Bill Text: CA SB879 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Affordable Housing Bond Act of 2018.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB879 Detail]

Download: California-2015-SB879-Amended.html

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BILL NUMBER: SB 879	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 15, 2016
	AMENDED IN ASSEMBLY  JUNE 16, 2016
	AMENDED IN ASSEMBLY  JUNE 9, 2016
	AMENDED IN SENATE  MAY 5, 2016
	AMENDED IN SENATE  APRIL 28, 2016
	AMENDED IN SENATE  MARCH 30, 2016

INTRODUCED BY   Senator Beall
   (Principal coauthor: Senator Glazer)
   (Coauthors: Senators Allen, Cannella, Hill, Huff, and Monning)

                        JANUARY 15, 2016

   An act to add Part  14   16  (commencing
with Section  53570)   54000)  to Division
31 of the Health and Safety Code, relating to housing, by providing
the funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 879, as amended, Beall. Affordable Housing Bond Act of 
2016.   2018. 
   Under existing law, there are programs providing assistance for,
among other things, emergency housing, multifamily housing,
farmworker housing, home ownership for very low and low-income
households, and downpayment assistance for first-time home buyers.
Existing law also authorizes the issuance of bonds in specified
amounts pursuant to the State General Obligation Bond Law and
requires that proceeds from the sale of these bonds be used to
finance various existing housing programs, capital outlay related to
infill development, brownfield cleanup that promotes infill
development, and housing-related parks.
   This bill would enact the Affordable Housing Bond Act of 
2016,   2018,  which, if adopted, would authorize
the issuance of bonds in the amount of $3,000,000,000 pursuant to the
State General Obligation Bond Law. Proceeds from the sale of these
bonds would be used to finance various existing housing programs, as
well as infill infrastructure financing and affordable housing
matching grant programs, as provided.
   The bill would provide for submission of the bond act to the
voters at the November  8, 2016,   6, 2018,
 statewide general election in accordance with specified law.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California is experiencing an extreme housing shortage with
2.2 million extremely  low-income   low income
 and very  low-income   low income 
renter households competing for only 664,000 affordable rental homes.
This leaves more than 1.54 million of California's lowest income
households without access to affordable housing.
   (b) While homelessness across the United States is in an overall
decline, homelessness in California is rising. In 2015, California
had 115,738 homeless people, which accounted for 21 percent of the
nation's homeless population. This is an increase of 1.6 percent from
the prior year. California also had the highest rate of unsheltered
people, at 64 percent or 73,699 people; the largest numbers of
unaccompanied homeless children and youth, at 10,416 people or 28
percent of the national total; the largest number of veterans
experiencing homelessness, at 11,311 or 24 percent of the national
homeless veteran population; and the second largest number of people
in families with chronic patterns of homelessness, at 22,582 or 11
percent of the state's homeless family population.
   (c) California is home to 21 of the 30 most expensive rental
housing markets in the country, which has had a disproportionate
impact on the middle class and the working poor. California requires
the third highest wage in the country to afford housing, behind
Hawaii and Washington, D.C. The fair market rent, which indicates the
amount of money that a given property would require if it were open
for leasing, for a two-bedroom apartment is $1,386. To afford this
level of rent and utilities, without paying more than 30 percent of
income on housing, a household must earn an hourly "housing wage" of
$26.65 per hour. This means that a person earning minimum wage must
work an average of three jobs to pay the rent for a two-bedroom unit.
In some areas of the state, these numbers are even higher.
   (d) Low-income families are forced to spend more and more of their
income on rent, which leaves little else for other basic
necessities. Many renters must postpone or  forego
homeownership,   forgo home ownership,  live in
more crowded housing, commute further to work, or, in some cases,
choose to live and work elsewhere.
   (e) California has seen a significant reduction of state funding
in recent years. The funds from Proposition 46 of 2002 and
Proposition 1C of 2006, totaling nearly $5 billion for a variety of
affordable housing programs, have been expended. Combined with the
loss of redevelopment funds, $1.5 billion of annual state investment
dedicated to housing has been lost, leaving several critical housing
programs unfunded.
   (f) High housing costs and the shortage of housing stock in
California directly affect the future health of California's economy
and, given the staggering numbers indicated above, bold action is
necessary. Investment in existing and successful housing programs to
expand the state's housing stock should benefit California's homeless
and low-income earners, as well as some of the state's most
vulnerable populations, including foster and at-risk youth, persons
with developmental and physical disabilities, farmworkers, the
elderly, single parents with children, and survivors of domestic
violence. Investments should also be made in housing for Medi-Cal
recipients served through a county's Section 1115 Waiver Whole Person
Care Pilot program and family day care providers.
   (g) Investment in housing creates jobs and provides local
benefits. The estimated one-year impacts of building 100 rental
apartments in a typical local area include $11.7 million in local
income, $2.2 million in taxes and other revenue for local
governments, and 161 local jobs or 1.62 jobs per apartment. The
additional annually recurring impacts of building 100 rental
apartments in a typical local area include $2.6 million in local
income, $503,000 in taxes and other revenue for local governments,
and 44 local jobs or .44 jobs per apartment.
  SEC. 2.  Part  14   16  (commencing with
Section  53570)   54000)  is added to
Division 31 of the Health and Safety Code, to read:

