BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1287 (Ducheny)
          
          Hearing Date:  05/27/2010           Amended: 04/29/2010
          Consultant: Mark McKenzie       Policy Vote: none
          _________________________________________________________________ 
          ____
          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.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
          Appropriation          $450                             General/
          ____________                                            Special*
          * 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.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          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.

          Proposed amendments would decrease the appropriation to $450,000  
          and limit the use of funds to mobilehome purposes.