Bill Text: CA AB140 | 2021-2022 | Regular Session | Amended
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
July 11, 2021 |
Amended
IN
Senate
June 27, 2021 |
Amended
IN
Assembly
February 18, 2021 |
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 |
LEGISLATIVE COUNSEL'S DIGEST
(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.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 12334 is added to the Government Code, to read:12334.
(a) As soon as April 1, 2022, but no later than one year after the effective date of this chapter, the Treasurer, in consultation with the California Housing Finance Agency, the California Department of Housing and Community Development, and other relevant stakeholders, shall develop a framework for a program called the California Dream For All Program, in accordance with the goals and intent of this section, and submit a report outlining the framework for the program to the Legislature in accordance with Section 9795. The report shall include, but not be limited to, the structure of the program, the administering entity, the program’s financial structure, the type of financial assistance offered to homeowners, and analysis of the feasibility of establishing the program, financial risks to the State of California and the costs and benefits of the program compared to available alternatives and existing programs and how these costs and risks compare to the costs and risks to society of continuing current barriers to homeownership for working families and not combating systemic racism and inequities that have kept generations from building wealth and thriving in the middle class.SEC. 2.
Section 14671.2 of the Government Code is amended to read:14671.2.
(a) Notwithstanding Section 14670, theSEC. 3.
Section 37001 of the Health and Safety Code is amended to read:37001.
The term “low-rent housing project,” as defined in Section 1 of Article XXXIV of the California Constitution, does not apply to any development composed of urban or rural dwellings, apartments, or other living accommodations, that meets any one of the following criteria:SEC. 4.
Section 50216 of the Health and Safety Code is amended to read:50216.
For purposes of this chapter:SEC. 5.
Section 50217 of the Health and Safety Code is amended to read:50217.
(a) The Homeless Housing, Assistance, and Prevention program is hereby established for the purpose of providing jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing.SEC. 6.
Section 50218.6 is added to the Health and Safety Code, to read:50218.6.
(a) Upon appropriation by the Legislature, one billion dollars ($1,000,000,000) of the funds administered pursuant to this chapter shall be made available in the 2021–22 fiscal year for implementing round 3 of the program, as follows:SEC. 7.
Section 50218.7 is added to the Health and Safety Code, to read:50218.7.
(a) Upon appropriation by the Legislature, one billion dollars ($1,000,000,000) of the funds administered pursuant to this chapter shall be made available in the 2022–23 fiscal year for implementing round 4 of the program, as follows:SEC. 8.
Section 50220.6 of the Health and Safety Code is amended to read:50220.6.
(a) Notwithstanding any law, a recipient that enters into an agreement as set forth in paragraph (10) of subdivision (a) of SectionSEC. 9.
Section 50220.7 is added to the Health and Safety Code, to read:50220.7.
(a) (1) No later than September 15, 2021, the council shall issue a standard agreement for applicants to apply for round 3 program funds, which shall include, at minimum, a requirement for applicants to submit an application that includes a local homelessness action plan and specific outcome goals based on the Homeless Management Information System performance metrics as described in subdivision (b).SEC. 10.
Section 50220.8 is added to the Health and Safety Code, to read:50220.8.
(a) (1) The council shall make an application for round 4 program allocations available no later than September 30, 2022.SEC. 11.
Section 50221 of the Health and Safety Code is amended to read:50221.
(a) After receiving program funds, a recipient, by January 1 of the year following receipt of the funds and annually on that date thereafter until all funds have been expended, shall submit a report to theSEC. 12.
Section 50223 is added to the Health and Safety Code, to read:50223.
(a) Beginning with round 3 of the program, in addition to the data required under Sections 50221 and 50222, applicants shall provide the following information for all rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by the council:SEC. 13.
Chapter 7 (commencing with Section 50250) is added to Part 1 of Division 31 of the Health and Safety Code, to read:CHAPTER 7. Encampment Resolution Funding Program
50250.
For purposes of this chapter, the following definitions shall apply:50251.
(a) The Encampment Resolution Funding program is hereby established to, upon appropriation by the Legislature, increase collaboration between the council, local jurisdictions, and continuums of care for the following purposes:50252.
(a) The council shall distribute moneys appropriated for purposes of the program in accordance with this chapter.50253.
(a) The council shall administer the program in accordance with the following timelines:50254.
(a) Notwithstanding any other law, all recipients of funds pursuant to this chapter shall provide data elements, including, but not limited to, health information, in a manner consistent with state and federal law, to their local Homeless Management Information System for tracking in the statewide Homeless Data Integration System.SEC. 14.
Chapter 8 (commencing with Section 50255) is added to Part 1 of Division 31 of the Health and Safety Code, to read:CHAPTER 8. Family Homelessness Challenge Grants and Technical Assistance
50255.
For purposes of this chapter:50256.
