BILL NUMBER: AB 2441 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2016
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, 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, recipients, as defined, 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 recipient 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 areas 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 recipients 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
areas 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 recipients in areas 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"
recipient " means a any of
the following:
(1) 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.
(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.
(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.
(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
cities or cities and counties recipients
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
recipient 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). 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.
(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
recipient 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 recipient 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 areas 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.