BILL NUMBER: AB 221 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 9, 2011
PASSED THE ASSEMBLY MAY 31, 2011
INTRODUCED BY Assembly Member Carter
FEBRUARY 1, 2011
An act to amend Sections 53533 and 53545 of the Health and Safety
Code, relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 221, Carter. The Housing and Emergency Shelter Trust Fund Acts
of 2002 and 2006: supportive housing.
The Housing and Emergency Shelter Trust Fund Acts of 2002 and 2006
authorized the issuance of bonds pursuant to the State General
Obligation Bond Law to fund various housing programs administered by
the Department of Housing and Community Development. Under the acts,
specified amounts of funds are transferred to the Emergency Housing
and Assistance Fund to be distributed in the form of capital
development grants under the Emergency Housing and Assistance
Program.
This bill would require that the funds transferred to the
Emergency Housing and Assistance Fund pursuant to both acts also be
made available for supportive housing purposes, as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53533 of the Health and Safety Code is amended
to read:
53533. (a) Moneys deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
(1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
Chapter 5 (commencing with Section 50600) of Part 2.
(B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any applicable
per-unit or project loan limits and may be in the form of a grant.
Service providers shall ensure that services are available to project
residents on a priority basis over the general public.
(C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to Section
50843.
(D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
(i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within one
mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
(ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
(iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
(iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
(v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (3) of subdivision (a) of Section 50898.1.
(E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
(2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800) of Part 2 and for
supportive housing purposes specified in paragraph (3).
(3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for supportive housing projects under the Multifamily Housing
Program authorized by Chapter 6.7 (commencing with Section 50675) of
Part 2, to serve individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
(4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
(A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations. If, after July 1, 2003, funds remain after the approval
of all feasible applications, the department shall be deemed an
eligible recipient for the purposes of reconstructing migrant centers
operated through the Office of Migrant Services pursuant to Chapter
8.5 (commencing with Section 50710) that would otherwise be scheduled
for closure due to health or safety considerations or are in need of
significant repairs to ensure the health and safety of the
residents. Of the moneys allocated by this subparagraph, the
department shall receive fifteen million dollars ($15,000,000) for
these purposes subject to the following conditions and requirements:
(i) The amount available to the department as a recipient shall be
limited to ten million seven hundred thousand dollars ($10,700,000)
prior to September 1, 2006. The department may receive up to four
million three hundred thousand dollars ($4,300,000) in additional
funds after that date and prior to July 1, 2007, to the extent that
unencumbered funds are available.
(ii) The department shall make at least eight million one hundred
fifty-nine thousand dollars ($8,159,000) available for flexible loans
and grants for projects that serve migratory agricultural workers
pursuant to subdivision (a) of Section 50517.10. These funds shall be
available for encumbrance until September 1, 2006.
(iii) Any funds allocated by this subparagraph remaining
unencumbered on July 1, 2007, shall revert for general use in the Joe
Serna, Jr. Farmworker Housing Grant Program.
(B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
(C) Except as provided in subparagraph (A), funds not encumbered
for the purposes set forth in this paragraph within 30 months of
availability shall revert for general use in the Joe Serna, Jr.
Farmworker Housing Grant Program.
(5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
(A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 4.5 (commencing with Section
50860) of Part 1.
(B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to Chapter 3.5
(commencing with Section 11340) of Part 1 of Title 2 of the
Government Code.
(C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
(6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to Chapter 3.5
(commencing with Section 11340) of Part 1 of Title 2 of the
Government Code. If the moneys allocated pursuant to this paragraph
are not expended within three years after being transferred, the
department may, in its discretion, transfer the moneys to the Housing
Rehabilitation Loan Fund to be expended for the Multifamily Housing
Program.
(7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
(B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600). The agency may
transfer these moneys as often as quarterly in amounts that shall not
exceed the dollar amount of new insurance written by the agency
during the preceding quarter for loans for the purchase of homes made
to owner-occupant borrowers with incomes not exceeding 120 percent
of the area median income, divided by the risk-to-capital ratio
required for the maintenance of satisfactory credit ratings from
nationally recognized credit rating services.
(C) (i) Twelve million five hundred thousand dollars ($12,500,000)
shall be reserved for downpayment assistance to low-income
first-time home buyers who, as documented to the agency by a
nonprofit organization certified and funded to provide home ownership
counseling by a federally funded national nonprofit corporation, are
purchasing a residence in a community revitalization area targeted
by the nonprofit organization and who have received home ownership
counseling from the nonprofit organization. Community revitalization
areas shall be limited to targeted neighborhoods identified by
qualified nonprofit organizations as those neighborhoods in need of
economic stimulation, renovation, and rehabilitation through efforts
that include increased home ownership opportunities for low-income
families.
(ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sale price.
(iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
(D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
(E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
(8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
(b) No portion of the moneys allocated pursuant to this section
may be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with this part, and that awardees of bond proceeds
are using funds in compliance with applicable provisions of this
part.
SEC. 2. Section 53545 of the Health and Safety Code is amended to
read:
53545. The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
(a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
(A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
(ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
(B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
(i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
(ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
(C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
(D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
(F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
(G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
(H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund for both of the following
purposes:
(i) Distribution of capital development grants under the
Emergency Housing and Assistance Program authorized by Chapter 11.5
(commencing with Section 50800) of Part 2 of Division 31. The funds
shall be administered by the Department of Housing and Community
Development in a manner consistent with the restrictions and
authorizations contained in Provision 3 of Item 2240-105-0001 of the
Budget Act of 2000, except that any appropriations in that item shall
not apply. The competitive system used by the department shall
incorporate priorities set by the designated local boards and their
input as to the relative merits of submitted applications from within
the designated local board's county in relation to those priorities.
In addition, the funding limitations contained in this section shall
not apply to the appropriation in that budget item.
(ii) The availability of funds for supportive housing purposes
specified in subparagraph (B).
(2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
(3) With the revenues from bond proceeds issued and sold pursuant
to this part, the Bureau of State Audits shall conduct periodic
audits to ensure that bond proceeds are awarded in a timely fashion
and in a manner consistent with the requirements of this section, and
that awardees of bond proceeds are using funds in compliance with
applicable provisions of this section. The first audit shall be
conducted no later than one year from voter approval of this part.
(4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
(b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
(1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
(A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
(B) Water, sewer, or other public infrastructure costs associated
with infill development.
(C) Transportation improvements related to infill development
projects.
(D) Traffic mitigation.
(2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
(c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
(d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.