BILL NUMBER: AB 1129	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Arambula

                        FEBRUARY 23, 2007

   An act to add Section 53545.7 to, and to add Chapter 13.5
(commencing with Section 50845) to Part 2 of Division 31 of, the
Health and Safety Code, relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1129, as introduced, Arambula. Rural regional affordable
housing trust.
   The Housing and Emergency Shelter Trust Fund Act of 2006
authorizes the issuance of bonds in the amount of $2,850,000,000
pursuant to the State General Obligation Bond Law. Proceeds from the
sale of these bonds are required to be used to finance various
existing housing programs, capital outlay related to infill
development, brownfield cleanup that promotes infill development, and
housing-related parks.
   This bill would define a rural regional affordable housing trust
as an entity of regional government that (1) is established as a
joint powers authority; (2) has a voluntary membership consisting of
not less than 2 rural counties, and the cities within those counties,
and not less than 2 councils of governments serving the area of the
2 counties; (3) is established for the purpose of receiving and
administering federal, state, local, and private financial resources
made available to the trust to fund the development of affordable
housing projects in jurisdictions that are members of the trust; and
(4) has demonstrable, ongoing sources of dedicated revenue, including
taxes, fees, loan repayments, and private contributions.
   The bill would require the department, when reviewing and ranking
grant and loan applications for the funds made available under the
bond act, to add points to the scores of, or otherwise prioritize,
applications for projects located in a jurisdiction that is a member
of a rural regional affordable housing trust fund.
   The bill would establish the San Joaquin Valley Rural Regional
Affordable Housing Trust as a joint powers authority, limited in
membership to the cities, counties, and councils of government in the
Counties of Kern, Kings, Tulare, Fresno, Madera, Merced, Stanislaus,
and San Joaquin, for the purposes of fostering the regional
collaboration of San Joaquin Valley cities, counties, developers,
financial institutions, and community-based organizations to meet
affordable housing needs in the region.
   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.  The Legislature finds and declares all of the
following:
   (a) The cumulative population of the San Joaquin Valley, including
the Counties of San Joaquin, Stanislaus, Merced, Madera, Fresno,
Kings, Tulare, and Kern, currently totals 3.3 million people, which
is doubled every 30 years, and which is expected to grow to 5 million
people by the year 2025. This growth places extreme pressure on the
region and its communities to provide increased levels of housing for
the shelter of residents and workers.
   (b) The median household income of the valley is twelve thousand
dollars ($12,000) below the statewide median. Six of the eight
counties in the valley rank among the 13 lowest wage rate areas in
the state. Fifty percent of valley residents cannot afford a
median-priced two bedroom rental apartment, and rental rates have
recently increased by 24 percent. The population density of the
valley, which is 5.5 persons per acre, is significantly lower than
the statewide average.
   (c) The relatively large size of the valley region, and vast
expanses of undeveloped agricultural land that spatially separate one
valley community from another, have resulted in planning decisions
to accommodate growth on a community-by-community basis.
   (d) Changing social and economic circumstances spurred by changes
in mobility, labor costs, land and housing prices, and environmental
factors in the valley region, coupled with new housing bond money
made available under the Housing and Emergency Shelter Trust Fund Act
of 2006, and the formation of the California Partnership for the San
Joaquin Valley, has created a unique opportunity to establish a San
Joaquin Valley Rural Regional Affordable Housing Trust Fund to assist
valley communities in the provision of affordable housing for
residents and workers. The trust fund can provide the valley region
with the ways and means to cooperatively meet the housing goals set
forth in community general plans throughout the valley and described
in the San Joaquin valley Regional Blueprints.
   (e) Regional housing trusts established in rural areas throughout
the state can provide cohesive direction to meeting the affordable
housing needs of rural areas by aggregating resources to plan and
finance projects in rural communities that could not accomplish this
on their own.
   (f) It is therefore the intent of the Legislature to enable and
encourage the formation of Rural Regional Affordable Housing Trusts
in different areas of the state that can assist rural communities in
securing and distributing affordable housing development funding.
  SEC. 2.  Chapter 13.5 (commencing with Section 50845) is added to
Part 2 of Division 31 of the Health and Safety Code, to read:
      CHAPTER 13.5.  SAN JOAQUIN VALLEY RURAL REGIONAL AFFORDABLE
HOUSING TRUST


