33600-33608

HEALTH AND SAFETY CODE
SECTION 33600-33608




33600.  An agency may accept financial or other assistance from any
public or private source, for the agency's activities, powers, and
duties, and expend any funds so received for any of the purposes of
this part.


33601.  An agency may borrow money or accept financial or other
assistance from the state or the federal government or any other
public agency for any redevelopment project within its area of
operation, and may comply with any conditions of such loan or grant.
   An agency may borrow money (by the issuance of bonds or otherwise)
or accept financial or other assistance from any private lending
institution for any redevelopment project for any of the purposes of
this part, and may execute trust deeds or mortgages on any real or
personal property owned or acquired.



33602.  "Bonds" means any bonds, notes, interim certificates,
debentures, or other obligations issued by an agency pursuant to
Article 5 (commencing with Section 33640) of this chapter.



33603.  An agency may invest any money held in reserves or sinking
funds, or any money not required for immediate disbursement, in
property or securities in which savings banks may legally invest
money subject to their control.


33604.  If an agency ceases to function, any surplus funds existing
after payment of all its obligations and indebtedness shall vest in
the community.


33605.  In connection with the issuance and sale of preliminary loan
notes, secured by a requisition agreement with the United States of
America, the agency may delegate to one or more of its agents or
employees the powers or duties it deems proper.



33606.  An agency shall adopt an annual budget containing all of the
following specific information, including all activities to be
financed by the Low and Moderate Income Housing Fund established
pursuant to Section 33334.3:
   (a) The proposed expenditures of the agency.
   (b) The proposed indebtedness to be incurred by the agency.
   (c) The anticipated revenues of the agency.
   (d) The work program for the coming year, including goals.
   (e) An examination of the previous year's achievements and a
comparison of the achievements with the goals of the previous year's
work program.
   The annual budget may be amended from time to time as determined
by the agency. All expenditures and indebtedness of the agency shall
be in conformity with the adopted or amended budget.
   When the legislative body is not the redevelopment agency, the
legislative body shall approve the annual budget and amendments of
the annual budget of the agency.


33607.  A county may require a community redevelopment agency to
reimburse the county for any expenses incurred by the county in
performing any of the services required to be performed by the county
for the redevelopment agency pursuant to Sections 33670, 33675, and
33676 for a project area as to which no payments are made by the
agency to the county in accordance with subdivision (b) of Section
33401 and no agreement has been entered into and either of the
following situations exist:
   (a)  A final redevelopment plan for the project area is adopted on
or after January 1, 1986.
   (b)  A final redevelopment plan for the project area was adopted
prior to January 1, 1986, but its boundaries are changed on or after
January 1, 1986, to add land to, or to exclude land from, the project
area. However, in the case of a project area which changes its
boundaries on or after January 1, 1986, to add land to the project
area, the reimbursement shall relate only to expenses incurred by the
county with respect to the added area.


33607.5.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan which contains
the provisions required by Section 33670, is either: (A) adopted on
or after January 1, 1994, including later amendments to these
redevelopment plans; or (B) adopted prior to January 1, 1994, but
amended, after January 1, 1994, to include new territory. For plans
amended after January 1, 1994, only the tax increments from territory
added by the amendment shall be subject to this section. All the
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received
by the agency in the applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes each affected
taxing entity, including the community, receives during the fiscal
year the funds are allocated, which percentage share shall be
determined without regard to any amounts allocated to a city, a city
and county, or a county pursuant to Sections 97.68 and 97.70 of the
Revenue and Taxation Code, and without regard to any allocation
reductions to a city, a city and county, a county, a special
district, or a redevelopment agency pursuant to Sections 97.71,
97.72, and 97.73 of the Revenue and Taxation Code and Section
33681.12. The agency shall reduce its payments pursuant to this
section to an affected taxing entity by any amount the agency has
paid, directly or indirectly, pursuant to Section 33445, 33445.5,
33445.6, 33446, or any other provision of law other than this section
for, or in connection with, a public facility owned or leased by
that affected taxing agency, except: (A) any amounts the agency has
paid directly or indirectly pursuant to an agreement with a taxing
entity adopted prior to January 1, 1994; or (B) any amounts that are
unrelated to the specific project area or amendment governed by this
section. The reduction in a payment by an agency to a school
district, community college district, or county office of education,
or for special education, shall be subtracted only from the amount
that otherwise would be available for use by those entities for
educational facilities pursuant to paragraph (4). If the amount of
the reduction exceeds the amount that otherwise would have been
available for use for educational facilities in any one year, the
agency shall reduce its payment in more than one year.
   (3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
   (A) Determine the amount of the total payment that would have been
made without the reduction.
   (B) Determine the amount of the total payment without the
reduction which: (i) would have been considered property taxes; and
(ii) would have been available to be used for educational facilities
pursuant to paragraph (4).
   (C) Reduce the amount available to be used for educational
facilities.
   (D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
   (4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, and 56.7 percent shall not be considered to be
property taxes for the purposes of that section and shall be
available to be used for educational facilities.
   (B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities.
   (C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, and 81 percent
shall not be considered to be property taxes for the purposes of that
section and shall be available to be used for educational
facilities.
   (D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities.
   (E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
   (5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of the portion of tax increments received by the agency,
which shall be calculated by applying the tax rate against the amount
of assessed value by which the current year assessed value exceeds
the first adjusted base year assessed value. The first adjusted base
year assessed value is the assessed value of the project area in the
10th fiscal year in which the agency receives tax increment revenues.
   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivisions (b) and (c) and after deducting the amount
allocated to the Low and Moderate Income Housing Fund, an amount
equal to 14 percent of the portion of tax increments received by the
agency, which shall be calculated by applying the tax rate against
the amount of assessed value by which the current year assessed value
exceeds the second adjusted base year assessed value. The second
adjusted base year assessed value is the assessed value of the
project area in the 30th fiscal year in which the agency receives tax
increments.
   (e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds or other indebtedness the amount
required to be paid to an affected taxing entity by this section,
provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
   (2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
   (3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
   (f) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
   (2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected taxing entities, or to pay for
public facilities that will be owned or leased to an affected taxing
entity.
   (g) As used in this section, a "local education agency" is a
school district, a community college district, or a county office of
education.


