First on LBReport.com State Senator Alan Lowenthal Authors Bill Inviting High-Density Housing With Taxpayer-Paid Infrastructure
(March 23, 2006) -- Roughly 14 years after winning election to the LB City Council by blasting City Hall-backed housing density that destabilized neighborhoods and left taxpayers paying for police and city service levels, state Senator Alan Lowenthal (D., LB-SP-PV) has introduced a bill -- supported by the "League of CA Cities" in which LB City Hall is a member -- that invites increased density in areas targeted by City Halls and regional officialdom by offering taxpayer dollars to fund its infrastructure.
SB 1754, which the "League of CA Cities" calls a "collaborative" local and regional approach "to achieve housing density and affordable housing goals" was quietly introduced in late February and is set for its first hearing on April 5 in the state Senate's Local Government Committee.
The bill has flown nearly below the civic radar...and isn't mentioned in the news section of Lowenthal's State Senate website. It also hasn't been discussed publicly by LB City Council incumbents or by candidates seeking to replace them who would be making decisions on whether to invite such further density in LB if Lowenthal's bill becomes law.
State Senator Lowenthal represented LB's 2d Council district for six years before being elected to the state legislature in 1998, an area in which now-former City Hall officials invited increased density to replace single family housing...which produced what neighborhoods activists called "crackerbox" apartments.
While vowing not to repeat the consequences of crackerbox development, LB City Hall has approved significant new housing in the "West Gateway" project (west of downtown) and ELB's "Douglas Park." Plans have also been floated by some developers for huge high rises...a collective impact setting the stage to balloon LB's population even further.
In a recent Mayoral debates, candidates have indicated that the taxpayer cost of one police officer (fully equipped) is currently estimated at roughly $100,000-$150,000 a year. Based on those figures, a LB population increase of 50,000 people (already expected over roughly 4-5 years) would require 100 police officer just to maintain (not increase) a level of two officers per thousand population citywide...at a taxpayer cost of (roughly) $10-$15 million per year.
Recent Council actions approving increased density have again drawn the attention of LB neighborhood activists. Los Cerritos area realtor Mike Kowal has on multiple occasions come to the Council podium to question further density in LB...at last official estimate already approaching a population of 500,000.
The "League of CA Cities" (which represents the interests of City Halls and to which LB taxpayers pay dues, plus convention and travel expenses for Councilmembers and staff) says Lowenthal's legislation "is an outgrowth of discussions on housing solutions conducted over a year and a half by the League's Housing/General Plan Task Force. The bill would create a voluntary pilot project with local-state partnership to provide high density housing through the creation of 100 housing/infill infrastructure investment districts statewide."
The bill's "findings and declarations" recite "that local governments face significant fiscal impediments to financing the development and upgrading of essential infrastructure, including streets, parking facilities, water and sewer systems, and parks, to serve new high-density housing. It is the intent of the Legislature in enacting this act to support and contribute to the financing of this infrastructure and to accomplish all of the following:
(a) Encourage the location of high-density housing so as to use available land more efficiently by complementing and enhancing regional transportation, air quality, and other regional investments, priorities, and strategies.
(b) Establish a voluntary pilot project to determine whether
providing resources to local governments for infrastructure and
services needed for the concentrated development of high-density
housing will lead to a higher level of housing constructed in
locations that match regionally determined growth principles.
(c) Recognize and protect the principle of local control of local
land use authority of individual cities and counties, while providing
additional resources to jurisdictions that are willing to approve
the development of high-density housing in locations where a more
intensified level of development will yield broader regional
benefits.
(d) Include reasonable accountability measures that will inform
the state of the progress of the pilot project, including how and
where the new financing mechanism adopted by this act is used.
To implement what it calls a "pilot project," the bill creates a new regional [So. Cal. Ass'n of Gov'ts] and county-city level mechanism:
Each council of governments shall develop criteria for the establishment and location of housing and infill infrastructure
financing districts within its region. Criteria may be developed, or
based upon, a collaborative regional growth vision, blueprint, or
other similar regional planning effort that identifies areas and
locations where additional job growth, high-density housing, or other
development is preferred to be concentrated to complement and
enhance regional transportation, air quality, and other regional
priorities and strategies, including, but not limited to, reducing
vehicle miles traveled and improving the regional jobs-housing
balance.
