California 2023-2024 Regular Session

California Senate Bill SB482 Compare Versions

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1-Senate Bill No. 482 CHAPTER 780An act to amend Sections 50675.2, 50675.5, and 50675.14 of the Health and Safety Code, relating to housing. [ Approved by Governor October 11, 2023. Filed with Secretary of State October 11, 2023. ] LEGISLATIVE COUNSEL'S DIGESTSB 482, Blakespear. Multifamily Housing Program: supportive housing: capitalized operating reserves.Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.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. Section 50675.2 of the Health and Safety Code is amended to read:50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.SEC. 2. Section 50675.5 of the Health and Safety Code is amended to read:50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.SEC. 3. Section 50675.14 of the Health and Safety Code is amended to read:50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
1+Enrolled September 18, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 30, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 482Introduced by Senator BlakespearFebruary 14, 2023An act to amend Sections 50675.2, 50675.5, and 50675.14 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTSB 482, Blakespear. Multifamily Housing Program: supportive housing: capitalized operating reserves.Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.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. Section 50675.2 of the Health and Safety Code is amended to read:50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.SEC. 2. Section 50675.5 of the Health and Safety Code is amended to read:50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.SEC. 3. Section 50675.14 of the Health and Safety Code is amended to read:50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
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3- Senate Bill No. 482 CHAPTER 780An act to amend Sections 50675.2, 50675.5, and 50675.14 of the Health and Safety Code, relating to housing. [ Approved by Governor October 11, 2023. Filed with Secretary of State October 11, 2023. ] LEGISLATIVE COUNSEL'S DIGESTSB 482, Blakespear. Multifamily Housing Program: supportive housing: capitalized operating reserves.Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ Enrolled September 18, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 30, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 482Introduced by Senator BlakespearFebruary 14, 2023An act to amend Sections 50675.2, 50675.5, and 50675.14 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTSB 482, Blakespear. Multifamily Housing Program: supportive housing: capitalized operating reserves.Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Senate Bill No. 482 CHAPTER 780
5+ Enrolled September 18, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 30, 2023
66
7- Senate Bill No. 482
7+Enrolled September 18, 2023
8+Passed IN Senate September 14, 2023
9+Passed IN Assembly September 13, 2023
10+Amended IN Assembly September 01, 2023
11+Amended IN Assembly June 30, 2023
812
9- CHAPTER 780
13+ CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
14+
15+ Senate Bill
16+
17+No. 482
18+
19+Introduced by Senator BlakespearFebruary 14, 2023
20+
21+Introduced by Senator Blakespear
22+February 14, 2023
1023
1124 An act to amend Sections 50675.2, 50675.5, and 50675.14 of the Health and Safety Code, relating to housing.
12-
13- [ Approved by Governor October 11, 2023. Filed with Secretary of State October 11, 2023. ]
1425
1526 LEGISLATIVE COUNSEL'S DIGEST
1627
1728 ## LEGISLATIVE COUNSEL'S DIGEST
1829
1930 SB 482, Blakespear. Multifamily Housing Program: supportive housing: capitalized operating reserves.
2031
2132 Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.
2233
2334 Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified.
2435
2536 This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.
2637
2738 ## Digest Key
2839
2940 ## Bill Text
3041
3142 The people of the State of California do enact as follows:SECTION 1. Section 50675.2 of the Health and Safety Code is amended to read:50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.SEC. 2. Section 50675.5 of the Health and Safety Code is amended to read:50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.SEC. 3. Section 50675.14 of the Health and Safety Code is amended to read:50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
3243
3344 The people of the State of California do enact as follows:
3445
3546 ## The people of the State of California do enact as follows:
3647
3748 SECTION 1. Section 50675.2 of the Health and Safety Code is amended to read:50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.
3849
3950 SECTION 1. Section 50675.2 of the Health and Safety Code is amended to read:
4051
4152 ### SECTION 1.
4253
4354 50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.
4455
4556 50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.
4657
4758 50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.(a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.(b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.(c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.(d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.(e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.(f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.(g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.(h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.
4859
4960
5061
5162 50675.2. The definitions of this section shall apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 shall also apply to this chapter.
5263
5364 (a) Affordable rent shall be established by the department to be consistent with the rent limitations imposed by the Low-Income Housing Tax Credit Program, as administered by the California Tax Credit Allocation Committee.
