California Legislature—2013–14 Regular Session

Assembly Bill No. 2464

Introduced by Assembly Member Fong

February 21, 2014

An act to amend Section 50710.1 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2464, as introduced, Fong. Migrant farm labor centers.

Existing law authorizes the Department of Housing and Community Development to contract with local public and private nonprofit agencies to provide housing services, including shelter, education, sanitation, and day care services for migratory agricultural workers, through the development, construction, reconstruction, rehabilitation, or operation of a migrant farm labor center.

This bill would make technical, nonsubstantive changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 50710.1 of the Health and Safety Code
is amended to read:

50710.1.  

(a) If all the development costs of begin delete any end delete begin insert a end insert migrant farm
labor center assisted pursuant to this chapter are provided by
federal, state, or local grants, and if inadequate funds are available
from any federal, state, or local service to write-down operating
costs, the department may approve rents for that center that are in
excess of rents charged in other centers assisted by the Office of
Migrant Services. However, notwithstanding any other provision
of law, commencing with the 2006 growing season, the department
shall not increase rents for residents of any facility assisted by the
Office of Migrant Services to a level that exceeds 30 percent of
the average annualized household incomes of residents of the
facility without specific legislative authorization. Prior to approving
these rents, the department shall consider the adequacy of evidence
presented by the entity operating the center that the rents reimburse
actual, reasonable, and necessary costs of operation.

(b) At the end of each fiscal year, begin delete any end delete begin insert an end insert entity operating a
migrant farm labor center pursuant to this chapter may establish
a reserve account comprised of the excess funds provided through
the annual operating contract received from the department if the
department certifies there is no need to address reasonable general
maintenance requirements or repairs, rehabilitation, and
replacement needs of the requesting migrant farm labor center
begin delete which end delete begin insert that end insert affect the immediate health and safety of residents. The
cumulative balance of the reserve account shall not exceed 10
percent of the annual operating funds annually committed to the
entity by the department. Funds in the reserve account shall be
used only for capital improvements begin insert , end insert such as replacing or repairing
structural elements, furniture, fixtures, or equipment of the migrant
farm labor center, the replacement or repair of which are reasonably
required to preserve the migrant farm labor center. Withdrawals
from the reserve account shall be made only upon the written
approval of the department of the amount and nature of
expenditures.

(c) A migrant farm labor center governed by this chapter may
be operated for an extended period prior to or beyond the standard
180-day period after approval by the begin delete department, provided that end delete
begin insert department if end insert all of the following conditions are satisfied:

(1) No additional subsidies provided by the department are used
for the operation or administration of the migrant farm center
during the extended occupancy period except to the extent that
state funds are appropriated or authorized for the purpose of
funding all or part of the cost of subsidizing extended occupancy
periods during the first 14 days only.

(2) Rents are not to be increased above the rents charged during
the standard 180-day occupancy period unless the department finds
that an increase is necessary to cover the difference between
reasonable operating costs necessary to keep the center open during
the extended occupancy period and the amount of state funds
available pursuant to paragraph (1) and any contributions from
agricultural employers or other federal, local, or private sources.
These contributions shall not be used to reduce the amount of state
funds that otherwise would be made available to the center to
subsidize rents during an extended occupancy period.

(3) In no event shall the rent during the extended occupancy
period exceed the average daily operating cost of the center, less
any subsidy funds available pursuant to paragraph (1) or (2). With
respect to an extended occupancy beyond the standard 180-day
period, households representing at least 25 percent of the units in
the center shall have indicated their desire and intention to remain
in residency by signing a petition to the local entity to keep the
center open for an extended period at rents that are the same or
higher than rents during the regular period of occupancy. Each
household shall receive a clear bilingual notice describing the
extended occupancy options attached to the lease.

The Legislature finds and declares that because the number of
residents may be substantially reduced during the extended
occupancy period, a rent increase may be necessary to cover
operating costs. It is the intent of the Legislature that the public
sector, private sector, and farmworkers should each play an
important role in ensuring the financial viability of this important
source of needed housing.

(4) An extended occupancy period is requested by an entity
operating the migrant farm labor center and received by the
department no earlier than 30 days and no later than 15 days prior
to the center’s scheduled opening or closing date. The department
shall notify the entity and petitioning residents of the final decision
no later than seven days prior to the center’s scheduled opening
or closing date. During the extended occupancy period, occupancy
shall be limited to migrant farmworkers and their families who
resided or intended to reside at a migrant center during the regular
period of occupancy.

(5) Before approving or denying an early opening or an
extension and establishing the rents for the extended occupancy
period, both of which shall be within the sole discretion of the
department, the department shall take into consideration all of the
following factors:

(A) The structural and physical condition of the center, including
water and sewer pond capacity and the capacity and willingness
of the local entity to operate the center during the extended
occupancy period.

(B) Whether local approvals are required, and whether there
are competing demands for the use of the center’s facilities.

(C) Whether there is adequate documentation that there is a
need for residents of the migrant center to continue work in the
area, as confirmed by the local entity.

(D) The climate during the extended occupancy period.

(E) The amount of subsidy funds available that can be allocated
to each center to subsidize rents below the operating costs and the
cost of operating each center during the extended occupancy period.

(F) The extended occupancy period is deemed necessary for the
health and safety of the migrant farmworkers and their families.

(G) Other relevant factors affecting the migrant farmworkers
and their families and the operation of the centers.

(6) The rents collected during the extended occupancy period
shall be remitted to the department. However, based on financial
records to the satisfaction of the department, the department may
reduce the amount to be remitted by an amount it determines the
local entity has expended during the extended occupancy period
that is not being reimbursed by department funds.

(7) The occupancy during the extended occupancy period
represents a new tenancy and is not subject to existing and statutory
and regulatory limitations governing rents. Prior to the beginning
of the extended occupancy period, residents shall be provided at
least two days’ advance written notice of any rent increase and of
the expected length of the extended occupancy period, including
the scheduled date of the beginning of the extended occupancy
period and closure of the center. Prior to being eligible for
residency during the extended occupancy period, residents shall
sign rental documents deemed necessary by the department.

(d) The Legislature finds and declares that variable annual
climates and changing agricultural techniques create an inability
to accurately predict the end of a harvest season for the purposes
of housing migrant farmworkers and their families. Because of
these factors, in any part of this state, and in any specific year, one
or more migrant farmworker housing centers governed by this
chapter need to open early or remain open for up to two additional
weeks to allow the residents to provide critical assistance to
growers in harvesting crops while also fulfilling work expectations
that encouraged them to migrate to the areas of the centers. In
addition, if the centers close prematurely or open late, the migrant
farmworkers often must remain or reside in the areas to work for
up to two weeks. During this time they will not be able to obtain
decent, safe, and affordable housing and the health and safety of
their families and the surrounding community will be threatened.

The Legislature therefore finds and declares that, for the purposes
of any public or private right, obligation, or authorization related
to the use of property and improvements thereon as a 180-day
migrant center, an extended use of any housing center governed
by this chapter pursuant to this section is deemed to be the same
as the 180-day use generally authorized by this chapter.

(e) Because of the presumed income levels of the occupants of
migrant farm labor centers, an entity operating a migrant farm
labor center shall be deemed eligible for the California Alternative
Rates for Energy program established pursuant to Sections 382
and 739.1 of the Public Utilities Code. Any savings from a
reduction in energy rates shall be passed on to the occupants of
the migrant farm labor center.