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SB-479 Tenancy: automatic renewal or extension of lease.(2019-2020)

SB479:v98#DOCUMENT

Amended  IN  Senate  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 479


Introduced by Senator Atkins

February 21, 2019


An act to amend Section 50676 of the Health and Safety Code, relating to housing. Section 1945.5 of the Civil Code, relating to tenancy.


LEGISLATIVE COUNSEL'S DIGEST


SB 479, as amended, Atkins. Federal Housing Trust Fund: allocation plan. Tenancy: automatic renewal or extension of lease.
Under existing law, a lease for residential housing that provides for the automatic renewal or extension of the lease if the lessee remains in possession after the lease’s expiration, or if the lessee fails to give notice of intent not to renew or extend before expiration of the lease, is voidable by the party who did not prepare the lease, unless the renewal or extension provision, and a recital regarding the presence of this provision, appears in the agreement in at least 8-point boldface type, if the contract is printed.
This bill would require instead that the renewal or extension provision and the recital, as described above, appear in at least 12-point boldface type.

Existing federal law requires the United States Secretary of Housing and Urban Development to establish a Housing Trust Fund to provide grants to states to increase the supply of rental housing for extremely low and very low income families, including homeless families, and homeownership for extremely low and very low income families.

Existing law designates the Department of Housing and Community Development as the state agency responsible for administering funds received from the federal Housing Trust Fund and requires the department to develop an allocation plan, as specified, to demonstrate how the funds shall be distributed. Existing law requires the department to submit the plan to the Assembly Committee on Housing and Community Development and the Senate Transportation and Housing Committee 30 days after receipt of the federal funds.

This bill would instead require the department to submit the plan to the Assembly Committee on Housing and Community Development and the Senate Housing Committee 30 days after receipt of the federal funds.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 1945.5 of the Civil Code is amended to read:

1945.5.
 Notwithstanding any other provision of law, any term of a lease executed after the effective date of this section for the hiring of residential real property which that provides for the automatic renewal or extension of the lease for all or part of the full term of the lease if the lessee remains in possession after the expiration of the lease or fails to give notice of his the lessee’s intent not to renew or extend before the expiration of the lease shall be voidable by the party who did not prepare the lease unless such renewal or extension provision appears in at least eight-point 12-point boldface type, if the contract is printed, in the body of the lease agreement and a recital of the fact that such provision is contained in the body of the agreement appears in at least eight-point 12-point boldface type, if the contract is printed, immediately prior to the place where the lessee executes the agreement. In such this case, the presumption in Section 1945 of this code shall apply.
Any waiver of the provisions of this section is void as against public policy.

SECTION 1.Section 50676 of the Health and Safety Code is amended to read:
50676.

(a)The department is hereby designated as the state agency responsible for administering funds received by the state from the federal Housing Trust Fund pursuant to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), and implementing federal regulations. The department may use up to 10 percent of the federal Housing Trust Fund annual grant award for expenses of administering these funds.

(b)The department shall administer the funds through any existing or newly created programs that produce, preserve, rehabilitate, or support the operation of rental housing for extremely low income and very low income households, except that up to 10 percent of funding may be used to support home ownership for extremely low income and very low income households. Any rental project funded from the federal Housing Trust Fund shall restrict affordability for 55 years through a recorded and enforceable affordability covenant. Any home ownership program funded from the federal Housing Trust Fund shall restrict affordability for 30 years through either a recorded and enforceable affordability covenant or a recorded and enforceable equity recapture agreement.

(c)The department shall collaborate with the California Housing Finance Agency to develop an allocation plan to demonstrate how the funds shall be distributed, based on the priority housing needs identified in the state’s consolidated plan prepared in accordance with Part 91 (commencing with Section 91.1) of Subtitle A of Title 24 of the Code of Federal Regulations. The department shall submit the plan to the Assembly Committee on Housing and Community Development and the Senate Housing Committee 30 days after receipt of the federal funds.

(d)The allocation plan and guidelines shall give priority to projects based on:

(1)Geographic diversity.

(2)The extent to which rents are affordable, especially to extremely low income households.

(3)The merits of a project.

(4)Applicants readiness.

(5)The extent to which projects will use nonfederal funds.