BILL ANALYSIS Ó
SENATE JUDICIARY COMMITTEE
Senator Hannah-Beth Jackson, Chair
2013-2014 Regular Session
AB 569 (Chau)
As Amended June 2, 2014
Hearing Date: June 10, 2014
Fiscal: Yes
Urgency: No
TH
SUBJECT
Real Property: Divided Lands
DESCRIPTION
This bill would exempt stock cooperatives and limited equity
housing cooperatives from restrictions in the Subdivided Lands
Act that prohibit the sale or lease of lots or parcels within a
subdivision that are subject to a blanket encumbrance under
certain circumstances. The bill would expand the sources from
which a limited equity housing cooperative may obtain financing
and remain exempt from the Subdivided Lands Act, and would amend
the election requirements of the Davis-Stirling Common Interest
Development Act to exempt developments from having to elect
members to a board of directors when the development's governing
documents provide that one member from each separate interest is
automatically a director.
BACKGROUND
California's Subdivided Lands Act gives the Bureau of Real
Estate certain authority over planned developments, community
apartment projects, condominiums, and housing cooperatives. Its
purpose is "to prevent fraud and misrepresentation in the
marketing of parcels of land by requiring disclosure of the
financial risks and benefits of a transaction to proposed
purchasers and lessees." (California Coastal Com. v. Quanta
Investment Corp. (1980) 113 Cal.App.3d 579, 589.) "To
accomplish this, the [Bureau of Real Estate] issues public
reports based on extensive disclosures made by the subdividers
in connection with the parcels they offer for sale or lease,"
and "[any] sale or lease [made] without providing a public
(more)
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report to the transferee is prohibited." (Id.) Additionally,
the Subdivided Lands Act makes it unlawful for an owner,
subdivider, or agent to sell or lease lots or parcels within a
subdivision that are subject to a blanket encumbrance unless the
purchaser or lessee of a lot or parcel can obtain legal title to
the interest free and clear of the encumbrance. As was the case
with a parallel restriction in its predecessor statute, the Real
Estate Act, the prohibition against blanket encumbrances in the
Subdivided Lands Act is aimed at both the "prevention of fraud
and sharp practices in a type of real estate transaction
peculiarly open to such abuses," and ensuring "protection for
the innocent purchaser against loss of his land by foreclosure
of [an] underlying mortgage." (In re Sidebotham (1938) 12
Cal.2d 434, 436.)
This bill would exempt stock cooperatives and limited equity
housing cooperatives from restrictions in the Subdivided Lands
Act prohibiting the sale or leasing of lots or parcels within a
subdivision subject to a blanket encumbrance if the following
conditions are met:
notice is provided to every prospective purchaser of an
interest in the cooperative and is included in every purchase
contract, warning of the risk that he or she could lose the
interest through foreclosure of the blanket encumbrance even
though the buyer is not delinquent in his or her payments for
the interest;
the property subject to the sale has obtained a public report
from the Bureau of Real Estate that accounts for the blanket
encumbrance; and
the governing documents for the cooperative require it to
create within one year of the sale of at least 50 percent of
the individual interests in the cooperative, and maintain
during the term of the blanket encumbrance, a financing
reserve amount equal to at least three months of the amount of
the debt service payments due on the blanket encumbrance or a
lesser amount acceptable to the Commissioner of Real Estate.
This bill would also expand the sources from which a limited
equity housing cooperative may obtain financing and remain
exempt from the Subdivided Lands Act, and would amend the
election requirements of the Davis-Stirling Common Interest
Development Act to exempt developments, including housing
cooperatives, from having to elect members to a board of
directors when the development's governing documents provide
that one member from each separate interest is automatically a
director.
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CHANGES TO EXISTING LAW
Existing law , the Subdivided Lands Act, governs "subdivided
lands" and the "subdivision" of improved or unimproved land or
lands, wherever situated within California, divided or proposed
to be divided for the purpose of sale or lease or financing,
whether immediate or future, into five or more lots or parcels.
