Amended  IN  Senate  June 11, 2019
Amended  IN  Assembly  April 25, 2019
Amended  IN  Assembly  April 11, 2019
Amended  IN  Assembly  March 26, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1232

Introduced by Assembly Member Gloria

February 21, 2019

An act to add Sections 12087.7, 12087.9, and 12087.10 to the Government Code, and to amend Section 39712 of the Health and Safety Code, relating to energy efficiency.


LEGISLATIVE COUNSEL'S DIGEST


AB 1232, as amended, Gloria. Affordable housing: weatherization.
Existing law requires the Department of Community Services and Development to, among other things, administer the Energy Efficiency Low-Income Weatherization Program and expend moneys appropriated by the Legislature for the proposes of the program.
This bill, commencing January 1, 2021, would require the owner of a dwelling, housing unit, or multiunit residential structure that receives assistance from the Low Income Low-Income Weatherization Program to maintain the unit as low-income residential housing for 10 years following completion of the weatherization service. service, and in the case of an unregulated housing, to maintain current rent levels plus an annual percentage rent increase, as specified, for 10 years following completion of the weatherization service. The bill would authorize the department to reduce the period of rent restriction for unregulated housing to not less than 5 years if specified requirements are met. The bill would require the department to develop standards that ensure program funded program-funded energy improvements provide net financial financial, health, or safety benefits to tenants, as specified.
This bill would require the department, by January 1, 2021, to coordinate with the Department of Housing and Community Development, the Energy Commission, and the Department of Health and Human Services to identify best practices from model programs, funding mechanisms, and a recommended action plan.
Existing law requires the State Energy Resources and Conservation Commission to, among other things, establish annual targets for statewide energy efficiency savings and demand reduction, including specific strategies for progress towards maximizing savings in disadvantaged communities served by the weatherization program.
This bill would, in addition to the commission’s recommendations, require the department to conduct provide an assessment of the program in targeting and implementation of energy efficiency projects in unregulated, below market rate multifamily affordable housing. program.
Existing law, the California Global Warming Solutions Act of 2006, designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law requires moneys from the fund to be allocated for the purpose of reducing greenhouse gas emissions in this state and satisfying other purposes, if applicable and to the extent feasible, and authorizes specified investments if the investment furthers the regulatory purposes of the act and is consistent with law.
This bill would specify that authorize an eligible expenditure of moneys appropriated to the Department of Community Services and Development from the Greenhouse Gas Reduction Fund shall be allocated for periods of not less than 5 years. to occur over multiple fiscal years and authorize the department to make multiyear funding commitments over a period of more than one fiscal year.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 12087.7 is added to the Government Code, to read:

12087.7.
 (a) Commencing January 1, 2021, the owner of a dwelling, housing unit, or multiunit residential structure that is subject to a deed restriction or other legally binding provision that receives assistance from the Low Income Low-Income Weatherization Program for the unit shall maintain the unit as low-income residential housing, as defined by paragraph (3) of subdivision (a) of Section 2852 of the Public Utilities Code, for a period of not less than 10 years from the date of completion of the weatherization services, regardless of the termination date of any deed restriction designation or other legally binding provision, and subject to subdivision (d). (e).
(b) (1) Commencing on January 1, 2021, in the case of housing that is not regulated by a deed restriction or other legally binding provision, the owner of a dwelling, housing unit, or multiunit residential structure that receives assistance from the Low-Income Weatherization Program for the unit, shall maintain rent levels that were in effect on January 1, 2021, for a period of not less than 10 years from the date of completion of the weatherization services, except that the owner may impose an annual percentage rent increase if both of the following are met:
(A) The increase is tied to the appropriate regional percentage increase in the Consumer Price Index for All Urban Consumers as reported and published by the United States Department of Labor, Bureau of Labor Statistics, for the previous 12-month period.
(B) The increase is no greater than ___ percent annually, as determined by the department.
(2) Notwithstanding paragraph (1), the department may decrease the period for unregulated housing described in paragraph (1) to no less than a five-year period if the following requirements are met:
(A) Unregulated properties comprise less than 5 percent of participating properties.
(B) The department has made good faith outreach efforts and sufficient funding has been appropriated by the Legislature.
(C) The department has conducted a robust notice and comment period.

(b)

(c) In order to ensure that tenants in qualifying, unregulated, multifamily properties receive net financial financial, health, or safety benefits from the Low Income Low-Income Weatherization Program and to implement the requirements of subdivision (a), the department shall develop standards that ensure program funded program-funded energy improvements provide net financial benefits to tenants, after due consideration of rent and utility costs, including appropriate protections against rent increases that could diminish net financial benefits, considering all relevant factors, including but not limited to, the cost and expected useful life of the improvement, owner and tenant financial contribution requirements, projected energy savings, current and projected rent levels, trends in local rental market conditions, and owner type. The department shall also develop standards of protections against involuntary displacement, including good cause eviction protection, displacement and define what is a material breach of the lease. The department shall also develop regulatory contractual or other enforcement provisions, including but not limited to:
(1) Recorded affordability contracts or lease addenda.
(2) Accessible complaint procedures.
(3) Restrictions on rent increases in case of resale of the property following the energy upgrade. placed on property at the time of sale that transfer to the new owner.

