BILL NUMBER: AB 1969 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2016
AMENDED IN ASSEMBLY APRIL 6, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Steinorth
FEBRUARY 16, 2016
An act to amend Section 51451.5 51504
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
California Homebuyer's Downpayment 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. Program, which
requires the California Housing Finance Agency to, among other
things, administer a program that provides downpayment assistance,
including deferred-payment, low-interest, junior mortgage loans to
reduce principal and interest payments, that makes financing
affordable to first-time low- and moderate-income home buyers,
pursuant to specified terms.
This bill would appropriate an unspecified amount from the General
Fund to the California Homebuyer's Downpayment Assistance
Program of 2002. Program for the purposes of the
downpayment assistance program described above. The bill would
condition the application of these funds to the assistance
to purchasers of residential structures in development projects
located in economically distressed areas, as described above,
on an additional requirement that the home for which
assistance is provided be in a 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. 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: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51451.5 of the Health and
Safety Code, as amended by Section 1 of Chapter 553 of the Statutes
of 2003, is amended to read:
51451.5. The Homebuyer Down Payment Assistance Program of 2002 is
hereby established, to provide assistance in the amount of the
applicable school facility fee on affordable housing developments.
The Homebuyer Down Payment Assistance Program of 2002 shall, with
funds provided by the Housing and Emergency Shelter Trust Fund Act of
2002 (Part 11 (commencing with Section 53500)), provide the
following assistance:
(a) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in an
economically distressed area in the amount of school facility fees
paid pursuant to Section 65995.5 or 65995.7 of the Government Code,
less the amount that would be required pursuant to subdivision (b) of
Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code, if all of the following
conditions are met:
(1) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
(2) Five hundred or more residential structures have been
constructed in the county during 2001.
(3) A building permit for an eligible residential structure in
the development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied
for at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(5) The sales price of the eligible residential structure does
not exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years. However, if the five-year average exceeds the
Governmental-Sponsored Enterprises conforming loan limit, the sales
price in that county shall not exceed 100 percent of the median sales
price of residential structures in the county during the average of
the previous five years.
(b) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of subdivision (b) of Section 65995, Section
65995.5, or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time
homebuyer pursuant to Section 50068.5.
(2) The qualified first-time homebuyer does not exceed the lower
or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in
the development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied
for at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(c) Downpayment assistance from funds appropriated by the act
adding this subdivision to provide assistance in the amount of the
applicable school facility fee on affordable housing shall be
available to the purchaser of any newly constructed residential
structure in a development project in an economically distressed area
if the following requirements are met:
(1) The downpayment assistance is in the amount of school facility
fees paid pursuant to Section 65995.5 or 65995.7 of the Government
Code, less the amount that would be required pursuant to subdivision
(b) of Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code.
(2) The downpayment assistance is for a residential structure that
satisfies the conditions described in paragraphs (1) to (5),
inclusive, of subdivision (a).
(3) The development project is 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. The agency shall identify and shall objectively
measure the types of local agency actions or incentives that the
agency determines appropriately reduce developer or impact fees or
reduce or remove regulatory barriers to housing construction. These
actions or incentives may include, but are not limited to,
modifications to any or all of the following:
(A) Local design review requirements.
(B) Land use controls.
(C) Building codes and enforcement.
(D) Onsite or offsite improvement requirements.
(E) Project design.
(F) Permit processing.
(G) (i) A 30 percent reduction in the schedule of local fees,
charges, and other exactions on local developers within the local
agency's jurisdiction within 12 months or more prior to the
submission of the application for assistance pursuant to this
subdivision. The local agency shall provide verification of the
reduction with supporting documents showing successive annual fee
schedules to the agency.
(ii) For the purposes of this subparagraph, "local fees, charges,
and other exactions" includes, but is not limited to, all of the
following:
(I) Planning and zoning fees.
(II) Environmental documentation fees.
(III) Building permit fees.
(IV) Plan check fees.
(V) School fees.
(VI) School mitigation fees.
(VII) Highway, road, traffic, and transit fees.
(VIII) Water, wastewater, sewer, and drainage fees.
