Amended
IN
Senate
August 06, 2012 |
Amended
IN
Senate
June 26, 2012 |
Amended
IN
Assembly
April 30, 2012 |
Amended
IN
Assembly
April 17, 2012 |
Amended
IN
Assembly
March 29, 2012 |
Introduced by
Assembly Member
Skinner, John A. Pérez |
February 24, 2012 |
This act shall be known and cited as the California Neighborhood Revitalization Partnership Act of 2012.
There is hereby established the California Neighborhood Revitalization Partnership Act of 2012, to be administered by the California Housing Finance Agency in consultation with the Department of Housing and Community Development, to finance affordable housing for low- to moderate-income households and to revitalize neighborhoods damaged by the foreclosure crisis.
For purposes of this part, the following definitions have the following meanings:
(a)“Agency” means the California Housing Finance Agency.
(b)“Applicant” means a local governmental entity, a housing nonprofit organization, or a consortium of nonprofit entities, or a combination thereof.
(c)“Executive director” means
the Executive Director of the California Housing Finance Agency.
(d)“Foreclosed property” means a home or residential property which title has been acquired by the foreclosing entity at a trustee sale.
(e)“Fund” means the California Neighborhood Revitalization Fund as created pursuant to Section 53569.
(f)“Grantee” means an applicant that is awarded a grant or loan by the agency pursuant to this part.
The executive director or his or her designee shall carry out the following duties and responsibilities under the act:
(a)Facilitate the interaction and negotiation between financial institutions, private investors, local governments, nonprofits, or a consortium of nonprofit entities in the identification and acquisition of foreclosed properties for resale, rental, or lease-to-own structures for low- and moderate-income families.
(b)Award grants or loans from the California Neighborhood Revitalization Fund to applicants.
(c)Develop strategies with the State Energy Resources
Conservation and Development Commission and the Public Utilities Commission to leverage investments in the rehabilitation of foreclosed properties to improve energy efficiency.
(d)Maximize job and apprenticeship opportunities by coordinating multiple program investments.
(a)There is hereby established the California Neighborhood Revitalization Fund for purposes of this act.
(b)Notwithstanding Section 50697.1, the sum of twenty-five million dollars ($25,000,000)
is hereby transferred from the Self-Help Housing Fund pursuant to subparagraph (E) of paragraph (1) of subdivision (a) of Section 53545 to the fund, which shall be continuously appropriated for purposes of this part.
(c)Administrative costs of the agency or a grantee, including audit and program oversight costs of the agency or a grantee, shall not exceed 5 percent of the program’s costs.
(d)The agency may accept and receive gifts, grants, or donations from any agency of the United States, any agency of the state, or any municipality, county, or other political subdivision of the state.
Funding to grantees pursuant to this part shall be awarded in the form of grants or loans pursuant to Sections 53571 and 53572. The agency shall allocate funds on a competitive basis.
Eligible uses for funding shall include, but shall not be limited to, the following purposes:
(a)Establish financing mechanisms for purchase and rehabilitation of foreclosed homes and residential properties.
(b)Purchase homes and residential properties abandoned or foreclosed.
(c)Demolish blighted structures that are foreclosed or abandoned, or redevelop demolished or vacant properties.
(a)The agency shall develop guidelines by March 14, 2013, in consultation with the Department of Housing and Community and Development, the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, local governments, nonprofit housing entities, and financial institutions. Guidelines adopted by the agency shall include, but shall not be limited to, the following:
(1)An application process for the funds.
(2)A requirement for a contribution of a specified percentage of funds leveraged from other sources.
(3)Project selection criteria.
(4)Accountability and auditing requirements.
(5)Ranges for grant and loan amounts.
(6)A requirement for affordability covenants of at least 15 years on rental units funded by the act.
(7)A requirement that a single-family home that is funded pursuant to this part include an equity sharing agreement that meets the following requirements:
(A)Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation. The grantee shall recapture any initial subsidy, as defined in subparagraph (B), and its proportionate share of appreciation, as defined in subparagraph (C), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 that promote home ownership.
(B)For purposes of this paragraph, the grantee’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the
initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.
(C)For purposes of this paragraph, the grantee’s proportionate share of appreciation shall be equal to the ratio of the grantee’s initial subsidy to the fair market value of the home at the time of initial sale.
(b)(1)Prior to the adoption of the guidelines, the agency shall hold not less than one public hearing.
(2)The guidelines shall be
adopted at a public hearing.
(c)The guidelines shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).