Bill Text: CA SB649 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local governments: affordable housing: local tenant preference.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2022-09-28 - Chaptered by Secretary of State. Chapter 660, Statutes of 2022. [SB649 Detail]
Download: California-2021-SB649-Amended.html
should
may be used to support access to housing that would allow households at risk of displacement to remain in the community.7061.1.
(a) A local government adopting a tenant preference policy shall submit the ordinance and supporting materials to the Department of Housing and Community Development no later than 30 days after the date the ordinance becomes operational. do both of the following:
Bill Title: Local governments: affordable housing: local tenant preference.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2022-09-28 - Chaptered by Secretary of State. Chapter 660, Statutes of 2022. [SB649 Detail]
Download: California-2021-SB649-Amended.html
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Amended
IN
Assembly
August 15, 2022 |
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Amended
IN
Assembly
June 30, 2022 |
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Amended
IN
Senate
April 19, 2021 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 649
| Introduced by Senator Cortese (Principal coauthor: Assembly Member Kalra) |
February 19, 2021 |
An act to add and repeal Chapter 12.76 (commencing with Section 7061) to of Division 7 of Title 1 of the Government Code, relating to affordable housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 649, as amended, Cortese.
Local governments: affordable housing: local tenant preference.
Existing law establishes the Department of Housing and Community Development in the Business, Consumer Services, and Housing Agency and makes the department responsible for administering various housing programs throughout the state. The California Fair Employment and Housing Act protects and safeguards the right and opportunity of all persons to seek, obtain, and hold employment without discrimination, abridgment, or harassment on account of various personal characteristics.
generally prohibits housing discrimination with respect to the personal characteristics of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information. Under existing law, the Department of Fair Employment and Housing Civil Rights Department is responsible for receiving, investigating, conciliating, mediating, and prosecuting complaints alleging violations of specified civil rights.
Existing law requires local agencies to provide, by April 1 of each year, an annual
report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development, the progress in meeting its share of regional housing needs. Existing law requires that annual report to include a housing element portion, which includes, but is not limited to, the number of units that have been completed, as specified.
This bill would provide that it is the state’s policy to use its resources, as specified, to assist low-income individuals at risk of displacement, as described, in accessing affordable housing and in avoiding displacement. The bill would require the Department of Housing and Community Development and the Department of Fair Employment and Housing to jointly develop and publish informational guidelines for developing local tenant preference policies consistent with state and federal law, as specified.
This that lower income individuals residing in neighborhoods and communities experiencing significant displacement, as specified, need access to housing that is affordable and assists in avoiding displacement. The bill would provide that, to the extent feasible and consistent with other laws, the low-income housing tax credit program and tax-exempt bonds for qualified residential rental property used for affordable housing may be used to support access to housing that would allow households at risk of displacement to remain in the community. The bill would require any local government adopting a local tenant preference policy, as specified, to submit policy to create a webpage on its internet website containing
the ordinance and its supporting materials materials, and to annually submit a link to its tenant preference webpage to the Department of Housing and Community Development. The bill would require the Department of Housing and Community Development
department to post on its internet website any local government ordinances enacted, any supporting materials related to those ordinances, and other materials, as specified.
The bill would repeal these provisions on January 1, 2033.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) The changes made by this act are necessary in order to provide affordable housing opportunities to lower income individuals residing in neighborhoods and communities experiencing significant displacement pressures and gentrification due to rapid growth and densification.
(b) California law recognizes that the availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian is a priority of the highest order. The early attainment
of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.
(c) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.
