Amended in Assembly April 6, 2016

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 Section 51451.5 of the Health and Safety Code, relating to housing, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1969, as amended, Steinorth. Affordable housing: home purchase assistance.

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.

This billbegin insert would appropriate an unspecified amount from the General Fund to the California Homebuyer’s Downpayment Assistance Program of 2002. The billend insert would conditionbegin delete the program’send deletebegin insert the application of these funds to theend insert 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 localbegin delete program.end delete

begin deleteThis 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.end deletebegin insert program.end insert 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.

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.

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.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1

SECTION 1.  

Section 51451.5 of the Health and Safety Code,
2as amended by Section 1 of Chapter 553 of the Statutes of 2003,
3is amended to read:

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
9Shelter Trust Fund Act of 2002 (Part 11 (commencing with Section
1053500)), provide the following assistance:

P3    1(a)  Downpayment assistance to the purchaser of any newly
2constructed residential structure in a development project in an
3economically distressed area in the amount of school facility fees
4paid pursuant to Section 65995.5 or 65995.7 of the Government
5Code, less the amount that would be required pursuant to
6subdivision (b) of Section 65995 of the Government Code,
7notwithstanding Sections 65995.5 and 65995.7 of the Government
8Code, if all of the following conditions are met:

9(1)  The development project is located in a county with an
10unemployment rate that equals or exceeds 125 percent of the state
11unemployment rate.

12(2)  Five hundred or more residential structures have been
13constructed in the county during 2001.

14(3)  A building permit for an eligible residential structure in the
15development project is issued by the local agency on or after
16January 1, 2002.

17(4)  The eligible residential structure is to be owner occupied
18for at least five years. If a structure is owner occupied for fewer
19than five years, the recipient of the assistance shall repay the School
20Facilities Fee Assistance Fund the amount of the assistance, on a
21prorated basis.

22(5)  The sales price of the eligible residential structure does not
23exceed 175 percent of the median sales price of residential
24structures in the county during the average of the previous five
25years. However, if the five-year average exceeds the
26Governmental-Sponsored Enterprises conforming loan limit, the
27sales price in that county shall not exceed 100 percent of the
28median sales price of residential structures in the county during
29the average of the previous five years.

begin delete

30(6) The development project is located in a city, county, or city
31and county that reduces developer or impact fees or reduces or
32removes regulatory barriers to housing construction for the
33development project. The agency shall identify and shall
34objectively measure the types of local agency actions or incentives
35that the agency determines appropriately reduce developer or
36impact fees or reduce or remove regulatory barriers to housing
37construction. These actions or incentives may include, but are not
38limited to, modifications to any or all of the following:

39(A) Local design review requirements.

40(B) Land use controls.

P4    1(C) Building codes and enforcement.

2(D) Onsite or offsite improvement requirements.

3(E) Project design.

4(F) Permit processing.

5(G) (i) A 30 percent reduction in the schedule of local fees,
6charges, and other exactions on local developers within the local
7agency’s jurisdiction within 12 months or more prior to the
8submission of the application for assistance pursuant to this
9subdivision. The local agency shall provide verification of the
10reduction with supporting documents showing successive annual
11fee schedules to the agency.

12(ii) For the purposes of this subparagraph, “local fees, charges,
13and other exactions” includes, but is not limited to, all of the
14following:

15(I) Planning and zoning fees.

16(II) Environmental documentation fees.

17(III) Building permit fees.

18(IV) Plan check fees.

19(V) School fees.

20(VI) School mitigation fees.

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

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

23(IX) Utility or water connection fees.

24(X) Public safety fees.

25(XI) Capital facilities fees.

26(XII) Affordable housing fees and assessments.

27(XIII) Parks and recreation fees.

28(XIV) Any other fee that may substitute for the requirements
29described in subparagraph (D).

end delete

30(b)  Downpayment assistance to the purchaser of any newly
31constructed residential structure in a development project in the
32aggregate amount of school facility fees paid pursuant to one, all,
33or any combination of subdivision (b) of Section 65995, Section
3465995.5, or Section 65995.7 of the Government Code for the
35eligible residential structure if all of the following conditions are
36met:

37(1)  The assistance is provided to a qualified first-time
38homebuyer pursuant to Section 50068.5.