5465
5566 (b) Assisted unit means a unit that is affordable to a lower income household as a result of a loan provided pursuant to this chapter. In order to ensure consistency with the Low-Income Housing Tax Credit Program, occupancy of assisted units shall be limited to households whose income does not exceed the limits specified by the California Tax Credit Allocation Committee.
5667
5768 (c) Maintain affordable rent levels means rents may be increased by the sponsor on an annual basis in the amount that would be allowed if the project was subject to the requirements of the Low-Income Housing Tax Credit Program established pursuant to Section 42 of the federal Internal Revenue Code.
5869
5970 (d) Rental housing development means a structure or set of structures with common financing, ownership, and management, and which collectively contain five or more dwelling units, including efficiency units. No more than one of the dwelling units may be occupied as a primary residence by a person or household who is the owner of the structure or structures.
6071
6172 (e) Rehabilitation, in addition to the meaning set forth in Section 50096, includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability.
6273
6374 (f) Rent-up costs means costs incurred while a unit is on the housing market but not rented to its first tenant.
6475
6576 (g) Sponsor has the same meaning as defined in subdivision (c) of Section 50669, and also includes a limited partnership in which the sponsor or an affiliate of the sponsor is a general partner.
6677
6778 (h) Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community.
6879
6980 (i) Transitional housing and transitional housing development means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.
7081
7182 SEC. 2. Section 50675.5 of the Health and Safety Code is amended to read:50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.
7283
7384 SEC. 2. Section 50675.5 of the Health and Safety Code is amended to read:
7485
7586 ### SEC. 2.
7687
7788 50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.
7889
7990 50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.
8091
8192 50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.(b) Eligible cost categories shall include all of the following:(1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.(2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.(3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.(4) Necessary and related onsite and offsite improvements.(5) Reasonable developer fees.(6) Reasonable consulting costs.(7) Initial operating costs for housing units.(8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:(A) The availability of funds.(B) The individual financial needs of the project.(C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.(D) Any other factors the department deems appropriate.(9) Any other costs of rehabilitation or new construction authorized by the department.
8293
8394
8495
8596 50675.5. (a) Eligible costs shall include the cost of developing dwelling units, transitional housing, and childcare, and after school care and social service facilities integrally linked to the assisted dwelling units.
8697
8798 (b) Eligible cost categories shall include all of the following:
8899
89100 (1) Real property acquisition, including refinancing of existing debt to the extent necessary to reduce debt service to a level consistent with the provision of affordable rents and the fiscal integrity of the project.
90101
91102 (2) New construction or rehabilitation, including the conversion of nonresidential structures to residential use.
92103
93104 (3) General property improvements that are necessary to correct unsafe, unhealthy, or unsanitary conditions, including renovations and remodeling, including, but not limited to, remodeling of kitchens and bathrooms, installation of new appliances, landscaping, and purchase or installation of central air-conditioning.
94105
95106 (4) Necessary and related onsite and offsite improvements.
96107
97108 (5) Reasonable developer fees.
98109
99110 (6) Reasonable consulting costs.
100111
101112 (7) Initial operating costs for housing units.
102113
103114 (8) Capitalized reserves for replacement and operation. The department shall offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources. The department may allow capitalized operating reserves to eligible projects to be used for rent subsidies for assisted units reserved for occupancy by households with incomes below limits determined by the department, which shall not exceed the income limit for very low income households. Assisted units may include, but not be limited to, supportive housing units. The department may offer capitalized reserves for operations and supportive services in the form of a grant. To determine project eligibility for capitalized operating reserves, the department may consider all of the following:
104115
105116 (A) The availability of funds.
106117
107118 (B) The individual financial needs of the project.
108119
109120 (C) Whetherdevelopers have sought rent or operating subsidies from other potential funding sources.
110121
111122 (D) Any other factors the department deems appropriate.
112123
113124 (9) Any other costs of rehabilitation or new construction authorized by the department.
114125
115126 SEC. 3. Section 50675.14 of the Health and Safety Code is amended to read:50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
116127
117128 SEC. 3. Section 50675.14 of the Health and Safety Code is amended to read:
118129
119130 ### SEC. 3.
