BILL ANALYSIS �
AB 637
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CONCURRENCE IN SENATE AMENDMENTS
AB 637 (Atkins)
As Amended August 20, 2013
Majority vote
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|ASSEMBLY: |54-22|(May 9, 2013) |SENATE: |29-10|(August 26, |
| | | | | |2013) |
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Original Committee Reference: H.&.C.D.
SUMMARY : Adds housing developments of five units or more that
serve low- and moderate-income families or individuals to the
possible uses for funding from the Residential Development Loan
Program (RDLP) operated by the California Housing Finance Agency
(CalHFA).
The Senate amendments address chaptering out concerns.
FISCAL EFFECT : None
COMMENTS : In 2006, Proposition 1C authorized $2.85 billion in
voter-approved bonds for affordable housing. The bond included
$200 million in funding for the California Homebuyer Downpayment
Assistance Program (CHDAP) to provide downpayment assistance of
up to 3% for first-time low- and moderate-income homebuyers. Of
the $200 million for CHDAP, the bond language allows CalHFA to
expend up to $100 million for RDLP. The RDLP program was
created through AB 1512 (Garcia), Chapter 338, Statutes of 2005,
which authorized CalHFA to set aside CHDAP funds to make
short-term loans for land acquisition, construction, and
development of for-sale homes. RDLP provides low-interest loans
to cities, counties, housing authorities, redevelopment
agencies, and community development commissions for site
acquisition, predevelopment, and construction costs for infill
developments consisting of single family homes. Although the
bill authorized the set-aside, it required CalHFA to make
downpayment assistance the priority for funding under CHDAP.
CalHFA has made approximately $44 million available for RDLP
since 2006, of which $38.6 million was awarded to projects,
resulting in 604 for-sale units. As single-family construction
slowed in 2008 due to the recession, CalHFA suspended the
program and rolled the remaining amount back into CHDAP. As of
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March 31, 2013, the RDLP program had $21 million available plus
$25 million in outstanding loans currently due in the next three
years. CalHFA does not intend to transfer any additional funds
from CHDAP to the RDLP program. CalHFA has approximately $117
million available for new CHDAP loans. In addition, the
proceeds of outstanding loans that are repaid will become
available. At this time, CHDAP is making roughly $36 million in
CHDAP loans per year, though this rate may rise as home prices
rise and the number of home sales increase.
Purpose of this bill: The loss of redevelopment and diminished
voter-approved housing bond funds has significantly reduced
funding available for the construction of multifamily housing
affordable to low- and moderate- income families. Redevelopment
generated as much as $1 billion each year to build and
rehabilitate affordable housing. In many cases, redevelopment
funding was used to assist in purchasing land for affordable
housing development or pre-construction costs to make
infrastructure and other improvements necessary to build
housing.
This bill would authorize CalHFA to issue loans for multifamily
residential developments in addition to its existing authority
to make loans available for for-sale residential structures. In
doing so, this bill would make more money available for
pre-development of multifamily housing and could fill the gap
for some projects that were previously filled by redevelopment
agencies. RDLP is a revolving loan fund so as projects repay
the loans they are available for new projects.
Proposition 1C specifies that the Legislature may from time to
time make changes to the provisions of law related to programs
that are authorized by the bond in order to improve the
efficiency and effectiveness of the program.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN:
0001850
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