BILL NUMBER: AB 2293 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 22, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
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, and declaring the urgency thereof, to
take effect immediately.
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 require the
department, upon request of a program award recipient
unable to secure a construction loan on the private market , to
contract with a construction lender to make permanent loan funds
available and to escrow, reserve , or set aside
permanent loan 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. The bill would require
the department, within 3 months of its effective date, to comply with
specified procedures and standards relating to the above
requirements.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. 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) The Department of Housing and Community Development may, until
June 30, 2013, do both of the following with funds
(b) For each award recipient unable to
secure a construction loan on the private market, the Department of
Housing and Community Development shall, upon request and until June
30, 2013, offer one or 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 placed
into escrow.
(2) Escrow, reserve, or set aside permanent loan funds for the
project as of the date of closing of the construction loan.
(c) On or before three months of the date this section takes
effect, the department shall do both of the following:
(1) Establish and publish online, standards and requirements for
award recipients and procedures for implementing one or both of the
options specified in paragraphs (1) and (2) of subdivision (b).
(2) Begin offering one or both of the options specified in
paragraphs (1) and (2) of subdivision (b). The department shall
establish an initial application deadline and, for recipients who
submit an application prior to that deadline and meet the department'
s threshold requirements, give priority to recipients in the order in
which they received their awards. Thereafter, the department shall
accept applications on an over-the-counter basis. The department may
work with more than one recipient at a time.
(c) (1)
(d) 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.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to expedite the construction of housing projects funded
with housing bond funds and stimulate the creation of construction
and permanent jobs, it is necessary that this act take immediate
effect.