AMENDED IN ASSEMBLY JUNE 30, 2022
AMENDED IN ASSEMBLY JUNE 21, 2022
AMENDED IN ASSEMBLY JUNE 20, 2022
AMENDED IN SENATE APRIL 25, 2022
AMENDED IN SENATE APRIL 18, 2022
AMENDED IN SENATE MARCH 15, 2022
SENATE BILL No. 1105
Introduced by Senator Hueso
February 16, 2022
An act to add Title 6.5 (commencing with Section 62800) to the Government Code, relating to housing.
legislative counsel’s digest
SB 1105, as amended, Hueso. San Diego Regional Equitable and Environmentally Friendly Affordable Housing Agency.
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 Agency to raise, administer, and allocate funding for af fordable housing in the San Francisco Bay area, as defined, and pro vide technical assistance at a regional level for tenant protection, af fordable housing preserv ation, and new affordable housing production.
93 This bill, the San Die go Regional Equitable and En vironmentally Friendly Housing Act, would establish the San Diego Regional Equitable and Environmentally Friendly Affordable Housing Agency and would state that the agenc y’s purpose is to increase the supply of equitable and environmentally friendly housing in the County of San Die go by providing for significantly enhanced funding and technical assistance across the re gional level for equitable and en vironmentally friendly housing projects and programs, equitable housing preserv ation, and rental protection programs, as specified. The bill would require a board composed of 6 voting members who are primary or alternate members of the San Diego Association of Governments, as specified, to govern the agency.
This bill w ould authorize the agenc y to, among other things, incur and issue indebtedness, place v arious measures on the ballot in the County of San Die go and its incorporated cities to raise and allocate funds, in accordance with applicable constitutional requirements, and to issue general oblig ation bonds secured by the le vy of ad v alorem property taxes, for purposes of producing and preserving equitable and environmentally friendly housing and supporting rental protection activities, as specified. Among the funding measures, the bill w ould authorize the agency to impose a parcel tax, a gross receipts b usiness license tax, a special b usiness tax, specified special tax es on real property, and a commercial linkage fee, as defined. The bill would also authorize local jurisdictions within San Die go County to impose a special documentary transfer tax, as specified, and authorize those local jurisdictions to remit proceeds of the tax to the agenc y to support the purposes of the agency. The bill would require that revenue generated by the agency pursuant to these provisions be used for specified housing purposes and require the agency to distribute those funds in accordance with specified requirements and subject to a specified priority. The bill would require the board to pro vide for regular financial audits of the agency’s accounts and records and to provide for financial reports.
The bill would require a development proponent for a de velopment funded by the agency pursuant to these provisions to require, in contracts with construction contractors, that certain w age and labor standards will be met, including a requirement that all construction w orkers be paid at least the general prevailing rate of wages, as specified. The bill would require a de velopment proponent to certify to the agenc y that those standards will be met in project construction. By e xpanding the crime of perjury, the bill would impose a state-mandated local program. 93 — 2 — SB 1105
The bill would also require prohibit the agency to enter from placing a measure on the ballot to r aise revenue for the a gency unless the agency has entered into a specific countywide project labor agreement with the San Diego County Building and Construction Trades Council and the San Diego Housing Federation before placing a measure on the ballot to raise revenue for the agency, Council, as specified.
The bill w ould include findings that changes proposed by this bill address a matter of state wide concern rather than a municipal af fair and, therefore, apply to all cities in the County of San Diego, including charter cities.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.
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 reimb urse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill w ould pro vide that with re gard 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: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Title 6.5 (commencing with Section 62800) is line 2 added to the Government Code, to read:
93 SB 1105 — 3 —
line 1 TITLE 6.5. SAN DIEGO REGIONAL EQUITABLE AND
line 2 ENVIRONMENTALLY FRIENDLY AFFORDABLE HOUSING
line 3 AGENCY
line 4
line 5 PART 1. FORMATION OF THE SAN DIEGO REGIONAL
line 6 EQUITABLE AND ENVIRONMENTALLY FRIENDLY
line 7 AFFORDABLE HOUSING AGENCY
line 8
line 9 Chapter 1. General Provisions
line 10
line 11 62800. This title shall be known, and may be cited, as the San line 12 Diego Regional Equitable and Environmentally Friendly Housing line 13 Act, or alternatively as the SD REEF Housing Act. line 14 62801. The Legislature finds and declares all of the following:
line 15 (a) San Diego County faces the most significant housing crisis line 16 in the region’s history, as tens of thousands of residents are facing line 17 insurmountable housing costs, being pushed out of their homes, line 18 spending hours dri ving e very day to and from w ork, are one line 19 paycheck away from an eviction, or experiencing homelessness. line 20 (b) San Diego County faces this crisis because, as a re gion, it line 21 has failed to produce enough housing at all income levels, preserve line 22 affordable housing, protect residents from displacement, pro vide line 23 adequate housing in close proximity to jobs and transit, and address line 24 the housing issue at a regional scale.
line 25 (c) The region is currently missing nearly 90,000 homes and line 26 needs another 90,000 homes to be built by 2030, just to keep pace line 27 with population growth. The region is on pace to b uild half that line 28 amount. The regional housing shortage is driving rents and home line 29 prices to record highs and puts an entire generation of San Diegans line 30 at risk of being left behind.
line 31 (d) The high cost of housing impacts all San Diegans, including, line 32 low-income residents, retirees li ving on a fix ed income, colle ge line 33 students, f amilies lock ed-out of homeo wnership, people line 34 experiencing homelessness, and businesses that struggle to attract line 35 and retain a diverse and skilled workforce due to the high cost of line 36 living.
line 37 (e) San Diegans are increasingly forced to mo ve further and line 38 further away, leading to worsening traffic, commute times, carbon line 39 pollution, and the acceleration of the climate emergency. 93 — 4 — SB 1105
line 1 (f) The impacts of housing crisis are disproportionately borne line 2 by people of color , including Black, Latino, Asian and P acific line 3 Islander Americans, and low-income residents.
line 4 (g) The housing crisis is fundamentally connected to the climate line 5 crisis. Building equitable, inclusive, and sustainable homes in the line 6 right places, near jobs, transit, and amenities is vital to protecting line 7 the climate and preserving open spaces and ecosystems. line 8 (h) The housing crisis is re gional in nature and e xisting line 9 municipality-specific programming would benefit from a regional line 10 strategy that could supplement local programming with additional line 11 supports and services.
line 12 (i) San Diego County faces housing needs at all income levels, line 13 but the shortf all is most acute among v ery lo w, lo w-, and line 14 moderate-income households, hereafter referred to as “equitable line 15 housing.”
line 16 (j) While the sixth cycle calls for regional production of 12,325 line 17 equitable housing units per year , actual re gional production has line 18 averaged just 1,655 equitable housing units per year over the fifth line 19 cycle.
line 20 (k) San Diego County faces an annual funding shortfall of over line 21 two billion dollars ($2,000,000,000) in its ef forts to address the line 22 affordable housing crisis.
line 23 (l) A multistakeholder countywide agency is necessary to help line 24 address the af fordable housing crisis in San Die go County by line 25 delivering resources and technical assistance at a re gional scale, line 26 including:
line 27 (1) Generating new dedicated regional funding for critical capital line 28 and other supports for af fordable housing de velopments across line 29 San Diego County.
line 30 (2) Providing staf f support to local jurisdictions that require line 31 capacity or technical assistance to e xpedite the preservation and line 32 production of housing.
line 33 (3) Funding renter protection programs and services that line 34 complement and augment the actions of local jurisdictions. line 35 (4) Assembling parcels, acquiring land, and supporting line 36 community land trusts for the purpose of b uilding af fordable line 37 housing.
line 38 (5) Monitoring and reporting on progress at a regional scale. line 39 62802. For purposes of this title:
93 SB 1105 — 5 —
line 1 (a) “Agency” means the San Die go Re gional Equitable and line 2 Environmentally Friendly Housing Agency established pursuant line 3 to Section 62810.
line 4 (b) “Board” or “SD REEF board” means the go verning board line 5 of the San Diego Regional Equitable and Environmentally Friendly line 6 Housing Agency.
line 7 (c) “Equitable housing” means housing that is restricted by line 8 recorded document to provide an affordable housing cost to very line 9 low, low-, or moderate-income households, at or belo w 120% of line 10 the area median income.
line 11 (d) “Extremely low income households” has the same meaning line 12 as the term as defined in Section 50106 of the Health and Safety line 13 Code.
line 14 (e) “First-time home buyer programs and opportunities” means line 15 programs that pro vide grants, loans, financial counseling and line 16 coaching, direct subsidy, development subsidy, or other forms of line 17 assistance that connect first-time home b uying households at or line 18 below 120 percent of the area median income with home ownership line 19 opportunities and meets all of the following requirements:
line 20 (1) Properties may include, but are not limited to, single-family line 21 residential, to wnhomes, twin and ro w homes, condos, co-ops, line 22 limited equity cooperatives, and community land trusts. line 23 (2) Participating purchasers shall occup y the property as their line 24 principal residence.
line 25 (3) Properties that recei ve a direct subsidy or de velopment line 26 subsidy, such as do wn payment or closing cost assistance, are line 27 subject to both of the following stipulations:
line 28 (A) A deed restriction or co venant running with the land in line 29 perpetuity shall include a resale restriction formula that limits line 30 future sales prices to no more than 10 percent annualized line 31 appreciation above the purchase price.
line 32 (B) Temporary subleases shall be prohibited, provided that the line 33 agency may make exceptions for military families. line 34 (4) All first-time home b uyer projects funded under this title line 35 shall achieve an income a verage across the project of not more line 36 than 120 percent of the area median income.
line 37 (f) “Lower income households” has the same meaning as that line 38 term is defined in Section 50079.5 of the Health and Safety Code. 93 — 6 — SB 1105
line 1 (g) “Low- or moderate-income households” means persons and line 2 families whose income does not e xceed 135 percent of the area line 3 median income.
line 4 (h) “San Die go County” means the entire area within the line 5 territorial boundary of the County of San Diego. line 6 (i) “SANDAG” means the San Die go Association of line 7 Governments.
line 8 (j) “Very low income households” has the same meaning as the line 9 term as defined in Section 50105 of the Health and Safety Code. line 10 62803. The Le gislature finds and declares that pro viding a line 11 regional financing mechanism for af fordable equitable housing line 12 development, preservation, and renter protections in San Die go line 13 County, as described in this section and Section 62801 is a matter line 14 of statewide concern and is not a municipal af fair as that term is line 15 used in Section 5 of Article XI of the California Constitution. line 16 Therefore, this title applies to all cities within San Diego County, line 17 including charter cities.
line 18
line 19 Chapter 2. The San Diego Regional Equitable and line 20 Environmentally Friendly Housing Agency and Governing line 21 Board
line 22
line 23 62810. (a) The San Die go Re gional Equitable and line 24 Environmentally Friendly Housing Agency is hereby established line 25 with jurisdiction extending throughout San Diego County. line 26 (b) The formation and jurisdictional boundaries of the agenc y line 27 are not subject to the Cortese-Knox-Hertzberg Local Government line 28 Reorganization Act of 2000 (Division 3 (commencing with Section line 29 56000) of Title 5).
line 30 (c) The purpose of the agenc y is to increase the supply of line 31 equitable and en vironmentally friendly housing in San Die go line 32 County by pro viding for significantly enhanced funding and line 33 technical assistance across the re gion for equitable and line 34 environmentally friendly housing acti vities that include ne w line 35 production, preserv ation, and rental protection. The agenc y’s line 36 housing activities shall be guided by all of the following principles:
line 37 (1) Supporting the broad range of housing needs that reflect the line 38 diversity of San Die go County, from e xtremely low income to line 39 workforce housing and middle-income housing, at or belo w 135 line 40 percent of the area median income.
93 SB 1105 — 7 —
line 1 (2) Advancing sustainability by supporting the production of line 2 equitable housing near transit, jobs, and amenities and including line 3 resilient and sustainable building design features. line 4 (3) Fostering livable and equitable communities that encourage line 5 mixed-uses, mix ed-income, w alkable, bik eable, age-friendly line 6 development patterns with proximity to transit, jobs, open spaces, line 7 schools and amenities.
line 8 (4) Advancing equity in the b uilt en vironment by fostering line 9 inclusion, diversity, and affirmatively furthering fair housing. line 10 (5) Supporting good jobs for working families with fair wages line 11 and strong worker protections.
line 12 (d) The agenc y shall complement and supplement e xisting line 13 efforts by cities, counties, districts, and other local, regional, and line 14 state entities, related to addressing the goals described in this title. line 15 62811. (a) The agenc y shall be go verned by a board of line 16 directors composed of six v oting members, who shall all be line 17 SANDAG primary or alternate members. Each member shall line 18 represent one subre gion for a total of six subre gions. The line 19 jurisdictions in each subre gion shall be consistent with Section line 20 132350.2 of the Public Utilities Code. The six members shall line 21 consist of the following:
line 22 (1) A primary and alternate member appointed by the Mayor line 23 of the City of San Diego, to represent the subregion of the City of line 24 San Diego.
line 25 (2) A primary and alternate member appointed by the San Diego line 26 County Board of Supervisors, to represent the subre gion of the line 27 County of San Diego.
line 28 (3) (A) A total of four members representing each of the four line 29 remaining subregions of east county, north county coastal, north line 30 county inland, and south county.
line 31 (B) For purposes of selecting the four members under this line 32 paragraph, each city within a subregion shall be entitled to vote to line 33 select a candidate for consideration and appointment. line 34 (b) Six alternate members may be chosen in the same manner line 35 as the six voting members selected pursuant to subdivision (a). line 36 (c) (1) The board may consist of the follo wing e x officio line 37 members if appropriate to roles and responsibilities of the board, line 38 as determined by the board:
line 39 (A) The SANDAG Board Chair, First Vice Chair, and Second line 40 Vice Chair.