(c)

(d) Periodic monitoring and disclosure requirements ensuring affected tenants are provided with prompt access to relevant information concerning rent increases and energy savings. increases.

(d)

(e) The department shall determine the level of investment that warrants a dwelling, housing unit, or multiunit property to be subject to the terms of this section.

SEC. 2.

 Section 12087.9 is added to the Government Code, to read:

12087.9.
 By January 1, 2021, the Department of Housing and Community Development shall coordinate with the Department of Community Services and Development, the Energy Commission, and the Department of Health and Human Services to identify best practices from model programs, funding mechanisms, and provide a recommended action plan to do all of the following:
(a) Ensure greater cross-referral between public health agencies, the environmental health investigations branch, and the Low-Income Weatherization Program for comprehensive energy and healthy home improvements for low-income multifamily residents in disadvantaged communities.
(b) Promote projects that include energy improvements that do all of the following:
(1) Provide net financial benefits, inclusive of rent and utility costs.
(2) Provide health benefits to tenants in low-income multifamily properties.
(3) Provide increased indoor air quality and address asthma or respiratory issues triggered by mold and moisture.
(c) Create mechanisms for enforcing subdivision (a) of Section 12087.7 and any other state energy upgrade program requirements to maintain the affordability of benefiting units to low-income tenants.

SEC. 3.

 Section 12087.10 is added to the Government Code, to read:

12087.10.
 The department, in coordination with relevant agencies, shall conduct provide an assessment of the effectiveness of the program in targeting and implementation of energy efficiency projects in unregulated, below market rate multifamily affordable housing and in addition to the recommendations in subdivision (e) of Section 25310 and subdivision (c) of Section 25327 of the Public Resources Code. on or before January 1, 2023. The assessment shall contain both all of the following:
(a) A compilation of actual rates of rent increases and of tenant long-term relocation or eviction, for any reason, after energy upgrades received with the goal of better enforcing or adjusting affordability contracts and measures.
(b) A summary of the total number of properties that are not regulated by deed restrictions or other legally binding provisions that are below market rate multifamily affordable housing participating in the program, the marketing and outreach efforts of the department or the appropriate administrator pursued for this market segment, and the reasons given for nonparticipation, if any.

(b)A database of health issues in homes found

(c) In coordination with participating public health programs, a database of conditions found in homes that impact or could impact health negatively encountered when doing energy or health audits to better improve the design of track neighborhood hotspots and provide data for environmental screening and social determinants of health tools.

SEC. 4.

 Section 39712 of the Health and Safety Code is amended to read:

39712.
 (a) (1) It is the intent of the Legislature that moneys shall be appropriated from the fund only in a manner consistent with the requirements of this chapter and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(2) The state shall not approve allocations for a measure or program using moneys appropriated from the fund except after determining, based on the available evidence, that the use of those moneys furthers the regulatory purposes of Division 25.5 (commencing with Section 38500) and is consistent with law. If any expenditure of moneys from the fund for any measure or project is determined by a court to be inconsistent with law, the allocations for the remaining measures or projects shall be severable and shall not be affected.
(3) Moneys An eligible expenditure of moneys appropriated to the Department of Community Services and Development shall be allocated for periods of not less than five years. may occur over multiple fiscal years and the department may make multiyear funding commitments over a period of more than one fiscal year.
(b) Moneys shall be used to facilitate the achievement of reductions of greenhouse gas emissions in this state consistent with Division 25.5 (commencing with Section 38500) and, where applicable and to the extent feasible:
(1) Maximize economic, environmental, and public health benefits to the state.
(2) Foster job creation by promoting in-state greenhouse gas emissions reduction projects carried out by California workers and businesses.
(3) Complement efforts to improve air quality.
(4) Direct investment toward the most disadvantaged communities and households in the state.
(5) Provide opportunities for businesses, public agencies, Native American tribes in the state, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions.
(6) Lessen the impacts and effects of climate change on the state’s communities, economy, and environment.
(c) Moneys appropriated from the fund may be allocated, consistent with subdivision (a), for the purpose of reducing greenhouse gas emissions in this state through investments that may include, but are not limited to, any of the following:
(1) Funding to reduce greenhouse gas emissions through energy efficiency, clean and renewable energy generation, distributed renewable energy generation, transmission and storage, and other related actions, including, but not limited to, at public universities, state and local public buildings, and industrial and manufacturing facilities.
(2) Funding to reduce greenhouse gas emissions through the development of state‑of‑the‑art systems to move goods and freight, advanced technology vehicles and vehicle infrastructure, advanced biofuels, and low‑carbon and efficient public transportation.
(3) Funding to reduce greenhouse gas emissions associated with water use and supply, land and natural resource conservation and management, forestry, and sustainable agriculture.
(4) Funding to reduce greenhouse gas emissions through strategic planning and development of sustainable infrastructure projects, including, but not limited to, transportation and housing.
(5) Funding to reduce greenhouse gas emissions through increased in-state diversion of municipal solid waste from disposal through waste reduction, diversion, and reuse.
(6) Funding to reduce greenhouse gas emissions through investments in programs implemented by local and regional agencies, local and regional collaboratives, Native American tribes in the state, and nonprofit organizations coordinating with local governments.
(7) Funding research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded pursuant to this chapter.