Bill Text: CA SB879 | 2015-2016 | Regular Session | Amended
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
BILL NUMBER: SB 879 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2016
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)
( Coauthor: Assembly Member
Chiu )
JANUARY 15, 2016
An act to add Part 16 (commencing with Section 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 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 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 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 and very 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 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 16 (commencing with Section 54000) is added to
Division 31 of the Health and Safety Code, to read:
PART 16. Affordable Housing Bond Act of 2018
CHAPTER 1. GENERAL PROVISIONS
54000. This part shall be known, and may be cited, as the
Affordable Housing Bond Act of 2018.
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 54014.
(c) "Fund" means the Affordable Housing Bond Act Trust Fund of
2018 created pursuant to Section 54006.
54004. This part shall only become operative upon adoption by the
voters at the November 6, 2018, statewide general election.
CHAPTER 2. AFFORDABLE HOUSING BOND ACT TRUST FUND OF 2018 AND
PROGRAM
54006. The Affordable Housing Bond Act Trust Fund of 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. Upon appropriation by the Legislature, the
moneys in the account 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 Two hundred
million dollars ($300,000,000) ($200,000,000)
to be 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) 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 density 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, 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, 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.
(3) One hundred million dollars ($100,000,000) to be deposited
into the Building Equity and Growth in Neighborhoods (BEGIN) Program
Fund, established pursuant to Section 50860, for expenditure, upon
appropriation by the Legislature, pursuant to the BEGIN Program
authorized by Chapter 14.5 (commencing with Section 50860) of Part 2
to make grants to qualifying cities, counties, or cities and counties
that shall be used for downpayment assistance to qualifying
first-time home buyers or low- and moderate-income buyers purchasing
newly constructed homes in a BEGIN project. 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) to be deposited
in the Joe Serna, Jr. Farmworker Housing Grant Fund, established
pursuant to Section 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, 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. The moneys in the account shall 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.
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
54010. Bonds in the total amount of three billion dollars
($3,000,000,000), exclusive of refunding bonds issued pursuant to
Section 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.
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 54028, and are hereby incorporated in this part as though set
forth in full in this part.
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.
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
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.
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.
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 54024,
appropriated without regard to fiscal years.
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 54026,
for purposes of this part, less any amount withdrawn pursuant to
Section 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.
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
54026, for purposes of this part, less any amount withdrawn pursuant
to Section 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.
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.
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.
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.
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.
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 2018.
SEC. 4. Section 2 of this act shall be submitted by the Secretary
of State to the voters at the November 6, 2018, statewide general
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 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.
