Bill Text: CA SB500 | 2009-2010 | Regular Session | Amended

California Senate Bill 500 (Prior Session Legislation)

Bill Title: Affordable housing: permanent revenue source.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB500 Detail]

Download: California-2009-SB500-Amended.html

BILL NUMBER: SB 500	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 5, 2010

INTRODUCED BY   Senator Steinberg

                        FEBRUARY 26, 2009

   An act relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 500, as amended, Steinberg. Affordable housing: permanent
revenue source.
   Existing law sets forth the Legislature's finding and declarations
regarding the availability of affordable housing throughout
California.  Under existing law, there are programs providing
assistance for, among other things, multifamily housing, emergency
housing, farmworker housing, home ownership for very low and
low-income households, and downpayments   for first-time
homebuyers.  
   This bill would enact the Housing Market Stabilization Act of
2010, which would create in the State Treasury the Housing Market
Stabilization Fund. The bill would provide that moneys in the fund be
available, upon appropriation, to the Department of Housing and
Community Development for local assistance loans and grants for
purposes related to increasing the supply of safe, affordable, and
sustainable homes.  
   This bill would express the intent of the Legislature to enact
legislation that would provide a permanent source of revenue for
affordable housing in California. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    It is the intent of the Legislature
to enact legislation that provides a permanent source of revenue for
affordable housing in California. 
   SECTION 1.    This act shall be known, and may be
cited, as the Housing Market Stabilization Act of 2010. 
   SEC. 2.    It is the intent of the Legislature that
having a healthy housing market that provides an adequate supply of
homes affordable to Californians at all income levels is critical to
the economic prosperity and quality of life in the State of
California. The Legislature finds and declares as follows:  

   (a) Strategic state investment approved by voters in 2002 and 2006
fostered a public-private partnership between the state, lenders,
and nonprofit and for-profit developers. This partnership leveraged
public and private capital to build, rehabilitate, and preserve
26,500 affordable apartments and 9,300 shelter spaces and to help
44,200 families become or remain homeowners as of October 2008.
However, nearly all of the voter-approved funds are expected to be
invested by the end of 2010.  
   (b) Rents and mortgages are too high in nearly every California
community. California has the second lowest homeownership rate in the
nation and increasing numbers of families with children are becoming
homeless due to California's broken housing market.  
   (c) While the current foreclosure crisis has resulted in
reductions in home sale prices in some areas, it has crowded the
rental market and slowed new production. This exacerbates the
mismatch between the ever-increasing number of households that need
housing they can afford and an adequate supply and variety of homes.
 
   (d) Additionally, California's workforce experiences longer
commute times as it seeks affordable homes outside the areas in which
it works. If the private market is not spurred to build affordable
homes near job centers, congestion problems will continue to strain
the state's transportation system.  
   (e) To continue this partnership that encourages the private
market to keep pace with continuing demand, the state should identify
and establish a permanent, ongoing source of investment dedicated to
developing homes affordable to all Californians.  
   (f) The lack of sufficient housing impedes economic growth and
development by making it difficult for California employers to
attract and retain employees.  
   (g) State investment in the affordable housing market will do all
of the following:  
   (1) Create decent-paying jobs, improve children's academic
performance by increasing family stability, and reduce reliance on
general obligation bonds and the state's General Fund.  
   (2) Lessen demands on law enforcement as fewer people will live on
the streets or in dangerous substandard buildings, increase
businesses' ability to attract and retain skilled workers, and
leverage billions in private investment.  
   (3) Provide incentives for the private market to make steady
progress toward offering sufficient apartments and for-sale homes for
Californians at all income levels. 
   SEC. 3.    There is hereby created in the State
Treasury the Housing Market Stabilization Fund. Notwithstanding
Section 16305.7 of the Government Code all interest or other
increments collected as a result of investment of moneys in the fund
shall be deposited in the fund. All moneys in the fund shall be
available, upon appropriation, to the Department of Housing and
Community Development for local assistance loans and grants to
cities, counties, cities and counties and developers for the
construction, rehabilitation, and preservation of homes affordable to
the state's workforce and those with special housing needs, and to
increase and preserve homeownership and assist and provide incentives
for increasing the supply of safe, affordable, and sustainable
homes.