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AB-2707 Local government finance: COVID-19 Credit Facility.(2019-2020)

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Date Published: 05/06/2020 09:00 PM
AB2707:v97#DOCUMENT

Amended  IN  Assembly  May 06, 2020
Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2707


Introduced by Assembly Member Holden

February 20, 2020


An act to add Section 16429.5 to the Government Code, and to add Sections 50456.5 and 50504.1 to the Health and Safety Code, relating to housing. 12332.5 to the Government Code, relating to local government, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 2707, as amended, Holden. Affordable housing funding: funding eligibility. Local government finance: COVID-19 Credit Facility.
Existing law prescribes the duties of the Treasurer, which include acting as an elected representative of the state for the purposes of approving the issuance of bonds, notes, or other evidences of indebtedness, issued by or on behalf of the state, to the extent this approval is required by federal tax law. The Municipal Liquidity Facility, created by the Federal Reserve System, is authorized to purchase short-term debt instruments from states, counties with populations of at least 500,000 residents, and cities with populations of at least 250,000 residents, among others. For these purposes, state debt issuers are authorized to use proceeds to support additional counties and cities. Existing law creates the California Debt and Investment Advisory Commission and prescribes its duties, including providing assistance to state or local governmental units, upon request, in the planning, preparation, marketing, and sale of debt issues.
This bill would require the Treasurer to establish the COVID-19 Credit Facility, to support cashflow borrowing by local governments, as specified, to better manage cashflow pressures created by the COVID-19 public health emergency. The bill would require the facility to assist local governments, irrespective of population size, with the purchase of newly-issued tax anticipation notes, tax and revenue anticipation notes, bond anticipation notes, and other short-term notes through the California Debt and Investment Advisory Commission. The bill would also require the facility to establish methods by which cities with populations of less than 250,000 and counties with populations of less than 500,000 may access the Municipal Liquidity Facility established by the Federal Reserve System, as specified. The bill would require the Treasurer to adopt and publish guidelines for these purposes.
This bill would declare that it is to take effect immediately as an urgency statute.

Existing law establishes the Department of Housing and Community Development and sets forth its powers and duties, including, but not limited to, promoting the development of affordable housing in the state.

This bill would require the department and the Treasurer’s office, in coordination with any other state agency that provides funding, grants, or incentives to affordable housing projects, to conduct an analysis of the minimum eligibility requirements for affordable housing funding, grants, and other incentives. The bill would require the department to create a report of the analysis with recommendations for establishing uniform minimum eligibility requirements for affordable housing, and to submit that report to the Senate Housing Committee and the Assembly Housing and Community Development Committee by January 1, 2022.

This bill would require the department to create a portal on its internet website that enables a development proponent of a housing project affordable to persons and families of low or moderate income, as defined, to identify state grants and financial incentives available to the project, as specified. The bill would require the portal to be publically available on the department’s internet website by January 1, 2022.

Existing law establishes the Local Agency Investment Fund and places it, in trust, within the custody of the Treasurer. Existing law authorizes a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, to remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.

This bill would require the Treasurer to develop a report with findings and recommended changes to the Local Agency Investment Fund that would increase city and county use of the fund for affordable housing purposes. The bill would require the Treasurer to submit the report to the Senate Housing Committee and the Assembly Housing and Community Development Committee by January 1, 2022.

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

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


SECTION 1.

 Section 12332.5 is added to the Government Code, to read:

12332.5.
 (a) The Treasurer shall establish the COVID-19 Credit Facility. The credit facility shall support cashflow borrowing by local governments, including cities, counties, and joint powers authorities, to better manage cashflow pressures created by the COVID-19 public health emergency as described in this section.
(b) The COVID-19 Credit Facility shall assist local governments, irrespective of population size, with securing the purchase of newly-issued tax anticipation notes, tax and revenue anticipation notes, bond anticipation notes, and other short-term notes through the California Debt and Investment Advisory Commission.
(c) The COVID-19 Credit Facility shall establish methods by which cities with a population of less than 250,000 and counties with a population of less than 500,000 may access the Municipal Liquidity Facility established by the Federal Reserve System and so make available proceeds from the facility to otherwise ineligible local governments and other political subdivisions through the pooling of debt or by submitting an application on behalf of those entities.
(d) The Treasurer shall adopt and publish guidelines that allow local governments to quickly and easily access services from the COVID-19 Credit Facility.

SEC. 2.

 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 that California local governmental entities may take advantage of the resources of the Municipal Liquidity Facility established by the Federal Reserve System, it is necessary that this bill take immediate effect.
SECTION 1.Section 16429.5 is added to the Government Code, to read:
16429.5.

(a)The Treasurer shall develop a report with findings and recommended changes to the Local Agency Investment Fund that would increase city and county use of the fund for affordable housing purposes.

(b)The Treasurer shall submit the report to the Senate Housing Committee and the Assembly Housing and Community Development Committee by January 1, 2022.

SEC. 2.Section 50456.5 is added to the Health and Safety Code, to read:
50456.5.

(a)The department and the Treasurer’s office, in coordination with any other state agency that provides funding, grants, or incentives to affordable housing projects, shall conduct an analysis of the minimum eligibility requirements for affordable housing funding, grants, and other incentives.

(b)(1)The department shall create a report of the analysis and include in the report recommendations for establishing uniform minimum eligibility requirements for affordable housing funding, grants, and incentives.

(2)The department shall submit the report to the Senate Housing Committee and the Assembly Housing and Community Development Committee by January 1, 2022.

SEC. 3.Section 50504.1 is added to the Health and Safety Code, to read:
50504.1.

(a)The department shall create a portal on its internet website that enables a development proponent of a housing project affordable to persons and families of low or moderate income to identify state grants and financial incentives available to the project. The portal shall enable a development proponent to submit characteristics of the potential project to determine state grant and financial incentive eligibility.

(b)The portal shall provide the deadlines, minimum qualifications, and information regarding the application process for each of the funding sources identified through the portal.

(c)The portal shall be publically available on the department’s internet website by January 1, 2022.

(d)For purposes of this section, “persons and families of low or moderate income” has the same meaning as defined in Section 50093.