CA AB2035

Authorizes affordable housing authorities created by cities, counties, or city and counties to provide low- and moderate-income housing and affordable housing using tax increment financing and other revenue sources.

Requires governing boards to include mayoral appointments equal to legislative body appointments in city and county authorities, and establishes boards as odd-numbered with at least 5 or 7 members including at least one public member.

Allows authorities to expend housing funds either proportionally across income categories, exclusively for very low-income housing, for emergency shelters and supportive housing, or in combination, with 95 percent minimum for housing and 5 percent maximum for administration.

Permits taxing entities to repeal property tax increment allocations with 90 days' notice while continuing payments pledged for debt repayment, and requires county auditor-controller to deduct administrative costs before distributing property tax increment.

Authorizes authorities to issue bonds under Housing Authorities Law and finance water, sewer, or public infrastructure supporting affordable housing development, with independent audits required annually after reaching $1,000,000 in cumulative allocations.

Establishes 30-day statute of limitations for challenging authority creation, adoption of housing plans, tax revenue allocations, or bond issuances.