HomeMy WebLinkAbout2021-07-13 - AGENDA REPORTS - SB 679 (2)Agenda Item: 7
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CITY OF SANTA CLARITA
AGENDA REPORT
CITY MANAGER APPROVAL:
DATE: July 13, 2021
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SUBJECT: STATE LEGISLATION: SENATE BILL 679
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee recommendation to oppose Senate
Bill 679 (Kamlager) and transmit position statements to Senator Kamlager, Santa Clarita's state
legislative delegation, appropriate legislative committees, Governor Newsom, League of
California Cities, and other stakeholder organizations.
BACKGROUND
Authored by Senator Sydney Kamlager (D-30-Los Angeles), Senate Bill 679 establishes a 19-
member governing board and authorizes the governing board to, among other things, raise and
allocate new revenue through a special tax, subject to voter approval, including a parcel tax,
business license tax, or documentary transfer tax to fund affordable housing projects and
initiatives.
Senate Bill 679 establishes the Los Angeles County Affordable Housing Solutions Agency
(LACAHSA), forms the LACAHSA Governing Board, and authorizes the LACAHSA Board to,
among other things, raise and allocate new revenue through a special tax, subject to voter
approval, including a parcel tax, business license tax, or documentary transfer tax to fund
affordable housing projects and initiatives.
Additionally, this legislation authorizes the LACAHSA Board to issue bonds, including but not
limited to, general obligation bonds, revenue bonds, and private activity bonds.
Senate Bill 679 prescribes that the LACAHSA Board be made up of 18-voting members and one
non -voting member, including the following:
• All five members of the Los Angeles County Board of Supervisors;
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• The Mayor of the City of Los Angeles;
• The Mayor of the City of Long Beach or the Vice Mayor of the City of Long Beach;
• One public member appointed by the Chair of the Los Angeles County Board of
Supervisors;
• Four members appointed by the Mayor of the City of Los Angeles, two of whom must be
non -elected officials, as specified;
• Five members, each of whom must be a Mayor or City Council Member, appointed by
Los Angeles County City Selection Committee from four specified regions (North
County/San Fernando Valley, Southwest Corridor, San Gabriel Valley, and Southeast
sector) and one at -large member representing cities under 50,000 residents;
• One member appointed by the San Gabriel Valley Council of Governments; and
• The Executive Director of the Southern California Association of Regional Governments,
who is a nonvoting member.
As stipulated in Senate Bill 679, revenue generated by LACAHSA is required to be used for the
construction of new affordable housing, affordable housing preservation, tenant protection
programs, planning and technical assistance, and other purposes, as specified. Allocations must
be approved by the LACAHSA Board.
Additionally, this legislation provides that, of the funding generated for renter protections or
affordable housing for low-income and very low-income regional housing needs assessment
goals, 70 percent must be allocated to the councils of governments in Los Angeles County,
unincorporated areas of Los Angeles County, and the four largest cities in Los Angeles County
(Los Angeles, Long Beach, Santa Clarita, and Glendale). The remaining 30 percent of funds for
the purpose of renter protections and support will be allocated under the discretion of the
LACAHSA Board. The remaining 30 percent of funds for the purpose of affordable housing will
be allocated on an at -large basis by the Citizens' Oversight Committee and LACAHSA Board.
Senate Bill 679 passed the Senate (29-7-4) on June 1, 2021. Senator Scott Wilk (R-21-Santa
Clarita) voted against the bill and Senator Henry Stem (D-27-Calabasas) voted in support of the
bill. Senate Bill 679 is pending assignment to a policy committee in the Assembly, as of the
writing of this report.
Notable supporters include the United Way of Greater Los Angeles (source), City of Beverly
Hills, Alliance of Californians for Community Empowerment Action Ascencia, Inner City Law
Center, Los Angeles Community Action Network, and SEIU California.
The only opposition filed is the San Gabriel Valley Regional Housing Trust.
The City Council Legislative Committee met on June 22, 2021, and recommends that the City
Council adopt an "oppose" position on Senate Bill 679.
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ALTERNATIVE ACTION
1. Adopt a "support" position on Senate Bill 679.
2. Adopt a "neutral" position on Senate Bill 679.
3. Take no action on Senate Bill 679.
4. Refer Senate Bill 679 back to the Legislative Committee.
5. Other direction, as provided by the City Council.
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted FY 2021-22 budget.
ATTACHMENTS
Senate Bill 679 - Bill Text
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AMENDED 1N SENATE MAY 20, 2021
AMENDED 1N SENATE APRIL 19, 2021
AMENDED IN SENATE APRIL 5, 2021
AMENDED IN SENATE MARCH 22, 2021
AMENDED IN SENATE MARCH 9, 2021
SENATE BILL
No. 679
Introduced by Senator Kamlager
(Coauthors: Senators Allen, Bradford, Durazo, Gonzalez, Leyva, and
Stern)
(Coauthors: Assembly Members Carrillo, Gipson, Holden, and
Nazarian)
February 19, 2021
An act to add Title 6.9 (commencing with Section 64700) to the
Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 679, as amended, Kamlager. Los Angeles County: affordable
housing.
Existing law provides for the establishment of various special districts
that may support and finance housing development, including affordable
housing special beneficiary districts that are authorized to promote
affordable housing development with certain property tax revenues that
a city or county would otherwise be entitled to receive.
Existing law, the San Francisco Bay Area Regional Housing Finance
Act, establishes the Bay Area Housing Finance Authority to raise,
administer, and allocate funding for affordable housing in the San
Francisco Bay area, as defined, and provide technical assistance at a
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regional level for tenant protection, affordable housing preservation,
and new affordable housing production.
This bill, the Los Angeles County Regional Housing Finance Act,
would establish the Los Angeles County Affordable Housing Solutions
Agency and would state that the agency's purpose is to increase
affordable housing in Los Angeles County by providing for significantly
enhanced funding and technical assistance at a regional level for renter
protections, affordable housing preservation, and new affordable housing
production, as specified. The bill would require a board composed of
44 19 voting members and one nonvoting member from Los Angeles
County, as specified, to govern the agency.4he
This bill would permit the board to determine its organizational
structure and to delegate specked powers. The bill would require the
board to form an oversight committee composed of 9 members to assist
in the development of funding guidelines, implementation of agency
programs, and approval of an expenditure plan, as specified The bill
would exempt the agency from the requirements of the Surplus Land
Act. The bill would require the board to provide for regular audits of
the agency's accounts and records, including an independentfinancial
and performance audit for bonds secured by ad valorem property taxes,
and provide for financial reports. The bill would include findings that
the provisions proposed by this bill address a matter of statewide concern
rather than a municipal affair and, therefore, apply to all cities within
Los Angeles County, including charter cities.
This bill would authorize the agency to, among other things, raise
and allocate new revenue, incur and issue bonds and other indebtedness,
and place on the ballot in Los Angeles County and its incorporated
cities funding measures, in accordance with applicable constitutional
requirements, to raise and allocate funds to the county, the cities in the
county, and other public agencies and affordable housing projects
within its jurisdiction forpurposes ofpreserving and enhancing existing
housing, funding renter protection programs, and financing new
construction of housing developments, as specified
In this regard, the bill would authorize the entity, among other things,
to impose various special taxes, including a parcel tax and a
documentary transfer tax, within its jurisdiction, and to issue general
obligation bonds secured by the levy of ad valorem property taxes, in
accordance with applicable constitutional requirements, and revenue
bonds payable from the revenues of the agency, other than revenues
generated from ad valorem property taxes. The bill would require that
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revenue generated by the agency pursuant to these provisions be used
for specified housing purposes and would require the agency to
distribute those funds in accordance with specified requirements,
including the adoption of a regional expenditure plan by the board.
This bill would require that revenue be allocated according to a
geographic distribution schedule, as specified.
Existing law defines `public works," for the purposes of regulating
public works contracts, as, among other things, construction, alteration,
demolition, installation, or repair work done under contract and paid
for, in whole or in part, out of public funds. Existing law further requires
that, except as specified, not less than the general prevailing rate of
per diem wages be paid to workers employed on public works and
imposes misdemeanor penalties for a willful violation of this
requirement.
This bill would require that any construction project receivingfunding
under these provisions constitute a public work for which prevailing
wages are required to be paid. Because the willful violation ofprevailing
wage requirements when engaged in these public works projects would
result in the imposition of misdemeanorpenalties, this bill would impose
a state -mandated local program.
This bill would make legislative findings and declarations as to the
necessity of a special statute for Los Angeles County.