   50845.  (a) The San Joaquin Valley Rural Regional Affordable
Housing Trust is hereby established as a joint powers authority
pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1 of the Government Code, for the following
purposes:
   (1) Receiving and administering federal, state, local, and private
financial resources made available to the trust for the development
of affordable housing projects in communities that are members of the
trust.
   (2) Fostering the regional collaboration of cities, counties,
developers, and financial and community-based organizations in its
geographical area to meet affordable housing needs, as set forth in
the general plans of the members, and consistent with San Joaquin
Valley Regional Blueprints.
   (b) For the purposes of this chapter, the "trust" is the San
Joaquin Valley Rural Regional Affordable Housing Trust established
under subdivision (a).
   (c) Membership in the trust is voluntary and is limited to cities,
counties, and councils of government in the Counties of Kern, Kings,
Tulare, Fresno, Madera, Merced, Stanislaus, and San Joaquin.
   50845.2.  The trust shall do all of the following:
   (a) Establish a governing board, which may include, but is not
limited to, one representative of each member jurisdiction.
   (b) Develop a regionwide strategy for selecting and funding
affordable housing projects that is consistent with and helps
implement the goals and vision of the San Joaquin Valley Regional
Blueprints.
   (c) Apply for federal grants and state loans and grants, and
solicit and receive contributions from trust members and private
organizations, including, but not limited to, other trusts,
foundations, and financial institutions that are dedicated to funding
the operation of the trust and funding affordable housing grants and
loans made by the trust to affordable housing projects in the
region.
   (d) Create one or more revolving loan accounts for funding
affordable housing projects located in the jurisdictions of trust
members.
   (e) Make loans to nonprofit housing corporations, and other public
and private entities proposing to build affordable housing projects
in the region served by the trust. Loan funds shall be disbursed only
after the governing body of the jurisdiction within which the
project will be built has certified that the project is consistent
with the housing element of the community's general plan and the
applicable San Joaquin Valley Regional Blueprint. Certification shall
also include assurances that each project will have obtained all
environmental clearances and development permits, and that there is a
local financial commitment to the project.
   (f) Develop criteria for selecting projects for funding. Criteria
shall address the following issues:
   (1) Housing densities.
   (2) Mixed income development.
   (3) Infill development.
   (4) Fair share allocation.
   (5) Transit-oriented development.
   (6) Proximity to centers of employment.
   (g) Establish requirements for local financial project commitments
or matching contributions by local jurisdictions and other project
sponsors.
   (h) Establish loan repayment terms.
   (i) Develop benchmarks and performance standards to monitor the
progress of each project for which the trust provides funding. The
standards and benchmarks shall be developed in consideration of
benchmarks and standards that are used by other affordable housing
funding entities.
   (j) Provide technical assistance to members on affordable housing
projects.
   (k) Assist in assembling partnerships for affordable housing
demonstration projects of larger, master planned, mixed use elements,
with high-density design.
   (l) Prepare reports and supporting documentation that may be
required as a condition of receiving federal and state funding.
   (m) Develop and implement a regional education campaign that
promotes the benefits of higher density, mixed use, public
transit-oriented communities that are responsive to local and state
environmental policies.
   (n) Make recommendations to the Governor and the Legislature for
regulatory reform that can eliminate obstacles to providing
affordable housing.
   (o) Commencing on January 1, 2010, make a biennial report to the
Secretary of Business, Transportation and Housing and the Director of
Housing and Community Development on its activities during the
preceding two fiscal years, and the impacts those activities have had
in providing affordable housing in the region, in fostering a
regional approach to meeting affordable housing needs, and in
implementing the housing goals of the San Joaquin Valley Regional
Blueprints.
   50845.4.  The governing board shall adopt a set of bylaws that
shall address, but are not limited to, all of the following issues:
   (a) Organizational structure of the trust.
   (b) The dues structure.
   (c) The voting structure.
   (d) Member contribution requirements.
   (e) Annual election of officers.
   (f) A mission statement that sets forth a purpose to foster the
regional collaboration of San Joaquin Valley cities, counties,
developers, financial institutions, and community-based organizations
to meet affordable housing needs in the region.
   50845.6.  The trust may use funds that it receives, other than
federal and state housing grants, to pay for its operations.
   50845.8.  The trust shall utilize the staff services of member
jurisdictions to carry out its functions to the maximum feasible
extent. However, the trust may hire staff and consultants for
specialized purposes, such as conducting studies and grant writing.
   50846.  The governing board may form advisory committees, as
deemed necessary.
   50846.2.  The governing board shall be the approving authority for
grant applications submitted for approval by the trust, and shall
set the terms for receiving grants and loans made to the trust. The
board shall also approve the conditions under which the trust may
make loans to affordable housing project applicants.
  SEC. 3.  Section 53545.7 is added to the Health and Safety Code, to
read:
   53545.7.  (a) For the purposes of this section, a rural regional
affordable housing trust is an entity of regional government that
meets all of the following criteria:
   (1) Has a voluntary membership consisting of not less than two
rural counties, and the cities within those counties, and not less
than two councils of governments serving the area of the two
counties. In the case of Imperial County, the membership may consist
of not less than three cities within the county and the council of
governments serving the county.
   (2) Is established as a joint powers authority, pursuant to
Article 1 (commencing with Section 6500) of Chapter 5 of Division 7
of Title 1 of the Government Code.
   (3) Is established for the purpose of receiving and administering
federal, state, local, and private financial resources made available
to the trust to fund the development of affordable housing projects
in jurisdictions that are members of the trust.
   (4) Has bylaws that include, but are not limited to, all of the
following:
   (A)  A mission statement that sets forth a purpose to foster the
regional collaboration of cities, counties, developers, financial
institutions, and community-based organizations in the geographical
area served by the trust, to meet affordable housing needs in the
region.
   (B) Provisions establishing a governing board that includes not
less than one representative from each member jurisdiction.
   (C) A requirement that each member jurisdiction will make a
minimum financial contribution to the trust.
   (5) Has an adopted set of funding priorities that emphasize all of
the following:
   (A) Increased housing densities.
   (B) Mixed income development.
   (C) Infill development.
   (D) Fair share allocation.
   (E) Transit-oriented development.
   (F) Proximity to centers of employment.
   (6) Has demonstrable, ongoing sources of dedicated revenue,
including, but not limited to, taxes, fees, loan repayments, and
private contributions.
   (b) In order to encourage communities in rural areas to
collaborate in the provision of affordable housing, the department,
when reviewing and ranking grant and loan applications for the funds
made available under Section 53545, shall add points to the scores
of, or otherwise prioritize, applications for projects located in a
jurisdiction that is a member of a rural regional affordable housing
trust fund.