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SB-795 Economic development: housing: workforce development: climate change infrastructure.(2019-2020)

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Date Published: 05/06/2020 02:00 PM
SB795:v97#DOCUMENT

Amended  IN  Senate  May 06, 2020
Amended  IN  Senate  April 02, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 795


Introduced by Senators Beall, McGuire, and Portantino
(Principal coauthor: Senator Roth)
(Principal coauthor: Assembly Member Mullin)
(Coauthors: Senators Bradford, Caballero, Dodd, Hueso, Stern, Wieckowski, and Wiener)
(Coauthors: Assembly Members Gloria, Kalra, and Low)

January 06, 2020


An act to add Section 41202.6 to the Education Code, to add Part 4 (commencing with Section 55900) to Division 2 of Title 5 of, and to add Division 6 (commencing with Section 62300) to Title 6 of, the Government Code, and to add Section 97.68.1 to the Revenue and Taxation Code, relating to local government finance. 50220.5 to the Health and Safety Code, relating to economic development, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 795, as amended, Beall. Affordable Housing and Community Development Investment Program. Economic development: housing: workforce development: climate change infrastructure.
Existing law establishes various housing programs administered by the Department of Housing and Community Development, including the Multifamily Housing Program, pursuant to which the department 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 also establishes the Homeless Housing, Assistance, and Prevention program, administered by the Business, Consumer Services, and Housing Agency, for the purpose of providing jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as provided.
Existing law requires that the California Workforce Development Board and each local workforce development board ensure that programs and services funded by the federal Workforce Innovation and Opportunity Act of 2014 and directed to apprenticeable occupations are conducted in coordination with apprenticeship programs approved by the Division of Apprenticeship Standards, as specified.
Existing law establishes the Governor’s Office of Business and Economic Development, known as “GO-Biz,” within the Governor’s office to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.
This bill would continuously appropriate the sum of $10,000,000,000 from the General Fund for expenditure over the 2020–21 fiscal year and each of the 4 following fiscal years. Of that amount, the bill would require the Controller to allocate for each of those fiscal years $1,805,000,000 among various housing programs administered by the Department of Housing and Community Development, the Homeless Housing, Assistance, and Prevention program, and for distribution by the California Workforce Development Board among local agencies to participate in, invest in, or partner with new or existing preapprenticeship training programs established as described above. The bill would require the Business, Consumer Services, and Housing Agency to establish deadlines for applications and submitting final reports under the Homeless Housing, Assistance, and Prevention program with respect to moneys allocated to that program under the bill.
The bill would require the Controller for each of those 5 fiscal years to allocate $195,000,000 to GO-Biz, to be used for the the Climate, Sea Level, and Natural Disaster Program and the Community Economic Development Program, both of which the bill would establish in GO-Biz. The bill would require GO-Biz to allocate $100,000,000 under the Climate, Sea Level, and Natural Disaster Program among specified eligible entities for the purpose of protecting communities dealing with the effects of climate change, as specified. The bill would require GO-Biz to allocate $95,000,000 under the Community Economic Development Program among these specified eligible entities for various purposes relating to community development. The bill would require eligible applicants to comply with specified requirements, including submitting plans for outreach to, and retention of, women, minority, disadvantaged youth, formerly incarcerated, and other underrepresented subgroups and, subject to certain exceptions, certifying that a skilled and trained workforce, as defined, will be used to complete any project funded under those programs.
By requiring the certification of certain information, thereby expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, subject to certain modifications. Existing law requires an annual reallocation of property tax revenue from local agencies in each county to the Educational Revenue Augmentation Fund (ERAF) in that county for allocation to specified educational entities.

Existing law authorizes certain local agencies to form an enhanced infrastructure financing district, affordable housing authority, transit village development district, or community revitalization and investment authority for purposes of, among other things, infrastructure, affordable housing, and economic revitalization.

This bill would establish in state government the Affordable Housing and Community Development Investment Program, which would be administered by the Affordable Housing and Community Development Investment Committee. The bill would authorize a city, county, city and county, joint powers agency, enhanced infrastructure financing district, affordable housing authority, community revitalization and investment authority, transit village development district, or a combination of those entities, to apply to the Affordable Housing and Community Development Investment Committee to participate in the program and would authorize the committee to approve or deny plans for projects meeting specific criteria. The bill would also authorize certain local agencies to establish an affordable housing and community development investment agency and authorize an agency to apply for funding under the program and issue bonds, as provided, to carry out a project under the program. Among other things, the bill would require that an applicant certify that a skilled and trained workforce, as defined, will be used to complete the project if the plan is approved, except as specified. The bill would also require the Department of Housing and Community Development to certify to the committee whether the housing element of the applicant, if applicable, is in substantial compliance with specified law and whether any rezoning of sites required by law have been completed. By requiring the applicant and the department to make these certifications, the bill would expand the scope of the crime of perjury.

