to be exercised upon the happening of an event of
default defined in the resolution or instrument, by proceeding in any
court of competent jurisdiction:
   (i) To cause possession of all or part of any renewal area project
to be surrendered to him.
   (ii) To obtain the appointment of a receiver of all or part of any
renewal area project and of the rents and profits from it.  If the
receiver is appointed, he may enter and take possession of the
renewal area project or the part of it, operate and maintain it,
collect and receive all fees, rents, revenues, or other charges
thereafter arising from it, and keep such money in a separate account
and apply it pursuant to the obligations of the renewal area agency
as the court directs.
   (iii) To require the renewal area agency and its directors to
account as if it and they were the trustees of an express trust.
   Nothing in this subdivision relieves any person from any duty of
exercising reasonable care in selecting securities.
   (t) Notwithstanding any restrictions on investments contained in
any laws of this state, the state, all public officers, municipal
corporations, political subdivisions, and public bodies, all banks,
bankers, trust companies, savings banks and institutions, building
and loan associations, savings and loan associations, investment
companies, and other persons carrying on a banking business, all
insurance companies, insurance associations, and other persons
carrying on an insurance business, and all executors, administrators,
guardians, trustees, and other fiduciaries may legally invest any
sinking funds, moneys, or other funds belonging to them or within
their control in any bonds issued by a renewal area agency pursuant
to this chapter, or issued by any public housing authority or agency
in the United States, when such bonds or other obligations are
secured by a pledge of annual contributions to be paid by the United
States government or any agency thereof, and such bonds shall be
authorized security for all public deposits.
   (u) It is the purpose of subdivision (t) to authorize any person,
political subdivision, body, or officer, public or private, to use
any funds owned or controlled by him or it, including sinking,
insurance, investment, retirement, compensation, pension, and trust
funds, and funds held on deposit, for the purchase of any such bonds
or other obligations.
   (v) Insofar as the provisions of subdivisions (t) and (u) are
inconsistent with the provisions of any other law, the provisions of
such subdivisions are controlling.
33733.  A renewal area agency formed pursuant to the provisions of
this chapter shall not issue bonds in an aggregate amount greater
than the actual cost of carrying out the plans, plus fixed charges,
during the period necessary to completely carry out the plans, and an
allowance of 10 percent of the estimated cost of carrying out the
plans for working capital.
33734.  (a) Each authorized issue of bonds shall relate to the
particular renewal area for which the renewal area agency is formed.
The face amount, maturities and interest payable on bonds issued
pursuant to this chapter, shall be sufficient, when considered with
other amounts payable to or by the renewal area agency, to finance
the actual cost of carrying out the plans for the renewal area and
the fixed charges attributable to carrying out such plans.
   (b) During the period necessary to amortize the bonds issued
pursuant to the provisions of Section 33732, persons owning real
property within the renewal area shall pay to the renewal area agency
each year during such period, an amount equal to 5 percent of the
assessed value of such real property, if such persons have not (i)
given their consent to the application provided for in Section 33717,
and (ii) the improvements on such real property are found by the
legislative body to be deteriorated, obsolete, substandard, unsafe or
unsanitary.
   (c) Payments made to the renewal area agency under subdivision (b)
of this section shall be pledged to and used for the repayment of
indebtedness incurred in financing the cost of carrying out
construction and rehabilitation of other real property within the
renewal area.
33735.  Any agency of the State of California or of the United
States, if otherwise authorized by law and in accordance with the
provisions of such law, may guarantee the payment of bonds authorized
pursuant to this chapter.
33736.  Subject to approval of the legislative body, property taxes
on all real property within the renewal area may be divided between
the assessment base of such property prior to approval of the plans
pursuant to this chapter and the increase in the assessment base
attributable to the increase in the value of such real property by
reason of the rehabilitation and renewal of such real property, and
all property taxes on any such increase in the assessed valuation may
be pledged to the repayment of indebtedness incurred in financing
the cost of carrying out such rehabilitation and renewal.
33737.  During the period necessary to carry out the plans for the
rebuilding and rehabilitation of a renewal area and after the
approval of such plans in accordance with the provisions of Section
33731, the renewal area agency formed to carry out such plans may
accept, and persons owning real property within such renewal area may
make, conveyances of real property to the renewal area agency
pursuant to this section.  Each such conveyance shall contain a
provision that title to the property so conveyed shall revert to the
grantor within two years from the date of such conveyance.  Each such
conveyance shall be made to or accepted by the renewal area agency
only upon evidence satisfactory to it that construction or
rehabilitation of the real property so conveyed shall be completed
within a period of two years or less from the date of such
conveyance.
33737.5.  No conveyance under Section 33737 shall be valid unless
the renewal area agency records the deed with the county recorder in
the county in which the real property is located.  The deed shall
contain the following information:
   1. The name and address of the grantor conveying the property.
   2. A legal description of the real property conveyed.
   3. A statement that title to the property conveyed shall revert to
the grantor within two years of the conveyance.
   4. Proof of the acceptance of the conveyance by the renewal area
agency and the date of the acceptance.
33737.6.  In each case where property reverts to a grantor pursuant
to Section 33737, the renewal area agency shall record a certificate
with the county in which the property is located.  The certificate
shall contain the following information:
   (1) The name and address of the grantor.
   (2) A legal description of the real property.
   (3) A statement that title to the property has reverted to the
grantor.
   (4) Proof by the renewal area agency that the property has
reverted to the grantor.  The grantor has the right to compel the
renewal area agency to record such certificate by any appropriate
civil action.
33738.  If any section or part of any section of this chapter is for
any reason held unconstitutional, such decision shall not affect the
validity of the remaining portions of this chapter or any section or
part of any section of this chapter.