BILL NUMBER: SB 562	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Committee on Transportation and Housing (Senators
DeSaulnier (Chair), Gaines, Harman, Huff, Kehoe, Lowenthal, Pavley,
Rubio, and Simitian)

                        FEBRUARY 17, 2011

   An act to amend  Section 8869.84 of the Government Code, to
amend  Sections 18070.2, 18218, 18218.5, 18551, 18866.2, and
33420.1 of, and to repeal Section 33334.29 of, the Health and Safety
Code,   and to amend Section 2705 of, and to repeal Section 2706
of, the Public Resources Code,  relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 562, as amended, Committee on Transportation and Housing.
Housing omnibus bill. 
   (1) Existing law authorizes the California Debt Limit Allocation
Committee to require any issuer making an application to the
committee or the California Tax Credit Allocation Committee for
allocation of a portion of the state ceiling, as defined, to make a
deposit of up to 1% of the portion requested. If an allocation is
given, the committee is required to keep the deposit, in proportion
to the amount of allocation given, until bonds are issued. If no
bonds are issued prior to the expiration of the allocation, the
committee is required to keep the deposit, unless the committee
determines there is good cause to return all or part of the deposit.
 
   This bill would specify that in cases where only a portion or none
of the bonds are issued, the committee may return all or part of the
deposit if it determines there is good cause to do so. 

   (1) 
    (2)  Existing law establishes the Manufactured Home
Recovery Fund, which is continuously appropriated to make payments
and distributions for actual and direct losses, as defined, arising
out of specified transactions regarding the purchase or sale of a
manufactured home, if certain conditions are met. Existing law
prescribes a fee collected by the Department of Housing and Community
Development for each reported sale of a manufactured home, to be
deposited in the fund. Whenever the balance in the fund exceeds
$1,000,000 the department is authorized to reduce or increase the
fee, respectively.
   This bill would instead provide that the department may reduce the
fee when the balance exceeds $2,000,000. 
   (2) 
    (3) Existing law authorizes the redevelopment agency of
the City of Redding to borrow and use a specified amount from its Low
and Moderate Income Housing Fund to provide financial assistance for
the acquisition of property for a veterans home.
   The bill would repeal this provision of law. 
   (4) Existing law requires cities and counties to collect a fee
from each applicant for a building permit, equal to a specific amount
of the proposed construction for which the permit is being issued,
or at specified rates, for seismic hazards mapping and for the
strong-motion instrument program. The city or county is authorized to
retain up to 5% of the total amount it collects for data
utilization, for seismic education incorporating data interpretations
from data of the strong-motion instruments program, the seismic
hazards mapping program, and to improve the preparation for damage
assessment after strong seismic motion events. Any other funds
collected are required to be deposited in the Strong-Motion
Instrumentation and Seismic Hazards Mapping Fund to be used
exclusively for the strong-motion instruments program and the seismic
hazards mapping program, as specified.  
   This bill would make a technical change to these provision. 
   (5) The bill would correct and eliminate erroneous
cross-references, update obsolete terms, correct technical errors,
and make conforming changes to existing law relating to housing.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 8869.84 of the  
Government Code   is amended to read: 
   8869.84.  (a) The committee shall, as soon as is practicable after
the start of each calendar year, determine and announce the state
ceiling for the calendar year.
   (b) The entire state ceiling for each calendar year is hereby
allocated to the committee to further allocate to state and local
agencies as provided in this chapter.
   (c) The committee shall prepare application forms and announce
procedures for receipt and review of applications from state and
local agencies desiring to issue private activity bonds.
   (d) The committee may at any time, before or after granting any
allocations in any calendar year to any state agencies or local
agencies, announce priorities or reservations of any part of the
state ceiling not theretofore allocated either for certain categories
of bonds or categories of issuers.