The bill would require the Affordable Housing and Community Development Investment Committee to adopt guidelines for plans. Subject to the Legislature enacting a budget bill for the applicable fiscal year that specifies the amount for the committee to allocate pursuant to the program, the bill would require the committee to approve no more than $200,000,000 per year from July 1, 2022, to June 30, 2027, and $250,000,000 per year from July 1, 2027, to June 30, 2031, in transfers from a county’s ERAF for applicants for plans approved pursuant to this program. The bill would provide that eligible projects include, among other things, the predevelopment, development, acquisition, rehabilitation, and preservation of workforce, student, and affordable housing, certain transit-oriented development, and projects promoting strong neighborhoods.

The bill would require the Affordable Housing and Community Development Investment Committee, upon approval of a plan and subject to specified conditions, to issue an order directing the county auditor to transfer an amount of ad valorem property tax revenue that is equal to the affordable housing and community development investment amount approved by the committee, except as provided, from the county’s ERAF. The bill would require the county auditor to either deposit that amount into the Affordable Housing and Community Development Investment Fund, which this bill would create in the treasury of each county, or, if the applicant is a specified type of authority or special district to transfer to the city or county that created the authority or district an amount of property tax revenue equal to the amount approved by the Affordable Housing and Community Development Investment Committee for that authority or district. The bill would require the city or county that created the district to, upon receipt, transfer those funds to the authority or district in an amount equal to the affordable housing and community development investment amount for that authority or district. The bill would authorize applicants to use approved amounts to incur debt or issue bonds or other financing to support an approved project.

The bill also would require each applicant that has received funding to submit annual reports, as specified, and would require the Affordable Housing and Community Development Investment Committee to provide a report to the Joint Legislative Budget Committee, if it approves funding under the program, that includes certain project information.

Section 8 of Article XVI of the California Constitution sets forth a formula for computing the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts for each fiscal year.

This bill would require the Director of Finance to adjust the percentage of General Fund revenues appropriated for school districts and community college districts for these purposes in a manner that ensures that the transfers from a county’s ERAF pursuant to the Affordable Housing and Community Development Investment Program have no net fiscal impact upon the total amount of the General Fund revenue and local property tax revenue allocated to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, as specified.

By imposing new duties on local officials with respect to transferring funds from a country’s ERAF, and by expanding the scope of the crime of perjury by requiring the certification of certain information, the bill would impose a state-mandated local program

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares the following:
(a) These unprecedented times call for action to help protect our most vulnerable Californians. Keeping people in their homes and building more affordable housing must be at the top of our priority list.
(b) COVID-19 illuminates what we already knew, that California’s housing crisis is staggering. There are 2,200,000 extremely low income and very low income renter households competing for only 664,000 affordable rental homes. This means more than 1,540,000 of California’s lowest income households are without access to housing. With unemployment rates skyrocketing, more and more Californians are facing housing insecurity. While rent moratoriums provide a short-term reprieve, once they are lifted an even greater number of families will be pushed into homelessness.
(c) Despite significant multibillion-dollar, one-time investments as well as the establishment of penalties for negligent cities, California’s homeless population rose again last year. Further, recent reports indicate housing production is slowing and we are falling even further behind annual production goals. What has been missing from these efforts is a sustainable state commitment to quickly build affordable housing units to keep up with demand.
(d) It is the intent of the Legislature that this act create a sustainable state funding source, with the sole purpose of tackling the homeless and affordable housing crisis. The Legislature further intends to provide investment in existing programs, including emergency housing programs, to quickly get local governments the funding they need to address and prevent homelessness and jumpstart the construction of affordable housing.
(e) Although a long-term investment in housing is difficult in today’s fiscal climate, we cannot continue to operate business as usual. It is therefore the intent of the Legislature to invest in existing programs, including emergency housing programs, to quickly get local governments the funding they need to address and prevent homelessness and jumpstart the construction of affordable housing and related infrastructure. These strategic investments will allow cities to promote needed infrastructure and community improvements, and help communities prepare and adapt to the impacts of climate change. Furthermore, the state must make smart investments that help stimulate and boost our economy and get people back to work. By investing in the production of affordable housing, it is the intent of the Legislature to provide high-skilled job opportunities that provide livable wages.
(f) It is the intent of the Legislature that the funding appropriated by this act be allocated for the following purposes:
(1) Homelessness services.
(2) Housing production grants.
(3) Economic development and climate resiliency programs.

SEC. 2.

 Section 50220.5 is added to the Health and Safety Code, to read:

50220.5.
 (a) Notwithstanding Section 50220, the agency shall establish one or more deadlines to make award determinations for program allocations in accordance with this chapter with moneys appropriated for purposes of this chapter by the act adding this section.
(b) Notwithstanding subdivision (b) of Section 50221, the agency shall establish deadlines for each applicant that receives a program application from moneys made available by the act adding this section to submit to the agency a final report in a format provided by the agency, as well as uses of all program funds received out of those moneys.

