Bill Text: CA AB1978 | 2021-2022 | Regular Session | Amended

California Assembly Bill 1978 (Prior Session Legislation)

CA State Legislature page for AB1978

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

Bill Title: Department of Housing and Community Development: powers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-28 - Chaptered by Secretary of State - Chapter 644, Statutes of 2022. [AB1978 Detail]

Download: California-2021-AB1978-Amended.html

Amended IN Assembly March 24, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1978

Introduced by Assembly Member Ward

February 10, 2022

An act to amend Section ~~1940 of the Civil Code,~~ 50406 of, and to add Sections 50405.5, 50406.9, and 50461 to, the Health and Safety Code, relating to ~~tenancy.~~ housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 1978, as amended, Ward. ~~Tenancy.~~ Department of Housing and Community Development: powers.

Existing law establishes the Department of Housing and Community Development and requires it to, among other things, administer various programs intended to fund the acquisition of property to develop or preserve affordable housing. Existing law grants the department various powers and duties, including, among other things, the power to provide advice, technical information, and consultative and technical services.
This bill would authorize the department, in administering those programs, to (1) publish a notice of funding availability and application deadlines ahead of, and contingent upon, availability of funding, (2) issue funding to an award recipient up-front rather than as a reimbursement, and (3) provide technical assistance to applicants that meet program submission deadlines to correct technical errors or provide missing information. The bill would authorize the department to update rules, regulations, and guidelines that the department is otherwise authorized to adopt, as necessary. The bill would require the department to establish and publish on its internet website a tracking system for the programs it administers that provides the deadlines for each step of a program application.
Existing law establishes within the department the Division of Codes and Standards, the Division of Housing Policy Development, and the Division of Financial Assistance. Existing law requires each division to be in the charge of a chief, who is appointed by the Governor, upon the recommendation of the director of the department.
This bill would authorize each division chief to appoint team leaders within their division to make routine decisions on behalf of the division chief.
Existing law regulates the terms and conditions of tenancies and defines the term “dwelling unit” for the purpose of regulating residential tenancies. Existing law excludes from these provisions, among other things, occupancy at a hotel or motel if certain conditions are met.
~~This bill would make nonsubstantive changes to these provisions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

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

SECTION 1.

Section 50405.5 is added to the Health and Safety Code, to read:

50405.5.
Each division chief may appoint team leaders within their division to make routine decisions on behalf of the division chief. Team leaders shall serve at the pleasure of their division chief.

SEC. 2.

Section 50406 of the Health and Safety Code is amended to read:

50406.

For the purposes of this division, the department has all of the following powers:

(a) To sue and be sued in its own name.

(b) To have an official seal and to alter it at pleasure.

(c) To make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions.

(d) To employ architects, planners, engineers, attorneys, accountants, experts in housing construction, management and finance, and any other advisers, consultants, and agents necessary for the performance of its functions and to fix their compensation in accordance with applicable law.

(e) To provide advice, technical information, and consultative and technical services as provided in this division.

(f) To establish, revise from time to time, and charge and collect fees and charges for services provided pursuant to this division.

(g) To accept gifts, grants, or loans of funds or property, or financial or other aid, from any federal or state agency or private source and to comply with conditions thereof not contrary to law.

(h) To enter into agreements or other transactions with any governmental agency, including an agreement for administration of a housing or community development program of the governmental agency by the department, or for administration by another governmental agency of a program of the department, either in whole or in part.

(i) To enter into any agreements and perform any acts necessary to obtain subsidies for use in connection with the exercise of powers and functions of the department, and to transfer those subsidies to others as required by the agreement.

(j) To appear on its own behalf before boards, commissions, departments, or other agencies of local, state, or federal government.

(k) To establish any regional offices necessary to effectuate the department’s purposes and functions.

(l) 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, lease, option, or otherwise, including easements or other incorporeal rights in property.

(m) To provide bilingual staff in connection with services of the department and make available departmental publications in a language other than English when necessary to effectively serve groups for which the services or publications are made available.

(n) To do any and all things necessary to carry out its purposes and exercise the powers expressly granted by this division.

(o) (1) To sell real property acquired by the department in a foreclosure, by deed in lieu of foreclosure, or sale under a power of sale on a deed of trust, lien, or by exercise of any other security interest on real property securing repayment of a loan or performance under a grant or loan made by the department. Real property so acquired shall be sold for market value and sale proceeds shall be placed in the fund from which the secured loan or grant was made.

(2) The department may establish terms, conditions, and restrictions for the sale of real property, including a requirement that the real property be used for housing for persons and families of low or moderate income, and those terms, conditions, and restrictions shall be set forth in the deed or other instrument of conveyance.

(3) The department may conduct the sale, utilize the assistance of any local public agency authorized to conduct sales of real property, contract with a licensed real estate broker to conduct the sale, or utilize other reasonable marketing methods if the department determines that one of these options will result in a more prompt or cost-efficient sale.

