BILL ANALYSIS
SB 194
Page 1
SENATE THIRD READING
SB 194 (Florez)
As Amended August 2, 2010
Majority vote
SENATE VOTE :23-14
HOUSING 7-2
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|Ayes:|Torres, Arambula, | | |
| |Bradford, Eng, Gilmore, | | |
| |Saldana, Torlakson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Tran | | |
| | | | |
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SUMMARY : Establishes the Community Equity Investment Act of
2010. Specifically, this bill :
1)Makes legislative findings that there are hundreds of
disadvantaged unincorporated communities in the state that may
be isolated geographically, surrounded by the city limits of
large and medium-sized cities. Finds that the conditions
within these disadvantaged unincorporated communities evidence
a distinct lack of public and private investment; present a
threat to the health and safety of residents; and foster
economic, social, and educational inequality.
2)Provides that unless prohibited by federal regulations, local
governments must do the following, in administering the
federal Community Development Block Grant (CDBG) program:
a) If a local government has a citizen advisory committee
(CAC) to advise the city council or board of supervisors on
how to spend their CDBG funds, the local government must
include representation from disadvantaged unincorporated
communities within its jurisdiction;
b) Provide proper notice in compliance with federal law to
ensure that residents of disadvantaged unincorporated
communities, are given reasonable and timely access to
information about the CDBG program, including the
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application process and technical assistance; and,
c) Prioritize the needs of disadvantaged unincorporated
communities within their jurisdiction, if there is no local
government board that represents the disadvantaged
community, when determining how to spend technical
assistance funds.
EXISTING LAW requires cities and counties that receive a direct
allocation of CDBG funds from the federal government to adopt a
citizen participation plan that sets forth the jurisdiction's
policies and procedures for citizen participation. The citizen
participation plan must provide and encourage citizen's
participation in the development of the consolidated plan,
substantial amendment to the consolidated plan, and the
performance report. Requires that cities and counties especially
encourage participation by low- and moderate-income persons,
particularly those living in slums and blighted areas, in areas
where the CDBG funds are proposed to be used, and by residents
of predominantly low- and moderate-income neighborhoods. (Code
of Federal Regulations 24, Part 91)
FISCAL EFFECT : None
COMMENTS : The CDBG program provides money to local governments
for economic and community development. Large cities and
counties, known as entitlements, receive a direct allocation of
CDBG from the federal government. Entitlements are required to
follow federal guidelines in administering their portion of
CDBG, including establishing a citizen participation plan which
must encourage the participation of low- and moderate-income
residents. Small communities, non-entitlements, receive CDBG
funds through the State Community Development Block Grant
program, which is administered through the Department of Housing
and Community Development (HCD).
This bill attempts to direct CDBG funds to "disadvantaged
communities, "fringe communities," and "city islands." The
legislative findings describe a disadvantaged unincorporated
community as being isolated geographically, often surrounded by
the city limits of large and medium-sized cities. According to
the sponsor, these communities are not represented fully in the
CDBG process and may not have the resources to navigate through
the public participation process to elevate their issues and
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ultimately receive funding for vital community projects. This
bill attempts to overlay state requirements over the federal
regulations required for public participation to get cities and
counties to prioritize the needs of unincorporated communities
within their jurisdiction.
Citizen Advisory Committee (CAC) : Under existing federal
regulations, a grantee must develop and follow a detailed plan
which provides for, and encourages, citizen participation and
which emphasizes participation by persons of low- or
moderate-income, particularly residents of predominantly low-
and moderate-income neighborhoods, slum or blighted areas, and
areas in which the grantee proposes to use CDBG funds. The plan
must:
1)Provide citizens with reasonable and timely access to local
meetings, information, and records related to the grantee's
proposed and actual use of funds.
2)Provide for public hearings to obtain citizen views and to
respond to proposals and questions at all stages of the
community development program, including at least the
development of needs, the review of proposed activities, and
review of program performance.
3)Provide for timely written answers to written complaints and
grievances.
4)Identify how the needs of non-English speaking residents will
be met in the case of public hearings where a significant
number of non-English speaking residents can be reasonably
expected to participate.
This bill would require entitlement local governments that have
a CAC to include residents from all disadvantaged unincorporated
communities in their jurisdiction on the CAC. Additionally,
local governments are required to prioritize the needs of
residents of disadvantaged unincorporated communities in
determining how to distribute funds for technical assistance.
These funds can be used to help residents make applications to
the governing body for infrastructure projects in their
community.
Arguments in support : According to the sponsor, over one
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million Californians live in disadvantaged, unincorporated
communities. Residents of these areas often live without the
most basic features of a safe and healthy environment-services
like clean water, sewage lines, storm drains, streetlights,
sidewalks, and safe housing. Dependent on county governance for
urban needs, these communities are systematically underserved in
the overall allocation of public resources and are frequently
left out of local planning processes. SB 194 will help ensure
that all California communities are able to realize their
potential as livable, healthy, and economically viable places.
Arguments in opposition : The League of California Cities
(League) is opposed to the state conditioning funds that are
received directly from the federal government by entitlement
communities. The League believes that "the current economic
conditions suggest that now is not the appropriate time to add
further conditions to this source of federal funding."
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0005223