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)
Page 2 of ?
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)
Page 3 of ?
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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