93 — 8 — SB 1105
line 1 (B) Directors of housing authorities located within San Die go line 2 County.
line 3 (2) All ex officio members shall be nonvoting members. line 4 (d) (1) The governing body of each appointing entity shall make line 5 their appointments to the SD REEF board annually by January 10, line 6 and as necessary when vacancies occur. Each member agency shall line 7 confirm the appointment of its primary and alternate SD REEF line 8 board members by sending a written letter to the clerk of the board. line 9 Appointments shall go into effect immediately following approval line 10 by the member agency’s governing body.
line 11 (2) The SANDAG chair shall pro vide notice requesting that line 12 SANDAG board members from each of the subregions appoint an line 13 SD REEF board member or alternate, as authorized. Each line 14 subregion shall ensure that the clerk of the board is notified of the line 15 date, time, and location for that subre gion’s meeting. A majority line 16 of the primary members present at the subre gion meeting shall line 17 make a selection. An alternate member may v ote in the absence line 18 of the primary member. Appointments shall be made by January line 19 31 or as v acancies occur . Appointments shall go into ef fect line 20 immediately upon approval by the subregion.
line 21 (3) In addition to the v oting members, all e x officio line 22 organizations will make an annual appointment by January 31. If line 23 any organization with e x officio representation f ails to mak e an line 24 appointment, the current representati ve shall continue to serv e line 25 until a replacement appointment is made by their respecti ve line 26 organization.
line 27 (e) (1) The chair and vice chair shall be elected by the SD REEF line 28 board in February or as vacancies occur. The chair and vice chair line 29 can be primary or alternate members of the SAND AG board but line 30 must be primary members of the SD REEF board.
line 31 (2) The appointments shall go into effect immediately. line 32 (f) (1) SANDAG board alternates selected to chair the SD REEF line 33 board are strongly encouraged to attend all SAND AG board line 34 meetings, to represent SD REEF, and provide information to the line 35 SANDAG board concerning actions taken.
line 36 (2) If an or ganization with v oting rights or a subre gion is line 37 unrepresented at three committee meetings during the term, the line 38 chair or vice chair shall send a letter to the applicable appointing line 39 body or group.
93 SB 1105 — 9 —
line 1 (3) In order to ensure a quorum, full participation, fairness, and line 2 comprehensive kno wledge of the items discussed at meetings, line 3 members who are eligible for compensation for attendance shall line 4 be present for at least one-half of the time set for the meeting or line 5 the duration of the meeting, whichever is less, in order to be eligible line 6 for compensation under subdivision (g).
line 7 (g) Primary members of the board shall be compensated one line 8 hundred dollars ($100) per meeting, adjusted periodically as the line 9 board directs to keep pace with inflation. A member may waive a line 10 payment of per diem authorized by this subdivision. Out-of-state line 11 travel and conference tra vel shall be compensated by the board line 12 member’s home city or county.
line 13 (h) Parliamentary procedure at all meetings shall be go verned line 14 by Robert’s Rules of Order, Newly Revised.
line 15 (i) (1) A majority of the voting members constitute a quorum line 16 for the transaction of b usiness. In order to act on an y item, the line 17 affirmative v ote of the majority of the members of the board line 18 present is required. However, after a vote of the members is taken, line 19 a weighted v ote may be called by the members of an y tw o line 20 jurisdictions.
line 21 (2) For the weighted v ote, there shall be a total of 100 v otes. line 22 Each subregional representative shall have that number of v otes line 23 determined by the apportionment formula established by this line 24 paragraph, provided that each subregional representative shall have line 25 at least one v ote, no subre gional representative shall ha ve more line 26 than 50 votes, and there shall be no fractional votes. line 27 (A) If an y subre gion has 50 percent or more of the total line 28 population of the San Die go County re gion, 50 v otes shall be line 29 allocated to that subregion and subparagraph (B) shall apply. line 30 (B) Total the population of the remaining subregions determined line 31 in subparagraph (A) and compute the percentage of this total for line 32 each subregion. Each percentage deri ved above by 50 shall be line 33 multiplied to determine fractional shares and fractions that are less line 34 than one shall be boosted to one and the whole number. line 35 (i) If the calculation pursuant to this subparagraph is 50, all line 36 fractions shall be dropped and the whole numbers shall be the line 37 votes for each subregion.
line 38 (ii) If the calculation pursuant to this subparagraph is less than line 39 50, the remaining vote or votes shall be allocated one each to the 93 — 10 — SB 1105
line 1 subregion that has the highest fraction, excepting those whose vote line 2 was increased to one pursuant to this subparagraph. line 3 (iii) If the calculation pursuant to this subparagraph is more than line 4 50, the e xcess v ote or v otes shall be tak en one each from the line 5 subregion with the lo west fraction. In no case shall a v ote be line 6 reduced to less than one.
line 7 (C) If no subre gion has 50 percent or more of the total line 8 population of the San Die go County region, the total population line 9 of each subregion shall be calculated and the percentage that each line 10 subregion has of the total population of the San Die go County line 11 region. Fractions that are less than one shall be boosted to one and line 12 the whole number.
line 13 (i) If the calculation pursuant to this subparagraph is 100, all line 14 fractions shall be dropped and the whole numbers shall be the line 15 votes for each subregion.
line 16 (ii) If the calculation pursuant to this subparagraph is less than line 17 100, the remaining vote or votes shall be allocated one each to the line 18 subregion that has the highest fraction excepting those whose vote line 19 was increased to one pursuant to this subparagraph. line 20 (iii) If the calculation pursuant to this subparagraph is more than line 21 100, the e xcess vote or v otes shall be tak en one each from the line 22 subregion with the lo west fraction. In no case shall a v ote be line 23 reduced to less than one.
line 24 (3) When a weighted v ote is tak en on an y item that requires line 25 more than a majority v ote of the board, it shall also require the line 26 supermajority percentage of the weighted vote.
line 27 (4) Approval under the weighted v ote procedure requires the line 28 vote of not less than two members and not less than 51 percent of line 29 the total weighted vote to supersede the original action of the board. line 30 (5) For purposes of this subdi vision, the population of the line 31 subregion of the County of San Die go shall be the population in line 32 the unincorporated area of the county.
line 33 (6) The weighted vote formula established under this subdivision line 34 shall be recalculated on July 1 of each year.
line 35 (j) The agenc y shall be subject to the Ralph M. Bro wn Act line 36 (Chapter 9 (commencing with Section 54950) of Part 1 of Division line 37 2 of Title 5), the California Public Records Act (Di vision 10 line 38 (commencing with Section 7920.000) of Title 1), and the Political line 39 Reform Act of 1974 (Title 9 (commencing with Section 81000)). 93 SB 1105 — 11 —
line 1 62811.1. Every member of the board shall be subject to Article line 2 2 (commencing with Section 87200) of Chapter 7 of Title 9. line 3 62811.2. (a) Except as pro vided in subdi vision (b) and (c), line 4 each member of the board shall serve a term of four years or until line 5 a successor is appointed and qualified. A member may be removed line 6 at the pleasure of the appointing entities described in subdivision line 7 (a) of Section 68211.
line 8 (b) The membership of any member serving on the agenc y as line 9 a result of holding another public office shall terminate when the line 10 member ceases holding the other public office.
line 11 (c) The initial four-year term for one or more of the members line 12 may be shortened for the purpose of ensuring that the members line 13 will serve staggered terms.
line 14 62811.3. (a) The board may appoint a chief executive officer, line 15 general counsel, board secretary, or any other officers as deemed line 16 necessary who shall act for the agenc y under its direction and line 17 perform those duties delegated by the board. If the agency reaches line 18 an agreement with SANDAG to utilize its staff pursuant to Section line 19 62813, appointments shall be made from existing SANDAG staff. line 20 (b) Any officers may be appointed to a renewable term of four line 21 years and shall be removed from office only upon the occurrence line 22 of one or both of the following:
line 23 (1) A two-thirds majority of the members of the agency board line 24 votes for removal.
line 25 (2) The board determines that the officer violates a federal or line 26 state law, regulation, local ordinance, or policy or practice of the line 27 agency, relative to ethical practices, including, but not limited to, line 28 the acceptance of gifts, or contributions.
line 29 62811.4. (a) The board shall appoint an inspector general to line 30 a renewable term of office of four years. The inspector general line 31 may be removed from office by a two-thirds vote of the members line 32 of the board if the board determines that the inspector general line 33 violates a federal or state law or regulation, a local ordinance, or line 34 a policy or practice of the agenc y, relative to ethical practices, line 35 including, but not limited to, acceptance of gifts, or contributions. line 36 (b) The inspector general shall, at a noticed public hearing of line 37 the agency, report quarterly on the impact or cost-effectiveness of line 38 investments and projects, and on e xpenditures of the agenc y for line 39 travel, meals and refreshments, and an y other e xpenditures line 40 specified by the agency.
93 — 12 — SB 1105
line 1 62812. (a) The agenc y may determine its or ganizational line 2 structure, which may include, b ut is not limited to, the line 3 establishment of departments, divisions, subsidiary units, or similar line 4 entities. Any department, division, subsidiary unit, or similar entity line 5 established by the agency shall be referred to in this chapter as an line 6 “organizational unit.”
line 7 (b) The board may dele gate to an or ganizational unit or to its line 8 officers any powers and duties it deems appropriate. Po wers and line 9 duties that may be delegated to an organizational unit include, but line 10 are not limited to, the following:
line 11 (1) Approval of contracts up to authority limits established by line 12 the board, except that final approval of labor contracts shall require line 13 board approval.
line 14 (2) Hearing and resolving bid protests.
line 15 (c) Notwithstanding the above, if the agency reaches agreement line 16 with SANDAG to utilize its staf f pursuant to Section 62813, the line 17 agency shall utilize the policies established by SAND AG for its line 18 operations.
line 19 62812.5. The agency shall be deemed a local public entity, as line 20 defined in Section 50079 of the Health and Safety Code, for the line 21 purposes of receiving notice of the disposing of surplus land by a line 22 local agenc y, pursuant to paragraph (1) of subdi vision (a) of line 23 Section 54222.
line 24 62813. The members of the board shall be appointed by April line 25 1, 2023. The agenc y shall ha ve no po wers, duties, or line 26 responsibilities until all board members are appointed and one of line 27 the following occurs:
line 28 (a) The agenc y receives dedicated funding from the state or line 29 local agencies.
line 30 (b) The agency reaches an agreement with SANDAG to utilize line 31 their staff with the understanding that additional staff with expertise line 32 in affordable housing finance will be needed to administer the line 33 funding authorized in this chapter.
line 34 (c) Voters approve a measure for the agency to generate revenue line 35 pursuant to this title.
line 36 62814. A member of the board shall e xercise independent line 37 judgment on behalf of the interests of the residents, the property line 38 owners, and the public of San Diego County in furthering the intent line 39 and purposes of this title.
93 SB 1105 — 13 —
line 1 62815. (a) The board shall hold its first meeting at a time and line 2 place within San Diego County fixed by the chair of the board. line 3 (b) After the first meeting described in subdivision (a), the board line 4 shall hold meetings at times and places determined by the board. line 5 62816. (a) The board may mak e and enforce rules and line 6 regulations necessary for governing the board, the preservation of line 7 order, and the transaction of business.
line 8 (b) In exercising the powers and duties conferred on the agency line 9 by this title, the board may act by ordinance, resolution, or minute line 10 action.
line 11 62817. (a) The board shall form an advisory committee that line 12 adheres to the guiding principles of ensuring that the re gion line 13 produce enough equitable and environmentally friendly housing, line 14 while preserving equitable housing, and pro viding rental line 15 protections. The committee shall be composed of up to 18 voting line 16 members with knowledge and experience in the areas of affordable line 17 housing finance and de velopment, or housing preserv ation, or line 18 rental protections. The advisory committee shall meet as necessary line 19 and provide substantial assistance and feedback in the development line 20 of the annual expenditure plan, performance monitoring, and the line 21 overall implementation of agenc y programs. The advisory line 22 committee shall report directly to the board and the public. line 23 Consistent with the pro visions of this chapter , the advisory line 24 committee shall provide consultation and make recommendations line 25 to the board. The advisory committee shall meet as often as is line 26 necessary to fulfill its roles and responsibilities. The board may line 27 add additional seats to the advisory committee at its discretion. line 28 (b) Committee members shall carry out the responsibilities laid line 29 out in this section and play a valuable and constructive role in the line 30 ongoing improvement and enhancement of the agency. Committee line 31 members shall offer their unique knowledge and experience in the line 32 areas of af fordable housing finance and de velopment, rental line 33 protection, and housing preserv ation. The committee members line 34 shall meet both of the following requirements:
line 35 (1) Reside in San Diego County.
line 36 (2) Be subject to conflict-of-interest provisions. line 37 (c) A person may apply to the Office of the Inspector General line 38 or an y SD REEF board member to become a member of the line 39 committee. The board shall select the members of the committee line 40 every two years, at a date set with 90 days’ notice by the chair of 93 — 14 — SB 1105
line 1 the board. The committee seats shall be flexible with preferences line 2 for each of the following professions or areas of expertise:
line 3 (1) A fle xible seat for a person with rele vant e xperience in line 4 housing.
line 5 (2) A person with e xperience in senior-level decision making line 6 in affordable housing development, preservation, and operations line 7 and with a minimum of fiv e years of rele vant experience in that line 8 field.
line 9 (3) A person with e xperience in housing finance and with a line 10 minimum of five years of experience in that field. line 11 (4) A person with experience in labor organizing or advocacy line 12 with a minimum of five years of experience in that field. line 13 (5) A person with e xperience in en vironmental sustainability line 14 including organizing, advocacy, or policymaking with a minimum line 15 of five years of experience in that field.
line 16 (6) A person with experience in the housing challenges facing line 17 older adults or people with disabilities and with a minimum of five line 18 years of experience in that field.
line 19 (7) A person with experience in the housing challenges facing line 20 workforce and middle-income households with a minimum of five line 21 years of experience in that field.
line 22 (8) A person with experience in the housing challenges facing line 23 communities of color or cultural communities with a minimum of line 24 five years of experience in that field.
line 25 (9) A person with e xperience as a le gal expert advancing or line 26 enforcing fair housing policies on behalf of a community-based line 27 organization and with a minimum of fiv e years of e xperience in line 28 that field.
line 29 (10) A person with experience in academic research, think tanks, line 30 or policymaking with a focus on housing policy and practice and line 31 a minimum of 10 years of experience in that field. line 32 (11) A person with li ved e xperience as a lo w- or line 33 moderate-income tenant, with a minimum of five years in the field, line 34 or experiencing homelessness, with a minimum of fiv e years in line 35 the field.
line 36 (12) A young person between 18 and 24 years of age with line 37 demonstrated lived experience of homelessness, or lived experience line 38 as a low- or moderate-income tenant, or demonstrated experience line 39 as an organizer or advocate around housing affordability challenges line 40 with community-based organizations.
