BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 725
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 725 (Lieber and DeVore)
          As Amended August 11, 2008
          Majority vote
           
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          |ASSEMBLY:  |52-20|(January 29,    |SENATE: |24-14|(August 13,    |
          |           |     |2008)           |        |     |2008)          |
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           Original Committee Reference:    H. & C.D.  

           SUMMARY  :  Requires the Department of Housing & Community  
          Development (HCD), on or before April 1, 2009, to convene the  
          first meeting a working group of subsidized affordable housing  
          providers to draft a uniform subsidized affordable housing  
          application and for HCD to post the application on its website.   


           The Senate amendments  : 

          1)Declare it is the intent of the Legislature to create a  
            uniform affordable housing rental application and make  
            findings regarding the benefits that such an application will  
            provided to low- and moderate- income renters and subsidized  
            affordable housing providers. 

          2)Require HCD, on or before April 1, 2009, to convene the first  
            meeting of a working group of organizations representing  
            subsidized affordable housing providers to draft a uniform  
            subsidized affordable housing application. 

          3)Provide that the working group may organize itself as it  
            chooses and schedule future meetings.

          4)Provide HCD is not required to participate in the working  
            group or pay the expenses, including travel, of any person  
            attending a meeting of the working group.

          5)Require HCD to do all of the following if the working group  
            develops a draft uniform application

             a)   Review the draft to determine if it complies with  
               departmental policy and if not return it to the working  
               group for any necessary changes;








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             b)   Provide the draft of the application to the Department  
               of Fair Employment and Housing (DFEH) who will review the  
               draft for compliance with the fair housing statutes it  
               enforces and make any necessary changes and return the  
               draft to HCD;

             c)   Add a statement to the application indicating that it  
               can be downloaded in formats accessible to people with  
               disabilities and the website from which it can be  
               downloaded; 

             d)   Provide the completed uniform application to the State  
               Council of Developmental Disabilities which will do all of  
               the following:


               i)     Select a contractor to be paid up to $4,000 to  
                 develop two formats of the uniform application both in  
                 English, with a large font, one with color illustrations  
                 and one without;

               ii)    Require the contractor to conduct at least one test  
                 of the application with a focus group of persons with  
                 disabilities; and, 

               iii)   Review and approve the accessible formats developed  
                 by the contractor and provide them to HCD. 

             e)   Post the final application on its Web site; and, 

             f)   Reconvene the working group as necessary to draft  
               revisions of the application to comply with changes in law  
               or the requirements of federal or state funding agencies. 

          6)Require the California Tax Credit Allocation Committee (TCAC)  
            and the California Housing Finance Agency (CalHFA) to award  
            additional points to future funding applicants who agree to  
            distribute and accept the uniform application. 

          7)Make the provisions of the bill regarding the creation of  
            accessible formats of the application inapplicable if the  
            State Council of Development Disabilities does not produce the  
            accessible formats of the application because of financial  
            limitations.  








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          8)Provide that HCD's adoption of the uniform rental housing  
            application is not to be subject to the Administrative  
            Procedure Act and states that nothing in the bill authorizes  
            HCD to adopt or amend any regulation.

           AS PASSED BY THE ASSEMBLY  , this bill created a mandatory  
          universal rental housing application to be used if the housing  
          provider receives certain state financial assistance.   
          Specifically,  this bill  :    

          1)Provided that a rental housing provider that receives a grant  
            or loan from HCD or CalHFA, or tax credits or bond authority  
            must provide a universal rental housing application.

          2)Required HCD to develop a universal rental application by  
            April 1, 2009.

          3)Required the housing provider to make the application  
            available on its Web site and to make it available to the  
            public.

          4)Required certain specified information to be included such as  
            name, age, student status, not less than two years housing  
            history, detailed income information including income and  
            employment history for the past five years.

          5)Required HCD to consider the format used by the Tax Credit  
            Allocation Committee.

          6)Required a 30-day review and public comment prior to adoption  
            of the application.

          7)Required the application to be made available to tenants, by  
            housing providers, on and after July 1, 2009.

          8)Required HCD, CalHFA, Tax Credit Allocation Committee (TCAC),  
            and California Debt Limit Allocation Committee (CDLAC) to  
            notify housing providers of the new universal application as  
            well as any future revisions.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.
           
           COMMENTS  :  Because there is such an acute shortage of affordable  








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          housing in California, low-income renters seeking housing  
          assistance often must apply to several providers simultaneously.  
           According to the author, it can be challenging to determine  
          whether vacancies exist or to even locate an application. When  
          there are vacancies, applicants must fill out a different  
          application for each development, even though nearly identical  
          information is requested for each unit.

          According to the author, this lack of uniformity increases the  
          amount of time and inconvenience that prospective renters face.   
          A standardized application, argues the author, would streamline  
          the process of finding affordable housing.

          Supporters note that this bill would allow renters to complete  
          just one application which can be used to apply at multiple  
          communities, ensuring that prospective residents have the best  
          possible opportunity to access housing.

          The Senate amendments to this bill require HCD to convene the  
          first meeting of a working group of subsidized affordable  
          housing providers to develop a uniform subsidized housing  
          application but HCD is not required to participate in the  
          working group.  After the first meeting it is up to the working  
          group members to continue to meet and provide a draft of the  
          application to HCD. HCD and DEFH are required to review the  
          draft application and provide comments.  The final application  
          must be posted on HCD's website in a format that is accessible  
          to persons with disabilities.   CalHFA and TCAC must award  
          additional points to future funding applicants that agree to use  
          the uniform application. 


           Analysis Prepared by  :    Hubert Bower/Lisa Engel / H. & C.D. /  
          (916) 319-2085 


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