AB 2200, as amended, Thurmond. School Employee Housing Assistance Grant Program.
Existing law requires the California Housing Finance Agency to administer various housing programs.
This bill would require the California Housing Finance Agency to administer abegin delete grant program, as specified,end deletebegin insert programend insert to providebegin delete developmentend delete financingbegin delete assistanceend deletebegin insert assistance, as specified,end insert to a qualified school district, as defined,begin insert
and to a qualified developer, as defined,end insert for the creation of affordable rental housing for school employees, including teachers.begin insert The bill would require the State Department of Education to certify that a school district seeking a grant meets the definition of qualified school district.end insert The bill would transfer $100,000,000 from the General Fund to the School Employee Housing Assistancebegin delete Grantend delete Fund, which would be created by this bill, and would continuously appropriate those moneys to the agency for the purposes described abovebegin insert and to reimburse the agency and the State Department of Education for costs incurred in the administration of the programend insert. The bill would requirebegin delete a qualified
school district to apply for grants, as provided, and to submit specified information to the agency.end deletebegin insert qualified school districts and qualified developers to apply for the financing assistance, as provided.end insert
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 12 (commencing with Section 51520)
2is added to Part 3 of Division 31 of the Health and Safety Code,
3to read:
4
For purposes of this chapter,begin delete a “qualifiedend deletebegin insert all of the
9following shall apply:end insert
10
(a) “Affordable rental housing” means housing that serves
11persons and families of low or moderate income as defined by
12Section 50093 of the Health and Safety Code.
13
(b) “Qualified developer” means a developer that has partnered
14with a qualified school district to create affordable
rental housing
15for school district employees, including teachers.
16begin insert (c)end insertbegin insert end insertbegin insert“Qualifiedend insert school district” means a school district that
17satisfies all of the following:
18(a)
end delete
19begin insert(1)end insert Has acquired and designated surplus land from any of the
20following:
21(1)
end delete22begin insert(A)end insert A school district.
23(2)
end delete24begin insert(B)end insert A special district.
25(3)
end delete26begin insert(C)end insert A city.
27(b)
end delete28begin insert(2)end insert Has a high average cost for the recruitment of teachers.
29(c)
end delete30begin insert(3)end insert Has a low retention rate.
31(d)
end delete
P3 1begin insert(4)end insert Has 60 percent of its students
participating in the National
2School Lunch Program.
(a) The agency shall administer abegin delete grantend delete program to
4providebegin delete developmentend delete financing assistancebegin delete to qualified school for the creation of affordable rental housing for school
5districtsend delete
6district employees, including teachers.begin delete Theend deletebegin insert The financing
7assistance shall be in both of the following forms:end insert
8
(1) Predevelopment grants to qualified school districts.
9
(2) Loans to qualified developers.
10begin insert (b)end insertbegin insert end insertbegin insertTheend insert agency shall do all of the following:
11(1) Be responsible for overseeing thebegin delete grantend delete program.
12(2) Awardbegin insert predevelopmentend insert grants to qualified school districts.
13(3) Determine the predevelopment grant amount and the
14development grant amount for each qualified school district
15pursuant to Section 51523.
16
(3) Make loans to qualified developers.
17(4) Publish deadlines and written procedures forbegin delete a
qualified
18school districtend delete
19 to apply forbegin delete grants.end deletebegin insert financing assistance.end insert
20(5) Provide technical assistance to a qualified school district
21that is not eligible to receive a development grant in applying for
22additional public funds.
23(b)
end delete
24begin insert(c)end insert A qualified school district seeking a grant shall do both of
25the following:
26(1) Apply for abegin insert predevelopmentend insert grant in the form and manner
27
prescribed by the agency.
28(2) Submitbegin delete both of the following to the agency:end deletebegin insert the certification
29provided by the State Department of Education pursuant to Section
3051521.5 to the agency.end insert
31(A) An eligible basis certification pursuant to Section 10322 of
32Division 17 of Title 4 of the California Code of Regulations, as it
33read on January 1, 2017.
