2007 California Health and Safety Code Chapter 3.8. Community Renewal

CA Codes (hsc:50199.70-50199.81)

50199.70.  The Legislature hereby finds and declares all of the
following:
   (a) The federal Community Renewal Tax Relief Act of 2000 (Public
Law 106-554), amending the Internal Revenue Code of 1986, establishes
a system of distributing commercial revitalization tax deductions
and a commercial revitalization expenditure ceiling to stimulate the
development of designated renewal communities.
   (b) The first designated renewal communities include specified
areas in San Francisco, San Diego, and Los Angeles as urban renewal
communities, and Parlier and Orange Cove as rural renewal
communities, through partnerships between those communities and the
state.
   (c) The federal law allows for a maximum commercial revitalization
expenditure ceiling of twelve million dollars (,000,000) for each
renewal community designated in the state.  The ceiling amount is
available for allocation during each calendar year after 2001 and
before 2010 for each renewal community in the state.
   (d) To allocate the commercial revitalization expenditures
available to it, the state must comply with certain requirements
specified in Section 1400E and following of Title 26 of the United
States Code, including designating a commercial revitalization agency
for the state and developing a qualified allocation plan.  This plan
is to be formulated by the state's commercial revitalization agency.

   (e) The renewal community program offers the state an opportunity
to provide federally funded financial and economic benefits to
certain communities that have a demonstrated need for that
assistance.  It is in the interest of the people of this state that
action be taken as necessary to obtain those benefits.



50199.71.  (a) This chapter is enacted to comply with the
requirements of Section 1400E and following of Title 26 of the United
States Code, as it may be amended from time to time.
   (b) To the extent that any provision of this chapter is held to be
inconsistent with, or repugnant to, federal law, the provision shall
be given effect in accordance with its terms to the greatest extent
possible and consistent with the federal law and any inconsistency
shall have no effect on the remaining provisions of this chapter.



50199.72.  (a) "Act" means the federal Community Renewal Tax Relief
Act of 2000, as it may be amended (26 U.S.C. Sec. 1400E and
following).
   (b) "Applicant" means a private entity that has a partnership with
a designated renewal community and that submits an application, in
the form developed by the committee, as defined in subdivision (c),
for the purpose of allocating the state's available commercial
revitalization expenditure ceiling.
   (c) "Committee" means the California Tax Credit Allocation
Committee, as defined in Sections 50199.7 and 50199.8.
   (d) "Designated renewal community" means a community designated as
a renewal community by the Secretary of the United States Housing
and Urban Development Agency pursuant to Section 1400E of Title 26 of
the United States Code.


50199.73.  (a) The committee shall develop a qualified allocation
plan that complies with Section 1400I(e)(2) of Title 26 of the United
States Code, and includes, but is not limited to, the following:
   (1) Selection criteria to be used to determine priorities of the
committee that are appropriate to local conditions and that consider
all of the following:
   (A) The degree to which a project contributes to the
implementation of a strategic plan devised for a renewal community.
   (B) The amount of any increase in permanent, full-time employment.

   (C) The active involvement of residents and nonprofit groups
within the renewal community.
   (2) A procedure that the committee will follow to monitor
compliance with the act.
   (b) Prior to implementation of the initial qualified allocation
plan, the committee shall provide for a public hearing and reasonable
period for public comment.  Following the public comment period, the
final qualified allocation plan shall be approved by the committee.

   (c) The qualified allocation plan shall be reviewed by the
committee on an annual basis.  If any changes are proposed, the
committee shall allow for a reasonable period of public comment to
review the proposed changes.  Any final modifications to the
qualified allocation plan shall be approved by the committee.



