Redevelopment: pooled housing funds.

The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in blighted areas in those communities known as project areas. Section 16 of Article XVI of the California Constitution authorizes a redevelopment agency to receive funding through tax increments attributable to increases in assessed property tax valuation of property in a project area due to redevelopment. Not less than 20% of tax increments generated from a project area are required to be used by a redevelopment agency to increase and improve the community's supply of low- and moderate-income housing. This bill would authorize contiguous agencies located within adjoining cities in a metropolitan statistical area to create and participate in a joint powers authority in order to pool their housing funds to pay for the direct costs of constructing, substantially rehabilitating, and preserving the affordability of housing units affordable to extremely low income persons or households, as defined. The bill would require that specified terms and conditions be set forth in a mutually binding contract between the joint powers authority and each participating agency and a receiving entity for the use and transfer of pooled housing funds. The bill would also require that pooled housing funds be spent within a project area of a participating agency and would also prohibit the creation of a new joint project funded pursuant to its provisions on or after January 1, 2020.