Bill Text: CA AB2233 | 2021-2022 | Regular Session | Introduced

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

---

Bill Title: Excess state land: development of affordable housing.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2022-09-19 - Chaptered by Secretary of State - Chapter 438, Statutes of 2022. [AB2233 Detail]

Download: California-2021-AB2233-Introduced.html

---

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2233

---

Introduced by Assembly Member Quirk-Silva

February 15, 2022

---

An act to add Section 15438.1 to, to add Article 3 (commencing with Section 12336) to Chapter 4 of Part 2 of, Division 3 of Title 2 of, and to add Part 7.2.1 (commencing with Section 15464) to Division 3 of Title 2 of, the Government Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 2233, as introduced, Quirk-Silva. Public Housing Loan Fund and Program: Public Housing Financing Authority.

Existing law establishes the California Health Facilities Financing Authority (CHFFA) for purposes of administering the California Health Facilities Financing Authority Act. Existing law authorizes, among other things, the authority to make secured or unsecured loans to, or purchase secured or unsecured loans of, any participating health institution in accordance with an agreement between the authority and the participating health institution to refinance indebtedness incurred by that participating health institution or a participating health institution that controls or manages, is controlled or managed by, is under common control or management with, or is affiliated with that participating health institution, in connection with projects undertaken or for health facilities acquired or for working capital.

This bill would establish the Public Housing Loan Fund for purposes of establishing and administering, upon appropriation by the Legislature, the Public Housing Loan Program and making loans pursuant to that program. The bill would require CHFFA to administer the fund and program from January 1, 2023, to December 31, 2025, and would require the Public Housing Financing Authority (PHFA), as established on January 1, 2025, in the Treasurer’s office by the bill, to administer the fund and program on and after January 1, 2026. The bill would authorize the CHFFA and PHFA to make and award loans from the fund for purposes of the program. This bill would require the CHFFA or PHFA, as applicable, to establish requirements for a local agency to be eligible to receive a loan under the program, including, but not limited to, requiring that the loan be used to cover construction costs for public housing on property owned by the local agency.

Digest Key

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

---

Bill Text

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

SECTION 1.

 Article 3 (commencing with Section 12336) is added to Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article  3. Public Housing Financing Authority

12336.

 There is hereby established the Public Housing Financing Authority in the Treasurer’s office.

12336.1.

 For purposes of this article, all of the following definitions apply:

(a) “Authority” means the Public Housing Financing Authority.

(b) “Administering entity” has the same meaning as defined in Section 15464.1.

(c) “Fund” means the Public Housing Loan Fund, as established under Part 7.2.1 (commencing with Section 15464).

(d) “Program” means the Public Housing Loan Program, as established under Part 7.2.1 (commencing with Section 15464).

12336.2.

 (a) On and after January 1, 2026, the authority shall assume responsibility as the administering entity for purposes of the fund and program.

(b) By January 1, 2026, the authority shall review, revise, and adopt rules and regulations necessary to continue the administration of the fund and program.

12336.3.

 The authority shall have the authority to do both of the following:

(a) Make and award loans from the fund for purposes of the program, in accordance with Part 7.2.1 (commencing with Section 15464).

(b) Enter into any and all agreements or contracts and do and perform any and all acts necessary, convenient, or desirable for purposes of the authority to administer the program.

12336.4.

 This article shall go into effect on January 1, 2025.

SEC. 2.

 Section 15438.1 is added to the Government Code, to read:

15438.1.

 (a) The authority shall have the authority to make and award loans from the Public Housing Loan Fund, as established under Section 15464, for purposes of the Public Housing Loan Program, as described in Part 7.2.1 (commencing with Section 15464), until December 31, 2025.

(b) The authority shall administer, upon appropriation by the Legislature, that program until December 31, 2025.

SEC. 3.

 Part 7.2.1 (commencing with Section 15464) is added to Division 3 of Title 2 of the Government Code, to read:

PART 7.2.1. Public Housing Loan Fund and Program

15464.

 There is hereby established the Public Housing Loan Fund. Upon appropriation by the Legislature, moneys in the fund shall be used by the administering entity to establish and administer the program described in this part and to make loans pursuant to the program.

15464.1.

 For purposes of this part, all of the following definitions apply:

(a) “Administering entity” means, for January 1, 2023, to December 31, 2025, the California Health Facilities Financing Authority. “Administering entity” shall be the Public Housing Financing Authority on and after January 1, 2026.

(b) “Fund” means the Public Housing Loan Fund, as established pursuant to Section 15464.

(c) “Local agency” has the same meaning as in Section 53995.

(d) “Public housing” means a housing development owned by the local agency.

(e) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

15464.2.

 (a) Upon appropriation by the Legislature, the administering entity shall establish a Public Housing Loan Program for purposes of making loans to finance the construction of public housing on property owned by local agencies.

(b) The administering entity shall establish requirements for a local agency to be eligible to receive a loan under this part, including, but not limited to, the following:

(1) A local agency seeking a loan shall submit an application in the form and manner required by the administering entity.

(2) The administering entity shall evaluate applications pursuant to an objective, competitive process.

(3) Loans shall be to cover construction costs for public housing on property owned by the local agency.

(4) The local agency shall provide an enforceable commitment or otherwise demonstrate that the agency and any contractors and subcontractors at every tier used by the local agency will use a skilled and trained workforce to perform all work on the proposed housing project.

(5) The local agency shall certify that the agency and any contractors and subcontractors at every tier used by the local agency will pay, at minimum, prevailing wages for the construction of the proposed housing project, in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(6) All units in the proposed housing project shall be available for rent and shall be comprised of both below market and market rate residential units.

(7) The proposed housing project shall be owned by the local agency following completion of construction.

(8) At least a portion of the revenue generated from the rental of the units in the proposed housing project shall be repaid to the administering entity and deposited in the fund to repay the loan awarded to the successful applicant.

(c) The administering entity shall prescribe rules and regulations sufficient to administer this part.

15464.3.

 The California Health Facilities Financing Authority shall ensure the smooth transition of operations under this part to the Public Housing Financing Authority by January 1, 2026.