BILL NUMBER: AB 1275 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Torres
FEBRUARY 18, 2011
An act to amend Section 50001 Sections
50904 and 50905 of the Health and Safety Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1275, as amended, Torres. Housing.
Existing law establishes the California Housing Finance Agency,
which is governed by a board of directors consisting of 11 voting
members and 3 nonvoting ex officio members. Existing law also
authorizes the agency to employ specified persons. Existing law
imposes various conflict-of-interest requirements, including that a
board member with a financial interest in any matter before the board
for a decision must disclose the interest as a matter of official
public record and the board member is prohibited from attempting to
influence, participate in deliberations concerning, or vote as to the
interested matter. Existing law also prohibits an employee of the
agency from being employed by, holding any paid official relation to,
or having any financial interest in, any housing sponsor or any
housing development financed or assisted by the agency.
This bill would specify that the conflict-of-interest provision is
effective notwithstanding a provision of law that prohibits certain
officials from having a financial interest in a contract entered into
by the official in his or her official capacity or by the body or
board of which they are members.
This bill would extend the prohibition against being employed by,
having a paid relation to, or having a financial interest in a
housing sponsor or affordable housing to an officer of the agency,
except for a member of the board of directors who is not an employee
of the agency.
This bill would change the term "housing development" to
"affordable housing" in these provisions.
Existing law makes several legislative findings and declarations
of the vital statewide importance of housing to the health, safety,
and welfare of the residents of the state for several reasons.
This bill would make several changes to these legislative findings
and declarations.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50904 of the Health
and Safety Code is amended to read:
50904. The representation of varied interest groups on the board
shall be deemed essential to obtain information for the development
of policy and decisions of the board. It
Notwithstanding Section 1090 of the Government Code, it shall
not be a conflict of interest for an official of any local public
entity or a resident of any affordable housing
development , or a director, officer, stockholder, or
employee of any savings and loan institution, investment banking
firm, brokerage firm, commercial bank or trust company, architectural
firm, insurance company, labor union, or any other person,
association, or corporation to serve as a member of the board. If any
board member has a financial interest in any matter before the board
for a decision, that interest shall be disclosed as a matter of
official public record. The board member shall not attempt to
influence, participate in deliberations concerning, or vote as to
that matter.
Violation of this section constitutes grounds for disqualification
from office as a board member. Violation of the disclosure
requirements of this section constitutes a misdemeanor under Section
91000 of the Government Code.
SEC. 2. Section 50905 of the Health and
Safety Code is amended to read:
50905. (a) No officer or employee of the agency shall
be employed by, hold any paid official relation to, or have any
financial interest in, any housing sponsor or any affordable
housing development financed or assisted
under this part , provided that this prohibition shall not apply
to a member of the board of directors who is not an employee of the
agency . No real property to which a member of the board or
employee of the agency holds legal title or in which the person has
any financial interest shall be purchased by the agency or sold by
the member of the board or employee of the agency to a housing
sponsor for a affordable housing
development to be financed under this part.
Any violation of this section shall be a conflict of interest that
shall be grounds for disqualification of the member from the board
or employee of the agency from his or her employment with the board
or agency.
(b) Except as provided by subdivision (c), the following actions
shall be voidable in the discretion of the agency:
(1) Any purchase by the agency of real property in which a member
of the board or employee of the agency has legal title or a financial
interest.
(2) Any commitment by the agency to provide financial assistance
to a housing sponsor in which a member of the board or employee of
the agency is employed, holds any official relation, or has any
financial interest.
(3) Any commitment by the agency to provide financial assistance
to a housing sponsor to which real property has been or is
transferred for a affordable housing
development to be financed under this part, if a
member of the board or employee of the agency has or has had legal
title or any financial interest in the real property.
(c) Any commitment by the agency to provide financial assistance
under the circumstances specified in paragraph (2) or (3) of
subdivision (b) shall not be voidable following release of the funds.
(d) Notwithstanding the provisions of this section and Section
50904, any conflict of interest by a member of the board or employee
of the agency shall not affect the validity of any bonds or insurance
issued pursuant to this division.
(e) Notwithstanding the provisions of this section, an agency
employee or board member may, if not acting as an investor and if
otherwise eligible, participate in owner-occupied single-family
financing and insurance programs operated by the agency.
SECTION 1. Section 50001 of the Health and
Safety Code is amended to read:
50001. The Legislature finds and declares that the subject of
housing is of vital statewide importance to the health, safety, and
welfare of the residents of this state, for the following reasons:
(a) Decent and affordable housing is an essential motivating
force in helping people achieve self-fulfillment in a free and
democratic society.
(b) Unsanitary, unsafe, overcrowded, or congested dwelling
accommodations or lack of decent housing constitute conditions which
cause an increase in, and spread of, disease and crime.
(c) A healthy housing market is one in which residents of this
state have a choice of affordable housing opportunities and one in
which the housing consumer may effectively choose within the free
marketplace.
(d) A healthy housing market is necessary both to achieve a
healthy state economy and to avoid high levels of unemployment.