BILL NUMBER: AB 2447 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 26, 2012
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. 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,
and would continuously appropriate those moneys 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 specified guidelines for
purposes of implementation by a specified date. The bill would
provide that the adoption of the guidelines shall not be subject to
the Administrative Procedure Act.
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. 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 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.
(f) "Grantee" means an applicant that is awarded a grant or loan
by the agency pursuant to this part.
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 State Energy Resources
Conservation and Development Commission and the 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.
Notwithstanding Section 50697.1, the sum of
twenty-five million dollars ($25,000,000) is hereby
transferred from the Self-Help Housing Fund pursuant to subparagraph
(E) of paragraph (1) of subdivision (a) of Section 53545 to the fund,
which shall be continuously appropriated for purposes of this part.
(c) For purposes of implementing this part, ___ dollars ($___)
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)
(c) Administrative costs of the agency or a
grantee , including audit and program oversight costs of the
agency or a grantee , shall not exceed 5 percent of the
program's costs.
(e)
(d) 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
grantees 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.
(c) Demolish blighted structures that are foreclosed or abandoned,
or 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 State Energy Resources Conservation and Development
Commission, the 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 15 years on rental units funded by the act.
(7) A requirement that a single-family home that is funded
pursuant to this part include an equity sharing agreement that meets
the following requirements:
(A) Upon resale, the seller of the unit shall retain the value of
any improvements, the downpayment, and the seller's proportionate
share of appreciation. The grantee shall recapture any initial
subsidy, as defined in subparagraph (B), and its proportionate share
of appreciation, as defined in subparagraph (C), which amount shall
be used within five years for any of the purposes described in
subdivision (e) of Section 33334.2 that promote home ownership.
(B) For purposes of this paragraph, the grantee's initial subsidy
shall be equal to the fair market value of the home at the time of
initial sale minus the initial sale price to the moderate-income
household, plus the amount of any downpayment assistance or mortgage
assistance. If upon resale the market value is lower than the initial
market value, then the value at the time of the resale shall be used
as the initial market value.
(C) For purposes of this paragraph, the grantee's proportionate
share of appreciation shall be equal to the ratio of the grantee's
initial subsidy to the fair market value of the home at the time of
initial sale.
(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).