BILL ANALYSIS Ó
AB 1585
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Date of Hearing: August 30, 2012
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
AB 1585 (John A. Peréz) - As Amended: August 24, 2012
SUBJECT : Community development.
SUMMARY : Appropriates funds to the Infill Incentive Grant
(IIG) Program and to the Transit- Oriented Development (TOD)
Program created by Proposition 1C: Housing and Emergency Shelter
Trust Fund Act of 2006. Specifically, this bill :
1)Provide that the provisions of the Community Redevelopment Law
(CRL) governing administrative and planning costs for the Low
and Moderate Income Housing Fund shall apply to any funds
retained by a housing successor agency that assume the
responsibilities of a former redevelopment agency.
2)Appropriates $50 million to HCD for the following:
a) $25 million to the IIG program; and
b) $25 million to the TOD Program
1)Any funds disencumbered and deposited for the 2012-2013 and
2013-2014 fiscal years will be deposited into the Regional
Planning, Housing, and Infill Incentive Account and made
available through the IIG Program.
2)Any funds disencumbered and deposited for the 2012-2013 into
the Transit-Oriented Development Account will be made
available through the TOD Program.
EXISTING LAW
1)Establishes the TOD program to make grants to cities,
counties, cities and counties, or transit agencies for the
provision of infrastructure necessary for the development of
higher density uses within close proximity to a transit
station, or to facilitate connections between that development
and the station (Health and Safety Code Section 53560)
2)Establishes IIG program, administered by HCD, to provide
grants to fund capital improvement projects that are an
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integral part of, or necessary to facilitate the development
of, residential or mixed-use infill development. (Health and
Safety Code Section 53545.13).
FISCAL EFFECT : According to the Senate Appropriations
Committee,
1)Appropriation of $25 million from the Regional Planning,
Housing, and Infill Incentive Account to HCD (bond funds).
2)Appropriation of $25 million from the Transit-Oriented
Development Implementation Fund to HCD (bond funds).
COMMENTS:
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 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.
Although all of the original bond funds were awarded to
projects, some projects that received awards have or will return
the funds because they were unable to complete the project. HCD
estimates that it will recover approximately $50 million by the
end of this fiscal year, which will need to be awarded to other
projects that meet the program guidelines.
The Senate amendments delete the contents of this bill and
instead appropriate $25 million to the IIG program and $25
million to the TOD program. Because there are potentially more
funds that could be returned to HCD from initial awardees above
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the $50 million, this bill allows any additional disencumbered
funds to be deposited into the IIG and TOD Funds for
appropriations.
The bill also clarifies that a housing successor entity that
assume the housing functions of former redevelopment agencies
are required to adhere to the requirements of the CRL with
regard to how they spend money on planning and administration.
This provision is clarifying, as housing successor entities are
already subject to the CRL.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085