93 SB 1105 — 15 —
line 1 (13) A person with rele vant experience in the intersection of line 2 housing and education issues, with a minimum of fiv e years of line 3 experience in that field.
line 4 (14) Two people with relevant experience in the intersection of line 5 housing and health issues, with a minimum of fiv e years of line 6 experience in that field.
line 7 (15) A person with rele vant e xperience as a local emplo yer line 8 facing w orkforce housing challenges, with a minimum of fiv e line 9 years of experience in that field.
line 10 (16) A person with rele vant e xperience as a pri vate sector line 11 mixed-income housing developer, with a minimum of fiv e years line 12 of experience in that field.
line 13 (17) A person o ver the age of 55 with demonstrated li ved line 14 experience of the housing challenges facing older adults. line 15 (d) A committee member may be removed from their position line 16 by the inspector general or if a majority of the committee members line 17 votes for remo val upon finding that the committee member has line 18 violated a federal or state la w, a regulation, a local ordinance, or line 19 a policy or practice of the agency, relative to ethical practices. line 20 62818.1. (a) The members of the advisory committee shall be line 21 subject to the agency’s conflict-of-interest policies. The members line 22 shall ha ve no le gal action pending ag ainst the agenc y and are line 23 prohibited from acting in an y commercial acti vity directly or line 24 indirectly involving the agency, such as being a consultant to the line 25 agency or to an y party with pending le gal actions ag ainst the line 26 agency during their committee tenure.
line 27 (b) The committee members shall receive a reasonable stipend line 28 as compensation, which shall be set by the Office of the Inspector line 29 General and shall be subject to board appro val. A member may line 30 choose to waive this stipend in its entirety . Each member of the line 31 committee shall serv e for a term of three years, and until a line 32 successor is appointed, e xcept that initial appointments may be line 33 staggered with terms of tw o years as proposed by the inspector line 34 general.
line 35 (c) A committee member shall serve no more than three terms line 36 on the committee.
line 37 (d) Any member may, at any time, resign from the committee line 38 upon written notice delivered to the agency. Change of residence line 39 to outside San Diego County shall constitute a member’s automatic line 40 resignation.
93 — 16 — SB 1105
line 1 (e) The members shall elect a chair and vice chair at the first line 2 meeting of the advisory committee. The chair and vice chair shall line 3 each serve a renewable one-year term for as long as the chair or line 4 vice chair is eligible to serve on the committee. line 5 62818.2. (a) The advisory committee shall meet as necessary line 6 to fulfill their roles and responsibilities.
line 7 (b) The agency, led by the Office of the Inspector General and line 8 in partnership with the advisory committee, shall conduct a biennial line 9 performance re view of all projects and programs implemented line 10 under the expenditure plan. The review shall evaluate project and line 11 program performance, outcome metrics, and mak e line 12 recommendations to improve plan performance, based on current line 13 practices and best practices, and organizational changes that could line 14 improve coordination.
line 15 62819. The agenc y shall eng age in public participation line 16 processes, which shall include the following:
line 17 (a) Outreach efforts to encourage the acti ve participation of a line 18 broad range of stak eholder groups in the planning process, line 19 including, but not limited to, affordable housing and homelessness line 20 advocates, labor representati ves, en vironmental stak eholders, line 21 nonprofit de velopers, neighborhood and community groups, line 22 environmental adv ocates, equity or ganizations, home b uilder line 23 representatives, and business organizations.
line 24 (b) The agency shall require proactive community engagement line 25 related to an y project or de velopment funded by the agenc y, in line 26 advance of any public meeting or notice of impending action. The line 27 agency shall give public notice, through posting on the internet, line 28 for the final adoption of the annual funding plan. The board may line 29 choose to hold a public meeting to discuss a project or development line 30 when appropriate.
line 31 (c) A process for enabling members of the public to provide an line 32 annual written request to recei ve agenc y notices, information, line 33 updates, reports, and performance data.
line 34
line 35 Chapter 3. Powers of the San Diego Regional Equitable line 36 and Environmentally Friendly Housing Agency
line 37
line 38 62820. In implementing this title, the agency may do all of the line 39 following:
93 SB 1105 — 17 —
line 1 (a) Place on the ballot in San Die go County, including all its line 2 incorporated cities funding measures, in accordance with applicable line 3 constitutional and statutory requirements, to raise and allocate line 4 funds to the County of San Diego, the cities in San Diego County, line 5 and other public agencies and equitable housing projects within line 6 its jurisdiction for purposes of producing and preserving equitable line 7 and en vironmentally friendly housing and supporting rental line 8 protection activities.
line 9 (b) Apply for and receive grants from federal and state agencies. line 10 (c) Incur and issue indebtedness and assess fees on the purchaser line 11 of any debt issuance and agenc y loan products for rein vestment line 12 of those fees and loan repayments in affordable housing production line 13 and preserv ation in accordance with applicable constitutional line 14 requirements.
line 15 (d) Incur debt, issue bonds, and otherwise incur liabilities or line 16 obligations in accordance with Article 3 (commencing with Section line 17 62870) of Chapter 2 of Part 2, and in accordance with applicable line 18 constitutional requirements.
line 19 (e) Solicit and accept gifts, fees, grants, and other allocations line 20 from public and private entities.
line 21 (f) Deposit or invest moneys of the agency in banks or financial line 22 institutions in the state.
line 23 (g) Sue and be sued, e xcept as otherwise pro vided by la w, in line 24 all actions and proceedings, in all courts and tribunals of competent line 25 jurisdiction.
line 26 (h) Engage counsel and other professional services. line 27 (i) Enter into and perform all necessary contracts. line 28 (j) Enter into joint po wers agreements pursuant to the Joint line 29 Exercise of Po wers Act (Chapter 5 (commencing with Section line 30 6500) of Division 7 of Title 1).
line 31 (k) Hire staff, define their qualifications and duties, and provide line 32 a schedule of compensation for the performance of their duties. line 33 (l) Utilize SANDAG staff if agreed upon by SANDAG. line 34 (m) Assemble parcels and lease, purchase, or otherwise acquire line 35 land for housing development.
line 36 (n) Sell or dispose of land or assets or enter into ground lease line 37 agreements, consistent with the agenc y’s purpose and eligible line 38 activities or where a parcel under the agency’s control is deemed line 39 to be inappropriate for housing development.
93 — 18 — SB 1105
line 1 (o) Collect data on housing production and monitor progress line 2 on meeting regional and state housing goals.
line 3 (p) Provide public information about the agenc y’s housing line 4 programs and policies.
line 5 (q) Allocate and deploy capital and generated fees, revenue, or line 6 income in the form of grants, loans, equity, interest rate subsidies, line 7 credit enhancements, loan guarantees, and other financing tools line 8 to San Die go County, cities within San Die go County, public line 9 agencies within San Die go County , and to equitable housing line 10 projects to support the production and preserv ation of equitable line 11 and en vironmentally friendly housing, and rental protection line 12 programs, in accordance with applicable constitutional and line 13 statutory requirements.
line 14 (r) Establish and modify the terms of potential capital line 15 investments deplo yed by the agenc y, including w aiving or line 16 forgiving interest or principal payments.
line 17 (s) Collect data on housing production and monitor progress on line 18 meeting regional and state housing goals.
line 19 (t)
line 20 (s) Provide support and technical assistance to local governments line 21 in relation to producing and preserving equitable housing and line 22 providing rental protections.
line 23 (u)
line 24 (t) Provide the public with information about the agenc y’s line 25 housing programs and policies.
line 26 (v)
line 27 (u) Act in compliance with the Marks-Roos Local Bond Pooling line 28 Act of 1985 (Article 4 (commencing with Section 6584) of Chapter line 29 5 of Division 7 of Title 1). The agency shall be deemed a “local line 30 agency” for purposes of the Marks-Roos Local Bond Pooling Act line 31 of 1985.
line 32 (w)
line 33 (v) Any other express or implied powers necessary to carry out line 34 the intent and purposes of this title.
line 35 62821. (a) If the agency or a qualified voter initiative proposes line 36 a measure pursuant to subdi vision (a) of Section 62820 that will line 37 generate revenues, the San Die go County Board of Supervisors line 38 shall call a special election on the measure. The special election line 39 shall be consolidated with a state wide election and the measure line 40 shall be submitted to the voters of San Diego County. 93 SB 1105 — 19 —
line 1 (b) (1) For the purpose of placement of a measure on the ballot, line 2 the agency is a district, as defined in Section 317 of the Elections line 3 Code. Except as otherwise pro vided in this section, a measure line 4 proposed by the agency or a qualified voter initiative that requires line 5 voter appro val shall be submitted to the v oters of San Die go line 6 County, as determined by the agenc y, in accordance with the line 7 provisions of the Elections Code applicable to districts, including line 8 the provisions of Chapter 4 (commencing with Section 9300) of line 9 Division 9 of the Elections Code.
line 10 (2) Because the agency has no revenues as of the operative date line 11 of this section, the appropriations limit for the agenc y shall be line 12 originally established based on receipts from the initial measure line 13 that would generate revenues for the agency pursuant to subdivision line 14 (a), and that establishment of an appropriations limit shall not be line 15 deemed a change in an appropriations limit for purposes of Section line 16 4 of Article XIII B of the California Constitution. line 17 (c) (1) Notwithstanding Section 10520 of the Elections Code, line 18 for any election at which the agency or a qualified voter initiative line 19 proposes a measure pursuant to subdivision (a) of Section 62820 line 20 that w ould generate re venues, the agenc y shall reimb urse the line 21 County of San Die go for the incremental costs incurred by the line 22 county elections official related to submitting the measure to the line 23 voters with any eligible funds transferred to the agency. line 24 (2) For purposes of this subdivision, “incremental costs” include line 25 all of the following:
line 26 (A) The cost to prepare, review, and revise the impartial analysis line 27 of the measure.
line 28 (B) The cost to prepare a translation of ballot materials into a line 29 language other than English by the county.
line 30 (C) The additional costs that exceed the costs incurred for other line 31 election races or ballot measures, if an y, appearing on the same line 32 ballot in San Diego County, including both of the following:
line 33 (i) The printing and mailing of ballot materials. line 34 (ii) The canvass of the vote regarding the measure pursuant to line 35 Division 15 (commencing with Section 15000) of the Elections line 36 Code.
line 37 (d) Notwithstanding Section 9313 of the Elections Code, the line 38 legal counsel for the board shall prepare an impartial analysis of line 39 the measure. The impartial analysis prepared by the legal counsel 93 — 20 — SB 1105
line 1 for the board shall be subject to review and revision by the county line 2 counsel.
line 3 (e) The summary of the annual e xpenditure plan shall be line 4 prepared by the board and include all of the following:
line 5 (1) A description of the purpose and goals of the measure. line 6 (2) A description of the cate gories of eligible e xpenditures to line 7 be funded.
line 8 (3) An estimate of the number of equitable and environmentally line 9 friendly housing units to be built or preserved by household income line 10 category served, and a description of any specific projects planned line 11 to be funded.
line 12 (4) An estimate of minimum funding le vels to be pro vided to line 13 different expenditure categories.
line 14 (5) An overview of decisionmaking and o versight provisions line 15 applicable to the funds.
line 16 (f) The county elections official for San Die go County shall line 17 serve as the elections official of the agenc y for purposes of line 18 administering the ballot measure process and any election for the line 19 purposes set forth in this chapter. In the alternative, the board, at line 20 its discretion, may appoint an elections official to administer any line 21 election for the purposes set forth in this chapter . If the board line 22 appoints an elections official, the board may authorize that elections line 23 official to retain the services of the elections official of San Diego line 24 County to administer the ballot measure process and any election, line 25 and the elections official of San Diego County shall perform those line 26 services.
line 27 62822. The board and the agenc y shall not do either of the line 28 following:
line 29 (a) Regulate or enforce local land use decisions. line 30 (b) Acquire property by eminent domain.
line 31
line 32 Chapter 4. Financial Provisions and Performance line 33 Review
line 34
line 35 62830. The board shall provide for regular financial audits of line 36 the agency’s accounts and records, and, shall maintain accounting line 37 records, and shall report accounting transactions in accordance line 38 with generally accepted accounting principles adopted by the line 39 Governmental Accounting Standards Board of the Financial line 40 Accounting Foundation for both public reporting purposes and for 93 SB 1105 — 21 —
line 1 reporting of activities to the Controller . The board shall pro vide line 2 for regular performance and impact audits of the agency’s account line 3 and records.
line 4 62831. The board shall pro vide for annual financial and line 5 performance reports with significant input from the inspector line 6 general and the advisory committee. The board shall make copies line 7 of the annual financial report and annual performance reports line 8 available to the public.
line 9
line 10 PART 2. ACTIVITIES OF THE SAN DIEGO REGIONAL
line 11 EQUITABLE AND ENVIRONMENTALLY FRIENDLY
line 12 AFFORDABLE HOUSING AGENCY
line 13
line 14 Chapter 1. General Provisions
line 15
line 16 62850. (a) The agenc y, either directly or through qualified line 17 voter initiati ve, may raise and allocate ne w re gional housing line 18 revenue through all of the following funding mechanisms:
line 19 (1) Special tax es, subject to v oter appro val, as pro vided in line 20 Article 1 (commencing with Section 62851) of Chapter 2, as line 21 follows:
line 22 (A) A parcel tax, as provided in Section 62851. line 23 (B) A gross receipts business license tax, as provided in Section line 24 62852.
