BILL NUMBER: AB 639 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 2013
PASSED THE ASSEMBLY SEPTEMBER 11, 2013
AMENDED IN SENATE SEPTEMBER 6, 2013
AMENDED IN SENATE JULY 3, 2013
INTRODUCED BY Assembly Member John A. Pérez
(Principal coauthors: Assembly Members Atkins and Muratsuchi)
(Coauthors: Assembly Members Achadjian, Ammiano, Bocanegra,
Bonilla, Buchanan, Brown, Ian Calderon, Chesbro, Daly, Eggman, Fox,
Frazier, Gordon, Gray, Hall, Maienschein, Perea, Quirk-Silva, Rendon,
Salas, Skinner, Wieckowski, and Williams)
(Coauthors: Senators Block, Correa, DeSaulnier, Hueso, Gaines,
Knight, Lara, Lieu, Nielsen, Roth, and Wyland)
FEBRUARY 20, 2013
An act to amend Sections 50408, 50501, 50505, 50510, and 50512 of
the Health and Safety Code, and to amend Section 998.403 of, and to
add Article 3.2 (commencing with Section 987.001), and Article 5y
(commencing with Section 998.540), to Chapter 6 of Division 4 of, the
Military and Veterans Code, relating to the financing of a program
to provide housing to veterans through the issuance and sale of bonds
of the State of California and by providing for the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 639, John A. Pérez. Veterans Housing and Homeless Prevention
Bond Act of 2014: Veterans Housing and Homeless Prevention Act of
2014.
Existing law, the Veterans' Bond Act of 2008, as approved by the
voters, authorizes the issuance of bonds in the amount of
$900,000,000, pursuant to the State General Obligation Bond Law, for
purposes of financing the Cal-Vet program for farm, home, and
mobilehome purchase assistance for veterans.
This bill would amend the Veterans' Bond Act of 2008 to reduce the
amount of bonds that are authorized to be issued under the act from
$900,000,000 to $300,000,000. The bill would enact the Veterans
Housing and Homeless Prevention Bond Act of 2014 (the bond act) to
authorize the issuance of bonds in the amount of $600,000,000, as
specified, for expenditure by the California Housing Finance Agency,
the Department of Housing and Community Development, and the
Department of Veterans Affairs to provide multifamily housing to
veterans pursuant to the Veterans Housing and Homeless Prevention Act
of 2014 (VHHPA), also enacted by the bill. The bill would authorize
the Legislature to amend the provisions of the bond act, by majority
vote, for specified purposes. The bill would impose a specified
reporting requirement on the Department of Housing and Community
Development to evaluate, in collaboration with the Department of
Veterans Affairs, any program established by the former pursuant to
the VHHPA. The bill would authorize the Department of Housing and
Community Development to provide specified assistance to veterans.
The bill would provide for submission of a specified section to
the voters at the June 3, 2014, statewide primary election, as
specified.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 5y (commencing with Section 998.540) is added
to Chapter 6 of Division 4 of the Military and Veterans Code, to
read:
Article 5y. The Veterans Housing and Homeless Prevention Bond
Act of 2014
998.540. This article shall be known and may be cited as the
Veterans Housing and Homeless Prevention Bond Act of 2014.
998.541. (a) California is home to almost two million veterans,
more than any other state in the nation, and with the winding down of
the wars in Iraq and Afghanistan, an unprecedented number of
California veterans will return to our communities, many in need of
housing, employment, mental health and drug treatment, and physical
rehabilitation.
(b) Unfortunately, California also leads the nation in the number
of homeless veterans, roughly 25 percent of the nation's homeless
veterans live in California, approximately 19,000 veterans. According
to the California Research Bureau, Los Angeles is number one in
terms of the number of homeless veterans followed by the San Diego
region at number three, and the San Francisco Bay Area at number
nine.
(c) Moreover, the face of the nation's homeless veterans'
population is changing as more OIF/OEF veterans find themselves in a
downward spiral towards homelessness and, increasingly, female
veterans and their children comprise more and more of the homeless
veteran demographic.
