BILL ANALYSIS
AB 1129
Page 1
ASSEMBLY THIRD READING
AB 1129 (Arambula)
As Amended January 18, 2008
Majority vote
HOUSING 5-2
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|Ayes:|Saldana, Bass, Hancock, | | |
| |Mullin, Swanson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Garcia, Sharon Runner | | |
| | | | |
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SUMMARY : Allows for the creation of the San Joaquin Valley
Regional Affordable Housing Trust (Trust). Specifically, this
bill :
1)Provides findings and declarations with regard to the
projected substantial population growth and the need for
affordable housing in the San Joaquin Valley.
2)Provides that it is the intent of the Legislature to establish
the Trust to assist communities in securing and distributing
affordable housing funds.
3)Establishes the Trust for the purposes of administering
federal, state, local and private resources for the
development of affordable housing. Additionally, the Trust
seeks to foster regional collaboration among local
governments, developers, financial and community organizations
to meet area affordable housing needs.
4)Requires the Trust do all of the following:
a) Establish a governing board which may include, but is
not limited to one member from each participating council
of government in the San Joaquin Valley (the San Joaquin
Valley include the Counties of Kern, Kings, Tulare, Fresno,
Madera, Merced, Stanislaus, and San Joaquin), three from
the California Partnership for the San Joaquin Valley, one
affordable housing advocacy organization, one nonprofit
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affordable housing developer, and one housing industry
representative;
b) Develop a region-wide strategy consistent with the
Regional Blueprint;
c) Raise funds from federal, state, local and private
organizations;
d) Establish a revolving loan account for funding
affordable housing in the jurisdictions of the trust
members. Make loans to entities seeking to build
affordable housing. Require loans to be contingent on
showing that the project is consistent with: housing
element; San Joaquin Regional Blueprint; all environmental
approvals; development permits; and local financial
commitment;
e) Develop criteria for project selection to include:
increased density, mixed income, infill, fair share
allocation, transit oriented development, proximity to
employment;
f) Require local public contributions;
g) Establish loan repayment terms;
h) Develop performance standards;
i) Provide technical assistance to members;
j) Assist in forming partnerships for affordable housing
demonstration projects;
aa) Prepare any required reports or other documentation;
bb) Develop a regional education campaign that promotes
higher density, mixed use, transit oriented development;
cc) Make recommendations to the Legislature and Governor to
eliminate obstacles to affordable housing; and,
dd) Report to the Business, Transportation and Housing
Agency as well as the Department of Housing and Community
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Development (HCD) on the activities of the Trust.
5)Requires the governing board to adopt a set of bylaws.
6)Allows up to five percent of trust assets to be used for
administrative costs.
7)Provides the governing board with authority to approve grant
applications as well as loan conditions.
FISCAL EFFECT : None
COMMENTS :
Background
In 2002, California voters approved Proposition 46, the $2.1
billion Housing and Emergency Shelter Trust Fund Act.
Proposition 46 provided funding for the following programs:
Multifamily Housing Program; Emergency Housing Assistance
Program; Supportive Housing; Farmworker Housing Grant Program;
CalHome Program; Local Housing Trusts; Code Enforcement Program;
California Homebuyer Downpayment Assistance Program; and Jobs
Housing Improvement Account.
Funds provided under Proposition 46 were mostly exhausted by the
end of 2006.
In November 2006, California voters approved Proposition 1C, the
Housing and Emergency Trust Fund Act of 2006. Proposition 1C
maintains funding provided under Proposition 46 for most, but
not all, of the programs noted above. One of the programs not
included in Proposition 1C was funding for local housing trusts.
Proposition 1C did include however, $100 million for the
Affordable Housing Innovation Fund to be used 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."
In 2007, the case was successfully made that local housing
trusts are inherently innovative, that is local housing leaders
can design individualized local programs to address affordable
housing needs in their communities. Therefore, $35 million was
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made available for local housing trusts to apply for grants.
One half of the $35 million is to be made available strictly for
new trusts. Additionally, when awarding grants to new trusts,
HCD is required to set aside funding for a period of 36 months
for trusts in counties with a population of less than 425,000.
This bill seeks to create the framework for a regional
affordable housing trust made up of the local governments within
the San Joaquin Valley.
Need for the bill
According to the author, approximately 50% of San Joaquin Valley
residents cannot afford a median priced two bedroom rental unit.
The author asserts that rural communities frequently do not have
the resources and sophistication to compete for federal, state
and private funds to support the construction of affordable
housing. Small rural communities lack the staff and experience
to plan for and manage affordable housing grant writing and
project administration.
The nature of rural areas prevents regional collaboration to
pool resources to create more affordable housing. Vast expanses
of farm land separate communities and Valley land use decisions
have historically been made on a community-by-community basis.
Existing law allows local agencies to enter into joint powers
agreements, which allows for the creation of affordable housing
trusts. In California there are 35 housing trusts, all of which
are county- or city- specific. However, asserts the author,
there is no mechanism to establish regional affordable housing
trusts that will promote state housing and community development
policies.
According to the author AB 1129 will reflect state housing goals
and policies. AB 1129 will require the Trust to prioritize
funding based on: 1) increased housing densities; 2) mixed
income development; 3) infill development; 4) fair share
allocation; 5) transit oriented development; and, 6) proximity
to employment. Additionally AB 1129 seeks to encourage
communities to collaborate.
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The author argues the creation of the Trust in statute gives the
Trust more institutional stability which should give local
agencies more flexibility to join or exit the Trust without the
need to reconstitute joint powers agreements.
Analysis Prepared by : Hubert Bower / H. & C.D. / (916)
319-2085
FN: 0003804