California 2021-2022 Regular Session

California Assembly Bill AB2186 Compare Versions

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1-Amended IN Senate August 01, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2186Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)February 15, 2022 An act to add Chapter 16.5 (commencing with Section 50896.5) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2186, as amended, Grayson. Housing Cost Reduction Incentive Program.Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require a public entity that receives grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act. The bill would require the department to solicit and consider stakeholder comments in the design and implementation of the program, as specified, and to provide responses in writing to substantive written comments.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
1+Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2186Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)February 15, 2022 An act to add Chapter 16.5 (commencing with Section 50896.5) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2186, as amended, Grayson. Housing Cost Reduction Incentive Program.Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require an applicant a public entity that receives a grant grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
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3- Amended IN Senate August 01, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2186Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)February 15, 2022 An act to add Chapter 16.5 (commencing with Section 50896.5) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2186, as amended, Grayson. Housing Cost Reduction Incentive Program.Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require a public entity that receives grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act. The bill would require the department to solicit and consider stakeholder comments in the design and implementation of the program, as specified, and to provide responses in writing to substantive written comments.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2186Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)February 15, 2022 An act to add Chapter 16.5 (commencing with Section 50896.5) to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 2186, as amended, Grayson. Housing Cost Reduction Incentive Program.Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require an applicant a public entity that receives a grant grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Amended IN Senate August 01, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022
5+ Amended IN Assembly May 02, 2022 Amended IN Assembly April 18, 2022 Amended IN Assembly March 23, 2022
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7-Amended IN Senate August 01, 2022
87 Amended IN Assembly May 02, 2022
98 Amended IN Assembly April 18, 2022
109 Amended IN Assembly March 23, 2022
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1211 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
1312
1413 Assembly Bill
1514
1615 No. 2186
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1817 Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)February 15, 2022
1918
2019 Introduced by Assembly Members Grayson, Quirk-Silva, and Wicks(Coauthor: Assembly Member Gabriel)
2120 February 15, 2022
2221
2322 An act to add Chapter 16.5 (commencing with Section 50896.5) to Part 2 of Division 31 of the Health and Safety Code, relating to housing.
2423
2524 LEGISLATIVE COUNSEL'S DIGEST
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2726 ## LEGISLATIVE COUNSEL'S DIGEST
2827
2928 AB 2186, as amended, Grayson. Housing Cost Reduction Incentive Program.
3029
31-Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require a public entity that receives grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act. The bill would require the department to solicit and consider stakeholder comments in the design and implementation of the program, as specified, and to provide responses in writing to substantive written comments.
30+Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require an applicant a public entity that receives a grant grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.
3231
3332 Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fees use and the type of development project on which the fee is imposed.
3433
35-This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This
36-
37- This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require a public entity that receives grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act. The bill would require the department to solicit and consider stakeholder comments in the design and implementation of the program, as specified, and to provide responses in writing to substantive written comments.
34+This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee reductions provided to qualified housing developments, as defined, and for the reasonable interest costs associated with impact fee deferrals. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee reduced for a qualified housing development and grants to applicants in an amount equal to the accrued interest on a deferred development impact fee, as provided. This bill would require the department to administer these grants by issuing a Notice of Funding Availability before December 31 of the year that the program receives funding, as specified, and accepting grant applications after the subsequent year. The bill would require an applicant a public entity that receives a grant grant funds under the program to use those funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.
3835
3936 ## Digest Key
4037
4138 ## Bill Text
4239
43-The people of the State of California do enact as follows:SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
40+The people of the State of California do enact as follows:SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
4441
4542 The people of the State of California do enact as follows:
4643
4744 ## The people of the State of California do enact as follows:
4845
49-SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
46+SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
5047
5148 SECTION 1. Chapter 16.5 (commencing with Section 50896.5) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
5249
5350 ### SECTION 1.
