33485-33489

HEALTH AND SAFETY CODE
SECTION 33485-33489




33485.  The Legislature finds and declares that the provisions of
this part, which require that taxes allocated pursuant to Section 16
of Article XVI of the California Constitution and Section 33670 be
applied to the project area in which those taxes are generated, are
designed to assure (1) that project areas are terminated when the
redevelopment of those areas has been completed and (2) that the
increased revenues that result from redevelopment accrue to the
benefit of affected taxing jurisdictions at the completion of
redevelopment activities in a project area. Mergers of project areas
are desirable as a matter of public policy if they result in
substantial benefit to the public and if they contribute to the
revitalization of blighted areas through the increased economic
vitality of those areas and through increased and improved housing
opportunities in or near such areas. The Legislature further finds
and declares that it is necessary to enact a statute that sets out
uniform statewide standards for merger of project areas to assure
that those mergers serve a vital public purpose.



33486.  (a) For the purpose of allocating taxes pursuant to Section
33670 and subject to the provisions of this article, redevelopment
project areas under the jurisdiction of a redevelopment agency for
which redevelopment plans have been adopted pursuant to Article 5
(commencing with Section 33360), may be merged, without regard to
contiguity of the areas, by the amendment of each affected
redevelopment plan as provided in Article 12 (commencing with Section
33450). Before adopting the ordinance amending each affected
redevelopment plan, the legislative body shall find, based on
substantial evidence, that both of the following conditions exist:
   (1) Significant blight remains within one of the project areas.
   (2) This blight cannot be eliminated without merging the project
areas and the receipt of property taxes.
   (b) (1) Except as provided in paragraph (2), taxes attributable to
each project area merged pursuant to this section that are allocated
to the redevelopment agency pursuant to Section 33670 may be
allocated to the entire merged project area for the purpose of paying
the principal of, and interest on, indebtedness incurred by the
redevelopment agency to finance or refinance, in whole or in part,
the merged redevelopment project.
   (2) If the redevelopment agency has, prior to merger of
redevelopment project areas, incurred any indebtedness on account of
a constituent project area so merged, taxes attributable to that area
that are allocated to the agency pursuant to Section 33670 shall be
first used to comply with the terms of any bond resolution or other
agreement pledging the taxes from the constituent project area.
   (c) After the merger of redevelopment projects pursuant to
subdivision (a), the clerk of the legislative body shall transmit a
copy of the ordinance amending the plans for projects to be merged to
the governing body of each of the taxing agencies that receives
property taxes from or levies property taxes upon any property in the
project.



33487.  (a) Subject to subdivisions (a) and (b) of Section 33486,
not less than 20 percent of all taxes that are allocated to the
redevelopment agency pursuant to Section 33670 for redevelopment
projects merged pursuant to this article, irrespective of the date of
adoption of the final redevelopment plans, shall be deposited by the
agency in the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3, or which shall be established for
purposes of this section. The agency shall use the moneys in this
fund to assist in the construction or rehabilitation of housing units
that will be available to, or occupied by, persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105, for the longest
feasible time period but not less than 55 years for rental units and
45 years for owner-occupied units. For the purposes of this
subdivision, "construction and rehabilitation" shall include
acquisition of land, improvements to land; the acquisition,
rehabilitation, or construction of structures; or the provision of
subsidies necessary to provide housing for persons and families of
low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105.
   (b) The agency may use the funds set aside by subdivision (a)
inside or outside the project area. However, the agency may only use
these funds outside the project area upon a resolution of the agency
and the legislative body that the use will be of benefit to the
project. This determination by the agency and the legislative body
shall be final and conclusive as to the issue of benefit to the
project area. The Legislature finds and declares that the provision
of replacement housing pursuant to Section 33413 is of benefit to a
project.
   The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
   (c) If moneys deposited in the Low and Moderate Income Housing
Fund pursuant to this section have not been committed for the
purposes specified in subdivisions (a) and (b) for a period of six
years following deposit in that fund, the agency shall offer these
moneys to the housing authority that operates within the jurisdiction
of the agency, if activated pursuant to Section 34240, for the
purpose of constructing or rehabilitating housing as provided in
subdivisions (a) and (b). However, if no housing authority operates
within the jurisdiction of the agency, the agency may retain these
moneys for use pursuant to this section.
   (d) If the agency deposits less than 20 percent of taxes allocated
pursuant to Section 33670, due to the provisions of subdivisions (a)
and (b) of Section 33486, in any fiscal year, a deficit shall be
created in the Low and Moderate Income Housing Fund in an amount
equal to the difference between 20 percent of the taxes allocated
pursuant to Section 33670 and the amount deposited in that year. The
deficit, if any, created pursuant to this section constitutes an
indebtedness of the project. The agency shall eliminate the deficit
by expending taxes allocated in years subsequent to creation of the
deficit and, until the time when that deficit has been eliminated, an
agency shall not incur new obligations for purposes other than those
set forth in Section 33487, except to comply with the terms of any
resolution or other agreement pledging taxes allocated pursuant to
Section 33670 that existed on the date of merger pursuant to this
article.
   (e) Notwithstanding subdivision (d) of Section 33413, any agency
that merges its redevelopment project areas pursuant to this article
shall be subject to subdivisions (a) and (c) of Section 33413.



33488.  Prior to merging project areas pursuant to Section 33486, a
redevelopment agency shall notify the department of its intention to
merge its project areas, which shall occur no later than 30 days
prior to adoption of the ordinance which provides for merger.



33489.  (a) Except as provided in subdivision (b), this article
shall be exclusive authority for merger of redevelopment project
areas on and after January 1, 1981. However, project areas merged
prior to January 1, 1981, pursuant to other provisions of this
chapter shall continue to be governed by such provisions.
   (b) If Assembly Bill No. 3300 of the 1979-80 Regular Session is
chaptered and becomes effective and adds Article 14.5 (commencing
with Section 33478) to this chapter relating to the merger of project
areas within the City of Richmond, any such project merger within
the City of Richmond may be conducted either under this article or
alternatively pursuant to the provisions of Article 14.5 (commencing
with Section 33478).