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SECTION 33750-33753

33750. The Legislature finds and declares that it is necessary and
essential that redevelopment agencies be authorized to make
long-term, low-interest loans through qualified mortgage lenders to
finance residential construction in order to encourage investment and
upgrade redevelopment project areas and increase the supply of
housing. Unless redevelopment agencies intervene to generate
mortgage funds and to provide some form of assistance to finance
residential construction, many redevelopment areas will stagnate and
deteriorate because owners and investors are not able to obtain loans
from private sources.
The Legislature further finds and declares that financing of
rehabilitation, as provided in this chapter, serves an essential
public purpose for the economic renewal of our cities.

33751. The Legislature further finds and determines that a program
to provide residential construction financing would accomplish the
(a) Facilitate increasing the supply of urban housing and ease the
housing shortage that exists in many parts of the state.
(b) Encourage Californians of all social and economic positions to
reinhabit urban areas, thereby rendering these areas more socially
balanced and economically self-sufficient.
(c) Reduce pressures for suburbanization and thereby mitigate many
of the problems caused by urban migration, including inefficient use
of scarce energy resources and urban sprawl.
(d) Stimulate urban building and construction activity and thereby
increase urban employment and improve the urban tax base.

33751.5. The Legislature further finds and declares that the
construction and rehabilitation of residences intended for occupancy
primarily by persons and families of low or moderate income, as
defined in Section 50093, is properly included within redevelopment
plans whether or not such construction or rehabilitation is to occur
within a redevelopment area, since redevelopment agencies have
specific obligations for development of housing whether or not such
development is feasible within specific redevelopment project areas.

33752. It is the intent of the Legislature, in enacting this
chapter, to strengthen the vitality and promote the completion of
urban redevelopment for the general public benefit. The construction
of federally assisted housing for low- and moderate-income
households is not a primary purpose of this chapter. However, nothing
in this chapter shall be deemed to prohibit financing of federally
assisted housing for low- and moderate-income households when such
housing is consistent with the redevelopment plan and the loan is
directly or indirectly insured.

33753. The definitions set forth in Article 1 (commencing with
Section 33000) of Chapter 1 of this part shall govern the
construction of this chapter. Additionally, as used in this chapter:

(a) "Construction loan" means a loan to finance residential
construction under this chapter, whether such loan is insured or
(b) "Financing" means the lending of moneys or any other thing of
value for the purpose of facilitating residential construction
pursuant to this chapter, including the making of construction loans
and mortgage loans to purchasers of newly constructed and newly
rehabilitated residences and the making of loans to qualified
mortgage lenders, and the making of mortgage loans to purchasers of
newly constructed or existing residences located in targeted areas as
provided in Section 33760.
(c) "Local codes" means applicable local, state and federal
standards for residential construction or rehabilitation, including
any other standards adopted by the agency for a redevelopment project
area or as part of its redevelopment program.
(d) "Mortgage loan" means a long-term loan which is secured by a
mortgage and is made for permanent financing of residences, pursuant
to this chapter.
(e) "Participating party" means any person, corporation,
partnership, firm, or other entity or group of entities requiring
financing for residential construction pursuant to the provisions of
this chapter. No elective officer of the state other than officers
provided for by Article VI of the California Constitution, and no
employee or member of the redevelopment agency, shall be eligible to
be a participating party under the provisions of this chapter. If
any elected officer of any political subdivision of the state
participates in deliberations or votes on a financing plan,
redevelopment plan, or bond issue, that person shall not be eligible
to be a participating party for bonds issued pursuant to those plans
or issues.
(f) "Qualified mortgage lender" means a mortgage lender authorized
by a redevelopment agency to do business with the agency and to aid
in financing pursuant to this chapter on behalf of the agency, for
which service the qualified mortgage lender will be reasonably
compensated. Such a mortgage lender shall be a state or national
bank, federal or state-chartered savings and loan association, or
trust company or mortgage banker which is capable of providing
service or otherwise aiding in the financing of mortgages on
residential construction within the jurisdiction of the agency.
Nothing in any other provision of state law shall prevent such a
lender from serving as a qualified mortgage lender pursuant to this
(g) "Redevelopment project area" means a project area, as defined
in Section 33320.1, for which a final redevelopment plan has been
adopted pursuant to Section 33365.
(h) "Rehabilitation" means repairs and improvements to a
substandard residence necessary to make it meet local codes; and also
means the acquisition of substandard residences for purposes of
repairs and improvements where the cost of such repairs and
improvements equals or exceeds 25 percent of the cost of the
acquisition. As used in this section, "substandard residence" has
the same meaning as the term "substandard building," as defined in
Section 17920.3, except that "substandard residence" shall include
all property improved with any structure defined in subdivision (j)
of this section as a "residence," with respect to which any of the
conditions listed in Section 17920.3 exist.
(i) "Residential construction" means the construction of new
residences or the rehabilitation and improvement of substandard
residences to meet requirements of local codes and the redevelopment
plan. "Residential construction" also means the improvement of
residences as provided in subdivision (h).
(j) (1) "Residence" means real property improved with a
residential structure and within a redevelopment project area real
property improved with a commercial structure (or structures) or a
mixed residential and commercial structure, which the redevelopment
agency determines to be an integral part of a residential
neighborhood. For purposes of determining the integrality of new
construction for such purpose, a proposed commercial or mixed
residential and commercial structure shall be located within or
immediately adjacent to a neighborhood primarily residential in
(2) "Residence" also means residential hotels in which not less
than one-half of the occupied dwelling units are occupied on a
nontransient basis. A dwelling unit shall be deemed to be used on a
nontransient basis if the term of the tenancy is one month or longer
or if the tenant has resided in the unit for more than 30 days. In a
residential hotel, individual dwelling units shall lack either
cooking facilities or individual sanitary facilities, or both.
However, for purposes of this paragraph, a residential hotel does not
include dormitories, fraternity and sorority houses, hospitals,
sanitariums, rest homes, or trailer parks and courts.
New construction of any commercial structure, or of the commercial
portion of any mixed residential and commercial structure, financed
under this chapter shall not exceed 80,000 square feet of gross
building area per development. Any suit challenging such finding
shall be filed within 60 days, or the findings of the agency shall be
An agency may not provide long-term financing pursuant to this
chapter for new construction of a commercial structure or the
commercial portion of a mixed residential and commercial structure if
conventional financing in an amount sufficient to complete the
construction has been obtained for the construction of such
structure or portion thereof.
Prior to the financing of any commercial structure within a
redevelopment project area, the agency shall adopt a financing plan
by resolution, which may include commercial and residential
structures. The square footage of the commercial structures shall
not exceed 30 percent of the aggregate square footage of all the
commercial and residential structures within the project area and
financed pursuant to the financing plan. The financing plan for the
commercial and residential structures shall include structures that
have been, or are being, financed pursuant to this chapter or under
federal or state financial assistance programs or local assistance
programs of any kind whatsoever. However, such a financing plan
shall not be required for an agency that has financed residential
structures with the proceeds of bonds issued prior to September 30,
1980, nor shall such amendments affect the validity of the tax-exempt
status of bonds issued pursuant to this chapter prior to such date.

