Infill Incentive Grant Program of 2007.

Existing law establishes the Infill Incentive Grant Program of 2007 to be administered by the Department of Housing and Community Development and, upon appropriation by the Legislature, requires the department to establish and administer a competitive grant program to allocate funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area, as defined. Existing law requires the department to adopt guidelines for the operation of the grant program, and requires the guidelines to include provisions for the reversion of grant awards that are not encumbered within 4 years of the fiscal year in which an award was made. The Budget Act of 2009 appropriates $190,000,000 for local assistance to the department from the Regional Planning, Housing and Infill Incentive Account of 2006, and requires that the funds appropriated be available for liquidation of encumbrances until June 30, 2014. The Budget Act of 2007 appropriates $300,000,000 for local assistance to the department payable from the Regional Planning, Housing and Infill Incentive Account, and requires the funds appropriated to be available for liquidation of encumbrances until June 30, 2012. Existing law requires a redevelopment agency, for the 2009–10 fiscal year, to remit a specified amount of funds, as determined by the Director of Finance, to the county auditor for deposit in the Supplemental Educational Revenue Augmentation Fund within the county treasury prior to May 10, 2010. This bill would require the department, with respect to grant awards affected by the requirement that a redevelopment agency remit a specified amount of funds, to include guidelines, among the adopted guidelines, for the reversion of grant awards that are not encumbered within a reasonable period of time, to be determined by the department. The bill would also revise the Budget Act of 2009 and the Budget Act of 2007 to require the department, with respect to grant awards affected by the requirement that a redevelopment agency remit a specified amount of funds, to develop guidelines for the reversion of grant awards that are not encumbered within a reasonable period of time, to be determined by the department.