Amended in Senate April 28, 2016

Amended in Senate March 30, 2016

Senate Bill No. 879

Introduced by Senator Beall

January 15, 2016

An act begin delete to add Section 65589.9 to the Government Code, and end delete to add Part 14 (commencing with Section 53570) to Division 31 of the Health and Safety Code, relating to 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. Affordable Housing Bond Act of 2016.

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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.

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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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(2)

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begin insert (1) end insert  Under existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, home ownership for very low and low-income households, and downpayment assistance for first-time 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 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.

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(3)

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begin insert (2) end insert  This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

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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.

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begin delete SEC. 2. end delete

begin insert SECTION 1. end insert   

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 begin delete 50560). end delete begin insert 53560). end insert

(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 begin insert both of end insert 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.

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begin insert SEC. 2. end insert   

Section begin delete 2 end delete begin insert 1 end insert of this act shall become operative upon
the adoption by the voters of the Affordable Housing Bond Act of
2016.

begin delete SEC. 4. end delete

begin insert SEC. 3. end insert   

Section begin delete 2 end delete begin insert 1 end insert 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.

begin delete SEC. 5. end delete

begin insert SEC. 4. end 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:

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.