Bill Text: CA AB434 | 2019-2020 | Regular Session | Amended
Bill Title: Housing financing programs: uniform procedures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-09-28 - Chaptered by Secretary of State - Chapter 192, Statutes of 2020. [AB434 Detail]
Download: California-2019-AB434-Amended.html
Amended
IN
Senate
June 24, 2020 |
Amended
IN
Assembly
May 20, 2019 |
Amended
IN
Assembly
April 29, 2019 |
Amended
IN
Assembly
April 08, 2019 |
Amended
IN
Assembly
March 26, 2019 |
Introduced by Assembly Member Daly |
February 11, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Existing
This bill, on or before December 31, 2020, would require the Department of Housing and Community Development to develop a single, universal application form that may be used by applicants for funds under the above-described programs. The bill would exempt this form from the rulemaking provisions of the Administrative Procedure Act. The bill would authorize an applicant under these programs to submit, and require the applicable administering department to accept, an application for funding under those programs using this form.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 50517.5 of the Health and Safety Code is amended to read:50517.5.
(a) (1) The department shall establish the Joe Serna, Jr. Farmworker Housing Grant Program under which, subject to the availability of funds(2)Notwithstanding any other provision of this chapter, upon the request of a grantee the program also may loan funds to a
grantee at no more than 3 percent simple interest. Principal and accumulated interest is due and payable upon completion of the term of the loan. For multifamily housing loans made pursuant to this subdivision, the department shall require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. For the first 30 years of the loan term, the amount of the required loan payments shall not exceed 0.42 percent per annum. For any loan made pursuant to this subdivision, the performance requirements of the lien shall remain in effect for a period of no less than the original term of the loan.
(3)The program shall be administered by the Director of Housing and Community Development and officers and employees of the department as they may designate.
(c)With respect to the supervision of grantees, the department shall do the following:
(1)Establish minimum capital reserves to be maintained by grantees.
(2)Fix and alter from time to time a schedule of rents that may be necessary to provide residents of housing assisted pursuant to this section with affordable rents to the extent consistent with the maintenance of the financial integrity of the
housing project. No grantee shall increase the rent on any unit constructed or rehabilitated with the assistance of funds provided pursuant to this section without the prior permission of the department, which shall be given only if the grantee affirmatively demonstrates that the increase is required to defray necessary operating costs or avoid jeopardizing the fiscal integrity of the housing project.
(3)Determine standards for, and control selection by grantees of, tenants and subsequent purchasers of housing constructed or rehabilitated with the assistance of funds provided pursuant to this section.
(4)(A)Require as a condition precedent to a grant or loan, or both, of funds that the applicant have site control that is satisfactory to the department; that the grantee be record owner in fee of the assisted real property or provide other security including
a lien on the manufactured home that is satisfactory to the department to ensure compliance with the construction, financial, and program obligations; and that the grantee shall have entered into a written agreement with the department binding upon the grantee and successors in interest to the grantee. The agreement shall include the conditions under which the funds advanced may be repaid. The agreement shall include provisions for a lien on the assisted real property or manufactured home in favor of the State of California for the purpose of securing performance of the agreement. The agreement shall also provide that the lien shall endure until released by the Director of Housing and Community Development.
(B)
(C)Contemporaneously with the disbursement of the initial funds to a grantee, the department shall cause to be recorded, in the office of the county recorder of the county in which the assisted real property is located, a notice of lien executed by the Director of Housing and Community Development. The notice of lien shall refer to the agreement required by this paragraph for which it secures and it shall include a legal description of the assisted real property that is subject to the lien. The notice of lien shall be indexed by the recorder in the Grantor Index to the name of
the grantee and in the Grantee Index to the name of the State of California, Department of Housing and Community Development. For manufactured housing, the liens shall be recorded by the department in the same manner as other manufactured housing liens are recorded. The department shall adopt by regulation criteria for the determination of the lien period. This regulation shall take into account whether the property is held by multifamily rental, single-family ownership, or cooperative ownership and whether it is new construction or rehabilitative construction. The lien period for manufactured housing liens for manufactured homes shall not exceed 10 years.
