AB 2441, as amended, Thurmond. Housing: Workforce Housing 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 Pilot Program, pursuant to which thebegin delete departmentend deletebegin insert department, subject to the appropriation of funds for
that purpose,end insert would award grant funding to eligible cities or cities and counties located in high-cost counties, as specified, for the predevelopment costs, acquisition, construction, or rehabilitation of rental housing projects or units within rental housing 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 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, upon the depletion
of appropriated funds, would require the department to submit a report to the Assembly and Senate committees on appropriations evaluating the need for housing of persons and families of low 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:
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
8to ensure that funds allocated to eligible cities and cities and
9counties and administered by the Department of Housing and
10Community Development be of maximum benefit in meeting the
11needs of persons and families of low or moderate income. It is the
12intent of the Legislature to support Californians residing in
13high-cost counties where housing prices have risen to levels that
14are unaffordable. The Legislature intends that these funds be
15provided to eligible cities and cities and counties in high-cost
16counties that are experiencing a rise in home prices and rental
17prices so that they may assist individuals who are not able to live
18where they
work.
As used in this chapter:
P3 1(a) “Eligible city or city and county” means a city that resides
2within a county that is defined by the United States Department
3of Housing and Urban Development as a “high-cost” county.
4(b) “Notice of funding availability” or “NOFA” means a public
5announcement that an estimated amount of funding will be awarded
6by a department program according to specified criteria and
7schedules.
8(c) “Persons and families of low or moderate income” means
9persons and families whose incomes do not exceed 120 percent
10of the area median income,
adjusted for family size.
11(d) “Department” means the Department of Housing and
12Community Development.
(a) There is hereby established the Workforce
14Housingbegin delete in High-Cost Areasend delete Pilot Program.
15(b) Subject to thebegin delete availability of funding,end deletebegin insert appropriation of funds
16for purposes of this chapter,end insert the department shall award grant
17funding pursuant to the issuance of a notice of funding availability
18(NOFA) to eligible cities or cities and counties that apply for
19financing. The department shall determine the appropriate amount
20of the grant for
the purposes of accomplishing the intent of the
21Legislature.
22(c) An eligible city or city and county shall do all of the
23following:
24(1) Use the grant funds awarded to it for the predevelopment
25costs, acquisition, construction, or rehabilitation of rental housing
26projects or units within rental housing projects that serve persons
27and families of low or moderate income. The affordability of all
28units assisted shall be restricted for a period of at least 55 years.
29(2) Hold a public hearing to discuss and describe the project
30that will be financed pursuant to this chapter. The meeting shall
31be held pursuant to the Ralph M. Brown Act (Chapter 9
32(commencing with Section 54950) of Part 1 of Division 2 of Title
335
of the Government Code).
34(3) File periodic reports with the department regarding the use
35of grant funds provided pursuant to this chapter.
36(d) (1) An eligible city or city and county may use the grant
37funds to provide downpayment assistance to persons and families
38of low or moderate income.
P4 1(2) The department shall set limits on the amount of
2downpayment assistance that may be provided pursuant to
3paragraph (1) in order to maximize the use of the grant funds.
4(e) (1) All grant funds awarded pursuant to this chapter shall
5be matched on a dollar-for-dollar basis.
6(2) Paragraph (1) shall not apply to an eligible city or city and
7county that is suffering a hardship and is unable to generate the
8matching funds.
9(f) On or before December 31 of each year in which funds are
10awarded pursuant to this chapter, the department shall provide a
11report to the Legislature regarding the number of grants awarded,
12a description of the projects funded, the number of units funded,
13and the amount of matching funds received.
14(g) The program shall operate until all appropriated funds have
15been awarded.
16
(h) (1) Upon the depletion of appropriated funds and the
17termination of the pilot program pursuant to subdivision (g), the
18department shall submit a report to the Assembly and Senate
19committees on appropriations. The report shall evaluate the need
20for housing of persons and families of low or moderate income in
21cities or cities and counties that received grant funds pursuant to
22this chapter. The report shall also include, but not be limited to, a
23recommendation on whether the pilot program should continue.
24(2) The requirement for submitting a report imposed under this
25subdivision is inoperative four years after the report becomes due.
26(i) The reports to be submitted pursuant to subdivisions (f) and
27(h) shall be submitted in
compliance with Section 9795 of the
28Government Code.
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