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AB-44 Natural disaster relief.(1989-1990)

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AB44:v96#DOCUMENT

Assembly Bill No. 44
CHAPTER 5

An act to add Sections 50661.5, 50661.7, and 50662.7 to, to add Article 6 (commencing with Section 15373.96) to Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of, and to add Part 1.6 (commencing with Section 34050) to Division 24 of, the Health and Safety Code, relating to natural disaster relief, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor  November 06, 1989. Filed with Secretary of State  November 07, 1989. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 44, Hauser. Natural disaster relief.
Existing law requires the Controller to establish 4 special accounts in the Natural Disaster Assistance Fund, into which shall be paid all moneys appropriated by the Legislature for allocation for the purpose of administering various programs relating to relief from natural disasters. Funds in each account are available for expenditure without regard to fiscal year.
This bill would also require the Controller to establish the California Disaster Housing Rehabilitation Fund, as a continuously appropriated fund into which shall be paid all moneys appropriated by the Legislature for housing rehabilitation loans pursuant to specified provisions of law.
This bill would also establish the Rural Emergency Assistance Housing Infrastructure Program under which the State Department of Commerce and the Department of Housing and Community Development would make grants to local agencies, as defined for the purpose of financing improvements necessary to serve emergency or temporary housing units, the location or designation of which has been made necessary by a natural disaster.
Under existing law, the Department of Housing and Community Development is authorized to make specified deferred-payment loans for rehabilitation of residential structures.
Existing law provides for the administration by the Department of Housing and Community Development of various programs of loans and grants for community development and for housing for farmworkers, senior citizens, and other persons of low and moderate income.
This bill would require the department, in the event of a natural disaster, as defined, for the purpose of providing disaster relief in communities subject to the disaster to give priority to those communities and persons and organizations in those communities in making grants, and providing funds and other assistance under specified programs for emergency housing and assistance, rural community facilities, rural and urban predevelopment loans, self-help housing, senior shared housing, and farmworker housing.
This bill would exempt regulations adopted by the Department of Housing and Community Development to administer the above provisions from general requirements applicable to the adoption of regulations.
This bill would establish a natural disaster emergency shelter program, administered by the department, of grants to local governmental agencies and nonprofit organizations to provide emergency shelter to persons who have been rendered homeless as the result of a natural disaster. The bill would specify the procedures and conditions for application for and awarding of grants and the uses to which the grants may be put.
This bill would also require the department to provide grants in the form of a deposit guarantee contract to local nonprofit agencies or local governments to provide contractual guarantees for the payment of residential security deposits for individuals and families rendered homeless by a natural disaster.
Under existing law, the Department of Housing and Community Development is authorized to make specified deferred-payment loans for rehabilitation of residential structures.
This bill would authorize the use of this program under special conditions prescribed by the bill to assist victims of a natural disaster, as defined, in jurisdictions subject to a state of emergency proclaimed by the Governor. Loans under this bill would be made for the rehabilitation or reconstruction of owner-occupied dwellings.
The bill would authorize the department to contract, as specified, for the administration of that loan program.
The bill would exempt regulations adopted to administer the program from general requirements applicable to the adoption of regulations. The bill would exempt fund allocations under the bill from review by the department’s loan committee.
The bill would appropriate $41,500,000 from the Special Fund for Economic Uncertainties for the various assistance programs described above according to a specified schedule.
This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: yes.

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature hereby finds and declares that natural disasters result in the destruction and damage of homes and apartments and the subsequent displacement of homeowners and tenants. It is the intent of the Legislature to assist local communities in the rehabilitation and replacement of residential structures and to aid displaced homeowners and tenants in jurisdictions subject to a state of emergency declared by the Governor.

SEC. 2.

 Article 6 (commencing with Section 15373.96) is added to Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of the Government Code to read:
Article  6. Rural Emergency Assistance Housing Infrastructure Program

15373.96.
 There is hereby established within the department, the Rural Emergency Assistance Housing Infrastructure Program. Under the program, grants shall be made from the Rural Economic Development Fund to “local agencies” as defined by this chapter which have received designation as federal disaster assistance areas. Grant funds shall be used for the purpose of financing public improvements (infrastructure) necessary to serve emergency or temporary housing units, the location or designation of which has been made necessary by a natural disaster.

