Bill Text: CA AB140 | 2021-2022 | Regular Session | Amended

California Assembly Bill 140 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Housing.

Spectrum: Committee Bill

Status: (Passed) 2021-07-19 - Chaptered by Secretary of State - Chapter 111, Statutes of 2021. [AB140 Detail]

Download: California-2021-AB140-Amended.html

Amended IN Senate June 27, 2021

Amended IN Assembly February 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 140

Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Chiu, Cooper, Frazier, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, and Wood)

January 08, 2021

An act ~~relating to the Budget Act of 2021.~~ to amend Section 14671.2 of the Government Code, and to add Section 53559.3 to the Health and Safety Code, relating to housing, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL'S DIGEST

AB 140, as amended, Committee on Budget. ~~Budget Act of 2021.~~ Housing: letting of state property: Infill Infrastructure Grant Program of 2019.

(1) Existing law authorizes the Director of General Services, with the consent of the state agency concerned and the approval of the governing body of any concerned local agency, to lease state-owned real property when the Director of General Services deems that leasing serves a beneficial public purpose limited to the development of housing, including emergency shelters or park and recreation facilities. Existing law requires that at least 25% of the housing units developed on state property leased pursuant to these provisions be available for the term of the lease to persons and families of very low, low, and moderate income, as provided.
This bill would remove the above-described requirement that the leasing receive the approval of the governing body of any concerned local agency. The bill would expand the list of beneficial public purposes for which property may be leased to include permanent supportive housing and traditional housing.
The bill would instead require that a minimum of 20% of housing units developed pursuant to these provisions be made available for the term of the lease to, and occupied by, lower income households and very low income households, as provided. The bill would authorize the Director of Housing and Community Development to prescribe alternative minimum percentages in each income category in specified instances.
This bill would authorize the Director of General Services to permit commercial development on property leased pursuant to these provisions if the Director of Housing and Community Development deems the commercial development necessary for the successful delivery of housing to lower income households and deems the commercial development to provide community benefits. The bill would, upon a written formal recommendation from the Director of Housing and Community Development that it is in the best interest of the state and reasonably necessary to facilitate the development of affordable housing, authorize the Director of General Services to permit phased development, subject to specified terms and conditions, or to sell property or portions of a property that have been leased pursuant to these provisions for housing to a lessee for the purposes of affordable homeownership, consistent with specified affordability provisions.
(2) Existing law establishes the Infill Infrastructure Grant Program of 2019, which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area, as those terms are defined, pursuant to specified requirements. Existing law requires the department to administer a competitive application process for grants for selected capital improvement projects for large jurisdictions and requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions.
This bill would, upon appropriation of the Legislature, authorize the department to expend $250,000,000 for the Infill Infrastructure Grant Program of 2019. In this regard, the bill would allocate $160,000,000 of those funds for selected capital improvement projects for large jurisdictions under the program and $90,000,000 for over-the-counter grants for capital improvement projects for small jurisdictions under the program. The bill would authorize up to 5% of these funds to be set aside for program administration, including state operations expenditures and technical assistance.
(3) This bill would appropriate $750,000 from the General Fund to the Department of Housing and Community Development, to be allocated to Habitat for Humanity of Greater Sacramento and used for the Mandolin Estates housing development in South Sacramento. The bill would make legislative findings and declarations as to the public purpose served by these provisions.
(4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
~~This bill would express the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2021.~~

Vote: MAJORITY Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO

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

SECTION 1.

Section 14671.2 of the Government Code is amended to read:

14671.2.

(a) Notwithstanding Section 14670, the ~~Director of General Services,~~ director, with the consent of the state agency ~~concerned and the approval of the governing body of any concerned local agency,~~ concerned, may let for any period of time any real property or interest in real property ~~which~~ that belongs to the state, when the director deems the letting serves a beneficial public purpose limited to the development of housing, including permanent supportive or traditional housing and emergency ~~shelters,~~ shelters or park and recreation facilities. ~~The~~

(b) Notwithstanding subdivision (a), the director may permit commercial development on property leased pursuant to this section for affordable housing purposes if the Director of Housing and Community Development deems the commercial development necessary for the successful delivery of housing to lower income households and deems the commercial development to provide community benefits, including community-serving retail and amenities.

