BILL ANALYSIS Ó
AB 2447
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Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2447 (Skinner) - As Amended: April 30, 2012
Policy Committee: Housing and
Community Development Vote: 5-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the California Neighborhood Revitalization
Partnership Act of 2012. Specifically, this bill:
1)Requires the California Housing Finance Agency (CalHFA) to
administer the act in consultation with the Department of
Housing and Community Development (HCD), to finance affordable
housing for low- to moderate-income households and to
revitalize neighborhoods damaged by the foreclosure crisis.
2)Requires CalHFA to perform the following:
a) Facilitate the interaction and negotiation between
financial institutions, private investors, local
governments and nonprofits to identify and acquire
foreclosed properties for resale, rental or lease-to-own
for low- and moderate-income families.
b) Award grants or loans to applicants on a competitive
basis.
c) Develop strategies with the California Energy Commission
(CEC) and the California Public Utilities Commission (PUC)
to leverage investments to improve energy efficiency in the
rehabilitation of foreclosed homes.
d) Maximize job and apprentice opportunities.
e) Develop guidelines by March 14, 2013, in consultation
with HCD, CEC, PUC, and others
AB 2447
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1)Establishes the California Neighborhood Revitalization Fund
and deposits $25 million from the California Homebuyer
Downpayment Assistance Program into the Fund. The bill
appropriates an unspecified amount to CalHFA to administer the
program.
FISCAL EFFECT
This bill redirects $25 million in bonds approved by Proposition
1C, the Housing and Emergency Trust Fund Act of 2006,
specifically from the $200 million authorized for the California
Homebuyers Downpayment Assistance Program.
COMMENTS
1)Purpose. According to the author, this bill will assist
communities with acquiring foreclosed properties and
rehabilitating these properties into homes for low- and
moderate-income families. The author contends this approach
will transform foreclosed properties, which are negatively
impacting neighborhoods and are often magnets for vandalism
and crime, into affordable, livable homes for families in
need. The author notes, CalHFA will act as an intermediary
between financial institutions, private investors, local
governments and nonprofits in the identification and
acquisition of foreclosed properties for resale, rental or
lease to own structures.
2)California Homebuyers Downpayment Assistance Program :
Proposition 1C authorized $200 million for the California
Homebuyers Downpayment Assistance Program. The program is
administered by CalHFA, and provides loans to low- and
moderate-income first-time home buyers. The loans are in the
form of a deferred- payment, low-interest loan to reduce the
principal and interest payments and make the purchase
affordable. Downpayment assistance is limited to 3% of the
purchase price. Mortgage financing is provided by
participating lenders.
Of the $200 million authorized under Proposition 1C for CHDAP,
$111 million remains. CalHFA reports receiving approximately
400 applications for down payment assistance per month, and
funding approximately 275 loans at a maximum of $7,000 per
AB 2447
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loan. At that rate, all remaining funds could be expended
within four to five years.
3)Neighborhood Stabilization Program: The federal Housing and
Economic Recovery Act of 2008 created the Neighborhood
Stabilization Program, which provided emergency assistance to
state and local governments to acquire and redevelop
foreclosed properties that might otherwise become sources of
abandonment and blight within their communities. The program
provided grants to every state and certain local communities
to purchase foreclosed or abandoned homes and to rehabilitate,
resell, or redevelop these homes in order to stabilize
neighborhoods and stem the decline in value of neighboring
homes. The federal program had three rounds of funding.
California received funding in two of the three rounds.
4)This bill has no registered opposition.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081