(d) With their higher rates of post-traumatic stress disorder,
substance abuse, and unemployment, as well as the higher incidence of
sexual trauma experienced by our female veterans, the current
homeless veteran, all too often, cycles in and out of our jails,
hospitals, and treatment programs, disproportionately drawing down
services without receiving the proper services to stabilize their
lives.
(e) The Legislature must advance a comprehensive, coordinated, and
cost-effective approach to respond to the housing needs of our
veterans. Such an approach should leverage public and private
resources as well as align housing and services.
(f) Five years ago, Californians overwhelmingly affirmed their
gratitude to our veterans by approving Proposition 12, a nine hundred
million dollars ($900,000,000) general obligation bond intended to
help veterans specifically purchase single family homes, farms, and
mobilehomes through the CalVet Home Loan Program.
(g) As a result of the nation's economic crisis and state's
housing downturn coupled with the changing demographics of our
veterans, the Farm and Home Loan Program, as approved by Proposition
12, has been significantly undersubscribed. Five years since its
passage, the full nine hundred million dollars ($900,000,000) remains
unspent as does a portion of the five hundred million dollars
($500,000,000) from Proposition 32, which was approved by the voters
in 2000.
(h) Meanwhile, veterans in need of multifamily housing that is
affordable, supportive, and transitional remains unmet and public and
private resources available for these purposes remain underutilized.
(i) California voters should be granted the opportunity to
restructure the Proposition 12 veterans' bond program to better
respond to the housing needs as well as the changing demographics of
the current veteran population.
(j) The Veterans Housing and Homeless Prevention Bond Act of 2014
will restructure six hundred million dollars ($600,000,000) of the
existing Proposition 12 bond moneys to allow for the construction and
rehabilitation of multifamily housing for veterans and prioritize
projects that align housing with services. Even with this
restructuring of bond moneys, the act still preserves over half a
billion dollars for the existing CalVet Farm and Home Loan Program.
(k) The Veterans Housing and Homeless Prevention Bond Act of 2014
will expand housing and service options for veterans,
cost-effectively leverage public dollars, reduce the number of
homeless veterans and its attendant public costs, and place
California at the forefront of our nation's efforts to end veterans'
homelessness by 2015.
998.542. (a) The State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code), as amended from time to time, except as
otherwise provided herein, is adopted for the purpose of the
issuance, sale, and repayment of, and otherwise providing with
respect to, the bonds authorized to be issued by this article, and
the provisions of that law are included in this article as though set
out in full in this article. All references in this article to
"herein" refer both to this article and that law.
(b) For purposes of the State General Obligation Bond Law, the
Department of Veterans Affairs is designated the board. The
Department of Veterans Affairs shall carry out the board duties in
consultation with the California Housing Finance Agency and the
Department of Housing and Community Development.
998.543. As used herein, the following terms have the following
meanings:
(a) "Board" means the Department of Veterans Affairs.
(b) "Bond" means a veterans' bond, a state general obligation
bond, issued pursuant to this article adopting the provisions of the
State General Obligation Bond Law.
(c) "Bond act" means this article authorizing the issuance of
state general obligation bonds and adopting the State General
Obligation Bond Law by reference.
(d) "Committee" means the Housing for Veterans Finance Committee,
established pursuant to Section 998.547.
(e) "Fund" means the Housing for Veterans Fund, established
pursuant to Section 998.544.
998.544. (a) Bonds in the total amount of six hundred million
dollars ($600,000,000), or so much thereof as is necessary, not
including the amount of any refunding bonds, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in subdivision (b) and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and constitute a valid and binding obligation of the State
of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of both
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) The proceeds of bonds issued and sold pursuant to this section
shall be made available to the board for the purposes of creating a
fund to provide multifamily housing to veterans and their families
pursuant to the Veterans Housing and Homeless Prevention Act of 2014
(Article 3.2 (commencing with Section 987.001)), and any subsequent
statutory enactment that amends that act or enacts or amends any
successor act for the purpose of providing housing to veterans and
their families.
(c) The Legislature may, from time to time, by majority vote,
amend the provisions of this act for the purpose of improving program
efficiency, effectiveness, and accountability, or for the purpose of
furthering overall program goals.
(d) The proceeds of bonds issued and sold pursuant to this article
shall be deposited in the Housing for Veterans Fund, which is hereby
created.
