(a) (1) For purposes of this section, “authority revenues” includes, without limitation, revenues generated by either of the following:
(A) Any special tax, fee, or charge imposed by the authority, other than ad valorem property taxes.
(B) Any loan repayments, investment income, or income derived from the ownership or operation of real property.
(2) (A) The authority may issue revenue bonds, payable from authority revenues, in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5), for the purposes set forth in this title and in any resolution adopted by the authority, or measure adopted by voters, in connection with the generation of authority revenues or imposition of those special taxes, fees, or other charges.
(B) For purposes of issuing revenue bonds pursuant to this section, all or any portion of the authority revenues designated by the authority, the special taxes, fees, or other charges described in subparagraph (A) shall constitute an “enterprise” within the meaning of Section 54309.
(C) Any authority revenues designated pursuant to subparagraph (B) shall constitute “revenues” within the meaning of Section 54315.
(3) To exercise the powers described in this section, the authority shall ensure that the text of the ballot measure prepared pursuant to Section 64521 related to voter approval of a special tax under this title notifies the voters that proceeds from the special tax may be used as payment for revenue bonds.
(4) For purposes of this section, the authority shall be deemed to be a local agency within the meaning of Section 54307. Article 3 (commencing with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 and the limitations on the rate of interest set forth in subdivision (b) of Section 54402 do not apply to the issuance and sale of bonds pursuant to this section. Instead, the authority shall authorize the issuance of bonds by resolution at any time, and from time to time, which shall specify all of the following:
(A) The purposes for which the bonds are to be issued.
(B) The maximum principal amount of the bonds.
(C) The maximum term for the bonds.
(D) (i) The maximum rate of interest to be payable upon the bonds, which shall not exceed the maximum rate permitted for bonds of the authority by Section 53531 or any other applicable provisions of law.
(ii) In the case of bonds bearing a variable interest rate, the variable rate shall not, on any day, exceed the maximum rate permitted for bonds of the authority by Section 53531 or any other applicable provisions of law. However, the variable interest rate may, on any day, exceed that maximum rate in subparagraph (A), if the interest paid on the bonds from their date of original issuance to that day does not exceed the total interest that would have been permitted if the bonds had borne interest at all times from the date of issuance to that day at the maximum rate permitted from time to time by Section 53531 or any other applicable provisions of law.
(E) The maximum original issue premium or discount on the sale of the bonds.
(F) The denomination or denominations of the revenue bonds, which shall not be less than five thousand dollars ($5,000).
(b) The resolution may also contain any other matters authorized by this chapter or any other law.
(c) The revenue bonds may be sold at public or private sale or on a negotiated sale basis and at the prices, above or below par, as determined by the authority board.
(d) The revenue bonds, or each series thereof, shall be dated and numbered consecutively and shall be signed by the executive director of the authority, whose signature may be printed, lithographed, or mechanically reproduced. If any officer whose signature appears on the revenue bonds ceases to be that officer before the delivery of the bonds, the officer’s signature is as effective as if the officer had remained in office.
(e) Any summary statement required to be published by the authority pursuant to Section 54522 shall be published annually, not more than nine months after the close of each fiscal year.
(f) This section provides a complete, additional, and alternative method for the issuance of revenue bonds by the authority. An issuance does not need to comply with the procedures specified elsewhere in this article or other laws, but shall instead be issued in accordance with the procedures specified in this article.
(g) (1) To the extent permitted by law, authority revenues shall be applied according the following priority:
(A) First, to operation and maintenance of any housing project, if so required by the relevant financing documents.
(B) Second, to the payment of bonds with respect to which the revenues have been pledged.
(C) Third, to the payment of obligations in connection with bonds.
(D) Fourth, to the payment of administrative costs.
(E) Fifth, to any other purpose permitted by law and authorized by this title.
(2) All moneys received by the authority shall be trust funds applied solely for purposes of this title.
(Amended by Stats. 2023, Ch. 758, Sec. 10. (AB 1319) Effective January 1, 2024.)