Bill Text: CA AB2709 | 2009-2010 | Regular Session | Introduced
Bill Title: California Housing Finance Agency: federal loan
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-11-30 - From committee without further action. [AB2709 Detail]
Download: California-2009-AB2709-Introduced.html
BILL NUMBER: AB 2709 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Blumenfield
FEBRUARY 19, 2010
An act to amend Sections 50952, 50953, 51050, 51051, 51055, 51059,
and 51065 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2709, as introduced, Blumenfield. California Housing Finance
Agency: federal loan guarantee.
Existing law establishes the California Housing Finance Agency
which has the primary purpose of meeting the housing needs of persons
and families of low or moderate income and authorizes the agency to
make grants to housing sponsors for this purpose. The agency is
required to seek to attain, among other things, the objective of full
utilization of federal subsidy assistance for the benefit of person
and families of low or moderate income. Existing law requires the
agency to be a state representative for purposes of receiving and
allocating financial aid and contributions from agencies of the
federal government which are provided to the state or to the agency
for the purpose of subsidizing housing for persons and families of
low or moderate income.
This bill would authorize the agency to utilize federal subsidies
available to it to issue loan guarantees provided by the United
States Department of Housing and Urban Development. The bill would
authorize the agency to make loan guarantees, in addition to grants,
to nonprofit housing sponsors and local public entities, as
specified. The bill would require the loan guarantee assistance
provided by the department be allocated by and in conjunction with
the award of a tax credit for low-income rental housing by the
California Tax Credit Allocation Committee. The bill would make other
conforming changes to existing law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50952 of the Health and Safety Code is amended
to read:
50952. The agency shall also seek to attain all of the following
objectives:
(a) Acquisition of the maximum amount of funds available for
subsidies for the benefit of persons and families of low or moderate
income occupying units financed pursuant to this part.
(b) Housing developments providing a socially harmonious
environment by meeting the housing needs of both very low income
households and other persons and families of low or moderate income
and by avoidance of concentration of very low income households that
may lead to deterioration of a development.
(c) Emphasis on housing developments of superior design,
appropriate scale and amenities, and on sites convenient to areas of
employment, shopping, and public facilities.
(d) Increasing the range of housing choice for minorities in
lower income households and other lower income households, rather
than maintaining or increasing the impaction of low-income areas, and
cooperation in implementation of local and areawide housing
allocation plans adopted by cities, counties, and joint powers
entities made up of counties and cities.
(e) Reducing the cost of mortgage financing for rental and
cooperative housing to provide lower rent for persons and families of
low or moderate income.
(f) Reducing the cost of mortgage financing for home purchase, in
order to make homeownership feasible for persons and families of low
or moderate income.
(g) Identification of areas of low vacancy rates where
construction is needed, of areas of substandard housing where
rehabilitation is needed, and of areas of credit shortage where
financing is needed for transfer of existing housing, so as to
maximize the impact of financing activities on employment, reduction
of housing costs, and maintenance of local economic activity.
(h) A balance between urban metropolitan, nonmetropolitan, and
rural metropolitan housing developments, and between family housing
and housing for the elderly and handicapped, in general proportion to
the needs identified in the California statewide housing plan.
(i) Minimization of fees and profit allowances of housing
sponsors so far as consistent with acceptable performance, in order
to maximize the benefit to persons and families of low or moderate
income occupying units financed by the agency.
(j) Full utilization of federal subsidy assistance ,
including, but not limited to , loan guarantees
backed by the United States Department of Housing and Urban
Development, for the benefit of persons and families of low or
moderate income.
(k) Full cooperation and coordination with the local public
entities of the state in meeting the housing needs of cities,
counties, cities and counties, and Indian reservations and rancherias
on a level of government that is as close as possible to the people
it serves.
( l ) Promoting the recovery and growth of
economically depressed business located in areas of minority
concentration and in mortgage-deficient areas.
(m) Revitalization of deteriorating and deteriorated urban areas
by attracting a full range of income groups to central-city areas to
provide economic integration with persons and families of low or
moderate income in those areas.
(n) Implementation of the goals, policies, and objectives of the
California Statewide Housing Plan.
(o) Location of housing in public transit corridors with high
levels of service.
(p) Reducing the cost of mortgage financing for rental housing
development in order to attract private and pension fund investment
in such developments.
(q) Reducing the cost of mortgage financing for second unit
rental housing, as defined by Section 65852.2 of the Government Code,
in order to make rental housing more affordable for elderly persons
and persons and families of low or moderate income.
SEC. 2. Section 50953 of the Health and Safety Code is amended to
read:
50953. No provision of this division shall be construed as a
restriction or limitation upon any powers which the agency or any
local public entity might otherwise have under any laws of this
state, and this part is cumulative with respect to these powers. This
division shall be deemed to provide a complete, additional, and
alternative method for doing the things authorized thereby, and shall
be regarded as supplemental and additional to powers conferred by
other laws. The issuance of bonds and refunding bonds under this part
need not comply with the requirements of any other law applicable to
the issuance of bonds, and in the construction or acquisition of a
housing development or a residential structure pursuant to this
division, the agency need not comply with the requirements of any
other law applicable to construction or acquisition of public works,
except as specifically provided in this division. The agency shall
adopt regulations for review of construction contracts for the
construction or rehabilitation of housing developments and
residential structures financed , or issued loan guarantees
backed by the United States Department of Housing and Urban
Development, under this division and shall require that on
construction of this housing which is financed by a construction loan
or a loan guarantee from the agency, other than mutual
self-help housing developments, all workers employed in the
construction, exclusive of maintenance work, shall be paid not less
than the general prevailing rate or per diem wages for work of a
similar character in the locality in which the construction is
performed, and not less than the prevailing rate of per diem wages
for holiday and overtime work. The agency shall determine or require
determination of the general prevailing rate of per diem wages in
accordance with the standards set forth in Section 1773 of the Labor
Code. Apprentices shall be employed in the construction of housing
developments in accordance with the regulations of the agency, which
shall impose the same requirements as contained in Section 1777.5 of
the Labor Code, except as to differences necessitated by the methods
of awarding construction contracts for housing developments financed
under this division.