...Each council of governments shall present its proposed
criteria to the California Infrastructure and Economic Development
Bank and consider the comments of the bank before adopting the final
regional criteria...
...[A] city or a county may apply to its council of governments, or the California Infrastructure
and Economic Development Bank in those areas without a council of
governments, to establish a housing and infill infrastructure
financing district within its jurisdictional boundaries or sphere of
influence.
...The application shall demonstrate how the location of the
district conforms to the regional criteria established by the council
of governments
A League release says in part, "The projects must be consistent with regional planning objectives and allow construction of more than 500 units of housing with average net density of 25-40 units per acre, with 15 percent of the housing affordable to low and moderate income families." It quotes San Diego Councilmember and League Second Vice President Jim Madaffer (who served as chairman of the Housing/General Plan Task Force) as saying, "We see this measure as a positive approach to encourage cities to build the kinds of infill projects so many of our cities need. It's worlds away from the 'hammer and stick' approach that we so often see from the State Capitol."
The supportive League of CA Cities release continues:
"Whenever cities consider building new housing, they face the challenge of identifying funding to pay for increased services and infrastructure needs," Madaffer explained. "New residents mean that you need more parks, more schools, more streets and more cops and firefighters.
"This bill creates financing districts for cities that want to build housing and apply for the voluntary program, and uses tax-increment financing to help pay for these expenses. Locals contribute, as does the state, by authorizing tax-increment financing for these purposes.
"It's a chance to build partnerships at all levels of government, to achieve our shared goal of more affordable housing and greater density.
"With the Legislature's failure to pass an infrastructure bond package, the SB 1754 approach becomes even more important for cities," Madaffer added. "Cities can't afford to wait several years to address our local infrastructure needs. We need solutions now."
There are early signs that the positive, collaborative approach taken in SB 1754 is likely to win broad-ranged support. The League urges cities to review the measure and submit letters of support to the Senate Local Government Committee prior to their April 5 hearing.
LBReport.com posts the text of SB 1754 as currently pending (March 23) below [caveat: always check for subsequent amendments on www.leginfo.ca.gov].
A webpage, recently added to LB City Hall's website by LB city management, now enables residents to their city's position on specific bills [comment: Kudos! A very healthy step in the right direction.] The page indicates the City of LB currently has a "watch" position on the bill.
BILL NUMBER: SB 1754 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Lowenthal
FEBRUARY 24, 2006
An act to add and repeal Division 3 (commencing with Section
64100) of Title 6.7 of the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 1754, as introduced, Lowenthal Housing and infill
infrastructure financing districts.
The Community Services District Law identifies the procedures for
district formation and specifies the services that a district may
provide. Among those services are the acquisition, construction,
improvement, maintenance, and operation of recreation facilities,
including parks and open space; and community facilities, including
libraries, and child care facilities; supplying water for any
beneficial use, the collection, treatment or disposal of sewage,
waste water, recycled water, storm water, and solid waste; and the
acquisition, construction, improvement, and maintenance of streets,
roads, rights-of-way, bridges, culverts, drains, curbs, gutters,
sidewalks, and any incidental works.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act establishes the California Infrastructure and Economic
Development Bank within state government and authorizes the bank to
perform various activities in providing or arranging for the
financing of specified economic development projects, including the
issuance of specified types of bonds. Existing law requires the bank
to establish criteria, priorities, and guidelines for the selection
of projects to receive assistance from the bank.
The Community Redevelopment Law authorizes redevelopment agencies
to pay the principal of, and interest on, indebtedness incurred to
finance or refinance redevelopment, from a portion of property tax
revenues diverted from other taxing agencies. The portion of taxes
diverted is the amount attributable to increases in assessed
valuation of property in the redevelopment project area subsequent to
establishment thereof. This method of financing is commonly known as
"tax increment" financing and is specifically authorized by Section
16 of Article XVI of the California Constitution.
