BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1392
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Steinberg
                                                         VERSION:  
          4/12/2010
          Analysis by: Mark Stivers                      FISCAL:  Yes
          Hearing date: April 20, 2010








          SUBJECT:

          Department of Housing and Community Development reporting  
          requirements

          DESCRIPTION:

          This bill requires the Department of Housing and Community  
          Development (HCD) to include in its annual report for each  
          Proposition 1C program the amount of funds it awarded and  
          encumbered in the prior year.

          ANALYSIS:

          Current law requires HCD to submit an annual report to the  
          governor and both houses of the Legislature detailing the  
          operations and accomplishments of the housing programs it  
          administered in the previous fiscal year. This report must  
          include: 

                 The number of units assisted by HCD 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.
                 The extent to which the special housing needs of various  
               groups were met.
                 Information on the activities of local agencies to  
               enforce the Employee Housing Act, which requires the  
               inspection of employee-owned housing.
          




          SB 1392 (STEINBERG)                                       Page 2

                                                                       


          The Housing and Emergency Shelter Trust Fund Act of 2006  
          (Proposition 1C), SB 1689 (Perata), Chapter 27, Statutes of  
          2006, authorized the issuance of $2.85 billion in general  
          obligation bonds to finance various existing and new housing  
          programs.  For most but not all of the programs funded by  
          Proposition 1C, the statute requires HCD to include in its  
          annual report information on how awardees expended bond funds  
          that HCD made available and allocated in the prior year.   
          Because of a drafting issue, the statute does not require HCD to  
          report this information for those programs that the Legislature  
          amended into SB 1689 late in the process, namely the Infill  
          Infrastructure Grant Program, the Transit-Oriented Development  
          Housing Program, and the Housing-Related Parks Program.



           This bill  requires HCD to include in its annual report the  
          following information for all of its Proposition 1C programs:

           The amount of funds it made available and awarded in the prior  
            year.
           The amount of funds it encumbered in the prior year.
          
          COMMENTS:

           1.Purpose of the bill  .  Current law does not require HCD to  
            report on its specific activities for three of the biggest  
            Proposition 1C programs: the Infill Infrastructure Grant  
            Program, the Transit-Oriented Development Housing Program, and  
            the Housing-Related Parks Program.  This bill ensures that HCD  
            reports on these programs and requires that HCD include  
            information on both the amount of funds awarded and the amount  
            of funds disbursed in the prior year on a per-project and  
            aggregate basis for each program.  This allows the Legislature  
            and the public to better track the flow of Proposition 1C bond  
            funds to construction projects.

           2.Technical amendments  .  In order to clarify the author's  
            intent, page 6 lines 38-39 and page 7 lines 1-4 should be  
            amended to read as follows:

               (e)(1) In its annual report to the Legislature, the  
               department shall include for each program it administers  
               with funds pursuant to this section all of the following  
               information:
                (A)       The amount of funds that were awarded in the  




          SB 1392 (STEINBERG)                                       Page 3

                                                                       


                  prior year on a per-project and aggregate basis.
                (B)       The amount of funds that were disbursed in the  
                  prior year on a per-project and aggregate basis.

           3.Chaptering conflict  .  Both this bill and AB 2762 (Housing and  
            Community Development Committee) amend Section 53545 of the  
            Health and Safety Code.  At some point in the process, the  
            authors will need to incorporate chaptering amendments into  
            each bill.  
          
          RELATED LEGISLATION

          SB 608 (Ducheny) requires HCD to include in its annual report  
          cumulative information across years on programs funded under the  
          Housing and Emergency Shelter Trust Fund Acts of 2002 and 2006.   
          On the Assembly inactive file.
          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday,
                     April 14, 2010)

               SUPPORT:  None received.

               OPPOSED:  None received.