(Bus. & Prof. Code Sec. 11000.)
Existing law states that the reference in the Subdivided Lands
Act to "subdivided lands" and "subdivision" shall include, among
other things, any stock cooperative, including any legal or
beneficial interests therein, having or intended to have five or
more shareholders, and any limited-equity housing cooperative.
(Bus. & Prof. Code Sec. 11004.5.)
Existing law states that it shall be unlawful, except as
provided, for an owner, subdivider, or agent to sell or lease
lots or parcels within a subdivision that is subject to a
blanket encumbrance unless there exists in such blanket
encumbrance or other supplementary agreement a provision which
by its terms shall unconditionally provide that the purchaser or
lessee of a lot or parcel can obtain legal title or other
interest contracted for, free and clear of such blanket
encumbrance, upon compliance with the terms and conditions of
the purchase or lease. (Bus. & Prof. Code Sec. 11013.1.)
Existing law provides that if the blanket encumbrance or
supplementary agreement does not contain a release clause as
described above, then it shall be unlawful for the owner,
subdivider, or agent to sell or lease lots or parcels within a
subdivision unless one of the following conditions is met:
the entire sum of money paid or advanced by the purchaser or
lessee of any such lot or parcel, or such portion thereof as
the Commissioner of Real Estate (Commissioner) shall determine
is sufficient to protect the interest of the purchaser or
lessee, is deposited into an escrow depository acceptable to
the Commissioner, as specified;
the title to the subdivision is held in trust under an
agreement of trust acceptable to the Commissioner until a
proper release from such blanket encumbrance is obtained;
a bond to the State of California is furnished to the
Commissioner for the benefit and protection of purchasers or
lessees of such lots or parcels, in such amount and subject to
such terms as may be approved by the Commissioner, as
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specified; or
the Commissioner provides an alternative requirement or method
deemed acceptable to protect the interest of the purchaser or
lessee. (Bus. & Prof. Code Sec. 11013.2.)
Existing law provides that a limited-equity housing cooperative
or a workforce housing cooperative trust shall be exempt from
the requirements of the Subdivided Lands Act if the
limited-equity housing cooperative or workforce housing
cooperative trust complies with certain conditions, including
that the United States Department of Housing and Urban
Development, the United States Department of Agriculture, the
National Consumers Cooperative Bank, the California Housing
Finance Agency, the Public Employees' Retirement System (PERS),
the State Teachers' Retirement System (STRS), the Department of
Housing and Community Development, or the Federal Home Loan Bank
System or any of its member institutions, alone or in any
combination with each other, or with the city, county, school
district, or redevelopment agency in which the cooperative is
located, directly finances or subsidizes at least 50 percent of
the total construction or development cost or one hundred
thousand dollars ($100,000), whichever is less, of the housing
cooperative. (Bus. & Prof. Code Sec. 11003.4.)
Existing law , the Davis-Stirling Common Interest Development
Act, establishes rules and regulations governing the operation
of a common interest development and the respective rights and
duties of a homeowners' association and its members. (Civ. Code
Sec. 4000 et seq.)
Existing law states that, notwithstanding any other law or
provision of the governing documents, elections regarding
assessments legally requiring a vote, election and removal of
directors, amendments to the governing documents, or the grant
of exclusive use of common areas, shall be held by secret ballot
in accordance with the procedures set forth in the
Davis-Stirling Common Interest Development Act. (Civ. Code Sec.
5100.)