(IX) Utility or water connection fees.
(X) Public safety fees.
(XI) Capital facilities fees.
(XII) Affordable housing fees and assessments.
(XIII) Parks and recreation fees.
(XIV) Any other fee that may substitute for the requirements
described in subparagraph (D).
SEC. 2. Section 51451.5 of the Health and
Safety Code, as amended by Section 2 of Chapter 553 of the Statutes
of 2003, is amended to read:
51451.5. The Homebuyer Down Payment Assistance Program of 2002 is
hereby established, to provide assistance in the amount of the
applicable school facility fee on affordable housing. The Homebuyer
Down Payment Assistance Program of 2002 shall, with funds provided by
the Kindergarten-University Public Education Facilities Bond Acts of
2002 and 2004 (Part 68.1 (commencing with Section 100600) of the
Education Code, and Part 68.2 (commencing with Section 100800) of the
Education Code), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in an
economically distressed area in the amount of school facility fees
paid pursuant to Section 65995.5 or 65995.7 of the Government Code,
less the amount that would be required pursuant to subdivision (b) of
Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code, if all of the following
conditions are met:
(1) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
(2) Five hundred or more residential structures have been
constructed in the county during 2001.
(3) A building permit for an eligible residential structure in
the project is issued by the local agency on or after January 1,
2002.
(4) The eligible residential structure is to be owner occupied
for at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(5) The sales price of the eligible residential structure does
not exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years. However, if the five-year average exceeds the
Governmental-Sponsored Enterprises conforming loan limit, the sales
price in that county shall not exceed 100 percent of the median sales
price of residential structures in the county during the average of
the previous five years.
(b) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of subdivision (b) of Section 65995, Section
65995.5, or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home
buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower
or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in
the project is issued by the local agency on or after January 1,
2002.
(4) The eligible residential structure is to be owner occupied
for at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(c) Downpayment assistance from funds appropriated by the act
adding this subdivision to provide assistance in the amount of the
applicable school facility fee on affordable housing shall be
available to the purchaser of any newly constructed residential
structure in a development project in an economically distressed area
if the following requirements are met:
(1) The downpayment assistance is in the amount of school facility
fees paid pursuant to Section 65995.5 or 65995.7 of the Government
Code, less the amount that would be required pursuant to subdivision
(b) of Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code.
(2) The downpayment assistance is for a residential structure that
satisfies the conditions described in paragraphs (1) to (5),
inclusive, of subdivision (a).
(3) The development project is 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. The agency shall identify and shall objectively
measure the types of local agency actions or incentives that the
agency determines appropriately reduce developer or impact fees or
reduce or remove regulatory barriers to housing construction. These
actions or incentives may include, but are not limited to,
modifications to any or all of the following:
(A) Local design review requirements.
(B) Land use controls.
(C) Building codes and enforcement.
(D) Onsite or offsite improvement requirements.
(E) Project design.
(F) Permit processing.
(G) (i) A 30 percent reduction in the schedule of local fees,
charges, and other exactions on local developers within the local
agency's jurisdiction within 12 months or more prior to the
submission of the application for assistance pursuant to this
subdivision. The local agency shall provide verification of the
reduction with supporting documents showing successive annual fee
schedules to the agency.
(ii) For the purposes of this subparagraph, "local fees, charges,
and other exactions" includes, but is not limited to, all of the
following:
(I) Planning and zoning fees.
(II) Environmental documentation fees.
(III) Building permit fees.
(IV) Plan check fees.
(V) School fees.
(VI) School mitigation fees.
(VII) Highway, road, traffic, and transit fees.
(VIII) Water, wastewater, sewer, and drainage fees.
(IX) Utility or water connection fees.
(X) Public safety fees.
(XI) Capital facilities fees.
(XII) Affordable housing fees and assessments.
(XIII) Parks and recreation fees.
(XIV) Any other fee that may substitute for the requirements
described in subparagraph (D).