By adding to the duties of local officials with respect to elections
procedures for revenue measures on behalf of the agency, this bill would
impose a state -mandated local program.
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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if
the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall be
made pursuant to the statutory provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: eyes.
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The people of the State of California do enact as follows:
SECTION 1. Title 6.9 (commencing with Section 64700) is
added to the Government Code, to read:
TITLE 6.9. LOS ANGELES COUNTY AFFORDABLE
HOUSING SOLUTIONS AGENCY
PART 1. GDIE. k �'TrTn"Tc FORMATION OF THE LOS
ANGELES CO UNTYAFFORDABLE HOUSING SOLUTIONS
AGENCYAND GENERAL POWERS
CHAPTER 1. GENERAL PROVISIONS
64700. This title shall be known, and may be cited, as the Los
Angeles County Regional Housing Finance Act.
64701. The Legislature finds and declares the following:
(a) Los Angeles County is facing the most significant housing
crisis in the region's history, as tens of thousands of residents are
living in overcrowded housing, being pushed out of their homes,
spending hours driving every day to and from work, one paycheck
away from an eviction, or experiencing homelessness.
(b) The impacts of Los Angeles County's affordable housing
crisis are disproportionately being borne by people of color,
including Black, Latino, Asian and Pacific Islander Americans,
and low-income residents.
(c) Women of color face an even greater burden due to systemic
barriers, including wage discrimination, unsafe transit options, and
lack of access to affordable childcare.
(d) Los Angeles County faces this crisis because, as a region,
it has failed to produce enough housing at all income levels,
particularly at the lowest levels of affordability, preserve affordable
housing, protect existing residents from displacement, and address
the housing issue throughout the county in a comprehensive
fashion.
(e) Housing costs have dramatically outpaced wage growth. An
average two -bedroom apartment in Los Angeles County requires
a household income of forty-one dollars and ninety-six cents
($41.96) per hour.
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1 (f) The housing crisis in Los Angeles County is regional in
2 nature and too great to be addressed individually by the county's
3 88 incorporated cities on their own, especially in the context of
4 ambitious Regional Housing Needs Assessments gcali 311,9W
5 goals — 341,000 affordable units in the sixth cycle, which the
6 county as a whole is on track to produce 25,000.
7 (g) Seventy-nine percent of extremely low income households
8 in Los Angeles County are paying more than half of their income
9 on housing costs compared to just 3 percent of niAc'.-utc in✓ nic
10 moderate -income households.
11 (h) However, the current process is anything but regional;
12 instead each city and the county is each responsible for their own
13 decisions around housing financing and renter protection programs.
14 (i) Based on the most recent regional housing needs assessment
15 cycle, Los Angeles County faces an annual gap of 39,375 units
16 between what is being created and what is needed to achieve the
17 sixth cycle affordable housing countywide goals.
18 0) A multistakeholder countywide agency is necessary to help
19 address the affordable housing crisis in Los Angeles County by
20 delivering resources and technical assistance at a regional scale,
21 including:
22 (1) Generating new dedicated regional funding for critical capital
23 and other supports for affordable housing developments across
24 Los Angeles County.
25 (2) Providing staff support to local jurisdictions that require
26 capacity or technical assistance to expedite the preservation and
27 production of housing.
28 (3) Funding renter programs and services, such as emergency
29 rental assistance and access to counsel, thereby relieving local
30 jurisdictions of this cost and responsibility and supporting a unified
31 countywide approach.
32 (4) Assembling parcels, acquiring land, and supporting
33 community land trusts for the purpose of building affordable
34 housing.
35 (5) Monitoring and reporting on progress at a regional scale.
36 64702. For purposes of this title:
37 (a) "Agency" means the Los Angeles County Affordable
38 Housing Solutions Agency established pursuant to Section 64710.
39 (b) "Board" means the governing board of the Los Angeles
40 County Affordable Housing Solutions Agency.
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(c) "Los Angeles County" means the entire area within the
territorial boundary of the County of Los Angeles.
64703. The Legislature finds and declares that providing a
regional financing mechanism for affordable housing development,
preservation, and renter protections in Los Angeles County, as
described in this section and Section 64701, is a matter of statewide
concern and is not a municipal affair as that term is used in Section
5 of Article XI of the California Constitution. Therefore, this title
applies to all cities within the County Vigcl.Cn, Los Angeles
County, including charter cities.
CHAPTER 2. THELOSANGELESCOUNTYAFFORDABLEHoUSING
SOLUTIONS AGENCY AND GOVERNING BOARD
64710. (a) The Los Angeles County Affordable Housing
Solutions Agency is hereby established with jurisdiction extending
throughout Los Angeles County.
(b) The formation and jurisdictional boundaries of the agency
are not subject to the Cortese -Knox -Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5).
(c) The agency's purpose is to increase affordable housing in
Los Angeles County by providing for significantly enhanced
funding and technical assistance at a regional level for renter
protections, affordable housing preservation, and new affordable
housing production of 100 percent affordable housing for
households earning 80 percent of the appropriate area median
income or below, with financing priority on the lowest levels of
affordability.
(d) It is the intent of the Legislature that the agency complement
and supplement existing efforts by cities, counties, districts, and
other local, regional, and state entities, related to addressing the
goals described in this title.
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of the divc, is ci iaS and izninuogxwated cvinrnifttkiJJ asys3 the
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pmAidc kard, and a v-i„x; emir fiom its
rn;rmhv:�, who shall p-.vsid:, in the al3vna :6�thc Jnair.
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1 64711. (a) The agency shall be governed by a board of
2 directors composed of 19 voting members and one nonvoting
3 member, as follows:
4 (1) Five members of the Los Angeles County Board of
5 Supervisors. If the number of members of the Los Angeles County
6 Board of Supervisors is increased, the agency shall, within 60 days
7 of the increase, submit a plan to the Legislature for revising the
8 composition of the agency.
9 (2) The mayor of the City of Los Angeles.
10 (3) The mayor of the City of Long Beach or the vice mayor of
11 the City of Long Beach, as determined by the mayor of the City of
12 Long Beach.
13 (4) One member of the public appointed by the chair of the Los
14 Angeles County Board of Supervisors with demonstrated
15 experience in affordable housing or renter protection policies or
16 personal experience with housing instability, as selected from the
17 candidates list prepared by the agency chief executive officer
18 (5) Four members of the public appointed by the mayor of the
19 City of Los Angeles, at least two being nonelected officials. The
20 nonelected officials shall be selected from the candidates list
21 prepared by the agency chief executive office.
22 (6) (A) Five members, each of whom shall be a mayor or a
23 member of a city council, appointed by the Los Angeles County
24 City Selection Committee. One member shall be from any sector
25 and represent a city of less than 50,000 residents.
26 (B) Forpurposes of the selection of the remainingfour members,
27 Los Angeles County, excluding the City of Los Angeles and City
28 of Long Beach, shall be divided into the following four sectors:
29 (i) The North County and San Fernando Valley sector.
30 (ii) The Southwest Corridor sector:
31 (iii) The San Gabriel Valley sector
32 (iv) The Southeast sector
33 (C) The League of California Cities, Los Angeles Chapter and
34 the League of California Cities, County Division, shall define the
35 sectors. Every city within a sector shall be entitled to vote to select
36 a candidate from that sector for consideration for appointment by
37 the Los Angeles County City Selection Committee. A city's vote
38 shall be weighted in the same proportion that its population bears
39 to the total population of all cities within the sector
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1 (D) The members appointed pursuant to this subdivision shall
2 be appointed by the Los Angeles County City Selection Committee
3 upon an affirmative vote of its members that represent a majority
4 of the population of all cities within the county, excluding the City
5 of Los Angeles and the City of Long Beach.
6 (E) The members selected by the city selection committee shall
7 serve four-year terms with no limitation on the number of terms
8 that may be served by any individual. The city selection committee
9 may shorten the initial four-year term for one or more of the
10 members for the purpose of ensuring that the members will serve
11 staggered terms.
12 (7) The chair of the citizens' oversight committee created by
13 Section 64718.
14 (8) One member appointed by the San Gabriel Valley Council
15 of Governments.
16 (9) The Executive Director of the Southern California
17 Association of Regional Governments shall be a nonvoting member
18 (b) If the population of the City of Los Angeles, at any time,
19 becomes less than 35 percent of the combined population of all
20 cities in the county, the position of one of the two public members
21 appointed pursuant to paragraph (5) of subdivision (a), as
22 determined by the mayor of the City of Los Angeles by lot, shall
23 be vacated, and the vacant position shall be filled by appointment
24 by the city selection committee pursuant to paragraph (6) of
25 subdivision (a) from a city not represented by any other member
26 appointed pursuant to paragraph (6) of subdivision (a).