(4) If the director offers to sell residential real property directly pursuant to this subdivision, the department shall close escrow within 120 days after both of the following have occurred: a qualified buyer has received approval of the department; and the buyer has obtained adequate financing for the purchase. If the deadline set forth in this paragraph is not met, the director shall employ a licensed real estate broker in connection with the proposed sale. The department may exceed the time requirements of this paragraph if the director finds that this is necessary due to factors outside the control of the department, including death of the buyer, inability of the borrower to qualify for financing from a lender, substantial damage to the property resulting from a natural disaster or other act of God, or extraordinary procedural requirements or conditions imposed by the lender or title and escrow company.

(5) The director shall perform all of the actions specified in subparagraphs (A), (B), and (C) within 30 days after both of the following have occurred: a qualified buyer has received approval of the department; and the buyer has obtained adequate financing for the purchase.

(A) Identify repair work needed to be performed on the property.

(B) Cause an appraisal of the property to be completed.

(6) Sales of real property made pursuant to this section are not subject to the requirements of Sections 11011 and 11011.1 of the Government Code.

(7) Failure to comply with this subdivision does not invalidate any right, title, or interest acquired by a bona fide purchaser or encumbrancer for value.

(p) (1) Where the provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity or agency legal structure would cause a violation or not satisfy the requirements of any state financing being provided to a housing development by the department, the requirements of financing provided by the department may be modified as necessary to ensure program compatibility. Where provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity legal structure or agency create minor inconsistencies, as determined by the director of the department, the department may waive the requirements of the financing provided by the department, as deemed necessary, to avoid an unnecessary administrative burden.

(2) Matters that may be waived or modified pursuant to paragraph (1) include, but are not limited to, all of the following:

(A) Instrument recordation requirements.

(B) Security requirements for state financing provided pursuant to department programs.

(D) Target population percentage requirements, not to exceed a change of more than 5 percent of any amount expressly set forth in statute.

(E) Affordability levels and unit mix requirements, not to exceed a change of more than 5 percent of any amount expressly set forth in statute.

(F) Any matter not expressly or objectively set forth in statute, but is set forth with specificity in guidelines or regulations promulgated by the department.

(3) Any standard requirements or general rules of application that the department develops or implements to carry out modifications or waivers set forth in this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Divisions 3 of Title 2 of the Government Code.

(q) Where the department is vested with the authority to adopt rules, regulations, or guidelines by this part or any other law, the department may, as necessary, update those rules, regulations, and guidelines consistent with the underlying authority to adopt the rule or regulation.

SEC. 3.

Section 50406.9 is added to the Health and Safety Code, to read:

50406.9.
The department may do any of the following in administering any program established under this part unless specifically prohibited by other applicable law:
(a) Publish a notice of funding availability and application deadlines ahead of, and contingent upon, the availability of funding.
(b) Issue funding to an award recipient up-front rather than as a reimbursement, provided that the department provides ongoing support and monitoring of the funding.
(c) Provide technical assistance to applicants that meet program submission deadlines to correct technical errors or provide missing information, so that applications are not ultimately rejected because of a minor error or oversight.

SEC. 4.

Section 50461 is added to the Health and Safety Code, to read:

50461.
The department shall establish a tracking system for all programs established under this part and administered by the department. The tracking system shall, at a minimum, include the deadlines for each step of a program application. The tracking system shall be published on the department’s internet website.

SECTION 1.Section 1940 of the Civil Code is amended to read:
1940.
(a)Except as provided in subdivision (b), this chapter shall apply to all persons who hire dwelling units located within this state including tenants, lessees, boarders, lodgers, and others, however denominated.
~~(b)The term “persons who hire” shall not include a person who maintains either of the following:~~
(1)Transient occupancy in a hotel, motel, residence club, or other facility when the transient occupancy is or would be subject to tax under Section 7280 of the Revenue and Taxation Code. The term “persons who hire” shall not include a person to whom this paragraph pertains if the person has not made valid payment for all room and other related charges owing as of the last day on which their occupancy is or would be subject to tax under Section 7280 of the Revenue and Taxation Code.
(2)Occupancy at a hotel or motel where the innkeeper retains a right of access to and control of the dwelling unit and the hotel or motel provides or offers all of the following services to all of the residents:
~~(A)Facilities for the safeguarding of personal property pursuant to Section 1860.~~
~~(B)Central telephone service subject to tariffs covering the same filed with the California Public Utilities Commission.~~
~~(C)Maid, mail, and room services.~~
~~(D)Occupancy for periods of less than seven days.~~
(E)Food service provided by a food establishment, as defined in former Section 113780 of the Health and Safety Code, located on or adjacent to the premises of the hotel or motel and owned or operated by the innkeeper or owned or operated by a person or entity pursuant to a lease or similar relationship with the innkeeper or person or entity affiliated with the innkeeper.
(c)“Dwelling unit” means a structure, or the part of a structure, that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household.
~~(d)This section does not limit the application of any provision of this chapter to tenancy in a dwelling unit unless the provision is so limited by its specific terms.~~