BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   June 21, 2016


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          SB  
          944 (Committee on Transportation and Housing) - As Amended May  
          31, 2016


                                  PROPOSED CONSENT

          SENATE VOTE:  37-0


          SUBJECT:  HOUSING OMNIBUS


          KEY ISSUE:  SHOULD various NON-CONTROVERSIAL CHANGES RELATING TO  
          housing LAW BE MADE TO THE CALIFORNIA CODES IN THIS OMNIBUS  
          BILL?


                                      SYNOPSIS


          This non-controversial bill is the Senate Transportation and  
          Housing Committee's housing omnibus bill.  The purpose of the  
          omnibus bill is to increase the efficiency of the legislative  
          process, conserve legislative resources, and eliminate the need  
          to unnecessarily hear a number of stand-alone bills that might  
          otherwise have to be introduced and heard separately through the  
          legislative process.  According to the author, in order to be  
          included in the bill, each provision must be determined to be  
          non-controversial by both the majority and minority party  








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          consultants in both the Senate and Assembly, or else it is  
          amended out of the bill.  This omnibus bill incorporates over  
          fifteen different proposals submitted by various groups seeking  
          to make technical, clarifying, or other modest substantive  
          changes to laws relating to housing, including such groups as  
          the California Coalition for Rural Housing, the Department of  
          General Services, the Western Manufactured Housing Communities  
          Association, as well as ECHO and CAI, advocates for homeowner  
          associations.  This bill was approved unanimously in the Senate  
          without any "No" votes, and passed the Assembly Housing and  
          Community Development Committee by a vote of 7-0.  The bill has  
          no known opposition.


          SUMMARY:  Makes various non-controversial changes to sections of  
          law relating to housing.  Specifically, this bill, among other  
          things:   


          1)Increases the time after the date of sale, from 10 days to 30  
            days, by which management seeking to dispose of a mobile home  
            must file a notice of disposal with the Department of Housing  
            and Community Development (HCD) to enforce the lien against  
            the mobilehome.


          2)Corrects an erroneous cross-reference that helps define  
            "electric vehicle charging station" within a statute  
            prohibiting commercial lease terms that unreasonably interfere  
            with the construction of such charging stations.


          3)Repeals the Transitional Housing Participant Misconduct Act  
            from the Health and Safety Code, and relocates the Act into a  
            new chapter of Title 5 of the Civil Code, relating to hiring  
            of real property.


          4)Defines "tribally designated housing entity" to mean an entity  








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            as defined in Section 4103 of Title 25 of the U.S. Code, and  
            specifies that tribally designated housing entities are  
            housing sponsors eligible for assistance from HCD.


          5)Codifies an exemption from the law prohibiting unlicensed  
            contracting for a nonprofit corporation providing assistance  
            to an owner-builder, as defined, who is participating in a  
            mutual self-help housing program, as specified.


          6)Replaces or deletes several outdated code references, corrects  
            drafting errors, and makes other non-controversial technical  
            and clarifying changes.


          EXISTING LAW:   


          1)Requires the management of a mobilehome park to file a notice  
            of disposal with HCD, in the form and manner as prescribed, no  
            less than ten days after the date of sale in order to enforce  
            the lien against the mobilehome.  (Civil Code Sections 798.56a  
            (e) and 798.61 (f).)


          2)Defines "electric vehicle charging station" or "charging  
            station" to mean a station that is designed in compliance with  
            Article 625 of the National Electrical Code, as it reads on  
            the effective date, and delivers electricity from a source  
            outside an electric vehicle into one or more electric  
            vehicles.  (Civil Code Section 1952.7 (c).)


          3)Pursuant to the Transitional Housing Participant Misconduct  
            Act, allows transitional housing operators to remove  
            problematic residents by obtaining a temporary restraining  
            order or other injunctive relief to prevent recurrence of acts  
            of violence or substantial disruption.  (Chapter 4.7  








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            (commencing with Section 50580) of Part 2 of Division 31 of  
            the Health and Safety Code.)


          4)Defines the term "housing sponsor" for the purpose of housing  
            assistance by HCD to mean any individual, joint venture,  
            partnership, trust, corporation, etc., as specified, but omits  
            federally recognized "tribally designated housing entities"  
            from the definition under state law.  (Health & Safety Code  
            Section 50074.)


          5)Makes it a misdemeanor to engage in the business of or act in  
            the capacity of a contractor without a license, but also  
            provides certain exemptions from that licensure requirement  
            for certain owner-builders, as specified.  (Business &  
            Professions Code Section 7044.)


          FISCAL EFFECT:  As currently in print this bill is keyed fiscal.


          COMMENTS:  SB 944 is this year's Housing Omnibus bill carried by  
          the Senate Transportation and Housing Committee.  The bill makes  
          various changes to different sections of the Codes relating to  
          housing.  Among other things, the bill makes a number of  
          technical and minor substantive changes to the Civil Code,  
          including cleanup to legislation previously approved by the  
          Assembly Judiciary Committee.


