BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                        SB 944|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 944
          Author:   Committee on Transportation and Housing   
          Amended:  3/28/16  
          Vote:     27 

           SENATE TRANS. & HOUSING COMMITTEE:  10-0, 4/5/16
           AYES:  Beall, Cannella, Allen, Bates, Galgiani, Leyva, McGuire,  
            Mendoza, Roth, Wieckowski
           NO VOTE RECORDED:  Gaines

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/2/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SUBJECT:   Housing omnibus


          SOURCE:    Author


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

          ANALYSIS:  This bill makes non-controversial changes to sections  
          of law relating to housing. Specifically, this 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  








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              Code Section 798.56(e)) is not enough time for management to  
              make a decision on whether to dispose of an abandoned mobile  
              home. 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  
              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]








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            4)  Common interest developments (CIDs): 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)  CIDs: 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]

            6)  CIDs: Annual budget reports (Section 6).  Last year, the  
              Legislature passed and the Governor signed AB 596 (Daly,  
              Chapter 184, Statutes of 2015), which requires a homeowners  
              association in a CID to disclose to the owners if the CID is  
              an approved condominium project pursuant to Federal Housing  
              Administration and Department of Veterans Affairs  
              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 Section 5300(b)(10), since the section only  
              applies to condos. [Community Associations  
              Institute-California Legislative Action Committee]

            7)  CIDs: 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.   







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              [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  
              Association]

            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 (Torlakson, Chapter 110,  
              Statutes of 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 corresponding sections  
              in the prior code. [Housing Advocates]

            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  







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              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  
              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 (MPRROP): Clarify intent (Section 15). AB 225 (Chau  
              and Nestande, Chapter 493, Statutes of 2014) gave HCD  
              greater flexibility to administer the MPRROP. 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 legislation. [Assembly Housing and Community  
              Development Committee]

          Background

          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  







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          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  
          stakeholders.

           Comments
           
          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 Transportation and Housing Committee 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:    Yes         Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           Unknown cost pressures related to the expansion of allowable  
            uses for MPRROP funds.  (Mobilehome Park Rehabilitation and  
            Purchase Fund  [MPRPF]).  Authorizing loans for replacement of  
            a low-income homeowners mobilehome is not likely to have a  
            significant impact on available funding.  

           Minor costs to the HCD to revise MPRROP regulations to provide  
            for mobilehome replacement loans.

           The remaining provisions are not expected to have a  
            significant state fiscal impact.







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          SUPPORT:   (Verified5/3/16)


          California Coalition for Rural Housing
          Mammoth Lakes Housing
          Peoples' Self Help Housing
          Redwood Valley Little River Band of Pomo Indians


          OPPOSITION:   (Verified5/3/16)


          None received


          Prepared by:Sarah Carvill / T. & H. / (916) 651-4121
          5/4/16 15:04:14


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