Amended in Assembly May 28, 2015

Amended in Assembly May 13, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 325


Introduced by Assembly Member Wood

February 13, 2015


An actbegin delete to amend Section 50860 of, andend delete to add Section 50832.2begin delete to,end deletebegin insert toend insert the Health and Safety Code, relating to economicbegin delete development, and making an appropriation therefor, to take effect immediately, bill related to the budget.end deletebegin insert development.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 325, as amended, Wood. Community Development Block Grantbegin delete Program: Begin Equity and Growth in Neighborhoods Fund: funds.end deletebegin insert Program.end insert

Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department tobegin delete determine,end deletebegin insert determineend insert and announce in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.

This bill would require the department, no later than 60 days after the department notifies an applicant that the department has approved the applicant’s application for those grant funds, to enter into a grant agreement with the applicant. The bill would require the department, when the department enters into a grant agreement with an applicant, to provide the applicant with a complete and final list of activities the applicant must complete in order to receive a disbursement of funds pursuant to the agreement. The bill would also require the department, no later than 30 days after receiving a grantee’s request for disbursement of funds, to notify the grantee that the department has approved disbursement or to provide the grantee with a complete and final list of all of the remaining activities the grantee must complete, as specified.

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Existing law creates the Building Equity and Growth in Neighborhoods (BEGIN) Program and the BEGIN Fund. Moneys in the fund are made available, upon appropriation, to the department for grants to cities, counties, and cities and counties for assistance for downpayment purposes to qualifying new home buyers in those cities, counties, and cities and counties that have taken prescribed actions to remove barriers to affordable housing. Existing law appropriates moneys to the department from the BEGIN fund and specifies the periods to liquidate the encumbrances.

end delete
begin delete

This bill would, notwithstanding any other law, extend the period to liquidate the encumbrances of certain appropriations from the BEGIN fund to the department until June 30, 2017, or June 30, 2018.

end delete
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This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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

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

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P2    1

SECTION 1.  

It is the intent of the Legislature to assist cities
2including, but not limited to, the City of Santa Rosa by extending
3the period to liquidate certain encumbrances associated with the
4Building Equity and Growth in Neighborhoods (BEGIN) Fund.

end delete
5

begin deleteSEC. 2.end delete
6begin insertSECTION 1.end insert  

Section 50832.2 is added to the Health and Safety
7Code
, to read:

8

50832.2.  

(a) (1) No later than 60 days after the department
9notifies an applicant that the department has approved the
P3    1applicant’s application for funds pursuant to this chapter, the
2department shall enter into a grant agreement with the applicant.

3(2) When the department enters into a grant agreement with an
4applicant, the department shall provide the applicant with a
5complete and final list of all of the activities the applicant must
6complete in order to receive a disbursement of funds pursuant to
7the agreement.

8(b) No later than 30 days after the department receives a request
9for the disbursement of funds from a grantee, the department shall
10take either of the following actions:

11(1) Notify the grantee that the department has approved
12disbursement of the funds.

13(2) Provide the applicant with a complete and final list of all of
14the remaining activities the applicant must complete in order for
15the department to approve disbursement of the funds.

begin delete
16

SEC. 3.  

Section 50860 of the Health and Safety Code is
17amended to read:

18

50860.  

(a) The Building Equity and Growth in Neighborhoods
19(BEGIN) Program and the Building Equity and Growth in
20Neighborhoods (BEGIN) Fund are hereby created.

21(b) Except as otherwise provided in this chapter, moneys in the
22BEGIN Fund shall be made available upon appropriation by the
23Legislature to the department and administered by the department
24pursuant to the CalHome Program (Chapter 6 (commencing with
25Section 50650), to make grants to qualifying cities, counties, or
26cities and counties that provide incentives or reduce or remove
27regulatory barriers as set forth in this chapter. These grants shall,
28except as otherwise provided by this chapter, be used for
29downpayment assistance to qualifying first-time home buyers of
30low- and moderate-incomes purchasing newly constructed homes
31in a BEGIN project.

32(c) Any loan repayments shall be retained by the qualifying
33city, county, or city and county and reused for first-time home
34buyer downpayment assistance, home rehabilitation, home buyer
35counseling, home acquisition and rehabilitation, or self-help
36mortgage assistance for persons and families of low- or
37moderate-income, as defined in Section 50093.

38(d) Notwithstanding any other law, the period to liquidate the
39encumbrances set forth in Items 2240-491 and 2240-102-6038 of
40the Budget Act of 2010 is hereby extended to June 30, 2017.

P4    1(e)  Notwithstanding any other law, the periods to liquidate the
2encumbrances set forth in Item 2240-490 of the Budget Act of
32011 are hereby extended until June 30, 2018.

4

SEC. 4.  

This act is a bill providing for appropriations related
5to the Budget Bill within the meaning of subdivision (e) of Section
612 of Article IV of the California Constitution, has been identified
7as related to the budget in the Budget Bill, and shall take effect
8immediately.

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