2009 California Health and Safety Code - Section 37620-37631 :: Chapter 2. Powers And Procedures

37620.  The local agency may issue bonds and bond anticipation notes
of the local agency for the purpose of financing historical
rehabilitation authorized by this part and for the purpose of funding
or refunding such bonds or notes.

37621.  The local agency may fix fees, charges, and interest rates
for financing historical rehabilitation and may from time to time
revise such fees, charges, and interest rates to reflect changes in
interest rates on the local agency's bonds, losses due to defaults,
changes in loan servicing charges, or other expenses related to
administration of the historical rehabilitation financing program.
Any change in the interest rate shall conform to the provisions of
Section 1916.5 of the Civil Code, except that paragraph (3) of
subdivision (a) of Section 1916.5 shall not apply and that the
"prescribed standard" specified in Section 1916.5 shall be
periodically determined by the legislative body after hearing
preceded by public notice to affected parties, and shall reflect
changes in interest rates on the local agency's bonds, losses due to
defaults, and bona fide changes in loan servicing charges related to
the administration of a program under the provisions of this part.
The local agency may collect interest and principal together with
such fees and charges incurred in such financing and may contract to
pay any person, partnership, association, corporation, or public
agency with respect thereto. The local agency may hold deeds of trust
as security for financing historical rehabilitation and may pledge
the same as security for repayment of bonds issued pursuant to this
part. The local agency may establish the terms and conditions for the
financing of historical rehabilitation undertaken pursuant to this
part.
   The local agency may require that the full amount owed on any loan
for historical rehabilitation made pursuant to this part shall be
due and payable upon sale or other transfer of ownership of the
property subject to such rehabilitation.

37622.  The local agency may employ or contract for any engineering,
architectural, accounting, collection, economic feasibility, or
other services in connection with the servicing of loans made to
participating parties, which may be necessary or useful in the
judgment of the local agency for the successful financing of the
historical rehabilitation. The local agency may pay the reasonable
costs of consulting engineers, architects, accountants, construction
experts, and economic feasibility experts, if, in the judgment of the
local agency, the services are necessary or useful to the successful
financing of any historical rehabilitation. The local agency may
employ, contract for, and fix the compensation of financing
consultants, bond counsel, and other advisers as may be necessary or
useful in its judgment to provide for the issuance and sale of any
bonds or bond anticipation notes of the local agency.

37623.  In addition to all other powers specifically granted by this
part, the local agency may do all things necessary or convenient to
carry out the purposes of this part.

37624.  Revenues shall be the sole source of funds pledged by the
local agency for repayment of its bonds. Bonds issued under the
provisions of this part shall not be deemed to constitute a debt or
liability of the local agency or a pledge of the faith and credit of
the local agency but shall be payable solely from revenues. The
issuance of bonds shall not directly, indirectly, or contingently
obligate the legislative body to levy or pledge any form of taxation
or to make any appropriation for their payment.

37625.  All historical rehabilitation shall be constructed or
completed subject to the rules and regulations of the local agency. A
local agency may acquire by deed, purchase, lease, contract, gift,
devise, or otherwise any real or personal property, structures,
rights, rights-of-way, franchises, easements, and other interests in
lands necessary or convenient for the financing of historical
rehabilitation, upon such terms and conditions as it deems advisable,
and may lease, sell, or dispose of the same in such manner as may be
necessary or desirable to carry out the objectives and purposes of
this part.

37626.  Prior to the issuance of any bonds or bond anticipation
notes of the local agency for historical rehabilitation, the
legislative body shall by ordinance or resolution adopt a historical
rehabilitation financing program. The program shall include, but is
not limited to, the following items:
   (a) Criteria for the selection of historical properties eligible
for financing. The criteria may include, but are not limited to, the
following items of architectural significance:
   (1) Structures or areas that embody distinguishing characteristics
of an architectural style, period, method of construction, or
architectural development in a city or county.
   (2) Notable works of a master builder, designer, or architect
whose style influenced the city's or county's architectural
development, or structures showing the evolution of an architect's
style.
   (3) Rare structures displaying a building type, design, or
indigenous building form.
   (4) Structures which embody special architectural and design
features.
   (5) Outstanding examples of structures displaying original
architectural integrity, structurally or stylistically, or both.
   (6) Unique structures or places that act as focal or pivotal
points important as a key to the character or visual quality of an
area.
   (b) The criteria may include the following items of historical
significance:
   (1) Sites and structures connected with events significant in the
economic, cultural, political, social, civic, ethnic, or military
history of a community, state, or nation.
   (2) Structures or areas identified with the lives of historical
personages of a community, state, or nation.
   (3) Sites and groups of structures representing historical
development patterns, including, but not limited to, urbanization
patterns, railroads, agricultural settlements, and canals.
   (c) Criteria for the selection of historical rehabilitation areas
may include, but are not limited to:
   (1) Areas constituting a distinct section of the city and having
special character, historical, architectural, or aesthetic interest
and value.
   (2) Areas providing significant examples of architectural styles
of the past, or landmarks in the history of architecture.
   (3) Areas serving as a reminder of past eras, events, and persons
important in local, state, or national history, and illustrating past
living styles for future generations to observe, study, and inhabit.
   (4) Historical and culturally significant grounds, gardens, and
objects.
   (d) Following the adoption of the criteria previously provided for
in this section, the designation of one or more historical
rehabilitation areas, including a description of the area, a map and
other related information.
   (e) Outstanding loans on the property to be rehabilitated,
including the amount of the loans for rehabilitation, shall not
exceed 90 percent of the anticipated value of the property after
rehabilitation.
   (f) The maximum repayment period for historical rehabilitation
loans shall be 40 years or four-fifths of the economic life of the
property, whichever is less.
   (g) No less than 90 percent of any loan for historical
rehabilitation and shall be used for financing of historical
rehabilitation, as defined in this part.
   (h) All historical rehabilitation financed pursuant to this
chapter shall be done in compliance with the appropriate
rehabilitation standards, as defined in subdivision (j) of Section
37602.
   (i) The participating party shall commence the historical
rehabilitation of a historical property within five years and shall
complete the historical rehabilitation of the historical property
within 10 years of the date on which the participating party obtained
financing pursuant to this part.

