BILL NUMBER: AB 2293 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Torres
FEBRUARY 18, 2010
An act to amend Section 50675.1 of the Health and Safety
Code, An act relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2293, as amended, Torres. Multifamily Housing Program:
bond proceeds: Housing: construction loans.
Existing law establishes the Multifamily Housing Program, the Joe
Serna, Jr. Farmworker Housing Grant Program, and the Transit-Oriented
Development Implementation Program, administered by the Department
of Housing and Community Development, which provide assistance for
multifamily housing, farmworker housing, and development of high
density uses within close proximity to transit stations,
respectively.
This bill would authorize the department, until June 30, 2013, and
for purposes of loan awards made pursuant to these programs, to
contract with a construction lender to make permanent loan funds
available and to reserve or set aside funds for a project as of the
date of closing of the construction loan, as specified. The bill
would authorize the department to charge a fee sufficient to cover
the cost of performing duties associated with implementing these
provisions.
Existing law establishes the Emergency Shelter Trust Fund Act of
2006 which authorizes the issuance of bonds in the amount of
$2,850,000,000 pursuant to the State General Obligation Bond Law.
Proceeds from the sale of these bonds are used to finance, among
other programs, the Multifamily Housing Program, which is
administered by the Department of Housing and Community Development.
Existing law requires that assistance provided to a project pursuant
to the program be provided in the form of a deferred payment loan to
pay for the specified eligible costs of development.
This bill would require that assistance provided to a project
pursuant to the bond act include, but not be limited to, short-term
loans used for construction.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) This section shall apply to loan
awards made pursuant to all of the following programs:
(1) The Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2 of Division 31 of the
Health and Safety Code.
(2) The Joe Serna, Jr. Farmworker Housing Grant Program authorized
by Section 50517.5 of the Health and Safety Code, including, but not
limited to, subdivision (c) of Section 50517.10 of the Health and
Safety Code.
(3) The Transit-Oriented Development Implementation Program
authorized by Part 13 (commencing with Section 53560) of Division 31
of the Health and Safety Code.
(b) If the Department of Housing and Community Development has
determined that it has sufficient funds to meet commitments to
projects that have relied on a department subordination
agreement-estoppel certificate to start construction, the department
may, until June 30, 2013, do both of the following with funds
available to the programs specified in subdivision (a):
(1) Contract with a construction lender to make permanent loan
funds available for a project during the construction period, in
which case the department shall, in conjunction with the construction
lender, engage a construction inspector or utilize the reports of
the construction inspector engaged by the lender.
(2) Reserve or set aside funds for a project as of the date of
closing of the construction loan. The department shall establish a
procedure for determining which projects qualify to have funds
escrowed. The procedure shall consider the amount of time needed to
close the funding, the existence of local approvals for the project,
and commitments from other funding sources.
(c) (1) The department may not exercise its authority pursuant to
this section for any project that received an award after December
18, 2008, until the department has received or obtained access to
bond funds sufficient to fund all projects within the same class of
tax-exempt or taxable bond projects that received an award prior to
December 18, 2008.
(2) If the department exercises its authority pursuant to this
section, it shall provide the loans and funds specified in paragraphs
(1) and (2) of subdivision (b) to program awardees in the order in
which they received their awards.
(3) The department may charge a fee sufficient to cover the cost
of performing the duties associated with the implementation of this
section.
SECTION 1. Section 50675.1 of the Health and
Safety Code is amended to read:
50675.1. (a) This chapter shall be known and may be cited as the
Multifamily Housing Program.
(b) Assistance provided to a project pursuant to this chapter
shall be provided in the form of a deferred payment loan to pay for
the eligible costs of development as hereafter described.
(c) Except as provided in paragraph (3), on and after January 1,
2008, of the total assistance provided under this chapter, the
percentage that is awarded for units restricted to senior citizens,
as defined in paragraph (1) of subdivision (b) of Section 51.3 of the
Civil Code, shall be proportional to the percentage of lower income
renter households in the state that are lower income elderly renter
households, as reported by the federal Department of Housing and
Urban Development on the basis of the most recent decennial census
conducted by the United States Census Bureau.
(1) The department shall be deemed to have met its obligation
under this subdivision if the assistance awarded is not less than 1
percent below the proportional share.
(2) This subdivision does not require the department to provide
loans to projects that fail to meet minimum threshold requirements
under subdivision (b) of Section 50675.7.
(3) Assistance for projects meeting the definitions in paragraphs
(2) and (3) of subdivision (e) of Section 11139.3 of the Government
Code and subdivisions (c) and (d) of Section 53260 shall be excluded
from the total assistance calculation under this subdivision.
(4) The department shall determine the time period over which it
will measure compliance with this section, but that period shall not
be less than one year or two funding cycles, whichever period is
longer.
(5) If, at the end of the time period determined by the
department, the total amount of funding for which sponsors have
submitted qualified applications is lower than the proportional
share, the department may award the remaining funds to units that are
not restricted to senior citizens.
(6) The department's annual report to the Legislature submitted
under Section 50408 shall include a breakdown of funding awards
between units restricted to senior citizens and units that are not
age-restricted.
(d) This chapter shall be administered by the department and the
department shall establish the terms upon which loans may be made
consistent with the provisions of this chapter.
(e) In addition to the other forms of assistance hereafter
described, assistance provided to a project pursuant to Section 53545
shall include, but not be limited to, short-term loans used for
construction.