Existing law requires a redevelopment agency to use at least 20%
of its tax increment revenues to increase, improve, and preserve low-
and moderate-income housing available at affordable cost to persons
and families of low or moderate income and lower, very low, and
extremely low income households unless the agency makes certain
findings. Under existing law, there are programs that provide
assistance for, among other things, multifamily housing, emergency
housing, farmworker housing, and homeownership for low- and very low
income households, and that provide downpayment assistance for
first-time homebuyers.
This bill would establish a pilot project allowing for the
formation, under criteria developed by councils of governments, of
housing and infill infrastructure financing districts. A city or
county would be eligible to apply to its council of governments or
the California Infrastructure and Economic Development Bank in order
to establish a district. By requiring the councils of governments to
develop criteria and before other duties with respect to the
selection and establishment of districts, the bill would impose a
state-mandated local program.
The bill would authorize a district to finance the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of real or other tangible property, for various
purposes, including interchanges, ramps and bridges, arterial
streets, parking facilities, transit facilities, sewage treatment and
water reclamation plants and interceptor pipes, facilities for the
collection and treatment of water for urban uses, child care
facilities, libraries, parks, recreational facilities, open space,
facilities for the transfer and disposal of solid waste, including
transfer stations and vehicles, and housing. A district would be
authorized to issue bonds and to engage in a type of tax increment
financing for these purposes.
The pilot project would end on January 1, 2028, but the district
would receive tax increment revenues for a period of 20 years from
the date the district was established, plus an additional 10 years
solely for the repayment of debt incurred before January 1, 2028.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that local
governments face significant fiscal impediments to financing the
development and upgrading of essential infrastructure, including
streets, parking facilities, water and sewer systems, and parks, to
serve new high-density housing. It is the intent of the Legislature
in enacting this act to support and contribute to the financing of
this infrastructure and to accomplish all of the following:
(a) Encourage the location of high-density housing so as to use
available land more efficiently by complementing and enhancing
regional transportation, air quality, and other regional investments,
priorities, and strategies.
(b) Establish a voluntary pilot project to determine whether
providing resources to local governments for infrastructure and
services needed for the concentrated development of high-density
housing will lead to a higher level of housing constructed in
locations that match regionally determined growth principles.
(c) Recognize and protect the principle of local control of local
land use authority of individual cities and counties, while providing
additional resources to jurisdictions that are willing to approve
the development of high-density housing in locations where a more
intensified level of development will yield broader regional
benefits.
(d) Include reasonable accountability measures that will inform
the state of the progress of the pilot project, including how and
where the new financing mechanism adopted by this act is used.
SEC. 2. Division 3 (commencing with Section 64100) is added to
Title 6.7 of the Government Code, to read:
DIVISION 3. Housing and Infill Infrastructure Financing Act of
2006
CHAPTER 1. GENERAL PROVISIONS
64100. (a) There is hereby established a pilot project allowing
for no more than 100 independent special districts, to be known as
housing and infrastructure financing districts, throughout the state
for the purpose of constructing housing and the infrastructure
necessary to serve that housing.
(b) It is the priority of the state in this pilot project to
promote high-density housing development close to jobs and transit
and reduce vehicle miles traveled by promoting pedestrian-oriented
connections between residential and commercial components of the
district.
64101. For purposes of this division, "housing and infill
infrastructure financing district" means a legally constituted
independent governmental entity established pursuant to this division
for the sole purpose of financing housing and the infrastructure
necessary to serve that housing.
64102. This division shall become inoperative on January 1, 2028.
However, a housing and infill infrastructure financing district
shall receive (a) an allocation of funds pursuant to Section 64135
for a period of 20 years after the date upon which the district was
established, plus an additional period of 10 years solely for the
repayment of debt incurred before January 1, 2028; and (b) any city
or county shall continue to receive the allocation of funds
calculated in accordance with subdivision (c) of Section 64135.
