Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1969


Introduced by Assembly Member Steinorth

February 16, 2016


An act to amend Sectionbegin delete 33334.4end deletebegin insert 51451.5end insert of the Health and Safety Code, relating tobegin delete redevelopment.end deletebegin insert housing, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1969, as amended, Steinorth. begin deleteRedevelopment. end deletebegin insertAffordable housing: home purchase assistance.end insert

begin insert

Existing law establishes the Homebuyer Down Payment Assistance Program of 2002 to provide assistance in the amount of the applicable school facility fee on affordable housing developments. Existing law requires the program to provide purchasers of newly constructed residential structures in development projects with assistance if the development project is located in an economically distressed area and other specified requirements are met, or if the purchaser is a qualified first-time home buyer and other specified requirements are met. Under existing law, the program is funded by bonds sold pursuant to the Housing and Emergency Shelter Trust Fund Act of 2002, which was approved by the voters at the November 5, 2002, statewide general election.

end insert
begin insert

This bill would condition the program’s assistance to purchasers of residential structures in development projects located in economically distressed areas, as described above, on an additional requirement that the development project be located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agency’s schedule of local fees, charges, and other exactions to the California Housing Finance Agency, and would thereby impose a state-mandated local program.

end insert
begin insert

This bill would appropriate an unspecified amount from the General Fund to the California Homebuyer’s Downpayment Assistance Program for the Extra Credit Teacher Home Purchase Program and certain other school personnel home ownership assistance programs. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyer’s Downpayment Assistance Program, if specified requirements are met.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert
begin delete

Existing law sets forth provisions relating to the requirements for expending moneys in a Low and Moderate Income Housing Fund to assist housing for specified persons.

end delete
begin delete

This bill would make technical, nonsubstantive changes to these provisions.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 51451.5 of the end insertbegin insertHealth and Safety Codeend insertbegin insert,
2as amended by Section 1 of Chapter 553 of the Statutes of 2003,
3is amended to read:end insert

4

51451.5.  

The Homebuyer Down Payment Assistance Program
5of 2002 is hereby established, to provide assistance in the amount
6of the applicable school facility fee on affordable housing
7developments. The Homebuyer Down Payment Assistance Program
8of 2002 shall, with funds provided by the Housing and Emergency
P3    1Shelter Trust Fund Act of 2002 (Part 11 (commencing with Section
253500)), provide the following assistance:

3(a)  Downpayment assistance to the purchaser of any newly
4constructed residential structure in a development project in an
5economically distressed area in the amount of school facility fees
6paid pursuant to Section 65995.5 or 65995.7 of the Government
7Code, less the amount that would be required pursuant to
8subdivision (b) of Section 65995 of the Government Code,
9notwithstanding Sections 65995.5 and 65995.7 of the Government
10Code, if all of the following conditions are met:

11(1)  The development project is located in a county with an
12unemployment rate that equals or exceeds 125 percent of the state
13unemployment rate.

14(2)  Five hundred or more residential structures have been
15constructed in the county during 2001.

16(3)  A building permit for an eligible residential structure in the
17development project is issued by the local agency on or after
18January 1, 2002.

19(4)  The eligible residential structure is to be owner occupied
20for at least five years. If a structure is owner occupied for fewer
21than five years, the recipient of the assistance shall repay the School
22Facilities Fee Assistance Fund the amount of the assistance, on a
23prorated basis.

24(5)  The sales price of the eligible residential structure does not
25exceed 175 percent of the median sales price of residential
26structures in the county during the average of the previous five
27years. However, if the five-year average exceeds the
28Governmental-Sponsored Enterprises conforming loan limit, the
29sales price in that county shall not exceed 100 percent of the
30median sales price of residential structures in the county during
31the average of the previous five years.

begin insert

32(6) The development project is located in a city, county, or city
33and county that reduces developer or impact fees or reduces or
34removes regulatory barriers to housing construction for the
35development project. The agency shall identify and shall objectively
36measure the types of local agency actions or incentives that the
37agency determines appropriately reduce developer or impact fees
38or reduce or remove regulatory barriers to housing construction.
39These actions or incentives may include, but are not limited to,
40modifications to any or all of the following:

end insert
begin insert

P4    1(A) Local design review requirements.

end insert
begin insert

2(B) Land use controls.

end insert
begin insert

3(C) Building codes and enforcement.

end insert
begin insert

4(D) Onsite or offsite improvement requirements.

end insert
begin insert

5(E) Project design.

end insert
begin insert

6(F) Permit processing.

end insert
begin insert

7(G) (i) A 30 percent reduction in the schedule of local fees,
8charges, and other exactions on local developers within the local
9agency’s jurisdiction within 12 months or more prior to the
10submission of the application for assistance pursuant to this
11subdivision. The local agency shall provide verification of the
12reduction with supporting documents showing successive annual
13fee schedules to the agency.

end insert
begin insert

14(ii) For the purposes of this subparagraph, “local fees, charges,
15and other exactions” includes, but is not limited to, all of the
16following:

end insert
begin insert

17(I) Planning and zoning fees.

end insert
begin insert

18(II) Environmental documentation fees.

