SECTIONS 53540-53542 - California Statutes

GOVERNMENT CODE

SECTION 53540-53542

53540. As used in this article:
(a) "Local agency" means county, city, city and county, public
district, public entity or authority or other public or municipal
corporation.
(b) "Legislative body" means the legislative body, as defined in
Section 53000, of the local agency.
(c) The term "bonds" includes bonds, warrants, notes, or other
evidences of indebtedness of a local agency, zone or improvement
district except those which under Section 18 of Article XI or other
provision of the Constitution of the State of California are required
to be authorized at an election.

53541. Any provision of law requiring an election to the contrary
notwithstanding, the legislative body without a vote of the electors
may issue bonds of the local agency, zone or improvement district if
all the following occur:
(a) The principal amount of such bonds does not exceed the then
unissued balance of the principal amount of bonds of the same type
authorized at an election heretofore held in the local agency, or in
such zone or improvement district.
(b) The bonds are issued for the same purpose as that for which
the unissued bonds were authorized.
(c) The bonds are issued in accordance with the laws governing the
issuance of bonds of the local agency, except for the requirement of
a bond election.
Bonds issued pursuant to this section may bear interest at a rate
or rates not to exceed 12 percent per year. When bonds are issued
pursuant to this section, unissued bonds as referred to in
subdivisions (a) and (b) in a principal amount at least equal to the
principal amount of bonds issued pursuant to this section, shall be
canceled by order of the legislative body and shall not be issued.

53542. (a) The Housing Bond Credit Committee shall, after
consultation with appropriate agencies including, but not limited to,
the Department of Business and Economic Development, the Department
of Housing and Community Development, the Governor's Office of
Planning and Research, the California Housing Finance Agency, the
Senate Office of Research, the Assembly Office of Research, and the
Department of Finance, designate areas of chronic economic distress
in conformity with paragraph (3) of subdivision (k) of Section 103
(A) of the Internal Revenue Code. Criteria to be used in designating
areas of chronic economic distress include:
(1) The condition of the housing stock, including the age of the
housing and the number of abandoned and substandard residential
units.
(2) The need of area residents for owner-financing under this
section, as indicated by low per capita income, a high percentage of
families in poverty, a high number of welfare recipients, and high
unemployment rates.
(3) The potential for use of owner-financing under this section to
improve housing conditions in the area.
(4) The existence of a housing assistance plan which provides a
displacement program and a public improvements and services program.
(b) The committee may evaluate and include other criteria it
considers appropriate in determining areas of chronic economic
distress, including, but not limited to:
(1) Low vacancy rates in residential units.
(2) Low volume of mortgage loan activity.
(3) The percentage of households paying more than 35 percent of
income for rent.
(4) The existence of adequate transportation facilities between
such designated areas and areas of employment concentration.
(c) State agencies and local agencies, including, but not limited
to, redevelopment agencies, housing authorities or other local
entities authorized by the laws of this state to issue qualified
mortgage bonds, may recommend on or before February 15 of each
calendar year, the designation of an area of chronic economic
distress to the committee.
The committee shall review all such proposals in making
designations in accordance with paragraph (3) of subdivision (K) of
Section 103 (A) of the Internal Revenue Code or any appropriate
regulations. The State Treasurer or his or her designee, shall be
responsible for seeking approval of that designation by the Secretary
of the Treasury and the Secretary of Housing and Urban Development
of the United States and providing certification of these
designations and is hereby designated as the official to make
certifications for purposes of federal law.