(a) (1) At any time before or after adoption of the plan, any city, county, or special district, other than a school entity as defined in subdivision (n) of Section 95 of the Revenue and Taxation Code or a successor agency as defined in subdivision (j) of Section 34171, that receives ad valorem property taxes from property located within an area may adopt a resolution directing the county auditor-controller to allocate its share of property tax increment within the area covered by the plan to the authority. The resolution adopted pursuant to this subdivision may direct the county auditor-controller to allocate less than the full amount of the property tax increment, and to establish a maximum amount of time in years that the allocation takes place. These amounts shall be allocated to the authority and, when collected, shall be held in a separate fund by the authority. Before adopting a resolution pursuant to this subdivision, a city, county, or special district shall approve a memorandum of understanding with the authority governing the use of property tax increment funds by the authority for administrative and overhead expenses.
(2) The provision for the receipt of property tax increment shall become effective in the property tax year that begins after the December 1 immediately following the adoption of a resolution pursuant paragraph (1). A resolution adopted pursuant to paragraph (1) shall be provided to the county auditor-controller no later than the December 1 immediately following its adoption.
(3) A resolution adopted pursuant to this subdivision may be repealed and be of no further effect beginning in the fiscal year following the adoption of any repeal, by giving the county auditor-controller at least 90 days’ notice prior to the end of the current fiscal year, provided, however, that the county auditor-controller shall continue to allocate the taxing entity’s share of ad valorem property taxes that have been pledged to the repayment of debt issued by the authority to the authority until that debt has been fully repaid, including by means of a refinancing or refunding, unless otherwise agreed upon by the authority and the taxing entity. For purposes of determining the annual amount of a taxing entity’s share of ad valorem property taxes that shall continue to be allocated to an authority following a repeal, the annual amount allocated for all years until the debt has been fully repaid shall be the maximum amount required to service the debt for any single annual period as provided in the authority’s debt service schedule.
(4) When the loans, advances, and indebtedness of an authority, if any, and interest thereon, have been paid, or the maximum amount of time in years has passed in accordance with a resolution adopted pursuant to this subdivision, all funds thereafter received from taxes upon the taxable property in the authority’s boundaries shall be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
(5) All of the taxes levied and collected upon the taxable property in the boundaries of the authority shall be paid into the funds of the respective taxing agencies as though the authority had not been created unless the total assessed valuation of the taxable property in the boundaries of an authority exceeds the total assessed value of the taxable property in the boundaries as shown by the last equalized assessment roll.
(b) (1) At any time before or after the adoption of the plan, a city, county, or special district, other than a school entity as defined in subdivision (n) of Section 95 of the Revenue and Taxation Code or a successor agency as defined in subdivision (j) of Section 34171, may adopt a resolution to allocate tax revenues of that entity to the authority, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed pursuant to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of the Revenue and Taxation Code), provided that both of the following apply:
(A) The use of those revenues by the authority for purposes of this division is consistent with the purposes for which that tax was imposed.
(B) The boundaries of the authority are coterminous with the city or county that established the authority.
(2) A resolution adopted pursuant to this subdivision may be repealed and be of no further effect, provided, however, that the tax revenues allocated to the authority that have been pledged to the repayment of debt issued by the authority shall continue to be so allocated until that debt has been fully repaid, including by means of a refinancing or refunding, unless otherwise agreed upon by the authority and the taxing entity.
(c) A minimum of 95 percent of the allocated property tax increment revenues pursuant to subdivision (a), and allocated tax revenues pursuant to subdivision (b), shall be used to increase, improve, and preserve the community’s supply of housing for low, very low, and moderate-income households. Not more than 5 percent of allocated revenues may be used for administration.
(d) Housing funds expended by an authority shall be spent in one of the following ways:
(1) All housing funds expended in proportion to the share of the regional housing need allocated to the city, county, or city and county for each income category pursuant to Section 65584 for low, very low, and moderate-income housing.
(2) All housing funds expended for the development of very low income housing.
(3) All housing funds expended for one or more of the following activities:
(A) Rehabilitation, expansion, or construction of one or more of the following:
(i) An emergency shelter, as defined in subdivision (e) of Section 50801 of the Health and Safety Code.
(ii) Supportive housing, as defined in subdivision (b) of Section 50675.14 of the Health and Safety Code.
(iii) Transitional housing, as defined in subdivision (h) of Section 50675.2 or subdivision (i) of Section 50801 of the Health and Safety Code.
(B) (i) Not more than 5 percent of all housing funds may be used for ancillary services and assistance.
(ii) An authority shall not use the proceeds of bonds for the purposes specified in clause (i).
(C) Any activity authorized by paragraph (2) or (7) of subdivision (a) of Section 50803 of the Health and Safety Code.
(4) All housing funds expended for the development of very low income housing and one or more of the activities listed in paragraph (3).
(e) Prior to distributing property tax increment to the authority, the county auditor-controller shall deduct any costs incurred by the county in administering the provisions of this division.
(f) This section shall not be construed to do any of the following:
(1) Reduce any allocations of excess, additional, or remaining funds that would otherwise have been allocated to county superintendents of schools, cities, counties, and cities and counties pursuant to clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Sections 97.3, or Article 4 (commencing with Section 98) of Chapter 6 of Part 0.5 of Division 1, of the Revenue and Taxation Code had this section not been enacted.
(2) Alter in any way the manner in which ad valorem property tax revenue is allocated among taxing entities in a county that have not passed a resolution pursuant to subdivision (a).
(3) Alter in any way the manner in which ad valorem property tax revenue growth from fiscal year to fiscal year is otherwise determined or allocated in a county.
(4) Alter in any way the ad valorem property tax revenue allocations required under Article 4 (commencing with Section 98) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code.
(5) Alter in any way the calculations performed pursuant to Section 95.3 of the Revenue and Taxation Code.
(6) Alter in any way the manner in which ad valorem property tax revenue is allocated pursuant to Section 75.70 of the Revenue and Taxation Code.
(7) Alter in any way the manner in which calculations are performed pursuant to Section 97.70 of the Revenue and Taxation Code.
(Amended by Stats. 2018, Ch. 862, Sec. 4. (AB 2035) Effective January 1, 2019.)