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AB-3144 Housing Cost Reduction Incentive Program.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3144:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3144


Introduced by Assembly Member Grayson

February 21, 2020


An act to add Chapter 17 (commencing with Section 50897) to Part 2 of Division 31 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 3144, as introduced, Grayson. Housing Cost Reduction Incentive Program.
Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified types of housing projects. Existing law, the Mitigation Fee Act, establishes procedures and limitations with respect to the establishment, increase, or imposition of fees, as defined, as a condition of approval of a development project by a local agency, including requiring the local agency to determine the reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
This bill would establish the Housing Cost Reduction Incentive Program, to be administered by the department, for the purpose of reimbursing cities, counties, and cities and counties for development impact fee waivers or reductions provided to qualified rental housing developments. Upon appropriation, the bill would require the department to provide grants to applicants in an amount equal to 50% of the amount of development impact fee waived or reduced for a qualified rental housing development by issuing a Notice of Funding Availability for each calendar year in which funds are made available for the program, as provided. The bill would require an applicant that receives a grant under the program to use those funds solely for those purposes for which the development impact fee that was waived or reduced would have been used. The bill would require the department to adopt guidelines to implement the program and exempt those guidelines from the rulemaking provisions of the Administrative Procedure Act.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 17 (commencing with Section 50897) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER  17. Housing Cost Reduction Incentive Program

50897.
 For purposes of this chapter:
(a) “Applicant” means a city, county, or city and county.
(b) “Development impact fee” means a fee, as that term is defined in subdivision (b) of Section 66000 of the Government Code.
(c) “NOFA” means a Notice of Funding Availability.
(d) “Program” means the Housing Cost Reduction Incentive Program established in Section 50897.2.
(e) “Qualified rental housing development” means a rental housing development that is or will be subject to a recorded regulatory agreement with an applicant, with a term of at least 55 years, that requires that at least 75 percent of the units, excluding any manager’s units, be affordable to, and occupied by, lower income households.

50897.2.
 (a) There is hereby established the Housing Cost Reduction Incentive Program for the purpose of reimbursing cities, counties, and cities and counties for development impact fee waivers or reductions provided to qualified rental housing developments.
(b) The department shall administer the program.

50897.4.
 (a) (1) Upon appropriation by the Legislature for purposes of the program, the department shall provide grants to applicants in an amount equal to 50 percent of the amount of the development impact fee waived or reduced for a qualified rental housing development. For each calendar year in which funds are made available for the program, the department shall issue a NOFA for the distribution of funds to cover a development impact fee waiver or reduction by an applicant during the 12-month period subsequent to the NOFA. The department shall accept applications from applicants at the end of the 12-month period.
(2) If for any NOFA the amount of funds made available for the program is insufficient to provide each eligible applicant with the full amount specified in paragraph (1), based on the number of applications received, the department shall reduce the amount of grant funds awarded to each eligible applicant proportionally.
(b) A development impact fee, the reduction or waiver of which an applicant may seek a grant pursuant to the program, shall be limited to a development impact fee imposed by an applicant in accordance with the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).
(c) The department shall not award a grant to an applicant that is otherwise eligible for a grant under the program if the applicant, by ordinance, policy, or practice, provides waivers or reductions of development impact fees to a development project other than an affordable rental housing development for lower income households, as defined in Section 50079.5, or affordable owner-occupied housing moderate income households, as defined in Section 50093.

50897.6.
 (a) An applicant that receives a grant under the program shall deposit those funds into the same fund or account into which it would otherwise deposit the proceeds of a development impact fee imposed on a qualified rental housing development if that fee had not been waived or reduced. The applicant shall use grant funds solely for those purposes for which the development impact fee that was waived or reduced would have been used.
(b) Grant funds awarded pursuant to the program shall be deemed to be fees collected for purposes of Section 66006 of the Government Code.

50897.8.
 The department shall adopt guidelines for the operation of the program. Program guidelines adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.