50199.74.  (a) The committee is hereby designated as the state's
only commercial revitalization agency for purposes of Section 1400I
of Title 26 of the United States Code.  The committee shall annually
allocate the aggregate commercial revitalization expenditure amount
available to the state in accordance with this chapter and applicable
federal law.  The committee shall undertake any and all
responsibilities of commercial revitalization agencies set forth in
Section 1400I of Title 26 of the United States Code.
   (b) For the purpose of allocating the state's aggregate commercial
revitalization expenditure amount, the committee shall do all of the
following:
   (1) Determine and disseminate the requirements for an application
for allocation of the commercial revitalization expenditures.
   (2) Devise and implement the review procedure to determine the
priority of each project as well as the amount of qualifying
expenditures attributable to each application.
   (3) Allocate the available commercial revitalization expenditures
for each calendar year among the applicants.
   (c) The committee shall not be required to allocate twelve million
dollars (,000,000) to each renewal community.
   (d) The committee shall develop and provide application forms for
use by applicants.  The committee shall adopt uniform procedures for
submission and review of applications, including fees it shall charge
to defray the committee's cost in administering this chapter.  In
the committee's discretion, the fees may be charged to an applicant
as a condition of submitting an application or as a condition of
receiving an allocation or reservation of the state's current or
anticipated commercial revitalization ceiling, or both.
   (e) No allocations or reservations shall be made pursuant to this
section with respect to projects that do not meet the requirements of
the qualified allocation plan, this chapter, or Section 1400I of
Title 26 of the United States Code.


50199.75.  (a) The committee shall establish and collect fees
payable by the commercial revitalization expenditure applicant or
recipient to the committee to cover all of the costs of the committee
in carrying out its responsibility under this chapter.
   (b) The Community Revitalization Fee Fund is hereby created in the
State Treasury.  The fees collected pursuant to this chapter shall
be deposited by the committee in the Community Revitalization Fee
Fund and, upon appropriation by the Legislature, moneys in the fund
shall be available to the committee for the purpose of covering all
of those costs, except that fees may be shared, in an amount
determined by the committee, with any state or local agency that
assists the committee in performing its duties.
   (c) Until the time that sufficient fee revenue is received by the
committee, the committee may borrow any money as may be required for
the purpose of meeting necessary expenses of the operation of the
committee, not to exceed the amount appropriated.  Any loan made to
the committee pursuant to this subdivision shall be repayable solely
from moneys appropriated to the committee from the Community
Revitalization Fee Account and shall not constitute a general
obligation for which the faith and credit of the state are pledged.




50199.76.  Any allocation or reservation of a portion of the current
or future commercial revitalization expenditure ceiling by the
committee may be upon terms and conditions that the committee may
determine.  For example, the committee may condition an allocation or
reservation on the execution of a contract between the commercial
revitalization expenditure recipient and the committee or state or
local agency requiring the recipient to comply with all the terms of
Section 1400E and following of the Internal Revenue Code, any
applicable state law, and any additional requirements that the
committee deems necessary or appropriate, and providing for legal
action to obtain specific performance or monetary damages for breach
of contract.



50199.77.  The committee shall adopt and supply forms for eliciting
information for the purposes of this chapter from applicants.  State
and local agencies, applicants, and recipients shall provide the
committee with any information requested by the committee in
performing its duties and responsibilities pursuant to this chapter
and the act.



50199.78.  No allocation or reservation made by the committee may be
transferred by the recipient unless the specific, written approval
of the committee is obtained prior to the proposed transfer.  Any
such transfer shall be made in writing and shall be subject to the
terms and conditions set forth by the committee.



50199.79.  The committee shall coordinate efforts with the federal
Department of Housing and Urban Development and the renewal
communities, including reporting on progress measurements and
facilitating outreach to local business and housing developers.




50199.80.  (a) The committee may adopt, amend, or repeal rules and
regulations for allocation of commercial revitalization expenditures
pursuant to this chapter without complying with the procedural
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, except as described
in subdivision (b).
   (b) The committee shall provide a notice of proposed action as
described in Section 11346.5 of the Government Code.  The notice of
proposed action shall be provided to the public at least 21 days
before the close of the public comment period, and the committee
shall schedule at least one public hearing as described in Section
11346.8 of the Government Code before the close of the public comment
period.  The committee shall maintain a rulemaking file as described
in Section 11347.3 of the Government Code.  The final version of the
regulations shall be accompanied by a final statement of reasons as
described in subdivision (a) of Section 11346.9 of the Government
Code.
   (c) These rules and regulations shall be effective immediately
upon adoption by the committee.
   (d) The committee may also adopt, amend, or repeal emergency rules
and regulations pursuant to this chapter.  The adoption, amendment,
or repeal of these regulations shall be conclusively presumed to be
necessary for the immediate preservation of the public peace, health,
safety, or general welfare within the meaning or purposes of Section
11346.1 of the Government Code.


50199.81.  This chapter shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.  However, repeal of this chapter shall not invalidate or
in any way affect the duration of any previously allocated or
reserved commercial revitalization expenditures.