line 25 (C) A special business tax, as provided in Section 62653. line 26 (D) A special tax on vacant real property, as provided in Section line 27 62854.
line 28 (E) A special tax on real property, as provided in Section 62856. line 29 (F) A commercial linkage fee, as pro vided in Article 2 line 30 (commencing with Section 62860) of Chapter 2.
line 31 (2) The issuance of bonds, including, but not limited to, general line 32 obligation bonds, re venue bonds, mortg age revenue bonds, and line 33 private activity bonds as provided in Article 3 (commencing with line 34 Section 62870) of Chapter 2, in accordance with applicable line 35 constitutional requirements.
line 36 (b) One or more local jurisdictions, including the County of San line 37 Diego, may either directly or through qualified v oter initiative, line 38 raise and allocate ne w re gional housing re venue through a line 39 documentary transfer tax, as provided in Section 62855. 93 — 22 — SB 1105
line 1 (c) Except as otherwise provided in this subdivision, all regional line 2 housing revenue mechanisms may be applicable to the entirety of, line 3 or a portion of, San Diego County.
line 4 (1) The portion of the area of the region to which each funding line 5 mechanism would apply shall be determined by the board, or by line 6 the qualified v oter initiati ve, before the electors v ote on the line 7 measure. If the portion of the region is determined by the agency, line 8 then the agenc y shall pro vide written notification to each line 9 jurisdiction and tribal nation within the applicable portion. Each line 10 jurisdiction and tribal nation may opt out of the revenue measure line 11 by submitting a resolution to the agenc y within 60 days of the line 12 notice.
line 13 (2) The incorporated area of each city shall be either wholly line 14 included within that portion or wholly excluded from that portion. line 15 (3) The entire unincorporated area of the County of San Diego line 16 shall either be wholly included within that portion or wholly line 17 excluded from that portion. with the e xception of tribal nations. line 18 Each tribal nation may opt out of a revenue measure, as described line 19 in paragraph (1).
line 20 (4) For each regional housing revenue mechanism, the portion line 21 of the region that the revenue mechanism applies shall match the line 22 portion of the region to which funds are eligible to be deployed. line 23 (5) If the revenue mechanism is applicable to a portion of the line 24 region, then only the v oters within that portion shall v ote on the line 25 measure.
line 26 (d) Notwithstanding subparagraph (c), in the event that one or line 27 more local jurisdictions or tribal nations enact housing re venue line 28 mechanisms that apply to one or more local jurisdictions or tribal line 29 nations, the agency may enter into an agreement to administer such line 30 funds on behalf of the local jurisdictions.
line 31
line 32 Chapter 2. Revenue
line 33
line 34 Article 1. Special Taxes
line 35
line 36 62851. (a) Subject to Section 4 of Article XIII A of the line 37 California Constitution, qualified v oter initiative, or approval by line 38 the board, the agency may impose, by resolution or by ordinance, line 39 a parcel tax within San Diego County pursuant to the procedures line 40 established in Article 3.5 (commencing with Section 50075) of 93 SB 1105 — 23 —
line 1 Chapter 1 of P art 1 of Di vision 1 of Title 5, Section 62821, and line 2 any other procedures applicable by law.
line 3 (b) For purposes of this section, “parcel tax” means a special line 4 tax imposed upon a parcel of real property at a rate that is line 5 determined without re gard to that property’ s assessed v alue and line 6 that applies to all taxpayers or all real property within the line 7 jurisdiction of the local government. “Parcel tax” does not include line 8 a tax imposed on a particular class of property or taxpayers. line 9 (c) The agency shall provide notice of any parcel tax imposed line 10 pursuant to this section in the manner specified in Section 54930. line 11 (d) Thereafter, the tax shall be collected at the same time, and line 12 in the same manner , as the ad v alorem tax es on real property line 13 authorized by Section 1 of Article XIII A of the California line 14 Constitution are collected, and shall be subject to the same penalties line 15 and interest and to the same procedure for foreclosure and sale in line 16 case of delinquency as provided for those taxes. All laws applicable line 17 to the levy, collection, and enforcement of the ad v alorem taxes line 18 on real property authorized by Section 1 of Article XIII A of the line 19 California Constitution are hereby made applicable to the tax es line 20 imposed under this section.
line 21 62852. (a) (1) The agency may impose, subject to appro val line 22 by the board by resolution or by ordinance before the agency takes line 23 action to appro ve the placement of a measure on the ballot, or line 24 action of the elections official, including by qualified v oter line 25 initiative, a special tax, measured by gross receipts, for the privilege line 26 of engaging in any kind of lawful business transacted in San Diego line 27 County pursuant to the procedures established in Article 3.5 line 28 (commencing with Section 50075) of Chapter 1 of P art 1 of line 29 Division 1 of Title 5, Section 62821, and an y other applicable line 30 procedures provided by law.
line 31 (2) The resolution imposing a special tax pursuant to this line 32 subdivision may provide for the following:
line 33 (A) Variable rates based on the business sector of each person line 34 subject to the tax.
line 35 (B) Exemptions for small businesses.
line 36 (C) Collection of the tax by suit or otherwise. line 37 (D) Any other details the agency may establish that are within line 38 the scope of a charter city’s power.
line 39 (b) If the agency levies a special tax pursuant to subdivision (a) line 40 upon a b usiness operating both within and outside the agenc y’s 93 — 24 — SB 1105
line 1 taxing jurisdiction, the agency shall levy the tax so that the measure line 2 of tax fairly reflects that proportion of the tax ed activity actually line 3 carried on within the taxing jurisdiction.
line 4 (c) A special tax le vied pursuant to subdi vision (a) shall not line 5 apply to any nonprofit organization that is e xempted from taxes line 6 by Chapter 4 (commencing with Section 23701) of P art 11 of line 7 Division 2 of the Re venue and Taxation Code or Subchapter F line 8 (commencing with Section 501) of Chapter 1 of Subtitle A of the line 9 Internal Revenue Code of 1986, or the successor of either , or to line 10 any minister, clergyman, Christian Science practitioner, rabbi, or line 11 leader of an y religious or ganization that has been granted an line 12 exemption from federal income tax by the United States line 13 Commissioner of Internal Re venue as an or ganization described line 14 in Section 501(c)(3) of the Internal Revenue Code or a successor line 15 to that section.
line 16 (d) Taxes levied pursuant to this section shall be collected in line 17 the following manner:
line 18 (1) The local jurisdiction or the county tax collector shall be line 19 responsible for collecting the tax revenue. Local jurisdictions can line 20 recover their administrative costs by charging a fee to the agency. line 21 (2) The local jurisdiction or the county shall create policies and line 22 procedures necessary to collect tax re venue, including, b ut not line 23 limited to, policies that achieve both of the following:
line 24 (A) Ensure adequate enforcement of the tax es levied pursuant line 25 to this section.
line 26 (B) Provide subjects of a tax with an opportunity to appeal. line 27 62853. (a) (1) The agenc y may impose, either directly or line 28 through qualified v oter initiative, a special tax measured by the line 29 number of employees employed by the taxpayer for the privilege line 30 of engaging in any kind of la wful business activity transacted in line 31 San Diego County pursuant to the procedures established in Article line 32 3.5 (commencing with Section 50075) of Chapter 1 of P art 1 of line 33 Division 1 of Title 5, Section 62821, and an y other applicable line 34 procedures provided by law.
line 35 (2) The resolution imposing a special tax pursuant to this line 36 subdivision may pro vide for collection of the tax by suit or line 37 otherwise.
line 38 (b) If the agency levies a special tax pursuant to subdivision (a) line 39 upon a b usiness operating both within and outside the agenc y’s line 40 taxing jurisdiction, the agency shall levy the tax so that the measure 93 SB 1105 — 25 —
line 1 of tax fairly reflects that proportion of the tax ed activity actually line 2 carried on within the taxing jurisdiction.
line 3 (c) A special tax le vied pursuant to subdi vision (a) shall not line 4 apply to any nonprofit organization that is e xempted from taxes line 5 by Chapter 4 (commencing with Section 23701) of P art 11 of line 6 Division 2 of the Re venue and Taxation Code or Subchapter F line 7 (commencing with Section 501) of Chapter 1 of Subtitle A of the line 8 Internal Revenue Code of 1986, or the successor of either , or to line 9 any minister, clergyman, Christian Science practitioner, rabbi, or line 10 leader of an y religious or ganization that has been granted an line 11 exemption from federal income tax by the United States line 12 Commissioner of Internal Re venue as an or ganization described line 13 in Section 501(c)(3) of the Internal Revenue Code or a successor line 14 to that section.
line 15 (d) Taxes le vied pursuant to this section shall be collected line 16 consistent with subdivision (d) of Section 65852. line 17 62854. (a) Subject to Section 4 of Article XIII A of the line 18 California Constitution, the agency may impose, either directly or line 19 through qualified v oter initiati ve, a special tax on v acant real line 20 property that is v acant for a substantial portion of the calendar line 21 year. The tax rate shall not e xceed six thousand dollars ($6,000) line 22 annually for v acant residential, nonresidential, and unde veloped line 23 properties with annual inflation adjustments with the consumer line 24 price index.
line 25 (b) For the purposes of this section, a parcel of real property line 26 shall be deemed “v acant” and subject to the tax imposed if the line 27 parcel is not in use for a substantial portion of the calendar year . line 28 A property shall not be deemed v acant if it is in use at least 50 line 29 days during a calendar year.
line 30 (c) The agenc y, either directly or through qualified v oter line 31 initiative, may create categorical exemptions that include, but are line 32 not limited to, the following:
line 33 (1) An owner who qualifies as “very low income,” as that term line 34 is defined by the United States Department of Housing and Urban line 35 Development.
line 36 (2) An owner for whom the payment of the tax imposed would line 37 be a financial hardship due to specific factual circumstances. line 38 (3) An o wner whose property is v acant as a result of a line 39 demonstrable hardship that is unrelated to the o wner’s personal line 40 finances.
93 — 26 — SB 1105
line 1 (4) An owner who can demonstrate that e xceptional specific line 2 circumstances prevent the use or development of the property. line 3 (5) An owner of a property that is under active construction. To line 4 qualify for this exemption, an owner must call for inspections of line 5 the construction with sufficient frequenc y to k eep the b uilding line 6 permit or permits active.
line 7 (6) An owner of property for which an acti ve building permit line 8 application is being processed by a local jurisdiction. line 9 (7) An owner who is 65 years of age or older and who qualifies line 10 as “lo w income,” as that term is defined by the United States line 11 Department of Housing and Urban Development.
line 12 (8) An owner who, re gardless of age, recei ves Supplemental line 13 Security Income for a disability or Social Security Disability line 14 Insurance benefits, and whose yearly income does not exceed 250 line 15 percent of the 2012 federal poverty guidelines issued by the United line 16 States Department of Health and Human Services. line 17 (9) An owner that is a nonprofit or ganization or entity o wned line 18 or controlled by a nonprofit organization.
line 19 (10) An owner of a parcel included in a substantially complete line 20 application for planning appro vals that has not yet recei ved line 21 approval. An o wner of a parcel for which a project with line 22 development entitlements has been approved but needing time for line 23 completion may apply for and receive an administrative two-year line 24 exemption.
line 25 (11) Properties located in en vironmentally sensiti ve areas line 26 including, but not limited to, open space, parks or preserv es, and line 27 undevelopable natural areas.
line 28 (d) The San Die go County Treasurer-Tax Collector shall line 29 establish a methodology for determining and identifying the use line 30 and vacancy status of each parcel of real property in the County line 31 of San Diego.
line 32 (e) The San Die go County Treasurer-Tax Collector shall line 33 establish the procedures and guidelines for o wners to apply for , line 34 and grant, the exemptions identified in this section. Owners who line 35 claim an e xemption may be required to submit information line 36 annually to substantiate their continuing qualification for the line 37 exemption.
line 38 (f) Revenues collected by the San Diego County Treasurer-Tax line 39 Collector shall be remitted to the agenc y to serv e as program line 40 revenue.
