BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2762|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
CONSENT
Bill No: AB 2762
Author: Assembly Housing and Community Development
Committee
Amended: 6/22/10 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 6/29/10
AYES: Lowenthal, Huff, DeSaulnier, Harman, Kehoe, Pavley,
Simitian, Wolk
NO VOTE RECORDED: Ashburn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/20/10 (Consent) - See last page
for vote
SUBJECT : 2010 housing omnibus bill
SOURCE : Author
DIGEST : This bill makes non-controversial changes to
sections of law relating to housing.
ANALYSIS :
This bill includes the following provisions:
1. Technical clean-up relating to mobilehomes and
manufactured homes . [sections 1 and 1.3] The Business
and Professions Code contains a number of references to
CONTINUED
AB 2762
Page
2
"mobilehomes" but not to the more recent "manufactured
homes." The bill adds the term "manufactured homes"
where appropriate and corrects cross-references to the
Code of Federal Regulations.
2. Update of terminology in the Mobilehome Residency Law .
[Section 1.6] The Mobilehome Residency Law (MRL)
contains the term "warehouseman's lien," while the
analogous sections of law use the updated term
"warehouse lien." The bill updates the MRL to use the
updated term.
3. Technical cleanup of housing element law . [Section 1.9]
Under current housing element law, in the event that a
city or county cannot identify adequate sites to
accommodate its housing need from its existing
inventory, the city or county must adopt a program to
"make sites available during the planning period." Due
to a Legislative Counsel error in drafting AB 2348
(Mullin), Chapter 724, Statutes of 2004, this
subdivision mistakenly refers to the planning period of
the general plan instead of the housing element. The
bill strikes the reference to the general plan and
includes an explanation for the change.
4. Technical clean-up to the Housing Accountability Act .
[Section 2] The Housing Accountability Act provides
that a city or county may not disapprove a housing
element without making specified findings. The law
includes within the definition of "disapprove" the
failure to comply with time periods established in a
specified subparagraph of the Permit Streamlining Act.
The specified subparagraph does not contain any time
periods. The bill corrects the reference to refer to
the subdivision that does contain the time periods.
5. Technical clean-up of California Building Standards Law .
[Sections 2.1 - 2.8] The California Building Standards
Law establishes the Building Standards Commission (BSC)
and the process for adopting state building standards.
There are a number of outdated phrases and references in
the law that need to be changed to reflect current codes
and common terminology; the law includes a number of
provisions that are obsolete; the Department of
AB 2762
Page
3
Industrial Relations no longer adopts building standards
into Title 24; and the BSC is not authorized to accept
outside funding that may become available. The proposed
amendments make these changes.
6. HCD regulations for factory-built housing . [Section
2.9] In 1979, the Legislature transferred authority for
promulgating code-related regulations for manufactured
and factory-built housing under the Factory-Built
Housing Law from the Commission on Housing and Community
Development to the Department of Housing and Community
Development (HCD) and abolished the commission. Some
anachronistic references remain that create problems for
the public. In addition, the Administrative Procedures
Act now distinguishes between "informal" and "formal"
hearings, and all other HCD code-related hearings for
manufactured and factory-built housing are "informal."
This bill updates references to HCD and allows HCD to
hold informal hearings under the California
Factory-Built Housing Law.
7. Redevelopment law and domestic violence shelters .
[Section 3] Current law requires a redevelopment
agency, for each assisted housing development, to record
a Notice of Affordability Restrictions on Transfer of
Property that includes, among other things, the street
address of the property and, if applicable, the
affordable unit numbers. This bill exempts properties
that confidentially house victims of domestic violence
from the requirement that a property's address be
listed.
8. Redevelopment agency posting requirements . [Sections
3.5 and 5.5] AB 987 (Jones), Chapter 690, Statutes of
2007, requires redevelopment agencies to post on their
websites a database of housing units required or
assisted by the agency. The agency must report the
income restrictions, the addresses of the units, size
and number of bedrooms, and the expiration of the
restrictions. The database must be updated annually.
The proposed amendment would resolve the following
problems that have arisen with the current law: (1) some
agencies do not identify when the database was last
updated, making it difficult to ascertain if and when
AB 2762
Page
4
the required annual update occurred; (2) further
restrictions on occupancy beyond income (e.g., units
reserved for seniors) are not required to be identified,
leading some potential residents to believe that the
housing may be available in the future when in fact it
is restricted to criteria they do not meet; and (3)
there is no requirement for an agency to post
implementation plans, which contain very useful
information, on the internet. The bill requires that
redevelopment agencies post the following on their
websites: the date that the posted database of
affordable units was last updated; whether occupancy of
each unit is restricted to a special population (e.g.,
seniors); and the agency's latest implementation plan.