(a) The Family Homelessness Challenge Grants and Technical Assistance Program is hereby established for the purpose of providing one-time grants and technical assistance to local jurisdictions in order to address and end family homelessness.50257.
(a) Upon appropriation by the Legislature, forty million dollars ($40,000,000) or whatever greater or lesser sum is appropriated for purposes of the program, shall be distributed in accordance with this subdivision.50258.
(a) (1) The council shall make available an application for the first round of allocations no later than March 1, 2022.50259.
(a) All recipients of funds pursuant to this chapter shall provide data elements, including, but not limited to, health information, in a manner consistent with federal law, to their local Homeless Management Information System, for tracking in the statewide Homeless Data Integration System.SEC. 15.
Chapter 3.15 (commencing with Section 50515.06) is added to Part 2 of Division 31 of the Health and Safety Code, to read:CHAPTER 3.15. Regional Early Action Planning Grants Program of 2021
50515.06.
For purposes of this chapter:50515.07.
(a) (1) The Regional Early Action Planning Grants Program of 2021 is hereby established for the purpose of providing regions with funding, including grants, for transformative planning and implementation activities.50515.08.
(a) The funds described in paragraph (2) of subdivision (a) of Section 50515.07 shall be available only to the following entities before any suballocation:50515.09.
(a) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 85 percent shall be available to the entities described in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. The maximum amount that an entity may receive pursuant to this subdivision shall be determined as follows:50515.10.
(a) (1) Subject to paragraph (2), an eligible entity that receives an allocation of program funds pursuant to Section 50515.08 shall submit a report, in the form and manner prescribed by the department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that includes, but is not limited to, the following information:SEC. 16.
Chapter 5.5 (commencing with Section 50606) is added to Part 2 of Division 31 of the Health and Safety Code, to read:CHAPTER 5.5. Affordable Housing Preservation
50606.
(a) It is the intent of the Legislature in enacting this chapter to provide the department the flexibility necessary to maintain the supply and quality of the affordable rental housing units for which there has already been a significant public investment.50607.
(a) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than five years, or are otherwise at risk for conversion.50608.
(a) For any loans issued pursuant to this chapter, principal and accumulated interest is due and payable upon completion of the term of the loan. The loan shall bear simple interest at the rate of 3 percent per annum on the unpaid principal balance. The department shall require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. For the first 30 years of the loan term, the amount of the required loan payments shall not exceed 0.42 percent per annum.50609.
(a) The department may designate an amount not to exceed 1.5 percent of funds appropriated for use pursuant to this chapter for the purposes of curing or averting a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale where the default or foreclosure sale would jeopardize the department’s security in the rental housing development assisted pursuant to this chapter. The funds so designated shall be known as the “default reserve.”SEC. 17.
Chapter 6.6 (commencing with Section 50672) is added to Part 2 of Division 31 of the Health and Safety Code, to read:CHAPTER 6.6. Loans and Grants to Qualified Rental Housing Developments
50672.
It is the intent of the Legislature in enacting this chapter to expedite the construction and production of housing developments that have received a commitment of funds from multifamily housing programs administered by the department, but are unable to proceed because the developments have been unable to obtain tax credit and bond allocations.50672.1.
For purposes of this chapter:50672.2.
(a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may award a forgivable loan or grant to a qualified rental housing development to replace federal and state low-income housing credit equity contained in the application for which the development received the original award letter or, if applicable, a subsequent application to the California Tax Credit Allocation Committee.50672.3.
In order to expedite the development of qualified rental housing developments that are ready to proceed to construction except for obtaining tax credit or bond allocations from the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee, the department may adopt guidelines to administer this chapter. Guidelines adopted pursuant to this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).SEC. 18.
Section 50675.1 of the Health and Safety Code, as amended by Section 3 of Chapter 192 of the Statutes of 2020, is amended to read:50675.1.
(a) This chapter shall be known and may be cited as the Multifamily Housing Program.SEC. 19.
Section 50675.1 of the Health and Safety Code, as added by Section 4 of Chapter 192 of the Statutes of 2020, is amended to read:50675.1.
(a) This chapter shall be known and may be cited as the Multifamily Housing Program.SEC. 20.
Section 50675.1.3 is added to the Health and Safety Code, to read:50675.1.3.
(a) Notwithstanding any other law, including subdivision (b) of Section 50675.1, funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness, as defined by this section, and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases, shall be disbursed in accordance with the Multifamily Housing Program, including as grants to cities, counties, cities and counties, and all other state, regional, and local public entities, including councils of government, metropolitan planning organizations, and regional transportation planning agencies designated in Section 29532.1 of the Government Code, as necessary, for the following uses:SEC. 21.
Section 50675.1.4 is added to the Health and Safety Code, to read:50675.1.4.