120131
121132 50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
122133
123134 50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
124135
125136 50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.(b) For purposes of this section, the following terms have the following meanings:(1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:(A) Any unit in the development that has not been previously occupied.(B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy. (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.(c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:(A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.(B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.(C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.(2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.(3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.(d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.(e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.(f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.(g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.(h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:(A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.(B) Changes in each supportive housing residents employment status during the previous year.(C) Changes in each supportive housing residents source and amount of income during the previous year.(D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.(2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.(i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.(j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:(1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.(2) The veterans are otherwise eligible to reside in an assisted unit.(3) The sponsor also provides, or assists in providing, the specialized treatment and services.
126137
127138
128139
129140 50675.14. (a) This section applies only to projects funded with funds appropriated for supportive housing projects.
130141
131142 (b) For purposes of this section, the following terms have the following meanings:
132143
133144 (1) May restrict occupancy to persons with veteran status means that the sponsor may limit occupancy to persons meeting the criteria of paragraphs (1) and (2) of subdivision (j) with respect to either of the following:
134145
135146 (A) Any unit in the development that has not been previously occupied.
136147
137148 (B) Any unit in the development that subsequently becomes vacant, for a period of not more than 120 days following the vacancy.
138149
139150 (2) (A) Target population means persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.
140151
141152 (B) Individuals and families currently residing in supportive housing meet the definition of target population if the individual or family was homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.
142153
143154 (c) (1) The department shall ensure that at least 40 percent of the units in each development funded under the supportive housing program are targeted to one or more of the following populations:
144155
145156 (A) Individuals or families experiencing chronic homelessness, as defined by the United States Department of Housing and Urban Developments Super Notice of Funding Availability for Continuum of Care or Collaborative Applicant Program.
146157
147158 (B) Homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 12957 of the Government Code.
148159
149160 (C) Individuals exiting institutional settings, including, but not limited to, jails, hospitals, prisons, and institutes of mental disease, who were homeless when entering the institutional setting, who have a disability, and who resided in that setting for a period of not less than 15 days.
150161
151162 (2) The department may decrease the number of units required to meet the criteria identified in paragraph (1) if the department determines that the program is undersubscribed after issuing at least one Notice of Funding Availability.
152163
153164 (3) Individuals and families currently residing in supportive housing meet the qualifications under this subdivision if the individual or family met any of the criteria specified in subparagraph (A), (B), or (C) of paragraph (1) when approved for tenancy in the supportive housing project in which they currently reside.
154165
155166 (d) Supportive housing projects shall provide or demonstrate collaboration with programs that provide services that meet the needs of the supportive housing residents.
156167
157168 (e) The criteria, established by the department, for selecting supportive housing projects shall give priority to supportive housing projects that include a focus on measurable outcomes and a plan for evaluation, which evaluation shall be submitted by the borrowers, annually, to the department.
158169
159170 (f) The department may provide higher per-unit loan limits as reasonably necessary to provide and maintain rents that are affordable to the target population.
160171
161172 (g) In an evaluation or ranking of a borrowers development and ownership experience, the department shall consider experience acquired in the prior 10 years.
162173
163174 (h) (1) A borrower shall, beginning the second year after supportive housing project occupancy, include the following data in their annual report to the department. However, a borrower who submits an annual evaluation pursuant to subdivision (e) may, instead, include this information in the evaluation:
164175
165176 (A) The length of occupancy by each supportive housing resident for the period covered by the report and, if the resident has moved, the reason for the move and the type of housing to which the resident moved, if known.
166177
167178 (B) Changes in each supportive housing residents employment status during the previous year.
168179
169180 (C) Changes in each supportive housing residents source and amount of income during the previous year.
170181
171182 (D) The tenants housing status prior to occupancy, including the term of the tenants homelessness.
172183
173184 (2) The department shall include aggregate data with respect to the supportive housing projects described in this section in the report that it submits to the Legislature pursuant to Section 50675.12.
174185
175186 (i) The department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities.
176187
177188 (j) Notwithstanding any other provision of law, the sponsor of a supportive housing development may restrict occupancy to persons with veteran status if all the following conditions apply:
178189
179190 (1) The veterans possess significant barriers to social reintegration and employment that require specialized treatment and services that are due to a physical or mental disability, substance abuse, or the effects of long-term homelessness.
180191
181192 (2) The veterans are otherwise eligible to reside in an assisted unit.
182193
183194 (3) The sponsor also provides, or assists in providing, the specialized treatment and services.