998.546. The bonds authorized by this article shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law, except subdivisions (a) and
(b) of Section 16727 of the Government Code, shall apply to the bonds
and to this article and are hereby incorporated in this article as
though set forth in full in this article.
998.547. Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law of the bonds
authorized by this article, the Housing for Veterans Finance
Committee is hereby created. For purposes of this article, the
Housing for Veterans Finance Committee is "the committee" as that
term is used in the State General Obligation Bond Law. The committee
consists of the Controller, Treasurer, Director of Finance, Secretary
of Business, Consumer Services, and Housing, and Secretary of
Veterans Affairs, or their designated representatives. The Treasurer
shall serve as chairperson of the committee. A majority of the
committee may act for the committee.
998.548. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
article in order to carry out the actions specified in Section
998.544 and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized to be issued be sold at any one time.
998.549. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
998.550. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this article, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this article, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 998.551, appropriated
without regard to fiscal years.
998.551. For the purposes of carrying out this article, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this article. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund from proceeds received from the sale of
bonds for the purpose of carrying out this article.
998.552. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold, in excess of any amount
of premium used to pay costs of issuing the bonds, shall be reserved
in the fund and shall be available for transfer to the General Fund
as a credit to expenditures for bond interest.
998.553. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, all or a
portion of the cost of bond issuance may be paid out of the bond
proceeds, including any premium derived from the sale of the bonds.
These costs shall be shared proportionally by each program funded
through this bond act.
998.554. The board may request the Pooled Money Investment Board
to make a loan from the Pooled Money Investment Account, including
other authorized forms of interim financing that include, but are not
limited to, commercial paper, in accordance with Section 16312 of
the Government Code, for purposes of carrying out this article. The
amount of the request shall not exceed the amount of the unsold bonds
that the committee, by resolution, has authorized to be sold for the
purpose of carrying out this article. The board shall execute any
documents required by the Pooled Money Investment Board to obtain and
repay the loan. Any amounts loaned shall be deposited in the fund to
be allocated by the board in accordance with this article.
998.555. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this article includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this article or any previously issued
refunding bonds.
998.556. Notwithstanding any other provision of this article, or
of the State General Obligation Bond Law, the Treasurer may maintain
separate accounts for the investment of bond proceeds and for the
investment of earnings on those proceeds. The Treasurer may use or
direct the use of those proceeds or earnings to pay any rebate,
penalty, or other payment required under federal law or take any
other action with respect to the investment and use of those bond
proceeds required or desirable under federal tax law or to obtain any
other advantage under federal law on behalf of the funds of this
state.
998.557. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this article
are not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
SEC. 2. Section 998.403 of the Military and Veterans Code is
amended to read:
998.403. For the purpose of creating a fund to provide farm and
home aid for veterans in accordance with the Veterans' Farm and Home
Purchase Act of 1974 (Article 3.1 (commencing with Section 987.50)),
and of all acts amendatory thereof and supplemental thereto, the
committee may create a debt or debts, liability or liabilities, of
the State of California, in the aggregate amount of not more than
three hundred million dollars ($300,000,000), exclusive of refunding
bonds, in the manner provided herein.
SEC. 3. Article 3.2 (commencing with Section 987.001) is added to
Chapter 6 of Division 4 of the Military and Veterans Code, to read:
Article 3.2. The Veterans Housing and Homeless Prevention Act
of 2014
987.001. This article may be cited as the Veterans Housing and
Homeless Prevention Act of 2014.
987.002. (a) The purpose of this article is to provide the
acquisition, construction, rehabilitation, and preservation of
affordable multifamily supportive housing, affordable transitional
housing, affordable rental housing, or related facilities for
veterans and their families to allow veterans to access and maintain
housing stability.
(b) A program established under this article shall be restricted
to veterans and their families.
(c) The California Housing Finance Agency, the Department of
Housing and Community Development, and the Department of Veterans
Affairs, herein after "departments," shall work collaboratively
pursuant to the memorandum of understanding, as specified in Section
987.006, to carry out the duties and functions of this article.
