BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1793|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 1793
Author: Chau (D)
Amended: 6/17/14 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 6/24/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 5/27/14 (Consent) - See last page for
vote
SUBJECT : Housing successors: reporting requirements
SOURCE : Housing California
DIGEST : This bill requires a housing successor to include in
its annual report an inventory of homeownership units assisted
by the former redevelopment agency or the housing successor.
ANALYSIS : Historically, the Community Redevelopment Law
allowed a local government to establish a redevelopment area and
capture all of the increase in property taxes generated within
the area (referred to as "tax increment") over a period of
decades. The law requires redevelopment agencies (RDA) to
deposit 20% of tax increment into a Low and Moderate Income
Housing Fund (L&M Fund) to be used to increase, improve, and
preserve the community's supply of low- and moderate-income
CONTINUED
AB 1793
Page
2
housing available at an affordable housing cost.
Many agencies used a portion of these funds to support
homeownership, for which the law generally requires that the
units remain available at an affordable housing cost to, and
occupied by, low- or moderate-income households for 45 years.
Alternatively, an agency was allowed to permit sales of
ownership units at market prices prior to 45 years if it adopted
a program, such as equity sharing, which ensured that the
agency's initial investment would return to assist other
households.
In 2011, the Legislature enacted two bills, AB 26X1
(Blumenfield, Chapter 5, First Extraordinary Session) and AB 27
X1 (Blumenfield, Chapter 6, First Extraordinary Session). AB 26
X1 eliminated redevelopment agencies and established procedures
for winding down the agencies, paying off enforceable
obligations, and disposing of agency assets. AB 26 X1 included
provisions allowing the host city or county of a dissolving
redevelopment agency to retain the housing assets and functions
previously performed by the agency, except for funds on deposit
in the agency's L&M Fund, and thus become a housing successor.
If the host city or county chooses not to become the housing
successor, a local housing authority or the Department of
Housing and Community Development (HCD) takes on that
responsibility.
AB 27 X1 allowed redevelopment agencies to avoid elimination if
they made payments to schools in the current budget year and in
future years. In December 2011, the California Supreme Court in
California Redevelopment Association v. Matosantos upheld AB 26
X1 and overturned AB 27 X1. As a result, all of the state's
roughly 400 redevelopment agencies dissolved on February 1,
2012, and housing successors assumed the former redevelopment
agencies' housing assets and functions, including the interest
in homeownership deed restrictions.
SB 341 (DeSaulnier, Chapter 796, Statutes of 2013) updated
redevelopment laws to revise the rules governing the activities
and expenditures of housing successors to reflect the new
situation. Among other things, that bill required housing
successors to report various items of information annually.
This bill requires a housing successor to include in its annual
AB 1793
Page
3
report an inventory of homeownership units assisted by the
former redevelopment agency or the housing successor that
includes the following:
The number of such units.
In the first report pursuant to this subsection, the number of
such units lost to the portfolio since February 1, 2012, and
the reason or reasons for these losses. For all subsequent
reports, the number of such units lost to the portfolio in the
last fiscal year and the reason or reasons for these losses.
Any funds returned to the housing successor as part of an
equity sharing or similar program.
Whether the housing successor has contracted with any entity
for the management of such units and, if so, the name of the
entity.
Comments
According to the author's office, redevelopment agencies
assisted tens of thousands of below market-rate homeownership
units that are subject to deed restrictions or equity-sharing
agreements that must be monitored and enforced to recapture or
retain affordability. Due to the fact that most housing
successors now have either no income or limited and sporadic
income, they are struggling to enforce these restrictions,
putting at jeopardy the long-term affordability of the units.
According to a recent survey of housing successors, a majority
of responding agencies lost a significant amount of their
designated funding for managing these units and have laid off
over half of their staff responsible for managing or monitoring
affordable housing programs. One-third of responding agencies
have seen affordable housing lost to foreclosure since the
elimination of RDAs, and two-thirds expect it to happen.
This bill seeks to gather better data on the problem so that the
Legislature and stakeholders can develop effective responses.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
AB 1793
Page
4
SUPPORT : (Verified 8/5/14)
Housing California (source)
Association of California Cities- Orange County
Buckelew Programs
Los Angeles County
ASSEMBLY FLOOR : 77-0, 5/27/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Patterson, Quirk-Silva, Vacancy
JA:ed 8/7/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****