BILL NUMBER: AB 2441 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Thurmond
FEBRUARY 19, 2016
An act to add Chapter 17 (commencing with Section 50897) to Part 2
of Division 31 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2441, as amended, Thurmond. Housing: Workforce Housing
in High-Cost Areas 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 Housing in High-Cost
Areas Pilot Program, pursuant to which the department
would award grant funding to eligible cities or cities and counties
located in a high-cost counties, as specified, for
the predevelopment costs, acquisition, construction, or
rehabilitation of rental housing projects or units within rental
housing projects, the affordability of which shall be
restricted for a period of at least 55 years. 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. The bill would require
the department, on or before December 31st 31
of each year in which grant 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. The bill would require that
bill, upon the depletion of appropriated funds, would
require the department shall to
submit a report to the Assembly and Senate committees on
appropriations evaluating the need for housing of persons and
families of low and or 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:
SECTION 1. Chapter 17 (commencing with Section 50897) is added to
Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER 17. WORKFORCE HOUSING IN HIGH-COST AREAS
PILOT PROGRAM
50897. It is the intent of the Legislature in enacting this
chapter to ensure that funds allocated to eligible cities
and cities and counties and administered by the Department
of Housing and Community Development be of maximum benefit in
meeting the needs of persons and families of low or moderate income.
It is the intent of the Legislature to support Californians residing
in high-cost areas counties where
housing prices have risen to levels that are unaffordable
for those individuals whose income is above 60 percent of area median
income. unaffordable. The Legislature intends
that these funds be provided to eligible cities and cities and
counties in high-cost areas counties
that are experiencing a rise in home prices and rental prices
so that they may assist individuals who are not able to live where
they work.
50897.1. As used in this chapter:
(a) "Eligible city or city and county" means a city that resides
within a county that is defined by the United States Department of
Housing and Urban Development as a "high-cost" county.
(b) "Notice of funding availability" or "NOFA" means a public
announcement that an estimated amount of funding will be awarded by a
department program according to specified criteria and schedules.
(c) "Persons and families of low or moderate income" means persons
and families whose income exceeds 60 percent of the area
median income, adjusted for family size, but no higher than 120
percent of area median income. incomes do not exceed
120 percent of the area median income, adjusted for family size.
(d) "Department" means the Department of Housing and Community
Development.
50897.2. (a) There is hereby established the Workforce Housing in
High-Cost Areas Pilot Program.
(b) Subject to the availability of funding, the department shall
award grant funding pursuant to the issuance of a notice of funding
availability (NOFA) to eligible cities or cities and counties that
apply for financing. The department shall determine the appropriate
amount of the grant for the purposes of accomplishing the intent of
the Legislature.
(c) An eligible city or city and county shall do all of the
following:
(1) Use the grant funds awarded to it for the predevelopment
costs, acquisition, construction, or rehabilitation of rental housing
projects or units within rental housing projects.
projects that serve persons and families of low or moderate
income. The affordability of all units assisted shall be
restricted for a period of at least 55 years.
(2) Hold a public hearing to discuss and describe the project that
will be financed pursuant to this chapter. The meeting shall be held
pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with
Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code).
(3) File periodic reports with the department regarding the use of
grant funds provided pursuant to this chapter.
(d) (1) An eligible city or city and county may use the grant
funds to provide downpayment assistance to persons and families of
low or moderate income.
(2) The department shall set limits on the amount of downpayment
assistance that may be provided pursuant to paragraph (1) in order to
maximize the use of the grant funds.
(e) (1) All grant funds awarded pursuant to this chapter shall be
matched on a dollar-for-dollar basis.
(2) Paragraph (1) shall not apply to an eligible city or city and
county that is suffering a hardship and is unable to generate the
matching funds.
(d)
(f) On or before December 31 of each year in which
funds are awarded pursuant to this chapter, the department shall
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.
(e)
(g) The program shall operate until all appropriated
funds have been awarded.
(f)
(h) (1) Upon the depletion of appropriated funds and
the termination of the pilot program pursuant to subdivision
(e), (g), the department shall submit a report
to the Assembly and Senate committees on appropriations. The report
shall evaluate the need for housing of persons and families of low
and or moderate income in cities or
cities and counties that received grant funds pursuant to
this chapter. The report shall also include, but not be limited to, a
recommendation on whether the pilot program should continue.
(2) The requirement for submitting a report imposed under this
subdivision is inoperative four years after the report becomes due.
(g)
(i) The reports to be submitted pursuant to
subdivisions (d) (f) and (f)
(h) shall be submitted in compliance with
Section 9795 of the Government Code.