Amended IN Assembly May 15, 2017 Amended IN Assembly May 03, 2017 Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1637Introduced by Assembly Member GloriaFebruary 17, 2017 An act to add Section 34335 to Article 4.5 (commencing with Section 34340) to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 1637, as amended, Gloria. Local housing authority: mixed-income middle-income housing projects.The Housing Authorities Law authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. That law grants powers to an authority relating to, among other things, the issuance of bonds.This bill would authorize a housing authority to also develop, operate, and provide financing for mixed-income housing projects, as defined, and to exercise any or all powers granted to the authority relating to, among other things, the issuance of bonds for these purposes.This bill would authorize an authority to develop and finance a middle-income housing project if funds received pursuant to bonds are only used to finance units occupied by persons of low income. The bill would authorize units occupied by persons and families of middle income to be financed with financial or other assistance from any public or private source. The bill would prohibit funds received pursuant to bonds and specified public sources from being used to finance units occupied at market-rate rents.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Article 4.5 (commencing with Section 34340) is added to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, to read: Article 4.5. Middle-Income Housing Projects34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.SECTION 1.The Legislature hereby finds and declares all of the following:(a)Housing authorities are vitally important public agencies dedicated to preserving and increasing affordable housing throughout California.(b)It is in the public interest that housing authorities maintain their focus on providing affordable housing options for extremely low, very low and low income Californians.(c)It is also in the public interest that a continuum of housing be provided for a broad spectrum of persons, but specifically including those of low income and also including those earning middle incomes.(d)It is in the public interest that mixed income projects be developed by housing authorities so that persons of divergent income levels may live in the same project, with each mixed income housing project including persons of low and very low incomes.(e)By allowing housing authorities to develop and finance mixed income projects, additional low income housing will be built, much of which would not otherwise have been constructed because of insufficient financing options.(f)Currently, there are inadequate sources of financing available to encourage developers to develop, construct and operate a sufficient number of mixed income projects to provide for a continuum of housing at various income levels.(g)The lack of an adequate supply of housing at all levels drives up the rents and costs of ownership of all levels of housing, which has a detrimental effect upon the residents of the State of California. The absence of an adequate supply of housing for those households earning very low, low, moderate, and workforce incomes causes a disproportionate hardship on those households.(h)The creation of additional middle income housing would allow for the development of housing for persons who are school teachers, nurses, police, first responders, and firefighters, among others. SEC. 2.Section 34335 is added to the Health and Safety Code, to read:34335.(a)An authority may do both of the following: (1)Develop, operate, and provide financing for mixed-income housing projects.(2)Exercise any or all powers granted to the authority pursuant to Article 5 (commencing with Section 34350) for purposes of this section.(b)For purposes of this section, all of the following shall apply:(1)Persons of workforce income means persons and households whose income is 150 percent or less of area median income.(2)Persons of low income means persons and households whose income is 80 percent or less of area median income.(3)Mixed-income housing project means a project to which both of the following apply:(A)At least 20 percent of the units, except for managers units, are affordable to, and occupied by, persons of low income.(B)The project includes workforce housing.(4)Workforce housing means units affordable to, and occupied by, persons of workforce income.
Amended IN Assembly May 15, 2017 Amended IN Assembly May 03, 2017 Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1637Introduced by Assembly Member GloriaFebruary 17, 2017 An act to add Section 34335 to Article 4.5 (commencing with Section 34340) to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 1637, as amended, Gloria. Local housing authority: mixed-income middle-income housing projects.The Housing Authorities Law authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. That law grants powers to an authority relating to, among other things, the issuance of bonds.This bill would authorize a housing authority to also develop, operate, and provide financing for mixed-income housing projects, as defined, and to exercise any or all powers granted to the authority relating to, among other things, the issuance of bonds for these purposes.This bill would authorize an authority to develop and finance a middle-income housing project if funds received pursuant to bonds are only used to finance units occupied by persons of low income. The bill would authorize units occupied by persons and families of middle income to be financed with financial or other assistance from any public or private source. The bill would prohibit funds received pursuant to bonds and specified public sources from being used to finance units occupied at market-rate rents.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly May 15, 2017 Amended IN Assembly May 03, 2017 Amended IN Assembly March 28, 2017
Amended IN Assembly May 15, 2017
Amended IN Assembly May 03, 2017
Amended IN Assembly March 28, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1637
Introduced by Assembly Member GloriaFebruary 17, 2017
Introduced by Assembly Member Gloria
February 17, 2017
An act to add Section 34335 to Article 4.5 (commencing with Section 34340) to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1637, as amended, Gloria. Local housing authority: mixed-income middle-income housing projects.
The Housing Authorities Law authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. That law grants powers to an authority relating to, among other things, the issuance of bonds.This bill would authorize a housing authority to also develop, operate, and provide financing for mixed-income housing projects, as defined, and to exercise any or all powers granted to the authority relating to, among other things, the issuance of bonds for these purposes.This bill would authorize an authority to develop and finance a middle-income housing project if funds received pursuant to bonds are only used to finance units occupied by persons of low income. The bill would authorize units occupied by persons and families of middle income to be financed with financial or other assistance from any public or private source. The bill would prohibit funds received pursuant to bonds and specified public sources from being used to finance units occupied at market-rate rents.
The Housing Authorities Law authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. That law grants powers to an authority relating to, among other things, the issuance of bonds.
This bill would authorize a housing authority to also develop, operate, and provide financing for mixed-income housing projects, as defined, and to exercise any or all powers granted to the authority relating to, among other things, the issuance of bonds for these purposes.