93 SB 1105 — 27 —
line 1 62855. (a) Subject to Section 4 of Article XIII A of the line 2 California Constitution, one or more local jurisdictions within the line 3 County of San Die go, including the County of San Die go, may line 4 impose by resolution or by ordinance before the local jurisdictions line 5 take action to approve the placement of a measure on the ballot or line 6 by action of the elections official, including by a qualified v oter line 7 initiative, a special documentary transfer tax pursuant to P art 6.7 line 8 (commencing with Section 11901) of Di vision 2 of the Re venue line 9 and Taxation Code pro vided, ho wever, that the tax shall be in line 10 addition to any city or county tax under that section and not subject line 11 to the limits pro vided in Section 11911 of the Re venue and line 12 Taxation Code.
line 13 (b) A special documentary tax may be applicable to the entirety line 14 of, or any portion of, San Diego County.
line 15 (1) The portion of the area of the region to which the tax would line 16 apply shall be determined by the local jurisdictions, including the line 17 County of San Die go, or by the qualified v oter initiative, before line 18 the electors v ote on the measure. If the portion of the re gion is line 19 determined by the County of San Die go, then the county shall line 20 provide written notification to each jurisdiction and tribal nation line 21 within the applicable portion. Each jurisdiction and tribal nation line 22 may opt out of the tax measure by submitting a resolution to the line 23 County of San Diego within 60 days of the notice. line 24 (2) The incorporated area of each city shall be either wholly line 25 included within that portion or wholly excluded from that portion. line 26 (3) The entire unincorporated area of the County of San Diego line 27 shall either be wholly included within that portion or wholly line 28 excluded from that portion with the e xception of tribal nations, line 29 provided, however, that each tribal nation may opt out of a revenue line 30 measure as described in paragraph (1) of subdivision (c) of Section line 31 62850.
line 32 (4) If the tax is applicable to a portion of the region, then only line 33 the voters within that portion shall vote on the measure. line 34 (5) The portion of the re gion that the tax applies shall match line 35 the portion of the region to which funds are eligible to be deployed. line 36 (c) The special documentary transfer tax may be a series of line 37 tiered rates that respond to changes in assessed unimpro ved land line 38 between property purchase and sale.
line 39 (d) The tax shall be collected by the San Die go County line 40 Treasurer-Tax Collector and remitted to the agency. 93 — 28 — SB 1105
line 1 62856. (a) Subject to Section 4 of Article XIII A of the line 2 California Constitution, the agency may impose, subject to approval line 3 by the board by resolution or ordinance before the agenc y takes line 4 action to appro ve the placement of a measure on the ballot, line 5 including by action of the elections official or a qualified v oter line 6 initiative, a special parcel tax on a property o wner, and related line 7 affiliates, that o wn a rental housing portfolio that e xceeds 500 line 8 units.
line 9 (b) The special tax may ha ve graduated tax rates with line 10 incrementally higher rates applying for larger portfolios. line 11 (c) The special tax shall be assessed annually and include line 12 exemptions for nonprofit entities and affordable housing operators. line 13 (d) The special tax shall be administered by the San Die go line 14 County Treasurer-Tax Collector.
line 15 (e) The San Die go County Treasurer-Tax Collector shall line 16 establish procedures and guidelines for exemptions for low-income line 17 persons, nonprofit entities, and affordable housing operators. line 18 (f) The San Diego County Treasurer-Tax Collector shall remit line 19 collected tax funds to the agency to serve as program revenue. line 20 (g) The San Die go County Treasurer-Tax Collector shall line 21 establish guidelines and procedures for appeals. line 22 62857. All special taxes levied pursuant to this article shall be line 23 administered in the following manner:
line 24 (a) Taxes collected shall be deposited in a separate fund, which line 25 shall be established in the treasury of the county and used only as line 26 prescribed by this section.
line 27 (b) The county shall transfer mone ys pursuant to this chapter line 28 from the fund to the agency periodically as promptly as feasible. line 29 The transmittals shall be made at least twice in each calendar line 30 quarter.
line 31
line 32 Article 2. Commercial Linkage Fee
line 33
line 34 62860. As used in this article:
line 35 (a) “Commercial de velopment project” means an y project line 36 involving the issuance of a permit by an underlying land use line 37 jurisdiction for construction, not including remodeling of an line 38 existing property, that is undertaken within San Diego County for line 39 the development of land for commercial use, but does not include line 40 any project involving solely a permit to operate. 93 SB 1105 — 29 —
line 1 (b) “Commercial linkage fee” means a monetary exaction, other line 2 than a tax or special assessment, established for a broad class of line 3 projects by legislation of general applicability that is char ged to line 4 an applicant in connection with the appro val of a commercial line 5 development project by an underlying land use jurisdiction to line 6 address the need for additional housing development necessitated line 7 by that commercial development project, as determined pursuant line 8 to the nexus study undertaken pursuant to subdivision (b) of Section line 9 62861.
line 10 (c) “Underlying land use jurisdiction” means an y of the line 11 following entities, as applicable, that has jurisdiction o ver the line 12 approval of a commercial development project:
line 13 (1) The County of San Diego.
line 14 (2) Incorporated cities located within the territorial boundaries line 15 of the County of San Diego, including all of the following and any line 16 city incorporated after the effective date of this section:
line 17 (A) The City of Carlsbad.
line 18 (B) The City of Chula Vista.
line 19 (C) The City of Coronado.
line 20 (D) The City of Del Mar.
line 21 (E) The City of El Cajon.
line 22 (F) The City of Encinitas.
line 23 (G) The City of Escondido.
line 24 (H) The City of Imperial Beach.
line 25 (I) The City of La Mesa.
line 26 (J) The City of Lemon Grove.
line 27 (K) The City of National City.
line 28 (L) The City of Oceanside.
line 29 (M) The City of Poway.
line 30 (N) The City of San Diego.
line 31 (O) The City of San Marcos.
line 32 (P) The City of Santee.
line 33 (Q) The City of Solana Beach.
line 34 (R) The City of Vista.
line 35 62861. (a) (1) The board may establish, increase, or impose line 36 a commercial linkage fee, in an amount not to e xceed ten dollars line 37 ($10) per square foot, within San Diego County by enactment of line 38 a resolution, in accordance with the requirements of this article, line 39 that is in addition to any fee, as defined in Section 66000, that is line 40 levied by an underlying land use jurisdiction.
93 — 30 — SB 1105
line 1 (2) The fee shall be adjusted on July 1 of each year , in line 2 accordance with the California Construction Cost Inde x. The line 3 annual adjustment may increase the fee to be greater than the line 4 ten-dollar ($10) maximum imposed by paragraph (1). line 5 (3) (A) The board may establish, increase, or impose a line 6 commercial linkage fee pursuant to this article by a resolution that line 7 provides for a fee assessed on commercial de velopment projects line 8 within San Diego County.
line 9 (B) A resolution establishing or re vising the fee shall pro vide line 10 that the amount of the fee required to be paid shall be reduced by line 11 the amount that the applicant is required to pay , if an y, for a line 12 commercial linkage fee for af fordable housing imposed by the line 13 relevant underlying land use jurisdiction.
line 14 (4) The board shall not establish a commercial linkage fee line 15 pursuant to paragraph (1) until the v oters approve a parcel tax line 16 pursuant to Section 62851 or a general oblig ation bond pursuant line 17 to Section 62871.
line 18 (b) Before establishing, increasing, or imposing a commercial line 19 linkage fee, the board shall prepare a re gional jobs and housing line 20 nexus study in order to support the necessity and amount of the line 21 fee. The study , or separate study conducted before the line 22 establishment of a commercial linkage fee, shall e xamine the line 23 factors listed in paragraph (5) of subdi vision (d), may consider line 24 other potential consequences, and shall take into consideration the line 25 potential impact of the fee on the creation of high-paying jobs for line 26 people without four-year degrees.
line 27 (c) Expenditures of proceeds from a commercial linkage fee line 28 shall be limited to af fordable housing production, preserv ation, line 29 and tenant protection, as described in Section 62880. line 30 (d) In any action to establish, increase, or impose a commercial line 31 linkage fee, the board shall do all of the following:
line 32 (1) Identify the purpose of the commercial linkage fee. line 33 (2) Determine how there is a reasonable relationship between line 34 the fee’s use and the type of commercial development project on line 35 which the fee is imposed, based on the re gional ne xus study line 36 prepared pursuant to subdivision (b).
line 37 (3) Determine how there is a reasonable relationship between line 38 the need for housing and the type of commercial de velopment line 39 project on which the fee is imposed, based on the re gional nexus line 40 study prepared pursuant to subdivision (b).
93 SB 1105 — 31 —
line 1 (4) Determine how there is a reasonable relationship between line 2 the amount of the fee and the cost of the housing necessitated by line 3 the commercial de velopment project that is attrib utable to the line 4 development on which the fee is imposed, based on the re gional line 5 nexus study prepared pursuant to subdivision (b). line 6 (5) (A) Adopt findings that, based upon the board’ s analysis line 7 and the regional nexus study, the commercial linkage fee:
line 8 (i) Would concentrate jobs near transit.
line 9 (ii) Would not reduce commercial de velopment and space for line 10 jobs, particularly in economically disadvantaged areas. line 11 (iii) Would not e xacerbate intrare gional job-to-housing line 12 imbalances.
line 13 (iv) Would not disincentivize mixed-use development. line 14 (B) The board shall provide analysis to support the findings and line 15 consider other potential consequences of the fee. line 16 (e) The board and the agency shall suspend the imposition of a line 17 commercial linkage fee after two consecutive quarters of negative line 18 gross domestic product growth within San Diego County. The fee line 19 may be reinstated after two consecutive quarters of positive gross line 20 domestic product gro wth within San Die go County. The board line 21 may reinstate the fee by resolution that states the condition in the line 22 previous sentence is met b ut shall not be subject to subdi visions line 23 (b), (c), or (d) of this section.
line 24 62862. (a) A commercial linkage fee established, increased, line 25 or imposed pursuant to this article shall not exceed the reasonable line 26 cost of pro viding the housing necessitated by the commercial line 27 development project for which the commercial linkage fee is line 28 imposed, as determined in the re gional nexus study pursuant to line 29 subdivision (b) of Section 62861.
line 30 (b) It is the intent of the Le gislature in adding this section to line 31 codify existing constitutional and decisional la w with respect to line 32 the imposition of de velopment fees and monetary e xactions on line 33 developments by local agencies. This section is declaratory of line 34 existing law and shall not be construed or interpreted as creating line 35 new law or as modifying or changing existing law. line 36 62863. (a) Before adopting a resolution imposing a ne w line 37 commercial linkage fee or appro ving an increase in an e xisting line 38 commercial linkage fee pursuant to this article, the board shall line 39 hold a public hearing, at which oral or written presentations can line 40 be made, as part of a regularly scheduled meeting. The board shall 93 — 32 — SB 1105
line 1 publish a notice of the time and place of the meeting, including a line 2 general e xplanation of the matter to be considered, shall be line 3 published in accordance with Section 6062a.
line 4 (b) Any costs incurred by the board in conducting the hearing line 5 required pursuant to subdivision (a) may be reco vered as part of line 6 the commercial linkage fee that is the subject of the hearing. line 7 62864. (a) Except as otherwise provided in subdivision (c), if line 8 the board adopts a resolution or other le gislative enactment line 9 imposing a new commercial linkage fee or approving an increase line 10 in an e xisting commercial linkage fee and the board adopts a line 11 resolution concurring with the establishment, imposition, or line 12 increase of the fee consistent with subdivision (a) of Section 62861, line 13 each underlying land use jurisdiction shall, as a condition of line 14 approving a commercial development project for which it receives line 15 an application for a conditional use permit or other discretionary line 16 or ministerial approval, require an applicant to pay the amount of line 17 commercial linkage fee established, imposed, or increased by the line 18 board pursuant to this article. The underlying land use jurisdiction line 19 shall provide notice to the applicant that does all of the following:
line 20 (1) Notifies the applicant that the board has established, line 21 increased, or imposed a commercial linkage fee pursuant to this line 22 article.
line 23 (2) States the amount of commercial linkage fee established, line 24 increased, or imposed by the board.
line 25 (3) States that the applicant may protest the commercial linkage line 26 fee, as provided in Section 62865, and notifies the applicant that line 27 the 90-day period for that protest and the 180-day period for filing line 28 an action specified in subdivision (c) of Section 62865 has begun. line 29 (b) Each underlying land use jurisdiction shall collect and, after line 30 deduction of any actual and necessary administrative costs incurred line 31 by the underlying land use jurisdiction, remit the amount of line 32 commercial linkage fee established, increased, or imposed pursuant line 33 to this article to the agenc y. An underlying land use jurisdiction line 34 shall remit the amounts required by this subdivision on or before line 35 the last day of the month next succeeding each calendar quarterly line 36 period.
line 37 (c) If an y amount of commercial linkage fee increased, or line 38 imposed pursuant to this article is found by a final, nonappealable line 39 judgment to be invalid pursuant to Section 62865, each underlying 93 SB 1105 — 33 —
line 1 land use jurisdiction shall immediately cease collection of the line 2 commercial linkage fee.
line 3 62865. (a) Any party may protest the imposition of a line 4 commercial linkage fee imposed on a commercial de velopment line 5 project by the agency pursuant to this article as follows:
line 6 (1) The party shall pay the total amount of commercial linkage line 7 fee required by the resolution enacted pursuant to Section 62861, line 8 or post security satisfactory to the agency to ensure payment. line 9 (2) Serving a written notice on the board and the le gislative line 10 body of the relevant underlying land use jurisdiction that contains line 11 all of the following information:
line 12 (A) A statement that the required payment is tendered or will line 13 be tendered when due under protest.
line 14 (B) A statement informing the board and legislative body of the line 15 underlying land use jurisdiction of the f actual elements of the line 16 dispute and each legal theory forming the basis for the protest. line 17 (b) Compliance by any party with subdivision (a) shall not be line 18 the basis for an underlying land use jurisdiction to withhold line 19 approval of any map, plan, permit, zone change, license, or other line 20 entitlement, whether discretionary or ministerial, incident to, or line 21 necessary for, the commercial development project. This section line 22 does not limit the authority of an underlying land use jurisdiction line 23 to ensure compliance with all applicable pro visions of la w in line 24 determining whether to approve or disapprove entitlements for a line 25 commercial development project.
line 26 (c) (1) A protest filed pursuant to subdivision (a) shall be filed line 27 at the time of approval or conditional approval of the commercial line 28 development project or within 90 days after the date of the line 29 imposition of the commercial linkage fee to be imposed on a line 30 commercial development project.
line 31 (2) Any party who files a protest pursuant to subdi vision (a) line 32 may file an action to attack, re view, set aside, v oid, or annul the line 33 imposition of the commercial linkage fee on a commercial line 34 development project within 60 days after the delivery of the notice line 35 required by subdi vision (a) of Section 62864. Thereafter, line 36 notwithstanding any other la w, all persons shall be barred from line 37 any action or proceeding or an y defense of in validity or line 38 unreasonableness of the imposition. Any proceeding brought line 39 pursuant to this subdivision shall be brought pursuant to Section line 40 863 of the Code of Civil Procedure and shall take precedence over 93 — 34 — SB 1105
line 1 all matters of the calendar of the court e xcept criminal, probate, line 2 eminent domain, forcible entry, and unlawful detainer proceedings. line 3 (d) (1) If the court grants a judgment to a plaintiff invalidating, line 4 as enacted, all or a portion a resolution establishing, increasing, line 5 or imposing a commercial linkage fee, the court shall direct the line 6 agency to refund the unlawful portion of the payment, plus interest line 7 at an annual rate equal to the a verage rate accrued by the Pooled line 8 Money In vestment Account during the time elapsed since the line 9 payment occurred, or to return the unlawful portion of the exaction line 10 imposed.
