BILL ANALYSIS SB 608 Page 1 Date of Hearing: July 8, 2009 ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT Norma Torres, Chair SB 608 (Ducheny) - As Introduced: February 27, 2009 SENATE VOTE : 37-0 SUBJECT : Housing bond fund expenditures report SUMMARY : This bill would require that cumulative information on programs funded under the Housing and Emergency Shelter Trust Fund Acts of 2002 and 2006 be included in the Department of Housing and Community Development's (HCD) annual report. Specifically, this bill requires that HCD's annual report break out the required information for each program funded by Proposition 46 or Proposition 1C, respectively, and include a cumulative total of this information for all funds distributed under Proposition 46 and Proposition 1C. EXISTING LAW (Health & Safety Code Section 50408): 1)Authorizes the issuance of general obligation bonds (Proposition 46: $2.1 billion and Proposition 1C: $2.8 billion) to finance various existing housing programs as well as additional programs such as capital outlay related to infill development and housing-related parks programs. HCD oversees the distribution funds in of almost all of these programs. 2)Requires that HCD submit an annual report to the Governor and the Legislature detailing the operations and accomplishments of the housing programs administered by the department in the previous fiscal year to include: a) The number of units assisted by HCD programs. b) The number of individuals and households served and their income levels. c) The distribution of units among various areas of the state. d) The amount of other public and private funds leveraged by the assistance provided by those programs. e) Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups. SB 608 Page 2 FISCAL EFFECT : Unknown. COMMENTS : In 2002, California voters approved Proposition 46, the $2.1 billion Housing and Emergency Shelter Trust Fund Act. Proposition 46 provided funding for the following programs: Multifamily Housing Program; Emergency Housing Assistance Program; Supportive Housing; Farmworker Housing Grant Program; CalHome Program; Local Housing Trusts; Code Enforcement Program; California Homebuyer Downpayment Assistance Program; and Jobs Housing Improvement Account. Funds provided under Proposition 46 were for the most part exhausted at the end of 2006. In November 2006, California voters approved Proposition 1C, the Housing and Emergency Trust Fund Act of 2006. Proposition 1C maintains funding provided under Proposition 46 for most, but not all, of the programs noted above. Additionally, Proposition 1C establishes funding mechanisms for infrastructure related to housing development. According to the author, SB 608 would require the current report issued by HCD to include more information on the programs funded under the 2002 and 2006 Housing Bonds, thereby improving oversight of those programs. SB 608 would request the following information on programs funded under the Housing and Emergency Shelter Trust Fund Act of 2002 and 2006: The number of units assisted by those programs. The number of individuals and households served and their income levels. The distribution of units among various areas of the state. The amount of other public and private funds leveraged by the assistance provided by those programs. Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups. A cumulative total for each item of information required. SB 608 Page 3 According to Aging Services of California, access to credible, relevant and timely data is critical to any public policy debate. Not only does it identify accomplishments, it also provides insight into potential gaps that may exist. By requiring HCD to collect information and submit an annual report to the Legislature, SB 608 will help ensure that any policy debate related to housing is informed by facts. Related legislation : This bill is the same as SB 546 (Ducheny, 2007) which passed out of this committee 7-0 and died on the Assembly Inactive File. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085