Amended in Senate March 30, 2016

Senate Bill No. 879

Introduced by Senator Beall

January 15, 2016

An act begin insert to add Section 65589.9 to the Government Code, and to add Part 14 (commencing with Section 53570) to Division 31 of the Health and Safety Code, end insert relating to begin delete housing. end delete begin insert housing, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 879, as amended, Beall. begin delete Housing: bond act. end delete begin insert Affordable Housing Bond Act of 2016. end insert

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(1) The Planning and Zoning Law requires a city or county to prepare and adopt a comprehensive, long-term general plan, and requires the general plan to include specified, mandatory elements, including a housing element. That law authorizes cities and counties to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, and open space, including agriculture, recreation, enjoyment of scenic beauty, use of natural resources, and other purposes. That law also establishes the Office of Planning and Research in the Governor’s Office to, among other things, serve the Governor and his or her Cabinet as staff for long-range planning and research, and to constitute the comprehensive state planning agency, as provided.

end insert begin insert

This bill would require a person wishing to develop or use his or her property for a nonconforming commercial lodging use to apply for and obtain a nonconforming commercial lodging use permit from the office. The bill would require the office to grant the permit upon payment of a fee in an unspecified amount. The bill would define “nonconforming commercial lodging use” as offering any portion of land or premises, designated for residential use pursuant to a local agency’s general plan for occupancy, for tourist or transient use for compensation to the offeror of the land or premises.

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Under

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begin insert (2) end insert begin insert   end insert begin insert Under end insert existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, begin delete homeownership end delete begin insert home ownership end insert for very low and low-income households, and downpayment assistance for first-time begin delete homebuyers. end delete begin insert home buyers. end insert Existing law also authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law and requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks.

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This bill would state the intent of the Legislature to enact legislation that would authorize the issuance of bonds and would require the proceeds from the sale of these bonds to be used to finance housing related programs that serve the homeless and extremely low income and very low income Californians.

end delete begin insert

This bill would enact the Affordable Housing Bond Act of 2016, which, if adopted, would authorize the issuance of bonds in the amount of $3,000,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as provided.

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The bill would provide for submission of the bond act to the voters at the November 8, 2016, statewide general election in accordance with specified law.

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(3) This bill would declare that it is to take effect immediately as an urgency statute.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 65589.9 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 65589.9. end insert   

(a) As used in this section, “nonconforming
commercial lodging use” means offering any portion of land or
premises, designated for residential use pursuant to a local
agency’s general plan, for occupancy for tourist or transient use
for compensation to the offeror of the land or premises.

(b) In addition to obtaining any other permit required by law
from any local government or from any state, regional, or local
agency, a person wishing to develop or use his or her property for
a nonconforming commercial lodging use shall apply for and
obtain a nonconforming commercial lodging use permit from the
Office of Planning and Research, which shall grant the permit
upon payment of the fee established in subdivision (c).

(c) An applicant for a nonconforming commercial lodging use
permit shall pay a fee in the amount of ___ dollars ($___). Fees
collected pursuant to this section shall be deposited in the General
Fund.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Part 14 (commencing with Section 53570) is added to
Division 31 of the end insert begin insert Health and Safety Code end insert begin insert , to read: end insert

begin insert

 

PART  begin insert 14. end insert   Affordable Housing Bond Act of 2016

 

Chapter   begin insert 1. end insert General Provisions

 

begin insert 53570. end insert   

This part shall be known, and may be cited as, the
Affordable Housing Bond Act of 2016.

begin insert 53571. end insert   

As used in this part, the following terms have the
following meanings:

(a) “Board” means the Department of Housing and Community
Development for programs administered by the department, and
the California Housing Finance Agency for programs administered
by the agency.

(b) “Committee” means the Housing Finance Committee created
pursuant to Section 53524 and continued in existence pursuant to
Sections 53548 and 53582.

(c) “Fund” means the Affordable Housing Bond Act Trust Fund
of 2016 created pursuant to Section 53575.

begin insert 53572. end insert   

This part shall only become operative upon adoption
by the voters at the November 8, 2016, statewide general election.

