BILL NUMBER: AB 1833 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 3, 2008
INTRODUCED BY Assembly Member Anderson
JANUARY 23, 2008
An act relating to crime. An act to amend
Section 53545 of, and to add Section 33334.2b to, the Health and
Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1833, as amended, Anderson. Crime: public safety.
Housing: rehabilitated, foreclosed, and distressed
housing.
(1) The Community Redevelopment Law requires a redevelopment
agency to allocate not less than 20% of the tax-increment revenue
allocated to a redevelopment agency to be used to increase, improve,
and preserve the supply of the community's low- and moderate-income
housing within the territorial jurisdiction of the agency, and, for
this purpose, the funds are held in a separate Low and Moderate
Income Housing Fund.
This bill would authorize a redevelopment agency to expend money
from the Low and Moderate Income Housing Fund to purchase homes that
are in foreclosure and are owned by persons of low or moderate income
residing within its jurisdiction. The bill would require that funds
be expended pursuant to these provisions in a manner that preserves
the exemption from federal and state income taxes of interest on the
bonds or notes issued by the agency under the Community Redevelopment
Law.
(2) 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 deposited in the Housing and
Emergency Shelter Trust Fund of 2006, which the act establishes in
the State Treasury, and 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 the Department of Housing and Community
Development, to the extent allowed under the act, to require a
recipient of a loan or grant under the act to implement any program
or project funded under the loan or grant by purchasing and making
available, to the maximum extent feasible, housing that has been
rehabilitated, has been the subject of foreclosure, or is at
immediate risk of foreclosure.
Existing law contains provisions to protect the public's safety by
criminalizing specified conduct.
This bill would state the intent of the Legislature to enact
legislation to protect the public's safety.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33334.2b is added to the
Health and Safety Code , to read:
33334.2b. The agency may expend money from the Low and Moderate
Income Housing Fund, set forth in Section 33334.3, to purchase homes
that are in foreclosure and are owned by persons of low or moderate
income residing within its jurisdiction. To the extent that revenue
from bonds are expended for this purpose, the funds shall be expended
pursuant to this section in a manner that preserves the exemption
from federal and state income taxes of interest on the bonds or notes
issued by the agency under this division.
SEC. 2. 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
two-thirds 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).
(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.
(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
53560).
(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.
(e) To the extent allowed under the Housing and Emergency Shelter
Trust Fund Act of 2006, the department shall require a recipient of a
loan or grant under this section to implement any program or project
funded under the loan or grant by purchasing and making available,
to the maximum extent feasible, housing that has been rehabilitated,
has been the subject of foreclosure, or is at immediate risk of
foreclosure.
SECTION 1. It is the intent of the Legislature
to enact legislation to protect the public's safety.