line 11 (2) If an action is filed within 120 days of the date at which a line 12 resolution to establish or modify a commercial linkage fee to be line 13 imposed on a commercial de velopment project tak es effect, the line 14 portion of the payment or e xaction in validated shall also be line 15 returned to any other person who, under protest pursuant to this line 16 section and under that in valid portion of that same resolution as line 17 enacted, tendered the payment or posted security satisf actory to line 18 the agenc y to ensure payment, or pro vided for or satisfied the line 19 exaction during the period from 90 days before the date of the line 20 filing of the action which in validates the payment or e xaction to line 21 the date of the entry of the judgment referenced in paragraph (1). line 22 (e) The imposition of a commercial linkage fee occurs, for the line 23 purposes of this section, when it is imposed or levied on a specific line 24 commercial development project.
line 25 62866. (a) In any judicial action or proceeding to v alidate, line 26 attack, review, set aside, v oid, or annul an y resolution providing line 27 for the increase or imposition of a commercial linkage fee pursuant line 28 to this article in which it is alle ged that the fee is a special tax line 29 within the meaning of Section 50076, the board and the agenc y line 30 shall have the burden of producing evidence to establish that the line 31 commercial linkage fee does not e xceed the reasonable cost of line 32 providing the housing necessitated by the commercial development line 33 project for which the commercial linkage fee is imposed, as line 34 determined in the regional nexus study pursuant to subdivision (b) line 35 of Section 62861.
line 36 (b) A party may initiate an action or proceeding pursuant to line 37 subdivision (a) only if both of the following requirements are met:
line 38 (1) The commercial linkage fee was imposed on the party as a line 39 condition of project approval, as provided in Section 62864. 93 SB 1105 — 35 —
line 1 (2) At least 30 days before initiating the action or proceeding, line 2 the party requests that the board and the agency provide a copy of line 3 the documents, including, b ut not limited to, the re gional nexus line 4 study prepared pursuant to subdivision (b) of Section 62861, that line 5 establish that the commercial linkage fee does not e xceed the line 6 reasonable cost of pro viding the housing necessitated by the line 7 commercial development project for which the commercial linkage line 8 fee is imposed. In accordance with subdivision (b) of Section 6253, line 9 the board and the agenc y may char ge a fee for cop ying the line 10 documents requested pursuant to this paragraph. line 11 (c) For purposes of this section, the reasonable costs of providing line 12 the housing shall be determined in accordance with fundamental line 13 fairness and consistency of method as to the allocation of costs, line 14 expenses, revenues, and other items included in that calculation. line 15 62867. (a) Any person may request an audit in order to line 16 determine whether any fee or charge levied by the board exceeds line 17 the amount necessary to co ver the reasonable cost of pro viding line 18 the housing necessitated by the commercial de velopment project line 19 for which the commercial linkage fee is imposed, as determined line 20 in the regional nexus study pursuant to subdivision (b) of Section line 21 62861. If a person mak es that request, the board and the agenc y line 22 may retain an independent auditor to conduct an audit to determine line 23 whether the commercial linkage fee is reasonable, b ut is not line 24 required to conduct the audit if an audit has been performed for line 25 the same fee within the previous 12 months.
line 26 (b) If an audit pursuant to this section determines that the amount line 27 of an y commercial linkage fee or char ge does not meet the line 28 requirements of this article, the board shall adjust the fee line 29 accordingly.
line 30 (c) The agency shall retain an independent auditor to conduct line 31 an audit only if the person who requests the audit deposits with line 32 the agency the amount of the board’ s reasonable estimate of the line 33 cost of the independent audit. At the conclusion of the audit, the line 34 agency shall reimb urse unused sums, if an y, or the requesting line 35 person shall pay the agenc y the e xcess of the actual cost of the line 36 audit over the sum which was deposited.
line 37 (d) Any audit conducted by an independent auditor pursuant to line 38 this section shall conform to generally accepted auditing standards. 93 — 36 — SB 1105
line 1 62868. Any action by the board or interested person under this line 2 article shall be brought pursuant to Chapter 9 (commencing with line 3 Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. line 4
line 5 Article 3. Bonds
line 6
line 7 62870. The board may, by majority vote, initiate proceedings line 8 to issue general oblig ation bonds pursuant to this chapter by line 9 adopting a resolution or ordinance stating its intent to issue the line 10 bonds.
line 11 62871. (a) The agenc y, with appro val of tw o-thirds of the line 12 voters, may levy ad valorem property taxes to secure debt pursuant line 13 to paragraph (2) of subdivision (b) of Section 1 of Article XIII A line 14 of the California Constitution.
line 15 (b) For purposes of incurring bonded indebtedness pursuant to line 16 this subdivision, the agenc y shall comply with the requirements line 17 of Chapter 3 (commencing with Section 53400) of P art 1 of line 18 Division 2 of Title 5.
line 19 62872. (a) (1) For purposes of this section, “agency revenues” line 20 includes, without limitation, re venues generated by an y special line 21 tax, fee, or charge imposed by the agency, other than ad valorem line 22 property taxes.
line 23 (2) The agency may issue revenue bonds, payable from agency line 24 revenues, in accordance with the Re venue Bond La w of 1941 line 25 (Chapter 6 (commencing with Section 54300) of Part 1 of Division line 26 2 of Title 5), for the purposes set forth in this title and in an y line 27 resolution adopted by the board, or measure adopted by voters, in line 28 connection with the generation of agency revenues or imposition line 29 of those special tax es, fees, or other char ges. F or purposes of line 30 issuing revenue bonds pursuant to this section, the special tax es, line 31 fees, or other char ges described in the pre vious sentence shall line 32 constitute an “enterprise” within the meaning of Section 54309. line 33 (3) To exercise the powers described in this section, the agency line 34 shall ensure that any annual expenditure plan summary prepared line 35 pursuant to Section 62821 related to v oter approval of a special line 36 tax under this title notifies the voters that proceeds from the special line 37 tax may be used as payment for revenue bonds.
line 38 (4) For purposes of this section, the agency shall be deemed to line 39 be a local agency within the meaning of Section 54307. Article 3 line 40 (commencing with Section 54380) of Chapter 6 of P art 1 of 93 SB 1105 — 37 —
line 1 Division 2 of Title 5 does not apply to the issuance and sale of line 2 bonds pursuant to this section. Instead, the agency shall authorize line 3 the issuance of bonds by resolution at any time, and from time to line 4 time, which shall specify all of the following:
line 5 (A) The purposes for which the bonds are to be issued. line 6 (B) The maximum principal amount of the bonds.
line 7 (C) The maximum term for the bonds.
line 8 (D) (i) The maximum rate of interest to be payable upon the line 9 bonds, which shall not e xceed the maximum rate permitted for line 10 bonds of the agenc y by Section 53531 or an y other applicable line 11 provisions of law.
line 12 (ii) In the case of bonds bearing a v ariable interest rate, the line 13 variable rate shall not, on an y day, e xceed the maximum rate line 14 permitted for bonds of the agency by Section 53531 or any other line 15 applicable provisions of la w. However, the v ariable interest rate line 16 may, on an y day, exceed that maximum rate in clause (i), if the line 17 interest paid on the bonds from their date of original issuance to line 18 that day does not e xceed the total interest that w ould have been line 19 permitted if the bonds had borne interest at all times from the date line 20 of issuance to that day at the maximum rate permitted from time line 21 to time by Section 53531 or an y other applicable pro visions of line 22 law.
line 23 (E) The maximum original issue premium or discount on the line 24 sale of the bonds.
line 25 (F) The denomination or denominations of the revenue bonds, line 26 which shall not be less than five thousand dollars ($5,000). line 27 (b) The resolution may also contain any other matters authorized line 28 by this chapter or any other law.
line 29 (c) The revenue bonds may be sold at public or pri vate sale or line 30 on a negotiated sale basis and at the prices, abo ve or below par, line 31 as determined by the board.
line 32 (d) The revenue bonds, or each series thereof, shall be dated line 33 and numbered consecutively and shall be signed by the executive line 34 director of the agenc y, whose signature may be printed, line 35 lithographed, or mechanically reproduced. If an y officer whose line 36 signature appears on the re venue bonds ceases to be that officer line 37 before the deli very of the bonds, the officer’ s signature is as line 38 effective as if the officer had remained in office. line 39 (e) This section provides a complete, additional, and alternative line 40 method for the issuance of re venue bonds by the agenc y. An 93 — 38 — SB 1105
line 1 issuance does not need to comply with the procedures specified line 2 elsewhere in this article or other laws, but shall, if bonds are issued line 3 pursuant to this article, be issued in accordance with this article. line 4 (f) Revenue bond proceeds shall be used to support capital line 5 projects and not other agency activities or operating expenses. line 6 62872.5. The agenc y may issue mortg age re venue bonds line 7 pursuant to Part 5 (commencing with Section 52000) of Division line 8 31 of the Health and Safety Code, and other applicable law. line 9 62872.7. The agency may issue private activity bonds pursuant line 10 to the Tax Reform Act of 1986 (Public Law 99-514) and Sections line 11 1112 and 1401 of the American Recovery and Reinvestment Act line 12 of 2009, as it read prior to repeal (26 U.S.C. Secs. 54a and line 13 1400U-1).
line 14 62873. (a) The agenc y or an y person e xecuting the bonds line 15 issued pursuant to this title shall not be personally liable on the line 16 bonds by reason of their issuance.
line 17 (b) The bonds and other obligations of the agency are not a debt line 18 of any city or San Die go County, or any of its affiliated entities, line 19 or of the state or of any of its political subdivisions, other than the line 20 agency, and neither a city or county nor the state or an y of its line 21 political subdivisions, other than the agency, shall be liable on the line 22 bonds, and the bonds or oblig ations shall be payable e xclusively line 23 from funds or properties of the agenc y, as specified in the line 24 applicable bond or other debt instrument. Bonds issued pursuant line 25 to this title shall contain a statement to this effect on their face. line 26 (c) If the signature of any member of the agency or staff member line 27 of the agency appears on bonds issued pursuant to this title, and line 28 that indi vidual ceases to be a member of the agenc y or staf f line 29 member of the agency before delivery of the bonds, that member’s line 30 signature shall be as ef fective as if the member had remained in line 31 office.
line 32 62874. (a) Every two years after the issuance of bonds pursuant line 33 to this section, the agenc y shall contract for an independent line 34 financial and performance audit. The audit shall be conducted line 35 according to guidelines established by the Controller . A copy of line 36 the completed audit shall be provided to the Controller, the Director line 37 of Finance, and the Joint Legislative Budget Committee. line 38 (b) Upon the request of the Go vernor or the Le gislature, the line 39 Bureau of State Audits may conduct a financial and performance line 40 audit of the agency. The results of any audit shall be provided to 93 SB 1105 — 39 —
line 1 the board, the Controller , the Director of Finance, and the Joint line 2 Legislative Budget Committee.
line 3 62875. Bonds issued pursuant to this article are fully negotiable. line 4 62876. Any action to determine the validity of any tax, fee, or line 5 other char ge pro vided for in, or the v alidity of bonds issued line 6 pursuant to, this title, or an y of the proceedings, contracts, line 7 agreements, or other arrangements or matters entered into, shall line 8 be commenced within 60 days from date of the election or the line 9 adoption of the resolution approving those matters, as applicable, line 10 pursuant to Chapter 9 (commencing with Section 860) of Title 10 line 11 of P art 2 of the Code of Ci vil Procedure. After that date, the line 12 adoption of that tax, fee, or other charge, the issuance of the bonds, line 13 and all proceedings in relation thereto, shall be held v alid and line 14 incontestable in every respect.
line 15
line 16 Chapter 3. Expenditures
line 17
line 18 62880. (a) (1) Revenue generated pursuant to this part shall line 19 be used to support the construction and preservation of equitable line 20 and environmentally friendly housing, rental protection programs, line 21 planning, and technical assistance related to equitable housing, line 22 and for other purposes, as provided for in this section. line 23 (2) Funding that is deri ved from a bond issued pursuant to line 24 Section 62871 shall be e xpended solely to purchase or impro ve line 25 real property, consistent with paragraph (2) of subdi vision (b) of line 26 Section 1 of Article XIIIA of the California Constitution. line 27 (3) The agenc y shall distrib ute the re venues deri ved from a line 28 commercial linkage fee established, increased, or imposed pursuant line 29 to Article 2 (commencing with Section 62860) of Chapter 2 to line 30 eligible jurisdictions in a manner that is consistent with the regional line 31 nexus study adopted by the board. An eligible jurisdiction that line 32 receives revenues pursuant to this paragraph shall use that revenue line 33 solely for equitable and en vironmentally friendly housing line 34 necessitated by a commercial de velopment project on which the line 35 fee was imposed, as determined by the board pursuant to Section line 36 62861.
line 37 (b) For purposes of this section:
line 38 (1) “Regional housing revenues” are those revenues generated line 39 pursuant to Chapter 2 (commencing with Section 62851). For each line 40 regional housing re venue mechanism, the portion of the re gion 93 — 40 — SB 1105
line 1 that the mechanism applies shall match the portion of the re gion line 2 to which funds are eligible to be deplo yed. In the event that one line 3 or more local jurisdictions enact housing revenue mechanisms that line 4 apply to one or more local jurisdictions, the agency may enter into line 5 an agreement to administer the funding on behalf of the local line 6 jurisdictions.
line 7 (2) “Eligible jurisdiction” means the following jurisdictions:
line 8 (A) The County of San Diego.
line 9 (B) The City of Carlsbad.
line 10 (C) The City of Chula Vista.
line 11 (D) The City of Coronado.
line 12 (E) The City of Del Mar.
line 13 (F) The City of El Cajon.
line 14 (G) The City of Encinitas.
line 15 (H) The City of Escondido.
line 16 (I) The City of Imperial Beach.
line 17 (J) The City of La Mesa.
