BILL ANALYSIS Ó
AB 2388
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2388 (Gipson) - As Amended April 4, 2016
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|Policy |Housing and Community |Vote:|6 - 1 |
|Committee: |Development | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of Housing and Community
Development (HCD), in conjunction with the California Housing
Finance Agency (CalHFA), to report no later than January 1,
2018, on ways to increase affordable homeownership, and include
the results of a survey of local housing authorities as
specified.
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FISCAL EFFECT:
1)HCD anticipates costs in the range of $ 40,000 to 83,000 (GF)
for staffing needs to implement the requirements of the bill.
2)Unknown, but likely significant costs to CalHFA to carry out
the bill's survey requirements. CalHFA anticipates the need
for additional staff or to contract out for this work. As an
independent state agency, CalHFA is not subject to Budget Act
Appropriation and notes there is no funding provided in the
bill.
COMMENTS:
1)Purpose. According to the author, "In a time where there is
much debate about keeping people afloat, we need to also
understand how to lift them up and out of poverty. California
does not have all of this information accessible in one place,
and this bill will enhance our collective understanding of the
opportunities in place for home ownership for low income
people."
This bill seeks to gather information on the current housing
portfolio managed by housing authorities across the state, and
solicit recommendations for programs and strategies that would
increase homeownership for low-income households.
2)Background. According to the Public Policy Institute of
California (PPIC), as of February 2015, roughly 36% of
mortgaged homeowners and approximately 48% of all renters are
spending more than one-third of their household incomes on
housing. California continues to have the second lowest
homeownership rate in the nation and the Los Angeles
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metropolitan area is now a majority renter region. In fact,
five of the eight lowest homeownership rates in the nation are
in California metropolitan areas.
3)Legislative Analyst (LAO) Reports. The LAO has recently
released two reports addressing affordable housing. The most
recent, released on February 9, 2016, is entitled
"Perspectives on Helping Low-Income Californians Afford
Housing." The second, released on March 17, 2015, is entitled
"California's High Housing Costs: Causes and Consequences."
Both reports include information on housing affordability
issues for low-income families.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081