BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2762| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2762 Author: Assembly Housing and Community Development Committee Amended: 8/20/10 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. Senate Floor Amendments of 8/20/10 add double jointing language with SB 812 (Ashburn) and AB 2536 (Carter). ANALYSIS : This bill includes the following provisions: CONTINUED AB 2762 Page 2 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 "mobilehomes" but not to the more recent "manufactured homes." This 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." This 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. This 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. This 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 CONTINUED AB 2762 Page 3 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 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 CONTINUED AB 2762 Page 4 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 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. This 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. This 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. This bill renumbers one of these chapters to be Chapter 8.3 CONTINUED AB 2762 Page 5 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 (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. This 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. This 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. This 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 CONTINUED AB 2762 Page 6 targeted, California was awarded close to $700 million under the federal Housing Finance Agencies Innovation Fund for the Hardest-Hit Housing Markets program. (CalHFA) has submitted a proposal to the U.S Treasury for the state's program and is awaiting approval. This bill requires CalHFA to provide a report to the Legislature by December 31, 2011 and 2012, regarding the status of the program. 16.Contains double jointing language with SB 812 (Ashburn) and AB 2536 (Carter). 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 CONTINUED AB 2762 Page 7 JJA:do:kc 8/23/10 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED