BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 767
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 767 (Ammiano) - As Amended:  April 30, 2009 

          Policy Committee:                              Housing and  
          Community Development                         Vote: 7-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill provides a three-year extension for the Homeless Youth  
          Program and the Building Equity and Growth in Neighborhoods  
          (BEGIN) program authorized by the Proposition 1C:  Housing and  
          Emergency Shelter Trust Fund Bond Act of 2006.  Specifically,  
           this bill  :  

          1)Extends funding authorized by Proposition 1C for the Homeless  
            Youth Program to July 31, 2012 after which all unencumbered  
            funds shall revert to general use for the Multifamily Housing  
            Program (MHP). Also extends funding authorized for the BEGIN  
            program to August 17, 2012 after which all unencumbered funds  
            shall revert to the CalHome Program.

          2)Allows the Department of Housing and Community Development  
            (HCD) to determine if funds should revert sooner for either  
            program due to diminished demand. 

           FISCAL EFFECT  

          Three-year extension for unspent bond funds authorized for the  
          Homeless Youth ($24 million) and the BEGIN ($40 million)  
          programs, which under existing law would revert to accounts used  
          for more general housing-related purposes.

           COMMENTS  
           
          Purpose  . This bill provides additional time for funds to be  
          spent under the Homeless Youth Program and BEGIN program.  
          Proposition 1C appropriated $50 million for the development of  
          housing for homeless youth under MHP, and $125 million for down  








                                                                  AB 767
                                                                  Page  2

          payment assistance for homebuyers in communities that reduce  
          regulatory barriers to housing production under the BEGIN  
          program.  For both of these appropriations, Proposition 1C  
          specified that any funds not committed to projects within 30  
          months of availability were to revert to other, related HCD  
          programs.  

          Demand for both programs has been substantial, but not  
          sufficient to use all of the available funds.  In addition, the  
          current freeze on application and commitment activity for  
          bond-funded programs is effectively truncating the 30 month  
          period, and the turmoil in the financial markets is slowing  
          development activity in general.   As a result, approximately  
          $24 million of Homeless Youth funding is scheduled to revert to  
          the general component of MHP on July 31, 2009.   Similarly, $40  
          million is scheduled to revert from BEGIN to CalHome on August  
          17, 2009.
           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081