Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 90

Introduced by Assembly begin delete Member end delete begin insert Members Chau and end insert Atkins

January 7, 2015

An act to begin insert amend Section 50408 of, and to end insert add Chapter 6.8 (commencing with Section 50676) to Part 2 of Division 31 begin delete of end delete begin insert of, end insert the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 90, as amended, begin delete Atkins end delete begin insert Chau end insert . Federal Housing Trust Fund.

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Existing law establishes the multifamily housing program under the administration of the Department of Housing and Community Development to provide a standardized set of program rules and features applicable to all housing types based on the department’s California Housing Rehabilitation Program. Existing law also establishes the CalHome Program under the administration of the department to provide grants and loans to enable low- and very low income households to become or remain homeowners.

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Existing law establishes the Department of Housing and Community Development in the Business, Consumer Services, and Housing Agency. The department is responsible for administering various housing and home loan programs throughout the state. Existing law also establishes the California Housing Finance Agency within the department, and provides that the primary purpose of the agency is to meet the housing needs of persons and families of low to moderate income.

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Existing federal law requires the Secretary of the Department of Housing and Urban Development to establish a Housing Trust Fund to provide grants to states to increase the supply of rental housing for extremely low- and very low income families, including homeless families, and homeownership for extremely low- and very low income families.

This bill would designate the Department of Housing and Community Development as the state agency responsible for administering begin insert funds received by the state from end insert the federal Housing Trust Fund. begin delete The bill would require the department to administer the federal funds pursuant to the multifamily housing program, except that up to 10% of the funds may be appropriated by the Legislature to the CalHome Program. The bill would require the department to submit notifications with specified information relating to the distribution, awarding, and expenditure of the federal funds, as prescribed. end delete begin insert This bill would require the department to administer the funds through programs that produce, preserve, rehabilitate, or support the operation of rental housing for extremely low income and very low income households, except that up to 10% of funding may be used to support first-time homeownership for extremely low income and very low income households. The bill would require any project funded from the federal Housing Trust Fund to restrict affordability for 55 years. end insert

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This bill would require the department to collaborate with the California Housing Finance Agency to develop an allocation plan to demonstrate how the funds will be distributed, based on the priority housing needs identified in the state’s consolidated plan, and to convene a stakeholder process to inform the development of the plan. The bill would require the allocation plan to give priority to projects based on specified factors. The bill would require the department to submit the plan to the Assembly Committee on Housing and Community Development and the Senate Transportation and Housing Committee 30 days after receipt of the federal funds.

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Existing law requires, on or before December 31 of each year, the department to submit an annual report, containing specified information, 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.

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This bill would require that annual report to also include an evaluation of any program established by the department to meet the Federal Housing Trust Fund program guidelines.

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Vote: majority. Appropriation: no. Fiscal committee: yes. 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   

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begin insert Section 50408 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

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.

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(8) An evaluation of any program established by the department
to meet the Federal Housing Trust Fund program guidelines.

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begin insert SEC. 2. end insert   

Chapter 6.8 (commencing with Section 50676) is added
to Part 2 of Division 31 of the Health and Safety Code, to read:

 

Chapter  6.8. Federal Housing Trust Fund

 

50676.  

(a) The department is hereby designated as the state
agency responsible for administering funds received by the state
from the federal Housing Trust Fund pursuant to the Housing and
Economic Recovery Act of 2008 (Public Law 110-289), and
implementing federal regulations.

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(b) The department shall administer the funds specified in
subdivision (a) pursuant to the state multifamily housing program
established in Chapter 6.7 (commencing with Section 50675),
except that up to 10 percent of the funds may be appropriated by
the Legislature to the CalHome Program established in Chapter 6
(commencing with Section 50650).

(c) The department shall amend its regulations, as needed, to
comply with federal law.

(d) The department shall submit both of the following to the
Legislature:

(1) A notification describing the department’s plan for
distributing the funds, including a schedule for the release of all
funds, no later than 30 days after receipt of the federal funds.

(2) A notification detailing the cumulative amounts of funds
awarded and expended, no later than 180 days after receipt of the
federal funds and on or before December 31 of each year thereafter.

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(b) The department shall administer the funds through programs
that produce, preserve, rehabilitate, or support the operation of
rental housing for extremely low income and very low income
households, except that up to 10 percent of funding may be used
to support first-time homeownership for extremely low income and
very low income households. Any project funded from the federal
Housing Trust Fund shall restrict affordability for 55 years.

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(c) The department shall collaborate with the California
Housing Finance Agency to develop an allocation plan to
demonstrate how the funds shall be distributed, based on the
priority housing needs identified in the state’s consolidated plan
prepared in accordance with Part 91 (commencing with Section
91.1) of Subtitle A of Title 24 of the Code of Federal Regulations.
The department shall submit the plan to the Assembly Committee
on Housing and Community Development and the Senate
Transportation and Housing Committee 30 days after receipt of
the federal funds.

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(d) The allocation plan shall give priority to projects based on:

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(1) Geographic diversity.

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(2) The extent to which rents are affordable, especially to
extremely low income households.

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(3) The merits of a project.

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(4) Applicants readiness.

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(5) The extent to which projects will use nonfederal funds.

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begin insert 50676.1. end insert   

The departments shall convene a stakeholder process
to inform the development of the allocation plan. Stakeholders
represented shall include, but not be limited to, organizations that
provide rental housing for extremely low income households and
very low income households or assist extremely low income
households and very low income households to become
homeowners.

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