37627.  The historical rehabilitation financing program may include:
   (1) A requirement that rehabilitation financed by the program
shall meet standards higher than the applicable state or local
standards for rehabilitation of properties, including, but not
limited to, design guidelines, standards of aesthetics, use of
materials, integrity of design, or historical authenticity.
   (2) A provision for limitation of the degree or kind of historical
rehabilitation eligible for financing, including, but not limited
to, rehabilitation of parapets or dangerous parts of facades of
historic properties.
   (3) A requirement that the local agency receive a legally binding
assurance that the property rehabilitated with financing from this
program shall be preserved, subject to reasonable conditions. The
form and conditions of such assurance shall be specified in a
historical rehabilitation financing program.
   (4) A capital outlay program for the historical rehabilitation
area which identifies the public improvements needed to support
private rehabilitation efforts. Such improvements may include street
improvements, street closures, street fixtures, and landscaping.
   (5) If the program is likely to result in anticipated increases in
rents or other housing costs which would cause displacement of
residents of historic properties, or is likely to result in residents
paying a disproportionately large percentage of their incomes for
housing, a commitment that the local agency shall make efforts to
prevent displacement of residents. Such efforts shall include, but
are not limited to, utilization of federal, state, or local funding
programs which may be available for rent subsidies.
   (6) A provision for control of rents if controls are included in
order to prevent precipitous increases in rent which the
rehabilitation would engender. Such provision may include a
requirement that the borrower agree during the term of the loan not
to raise the rental amount over an amount which the local agency
establishes as a fair rate of return for similar investments and will
allow for increases that are reasonably necessary to provide for
proper maintenance of the property.

37628.  Prior to the adoption of an historical rehabilitation
financing program and the designation of an historical rehabilitation
area, the local agency shall provide for citizen participation by
persons who will be affected by historical rehabilitation financed
under the provisions of this part with opportunities to be involved
in planning and carrying out the historical rehabilitation program.
"Citizen participation" shall include, but is not limited to:
   (a) Holding a public meeting to inform the public of the proposed
historical rehabilitation financing program.
   (b) Holding a public hearing prior to the adoption of the
historical rehabilitation financing program and the designation of an
historical rehabilitation area.
   (c) Public notice by the local agency, at least seven days in
advance of a public meeting or hearing, in a newspaper of general
circulation in the area, of the time and place of a meeting or
hearing and a general description of the program.
   (d) Dissemination by the local agency, at least seven days in
advance of a public meeting or hearing, by mailing to those
individuals or groups which have requested notification, of
information relating to the time and place of a meeting or hearing
and a general description of the program.
   (e) Establishment of a citizen advisory board for the purpose of
providing recommendations to the legislative body on the contents of
the historical rehabilitation financing program. Members of the
citizens advisory board shall be appointed by the legislative body
and shall include one or more representatives of owners of properties
affected by the program, one or more representatives of residents or
occupants (if any) of properties to be affected by the program, one
or more representatives of the local community groups (if any) known
by the legislative body to be concerned with historical
rehabilitation, and others as the legislative body may deem
appropriate.
   An existing local official historic preservation board or
commission may be appointed as the citizens advisory board, provided
that, in addition, representatives as required by this section are
also appointed.

37629.  No financing shall be provided under this part until
criteria required by Section 37626 have been adopted. Properties
eligible for financing shall be located within a designated
historical rehabilitation area. Prior to granting financial
assistance, the local agency shall find that the funds loaned shall
be used for the purpose of historical rehabilitation.

37630.  (a) The local agency shall require that any property that is
rehabilitated with financing obtained under this part shall be open,
upon sale or rental of any portion thereof, to all regardless of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The local
agency shall also require that contractors and subcontractors engaged
in historical rehabilitation financed under this part provide equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code. All contracts and subcontracts for historical
rehabilitation financed under this part shall be let without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).

37631.  Any action challenging the legality of an historical
rehabilitation financing program, or of the selection of historical
properties for rehabilitation pursuant to this part, shall be
commenced within 60 days of the adoption of such program or within 60
days of such selection.