27 (c) The board members specified in paragraphs (1) to (9),
28 inclusive, ofsubdivision (a) may each appoint an alternate member
29 to the agency to represent, at a meeting of the agency, a regular
30 member it has appointed, but only if the regular member cannot
31 attend the meeting.
32 (d) For purposes of this section, an alternate member shall be:
33 (1) In the case of the member of the City Council of the City of
34 Los Angeles appointed by the mayor of the City of Los Angeles,
35 any person appointed by the mayor with the consent of the city
36 council. If the alternate member is a member of the city council,
37 then consent of that city council is not necessary.
38 (2) In the case of any public members, any persons designated
39 by the appointing member.
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1 (e) The chief executive officer shall prepare a list for any board
2 members that have the responsibility to appoint other board
3 members. The list shall include quaked individuals with
4 demonstrated experience in affordable housing or renter
5 protectionspolicies orpersonal experience with housing instability.
6 The goal is that board members have expertise in renterprotections
7 and support, affordable housing preservation, and affordable
8 housing production.
9 (f) The board shall designate a chair, vice chair, and second
10 vice chair, as well as establish guidelines for designation process
11 and the length of term.
12 (e)
13 (g) (1) A member of the board may receive a per diem for each
14 board meeting that the member attends. The board shall set the
15 amount of that per diem for a member's attendance, but that amount
16 shall not exceed one hundred dollars ($100) per meeting. A
17 member shall not receive a payment for more than two meetings
18 in a calendar month.
19 (2) A board member may waive a payment of per diem
20 authorized by this subdivision.
21 (d�-( 1) Thy bcmtxi jhall f✓rru an acfv is-o - maiuitto- „uupoo ad
22 of l rirMAMg, c and the-ftreas
23 of a FfD- daVlc homing finwicc and d-,*cAopincnt, ivnan[ pr- Y
24 and pru3urbftiivn. Thu a&visor� v`vniniA't✓-, Shall aiiist-in
25 the guidc1inci and theoverall
26 irull.;rll;rutatisrr e th; y.vi�iutu.
27 (2) Gon4stetWwrt1i the pr�oti,3iaii3 of this ehapter, the advisoty
28 ee eta shall v✓idc „unaultetio-n and rnah w.rvr�;rnd�tgerrs
29 ;✓✓ iruix Shall ru„cr✓,r��ai�e
30 €4fill thar �J.c3 and r� p., �il7artit
31 (3) Out-of-state travel and conference travel shall be
32 compensated by the board member's home city or county.
33 (h) In addition to the requirements under subdivision (i), the
34 agency shall engage in public participation processes, which shall
35 include the following:
36 (1) Outreach efforts to encourage the active participation of a
37 broad range of stakeholder groups in the planning process,
38 including, but not limited to, affordable housing and homelessness
39 advocates, nonprofit developers, neighborhood and community
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1 groups, environmental advocates, equity organizations, home
2 builder representatives, and business organizations.
3 (2) Holding at least one public meeting regarding any relevant
4 plan or proposals being considered by the agency. The agency
5 shall hold any such meeting at a time and a location convenient
6 for members of the public. The agency shall place each plan or
7 proposal under consideration on a meeting agenda of the board
8 for discussion at least 30 days before the board takes action.
9 (3) A process for enabling members of the public to provide a
10 single request to receive agency notices, information, and updates.
11 (e)
12 (i) (1) Members of the board are subject to Article 2.4
13 (commencing with Section 53234) of Chapter 2 of Part 1 of
14 Division 2 of Title 5.
15 (2) The agency shall be subject to the Ralph M. Brown Act
16 (Chapter 9 (commencing with Section 54950) of Part 1 of Division
17 2 of Title 5), the California Public Records Act (Chapter 3.5
18 (commencing with Section 6250) of Division 7 of Title 1), and the
19 Political Reform Act of 1974 (Title 9 (commencing with Section
20 81000)).
21 64711.1. Notwithstanding paragraph (5) of subdivision (a) of
22 Section 64711, if a member appointed by the mayor of the City of
23 Los Angeles is not a member of the city council of that city, the
24 person appointed may serve for 60 days without consent of the
25 city council.
26 64711.2. Every member of the board is subject to Section
27 87100.
28 64711.3. (a) Except as provided in subdivision (b), each
29 member of the board shall serve a term of four years or until a
30 successor is appointed and quaked. A member may be removed
31 at the pleasure of the appointing entities described in subdivision
32 (a) of Section 64711. A member may be reappointed for one
33 additional term.
34 (b) The membership of any member serving on the agency as a
35 result of holding another public office shall terminate when the
36 member ceases holding the other public office.
37 64711.4. (a) The board shall appoint a full-time chief
38 executive officer who shall act for the agency under its direction
39 and perform those duties delegated by the agency.
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1 (b) The chief executive officer shall be appointed to a renewable
2 term of four years and shall be removed from office only upon the
3 occurrence of one or both of the following:
4 (1) A two-thirds majority of the members of the agency votes
5 for removal.
6 (2) The chief executive officer violates a federal or state law,
7 regulation, local ordinance, or policy or practice of the agency,
8 relative to ethical practices, including, but not limited to, the
9 acceptance of gifts or contributions.
10 (c) The agency shall appoint a general counsel, inspector
11 general, and board secretary.
12 64711.5. (a) The board shall appoint an inspector general to
13 a renewable term of office of four years. The inspector general
14 shall be removed fi om office only if either or both of the following
15 occur:
16 (1) A two-thirds majority of the members of the board votes for
17 removal.
18 (2) The inspector general violates a federal or state law or
19 regulation, a local ordinance, or a policy or practice of the agency,
20 relative to ethical practices, including, but not limited to, the
21 acceptance of gifts or contributions.
22 (b) The inspector general shall, at a noticed public hearing of
23 the agency, report quarterly on the expenditures of the agency for
24 travel, meals and refreshments, private club dues, membership
25 fees and other charges, and any other expenditures specified by
26 the agency.
27 (c) Any investigatory file compiled by the inspector general is
28 an investigatory file compiled by a local law enforcement agency
29 subject to disclosure pursuant to subdivision ()9 of Section 6254.
30 64712. (a) The agency may determine its organizational
31 structure, which may include, but is not limited to, the
32 establishment ofdepartments, divisions, subsidiary units, or similar
33 entities. Any department, division, subsidiary unit, or similar entity
34 established by the agency shall be referred to in this chapter as
35 an "organizational unit."
36 (b) The board may administratively delegate to an
37 organizational unit or to its chief executive officer any powers and
38 duties it deems appropriate. Powers and duties that may be
39 delegated to an organizational unit include, but are not limited to,
40 the following:
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1 (1) Approval of contracts, except the final approval of labor
2 contracts, beyond a certain amount set by the board.
3 (2) Hearing and resolving bid protests.
4 64713. In light of the purpose of the agency, it shall be exempt
5 from Chapter 5 (commencing with Section 54220) of Part I of
6 Division 2 of Title 5.
7 64714. The members of the board shall be appointed by April
8 1, 2022. The agency shall have no powers, duties, or
9 responsibilities until April 1, 2022.
10 6^471z
11 64715. A member of the board shall exercise independent
12 judgment on behalf of the interests of the residents, the property
13 owners, and the public in furthering the intent and purposes of this
14 title.
15 64713
16 64716. (a) The board shall hold its first meeting at a time and
17 place within Los Angeles County fixed by the Los Angeles County
18 Clerk, as a ministerial duty.
19 (b) After the first meeting described in subdivision (a), the board
20 shall hold meetings at times and places determined by the board.
21 64717. (a) The board may make and enforce rules and
22 regulations necessary for governing the board, the preservation
23 of order, and the transaction of business.
24 (b) In exercising the powers and duties conferred on the agency
25 by this title, the board may act by ordinance or resolution.
26 64717.5. Five years after the voters approve an initial ballot
27 measure pursuant to Section 64721, the board shall review the
28 implementation of the measure. The review shall include the
29 following:
30 (a) An analysis of the expenditures to date.
31 (b) The number of affordable housing units produced and
32 preserved at different household income levels.
33 (c) The tenant protection services provided, and the role of the
34 agency.
