BILL NUMBER: AB 398 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Migden
FEBRUARY 12, 1999
An act to add Part 11 (commencing with Section 53500) to Division
31 of the Health and Safety Code, relating to financing housing
programs by providing the funds necessary therefor through the
issuance and sale of bonds of the State of California and by
providing for the handling and disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
AB 398, as introduced, Migden. Housing and Homeless Bond Act of
2000.
Under existing law, there are programs providing assistance for
the construction and rehabilitation of low-income rental housing,
migrant farm labor centers and other farmworker housing, emergency
housing and assistance to homeless persons, and predevelopment and
land purchase loans for low-income housing in rural areas.
This bill would enact the Housing and Homeless Bond Act of 2000
which, if adopted, would authorize, for purposes of financing those
existing housing programs, the issuance of bonds in an unspecified
amount pursuant to the State General Obligation Bond Law.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 11 (commencing with Section 53500) is added to
Division 31 of the Health and Safety Code, to read:
PART 11. HOUSING AND HOMELESS BOND ACT OF 2000
CHAPTER 1. GENERAL PROVISIONS
53500. This part shall be known and may be cited as the Housing
and Homeless Bond Act of 2000.
53501. As used in this part, the following terms have the
following meanings:
(a) "Committee" means the Housing and Homeless Finance Committee
created pursuant to Section 53524.
(b) "Fund" means the Home Building and Rehabilitation Fund created
pursuant to Section 53520.
CHAPTER 2. HOME BUILDING AND REHABILITATION FUND
53520. The proceeds of bonds issued and sold pursuant to this
part shall be deposited in the Home Building and Rehabilitation Fund,
which is hereby created. Moneys in the fund shall be allocated and
utilized in accordance with Chapter 4 (commencing with Section
53533).
CHAPTER 3. FISCAL PROVISIONS
53521. Bonds in the total amount of ____ ($____), or so much
thereof as is necessary, may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this part and to
be used to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The bonds,
when sold, shall be and constitute a valid and binding obligation of
the State of California, and the full faith and credit of the State
of California is hereby pledged for the punctual payment of both
principal of, and interest on, the bonds as the principal and
interest become due and payable.
53522. Any bonds issued and sold pursuant to this part may be
refunded by the issuance of refunding bonds in accordance with
Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 2 of Title 2 of the Government Code. Approval by the
electors of the state for the issuance of these bonds shall include
the approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.
53523. The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
part and are hereby incorporated in this part as though set forth in
full in this part.
53524. (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this part, the Housing and Homeless Finance
Committee is hereby created. For purposes of this part, the Housing
and Homeless Finance Committee is "the committee" as that term is
used in the State General Obligation Bond Law. The committee
consists of the Controller, the Treasurer, the Director of Finance,
the Director of the Department of Housing and Community Development,
and the Executive Director of the California Housing Finance Agency,
or their designated representatives. A majority of the committee may
act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
Department of Housing and Community Development is designated the
"board" for programs administered by the department, and the
California Housing Finance Agency is the "board" for programs
administered by the agency.
53525. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
part in order to carry out the actions specified in Chapter 4
(commencing with Section 53533) and, if so, the amount of bonds to be
issued and sold. Successive issues of bonds may be authorized and
sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.
53526. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year, and it
is the duty of all officers charged by law with any duty in regard
to the collection of the revenue to do and perform each and every act
that is necessary to collect that additional sum.
53527. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this part, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
(b) The sum which is necessary to carry out the provisions of
Section 53528, appropriated without regard to fiscal years.
53528. For the purposes of carrying out this part, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this part. Any amounts withdrawn shall be deposited in
the fund. Any money made available under this section shall be
returned to the General Fund from money received from the sale of
bonds for the purpose of carrying out this part.
53529. Notwithstanding any other provision of this bond act, or
of the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), if the Treasurer sells bonds pursuant to this bond act that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes under
designated conditions, the Treasurer may maintain separate accounts
for the bond proceeds invested and the investment earnings on those
proceeds, and may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law, or take any other action with respect to the investment and use
of those bond proceeds, as may be required or desirable under federal
law in order to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds
of this state.
53530. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for the purposes of
carrying out this part. The amount of the request shall not exceed
the amount of unsold bonds that the committee has by resolution
authorized to be sold for the purpose of carrying out this part. The
board shall execute any documents that are required by the Pooled
Money Investment Board to obtain and repay the loan. Any amounts
loaned shall be deposited in the fund to be allocated by the board in
accordance with this part.
53531. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
53532. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this part are
not "proceeds of taxes" as that term is used in Article XIIIB of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
CHAPTER 4. ALLOCATION OF HOUSING BOND REVENUES
53533. (a) Moneys deposited in the Home Building and
Rehabilitation Fund from the sale of bonds pursuant to this part
shall be allocated for expenditure in accordance with the following
schedule:
(1) ____ dollars ($____) shall be transferred to the Rental
Housing Construction Fund to be expended for the programs authorized
by Chapter 9 (commencing with Section 50735) of Part 1, except
Sections 50738.5 and 50745.1.
(2) ____ dollars ($____) shall be transferred to the Housing
Rehabilitation Loan Fund to be expended for the purpose of making
deferred payment loans to acquire and rehabilitate rental housing
developments to be occupied by eligible households of very low and
low income pursuant to Section 50670.
(3) ____ dollars ($____) shall be transferred to the department
for the Farmworker Housing Grant Program authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
(4) ____ dollars ($____) shall be transferred to the department
for expenditure for the development of migrant farm labor centers
authorized by Chapter 8.5 (commencing with Section 50710) of Part 2.
(5) ____ dollars ($____) shall be transferred to the Emergency
Housing and Assistance Fund to be expended for the programs
authorized by Chapter 11.5 (commencing with Section 50800) of Part 2.
(6) ____ dollars ($____) shall be transferred to the Rural
Predevelopment Loan Fund to be expended for predevelopment activities
authorized by Chapter 3.1 (commencing with Section 50515) of Part 2.
(b) No portion of the moneys allocated pursuant to this section
may be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) Notwithstanding any other provision of law, a federally
recognized California Indian tribe shall be an eligible sponsor for
all funding provisions of this part.
SEC. 2. Section 1 of this act shall take effect upon the adoption
by the voters of the Housing and Homeless Bond Act of 2000, as set
forth in Section 1 of this act.
SEC. 3. Section 1 of this act shall be submitted to the voters at
the next statewide election in accordance with provisions of the
Government Code and the Elections Code governing the submission of
statewide measures to the voters.
SEC. 4. Notwithstanding any other provision of law, all ballots of
the election shall have printed thereon and in a square thereof, the
words: "Housing and Homeless Bond Act of 2000," and in the same
square under those words, the following in 8-point type: "This act
provides for a bond issue of ____ dollars ($____) to provide funds
for housing programs." Opposite the square, there shall be left
spaces in which the voters may place a cross in the manner required
by law to indicate whether they vote for or against the act.
Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choice by means thereof are in compliance
with this section.
SEC. 5. It is the intent of the Legislature that, to the extent
funds authorized by this act are available to local governmental
entities, federally recognized California Indian tribes shall also be
eligible to apply for those funds, be considered on the merits of
the application, and receive and expend those funds.