BILL NUMBER: AB 1017 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2007
INTRODUCED BY Assembly Member Ma
FEBRUARY 22, 2007
An act to amend Section 53545 of the Health and Safety
Code, relating to housing. An act to add Chapter 8
(commencing with Section 50700) to Part 2 of Division 31 of the
Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1017, as amended, Ma. Housing and Emergency Shelter
Trust Fund Act of 2006. Affordable housing program.
Existing law provides for various affordable housing development
incentive programs.
This bill would establish the California Affordable Housing
Revolving Development and Acquisition Program under the
administration of the Department of Housing and Community Development
for the purpose of funding projects to develop or preserve
affordable housing. The bill would establish the California
Affordable Housing Revolving Development and Acquisition Fund in the
State Treasury and would make moneys in the fund available for the
purposes of making loans authorized under the bill. The bill would
require the department to issue a Notice of Funding Availability to
select a private sector entity to manage the fund, including
reviewing and approving loan applications, originating loans, and
servicing loans. The bill would, upon appropriation by the
Legislature, require the sum of $25,000,000 to be transferred to the
fund from the Affordable Housing Innovation Fund in the State
Treasury.
The bill would also establish the Affordable Housing Committee in
state government, consisting of the Director of Housing and Community
Development, or his or her designee, and 4 additional members
appointed by the Senate Committee on Rules and the Assembly Committee
on Rules. The bill would establish the Affordable Housing Committee
Fund in the State Treasury and would make moneys in the fund
available for the purposes of making loans authorized under the bill.
The bill would require the committee to manage the fund and review
and approve loan applications, originate loans, and service loans.
The bill would, upon appropriation by the Legislature, require the
sum of $25,000,000 to be transferred to this fund from the Affordable
Housing Innovation Fund in the State Treasury.
Existing law, the Housing and Emergency Shelter Trust Fund Act of
2006, authorizes the issuance of bonds in the amount of
$2,850,000,000 pursuant to the State General Obligation Bond Law.
Proceeds from the sale of these bonds are required to be used to
finance various existing housing programs, capital outlay related to
infill development, brownfield cleanup that promotes infill
development, and housing-related parks.
This bill would require that funds made available under the bond
act for certain purposes be allocated in conformance with certain
requirements, including (1) that a funded project be consistent with
the general plan of the jurisdiction in which the project is located,
(2) that not less than an unspecified percent of the funds allocated
to the project be used to assist families of low income in achieving
first-time home ownership, and (3) that priority be assigned to
grant applicants who match grants with funds not made available under
the bond act.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8 (commencing with Section
50700) is added to Part 2 of Division 31 of the Health and
Safety Code , to read:
CHAPTER 8. AFFORDABLE HOUSING PROGRAMS
50700. (a) The California Affordable Housing Revolving
Development and Acquisition Program is hereby established under the
administration of the department for the purpose of funding projects
to develop or preserve affordable housing.
(b) The California Affordable Housing Revolving Development and
Acquisition Fund is hereby established in the State Treasury. Upon
appropriation by the Legislature, moneys in the fund shall be
available for the purposes of making loans authorized under this
section.
(c) The department shall issue a Notice of Funding Availability to
select a private sector entity to manage the fund. The fund manager
shall be all of the following:
(1) A nonprofit lender based in this state.
(2) The originator and servicer of loans in the aggregate amount
of one hundred million dollars ($100,000,000) or more per year that
are used to develop or acquire affordable housing, including ten
million dollars ($10,000,000) or more in acquisition loans.
(3) The originator of loans in the aggregate amount of fifty
million dollars ($50,000,000) or more using the lender's own capital.
(4) The originator of loans in the aggregate amount of twenty-five
million dollars ($25,000,000) or more using investor capital,
subject to oversight by lending partners.
(d) The fund manager shall review and approve loan applications,
originate loans, and service loans.
(e) Applicants may apply for loans to purchase real property for
the development or preservation of housing affordable to low-income
households.
(f) Applicants shall demonstrate all of the following:
(1) The support of the local government in which the real property
is located for the proposed development project. Support may be
demonstrated through a letter from the governing board or the manager
of the housing or community development department.
(2) Availability of additional funds equal to three times the loan
amount.
(3) Sufficient organizational stability and capacity to carry out
the proposed development project for which the property is being
purchased. Capacity may be demonstrated by substantial successful
experience performing similar activities, or through other means
acceptable to the department.
(4) Not less than five years of experience in the construction or
acquisition and rehabilitation of affordable housing in this state.