35 64718. (a) The board shall form a citizens' oversight
36 committee composed of nine voting members with knowledge and
37 experience in the areas of affordable housing finance and
38 development, tenant protection, and housing preservation. The
39 citizens' oversight committee shall assist in the development of
40 funding guidelines and the overall implementation of agency
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1 programs. The committee shall have a vote to approve the annual
2 organizational expenditure plan prior to approval by the board
3 pursuant to subdivision (e) of Section 64830. The committee shall
4 report directly to the board and the public. Consistent with the
5 provisions of this chapter, the committee shall provide consultation
6 and make recommendations to the board. The committee shall
7 meet as often as is necessary to fufll its roles and responsibilities.
8 (b) Committee members shall carry out the responsibilities laid
9 out in this section and play a valuable and constructive role in the
10 ongoing improvement and enhancement of the agency. Committee
11 members will offer their unique knowledge and experience in the
12 areas of affordable housing finance and development, tenant
13 protection, and housing preservation. The committee members
14 shall meet the following requirements:
15 (1) At least two committee members shall have substantial
16 knowledge and experience in tenant protections.
17 (2) At least two committee members shall have substantial
18 knowledge and experience in housing finance, development, and
19 preservation.
20 (3) All members shall reside in Los Angeles County.
21 (4) All members shall be subject to conflict -of -interest
22 provisions. No person currently serving as an elected or appointed
23 city, county, special district, or federal public officeholder shall
24 be eligible for membership on the committee.
25 (c) The office of the inspector general shall select the members
26 of the committee by October 1, 2022. The committee shall have at
27 least one member representing each of the following professions
28 or areas of expertise, except as provided in subdivision (d):
29 (1) A professional from the field of municipal or public finance
30 or budgeting with a minimum of 10 years of relevant experience.
31 (2) A housing development professional with a minimum of 10
32 years of experience in senior -level decision making in housing
33 development, preservation, and operations.
34 (3) A housingfinance professional with a minimum of 10 years
35 of experience.
36 (4) A tenant rights professional with a minimum of 10 years of
37 experience.
38 (5) A professional with a minimum of 10 years of experience in
39 housing seniors or people with disabilities.
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1 (6) A professional with a minimum of 10 years of experience in
2 advancing fair housing rights.
3 (7) A professional with demonstrated experience of 10 years or
4 more in the management of large-scale housing construction
5 projects and labor practices.
6 (8) Two persons with lived experience of 10 years or more as
7 a low- or moderate -income tenant or 3 years or more experiencing
8 homelessness.
9 (d) If, after making a good faith effort to select individuals who
10 meet the requirements of subdivision (c), the office of the inspector
11 general is unable to identify individuals who meet the requirements
12 of subdivision (c), then no more than two members from one or
13 more of the remaining areas of expertise may be selected.
14 64718.1. (a) The citizens' oversight committee shall elect a
15 chair and vice chair at the first official meeting of the citizens'
16 oversight committee. The committee members shall be subject to
17 the agency's conflict -of -interest policies. The members shall have
18 no legal action pending against the agency and are prohibited
19 from acting in any commercial activity directly or indirectly
20 involving the agency, such as being a consultant to the agency or
21 to any party with pending legal actions against the agency during
22 their committee tenure. Committee members shall not have direct
23 commercial interest or employment with any public or private
24 entity that receives funds authorized by this title.
25 (b) The committee members shall be subject to agency's
26 conflict-of-interestpolicies. The members shall have no legal action
27 pending against the agency and are prohibited from acting in any
28 commercial activity directly or indirectly involving the agency,
29 such as being a consultant to agency or to any party with pending
30 legal actions against the agency during their tenure on this
31 committee. Committee members shall not have direct commercial
32 interest or employment with any public or private entity that
33 receives funds authorized by this title.
34 (c) The committee members shall receive a reasonable stipend
35 as compensation, which shall be set by the office of the inspector
36 general and shall be subject to board approval. A member may
37 choose to waive this stipend in its entirety.
38 (d) Each member of the committee shall serve for a term offive
39 years, and until a successor is appointed, except that initial
40 appointments may be staggered with terms of three years. A
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1 committee member may be removed at any time by the appointing
2 authority. Term limits for committee members will be staggered
3 to prevent significant turnover at any one time. There shall be no
4 limit to the number of terms that a committee member may serve.
5 (e) Any member may, at any time, resign from the committee
6 upon written notice delivered to the agency. Acceptance of any
7 public office, the filing of intent to seek public office, including a
8 filing under Section 85200, or change of residence to outside Los
9 Angeles County shall constitute a member's automatic resignation.
10 64718.2. The committee shall, at a minimum, meet on a
11 quarterly basis to carry out its responsibilities and is hereby
12 charged with the following responsibilities:
13 (a) The committee will have the annual responsibility to consider
14 and approve the expenditure plan pursuant to subdivision (e) of
15 Section 64830 as a precondition to approval by the full board of
16 directors.
17 (b) The agency shall contract for an annual audit, to be
18 completed within six months after the end of the fiscal year being
19 audited, for the purpose of determining compliance by the agency
20 with the provisions of this title relating to the receipt and
21 expenditure of revenues during the fiscal year At least one
22 representative of the committee will be involved in the solicitation
23 and selection process of the auditors. Selection of the auditors will
24 follow the board -approved procurement and solicitation policies.
25 The committee shall review the results of the audit performed and
26 makefindings as to whether agency is in compliance with the terms
27 of the bill. Such findings shall include a determination as to
28 whether recipients of revenues allocated and funds were expended
29 have complied with this bill and any additional guidelines
30 developed by the agency. The audit should include a determination
31 as to whether revenue recipients have complied with this title and
32 any additional guidelines developed by the agency. The committee
33 shall prepare an annual report on the results of the annual audit,
34 any findings made, and report the comments to the agency board.
35 (c) The committee shall review the comprehensive program
36 assessment of the expenditure plan every five years and make
37 findings and recommendations for improving the program. The
38 results of this assessment will be presented to the board.
39 (d) The agency, led by the Office of the Inspector General, shall
40 conduct a comprehensive review of all projects and programs
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1 implemented under the expenditure plan every five years. The
2 review shall evaluate project and program performance and make
3 recommendations to improve plan performance, based on current
4 practices, best practices, and organizational changes that could
5 improve coordination.
6 (e) The agency shall establish an internet website dedicated to
7 the oversight of this title. The internet website shall include all
8 pertinent information for the public. The committee shall review
9 all audits and hold an annual public hearing to report on the
10 results of the audits. All audit reports, findings, and
11 recommendations shall be made accessible to the public on the
12 internet website prior to the public hearing and upon request.
13 ()9 The committee may review all of the following, in its
14 discretion:
15 (1) For each agency area of focus, the efficiency and
16 effectiveness of the agency's use offunds.
17 (2) For local direct allocations of funding, the programmed
18 revenues and uses for each local jurisdiction.
19 (3) The percentage of the expenditure plan expenditures
20 compared to project milestone completion.
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22 CHAPTER 3. POWERS OF THE Los ANGELES COUNTY
23 AFFORDABLE HOUSING SOLUTIONS AGENCY
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25 64720. In implementing this title, the agency may do all of the
26 following:
27 (a) Place on the ballot in Los Angeles County and its
28 incorporated cities funding measures, in accordance with
29 applicable constitutional requirements, to raise and allocate funds
30 to Los Angeles County, the cities in Los Angeles County, and other
31 public agencies and affordable housing projects within its
32 jurisdiction for purposes of preserving and enhancing existing
33 housing, funding renter protection programs, and financing new
34 construction of housing developments that are 100 percent
35 affordable to households earning 80 percent of the relevant area
36 median income or below, with a priority on the lowest levels of
37 affordability.
38 (b) Apply for and receive grants from federal and state agencies.
39 (c) Incur and issue indebtedness and assess fees on any debt
40 issuance and loan products for reinvestment of fees and loan
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1 repayments in affordable housing production and preservation in
2 accordance with applicable constitutional requirements.
3 (d) Incur debt and issue bonds and otherwise incur liabilities
4 or obligations in accordance with Article 2 (commencing with
5 Section 64820) of Chapter 2 of Part 2, and in accordance with
6 applicable constitutional requirements.
7 (e) Solicit and accept gifts, fees, grants, and other allocations
8 from public and private entities.
9 (f) Deposit or invest moneys of the agency in banks orfinancial
10 institutions in the state.
11 (g) Sue and be sued, except as otherwise provided by law, in
12 all actions and proceedings, in all courts and tribunals of
13 competent jurisdiction.
14 (h) Engage counsel and other professional services.
15 (i) Enter into and perform all necessary contracts.
