BILL NUMBER: SBX8 28 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Yee and Alquist
(Coauthor: Senator Oropeza)
FEBRUARY 5, 2010
An act to amend Section 53545.9 of the Health and Safety Code,
relating to housing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 28, as introduced, Yee. Housing and Emergency Shelter Trust
Fund Act of 2006: appropriations.
(1) The Housing and Emergency Shelter Trust Fund Act of 2006,
adopted and approved by the voters at the November 7, 2006, statewide
general election, authorized the issuance of bonds in the amount of
$2,850,000,000 pursuant to the State General Obligation Bond Law.
Existing law requires the allocation or availability of specified
bond funds to the Construction Liability Insurance Reform Pilot
Program and the Innovative Homeownership Program and provides for the
reversion of certain funds under specified circumstances. Existing
law establishes the Housing-Related Parks Program and the Building
Equity and Growth in Neighborhoods (BEGIN) Program, funded by these
bonds and administered by the Department of Housing and Community
Development, relating to the promotion and support of infill
development, housing-related parks, and housing assistance.
This bill would make several legislative findings and declarations
relating to jobs associated with residential construction and
housing bond funds. The bill would delete the required allocation or
availability of funds to the Construction Liability Insurance Reform
Pilot Program and the Innovative Homeownership Program and instead
require that funds be allocated and made available to the California
Pollution Control Financing Authority, in consultation with the
department, to administer loans or grants under the California
Recycle Underutilized Sites (CALReUSE) program. The bill would modify
the reversion provisions. The bill would appropriate specified
amounts from the Regional Planning, Housing, and Infill Incentive
Account and the Building Equity and Growth in Neighborhoods Account
to the Department of Housing and Community Development for the
Housing-Related Parks Program and the BEGIN Program, respectively.
The bill would require the department to award these appropriated
funds within 180 days from the date the act takes effect.
(2) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. The Governor issued a proclamation declaring a
fiscal emergency, and calling a special session for this purpose, on
January 8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) In 2009, residential construction in California is estimated
to have hit its lowest recorded level ever.
(b) Jobs associated with residential construction in California
have plummeted by an estimated 70 percent since 2005. This amounts to
more than 350,000 lost jobs.
(c) During the current economic crisis, it is imperative to
expedite the distribution of approved housing bond funds in order to
invigorate local economies.
(d) In addition to creating jobs, infrastructure improvements made
possible by these investments will produce numerous benefits to
communities, including shorter and safer commutes, increased public
park space, and housing stability to help children learn and thrive.
SEC. 2. Section 53545.9 of the Health and Safety Code is amended
to read:
53545.9. Of the one hundred million dollars ($100,000,000)
transferred to the Affordable Housing Innovation Fund established in
the State Treasury under subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, the following amounts shall be
allocated as follows:
(a) (1) The department shall make available the amount of fifty
million dollars ($50,000,000) for the Affordable Housing Revolving
Development and Acquisition Program.
(2) Of the amount made available for the program,
twenty-five million dollars ($25,000,000) shall be made available for
the Loan Fund and twenty-five million dollars ($25,000,000) shall be
made available for the Practitioner Fund. the amounts
shall be as follows:
(A) Twenty-five million dollars ($25,000,000) shall be made
available for the Loan Fund. Any funds not encumbered for the
purposes set forth pursuant to this subparagraph by the effective
date of the statute amending this section shall revert to the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2.
(B) Twenty-five million dollars ($25,000,000) shall be made
available for the Practitioner Fund.
(b) The department shall make available the amount of
five fifteen million dollars
($5,000,000) ($15,000,000) for the
Construction Liability Insurance Reform Pilot Program, which is
hereby established in the Department of Housing and Community
Development. The purpose of the program is to promote best practices
for residential construction quality control in housing programs
sponsored by the department or the California Housing Finance Agency,
as a means of reducing insurance rates for condominium developers in
this state. Funds shall be made available in the form of grants for
predevelopment costs of condominium projects funded by the department
or the California Housing Finance Agency that utilize enhanced
construction oversight and monitoring programs and processes,
including, but not limited to, video recording of the construction
process, use of quality control manuals, and increased quality
control inspections. California Pollution Control
Financing Authority, in consultation with the department, to
administer loans or grants under the California Recycle Underutilized
Sites (CALReUSE) program pursuant to Section 53545.14.
