BILL ANALYSIS
AB 1252
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CONCURRENCE IN SENATE AMENDMENTS
AB 1252 (Caballero)
As Amended June 19, 2008
2/3 vote. Urgency
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|ASSEMBLY: | |(June 6, 2007) |SENATE: |35-0 |(June 23, |
| | | | | |2008) |
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(vote not relevant)
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|COMMITTEE VOTE: |13-0 |(June 26, 2008) |RECOMMENDATION: |Concur |
|(Appropriations) | | | | |
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Original Committee Reference: W., P. & W.
SUMMARY : Appropriates additional funds of the Proposition I C
Housing and Emergency Trust Fund Act of 2006 (Proposition IC) and
the Proposition IB Highway Safety, Traffic Reduction, Air Quality
and the Port Security Bond Act of 2006 (Proposition 1B).
The Senate amendments delete the Assembly version of the bill, and
instead:
1)Make legislative findings and declare that is necessary to
expedite the funding of eligible applications for regional
planning, housing and infill incentive programs and the
Transit-Oriented Development Implementation Program funded under
the Proposition 1C in order to address the state's pressing
housing and infrastructure needs and to augment funding for
Proposition 1B in order to improve the condition and safety of
neighborhood streets and roads, and to improve traffic
congestion, safety and air quality at locations where roads and
highways intersect with railroad crossings at grade.
2)Appropriate the following amounts to the Proposition 1C and
Proposition 1B bond funds to augment specified appropriations in
the 2007-2008 Budget Act:
a) $100 million to augment the Regional Planning, Housing and
Infill Incentive Account;
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b) $50 million to augment the Transit-Oriented Development
Account;
c) $87 million to augment the county portion of the Local
Streets and Roads Program; and,
d) $63 million to augment the Grade-Separation program.
3)Include an urgency clause allowing this bill to take effect
immediately upon enactment.
AS PASSED BY THE ASSEMBLY , this bill created the Housing-related
Parks Program to be administered by the Department of Parks and
Recreation, using funds authorized by Proposition 1C, to provide
grants to cities and counties for creation or rehabilitation of
parks in conjunction with eligible housing projects.
FISCAL EFFECT : According to the Senate Appropriations Committee
analysis, the fiscal impact is as follows:
Fiscal Impact (in thousands)
Major Provisions 2007-08* 2008-09 2009-10 Fund
Infill Program augmentation $100,000 Bond**
TOD Program augmentation $50,000 Bond***
Local Street/Roads augmentation $87,000 Bond****
for counties
Grade Separation augmentation$63,000 Bond*****
* NOTE: Assuming the bill is chaptered prior to June 30, 2008,
these appropriations could occur in the current fiscal year,
otherwise they would occur in 2008-09.
** Regional Planning, Housing, and Infill Incentive Account
(Proposition 1C)
*** Transit-Oriented Development Fund (Proposition 1C)
**** Local Street and Road Improvement, Congestion Relief, and
Traffic Safety Account
(Proposition 1B)
***** Highway-Railroad Crossing Safety Account (Proposition 1B)
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COMMENTS : This bill, sponsored by the Department of Housing and
Community Development (HCD), would provide additional
appropriations to the Infill Incentive Grant Program and the
Transit-Oriented Development Program under Proposition 1C and the
county portion of the Local Streets and Roads Program and the Grade
Separation program under Proposition 1B. This is critically
needed to help invigorate the economy and also fund projects that
provide affordable housing and infrastructure incentives for cities
and counties.
Proposition 1C augmentation: Under Proposition 1C, the Housing
Bond of 2006, there are two new programs, the Infill Incentives
Grant Program and the Transit Oriented Development program. The
Legislature appropriated $240 million for the Infill Program and
$95 million for TOD. During the past year, HCD has worked with
numerous stakeholders to draft the guidelines for the programs and
applications were due for both programs this spring. The resulting
applications in both programs were severely oversubscribed as
follows:
1)Infill Incentives Grant Program: $240 million allocation HCD
received 124 applications totaling $1 billion in funding
requests.
2)Transit-Oriented Development Program: $95 million allocation HCD
received 58 applications totaling $544 million in funding
requests.
AB 1252 would help to fund additional projects by appropriating
more funds for the current Notice of Funding Availability (NOFA).
This will help to stimulate the economy and fund projects that
would otherwise have to wait until next year.
Proposition 1B augmentations: Proposition 1B authorizes the
issuance of $19.925 billion in general obligation bonds, including
$2 billion for the Local Streets and Road Improvement, Congestion
Relief, and Traffic Safety Account of 2006 for allocation by the
State Controller to cities and counties for local streets and
roads, and $250 million for the Highway-Railroad Crossing Safety
Account for allocation to the Department of Transportation
(Caltrans) and other eligible applicants for high-priority grade
separation and railroad crossing safety improvements. These funds
are available upon appropriation by the Legislature.
The Budget Act of 2007 appropriated $950 million for the Local
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Streets and Roads Program ($550 million for cities and $400 million
for counties) and $122.5 million for the Grade-Separation Program.
AB 1252 would appropriate $87 million for allocation to counties as
an augmentation of the Local Streets and Roads Program and $63
million for allocation to Caltrans and eligible applicants as an
augmentation of the Grade-Separation to accelerate funding for
these programs in the current fiscal year.
AB 1252 is an urgency measure needed to address the state's
pressing need for affordable housing and transportation
infrastructure, to remedy the need for housing options that are
located closer to worker's jobs, to improve related transportation
facilities and options to shorten commutes and make existing trips
faster, safer and more economical and to stimulate the economy.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0005604