BILL NUMBER: AB 2161 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Chau
FEBRUARY 20, 2014
An act to amend add Section
50702 of 50406.8 to the Health and Safety Code,
relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2161, as amended, Chau. Housing-Related Parks Program.
Affordable housing.
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.
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.
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.
This bill would make a technical, nonsubstantive change to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50406.8 is added to the
Health and Safety Code , to read:
50406.8. 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:
(a) Reloan the original amount of the matured loan, plus accrued
interest, on the same terms and conditions as the original loan.
(b) Restructure the loan, if the original loan was issued pursuant
to Section 50515.2 or 50517.7.
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.