This bill would provide that, notwithstanding prohibitions in
the Subdivided Lands Act, an individual interest in a stock
cooperative or a limited-equity housing cooperative may be sold
or leased subject to a blanket encumbrance if all of the
following conditions are met:
the required notice is provided to every prospective purchaser
of the interest and is included in every purchase contract;
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the property subject to the sale has obtained a public report
from the Bureau of Real Estate that accounts for the blanket
encumbrance; and
the governing documents for the association require the
association to create within one year of the sale of at least
50 percent of the individual interests in the stock
cooperative or limited-equity housing cooperative, and
maintain during the term of the blanket encumbrance, a
financing reserve amount equal to at least three months of the
amount of the debt service payments due on the blanket
encumbrance or a lesser amount acceptable to the Commissioner
of Real Estate.
This bill would provide that a limited-equity housing
cooperative or a workforce housing cooperative trust shall be
exempt from the requirements of the Subdivided Lands Act if,
alone or in any combination with other specified entities, a
state or federally chartered credit union or a state or
federally certified community development financial institution
directly finances or subsidizes at least 50 percent of the total
construction or development cost or one hundred thousand dollars
($100,000), whichever is less, of the housing cooperative.
This bill would also provide that a director shall not be
required to be elected pursuant to the Davis-Stirling Common
Interest Development Act if the governing documents of a common
interest development, including a housing cooperative, provide
that one member from each separate interest is a director.
COMMENT
1. Stated need for the bill
The author writes:
Existing law under the California Subdivided Land Act
prohibits, with a few limited exceptions, the sale of housing
cooperative shares when the units are subject to a "blanket
encumbrance." Blanket encumbrances most commonly take the
form of a mortgage taken out by the corporation and secured by
the entire property. The prohibition on blanket encumbrances
serves to protect cooperative members from losing their homes
and investments in the event that the cooperative defaults on
its mortgage. However, this prohibition also has the effect
of banning housing cooperatives in California because the most
common way that a cooperative finances the purchase of a
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building is by means of a single blanket mortgage.
AB 569 creates safeguards to protect members of cooperatives,
while allowing a cooperative to obtain a single mortgage.
[Specifically, the bill] [a]llows a cooperative to sell or
lease units subject to a blanket encumbrance so long as the
cooperative has obtained a public report from the Department
of Real Estate, built a reserve fund sufficient to make
mortgage payments for three months, and cooperative members
receive clear and specific notice of the risks of buying or
leasing a unit subject to a blanket encumbrance.
[Additionally, the bill] [e]xempts [Common Interest
Developments] from election procedures for board members when
the bylaws require that every member serve on the board of
directors, [and] [a]dds state or federally chartered credit
unions and state or federally certified community development
financial institutions to the list of financing agencies
qualified to enter into [an] agreement under the public
reporting exemptions.
2. Housing cooperatives in California
A housing cooperative is an umbrella term that describes a type
of legal corporation formed by residents of a particular
building or area that, through the corporation, own and control
the buildings in which they live. In general, housing
cooperatives are formed to provide affordable housing for their
members. They do this by charging members only the amount
required to run the cooperative (including reserve and emergency
expenses), and therefore operate on an at-cost or not-for-profit
basis. While affordable housing is the most common reason
housing cooperatives form, scholars note that they may have a
secondary goal of preventing the displacement of residents,
promoting economic development, preserving historical buildings,
or protecting the character of neighborhoods threatened with
gentrification. (Dewey Bandy, Characteristics and Operational
Performance of California's Permanent Housing Cooperatives
[as of
May 15, 2014].)
Members of a housing cooperative typically buy shares in their
cooperative corporation and pay a monthly amount to cover the
operating expenses of maintaining the land, buildings, and
common areas which the cooperative owns. Ownership of a share
in the cooperative normally guarantees a member an exclusive
right to occupy a particular dwelling unit in the community
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owned by the cooperative. Use of the unit may be governed by a
proprietary lease or occupancy agreement entered into with the
corporation. (Northcountry Cooperative Development Fund,
Housing Cooperatives: An Accessible and Lasting Tool for
Homeownership [as of May 15, 2014].)
