BILL NUMBER: SB 565	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 26, 2005

INTRODUCED BY   Senator Migden

                        FEBRUARY 18, 2005

   An act to amend Section  50199.20   50650
 of the Health and Safety Code, relating to low-income housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 565, as amended, Migden.   Low-income housing tax
credit allocation program.   CalHo   me
Program.   
   Existing law provides that the purpose of the CalHome Program is
to support existing homeownership programs aimed at lower and very
low-income households. 
    This bill would instead provide that the purpose of the
program is to support homeownership programs aimed at these same
households.  
   Existing law, relating to the program established to provide
low-income tax credits to stimulate the production and rehabilitation
of shelter for lower individuals and families, authorizes, among
other things, the California Tax Credit Allocation Committee to set
aside up to 2% of the available tax credit for small developments as
determined by the committee.  
   This bill would increase that amount from 2% to 5%. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


   SECTION 1.    Section 50650 of the   Health
and Safety Code   is amended to read: 
   50650.
   The Legislature finds and declares as follows:
   (a) An adequate supply of safe and affordable housing is the
foundation for strong and sustainable communities.  Owner occupied
housing is a key housing resource, contributing to neighborhood
stability as well as economic vitality.
   (b) In California, homeownership is beyond the reach of a large
segment of the population. There are also many homeowners who lack
the resources to make necessary repairs to their homes, or who would
welcome the opportunity to share them with suitable tenants.
   (c) Reflecting California's diversity, there is a variety of
proven approaches to the promotion of homeownership within the state.
The purpose of the CalHome Program established by this chapter is to
support  existing  homeownership programs aimed at
lower and very low income households and operated by private
nonprofit and local government agencies, and thereby to increase
homeownership, encourage neighborhood revitalization and sustainable
development, and maximize use of existing homes.
   (d) The CalHome Program is intended to take the place of the
Senior Citizens' Shared Housing Program established by Chapter 3.6
(commencing with Section 50533), which is repealed by the act
enacting this chapter.   
  SECTION 1.  Section 50199.20 of the Health and Safety Code is
amended to read:
   50199.20.
   (a) Not less than 20 percent of the federal ceiling on low-income
housing tax credits shall be set aside for allocation to rural areas
as defined in Section 50199.21. Any amount of credit set aside for
rural areas remaining after the ranking of credits in the final cycle
of any calendar year shall be available for allocation to any
eligible project.
   (b) Up to 5 percent of the low-income housing tax credit available
under this chapter and Sections 12206, 17058, and 23610.5 of the
Revenue and Taxation Code may be set aside for small developments as
determined by the committee.  Any amount of credit set aside for
small developments remaining after the ranking of projects in the
final cycle of any calendar year shall be available for allocation to
any eligible project.