BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING


          SB  
          944 (Committee on Transportation and Housing)


          As Amended  August 1, 2016


          2/3 vote


          SENATE VOTE:  37-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Housing         |7-0  |Chiu, Steinorth,      |                    |
          |                |     |Burke, Chau, Beth     |                    |
          |                |     |Gaines, Lopez, Mullin |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Judiciary       |10-0 |Mark Stone, Wagner,   |                    |
          |                |     |Alejo, Chau, Chiu,    |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Holden, Maienschein,  |                    |
          |                |     |Ting                  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |








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          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Makes non-controversial changes to sections of law  
          relating to housing.  


          EXISTING LAW:  Various sections of law relating to housing.    


          FISCAL EFFCT:  According to the Senate Appropriaitons Committee,  
          this bill would have unknown cost pressures related to the  
          expansion of allowable uses for Mobilehome Park Rehabilitation  
          and Resident Ownership Program (MPRROP) funds.  Authorizing  
          loans for replacement of a low-income homeowner's mobilehome is  
          not likely to have a significant impact on available funding.   
          Minor costs to the Department of Housing and Community  
          Development (HCD) to revise MPRROP regulations to provide for  
          mobilehome replacement loans.  The remaining provisions are not  
          expected to have a significant state fiscal impact.


          COMMENTS:  The Senate Committee on Transportation and Housing is  
          authoring this year's housing omnibus bill as a cost-effective  
          way of making a number of minor, non-controversial changes to  
          statute at one time.  All provisions of the bill have been  
          reviewed and vetted by a stakeholder group that includes  
          representatives of the majority and minority policy consultants  
          in both the Senate and the Assembly.  There is no known  








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          opposition to any of the items in the bill.  If issues arise  
          that cannot be resolved, the provision of concern will be  
          deleted from the bill. 


          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)Clarification to Mutual Self-Help Housing (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 non-profits that specifically operate  
            this mutual self-help program are not acting as contractors.   
            This proposal will codify a practice that has been in place  
            for the past 50 years and insure that the program can continue  
            to assist rural families.  [California Coalition for Rural  
            Housing]


          2)Mobile home disposal:  Minor program changes (Sections 2, 3,  
            and 20).  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  








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            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]


          3)Transitional Housing Misconduct Act:  Move 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  
            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]


          4)Definition of "electric vehicle charging station" and  
            "charging stations":  Correct code reference (Section 5).   
            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  








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            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.  [Department of General Services]


          5)Common interest developments:  Resolve 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.  [Educational Community for Homeowners (ECHO)]


          6)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.  [Educational Community for  
            Homeowners (ECHO)]


          7)Common interest developments:  Annual budget reports (Section  
            8).  Last year, the legislature passed and the Governor signed  
            AB 596 (Daly), Chapter 184, Statutes of 2015, 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  








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            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 (CAI-CLAC)]


          8)Common interest developments:  Correct 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.  [Community Associations Institute-California  
            Legislative Action Committee (CAI-CLAC)]


          9)Housing discrimination:  Update 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.  [Western  
            Manufactured Housing Communities Association]


          10)Eliminate conflicting methodology for HCD determination of  
            regional housing need (Section 11).  The second and third  
            sentences of Section 65584.01(b) below 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,  
            Southern California Association of Governments (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 issue.  [Senate Transportation  
            and Housing Committee]


          11)State notice law protections:  Clarify reference (Section  
            12).  The state notice law (Government Code Section 65863.10)  
            applies to a variety of publicly supported affordable  
            multifamily housing types.  SB 1328 (Vincent) 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]




          1)Referencing International Codes (Section 13).  Subdivision (a)  
            of California Health and Safety Code Section 17913 refers to  








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            "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.  [Senate Transportation  
            and Housing Committee]




          2)Remove 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.   
            [Senate Transportation and Housing Committee]


          12)Building Standards Commission submittals to the Office of  
            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  








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            consistency with existing law.  [Department of General  
            Services]




          3)Remove outdated provisions (Section 15).  California Health  
            and Safety Code Section 17921.9 contains provisions for  
            chlorinated polyvinyl chloride (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.   
            [Senate Transportation and Housing Committee]




          4)Replace 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.  [Senate  
            Transportation and Housing Committee]




          5)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  








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            code).  This proposal deletes that citation because is no need  
            for a reference to code not adopted in California.  [Senate  
            Transportation and Housing Committee]




          6)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  
            is no need for a reference to code not adopted in California.   
            [Senate Transportation and Housing Committee]




          7)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.  [Senate Transportation and Housing Committee]


          13)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 or defined in existing language.   
            As such, tribes have never participated in HCD's programs.   








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            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]


          14)Mobilehome Park Rehabilitation and Resident Ownership  
            Program:  Clarify intent (Section 26).  AB 225 (Chau), 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 legislation.  [Assembly  
            Housing and Community Development Committee]




          Analysis Prepared by:                                             
                          Lisa Engel / H. & C.D. / (961) 319-2085  FN:  
          0003938