BILL ANALYSIS                                                                                                                                                                                                    

                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 944            Hearing Date:    4/5/2016
          |Author:   |Committee on Transportation and Housing               |
          |Version:  |3/28/2016                                             |
          |Urgency:  |No                     |Fiscal:      |No              |
          |Consultant|Sarah Carvill                                         |
          |:         |                                                      |

          SUBJECT:  Housing omnibus

            DIGEST:  This bill makes non-controversial changes to sections  
          of law relating to housing.

          Existing law:
          According to the Legislative Analyst's Office, the cost of  
          producing a bill in 2001-2002 was $17,890.  By combining  
          multiple matters into one bill, the Legislature can make minor  
          changes to law in the most cost-effective manner.

          Proposals included in this housing omnibus bill must abide by  
          the Senate Transportation and Housing Committee policy on  
          omnibus committee bills.  The proponent of an item submits  
          proposed language and provides background materials to the  
          committee for the item to be described to legislative staff and  
          stakeholders.  Committee staff provides a summary of the items  
          and the proposed statutory changes to all majority and minority  
          consultants in both the Senate and Assembly, as well as all  
          known or presumed interested parties.  If an item encounters any  
          opposition and the proponent cannot work out a solution with the  
          opposition, the item is omitted from or amended out of the bill.  
           Proposals in the bill must reflect a consensus and be without  
          opposition from legislative members, agencies, and other  


          SB 944 (Committee on Transportation and Housing)  Page 2 of ?
          This bill makes non-controversial changes to sections of law  
          relating to housing. Specifically, the bill includes the  
          following provisions. The proponent of each provision is noted  
          in brackets.

            1)  Mobile home disposal: Minor program changes (Sections 1  
              and 10). AB 999 (Daly, Chapter 376, Statutes of 2015) passed  
              last year with no controversy. However, in the  
              implementation of the new mandate, the Department of Housing  
              and Community Development (HCD) and interested parties are  
              finding that the 10-day period given in the statute (Civil  
              Code Section 798.56(e)) is not enough time for management to  
              make a decision on whether to dispose of an abandoned  
              mobilehome. As a result, this new program is not being used.  
              Additionally, HCD realized after AB 999 was passed that it  
              needed regulations to create the forms required by the new  
              law. This bill changes the time in which management must  
              file a notice of disposal with HCD from 10 days to 30 days  
              after the date of sale. This bill also gives HCD authority  
              to draft guidelines for new procedures and forms until final  
              regulations may be formally adopted. [Western Manufactured  
              Housing Communities Association]

            2)  Transitional Housing Misconduct Act: Move to Civil Code  
              (Sections 2 and 14). The Transitional Housing Misconduct Act  
              is a special law that allows transitional housing operators  
              to remove problematic residents with a simple injunction  
              action, rather than going through the entire landlord-tenant  
              eviction law. It also allows for interim options, with court  
              enforcement, rather than only eviction. Unfortunately,  
              because it is located in the middle of HCD's finance program  
              laws, it is difficult to find and often isn't even  
              understood by courts and housing providers. This bill moves  
              this law to the Civil Code that already deals with  
              landlord-tenant statutes, where the courts and housing  
              providers are more likely to look for such a law. [Senate  
              Transportation and Housing Committee]

            3)  Definition of "electric vehicle charging station" and  
              "charging stations": Correct code reference (Section 3).  
              Legislation passed in 2014 regulating lease terms on  
              electric vehicle charging stations included inconsistent  
              definitions of "electric vehicle charging station" and  
              "charging station." Civil Code Section 1947.6(c) references  
              the definition in the California Electrical Code, while  


          SB 944 (Committee on Transportation and Housing)  Page 3 of ?
              Civil Code Section 1952.7(c)(1) references the definition in  
              the National Electrical Code. The California Electrical Code  
              is based on the model National Electrical Code, but contains  
              amendments made by state agencies with statutory authority.  
              These amendments were not originally included in the  
              national model code. This bill corrects the discrepancy by  
              changing the definition in Section 1952.7 of the Civil Code  
              to refer to the California Electrical Code.  [Lisa Yuki,  
              Department of General Services]

            4)  Common interest developments: Resolve conflicts between  
              code sections relating to declarations (Section 4). There  
              are conflicts between Civil Code Sections 4270 and 4225,  
              4230 and 4235 relating to amending declarations. Section  
              4270 already makes an exception for an alternate amendment  
              process described in Section 4275. This bill resolves the  
              conflicts by adding exceptions for the alternate processes  
              in Sections 4225, 4230, and 4235 to the existing exception  
              in Section 4270.  [Educational Community for Homeowners  
            5)  Common interest developments: Renumber a Civil Code  
              section (Section 5). The California Law Revision Commission  
              (CLRC) revised the numbering in the Davis-Stirling Act with  
              the intent to avoid decimals. Accordingly, the CLRC left  
              ample room between existing whole-numbered sections. Despite  
              this, Civil Code Section 4750 concerns personal agriculture,  
              while Civil Code Section 4750.10 addresses clotheslines.  
              Since clotheslines are not particularly related to personal  
              agriculture, this bill replaces the statute number  
              containing a decimal with a whole number. [Educational  
              Community for Homeowners (ECHO)]

            6)  Common interest developments: Annual budget reports  
              (Section 6).  Last year, the legislature passed and the  
              Governor signed AB 596, which requires a homeowners  
              association (HOA) in a common interest development (CID) to  
              disclose to the owners if the CID is an approved condominium  
              project pursuant to Federal Housing Administration (FHA) and  
              Department of Veterans Affairs (VA) guidelines. Section  
              5300(b)(10), which applies only to condominium projects,  
              specifies the following wording that must be contained in  
              the disclosure statement: "This common interest development  
              [is/is not (circle one)] a condominium project." This bill  
              eliminates the "is/is not a condominium" question from  