39(2)  The qualified first-time homebuyer does not exceed the
40lower or moderate-income requirements in Section 50093.

P5    1(3)  A building permit for an eligible residential structure in the
2development project is issued by the local agency on or after
3January 1, 2002.

4(4)  The eligible residential structure is to be owner occupied
5for at least five years. If a structure is owner occupied for fewer
6than five years, the recipient of the assistance shall repay the School
7Facilities Fee Assistance Fund the amount of the assistance, on a
8prorated basis.

begin insert

9
(c) Downpayment assistance from funds appropriated by the
10act adding this subdivision to provide assistance in the amount of
11the applicable school facility fee on affordable housing shall be
12available to the purchaser of any newly constructed residential
13structure in a development project in an economically distressed
14area if the following requirements are met:

end insert
begin insert

15
(1) The downpayment assistance is in the amount of school
16facility fees paid pursuant to Section 65995.5 or 65995.7 of the
17Government Code, less the amount that would be required pursuant
18to subdivision (b) of Section 65995 of the Government Code,
19notwithstanding Sections 65995.5 and 65995.7 of the Government
20Code.

end insert
begin insert

21
(2) The downpayment assistance is for a residential structure
22that satisfies the conditions described in paragraphs (1) to (5),
23inclusive, of subdivision (a).

end insert
begin insert

24
(3) The development project is located in a city, county, or city
25and county that reduces developer or impact fees or reduces or
26removes regulatory barriers to housing construction for the
27development project. The agency shall identify and shall objectively
28measure the types of local agency actions or incentives that the
29agency determines appropriately reduce developer or impact fees
30or reduce or remove regulatory barriers to housing construction.
31These actions or incentives may include, but are not limited to,
32modifications to any or all of the following:

end insert
begin insert

33
(A) Local design review requirements.

end insert
begin insert

34
(B) Land use controls.

end insert
begin insert

35
(C) Building codes and enforcement.

end insert
begin insert

36
(D) Onsite or offsite improvement requirements.

end insert
begin insert

37
(E) Project design.

end insert
begin insert

38
(F) Permit processing.

end insert
begin insert

39
(G) (i) A 30 percent reduction in the schedule of local fees,
40charges, and other exactions on local developers within the local
P6    1agency’s jurisdiction within 12 months or more prior to the
2submission of the application for assistance pursuant to this
3subdivision. The local agency shall provide verification of the
4reduction with supporting documents showing successive annual
5fee schedules to the agency.

end insert
begin insert

6
(ii) For the purposes of this subparagraph, “local fees, charges,
7and other exactions” includes, but is not limited to, all of the
8following:

end insert
begin insert

9
(I) Planning and zoning fees.

end insert
begin insert

10
(II) Environmental documentation fees.

end insert
begin insert

11
(III) Building permit fees.

end insert
begin insert

12
(IV) Plan check fees.

end insert
begin insert

13
(V) School fees.

end insert
begin insert

14
(VI) School mitigation fees.

end insert
begin insert

15
(VII) Highway, road, traffic, and transit fees.

end insert
begin insert

16
(VIII) Water, wastewater, sewer, and drainage fees.

end insert
begin insert

17
(IX) Utility or water connection fees.

end insert
begin insert

18
(X) Public safety fees.

end insert
begin insert

19
(XI) Capital facilities fees.

end insert
begin insert

20
(XII) Affordable housing fees and assessments.

end insert
begin insert

21
(XIII) Parks and recreation fees.

end insert
begin insert

22
(XIV) Any other fee that may substitute for the requirements
23described in subparagraph (D).

end insert
24

SEC. 2.  

Section 51451.5 of the Health and Safety Code, as
25amended by Section 2 of Chapter 553 of the Statutes of 2003, is
26amended to read:

27

51451.5.  

