AB 346: Redevelopment: housing successor: 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. The housing successor may then expend a specified amount per fiscal year for homeless prevention and rapid rehousing services, including specified types of services described in that provision, and must use all funds remaining thereafter for the development of affordable housing, as specified.

This bill would expand the specified types of services included within permissible homeless prevention and rapid rehousing services to include contributions toward the construction of local or regional homeless shelters.

Existing law authorizes 2 or more of specified types of housing successors to transfer funds among their respective low and moderate income housing asset funds for the sole purpose of financing specified types of projects, if certain conditions are met.

This bill would add a regional homeless shelter to the list of projects for which those types of housing successors may finance by transferring funds among their respective low and moderate income housing asset funds.