BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 608
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: ducheny
VERSION: 2/27/09
Analysis by: Mark Stivers FISCAL: yes
Hearing date: March 31, 2009
SUBJECT:
Report on Proposition 46 and 1C expenditures
DESCRIPTION:
This bill requires that cumulative information on programs
funded under the Housing and Emergency Shelter Trust Fund Acts
of 2002 and 2006 be included in the Department of Housing and
Community Development's (HCD's) annual report.
ANALYSIS:
The Housing and Emergency Shelter Trust Fund Acts of 2002
(Proposition 46 for $2.1 billion) and 2006 (Proposition 1C for
$2.85 billion) authorized the issuance of general obligation
bonds to finance various existing housing programs. In
addition, Proposition 1C funded two new infrastructure programs
to facilitate the development of infill and transit-oriented
housing. With a few exceptions, HCD administers the programs
funded by these bonds.
Current law requires HCD to submit an annual report to the
governor and both houses of the Legislature detailing the
operations and accomplishments of the housing programs it
administered in the previous fiscal year. This report includes:
The number of units assisted by HCD programs.
The number of individuals and households served and
their income levels.
The distribution of units among various areas of the
state.
SB 608 (DUCHENY) Page 2
The amount of other public and private funds leveraged.
The extent to which the special housing needs of various
groups were met.
Information on the activities of local agencies to
enforce the Employee Housing Act, which requires the
inspection of employee-owned housing.
This bill requires that HCD's annual report break out the
required information for each program funded by Proposition 46
or Proposition 1C, respectively, and also include a cumulative
total of this information for all funds distributed under
Proposition 46 and Proposition 1C.
COMMENTS:
1.Purpose of the bill . Proposition 46 funded 17 different
affordable housing programs. Proposition 1C funded a total
of 15 affordable housing and infrastructure programs. While
statute currently requires HCD to list the units produced and
other data for each program, there is no requirement to
provide an accounting of the assistance provided by each
bond. This bill requires HCD to provide cumulative
information on the programs funded under the 2002 and 2006
housing bonds, thereby improving oversight and public
accountability.
2.Legislative Analyst Office (LAO) recommendation . LAO's
Analysis of the 2007-2008 Budget Bill stated that the
Legislature should exercise ongoing oversight of the bond
programs to make sure that funds are expended in an effective
and timely manner to achieve program objectives. In order to
facilitate ongoing oversight, the LAO suggested that the
Legislature require the reporting of certain information
annually. This bill is in line with the LAO's recommendation.
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
March 25, 2009)
SUPPORT: None received.
OPPOSED: None received.