987.003. As used in this article:
(a) "Supportive housing" has the same meaning as defined in
paragraph (2) of subdivision (b) of Section 50675.14 of the Health
and Safety Code, but is not restrictive to only projects with five or
more units.
(b) "Transitional housing" has the same meaning as defined in
subdivision (h) of Section 50675.2 of the Health and Safety Code, but
is not restrictive to only projects with five or more units.
(c) "Affordable rental housing" shall mean a rental housing
development, as defined in subdivision (d) of Section 50675.2 of the
Health and Safety Code, with affordable rents, as defined in
subdivision (a) of Section 50675.2 of the Health and Safety Code, but
neither definition is restrictive to only projects with five or more
units.
(d) "Veteran" means any person who served in the active military,
naval, or air service of the United States, or as a member of the
National Guard who was called to and released from active duty or
active service, for a period of not less than 90 consecutive days or
was discharged from the service due to a service-connected disability
within that 90-day period.
987.004. The administration of this article is vested solely in
the departments. Total costs of administering this article shall not
exceed 5 percent of the bond funds issued.
987.005. (a) The departments shall establish and implement
programs pursuant to the purposes of this article that focus on
veterans at risk for homelessness or experiencing temporary or
chronic homelessness. To the extent feasible, the departments shall
establish and implement programs that, among other things, do the
following:
(1) Leverage public (federal, state, and local), private, and
nonprofit program and fiscal resources.
(2) Prioritize projects that combine housing and supportive
services, including, but not limited to, job training, mental health
and drug treatment, case management, care coordination, or physical
rehabilitation.
(3) Promote public and private partnerships.
(4) Foster innovative financing opportunities.
(5) Ensure program guidelines and terms provide threshold
requirements or scoring criteria, or both, to advance applicants with
experience in combining permanent or transitional housing, or both,
with supportive services for veterans, or for partnering with housing
developers or service providers with experience offering housing or
services to veterans.
(b) The departments shall ensure at least 50 percent of funds
awarded for capital development under this article provide housing to
veteran households with extremely low incomes, as defined in Section
50106 of the Health and Safety Code.
(1) In determining whether a potential tenant is eligible for
supportive, affordable, or transitional housing targeted to extremely
low income households under this provision, eligibility shall take
into consideration all of a household's income sources upon initial
tenancy.
(2) At least 60 percent of units funded targeting extremely low
income households shall be supportive housing.
(3) This section shall not deter the departments from funding
projects serving mixed-income populations.
(c) The departments may review, adopt, amend, and repeal
guidelines or terms, or both, to implement this article. Any
guidelines or terms adopted to implement this article shall not be
subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
(d) Nothing in this article permits the departments or the board
to purchase, operate, or manage properties except in the event of a
foreclosure on a borrower or grantee.
987.006. (a) No later than August 15, 2014, the departments shall
enter into a memorandum of understanding to address their respective
and shared responsibilities in implementing, overseeing, and
evaluating this article.
(b) No later than August 15, 2014, the departments shall submit
the memorandum of understanding to the Senate and Assembly Budget
Committees.
987.007. The departments shall convene a stakeholder process to
inform the development of guidelines for the implementation of any
program pursuant to this article. Stakeholders represented shall
include, but not be limited to, organizations that have experience
providing housing or homeless services, or both, to veterans, housing
developers, and public and private agencies that serve the veteran
population.
987.008. (a) Pursuant to guidelines or terms developed pursuant
to this article, a housing provider or sponsor may redesignate units
within a project, so long as the same number of units financed under
this act remain restricted to veterans and their families.
(b) Pursuant to guidelines or terms pursuant to this article, any
units financed as supportive or transitional housing units for
veterans may be redesignated as affordable rental or supportive
housing to allow a veteran resident to remain housed in the project.
987.009. Notwithstanding Section 13340 of the Government Code,
the proceeds of bonds deposited in the Housing for Veterans Fund
pursuant to Section 998.544 shall be subject to annual appropriation,
as determined by the Legislature.
SEC. 4. Section 50408 of the Health and Safety Code is amended to
read:
50408. (a) On or before December 31 of each year, the department
shall submit an annual report to the Governor and both houses of the
Legislature on the operations and accomplishments during the
previous fiscal year of the housing programs administered by the
department, including, but not limited to, the Emergency Housing and
Assistance Program and Community Development Block Grant activity.