16 6) Enter into joint powers agreements pursuant to the Joint
17 Exercise of Powers Act (Chapter 5 (commencing with Section
18 6500) of Division 7 of Title 1).
19 (k) Hire staff, define their qualifications and duties, and provide
20 a schedule of compensation for the performance of their duties.
21 (l) Assemble parcels and lease, purchase, or otherwise acquire
22 land for housing development.
23 (m) Collect data on housing production and monitor progress
24 on meeting regional and state housing goals.
25 (n) Provide support and technical assistance to local
26 governments in relation to producing and preserving affordable
27 housing.
28 (o) Provide public information about the agency's housing
29 programs and policies.
30 (p) Act in compliance with the Marks -Roos Local Bond Pooling
31 Act of 1985 (Article 4 (commencing with Section 6584)) of Chapter
32 5 of Division 7 of Title 1.
33 (q) Allocate and deploy capital and generated fees or income
34 in the form of grants, loans, equity, interest rate subsidies, and
35 otherfinancing tools to the cities and otherpublic agencies within
36 the Los Angeles County area, and private affordable housing
37 developers to finance affordable housing development, preserve
38 and enhance existing affordable housing, and fund tenant
39 protection programs, pursuant to this title, in accordance with
40 applicable constitutional requirements.
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1 (r) Collaborate with staff employed by the Los Angeles
2 Metropolitan Transportation Authority with shared planning and
3 services.
4 (s) Any other express or implied powers necessary to carry out
5 the intent and purposes of this title.
6 64720.5. (a) Any construction project receiving funding or
7 financing from the agency, or from a measure proposed by the
8 agency pursuant to subdivision (a) of Section 64720, or from a
9 joint powers authority of which the agency is a member, shall
10 constitute a public workfor which prevailing wages shall be paid
11 for purposes of Chapter I (commencing with Section 1720) of Part
12 7 of Division 2 of the Labor Code.
13 (b) As a condition of providing funding or financing for a
14 construction project, the agency and any joint powers authority
15 of which the agency is a member, shall obtain an enforceable
16 commitment from the recipient that all contractors and
17 subcontractors at every tier performing work on the project shall
18 use a skilled and trained workforce to perform all work on the
19 project that falls within an apprenticeable occupation in the
20 building and construction trades, in accordance with Chapter 2.9
21 (commencing with Section 2600) of Part I of Division 2 of the
22 Public Contract Code.
23 (c) A public agency that uses funding from the agency, or from
24 a measure proposed by the agency pursuant to subdivision (a) of
25 Section 64720, to provide funding or financing for a construction
26 project, shall require the developer or direct contractor to provide
27 an enforceable commitment to the public agency that all
28 contractors and subcontractors at every tier performing work on
29 the project shall use a skilled and trained workforce to perform
30 all work on the project that falls within an apprenticeable
31 occupation in the building and construction trades, in accordance
32 with Chapter 2.9 (commencing with Section 2600) of Part I of
33 Division 2 of the Public Contract Code.
34 (d) Subdivisions (b) and (c) shall not apply if all contractors
35 and subcontractors at every tier performing work on the project
36 are bound by a project labor agreement to use a skilled and trained
37 workforce to perform the work. For purposes of this subdivision,
38 ` project labor agreement " has the same meaning as in paragraph
39 (1) of subdivision (b) of Section 2500 of the Public Contract Code.
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1 64721. (a) If the agency proposes a measure pursuant to
2 subdivision (a) of Section 64720 that will generate revenues, the
3 board of supervisors of Los Angeles County shall call a special
4 election on the measure. The special election shall be consolidated
5 with the next regularly scheduled statewide election and the
6 measure shall be submitted to the voters of Los Angeles County.
7 (b) (1) For the purpose of placement of a measure on the ballot,
8 the agency is a district, as defined in Section 317 of the Elections
9 Code. Except as otherwise provided in this section, a measure
10 proposed by the agency that requires voter approval shall be
11 submitted to the voters of Los Angeles County, as determined by
12 the agency, in accordance with the provisions of the Elections
13 Code applicable to districts, including the provisions of Chapter
14 4 (commencing with Section 9300) of Division 9 of the Elections
15 Code.
16 (2) Because the agency has no revenues as of the operative date
17 of this section, the appropriations limit for the agency shall be
18 originally established based on receipts from the initial measure
19 that would generate revenues for the agency pursuant to
20 subdivision (a), and that establishment of an appropriations limit
21 shall not be deemed a change in an appropriations limit for
22 purposes of Section 4 of Article XIIIB of the California
23 Constitution.
24 (c) (1) Notwithstanding Section 10520 of the Elections Code,
25 for any election at which the agency proposes a measure pursuant
26 to subdivision (a) of Section 64720 that would generate revenues,
27 the agency shall reimburse Los Angeles County for the incremental
28 costs incurred by the county elections official related to submitting
29 the measure to the voters with any eligible funds transferred to
30 the agency.
31 (2) For purposes of this subdivision, "incremental costs" include
32 all of the following:
33 (A) The cost to prepare, review, and revise the impartial analysis
34 of the measure.
35 (B) The cost to prepare a translation of ballot materials into a
36 language other than English by the county.
37 (C) The additional costs that exceed the costs incurred for other
38 election races or ballot measures, if any, appearing on the same
39 ballot in Los Angeles County, including both of the following:
40 (i) The printing and mailing of ballot materials.
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1 (ii) The canvass of the vote regarding the measure pursuant to
2 Division 15 (commencing with Section 15000) of the Elections
3 Code.
4 (d) Notwithstanding Section 9313 of the Elections Code, the
5 legal counsel for the board shall prepare an impartial analysis of
6 the measure. The impartial analysis prepared by the legal counsel
7 for the board shall be subject to review and revision by the county
8 counsel.
9 (e) The summary of the regional expenditure plan shall be
10 prepared by the board and include all of the following:
11 (1) A description of the purpose and goals of the measure.
12 (2) A description of the categories of eligible expenditures to
13 be funded.
14 (3) An estimate of the number of affordable housing units to be
15 built or preserved by household income category served, and a
16 description of any speck projects planned to be funded.
17 (4) An estimate of minimum funding levels to be provided to
18 different expenditure categories.
19 (5) An overview of decisionmaking and oversight provisions
20 applicable to the funds.
21 64722. The board and the agency shall not do either of the
22 following:
23 (a) Regulate or enforce local land use decisions.
24 (b) Acquire property by eminent domain.
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26 CHAPTER 4. FINANCIAL PROVISIONS
27
28 64730. The board shall provide for regular audits of the
29 agency's accounts and records, shall maintain accounting records,
30 and shall report accounting transactions in accordance with
31 generally accepted accounting principles adopted by the
32 Governmental Accounting Standards Board of the Financial
33 Accounting Foundation for both public reporting purposes and
34 for reporting of activities to the Controller
35 64731. The board shall provide for annual financial reports.
36 The board shall make copies of the annual financial reports
37 available to the public.
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PART 2. FINANCING ACTIVITIES OF THE LOSANGELES
CO UNTYAFFORDABLE HOUSING SOLUTIONS AGENCY
CHAPTER 1. GENERAL PROVISIONS
64800. (a) The agency may raise and allocate new revenue
through all of the following funding mechanisms:
(1) Special taxes, subject to voter approval, as provided in
Article I (commencing with Section 64810) of Chapter 2, as
follows:
(A) A parcel tax, as provided in Section 64810.
(B) A gross receipts business license tax, as provided in Section
64811.
(C) A documentary transfer tax, as provided in Section 64813.
(2) The issuance of bonds, including, but not limited to, general
obligation bonds, revenue bonds, mortgage revenue bonds, and
private activity bonds as provided in Article 2 (commencing with
Section 64820) of Chapter 2, in accordance with applicable
constitutional requirements.
(b) It is the intent of the Legislature that the funding measures
authorized by this subdivision distribute the responsibility for
addressing the affordable housing needs of the region across
commercial developers, taxpayers, and property owners within
the region.
CHAPTER 2. REVENUE
Article 1. Special Taxes
64810. (a) Subject to Section 4 of Article XIIIA of the
California Constitution, and approval by the board before the
agency takes action to approve the placement of a measure on the
ballot, the agency may impose, by resolution, a parcel tax within
the Los Angeles County area pursuant to the procedures
established in Article 3.5 (commencing with Section 50075) of
Chapter I of Part I of Division I of Title 5, Section 64 72 1, and
any other applicable procedures provided by law.
