BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 194|
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                                 THIRD READING


          Bill No:  SB 194
          Author:   Florez (D)
          Amended:  1/7/10
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-2, 4/29/09
          AYES:  Wiggins, Kehoe, Wolk
          NOES:  Cox, Aanestad


           SUBJECT  :    Community Equity Investment Act of 2010

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Community Equity Investment  
          Act of 2010 and specifies how funds received under the  
          federal State Community Development Block Grant Program are  
          expended at the local government level.

           ANALYSIS  :    

           Existing law
           
          The Community Development Block Grant (CDBG) program was  
          established by the federal Housing and Community  
          Development Act of 1974 and is administered at the federal  
          level by the U.S. Department of Housing and Urban  
          Development (HUD).  The primary objective of the CDBG  
          program is the development of viable urban communities by  
          providing decent housing and a suitable living environment  
          and by expanding economic opportunities for households of  
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          low and moderate income.  HUD allocates money directly to  
          large cities and metropolitan areas (CDBG entitlement  
          funds).  

          The state CDBG program, which is administered by the  
          Department of Housing and Community Development (HCD),  
          provides federal funds to cities with a population of less  
          than 50,000 and counties with a population in  
          unincorporated areas of less than 200,000  (CDBG  
          non-entitlement funds).  In order to be eligible for  
          non-entitlement CDBG funds, a nonmetropolitan city or  
          county must submit its housing element to HCD.

          This bill:

          1. Requires a city or county which receives CDBG funds from  
             HCD spend the funds within each supervisorial or city  
             council district based on the percentage of low and  
             moderate-income persons within each district.

          2. Requires at least 75 percent of all CDBG fund benefit  
             these targeted income groups.

          3. Defines "targeted income groups" as families,  
             households, and individuals whose income does not exceed  
             80 percent of the county median income, with adjustments  
             for family and household size.

          4. Contains related Legislative findings and declarations.

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

           SUPPORT  :   (Verified  5/12/09) (unable to reverify)

          California Pan-Ethnic Health Network
          California Rural Legal Assistance Foundation
          Center on Race
          Community Water Center
          Dolores Huerta Foundation
          El Comite para el Bienestar de Earlimart
          Ella baker Center for Human Rights
          Environmental Justice Coalition for Water
          Fresno City Councilmember Henry T. Perea







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          Fresno County Supervisor Henry Fresno Metro Ministry
          Organzacion en California de Lideres Campesinas In.c
          Planning and Conservation League
          Poverty & the Environment
          Seven Trees Coalition

           OPPOSITION  :    (Verified  5/12/09) (unable to reverify)

          League of California Cities


          JA:do  1/14/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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