          According to the author, 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.  Senate Transportation and Housing 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.   
          According to the author, if an item encounters any opposition  








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          and the proponent cannot work out a solution with the  
          opposition, the item is excluded from the bill, thus ensuring  
          that all proposals included in this omnibus bill are  
          non-controversial and have no opposition from legislative  
          members, agencies, and other stakeholders.


          This year, the bill proposes to make the following changes  
          (relevant sections of the bill in parentheses):


          Mobile home disposal: Minor program changes and follow-up to AB  
          999 (Sections 2, 3, and 20).  AB 999 (Daly, Chapter 376,  
          Statutes of 2015) was approved by this Committee and was  
          chaptered into law 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.   
          [Proposed by Western Manufactured Housing Communities  
          Association]


          Definition of "electric vehicle charging station": Correct code  
          reference (Section 5).  AB 2565 (Muratsuchi, Chapter 529,  
          Statutes of 2014) was approved by this Committee and was  
          chaptered into law.  Among other things, AB 2565 made a term in  
          a lease of a commercial or residential property, executed,  
          renewed, or extended on or after January 1, 2015, void and  
          unenforceable if it prohibits or unreasonably restricts the  
          installation of an electric vehicle charging station in a  








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          parking space.  However, AB 2565 included an inconsistent  
          definition 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.  [Proposed by the Department of General Services]


          Transitional Housing Misconduct Act: Relocation to Civil Code  
          (Sections 4 and 25).  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 a new chapter of  
          the Civil Code (commencing with section 1954.10), adjacent to  
          existing statutes on rental of real property and landlord-tenant  
          law, where the courts and housing providers are more likely to  
          look for such provisions.  [Proposed by Senate Transportation  
          and Housing Committee]


          Adopts by reference a needed definition of "tribally designated  
          housing entities" (Sections 23 and 24).  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 nor defined  








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          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. 


          This proposal was submitted by the Northern Circle Indian  
          Housing Authority, and the Committee has received letters from  
          several nonprofit affordable housing advocates serving rural  
          Native American communities in support of this proposal.  Among  
          them, the United Native Housing Development Corporation (UNHDC)  
          writes: 


               Legislation like SB 944 will eliminate regulatory  
               barriers which will allow direly needed affordable  
               housing services be extended to disadvantaged  
               communities that have historically been underserved.   
               UNHDC actively supports sustainable practice in its  
               land and community development endeavors.  SB 944 will  
               provide access to critical resources to continue our  
               efforts in this regard.


          Mutual Self-Help Housing: Codifies longstanding exception to  
          licensed contracting rule for certain nonprofits. (Section 1).   
          Ten local non-profit community development organizations operate  
          mutual self-help homeownership programs in rural California  
          (programs that assist groups of low-income families who work  
          together to build their own homes).  Local governments and  
          others are sometimes unclear about the role that the non-profit  
          plays in the program.  It is possible to interpret the current  
          code definition of a contractor to include the work done by the  
          self-help program operators.  However the State Contractor's  
          License Board has also said that by acting in a specific manner,  
          the programs would be considered exempt.  Rather than leaving  
          the matter subject to interpretation, the proposed amendment to  
          the California Business and Professions Code would clarify that  








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          non-profits that specifically operate this mutual self-help  
          program are not acting as contractors.  According to the author,  
          this proposal will codify a practice that has been in place for  
          the past 50 years and ensure that the program can continue to  
          assist rural families.  [Proposed by the California Coalition  
          for Rural Housing]


          State notice law protections: Clarifies reference to correct a  
          drafting oversight (Section 12).  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 corresponding sections in the prior code.  
           [Proposed by Housing Advocates]


          Mobilehome Park Rehabilitation and Resident Ownership Program:  
          Clarifies legislative intent (Section 26).  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.  








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           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 that legislation.  [Proposed by  
          Assembly Housing and Community Development Committee]


          Common interest developments: Resolves conflicts between code  
          sections relating to declarations (Section 6).  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.  [Proposed  
          by Educational Community for Homeowners (ECHO)]


          Common interest developments: Renumber a Civil Code section  
          (Section 7).  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.  [Proposed by Educational Community for Homeowners  
          (ECHO)]


          Common interest developments: Annual budget reports (Section 8).  
           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  








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          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.   
          [Proposed by Community Associations Institute-California  
          Legislative Action Committee (CAI-CLAC)]


          Common interest developments: Corrects a Civil Code section  
          reference (Section 9).  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.  [Proposed by Community Associations Institute-California  
          Legislative Action Committee (CAI-CLAC)]


          Housing discrimination: Updates federal law citation (Section  
          10).  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.  [Proposed by Western Manufactured  
          Housing Communities Association]