(d) Almost all affordable housing developments require tax credit allocations for financial viability, and many also seek tax-exempt private activity bond financing. Under income tax regulations, to qualify as an exempt facility, a facility must serve or be available on a regular basis for general public use. Section 42(g)(9) of the
Internal Revenue Code (26 U.S.C. Sec. 42(g)(9)) provides that a project does not fail to meet the general public use requirement solely because of occupancy restrictions or preferences that favor tenants with special needs, or who are members of a specified group under a federal program or state program or policy that supports housing for such a specified group. This act is intended to meet this requirement by clarifying that a preference for lower income residents facing displacement may be applied to developments receiving low-income housing tax credits and tax-exempt bonds for qualified residential rental properties defined under subsection (d) of Section 142 of the Internal Revenue Code used to create and preserve affordable housing,
establishing a statewide policy supporting lower income residents facing displacement, provided the policy is implemented and applied in a manner consistent with the duty to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 of the Government Code, the Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Unruh Civil Rights Act (Section 51 of the Civil Code), Sections 65008 and 11135 of the Government Code, the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), and any implementing regulations thereunder.
(e) Municipalities are significantly challenged to meet the demand for affordable housing for their lower income residents. Market forces continue to increase the cost
of living through rising rents and increased home prices, while incomes for lower income residents continue to lag behind. This effect is magnified in areas of significant income inequality. While municipalities attempt to tackle these issues by targeted investment and zoning, these efforts can unintentionally lead to further housing displacement. Indeed, some of the main drivers for residential displacement are proximity to rail stations, proximity to job centers, historic housing stock, and location in a strong real estate market.
(f) Communities and their residents benefit from affordable, stable housing when they can maintain access and proximity to local institutions, services, schools, community business centers, and health care providers, and familial and social networks. Students’ educational attainment is higher when they move less and
have more stability, the mental and physical health of the community is improved with stably housed residents’ lowered stress levels and ability to afford medical visits, and the community’s fiscal health is improved as residents’ discretionary spending increases on nonhousing costs costs, such as food, medications, and clothes.
(g) Studies have shown that negative effects for displaced lower income adults and children include their removal from their family, friends and community support networks, increased financial strain, decreased economic opportunities, increased and more costly commutes, unstable housing situations, worsened safety and environmental concerns,
significant trauma, worsened educational outcomes, and for some, homelessness.
SEC. 2.
Chapter 12.76 (commencing with Section 7061) is added to Division 7 of Title 1 of the Government Code, to read:CHAPTER 12.76. Local Tenant Preferences to Prevent Displacement Act
7061.
It is the policy of the state of California that lower income individuals residing in neighborhoods and communities experiencing significant displacement pressures and gentrification due to rapid growth or increasing housing prices need access to housing that is affordable and that assists those households in avoiding displacement. To the extent feasible and consistent with other state and federal laws, the low-income housing tax credit program and tax-exempt bonds for qualified residential rental properties defined under subsection (d) of Section 142 of the Internal Revenue Code used to create and preserve affordable housing(a)No later than July 1, 2024, the Department of Housing and Community Development and the Department of Fair Employment and Housing shall jointly develop and publish informational guidance for developing local tenant preference policies consistent with state fair housing laws, including, but not limited to, the duty to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2, the Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), the Unruh Civil Rights Act (Section 51 of the Civil Code), Sections 65008 and
11135, and any implementing regulations thereunder.
(b)The Department of Housing and Community Development and the Department of Fair Employment and Housing may review, adopt, amend, and repeal informational guidance in order to implement this section. Any informational guidance adopted, amended, or repealed pursuant to this subdivision is hereby exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
7061.2.7061.1.
(a) A local government adopting a tenant preference policy shall(1) No more than 90 days after the date the ordinance becomes operational, create a webpage on its internet website containing its authorizing local ordinance and supporting materials.
(2) Provide, on an annual basis, to the Department of Housing and Community Development a current link to the webpage, as described in paragraph (1), in its annual housing element report, as required by paragraph (2) of subdivision (a) of Section 65400.
(b) The Department of Housing and Community Development shall post on its internet website any local government ordinance and any supporting materials related to the ordinance submitted to the department pursuant
to subdivision (a). a list of the jurisdictions that have tenant preference policies based upon the information provided by local governments in their respective annual housing element reports.
