(a) The authority shall require the preparation of an annual independent financial audit paid for from revenues of the authority, and review the plan at least annually and make any amendments that are necessary and appropriate in accordance with the following procedures:

(1) Amendments to an approved plan, including proposals to finance affordable housing pursuant to Part 2, and additional eligible projects, may be approved by a majority vote of the authority’s governing board at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents and taxing agencies.

(2) Amendments that propose any of the following shall be adopted in accordance with all notice and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial plan set forth in Section 62004:

(i) Addition of new territory or project areas to a plan.

(ii) Increase the limit of the total number of dollars in local taxes allocated.

(iii) Approve a public facility or development that was not proposed to be financed or assisted by the district in the approved plan.

(b) An authority shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The authority shall cause the draft report to be posted in an easily identifiable and accessible location on the authority’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each owner of land and each resident within the area covered by the plan and to each taxing entity that has adopted a resolution pursuant to subdivision (d) of Section 62005. The notice shall be mailed by first-class mail, but may be addressed to “occupant.”

(c) The annual report shall contain all of the following:

(1) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.

(2) A chart comparing the actual revenues and expenses, including administrative costs, of the authority to the budgeted revenues and expenses.

(3) The amount of tax increment revenues received.

(4) The amount of revenues expended for low- and moderate-income housing.

(5) An assessment of the status regarding completion of the authority’s projects.

(6) The amount of revenues expended to assist private businesses.

(d) If the authority fails to provide the annual report required by subdivision (a), the authority shall not spend any funds received pursuant to a resolution adopted pursuant to subdivision (d) of Section 62005 until the authority has provided the report, except for funds necessary to carry out its obligation under Part 2 (commencing with Section 62100).

(e) Every 15 years, at the public hearing held pursuant to subdivision (b) and after adopting the annual report, the authority shall consider whether the property owners and residents within the plan area wish to propose amendments to the plan. The authority may consider and adopt amendments to the plan at the conclusion of the public hearing. After considering any amendments to the plan, the authority shall conduct a protest proceeding to consider whether the property owners or residents within the plan area wish to present oral or written protests against the authority undertaking new projects. Notice of this proceeding shall be included in the written notice of the hearing on the annual report and shall inform the property owner and resident of their right to submit proposed amendments to the plan, or an oral or written protest to prohibit new projects under the plan, before the close of the public hearing. The protest may state that the property owner or resident objects to the authority taking action to implement new projects under the plan on and after the date of the election described in subdivision (f). The authority shall consider all written and oral protests received prior to the close of the public hearing.

(f) Except as provided in subdivision (h), if there is a majority protest, the authority shall not take any further action to implement new projects under the plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the property owners and residents file protests, then the authority shall call an election of the property owners and residents in the area covered by the plan, and shall not initiate or authorize any new projects until the election is held. A majority protest exists if protests have been filed representing over 50 percent of the combined number of property owners and residents, at least 18 years of age or older, in the area.

(g) An election required pursuant to subdivision (f) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The authority shall adopt, at a duly noticed public hearing, procedures for holding this election.

(h) If a majority of the property owners and residents vote against the plan, then the authority shall not take any further action to implement new projects under the plan on and after the date of the election held pursuant to subdivision (e). This section shall not be interpreted to prohibit an authority from doing any of the following:

(1) In fulfilling its obligations to repay all outstanding bonded indebtedness, fulfill all contractual obligations to third parties, or take all actions necessary so that the interest on any outstanding bonded indebtedness is excluded from gross income for federal income tax purposes.

(2) Expending bond proceeds and other revenues to complete any previously approved project or contractual obligation.

(3) Expending funds to complete any of the affordable housing obligations required by Part 2 (commencing with Section 62100).

(Amended by Stats. 2021, Ch. 391, Sec. 10. (SB 780) Effective January 1, 2022.)