BILL NUMBER: AB 2293	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2010
	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 18, 2010

   An act relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2293, as amended, Torres. 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.
   Vote: majority. Appropriation: no. Fiscal committee: 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   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.  
placed into escrow. 
   (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.