CHAPTER 2. IDENTIFICATION AND ESTABLISHMENT OF HOUSING AND
INFILL INFRASTRUCTURE DISTRICTS
64110. (a) Each council of governments shall develop criteria for
the establishment and location of housing and infill infrastructure
financing districts within its region. Criteria may be developed, or
based upon, a collaborative regional growth vision, blueprint, or
other similar regional planning effort that identifies areas and
locations where additional job growth, high-density housing, or other
development is preferred to be concentrated to complement and
enhance regional transportation, air quality, and other regional
priorities and strategies, including, but not limited to, reducing
vehicle miles traveled and improving the regional jobs-housing
balance.
(b) Each council of governments shall present its proposed
criteria to the California Infrastructure and Economic Development
Bank and consider the comments of the bank before adopting the final
regional criteria.
(c) Each council of governments shall develop a process that
includes the development of draft criteria and the opportunity for
individual local governments and the public to provide input before
the draft criteria become final.
64111. (a) On or before January 1, 2009, a city or a county may
apply to its council of governments, or the California Infrastructure
and Economic Development Bank in those areas without a council of
governments, to establish a housing and infill infrastructure
financing district within its jurisdictional boundaries or sphere of
influence.
(b) The application shall demonstrate how the location of the
district conforms to the regional criteria established by the council
of governments and shall include the plan described in Section
64113.
64112. (a) The council of governments shall evaluate each
application, determine whether the proposed district is consistent
with the established criteria, and rank those applications that
conform to the criteria. Draft rankings shall be presented at one or
more public hearings and shall be modified as appropriate following
the receipt of public input. On or before July 1, 2009, after the
conclusion of the period of public input and modification, the
council of governments shall publish its proposed rankings. An
applicant city or county may appeal the proposed rankings to the
governing body of the council of governments if a ranking fails to
comply with the selection criteria developed by the region. On or
before September 1, 2009, after consideration of information
presented during the appeals process, the council of governments
shall adopt its final rankings and submit its recommendation to the
California Infrastructure and Economic Development Bank of the
location of housing and infill infrastructure financing districts
within its region.
(b) On or before December 31, 2009, the California Infrastructure
and Economic Development Bank, after consideration of the ratings and
rankings received by each council of governments, shall publish the
locations of the housing and infill infrastructure financing
districts. It is the intent of the Legislature that the California
Infrastructure and Economic Development Bank defer to the
recommendations and priorities of the councils of government unless
it finds, based upon substantial evidence, that a recommended project
is inconsistent with the priorities described in subdivisions (a),
(b), and (c) of Section 65041.1. The California Infrastructure and
Economic Development Bank may choose to reorder the rankings
submitted by the council of governments after conferring and
consulting with the council of governments or with the affected
cities and counties in those areas without a council of governments.
64113. (a) A housing and infill infrastructure financing district
shall not exceed 100 acres in size nor be located within the
boundaries of a redevelopment project area established pursuant to
the Community Redevelopment Law.
(b) In establishing districts, a priority shall be given to
districts that achieve or exceed residential densities of at least 40
units per acre averaged across the district, but a district shall
not be approved with densities less than 25 units per acre.
Commercial, retail, office space, and other uses compatible with
residential development may be included within a district but shall
not exceed 30 percent of the total land area of a district.
(c) A district shall include a minimum of 500 residential units.
64114. (a) Solely in response to an application received pursuant
to Section 64111, each of the councils of governments may establish
and determine the location of housing and infill infrastructure
financing districts within its region as follows:
(1) The Southern California Association of Governments may
establish 25 housing and infill infrastructure financing districts.
(2) The Association of Bay Area Governments may establish 20
housing and infill infrastructure financing districts.
(3) The San Diego Association of Governments and Sacramento Area
Council of Governments may each establish 15 housing and infill
infrastructure financing districts.
(b) Solely in response to an application received pursuant to
Section 64111, the California Infrastructure and Economic Development
Bank shall select the location and establish 25 housing and infill
infrastructure financing districts.
