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SB-912 California Housing Finance Agency: management compensation.(2017-2018)

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Date Published: 06/20/2018 09:00 PM
SB912:v94#DOCUMENT

Amended  IN  Assembly  June 20, 2018
Amended  IN  Senate  May 25, 2018
Amended  IN  Senate  April 12, 2018
Amended  IN  Senate  March 08, 2018
Amended  IN  Senate  February 20, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 912


Introduced by Senators Beall and Skinner
(Coauthors: Senators Hill, Lara, Portantino, and Wiener)

January 18, 2018


An act to add Part 14.3 (commencing with Section 53605) to Division 31 amend Section 50909 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 912, as amended, Beall. Housing: homelessness programs and affordable housing. California Housing Finance Agency: management compensation.
Existing law establishes the California Housing Finance Agency, within the Department of Housing and Community Development, with a primary purpose of meeting the housing needs of persons and families of low or moderate income. Existing law, among other officers within the agency, provides for a director of enterprise risk management and compliance with specified duties related to the development of new programs or changes to existing law or regulations that may result in new or increased risk to the agency. Existing law requires that the board of directors of the agency establish the compensation of the key exempt management in the agency’s annual budget, as provided.
This bill, with respect to the compensation of those key exempt management positions, would include the director of enterprise risk management and compliance and the risk manager among those positions, and would delete obsolete references.

Existing law establishes various housing and home loan programs throughout the state to help low-income families and other specified groups.

This bill would authorize the Budget Act of 2018 to include funding to address the issues of affordable housing, long-term homelessness solutions, and emergency homelessness interventions, as specified. The bill would also include legislative findings as to the necessity to provide additional funding for housing.

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

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


SECTION 1.

 Section 50909 of the Health and Safety Code is amended to read:

50909.
 (a) Notwithstanding Sections 19816 and 19825 of the Government Code, the compensation of key exempt management, including the executive director, the chief deputy director, the general counsel, the director of financing, the director of homeownership programs, the director of multifamily programs, the director of insurance and the financial risk management director enterprise risk management and compliance, and the risk manager, shall be established by the board in the agency’s annual budget, in amounts which are reasonably necessary, in the discretion of the board, to attract and hold a person of superior qualifications.
(b) (1)  To determine the compensation for the positions described in this section, the board shall cause to be conducted, through the use of independent outside advisors, salary surveys of both of the following:
(A) Other state and local housing finance agencies that are most comparable to CalHFA.
(B) Other relevant labor pools.
(2) The salaries so set by the board shall not exceed the highest comparable salary for a position of that type, as determined by the survey.
(c) The Department of Human Resources shall review the methodology used in these salary surveys.
(d) Members of the board shall not receive a salary but shall be entitled to a per diem allowance of one hundred dollars ($100) for each day’s attendance at a meeting of the board or a meeting of a committee of the board, not to exceed three hundred dollars ($300) in any month, and reimbursement for expenses incurred in the performance of their duties under this part, including travel and other necessary expenses.

SECTION 1.

The Legislature finds and declares the following:

(a)Despite recent legislative efforts, California has not been able to fill the funding gap from the loss of redevelopment funds and statewide housing bonds passed in the 2000s. The state housing crisis is the leading driver of the rise in homelessness.

(b)The recent 2017 federal tax law, Public Law 115-97, reduces the value of the low-income housing tax credit (LIHTC). The LIHTC program is the most successful state and national housing program and critical for all affordable housing built in California. As a result, California will lose $540 million, or about 4,000 to 5,000 units, per year.

(c)According to the Department of Finance, over the last 10 years, California has experienced a 34 percent reduction in federal housing funds.

(d)According to the Department of Housing and Community Development, from 2016 to 2017, California experienced the largest increase in the number of people experiencing homelessness, about 14 percent. Its homeless population accounts for 25 percent of the national homeless population.

(e)Housing the homeless saves taxpayer money. According to the most comprehensive homelessness cost study in the United States, the average prehousing public cost was $62,000, and the average posthousing cost was $20,000, equal to an annual reduction of nearly $43,000, or 68 percent.

(f)It is the intent of the Legislature to offset federal funding cuts and the reduced value of the LIHTC by investing in existing and successful state housing programs.

(g)It is further the intent of the Legislature to emphasize the financing of housing for vulnerable populations, including: chronically homeless persons who frequently use hospitals or are incarcerated, homeless transitional age youth, homeless college students, families with repeated instances of homelessness, domestic violence survivors, veterans, and persons with a physical or mental disability.

SEC. 2.Part 14.3 (commencing with Section 53605) is added to Division 31 of the Health and Safety Code, to read:
14.3.Funding for Homelessness Programs and Affordable Housing
53605.

The Budget Act of 2018 may include funding to address the issues of affordable housing, long-term homelessness solutions, and emergency homelessness interventions for all of the following:

(a)The Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2.

(b)The California low-income housing tax credit.

(c)The Housing for a Healthy California Program established pursuant to Part 14.2 (commencing with Section 53590).

(d)The Homeless Coordinating and Financing Council established pursuant to Section 8257 of the Welfare and Institutions Code.

(e)The Homeless Emergency Aid block grant.

(f)The California Emergency Solutions Grants Program (Chapter 19 (commencing with Section 50899.1) of Part 2).

(g)The Homeless Youth and Exploitation Program (Chapter 6 (commencing with Section 13700) of Part 3 of Division 9 of the Welfare and Institutions Code).

(h)Domestic violence shelters and services.

(i)CalWORKS Housing Support (Article 3.3 (commencing with Section 11330) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code).

(j)Homeless assistance under the California Work Opportunity and Responsibility to Kids program pursuant to Section 11450 of the Welfare and Institutions Code.

(k)The Home Safe program.

(l)Homeless mental illness outreach.