end insert
begin insert

19(III) Building permit fees.

end insert
begin insert

20(IV) Plan check fees.

end insert
begin insert

21(V) School fees.

end insert
begin insert

22(VI) School mitigation fees.

end insert
begin insert

23(VII) Highway, road, traffic, and transit fees.

end insert
begin insert

24(VIII) Water, wastewater, sewer, and drainage fees.

end insert
begin insert

25(IX) Utility or water connection fees.

end insert
begin insert

26(X) Public safety fees.

end insert
begin insert

27(XI) Capital facilities fees.

end insert
begin insert

28(XII) Affordable housing fees and assessments.

end insert
begin insert

29(XIII) Parks and recreation fees.

end insert
begin insert

30(XIV) Any other fee that may substitute for the requirements
31described in subparagraph (D).

end insert

32(b)  Downpayment assistance to the purchaser of any newly
33constructed residential structure in a development project in the
34aggregate amount of school facility fees paid pursuant to one, all,
35or any combination of subdivision (b) of Section 65995, Section
3665995.5, or Section 65995.7 of the Government Code for the
37eligible residential structure if all of the following conditions are
38met:

39(1)  The assistance is provided to a qualified first-time
40homebuyer pursuant to Section 50068.5.

P5    1(2)  The qualified first-time homebuyer does not exceed the
2lower or moderate-income requirements in Section 50093.

3(3)  A building permit for an eligible residential structure in the
4development project is issued by the local agency on or after
5January 1, 2002.

6(4)  The eligible residential structure is to be owner occupied
7for at least five years. If a structure is owner occupied for fewer
8than five years, the recipient of the assistance shall repay the School
9Facilities Fee Assistance Fund the amount of the assistance, on a
10prorated basis.

11begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 51451.5 of the end insertbegin insertHealth and Safety Codeend insertbegin insert, as
12amended by Section 2 of Chapter 553 of the Statutes of 2003, is
13amended to read:end insert

14

51451.5.  

The Homebuyer Down Payment Assistance Program
15of 2002 is hereby established, to provide assistance in the amount
16of the applicable school facility fee on affordable housing. The
17Homebuyer Down Payment Assistance Program of 2002 shall,
18with funds provided by the Kindergarten-University Public
19Education Facilities Bond Acts of 2002 and 2004 (Part 68.1
20(commencing with Section 100600) of the Education Code; and
21Part 68.2 (commencing with Section 100800) of the Education
22Code), provide the following assistance:

23(a)  Downpayment assistance to the purchaser of any newly
24constructed residential structure in a development project in an
25economically distressed area in the amount of school facility fees
26paid pursuant to Section 65995.5 or 65995.7 of the Government
27Code, less the amount that would be required pursuant to
28subdivision (b) of Section 65995 of the Government Code,
29notwithstanding Sections 65995.5 and 65995.7 of the Government
30Code, if all of the following conditions are met:

31(1)  The development project is located in a county with an
32unemployment rate that equals or exceeds 125 percent of the state
33unemployment rate.

34(2)  Five hundred or more residential structures have been
35constructed in the county during 2001.

36(3)  A building permit for an eligible residential structure in the
37project is issued by the local agency on or after January 1, 2002.

38(4)  The eligible residential structure is to be owner occupied
39for at least five years. If a structure is owner occupied for fewer
40than five years, the recipient of the assistance shall repay the School
P6    1Facilities Fee Assistance Fund the amount of the assistance, on a
2prorated basis.

3(5)  The sales price of the eligible residential structure does not
4exceed 175 percent of the median sales price of residential
5structures in the county during the average of the previous five
6years. However, if the five-year average exceeds the
7Governmental-Sponsored Enterprises conforming loan limit, the
8sales price in that county shall not exceed 100 percent of the
9median sales price of residential structures in the county during
10 the average of the previous five years.

begin insert

11(6) The development project is located in a city, county, or city
12and county that reduces developer or impact fees or reduces or
13removes regulatory barriers to housing construction for the
14 development project. The agency shall identify and shall objectively
15measure the types of local agency actions or incentives that the
16agency determines appropriately reduce developer or impact fees
17or reduce or remove regulatory barriers to housing construction.
18These actions or incentives may include, but are not limited to,
19modifications to any or all of the following:

end insert
begin insert

20(A) Local design review requirements.

end insert
begin insert

21(B) Land use controls.

end insert
begin insert

22(C) Building codes and enforcement.

end insert
begin insert

23(D) Onsite or offsite improvement requirements.

end insert
begin insert

24(E) Project design.

end insert
begin insert

25(F) Permit processing.

end insert
begin insert

26(G) (i) A 30 percent reduction in the schedule of local fees,
27charges, and other exactions on local developers within the local
28agency’s jurisdiction within 12 months or more prior to the
29submission of the application for assistance pursuant to this
30subdivision. The local agency shall provide verification of the
31reduction with supporting documents showing successive annual
32fee schedules to the agency.

end insert
begin insert

33(ii) For the purposes of this subparagraph, “local fees, charges,
34and other exactions” includes, but is not limited to, all of the
35following:

end insert
begin insert

36(I) Planning and zoning fees.