 

Chapter   begin insert 2. end insert Affordable Housing Bond Act Trust Fund
of 2016 and Program

 

begin insert 53575. end insert   

The Affordable Housing Bond Act Trust Fund of 2016
is hereby created within the State Treasury. It is the intent of the
Legislature that the proceeds of bonds deposited in the fund shall
be used to fund the housing-related programs described in this
chapter. The proceeds of bonds issued and sold pursuant to this
part for the purposes specified in this chapter shall be allocated
in the following manner:

(a) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Multifamily Housing Account, which is
hereby created in the fund. Notwithstanding Section 13340 of the
Government Code, the moneys in the account are continuously
appropriated for the Multifamily Housing Program authorized by
Chapter 6.7 (commencing with Section 50675) of Part 2, to be
expended to assist in the new construction, rehabilitation, and
preservation of permanent and transitional rental housing for
persons with incomes of up to 60 percent of the area median
income (AMI).

(b) Six hundred million dollars ($600,000,000) to be deposited
in the Transit-Oriented Development and Infill Infrastructure
Account, which is hereby created within the fund. The moneys in
the account shall be used for the following purposes:

(1) Three hundred million dollars ($300,000,000) to be
transferred to the Transit-Oriented Development Implementation
Fund, established pursuant to Section 53561, for expenditure,
upon appropriation by the Legislature, pursuant to the
Transit-Oriented Development Implementation Program authorized
by Part 13 (commencing with Section 50560).

(2) Three hundred million dollars ($300,000,000) to be
deposited in the Infill Infrastructure Financing Account, which is
hereby created within the fund. Moneys in the account shall be
available, upon appropriation by the Legislature and subject to
any other conditions and criteria that the Legislature provides for
by statute, for infill incentive grants to assist in the new
construction and rehabilitation of infrastructure that supports
high-density affordable and mixed-income housing in locations
designated as infill.

(c) Six hundred million dollars ($600,000,000) to be deposited
in the Special Populations Housing Account, which is hereby
created within the fund. The moneys in the account shall be used
for the following purposes:

(1) Three hundred million dollars ($300,000,000) which,
notwithstanding Section 13340 of the Government Code, shall be
continuously appropriated for transfer to the Joe Serna, Jr.
Farmworker Housing Grant Fund, established pursuant to Section
50517.5.

(2) Three hundred million dollars ($300,000,000) to be
deposited in the Local Housing Trust Matching Grant Program
Account, which is hereby created within the fund. Moneys in the
account shall be available, upon appropriation by the Legislature
and subject to any other conditions and criteria that the Legislature
provides for by statute, to provide matching grants to local public
agencies and nonprofit organizations that raise money for
affordable housing.

(d) Three hundred million dollars ($300,000,000) to be
deposited in the Home Ownership Development Account, which
is hereby created within the fund. Notwithstanding Section 13340
of the Government Code, the moneys in the account shall be
continuously appropriated for the CalHome Program authorized
by Chapter 6 (commencing with Section 50650) of Part 2, to
provide direct, forgivable loans to assist development projects
involving multiple home ownership units, including single-family
subdivisions, for self-help mortgage assistance programs, and for
manufactured homes.

begin insert 53576. end insert   

The Legislature may, from time to time, amend any law
related to programs to which funds are, or have been, allocated
pursuant to this chapter for the purposes of improving the efficiency
and effectiveness of those programs or to further the goals of those
programs.

 

Chapter   begin insert 3. end insert Fiscal Provisions

 

begin insert 53580. end insert   

Bonds in the total amount of three billion dollars
($3,000,000,000), exclusive of refunding bonds, or so much thereof
as is necessary, are hereby authorized to be issued and sold for
carrying out the purposes expressed in this part and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. All bonds herein
authorized which have been duly sold and delivered as provided
herein shall constitute valid and legally binding general obligations
of the state, and the full faith and credit of the state is hereby
pledged for the punctual payment of both principal and interest
of those bonds.

begin insert 53581. end insert   

The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), except subdivision (a) of Section 16727 to the extent that
it is inconsistent with this part, and all of the other provisions of
that law as amended from time to time which apply to the bonds
and to this part and are hereby incorporated in this part as though
set forth in full in this part.

begin insert 53582. end insert   

(a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of
the bonds authorized by this part, the committee is continued in
existence. For the purposes of this part, the Housing Finance
Committee is “the committee” as that term is used in the State
General Obligation Bond Law.

(b) The committee may adopt guidelines establishing
requirements for administration of its financing programs to the
extent necessary to protect the validity of, and tax exemption for,
interest on the bonds. The guidelines shall not constitute rules,
regulations, orders, or standards of general application and are
not subject to Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.

