BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1076|
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                                 THIRD READING


          Bill No:  AB 1076
          Author:   Jones (D)
          Amended:  9/11/09 in Senate
          Vote:     21

           
           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Infill Incentive Grant Program of 2007

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Housing and  
          Community Development, with respect to grant awards  
          affected by the requirement that a redevelopment agency  
          remit a specified amount of funds, to include guidelines,  
          among the adopted guidelines, for the reversion of grant  
          awards that are not encumbered within a reasonable period  
          of time, as specified.

           ANALYSIS  :    Existing law establishes the Infill Incentive  
          Grant Program of 2007 to be administered by the Department  
          of Housing and Community Development (HCD) and, upon  
          appropriation by the Legislature, requires HCD to establish  
          and administer a competitive grant program to allocate  
          funds to selected capital improvement projects that are an  
          integral part of, or necessary to facilitate the  
          development of, a qualifying infill project or qualifying  
          infill area, as defined. 

          Existing law requires HCD to adopt guidelines for the  
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          operation of the grant program, and requires the guidelines  
          to include provisions for the reversion of grant awards  
          that are not encumbered within four years of the fiscal  
          year in which an award was made.

          The Budget Act of 2009 appropriates $190,000,000 for local  
          assistance to the department from the Regional Planning,  
          Housing and Infill Incentive Account of 2006, and requires  
          that the funds appropriated be available for liquidation of  
          encumbrances until June 30, 2014. 

          The Budget Act of 2007 appropriates $300,000,000 for local  
          assistance to the department payable from the Regional  
          Planning, Housing and Infill Incentive Account, and  
          requires the funds appropriated to be available for  
          liquidation of encumbrances until June 30, 2012.

          Existing law requires a redevelopment agency, for the  
          2009-10 fiscal year, to remit a specified amount of funds,  
          as determined by the Director of Finance, to the county  
          auditor for deposit in the Supplemental Educational Revenue  
          Augmentation Fund within the county treasury prior to May  
          10, 2010.

          This bill:

          1.Requires HCD, with respect to grant awards affected by  
            the requirement that a redevelopment agency remit a  
            specified amount of funds, to include guidelines, among  
            the adopted guidelines, for the reversion of grant awards  
            that are not encumbered within a reasonable period of  
            time, to be determined by HCD.

          2.Revises the Budget Act of 2009 and the Budget Act of 2007  
            to require the department, with respect to grant awards  
            affected by the requirement that a redevelopment agency  
            remit a specified amount of funds, to develop guidelines  
            for the reversion of grant awards that are not encumbered  
            within a reasonable period of time, to be determined by  
            HCD.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No








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          JJA:cm  9/11/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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