33607.7.  (a) This section shall apply to a redevelopment plan
amendment for any redevelopment plans adopted prior to January 1,
1994, that increases the limitation on the number of dollars to be
allocated to the redevelopment agency or that increases, or
eliminates pursuant to paragraph (1) of subdivision (e) of Section
33333.6, the time limit on the establishing of loans, advances, and
indebtedness established pursuant to paragraphs (1) and (2) of
subdivision (a) of Section 33333.6, as those paragraphs read on
December 31, 2001, or that lengthens the period during which the
redevelopment plan is effective if the redevelopment plan being
amended contains the provisions required by subdivision (b) of
Section 33670. However, this section shall not apply to those
redevelopment plans that add new territory.
   (b) If a redevelopment agency adopts an amendment that is governed
by the provisions of this section, it shall pay to each affected
taxing entity either of the following:
   (1) If an agreement exists that requires payments to the taxing
entity, the amount required to be paid by an agreement between the
agency and an affected taxing entity entered into prior to January 1,
1994.
   (2) If an agreement does not exist, the amounts required pursuant
to subdivisions (b), (c), (d), and (e) of Section 33607.5, until
termination of the redevelopment plan, calculated against the amount
of assessed value by which the current year assessed value exceeds an
adjusted base year assessed value. The amounts shall be allocated
between property taxes and educational facilities according to the
appropriate formula in paragraph (3) of subdivision (a) of Section
33607.5. In determining the applicable amount under Section 33607.5,
the first fiscal year shall be the first fiscal year following the
fiscal year in which the adjusted base year value is determined.
   (c) The adjusted base year assessed value shall be the assessed
value of the project area in the year in which the limitation being
amended would have taken effect without the amendment or, if more
than one limitation is being amended, the first year in which one or
more of the limitations would have taken effect without the
amendment. The agency shall commence making these payments pursuant
to the terms of the agreement, if applicable, or, if an agreement
does not exist, in the first fiscal year following the fiscal year in
which the adjusted base year value is determined.



33607.8.  (a) Notwithstanding any other provision of law, a
redevelopment agency may make payments from tax increment funds to an
affected taxing entity that is a state water supply contractor in
accordance with both of the following requirements:
   (1) The payment shall not exceed the amount that, but for the
activities of the redevelopment agency, otherwise would have been
received by the affected taxing entity pursuant to a tax that was
originally approved by the state's voters prior to July 1, 1978.
   (2) The payments shall be made for the purpose of funding the
payments of the state water supply contractor pursuant to its water
supply contract with the Department of Water Resources for the costs
of building, operating, maintaining, and replacing the State Water
Resources Development System.
   (b) Allocations made by a redevelopment agency for payments made
pursuant to subdivision (a) shall not cause any reduction in payments
to an affected taxing entity pursuant to paragraph (2) of
subdivision (a) of Section 33607.5.
   (c) For purposes of this section:
   (1) "State Water Resources Development System" has the same
meaning as used in Section 12931 of the Water Code.
   (2) "State water supply contractor" has the same meaning as used
in Section 11975 of the Water Code.