15373.97.
 Eligible applicants shall submit proposals for funding to the Office of Local Development of the California Department of Commerce. Proposals shall specifically describe the public improvements proposed for grant funding and shall additionally include the best available estimate of costs for the improvements. Grant applications shall further include a resolution of support by the local agency’s governing body.

15373.98.
 The Office of Local Development shall prepare a staff recommendation on all proposals and shall submit these recommendations to the Director of the California Department of Commerce and the Director of the Department of Housing and Community Development. The directors of these departments shall make all final funding decisions under this article. All applications for grant funding shall either be approved or denied within 30 days after an application has been found complete by the Office of Local Development.

SEC. 3.

 Part 1.6 (commencing with Section 34050) is added to Division 24 of the Health and Safety Code, to read:

PART 1.6. NATURAL DISASTERS

CHAPTER  1. Natural Disaster Community Assistance

34050.
 The Legislature finds that natural disasters result in the destruction and damage of housing and related infrastructure, homelessness, and economic dislocation. It is the intent of the Legislature in enacting this chapter to assist in the rehabilitation and reconstruction of housing, aid displaced persons, and aid economic recovery in jurisdictions subject to a state of emergency proclaimed by the Governor.

34050.5.
 (a)  “Department” as used in this part means the Department of Housing and Community Development.
(b)  “Natural disaster” as used in this part has the same meaning as in Section 8680.3 of the Government Code.

34051.
 In the event that the President of the United States, at the request of the Governor, declares a major disaster for jurisdictions subject to a state of emergency, funds appropriated for the purposes authorized by this chapter shall be expended only to the extent that other federal, state, local, or private insurance resources are not available or do not provide the assistance or coverage needed.

34052.
 For the purpose of providing disaster relief in communities subject to a natural disaster, the department shall give priority to granting funds pursuant to Chapter 3.1 (commencing with Section 50515) or Chapter 3.5 (commencing with Section 50530) of Part 2 of Division 31. Notwithstanding subdivision (b) of Section 50531, funds shall be used for housing for persons of low and moderate income, with first priority given to funding housing for persons of low income.

34053.
 For the purpose of providing disaster relief to farmworkers in communities subject to a natural disaster, the department shall give priority to awarding grants in communities participating in the Special Housing Program for Migratory Workers (Chapter 8.5 (commencing with Section 50710) of Part 2 of Division 33) and the Department of Commerce shall give priority to funding those purposes authorized by the Rural Emergency Assistance Housing Infrastructure Program (Article 6 (commencing with Section 15373.96) of Chapter 2.5 of Part 6.7 of the Government Code).

34054.
 Funds appropriated for the purposes of Section 34052, shall only be expended for rehabilitation or reconstruction of housing and related infrastructure which has been damaged as a result of the natural disaster.

34055.
 Any regulation, rule, policy, or standard of general application employed by the department in implementing this part shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of the Government Code.

CHAPTER  2. Natural Disaster Emergency Shelter Program

34070.
 It is the intent of the Legislature to encourage the provision of shelter to persons who are rendered homeless as the result of a natural disaster at as low a cost as possible, to encourage people to move from shelters to a self-supporting environment as soon as possible, and to encourage the provision of shelters at as low a cost and as quickly as possible without compromising the health and safety of shelter occupants.

34071.
 “Eligible recipient” as used in this chapter means an agency of local government or a nonprofit organization which provides, or contracts with recognized community organizations to provide, emergency or temporary shelter for the homeless.

34072.
 The department shall accept applications for grants pursuant to this chapter from local governmental agencies and nonprofit organizations which are eligible recipients and which are, at the time the application is made, prepared to provide emergency shelter to persons who have been rendered homeless as the result of a natural disaster.

