(e)

1. (1) On the earliest day that the business of the court will permit, but not later than 45 days after the filing of an action pursuant to this section, the court shall conduct a hearing to determine if good cause exists for believing that the agency has a major audit violation and has not corrected that violation.
2. (2) If the court determines that no good cause exists or that the agency had a major audit violation but corrected the major audit violation, the court shall dismiss the action.

3. (3) If the court determines that there is good cause for believing that the agency has a major audit violation and has not corrected that major audit violation, the court shall immediately issue an order that prohibits the agency from doing any of the following:

   1. (A) Encumbering any funds or expending any money derived from any source except to pay the obligations designated in subparagraphs (A) to (G), inclusive, of paragraph (1) of subdivision (e) of Section 33334.12.
   2. (B) Adopting a redevelopment plan.
   3. (C) Amending a redevelopment plan except to correct the major audit violation that is the subject of the action.
   4. (D) Issuing, selling, offering for sale, or delivering any bonds or any other evidence of indebtedness.
   5. (E) Incurring any indebtedness.

(g) If, on the basis of that subsequent hearing, the court determines that the agency has a major audit violation and has not corrected that violation, the court shall order the agency to comply with this part within 30 days, and order the agency to forfeit to the state no more than:

1. (1) Two thousand dollars ($2,000) in the case of a community redevelopment agency with a total revenue, in the prior year, of less than one hundred thousand dollars ($100,000) as reported in the Controller’s annual financial reports.
2. (2) Five thousand dollars ($5,000) in the case of a community redevelopment agency with a total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.
3. (3) Ten thousand dollars ($10,000) in the case of a community redevelopment agency with a total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000) as reported in the Controller’s annual financial reports.

(j) As used in this section, “major audit violation” means that, for the fiscal year in question, an agency did not:

1. (1) File an independent financial audit report that substantially conforms with the requirements of subdivision (a) of Section 33080.1.
2. (2) File a fiscal statement that includes substantially all of the information required by Section 33080.5.
3. (3) Establish time limits, as required by Section 33333.6.
4. (4) Deposit all required tax increment revenues directly into the Low and Moderate Income Housing Fund upon receipt, as required by Section 33334.3, 33334.6, 33487, or 33492.16.
5. (5) Establish a Low and Moderate Income Housing Fund, as required by subdivision (a) of Section 33334.3.
6. (6) Accrue interest earned by the Low and Moderate Income Housing Fund to that fund, as required by subdivision (b) of Section 33334.3.
7. (7) Determine that the planning and administrative costs charged to the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low- and moderate-income housing, as required by subdivision (d) of Section 33334.3.
8. (8) Initiate development of housing on real property acquired using moneys from the Low and Moderate Income Housing Fund or sell the property, as required by Section 33334.16.
9. (9) Adopt an implementation plan, as required by Section 33490.