BILL NUMBER: AB 2441 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 31, 2016
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 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 the department department,
subject to the appropriation of funds for that purpose,
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:
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 HOUSINGPILOT 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
counties where housing prices have risen to levels that are
unaffordable. The Legislature intends that these funds be provided to
eligible cities and cities and counties in high-cost 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 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,
appropriation of funds for purposes of this chapter, 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 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.
(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.
(g) The program shall operate until all appropriated funds have
been awarded.
(h) (1) Upon the depletion of appropriated funds and the
termination of the pilot program pursuant to subdivision (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 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.
(i) The reports to be submitted pursuant to subdivisions (f) and
(h) shall be submitted in compliance with Section 9795 of the
Government Code.