Housing cooperatives are usually self-governing -- the
membership enacts bylaws and elects from among themselves a
board of directors to oversee the cooperative's day to day
operations. The board of directors usually must approve the
purchase and sale of shares in the cooperative, thereby
controlling who can join the community. With some exceptions, a
new member typically borrows all or part of the share purchase
price from a private lender, which is secured by his or her
individual interest in the cooperative. (Id.)
Housing cooperatives in California come in many forms, including
limited-equity housing cooperatives, stock or market rate
cooperatives, manufactured home park cooperatives, and senior
housing cooperatives. A limited-equity housing cooperative is
formed primarily to offer permanently affordable home ownership
opportunities for low and moderate income individuals. These
cooperatives are typically financed with a combination of
private and public funds, and price restrictions are put on the
sale of shares in order to preserve affordability for future
purchasers. Stock cooperatives, in contrast, operate in the
private market and membership shares are sold at full market
value. Much like conventional real estate, a share's sale price
is determined by the market, allowing for the potential
accumulation or loss of equity by the cooperative's members.
(California Center for Cooperative Development, Housing
Cooperatives [as
of May 15, 2014].)
Manufactured home park cooperatives allow members to privately
own their own manufactured home, while the land underneath the
home, utility systems, and all common areas are owned by the
cooperative. In contrast to a condominium where an owner holds
title to his or her dwelling unit in fee simple, the real
property of a manufactured home park cooperative (like all
cooperatives) is owned by the cooperative corporation, and
shareholders are granted the right to occupy a space for their
home. Manufactured home park cooperatives can be organized as
either stock cooperatives or limited equity cooperatives.
Finally, senior housing cooperatives are cooperatives designed
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specifically to meet the particular needs of their members.
These cooperatives usually have established age restrictions and
offer various degrees of graduated care. (Id.)
3. Prohibition on blanket encumbrances
As noted above, the Subdivided Lands Act contains a general
prohibition on selling or leasing subdivided lands, including
interests or shares in a housing cooperative, subject to a
blanket encumbrance. If an interest is sold with such a blanket
encumbrance, the sale or lease instrument must "include a
release clause so that purchasers of lots or parcels within the
subdivision can obtain title to their lots or parcels free of
the blanket lien upon compliance with the terms and conditions
of their purchase agreement." (Drake v. Martin (1994) 30
Cal.App.4th 984, 992.) This prohibition acts as a consumer
safeguard, ensuring that "innocent purchaser[s] [are protected]
against loss of [their] land by foreclosure of the underlying
mortgage." (In re Sidebotham (1938) 12 Cal.2d 434, 436.) The
Act does permit exceptions to this general prohibition when the
parties take special precautions to protect the financial
interest of a purchaser or lessee, including: placing the money
paid by the purchaser or lessee in an escrow account until a
release from the blanket encumbrance is obtained or the
underlying encumbrance is resolved; placing title to the
subdivision in trust until a release from the blanket
encumbrance is obtained; or furnishing a bond to the state in
such an amount so as to protect the individual interests of
purchasers or lessees until the blanket encumbrance is released
or otherwise extinguished. In each exception, the Act imposes
strict measures to ensure that a purchaser's or lessee's
interest is protected from the risk of default by the subdivider
or developer on the underlying encumbrance.
The proponents of this bill argue that this restriction is an
unnecessary regulatory barrier that stymies the development of
housing cooperatives in the state. According to the sponsor,
the California Center for Cooperative Development, "[t]he
California Subdivided Lands Act prohibits the sale of housing
cooperative shares when the units are subject to a mortgage
secured by the entire property, which has the effect of banning
housing cooperatives in California, because most cooperatives
finance the purchase of a building with a single blanket
mortgage." Absent this prohibition in the Act, a blanket
mortgage could be used to purchase, build or rehabilitate a
building, and part of each member's monthly payment to the
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cooperative could be used to retire the blanket mortgage.