The Homebuyer Down Payment Assistance Program
28of 2002 is hereby established, to provide assistance in the amount
29of the applicable school facility fee on affordable housing. The
30Homebuyer Down Payment Assistance Program of 2002 shall,
31with funds provided by the Kindergarten-University Public
32Education Facilities Bond Acts of 2002 and 2004 (Part 68.1
33(commencing with Section 100600) of the Educationbegin delete Code;end deletebegin insert Code,end insert
34 and Part 68.2 (commencing with Section 100800) of the Education
35Code), provide the following assistance:

36(a)  Downpayment assistance to the purchaser of any newly
37constructed residential structure in a development project in an
38economically distressed area in the amount of school facility fees
39paid pursuant to Section 65995.5 or 65995.7 of the Government
40Code, less the amount that would be required pursuant to
P7    1subdivision (b) of Section 65995 of the Government Code,
2notwithstanding Sections 65995.5 and 65995.7 of the Government
3Code, if all of the following conditions are met:

4(1)  The development project is located in a county with an
5unemployment rate that equals or exceeds 125 percent of the state
6unemployment rate.

7(2)  Five hundred or more residential structures have been
8constructed in the county during 2001.

9(3)  A building permit for an eligible residential structure in the
10project is issued by the local agency on or after January 1, 2002.

11(4)  The eligible residential structure is to be owner occupied
12for at least five years. If a structure is owner occupied for fewer
13than five years, the recipient of the assistance shall repay the School
14Facilities Fee Assistance Fund the amount of the assistance, on a
15prorated basis.

16(5)  The sales price of the eligible residential structure does not
17exceed 175 percent of the median sales price of residential
18structures in the county during the average of the previous five
19years. However, if the five-year average exceeds the
20Governmental-Sponsored Enterprises conforming loan limit, the
21sales price in that county shall not exceed 100 percent of the
22median sales price of residential structures in the county during
23the average of the previous five years.

begin delete

24(6) The development project is located in a city, county, or city
25and county that reduces developer or impact fees or reduces or
26removes regulatory barriers to housing construction for the
27 development project. The agency shall identify and shall
28objectively measure the types of local agency actions or incentives
29that the agency determines appropriately reduce developer or
30impact fees or reduce or remove regulatory barriers to housing
31construction. These actions or incentives may include, but are not
32limited to, modifications to any or all of the following:

33(A) Local design review requirements.

34(B) Land use controls.

35(C) Building codes and enforcement.

36(D) Onsite or offsite improvement requirements.

37(E) Project design.

38(F) Permit processing.

39(G) (i) A 30 percent reduction in the schedule of local fees,
40charges, and other exactions on local developers within the local
P8    1agency’s jurisdiction within 12 months or more prior to the
2submission of the application for assistance pursuant to this
3subdivision. The local agency shall provide verification of the
4reduction with supporting documents showing successive annual
5fee schedules to the agency.

6(ii) For the purposes of this subparagraph, “local fees, charges,
7and other exactions” includes, but is not limited to, all of the
8following:

9(I) Planning and zoning fees.

10(II) Environmental documentation fees.

11(III) Building permit fees.

12(IV) Plan check fees.

13(V) School fees.

14(VI) School mitigation fees.

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

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

17(IX) Utility or water connection fees.

18(X) Public safety fees.

19(XI) Capital facilities fees.

20(XII) Affordable housing fees and assessments.

21(XIII) Parks and recreation fees.

22(XIV) Any other fee that may substitute for the requirements
23described in subparagraph (D).

end delete

24(b)  Downpayment assistance to the purchaser of any newly
25constructed residential structure in a development project in the
26aggregate amount of school facility fees paid pursuant to one, all,
27or any combination of subdivision (b) of Section 65995, Section
2865995.5, or Section 65995.7 of the Government Code for the
29eligible residential structure if all of the following conditions are
30met:

31(1)  The assistance is provided to a qualified first-time home
32buyer pursuant to Section 50068.5.

33(2)  The qualified first-time home buyer does not exceed the
34lower or moderate-income requirements in Section 50093.

35(3)  A building permit for an eligible residential structure in the
36project is issued by the local agency on or after January 1, 2002.