(b) The report shall include all of the following information:
(1) The number of units assisted by those programs.
(2) The number of individuals and households served and their
income levels.
(3) The distribution of units among various areas of the state.
(4) The amount of other public and private funds leveraged by the
assistance provided by those programs.
(5) Information detailing the assistance provided to various
groups of persons by programs that are targeted to assist those
groups.
(6) The information required to be reported pursuant to Section
17031.8.
(7) An evaluation, in collaboration with the Department of
Veterans Affairs, of any program established by the department
pursuant to Article 3.2 (commencing with Section 987.001) of Chapter
6 of Division 4 of the Military and Veterans Code.
SEC. 5. Section 50501 of the Health and Safety Code is amended to
read:
50501. The department may furnish counseling and guidance
services to aid any governmental agency or any private or nonprofit
organization or persons in securing the financial aid or cooperation
of government agencies in the undertaking, construction, maintenance,
operation, or financing of housing for Indians, farm laborers and
their families, persons and families displaced by action of any state
or local public entity, workers engaged in cutting, processing,
milling, handling, or shipping lumber or lumber products, the
families of such workers, veterans, the elderly and handicapped, and
persons and families of low or moderate income. The department may
contract for or sponsor, subject to the availability of federal
funds, experimental or demonstration projects for permanently fixed
or mobile housing designed to meet the special needs of agricultural
workers, persons displaced by action of any local public entity, the
handicapped, the elderly, veterans, Indians, and persons and families
of low or moderate income. Such contracts or sponsorship agreements
may be between the department and local public entities, private
enterprise, or nonprofit organizations.
SEC. 6. Section 50505 of the Health and Safety Code is amended to
read:
50505. The department may enter into agreements to provide
staffing to assist government agencies in the conduct of federal loan
and grant programs for the provision of housing for veterans and
persons and families of low or moderate income in this state.
SEC. 7. Section 50510 of the Health and Safety Code is amended to
read:
50510. The department shall develop and, subject to specific
authorization and appropriation by the Legislature or the
availability of federal subsidies, implement demonstration subsidy
programs to test the effectiveness of one or more housing subsidy
programs for veterans, very low income households, or other persons
and families of low or moderate income. Such programs may include
housing allowance payments, homeownership downpayment assistance,
homeownership interest subsidy, leased housing subleased to very low
income households, rent supplement payments on behalf of very low
income households, or other types of subsidy programs.
SEC. 8. Section 50512 of the Health and Safety Code is amended to
read:
50512. The department may provide technical assistance and aid to
governmental agencies, nonprofit corporations, and housing sponsors
for the purpose of providing the benefits of assisted housing to
veterans, very low income households, and persons and families of low
or moderate income which are handicapped or in which the head of
household has been previously confined to institutional care. Subject
to the availability of staff resources, the department shall
coordinate its technical assistance activities and loan and grant
programs in order to increase participation and understanding of
those activities and programs by public and private groups and
individuals seeking to expand or improve housing opportunities for
veterans, the elderly, or the handicapped.
SEC. 9. Section 1 of this act shall take effect upon the approval
by the voters of the Veterans Housing and Homeless Prevention Bond
Act of 2014, as set forth in that section.
SEC. 10. (a) Notwithstanding Sections 9040, 9043, 9044, 9061,
9094, and 13115 of the Elections Code or any other law, a ballot
measure that sets forth Section 1 of this act shall be submitted to
the voters at the June 3, 2014, statewide primary election.
(b) The Secretary of State shall ensure the placement of the
ballot measure as set forth in Section 1 of this act on the June 3,
2014, statewide primary election ballot, in substantial compliance
with any statutory time requirements applicable to the submission of
statewide measures to the voters at a statewide election.
(c) The Secretary of State shall include, in the ballot pamphlet
mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of the Elections Code regarding
the provisions contained in Section 1 of this act.
SEC. 11. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order that Section 1 of this act be included on the June 3,
2014, statewide primary election ballot for purposes of assisting
veterans at the earliest possible time, it is necessary that this act
take effect immediately.