line 18 (K) The City of Lemon Grove.
line 19 (L) The City of National City.
line 20 (M) The City of Oceanside.
line 21 (N) The City of Poway.
line 22 (O) The City of San Diego.
line 23 (P) The City of San Marcos.
line 24 (Q) The City of Santee.
line 25 (R) The City of Solana Beach.
line 26 (S) The City of Vista.
line 27 (T) Any city incorporated within San Die go County after the line 28 effective date of this title.
line 29 (c) Subject to subdi vision (e), re gional housing re venue shall line 30 be allocated pursuant to the following:
line 31 (1) Fifty percent of annual funding shall be administered by the line 32 agency at the re gional le vel to support programs and projects line 33 consistent with the guiding principles of the agenc y and the line 34 equitable and en vironmentally friendly program parameters set line 35 forth in subdi vision (d). Excluding an y bond indebtedness, the line 36 following categories of eligible uses shall apply to these funds:
line 37 (A) A maximum of 10 percent shall be used for the agenc y line 38 administrative and operations expenses.
line 39 (B) A minimum of 5 percent shall be used for technical line 40 assistance to local jurisdictions, research and policy development, 93 SB 1105 — 41 —
line 1 and data collection and analysis. Such uses may include, b ut are line 2 not limited to, the following:
line 3 (i) Providing technical assistance grants and support to local line 4 jurisdictions in planning, housing polic y development, land use line 5 and zoning policies that align with transit-oriented de velopment, line 6 and inclusionary housing policies.
line 7 (ii) Researching inno vative best-practices to accelerate the line 8 production of equity and en vironmentally friendly housing, and line 9 developing reports, briefs, and presentations to disseminate such line 10 information among local jurisdictions.
line 11 (iii) Drafting model ordinances that may be adopted by an y line 12 jurisdiction in San Diego County.
line 13 (iv) Collecting and tracking information related to housing costs, line 14 displacement and displacement risk, rents, and e victions in the line 15 region.
line 16 (v) Maintaining a list of consultants who shall be a vailable to line 17 provide technical assistance, research, and policy development to line 18 local jurisdictions consistent with this subparagraph. line 19 (C) A minimum of 40 percent shall be used for equitable housing line 20 production.
line 21 (D) A minimum of 10 percent shall be used for equitable line 22 housing preservation.
line 23 (E) A minimum of 15 percent shall be used to support strategic line 24 priorities and inno vation as identified in the annual e xpenditure line 25 plan.
line 26 (F) A minimum of 5 percent shall be used to support rental and line 27 tenant protection programs for lo wer income households. Such line 28 uses may include, but are not limited to, legal services for tenants line 29 and landlords facing evictions or preevictions, renter and landlord line 30 education, coordinated eviction prevention systems, eviction data line 31 analysis, programs to impro ve housing quality and habitability , line 32 and rental assistance programs that support lo w- and line 33 moderate-income tenants with rental arrears at risk of e viction, line 34 including emergency rental assistance payments paid directly to line 35 landlords.
line 36 (G) Notwithstanding subparagraphs (A) to (F), inclusi ve, a line 37 minimum of 10 percent and a maximum of 35 percent of regional line 38 funds shall be used to support first-time home buyer programs and line 39 opportunities for households at or belo w 135 percent of the area line 40 median income. All first-time home buyer projects shall achieve 93 — 42 — SB 1105
line 1 an income average across the project of not more than 120 percent line 2 of the area median income.
line 3 (2) Fifty percent of annual funding shall be allocated by the line 4 agency to local jurisdictions to be administered at the full discretion line 5 of the local jurisdiction consistent with the program parameters line 6 set forth in subdi vision (d). The board shall not create polic y line 7 guidelines, preferences, or additional program parameters, beyond line 8 those set forth in subdi vision (d) that w ould impact the full line 9 discretion of local jurisdictions to administer the local funds. The line 10 allocation shall be based on each local jurisdiction’s share of very line 11 low income, lo w-income, and moderate-income units as a line 12 percentage of the o verall re gional tar get for v ery lo w income, line 13 low-income, and moderate-income units, as determined in the most line 14 recent re gional housing needs assessment. The board shall not line 15 cause the allocation formula to be changed. A local jurisdiction line 16 may request the agency to administer all or a portion of its allocated line 17 fund. If the agency agrees to administer the funds, it shall develop line 18 and adopt an annual expenditure plan applicable to that portion of line 19 the funds that shall be approved by the board, in consultation with line 20 the local jurisdiction. Excluding an y bond indebtedness, the line 21 following categories of eligible uses shall apply to these funds:
line 22 (A) A maximum of 10 percent shall be used for the local line 23 jurisdiction administrati ve and operations e xpenses, or agenc y line 24 administrative and operations e xpenses if the agenc y agrees to line 25 administer a local jurisdictions’ allocated funds. line 26 (B) A minimum of 50 percent shall be used for equitable housing line 27 production.
line 28 (C) A minimum of 10 percent shall be used for equitable housing line 29 preservation.
line 30 (D) A maximum of 5 percent shall be used to support rental and line 31 tenant protection programs for lo wer income households. Such line 32 uses may include, but are not limited to, legal services for tenants line 33 and landlords facing evictions or preevictions, renter and landlord line 34 education, coordinated eviction prevention systems, eviction data line 35 analysis, programs to impro ve housing quality and habitability , line 36 and rental assistance programs that support lo w- and line 37 moderate-income tenants with rental arrears at risk of e viction, line 38 including emergency rental assistance payments paid directly to line 39 landlords.
93 SB 1105 — 43 —
line 1 (E) Notwithstanding subparagraphs (A) to (D), inclusi ve, a line 2 minimum of 10 percent and a maximum of 35 percent of local line 3 jurisdictions funds shall be used to support first-time home buyer line 4 programs and opportunities for households at or below 135 percent line 5 of the area median income.
line 6 (d) Except as provided in paragraph (6), all funds dedicated to line 7 equitable housing production and preservation under subdivision line 8 (c), regardless of their administration by the agenc y or by local line 9 jurisdictions, shall be subject to program parameters established line 10 pursuant to this subdi vision. The agenc y shall de velop project line 11 eligibility and prioritization criteria based on the follo wing line 12 parameters:
line 13 (1) Funds shall be reserv ed consistent with the follo wing line 14 requirements:
line 15 (A) Between 20 to 45 percent of funds shall be reserv ed for line 16 households earning between 0 and 50 percent of the area median line 17 income.
line 18 (B) Between 20 to 40 percent of funds shall be reserv ed for line 19 households earning between 50 and 80 percent of the area median line 20 income.
line 21 (C) Between 20 to 40 percent of funds shall be reserv ed for line 22 moderate income households, defined as a household earning 80 line 23 to 135 percent of the area median income, pro vided that all line 24 first-time home b uyer projects shall achie ve an income a verage line 25 across the project not to e xceed 120 percent of the area median line 26 income.
line 27 (D) Ten percent to 35 percent of funds shall be reserv ed for line 28 first-time home o wnership, as specified in subparagraph (G) of line 29 paragraph (1) of subdivision (c) and subparagraph (E) of paragraph line 30 (2) of subdivision (c). The funds described in this subparagraph line 31 shall be used for first-time home buyer programs and opportunities line 32 for households at or below 135 percent of the area median income, line 33 inclusive of all funds administered by the agenc y and by local line 34 jurisdictions. These programs can include, but are not limited to, line 35 development subsidies to assist in the production of home line 36 ownership units dedicated to first-time home buyers, downpayment line 37 assistance, closing cost assistance, credit enhancement, credit line 38 counseling and repair programs, community land trusts, and shared line 39 appreciation mortgage products. All first-time home buyer projects 93 — 44 — SB 1105
line 1 shall achieve an income average across the project not to e xceed line 2 120 percent of the area median income.
line 3 (E) One hundr ed per cent of funds shall be r eserved for line 4 households that earn less than 135 per cent of the ar ea median line 5 income.
line 6 (E)
line 7 (F) The criteria shall prioritize projects that comply with the line 8 following:
line 9 (i) Projects that have secured, or are acti vely seeking, state or line 10 federal sources of project subsidy , including, b ut not limited to, line 11 tax-exempt bonds and low-income housing tax credits. line 12 (ii) Mixed-income projects that incorporate multiple income line 13 tiers, including, but not limited to, very low income, low-income, line 14 and moderate-income households.
line 15 (iii) Projects that facilitate development on public land identified line 16 for equitable housing production.
line 17 (F) One hundred percent of funds shall be reserv ed for line 18 households that earn less than 135 percent of the area median line 19 income.
line 20 (2) Eligible projects shall comply with all of the following:
line 21 (A) Eligible projects shall satisfy sustainability criteria, as line 22 determined by the agency, which shall include one or both of the line 23 following criteria:
line 24 (i) Be located in a regionally or locally defined priority area for line 25 smart gro wth consistent with the most recent sustainable line 26 communities strategy.
line 27 (ii) Have a vehicle miles travels per capita that is 15 percent or line 28 more below the existing regional average.
line 29 (B) For new construction projects, eligible projects shall include line 30 onsite renewable generation estimated to produce 50 percent or line 31 more of annual electricity use.
line 32 (C) For rehabilitation projects, eligible projects shall document line 33 at least a 10-percent postrehabilitation improvement over existing line 34 conditions energy efficiency.
line 35 (D) Eligible projects shall utilize southern California nati ve line 36 plant and tree species that require lo w-water use in sufficient line 37 quantities based on landscaping practices in the general mark et line 38 area and low maintenance needs.
line 39 (3) The agency shall create additional prioritization criteria that line 40 includes, but are not limited to, the following:
93 SB 1105 — 45 —
line 1 (A) The project site is located within one-third mile of existing line 2 or planned major transit stops, as defined in Section 21064.3 of line 3 the Public Resources Code.
line 4 (B) The project site is located within one-half mile of a public line 5 park or a community center accessible to the general public. line 6 (C) The project site is within one-half mile of a grocery store line 7 or supermarket with a gross interior area of at least 8,000 square line 8 feet where staples, fresh meat, and fresh produce are sold. line 9 Alternately, the project site may be located within one-half mile line 10 of a weekly farmers’ market on the list of certified farmers’ markets line 11 maintained by the Department of F ood and Agriculture and line 12 operating at least five months in a calendar year. line 13 (D) The project site is within one-half mile of a commercial line 14 corridor with a mix of uses and access to shops, amenities, and line 15 neighborhood-serving retail, and services. Services must be line 16 appropriate to meet the needs of the community served, including, line 17 but not limited to, childcare, grocery stores, pharmacies, line 18 educational services, and health care services. line 19 (E) The project is located within one-quarter mile of a public line 20 elementary school, one-half mile of a public middle school, or one line 21 mile of a public high school.
line 22 (F) Mixed-use developments located one-third of a mile from line 23 an existing or planned major transit stop, as defined in Section line 24 21064.3 of the Public Resources Code, that contains onsite line 25 amenities or neighborhood-serving retail and services. This may line 26 include commercial and community f acility uses that pro vide line 27 services designed to improve the quality of life for residents and line 28 community members. Services should be appropriate to meet the line 29 needs of the community serv ed, including, b ut not limited to, line 30 childcare, grocery stores, pharmacies, educational services, and line 31 health care services.
line 32 (G) The project utilizes all electric appliances, with exemptions line 33 for cooking appliances.
line 34 (H) The project pro vides inclusi ve and accessible design line 35 features, including, b ut not limited to, interior and e xterior line 36 accessible routes, zero-step entry, bathroom wall reinforcements, line 37 accessible electrical controls, and receptacles. line 38 (4) Funds utilized for housing production and preservation shall line 39 be e xpended to support housing with all-electric appliances in line 40 alignment with the deadlines identified in the State Air Resources 93 — 46 — SB 1105
line 1 Board 2022 Scoping Plan. One hundred percent of funds shall line 2 support housing with all-electric appliances, with exemptions for line 3 cooking appliances, no later than 2029.
line 4 (5) Funds shall be expended consistent with the following:
line 5 (A) Funding for equitable housing production may be used for line 6 land acquisition, housing acquisition, financing, and o wnership line 7 programs, including the agenc y serving as a single source of line 8 financing, as appropriate.
line 9 (B) Funding for equitable housing preservation may be used to line 10 acquire, rehabilitate, place af fordability restrictions on, and line 11 preserve existing housing units, housing from the private market, line 12 and units in residential hotels as defined in paragraph (1) of line 13 subdivision (b) of Section 50519 of the Health and Safety Code line 14 for affordability, in order to pre vent the loss of af fordability and line 15 expand permanent affordability. Funding provided pursuant to this line 16 subparagraph shall be subject to all of the following conditions:
line 17 (i) Existing residents of b uildings acquired for the purpose of line 18 affordable housing preservation shall not be permanently displaced, line 19 even if the resident’ s household income e xceeds the line 20 moderate-income limits described in Section 50093 of the Health line 21 and Safety Code.
line 22 (ii) Buildings acquired for the purpose of af fordable housing line 23 preservation shall achie ve 100 percent occupanc y by e xtremely line 24 low or v ery lo w income households o ver time through unit line 25 turnover.
line 26 (iii) Grants, loans, or other financing pro vided to community line 27 land trusts and other similarly structured nonprofit entities to line 28 acquire, rehabilitate, and preserv e existing housing units are an line 29 eligible use pursuant to this subparagraph.
line 30 (iv) Programs to enable lo w- or moderate-income households line 31 to become or remain homeo wners, including, but not limited to, line 32 below market rate ownership programs, down payment assistance line 33 programs, residential rehabilitation loan programs, and grants or line 34 loans to assist in the rehabilitation or replacement of e xisting line 35 mobilehomes located in a mobilehome or manuf actured home line 36 community.
