BILL ANALYSIS
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THIRD READING
Bill No: AB 927
Author: Saldana (D)
Amended: 6/26/07 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM. : 9-1, 6/19/07
AYES: Lowenthal, Cedillo, Corbett, Dutton, Harman, Kehoe,
Simitian, Torlakson, Yee
NOES: McClintock
NO VOTE RECORDED: Ashburn
SENATE APPROPRIATIONS COMMITTEE : 10-7, 7/16/07
AYES: Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza,
Ridley-Thomas, Simitian, Steinberg, Yee
NOES: Cox, Aanestad, Ashburn, Battin, Dutton, Runner,
Wyland
ASSEMBLY FLOOR : 43-29, 5/3/07 - See last page for vote
SUBJECT : Senior developments within the Multifamily
Housing
Program
SOURCE : Aging Services of California
California American Association of Retired
Persons
California Commission on Aging
Congress of California Seniors
Housing California
DIGEST : This bill requires that the proportion of
CONTINUED
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Multifamily Housing Program funds expended to senior
citizen housing units be proportional to the percentage of
lower income renter households in the state that are lower
income elderly renter households.
ANALYSIS : Under current law Multifamily Housing Program
(MHP) is administered by the Department of Housing and
Community Development (HCD), to provide funding for the new
construction, rehabilitation, and preservation of permanent
and transitional rental housing for low income households.
Eligible applicants include local public entities, for
profit or nonprofit corporations, limited equity housing
cooperatives, individuals, Indian reservations and
rancheries, and limited partnerships. In addition
applicants must have developed at least one affordable
housing development. Funds are made available as a
deferred payment loans. In exchange for state funds, the
developer must agree to maintain the units as affordable
for 55 years.
In 2002, California voters approved Proposition 46, the
$2.1 billion Housing and Emergency Shelter Trust Fund Act
of 2002. Proposition 46 provided funding for various
programs including MHP. Funds provided under Proposition
46 were for the most part exhausted at the end of 2006. In
November 2006, California voters approved Proposition 1C,
the Housing and Emergency Trust Fund Act of 2006.
Proposition 1C provided $590 million to the Multifamily
Housing Program, including set asides of $50 million for
housing for homeless youth and $195 million for supportive
housing.
This bill requires that the percentage of MHP funds that is
expended for units restricted by age shall be proportional
to the percentage of lower income renter households in the
state that are lower income elderly renter households as
reported by the federal Department of Housing and Urban
Development based on the most recent decennial census
conducted by the United States Census Bureau. The share
excludes assistance provided to "housing for homeless
youth" and "supportive housing." However in order to meet
the obligations of the bill, the share of senior housing
may not fall more than one percent below the proportional
share. Projects still must meet the minimum threshold
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requirements established under the MHP.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09
2009-10 Fund
HCD up to $35 up to $70up to
$70Bond*
* Proposition 1C funds, Housing Rehabilitation Loan Fund
SUPPORT : (Verified 7/18/07)
Aging Services of California (co-source)
California American Association of Retired Persons
(co-source)
California Commission on Aging (co-source)
Congress of California Seniors (co-source)
Housing California (co-source)
Advisory Council to Area 1 Agency on Aging
Alameda County Board of Supervisors
California Senior Legislature
City of San Jose
Eden Housing
El Dorado County Commission on Aging
Golden State Manufactured-Home Owners League, Inc.
Jericho
Lewis Operating Companies
PEP Housing
Retirement Housing Foundation (Long Beach)
San Diego Housing Federation
Triple A Council of California, Inc.
United Seniors of Alameda County
OPPOSITION : (Verified 7/18/07)
Department of Housing and Community Development
ARGUMENTS IN SUPPORT : According to the sponsors of the
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bill, California is facing an affordable senior housing
shortage. There are more seniors who need affordable
housing than there are units available. The sponsors also
believe that senior housing projects are not competitive
under the current program structure. By requiring that MHP
funding be allocated to senior developments in the same
proportion as the number of lower income senior renters
represents the total number of lower income renter seniors,
the sponsors believe that senior housing would be assured
fair access.
ARGUMENTS IN OPPOSITION : HCD does not believe this bill
is necessary. HCD believes that low-income seniors already
receive a fair share of housing funds under the MHP
program. In addition, they believe that establishing a
set-aside within MHP will reduce the program's ability to
respond to market fluctuations and applicant funding needs.
Recently, HCD surveyed its project sponsors asking about
senior occupancy in buildings without age restrictions, and
the sponsors estimated that 14.6 percent of all assisted
units were occupied by households that included seniors.
Therefore, HCD believes that seniors are receiving their
fair share of housing.
ASSEMBLY FLOOR : 43-29, 05/03/07
AYES: Bass, Beall, Berg, Brownley, Caballero, Charles
Calderon, Carter, Coto, Davis, De La Torre, De Leon,
DeSaulnier, Dymally, Eng, Evans, Feuer, Galgiani,
Hancock, Hayashi, Hernandez, Huffman, Karnette,
Krekorian, Laird, Leno, Levine, Lieber, Lieu, Ma,
Mendoza, Mullin, Nava, Parra, Portantino, Price,
Richardson, Salas, Saldana, Solorio, Swanson, Torrico,
Wolk, Nunez
NOES: Adams, Aghazarian, Anderson, Benoit, Berryhill,
Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller,
Gaines, Garcia, Garrick, Horton, Houston, Jeffries,
Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Silva,
Smyth, Strickland, Tran, Villines, Walters
NO VOTE RECORDED: Arambula, Huff, Jones, Sharon Runner,
Ruskin, Soto, Spitzer, Vacancy
JJA:nl 7/18/07 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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