Additionally, any financing for a commercial structure or a mixed
residential and commercial structure authorized or preliminarily
approved by resolution adopted by a redevelopment agency or community
development commission established pursuant to Section 33201 either
(1) on or before June 3, 1980, in furtherance of which the agency or
any person or entity has expended substantial funds or committed to
reimburse another person or entity which has expended substantial
funds; provided that if the long-term permanent financing is in
excess of five million dollars ($5,000,000) on any one project from
all financing sources, including conventional and tax-exempt
financing, a redevelopment agency or community development commission
shall not provide such long-term permanent financing unless such
agency or commission adopted a resolution before January 1, 1981,
officially approving and authorizing the sale of revenue bonds to
provide such long-term permanent financing, and the bonds were sold
and delivered before March 1, 1981; or (2) before October 31, 1980,
in furtherance of which the agency has expended funds in connection
with such financing or plans relating to such financing if the
structure to be financed is located within a city designated pursuant
to Section 119 of federal Public Law 95-128, as amended, or within a
city designated as of September 30, 1980, under Title IX of federal
Public Law 89-136, as amended, as a long-term economic deterioration
area, or financing for a commercial structure or mixed residential
and commercial structure as to which bonds have been delivered on or
before July 31, 1980 (without regard to the date the bonds were
authorized or received preliminary approval), shall not be subject to
new requirements or conditions of this subdivision enacted by
Chapter 1331 of the Statutes of 1980.
"Residence" includes condominium and cooperative dwelling units,
and includes both real property improved with single-family
residential structures and real property improved with
multiple-family residential structures.
(k) "Revenue bonds" means any bonds, notes, interim certificates,
debentures, or other obligations issued by an agency pursuant to this
chapter and which are payable exclusively from revenues and from any
other funds specified in this chapter upon which the revenue bonds
may be made a charge and from which they are payable.
(l) "Revenues" means all amounts received as repayment of
principal, interest, and all other charges received for, and all
other income and receipts derived by, the redevelopment agency from
the financing of residential construction, including moneys deposited
in a sinking, redemption, or reserve fund or other fund to secure
the revenue bonds or to provide for the payment of the principal of,
or interest on, the revenue bonds.
(m) "Target areas" has the same meaning as in Section 103A of the
Federal Internal Revenue Code of 1954, as amended.


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