BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          SB1593  (Alarcon)
          
          Hearing Date:4/10/2000          Amended:3/22/2000      
          Consultant: Maureen Brooks          Policy Vote:H.&C.D.   
          7-0           
          ____________________________________________________________ 
          ___
          BILL SUMMARY:   SB 1593 creates the CalHome Program to  
          provide grants or loans to local public agencies or  
          nonprofit corporations to be used to enable low or very-low  
          income households to become or remain homeowners.

          Grants funds will be used for technical assistance for  
          self-help and senior shared housing homeownership, or to  
          assist individuals with down payments for first-time  
          homeowners, or home rehabilitation.

          Loan funds will be used for land purchase, site  
          development, predevelopment and construction expenses on  
          development projects, and for permanent financing for  
          mutual housing or cooperative developments.

          The Program will be administered by the Department of  
          Housing and Community Development (HCD).
                              Fiscal Impact (in thousands)
          Major Provisions            2000-01             2001-02              
           2002-03            Fund  
          
          HCD admin costs                   
          -----------------unknown-------------------General

          Grants & loans    
          ----------------------multi-million---------------General
          STAFF COMMENTS:  This bill meets the criteria to be placed  
          on the Suspense file.  It is the intent of the author that  
          the funding for the CalHome Program come from a proposed  
          $50 million augmentation in the Budget.  Staff recommends  
          an amendment subjecting the program to funding in the  
          annual Budget Act.

          To become eligible for funds, local public agencies or  
          nonprofit corporations must demonstrate organizational  
          stability and the capacity to manage a portfolio of  
          individual loans over an extended time period.











          In allocating funds, HCD is to use a competitive  
          application process using weighted evaluation criteria, as  
          specified.  HCD is limited to administrative expenses of no  
          more than 5% of the funds appropriated for the program.  In  
          addition, SB 1593 provides that at least 20% of the funds  
          granted will be allocated to rural areas.  It is not clear  
          whether that 20% base is meant to apply to each individual  
          segment of the program, or 20% of the total funds  
          appropriated.
          
          HCD currently administers a number of programs to assist  
          homeownership including the Self-Help Housing Program and  
          the Senior Citizens' Shared Housing Program.  This bill  
          will consolidate those existing programs into the new  
          CalHome Program.