line 37 (v) Funding shall be subject to the following conditions in the line 38 event that demolition or rehabilitation of housing units is required:
line 39 (I) (ia) Any funded de velopment or af fordable housing grant line 40 on any property that includes a parcel or parcels that currently 93 SB 1105 — 47 —
line 1 have residential uses, or within the five years preceding the grant line 2 have had residential uses that ha ve been vacated or demolished, line 3 that are or were subject to a recorded covenant, ordinance, or law line 4 that restricts rents to le vels affordable to persons and f amilies of line 5 low- or very low income, subject to any other form of rent or price line 6 control through a public entity’s valid exercise of its police power, line 7 or occupied by lo w- or v ery lo w income households, shall be line 8 subject to a policy requiring the replacement of all those units to line 9 be made available at affordable rent or affordable housing cost to, line 10 and occupied by, persons and families in the same or lower income line 11 category as those households in occupancy.
line 12 (ib) Replacement requirements shall be consistent with those line 13 set forth in paragraph (3) of subdi vision (c) of Section 65915, line 14 provided that any dwelling unit that is or was, within the five-year line 15 period preceding the grant, subject to a form of rent or price control line 16 through a local go vernment’s valid exercise of its police po wer line 17 and that is or w as occupied by persons or f amilies above lower line 18 income shall be replaced with units made a vailable at affordable line 19 rent or affordable housing cost to, and occupied by , low-income line 20 persons or families.
line 21 (II) If e xisting residents are required to be relocated due to line 22 demolition or rehabilitation needs, the de veloper is required to line 23 provide relocation benefits to the occupants of those housing rental line 24 units subject to Chapter 16 (commencing with Section 7260) of line 25 Division 7 of Title 1. The developer shall comply with either the line 26 local go vernment requirements for relocation assistance to line 27 displaced households or the policy set by the agency for relocation line 28 assistance to displaced households, whichever provides a greater line 29 benefit to the relocated or displaced households. line 30 (III) If existing occupants that are lower income households are line 31 required to vacate their units due to demolition or rehabilitation line 32 needs, the de veloper shall pro vide a right of first refusal for a line 33 comparable unit a vailable in the ne w or rehabilitated housing line 34 development that is af fordable to the household at an af fordable line 35 rent, as defined in Section 50053 of the Health and Safety Code, line 36 or an affordable housing cost, as defined in Section 50052.5 of the line 37 Health and Safety Code.
line 38 (6) Paragraphs (2) through (5) shall not apply to the Strate gic line 39 Priorities and Innovation funds described in subparagraph (E) of line 40 paragraph (1) of subdivision (b). (c).
93 — 48 — SB 1105
line 1 (e) No earlier than five years after approval of a funding measure line 2 under Chapter 2 (commencing with Section 62851) and subject to line 3 consultation with the advisory committee, the board may change line 4 any of the minimum requirements in subdi vision (c) if the board line 5 adopts a finding that the region’s needs in a given category differ line 6 from those requirements. The board is required to appro ve the line 7 finding by a tw o-thirds v ote. Approval of the finding shall be line 8 subject to the public participation requirements provided in Section line 9 62819.
line 10 (f) (1) The board shall, in consultation with the advisory line 11 committee, adopt an annual expenditure plan for the use of housing line 12 revenue by July 1 of each year , except the board shall select the line 13 deadline to adopt the first annual e xpenditure plan. The regional line 14 expenditure plan may cover multiple years, as determined by the line 15 board.
line 16 (2) The annual e xpenditure plan shall set forth the share of line 17 revenue and estimated funding amount to be spent on each of the line 18 categories established in subdi vision (b), indicate the household line 19 income levels to be served within each category of expenditures, line 20 and estimate the number of affordable housing units to be built or line 21 preserved and the number of tenants to be protected. To the extent line 22 feasible, the regional expenditure plan shall include a description line 23 of any specific project or program proposed to recei ve funding, line 24 including the location, amount of funding, and anticipated line 25 outcomes.
line 26 (3) The annual e xpenditure plan shall include the follo wing line 27 information for any specific project that has received an allocation line 28 of regional housing revenue during the prior year:
line 29 (A) Whether the project proponent has requested a b uilding line 30 permit for the project, and if so, the date when it was requested. line 31 (B) Whether the project proponent is eligible to request a line 32 building permit for the project, and if so, the date when it became line 33 eligible.
line 34 (C) Whether the project proponent has obtained final approval line 35 or certification that the housing development is habitable, such as line 36 a certificate of occupancy, and if so, the date when it was obtained. line 37 (4) Once committed to a specific project, funds shall remain line 38 available for e xpenditure for an additional fiv e years, unless an line 39 extension is authorized pursuant to paragraph (5). 93 SB 1105 — 49 —
line 1 (5) If the funds ha ve not been e xpended within fiv e years of line 2 receipt as required in paragraph (4), the project sponsor shall show line 3 that it has made adequate progress towards completing the project. line 4 If the board finds adequate progress has been made, the board shall line 5 authorize an additional 24 months to grant entitlements to the line 6 remainder of the project. If the board does not find that the project line 7 sponsor has made adequate progress, the funds shall be transferred line 8 to the agenc y. The agency shall hold the funds until the project line 9 sponsor submits a plan satisfactory to the agency to move forward line 10 with the project or allocate funds to another qualified project line 11 consistent with the annual expenditure plan.
line 12 (6) For purposes of this subdivision, “adequate progress” means line 13 the project has recei ved the land use appro vals or entitlements line 14 necessary for at least 75 percent of the project’s units. line 15 62881. (a) In order to remain eligible for direct allocations, line 16 local jurisdiction shall meet the following conditions:
line 17 (1) The jurisdiction agrees to adopt and adhere to agenc y line 18 financing policies and guidelines, including public eng agement line 19 and notice provisions outlined in this title.
line 20 (2) All funded projects are in compliance with the agenc y’s line 21 eligible uses and affordability requirements.
line 22 (3) The jurisdiction agrees to allocate its funding within 12 line 23 months through administrative processes without being subject to line 24 additional legislative process.
line 25 (4) The jurisdiction is in compliance with Affirmatively line 26 Furthering Fair Housing in California guidelines. line 27 (b) If a local jurisdiction is found to be out of compliance with line 28 affordability targets at the end of a three-year period, the board line 29 may take any of the following actions:
line 30 (1) Limit the funding for the jurisdiction to extremely low and line 31 very lo w income housing units only until compliance is line 32 reestablished.
line 33 (2) Require the funding allocated to the jurisdiction to be line 34 administered by the agency instead of the jurisdiction. line 35 (3) Increase funding incentives as needed to meet project and line 36 programmatic targets.
line 37 62882. The board shall monitor expenditures in coordination line 38 with local jurisdictions. At least once e very fiv e years, the line 39 monitoring shall include a re view of revenues allocated to cities line 40 and the county. The board may adopt guidelines applicable to those 93 — 50 — SB 1105
line 1 funds as deemed necessary to ensure the y are spent in a timely line 2 manner consistent with the goals of this chapter. line 3 62883. To ensure o versight and accountability , the agenc y line 4 shall prepare and submit a performance audit report to the line 5 Legislature every other year, in conformance with Sections 9795 line 6 and 53411 on allocations, expenditures, and performance outcomes line 7 pursuant to Section 62880. The report shall include a description line 8 of projects funded and their status, the households serv ed by line 9 income level, and the extent to which performance metrics meet line 10 or exceed operational benchmarks and the minimum tar gets in line 11 Section 62880 were achieved.
line 12
line 13 Chapter 4. Labor Standards
line 14
line 15 62890. A development project funded by the agency pursuant line 16 to this title shall meet all of the following labor standards:
line 17 (a) The development proponent shall require in contracts with line 18 construction contractors, and shall certify to the agenc y, that the line 19 standards specified in this section will be met in project line 20 construction.
line 21 (b) A development that is not in its entirety a public w ork for line 22 purposes of Chapter 1 (commencing with Section 1720) of Part 7 line 23 of Division 2 of the Labor Code and funded by the agency pursuant line 24 to this title shall be subject to all of the following:
line 25 (1) All construction workers employed in the execution of the line 26 development shall be paid at least the general pre vailing rate of line 27 per diem w ages for the type of w ork and geographic area, as line 28 determined by the Director of Industrial Relations pursuant to line 29 Sections 1773 and 1773.9 of the Labor Code, e xcept that line 30 apprentices registered in programs appro ved by the Chief of the line 31 Division of Apprenticeship Standards may be paid at least the line 32 applicable apprentice prevailing rate.
line 33 (2) The development proponent shall ensure that the prevailing line 34 wage requirement is included in all contracts for the performance line 35 of the work for those portions of the de velopment that are not a line 36 public work.
line 37 (3) All contractors and subcontractors for those portions of the line 38 development that are not a public work shall comply with both of line 39 the following:
93 SB 1105 — 51 —
line 1 (A) Pay to all construction workers employed in the execution line 2 of the work at least the general prevailing rate of per diem wages, line 3 except that apprentices re gistered in programs appro ved by the line 4 Chief of the Division of Apprenticeship Standards may be paid at line 5 least the applicable apprentice prevailing rate. line 6 (B) Maintain and v erify payroll records pursuant to Section line 7 1776 of the Labor Code and mak e those records a vailable for line 8 inspection and cop ying as pro vided in that section. This line 9 subparagraph does not apply if all contractors and subcontractors line 10 performing work on the development are subject to a project labor line 11 agreement that requires the payment of pre vailing wages to all line 12 construction workers employed in the execution of the development line 13 and pro vides for enforcement of that oblig ation through an line 14 arbitration procedure. For purposes of this subparagraph, “project line 15 labor agreement” has the same meaning as set forth in paragraph line 16 (1) of subdivision (b) of Section 2500 of the Public Contract Code. line 17 (c) (1) The obligation of the contractors and subcontractors to line 18 pay prevailing wages pursuant to this section may be enforced by line 19 any of the following:
line 20 (A) The Labor Commissioner through the issuance of a ci vil line 21 wage and penalty assessment pursuant to Section 1741 of the Labor line 22 Code, which may be re viewed pursuant to Section 1742 of the line 23 Labor Code, within 18 months after the completion of the line 24 development.
line 25 (B) An underpaid worker through an administrative complaint line 26 or civil action.
line 27 (C) A joint labor-management committee through a civil action line 28 under Section 1771.2 of the Labor Code.
line 29 (2) If a civil wage and penalty assessment is issued pursuant to line 30 this section, the contractor, subcontractor, and surety on a bond or line 31 bonds issued to secure the payment of w ages co vered by the line 32 assessment shall be liable for liquidated damages pursuant to line 33 Section 1742.1 of the Labor Code.
line 34 (3) This subdi vision does not apply if all contractors and line 35 subcontractors performing work on the de velopment are subject line 36 to a project labor agreement that requires the payment of prevailing line 37 wages to all construction w orkers employed in the e xecution of line 38 the development and provides for enforcement of that oblig ation line 39 through an arbitration procedure. For purposes of this subdivision, line 40 “project labor agreement” has the same meaning as set forth in 93 — 52 — SB 1105
line 1 paragraph (1) of subdi vision (b) of Section 2500 of the Public line 2 Contract Code.
line 3 (d) Notwithstanding subdivision (c) of Section 1773.1 of the line 4 Labor Code, the requirement that employer payments not reduce line 5 the obligation to pay the hourly straight time or o vertime wages line 6 found to be pre vailing does not apply to those portions of the line 7 development that are not a public work if otherwise provided in a line 8 bona fide collective bargaining agreement covering the worker. line 9 (e) The requirement of this section to pay at least the general line 10 prevailing rate of per diem w ages does not preclude use of an line 11 alternative workweek schedule adopted pursuant to Section 511 line 12 or 514 of the Labor Code.
line 13 62891. (a) Before placement of The agency shall not place a line 14 measure on the ballot to raise revenue for the agency, the agency line 15 shall enter agency unless the a gency has entered into a specific line 16 countywide project labor agreement with the San Die go County line 17 Building and Construction Trades Council and the San Die go line 18 Housing Federation. that will co ver all construction and line 19 rehabilitation work to be funded or financed by the ballot measure. line 20 As a condition of r eceiving funding or financing fr om the ballot line 21 measure, the r ecipient must become a party to the countywide line 22 project labor agreement. The agency shall not undertake, fund, or line 23 finance other projects that involve construction or rehabilitation line 24 work unless the agency has entered into a project labor agreement line 25 with the San Die go County Building and Construction Trades line 26 Council that will cover those projects. As a condition of receiving line 27 funding or financing from the agency, the recipient must become line 28 a party to that project labor agreement.
line 29 (b) For purposes of this section, “project labor agreement” has line 30 the same meaning as set forth in paragraph (1) of subdivision (b) line 31 of Section 2500 of the Public Contract Code.
line 32 (c) This chapter shall not apply to ne w construction or line 33 preservation projects in which the project contains four units or line 34 fewer. This exemption specifically includes, but is not limited to, line 35 single-family homeowner properties and accessory dwelling units. line 36 units if the project includes four units or fewer. line 37 SEC. 2. The Legislature finds and declares that a special statute line 38 is necessary and that a general statute cannot be made applicable line 39 within the meaning of Section 16 of Article IV of the California line 40 Constitution because of the uniquely severe shortage of available 93 SB 1105 — 53 —
line 1 funding and resources for the de velopment and preserv ation of line 2 affordable housing and the particularly acute nature of the housing line 3 crisis within San Diego County.
line 4 SEC. 3. No reimbursement is required by this act pursuant to line 5 Section 6 of Article XIIIB of the California Constitution for certain line 6 costs that may be incurred by a local agenc y or school district line 7 because, in that regard, this act creates a new crime or infraction, line 8 eliminates a crime or infraction, or changes the penalty for a crime line 9 or infraction, within the meaning of Section 17556 of the line 10 Government Code, or changes the definition of a crime within the line 11 meaning of Section 6 of Article XIII B of the California line 12 Constitution.
line 13 However, if the Commission on State Mandates determines that line 14 this act contains other costs mandated by the state, reimbursement line 15 to local agencies and school districts for those costs shall be made line 16 pursuant to Part 7 (commencing with Section 17500) of Division line 17 4 of Title 2 of the Government Code.
O
93 — 54 — SB 1105