BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 1585
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: j. Pérez
VERSION: 6/25/12
Analysis by: Mark Stivers FISCAL: yes
Hearing date: July 3, 2012
SUBJECT:
Reappropriation of Proposition 1C bond funds
DESCRIPTION:
This bill reappropriates $50 million of Proposition 1C bond
funds to the Infill Infrastructure Grant Program and the
Transit-Oriented Development Program.
ANALYSIS:
In November 2006, California voters approved Proposition 1C, the
$2.85 billion Housing and Emergency Shelter Trust Fund Act of
2006. Among other things, Proposition 1C included:
$790 for the Infill Infrastructure Grant (IIG) Program, under
which the Department of Housing and Community Development
(HCD) offers gap financing grants to cover the costs of
infrastructure improvements necessary for the development of
higher-density affordable and mixed-income housing in
locations designated as infill.
$300 million for the Transit-Oriented Development (TOD)
Program, under which HCD provides grants to cities, counties,
and transit agencies for the provision of infrastructure
necessary to support mixed-income housing developments within
close proximity to a transit station. Housing developers may
also obtain loans for the development of the TOD housing
units.
Over the succeeding years, the Legislature appropriated these
funds to HCD, and HCD awarded all of the funds available under
both programs. For various reasons, some awardees have returned
their awards, making the funds again available for a new round
of awards. HCD reports that it currently has $25 million
available for the IIG Program and another $25 million available
for the TOD Program. HCD made these particular awards in the
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first rounds of funding, for which its appropriation (i.e.,
deadline to encumber funds) expired on June 30, 2008.
This bill reappropriates to HCD $25 million for the IIG Program
and $25 million for the TOD Program from Proposition 1C
accounts.
COMMENTS:
1.Purpose of the bill . According to the author, it is important
to sustain and build critical infrastructure projects in our
state, especially in the housing sector. Given the economic
downturn and loss of jobs in the construction industry, the
state must use its available resources to stimulate recovery
of the economy. In 2006, the voters approved Proposition 1C
and put their faith in government to use bond funds
efficiently and as quickly as possible. The appropriation in
this bill will allow HCD to issue a Notice of Funding
Availability for infill and transit-oriented projects that are
shovel-ready and of great value to our communities and
neighborhoods.
2.More disencumbrances possibly pending . Under both the TOD and
IIG Programs, HCD has set progress deadlines for awardees.
One of the major deadlines is June 30 of this year, and it is
very possible, if not likely, that some awardees will fail to
meet the deadline. HCD is currently in negotiations with
various developers and expects to continue those negotiations
up until the last minute, so the amount, if any, of additional
disencumbrances will not be known until July 1 or later, at
which time the author may wish to appropriate these additional
encumbrances.
Assembly Votes:
Previous votes are not relevant.
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 27,
2012)
SUPPORT: Bridge Housing
California Association of Housing Authorities
California Association of Local Housing Finance
Agencies
California Housing Consortium
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Commercial Investment Services
First Community Housing
John Stewart Company
Non-Profit Housing Association of Northern
California
Oakland Tenants Union
Resources for Community Development
Tenderloin Neighborhood Development Corporation
OPPOSED: None received.