34073.
 (a)  Notwithstanding Section 50803.5, in the event of a natural disaster, applications for grants for the Natural Disaster Emergency Shelter Program shall be submitted directly to the department. The department shall assume direct responsibility for the review, evaluation, or ranking of all applications.
(b)  The initial notice provided by the department of funding for grants shall be transmitted as soon as practicably possible, but in no event later than 15 days after the statute providing that funding is chaptered.

34074.
 (a)  Grants awarded, as a result of a natural disaster, may be used for any of the following:
(1)  Rent voucher programs to be used within or outside the jurisdiction for which they were issued.
(2)  Temporary expansion of existing shelters.
(3)  Creation of temporary shelters, equipment of buildings and sites for use as emergency shelters.
(4)  Operation of those shelters.
(5)  Administration of emergency shelter programs.
(b)  Any eligible recipient awarded a grant as a result of a natural disaster shall be required to use the grant funds to provide emergency shelter to persons who have been rendered homeless as a result of the natural disaster. Recipients shall practice nondiscrimination in the provision of the shelter and shall use the funds to supplement, not supplant, other state and local programs providing social services, health care, and housing assistance, and to meet any other qualifications the department finds necessary to carry out the intent of the Natural Disaster Emergency Shelter Program.

34075.
 Notwithstanding Section 50805, the department shall ensure that no limit is placed on the assignment of a grant allocation by a recipient to either operating or administrative expenses of the recipient.

34076.
 The department shall establish, by regulation, the types of expenses which are included within the meaning of operating and administrative expenses for purposes of this chapter. These expenses shall include, at a minimum all of the following:
(a)  Operation expenses relating to supervising and counseling clients in obtaining permanent shelter, job placement, and other sources of support.
(b)  Administrative expenses relating to telephone charges, office space rent, salary and benefits for administrative staff personnel, office supplies, photocopying and printing, and mail and accounting services.

34077.
 An eligible recipient who receives funds pursuant to this chapter, or who has an outstanding obligation to provide shelter services as a result of previously receiving funds pursuant to this chapter, shall not deny shelter to any person or family because of that person’s or family’s inability to pay rent or any portion thereof.

34078.
 For the purpose of providing disaster relief to individuals and families who have been rendered homeless as a result of a natural disaster, the department shall establish a program of security deposit grants and security deposit guarantees to enable local nonprofit agencies and local government to assist homeless individuals and families in the payment of residential rental security deposits.

34078.5.
 The director shall develop guidelines for use by local nonprofit agencies and local governments in determining whether a homeless applicant qualifies for a security deposit grant or a security deposit guarantee.

34079.
 Individuals who are eligible to participate in a deposit guarantee contract shall be limited to persons who have been rendered homeless as a result of the natural disaster. First priority for funds shall be families with minor children.

34080.
 The parties to a deposit guarantee contract shall be the local agency or organization, the tenant, and the rental property owner. The terms of the contract shall include all of the following:
(a)  The owner of the rental property shall agree to allow the security deposit to be paid over a specified number of months as an addition to the regular rental payment, rather than as a lump-sum payment.
(b)  Upon execution of the agreement, the local agency or organization shall encumber or reserve in a special fund as a guarantee of the contract, an amount equal to no less than 80 percent of the outstanding balance of the security deposit owed by the tenant to the landlord.
(c)  The tenant shall agree to a payment schedule of a specified number of months in which time the total amount of the required deposit shall be paid to the property owner.
(d)  At any time during the operation of the guarantee, the property owner shall make all claims first against amounts of the security deposit actually paid by the tenant and secondarily against the guarantee. At no time during or after the tenancy may the property owner make claims against the guarantee in excess of that amount agreed to as the guarantee.
(e)  If a deduction from the guarantee fund is required, it may be accomplished only to the extent permitted by the contract and in the manner provided by law, including notice to the local agency or organization. The tenant shall have no direct use of guarantee funds, including funds which may be referred to “last month’s rent.”
The department shall make available to local agencies and organizations receiving deposit guarantee contract grants forms deemed necessary for the contracts and the determination of eligibility. However, local agencies and organizations may develop and use their own forms as long as the forms meet the requirements of the deposit guarantee contract grant program.

