BILL ANALYSIS
AB 927
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 927 (Saldana)
As Amended September 5, 2007
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |43-29|(May 3, 2007) |SENATE: |28-12|(September 10, |
| | | | | |2007) |
-----------------------------------------------------------------
Original Committee Reference: H. & C. D.
SUMMARY : Requires that funds expended by the Multifamily
Housing Program (MHP) for senior rental housing developments be
dispersed in the same proportion as the number of eligible
seniors bears to the program's overall target population.
The Senate amendments :
1)Provide that the Department of Housing and Community
Development (HCD) shall be deemed to have met it obligation if
the assistance awarded is not less than one percent below the
proportional share.
2)Provide that HCD does not have to provide loans to projects
that fail to meet the minimum threshold requirements.
3)Provide that the proportional share requirement applies only
to the general portion of MHP.
4)Require HCD to determine the time period over which it will
measure compliance with these provisions, but not less than
one year or two funding cycles, whichever is longer.
5)Allow, at the end of the time period noted above, HCD to award
excess funds to units not restricted to senior housing.
6)Require the annual report to the Legislature by HCD to include
a breakdown of funding awards to units restricted to senior
citizens and units that are not age-restricted.
EXISTING LAW :
1)Establishes MHP under the California Department of Housing and
Community Development (HCD) to assist with the new
AB 927
Page 2
construction, rehabilitation and preservation of permanent and
transitional rental housing for lower income households.
[Health and Safety Code Section 50675].
2)Defines "senior citizen housing development" under the Unruh
Civil Rights Act as a residential development that has at
least 35 dwelling units and has been developed, substantially
rehabilitated, or substantially renovated for senior citizens.
[Civil Code Section 51.3].
AS PASSED BY THE ASSEMBLY , this bill:
1)Required that MHP funds be expended for senior rental housing
developments in the same proportion as the number of
lower-income elderly renter households in the state bears to
the total number of lower-income renter households in the
state, as reported by the federal Department of Housing and
Urban Development.
2)Provided that this bill's provisions apply to total
expenditures in MHP, and not to individual projects.
3)Provided that requirements under this bill apply only to
program allocations after the operative date of this bill.
FISCAL EFFECT : According to the Appropriations Committee, no
additional state cost, though the bill will result in some
reallocation of MHP monies among different types of eligible
low-income rental housing projects.
COMMENTS : This bill seeks to address the affordable housing
shortage as it affects seniors specifically.
The sponsors, Aging Services of California, California American
Association of Retired Persons, California Commission on Aging,
Congress of California Seniors, and Housing California, note
that this shortage is particularly acute for senior renters, and
offer that nearly 55% of renters in the state over the age of 62
earn less than $20,000 a year. According to the sponsors, that
figure jumps to more than 60% of those 75 and older. They also
state that households earning $20,000 per year can afford to pay
no more than about $500 per month for rent, while the average
market rent for a one-bedroom apartment in California is $972,
or nearly twice that amount.
AB 927
Page 3
According to HCD, slightly more than one-tenth of the units
developed through MHP since 2003 were developed specifically for
seniors. These units are simply not enough to meet the growing
demand of senior rental housing units, according to the
sponsors.
The supporters contend that there are barriers within MHP that
make it difficult for senior-specific projects to be
competitive. By awarding higher scores for projects that include
family oriented units (e.g., two- and three-bedroom) as well as
units that are reserved for special needs populations (of which
seniors are not necessarily included), the state has
unintentionally created a disparity with respect to how
housing-related resources are distributed.
The author's stated intent is to assure that low-income seniors
have fair access to the benefits of available affordable housing
resources. Requiring that MHP funds be allocated in the same
proportion as the number of lower income senior renters is to
the total number of lower income renters would directly address
that objective.
Analysis Prepared by : Andrew Zingale and Hubert Bower / H. &
C.D. / (916) 319-2085
FN: 0003525