(a) A city, county, or city and county may adopt a resolution creating an affordable housing authority that shall be limited to providing low- and moderate-income housing and affordable housing pursuant to this division. An authority created pursuant to this division is a public body, corporate and politic. An authority shall be deemed to be an “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution only for purposes of receiving property tax increment revenues.

(b) (1) A school entity, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, may not participate in an authority created pursuant to this section.

(2) A successor agency, as defined in subdivision (j) of Section 34171 of the Health and Safety Code, may not participate in an authority created pursuant to this part, and an entity created pursuant to this part shall not receive any portion of the property tax revenues or other moneys distributed pursuant to Section 34188 of the Health and Safety Code.

(3) An authority formed by a city or county that created a redevelopment agency that was dissolved pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code shall not become effective until the successor agency or designated local authority for the former redevelopment agency has adopted findings of fact stating all of the following:

(A) The agency has received a finding of completion from the Department of Finance pursuant to Section 34179.7 of the Health and Safety Code.

(B) Former redevelopment agency assets that are the subject of litigation against the state, where the city or county or its successor agency or designated local authority are a named plaintiff, have not been or will not be used to benefit any efforts of an authority formed under this part unless the litigation has been resolved by entry of a final judgment by any court of competent jurisdiction and any appeals have been exhausted.

(C) The agency has complied with all orders of the Controller pursuant to Section 34167.5 of the Health and Safety Code.

(c) The governing board of an authority created pursuant to this division shall be an odd number of members with at least five or seven members in total, as follows:

(1) (A) In the case of an authority formed by a city, at least three members of the city council appointed by the city council.

(B) In the case of an authority formed by a county, at least three members of the board of supervisors appointed by the board of supervisors.

(C) In the case of an authority created jointly by a city and a county, at least three members of the city council and three members of the board of supervisors.

(D) In the case of an authority created by a city and county, the mayor shall appoint the same number of members as are appointed by the legislative body of the city and county. Appointments made pursuant to this subparagraph shall not be subject to review by the legislative body of the city and county.

(2) At least one member of the public who lives or works within the boundaries of the city or county that created the authority.

(d) The boundaries of an authority created pursuant to this division may be identical to the boundaries of the city or county that created the authority.

(Amended by Stats. 2018, Ch. 862, Sec. 2. (AB 2035) Effective January 1, 2019.)