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: 8/24/12 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.
Senate Floor Amendments of 8/24/12 delete provisions in the
bill which transferred the responsibility to perform
housing related function of a former redevelopment agency
to the Department of Housing and Community Development
(HCD).
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ANALYSIS : In November 2006, California voters approved
Proposition 1C, the $2.85 billion Housing and Emergency
Shelter Trust Fund Act of 2006. Among other things,
Proposition 1C included:
$790 million for the Infill Infrastructure Grant (IIG)
Program, under which 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 redevelopment
agencies (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
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schedule, and remit 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.
B. $25 million for the purpose of funding
transit-oriented grants and loans under the TOD
Program.
2. Reallocates any moneys which were previously allocated
and appropriated under the IIG Program which become
disencumbered and redeposited in the Regional Planning,
Housing, and Infill Incentive Account during the 2012-13
and 2013-14 fiscal years, for the purpose of funding
infill incentive grants under the IIG Program.
3. Reallocates any moneys allocated and appropriated under
the TOD Program that become disencumbered and
redeposited in the Transit-Oriented Development Account
during the 2012-13 fiscal year, for the purpose of
funding transit-oriented grants and loans pursuant to
the TOD Program.
4. Clarifies that specified provisions of the Community
Redevelopment Law relating to the Low and Moderate
Income Housing Fund apply for purposes of funding
administrative and planning costs associated with the
implementation of housing-related provision of the
Community Redevelopment 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
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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).
SUPPORT : (Verified 8/22/12) (Unable to reverify at time
of writing)
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
San Francisco Bay Area Rapid Transit District
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,
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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:mn 8/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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