BILL ANALYSIS
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THIRD READING
Bill No: SB 608
Author: Ducheny (D)
Amended: As introduced
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE : 11-0, 3/31/09
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman,
Hollingsworth, Kehoe, Oropeza, Pavley, Simitian, Wolk
NO VOTE RECORDED: Vacancy, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Report on Proposition 46 and 1C expenditures
SOURCE : Author
DIGEST : 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 Developments 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, the Department of Housing and Community
CONTINUED
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Development (HCD) administers the programs funded by these
bonds.
Existing 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:
1.The number of units assisted by HCD programs.
2.The number of individuals and households served and their
income levels.
3.The distribution of units among various areas of the
state.
4.The amount of other public and private funds leveraged.
5.The extent to which the special housing needs of various
groups were met.
6.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
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.
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
JJA:do 4/21/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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