BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 944| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 944 Page 2 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] SB 944 Page 3 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. SB 944 Page 4 [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 SB 944 Page 5 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 SB 944 Page 6 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. SB 944 Page 7 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 **** END ****