BILL NUMBER: SB 879	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 5, 2016
	AMENDED IN SENATE  APRIL 28, 2016
	AMENDED IN SENATE  MARCH 30, 2016

INTRODUCED BY   Senator Beall

                        JANUARY 15, 2016

   An act 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.

   (1) 
   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. 
   (2) 
   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:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) California is experiencing an extreme housing shortage with
2.2 million extremely low-income and very low-income renter
households competing for only 664,000 affordable rental homes. This
leaves more than 1.54 million of California's lowest income
households without access to affordable housing.  
   (b) While homelessness across the United States is in an overall
decline, homelessness in California is rising. In 2015, California
had 115,738 homeless people, which accounted for 21% of the nation's
homeless population. This is an increase of 1.6% from the prior year.
California also had the highest rate of unsheltered people, at 64%
or 73,699 people; the largest numbers of unaccompanied homeless
children and youth, at 10,416 people or 28% of the national total;
the largest number of veterans experiencing homelessness, at 11,311
or 24% of the national homeless veteran population; and the second
largest number of people in families with chronic patterns of
homelessness, at 22,582 or 11% of the state's homeless family
population.  
   (c) California is home to 21 of the 30 most expensive rental
housing markets in the country, which has had a disproportionate
impact on the middle class and the working poor. California requires
the third highest wage in the country to afford housing, behind
Hawaii and Washington D.C. The fair market rent, which indicates the
amount of money that a given property would require if it were open
for leasing, for a two-bedroom apartment is $1,386. To afford this
level of rent and utilities, without paying more than 30% of income
on housing, a household must earn an hourly "housing wage" of $26.65
per hour. This means that a person earning minimum wage must work an
average of 3 jobs to pay the rent for a two-bedroom unit. In some
areas of the state, these numbers are even higher.  
   (d) Low-income families are forced to spend more and more of their
income on rent, which leaves little else for other basic
necessities. Many renters must postpone or forego homeownership, live
in more crowded housing, commute further to work, or, in some cases,
choose to live and work elsewhere.  
   (e) California has seen a significant reduction of state funding
in recent years. The funds from Proposition 46 of 2002 and
Proposition 1C of 2006, totaling nearly $5 billion for a variety of
affordable housing programs, have been expended. Combined with the
loss of redevelopment funds, $1.5 billion of annual state investment
dedicated to housing has been lost, leaving several critical housing
programs unfunded.  
   (f) High housing costs and the shortage of housing stock in
California directly affect the future health of California's economy
and, given the staggering numbers indicated above, bold action is
necessary. Investment in existing and successful housing programs to
expand the state's housing stock should benefit California's homeless
and low-income earners, as well as some of the state's most
vulnerable populations, including foster and at-risk youth, persons
with developmental and physical disabilities, farm workers, the
elderly, single parents with children, and survivors of domestic
violence. Investments should also be made in housing for Medi-Cal
recipients served through a county's Section 1115 Waiver Whole Person
Care Pilot program and family day care providers.  
   (g) Investment in housing creates jobs and provides local
benefits. The estimated one-year impacts of building 100 rental
apartments in a typical local area include $11.7 million in local
income, $2.2 million in taxes and other revenue for local
governments, and 161 local jobs or 1.62 jobs per apartment. The
additional annually recurring impacts of building 100 rental
apartments in a typical local area include $2.6 million in local
income, $503,000 in taxes and other revenue for local governments,
and 44 local jobs or .44 jobs per apartment. 
   SECTION 1.   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,
  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
53560).
   (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 both 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. 2.   SEC. 3.   Section  1
  2  of this act shall become operative upon the
adoption by the voters of the Affordable Housing Bond Act of 2016.
   SEC. 3.   SEC. 4.   Section  1
  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. 4.   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.