California Assembly Bill AB2441 Amended / Bill

 BILL NUMBER: AB 2441AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 26, 2016 AMENDED IN ASSEMBLY MARCH 18, 2016 INTRODUCED BY Assembly Member Thurmond FEBRUARY 19, 2016 An act to add Chapter 17 (commencing with Section 50897) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 2441, as amended, Thurmond. Housing: Workforce Housing  in High-Cost Areas  Pilot Program. Existing law, among several affordable housing programs, establishes the Local Housing Trust Fund Matching Grant Program, administered by the Department of Housing and Community Development, for the purpose of supporting local housing trust funds dedicated to the creation or preservation of affordable housing. Existing law authorizes the department to make matching grants available to cities and counties, or a city and county, and existing charitable nonprofit organizations that have created, funded, and operated housing trust funds. This bill would create the Workforce Housing  in High-Cost Areas  Pilot Program, pursuant to which the department would award grant funding to eligible cities or cities and counties located in  a  high-cost counties, as specified, for the predevelopment costs, acquisition, construction, or rehabilitation of rental housing projects or units within rental housing  projects, the affordability of which shall be restricted for a period of at least 55 years.   projects that serve, and for providing downpayment assistance to, persons and families of low or moderate income. The bill would require all grant funds to be matched on a dollar-for-dollar basis, unless the eligible city or city and county is suffering a hardship and is unable to generate the matching funds.  The bill would require the department, on or before December  31st   31  of each year in which  grant  funds are awarded, to provide a report to the Legislature regarding the number of grants awarded, a description of the projects funded, the number of units funded, and the amount of matching funds received. The bill would require the pilot program to operate until all appropriated funds have been awarded. The  bill would require that   bill,  upon the depletion of appropriated funds,  would require  the department  shall   to  submit a report to the Assembly and Senate committees on appropriations evaluating the need for housing of persons and families of low  and   or  moderate income in cities or cities and counties that received grant funds and a recommendation on whether the pilot program should continue. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 17 (commencing with Section 50897) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 17. WORKFORCE HOUSING  IN HIGH-COST AREAS  PILOT PROGRAM 50897. It is the intent of the Legislature in enacting this chapter to ensure that funds allocated to  eligible  cities  and cities and counties  and administered by the Department of Housing and Community Development be of maximum benefit in meeting the needs of persons and families of low or moderate income. It is the intent of the Legislature to support Californians residing in high-cost  areas   counties  where housing prices have risen to levels that are  unaffordable for those individuals whose income is above 60 percent of area median income.   unaffordable.  The Legislature intends that these funds be provided to eligible cities  and cities and counties  in high-cost  areas   counties  that are experiencing a rise in home prices and rental prices so that they may assist individuals who are not able to live where they work. 50897.1. As used in this chapter: (a) "Eligible city or city and county" means a city that resides within a county that is defined by the United States Department of Housing and Urban Development as a "high-cost" county. (b) "Notice of funding availability" or "NOFA" means a public announcement that an estimated amount of funding will be awarded by a department program according to specified criteria and schedules. (c) "Persons and families of low or moderate income" means persons and families whose  income exceeds 60 percent of the area median income, adjusted for family size, but no higher than 120 percent of area median income.   incomes do not exceed 120 percent of the area median income, adjusted for family size.  (d) "Department" means the Department of Housing and Community Development. 50897.2. (a) There is hereby established the Workforce Housing in High-Cost Areas Pilot Program. (b) Subject to the availability of funding, the department shall award grant funding pursuant to the issuance of a notice of funding availability (NOFA) to eligible cities or cities and counties that apply for financing. The department shall determine the appropriate amount of the grant for the purposes of accomplishing the intent of the Legislature. (c) An eligible city or city and county shall do all of the following: (1) Use the grant funds awarded to it for the predevelopment costs, acquisition, construction, or rehabilitation of rental housing projects or units within rental housing  projects.   projects that serve persons and families of low or moderate income.  The affordability of all units assisted shall be restricted for a period of at least 55 years. (2) Hold a public hearing to discuss and describe the project that will be financed pursuant to this chapter. The meeting shall be held pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code). (3) File periodic reports with the department regarding the use of  grant  funds provided pursuant to this chapter.  (d) (1) An eligible city or city and county may use the grant funds to provide downpayment assistance to persons and families of low or moderate income.   (2) The department shall set limits on the amount of downpayment assistance that may be provided pursuant to paragraph (1) in order to maximize the use of the grant funds.   (e) (1) All grant funds awarded pursuant to this chapter shall be matched on a dollar-for-dollar basis.   (2) Paragraph (1) shall not apply to an eligible city or city and county that is suffering a hardship and is unable to generate the matching funds.   (d)   (f)  On or before December 31 of each year in which funds are awarded pursuant to this chapter, the department shall provide a report to the Legislature regarding the number of grants awarded, a description of the projects funded, the number of units funded, and the amount of matching funds received.  (e)   (g)  The program shall operate until all appropriated funds have been awarded.  (f)   (h)  (1) Upon the depletion of appropriated funds and the termination of the pilot program pursuant to subdivision  (e),   (g),  the department shall submit a report to the Assembly and Senate committees on appropriations. The report shall evaluate the need for housing of persons and families of low  and   or  moderate income in cities or cities and counties that received  grant  funds pursuant to this chapter. The report shall also include, but not be limited to, a recommendation on whether the pilot program should continue. (2) The requirement for submitting a report imposed under this subdivision is inoperative four years after the report becomes due.  (g)   (i)  The reports to be submitted pursuant to subdivisions  (d)   (f)  and  (f)   (h)  shall be submitted in compliance with Section 9795 of the Government Code.