Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2161

Introduced by Assembly Member Chau

February 20, 2014

An act to begin delete amend end delete begin insert add end insert Section begin delete 50702 of end delete begin insert 50406.8 to end insert the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2161, as amended, Chau. begin delete Housing-Related Parks Program. end delete begin insert Affordable housing. end insert

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Existing law authorizes the Department of Housing and Community Development to provide technical assistance to groups and persons with various housing needs and to administer various housing loan programs. Existing law authorizes the department to extend the term of existing multifamily housing loans made under specified programs upon the request of any borrower, subject to certain conditions, as provided.

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This bill would authorize the department, upon request of the borrower of any loan issued by the department that has reached maturity, either to reloan the original amount of the matured loan, plus accrued interest, on the same terms and conditions as the original loan, or to restructure the loan, if the loan was issued under specified programs.

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Existing law establishes the Housing-Related Parks Program, administered by the Department of Housing and Community Development, which provides grants for the creation, development, or rehabilitation of park and recreation facilities to cities, counties, and cities and counties. Existing law authorizes the department, to the extent that funds are available, to determine the base grant amount to be provided to any city, county, or city and county that meets specified criteria.

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This bill would make a technical, nonsubstantive change to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 50406.8 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 50406.8. end insert   

end insert

begin insert Notwithstanding any other law, the department, upon
the request of the borrower of any loan issued by the department
that has reached maturity, may do either of the following, at the
option of the borrower: end insert

begin insert

(a) Reloan the original amount of the matured loan, plus
accrued interest, on the same terms and conditions as the original
loan.

end insert begin insert

(b) Restructure the loan, if the original loan was issued pursuant
to Section 50515.2 or 50517.7.

end insert

begin delete

SECTION 1.  

Section 50702 of the Health and Safety Code is
amended to read:

50702.  

(a) To the extent that funds are available for this
purpose, the department shall determine a base grant amount to
be provided under this chapter to any city, county, or city and
county that meets all of the following criteria:

(1) On or before the end of the period covered by the Notice of
Funding Availability required under subdivision (b), the jurisdiction
has adopted a housing element that the department, pursuant to
Section 65585 of the Government Code, has found to be in
substantial compliance with the requirements of Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of
Title 7 of the Government Code, and the jurisdiction submitted to
the department the annual progress report required under Section
65400 of the Government Code for the preceding 12-month
calendar year.

(2) The jurisdiction can document either of the following:

(A) The issuance of building permits for new housing units that
are affordable to very low or low-income households within the
designated time period and that meet one of the following criteria:

(i) In the case of rental units, the development is subject to a
regulatory agreement recorded against the property that obligates
the owner to maintain rents on the restricted units at levels
affordable to very low or low-income households for at least 55
years.

(ii) In the case of ownership housing, units in the development
are initially sold to households of very low or low income at an
affordable housing cost. If public funds are used to achieve an
affordable housing cost, then upon the sale of an assisted unit to
a very low or low-income household, the public entity shall ensure
the repayment of the public funds and reuse of those funds for
affordable housing for a period of at least 20 years. The proposed
mechanism for restrictions of ownership units shall be consistent
with criteria established by the department and specified in the
Notice of Funding Availability.

(B) The issuance of a certificate of occupancy or other evidence
of readiness for occupancy within the designated time period for
units that meet the requirements of paragraph (2) of subdivision
(c) of Section 65583.1 of the Government Code, except that the
city, county, or city and county may have committed assistance at
any time during the projection period.

(b) For each year that funds are available, the department shall
issue a Notice of Funding Availability for building permits issued
during the designated time period. The department shall accept
applications at the close of the designated period. Grant amounts
shall be based on a per-bedroom incentive for each unit restricted
for very low and low-income households. For the purposes of this
section, single-room occupancies and studio apartments shall be
considered one-bedroom units.

(c) If eligibility for funds exceeds the amount of funding
available for the program, the department shall reduce all grants
proportionally.

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