BILL NUMBER: SB 879	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 30, 2016

INTRODUCED BY   Senator Beall

                        JANUARY 15, 2016

   An act  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,   relating to  housing.
  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. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 879, as amended, Beall.  Housing: bond act. 
 Affordable Housing Bond Act of 2016.  
   (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.  
   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.  
   Under 
    (2)     Under  existing law, there are
programs providing assistance for, among other things, emergency
housing, multifamily housing, farmworker housing, 
homeownership   home ownership  for very low and
low-income households, and downpayment assistance for first-time
 homebuyers.   home buyers.  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. 
   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.  

   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.  
   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.  
   (3) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 65589.9 is added to the 
 Government Code  , to read:  
   65589.9.  (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.

   SEC. 2.    Part 14 (commencing with Section 53570) is
added to Division 31 of the   Health and Safety Code 
 , to read:  

      PART 14.  Affordable Housing Bond Act of 2016


      CHAPTER 1.  GENERAL PROVISIONS


   53570.  This part shall be known, and may be cited as, the
Affordable Housing Bond Act of 2016.
   53571.  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.
   53572.  This part shall only become operative upon adoption by the
voters at the November 8, 2016, statewide general election.
      CHAPTER 2.  AFFORDABLE HOUSING BOND ACT TRUST FUND OF 2016 AND
PROGRAM


   53575.  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.
   53576.  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 3.  FISCAL PROVISIONS


   53580.  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.
   53581.  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.
   53582.  (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.
   53583.  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.
   53584.  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.
   53585.  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.
   53586.  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.
   53587.  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.
   53588.  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.
   53589.  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.
   53590.  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.
   53591.  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.
   53592.  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. 
   SEC. 3.    Section 2 of this act shall become
operative upon the adoption by the voters of the Affordable Housing
Bond Act of 2016. 
   SEC. 4.    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. 
   SEC. 5.    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:
 
   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.  
  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. 
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