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ACA-11 California Middle Class Affordable Housing and Homeless Shelter: funding.(2017-2018)

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ACA11:v98#DOCUMENT

Amended  IN  Assembly  August 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Constitutional Amendment
No. 11


Introduced by Assembly Member Caballero

March 20, 2017


A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Article XXXIV A thereto, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


ACA 11, as amended, Caballero. California Middle Class Affordable Housing and Homeless Shelter: funding.
The California Constitution prohibits the development, construction, or acquisition of a low-rent housing project, as defined, in any manner by any state public body until a majority of the qualified electors of the city, town, or county in which the development, construction, or acquisition of the low-rent housing project is proposed approve the project by voting in favor at an election, as specified.
This measure would create the California Middle Class Affordable Housing and Homeless Shelter Account in the General Fund for the support of local and state programs that assist in the development or acquisition of housing, as specified. The measure would impose a tax upon all retailers at the rate of 0.25% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state on and after January 1, 2019. The measure would impose an excise tax on the storage, use, or other consumption in this state of tangible personal property purchased from any retailer on and after January 1, 2019, for the storage, use, or other consumption in this state at a rate of 0.25% of the sales price of the property. The measure would require the revenues, less refunds, from these taxes to be deposited in the California Middle Class Affordable Housing and Homeless Shelter Account. The measure would require the funding to be distributed throughout the state in an equitable fashion for housing acquisition and development projects in local jurisdictions in proportion to the local jurisdiction’s share of the regional housing need incorporated into the housing element of the local jurisdiction’s general plan. The measure would authorize the distribution of these revenues in the form of loans, grants, tax credits, revenue bonds, and other financing options to acquire or construct additional affordable housing stock, as specified. The measure would prohibit these revenues from being used for any other purposes except as specified. revenues within the account to be allocated for various existing housing programs, as well as infill infrastructure financing, affordable housing matching grant programs, and affordable senior housing and supportive care campuses, as provided.
Vote: 2/3   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

WHEREAS, The availability of affordable housing for middle class and lower income households, and adequate housing and shelter options for homeless individuals is of vital statewide importance; and
WHEREAS, Lack of supply and rising costs are compounding growing inequality and limiting advancement opportunities for younger Californians and decreasing California’s ability to attract and retain employers; and
WHEREAS, Californians from all walks of life, including veterans, teachers, school employees, public safety employees, seniors, young families, people with disabilities, farmworkers, homeless people, and individuals and families of lower and moderate income need additional rental and home ownership opportunities; and
WHEREAS, Providing Californians with additional safe and affordable rental and home ownership opportunities requires a stable and reliable source of funding which, when combined with other local, state, and federal housing programs, ensures that funding will be available for these opportunities; and
WHEREAS, The purpose of this measure is to provide a significant, stable, and reliable source of funding to expand the availability of affordable housing for middle class and lower income households, and increase housing and shelter options for homeless individuals; now, therefore, be it
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2017–18 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

 That Article XXXIV A is added thereto, to read:

Article  XXXIVA CALIFORNIA MIDDLE CLASS AFFORDABLE HOUSING AND HOMELESS SHELTER

SECTION 1.
 (a) The California Middle Class Affordable Housing and Homeless Shelter Account is hereby created in the General Fund to receive and disburse the revenues derived from the incremental increases in taxes imposed by this section, as specified in subdivision (b).
(b) (1) In addition to the taxes imposed by Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code, for the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers at the rate of 0.25 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this State on and after January 1, 2019.
(2) In addition to the taxes imposed by Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code, an excise tax is hereby imposed on the storage, use, or other consumption in this State of tangible personal property purchased from any retailer on and after January 1, 2019, for the storage, use, or other consumption in this State at the rate of 0.25 percent of the sales price of the property.
(3) The Sales and Use Tax Law (commencing with Section 6001 of the Revenue and Taxation Code) Code), including any amendments thereof enacted on or after the effective date of this section, shall apply to the taxes imposed pursuant to this subdivision.
(c) Revenues, less refunds, derived pursuant to subdivision (b) shall be deposited in the California Middle Class Affordable Housing and Homeless Shelter Account and shall not be considered “General Fund revenues,” “state revenues,” or “General Fund proceeds of taxes” for purposes of Sections 8 and 8.5 of Article XVI, and their implementing statutes. Revenues authorized by this article shall not be used for any purpose except as specified in this article.

