BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1585|
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THIRD READING
Bill No: AB 1585
Author: John A. Pérez (D), et al.
Amended: 8/21/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-1, 7/3/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Simitian
NOES: Wyland
SENATE APPROPRIATIONS COMMITTEE : 6-1, 8/16/12
AYES: Kehoe, Alquist, Dutton, Lieu, Price, Steinberg
NOES: Walters
ASSEMBLY FLOOR : 58-7, 3/26/12 - See last page for vote
SUBJECT : Reappropriation of Proposition 1C bond funds
SOURCE : Author
DIGEST : This bill reappropriates $50 million of
Proposition 1C bond funds to the Infill Infrastructure
Grant Program and the Transit-Oriented Development Program,
and transfers the responsibility to perform housing
functions of a former redevelopment agency (RDA) to the
Department of Housing and Community Development under
specified circumstances.
ANALYSIS : In November 2006, California voters approved
Proposition 1C, the $2.85 billion Housing and Emergency
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Shelter Trust Fund Act of 2006. Among other things,
Proposition 1C included:
$790 million for the Infill Infrastructure Grant (IIG)
Program, under which the Department of Housing and
Community Development (HCD) offers gap financing grants
to cover the costs of infrastructure improvements
necessary for the development of higher-density
affordable and mixed-income housing in locations
designated as infill.
$300 million for the Transit-Oriented Development (TOD)
Program, under which HCD provides grants to cities,
counties, and transit agencies for the provision of
infrastructure necessary to support mixed-income housing
developments within close proximity to a transit station.
Housing developers may also obtain loans for the
development of the TOD housing units.
Over the succeeding years, the Legislature appropriated
these funds to HCD, and HCD awarded all of the funds
available under both programs. For various reasons, some
awardees have returned their awards, making the funds again
available for a new round of awards. HCD reports that it
currently has $25 million available for the IIG Program and
another $25 million available for the TOD Program. HCD
made these particular awards in the first rounds of
funding, for which its appropriation (i.e., deadline to
encumber funds) expired on June 30, 2008.
Citing a significant State General Fund deficit, Governor
Brown's 2011-12 budget proposed eliminating RDAs and
returning billions of dollars of property tax revenues to
schools, cities, and counties to fund core services. Among
the statutory changes that the Legislature adopted to
implement the 2011-12 Budget, AB 26X1 (Blumenfield, Chapter
5, Statutes of 2011) dissolved all RDAs and established
procedures for winding down RDA activity. Existing law
requires successor agencies to dispose of former RDAs'
assets and properties, at an oversight board's direction,
in an expeditious manner aimed at maximizing value.
Successor agencies are required to make any payments
related to enforceable obligations, as specified in an
adopted recognized obligation payment schedule, and remit
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unencumbered balances of RDA funds and proceeds from asset
sales to the county auditor-controller for distribution to
local taxing entities in the county.
This bill:
1. Appropriates $50 million to HCD as follows:
A. $25 million for the purpose of funding infill
incentive grants under the IIG Program with priority
going to projects which previously qualified for a
grant and received a partial grant.
B. $25 million for the purpose of funding
transit-oriented grants and loans under the TOD
Program.
2. Transfers all rights, powers, assets, duties, and
obligations associated with the housing activities of a
former RDA to HCD under the following circumstances:
A. If a local housing authority designated by a city
or county to perform the former RDA's housing
functions refuses to accept the responsibility.
Requires HCD consult the local community regarding
expenditures, program administration, and other
rights, powers, and obligations, and requires HCD
provide contact information on its Internet Web site
in order to facilitate local input.
B. If a local housing authority designated to perform
the former RDA's housing functions initially accepts
the responsibility, but later determines it does not
implement the same type of housing programs that the
RDA did, lacks expertise to implement those programs,
and does not foresee the ability to obtain the
expertise. Requires the local housing authority by a
two-thirds vote of its commission resolve to no
longer perform the housing functions, and notify HCD
as specified.
3. Specifies any funds transferred to HCD in conjunction
with the transfer of responsibility for performance of a
former RDA's housing functions will be deposited into a
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new State Low and Moderate Income Housing Fund. These
funds would be continuously appropriated to HCD for the
purpose of increasing the supply of low- and
moderate-income housing and awarded on a competitive
basis. Priority would be given to eligible extremely
low, very low, and low-income projects.
4. Authorizes HCD and local housing authorities to recover
administrative costs to manage the housing functions of
former RDA's consistent with existing RDA law.
Comments
According to the author's office, it is important to
sustain and build critical infrastructure projects in our
state, especially in the housing sector. Given the
economic downturn and loss of jobs in the construction
industry, the state must use its available resources to
stimulate recovery of the economy. In 2006, the voters
approved Proposition 1C and put their faith in government
to use bond funds efficiently and as quickly as possible.
The appropriation in this bill will allow HCD to issue a
Notice of Funding Availability for infill and
transit-oriented projects that are shovel-ready and of
great value to our communities and neighborhoods.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Appropriation of $25 million from the Regional Planning,
Housing, and Infill Incentive Account to HCD (bond
funds).
Appropriation of $25 million from the Transit-Oriented
Development Implementation Fund to HCD (bond funds).
Unknown, potentially significant HCD administrative costs
to perform the housing functions of a former RDA in those
circumstances in which the responsibility is relinquished
by local housing authorities. Actual costs would depend
upon the number of jurisdictions that transfer
responsibility to HCD, and the composition of the housing
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assets and resources that are transferred. All HCD costs
would be recoverable from housing assets and resources.
SUPPORT : (Verified 8/16/12)
AFSCME
Bridge Housing
California Association of Housing Authorities
California Association of Local Housing Finance Agencies
Commercial Investment Services
John Stewart Company
Oakland Tenants Union
Resources for Community Development
Tenderloin Neighborhood Development Corporation
ASSEMBLY FLOOR : 58-7, 3/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer,
Fletcher, Fong, Fuentes, Furutani, Galgiani, Garrick,
Gatto, Gordon, Hall, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jeffries, Lara, Ma, Mendoza,
Miller, Mitchell, Monning, Pan, Perea, V. Manuel Pérez,
Portantino, Skinner, Smyth, Solorio, Swanson, Torres,
Wieckowski, Williams, Yamada, John A. Pérez
NOES: Conway, Donnelly, Beth Gaines, Logue, Mansoor,
Nielsen, Norby
NO VOTE RECORDED: Cook, Gorell, Grove, Hagman, Halderman,
Harkey, Jones, Knight, Bonnie Lowenthal, Morrell,
Nestande, Olsen, Silva, Valadao, Wagner
JJA:m 8/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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