AB 2441,
as amended, Thurmond. Housing: Workforce Housingbegin delete in High-Cost Areasend delete Pilot Program.
Existing law, among several affordable housing programs, establishes the Local Housing Trust Fund Matching Grant Program, administered by the Department of Housing and Community Development, for the purpose of supporting local housing trust funds dedicated to the creation or preservation of affordable housing. Existing law authorizes the department to make matching grants available to cities and counties, or a city and county, and existing charitable nonprofit organizations that have created, funded, and operated housing trust funds.
This bill would create the Workforce Housingbegin delete in High-Cost Areasend delete Pilot Program, pursuant to which the department would award grant funding to eligible cities or cities and counties located inbegin delete aend delete
high-cost counties, as specified, for the predevelopment costs, acquisition, construction, or rehabilitation of rental housing projects or units within rental housingbegin delete projects, the affordability of which shall be restricted for a period of at least 55 years.end deletebegin insert projects that serve, and for providing downpayment assistance to, persons and families of low or moderate income. The bill would require all grant funds to be matched on a dollar-for-dollar basis, unless the eligible city or city and county is suffering a hardship and is unable to generate the matching funds. end insert The bill would require the department, on or before Decemberbegin delete 31stend deletebegin insert 31end insert
of each year in whichbegin insert grantend insert funds are awarded, to provide a report to the Legislature regarding the number of grants awarded, a description of the projects funded, the number of units funded, and the amount of matching funds received. The bill would require the pilot program to operate until all appropriated funds have been awarded. Thebegin delete bill would require thatend deletebegin insert bill,end insert upon the depletion of appropriated funds,begin insert would requireend insert the departmentbegin delete shallend deletebegin insert
toend insert
submit a report to the Assembly and Senate committees on appropriations evaluating the need for housing of persons and families of lowbegin delete andend deletebegin insert
orend insert moderate income in cities or cities and counties that received grant funds and a recommendation on whether the pilot program should continue.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 17 (commencing with Section 50897)
2is added to Part 2 of Division 31 of the Health and Safety Code,
3to read:
4
It is the intent of the Legislature in enacting this chapter
9to ensure that funds allocated tobegin insert eligibleend insert citiesbegin insert and cities and
10countiesend insert and administered by the Department of Housing and
11Community Development be of maximum benefit in meeting the
12needs of persons and families of low or moderate income. It is the
13intent of the Legislature to support Californians residing in
14high-costbegin delete areasend deletebegin insert countiesend insert
where housing prices have risen to levels
15that arebegin delete unaffordable for those individuals whose income is above begin insert unaffordable.end insert The Legislature
1660 percent of area median income.end delete
17intends that these funds be provided to eligible citiesbegin insert and cities
18and countiesend insert in high-costbegin delete areasend deletebegin insert countiesend insert that are experiencing a
19rise in home prices and rental prices so that they may assist
20individuals who are not able to live where they
work.
As used in this chapter:
2(a) “Eligible city or city and county” means a city that resides
3within a county that is defined by the United States Department
4of Housing and Urban Development as a “high-cost” county.
5(b) “Notice of funding availability” or “NOFA” means a public
6announcement that an estimated amount of funding will be awarded
7by a department program according to specified criteria and
8schedules.
9(c) “Persons and families of low or moderate income” means
10persons and families whosebegin delete income exceeds 60 percent of the area
11median income, adjusted for family size,
but no higher than 120
12percent of area median income.end delete
13of the area median income, adjusted for family size.end insert
14(d) “Department” means the Department of Housing and
15Community Development.
(a) There is hereby established the Workforce
17Housing in High-Cost Areas Pilot Program.
18(b) Subject to the availability of funding, the department shall
19award grant funding pursuant to the issuance of a notice of funding
20availability (NOFA) to eligible cities or cities and counties that
21apply for financing. The department shall determine the appropriate
22amount of the grant for the purposes of accomplishing the intent
23of the Legislature.
24(c) An eligible city or city and county shall do all of the
25following:
26(1) Use the grant funds awarded to
it for the predevelopment
27costs, acquisition, construction, or rehabilitation of rental housing
28projects or units within rental housingbegin delete projects.end deletebegin insert projects that serve
29persons and families of low or moderate income.end insert The affordability
30of all units assisted shall be restricted for a period of at least 55
31years.
32(2) Hold a public hearing to discuss and describe the project
33that will be financed pursuant to this chapter. The meeting shall
34be held pursuant to the Ralph M. Brown Act (Chapter 9
35(commencing with Section 54950) of Part 1 of Division 2 of Title
365 of the Government Code).
37(3) File periodic reports with the
department regarding the use
38ofbegin insert grantend insert funds provided pursuant to this chapter.
P4 1
(d) (1) An eligible city or city and county may use the grant
2funds to provide downpayment assistance to persons and families
3of low or moderate income.
4
(2) The department shall set limits on the amount of
5downpayment assistance that may be provided pursuant to
6paragraph (1) in order to maximize the use of the grant funds.
7
(e) (1) All grant funds awarded pursuant to this chapter shall
8be matched on a dollar-for-dollar basis.
9
(2) Paragraph (1) shall not apply to an eligible city or city and
10county that is suffering a hardship and is unable to generate the
11matching funds.
12(d)
end delete
13begin insert(f)end insert On or before December 31 of each year in which funds are
14awarded pursuant to this chapter, the department shall provide a
15report to the Legislature regarding the number of grants awarded,
16a description of the projects funded, the number of units funded,
17and the amount of matching funds received.
18(e)
end delete
19begin insert(g)end insert The program shall operate until all appropriated funds have
20been awarded.
21 (f)
end delete
22begin insert
(h)end insert (1) Upon the depletion of appropriated funds and the
23termination of the pilot program pursuant to subdivisionbegin delete (e),end deletebegin insert (g),end insert
24 the department shall submit a report to the Assembly and Senate
25committees on appropriations. The report shall evaluate the need
26for housing of persons and families of lowbegin delete andend deletebegin insert orend insert moderate income
27in cities or cities and counties that receivedbegin insert grantend insert funds pursuant
28to this chapter.
The report shall also include, but not be limited to,
29a recommendation on whether the pilot program should continue.
30(2) The requirement for submitting a report imposed under this
31subdivision is inoperative four years after the report becomes due.
32(g)
end delete
33begin insert(i)end insert The reports to be submitted pursuant to subdivisionsbegin delete (d)end deletebegin insert (f)end insert
34 andbegin delete (f)end deletebegin insert
(h)end insert shall be submitted in compliance with Section 9795 of
35the Government Code.
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