(c) For the purposes of the State General Obligation Bond Law,
the Department of Housing and Community Development is
designated the “board” for programs administered by the
department, and the California Housing Finance Agency is the
“board” for programs administered by the agency.

begin insert 53583. end insert   

Upon request of the board stating that funds are needed
for purposes of this part, the committee shall determine whether
or not it is necessary or desirable to issue bonds authorized
pursuant to this part in order to carry out the actions specified in
Section 53575, and, if so, the amount of bonds to be issued and
sold. Successive issues of bonds may be authorized and sold to
carry out those actions progressively, and are not required to be
sold at any one time. Bonds may bear interest subject to federal
income tax.

begin insert 53584. end insert   

There shall be collected annually, in the same manner
and at the same time as other state revenue is collected, a sum of
money in addition to the ordinary revenues of the state, sufficient
to pay the principal of, and interest on, the bonds as provided
herein, and all officers required by law to perform any duty in
regard to the collections of state revenues shall collect that
additional sum.

begin insert 53585. end insert   

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this part, an amount that will
equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.

(b) The sum which is necessary to carry out Section 53587,
appropriated without regard to fiscal years.

begin insert 53586. end insert   

The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account,
in accordance with Section 16312 of the Government Code, for
purposes of this part. The amount of the request shall not exceed
the amount of the unsold bonds which the committee has, by
resolution, authorized to be sold for purposes of this part, less any
amount withdrawn pursuant to Section 53587. The board shall
execute any documents as required by the Pooled Money
Investment Board to obtain and repay the loan. Any amount loaned
shall be deposited in the fund to be allocated in accordance with
this part.

begin insert 53587. end insert   

For purposes of carrying out this part, the Director of
Finance may, by executive order, authorize the withdrawal from
the General Fund of any amount or amounts not to exceed the
amount of the unsold bonds which the committee has, by resolution,
authorized to be sold. Any amounts withdrawn shall be deposited
in the fund. Any moneys made available under this section shall
be returned to the General Fund, plus the interest that the amounts
would have earned in the Pooled Money Investment Account, from
moneys received from the sale of bonds which would otherwise be
deposited in that fund.

begin insert 53588. end insert   

The bonds may be refunded in accordance with Article
6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 4 of Title 2 of the Government Code. Approval by the
electors of this act shall constitute approval of any refunding bonds
issued pursuant to the State General Obligation Bond Law.

begin insert 53589. end insert   

Notwithstanding any provisions in the State General
Obligation Bond Law, the maximum maturity of any bonds
authorized by this part shall not exceed 30 years from the date of
each respective series. The maturity of each series shall be
calculated from the date of each series.

begin insert 53590. end insert   

The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by
this part are not “proceeds of taxes” as that term is used in Article
XIII B of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.

begin insert 53591. end insert   

Notwithstanding any provision of the State General
Obligation Bond Law with regard to the proceeds from the sale
of bonds authorized by this part that are subject to investment
under Article 4 (commencing with Section 16470) of Chapter 3 of
Part 2 of Division 4 of Title 2 of the Government Code, the
Treasurer may maintain a separate account for investment
earnings, may order the payment of those earnings to comply with
any rebate requirement applicable under federal law, and may
otherwise direct the use and investment of those proceeds so as to
maintain the tax-exempt status of those bonds and to obtain any
other advantage under federal law on behalf of the funds of this
state.

begin insert 53592. end insert   

All moneys derived from premiums and accrued interest
on bonds sold pursuant to this chapter shall be transferred to the
General Fund as a credit to expenditures for bond interest.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2 of this act shall become operative upon the
adoption by the voters of the Affordable Housing Bond Act of 2016. end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2 of this act shall be submitted by the Secretary
of State to the voters at the November 8, 2016, statewide general
election, notwithstanding the requirements of Sections 9040, 9043,
9044, and 9061 of the Elections Code or any other law. end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to ensure that the general obligation bond measure
proposed by Section 2 of this act is submitted to the voters for the
November 8, 2016, statewide general election, it is necessary that
this act take effect immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would authorize the issuance of bonds, and would
require the proceeds from the sale of these bonds to be used to
finance housing related programs that serve the homeless and
extremely low income and very low income Californians over the
course of the next decade.

end delete

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CORRECTIONS:

Text--Page 6.

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