BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1287 (Ducheny)
Hearing Date: 05/17/2010 Amended: 04/29/2010
Consultant: Mark McKenzie Policy Vote: none
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BILL SUMMARY: SB 1287, an urgency measure, would appropriate
$900,000 from the Disaster Relief Fund to the Department of
Housing and Community Development (HCD) to award funds for
housing low- and moderate-income persons who have been impacted
by the April 4, 2010 earthquake in Baja California, Mexico.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Appropriation $900 General/
Special*
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* Disaster Relief Fund. Staff notes that this fund only has a
balance of $11,000 and is not anticipated to receive any
additional revenues. The balance of the appropriation provided
in this bill would be paid by the General Fund.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
On April 4, 2010, a magnitude 7.2 earthquake struck Baja
California, Mexico, approximately 40 miles south of the United
States border. The earthquake was widely felt in southern
California, particularly in Imperial County, and damaged or
destroyed numerous homes, businesses, schools, water treatment
and storage facilities, and other public facilities in Imperial
County.
On April 5, 2010, Governor Arnold Schwarzenegger proclaimed a
state of emergency in Imperial County. President Obama issued a
major disaster declaration related to the impact from the
earthquake in Imperial County on May 7, 2010. The federal
declaration will bring federal funding on a cost-sharing basis
for emergency work and the repair or replacement of public
facilities damaged by the earthquake, but does not provide
assistance for individuals. HCD has issued a notice of funding
available (NOFA) that makes $10 million in Proposition 1C bond
funds available from the CalHome Program for loans related to
the rehabilitation or reconstruction of lower-income
owner-occupied homes damaged by the earthquake. HCD has also
issued a notice to local entities affected by the earthquake
that they may redirect existing allocations of federal Community
Development Block Grant (CDBG) and Home Investment Partnerships
Program (HOME) funds for assistance related to the earthquake.
SB 1287 would appropriate $900,000 from the Disaster Relief Fund
to HCD to award funds for housing persons of low- and
moderate-income, and would require HCD to give priority to
funding housing for persons of low-income. Staff notes that it
is not clear whether the funds provided by this bill would be in
the form of grants or loans.