SEC. 3. Section 51050 of the Health and Safety Code is amended to
read:
51050. The agency shall have all of the following powers:
(a) To sue and be sued in its own name.
(b) To have an official seal and to alter the same at pleasure.
(c) To have perpetual succession.
(d) To maintain offices at any place or places within the state
which it may designate.
(e) To adopt, and from time to time amend and repeal, by action of
the board, either resolutions, or rules or regulations, not
inconsistent with this part, to carry into effect the powers and
purposes of the agency and the conduct of its business, except where
this part expressly requires the agency to act by rule or regulation.
If the agency acts by rule or regulation, the rule or regulation
shall be adopted, amended, repealed, and published in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
(f) Notwithstanding any other provision of law, to make and
execute contracts and all other instruments necessary or convenient
for the exercise of its powers and functions under this part with any
governmental agency, private corporation or other entity, or
individual, and to contract with any local public entity for
processing of any aspect of financing housing developments. Contracts
made or executed under the authority of this part shall not be
subject to any applicable provision of law requiring competitive
bidding or the supervision or approval of another division or officer
of state government.
(g) To acquire real or personal property, or any interest therein,
on either a temporary or long-term basis in its own name by gift,
purchase, transfer, foreclosure, a deed in lieu of foreclosure,
lease, option, or otherwise, including easements or other incorporeal
rights in property.
(h) To hold, sell, assign, lease, encumber, mortgage, or otherwise
dispose of any real or personal property or any interest therein; to
hold, sell, assign, or otherwise dispose of any mortgage interest
owned by it, under its control or custody, or in its possession; and,
as applicable, to do any of the acts specified in this subdivision
by public or private sale, with or without public bidding,
notwithstanding any other provision of law.
(i) To release or relinquish any right, title, claim, lien,
interest, easement, or demand however acquired, including any equity
or right of redemption in real property foreclosed by it or acquired
by it by a deed in lieu of foreclosure.
(j) To determine the terms and conditions of any mortgage
instrument, deed of trust, loan guarantee, or promissory
note used or executed in conjunction with the financing of any
housing development.
(k) To employ architects, engineers, attorneys, accountants,
housing construction and financial experts, and such other advisers,
consultants, and agents as may be necessary in its judgment and to
fix their compensation.
( l ) To provide advice, technical information, and
consultative and technical service in connection with the financing
of housing developments pursuant to this part.
(m) Notwithstanding any other provision of law, to insure or
reinsure against any loss in connection with its property and other
assets, including mortgages and mortgage loans, in amounts, in the
manner, and from those insurers as it deems desirable.
(n) To establish, revise from time to time, and charge and collect
fees and charges in connection with loans made or insured by the
agency.
(o) To borrow money and issue bonds, as provided in this part.
(p) To enter agreements and perform acts as are necessary to
obtain and maintain federal housing subsidies , including, but
not limited to, loan guarantees under Section 570 of Title 24 of the
Code of Federal Regulations for use in connection with housing
developments.
(q) To provide bilingual staff and make available agency
publications in a language, other than English, where necessary to
effectively serve all groups for which those services or publications
are made available.
(r) To require any individual, corporation, or other legal entity
operating, managing, or providing maintenance services for a housing
development or a residential structure to maintain a current
certificate of qualification developed and approved by the agency.
(s) To do any and all things necessary to carry out its purposes
and exercise the powers expressly granted by this part.
SEC. 4. Section 51051 of the Health and Safety Code is amended to
read:
51051. The agency shall be a state representative for purposes of
receiving and allocating financial aid and contributions from
agencies of the federal government which are provided to the state or
to the agency for the purpose of subsidizing housing for persons and
families of low or moderate income and may utilize federal subsidies
available to it in providing housing for persons and families of low
or moderate income , or to issue loa n guarantees by
the United States Department of Housing and Urban Development,
or for exercising any other of its powers. The agency shall have
priority among all other units of state government for receipt of
federal housing subsidies to the extent units financed under this
part are eligible for such assistance.
SEC. 5. Section 51055 of the Health and Safety Code is amended to
read:
51055. The agency may purchase and sell construction loans,
mortgage loans, property improvement loans, obligations secured by
these loans, insurance on these loans, loans guaranteed by the
United States Department of Housing and Urban Development, and
participation therein.
SEC. 6. Section 51059 of the Health and Safety Code is amended to
read:
51059. The agency may procure insurance or coinsurance or
guarantees or be granted loan guarantees from the federal
government or from any governmental agency or instrumentality
thereof, or from any private insurance company, of the payment of
principal, redemption price of, and interest on any bonds issued by
the agency. The agency may pay premiums on any such insurance.
SEC. 7. Section 51065 of the Health and Safety Code is amended to
read:
51065. The agency may make grants or loan guarantees to
nonprofit housing sponsors and local public entities to meet
expenses incurred in planning, constructing, rehabilitating, or
managing housing developments. The agency may make grants or
loan guarantees to housing sponsors for the purpose of lowering
the rents on some or all of the units within a housing development.
Grants authorized by this section shall not be made with proceeds
from the sale of bonds. Loan guarantee assistance provided by
the United States Department of Housing and Urban
Development shall be allocated by and in conjunction with the award
of a tax credit for low-income rental housing by the
California Tax Credit Allocation Committee.
