BILL NUMBER: AB 842 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 24, 2008
AMENDED IN ASSEMBLY JANUARY 17, 2008
AMENDED IN ASSEMBLY APRIL 23, 2007
AMENDED IN ASSEMBLY MARCH 29, 2007
INTRODUCED BY Assembly Member Jones
(Principal coauthors: Assembly Members DeSaulnier, Hancock, and
Lieu)
FEBRUARY 22, 2007
An act to add Section 14522.5 to the Government Code and,
to amend Sections 53545, 53545.13, and 53563 An act
to amend Sections 53545.13 and 53563 of the Health and Safety
Code, relating to local planning.
LEGISLATIVE COUNSEL'S DIGEST
AB 842, as amended, Jones. Regional plans: traffic reduction.
(1) Existing law authorizes the California Transportation
Commission to establish guidelines for the preparation of regional
transportation plans.
This bill would require the commission to update its guidelines
for the preparation of regional transportation plans, including a
requirement that each regional transportation plan provide for a 10%
reduction in the growth increment of vehicle miles traveled.
(2) Existing
Existing law , the Housing and Emergency
Shelter Trust Fund Act of 2006, authorizes the Department
of Housing and Community Development to administer the Infill
Incentive Grant Program of 2007, to fund selected capital improvement
projects that are an integral part of, or necessary to facilitate
the development of, a qualifying infill project or a qualifying
infill area, and specifies the conditions that a qualifying infill
project or qualifying infill area must meet to receive a capital
improvement project grant award. The department is also required to
review and rank applicants for the award of capital improvement
project grants based upon various priorities, including, among
others, project readiness, the depth and duration of the
affordability of the housing proposed for a qualifying infill project
or qualifying infill area, and the proximity of housing to parks,
employment or retail centers, schools, or social services.
This bill would additionally require the department to rank
applicants for the award of capital improvement project grants based
upon a reduction of vehicle miles traveled as a result of the
project, as specified.
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 14522.5 is added to the
Government Code, to read:
14522.5. The commission shall update its guidelines for the
preparation of regional transportation plans, including, but not
limited to, a requirement that each regional transportation plan
provide for a 10 percent reduction in the growth increment of vehicle
miles traveled.
SEC. 2. Section 53545 of the Health and Safety
Code is amended to read:
53545. The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
(a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
(A) (i) Three hundred forty-five million dollars ($345,000,000)
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. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
(ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
within 30 months of availability shall revert for general use in the
Multifamily Housing Program.
(B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
under the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "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. The
criteria for selecting projects shall give priority to the following:
(i) 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.
(ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
(C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
(D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except 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.
(E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
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. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
(F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a two-thirds vote of each house
of the Legislature. Any funds not encumbered for the purposes set
forth in this subparagraph within 30 months of availability shall
revert to the Self-Help Housing Fund created by Section 50697.1 and
shall be available for the purposes described in subparagraph (D).
(G) One hundred twenty-five million dollars ($125,000,000) 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. Any funds not encumbered for the purposes set forth
in this subparagraph within 30 months of availability shall revert
for general use in the CalHome Program.
(H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
(2) 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 subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
(3) 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 subdivision, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this subdivision. The first audit shall be
conducted no later than one year from voter approval of this part.
(4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
(b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
(1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
(A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
(B) Water, sewer, or other public infrastructure costs associated
with infill development.
(C) Transportation improvements related to infill development
projects.
(D) Traffic mitigation.
(2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
(c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
(d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.
SEC. 3. SECTION 1. Section 53545.13
of the Health and Safety Code is amended to read:
53545.13. (a) The Infill Incentive Grant Program of 2007 is
hereby established to be administered by the department.
(b) Upon appropriation of funds by the Legislature for the purpose
of implementing paragraph (1) of subdivision (b) of Section 53545,
the department shall establish and administer a competitive grant
program to allocate those funds to selected capital improvement
projects that are an integral part of, or necessary to facilitate the
development of, a qualifying infill project or a qualifying infill
area.
(c) A qualifying infill project or qualifying infill area for
which a capital improvement project grant may be awarded shall meet
all of the following conditions:
(1) Be located in a city, county, or city and county, in which the
general plan of the city, county, or city and county, has an adopted
housing element that has been found by the department, pursuant to
Section 65585 of the Government Code, to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
(2) Include not less than 15 percent of affordable units, as
follows:
(A) For projects that contain both rental and ownership units,
units of either or both product types may be included in the
calculation of the affordability criteria.
(B) (i) To the extent included in a project grant application, for
the purpose of calculating the percentage of affordable units, the
department may consider the entire master development in which the
development seeking grant funding is included.
(ii) Where applicable, an applicant may include a replacement
housing plan to ensure that dwelling units housing persons and
families of low or moderate income are not removed from the low- and
moderate-income housing market. Residential units to be replaced may
not be counted toward meeting the affordability threshold required
for eligibility for funding under this section.
(C) For the purposes of this subdivision, "affordable unit" means
a unit that is made available at an affordable rent, as defined in
Section 50053, to a household earning no more than 60 percent of the
area median income or at an affordable housing cost, as defined in
Section 50052.5, to a household earning no more than 120 percent of
the area median income. Rental units shall be subject to a recorded
covenant that ensures affordability for at least 55 years. Ownership
units shall initially be sold to and occupied by a qualified
household, and subject to a recorded covenant that includes either a
resale restriction for at least 30 years or equity sharing upon
resale.
