Bill Text: CA AB1969 | 2015-2016 | Regular Session | Amended
Bill Title: Affordable housing: home purchase assistance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB1969 Detail]
Download: California-2015-AB1969-Amended.html
BILL NUMBER: AB 1969 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2016
AMENDED IN ASSEMBLY MAY 4, 2016
AMENDED IN ASSEMBLY APRIL 21, 2016
AMENDED IN ASSEMBLY APRIL 13, 2016
AMENDED IN ASSEMBLY APRIL 6, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Steinorth
FEBRUARY 16, 2016
An act to amend Section 51504 of the Health and Safety Code,
relating to housing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1969, as amended, Steinorth. Affordable housing: home purchase
assistance.
Existing law establishes the California Homebuyer's Downpayment
Assistance Program, which requires the California Housing Finance
Agency to, among other things, administer a program that provides
downpayment assistance, including deferred-payment, low-interest,
junior mortgage loans to reduce principal and interest payments, that
makes financing affordable to first-time low- and moderate-income
home buyers, pursuant to specified terms.
This bill would appropriate $10,000,000 from the General Fund to
the California Homebuyer's Downpayment Assistance Program for the
purposes of the downpayment assistance program described above. The
bill would condition the application of these funds on an additional
requirement that the home for which assistance is provided be in a
development project that is in a designated infill site, close to
public transit, and that is located in a city, county, or city and
county that reduces developer or impact fees or reduces or removes
regulatory barriers to housing construction for the development
project, as specified. As part of this additional requirement, the
bill would require a local agency to provide verification of the
local agency's schedule of local fees, charges, and other exactions
to the California Housing Finance Agency and would thereby impose a
state-mandated local program. The bill would make these moneys
available for the general use of the California Housing Finance
Agency for the purposes of the California Homebuyer's Downpayment
Assistance Program if specified requirements are met.
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: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51504 of the Health and Safety Code is amended
to read:
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) (A) Except as provided in subparagraphs (B) and (C), the
amount of the downpayment assistance shall be due and payable at the
end of the term or upon sale of or refinancing of the home. The
borrower may refinance the mortgages on the home provided that the
principal and accrued interest on the junior mortgage loan securing
the downpayment assistance are repaid in full. All repayments shall
be made to the agency to be reallocated for the purposes of this
chapter.
(B) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable.
(C) The amount of the downpayment assistance shall not be due and
payable upon sale of the home if the first mortgage loan is insured
by the Federal Housing Administration (FHA) or if the first mortgage
loan is, or has been, transferred to the FHA, or if the requirement
is otherwise contrary to regulations of the United States Department
of Housing and Urban Development governing FHA insured first mortgage
loans.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For purposes of this section, "transit-oriented development
specific plan area" means a specific plan that meets the criteria set
forth in Section 65451 of the Government Code, is centered around a
rail or light-rail station, ferry terminal, bus hub, or bus transfer
station, and is intended to achieve a higher density use of land that
facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of housing developments, as
defined in Section 50073.5, and for-sale residential structures
through short-term loans pursuant to its authority pursuant to
Section 51100. However, the agency shall make downpayment assistance
provided pursuant to paragraph (1), subparagraphs (A) and (B) of
paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision
(a) the priority use for these funds. A loan made pursuant to this
section is not subject to Article 4 (commencing with Section 51175)
of Chapter 5.
(c) (1) In addition to the downpayment assistance program
authorized by subdivision (a), the agency shall provide downpayment
assistance from the funds appropriated by the act adding this
subdivision to first-time home buyers pursuant to paragraphs (1),
(2), (3), (4), and (6) of subdivision (a) for homes in development
projects that are located in designated infill sites, close to public
transit, and that are located in cities, counties, or cities and
counties that reduce developer or impact fees or reduce or remove
regulatory barriers to housing construction for the development
projects. The agency shall identify and shall objectively
measure the types of local agency actions or incentives that the
agency determines appropriately reduce developer or impact fees or
reduce or remove regulatory barriers to affordable housing projects.
These actions or incentives may include, but are not
limited to, modifications to any or all of the following:
(A) Local design review requirements.
(B) Land use controls.
(C) Building codes and enforcement.
(D) Onsite or offsite improvement requirements.
(E) Project design.
(F) Permit processing.
(G) (i) A 30-percent reduction in the schedule of local fees,
charges, and other exactions on local developers within the local
agency's jurisdiction within 12 months or more prior to the
submission of the application for assistance pursuant to this
subdivision. The local agency shall provide verification of the
reduction with supporting documents showing successive annual fee
schedules to the agency.
(ii) For the purposes of this subparagraph, "local fees, charges,
and other exactions" includes, but is not limited to, all of the
following:
(I) Planning and zoning fees.
(II) Environmental documentation fees.
(III) Building permit fees.
(IV) Plan check fees.
(V) School fees.
(VI) School mitigation fees.
(VII) Highway, road, traffic, and transit fees.
(VIII) Water, wastewater, sewer, and drainage fees.
(IX) Utility or water connection fees.
(X) Public safety fees.
(XI) Capital facilities fees.
(XII) Parks and recreation fees.
(XIII) Any other fee that may substitute for the requirements
described in subparagraph (D).
(2) Paragraph (1) applies only to the use of funds appropriated by
the act adding this subdivision and shall not be construed to apply
to the use of any other funds.
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.
SEC. 3. The sum of ten million dollars ($10,000,000) is hereby
appropriated from the General Fund to the California Homebuyer's
Downpayment Assistance Program for the purposes set forth in Section
51504 of the Health and Safety Code that satisfy the requirements of
subdivision (c) of that section. After 48 months of availability, if
the California Housing Finance Agency determines that these moneys
will not be utilized for the purposes set forth in Section 51504 of
the Health and Safety Code that satisfy the requirements of
subdivision (c) of that section, the moneys shall be available for
the general use of the California Housing Finance Agency for the
purposes of the California Homebuyer's Downpayment Assistance
Program.