9. Redevelopment law and affordable housing . [Sections 4
and 5] Current law generally prohibits a redevelopment
agency from constructing residential, commercial, and
industrial buildings, except to provide replacement
housing. This bill allows redevelopment agencies to
construct structures in order to provide housing for low
or moderate income households and corrects erroneous
cross references.
10. Repeal outdated programs from Proposition 46 . [Sections
6 and 6.5] Proposition 46, the 2002 housing bond,
funded two new programs related to farmworker housing.
The first allows Farmworker Housing Grant Program funds
to be used for migrant farmworker housing until
September 1, 2006. The second allows HCD to award funds
until January 1, 2004 to a non-profit intermediary to
fund projects integrating farmworker housing and health
care. Awards were made under these programs, the
funding is now all exhausted, and the dates have long
passed. The bill repeals these outdated provisions.
11. Eliminate duplicate numbering . [Section 7] HCD's
sections of the Health and Safety Code contain two chapters
with the number 8.5. The bill renumbers one of these
chapters to be Chapter 8.3
12. Extending the use of guidelines for the Affordable
Housing Revolving Development and Acquisition Program .
[Section 8] Proposition 1C and the follow-up SB 586
AB 2762
Page
5
(Dutton), Chapter 652, Statutes of 2007, allocated $50
million for the Affordable Housing Revolving Development
and Acquisition Program, to be comprised of both a loan
fund and a practitioner fund. SB 586 allows HCD to
operate this program under guidelines for 24 months, and
thereafter requires HCD to adopt formal regulations.
Given that these programs are intended to make five-year
loans, it makes more sense to allow the guidelines to be
in force for the duration of the initial loans and only
require regulations for future requests for
qualifications (RFQs) issued after the initial loans are
repaid. The bill requires HCD to adopt regulations for
the program prior to issuing any RFQs funded with loan
repayments or any other sources.
13. Repeal outdated EHAP section . [Section 9] This section
allocates specific amounts of money to specific counties
under the Emergency Housing Assistance Program for the
1997-98 and 1998-99 fiscal years. Given that it has
been ten years since these funds were allocated, there
is no longer a need for this section. The bill repeals
this outdated section.
14. BSA Audit of TOD And IIG Programs . [Section 10] The
Bureau of State Audits recently finalized an audit of
HCD programs funded by Proposition 1C. This audit did
not look at some of the biggest and newest programs,
namely the Infill Infrastructure Grant Program and the
Transit Oriented Development Program, because the Prop
1C language did not require BSA to conduct periodic
audits of the programs funded through the Regional
Planning, Housing, and Infill Incentive Account. The
bill requires BSA to conduct periodic audits of all
Proposition 1C programs and authorizes the use of bond
funds for this purpose.
15. The California Housing Finance Agency (CalHFA) reporting
requirement . [Section 10.5] On February 19, 2010,
President Obama announced $1.5 billion in funding for
innovative measures to help families in the states
hardest hit by foreclosures. As one of only five states
targeted, California was awarded close to $700 million
under the federal Housing Finance Agencies Innovation
Fund for the Hardest-Hit Housing Markets program.
AB 2762
Page
6
(CalHFA) has submitted a proposal to the U.S Treasury
for the state's program and is awaiting approval. The
bill requires CalHFA to provide a report to the
Legislature by December 31, 2011 and 2012, regarding the
status of the program.
Background
The Assembly Housing and Community Development Committee is
authoring this bill as a means of combining multiple,
non-controversial changes to statutes into one bill, so
that the Legislature can make minor amendments in a
cost-effective manner. There is no known opposition to any
item in the bill, and if concerns arise that cannot be
resolved, the provision of concern will be deleted from the
bill.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, DeVore, Emmerson, Eng, Feuer, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,
Ma, Mendoza, Miller, Monning, Nestande, Niello, Nielsen,
Norby, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Yamada
NO VOTE RECORDED: De La Torre, Evans, Fletcher, Harkey,
Nava, Villines, John A. Perez, Vacancy
JJA:do 8/3/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****