(c) The governing body of a council of governments shall institute
proceedings for the establishment of a district selected pursuant to
an application submitted pursuant to Section 64111 by the adoption
of a resolution of intention to establish the proposed district and
shall do all of the following:
(1) State that a housing and infill infrastructure financing
district is proposed to be established under the terms of this
division and describe the boundaries of the proposed district.
(2) Describe the housing and state the type of public facilities
proposed to be financed by the district in accordance with the
Infrastructure Financing Plan adopted pursuant to Section 64111. The
district may only finance public facilities authorized by Section
64131 and only in accordance with the infrastructure financing plan
adopted pursuant to Section 64131.
(3) State that incremental property tax revenue from the city or
county within which the district is located and the school entity
within which the district is located may be used to finance these
public facilities.
(4) Fix a time and place for a public hearing on the proposal.
(d) The governing body shall mail a copy of the resolution of
intention to each owner of land within the district, the city or
county within which the district is located, and the school entity
within which the district is located.
64115. The legislative body of a housing and infill
infrastructure financing district shall be comprised of two members
of the governing body of the council of governments; one member
appointed by the State Infrastructure Bank; one member with
professional training and experience in housing economics appointed
by the governing body of the council of governments; and one member
with professional training and experience in government finance
appointed by the governing body of the council of governments.
CHAPTER 3. INFRASTRUCTURE FINANCING PLAN
64120. (a) Before submitting an application pursuant to Section
64111, a city or county shall adopt a housing and infill
infrastructure financing plan.
(b) The plan shall include text and a diagram or diagrams that
specify all of the following in detail:
(1) The distribution, location, and extent of residential uses,
and commercial or mixed uses if any, within the district.
(2) The proposed densities of residential development in the
district in terms of units per acre.
(3) The proposed distribution, location, and extent and intensity
of major components of public and private transportation, sewage,
water, drainage, solid waste disposal, energy, parks, and other
essential facilities proposed to be located within the district
covered by the plan and needed to support the housing described in
paragraph (1). At least 70 percent of the funds used to construct or
reconstruct infrastructure pursuant to the plan shall support the
residential development within the district.
(4) A program of implementation measures, including regulations,
programs, public works projects, residential development projects,
and financing measures necessary to carry out paragraphs (1) and (2).
(5) A program to ensure that 15 percent of the housing developed
within the district is affordable for low- and moderate-income
families with not less than 5 percent affordable to very low income,
5 percent affordable to low-income, and 5 percent affordable to
moderate-income families.
(6) A program of services and mitigation measures required by the
residential, commercial, or mixed uses included within the district.
These services and mitigation measures may also benefit existing
residents and areas of the community affected by the development and
may include improvements and services for streets, parks, libraries,
environmental mitigation, improvements to local schools, and other
measures.
64121. The plan shall provide that residential development within
the district that conforms to the general plan land use policies,
zoning ordinance, housing and infrastructure plan, and other rules
and regulations that apply to residential development within the
jurisdiction, on the date that an application for residential
development is deemed "complete" within the meaning of Section 65944,
shall be a "use by right" as that phrase is defined in Section
65584.3.
64122. The city or county shall rezone or take any other action
as might be necessary, including, but not limited to, amendments to
its general plan and zoning ordinance, to implement the plan and
allow development of residential uses within the district within 90
days of the establishment of a housing and infill infrastructure
district within the city or county pursuant to Section 64113.
64123. (a) A housing and infill infrastructure district plan
shall be prepared, adopted, and amended in the same manner as a
general plan, except that a housing and infill infrastructure
district plan may be adopted by resolution or ordinance and may be
amended as often as deemed necessary by the legislative body, to meet
the objectives of the plan.
(b) A housing and infill infrastructure district plan may be
repealed in the same manner as it is required to be amended.
64124. Within 30 days of the establishment of a housing and
infill infrastructure district, the city or county shall prepare any
report required by the California Environmental Quality Act (Division
13 (commencing with Section 21000) of the Public Resources Code)
that pertains to the plan adopted pursuant to subdivision (a) of
Section 64120. After compliance with that act, the city or county
shall send a copy of the report and the plan, as it may have been
modified as a result of environmental review to the housing and
infill infrastructure financing district.