   (e) The committee may require any issuer making an application to
the committee or MBTCAC for allocation of a portion of the state
ceiling to make a deposit, as determined by the committee, of up to 1
percent of the portion requested. If an allocation is not given, the
deposit shall be returned. If an allocation is given, the deposit
shall be kept, in proportion to the amount of allocation given, until
bonds are issued. Upon that issuance, the deposit shall be returned
to the issuer in an amount equal to the product of (1) the amount of
the deposit retained times (2) the ratio between the amount of bonds
issued divided by the amount of allocation granted. If no bonds are
issued prior to the expiration of the allocation, the deposit shall
be kept  , unless   . However,   in
cases where only a portion or none of the bonds are issued,  the
committee  may return all or part of the deposit if it 
determines there is good cause to  return all or part of the
deposit   do so  . Any portion of a deposit kept
shall be deposited in the fund.
   (f) The committee may transfer part of the state ceiling to the
MBTCAC, to be used for qualified mortgage bonds and exempt facility
bonds or for qualified residential rental projects, as those terms
are used in the Internal Revenue Code, together referred to as
"housing bonds," with directions and conditions pursuant to which
MBTCAC may allocate those amounts to issuers of housing bonds at both
the state and local levels. In carrying out these functions, MBTCAC
shall act solely as directed or authorized by the committee. If the
committee makes the transfer to MBTCAC authorized by this
subdivision, the references in Sections 8869.85, 8869.86, 8869.87,
and 8869.88 to the "committee" shall, for purposes of any housing
bonds, be deemed to mean MBTCAC.
   (g) (1) The committee may establish the Extra Credit Teacher Home
Purchase Program to provide federal mortgage credit certificates and
reduced interest rate loans funded by mortgage revenue bonds to
eligible teachers, principals, vice principals, assistant principals,
and classified employees who agree to teach or provide
administration or service in a high priority school. Priority for
assistance shall be given to eligible teachers, principals, vice
principals, and assistant principals.
   (2) For purposes of this program, the following definitions shall
apply:
   (A) "High priority school" means a state K-12 public school that
is ranked in the bottom half of the Academic Performance Index
developed pursuant to subdivision (a) of Section 52052 of the
Education Code. However, priority shall be given to schools that are
ranked in the lowest three deciles.
   (B) "Classified employee" means an employee of a school district,
employed in a position not requiring certification qualifications.
   (3) The committee may make reservations of a portion of future
calendar year state ceiling limits for up to five future calendar
years for that program. The committee may also make future
allocations of the state ceiling for up to five years for any issuer
under that program. Any future allocation made by the committee shall
constitute an allocation of the state ceiling for a future year
specified by the committee and shall be deemed to have been made on
the first day of the future year so specified. The committee may
condition allocations under the Extra Credit Teacher Home Purchase
Program on any terms and conditions that the committee deems
necessary or appropriate, including, but not limited to, the
execution of a contract between the teacher, principal, vice
principal, assistant principal, or classified employee and the issuer
whereby the teacher, principal, vice principal, assistant principal,
or classified employee agrees to comply with the terms and
conditions of the program. The contract may include, among other
things, an agreement by the teacher, principal, vice principal,
assistant principal, or classified employee to teach or provide
administration or service in a high priority school for a minimum
number of years, and provisions for enforcing the contract that the
committee deems necessary or appropriate.
   (4) If a teacher, principal, vice principal, assistant principal,
or classified employee does not fulfill the requirements of a
contract entered into pursuant to paragraph (3), the issuer of the
mortgage credit certificate or mortgage revenue bond may recover as
an assessment from the teacher, principal, vice principal, assistant
principal, or classified employee a monetary amount equal to the
lesser of (A) one-half of the teacher's, principal's, vice principal'
s, assistant principal's, or classified employee's net proceeds from
the sale of the related residence or (B) the amount of monetary
benefit conferred on the teacher, principal, vice principal,
assistant principal, or classified employee as a result of the
federal mortgage credit certificate or reduced interest rate loan
funded by a mortgage revenue bond, offset by the amount of any
federal recapture, as defined by Section 143(m) of the Internal
Revenue Code. The assessment may be secured by a lien against the
residence, which shall decline in amount over the term of the
contract as the teacher, principal, vice principal, assistant
principal, or classified employee fulfills the term of the contract,
and which shall be collected at the time of sale of the residence.