The Committee should note that this bill represents a departure
from existing law concerning exceptions to the prohibition on
blanket encumbrances. Instead of requiring a developer to take
measures to protect the financial interests of purchasers and
lessees of interests in subdivided lands, this bill would shift
the loss following default onto the purchaser. It would permit
the sale or lease of an encumbered interest in a housing
cooperative so long as the prospective purchaser receives a
clear and specific notice of the risks of buying a share subject
to a blanket encumbrance. Specifically, it would require every
purchase agreement to contain the following acknowledgment:
BUYER/LESSEE IS AWARE OF THE FACT THAT THE LOT, PARCEL, OR
UNIT WHICH HE OR SHE IS PROPOSING TO PURCHASE OR LEASE IS
SUBJECT TO A DEED OF TRUST, MORTGAGE, OR OTHER LIEN KNOWN AS A
"BLANKET ENCUMBRANCE".
IF BUYER/LESSEE PURCHASES OR LEASES THIS LOT, PARCEL, OR UNIT,
HE OR SHE COULD LOSE THAT INTEREST THROUGH FORECLOSURE OF THE
BLANKET ENCUMBRANCE OR OTHER LEGAL PROCESS EVEN THOUGH
BUYER/LESSEE IS NOT DELINQUENT IN HIS OR HER PAYMENTS OR OTHER
OBLIGATIONS UNDER THE MORTGAGE, DEED OF TRUST, OR LEASE.
(Civ. Code Sec. 1133(a).)
This bill would also require a developer to provide each
purchaser with a copy of a public report from the Bureau of Real
Estate that accounts for the blanket encumbrance. Additionally,
it would mandate that the governing documents for the
cooperative require the creation within one year of the sale of
at least 50 percent of the individual interests in the stock
cooperative or limited-equity housing cooperative a financing
reserve amount equal to at least three months of the amount of
the debt service payments due on the blanket encumbrance,
maintained for the duration of the encumbrance. Once it becomes
operational and funded, this financial reserve could help
insulate individual shareholders from the consequences of
default on a blanket encumbrance by providing the cooperative
with a stable, limited-term source of revenue for making
payments toward the blanket obligation. However, this reserve
funding mechanism still places the burden on shareholders (as
opposed to a developer or subdivider) to guard against the risk
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of default, and, unlike the existing exceptions in the Act,
would not necessarily be operational or funded when the first
purchaser or lessee executes a purchase or lease agreement.
The following amendments would help ensure that shareholders are
protected from the risk of default on a blanket encumbrance:
Suggested Amendments :
On page 7, strike lines 19 through 26, and insert:
"(c) The governing documents for the association require the
association to create and maintain during the term of the
blanket encumbrance:
(1) prior to the sale of any individual interests in the stock
cooperative or limited-equity housing cooperative a financing
reserve amount equal to at least three months of the amount of
the debt service payments due on the blanket encumbrance;
(2) within one year of the sale of at least 25 percent of the
individual interests in the stock cooperative or
limited-equity housing cooperative a financing reserve amount
equal to at least six months of the amount of the debt service
payments due on the blanket encumbrance;
(3) within one year of the sale of at least 50 percent of the
individual interests in the stock cooperative or
limited-equity housing cooperative a financing reserve amount
equal to at least nine months of the amount of the debt
service payments due on the blanket encumbrance; and
(4) within one year of the sale of at least 75 percent of the
individual interests in the stock cooperative or
limited-equity housing cooperative a financing reserve amount
equal to at least twelve months of the amount of the debt
service payments due on the blanket encumbrance."
4. Expansion of cooperatives exempt from the Subdivided Lands Act
Under existing law, limited-equity housing cooperatives and
workforce housing cooperative trusts are exempt from the
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Subdivided Lands Act if, among other things, the United States
Department of Housing and Urban Development, the United States
Department of Agriculture, the National Consumers Cooperative
Bank, the California Housing Finance Agency, the Public
Employees' Retirement System (PERS), the State Teachers'
Retirement System (STRS), the Department of Housing and
Community Development, or the Federal Home Loan Bank System or
any of its member institutions, alone or in any combination with
each other, or with the city, county, school district, or
redevelopment agency in which a cooperative is located, directly
finance or subsidize at least 50 percent of the total
construction or development cost or one hundred thousand dollars
($100,000), whichever is less, of the housing cooperative.
