AB 2734: Local Control Affordable Housing Act.

Existing law, effective February 1, 2012, dissolved all redevelopment agencies and community development agencies and provides for the designation of successor agencies, as specified. Existing law requires successor agencies to service the enforceable obligations of the dissolved agencies and otherwise wind down the affairs of the dissolved agencies.

This bill would establish the Local Control Affordable Housing Act to require the Department of Finance, on or before ____ and on or before the same date each year thereafter, to determine the state General Fund savings for the fiscal year as a result of the dissolution of redevelopment agencies. The bill would provide that, upon appropriation, 50% of that amount or $1,000,000,000, whichever is greater, less, be allocated to the Department of Housing and Community Development to provide funding Development. The bill would require the department to retain ¹/₂ of these funds for state level programs and to provide the other ¹/₂ to local agencies for housing purposes, except as specified. The bill would require the Department of Housing and Community Development to create an equitable funding formula, formula for funding distributed to local agencies, which shall the bill would require to be geographically balanced and shall take into account factors of need including, but not limited to, poverty rates and lack of supply of affordable housing for persons of low and moderate incomes in local jurisdictions. The bill would also specify the housing purposes for which those funds may be used.