This bill would authorize an authority to develop and finance a middle-income housing project if funds received pursuant to bonds are only used to finance units occupied by persons of low income. The bill would authorize units occupied by persons and families of middle income to be financed with financial or other assistance from any public or private source. The bill would prohibit funds received pursuant to bonds and specified public sources from being used to finance units occupied at market-rate rents.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Article 4.5 (commencing with Section 34340) is added to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, to read: Article 4.5. Middle-Income Housing Projects34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.SECTION 1.The Legislature hereby finds and declares all of the following:(a)Housing authorities are vitally important public agencies dedicated to preserving and increasing affordable housing throughout California.(b)It is in the public interest that housing authorities maintain their focus on providing affordable housing options for extremely low, very low and low income Californians.(c)It is also in the public interest that a continuum of housing be provided for a broad spectrum of persons, but specifically including those of low income and also including those earning middle incomes.(d)It is in the public interest that mixed income projects be developed by housing authorities so that persons of divergent income levels may live in the same project, with each mixed income housing project including persons of low and very low incomes.(e)By allowing housing authorities to develop and finance mixed income projects, additional low income housing will be built, much of which would not otherwise have been constructed because of insufficient financing options.(f)Currently, there are inadequate sources of financing available to encourage developers to develop, construct and operate a sufficient number of mixed income projects to provide for a continuum of housing at various income levels.(g)The lack of an adequate supply of housing at all levels drives up the rents and costs of ownership of all levels of housing, which has a detrimental effect upon the residents of the State of California. The absence of an adequate supply of housing for those households earning very low, low, moderate, and workforce incomes causes a disproportionate hardship on those households.(h)The creation of additional middle income housing would allow for the development of housing for persons who are school teachers, nurses, police, first responders, and firefighters, among others. SEC. 2.Section 34335 is added to the Health and Safety Code, to read:34335.(a)An authority may do both of the following: (1)Develop, operate, and provide financing for mixed-income housing projects.(2)Exercise any or all powers granted to the authority pursuant to Article 5 (commencing with Section 34350) for purposes of this section.(b)For purposes of this section, all of the following shall apply:(1)Persons of workforce income means persons and households whose income is 150 percent or less of area median income.(2)Persons of low income means persons and households whose income is 80 percent or less of area median income.(3)Mixed-income housing project means a project to which both of the following apply:(A)At least 20 percent of the units, except for managers units, are affordable to, and occupied by, persons of low income.(B)The project includes workforce housing.(4)Workforce housing means units affordable to, and occupied by, persons of workforce income.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Article 4.5 (commencing with Section 34340) is added to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, to read: Article 4.5. Middle-Income Housing Projects34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.
SECTION 1. Article 4.5 (commencing with Section 34340) is added to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, to read:
### SECTION 1.
Article 4.5. Middle-Income Housing Projects34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.
Article 4.5. Middle-Income Housing Projects34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.
Article 4.5. Middle-Income Housing Projects
Article 4.5. Middle-Income Housing Projects
34340. (a) An authority may develop and finance a middle-income housing project as follows:(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.(b) For the purposes of this article, the following terms have the following meanings:(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.(2) Persons of low income has the same meaning as in Section 34213.(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.
34340. (a) An authority may develop and finance a middle-income housing project as follows:
(1) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) shall only be used to finance units that will be occupied by persons of low income.
(2) Units that will be occupied by persons and families of middle income may be financed with funds received pursuant to Section 34315.3.
(3) Funds received pursuant to bonds issued pursuant to Article 5 (commencing with Section 34350) and financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to finance units that will be occupied at market-rate rents.
(b) For the purposes of this article, the following terms have the following meanings:
(1) Middle-income housing project means a housing project that includes at least 40 percent of units, excluding units available for managers, that will be occupied by persons of low income.
(2) Persons of low income has the same meaning as in Section 34213.
(3) Persons and families of middle income has the same meaning as in Section 65008 of the Government Code.
The Legislature hereby finds and declares all of the following:
(a)Housing authorities are vitally important public agencies dedicated to preserving and increasing affordable housing throughout California.
(b)It is in the public interest that housing authorities maintain their focus on providing affordable housing options for extremely low, very low and low income Californians.
(c)It is also in the public interest that a continuum of housing be provided for a broad spectrum of persons, but specifically including those of low income and also including those earning middle incomes.
(d)It is in the public interest that mixed income projects be developed by housing authorities so that persons of divergent income levels may live in the same project, with each mixed income housing project including persons of low and very low incomes.
(e)By allowing housing authorities to develop and finance mixed income projects, additional low income housing will be built, much of which would not otherwise have been constructed because of insufficient financing options.
(f)Currently, there are inadequate sources of financing available to encourage developers to develop, construct and operate a sufficient number of mixed income projects to provide for a continuum of housing at various income levels.
(g)The lack of an adequate supply of housing at all levels drives up the rents and costs of ownership of all levels of housing, which has a detrimental effect upon the residents of the State of California. The absence of an adequate supply of housing for those households earning very low, low, moderate, and workforce incomes causes a disproportionate hardship on those households.
(h)The creation of additional middle income housing would allow for the development of housing for persons who are school teachers, nurses, police, first responders, and firefighters, among others.
(a)An authority may do both of the following:
(1)Develop, operate, and provide financing for mixed-income housing projects.
(2)Exercise any or all powers granted to the authority pursuant to Article 5 (commencing with Section 34350) for purposes of this section.
(b)For purposes of this section, all of the following shall apply:
(1)Persons of workforce income means persons and households whose income is 150 percent or less of area median income.
(2)Persons of low income means persons and households whose income is 80 percent or less of area median income.
(3)Mixed-income housing project means a project to which both of the following apply:
(A)At least 20 percent of the units, except for managers units, are affordable to, and occupied by, persons of low income.
(B)The project includes workforce housing.
(4)Workforce housing means units affordable to, and occupied by, persons of workforce income.