CA AB2406

Authorizes contiguous redevelopment agencies in adjoining cities within a metropolitan statistical area to create a joint powers authority to pool their low- and moderate-income housing funds.

Pooled funds may only be used for direct costs of constructing, substantially rehabilitating, or preserving housing affordable to extremely low income households.

Requires participating agencies to have adopted compliant housing elements, met at least 50% of regional affordable housing needs, and held public hearings before transferring funds to the joint powers authority.

Prohibits pooled funds from being transferred from agencies with indebtedness to their housing funds or agencies that have not met replacement housing requirements.

Requires funds transferred to the joint powers authority to be expended or encumbered within two years, with unexpended funds returned to the original agency; prohibits creation of new joint projects on or after January 1, 2020.