(D) A qualifying infill project or qualifying infill area for
which a disposition and development agreement or other project- or
area-specific agreement between the developer and the local agency
having jurisdiction over the project has been executed on or before
the effective date of the act adding this section, shall be deemed to
meet the affordability requirement of this paragraph (2) if the
agreement includes affordability covenants that subject the project
or area to the production of affordable units for very low, low-, or
moderate-income households.
(3) Include average residential densities on the parcels to be
developed that are equal to or greater than the densities described
in subparagraph (B) of paragraph (3) of subdivision (c) of Section
65583.2 of the Government Code, except that a project located in a
rural area as defined in Section 50199.21 shall include average
residential densities on the parcels to be developed of at least 10
units per acre.
(4) Be located in an area designated for mixed-use or residential
development pursuant to one of the following adopted plans:
(A) A general plan adopted pursuant to Section 65300 of the
Government Code.
(B) A project area redevelopment plan approved pursuant to Section
33330.
(C) A regional blueprint plan as defined in the California
Regional Blueprint Planning Program administered by the Business,
Transportation and Housing Agency, or a regional plan as defined in
Section 65060.7 of the Government Code.
(5) For qualifying infill projects or qualifying infill areas
located in a redevelopment project area, meet the requirements
contained in subdivision (a) of Section 33413.
(d) In its review and ranking of applications for the award of
capital improvement project grants, the department shall rank the
affected qualifying infill projects and qualifying infill areas based
on the following priorities:
(1) Project readiness, which shall include all of the following:
(A) A demonstration that the project or area development can
complete environmental review and secure necessary entitlements from
the local jurisdiction within a reasonable period of time following
the submittal of a grant application.
(B) A demonstration that the eligible applicant can secure
sufficient funding commitments derived from sources other than this
part for the timely development of a qualifying infill project or
development of a qualifying infill area.
(C) A demonstration that the project or area development has
sufficient local support to achieve the proposed improvement.
(2) The depth and duration of the affordability of the housing
proposed for a qualifying infill project or qualifying infill area.
(3) The extent to which the average residential densities on the
parcels to be developed exceed the density standards contained in
paragraph (3) of subdivision (c).
(4) The qualifying infill project's or qualifying infill area's
inclusion of, or proximity or accessibility to, a transit station or
major transit stop.
(5) The proximity of housing to parks, employment or retail
centers, schools, or social services.
(6) The qualifying infill project or qualifying infill area
location's consistency with an adopted regional blueprint plan or
other adopted regional growth plan intended to foster efficient land
use.
(7) Applications for projects that are located in a city, county,
or city and county that has adopted a general plan that will reduce
the amount of growth increment in
vehicle miles traveled by at least 10 percent, and the project is
consistent with the plan.
(8) Applications for projects that are located in a region covered
by a council of governments that has adopted a transportation plan,
a regional transportation plan, a regional blueprint, or similar
document that will reduce the amount of
growth increment in vehicle miles traveled by at least 10
percent, and the project is consistent with the plan, blueprint, or
similar document.
(e) In allocating funds pursuant to this section, the department,
to the maximum extent feasible, shall ensure a reasonable geographic
distribution of funds.
(f) Funds awarded pursuant to this section shall supplement, not
supplant, other available funding.
(g) (1) The department shall adopt guidelines for the operation of
the grant program, including guidelines to ensure the tax-exempt
status of the bonds issued pursuant to this part, and may administer
the program under those guidelines.
(2) The guidelines shall include provisions for the reversion of
grant awards that are not encumbered within four years of the fiscal
year in which an award was made, and for the recapture of grants
awarded, but for which development of the related housing units has
not progressed in a reasonable period of time from the date of the
grant award, as determined by the department.
(3) The guidelines shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2
of the Government Code.
(h) For each fiscal year within the duration of the grant program,
the department shall include within the report to the Legislature,
required by Section 50408, information on its activities relating to
the grant program. The report shall include, but is not limited to,
the following information:
(1) A summary of the projects that received grants under the
program for each fiscal year that grants were awarded.
(2) The description, location, and estimated date of completion
for each project that received a grant award under the program.
(3) An update on the status of each project that received a grant
award under the program, and the number of housing units created or
facilitated by the program.
SEC. 4. SEC. 2. Section 53563 of the
Health and Safety Code is amended to read:
53563. (a) In ranking applications pursuant to this part, the
department shall, among other criteria, consider the extent to which
the project or development will increase public transit ridership and
minimize automobile trips.
(b) The department shall also grant bonus points to projects or
developments that are in an area designated by the appropriate
council of governments for infill development as part of a regional
plan.
(c) In ranking applications received pursuant to this section, the
department shall award a substantial preference to both of the
following:
(1) Applications for projects that are located in a city, county,
or city and county that has adopted a general plan that will reduce
the amount of growth increment in
vehicle miles traveled by at least 10 percent and the project is
consistent with the plan.
(2) Applications for projects that are located in a region covered
by a council of governments that has adopted a transportation plan,
a regional transportation plan, a regional blueprint, or similar
document that will reduce the amount of
growth increment in vehicle miles traveled by at least 10
percent and the project is consistent with the plan, blueprint, or
similar document.