Bill Text: CA SB1500 | 2023-2024 | Regular Session | Amended

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

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Bill Title: Housing: federal waiver: income eligibility.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-22 - Chaptered by Secretary of State. Chapter 491, Statutes of 2024. [SB1500 Detail]

Download: California-2023-SB1500-Amended.html

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Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1500

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Introduced by Senator Durazo

February 16, 2024

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An act to amend Section 17058 of the Revenue and Taxation Code, relating to taxation. add Sections 50199.24, 50517.11, 50675.16, 53545.11, 53559.4, 53567, and 53601 to the Health and Safety Code, and to add Section 987.011 to the Military and Veterans Code, relating to housing, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

SB 1500, as amended, Durazo. Personal Income Tax Law: low-income housing credit. Housing: federal waiver: income eligibility.

Existing federal law establishes federal housing assistance programs that are administered by the federal Department of Housing and Urban Development (HUD). Existing federal law authorizes HUD to waive regulations promulgated to implement these programs, as provided. Existing law, the Housing Authorities Law, establishes a housing authority in each county and each city, known as the housing authority of the county or city. Upon adoption of a resolution by the governing body of the county or city authorizing the authority to function in it, existing law authorizes an authority to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided.

Existing law establishes a low-income housing tax credit program through which, in order to promote the provision of affordable low-income housing within and throughout the state, the California Tax Credit Allocation Committee allocates low-income housing tax credits, in modified conformity with certain federal law. Existing law also establishes the Department of Housing and Community Development and requires it to administer various programs regarding housing for persons with specified incomes, including the Joe Serna, Jr. Farmworker Housing Grant Program, which is funded by a continuously appropriated fund, the Multifamily Housing Program, the Infill Incentive Grant Program of 2007, the Infill Incentive Grant Program of 2019, the Transit-Oriented Development Implementation Program, which is funded by a continuously appropriated fund, the Housing for a Healthy California Program, and the Veterans Housing and Homeless Prevention Act of 2014, which is funded by a continuously appropriated fund and which the department administers in collaboration with the California Housing Finance Agency and the Department of Veterans Affairs, as specified.

In jurisdictions for which HUD has granted a housing authority created pursuant to the Housing Authorities Law, as described above, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to or in connection with specified federal law, this bill would: (1) prohibit certain state entities from taking any negative actions, as specified, against certain participants in the programs described above unless the participant has not cured the noncompliance within 24 months of discovery of the violation; and (2) if an agreement between the participant and certain government entities imposes certain income restrictions, deem the tenant to satisfy that income restriction if certain requirements are met. By expanding the projects eligible to receive benefits from a continuously appropriated fund, this bill would make an appropriation.

Existing law establishes a low-income housing tax credit program for which the California Tax Credit Allocation Committee provides procedures and requirements for the allocation, in modified conformity with federal law, of state insurance, personal income, and corporation tax credit amounts to qualified low-income housing projects that have been allocated, or qualify for, a federal low-income housing tax credit, and farmworker housing.

This bill would make a nonsubstantive change to the personal income tax credit provisions of the program described above.

Digest Key

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Section 50199.24 is added to the Health and Safety Code, to read:

50199.24.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a housing credit applicant leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The Department of Housing and Community Development and the committee shall not take any negative actions against the housing credit applicant, unless the housing credit applicant has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, all of the following:

(A) Issuing negative points on a current or future application.

(B) Filing a Form 8823 with the Internal Revenue Service.

(C) Imposing a financial penalty.

(b) If an agreement between the housing credit applicant and the authority, the Department of Housing and Community Development, or the committee restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 2.

 Section 50517.11 is added to the Health and Safety Code, to read:

50517.11.

 (a) For purposes of this section, “grantee” has the same meaning as defined in Section 50517.5.

(b) In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a grantee leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(1) (A) The department shall not take any negative actions against the grantee, unless the grantee has not cured the noncompliance within 24 months of discovery of the violation.

(B) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(i) Issuing negative points on a current or future application.

(ii) Imposing a financial penalty.

(2) If an agreement between the grantee and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(A) The tenant experienced homelessness prior to moving into the unit.

(B) The tenant self-certified household income at no more than 30 percent of the area median income.

(C) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 3.

 Section 50675.16 is added to the Health and Safety Code, to read:

50675.16.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a sponsor leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The department and the California Tax Credit Allocation Committee shall not take any negative actions against the sponsor, unless the sponsor has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the sponsor and the authority, the department, or the California Tax Credit Allocation Committee restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 4.

 Section 53545.11 is added to the Health and Safety Code, to read:

53545.11.

 For purposes of the Infill Incentive Grant Program of 2007 established pursuant to Section 53545.13, in jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a developer leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The department shall not take any negative actions against the developer, unless the developer has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the developer and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 5.

 Section 53559.4 is added to the Health and Safety Code, to read:

53559.4.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a developer leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The department shall not take any negative actions against the developer, unless the developer has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the developer and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 6.

 Section 53567 is added to the Health and Safety Code, to read:

53567.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a developer leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The department shall not take any negative actions against the developer, unless the developer has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the developer and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 7.

 Section 53601 is added to the Health and Safety Code, to read:

53601.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a developer leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The department shall not take any negative actions against the developer, unless the developer has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the developer and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 60 percent of the area median income.

SEC. 8.

 Section 987.011 is added to the Military and Veterans Code, to read:

987.011.

 In jurisdictions for which the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver to streamline and reduce barriers to entry for unhoused populations seeking entry into projects pursuant to programs established pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if a developer leases a unit to an unhoused person and subsequently learns that the unhoused person does not meet applicable income requirements, then both of the following conditions apply:

(a) (1) The departments shall not take any negative actions against the developer, unless the developer has not cured the noncompliance within 24 months of discovery of the violation.

(2) For purposes of this paragraph, “negative actions” include, but are not limited to, both of the following:

(A) Issuing negative points on a current or future application.

(B) Imposing a financial penalty.

(b) If an agreement between the developer and the authority or the departments restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy that requirement if all of the following conditions are met:

(1) The tenant experienced homelessness prior to moving into the unit.

(2) The tenant self-certified household income at no more than 30 percent of the area median income.

(3) A third-party verification shows that the tenant has household income of no more than 50 percent of the area median income.