          Eliminates conflicting methodology for HCD determination of  
          regional housing need (Section 11).  The second and third  
          sentences of Section 65584.01 (b) reference two different  
          criteria that can result in conflicting calculations for whether  
          HCD must accept the population forecast of a council of  
          government (COG) in place of the population forecast of  
          Department of Finance (DOF).  Both criteria apply whether the  
          COG forecast is within a range of 3% of DOF's determination.   
          The 1st criterion compares COG and DOF "total" population.  The  
          2nd criterion compares change and difference in population  








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          "growth" between COG and DOF total population.  For example,  
          SCAG, during the current 5th 2013-2023 housing cycle, only met  
          the 1st criterion, which the Department allowed and prefers.  In  
          late 2015, HCD discussed criteria conflict and redundancy with  
          local government and housing advocate members of the Housing  
          Element Advisory Group, and that group agreed that the 2nd  
          criterion is redundant.  Removing the term "growth" used twice  
          in 3rd sentence would resolve this issue.  [Proposed by Senate  
          Transportation and Housing Committee]


          Referencing International Codes (Section 13).  Subdivision (a)  
          of California Health and Safety Code Section 17913 refers to  
          "the uniform codes" as the model codes in California.  However,  
          there are other model codes related to residential construction  
          in California (International Codes published by the  
          International Code Council) that need to be referenced.  The  
          amendment to subdivision (a) updates the reference to the codes  
          currently adopted in California.  [Proposed by Senate  
          Transportation and Housing Committee]


          Removes outdated building code requirements (Section 14 and 15).  
           California Health and Safety Code Section 17921.3 contains  
          requirements for water closets and urinals.  This section, by  
          its terms, would remain operative only until January 1, 2014, or  
          until the date on which the California Building Standards  
          Commission included standards in the California Building  
          Standards Code that conform to this section, whichever date is  
          later.  Mandatory provisions for water efficient plumbing  
          fixtures and plumbing fittings were adopted in the 2013  
          California Green Building Code (CALGreen) and in the 2013  
          California Plumbing Code.  This proposal repeals Section 17921.3  
          because there is no need for it to remain operative and to  
          continue to be printed in the code.  [Proposed by Senate  
          Transportation and Housing Committee] 


          Building Standards Commission submittals to the Office of  








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          Administrative Law (OAL) (Section 11, 20, and 22).  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.  [Proposed by Department of General Services]




          Removes outdated provisions (Section 15).  California Health and  
          Safety Code Section 17921.9 contains provisions for CPVC plastic  
                         piping and safe work practices.  This section became inoperative  
          on January 1, 1998, by its own terms.  This proposal removes  
          Section 17921.9 because there is no need for it to remain in the  
          code.  [Proposed by Senate Transportation and Housing Committee]




          Replaces outdated code references (Section 16).  California  
          Health and Safety Code Section 17922 contains provisions related  
          to the California Building Standards and other rules and  
          regulations adopted by HCD, and refers to "the uniform model  
          codes".  However, some of these uniform model codes are no  
          longer adopted in California.  The amendments to subdivisions  
          (a) and (b) update the language and refer to the model codes  
          currently adopted in California.  [Proposed by Senate  
          Transportation and Housing Committee]












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          Deletes a citation to an outdated building code reference  
          (Section 17).  California Health and Safety Code Section 17922.3  
          contains provisions governing moved residential structures.  The  
          language in this section refers to the 1991 Uniform Building  
          Code (UBC), Section 104, for the requirements for existing  
          buildings, including moved buildings.  The UBC is no longer a  
          model code in California; the requirements for existing  
          buildings in California are currently in the California Existing  
          Building Code (2015 IEBC is the model code).  This proposal  
          deletes that citation because there is no need for a reference  
          to code not adopted in California.  [Senate Transportation and  
          Housing Committee]




          Deletes a citation to an outdated building code reference  
          (Section 18).  California Health and Safety Code Section 17958.1  
          authorizes cities and counties to permit efficiency units, and  
          refers to the "Uniform Building Code" for the meaning of the  
          term "efficiency unit."  However, the Uniform Building Code is  
          no longer a model code in California; the definition of  
          "efficiency unit" and the section containing the requirements  
          for efficiency units are located in the California Building Code  
          (the International Building Code is the model code).  This  
          proposal deletes that citation because there is no need for a  
          reference to code not adopted in California.  [Proposed by  
          Senate Transportation and Housing Committee]




          Corrects a spelling error (Section 19).  California Health and  
          Safety Code Section 17959.1 (a) requires cities or counties to  
          administratively approve applications to install solar energy  
          systems.  The modifications to subdivision (a) corrects a  
          spelling error.  [Proposed by Senate Transportation and Housing  
          Committee]









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          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Coalition for Rural Housing


          Mammoth Lakes Housing


          Peoples' Self Help Housing


          Redwood Valley Little River Band of Pomo Indians


          United Native Housing Development Corporation




          Opposition


          None on file




          Analysis Prepared by:Anthony Lew / JUD. / (916)  
          319-2334











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