Any assessment collected pursuant to this paragraph shall be used for
the issuer's costs in administering the Extra Credit Teacher Home
Purchase Program. The issuers shall report annually to the committee
the total amount of any assessments collected pursuant to this
paragraph and how those assessments were used by the issuer.
   (5) If the committee establishes the Extra Credit Teacher Home
Purchase Program pursuant to this subdivision, the committee shall
report annually to the Legislature the results of the program,
including all of the following:
   (A) The amount of state ceiling limits allocated to or reserved
for the program.
   (B) The agencies to which state ceiling limits were issued.
   (C) The number of loans or mortgage credit certificates issued to
teachers, principals, vice principals, assistant principals, and
classified employees.
   (D) The schools or school districts at which recipients of
assistance are employed, aggregated by decile in which the schools
rank on the Academic Performance Index and by the percentage of
uncredentialed teachers employed at the schools.
   (6) The committee shall not make any reservations of future
calendar year state ceiling limits or future allocations of the state
ceiling pursuant to this subdivision on or after January 1, 2004,
unless a later enacted statute, that is enacted before January 1,
2004, deletes or extends that date. However, reservations and
allocations made prior to that date shall remain valid.
   SECTION 1.   SEC. 2.   Section 18070.2
of the Health and Safety Code is amended to read:
   18070.2.  (a) Fees for the establishment and operation of the
Manufactured Home Recovery Fund shall be collected on or after
January 1, 1985. Claims against the fund arising from sales which
occur after January 1, 1985, may not be submitted to the department
before January 1, 1986. For purposes of this section, the date of
sale shall be either of the following:
   (1) The date escrow closes for sales by dealers that are subject
to Section 18035 or 18035.2.
   (2) For all other sales, including sales by dealers in which
escrow does not close, the date when the purchaser has paid the
purchase price or, in lieu thereof, has signed a security agreement,
option to purchase, or purchase contract and has taken physical
possession or delivery of the manufactured home.
   (b) Notwithstanding any other provision of law, whenever the
balance in the Manufactured Home Recovery Fund exceeds two million
dollars ($2,000,000) on January 1 of any year, the department may
reduce the fee provided for in subdivision (c) of Section 18070.1.
The department may again increase the fee up to a maximum of ten
dollars ($10) whenever the balance in the fund falls below one
million dollars ($1,000,000).
   SEC. 2.   SEC. 3.   Section 18218 of the
Health and Safety Code is amended to read:
   18218.  "Commercial modular" as used in this part has the same
meaning as defined in Section 18001.8.
   SEC. 3.   SEC. 4.   Section 18218.5 of
the Health and Safety Code is amended to read:
   18218.5.  "Special purpose commercial modular" as used in this
part has the same meaning as defined in Section 18012.5.
   SEC. 4.   SEC. 5.   Section 18551 of the
Health and Safety Code is amended to read:
   18551.  The department shall establish regulations for
manufactured home, mobilehome, and commercial modular foundation
systems that shall be applicable throughout the state. When
established, these regulations supersede any ordinance enacted by any
city, county, or city and county applicable to manufactured home,
mobilehome, and commercial modular foundation systems. The department
may approve alternate foundation systems to those provided by
regulation where the department is satisfied of equivalent
performance. The department shall document approval of alternate
systems by its stamp of approval on the plans and specifications for
the alternate foundation system. A manufactured home, mobilehome, or
commercial modular may be installed on a foundation system as either
a fixture or improvement to the real property, in accordance with
subdivision (a), or a manufactured home or mobilehome may be
installed on a foundation system as a chattel, in accordance with
subdivision (b).