34081.
 A local agency or organization receiving a deposit guarantee contract grant may utilize up to 5 percent of the allocation for costs of administering and operating its security deposit guarantee program.

34082.
 Individuals who are eligible to receive a security deposit grant shall be limited to persons who have been rendered homeless as a result of a natural disaster and whose income is insufficient to participate in the security deposit guarantee contract.

SEC. 4.

 Section 50661.5 is added to the Health and Safety Code, to read:

50661.5.
 There is hereby created in the State Treasury the California Disaster Housing Rehabilitation Fund into which shall be paid all moneys appropriated by the Legislature for housing rehabilitation loans pursuant to Sections 50662.7 and 50671.5. Notwithstanding Section 13340 of the Government Code, all money in that fund is continuously appropriated for that purpose.
In the event of a natural disaster, as defined in Section 8680.3 of the Government Code, the Director of Finance may transfer moneys from the Special Fund for Economic Uncertainties established by Section 16418 to the California Disaster Housing Rehabilitation Fund, provided the transfer is not made sooner than 30 days after notification in writing of the necessity therefor is provided to the Joint Legislative Budget Committee.

SEC. 5.

 Section 50661.7 is added to the Health and Safety Code, to read:

50661.7.
 The Director of the Department of Housing and Community Development may transfer moneys appropriated or otherwise made available for the purposes of the programs established under Sections 50662.7 and 50671.5 between those programs when there is insufficient funding to meet the loan demand in either of those programs and an uncommitted funding balance in the other program.

SEC. 6.

 Section 50662.7 is added to the Health and Safety Code, to read:

50662.7.
 For the purpose of providing disaster relief to those owners of owner-occupied single-family dwellings that were damaged or destroyed as a result of a natural disaster defined by Section 8680.3 of the Government Code, resulting in a state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code, financial assistance may be provided to disaster victims as prescribed in this chapter under the following special conditions, which shall prevail over conflicting provisions of this chapter and administrative regulations:
(a)  The loans shall be provided in the counties proclaimed by the Governor to be in a state of disaster (1) to persons who do not qualify for loan assistance from an agency of the United States for rehabilitation of the damage caused by a natural disaster, (2) to the extent that federally provided or assisted financing may be insufficient to accomplish the necessary rehabilitation, and (3) to the extent required to enable the recipient to obtain and afford loan assistance from an agency of the United States to finance the necessary rehabilitation. The loans shall be made only to households that are victims of a natural disaster and only to the extent that other federal and state resources, or private institutional lending sources, are not available or do not provide the assistance or coverage needed to rehabilitate or reconstruct their homes.
(b)  The loans shall be for the purpose of rehabilitating, including reconstructing, dwellings that are owner-occupied or would be owner-occupied but for the damage caused by the natural disaster. For the purposes of this section, “owner-occupied dwellings” include single-family units, attached owner-occupied units, condominiums, town houses, cooperatives, any duplex in which the owner occupies one unit, and manufactured homes, including mobilehomes.
(c)  The maximum loan amount shall not exceed thirty thousand dollars ($30,000), except that the department may waive this limitation in individual cases to permit compliance with health and safety standards, seismic safety standards, and general property improvements relating to these standards. In the case of manufactured homes or mobilehomes, loan funds shall be used to bring the dwelling into compliance with Chapter 4 (commencing with Section 18025) of Part 2 of Division 13.
(d)  The loan, together with any existing indebtedness encumbering the property, shall not exceed 100 percent of the after-rehabilitation value of the property, except that the department may waive this limitation in individual cases to permit compliance with health and safety standards, seismic safety standards, and general property improvements relating to these standards.
(e)  The department shall not consider either individual or family income in determining eligibility for a loan under this section.
(f)  Repayment of the principal amount of a loan under this section and interest thereon shall not be required until the borrower transfers ownership of the rehabilitated property or refinances the property, whichever occurs first. Payments of principal and interest on the loans, and any excess loan funds that are rebated to the department, shall, notwithstanding Section 50661, be deposited in the General Fund.
(g)  The department may make loans directly to borrowers, or contract for the administration of loans with one or more entities that it determines to have the necessary experience to successfully administer the loan program, including, but not limited to, local public agencies and private organizations. The department may authorize, under that contract, the payment of expenses incurred by the entities in administering the loan program and may prescribe the conditions pursuant to which the entities shall administer the loans.
(h)  The department may utilize any funds deposited into the California Disaster Housing Rehabilitation Fund, and any interest that accrues on those funds, for the payment of any administrative or other program cost incurred under this section.
(i)  Section 50668 does not apply to loans made pursuant to this section.
(j)  The department may apply funds appropriated for the purposes of this section for the purpose of curing or averting an owner’s default on the terms of any loan or other obligation where that default would jeopardize the department’s security in the owner-occupied housing assisted pursuant to this section. The payment or advance of funds by the department pursuant to this subdivision shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the department pursuant to this subdivision shall be added to the loan amount secured by the deed of trust and shall be payable to the department upon demand.
(k)  Any rule, policy, or standard of general application employed by the Department of Housing and Community Development in implementing this section shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
( l)  Fund allocations made pursuant to this section shall not be subject to review or approval by the Loan Committee of the Department of Housing and Community Development operating pursuant to Subchapter 1 (commencing with Section 6900) of Chapter 6.5 of Title 25 of the California Code of Regulations.
(m)  In order to be eligible for one or more lands pursuant to this section, the borrower shall agree to brace foundation cripple walls, affix or bolt a sill plate to the foundation, and brace and stabilize all free-standing, standup type water heaters. The loans shall include an amount sufficient to meet those requirements.