(b) For purposes of this section, `parcel tax" means a special
tax imposed upon a parcel of real property at a rate that is
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1 determined without regard to thatproperty's value and that applies
2 uniformly to all taxpayers or all real property within the
3 jurisdiction of the local government. "Parcel tax " does not include
4 a tax imposed on a particular class of property or taxpayers.
5 (c) The agency shall provide notice of any parcel tax imposed
6 pursuant to this section in the manner specified in Section 54930.
7 (d) Thereafter, the amount of the lien shall be collected at the
8 same time, and in the same manner, as ordinary city taxes are
9 collected, and shall be subject to the same penalties and interest
10 and to the same procedure under foreclosure and sale in case of
11 delinquency as provided for ordinary city taxes. All laws applicable
12 to the levy, collection, and enforcement of city taxes and county
13 taxes are hereby made applicable to the special assessment taxes.
14 64811. (a) (1) The agency may impose, subject to approval
15 by the board before the agency takes action to approve the
16 placement of a measure on the ballot, by resolution, a special tax,
17 measured by gross receipts, for the privilege of engaging in any
18 kind of lawful business transacted in the Los Angeles County area
19 pursuant to the procedures established in Article 3.5 (commencing
20 with Section 50075) of Chapter I of Part I of Division I of Title
21 5, Section 64721, and any other applicable procedures provided
22 by law.
23 (2) The resolution imposing a special tax pursuant to this
24 subdivision may provide for the following:
25 (A) Variable rates based on the business sector of each person
26 subject to the tax.
27 (B) Exemptions for small businesses.
28 (C) Collection of the tax by suit or otherwise.
29 (b) If the agency levies a special tax pursuant to subdivision (a)
30 upon a business operating both within and outside the agency's
31 taxing jurisdiction, the agency shall levy the tax so that the measure
32 of tax fairly reflects that proportion of the taxed activity actually
33 carried on within the taxing jurisdiction.
34 (c) A special tax levied pursuant to subdivision (a) shall not
35 apply to any nonprofit organization that is exempted from taxes
36 by Chapter 4 (commencing with Section 23701) of Part 11 of
37 Division 2 of the Revenue and Taxation Code or Subchapter F
38 (commencing with Section 501) of Chapter I of Subtitle A of the
39 Internal Revenue Code of 1986, or the successor of either, or to
40 any minister, clergyman, Christian Science practitioner, rabbi, or
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leader of any religious organization that has been granted an
exemption from federal income tax by the United States
Commissioner of Internal Revenue as an organization described
in Section 501(c)(3) of the Internal Revenue Code or a successor
to that section.
64812. Taxes levied pursuant to Section 64811 shall be
collected in the following manner:
(a) County tax collectors shall be responsible for collecting the
tax revenue.
(b) The county levying the tax shall prepare a tax return.
(c) The county shall create policies and procedures necessary
to collect tax revenue, including, but not limited to, policies that
achieve both of the following:
(1) Ensure adequate enforcement of taxes levied pursuant to
Section 64811.
(2) Provide subjects of a tax with an opportunity to appeal the
amount of tax owed.
64813. Subject to Section 4 of Article XIIIA of the California
Constitution, and approval by the board before the agency takes
action to approve the placement of a measure on the ballot, the
agency may impose, by resolution, a documentary transfer tax
within the Los Angeles County area, pursuant to Part 6.7
(commencing with Section 11901) of Division 2 of the Revenue
and Taxation Code, and any other applicable procedures provided
by law.
64814. All special taxes levied pursuant to this article shall be
administered in the following manner:
(a) Taxes collected shall be deposited in a separate fund, which
shall be established in the treasury of the county and used only as
prescribed by this section.
(b) The county shall transfer moneys intended for regional
projects pursuant to Section 64830 from the fund to the agency
periodically as promptly as feasible. The transmittals shall be
made at least twice in each calendar quarter
Article 2. Bonds
64820. The board may, by majority vote, initiate proceedings
to issue general obligation bonds pursuant to this chapter by
adopting a resolution stating its intent to issue the bonds.
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1 64821. (a) The agency may incur general obligation bonded
2 indebtedness, secured by the levy of ad valorem property taxes,
3 pursuant to paragraph (2) of subdivision (b) of Section I ofArticle
4 XIIIA of the California Constitution, for the acquisition or
5 improvement of real property or for funding or refunding of any
6 outstanding indebtedness in connection with the acquisition or
7 improvement of that real property.
8 (b) For purposes of incurring general obligation bonded
9 indebtedness pursuant to this subdivision, the agency shall comply
10 with the requirements of Chapter 3 (commencing with Section
11 53400) of Part I of Division 2 of Title 5.
12 64822. (a) (1) For purposes of this section, "agency revenues "
13 includes, without limitation, revenues generated by any special
14 tax, fee, or charge imposed by the agency, other than ad valorem
15 property taxes.
16 (2) The agency may issue revenue bonds, payable from agency
17 revenues, in accordance with the Revenue Bond Law of 1941
18 (Chapter 6 (commencing with Section 54300) ofPart I ofDivision
19 2 of Title 5), for the purposes set forth in this title and in any
20 resolution adopted by the agency, or measure adopted by voters,
21 in connection with the generation of agency revenues or imposition
22 of those special taxes, fees, or other charges. For purposes of
23 issuing revenue bonds pursuant to this section, the special taxes,
24 fees, or other charges described in the previous sentence shall
25 constitute an "enterprise" within the meaning of Section 54309.
26 (3) To exercise the powers described in this section, the agency
27 shall ensure that any regional expenditure plan summary prepared
28 pursuant to Section 64721 related to voter approval of a special
29 tax under this title nodes the voters that proceeds from the special
30 tax may be used as payment for revenue bonds.
31 (4) For purposes of this section, the agency shall be deemed to
32 be a local agency within the meaning of Section 54307. Article 3
33 (commencing with Section 54380) of Chapter 6 of Part I of
34 Division 2 of Title 5 and the limitations on the rate of interest set
35 forth in subdivision (b) of Section 54402 do not apply to the
36 issuance and sale of bonds pursuant to this section. Instead, the
37 agency shall authorize the issuance of bonds by resolution at any
38 time, and from time to time, which shall speck all of the following:
39 (A) The purposes for which the bonds are to be issued.
40 (B) The maximum principal amount of the bonds.
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1 (C) The maximum term for the bonds.
2 (D) (i) The maximum rate of interest to be payable upon the
3 bonds, which shall not exceed the maximum rate permitted for
4 bonds of the agency by Section 53531 or any other applicable
5 provisions of law.
6 (ii) In the case of bonds bearing a variable interest rate, the
7 variable rate shall not, on any day, exceed the maximum rate
8 permitted for bonds of the agency by Section 53531 or any other
9 applicable provisions of law. However, the variable interest rate
10 may, on any day, exceed that maximum rate in clause (i), if the
11 interest paid on the bonds from their date of original issuance to
12 that day does not exceed the total interest that would have been
13 permitted if the bonds had borne interest at all times from the date
14 of issuance to that day at the maximum rate permitted from time
15 to time by Section 53531 or any other applicable provisions of
16 law.
17 (E) The maximum original issue premium or discount on the
18 sale of the bonds.
19 (F) The denomination or denominations of the revenue bonds,
20 which shall not be less than five thousand dollars ($5, 000).
21 (b) The resolution may also contain any other matters authorized
22 by this chapter or any other law.
23 (c) The revenue bonds may be sold at public or private sale or
24 on a negotiated sale basis and at the prices, above or below par,
25 as determined by the board.
26 (d) The revenue bonds, or each series thereof, shall be dated
27 and numbered consecutively and shall be signed by the executive
28 director of the agency, whose signature may be printed,
29 lithographed, or mechanically reproduced. If any officer whose
30 signature appears on the revenue bonds ceases to be that officer
31 before the delivery of the bonds, the officer's signature is as
32 effective as if the officer had remained in office.
33 (e) This section provides a complete, additional, and alternative
34 method or the issuance of revenue bonds by the agency. An
35 issuance does not need to comply with the procedures specified
36 elsewhere in this article or other laws, but shall instead be issued
37 in accordance with the procedures specified in this article.
38 64822.5. The agency may issue mortgage revenue bonds
39 pursuant to Part 5 (commencing with Section 52000) of Division
40 31 of the Health and Safety Code, and other applicable law.
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1 64822.7. The agency may issue private activity bonds pursuant
2 to Chapter IL 8 (commencing with Section 8869.80) of Division
3 1 of Title 2, and other applicable law.
4 64823. (a) The agency or any person executing the bonds
5 issued pursuant to this title shall not be personally liable on the
6 bonds by reason of their issuance.