   (a) Installation of a manufactured home, mobilehome, or commercial
modular as a fixture or improvement to the real property shall
comply with all of the following:
   (1) Prior to installation of a manufactured home, mobilehome, or
commercial modular on a foundation system, the manufactured home,
mobilehome, or commercial modular owner or a licensed contractor
shall obtain a building permit from the appropriate enforcement
agency. To obtain a permit, the owner or contractor shall provide the
following:
   (A) Written evidence acceptable to the enforcement agency that the
manufactured home, mobilehome, or commercial modular owner owns,
holds title to, or is purchasing the real property where the
mobilehome is to be installed on a foundation system. A lease held by
the manufactured home, mobilehome, or commercial modular owner, that
is transferable, for the exclusive use of the real property where
the manufactured home, mobilehome, or commercial modular is to be
installed, shall be deemed to comply with this paragraph if the lease
is for a term of 35 years or more, or if less than 35 years, for a
term mutually agreed upon by the lessor and lessee, and the term of
the lease is not revocable at the discretion of the lessor except for
cause, as described in subdivisions 2 to 5, inclusive, of Section
1161 of the Code of Civil Procedure.
   (B) Written evidence acceptable to the enforcement agency that the
registered owner owns the manufactured home, mobilehome, or
commercial modular free of any liens or encumbrances or, in the event
that the legal owner is not the registered owner, or liens and
encumbrances exist on the manufactured home, mobilehome, or
commercial modular, written evidence provided by the legal owner and
any lienors or encumbrancers that the legal owner, lienor, or
encumbrancer consents to the attachment of the manufactured home,
mobilehome, or commercial modular upon the discharge of any personal
lien, that may be conditioned upon the satisfaction by the registered
owner of the obligation secured by the lien.
   (C) Plans and specifications required by department regulations or
a department-approved alternate for the manufactured home,
mobilehome, or commercial modular foundation system.
   (D) The manufactured home, mobilehome, or commercial modular
manufacturer's installation instructions, or plans and specifications
signed by a California licensed architect or engineer covering the
installation of an individual manufactured home, mobilehome, or
commercial modular in the absence of the manufactured home,
mobilehome, or commercial modular manufacturer's instructions.
   (E) Building permit fees established by ordinance or regulation of
the appropriate enforcement agency.
   (F) A fee payable to the department in the amount of eleven
dollars ($11) for each transportable section of the manufactured
home, mobilehome, or commercial modular, that shall be transmitted to
the department at the time the certificate of occupancy is issued
with a copy of the building permit and any other information
concerning the manufactured home, mobilehome, or commercial modular
which the department may prescribe on forms provided by the
department.
   (2) (A) On the same day that the certificate of occupancy for the
manufactured home, mobilehome, or commercial modular is issued by the
appropriate enforcement agency, the enforcement agency shall record
with the county recorder of the county where the real property is
situated, that the manufactured home, mobilehome, or commercial
modular has been installed upon, a document naming the owner of the
real property, describing the real property with certainty, and
stating that a manufactured home, mobilehome, or commercial modular
has been affixed to that real property by installation on a
foundation system pursuant to this subdivision.
   (B) When recorded, the document referred to in subparagraph (A)
shall be indexed by the county recorder to the named owner and shall
be deemed to give constructive notice as to its contents to all
persons thereafter dealing with the real property.
   (C) Fees received by the department pursuant to subparagraph (F)
of paragraph (1) shall be deposited in the Mobilehome-Manufactured
Home Revolving Fund established under subdivision (a) of Section
18016.5.
   (3) The department shall adopt regulations providing for the
cancellation of registration of a manufactured home, mobilehome, or
commercial modular that is permanently attached to the ground on a
foundation system pursuant to subdivision (a). The regulations shall
provide for the surrender to the department of the certificate of
title and other indicia of registration. For the purposes of this
subdivision, permanent affixation to a foundation system shall be
deemed to have occurred on the day a certificate of occupancy is
issued to the manufactured home, mobilehome, or commercial modular
owner and the document referred to in subparagraph (A) of paragraph
(2) is recorded. Cancellation shall be effective as of that date and
the department shall enter the cancellation on its records upon
receipt of a copy of the certificate of occupancy. This subdivision
shall not be construed to affect the application of existing laws, or
the department's regulations or procedures with regard to the
cancellation of registration, except as to the requirement therefor
and the effective date thereof.
