BILL NUMBER: AB 767	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2009
	AMENDED IN ASSEMBLY  APRIL 20, 2009

INTRODUCED BY   Assembly Members Ammiano and Bass

                        FEBRUARY 26, 2009

   An act to amend Section 53545 of the Health and Safety Code,
relating to housing  , and declaring the urgency thereof, to take
effect immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 767, as amended, Ammiano. Housing and Emergency Shelter Trust
Fund of 2006: reversion of funds.
   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. One billion five
hundred million dollars of proceeds from the sale of these bonds are
required to be deposited in the Affordable Housing Account and a
specified amount of money in the account are to be transferred to the
Housing Rehabilitation Loan Fund, expended under the Multifamily
Housing Program, and the Building Equity and Growth in Neighborhoods
Fund, to be used for the Building Equity and Growth in Neighborhoods
Program. Existing law requires that any funds not encumbered for
these purposes within 30 months of availability revert for general
use in the Multifamily Housing Program and CalHome Program,
respectively.
   This bill would require that funds transferred to the Housing
Rehabilitation Loan Fund that are not encumbered by July 31, 
2012   2011  , revert for general use unless the
Department of Housing and Community Development determines that the
funds should revert sooner due to diminished demand. The bill would
also require that funds transferred to the Building Equity and Growth
in Neighborhoods Fund that are not encumbered by  August 17,
2012,   November 17, 2011,  revert for general use
unless the department determines that the funds should revert sooner
due to diminished demand. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  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
by July 31,  2012   2011 , shall revert
for general use in the Multifamily Housing Program unless the
department determines that funds should revert sooner due to
diminished demand.
   (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).
   (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 by  August 17, 2012  
November 17, 2011  , shall revert for general use in the CalHome
Program unless the department determines that funds should revert
sooner due to diminished demand.
   (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.
   SEC. 2.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to avoid a reversion of funds appropriated for housing
for homeless youth under the Multifamily Housing Program, it is
necessary that this act take effect immediately.