AB 2388, as amended, Gipson. Local government: housing: ownership.
begin insertExisting law, the Housing Authorities Law, declares that providing safe and sanitary dwelling accommodations for persons of low income is a public use and purpose for which public money may be spent and private property acquired, and is a governmental function of state concern. Existing law establishes procedures by which a local government may create or authorize a local housing authority to operate within it for this purpose. Existing law authorizes those housing authorities to convey surplus lands, as specified, for the development of homes for ownership by persons and families of low or moderate income. Existing law requires every local housing authority within a county or city to file on the first day of October of each year with the Department of Housing and Community Development a complete report of its activities during the previous fiscal year, with specified recommendations.
end insertbegin insertThis bill would require the department, in conjunction with the California Housing Finance Agency to report, no later than January 1, 2018, on ways to increase homeownership for extremely low, very low, and low-income households. The bill would require the department and the agency to carry out and include in the report a survey of housing authorities in California, as specified.
end insertExisting law declares the intent of the Legislature to preserve, upgrade, and expand the supply of housing to persons and families of low or moderate income, through the sale of specified surplus residential property owned by public agencies. Existing law establishes priorities and procedures that any state agency disposing of that surplus residential property is required to follow.
end deleteThis bill, on or before January 1, 2018, would require every local government agency, as defined, to adopt a mortgage program that, among other things, allocates 10% of all single-family residences that the local government agency owns and leases to become eligible for purchase by tenants presently occupying the single-family residence. The bill would require each local government agency to adopt regulations for the administration of the program that include, among other things, eligibility requirements that limit the program to use by persons with extremely low income households, very low income households, lower income households, or persons and families of low or moderate income. By imposing new duties on local government agencies, this bill would impose a state-mandated local program.
end deleteThe 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 deleteThis 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 deleteVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
The people of the State of California do enact as follows:
begin insertArticle 7 (commencing with Section 34390) is
2added to Chapter 1 of Part 2 of Division 24 of the end insertbegin insertHealth and
3Safety Codeend insertbegin insert, to read:end insert
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(a) For purposes of this section:
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(1) “Department” shall refer to “The Department of Housing
7and Community Development.”
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(2) “Agency” shall refer to “California Housing Finance
9Agency.”
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(b) The department, in conjunction with the agency, shall report
11to the Legislature, no later than January 1, 2018, on ways to
12increase homeownership for extremely low, very low, and
13low-income households. In preparing this report, the department
14and the agency shall develop a survey to gather information,
15including, but not limited to, the following:
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(1) The number of
housing authorities in California, and the
17number of single-family properties owned by housing authorities
18that are available for lease to extremely low, very low, and
19low-income families.
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(2) The number of single-family homes owned by housing
21authorities in the last five years that were converted to ownership,
22and the names and descriptions of the programs through which
23the conversions were made.
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(3) The number of single-family homes that were purchased by
25housing authorities using the federal Neighborhood Stabilization
26Program (NSP) funding.
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(4) The number of housing authorities that have a Section 32
28Homeownership Plan through the United States Department of
29Housing and Urban Development.
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(5) The number of housing authorities that administer the
federal
31Family Self-Sufficiency Program.
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(c) The department and the agency shall work with any
33applicable association that represents housing authorities in
34California, in order to obtain a successful response rate to the
35survey described in subdivision (b) in order to capture the most
36accurate information.
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(d) The report required by subdivision (b) shall also identify
38the following:
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(1) Barriers or impediments to transitioning into homeownership
40for extremely low, very low, and low-income people.
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(2) Using several case studies of local housing authorities with
2successful homeownership programs, potential best practices for
3other housing authorities to follow.
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(3) Strategies to target
extremely low, very low, and low-income
5people for homeownership programs.
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(4) Funding programs for homeownership and other
7opportunities to help transition low and very-low income people
8to homeownership.
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(e) (1) The report to be submitted pursuant to subdivision (b)
10shall be submitted in compliance with Section 9795 of the
11Government Code.
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(2) Pursuant to Section 10231.5 of the Government Code, this
13article is repealed on January 1, 2022.
Article 13 (commencing with Section 50295) is
15added to Chapter 1 of Part 1 of Division 1 of Title 5 of the 16Government Code, to read:
17
(a) As used in this section the following terms have
21the following meanings:
22(1) “Local government agency” means a city or county,
23including a charter city, charter county, or charter city and county,
24or any agency, authority, or department thereof.
25(2) “Purchaser” means the tenant of a single family residence
26owned by a local government agency that utilizes the program to
27purchase a single-family residence.
28(3) “Single-family residence” means a real property
29improvement used, or intended to be used, as a dwelling unit for
30one family.
31(b) On or before January 1, 2018, each local government agency
32that owns and leases any single-family residence shall create a
33mortgage program that meets the following requirements:
34(1) Allocates 10 percent of all single family residences that the
35local government agency owns and leases to become eligible for
36purchase by tenants of the single family residence.
37(2) Provides a mortgage to eligible tenants of single family
38residences that allows those tenants to purchase the single-family
39residence they are presently leasing.
P5 1(3) Offers a required informational session for interested tenants
2to attend prior to purchase of a single-family residence through
3the program. The session shall educate potential purchasers on
4their legal rights and obligations in purchasing a property through
5the program.
6(4) Requires a valuation by the county assessor of any property
7being purchased through the program.
8(5) Offers a wait list for persons interested in purchasing a
9property through the program if the local government agency has
10already met the 10-percent threshold with properties in the process
11of being purchased.
12(c) The local government agency shall adopt regulations for the
13administration of the mortgage program that shall include, but are
14not limited to, the following:
15(1) Mortgage eligibility requirements that are limited to tenants
16that qualify as extremely low income households, as defined by
17Section 50106 of the Health and Safety Code, very low income
18households, as defined by Section 50105 of the Health and Safety
19Code, lower income households, as defined by Section 50079.5
20of the Health and Safety Code, or persons and families of low or
21moderate income.
22(2) (A) The maximum length of the mortgage, which shall not
23exceed 30 years. Except as provided in subparagraph (B), the
24monthly payment paid by a purchaser, including principal, interest,
25insurance, property taxes and other property-related assessments
26and taxes, and any required mortgage insurance, amortized over
27the term of the mortgage, shall not exceed the amount the purchaser
28previously paid as a tenant for occupancy in the property.
29(B) A local government agency may reduce the payment
30requirements for purchasers with extremely low income, as
31necessary.
32(3) The local government agency may decline to offer use of
33the program to a prospective purchaser if it determines that the
34purchaser would not be able to consistently make on-time
35payments. A prospective purchaser shall be permitted to reapply
36at a later date if the local government agency declines to offer the
37prospective purchaser use of the program.
If the Commission on State Mandates determines that
39this act contains costs mandated by the state, reimbursement to
40local agencies and school districts for those costs shall be made
P6 1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.
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CORRECTIONS:
Text--Pages 4, 5, and 6.
O
Corrected 4-5-16—See last page. 98