      PART  14.   16.   Affordable Housing
Bond Act of  2016   2018 


      CHAPTER 1.  GENERAL PROVISIONS


    53570.   54000.   This part shall be
known, and may be cited, as the Affordable Housing Bond Act of
 2016.   2018. 
    53571.  54002.   As used in this part,
the following terms have the following meanings:
   (a) "Board" means the Department of Housing and Community
Development for programs administered by the department, and the
California Housing Finance Agency for programs administered by the
agency.
   (b) "Committee" means the Housing Finance Committee created
pursuant to Section 53524 and continued in existence pursuant to
Sections 53548 and  53582.   54014. 
   (c) "Fund" means the Affordable Housing Bond Act Trust Fund of
 2016   2018  created pursuant to Section
 53575.   54006. 
    53572.   54004.   This part shall only
become operative upon adoption by the voters at the November 
8, 2016,   6, 2018,  statewide general election.
      CHAPTER 2.  AFFORDABLE HOUSING BOND ACT TRUST FUND OF 
2016   2018  AND PROGRAM


    53575.   54006.   The Affordable
Housing Bond Act Trust Fund of  2016   2018
 is hereby created within the State Treasury. It is the intent
of the Legislature that the proceeds of bonds deposited in the fund
shall be used to fund the housing-related programs described in this
chapter. The proceeds of bonds issued and sold pursuant to this part
for the purposes specified in this chapter shall be allocated in the
following manner:
   (a) One billion five hundred million dollars ($1,500,000,000) to
be deposited in the Multifamily Housing Account, which is hereby
created in the fund.  Notwithstanding Section 13340 of the
Government Code, the   Upon appropriation by the
Legislature, the  moneys in the account  are
continuously   may be appropriated for the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2, to be expended to assist in the new
construction, rehabilitation, and preservation of permanent and
transitional rental housing for persons with incomes of up to 60
percent of the area median income (AMI).
   (b) Six hundred million dollars ($600,000,000) to be deposited in
the Transit-Oriented Development and Infill Infrastructure Account,
which is hereby created within the fund. The moneys in the account
shall be used for the following purposes:
   (1) Three hundred million dollars ($300,000,000) to be 
transferred to   deposited into  the
Transit-Oriented Development Implementation Fund, established
pursuant to Section 53561, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
 53560).   53560) to provide local assistance
to cities, counties, cities and counties, transit agencies, and
developers for the purpose of developing or facilitating the 
 development of higher de   nsity uses within close
proximity to transit stations that will increase public transit
ridership. These funds may also be expended for any authorized
purpose of this program. 
   (2) Three hundred million dollars ($300,000,000) to be deposited
in the Infill Infrastructure Financing Account, which is hereby
created within the fund. Moneys in the account shall be available,
upon appropriation by the  Legislature and subject to any
other conditions and criteria that the Legislature provides for by
statute,   Legislature,  for infill incentive
grants to assist in the new construction and rehabilitation of
infrastructure that supports high-density affordable and mixed-income
housing in locations designated as  infill.  
infill, including, but not limited to, any of the following: 