   (4) Once installed on a foundation system in compliance with this
subdivision, a manufactured home, mobilehome, or commercial modular
shall be deemed a fixture and a real property improvement to the real
property to which it is affixed. Physical removal of the
manufactured home, mobilehome, or commercial modular shall thereafter
be prohibited without the consent of all persons or entities who, at
the time of removal, have title to any estate or interest in the
real property to which the manufactured home, mobilehome, or
commercial modular is affixed.
   (5) For the purposes of this subdivision:
   (A) "Physical removal" shall include, without limitation, the
unattaching of the manufactured home, mobilehome, or commercial
modular from the foundation system, except for temporary purposes of
repair or improvement thereto.
   (B) Consent to removal shall not be required from the owners of
rights-of-way or easements or the owners of subsurface rights or
interests in or to minerals, including, but not limited to, oil, gas,
or other hydrocarbon substances.
   (6) At least 30 days prior to a legal removal of the manufactured
home, mobilehome, or commercial modular from the foundation system
and transportation away from the real property to which it was
formerly affixed, the manufactured home, mobilehome, or commercial
modular owner shall notify the department and the county assessor of
the intended removal of the manufactured home, mobilehome, or
commercial modular. The department shall require written evidence
that the necessary consents have been obtained pursuant to this
section and shall require application for either a transportation
permit or manufactured home, mobilehome, or commercial modular
registration, as the department may decide is appropriate to the
circumstances. Immediately upon removal, as defined in this section,
the manufactured home, mobilehome, or commercial modular shall be
deemed to have become personal property and subject to all laws
governing the same as applicable to a manufactured home, mobilehome,
or commercial modular.
   (b) The installation of a manufactured home or a mobilehome on a
foundation system as chattel shall be in accordance with Section
18613 and shall be deemed to meet or exceed the requirements of
Section 18613.4. This subdivision shall not be construed to affect
the application of sales and use or property taxes. No provisions of
this subdivision are intended, nor shall they be construed, to affect
the ownership interest of any owner of a manufactured home or
mobilehome.
   (c) Once installed on a foundation system, a manufactured home,
mobilehome, or commercial modular shall be subject to state enforced
health and safety standards for manufactured homes, mobilehomes, or
commercial modulars enforced pursuant to Section 18020.
   (d) No local agency shall require that any manufactured home,
mobilehome, or commercial modular currently on private property be
placed on a foundation system.
   (e) No local agency shall require that any manufactured home or
mobilehome located in a mobilehome park be placed on a foundation
system.
   (f) No local agency shall require, as a condition for the approval
of the conversion of a rental mobilehome park to a resident-owned
park, including, but not limited to, a subdivision, cooperative, or
condominium for mobilehomes, that any manufactured home or mobilehome
located there be placed on a foundation system. This subdivision
shall only apply to the conversion of a rental mobilehome park that
has been operated as a rental mobilehome park for a minimum period of
five years.
   SEC. 5.   SEC. 6.   Section 18866.2 of
the Health and Safety Code is amended to read:
   18866.2.  Any notice of violation of this part, or any rule or
regulation adopted pursuant thereto, issued by the enforcement agency
shall be issued to the appropriate persons designated in Section
18867 and shall include a statement that any willful violation is a
misdemeanor under Section 18874.
   SEC. 6.   SEC. 7.   Section 33334.29 of
the Health and Safety Code is repealed.
   SEC. 7.   SEC. 8.   Section 33420.1 of
the Health and Safety Code is amended to read:
   33420.1.  Within a project area, for any project undertaken by an
agency for building rehabilitation or alteration in construction, an
agency may take those actions which the agency determines necessary
and which is consistent with local, state, and federal law, to
provide for seismic retrofits as follows:
   (a)  For unreinforced masonry buildings, to meet the requirements
of Appendix Chapter A1 of the most current edition of the California
Building Code.
