BILL NUMBER: AB 304 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 21, 2003
AMENDED IN SENATE JUNE 24, 2003
AMENDED IN ASSEMBLY APRIL 22, 2003
INTRODUCED BY Assembly Member Mullin
FEBRUARY 6, 2003
An act to amend Section Sections 51505 and
53533 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 304, as amended, Mullin. Housing: downpayment assistance.
Under existing law, the California Housing Finance Agency
administers a downpayment assistance program under which the amount
of downpayment assistance may not exceed 3% of the home sales price.
The Housing and Emergency Shelter Trust Fund Act of 2002, also
allocates certain housing bond revenues for downpayment assistance
to teachers and school personnel under programs operated by the
agency, with assistance limited to $7,500 or 3% of the purchase
price, and to low-income first-time homebuyers who, as
documented to the agency by a nonprofit organization certified and
funded to provide homeownership counseling, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization and have received homeownership counseling
from the nonprofit organization.
This bill would limit , authorize the
agency, as specified, to establish higher assistance limits for that
downpayment assistance to teachers and school personnel. The bill
would limit, to specified neighborhoods identified by nonprofit
organizations, the downpayment assistance under that act for
low-income first-time homebuyers , homebuyers
and would require 50% of the funds
available for that purpose under the act to be available for
downpayment assistance not to exceed 6% of the home sales price for a
specified period. The bill would also make conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51505 of the Health and Safety Code is
amended to read:
51505. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) Downpayment assistance for purposes of this section shall be
subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans where payment of principal
and interest is deferred until the time that the home is sold or
refinanced. This downpayment assistance shall meet the requirements
of subdivisions (d) and (e) of Section 51504.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may,
with the concurrence of the California Debt Limit Allocation
Committee, establish higher assistance limits where necessary to
ensure sufficient assistance to allow program participation in high
cost areas.
SEC. 2. Section 53533 of the Health and Safety Code is
amended to read:
53533. (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
(1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
Chapter 5 (commencing with Section 50600) of Part 2.
(B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any
applicable per-unit or project loan limits and may be in the form of
a grant. Service providers shall ensure that services are available
to project residents on a priority basis over the general public.
(C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to Section
50843.
(D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
(i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within
one mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
(ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
(iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
(iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
(v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
(E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
(2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
(3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing projects for individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
The criteria for selecting projects should give priority to
supportive housing for people with disabilities who would otherwise
be at high risk of homelessness where the applications represent
collaboration with programs that meet the needs of the person's
disabilities. The department may provide for higher per-unit loan
limits as reasonably necessary to provide and maintain rents
affordable to those individuals and households. For purposes of this
paragraph, "supportive housing" means housing with no limit on
length of stay, that is occupied by the target population, as defined
in subdivision (d) of Section 53260, and that is linked to onsite or
offsite services that assist the tenant to retain the housing,
improve his or her health status, maximize his or her ability to
live, and, when possible, work in the community.
(4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
(A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations.
(B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
(C) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the Joe Serna, Jr. Farmworker Housing Grant Program.
(5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
(A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1.
(B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
(C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
(6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code. If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
(7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
(B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600).
(C) (i) Twelve million five hundred thousand dollars ($12,500,000)
shall be reserved for downpayment assistance to low-income
first-time homebuyers who, as documented to the agency by a nonprofit
organization certified and funded to provide homeownership
counseling by a federally funded national nonprofit corporation, are
purchasing a residence in a community revitalization area targeted by
the nonprofit organization and who has received homeownership
counseling from the nonprofit organization. Community revitalization
areas shall be limited to targeted neighborhoods identified by
qualified nonprofit organizations as those neighborhoods in need of
economic stimulation, renovation, and rehabilitation through efforts
that include increased homeownership opportunities for low-income
families.
(ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
(iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
(D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
(E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
(8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
(b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.