BILL ANALYSIS �
AB 1672
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1672 (Torres)
As Amended June 19, 2012
Majority vote
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|ASSEMBLY: |50-26|(May 14, 2012) |SENATE: |22-15|(August 22, |
| | | | | |2012) |
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Original Committee Reference: H. & C.D.
SUMMARY : Makes changes to the Housing-Related Parks Program
(HRP), administered by the Department of Housing and Community
Development (HCD).
The Senate amendments allow cities and counties to obtain awards
under HRP for acquired, substantially rehabilitated, and
preserved affordable housing units for which the city or county
has committed financial assistance, as those terms are defined
in housing element law, except that the city or county may have
committed assistance at any time during the housing element
period.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required HCD to award grants to cities and counties under HRP
based upon the issuance of building permits for new housing
units that are affordable to low- or very low-income
households.
2)Deleted the requirement that funds be disbursed upon
documentation of a certificate of occupancy, final inspection,
or other comparable local approval.
3)Required that substantial bonus funds be awarded for any of
the following:
a) Jurisdictions that demonstrate that grant funds will be
spent to improve a park or community recreational facility
that will serve a disadvantaged community;
b) Jurisdictions that demonstrate that grant funds will be
spent to create a new park or community recreational
facility that will serve a disadvantaged community; and,
AB 1672
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c) Jurisdictions that meet the definition of a park
deficient community.
FISCAL EFFECT : According to the Senate Appropriations
Committee, costs to HCD would be minor and absorbable.
COMMENTS : The Housing-Related Parks program provides grants to
local governments for park and recreation facilities. Grant
awards are based on the number of affordable housing units that
are started in community in a given year. The program is not
competitive; grants are awarded to all local governments that
apply that meet the program's requirements in a given year.
Awards are calculated on a per-bedroom basis. The current
program regulations establish a base award of $500 per bedroom
for low-income units and $750 per bedroom for very low-income
units. Various bonus categories raise the potential maximum
per-bedroom award to $1,100 for low-income units and $1,625 for
very low-income units.
Proposition 1C, the Housing and Emergency Trust Fund Act of
2006, provided $200 million in funding for housing-related
parks. HRP was modeled on HCD's popular Workforce Housing
Rewards Program, which was funded through the prior housing bond
(Proposition 46 of 2002) but not under Proposition 1C. Under
that program, local governments received flexible funding for a
variety of community facilities and improvements when they
approved affordable housing. The idea behind Workforce Housing
Rewards, and subsequently HRP, was to provide local governments
with an incentive to approve needed affordable housing by
providing guaranteed funding for community amenities.
Under current law, HRP awards are based on the number of housing
starts in a community in a given year. To verify a housing
start, the city or county must show a foundation inspection
report. This has proven problematic under the first two HRP
funding rounds, however. There is little consistency in
documenting foundation inspections across jurisdictions and some
types of construction do not even involve a foundation
inspection, making it difficult for cities and counties to
document eligibility for funding. This bill replaces "housing
starts" with "building permits" as the way to document
eligibility. All local governments issue and track building
permits for housing projects and already report permits issued
for affordable units to HCD on an annual basis. This change
AB 1672
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will simplify the application process and ensure that cities and
counties receive awards for all affordable housing units that
they approve.
This bill also allows cities and counties to receive funding
under HRP when they provide the financial assistance necessary
to make or keep certain existing housing units affordable.
Although the program was conceived as an incentive to approve
much-needed new construction, at a time when construction
activity is slow conversion and preservation of existing units
are crucial in maintaining and expanding the affordable housing
supply.
Finally, this bill reorganizes the bonus system under HRP to
ensure that park-deficient and disadvantaged communities receive
substantial bonus funding. The current program guidelines
provide a $100 per bedroom bonus for these categories, but
include higher bonus amounts for other categories, such as for
housing projects built in infill areas. Park advocates argue
that park-deficient and disadvantaged communities have the
greatest need for park funding and thus should receive higher
award amounts. The bill also adds a bonus category for new
construction since these projects are more costly and often more
controversial than preserving existing affordable units.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0005406