Bill Text: CA AB1637 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: City of San Diego: County of Santa Clara: housing authority: middle-income housing projects.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Enrolled) 2017-09-25 - Enrolled and presented to the Governor at 12 p.m. [AB1637 Detail]

Download: California-2017-AB1637-Amended.html

Amended  IN  Assembly  May 03, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1637


Introduced by Assembly Member Gloria

February 17, 2017


An act to add Section 34335 to the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1637, as amended, Gloria. Local housing authority: mixed-income housing projects.
The Housing Authorities Law authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. That law grants powers to an authority relating to, among other things, the issuance of bonds.
This bill would authorize a housing authority to also develop, operate, and provide financing for mixed-income housing projects, as defined, and to exercise any or all powers granted to the authority relating to, among other things, the issuance of bonds for these purposes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 The Legislature hereby finds and declares all of the following:
(a) Housing authorities are vitally important public agencies dedicated to preserving and increasing affordable housing throughout California.
(b) It is in the public interest that housing authorities maintain their focus on providing affordable housing options for extremely low, very low and low income Californians.
(c) It is also in the public interest that a continuum of housing be provided for a broad spectrum of persons, but specifically including those of low income and also including those earning middle incomes.
(d) It is in the public interest that mixed income projects be developed by housing authorities so that persons of divergent income levels may live in the same project, with each “mixed income housing project” including persons of low and very low incomes.
(e) By allowing housing authorities to develop and finance mixed income projects, additional low income housing will be built, much of which would not otherwise have been constructed because of insufficient financing options.
(f) Currently, there are inadequate sources of financing available to encourage developers to develop, construct and operate a sufficient number of mixed income projects to provide for a continuum of housing at various income levels.
(g) The lack of an adequate supply of housing at all levels drives up the rents and costs of ownership of all levels of housing, which has a detrimental effect upon the residents of the State of California. The absence of an adequate supply of housing for those households earning very low, low, moderate, and workforce incomes causes a disproportionate hardship on those households.
(h) The creation of additional middle income housing would allow for the development of housing for persons who are school teachers, nurses, police, first responders, and firefighters, among others.

SECTION 1.SEC. 2.

 Section 34335 is added to the Health and Safety Code, to read:

34335.
 (a) An authority may do both of the following:
(1) Develop, operate, and provide financing for mixed-income housing projects.
(2) Exercise any or all powers granted to the authority pursuant to Article 5 (commencing with Section 34350) for purposes of this section.
(b) For purposes of this section, all of the following shall apply:
(1) “Persons of workforce income” means persons and households whose income is 150 percent or less of area median income.
(2) “Persons of low income” means persons and households whose income is 80 percent or less of area median income.
(3) “Mixed-income housing project” means a project to which both of the following apply:
(A) At least 20 percent of the units, except for manager’s units, are affordable to, and occupied by, persons of low income.
(B) The project includes workforce housing.
(4) “Workforce housing” means units affordable to, and occupied by, persons of workforce income.

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