BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1516           Hearing Date:    7/14/2015
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          |Author:   |Committee on H&CD                                     |
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          |Version:  |6/22/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Alison Dinmore                                        |
          |:         |                                                      |
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          SUBJECT:  Housing omnibus bill


          DIGEST:  This bill makes technical and non-controversial changes  
          to sections of law relating to housing. 
            
          ANALYSIS:
          
          According to the Legislative Analyst's Office, the cost of  
          producing a bill in 2001-2002 was $17,890.  By combining  
          multiple matters into one bill, the Legislature can make minor  
          changes to law in the most cost-effective manner.

          Proposals included in this housing omnibus bill must abide by  
          the Senate Transportation and Housing Committee policy on  
          omnibus committee bills.  The proponent of an item submits  
          proposed language and provides background materials to the  
          committee for the item to be described to legislative staff and  
          stakeholders.  Committee staff provides a summary of the items  
          and the actual legislative language to all majority and minority  
          consultants in both the Senate and Assembly, as well as all  
          known or presumed interested parties.  If an item encounters any  
          opposition and the proponent cannot work out a solution with the  
          opposition, the item is omitted from or amended out of the bill.  
           Proposals in the bill must reflect a consensus and be without  
          opposition from legislative members, agencies, and other  
          stakeholders.

          This bill makes non-controversial changes to sections of law  
          relating to housing.  Specifically, the bill includes the  







          AB 1516 (Committee on H&CD)                                   
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          following provisions.  The proposer of each provision is noted  
          in brackets.

          1)Technical change to Davis-Sterling Act.  [Section 1] The  
            Davis-Stirling Act establishes the rules and regulations  
            governing the operation of a common interest development and  
            the respective rights and duties of a homeowners association  
            (HOA) and its members.  The bill would make a technical,  
            non-substantive change by replacing "funding" with "funded."    
            [Kerry Mazzoni, Education Community for Homeowners]

          2)Updating a cross-reference.  [Section 2]  The Housing  
            Accountability Act, among other things, prohibits a local  
            agency from disapproving a housing development project unless  
            the local agency makes specified written findings.  This bill  
            would update cross-references and make technical changes to  
            the Act.   [Rebecca Rabovsky, Assembly Committee on Housing  
            and Community Development]

          3)Aligning state law with federal law.  [Section 3]  This bill  
            will update the statute to allow a Home Purchase Assistance  
            (HPA) downpayment assistance loan to be recorded in a junior  
            lien position.  When the HPA statute was originally enacted,  
            it was common that a loan have two funding sources.  The  
            intent was that this loan would be junior to senior debt, thus  
            the statutes currently state that this loan must be in second  
            position.  In recent years, it has become increasingly common  
            for loans to have more than two funding sources.  Other  
            downpayment assistance programs administered by CalHFA allow  
            them to be recorded in a "junior" position, which gives the  
            agency the flexibility it needs to use these funds in  
            conjunction with other downpayment assistance programs.  This  
            proposal would provide that same flexibility for the HPA  
            program.  This bill will also update the HPA statute to ensure  
            it meets all of the qualifications of federal laws and  
            regulations, allowing it to be used with a Federal Housing  
            Authority-insured loan product.  [Rebecca Rabovsky, Assembly  
            Committee on Housing and Community Development]

          COMMENTS:

          Purpose of this bill.  The purpose of omnibus bills is to  
          include technical and non-controversial changes to various  
          committee-related statutes into one bill.  This allows the  








          AB 1516 (Committee on H&CD)                                   
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          legislature to make multiple, minor changes to statutes in one  
          bill in a cost-effective manner.  The Senate Committee on  
          Transportation and Housing insists that its housing omnibus bill  
          be a consensus measure.  If there is no consensus on a  
          particular item, it cannot be included.  There is no known  
          opposition to any item in this bill.

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            



          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          July 8, 2015.)
          
            SUPPORT:  

          None received

          OPPOSITION:

          None received
          
          
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