(5) Completion of not less than five housing development projects
during the past five years, with each project having not less than 40
percent of the units sold at affordable housing cost, as defined in
Section 50052.5.
(g) The department shall adopt regulations establishing the
minimum criteria required of the fund manager and applicants, as well
as a point system for prioritizing requests in the event that
requests exceed the funds available for the program in any given
year.
(h) Upon appropriation, the sum of twenty-five million dollars
($25,000,000) shall be transferred to the fund from the Affordable
Housing Innovation Fund established under subparagraph (F) of
paragraph (1) of subdivision (a) of Section 53545.
50702. (a) The Affordable Housing Committee is hereby established
in state government, consisting of five members appointed as
follows:
(1) Two members shall be local elected officials who have
extensive backgrounds in the development of affordable housing
programs and shall be selected and appointed by the Senate Committee
on Rules.
(2) Two members shall be local elected officials who have
extensive backgrounds in the development of affordable housing
programs and shall be selected and appointed by the Assembly
Committee on Rules.
(3) The fifth member shall be the Director of Housing and
Community Development or his or her designee.
(b) The Affordable Housing Committee Fund is hereby established in
the State Treasury. Upon appropriation by the Legislature, moneys in
the fund shall be available for the purposes of making loans
authorized under this section.
(c) The committee shall manage the fund and shall review and
approve loan applications, originate loans, and service loans.
(d) Applicants may apply for loans to purchase real property for
the development or preservation of housing affordable to low-income
households.
(e) Applicants shall demonstrate all of the following:
(1) The support of the local government in which the real property
is located for the proposed development project. Support may be
demonstrated through a letter from the governing board or the manager
of the housing or community development department.
(2) Availability of additional funds equal to three times the loan
amount.
(3) Sufficient organizational stability and capacity to carry out
the proposed development project for which the property is being
purchased. Capacity may be demonstrated by substantial successful
experience performing similar activities, or through other means
acceptable to the department.
(4) Not less than five years of experience in the construction or
acquisition and rehabilitation of affordable housing in this state.
(5) Completion of not less than five housing development projects
during the past five years, with each project having not less than 40
percent of the units sold at affordable housing cost, as defined in
Section 50052.5.
(f) Upon appropriation by the Legislature, the sum of twenty-five
million dollars ($25,000,000) shall be transferred to the fund from
the Affordable Housing Innovation Fund established under subparagraph
(F) of paragraph (1) of subdivision (a) of Section 53545.
SECTION 1. Section 53545 of the Health and
Safety Code is amended to read:
53545. The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
(a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
(A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
(ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
within 30 months of availability shall revert for general use in the
Multifamily Housing Program.
(B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
(i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
(ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
(C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
(D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
(F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house
of the Legislature. Any funds not encumbered for the purposes set
forth in this subparagraph within 30 months of availability shall
revert to the Self-Help Housing Fund created by Section 50697.1 and
shall be available for the purposes described in subparagraph (D).
Funds made available under this subparagraph shall be allocated in
conformance with all of the following:
(i) A requirement that a project funded under this subparagraph
shall be consistent with the general plan of the jurisdiction in
which the project is located.
(ii) A requirement that not less than __ _ percent of the funds
allocated to a project be used to assist families of low income in
achieving first-time home ownership.
(iii) A requirement that priority be assigned to grant applicants
who match grants funded under this subparagraph with funds not made
available under this section.
(G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph within 30 months of availability shall revert
for general use in the CalHome Program. Funds made available under
this subparagraph shall be allocated in conformance with all of the
following:
(i) A requirement that a project funded under this subparagraph
shall be consistent with the general plan of the jurisdiction in
which the project is located.
(ii) A requirement that not less than __ _ percent of the funds
allocated to a project be used to assist families of low income in
achieving first-time home ownership.
(iii) A requirement that priority be assigned to grant applicants
who match grants funded under this subparagraph with funds not made
available under this section.
(H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
(2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
(3) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this subdivision, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this subdivision. The first audit shall be
conducted no later than one year from voter approval of this part.
(4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
(b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
(1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
(A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
(B) Water, sewer, or other public infrastructure costs associated
with infill development.
(C) Transportation improvements related to infill development
projects.
(D) Traffic mitigation.
(2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
(c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
50560).
(d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute. Funds made
available under this subparagraph shall be allocated in conformance
with both of the following:
(1) A requirement that a project funded under this subdivision
shall be consistent with the general plan of the jurisdiction in
which the project is located.
(2) A requirement that priority be assigned to grant applicants
who match grants funded under this subdivision with funds not made
available under this section.