end insert
begin insert

37(II) Environmental documentation fees.

end insert
begin insert

38(III) Building permit fees.

end insert
begin insert

39(IV) Plan check fees.

end insert
begin insert

40(V) School fees.

end insert
begin insert

P7    1(VI) School mitigation fees.

end insert
begin insert

2(VII) Highway, road, traffic, and transit fees.

end insert
begin insert

3(VIII) Water, wastewater, sewer, and drainage fees.

end insert
begin insert

4(IX) Utility or water connection fees.

end insert
begin insert

5(X) Public safety fees.

end insert
begin insert

6(XI) Capital facilities fees.

end insert
begin insert

7(XII) Affordable housing fees and assessments.

end insert
begin insert

8(XIII) Parks and recreation fees.

end insert
begin insert

9(XIV) Any other fee that may substitute for the requirements
10described in subparagraph (D).

end insert

11(b)  Downpayment assistance to the purchaser of any newly
12constructed residential structure in a development project in the
13aggregate amount of school facility fees paid pursuant to one, all,
14or any combination of subdivision (b) of Section 65995, Section
1565995.5, or Section 65995.7 of the Government Code for the
16eligible residential structure if all of the following conditions are
17met:

18(1)  The assistance is provided to a qualified first-time home
19buyer pursuant to Section 50068.5.

20(2)  The qualified first-time home buyer does not exceed the
21lower or moderate-income requirements in Section 50093.

22(3)  A building permit for an eligible residential structure in the
23project is issued by the local agency on or after January 1, 2002.

24(4)  The eligible residential structure is to be owner occupied
25for at least five years. If a structure is owner occupied for fewer
26than five years, the recipient of the assistance shall repay the School
27Facilities Fee Assistance Fund the amount of the assistance, on a
28prorated basis.

29begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
30this act contains costs mandated by the state, reimbursement to
31local agencies and school districts for those costs shall be made
32pursuant to Part 7 (commencing with Section 17500) of Division
334 of Title 2 of the Government Code.

end insert
34begin insert

begin insertSEC. 4.end insert  

end insert

begin insertThe sum of ____ dollars ($____) is hereby
35appropriated from the General Fund to the California
36Homebuyer’s Downpayment Assistance Program for the purposes
37set forth in Section 51505 of the Health and Safety Code. After 48
38months of availability, if the California Housing Finance Agency
39determines that these moneys will not be utilized for the purposes
40set forth in Section 51505 of the Health and Safety Code, the
P8    1moneys shall be available for the general use of the California
2Housing Finance Agency for the purposes of the California
3Homebuyer’s Downpayment Assistance Program, but may also
4continue to be available for the purposes set forth in Section 51505
5of the Health and Safety Code.end insert

begin delete
6

SECTION 1.  

Section 33334.4 of the Health and Safety Code
7 is amended to read:

8

33334.4.  

(a) Except as specified in subdivision (d), each
9agency shall expend over each 10-year period of the
10implementation plan, as specified in clause (iii) of subparagraph
11(A) of paragraph (2) of subdivision (a) of Section 33490, the
12moneys in the Low and Moderate Income Housing Fund to assist
13housing for persons of low income and housing for persons of very
14low income in at least the same proportion as the total number of
15housing units needed for each of those income groups bears to the
16total number of units needed for persons of moderate, low, and
17very low income within the community, as those needs have been
18determined for the community pursuant to Section 65584 of the
19Government Code. In determining compliance with this obligation,
20the agency may adjust the proportion by subtracting from the need
21identified for each income category, the number of units for persons
22of that income category that are newly constructed over the
23duration of the implementation plan with other locally controlled
24government assistance and without agency assistance and that are
25required to be affordable to, and occupied by, persons of the income
26category for at least 55 years for rental housing and 45 years for
27ownership housing, except that in making an adjustment the agency
28may not subtract units developed pursuant to a replacement housing
29obligation under state or federal law.

30(b) Each agency shall expend over the duration of each
31redevelopment implementation plan, the moneys in the Low and
32Moderate Income Housing Fund to assist housing that is available
33to all persons regardless of age in at least the same proportion as
34the number of low-income households with a member under age
3565 years bears to the total number of low-income households of
36the community as reported in the most recent census of the United
37States Census Bureau.

38(c) An agency that has deposited in the Low and Moderate
39Income Housing Fund over the first five years of the period of an
40implementation plan an aggregate that is less than two million
P9    1dollars ($2,000,000) shall have an extra five years to meet the
2requirements of this section.

3(d) For the purposes of this section, “locally controlled” means
4government assistance where the community or other local
5government entity has the discretion and the authority to determine
6the recipient and the amount of the assistance, whether or not the
7source of the funds or other assistance is from the state or federal
8government. Examples of locally controlled government assistance
9include, but are not limited to, Community Development Block
10Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a
11city or county, HOME Investment Partnerships Program (42 U.S.C.
12Sec. 12721 et seq.) funds allocated to a city or county, fees or funds
13received by a city or county pursuant to a city or county authorized
14program, and the waiver or deferral of city or other charges.

end delete


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