(Bus. & Prof. Code Sec. 11003.4.) This bill would expand the
sources from which a housing cooperative may obtain financing
and remain exempt from the Subdivided Lands Act to include state
or federally chartered credit unions and state or federally
certified community development financial institutions.
The net effect of this change would likely be to increase the
total amount of funds available in California for financing the
development of housing cooperatives, thereby increasing home
ownership opportunities for low and middle income individuals
and families. Writing in support, the Walnut House Cooperative
states that this change "expands the opportunities under which
Limited Equity Co-ops can secure an exemption from the costly
public report requirement." Staff notes, however, that adding
non-governmental entities to the existing list of eligible
financers in the Act would shift some of the decision-making
power over the creation of exempt housing cooperatives to the
private sector. Further, staff notes that this change would
likely increase the number of housing cooperatives and community
apartment projects exempted from the obligation of having to
obtain a public report from the Bureau of Real Estate prior to
offering interests in the cooperative for sale or lease to
members of the public. Generally, before marketing new
subdivisions in California, a subdivider must obtain a public
report from the Bureau of Real Estate. According to the Bureau:
Public reports contain information of vital importance to
prospective buyers including covenant[s], conditions and
restrictions which govern the use of property, costs and
assessments for maintaining homeowners' associations and
common areas, and other material disclosures. . . Public
reports are a critical disclosure document which should be
read and understood by any home purchaser considering buying a
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home in a new subdivision . . . Prior to the issuance of the
public report, subdividers must file an application with the
[Bureau] and submit documents supporting the representations
made in the application. If improvements to the subdivision
are not complete at the time the application is filed, the
subdivider must also submit evidence that adequate financial
arrangements have been made for their completion. (Public
Reports
[as of May 15, 2014].)
Exempting additional limited-equity housing cooperatives and
workforce housing cooperative trusts from obtaining a public
report under this section of the Subdivided Lands Act may impede
the ability of prospective purchasers and lessees to obtain this
vital information. However, staff notes that housing
cooperatives exempted under this section of the Act must still
obtain a regulatory agreement approved by the Department of
Housing and Community Development for the term of the permanent
financing of the cooperative, notwithstanding the source of the
permanent subsidy or financing. The required regulatory
agreement, among other things, must provide that a membership
information report shall be given to any prospective purchaser
of a membership share prior to purchase of that share. The
membership information report must contain a full disclosure of
the financial obligations and responsibilities of cooperative
membership, the resale of shares, the financing of the
cooperative including any arrangements made with any partners,
membership share accounts, occupancy restrictions, management
arrangements, and any other information pertinent to the
benefits, risks, and obligations of cooperative ownership. (See
Bus. & Prof. Code Sec. 11003.4(b)(3)(D).) Consequently, the
regulatory agreement required of exempt housing cooperatives may
ultimately disclose to prospective purchasers much of the same
vital information contained in a public report.
5. Changes to Davis-Stirling Act election requirements
This bill would also exempt common interest developments,
including housing cooperatives, from having to follow the
procedures for electing members to a governing board of
directors pursuant to the Davis-Stirling Common Interest
Development Act if the governing documents of the development
provide that one member from each separate interest is
automatically a director. Under the Act, common interest
developments must follow specific rules and procedures when
electing members to a development's board of directors
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notwithstanding contrary procedures in the community's own
governing documents, and the Act provides no explicit relief
from these requirements in situations where such elections are
wholly unnecessary. The exemption proposed in this bill seems
to be a sound method of relieving entities like housing
cooperatives from having to try to comply with election
procedures that don't necessarily apply to the governance
structure of their communities, and from having to expend time
and resources to conduct an unnecessary election. Staff notes
that adding this exception to the Davis-Stirling Common Interest
Development Act will not disenfranchise homeowners from
representation in the governing bodies of their communities
since, by definition, a member of each household would
automatically be a member of the community's governing body.
