Amended in Senate August 31, 2015

Amended in Assembly April 22, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 90

Introduced by Assembly Members Chau and Atkins

January 7, 2015

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

LEGISLATIVE COUNSEL’S DIGEST

AB 90, as amended, Chau. Federal Housing Trust Fund.

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.

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 begin delete homeownership end delete begin insert home ownership end insert 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 funds received by the state from the federal Housing Trust Fund. This bill would require the department to administer the funds through begin insert existing or newly created end insert 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 begin delete homeownership end delete begin insert home ownership end insert for extremely low income and very low income households. The bill would require any rental project funded from the federal Housing Trust Fund to restrict affordability for 55 begin delete years end delete begin insert years, as specified, end insert and require any begin delete homeownership end delete begin insert home ownership end insert program funded from the federal Housing Trust Fund to restrict affordability for 30 begin delete years. end delete begin insert years, as specified. end insert

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 begin insert and guidelines end insert 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.

begin insert

The bill would authorize the department to adopt, amend, or repeal guidelines to implement these provisions. The bill would exempt these guidelines from the Administrative Procedure Act.

end insert

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.

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

begin insert

This bill would incorporate additional changes to Section 50408 of the Healthy and Safety Code proposed by AB 388 that would become operative if this bill and AB 388 are enacted and this bill is enacted last.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

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.

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

begin insert

begin insert SEC. 1.5. end insert   

end insert

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)  begin insert (A) end insert begin insert   end insert 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 begin delete Code. end delete begin insert end insert begin insert Code,
including information relating to the effectiveness of assisted
projects in helping veterans occupying any supportive housing or
transitional housing development that was issued funds pursuant
to that article. end insert

begin insert

(B) The evaluation shall include, but is not limited to, the
following information:

end insert begin insert

(i) Performance outcome data including, but not limited to,
housing stability, housing exit information, and tenant satisfaction,
which may be measured by a survey, and changes in income,
benefits, and education.

end insert begin insert

(I) For purposes of this paragraph, the term “housing stability”
includes, but is not limited to, how many tenants exit transitional
housing to permanent housing or maintain permanent housing,
and the length of time those tenants spent in assisted units.

end insert begin insert

(II) For purposes of this paragraph, the term “housing exit
information” includes, but is not limited to, the following:

end insert begin insert

(ia) How many tenants left assisted units.

end insert begin insert

(ib) The length of tenancy in assisted units.

end insert begin insert

(ic) The reason those tenants left assisted units, when that
information is readily obtainable.

end insert begin insert

(id) The housing status of a tenant exiting an assisted unit upon
exit when that information is readily available.

end insert begin insert

(ii) Client data, which may include, but is not limited to,
demographic characteristics of the veteran and his or her family,
educational and employment status of the veteran, and
veteran-specific information including, but not limited to, disability
ratings, type of discharge, branch, era of service, and veterans
affairs health care eligibility.

end insert begin insert

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

end insert

SEC. 2.  

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.

(b) The department shall administer the funds through begin insert any
existing or newly created end insert 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 begin delete homeownership end delete begin insert home
ownership end insert for extremely low income and very low income
households. Any rental project funded from the federal Housing
Trust Fund shall restrict affordability for 55 begin delete years. end delete begin insert years through
a recorded and enforceable affordability covenant. end insert Any
begin delete homeownership end delete begin insert home ownership end insert program funded from the federal
Housing Trust Fund shall restrict affordability for 30 begin delete years. end delete begin insert years
through either a recorded and enforceable affordability covenant
or a recorded and enforceable equity recapture agreement. end insert

(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.

(d) The allocation plan begin insert and guidelines end insert shall give priority to
projects based on:

(1) Geographic diversity.

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

(3) The merits of a project.

(4) Applicants readiness.

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

50676.1.  

begin insert (a) end insert begin insert   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.

begin insert

(b) The department may adopt, amend, or repeal guidelines to
implement this chapter. Any guidelines adopted to implement this
chapter 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.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

Section 1.5 of this bill incorporates amendments to
Section 50408 of the Health and Safety Code proposed by both
this bill and Assembly Bill 388. It shall only become operative if
(1) both bills are enacted and become effective on or before
January 1, 2016, (2) each bill amends Section 50408 of the Health
and Safety Code, and (3) this bill is enacted after Assembly Bill
388, in which case Section 1 of this bill shall not become operative.

end insert