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SB-1150 CalHome Program: loans: federally declared disaster.(2019-2020)

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Date Published: 03/25/2020 09:00 PM
SB1150:v98#DOCUMENT

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1150


Introduced by Senator Nielsen
(Coauthor: Assembly Member Gallagher)

February 20, 2020


An act to amend Section 181 of the Revenue and Taxation Code, 50650.3 of the Health and Safety Code, relating to property taxation. housing, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 1150, as amended, Nielsen. Disaster relief. CalHome Program: loans: federally declared disaster.
Existing law establishes the CalHome Program, administered by the Department of Housing and Community Development, to enable low- and very low income households to become or remain homeowners. Existing law authorizes the department to use funds for specified expenses, among other things, incurred on home ownership development projects and permanent financing for mutual housing or cooperative developments. Existing law authorizes the department, upon completion of the project, to convert project loans into grants for assistance programs to individual homeowners. Existing law authorizes the department to provide financial assistance in the form of a secured forgivable loan to an individual household to rehabilitate, repair, or replace manufactured housing located in a mobilehome park when specified conditions are met. Existing law, the Veterans and Affordable Housing Bond Act of 2018, deposits $300,000,000 to the Self-Help Housing Fund, a continuously appropriated fund, for purposes of the CalHome Program, as specified.
This bill would additionally authorize the department to provide financial assistance in the form of a secured forgivable loan to an individual household to rehabilitate, repair, or replace housing in a community where 7.5% of the total housing stock was destroyed in a federally declared disaster. By expanding the uses of a continuously appropriated fund, the bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.

Existing law authorizes an owner of eligible property who files a claim for reassessment based upon flood or storm damage to apply to the county assessor to defer payment of the 2nd installment of property taxes on the regular secured roll with respect to that property that are due no later than April 10, 1986, as specified. Existing law specifies that if a timely claim is filed, the payment shall be deferred without penalty or interest until the assessor has reassessed the property and a corrected bill has been issued to the property owner, after which the deferred taxes are due 30 days after the date the corrected tax bill is issued and if unpaid thereafter are delinquent. Existing law defines “eligible county” and “eligible property” for purposes of these provisions.

This bill would make nonsubstantive changes to the provisions that define those terms.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The Camp Fire was a disaster with catastrophic impacts upon the housing stock in and around the County of Butte.
(b) The disaster destroyed over 14,000 homes and displaced nearly 35,000 residents.
(c) Government reporting has shown that thousands of individuals within the region are still having difficulty finding affordable places to live and the county bears a net outmigration since the disaster far beyond any other region in California.

SEC. 2.

 Section 50650.3 of the Health and Safety Code is amended to read:

