Community redevelopment: Supplemental Educational Revenue Augmentation Fund.

(1) The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in blighted areas in those communities known as project areas. Specific provisions of the California Constitution authorize a redevelopment agency to receive funding through tax increments attributable to increases in assessed property tax valuation of property in a project area due to redevelopment. Not less than 20% of tax increments generated from a project area are required to be used by a redevelopment agency to increase and improve the community's supply of low- and moderate-income housing. Redevelopment agencies are required in the 2009–10 fiscal year to remit to the county auditor an amount of revenue for deposit in the Supplemental Educational Revenue Augmentation Fund in each county for allocation to school entities. Existing law authorizes the agency, in order to make the full allocation, to borrow the amount required to be allocated to the Low and Moderate Income Housing Fund, pursuant to existing law, unless executed contracts exist that would be impaired if the agency reduced the amount allocated to that fund. This bill would additionally authorize an agency, in order to make the required allocation to the county Supplemental Educational Revenue Augmentation Fund, to borrow any moneys in the Low and Moderate Income Housing Fund under the same condition. (2) Under existing law, the amount of revenue a redevelopment agency is required to remit to the county auditor during the 2009–10 and 2010–11 fiscal years is determined in accordance with specified calculations made by the Director of Finance and is based, in part, on a specified report of the Controller. This bill would make an adjustment to the calculation made by the Director of Finance with respect to a redevelopment agency that, prior to August 1, 2009, deleted territory from any project area and reported to the State Board of Equalization in accordance with existing law and that deletion is not reflected in certain described reports. (3) This bill would declare that it is to take effect immediately as an urgency statute.