(D)Pursuant to regulations adopted by the department, the department may execute and cause to be recorded in the office of the recorder of the county in which a notice of lien has been recorded, or the department, as appropriate, a subordination of the lien. The regulations adopted by the
department shall provide that any subordination of the lien shall not jeopardize the security interest of the state and shall further the interest of farmworker housing. The recitals contained in the subordination shall be conclusive in favor of any bona fide purchaser or lender relying thereon.
(E)
(5)Regulate the terms of occupancy agreements or resale controls, to be used in housing assisted pursuant to this section.
(6)Provide
(7)The agreement between the department and the grantee shall provide, among other things, that both of the following occur:
(A)Upon the sale or conveyance of the real property, or any part thereof, for use other than for agricultural employee occupancy, the grantee or its successors shall, as a condition for the release of the lien provided pursuant to paragraph (4), repay to the fund the department’s grant and loan funds.
(B)Upon the sale or conveyance of the real property or any part thereof for continued agricultural employee occupancy, the transferee shall assume the obligation of the transferor and the real property shall be transferred to the new owner; provided that the transferee
agrees to abide by the agreement entered into between the transferor and the department and that the new owner takes the property subject to the lien provided pursuant to paragraph (4), except that this lien shall, at the time of the transfer of the property to the new owner, be extended for an additional lien period determined by the department pursuant to paragraph (4), and the new owner shall not be credited with the lien period that had run from the time the transferor had acquired the property to the time of transfer to the new owner, unless the department determines that it is in the best interest of the state and consistent with the intent of this section to so credit the lien period to the new owner. However, the lien shall have priority as of the recording date of the lien for the original grantee, pursuant to paragraph (4).
(d)The department may do any of the following with respect to grantees:
(1)Through its agents or employees enter upon and inspect the lands, buildings, and equipment of a grantee, including books and records, at any time before, during, or after construction or rehabilitation of units assisted pursuant to this section. However, there shall be no entry or inspection of any unit that is occupied, whether or not any occupant is actually present, without the consent of the occupant.
(2)Supervise the operation and maintenance of any housing assisted pursuant to this section and order repairs as may be necessary to protect the public interest or the health, safety, or welfare of occupants of the housing.
(e)
(f)
(g)
SEC. 2.
Section 50675.7 of the Health and Safety Code is amended to read:50675.7.
Loans shall be provided using a project selection process established by the department that meets all of the following requirements:SEC. 3.
Section 53545.13 of the Health and Safety Code is amended to read:53545.13.
(a) The Infill Incentive Grant Program of 2007 is hereby established to be administered by the department.(c)
(B)A project area redevelopment plan approved pursuant to Section 33330.
(C)A regional blueprint plan as defined in the California Regional Blueprint Planning Program administered by the Business, Transportation and Housing Agency, or a regional plan as defined in Section 65060.7 of the Government Code.
(5)For qualifying infill projects or qualifying infill areas located in a redevelopment project area, meet the requirements contained in subdivision (a) of Section 33413.
(d)
(e)
(f)
(g)
(h)
(i)Notwithstanding paragraph (3) of subdivision (c), a city of greater than 100,000 in population in a standard metropolitan statistical area of less than 2,000,000 in population may petition the department for, and the department may grant, an exception to the jurisdiction’s classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (c). The city shall
submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (c). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2015.
SEC. 4.
Section 53559.1 of the Health and Safety Code is amended to read:53559.1.
For the purposes of this part, the following definitions apply:SEC. 5.
Section 53560 of the Health and Safety Code is amended to read:53560.
(a) There is hereby established the Transit-Oriented Development Implementation Program, to be administered by the Department of Housing and Community Development, to provide local assistance toSEC. 6.
Section 53562 of the Health and Safety Code is amended to read:(a)To the extent that funds are available, the department shall make grants to cities, counties, cities and counties, or transit agencies for the provision of infrastructure necessary for the development of higher density uses within close proximity to a transit station, or to facilitate connections between that development and the station.
(b)
53562.
(a) To the extent that funds are available, the department shall make loans for the development and construction of a housing development project within close proximity to a transit station. To be eligible for a loan,SEC. 7.
Section 53563 of the Health and Safety Code is repealed.(a)In ranking applications pursuant to this part, the department shall, among other criteria, consider the extent to which the project or development will increase public transit ridership and minimize automobile trips.
(b)The department shall also grant bonus points to projects or developments that are in an area designated by the appropriate council of governments for infill development as part of a regional plan.