BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1129|
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THIRD READING
Bill No: AB 1129
Author: Arambula (D)
Amended: 7/1/08 in Senate
Vote: 21
SEN. TRANSPORTATION & HOUSING COMMITTEE : 11-1, 6/17/08
AYES: Lowenthal, Ashburn, Cedillo, Corbett, Harman,
Hollingsworth, Kehoe, Oropeza, Simitian, Torlakson, Yee
NOES: McClintock
NO VOTE RECORDED: Maldonado
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Local Housing Trust Fund Matching Grant Program
SOURCE : San Joaquin Valley Regional Housing Trust
DIGEST : This bill makes various changes to the Local
Housing Trust Fund Matching Grant Program to facilitate
access to program funds for newly established housing
trusts in smaller counties.
ANALYSIS : In November 2006, California voters approved
Proposition 1C, the $2.85 billion Housing and Emergency
Shelter Trust Fund Act of 2006. The bond act included $100
for the Affordable Housing Innovation Fund and required
that the Legislature program the specific uses and
eligibility requirements for these funds. SB 586 (Dutton),
CONTINUED
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Chapter 652, Statutes of 2007, allocated these funds to
four separate programs, including $35 million for the Local
Housing Trust Fund Matching Grant (LHTF) program,
administered by the Department of Housing and Community
Development (HCD).
Under existing law, the LHTF program matches contributions
to local housing trust funds. To be eligible for matching
funding, a local housing trust fund must receive
contributions for at least five years from private or
governmental sources that are not otherwise restricted for
housing programs. The grantee must also have an
HCD-approved housing element, or if a non-profit, fund
projects located in communities with approved elements.
The grant from HCD matches the local contributions on a
dollar-for-dollar basis at a minimum of $1 million and up
to a maximum of $2 million. HCD must receive adequate
documentation that the local matching funds have been
deposited in the fund and of the source of these funds.
The local housing trusts may in turn use program funds to
support emergency shelters, rental housing, and for-sale
housing affordable to households ranging from extremely
low-income to moderate-income. Under SB 586, half of the
$35 million allocated to this program by Proposition 1C is
reserved for newly established housing trust funds, as
defined by HCD. Within this setaside for newly established
housing trust funds is an additional setaside for 36 months
of an amount to be determined by HCD for trust funds in
counties with a population of less than 425,000 persons.
This bill:
1.Requires newly established trusts to provide adequate
documentation, as determined by HCD, that an ordinance
imposing or dedicating a tax or fee has been enacted or
that the applicant has adopted a legally binding
commitment that the matching funds will be deposited upon
the approval of the application.
2.Lowers the minimum matching grant for newly established
housing trust funds in counties with a population of less
than 425,000 persons from $1 million to $500,000.
3.Specifies that the decennial United States Census for the
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year 2000 be used to determine whether or not a county
has less than 425,000.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/25/08)
San Joaquin Valley Regional Housing Trust (source)
California Coalition for Rural Housing
Council of Fresno County Governments
Housing CA
Merced County
Self-Help Enterprises
The Affordable Housing Collaborative
The Housing Trust of Santa Clara County
ARGUMENTS IN SUPPORT : According to the author's office,
"Housing trusts to be established in smaller, rural
counties such as those that are members of the SJF Trust,
face disadvantages in winning state grants. Those
disadvantages include difficulties in raising local funding
to match grants, dollar for dollar, and obtaining those
local funds prior to the award of a state grant.
"AB 1129 addresses those problems by lowering the minimum
grant amount for smaller, newly established trusts, and
requiring documentation of a pledge of local matching
funds."
JJA:cm 8/5/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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