Low and Moderate Income Housing Fund (20% Set-aside Fund)
In 1976, the California Legislature took action that required that 20 percent of all tax increment generated through redevelopment be set aside to create, preserve, and improve housing for low and moderate income persons. Known as the Low and Moderate Income Housing Fund, this source of funding became arguably the most important tool for the development of affordable housing in California and created tens of thousands of housing opportunities for the State's low and moderate income residents.
In Riverside, Low and Moderate Income Housing funds have helped create thousands of new affordable units, provided homeownership opportunities for teachers and other workers key to our community's success, and assisted lower income households to improve their houses, helping them while improving neighborhood conditions.
The End of Redevelopment
In 2011, in an effort to respond to State budget deficits, Governor Jerry Brown proposed and the State Legislature approved legislation that dissolved redevelopment agencies and with that action the Low and Moderate Income Housing Fund. AB 26 1X, signed by the Governor on June 28, 2011, required the creation of Successor Agencies to oversee the dissolution process. For affordable housing, however, the legislation allowed the cities or counties that created the redevelopment agency to choose to retain the housing assets and to continue to enforce the housing covenants and restrictions, and to exercise all other rights, powers, duties and obligations of the former redevelopment agency as it related to the Low and Moderate Income Housing Fund. AB 1484, which was signed in June of 2012, clarified some portions of the original legislation, including providing more detailed language on the assets that could be retained.
The dissolution date was set as February 1, 2012 for all redevelopment agencies throughout the State. On March 30, 2012, the City Council adopted a resolution electing not to retain responsibility of performing the housing related functions previously performed by the former Redevelopment Agency (Agency) and designated the Housing Authority of the City of Riverside as the Successor Housing Agency to retain the responsibility of performing housing functions. Concurrently, the Housing Authority adopted a resolution agreeing to assume the housing functions of the former Agency including all rights, powers, duties, obligations, liabilities and assets.
On October 13, 2013 the State of California passed Senate Bill 341 that requires the Housing Successor to conduct and provide to its governing body an independent financial audit of the Low and Moderate Income Housing Asset Fund (LMIHAF) within six months after the end of each fiscal year and an annual report to the California Department of Housing and Community Development.