7 (b) The bonds and other obligations of the agency are not a
8 debt of any city or Los Angeles County, or any of its affiliated
9 entities, or of the state or of any of its political subdivisions, other
10 than the agency, and neither a city or county nor the state or any
11 of its political subdivisions, other than the agency, shall be liable
12 on the bonds, and the bonds or obligations shall be payable
13 exclusively from funds or properties of the agency, as specified in
14 the applicable bond or other security document. Bonds issued
15 pursuant to this title shall contain a statement to this effect on their
16 face.
17 (c) If the signature of any member of the agency or staff member
18 of the agency appears on bonds issued pursuant to this title, and
19 that individual ceases to be a member of the agency or staff
20 member of the agency before delivery of the bonds, that member's
21 signature shall be as effective as if the member had remained in
22 office.
23 64824. (a) Every two years after the issuance of bonds
24 pursuant to this section, the agency shall contract for an
25 independent financial and performance audit. The audit shall be
26 conducted according to guidelines established by the Controller.
27 A copy of the completed audit shall be provided to the Controller,
28 the Director of Finance, and the Joint Legislative Budget
29 Committee.
30 (b) Upon the request of the Governor or the Legislature, the
31 Bureau of State Audits may conduct a financial and performance
32 audit of the agency. The results of any audit shall be provided to
33 the board, the Controller, the Director of Finance, and the Joint
34 Legislative Budget Committee.
35 64825. Bonds issued pursuant to this article are fully
36 negotiable.
37 64826. Any action to determine the validity or adoption of any
38 tax, fee, or other charge provided for in, or the validity of bonds
39 issued pursuant to, this title, or any of the proceedings, contracts,
40 agreements, or other arrangements or matters entered into, shall
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be commenced within 60 days from date of the election or the
adoption of the resolution approving those matters, as applicable,
pursuant to Chapter 9 (commencing with Section 860) of Title 10
of Part 2 of the Code of Civil Procedure. After that date, the
adoption of that tax, fee, or other charge, the issuance of the bonds,
and all proceedings in relation thereto, shall be held valid and
incontestable in every respect.
CHAPTER 3. EXPENDITURES
64830. (a) Revenue generated pursuant to this part shall be
used for the construction of new affordable housing, affordable
housing preservation, tenant protection programs, planning and
technical assistance related to affordable housing, and for other
purposes, as provided for in this section.
(b) For purposes of this section, "regional housing revenues"
are those revenues generated pursuant to this Chapter 2
(commencing with Section 64810).
(c) The allocation of regional housing revenues to projects and
programs shall be approved by the board.
(d) Subject to funding eligibility and adjustment pursuant to
paragraph (4), the agency shall distribute regional housing revenue
in the form of a grant, loan, or other financing tool pursuant to
subdivision (q) of Section 64720 in a manner that achieves the
following minimum shares over five-year periods commencing
after revenue is approved by voters as follows:
(1) A minimum of 50 percent of the annual programmatic
budget, excluding any bond indebtedness, shall be spent on
affordable housing creation, preservation, and ownership as
follows:
(A) The following conditions shall apply with regard to
affordable housing creation:
(i) Funding pursuant to this subparagraph may be used for the
followingpurposes, including, but not limited to, land acquisition,
housing acquisition, financing, and ownership programs, including
the agency serving as a single source offinancing as appropriate.
(ii) Financing for any development costs associated with a
project or funding grant that is for housing that is 100 percent
affordable, which means restricted to any household that earns
less than 80 percent of the area median income (AM).
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1 (iii) In any funded development or affordable housing grant, at
2 least 25 percent of the units in an awarded project or grant shall
3 be reserved for extremely low income households that fall within
4 zero percent to 30 percent of the AM.
5 (iv) In any funded development or affordable housing grant, at
6 least 25 percent of the units in an awarded project or grant shall
7 be reserved for very low income households that fall within 30
8 percent to 50 percent of the AM or lower
9 (B) The following conditions shall apply with regard to
10 affordable housing preservation:
11 (i) Funding pursuant to this subparagraph for preservation
12 programs may be used to acquire, rehabilitate, and preserve
13 existing housing units for affordability, as well as housing from
14 the private market, including residential hotels, as defined in
15 paragraph (1) of subdivision (b) of Section 50519 of the Health
16 and Safety Code, in order to prevent the loss of affordability as
17 well as expandpermanent affordability. Fundingprovidedpursuant
18 to this subparagraph shall be subject to both of the following
19 conditions:
20 (I) Existing residents of buildings acquired for the purpose of
21 affordable housing preservation shall not be permanently
22 displaced, even if the resident's household income exceeds the
23 moderate -income limits in Section 50093 of the Health and Safety
24 Code.
25 (II) Buildings acquired for the purpose of affordable housing
26 preservation shall achieve 100 percent occupancy by extremely
27 low and very low income households over time through unit
28 turnover.
29 (ii) Community land trusts, and other similar structures, are an
30 eligible use pursuant to this subparagraph.
31 (C) The following conditions shall apply to affordable
32 ownership:
33 (i) Programs to enable low- or moderate -income households
34 to become or remain homeowners, including, but not limited to,
35 below market rate ownership programs, down payment assistance
36 programs, residential rehabilitation loan programs, and grants
37 or loans to assist in the rehabilitation or replacement of existing
38 mobilehomes located in a mobilehome or manufactured home
39 community.
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1 (ii) Community land trusts, and other similar structures, are an
2 eligible use pursuant to this subparagraph.
3 (D) Funding provided pursuant to this paragraph shall be
4 subject to the following conditions in the event that demolition or
5 rehabilitation of housing units is required:
6 (i) (I) Any funded development or affordable housing grant on
7 any property that includes a parcel or parcels that currently have
8 residential uses, or within the five years preceding the grant have
9 had residential uses that have been vacated or demolished, that
10 are or were subject to a recorded covenant, ordinance, or law that
11 restricts rents to levels affordable to persons and families of low-
12 or very low income, subject to any other form of rent or price
13 control through apublic entity's valid exercise of itspolicepower,
14 or occupied by low- or very low income households, shall be
15 subject to a policy requiring the replacement of all those units with
16 at least the same number of units of equivalent number of bedrooms
17 to be made available at affordable rent or affordable housing cost
18 to, and occupied by, persons and families in the same or lower
19 income category as those households in occupancy.
20 (II) Replacement requirements shall be consistent with those
21 set forth in paragraph (3) of subdivision (c) of Section 65915,
22 provided that any dwelling unit that is or was, within the five year
23 period preceding the grant, subject to a form of rent or price
24 control through a local government's valid exercise of its police
25 power and that is or was occupied by persons or families above
26 lower income shall be replaced with units made available at
27 affordable rent or affordable housing cost to, and occupied by,
28 low-income persons or families.
29 (ii) If existing residents are required to be relocated due to
30 demolition or rehabilitation needs, the developer is required to
31 provide relocation benefits to the occupants of those housing rental
32 units subject to Chapter 16 (commencing with Section 7260) of
33 Division 7 of Title 1. This clause shall not supersede any provision
34 of a locally adopted ordinance that requires greater relocation
35 assistance to displaced households.
36 (iii) If existing residents are required to be relocated due to
37 demolition or rehabilitation needs, the developer shall provide a
38 right offirst refusal for a comparable unit available in the new or
39 rehabilitated housing development that is affordable to the
40 household at an affordable rent, as defined in Section 50053 of
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1 the Health and Safety Code, or an affordable housing cost, as
2 defined in Section 50052.5 of the Health and Safety Code.
3 (2) (A) At least 30 percent and not more than 40 percent of the
4 total annual programmatic budget, excluding any bond
5 indebtedness, shall be spent on countywide renter protection and
6 support programs.
7 (B) These programs include any effort that helps low-income
8 renters, defined as a household that earns 80 percent or less of
9 the AM.
10 (C) Eligible uses of the funds, include, but are not limited to,
11 all of the following:
12 (i) Preeviction and eviction legal services, counseling, advice
13 and consultation, training, renter education and representation,
14 and services to improve habitability that protect against
15 displacement of tenants.
16 (ii) Providing rental assistance for lower -income households.
17 Rental assistance shall be paired with supportive services, such
18 as eviction prevention and defense, to the greatest extent possible.
19 (iii) Providing relocation assistance for lower -income
20 households beyond what is legally required of landlords according
21 to local or state law.
22 (iv) Collection and tracking of information related to
23 displacement and displacement risk, rents, and evictions in the
24 region.
