BILL ANALYSIS �
AB 1793
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1793 (Chau)
As Amended June 17, 2014
Majority vote
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|ASSEMBLY: |77-0 |(May 27, 2014) |SENATE: |32-0 |(August 19, |
| | | | | |2014) |
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Original Committee Reference: H. & C.D.
SUMMARY : Requires a housing successor to include in its annual
report an inventory of homeownership units assisted by the
former redevelopment agency (RDA) or the housing successor.
The Senate amendments delete the Assembly version of this bill,
and instead require a housing successor to include in its annual
report an inventory of homeownership units assisted by the
former redevelopment agency (RDA) or the housing successor that
includes the following:
1)The number of such units.
2)In the first report pursuant to this bill, the number of units
lost to the portfolio since February 1, 2012, and the reason
or reasons for these losses. For all subsequent reports, the
number of units lost to the portfolio in the last fiscal year
and the reason or reasons for these losses.
3)Any funds returned to the housing successor as part of an
equity sharing or similar program.
4)Whether the housing successor has contracted with any entity
for the management of such units and, if so, the name of the
entity.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, this bill has
negligible state costs.
COMMENTS :
Background: In 2011, as a result of serious budget shortfalls,
the Governor proposed eliminating RDAs and creating a Voluntary
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Alternative Redevelopment Program (VARP) to replace them. Two
pieces of budget trailer legislation, AB 26 X1 (Blumenfield),
Chapter 5, Statutes of 2011-12 First Extraordinary Session, and
AB 27 X1 (Blumenfield), Chapter 6, Statutes of 2011-12 First
Extraordinary Session, were enacted to achieve this goal. AB 26
X1 provided for the dissolution of RDAs and for the winding up
of their obligations by successor agencies. AB 27 X1
established VARP, which would have allowed RDAs to continue
operations if their local city or county made voluntary annual
payments benefitting schools, for the purpose of offsetting
state education costs. In CRA v. Matosantos (2011), the
California Supreme Court upheld the constitutionality of AB 26
X1, but invalidated AB 27 X1. This had the effect of dissolving
RDAs without giving them the option of continuing operations by
offsetting state education costs.
When RDAs were dissolved, successor agencies were established to
wind up the RDAs' obligations. Successor agencies were required
to effectuate the transfer of an RDA's housing functions and
assets to a "housing successor." Cities and counties were given
the option of acting as housing successors and taking over the
housing assets of their jurisdiction's RDA. If they did not
wish to take on this role, the local housing authority was
required to act as housing successor. If there was no local
housing authority, HCD was required to act as housing successor.
RDAs produced, amongst other things, tens of thousands of below
market rate (BMR) homeownership units. BMR units are affordable
due to deed restrictions or equity-sharing agreements that must
be monitored and enforced to recapture or retain affordability.
Purpose of the bill: Housing successors to RDAs are currently
tasked with enforcing the affordability deed restrictions on BMR
homeownership 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.
This bill was substantially amended in the Senate. The Senate
amendments create a reporting requirement for housing
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successors.
Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916)
319-2085
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