BILL NUMBER: AB 2475 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Gordon
FEBRUARY 19, 2016
An act to add Chapter 7 (commencing with Section 63090) to
Division 1 of Title 6.7 to the Government Code, relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2475, as amended, Gordon. Loan program: California
Infrastructure and Economic Development Bank.
Existing law, including the California Global Warming Solutions
Act of 2006, imposes requirements on local governments for meeting
specific environmental quality standards. The Bergeson-Peace
Infrastructure and Economic Development Bank Act authorizes the
California Infrastructure and Economic Development Bank, governed by
a board of directors, to make loans, issue bonds, and provide other
financial assistance for various types of infrastructure and economic
development projects, among other things. The act establishes the
California Infrastructure and Economic Development Bank Fund, a
continuously appropriated fund, for support of the bank.
This bill would state the intent of the Legislature to enact
legislation to establish a forgivable loan program, administered by
the California Infrastructure and Economic Development Bank, for
local governments that provide matching funds for affordable housing
projects that assist in meeting the goals of their region's
sustainable community strategy (SCS) and the California Global
Warming Solutions Act of 2006.
This bill would establish within the bank the Local Government
Affordable Housing Forgivable Loan Program, and require the bank to
make loans to a local government for the development of affordable
housing by the local government on terms and conditions the bank
deems in the best interests of the state. The bill would define terms
for its purposes. The bill would excuse a local government from
being required to repay either half or all of the principal and
interest on a loan if the local government meets specific
requirements that include, among others, that at least 75% of the
units in the financed affordable housing be affordable to very low
income households or extremely low income households, as specified.
The bill would require the board to consult with the Strategic Growth
Council and the California Housing Finance Agency in determining
whether a local government has met these requirements. By expanding
the use of the California Infrastructure and Economic Development
Bank Fund, a continuously appropriated fund, this bill would make an
appropriation.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7 (commencing with Section
63090) is added to Di vision 1 of Title 6.7 of the
Government Code , to read:
CHAPTER 7. LOCAL GOVERNMENT AFFORDABLE HOUSING FORGIVABLE LOAN
PROGRAM
63090. There is within the bank the Local Government Affordable
Housing Forgivable Loan Program.
63090.5. For purposes of this chapter, the following definitions
shall apply:
(a) "Affordable housing" means a dwelling available for purchase
or lease by persons and families who qualify as low- or
moderate-income, as defined in Section 50093 of the Health and Safety
Code, very low income households, as defined in Section 50105 of the
Health and Safety Code, or extremely low income households, as
defined in Section 50106 of the Health and Safety Code.
(b) "Loan program" means the Local Government Affordable Housing
Forgivable Loan Program established by this chapter.
(c) "Local government" means a city, county, or city and county.
63090.10. The bank shall develop and administer the loan program
to make loans to a local government for the development of affordable
housing by the local government on terms and conditions the bank
deems in the best interests of the state.
63090.15. A local government shall not be required to repay a
loan made pursuant to the loan program, as follows:
(a) A local government shall not be required to repay one-half of
the principal of, and accrued interest on, a loan made pursuant to
the loan program if all of the following requirements have been
satisfied by the local government to the satisfaction of the board:
(1) The affordable housing financed with the loan proceeds is
compatible with the strategy required by Section 65080.
(2) The affordable housing financed with the loan proceeds
contributes to the reduction of greenhouse gases pursuant to the
strategy required by Section 65080.
(3) Each dwelling of affordable housing financed with the loan
proceeds is restricted by deed to remain affordable housing for 55
years from the completion of the dwelling.
(4) At least 75 percent of the dwellings in an affordable housing
development financed with the loan proceeds are affordable to very
low income households, as defined in Section 50105 of the Health and
Safety Code, or extremely low income households, as defined in
Section 50106 of the Health and Safety Code, at either an affordable
housing cost, as defined in Section 50052.5 of the Health and Safety
Code or an affordable rent, as defined in Section 50053 of the Health
and Safety Code.
(5) The local government contributed to development of the
affordable housing financed with the loan proceeds in an amount of
funds that are equal to, or infrastructure improvements that are
equal in value to, the amount of the loan.
(b) A local government shall not be required to repay any amount
of a loan made pursuant to the loan program if all of the following
requirements have been satisfied by the local government to the
satisfaction of the board:
(1) All the requirements in subdivision (a).
(2) The local government waived at least 50 percent of any
development or permitting fees it could have imposed on a developer
in the ordinary course of approving the development of the affordable
housing financed with the loan proceeds.
(3) The affordable housing development financed with the loan
proceeds includes onsite access to services needed by the residents
of the affordable housing, including, but not limited to, social
services and medical services.
63090.20. (a) The board shall determine whether a local
government is excused from repaying half or all of a loan pursuant to
Section 63090.15 after the completion of the development of the
affordable housing financed with the loan proceeds.
(b) The board shall make a determination pursuant to subdivision
(a) only after consulting with the Strategic Growth Council and the
California Housing Finance Agency regarding whether the local
government met the requirements of Section 63090.15. The Strategic
Growth Council and the California Housing Finance Agency shall
respond to a request for consultation from the board within a
reasonable time.
(c) The board shall establish a process for a local government to
apply for a reduction in loan repayment pursuant to Section 63090.15.
SECTION 1. It is the intent of the Legislature
to enact legislation to establish a forgivable loan program,
administered by the California Infrastructure and Economic
Development Bank, for local governments that provide matching funds
for affordable housing projects that assist in meeting the goals of
their region's sustainable community strategy (SCS) and the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Sec. 38500) of the Health and Safety Code).