Redevelopment: successor agencies: Low and Moderate Income Housing Asset Fund.

Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform duties required by any enforceable obligation. Existing law authorizes the city, county, or city and county that created a former redevelopment agency to elect to retain the housing assets and functions previously performed by the former redevelopment agency. Existing law requires the housing successor to maintain any funds transferred to it, together with any funds generated from housing assets in a separate Low and Moderate Income Housing Asset Fund to be used in accordance with applicable housing-related provisions of the Community Redevelopment Law, except as specified. Existing law requires the housing successor to expend funds received from the successor agency to meet its enforceable obligations, and for specified administrative and monitoring costs relating to ensuring the long-term affordability of units subject to affordability restrictions. Existing law authorizes a housing successor, if it has fulfilled specified obligations regarding the replacement of dwelling units, to expend up to $250,000 per fiscal year for homeless prevention and rapid rehousing services, including the provision of short-term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, and housing relocation and stabilization services. This bill would increase the amount that a housing successor may expend per year on those homeless prevention and rapid rehousing services to $500,000, plus any percentage change in the cost of living, as defined. The bill would require the Department of Housing and Community Development to publish on its internet website an adjustment to the amount that may be expended by a housing successor to reflect any percentage change in the cost of living. Existing law authorizes 2 or more housing successors within a county to enter into an agreement to transfer funds among their respective Low and Moderate Income Housing Asset Funds for the sole purpose of developing specified projects, including transit priority projects, permanent supportive housing, housing for agricultural employees, or regional homeless shelters, if certain conditions are met. Existing law prohibits a housing successor from transferring more than $1,000,000 per fiscal year under these provisions. Existing law requires transferred funds to only assist rental units affordable to, and occupied by, households earning 60% or less of the area median income. This bill would additionally authorize a housing successor that receives a transfer of funds under these provisions to spend a maximum of $1,000,000 per fiscal year from its Low and Moderate Income Housing Asset Fund for the specific project identified in the agreement between the jurisdictions. The bill would also authorize the use of transferred and host funds to assist a regional homeless shelter.