DistrictsAffordable Housing Authorities
Section § 62250
This section defines key terms related to affordable housing authorities and initiatives in California. 'Affordable housing' refers to housing costs or rents that are manageable for households earning up to 120% of the area's median income. An 'authority' is the entity created to manage affordable housing efforts. An 'authorizing resolution' is a formal decision to create such an authority.
A 'consenting local agency' is a local government body that agrees to support an affordable housing investment plan. The 'plan' refers to the document outlining how affordable housing projects will be funded and developed. 'Property tax increment' is the extra property tax revenue generated by increased property values, used for funding affordable housing, but excludes some properties tied to former redevelopment agencies until their obligations are cleared.
'Real property' includes land and its associated rights and interests, such as buildings and easements.
Section § 62251
This law allows cities and counties in California to set up affordable housing authorities dedicated to building low- and moderate-income housing. These authorities can collect property tax increment revenues but face restrictions on who can join, excluding school entities and certain successor agencies. For such authorities to be effective, past redevelopment matters must be resolved according to specific conditions. The governing board for these authorities must have an odd number of members, including representatives from local government and the public. The authority’s boundaries can match those of the city or county that created it.
Section § 62252
This law section outlines the responsibilities of a local authority in California to set up a Low and Moderate Income Housing Fund and create an affordable housing investment plan. This plan can involve taking a share of property tax increasements or other tax revenues. The plan must clearly state its goals, describe the affordable housing program, and include estimates for revenues and expenses over five years, along with projected construction or renovation of housing units at various income levels. It also sets a 45-year limit for loan activities, repayment of debts, and completing housing obligations. Before finalizing the plan, a public hearing must be held to gather community input.
Section § 62253
This California law allows cities, counties, and special districts (excluding schools and certain agencies) to allocate their share of property tax increments within a specific area to a designated authority. These allocations must be set through a resolution and can include local sales and use taxes if they fit the original tax purposes and geographic boundaries match the authority. Tax increment revenues are primarily aimed at enhancing affordable housing, maintaining a minimum of 95% usage towards housing improvements for low to moderate-income communities. Administrative use of funds is capped at 5%. This law doesn't change existing tax revenue distribution or calculations among local governments not participating in such arrangements.
Housing funds should support either the development of very low-income housing or initiatives like shelters and supportive housing. Counties can recoup administrative costs before distributing funds. Finally, the law ensures that existing revenue allocations for educational or other taxing entities aren't reduced or altered.
Section § 62254
This law gives certain authorities the ability to improve community conditions in several ways. First, they can provide affordable housing for low- and moderate-income residents. They can also clean up hazardous substances and perform earthquake safety retrofits on buildings. Authorities can purchase and sell property, following specific restrictions for public benefits. They are allowed to issue bonds, borrow money, and receive financial help from government entities or private lenders. Additionally, they can create affordable housing plans, offer loans or grants to improve buildings, and build structural platforms for housing development. Finally, they can finance infrastructure necessary for housing projects, like water and sewer systems.
Section § 62255
Once the authority has allocated over $1 million in certain tax revenues or other specified revenues, it must start yearly independent audits. These audits must follow government auditing rules to ensure proper use of the funds.
Section § 62256
This law is about relocating families and individuals who are displaced due to affordable housing projects in certain areas. Authorities must create and integrate a relocation plan into their housing plans, ensuring displaced people, especially those with low and moderate incomes, have affordable and suitable new housing before they are moved.
Cities must make sure there is enough housing, both temporary and permanent, available. Priority in new housing is given to those displaced, and housing for low-income families should stay affordable for 45-55 years.
In cases where homes are destroyed or removed, a similar or greater number of bedrooms must be provided. Displaced individuals are entitled to relocation assistance as outlined in another section of the law. This includes potential payments covered by the federal government.
Section § 62257
This law gives certain authorities priority when applying for help with housing programs run by the Department of Housing and Community Development and other state agencies.
Section § 62258
This law allows an authority to hand over its housing duties to a housing authority or a city or county housing department if doing so would save on administrative costs or speed up the building of affordable housing.
Section § 62259
This law mandates that any housing project supported by certain authorities must stay affordable for specific durations: at least 55 years for rental properties and 45 years for those occupied by owners.
The housing authority is required to sign a legal agreement or impose restrictions to ensure these homes remain affordable for lower-income households. Rent limits must align with specific state guidelines, unless other financial aid terms dictate otherwise.
Section § 62260
This law allows an authority to handle real and personal property in various ways within its jurisdiction. Firstly, it can purchase or acquire property using different methods like buying, leasing, or accepting gifts, but must first get an independent appraisal to establish market value. Secondly, it can accept surplus property from public entities either within or outside the plan area and sell or lease it to others. Funds from these transactions can be given to the community or the original public entity. Thirdly, the law allows the authority to provide property to housing authorities or public agencies for housing projects. Lastly, the authority can resell rehabilitated property within a year, and must report unsold properties held for more than a year, explaining why they're unsold and detailing future plans.
Section § 62261
This law allows an authority to set rules on land sold or leased for private use to ensure it follows a planned use, which is considered a public benefit. The authority can impose obligations on buyers or renters of property in affordable housing projects. These obligations include using the property as planned, starting the project within a reasonable time, and adhering to rules to prevent land speculation or excessive profit from undeveloped land. This may include reclaiming the land if necessary. Other conditions can also be imposed to meet the goals of the housing plan.
Section § 62261.1
If you want to legally challenge the creation of an authority, an affordable housing plan, the allocation of tax revenues, or the issuance of bonds by an authority, you must start the process within 30 days after the relevant decision is made. For tax revenues and bonds, legal actions should follow specific procedures outlined in another part of the legal code. Additionally, the authority itself can request a local court to confirm the legality of its financial actions, such as issuing bonds or other financial instruments.
Section § 62262
This law states that any authority created under this division is considered a local public agency and must comply with three main laws. These are the Ralph M. Brown Act, which mandates open meetings; the California Public Records Act, which requires public access to records; and the Political Reform Act of 1974, which regulates political ethics and financial transparency.