   (A) Park creation, development, or rehabilitation to encourage
infill development.  
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.  
   (C) Transportation improvements related to infill development
projects.  
   (D) Traffic mitigation.  
   These funds may also be expended for any authorized purpose of
this program. 
   (c) Six hundred million dollars ($600,000,000) to be deposited in
the Special Populations Housing Account, which is hereby created
within the fund. The moneys in the account shall be used for the
following purposes:
   (1) Three hundred million dollars ($300,000,000)  which,
notwithstanding Section 13340 of the Government Code, shall be
continuously appropriated for transfer  to  be deposited
in  the Joe Serna, Jr. Farmworker Housing Grant Fund,
established pursuant to Section  50517.5.  
50517.5, for expenditure, upon appropriation by the Legislature, to
fund grants or loans, or both, for local public entities, nonprofit
corporations, limited liability companies, and limited partnerships,
for the construction or rehabilitation of housing for agricultural
employees and their families or for the acquisition of manufactured
housing as part of a program to address and remedy the impacts of
current and potential displacement of farmworker families from
existing labor camps, mobilehome parks, or other housing. These funds
may   also be expended for any authorized purpose of this
program. 
   (2) Three hundred million dollars ($300,000,000) to be deposited
in the Local Housing Trust Matching Grant Program Account, which is
hereby created within the fund. Moneys in the account shall be
available, upon appropriation by the  Legislature and subject
to any other conditions and criteria that the Legislature provides
for by statute, to provide matching grants to local public agencies
and nonprofit organizations that raise money for affordable housing.
  Legislature, to fund competitive grants or loans to
local housing trust funds that develop, own, lend, or invest in
affordable housing and used to create pilot programs to demonstrate
innovative, cost-saving approaches to creating or preserving
affordable housing. Local housing trust funds shall be derived on an
ongoing basis from private contribution or governmental sources that
are not otherwise restricted in use for housing programs.  
These funds may also be expended for any authorized purpose of this
program. 
   (d) Three hundred million dollars ($300,000,000) to be deposited
in the Home Ownership Development Account, which is hereby created
within the fund.  Notwithstanding Section 13340 of the
Government Code, the  The  moneys in the account
shall  be continuously appropriated   be, upon
appropriation by the Legislature, available  for the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, to provide direct, forgivable loans to assist development
projects involving multiple home ownership units, including
single-family subdivisions, for self-help mortgage assistance
programs, and for manufactured homes.    These funds may
also be expended for any authorized purpose of this program. 
    53576.   54008.   (a) The Legislature
may, from time to time, amend any law related to programs to which
funds are, or have been, allocated pursuant to this chapter for the
purposes of improving the efficiency and effectiveness of those
programs or to further the goals of those programs.
   (b) The Legislature may amend this chapter to reallocate the
proceeds of bonds issued and sold pursuant to this part among the
programs to which funds are to be allocated pursuant to this chapter
as necessary to effectively promote the development of affordable
housing in this state.
      CHAPTER 3.  FISCAL PROVISIONS