(c) The department shall make available the amount of thirty-five
million dollars ($35,000,000) for the local housing trust fund
matching grant program established under Section 50843.5. The
department shall make available 50 percent of this amount exclusively
for newly established housing trust funds.
(1) When awarding grants from the funds allocated under this
subdivision to existing trust funds, the department shall grant
preference to a housing trust fund that agrees to expend more than 65
percent of state funds for the purpose of downpayment assistance to
first-time homebuyers.
(2) When awarding grants from the funds allocated under this
subdivision to newly established housing trust funds, the department
shall set aside funding, for a period of 36 months from the date
funds are first made available, for newly established housing trust
funds that are in a county with a population of less than 425,000
persons, based on the decennial United States Census for the year
2000.
(3) (A) Notwithstanding any other provision of law, funds set
aside for newly established housing trust funds shall be available
for encumbrance for 42 months after the date the funds are first made
available and disbursements in liquidation of the encumbrance shall
be made before or during 48 months after the date funds are first
made available.
(B) Notwithstanding subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, any funds not encumbered for newly
established housing trust funds within 42 months after the date the
funds are first made available shall revert to the Self-Help Housing
Fund created by Section 50697.1 and shall be available for the
purposes described in subparagraph (D) of paragraph (1) of
subdivision (a) of Section 53545.
(d) The department shall make available the amount of ten million
dollars ($10,000,000) for the Innovative Homeownership Program, which
the department shall develop and implement as follows:
(1) The program shall be designed to increase or maintain
affordable homeownership opportunities for Californians with lower
incomes.
(2) The department shall adopt guidelines for the program that,
among other things, shall maximize the number of units assisted,
limit the expenditure of funds for administrative costs, and maximize
the leverage of public and private financing sources.
(3) The guidelines adopted by the department shall provide for the
issuance of a notice of funding availability soliciting competitive
proposals for the use of funds consistent with those guidelines and
with subparagraph (F) of paragraph (1) of subdivision (a) of Section
53545.
(4) The guidelines adopted by the department shall not be subject
to the requirements of Chapter 6.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
(5) The department shall include within the annual report required
under Section 50408 a detailed summary and description of the manner
in which funds made available under this subdivision were expended
during the previous year and a statement regarding the manner in
which those expenditures meet the intent of the Legislature and the
voters that funds from the Innovative Housing Fund be expended in
support of innovative, cost-saving approaches to creating or
preserving affordable housing.
(3) Any funds not encumbered for the purposes set forth in this
subdivision by the effective date of the statute amending this
section shall revert to the Multifamily Housing Program authorized by
Chapter 6.7 (commencing with Section 50675) of Part 2.
SEC. 3. The sum of twenty-five million dollars ($25,000,000) is
hereby appropriated from the Regional Planning, Housing, and Infill
Incentive Account in the Housing and Emergency Shelter Trust Fund of
2006 to the Department of Housing and Community Development for the
Housing-Related Parks Program pursuant to Chapter 8 (commencing with
Section 50700) of Part 2 of Division 31 of the Health and Safety
Code.
SEC. 4. The sum of five million dollars ($5,000,000) is hereby
appropriated from the Building Equity and Growth in Neighborhoods
Account in the Housing and Emergency Shelter Trust Fund of 2006 to
the Department of Housing and Community Development for the Building
Equity and Growth in Neighborhoods (BEGIN) Program pursuant to
Chapter 14.5 (commencing with Section 50860) of Part 1 of Division 31
of the Health and Safety Code.
SEC. 5. Funds appropriated in Sections 3 and 4 of this act shall
be awarded by the Department of Housing and Community Development no
later than 180 days from the date the statute enacting this act takes
effect. If funds are not awarded within the 180 days, the department
shall submit a report to the Legislature with an explanation for the
delay.
SEC. 6. This act addresses the fiscal emergency declared by the
Governor by proclamation on January 8, 2010 pursuant to subdivision
(f) of Section 10, of Article IV of the California Constitution.