37(4)  The eligible residential structure is to be owner occupied
38for at least five years. If a structure is owner occupied for fewer
39than five years, the recipient of the assistance shall repay the School
P9    1Facilities Fee Assistance Fund the amount of the assistance, on a
2prorated basis.

begin insert

3
(c) Downpayment assistance from funds appropriated by the
4act adding this subdivision to provide assistance in the amount of
5the applicable school facility fee on affordable housing shall be
6available to the purchaser of any newly constructed residential
7structure in a development project in an economically distressed
8 area if the following requirements are met:

end insert
begin insert

9
(1) The downpayment assistance is in the amount of school
10facility fees paid pursuant to Section 65995.5 or 65995.7 of the
11Government Code, less the amount that would be required pursuant
12to subdivision (b) of Section 65995 of the Government Code,
13notwithstanding Sections 65995.5 and 65995.7 of the Government
14Code.

end insert
begin insert

15
(2) The downpayment assistance is for a residential structure
16that satisfies the conditions described in paragraphs (1) to (5),
17inclusive, of subdivision (a).

end insert
begin insert

18
(3) The development project is located in a city, county, or city
19and county that reduces developer or impact fees or reduces or
20removes regulatory barriers to housing construction for the
21development project. The agency shall identify and shall objectively
22measure the types of local agency actions or incentives that the
23agency determines appropriately reduce developer or impact fees
24or reduce or remove regulatory barriers to housing construction.
25These actions or incentives may include, but are not limited to,
26modifications to any or all of the following:

end insert
begin insert

27
(A) Local design review requirements.

end insert
begin insert

28
(B) Land use controls.

end insert
begin insert

29
(C) Building codes and enforcement.

end insert
begin insert

30
(D) Onsite or offsite improvement requirements.

end insert
begin insert

31
(E) Project design.

end insert
begin insert

32
(F) Permit processing.

end insert
begin insert

33
(G) (i) A 30 percent reduction in the schedule of local fees,
34charges, and other exactions on local developers within the local
35agency’s jurisdiction within 12 months or more prior to the
36submission of the application for assistance pursuant to this
37subdivision. The local agency shall provide verification of the
38reduction with supporting documents showing successive annual
39fee schedules to the agency.

end insert
begin insert

P10   1
(ii) For the purposes of this subparagraph, “local fees, charges,
2and other exactions” includes, but is not limited to, all of the
3following:

end insert
begin insert

4
(I) Planning and zoning fees.

end insert
begin insert

5
(II) Environmental documentation fees.

end insert
begin insert

6
(III) Building permit fees.

end insert
begin insert

7
(IV) Plan check fees.

end insert
begin insert

8
(V) School fees.

end insert
begin insert

9
(VI) School mitigation fees.

end insert
begin insert

10
(VII) Highway, road, traffic, and transit fees.

end insert
begin insert

11
(VIII) Water, wastewater, sewer, and drainage fees.

end insert
begin insert

12
(IX) Utility or water connection fees.

end insert
begin insert

13
(X) Public safety fees.

end insert
begin insert

14
(XI) Capital facilities fees.

end insert
begin insert

15
(XII) Affordable housing fees and assessments.

end insert
begin insert

16
(XIII) Parks and recreation fees.

end insert
begin insert

17
(XIV) Any other fee that may substitute for the requirements
18described in subparagraph (D).

end insert
19

SEC. 3.  

If the Commission on State Mandates determines that
20this act contains costs mandated by the state, reimbursement to
21local agencies and school districts for those costs shall be made
22pursuant to Part 7 (commencing with Section 17500) of Division
234 of Title 2 of the Government Code.

24

SEC. 4.  

The sum of ____ dollars ($____) is hereby appropriated
25from the General Fund to the California Homebuyer’s
26Downpayment Assistance Program for the purposes set forth in
27Sectionbegin delete 51505end deletebegin insert 51451.5end insert of the Health and Safetybegin delete Code.end deletebegin insert Code that
28satisfy the requirements of subdivision (c) of that section.end insert
After
2948 months of availability, if the California Housing Finance
30Agency determines that these moneys will not be utilized for the
31purposes set forth in Sectionbegin delete 51505end deletebegin insert 51451.5end insert of the Health and
32Safetybegin delete Code,end deletebegin insert Code that satisfy the requirements of subdivision (c)
33of that section,end insert
the moneys shall be available for the general use
34of the California Housing Finance Agency for the purposes of the
35California Homebuyer’s Downpayment Assistance Program, but
36may also continue to be available for the purposes set forth in
37Section 51505 of the Health and Safety Code.



O

    97