33608.  (a) All acts and proceedings heretofore or hereafter taken
under color of law by a charter city meeting the criteria of
subdivision (g) and its redevelopment agency in a county with a
population over 4,000,000 with respect to a reimbursement agreement
executed pursuant to Section 33445 of the Health and Safety Code
dated July 7, 1986, and as amended as of July 13, 1987, are hereby
confirmed, validated, and declared legally effective to the extent
the agreement could have been authorized by the Legislature
initially, except as to limitations imposed by the California and
United States Constitutions. The validation provided by this section
shall be the only determination necessary to satisfy the requirement
of subdivision (e) of Section 33675 of the Health and Safety Code and
those provisions shall not apply to the agreement otherwise. The
Legislature finds and declares that this section is consistent with
existing law and does not conflict with either Article XIII B or
Section 16 of Article XVI of the California Constitution.
   (b) If the commencement of reimbursement of the principal amount
of indebtedness of the agency under an agreement referred to in
subdivision (a), or any predecessor agreement executed pursuant to
Section 33445 of the Health and Safety Code, is delayed beyond 10
years after the date of execution of the agreement for any reason,
the agency and the city may amend or enforce the reimbursement
agreement, or any predecessor thereto, to provide for the payment of
interest. The interest may accrue, as to reimbursement for any
particular property or improvement, from the date of acquisition,
construction, or installation thereof until the date of the
reimbursement agreement and thereafter, until payment of the
principal and interest by the agency. The interest shall be at the
rate specified in the reimbursement agreement, not to exceed the rate
of interest earned by the treasurer of the city on investments of
the city's pooled funds. Subject to that limitation, interest on the
indebtedness may be calculated pursuant to any generally accepted
method of computation, including, without limitation, any method
which allows the compounding of interest monthly or at other
appropriate intervals.
   (c) Reimbursements for any indebtedness under the reimbursement
agreement referred to in subdivision (a) shall be (1) first allocated
for the funding requirements of the fire and police retirement fund
of the city and (2) then deposited into the Low and Moderate Income
Housing Fund of the agency. However, this section shall not be
construed to authorize any reimbursement of indebtedness which is not
permissive under Section 16 of Article XVI of the California
Constitution.
   (d) The reimbursement agreement shall not be amended without the
approval of the Legislature, by statute, and the obligation created
by the reimbursement agreement shall terminate on December 31, 2014.
   (e) In addition to any amounts provided to the city's fire and
police retirement system under the reimbursement agreement, to the
extent permitted by law, the city shall undertake, by ordinance, to
contribute additional moneys from its general fund annually and
transfer assets (including, without limitation, income producing
assets such as parking garages) as necessary and actuarially
appropriate to satisfy its fire and police retirement fund
obligation. When this obligation has been actuarily funded, all
assets contributed pursuant to this section shall revert to the city.
   (f) The obligations created by the reimbursement agreement
specified in subdivision (a) shall be deemed to be existing
obligations for purposes of subdivision (d) of Section 33334.6
incurred by the agency to finance a redevelopment project existing
on, and created prior to, January 1, 1986. The statement of existing
obligations required by subdivision (f) of Section 33334.6 shall be
deemed amended to include the obligations created by this
reimbursement agreement. The agency shall make deposits into the Low
and Moderate Income Housing Fund of the agency in accordance with the
reimbursement agreement. These deposits shall be the only
obligations that the agency shall have to deposit money in the Low
and Moderate Income Housing Fund under subdivision (a) of Section
33334.2 or Section 33334.6, with respect to the project area subject
to the reimbursement agreement, notwithstanding any other provision
of law.
   (g) This section applies to any charter city meeting all of the
following criteria:
   (1) The city's retirement system is part of the city's charter and
was approved by the voters before July 1, 1978.
   (2) The city did not levy a separate ad valorem property tax rate
to support the retirement system in the 1983-84 fiscal year.
   (3) The retirement system provides for a cost-of-living adjustment
which is indexed to a consumer price index and does not limit the
annual increases which may be paid to members after their retirement.
   (4) The retirement system is not currently available to newly
hired fire and police employees and will not be available in the
future.
   (5) Before January 1, 1985, the city unsuccessfully litigated a
limit to the cost-of-living adjustment which may be paid to members
of the retirement system after their retirement.
   (6) The governing body of the city has, by resolution, elected to
make this section applicable to it. This election shall be final and
binding and may not be revoked for any reason.
   (h) "Agency," as used in this section, includes a community
development commission exercising the powers of a redevelopment
agency pursuant to Section 34141.