    53580.   54010.   Bonds in the total
amount of three billion dollars ($3,000,000,000), exclusive of
refunding bonds issued pursuant to Section  53588, 
 54026,  or so much thereof as is necessary as determined by
the committee, are hereby authorized to be issued and sold for
carrying out the purposes expressed in this part and to reimburse the
General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. All bonds herein authorized which
have been duly issued, sold, and delivered as provided herein shall
constitute valid and binding general obligations of the state, and
the full faith and credit of the state is hereby pledged for the
punctual payment of both principal of and interest on those bonds
when due.
    53581.   54012.   The bonds authorized
by this part shall be prepared, executed, issued, sold, paid, and
redeemed as provided in the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of
Title 2 of the Government Code), except subdivisions (a) and (b) of
Section 16727 of the Government Code to the extent that those
provisions are inconsistent with this part, and all of the provisions
of that law as amended from time to time apply to the bonds and to
this part, except as provided in Section  53589, 
 54028,  and are hereby incorporated in this part as though
set forth in full in this part.
    53582.   54014.   (a) Solely for the
purpose of authorizing the issuance and sale, pursuant to the State
General Obligation Bond Law, of the bonds authorized by this part,
the committee is continued in existence. For the purposes of this
part, the Housing Finance Committee is "the committee" as that term
is used in the State General Obligation Bond Law.
   (b) The committee may adopt guidelines establishing requirements
for administration of its financing programs to the extent necessary
to protect the validity of, and tax exemption for, interest on the
bonds. The guidelines shall not constitute rules, regulations,
orders, or standards of general application and are not subject to
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
   (c) For the purposes of the State General Obligation Bond Law, the
Department of Housing and Community Development is designated the
"board" for programs administered by the department, and the
California Housing Finance Agency is the "board" for programs
administered by the agency.
    53583.   54016.   Upon request of the
board stating that funds are needed for purposes of this part, the
committee shall determine whether or not it is necessary or desirable
to issue bonds authorized pursuant to this part in order to carry
out the actions specified in Section  53575,  
54006,  and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
those actions progressively, and are not required to be sold at any
one time. Bonds may bear interest subject to federal income tax.
    53584.   54018.   There shall be
collected annually, in the same manner and at the same time as other
state revenue is collected, a sum of money in addition to the
ordinary revenues of the state, sufficient to pay the principal of,
and interest on, the bonds each year. It is the duty of all officers
charged by law with any duty in regard to the collections of state
revenues to do or perform each and every act which is necessary to
collect that additional sum.
    53585.   54020.   Notwithstanding
Section 13340 of the Government Code, there is hereby appropriated
from the General Fund in the State Treasury, for the purposes of this
part, an amount that will equal the total of both of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
   (b) The sum which is necessary to carry out Section 
53587,   54024,  appropriated without regard to
fiscal years.
    53586.   54022.   The board may request
the Pooled Money Investment Board to make a loan from the Pooled
Money Investment Account, in accordance with Section 16312 of the
Government Code, for purposes of this part. The amount of the request
shall not exceed the amount of the unsold bonds that the committee
has, by resolution, authorized to be sold, excluding any refunding
bonds authorized pursuant to Section  53588,  
54026,  for purposes of this part, less any amount withdrawn
pursuant to Section  53587.   54024.  The
board shall execute any documents as required by the Pooled Money
Investment Board to obtain and repay the loan. Any amount loaned
shall be deposited in the fund to be allocated in accordance with
this part.
    53587.   54024.   For purposes of
carrying out this part, the Director of Finance may, by executive
order, authorize the withdrawal from the General Fund of any amount
or amounts not to exceed the amount of the unsold bonds that the
committee has, by resolution, authorized to be sold, excluding any
refunding bonds authorized pursuant to Section  53588,
  54026,  for purposes of this part, less any
amount withdrawn pursuant to Section  53586.  
54022.  Any amounts withdrawn shall be deposited in the fund to
be allocated in accordance with this part. Any moneys made available
under this section shall be returned to the General Fund, plus the
interest that the amounts would have earned in the Pooled Money
Investment Account, from moneys received from the sale of bonds which
would otherwise be deposited in that fund.
    53588.   54026.   The bonds may be
refunded in accordance with Article 6 (commencing with Section 16780)
of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government
Code. Approval by the electors of this act shall constitute approval
of any refunding bonds issued to refund bonds issued pursuant to this
part, including any prior issued refunding bonds. Any bond refunded
with the proceeds of a refunding bond as authorized by this section
may be legally defeased to the extent permitted by law in the manner
and to the extent set forth in the resolution, as amended from time
to time, authorizing that refunded bond.
    53589.   54028.   Notwithstanding any
provisions in the State General Obligation Bond Law, the maturity
date of any bonds authorized by this part shall not be later than 35
years from the date of each such bond. The maturity of each series
shall be calculated from the date of each series.
    53590.   54030.   The Legislature
hereby finds and declares that, inasmuch as the proceeds from the
sale of bonds authorized by this part are not "proceeds of taxes" as
that term is used in Article XIII B of the California Constitution,
the disbursement of these proceeds is not subject to the limitations
imposed by that article.
    53591.   54032.   Notwithstanding any
provision of the State General Obligation Bond Law with regard to the
proceeds from the sale of bonds authorized by this part that are
subject to investment under Article 4 (commencing with Section 16470)
of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government
Code, the Treasurer may maintain a separate account for investment
earnings, may order the payment of those earnings to comply with any
rebate requirement applicable under federal law, and may otherwise
direct the use and investment of those proceeds so as to maintain the
tax-exempt status of tax-exempt bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
    53592.   54034.   All moneys derived
from premiums and accrued interest on bonds sold pursuant to this
part shall be transferred to the General Fund as a credit to
expenditures for bond interest; provided, however, that amounts
derived from premiums may be reserved and used to pay the costs of
issuance of the related bonds prior to transfer to the General Fund.
  SEC. 3.  Section 2 of this act shall become operative upon the
adoption by the voters of the Affordable Housing Bond Act of 
2016.   2018. 
  SEC. 4.  Section 2 of this act shall be submitted by the Secretary
of State to the voters at the November  8, 2016, 
 6, 2018,  statewide general  election,
notwithstanding the requirements of Sections 9040, 9043, 9044, and
9061 of the Elections Code or any other law.   election.

  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to  ensure that the general obligation bond
measure proposed by Section 2 of this act is submitted to the voters
for the November 8, 2016, statewide general election,  
  maximize the time available for the analysis and
preparation of the bond act proposed by Section 2 of this act, 
it is necessary that this act take effect immediately.