SEC. 7.

 (a)  The sum of forty-one million five hundred thousand dollars ($41,500,000) is hereby appropriated from the Special Fund for Economic Uncertainties for allocation in accordance with the following schedule:
(1)  The sum of thirty-two million dollars ($32,000,000) to the California Disaster Housing Rehabilitation Fund for housing rehabilitation loans pursuant to Section 50662.7 of the Health and Safety Code.
(2)  The sum of nine million five hundred thousand dollars ($9,500,000) to the Natural Disaster Community Assistance Account which is hereby created in the Natural Disaster Assistance Fund, for allocation as follows:
(A)  The sum of five million dollars ($5,000,000) to the Emergency Housing and Assistance Fund established pursuant to Section 50800.5 of the Health and Safety Code, to be expended for the purposes authorized by Chapter 2 (commencing with Section 34070) of Part 1.6 of the Division 24 of the Health and Safety Code.
(B)  The sum of one million dollars ($1,000,000) to the Rural Redevelopment Loan Fund established pursuant to Section 50516 of the Health and Safety Code, to be expended for the purposes of Section 34052 of the Health and Safety Code.
(C)  The sum of one million dollars ($1,000,000) to the Urban Redevelopment Loan Fund established pursuant to Section 50531 of the Health and Safety Code, to be expended for the purposes of Section 34052 of the Health and Safety Code.
(D)  The sum of one million dollars ($1,000,000) to the special fund of the Office of Migrant Services for the purposes specified in Section 34053 of the Health and Safety Code, to be used to continue the operation of migrant centers as needed to respond to the October 17, 1989, earthquake and aftershocks that occurred in northern California.
(E)  The sum of one million dollars ($1,000,000) to the Department of Commerce for the operation of the rural economic development program authorized in this act for the purposes of Section 34053.
(F)  The sum of five hundred thousand dollars ($500,000) to the Emergency Housing and Assistance Fund established pursuant to Section 50800.5 of the Health and Safety Code, to be allocated by the Department of Housing and Community Development for the purposes of the residential rental security deposit grants authorized under Section 34078 of the Health and Safety Code.
(b)  The Director of the Department of Housing and Community Development may transfer any amount of the funds appropriated to the department under this section for the purposes of Article 6 (commencing with Section 15373.96) of Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of the Government Code for the purpose of providing infrastructure for trailers that provide temporary housing.

SEC. 8.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
To provide for the urgent housing needs of the residents of California who suffered serious personal and property losses as a result of the earthquake that occurred in northern California on October 17, 1989, it is necessary that this act take effect immediately.