HEALTH AND SAFETY CODE
SECTION 34172-34176
34172. (a) (1) All redevelopment agencies and redevelopment agency
components of community development agencies created under Part 1
(commencing with Section 33000), Part 1.5 (commencing with Section
34000), Part 1.6 (commencing with Section 34050), and Part 1.7
(commencing with Section 34100) that were in existence on the
effective date of this part are hereby dissolved and shall no longer
exist as a public body, corporate or politic. Nothing in this part
dissolves or otherwise affects the authority of a community
redevelopment commission, other than in its authority to act as a
redevelopment agency, in its capacity as a housing authority or for
any other community development purpose of the jurisdiction in which
it operates. For those other nonredevelopment purposes, the community
development commission derives its authority solely from federal or
local laws, or from state laws other than the Community Redevelopment
Law (Part 1 (commencing with Section 33000)).
(2) A community in which an agency has been dissolved under this
section may not create a new agency pursuant to Part 1 (commencing
with Section 33000), Part 1.5 (commencing with Section 34000), Part
1.6 (commencing with Section 34050), or Part 1.7 (commencing with
Section 34100). However, a community in which the agency has been
dissolved and the successor entity has paid off all of the former
agency's enforceable obligations may create a new agency pursuant to
Part 1 (commencing with Section 33000), Part 1.5 (commencing with
Section 34000), Part 1.6 (commencing with Section 34050), or Part 1.7
(commencing with Section 34100), subject to the tax increment
provisions contained in Chapter 3.5 (commencing with Section 34194.5)
of Part 1.9 (commencing with Section 34192).
(b) All authority to transact business or exercise powers
previously granted under the Community Redevelopment Law (Part 1
(commencing with Section 33000) is hereby withdrawn from the former
redevelopment agencies.
(c) Solely for purposes of Section 16 of Article XVI of the
California Constitution, the Redevelopment Property Tax Trust Fund
shall be deemed to be a special fund of the dissolved redevelopment
agency to pay the principal of and interest on loans, moneys advanced
to, or indebtedness, whether funded, refunded, assumed, or otherwise
incurred by the redevelopment agency to finance or refinance, in
whole or in part, the redevelopment projects of each redevelopment
agency dissolved pursuant to this part.
(d) Revenues equivalent to those that would have been allocated
pursuant to subdivision (b) of Section 16 of Article XVI of the
California Constitution shall be allocated to the Redevelopment
Property Tax Trust Fund of each successor agency for making payments
on the principal of and interest on loans, and moneys advanced to or
indebtedness incurred by the dissolved redevelopment agencies.
Amounts in excess of those necessary to pay obligations of the former
redevelopment agency shall be deemed to be property tax revenues
within the meaning of subdivision (a) of Section 1 of Article XIII A
of the California Constitution.
34173. (a) Successor agencies, as defined in this part, are hereby
designated as successor entities to the former redevelopment
agencies.
(b) Except for those provisions of the Community Redevelopment Law
that are repealed, restricted, or revised pursuant to the act adding
this part, all authority, rights, powers, duties, and obligations
previously vested with the former redevelopment agencies, under the
Community Redevelopment Law, are hereby vested in the successor
agencies.
(c) (1) Where the redevelopment agency was in the form of a joint
powers authority, and where the joint powers agreement governing the
formation of the joint powers authority addresses the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part and each shall have a share of assets and liabilities based
on the provisions of the joint powers agreement.
(2) Where the redevelopment agency was in the form of a joint
powers authority, and where the joint powers agreement governing the
formation of the joint powers authority does not address the
allocation of assets and liabilities upon dissolution of the joint
powers authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part, a proportionate share of the assets and liabilities shall
be based on the assessed value in the project areas within each
entity's jurisdiction, as determined by the county assessor, in its
jurisdiction as compared to the assessed value of land within the
boundaries of the project areas of the former redevelopment agency.
