BILL NUMBER: AB 2447 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2012
AMENDED IN ASSEMBLY APRIL 17, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Members Skinner and John A. Pérez
FEBRUARY 24, 2012
An act to add Part 14 (commencing with Section 53565) to Division
31 of the Health and Safety Code, relating to housing, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2447, as amended, Skinner. The California
Neighborhood Revitalization Partnership Act of 2012.
The Housing and Emergency Shelter Trust Fund Act of 2006
authorizes the issuance of bonds to finance various housing programs,
capital outlay related to infill development, brownfield cleanup
that promotes infill development, housing-related parks, and
transit-oriented development programs. Existing law transfers bond
moneys to the Self-Help Housing Fund to be expended for purposes of
the California Homebuyer's Downpayment Assistance Program, as
specified.
This bill would establish the California Neighborhood
Revitalization Partnership Act of 2012, to be administered by the
California Housing Finance Agency in consultation with the Department
of Housing and Community Development, to finance affordable housing
for low- to moderate-income households. The bill would authorize
specified applicants, as defined, to apply for grant or loan moneys
from the agency on a competitive basis for purposes of financing,
among other things, the purchase of foreclosed homes, the
establishment of land banks for foreclosed homes, the demolition of
blighted structures, and the redevelopment of demolished or vacant
properties. The bill would transfer $25,000,000 from bond moneys made
available to the California Homebuyer's Downpayment Assistance
Program from the Self-Help Housing Fund to a newly created fund, the
California Neighborhood Revitalization Fund, for these purposes, as
specified, and would make an appropriation to fund the program in an
unspecified amount. The bill would require the agency to issue
guidelines for purposes of implementation by a specified date.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares the following:
(a) At a time when the housing challenges facing California are
extraordinary, it is incumbent upon the Legislature to evaluate and
make changes, where necessary, in underperforming housing bond
programs.
(b) The Legislature must act with a comprehensive focus to address
the effects that the record number of foreclosures have had on home
values throughout the state, the public health and safety of
California neighborhoods, and the economic stability of our
communities.
(c) It is the goal of the Legislature to harness the innovation of
the business community, nonprofit organizations, private investors,
and governmental entities to create investment opportunities to help
address the various aspects of the foreclosure crisis.
(d) The collaboration of financial institutions and government is
key to designing a scalable program that rehabilitates foreclosed
properties and reintegrates them into the housing market as
properties for rent or repurchase.
SEC. 2. The heading of Part 14 (commencing with
Section 53565) is added to Division 31 of the Health and Safety
Code, to read:
PART 14. The California Neighborhood Revitalization
Partnership Act of 2012
53565. This act shall be known and cited as the California
Neighborhood Revitalization Partnership Act of 2012.
53566. There is hereby established the California Neighborhood
Revitalization Partnership Act of 2012, to be administered by the
California Housing Finance Agency in consultation with the Department
of Housing and Community Development, to finance affordable housing
for low- to moderate-income households and to revitalize
neighborhoods damaged by the foreclosure crisis.
53567. For purposes of this part, the following definitions have
the following meanings:
(a) "Agency" means the California Housing Finance Agency.
(b) "Applicant" means a local governmental entity, a housing
nonprofit organization, or a consortium of nonprofit entities, or a
combination thereof. An "applicant" also includes a for-profit
developer that may jointly apply for grants with a local government
or a nonprofit entity or consortium of nonprofit entities.
(c) "Executive director" means the executive director
Executive Director of the California Housing
Finance Agency.
(d) "Foreclosed property" means a home or residential property
which title has been acquired by the foreclosing entity at a trustee
sale.
(e) "Fund" means the California Neighborhood Revitalization Fund
as created pursuant to Section 53569.
53568. The executive director or his or her designee shall carry
out the following duties and responsibilities under the act:
(a) Facilitate the interaction and negotiation between financial
institutions, private investors, local governments, nonprofits, or a
consortium of nonprofit entities in the identification and
acquisition of foreclosed properties for resale, rental, or
lease-to-own structures for low- and moderate-income families.
(b) Award grants or loans from the California Neighborhood
Revitalization Fund to applicants.
(c) Develop strategies with the California Energy
State Energy Resources Conservation and Development
Commission and the California Public
Utilities Commission to leverage investments in the rehabilitation of
foreclosed properties to improve energy efficiency.
(d) Maximize job and apprenticeship opportunities by coordinating
multiple program investments.
53569. (a) There is hereby established the California
Neighborhood Revitalization Fund for purposes of this act.
(b) From bond moneys made available to the California Homebuyer's
Downpayment Assistance Program pursuant to subparagraph (E) of
paragraph (1) of subdivision (a) of Section 53545, twenty-five
million dollars ($25,000,000) shall be transferred from the Self-Help
Housing Fund to the fund, notwithstanding Section 50697.1.
(c) For purposes of implementing this part, ___ dollars ($___)
shall be appropriated to the agency on a one-time basis. The further
expenditure of the balance of the fund shall be subject to
appropriation by the Legislature.
(d) Administrative costs of the agency, including audit and
program oversight costs of the agency, shall not exceed 5 percent of
the program's costs.
(e) The agency may accept and receive gifts, grants, or donations
from any agency of the United States, any agency of the state, or any
municipality, county, or other political subdivision of the state.
53570. Funding to applicants pursuant to this part shall be
awarded in the form of grants or loans pursuant to Sections 53571 and
53572. The agency shall allocate funds on a competitive basis.
53571. Eligible uses for funding shall include, but shall not be
limited to, the following purposes:
(a) Establish financing mechanisms for purchase and rehabilitation
of foreclosed homes and residential properties.
(b) Purchase homes and residential properties abandoned or
foreclosed.
(c) Establish land banks for foreclosed homes.
(d) Demolish blighted structures.
(e) Redevelop demolished or vacant properties.
53572. (a) The agency shall develop guidelines by March 14, 2013,
in consultation with the Department of Housing and Community and
Development, the California Energy State
Energy Resources Conservation and Development Commission, the
California Public Utilities Commission, local
governments, nonprofit housing entities, and financial institutions.
Guidelines adopted by the agency shall include, but shall not be
limited to, the following:
(1) An application process for the funds.
(2) A requirement for a contribution of a specified percentage of
funds leveraged from other sources.
(3) Project selection criteria.
(4) Accountability and auditing requirements.
(5) Ranges for grant and loan amounts.
(6) A requirement for affordability covenants of at least 55 years
on rental units funded by the act.
(b) (1) Prior to the adoption of the guidelines, the agency shall
hold not less than one public hearing.
(2) The guidelines shall be adopted at a public hearing.
(c) The guidelines shall not be subject to the requirements of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).