25 (3) Not more than 10 percent of the percent of the total annual
26 programmatic budget, excluding any bond indebtedness, shall be
27 used for administrative and operations expenses associated with
28 the agency.
29 (4) No earlier than five years after approval of a funding
30 measure under Chapter 2 (commencing with Section 64810) and
31 subject to consultation with the citizens'oversight committee, the
32 board may change any of the minimum requirements in paragraph
33 (1) or (2) if the board adopts a finding that the region's needs in
34 a given category differ from those requirements. The board is
35 required to approve the finding by a two-thirds vote. Approval of
36 the finding shall be subject to the public participation requirements
37 provided in subdivision (h) of Section 64711.
38 (e) (1) The board shall, in consultation with the citizens'
39 oversight committee, adopt a regional expenditure plan for the
40 use of housing revenue by July I of each year, except the board
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1 shall select the deadline to adopt the first regional expenditure
2 plan. The regional expenditure plan may cover multiple years, as
3 determined by the board.
4 (2) The regional expenditure plan shall set forth the share of
5 revenue and estimated funding amount to be spent on each of the
6 categories established in subdivision (d), indicate the household
7 income levels to be served within each category of expenditures,
8 and estimate the number of affordable housing units to be built or
9 preserved and the number of tenants to be protected. To the extent
10 feasible, the regional expenditure plan shall include a description
11 of any speck project or program proposed to receive funding,
12 including the location, amount of funding, and anticipated
13 outcomes.
14 (3) The regional expenditure plan shall include the following
15 information for any speck project that has received an allocation
16 of regional housing revenue during the prior year:
17 (A) Whether the project proponent has requested a building
18 permit for the project, and if so, the date when it was requested.
19 (B) Whether the project proponent is eligible to request a
20 building permit for the project, and if so, the date when it became
21 eligible.
22 (C) Whether the project proponent has obtained final approval
23 or certification that the housing development is habitable, such as
24 a certificate of occupancy, and if so, the date when it was obtained.
25 ()9 (1) Funds allocated to a city pursuant to paragraph (4) of
26 subdivision (d) shall be committed to a speck project within five
27 years of receipt.
28 (2) Once committed to a speck project, funds shall remain
29 available for expenditure for an additional five years, unless an
30 extension is authorized pursuant to paragraph (3).
31 (3) If the funds have not been expended within five years of
32 receipt as required in paragraph (2), the city shall show that it
33 has made adequate progress towards completing the project. If
34 the county finds that the city has made adequate progress, the
35 county shall authorize an additional 24 months to grant
36 entitlements to the remainder of the project. If the county does not
37 find that the city has made adequate progress, the funds shall be
38 transferred to the county. The county shall hold the funds until the
39 city submits a plan satisfactory to the county to move forward with
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1 the project or allocate funds to another qualified project consistent
2 with the city's expenditure plan.
3 (4) For purposes of this subdivision, "adequate progress " means
4 the project has received the land use approvals or entitlements
5 necessary for at least 75 percent of the project's units.
6 64830.5. (a) Revenue generated pursuant to this part shall be
7 allocated according to the following geographic distribution
8 schedule:
9 (1) Seventy percent of annual funding for the purpose of renter
10 protections and support shall be allocated, on a per low-income
11 renter household basis, into the following six allocation categories,
12 provided that the allocation is consistent with the eligible uses of
13 the funding set forth in paragraph (2) of subdivision (d) of Section
14 64830:
15 (A) The councils of governments in Los Angeles County.
16 (B) The City of Los Angeles.
17 (C) The City of Long Beach.
18 (D) The City of Santa Clarita.
19 (E) The City of Glendale.
20 (F) The unincorporated areas of Los Angeles County.
21 (2) The agency shall have the discretion to fund any programs
22 operated by any governmental or nonprofit entity that are
23 consistent with the eligible uses outlined for renter protections
24 and support. Direct unrestricted allocations are not permitted to
25 any governmental entity.
26 (3) Thirty percent of annual funding for the purpose of renter
27 protections and support shall be allocated by the agency consistent
28 with the guiding principles of the agency and the eligible uses
29 outlined in Section 64830.
30 (4) Seventy percent of annual funding shall be allocated based
31 on approved affordable housing very low income and low-income
32 regional housing needs assessment goals into the following six
33 allocation categories, consistent with the eligible uses of funding
34 as outlined in paragraph (1) of subdivision (d) of Section 64830:
35 (A) The councils of governments in Los Angeles County.
36 (B) The City of Los Angeles.
37 (C) The City of Long Beach.
38 (D) The City of Santa Clarita.
39 (E) The City of Glendale.
40 (F) The unincorporated areas of Los Angeles County.
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1 (5) Thirty percent of annual funding within this category shall
2 be allocated on an at -large basis by the citizens' oversight
3 committee and board consistent with the guiding principles for all
4 agency investments. At least 10 percent of this amount shall be
5 distributed to cities with less than 50,000 residents through a
6 competitive grant program administered by the board.
7 (b) Councils of governments in Los Angeles County shall be
8 subject to the following requirements:
9 (1) Funds allocated to a council of governments shall be
10 administered by the agency in collaboration with the council
11 receiving funding.
12 (2) Cities within each council of governments are entitled to a
13 pro-rata allocation, or other similar allocation method determined
14 through collaboration between the agency and the applicable
15 council of governments, of very low incoming and low-income
16 affordable housing units under Article 10.6 (commencing with
17 Section 65580) of Chapter 3 of Division I of Title 7.
18 (3) At least 5 percent of funds allocated to councils of
19 governments shall be used for technical assistance grants to cities
20 with a population under 50, 000.
21 (4) Funds, or a portion of the funds, provided to the San Gabriel
22 Valley Council of Governments may be allocated by the council
23 to the San Gabriel Valley Regional Housing Trust, and the trust
24 shall use the funds pursuant to the same requirements as funding
25 provided to the councils of governments.
26 (c) Cities receiving a direct allocation shall be subject to the
27 following requirements:
28 (1) The City of Los Angeles shall have its own set aside
29 proportional to its respective affordable housing needs assessment
30 goal, subject to a 50 percent limit on total funding that is set aside
31 for councils of governments, cities, and unincorporated
32 communities.
33 (2) The City of Long Beach shall have its own set aside
34 proportional to its respective affordable housing needs assessment
35 goal.
36 (d) Unincorporated areas of Los Angeles County shall have its
37 own set aside, which shall be proportional to its respective
38 affordable housing needs assessment goal.
39 (e) The following factors shall be considered for at -large funding
40 allocations:
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1 (1) Whether the allocation affirmatively furthers fair housing.
2 (2) The allocation's effect on displacement indicators.
3 (3) The allocation's effect on rent -burdened populations.
4 (4) Whether the allocation serves populations with disabilities.
5 64831. The board shall monitor expenditures incoordination
6 with local jurisdictions. At least once every five years, the
7 monitoring shall include a review of revenues allocated to cities.
8 The board may adopt guidelines applicable to those funds as
9 deemed necessary to ensure they are spent in a timely manner
10 consistent with the goals of this chapter
11 64832. To ensure oversight and accountability, the agency
12 shall prepare and submit an annual report to the Legislature, in
13 conformance with Sections 9795 and 53411 on allocations and
14 expenditures under its control, and those controlled by counties
15 pursuant to subdivision (d) of Section 64830. The report shall
16 include a description of projects funded and their status, the
17 households served by income level, and the extent to which the
18 minimum targets in subdivision (d) of Section 64830 were achieved.
19 SEC. 2. The Legislature finds and declares that a special statute
20 is necessary and that a general statute cannot be made applicable
21 within the meaning of Section 16 of Article IV of the California
22 Constitution because of the uniquely severe shortage of available
23 funding and resources for the development and preservation of
24 affordable housing and the particularly acute nature of the housing
25 crisis within Los Angeles County.
26 SEC. 3. No reimbursement is required by this act pursuant to
27 Section 6 ofArticle XIIIB of the California Constitution for certain
28 costs that may be incurred by a local agency or school district
29 because, in that regard, this act creates a new crime or infraction,
30 eliminates a crime or infraction, or changes the penalty for a crime
31 or infraction, within the meaning of Section 17556 of the
32 Government Code, or changes the definition of a crime within the
33 meaning of Section 6 of Article XIIIB of the California
34 Constitution.
35 However, if the Commission on State Mandates determines that
36 this act contains other costs mandated by the state, reimbursement
37 to local agencies and school districts for those costs shall be made
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1 pursuant to Part 7 (commencing with Section 17500) of Division
2 4 of Title 2 of the Government Code.
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