Bill Text: CA AB2388 | 2015-2016 | Regular Session | Amended
Bill Title: Local government: housing: ownership.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2388 Detail]
Download: California-2015-AB2388-Amended.html
BILL NUMBER: AB 2388 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2016
INTRODUCED BY Assembly Member Gipson
FEBRUARY 18, 2016
An act to add and repeal Article 13
(commencing with Section 50295) to 7 (commencing with
Section 34390) of Chapter 1 of Part 1 of Division 1 of
Title 5 of the Government 2 of Division 24 of the
Health and Safety Code, relating to local government.
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2388, as amended, Gipson. Local government: housing: ownership.
Existing law, the Housing Authorities Law, declares that providing
safe and sanitary dwelling accommodations for persons of low income
is a public use and purpose for which public money may be spent and
private property acquired, and is a governmental function of state
concern. Existing law establishes procedures by which a local
government may create or authorize a local housing authority to
operate within it for this purpose. Existing law authorizes those
housing authorities to convey surplus lands, as specified, for the
development of homes for ownership by persons and families of low or
moderate income. Existing law requires every local housing authority
within a county or city to file on the first day of October of each
year with the Department of Housing and Community Development a
complete report of its activities during the previous fiscal year,
with specified recommendations.
This bill would require the department, in conjunction with the
California Housing Finance Agency to report, no later than January 1,
2018, on ways to increase homeownership for extremely low, very low,
and low-income households. The bill would require the department and
the agency to carry out and include in the report a survey of
housing authorities in California, as specified.
Existing law declares the intent of the Legislature to preserve,
upgrade, and expand the supply of housing to persons and families of
low or moderate income, through the sale of specified surplus
residential property owned by public agencies. Existing law
establishes priorities and procedures that any state agency disposing
of that surplus residential property is required to follow.
This bill, on or before January 1, 2018, would require every local
government agency, as defined, to adopt a mortgage program that,
among other things, allocates 10% of all single-family residences
that the local government agency owns and leases to become eligible
for purchase by tenants presently occupying the single-family
residence. The bill would require each local government agency to
adopt regulations for the administration of the program that include,
among other things, eligibility requirements that limit the program
to use by persons with extremely low income households, very low
income households, lower income households, or persons and families
of low or moderate income. By imposing new duties on local government
agencies, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 7 (commencing with Section
34390) is added to Chapter 1 of Part 2 of Division 24 of the
Health and Safety Code , to read:
Article 7. Department of Housing and Community Development
Report to the Legislature
34390. (a) For purposes of this section:
(1) "Department" shall refer to "The Department of Housing and
Community Development."
(2) "Agency" shall refer to "California Housing Finance Agency."
(b) The department, in conjunction with the agency, shall report
to the Legislature, no later than January 1, 2018, on ways to
increase homeownership for extremely low, very low, and low-income
households. In preparing this report, the department and the agency
shall develop a survey to gather information, including, but not
limited to, the following:
(1) The number of housing authorities in California, and the
number of single-family properties owned by housing authorities that
are available for lease to extremely low, very low, and low-income
families.
(2) The number of single-family homes owned by housing authorities
in the last five years that were converted to ownership, and the
names and descriptions of the programs through which the conversions
were made.
(3) The number of single-family homes that were purchased by
housing authorities using the federal Neighborhood Stabilization
Program (NSP) funding.
(4) The number of housing authorities that have a Section 32
Homeownership Plan through the United States Department of Housing
and Urban Development.
(5) The number of housing authorities that administer the federal
Family Self-Sufficiency Program.
(c) The department and the agency shall work with any applicable
association that represents housing authorities in California, in
order to obtain a successful response rate to the survey described in
subdivision (b) in order to capture the most accurate information.
(d) The report required by subdivision (b) shall also identify the
following:
(1) Barriers or impediments to transitioning into homeownership
for extremely low, very low, and low-income people.
(2) Using several case studies of local housing authorities with
successful homeownership programs, potential best practices for other
housing authorities to follow.
(3) Strategies to target extremely low, very low, and low-income
people for homeownership programs.
(4) Funding programs for homeownership and other opportunities to
help transition low and very-low income people to homeownership.
(e) (1) The report to be submitted pursuant to subdivision (b)
shall be submitted in compliance with Section 9795 of the Government
Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
article is repealed on January 1, 2022.
SECTION 1. Article 13 (commencing with Section 50295) is added to
Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code,
to read:
Article 13. Pathway To Home Ownership
50295. (a) As used in this section the following terms have the
following meanings:
(1) "Local government agency" means a city or county, including a
charter city, charter county, or charter city and county, or any
agency, authority, or department thereof.
(2) "Purchaser" means the tenant of a single family residence
owned by a local government agency that utilizes the program to
purchase a single-family residence.
(3) "Single-family residence" means a real property improvement
used, or intended to be used, as a dwelling unit for one family.
(b) On or before January 1, 2018, each local government agency
that owns and leases any single-family residence shall create a
mortgage program that meets the following requirements:
(1) Allocates 10 percent of all single family residences that the
local government agency owns and leases to become eligible for
purchase by tenants of the single family residence.
(2) Provides a mortgage to eligible tenants of single family
residences that allows those tenants to purchase the single-family
residence they are presently leasing.
(3) Offers a required informational session for interested tenants
to attend prior to purchase of a single-family residence through the
program. The session shall educate potential purchasers on their
legal rights and obligations in purchasing a property through the
program.
(4) Requires a valuation by the county assessor of any property
being purchased through the program.
(5) Offers a wait list for persons interested in purchasing a
property through the program if the local government agency has
already met the 10-percent threshold with properties in the process
of being purchased.
(c) The local government agency shall adopt regulations for the
administration of the mortgage program that shall include, but are
not limited to, the following:
(1) Mortgage eligibility requirements that are limited to tenants
that qualify as extremely low income households, as defined by
Section 50106 of the Health and Safety Code, very low income
households, as defined by Section 50105 of the Health and Safety
Code, lower income households, as defined by Section 50079.5 of the
Health and Safety Code, or persons and families of low or moderate
income.
(2) (A) The maximum length of the mortgage, which shall not exceed
30 years. Except as provided in subparagraph (B), the monthly
payment paid by a purchaser, including principal, interest,
insurance, property taxes and other property-related assessments and
taxes, and any required mortgage insurance, amortized over the term
of the mortgage, shall not exceed the amount the purchaser previously
paid as a tenant for occupancy in the property.
(B) A local government agency may reduce the payment requirements
for purchasers with extremely low income, as necessary.
(3) The local government agency may decline to offer use of the
program to a prospective purchaser if it determines that the
purchaser would not be able to consistently make on-time payments. A
prospective purchaser shall be permitted to reapply at a later date
if the local government agency declines to offer the prospective
purchaser use of the program.
SEC. 2. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
