Amended in Senate June 20, 2016

Amended in Assembly May 31, 2016

Amended in Assembly April 26, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2441

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, subject to the appropriation of funds for that purpose, would award grant funding to eligible begin delete cities or cities and counties located in high-cost counties, as specified, end delete begin insert recipients, as defined, end insert 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 begin delete city or city and county end delete begin insert recipient end insert 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 begin delete cities or cities and counties end delete begin insert areas end insert 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 begin delete cities and cities and
counties end delete begin insert recipients end insert 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
begin delete high-cost counties end delete begin insert areas end insert where housing prices have risen to levels
that are unaffordable. The Legislature intends that these funds be
provided to eligible begin delete cities and cities and counties in high-cost
counties end delete begin insert recipients in areas end insert 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 begin delete city or city and county” end delete begin insert recipient end insert begin insert ” end insert means begin delete a end delete begin insert any of
the following: end insert

begin insert (1) end insert begin insert   end insert begin insert A end insert city that resides within a county that is defined by the
United States Department of Housing and Urban Development as
a “high-cost” county.

begin insert

(2) A city that does not reside within a county that is defined by
the United States Department of Housing and Urban Development
as a “high-cost” county but has been determined by the department
to be experiencing a rise in home prices and rental prices such
that persons and families of low or moderate income are unable
to live where they work.

end insert begin insert

(3) A charitable nonprofit organization organized under Section
501(c)(3) of the Internal Revenue Code that has created and is
operating or will operate a housing trust fund and that applies
jointly with a city described in this subdivision.

end insert

(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 Pilot Program.

(b) Subject to the 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
begin delete cities or cities and counties end delete begin insert recipients end insert 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 begin delete city or city and county end delete begin insert recipient end insert 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). begin insert If a charitable nonprofit organization
described in paragraph (3) of subdivision (a) is awarded grant
funds pursuant to this chapter, the city that applied jointly with
the charitable nonprofit organization shall hold the public hearing. end insert

(3) File periodic reports with the department regarding the use
of grant funds provided pursuant to this chapter.

(d) (1) An eligible begin delete city or city and county end delete begin insert recipient end insert 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 begin delete city or city and
county end delete begin insert recipient end insert 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
begin delete cities or cities and counties end delete begin insert areas end insert 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.