   (b)  For any buildings that qualify as "historical property" under
Section 37602, to meet the requirements of the State Historical
Building Code (Part 2.7 (commencing with Section 18950) of Division
13) and the most current edition of the California Historical
Building Code.
   (c)  For buildings other than unreinforced masonry buildings and
historical properties, to meet the requirements of the most current
edition of the International Building Code, as applicable.
   If an agency undertakes seismic retrofits and proposes to add new
territory to the project area, to increase either the limitation on
the number of dollars to be allocated to the redevelopment agency or
the time limit on the establishing of loans, advances, and
indebtedness established pursuant to paragraphs (1) and (2) of
Section 33333.2, to lengthen the period during which the
redevelopment plan is effective, to merge project areas, or to add
significant additional capital improvement projects, as determined by
the agency, the agency shall amend its redevelopment plan and follow
the same procedure, and the legislative body is subject to the same
restrictions, as provided for in Article 4 (commencing with Section
33330) for the adoption of a plan.
   SEC. 9.    Section 2705 of the  Public
Resources Code   is amended to read: 
   2705.  (a) Counties and cities shall collect a fee from each
applicant for a building permit. Each fee shall be equal to a
specific amount of the proposed building construction for which the
building permit is issued as determined by the local building
officials. The fee amount shall be assessed in the following way:
   (1) Group R occupancies, as defined in the 1985 Uniform Building
Code and adopted in Part 2 (commencing with Section 2-101) of Title
24 of the California Code of Regulations, one to three stories in
height, except hotels and motels, shall be assessed at the rate of
ten dollars ($10) per one hundred thousand dollars ($100,000), with
appropriate fractions thereof.
   (2) All other buildings shall be assessed at the rate of
twenty-one dollars ($21) per one hundred thousand dollars ($100,000),
with appropriate fractions thereof.
   (3) The fee shall be the amount assessed under paragraph (1) or
(2), depending on building type, or fifty cents ($0.50), whichever is
the higher.
   (b) (1) In lieu of the requirements of subdivision (a), a county
or city may elect to include a rate of ten dollars ($10) per one
hundred thousand dollars ($100,000), with appropriate fractions
thereof, in its basic building permit fee for any Group R occupancy
defined in paragraph (1) of subdivision (a), and a rate of twenty-one
dollars ($21) per one hundred thousand dollars ($100,000), with
appropriate fractions thereof, for all other building types. A county
or city electing to collect the fee pursuant to this subdivision
need not segregate the fees in a fund separate from any fund into
which basic building permit fees are deposited.
   (2) "Building," for the purpose of this chapter, is any structure
built for the support, shelter, or enclosure of persons, animals,
chattels, or property of any kind.
   (c) (1) A city or county may retain up to 5 percent of the total
amount it collects under subdivision (a) or (b) for data utilization,
for seismic education incorporating data interpretations from data
of the strong-motion instrumentation program and the seismic hazards
mapping program, and, in accordance with paragraph (2), for improving
the preparation for damage assessment after strong seismic motion
events.
   (2) A city or county may use any funds retained pursuant to this
subdivision to improve the preparation for damage assessment in its
jurisdiction only after it provides the Department of Conservation
with information indicating to the department that data utilization
and seismic education activities have been adequately funded.
   (d) Funds collected pursuant to subdivision (a) and (b), less the
amount retained pursuant to subdivision (c), shall be deposited in
the Strong-Motion Instrumentation and Seismic Hazards Mapping Fund,
as created by Section 2699.5  to be used exclusively for 
 purposes of this chapter and Chapter 7.8 (commencing with
Section 2690)  .
   SEC. 10.    Section 2706 of the   Public
Resources Code   is repealed.  
   2706.  Funds collected pursuant to subdivision (a) and (b) of
Section 2705, less the amount retained pursuant to subdivision (c) of
Section 2705, shall be deposited in the State Treasury in the
Strong-Motion Instrumentation and Seismic Hazards Mapping Fund, as
created by Section 2699.5, to be used exclusively for the purposes of
this chapter and Chapter 7.8 (commencing with Section 2690).