50650.3.
 (a) Funds appropriated for purposes of this chapter shall be used to enable low- and very low income households to become or remain homeowners as provided in paragraphs (1) and (2), and to provide disaster relief assistance to households at or below 120 percent of area median income as provided in paragraph (3). Funds shall be provided by the department to local public agencies or nonprofit corporations as any of the following:
(1) Grants for programs that assist individual households.
(2) Loans that assist development projects involving multiple home ownership units, including single-family subdivisions.
(3) Grants for programs that assist individual households as provided in subdivision (g).
(b) (1) Grant funds may be used for first-time homebuyer downpayment assistance, home rehabilitation, including the installation or retrofit of ignition resistant exterior components on existing manufactured homes, mobilehomes, and accessory structures required pursuant to Article 2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California Code of Regulations, homebuyer counseling, home acquisition and rehabilitation, or self-help mortgage assistance programs, or for technical assistance for self-help and shared housing home ownership.
(2) Home rehabilitation funding for the purpose of installing ignition resistant components on manufactured homes, mobilehomes, or accessory structures pursuant to this subdivision shall not be conditioned upon the rehabilitation of additional or unrelated home components unless that rehabilitation is required pursuant to Article 2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California Code of Regulations. In administering funding for this purpose, local public agencies and nonprofit corporations may consider the condition and age of the manufactured home or mobilehome, including whether the home was constructed on or after June 15, 1976, in accordance with federal standards and whether the available funds could be more effectively used to replace the manufactured home or mobilehome.
(c) (1) Except as provided in subdivision (e), loan funds may be used for purchase of real property, site development, predevelopment, and construction period expenses incurred on home ownership development projects, and permanent financing for mutual housing or cooperative developments. Upon completion of construction, the department may convert project loans into grants for programs of assistance to individual homeowners. Except as provided in paragraph (2), financial assistance provided to individual households shall be in the form of deferred payment loans, repayable upon sale or transfer of the homes, when they cease to be owner-occupied, or upon the loan maturity date. Financial assistance may be provided in the form of a secured forgivable loan to an individual household to rehabilitate, repair, or replace manufactured housing located in a mobilehome park and not permanently affixed to a foundation. foundation, or to an individual household to rehabilitate, repair, or replace housing in a community where 7.5 percent of the total housing stock was destroyed in a federally declared disaster. The loan shall be due and payable in 20 years, with 10 percent of the original principal to be forgiven annually for each additional year beyond the 10th year that the home is owned and continuously occupied by the borrower. Not more than 10 percent of the funds available for the purposes of this chapter in a fiscal year shall be used for financial assistance in the form of secured forgivable loans.
(2) Notwithstanding any other law, the department may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the department’s underwriting requirements. The department may permit subordination on those terms and conditions as it determines are reasonable, however subordination shall not be permitted if the borrower has sufficient equity to repay the loan.
(d) All loan repayments shall be used for activities allowed under this section, and shall be governed by a reuse plan approved by the department. Those reuse plans may provide for loan servicing by the grant recipient or a third-party local government agency or nonprofit corporation.
(e) Notwithstanding subdivision (c), loans provided pursuant to the CalHome Program Disaster Assistance for Imperial County that have been made for the purpose of rehabilitation, reconstruction, or replacement of lower income owner-occupied manufactured homes shall be due and payable in 10 years, with 20 percent of the original principal to be forgiven annually for each additional year beyond the fifth year that the manufactured home is owned and continuously occupied by the borrower.
(f) The department may use funds appropriated pursuant to this chapter to make grants to local agencies or nonprofit corporations to construct accessory dwelling units as defined in Section 65852.2 of the Government Code or junior accessory dwelling units as defined in Section 65852.22 of the Government Code, and to repair, reconstruct, or rehabilitate, in whole or in part, accessory dwelling units and junior accessory dwelling units.
(g) Notwithstanding any other provision of this chapter, the department may use funds appropriated pursuant to this chapter to make grants to local agencies or nonprofit corporations to assist households at or below 120 percent of area median income that are victims of a disaster, if one of the following occurs with respect to the county in which the household’s residence is located:
(1) The Governor has proclaimed a state of emergency, pursuant to Section 8625 of the Government Code, resulting from a disaster, as defined in Section 8680.3 of the Government Code.
(2) A special appropriation of federal emergency supplemental assistance or a presidential declaration of disaster has occurred.
(h) The department shall review, adopt, amend, and repeal guidelines to implement the making of grants pursuant to subdivisions (f) and (g). Any guidelines adopted to implement subdivisions (f) and (g) 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. In the event of inconsistency regarding the requirements of qualified applicants and eligibility of accessory dwelling units and junior accessory dwelling units, and rents associated with them between those guidelines and any regulations otherwise enacted pursuant to this chapter, those guidelines shall prevail.

SEC. 3.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure individuals affected by natural disasters, such as wildfires, have access to housing as soon as possible, it is necessary for this act to take effect immediately.
SECTION 1.Section 181 of the Revenue and Taxation Code is amended to read:
181.

As used in this chapter:

(a)“Eligible county” means a county that meets both of the following requirements:

(1)It has been proclaimed by the Governor to be in a state of disaster as a result of storms and floods occurring during February 1986.

(2)It has adopted an ordinance providing for property reassessment pursuant to Section 170.

(b)“Eligible property” means real property and any manufactured home that has received the homeowners’ exemption or is eligible for the homeowners’ exemption as of March 1, 1986, and that is located in an eligible county.

(c)“Property tax deferral claim” means a claim filed by the owner of eligible property in conjunction with, or in addition to, the filing of an application for reassessment of that property pursuant to Section 170, which enables the owner to defer payment of the April 10, 1986, installment of taxes on property on the regular secured roll for the 1985–86 fiscal year, as provided in Section 185.