BILL NUMBER: AB 398 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 1999
INTRODUCED BY Assembly Member Migden
FEBRUARY 12, 1999
An act to amend Sections 50661 and 50740 of, and 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 amended, Migden. Housing and Homeless
Bond Act of 2000.
Under existing law, there are programs providing assistance for
the construction and rehabilitation of
existing housing, the development of, and assistance for,
low-income rental housing, migrant farm labor centers and
other the construction or rehabilitation of
farmworker housing, emergency housing and assistance to
homeless persons, and predevelopment and land purchase loans for
low-income housing in rural areas and assistance for
first-time homebuyers .
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 and for additional
specified housing purposes , the issuance of bonds in an
unspecified amount up to $750,000,000
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. Section 50661 of the Health and Safety Code is
amended to read:
50661. (a) There is hereby created in the State Treasury
the The Housing Rehabilitation Loan Fund
is hereby renamed the Housing Rehabilitation Loan Account in the
Rental Housing Program Fund which is established pursuant to Section
53535. Any reference in statute to the Housing Rehabilitation Loan
Fund shall be deemed to refer to the Housing Rehabilitation Loan
Account . All interest or other increments resulting from the
investment of moneys in the Housing Rehabilitation Loan Fund
Account shall be deposited in the fund
account , notwithstanding Section 16305.7 of
the Government Code. Notwithstanding Section 13340 of the Government
Code, all money in the fund account is
continuously appropriated to the department for the following
purposes:
(1) For making deferred-payment rehabilitation loans for financing
all or a portion of the cost of rehabilitating existing housing to
meet rehabilitation standards as provided in this chapter.
(2) For making deferred payment loans as provided in Sections
50668.5, 50669, and 50670.
(3) For making deferred payment loans pursuant to Sections 50662.5
and 50671.
(4) Subject to the restrictions of Section 53131, if applicable,
for administrative expenses of the department made pursuant to this
chapter, Article 3 (commencing with Section 50693) of Chapter 7.5,
and Chapter 10 (commencing with Section 50775).
(5) For related administrative costs of nonprofit corporations and
local public entities contracting with the department pursuant to
Section 50663 in an amount, if any, as determined by the department,
to enable the entities and corporations to implement a program
pursuant to this chapter. The department shall ensure that not less
than 20 percent of the funds loaned pursuant to this chapter shall be
allocated to rural areas. For purposes of this chapter "rural area"
shall have the same meaning as in Section 50199.21.
(b) There shall be paid into the fund
account the following:
(1) Any moneys appropriated and made available by the Legislature
for purposes of the fund account .
(2) Any moneys that the department receives in repayment of loans
made from the fund account , including
any interest thereon.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
(4) Moneys transferred or deposited to the fund
account pursuant to Sections 50661.5 and 50778.
(c) Notwithstanding any other provision of law, any interest or
other increment earned by the investment or deposit of moneys
appropriated by subdivision (b) of Section 3 of Chapter 2 of the
Statutes of the 1987-88 First Extraordinary Session, or Section 7 of
Chapter 4 of the Statutes of the 1987-88 First Extraordinary Session,
shall be deposited in a special account
subaccount in the Housing Rehabilitation Loan Fund
Account and shall be used exclusively for
purposes of Sections 50662.5 and 50671.
(d) Notwithstanding any other provision of law, effective with the
date of the act adding this subdivision, appropriations authorized
by the Budget Act of 1996 for support of the Department of Housing
and Community Development from the California Disaster Housing Repair
Fund and the California Homeownership Assistance Fund shall instead
be authorized for expenditure from the Housing Rehabilitation Loan
Fund Account .
SEC. 2. Section 50740 of the Health and Safety Code is amended to
read:
50740. (a) The Rental Housing Construction Incentive
Fund established in the State Treasury is hereby renamed the
Rental Housing Construction Fund is hereby renamed the
Rental Housing Construction Account in the Rental Housing Program
Fund which is established pursuant to Section 53535. Any reference
in a statute to the Rental Housing Construction Fund shall be deemed
to refer to the Rental Housing Construction Account, and a reference
to any account in the Rental Housing Construction Fund shall be
deemed a reference to a subaccount in the Rental Housing Construction
Account . Notwithstanding Section 13340 of the Government
Code, all money in the fund account is
hereby continuously appropriated to the Department of Housing and
Community Development, and, except as provided in subdivisions (b)
and (c), shall be utilized for purposes of this chapter and for the
purposes of Section 50775.5, Chapter 3.2 (commencing with Section
50517.5), Chapter 3.5 (commencing with Section 50530), and Chapter 15
(commencing with Section 50880). All interest or other increment
resulting from investment or deposit of moneys in the fund
account shall be deposited in the fund
account , notwithstanding Section 16305.7 of the
Government Code. Moneys in the fund account
shall not be subject to transfer to any other
fund other than the Rental Housing Program Fund
pursuant to Part 2 (commencing with Section 16300) of Division 4 of
Title 2 of the Government Code, except the Surplus Money Investment
Fund.