64125. (a) The district shall provide 14 days notice by
publication twice in a newspaper of general circulation of the time
and place for the public hearing to consider the adoption of housing
and infill infrastructure financing plan submitted pursuant to
Section 64120. The plan shall be sent to each owner of land within
the district together with any report required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) that pertains to the proposed
public facilities or the proposed housing for which the public
facilities are needed prepared pursuant to Section 64124 and shall be
made available for public inspection.
(b) The governing body of the district shall add an economic
analysis of the area included within the district that demonstrates
the annual difference between revenues generated from development
within the district and the amount of revenue necessary service debt
for capital costs or otherwise provide facilities and services,
including the affordable housing required pursuant to paragraph (5)
of subdivision (b) of Section 64120.
(c) The governing body of the district may modify the plan by
reducing the cost of proposed housing or public facilities, by
reducing the amount of proposed debt, or by reducing the portion,
amount, or duration of incremental tax revenues to be committed to
the district. The governing body of the district may not modify the
plan by changing the housing or public facilities that will be
financed pursuant to the plan.
CHAPTER 4. FINANCING OF HOUSING AND FACILITIES
64130. (a) The revenues available pursuant to Section 64135 may
be used directly for work allowed pursuant to Section 64131, may be
accumulated for a period not to exceed five years to provide a fund
for that work, may be pledged to pay the principal of, and interest
on, bonds issued pursuant to Section 64140 or Article 4 (commencing
with Section 53397.1) of Chapter 2.8 of Part 1 of Division 2 of Title
5, or may be pledged to pay the principal of, and interest on, bonds
issued pursuant to the Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways Code) or
the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5),
the proceeds of which have been or will be used entirely for
allowable purposes of the district. The revenue of the district may
also be advanced for allowable purposes of the district to an
Integrated Financing District established pursuant to Chapter 1.5
(commencing with Section 53175) of Part 1 of Division 2 of Title 5,
in which case the district may be party to a reimbursement agreement
established pursuant to that chapter.
(b) The legislative body of the district may enter into an
agreement with any affected taxing entity providing for the
construction of, or assistance in, financing public facilities.
64131. (a) A district may finance the purchase, construction,
expansion, improvement, seismic retrofit, or rehabilitation of any
real or other tangible property with an estimated useful life of 15
years or longer that satisfies the requirements of subdivision (b),
and may finance planning and design work that is directly related to
the purchase, construction, expansion, or rehabilitation of that
property. A district may only finance the purchase of facilities for
which construction is completed, as determined by the legislative
body.
(b) A district may finance housing and public facilities,
including, but not limited to, all of the following:
(1) Interchanges, ramps and bridges, arterial streets, parking
facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
pipes.
(3) Facilities for the collection and treatment of water for urban
uses.
(4) Child care facilities.
(5) Libraries.
(6) Parks, recreational facilities, and open space.
(7) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(8) Housing.
(c) A district that finances dwelling units shall ensure that 15
percent of the housing developed within the district is affordable
for low- and moderate-income families as defined in Section 50093 of
the Health and Safety Code, with not less than 5 percent affordable
to very low income, 5 percent affordable to low-income, and 5 percent
affordable to moderate-income families.
64135. (a) A housing and infill infrastructure district plan
adopted pursuant to Section 64130 may contain a provision that taxes,
if any, levied upon taxable property in the area included within the
plan each year by or for the benefit of school entities or the city
or county in which the district is located after the effective date
of the resolution or ordinance approving the plan, shall be divided
as follows:
(1) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the school
entities and the local government upon the total sum of the assessed
value of the taxable property in the district as shown upon the
assessment roll used in connection with the taxation of that property
by the school entities and the local government, last equalized
before the effective date of the ordinance or resolution, shall be
allocated to and when collected shall be paid to the respective
school entities and the local government as taxes by or for the
school entities and the local government on all other property are
paid. (For the purpose of allocating taxes levied by or for any
school entity that did not include the territory in a district on the
effective date of the ordinance or resolution, but to which that
territory has been annexed or otherwise included after that effective
date, the assessment roll of the county last equalized on the
effective date of the ordinance or resolution shall be used in
determining the assessed valuation of the taxable property in the
project on the effective date.)