5451
55- CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
52+ CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
5653
57- CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
54+ CHAPTER 16.5. Housing Cost Reduction Incentive Program50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
5855
5956 CHAPTER 16.5. Housing Cost Reduction Incentive Program
6057
6158 CHAPTER 16.5. Housing Cost Reduction Incentive Program
6259
63-50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.
60+50896.5. For purposes of this chapter:(a) Applicant means a city, county, or city and county.(b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.(c) NOFA means a Notice of Funding Availability.(d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.
6461
6562
6663
6764 50896.5. For purposes of this chapter:
6865
6966 (a) Applicant means a city, county, or city and county.
7067
7168 (b) Development impact fee means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.
7269
7370 (c) NOFA means a Notice of Funding Availability.
7471
7572 (d) Program means the Housing Cost Reduction Incentive Program established in Section 50896.6.
7673
77-(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.
74+(e) Qualified housing development means a rental housing development that is or will be subject to a recorded regulatory agreement with a public entity that requires that at least 75 percent of the units, excluding any managers units, be affordable to, and occupied by, lower income households, or a homeownership home ownership development that will be sold to low- or moderate-income households at an affordable housing cost.
7875
7976 50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.(b) The department shall administer the program.
8077
8178
8279
8380 50896.6. (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing applicants for development impact fee reductions provided to qualified housing developments and for the reasonable interest cost associated with development impact fee deferrals.
8481
8582 (b) The department shall administer the program.
8683
8784 50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:(1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.(2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.(3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year. (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.(b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).
8885
8986
9087
9188 50896.7. (a) Upon appropriation by the Legislature for purposes of the program, the department shall do all of the following:
9289
9390 (1) Provide grants to applicants in an amount equal to 50 percent of the amount of each development impact fee reduction by an applicant for a qualified rental housing development. The fee reduction shall be calculated by subtracting the amount of the total development impacts fee charged by the applicant to each qualified housing development from the amount of the total development impact fees that would have been charged by the applicant to an equivalent project that is not a qualified housing development.
9491
9592 (2) Provide grants to applicants in an amount equal to the interest that accrues at the annual, mid-term Applicable Federal Rate, as determined by the Internal Revenue Service, on development impact fees for qualified housing developments that the applicant defers until, in the case of a rental development, the conversion to permanent financing and, in the case of an ownership development, each unit is sold. An applicant may defer payment of the development impact fees for a longer time, but the grant shall cover interest only for the time period described in this paragraph.
9693
9794 (3) When funds are made available for the program, issue a NOFA before December 31 of that year to cover each applicants development impact fee reductions and deferrals during the subsequent year. The department shall accept applications after the subsequent year.
9895
9996 (4) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraphs (1) and (2), the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.
10097
10198 (b) A development impact fee, the reduction or deferral of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).
10299
103-50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.
100+50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.(b)(c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.
104101
105102
106103
107-50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds to the same public entity and fund or account to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.
104+50896.8. (a) An applicant that receives a grant under the program shall deposit or transfer those funds into to the same public entity and fund or account into to which it would otherwise deposit or transfer the proceeds of a development impact fee imposed on a qualified housing development if that fee had not been reduced or deferred. The applicant public entity shall use grant funds solely for those purposes for which the development impact fee that was reduced or deferred would have been used.
108105
109-(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting benefiting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.
106+(b) An applicant shall not apply to receive reimbursement for a development impact fee reduction or deferral related to a fee benefitting an independent special district unless the applicant received the written approval of the independent special district for the reduction or deferral on or before the date on which the applicant granted the reduction or deferral.
107+
108+(b)
109+
110+
110111
111112 (c) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.
112113
113-50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
114+50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
114115
115116
116117
117-50896.9. (a) The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
118-
119-(b) Prior to adopting initial guidelines for the operations of the program, the department shall solicit and consider stakeholder comments in the design and implementation of the program in at least one 30-day public comment period. The department shall provide responses in writing to substantive written comments.
118+50896.9. The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.