          SB 944 (Committee on Transportation and Housing)  Page 4 of ?
              Section 5300(b)(10), since the section only applies to  
              condos. [Community Associations Institute-California  
              Legislative Action Committee (CAI-CLAC)]

            7)  Common interest developments: Correct a Civil Code section  
              reference (Section 7). Civil Code Section 5570(b)(2) defines  
              the term "major component" to have the same meaning as  
              specified in Civil Code Section 55530. There is no Civil  
              Code Section 55530. The reference is intended to be to Civil  
              Code Section 5550, which does define the term. This bill  
              corrects an inaccurate Civil Code section reference from  
              Section 55530 to 5550.  [Community Associations  
              Institute-California Legislative Action Committee  
            8)  Housing discrimination: Update federal law citation  
              (Section 8). In 1996, an amendment to Civil Code Section  
              798.76 was made to reflect amendments to a federal law  
              referenced therein, the Federal Fair Housing Act. A  
              corresponding change was not made in Government Code Section  
              12955.9, which cites the same federal law. This bill  
              corrects the name of the federal law to reflect amendments  
              thereto. [Western Manufactured Housing Communities  

            9)  State notice law protections: Clarify reference (Section  
              9). The state notice law (Government Code Section 65863.10)  
              applies to a variety of publicly supported affordable  
              multifamily housing types. SB 1328 (2004) extended state  
              notice protections to tenants of many types of affordable  
              housing not previously covered. Among them were properties  
              with expiring rent restrictions that were financed under  
              tax-exempt mortgage revenue bond programs in Internal  
              Revenue Code Section 142(d) and Government Code Section  
              65863.10(a)(3)(F). Prior to 1986, however, the mortgage  
              revenue bond authority in Internal Revenue Code Section  
              142(d) was lodged in a different code section. Consequently,  
              the specific reference to Section 142 potentially denies  
              basic state notice protections to tenants in properties that  
              were financed with mortgage revenue bonds prior to 1986.  
              Last year, voucher tenants of a 1985 bond-financed property  
              in Walnut Creek were left unprotected by the state notice  
              law because of this oversight. This bill clarifies that  
              these protections apply to properties financed by the  
              program in Internal Revenue Code Section 142 as well as  


          SB 944 (Committee on Transportation and Housing)  Page 5 of ?
              corresponding sections in the prior code. [Housing  

            10) Building Standards Commission submittals to the Office of  
              Administrative Law (OAL) (Section 11). Government Code  
              Section 11356 exempts building standard regulations  
              (including the Initial Statement of Reasons) from OAL review  
              and approval. When the California Building Standards  
              Commission (CBSC) approves an Initial Statement of Reasons  
              and a Notice of Proposed Action (Notice), only the Notice is  
              published by OAL in the California Regulatory Notice  
              Register pursuant to Government Code Section 11344.1.  
              However, Health and Safety Code Section 18935(a) requires  
              CBSC to submit both the Initial Statement of Reasons and the  
              Notice to OAL. This bill eliminates an unnecessary  
              requirement in order to achieve consistency with existing  
              law. [Department of General Services]

            11) Tribally designated housing entities (Sections 12 and 13).  
               State Health and Safety Code Section 50074 describes the  
              types of housing sponsors that are eligible to participate  
              in housing programs administered by HCD. The federal Native  
              American Housing Assistance Self Determination Act of 1996  
              (NAHASDA) establishes a specific category of housing  
              sponsor, the "tribally designated housing entity," that is  
              neither enumerated in Section 50074 or defined in existing  
              language.  As such, tribes have never participated in HCD's  
              programs. This bill defines "tribally designated housing  
              entity" by reference to federal code and specifies that  
              tribally designated housing entities are housing sponsors  
              eligible for assistance from HCD. [Northern Circle Indian  
              Housing Authority]
            12) Mobilehome Park Rehabilitation and Resident Ownership  
              Program: Clarify intent (Section 15). AB 225 (Chau and  
              Nestande, Chapter 493, Statutes of 2014) gave HCD greater  
              flexibility to administer the Mobilehome Park Rehabilitation  
              and Resident Ownership Program. The bill allowed recipients  
              of program funds (e.g., resident organizations, local public  
              entities, nonprofit sponsors) to make loans to lower-income  
              mobilehome owners to assist them in repairing their  
              mobilehomes. The bill was intended to allow HCD to operate  
              this program in a manner similar to the CalHOME program,  
              such as by providing loans to residents to replace their  
              mobilehomes. This bill further clarifies the intent of  


          SB 944 (Committee on Transportation and Housing)  Page 6 of ?
              legislation. [Assembly Housing and Community Development  


            1)  Purpose. The purpose of omnibus bills is to combine  
              technical and non-controversial changes to various  
              committee-related statutes into one bill. This allows the  
              legislature to make multiple minor changes to statutes in  
              one bill in a cost-effective manner. The Senate Committee on  
              Transportation and Housing insists that its housing omnibus  
              bill be a consensus measure. If there is no consensus on a  
              particular item, it cannot be included. There is no known  
              opposition to any item in this bill.  

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  No    Local:  

            POSITIONS:  (Communicated to the committee before noon on  
                          March 30, 2016.)

          California Coalition for Rural Housing


          None received

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