BILL NUMBER: AB 1257 CHAPTERED 10/06/93 CHAPTER 851 FILED WITH SECRETARY OF STATE OCTOBER 6, 1993 APPROVED BY GOVERNOR OCTOBER 5, 1993 PASSED THE ASSEMBLY AUGUST 31, 1993 PASSED THE SENATE AUGUST 26, 1993 AMENDED IN SENATE AUGUST 16, 1993 AMENDED IN SENATE JULY 13, 1993 AMENDED IN SENATE JUNE 21, 1993 AMENDED IN ASSEMBLY APRIL 12, 1993 INTRODUCED BY Assembly Member Barbara Friedman MARCH 3, 1993 An act to amend Section 7260 of, and to add Section 7262.5 to, the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1257, B. Friedman. Housing: Relocation Assistance Act: compensation to displaced persons. Existing law, known as the Relocation Assistance Act, requires a public entity to provide compensation and advisory services to any person, business, or farm operation that is displaced because of the acquisition of real property for public use. Existing law governs the provision of relocation assistance, including benefits for displaced persons, as defined, and procedural protections for persons required to move from their homes. Existing law expresses the intent of the Legislature that the improvement of housing conditions of economically disadvantaged persons shall be undertaken, to the maximum extent feasible, in coordination with existing federal, state, and local government programs for accomplishing these goals. This bill would, for the purposes of the Relocation Assistance Act, alter the definition of "displaced person" to exclude persons who have been offered occupancy of a unit, of size and quality at least comparable to the unit from which the person has been displaced and located within the same apartment complex, as defined, that contains the unit from which the person has been displaced, if all other financial benefits and services otherwise required by the act are provided to the tenants temporarily displaced from their units, the resident is offered the right to return to his or her unit, the temporary unit is not unreasonably impacted by the effects of the construction, as specified, and the property is a qualified affordable housing preservation project, as defined. It would also require that designation as a qualified affordable housing preservation project be elected by the beneficiary of the regulatory agreement creating the project, through an indication to that effect on the regulatory agreement. The bill would provide that, notwithstanding any other provision of law, no provision of the bill shall be introduced as evidence, or otherwise referred to, in any action that is pending on the date the bill becomes effective. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 7260 of the Government Code is amended to read: 7260. As used in this chapter: (a) "Public entity" includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use and any person who has the authority to acquire property by eminent domain under state law. (b) "Person" means any individual, partnership, corporation, or association. (c) (1) "Displaced person" means both of the following: (A) Any person who moves from real property, or who moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire or the acquisition of the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with or acting on behalf of a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. For purposes of this subparagraph, "residential tenant" includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but shall not include any person who has been determined to be in unlawful occupancy of the displacement dwelling. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation, for a program or project undertaken by a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. (2) The definition contained in this subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. Except persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing which was made available to them on a permanent basis by a public agency and who are required to move from the housing, a "displaced person" shall not include any of the following: (A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings. (B) Any person whose right of possession at the time of moving arose after the date of the public entity's acquisition of the real property. (C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter. (D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project. (3) (A) Notwithstanding Section 7265.3 or any other provision of law, a person who is temporarily displaced for not more than 180 days, and who is offered occupancy of a comparable replacement unit located within the same apartment complex that contains the unit from which he or she has been displaced, shall not be deemed a "displaced person" for the purposes of this chapter. This paragraph shall be applicable only if all of the following conditions are complied with: (i) All other financial benefits and services otherwise required under this chapter are provided to the tenants temporarily displaced from their units. (ii) The resident is offered the right to return to his or her original unit, with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 25 percent of household income. (iii) The temporary unit is not unreasonably impacted by the effects of the construction, taking into consideration the ages and physical conditions of the members of the displaced household, and the estimated period of displacement is reasonable. (iv) The property is a qualified affordable housing preservation project. (B) For the purposes of this paragraph: (i) "Apartment complex" means four or more residential rental units subject to common ownership and financing that are also located on the same or contiguous parcels. (ii) "Qualified affordable housing preservation project" is any complex of four or more units whose owners enter into a recorded regulatory agreement, having a term for the useful life of the project, with any entity for the provision of project rehabilitation financing. For this purpose, the regulatory agreement shall require of the owner and all successors and assigns of the owner, as long as the regulatory agreement is in effect, that at least 49 percent of the tenants in the project shall have, at the time of the recordation of the regulatory agreement required by this section, incomes not in excess of 60 percent of the area median income, adjusted by household size, as determined by the appropriate agency of the State of California. In addition, a project shall be defined as a qualified affordable housing preservation project only if the beneficiary of the regulatory agreement elects this designation by so indicating on the regulatory agreement. (d) "Business" means any lawful activity, except a farm operation, conducted for any of the following: (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property. (2) Primarily for the sale of services to the public. (3) Primarily by a nonprofit organization. (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted. (e) "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (f) "Affected property" means any real property which actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. (g) "Public use" means a use for which real property may be acquired by eminent domain. (h) "Mortgage" means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (i) "Comparable replacement dwelling" means any dwelling that is all of the following: (1) Decent, safe, and sanitary. (2) Adequate in size to accommodate the occupants. (3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling minus any replacement housing payment available to the person does not exceed 25 percent of the person's average monthly income. (4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present. (5) In an area not subject to unreasonable adverse environmental conditions. (6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced person' s place of employment. (j) "Displacing agency" means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project. (k) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. (l) "Small business" means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations. (m) "Lead agency" means the Department of Housing and Community Development. SEC. 2. Section 7262.5 is added to the Government Code, to read: 7262.5. (a) Notwithstanding Section 7265.3 or any other provision of law, tenants residing in any multifamily rental project of four or more units who are displaced from the project for a period of 180 days or less as part of a rehabilitation of that project, that is funded in whole or in part by a public entity, shall not be deemed permanently displaced if all of the following criteria are satisfied: (1) All other financial benefits and services otherwise required under this chapter are provided to the tenants temporarily displaced from their units, including relocation to a comparable replacement unit. (2) The resident is offered the right to return to his or her original unit, with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 25 percent of household income. (3) The estimated time of displacement is reasonable, and the project is a qualified affordable housing preservation project. (b) For the purposes of this section, "qualified affordable housing preservation project" shall have the meaning set forth in subparagraph (B) of paragraph (3) of subdivision (c) of Section 7260. SEC. 3. Notwithstanding any other provision of law, no provision of this act shall be introduced as evidence, either directly, by referring to the name or contents of the amendments to Section 7260 of the Government Code made by this act, or indirectly, through testimony of any expert or lay witness, or otherwise referred to, in any action pending as of the effective date of this act.