SEC. 2.

(a)Revenues within the California Middle Class Affordable Housing and Homeless Shelter Account shall be available to support local and state programs that assist in the development or acquisition of the following:

(1)Home ownership assistance for first-time home buyers.

(2)Multifamily housing with rents affordable to middle-, moderate-, lower, low-, and very low income households, as those terms are defined in Section 50093 of the Health and Safety Code, on January 1, 2017.

(3)Housing and shelter for homeless individuals.

(b)Funding shall be distributed throughout the State in an equitable fashion for housing acquisition and development projects in local jurisdictions in proportion to the local jurisdiction’s share of the regional housing need incorporated into the housing element of the local jurisdiction’s general plan.

(c)Revenues made available by this article to support local and state housing programs may be distributed in the form of loans, grants, tax credits, revenue bonds, and other financing options to acquire or construct additional affordable housing with the objective of efficiently leveraging the availability of other state, federal, and local resources and private sector investment to maximize the number of households and individuals assisted.

SEC. 2.

 Revenues within the California Middle Class Affordable Housing and Homeless Shelter Account shall be allocated as follows:
(a) Thirty percent for the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code, as that chapter read on January 1, 2017, to be expended to assist in the new construction, rehabilitation, and preservation of permanent and transitional rental housing for persons with incomes of up to 60 percent of the area median income (AMI). These funds may also be used to provide technical assistance pursuant to Section 54007 of the Health and Safety Code, as that section read on January 1, 2017.
(b) Fifteen percent to be deposited into the Transit-Oriented Development Implementation Fund, established pursuant to Section 53561 of the Health and Safety Code, as that section read on January 1, 2017, for expenditure, upon appropriation by the Legislature, pursuant to the Transit-Oriented Development Implementation Program authorized by Part 13 (commencing with Section 53560) of Division 31 of the Health and Safety Code, as that part read on January 1, 2017, to provide local assistance to cities, counties, cities and counties, transit agencies, and developers for the purpose of developing or facilitating the development of higher density uses within close proximity to transit stations that will increase public transit ridership. These funds may also be expended for any authorized purpose of this program.
(c) (1) Fifteen percent for the Infill Incentive Grant Program of 2007 established by Section 53545.13 of the Health and Safety Code, as that section read on January 1, 2017, for infill incentive grants to assist in the new construction and rehabilitation of infrastructure that supports high-density affordable and mixed-income housing in locations designated as infill, including, but not limited to, any of the following:
(A) Park creation, development, or rehabilitation to encourage infill development.
(B) Water, sewer, or other public infrastructure costs associated with infill development.
(C) Transportation improvements related to infill development projects.
(D) Traffic mitigation.
(2) These funds may also be expended for any authorized purpose of this program.
(d) Ten percent to be deposited into the Building Equity and Growth in Neighborhoods (BEGIN) Program Fund, established pursuant to Section 50860 of the Health and Safety Code, as that section read on January 1, 2017, for expenditure, upon appropriation by the Legislature, pursuant to the BEGIN Program authorized by Chapter 14.5 (commencing with Section 50860) of Part 2 of Division 31 of the Health and Safety Code, as that chapter read on January 1, 2017, to make grants to qualifying cities, counties, or cities and counties that shall be used for downpayment assistance to qualifying first-time home buyers or low- and moderate-income buyers purchasing newly constructed homes in a BEGIN project. These funds may also be expended for any authorized purpose of this program.
(e) Ten percent for the Local Housing Trust Fund Matching Grant Program established by Section 50842.2 of the Health and Safety Code, as that section read on January 1, 2017, to fund competitive grants or loans to local housing trust funds that develop, own, lend, or invest in affordable housing and used to create pilot programs to demonstrate innovative, cost-saving approaches to creating or preserving affordable housing. Local housing trust funds shall be derived on an ongoing basis from private contribution or governmental sources that are not otherwise restricted in use for housing programs. These funds may also be expended for any authorized purpose of this program.
(f) Five percent for the CalHome Program authorized by Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the Health and Safety Code, as that chapter read on January 1, 2017, to provide direct, forgivable loans to assist development projects involving multiple home ownership units, including single-family subdivisions, for self-help mortgage assistance programs, and for manufactured homes. These funds may also be expended for any authorized purpose of this program.
(g) Ten percent for affordable senior housing and supportive care campuses.