34(B) An itemized list of funds from state and federal programs
35and
private funds used to cover projects costs.
36
(d) A qualified developer seeking a loan shall apply for a loan
37in the form and manner prescribed by the agency.
(a) A school district seeking a predevelopment grant
39shall apply to the State Department of Education, in the form and
P4 1manner prescribed by the department, for certification as a
2qualified school district.
3
(b) The State Department of Education shall certify that a school
4district seeking a predevelopment grant meets the definition of
5qualified school district as defined by Section 51520 and provide
6the qualified school district with the certification.
(a) There is hereby transferred from the General Fund
8to the School Employee Housing Assistancebegin delete Grantend delete Fund, which
9is hereby created in the State Treasury, the sum of one hundred
10million dollars ($100,000,000).
11(b) begin delete(1)end deletebegin delete end deleteNotwithstanding Section 13340 of the Government
12Code, all moneys in the fund shall be continuously appropriated
13to the agency forbegin delete the purposes of this chapter.end deletebegin insert
all of the following
14purposes:end insert
15
(1) To reimburse the agency for any administrative costs
16incurred in the administration of this chapter. This amount shall
17not exceed 5 percent of the amount appropriated to the agency
18pursuant to this section.
19
(2) To reimburse the State Department of Education for the
20costs of certifying qualified school districts pursuant to Section
2151521.5. This amount shall not exceed ____ percent of the amount
22appropriated to the agency pursuant to this section.
23
(3) For making predevelopment grants to qualified school
24districts. This amount shall not exceed 5 percent of the amount
25appropriated to the agency pursuant to this section.
26
(4) For making loans to qualified developers.
27(2) The agency shall use 5 percent of the moneys appropriated
28to it pursuant to this section for predevelopment grants.
(a) The agency shall determine both of the following
30for each qualified school district to be awarded a grant:
31(1) (A) The predevelopment grant amount, which shall be equal
32to the predevelopment costs of the project excluding any costs
33related to the acquisition of the land.
34(B) In order to be eligible to receive a predevelopment grant,
35the qualified school district must show a measurable degree of
36incapacity to fund the predevelopment project costs.
37(2) The development grant amount, which shall be the difference
38between the eligible basis as specified in the eligible basis
39certification,
excluding any costs related to the acquisition of the
40land and any predevelopment project costs, and the total amount
P5 1of any public and private funds received for the development of
2the project.
3(b) In order to be eligible to receive a development grant, the
4qualified school district must show that the project is not eligible
5for additional public funds as described in its eligible basis
6certification and that the project is subject to a project labor
7agreement and prevailing wage requirements.
(a) The agency shall make loans to qualified developers
9using a project selection process established by the agency that
10meets all of the following requirements:
11
(1) To the extent feasible, ensures a reasonable geographic
12distribution of funds.
13
(2) Requires applications for projects to meet minimum
14threshold requirements, including, but not limited to, all of the
15following:
16
(A) The proposed project is located within reasonable proximity
17to public transportation and services.
18
(B) Development costs for the proposed project are reasonable
19compared to
costs of comparable projects in the area.
20
(C) The proposed project is be feasible.
21
(3) The proposed project leverages other funds where they are
22available.
23
(b) (1) Loans made pursuant to this section shall be for a term
24of not less than 55 years.
25
(2) Principal and accumulated interest is due and payable upon
26completion of the term of the loan. The loan shall bear simple
27interest at the rate of 3 percent per annum on the unpaid principal
28balance.
29
(3) Any moneys that the agency receives in repayment of the
30loans, including interest, shall be deposited in the School Employee
31Housing Assistance Fund. These moneys shall be used for the
32purposes of this chapter.
33
(c) Each project shall be eligible for a loan not to exceed ten
34million dollars ($10,000,000).
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