SECTION 1. Section 51504 of the Health
and Safety Code is amended to read:
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) (A) Except as provided in subparagraphs (B) and (C), the
amount of the downpayment assistance shall be due and payable at the
end of the term or upon sale of or refinancing of the home. The
borrower may refinance the mortgages on the home provided that the
principal and accrued interest on the junior mortgage loan securing
the downpayment assistance are repaid in full. All repayments shall
be made to the agency to be reallocated for the purposes of this
chapter.
(B) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable.
(C) The amount of the downpayment assistance shall not be due and
payable upon sale of the home if the first mortgage loan is insured
by the Federal Housing Administration (FHA) or if the first mortgage
loan is, or has been, transferred to the FHA, or if the requirement
is otherwise contrary to regulations of the United States Department
of Housing and Urban Development governing FHA insured first mortgage
loans.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For purposes of this section, "transit-oriented development
specific plan area" means a specific plan that meets the criteria set
forth in Section 65451 of the Government Code, is centered around a
rail or light-rail station, ferry terminal, bus hub, or bus transfer
station, and is intended to achieve a higher density use of land that
facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of housing developments, as
defined in Section 50073.5, and for-sale residential structures
through short-term loans pursuant to its authority pursuant to
Section 51100. However, the agency shall make downpayment assistance
provided pursuant to paragraph (1), subparagraphs (A) and (B) of
paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision
(a) the priority use for these funds. A loan made pursuant to this
section is not subject to Article 4 (commencing with Section 51175)
of Chapter 5.
(c) (1) In addition to the downpayment assistance program
authorized by subdivision (a), the agency shall provide downpayment
assistance from the funds appropriated by the act adding this
subdivision to first-time home buyers pursuant to paragraphs (1),
(2), (3), (4), and (6) of subdivision (a) for homes in development
projects that are located in cities, counties, or cities and counties
that reduce developer or impact fees or reduce or remove regulatory
barriers to housing construction for the development projects. The
agency shall identify and shall objectively measure the types of
local agency actions or incentives that the agency determines
appropriately reduce developer or impact fees or reduce or remove
regulatory barriers to housing construction. These actions or
incentives may include, but are not limited to, modifications to any
or all of the following:
(A) Local design review requirements.
(B) Land use controls.
(C) Building codes and enforcement.
(D) Onsite or offsite improvement requirements.
(E) Project design.
(F) Permit processing.
(G) (i) A 30-percent reduction in the schedule of local fees,
charges, and other exactions on local developers within the local
agency's jurisdiction within 12 months or more prior to the
submission of the application for assistance pursuant to this
subdivision. The local agency shall provide verification of the
reduction with supporting documents showing successive annual fee
schedules to the agency.
(ii) For the purposes of this subparagraph, "local fees, charges,
and other exactions" includes, but is not limited to, all of the
following:
(I) Planning and zoning fees.
(II) Environmental documentation fees.
(III) Building permit fees.
(IV) Plan check fees.
(V) School fees.
(VI) School mitigation fees.
(VII) Highway, road, traffic, and transit fees.
(VIII) Water, wastewater, sewer, and drainage fees.
(IX) Utility or water connection fees.
(X) Public safety fees.
(XI) Capital facilities fees.
(XII) Affordable housing fees and assessments.
(XIII) Parks and recreation fees.
(XIV) Any other fee that may substitute for the requirements
described in subparagraph (D).
(2) Paragraph (1) applies only to the use of funds appropriated by
the act adding this subdivision and shall not be construed to apply
to the use of any other funds.
SEC. 3. SEC. 2. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.
SEC. 4. SEC. 3. The sum of ____
dollars ($____) is hereby appropriated from the General Fund to the
California Homebuyer's Downpayment Assistance Program for the
purposes set forth in Section 51451.5 51504
of the Health and Safety Code that satisfy the requirements of
subdivision (c) of that section. After 48 months of availability, if
the California Housing Finance Agency determines that these moneys
will not be utilized for the purposes set forth in Section
51451.5 51504 of the Health and Safety Code that
satisfy the requirements of subdivision (c) of that section, the
moneys shall be available for the general use of the California
Housing Finance Agency for the purposes of the California Homebuyer's
Downpayment Assistance Program, but may also continue to be
available for the purposes set forth in Section 51505
51504 of the Health and Safety Code.