Support : Bay Area Community Land Trust; East Bay Cooperative
Housing Coalition; Fairview House; Housing Land Trust of Sonoma
County; Northern California Land Trust; Oakland Community Land
Trust; San Francisco Community Land Trust; Sustainable Economies
Law Center; Walnut House Cooperative; Urban Moshav; Urban
Strategies Council; nine individuals
Opposition : None Known
HISTORY
Source : California Center for Cooperative Development
Related Pending Legislation : None Known
Prior Legislation :
AB 1024 (Torres, 2013) was substantially similar to this bill
(AB 569), but was amended to address a different subject after
it passed out of the Senate Judiciary Committee.
AB 1246 (Jones, Chapter 520, Statutes of 2009) revised the
definition of a "limited-equity housing cooperative" to also
apply to a "workforce housing cooperative trust." This bill
established the manner in which a workforce housing cooperative
trust is organized and operated, and exempted a workforce
housing cooperative trust from provisions governing the
regulation of subdivided land if, among other organizations, the
Federal Home Loan Bank System or any of its member institutions
directly finance or subsidize at least 50 percent of the total
construction or development cost or $100,000, whichever is less,
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of the cooperative.
AB 2052 (Haynes, 2006) would have enacted the California New
Market Venture Capital Program Act. This bill would have
declared the intent of the Legislature to facilitate free market
growth in low-income neighborhoods and close inter-generational
wealth gaps among economically disadvantaged groups by creating
jobs, growing small businesses, building affordable housing, and
revitalizing low-income neighborhoods. This bill died in the
Assembly Committee on Jobs, Economic Development, & the Economy.
AB 2511 (Jones, Chapter 888, Statutes of 2006) made a number of
changes to state law to promote the development of affordable
housing and prevent delays in processing applications for
development projects that include a housing element.
SB 619 (Ducheny, Chapter 793, Statutes of 2003) made several
changes to laws related to the development of affordable housing
by streamlining the housing approval process and authorizing
awards of attorney's fees and costs to prevailing parties in
actions against local governments for alleged failure to comply
with affordable housing requirements. This bill prohibited
discrimination against multifamily housing in zones designated
for multifamily housing. This bill also specified required
procedures to be followed by the Department of Housing and
Community Development; required multifamily residential housing
to be permitted on any parcel zoned for multifamily housing if
specifications are met; clarified the meaning of and
requirements for "mixed use" land; and clarified the criteria
for awarding and administering CalHome funds.
AB 369 (Dutra, Chapter 237, Statutes of 2001) authorized a
court, when it finds that a local agency disapproved or
conditioned a project rendering it infeasible for the
development of housing for very low-, low-, or moderate-income
households without making findings supporting its decision as
required, to award attorney's fees and costs in a lawsuit
challenging the disapproval or conditions, except under
extraordinary circumstances where the court finds that awarding
fees would not further the purposes of the statute.
AB 2786 (Bates, 2000) would have required that all unclaimed
money, including unclaimed money from a deceased person's estate
that is currently escheated to the state, be deposited in the
Housing Rehabilitation Loan Fund. The fund would have been used
for the construction, rehabilitation, or acquisition and
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rehabilitation of multifamily rental housing developments for
elderly persons or households. This bill was vetoed by Governor
Davis.
Prior Vote :
Senate Committee on Transportation and Housing (Ayes 11, Noes 0)
Assembly Floor (Ayes 78, Noes 0)
Assembly Committee on Appropriations (Ayes 16, Noes 0)
Assembly Committee on Housing and Community Development (Ayes 7,
Noes 0)
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