BILL NUMBER: AB 2447	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	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   Section 50650.8 to  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. 
   Existing law, the CalHome Program, authorizes funds appropriated
for purposes of the program to be used to enable low- and very low
income households to become or remain homeowners. 
   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 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. 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.   provide funding to local public
agencies or nonprofit corporations for the purchase and improvement
of foreclosed or abandoned single-family or multifamily residential
properties and for downpayment assistance associated with the resale
of an improved property, subject to specified requirements. The bill
would authorize the Department of Housing and Community Development
to expend $25,000,000 of the bond moneys available in the Self-Help
Housing Fund for the purpose above. 
   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.    This act shall be known and cited as the
California Neighborhood Revitalization Partnership Act of 2012. 

   SEC. 3.    Section 50650.8 is added to the  
Health and Safety Code   , to read:  
   50650.8.  (a) In addition to the requirements of this chapter, the
department shall expend the funds made available by this section as
follows:
   (1) The department shall make available to local public agencies
or nonprofit corporations grants or loans for the purchase and
improvement of foreclosed or abandoned single-family or multifamily
residential properties and for downpayment assistance associated with
the resale of an improved property.
   (2) In making awards pursuant to this section, the department
shall grant bonus points to applicants serving areas with the
greatest percentage of foreclosed properties.
   (3) To be eligible to receive funds pursuant to this section, an
applicant shall demonstrate that it will use funds awarded to
leverage other funds.
   (4) An awardee that purchases and improves a foreclosed or
abandoned single-family or multifamily residential property may sell
the property to a low- or moderate-income household or lease the
property, including entering into a lease-to-own arrangement, to a
low-income household. Any lease payments an awardee receives, less
operating costs and replacement reserves approved by the department,
shall be deemed loan repayments for purposes of subdivision (d) of
Section 50650.3.
   (5) (A) With respect to a property purchased and improved by an
awardee and sold pursuant to paragraph (4), the department shall
require each awardee to sell at least __ percent of its properties at
an affordable housing cost to lower-income households and the
remaining properties at an affordable housing cost to moderate-income
households, as defined in Section 50052.5. The properties shall be
subject to an equity sharing agreement or other form of subsidy
recapture approved by the department.
   (B) The department shall require that properties subject to a
lease or lease-to-own contract be leased at an affordable rent, as
defined in Section 50053, and, unless sold pursuant to the
lease-to-own contract, subject to an affordability covenant of at
least 15 years.
   (6) In implementing this section, the department shall do all of
the following:
   (A) Facilitate the interaction and negotiation between financial
institutions, local governments, and nonprofits in the identification
and acquisition of foreclosed properties.
   (B) 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.
   (C) Maximize job and apprenticeship opportunities by coordinating
multiple program investments.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "Foreclosed property" means a home or residential property to
which title has been acquired by the foreclosing entity at a trustee
sale.
   (2) "Improvement" means one or both of the following:
   (A) Rehabilitation.
   (B) Demolition of blighted structures.
   (c) Notwithstanding any other law, twenty-five million dollars
($25,000,000) of the funds transferred from the Self-Help Housing
Fund pursuant to subparagraph (E) of paragraph (1) of subdivision (a)
of Section 53545 shall be expended by the department for the
purposes of this Section.
   (d) If this section conflicts with any other section of this
chapter, this section shall prevail.  
  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.
   (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) 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) 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.
   (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 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) 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 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).