(2) That portion of the levied taxes each year in excess of the
amount identified in paragraph (1), shall be allocated to and when
collected shall be paid into a special fund of the district to pay
the principal of, and interest on, loans, moneys advanced to, or
indebtedness (whether funded, refunded, assumed, or otherwise)
incurred by the district to finance or refinance, in whole or in
part, the plan adopted pursuant to Section 64130. Unless and until
the total assessed valuation of the taxable property in a housing and
infill infrastructure financing district exceeds the total assessed
value of the taxable property in that project as shown by the last
equalized assessment roll referred to in subdivision (a), all of the
taxes levied and collected upon the taxable property in the district
shall be paid to the respective school entities. When the loans,
advances, and indebtedness, if any, and interest thereon, have been
paid, all moneys thereafter received from taxes upon the taxable
property in the district shall be paid to the respective school
entities as taxes on all other property are paid.
(3) That portion of the taxes in excess of the amount identified
in subdivision (a) that is attributable to a tax rate levied by a
school entity for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that school entity.
(b) For purposes of this section, the phrase "school entities"
shall be defined as in paragraph (f) of Section 95 of the Revenue and
Taxation Code.
(c) A city or county that establishes a housing and infill
infrastructure financing district shall receive five hundred dollars
($500) per year per residential unit constructed within the district
to offset the cost of providing services which are of benefit to that
unit. This amount shall increase annually by the increase in the
assessed valuation.
CHAPTER 5. BONDS
64140. The governing body of the district may, by majority vote,
initiate proceedings to issue bonds pursuant to this chapter by
adopting a resolution stating its intent to issue the bonds and
providing the following:
(a) The issuance of bonds in one or more series.
(b) The principal amount of the bonds.
(c) The date the bonds will bear.
(d) The date of maturity of the bonds.
(e) The denomination of the bonds.
(f) The form of the bonds.
(g) The manner of execution of the bonds.
(h) The medium of payment in which the bonds are payable.
(i) The place or manner of payment and any requirements for
registration of the bonds.
(j) The terms of call or redemption, with or without premium.
64141. The resolution adopted pursuant to Section 64140 shall
contain all of the following information:
(a) A description of the housing and infill infrastructure
facilities to be financed with the proceeds of the proposed bond
issue.
(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
proposed bond issuance.
(c) The maximum interest rate and discount on the proposed bond
issuance.
(d) A determination of the amount of tax revenue available, or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
(f) A finding that the amount necessary to pay the principal of,
and interest on, the proposed bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision (e).
64142. The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 64140 once a day for at least
seven successive days in a newspaper published in the city or county
at least six days a week, or at least once a week for two successive
weeks in a newspaper published in the city or county less than six
days a week.
64143. The legislative body may proceed with the issuance of the
bonds in accordance with the resolution adopted pursuant to Section
64140 after the close of the publication period set forth in Section
64142.
CHAPTER 6. REPORTING
64145. (a) On or before July 1 of each fiscal year in which a
housing and infill infrastructure planning district is in effect, the
district shall submit a report to the California Infrastructure and
Economic Development Bank that includes the following information:
(1) Amount of money allocated to the district by the county
auditor pursuant to subdivision (b) of Section 64135.
(2) The number of building permits issued for units approved under
this program.
(3) The purposes for which the money allocated to the local
government by the county auditor was used, including any deposits
into an account for use within five years' time.
(b) On or before July 1 of the fifth fiscal year after the
district is established and every five years thereafter, the district
shall submit a report to the California Infrastructure and Economic
Development Bank updating the fiscal analysis developed pursuant to
Section 64130.
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
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