(b) Money from the fund utilized by the agency for development
costs which that was repaid to the
agency or disencumbered between June 30, 1982, and June 30, 1983, and
any additional funds or interest which that
is available for encumbrance on June 30, 1983, shall be
deposited in a separate account subaccount
in the fund account and utilized
as follows:
(1) Eight million one hundred thousand dollars ($8,100,000) shall
be utilized by the agency for activities authorized by Article 4.5
(commencing with Section 51180) of Chapter 5 of Part 3.
(2) Five hundred thousand dollars ($500,000) shall be transferred
by the agency to the department for deposit in the Rural Community
Facility Grant Fund, established pursuant to Section 6125, and
utilized to carry out the program established by Chapter 11
(commencing with Section 6120) of Part 3 of Division 5.
(3) Three million dollars ($3,000,000) shall be transferred by the
agency to the department and deposited in the Housing Rehabilitation
Loan Fund, established pursuant to Section 50661, and utilized for
making deferred payment loans for residential hotels as authorized by
subdivision (b) of Section 50661 and for purposes of subdivision (c)
of Section 50661.
(4) One million seven hundred thousand dollars ($1,700,000) shall
be transferred by the agency to the department for deposit in the
Emergency Housing and Assistance Fund, established pursuant to
Section 50800.
(5) Two million five hundred thousand dollars ($2,500,000) shall
be transferred by the agency to the Trustees of the California State
University for deposit in the Affordable Student Housing Revolving
Fund, established pursuant to Section 90087 of the Education Code,
and utilized to carry out the program established by Article 3
(commencing with Section 90085) of Chapter 8 of Part 55 of the
Education Code.
(6) Three hundred thousand dollars ($300,000) shall be transferred
by the agency to the department and utilized to carry out the
program established by Chapter 3.6 (commencing with Section 50533).
(7) Four million two hundred thousand dollars ($4,200,000) shall
be transferred by the agency to the department for deposit in the
annuity fund, established pursuant to Section 50738.5, and utilized
for the purposes authorized by that section.
(c) An amount not to exceed four million dollars ($4,000,000) of
the moneys from the fund account
utilized by the agency for development costs which is repaid to the
agency or disencumbered on or after July 1, 1983, shall be deposited
in the separate account subaccount
established pursuant to subdivision (b) and utilized and apportioned
in accordance with the following percentages as it becomes available:
(1) Fifty percent of the moneys shall be transferred by the agency
to the department and deposited in the Housing Rehabilitation Loan
Fund Account , established pursuant to
Section 50661, and utilized for the purposes specified in paragraph
(3) of subdivision (b).
(2) Twenty-five percent of the moneys shall be transferred by the
agency to the department for deposit in the Emergency Housing and
Assistance Fund, established pursuant to Section 50800, and utilized
for the purposes specified in paragraph (4) of subdivision (b).
(3) Twenty-five percent of the moneys shall be transferred by the
agency to the department for deposit in the annuity fund, established
pursuant to Section 50738.5, and utilized for the purposes specified
in paragraph (7) of subdivision (b).
(d) Notwithstanding any other provision of law, effective with the
date of the act adding this subdivision, appropriations authorized
for support of the Department of Housing and Community
Development department from the Family Housing
Demonstration Account and the Urban Predevelopment Loan Fund shall
instead be authorized for expenditure from the Rental Housing
Construction Fund Account .
SEC. 3. 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 ____ ($____)
seven hundred fifty million dollars ($750,000,000)
, 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 part , 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 part
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 ($____) shall be transferred to the Housing
Rehabilitation Loan Fund to be expended for the purpose of making
deferred payment loans to acquire and rehabilitate rental housing
developments to be occupied by eligible households of very low and
low income pursuant to Section 50670.
(3) ____ dollars ($____)
(1) Five hundred fifty million dollars ($550,000,000) shall be
transferred to the Rental Housing Program Fund to be expended for the
construction of new housing and the rehabilitation, preservation,
and code enforcement of existing multifamily affordable housing units
pursuant to Section 53535.
(2) One hundred fifty million dollars ($150,000,000) shall be
transferred to the Home Purchase Assistance Fund to be expended for
the programs authorized by Chapter 6.8 (commencing with Section
51341) of Part 3.
(3) Fifty million dollars ($50,000,000) shall be transferred
to the department for the Farmworker Housing Grant Program
authorized by Chapter 3.2 (commencing with Section 50517.5) of Part
2.
(4) ____ dollars ($____) 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.
CHAPTER 5. THE RENTAL HOUSING PROGRAM FUND
53535. There is hereby created in the State Treasury the Rental
Housing Program Fund. This fund shall contain the Housing
Rehabilitation Loan Account established in Section 50661 and the
Rental Housing Construction Account established in Section 50740.
Notwithstanding Section 13340 of the Government Code, all moneys in
the Rental Housing Program Fund are continuously appropriated to the
department for the purposes of the construction of new housing and
for rehabilitation, preservation, and code enforcement, including,
but not limited to, the purposes described in Sections 50661 and
50740.
SEC. 2.
SEC. 4. 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.
SEC. 5. 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.
SEC. 6. 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 ($____) seven hundred fifty million dollars
($750,000,000) 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.
SEC. 7. 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.