BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
767 (Ammiano)
Hearing Date: 06/29/2009 Amended: 04/30/2009
Consultant: Mark McKenzie Policy Vote: T&H 11-0
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BILL SUMMARY: AB 767, an urgency measure, would extend the
timeframe for the use of specified Proposition 1C bond funds
prior to reversion to general housing-related programs.
Specifically, this bill would:
Require any unencumbered funds allocated for the Homeless
Youth Program to revert for general use in the Multifamily
Housing Program (MHP) by July 31, 2011, instead of within 30
months of availability.
Require any unencumbered funds allocated for the Building
Equity and Growth in Neighborhoods (BEGIN) Program to revert
for general use in the CalHome Program by November 17, 2011,
instead of within 30 months of availability.
Authorize the Department of Housing and Community Development
(HCD) to revert the funds to the MHP and CalHome Program
sooner if there is diminished demand.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Extend program funding Continue authorization of bond
expenditures Bond*
on Homeless Youth and BEGIN Programs
and delay reversion to MHP and CalHome
Programs
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* Delays a shift of unencumbered bond funds (approximately $24
million) for Homeless Youth Program purposes to general purposes
within the Housing Rehabilitation Loan Fund, and delays a shift
of unencumbered bond funds (approximately $40 million) from the
Building Equity and Growth in Neighborhoods Fund to the
Self-Help Housing Fund.
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STAFF COMMENTS:
Proposition 1C, the Housing and Emergency Shelter Trust Fund Act
of 2006, allocated $50 million in general obligation bond funds
for the housing needs of homeless and emancipated foster youth
under the Homeless Youth Program, which is administered by HCD
as a subcomponent of the omnibus MHP. Proposition 1C also
allocated $125 in bond funds for the BEGIN program, which
provides downpayment assistance loans to low or moderate income
homebuyers for the purchase of qualified homes. Proposition 1C
specifies that any funds allocated to the Homeless Youth and
BEGIN programs that are unencumbered within 30 months from first
availability will revert for general purposes in the MHP and
CalHome programs, respectively. Under current law,
approximately $24 million in Homeless Youth Program funds will
revert on July 31, 2009 and approximately $40 million in BEGIN
funds will revert on November 17, 2009.
AB 767 would extend the timeframes for the reversion of these
funds by two years, and allow HCD to revert the funds sooner if
the demand for these programs diminishes.
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SB 767 (Ammiano)
HCD is unable to fully encumber the bond funds made available
for these programs within the 30 month timeframe due to the
following unforeseen challenges: the current freeze on
application and commitment activity for bond-funded programs;
the State Treasurer's difficulties attracting investment in
California general obligation bonds; and the turmoil in the
financial markets that have slowed development activity in
general. HCD indicates that demand for both of these programs
is sufficient to fully encumber the remaining Homeless Youth and
BEGIN Program funds within the extended timeframes provided by
this bill, in accordance with the will of the voters.