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.