AB 345 Summary

• Creates new reporting and accountability requirements for redevelopment agencies, including detailed annual reports on audit violations, housing expenditures, and planning/administrative costs paid from Low and Moderate Income Housing Funds.

• Establishes the Redevelopment Agency Accountability Fund, funded by agencies' deposits of 0.05% of tax increment into Low and Moderate Income Housing Funds, to finance Department of Housing and Community Development audits of agency compliance with housing provisions.

• Requires at least 75% of Low and Moderate Income Housing Fund expenditures to directly assist housing for extremely low, very low, low, or moderate income persons, with minimum 25% for extremely low income and 50% for very low income housing.

• Imposes stricter controls on planning and general administrative expenses from Low and Moderate Income Housing Funds, limiting most agencies to 10% of deposits annually for these costs and requiring detailed documentation of allowable expenses.

• Strengthens enforcement of replacement housing obligations when units are destroyed in redevelopment projects and requires agencies to develop/preserve property acquired with housing funds within specified timeframes or reimburse the housing fund 150% of acquisition and maintenance costs.