(a) Notwithstanding any other law, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) shall not apply to any project, including a phased project, funded pursuant to Section 50675.1.3 if all of the following requirements, if applicable, are satisfied:SEC. 22.
Chapter 8.2 (commencing with Section 50704.80) is added to Part 2 of Division 31 of the Health and Safety Code, to read:CHAPTER 8.2. Excess Site Local Government Matching Grants Program
50704.80.
For purposes of this chapter, the following definitions shall apply:50704.81.
(a) (1) The Excess Sites Local Government Matching Grants Program is hereby established for the purpose of providing selected developers with one-time grants for development activities to enable development on excess state-owned property.50704.82.
Excess sites local government matching grants shall be available to selected developers that will receive contributions from local governments in accordance with the following:50704.83.
(a) (1) A selected developer that receives a grant pursuant to this chapter shall submit a report, in a form and manner prescribed by the department, by December 31 of the year following the receipt of those funds, and annually thereafter until December 31, 2024, that contains the following information:SEC. 23.
Chapter 8.6 (commencing with Section 50720) is added to Part 2 of Division 31 of the Health and Safety Code, to read:CHAPTER 8.6. Foreclosure Intervention Housing Preservation Program
50720.
The Foreclosure Intervention Housing Preservation Program is hereby created for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property. The program shall be administered by the department and shall provide loans and grants as described in this chapter.50720.2.
(a) The Foreclosure Intervention Housing Preservation Program is hereby established. The department shall administer the program for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property.50720.4.
As used in this chapter:50720.6.
(a) The department shall contract with one or more fund managers to manage the program until June 30, 2026. The contract with the fund manager or the contracts with the fund managers may be renewed past June 30, 2026, if funds are available and if deemed appropriate by the department.50720.8.
(a) A borrower or grantee that receives funds from a loan made pursuant to the program shall only use the funds as follows:50720.10.
A loan made pursuant to the program may be partially or fully converted to a grant.50720.12.
(a) The department shall adopt guidelines for the administration of the program. The guidelines shall comply with all of the following:SEC. 24.
Section 53559 of the Health and Safety Code is amended to read:53559.
(a) The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.SEC. 25.
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:SEC. 26.
Section 1785 is added to the Labor Code, to read:1785.
(a) The director shall establish and maintain a strategic enforcement unit focused on construction, alteration, and repair projects. The unit shall enhance the department’s enforcement of this code in construction, alteration, and repair projects, including projects funded pursuant to Section 50675.1.3 of the Health and Safety Code and other publicly funded residential construction projects. The unit shall have primary responsibility for enforcement of this code in construction projects subject to Section 50675.1.3 of the Health and Safety Code. Any funds appropriated to the department for purposes of this section shall be administered and allocated by the director.SEC. 27.
Section 8257.1 is added to the Welfare and Institutions Code, to read:8257.1.
(a) It is the intent of the Legislature to obtain trustworthy information to connect funding allocated to prevent and end homelessness with established sheltering and housing resources and to provide state agencies with accurate information to allow for more accurate forecasting to target future investments. To advance these goals, the coordinating council shall, upon appropriation by the Legislature, do all of the following:SEC. 28.
Section 8257.2 is added to the Welfare and Institutions Code, to read:8257.2.
(a) Notwithstanding any other law, for purposes of designing, collecting data for, and approving the assessment described in Section 8257.1, a state agency that has a member on the coordinating council shall, within 60 days of a request for data pertaining to that state agency, provide to the council, or the entity conducting the assessment, the requested data, including, but not limited to, the number or rate of persons exiting state-funded institutional settings into homelessness. State agencies shall be granted reasonable extensions beyond 60 days as necessary to produce high quality data. The state department or agency shall remove any personally identifying data provided pursuant to this subdivision, if any.SEC. 29.
The Legislature hereby finds and declares that the grants authorized under the Excess Sites Local Government Matching Grants Program, established by Chapter 8.2 (commencing with Section 50704.80) of Part 2 of Division 31 of the Health and Safety Code and grants authorized under Chapter 8.6 (commencing with Section 50720) of Part 2 of Division 31 of the Health and Safety Code, as added by this act, serve the public purpose of increasing the availability of, or preserving, affordable housing in the state and promoting resident ownership or nonprofit organization ownership of residential real property, and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 30.
The Legislature finds and declares that Sections 13 and 14 of this act, which add Chapter 7 (commencing with Section 50250) and Chapter 8 (commencing with Section 50255) to Part 1 of Division 31 of the Health and Safety Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:SEC. 31.
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.(a)Notwithstanding Section 14670, the director, with the consent of the state agency concerned, may let for any period of time any real property or interest in real property
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 or park and recreation facilities.
(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 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.
(d)(1)In all cases, at least
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, 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.
(g)In letting leases pursuant to this section, the director
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).
(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 a lease amount that will enable the provision of housing for lower income households.
(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.
(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.
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.
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.
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.