(d) (1) A city, county, city and county, or the entities forming
the joint powers authority that authorized the creation of each
redevelopment agency may elect not to serve as a successor agency
under this part. A city, county, city and county, or any member of a
joint powers authority that elects not to serve as a successor agency
under this part must file a copy of a duly authorized resolution of
its governing board to that effect with the county auditor-controller
no later than one month prior to the effective date of this part.
(2) The determination of the first local agency that elects to
become the successor agency shall be made by the county
auditor-controller based on the earliest receipt by the county
auditor-controller of a copy of a duly adopted resolution of the
local agency's governing board authorizing such an election. As used
in this section, "local agency" means any city, county, city and
county, or special district in the county of the former redevelopment
agency.
(3) If no local agency elects to serve as a successor agency for a
dissolved redevelopment agency, a public body, referred to herein as
a "designated local authority" shall be immediately formed, pursuant
to this part, in the county and shall be vested with all the powers
and duties of a successor agency as described in this part. The
Governor shall appoint three residents of the county to serve as the
governing board of the authority. The designated local authority
shall serve as successor agency until a local agency elects to become
the successor agency in accordance with this section.
(e) The liability of any successor agency, acting pursuant to the
powers granted under the act adding this part, shall be limited to
the extent of the total sum of property tax revenues it receives
pursuant to this part and the value of assets transferred to it as a
successor agency for a dissolved redevelopment agency.
34174. (a) Solely for the purposes of Section 16 of Article XVI of
the California Constitution, commencing on the effective date of this
part, all agency loans, advances, or indebtedness, and interest
thereon, shall be deemed extinguished and paid; provided, however,
that nothing herein is intended to absolve the successor agency of
payment or other obligations due or imposed pursuant to the
enforceable obligations; and provided further, that nothing in the
act adding this part is intended to be construed as an action or
circumstance that may give rise to an event of default under any of
the documents governing the enforceable obligations.
(b) Nothing in this part, including, but not limited to, the
dissolution of the redevelopment agencies, the designation of
successor agencies, and the transfer of redevelopment agency assets
and properties, shall be construed as a voluntary or involuntary
insolvency of any redevelopment agency for purposes of the indenture,
trust indenture, or similar document governing its outstanding
bonds.
34175. (a) It is the intent of this part that pledges of revenues
associated with enforceable obligations of the former redevelopment
agencies are to be honored. It is intended that the cessation of any
redevelopment agency shall not affect either the pledge, the legal
existence of that pledge, or the stream of revenues available to meet
the requirements of the pledge.
(b) All assets, properties, contracts, leases, books and records,
buildings, and equipment of the former redevelopment agency are
transferred on October 1, 2011, to the control of the successor
agency, for administration pursuant to the provisions of this part.
This includes all cash or cash equivalents and amounts owed to the
redevelopment agency as of October 1, 2011.
34176. (a) The city, county, or city and county that authorized the
creation of a redevelopment agency may elect to retain the housing
assets and functions previously performed by the redevelopment
agency. If a city, county, or city and county elects to retain the
responsibility for performing housing functions previously performed
by a redevelopment agency, all rights, powers, duties, and
obligations, excluding any amounts on deposit in the Low and Moderate
Income Housing Fund, shall be transferred to the city, county, or
city and county.
(b) If a city, county, or city and county does not elect to retain
the responsibility for performing housing functions previously
performed by a redevelopment agency, all rights, powers, assets,
liabilities, duties, and obligations associated with the housing
activities of the agency, excluding any amounts in the Low and
Moderate Income Housing Fund, shall be transferred as follows:
(1) Where there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency, to the Department of
Housing and Community Development.
(2) Where there is one local housing authority in the territorial
jurisdiction of the former redevelopment agency, to that local
housing authority.
(3) Where there is more than one local housing authority in the
territorial jurisdiction of the former redevelopment agency, to the
local housing authority selected by the city, county, or city and
county that authorized the creation of the redevelopment agency.
(c) Commencing on the operative date of this part, the entity
assuming the housing functions formerly performed by the
redevelopment agency may enforce affordability covenants and perform
related activities pursuant to applicable provisions of the Community
Redevelopment Law (Part 1 (commencing with Section 33000),
including, but not limited to, Section 33418.
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