(c) The leases under this section shall be let in accordance with procedures prescribed by the director ~~which~~ that facilitate development of housing or park and recreation facilities when such use is compatible with current use and foreseeable future use of the property. All proposed leases shall be reviewed by the State Public Works Board. In

(d) (1) In all ~~cases, however,~~ cases, at least 25 20 percent of the housing units developed on state property leased pursuant to this section shall be available for the term of the lease to moderate-income persons as defined by Section 50093 of the Health and Safety Code, 12.5 percent shall be available for the term of the lease to low-income persons as defined by Section 50093 of the Health and Safety Code, and 12.5 percent shall be available for the term of the lease to very low-income persons as defined by Section 50105 of the Health and Safety Code. to, and occupied by, lower income households, of which at least 10 percent shall be available to, and occupied by, very low income households.

(2) For each lease, the minimum percentage in each income category shall be prescribed by the Director of Housing and Community Development, taking into account economic feasibility and housing need in the jurisdiction or region where the property is located. The Director of Housing and Community Development may prescribe alternative minimum percentages in each income category in instances when the alternative income mix results in a greater net gain of units affordable to lower income households and does not result in less than 20 percent of all units being affordable to lower income households and less than 10 percent of all units being affordable to very low income households.
(e) Upon a written formal recommendation from the Director of Housing and Community Development that it is in the best interest of the state and reasonably necessary to facilitate the development of affordable housing, the director may permit phased development, subject to those terms, conditions, restrictions, and financial incentives and disincentives as the director determines are necessary to ensure that commitments for subsequent phases will be fulfilled.
(f) (1) Upon a written formal recommendation from the Director of Housing and Community Development that it is in the best interest of the state and reasonably necessary to facilitate the development of affordable housing, the director may sell property or portions of a property that have been leased for housing pursuant to this section to a lessee for the purposes of affordable homeownership consistent with the affordability provisions of this section.
(2) Not less than 30 days before entering into any lease when selling portions of state property is contemplated, the director shall notify the Chairperson of the Joint Legislative Budget Committee, or the chairperson’s designee, in writing of the director’s intention to enter into the agreement. The notification shall include a written finding of the director’s determination that the proposed sale is in the best interest of the state and is reasonably necessary to facilitate development of housing affordable to lower income households.
In

(g) In letting leases pursuant to this section, the director shall: (1) give preference to projects which provide for more affordable units than required by the percentages specified in this section; (2) determine that the project is compatible with local planning goals and environmental objectives. shall give preference to projects that provide for either the greatest number of units affordable to lower and very low income households, or that provide for more units affordable to lower and very low income households than required by the Director of Housing and Community Development pursuant to subdivision (d).

~~The~~

(h) The director may enter into leases pursuant to this section at less than market value, provided that the cost of administering the lease is recovered. The Department of Housing and Community Development shall recommend to the ~~Director of General Services~~ director a lease amount ~~which~~ that will enable the provision of housing for ~~persons of low and moderate income.~~ lower income households.

~~All~~

(i) All leases executed pursuant to this section shall contain a recital that the director has found the letting serves the required beneficial public purpose and complies with all provisions of this section, which recital shall be conclusive in favor of lessees from the state and their mortgagees.

(j) For purposes of this section:
(1) “Director” means the Director of General Services.
(2) “Lower income households” means the same as defined in Section 50079.5 of the Health and Safety Code.
(3) “Very low income households” means the same as defined in Section 50105 of the Health and Safety Code.

SEC. 2.

Section 53559.3 is added to the Health and Safety Code, to read:

53559.3.
(a) Upon appropriation by the Legislature, the department may expend the sum of two hundred fifty million dollars ($250,000,000) for the Infill Infrastructure Grant Program of 2019, as follows:
(1) One hundred sixty million dollars ($160,000,000) shall be allocated to fund grants pursuant to subdivision (c) of Section 53559.
(2) Ninety million dollars ($90,000,000) shall be allocated to fund grants pursuant subdivision (d) of Section 53559.
(b) Of the amount appropriated in subdivision (a), up to 5 percent of the funds shall be set aside for program administration, including state operations expenditures and technical assistance.

SEC. 3.

The sum of seven hundred fifty thousand dollars ($750,000) is hereby appropriated from the General Fund to the Department of Housing and Community Development, to be allocated to Habitat for Humanity of Greater Sacramento and used for the Mandolin Estates housing development in South Sacramento.

SEC. 4.

The Legislature finds and declares that the appropriation to the Department of Housing and Community Development pursuant to Section 3 of this act serves the public purpose of creating more housing within the Sacramento region, thereby helping to relieve the shortage of affordable housing in this state. Therefore, the Legislature finds and declares that Section 3 of this act does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.

SEC. 5.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.

SECTION 1.
~~It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2021.~~