SEC. 3.

 Notwithstanding Section 13340 of the Government Code, the sum of ten billion dollars ($10,000,000,000) is hereby continuously appropriated, without regard to fiscal years, from the General Fund, to be expended over the 2020–21 fiscal year and each of the four subsequent fiscal years, for the purpose of providing emergency economic recovery and development and climate disaster and response, to be used as provided in Sections 4 and 5 of this act.

SEC. 4.

 (a) Of the amount appropriated in Section 3 of this act, the Controller shall allocate and deposit one billion eight hundred five million dollars ($1,805,000,000) in each fiscal year described in Section 3 of this act in the following manner:
(1) Five hundred million dollars ($500,000,000) to be deposited in the Housing Rehabilitation Loan Fund established pursuant to Section 50661 of the Health and Safety Code and used for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2) Three hundred million dollars ($300,000,000) to be allocated to the Department of Housing and Community Development and used for the Infill Incentive Grant Program of 2007 established by Section 53545.13 of the Health and Safety Code.
(3) Two hundred million dollars ($200,000,000) to be deposited in the Affordable Housing Innovation Fund established pursuant to subparagraph (F) of paragraph (1) of subdivision (a) of Section 53545 and used, without further appropriation by the Legislature, for the Local Housing Trust Fund Matching Grant Program in accordance with Chapter 13 (commencing with Section 50842.1) of Part 2 of Division 31 of the Health and Safety Code.
(4) Seventy-five million dollars ($75,000,000) to be deposited in the Self-Help Housing Fund established pursuant to Section 50697.1 of the Health and Safety Code and used for the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the Health and Safety Code).
(5) Seventy-five million dollars ($75,000,000) to be deposited in the Joe Serna, Jr. Farmworker Housing Grant Fund established pursuant to subdivision (b) of Section 50517.5 of the Health and Safety Code and used for the Joe Serna, Jr. Farmworker Housing Grant Program in accordance with Chapter 3.2 (commencing with Section 50517.2) of Part 2 of Division 31 of the Health and Safety Code.
(6) Six hundred fifty million dollars ($650,000,000) to be allocated to the Business, Consumer Services, and Housing Agency and used for the Homeless Housing, Assistance, and Prevention program in accordance with Chapter 6 (commencing with Section 50216) of Part 1 of Division 31 of the Health and Safety Code.
(7) Five million dollars ($5,000,000) to be allocated to the California Workforce Development Board for distribution to local agencies to participate in, invest in, or partner with new or existing preapprenticeship training programs established pursuant to subdivision (e) of Section 14230 of the Unemployment Insurance Code.
(b) Projects funded under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), the Infill Incentive Grant Program of 2007 (Section 53545.13 of the Health and Safety Code), or the Local Housing Trust Fund Matching Grant Program (Chapter 13 (commencing with Section 50842.1) of Part 2 of Division 31 of the Health and Safety Code) shall be deemed to be public works in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

SEC. 5.

 (a) Of the amount appropriated in Section 3 of this act, the Controller shall allocate one hundred ninety-five million dollars ($195,000,000) in each fiscal year described in Section 3 of this act to the Governor’s Office of Business and Economic Development, hereinafter referred to as “the office,” to be used as follows:
(1) (A) One hundred million dollars ($100,000,000) for the Climate, Sea Level, and Natural Disaster Program, which is hereby established within the office. Subject to the requirements of this section, the office shall award moneys under the program to eligible entities described in subdivision (c) for the purpose of protecting communities dealing with the effects of climate change, including, but not limited to, sea level rise, wildfires, and flood protection.
(B) Recipients may use moneys allocated under this subparagraph to finance projects for the construction, repair, replacement, and maintenance of infrastructure, including natural infrastructure, relating to protecting communities from the effects of climate change.
(2) Ninety-five million dollars ($95,000,000) for the Community Economic Development Program, which is hereby established within the office. Subject to the requirements of this section, the office shall award moneys under the program to eligible entities described in subdivision (c) for the following purposes:
(A) Promoting strong neighborhoods through support of local community planning and engagement efforts to revitalize and restore neighborhoods, including repairing infrastructure and parks, and rehabilitating and building housing and public facilities.
(B) Converting vacant and underutilized commercial property into housing affordable to families earning less than 120 percent of the area median income, determined in accordance with Section 50093 of the Health and Safety Code.
(C) Developing on-campus or off-campus housing for students, faculty, and school employees of a campus of the University of California, California State University, or California Community Colleges.
(D) Promoting public-private partnerships.
(E) Supporting small businesses and job growth for affected residents.
(b) Consistent with the requirements of this section, the office shall adopt guidelines for the the allocation and use of moneys allocated pursuant to this section in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(c) Subject to subdivision (d), the following entities shall be eligible to apply for funding under the programs described in subdivision (a):
(1) A city, county, or city and county.
(2) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is composed of entities that may submit a plan pursuant to this subdivision.
(3) An enhanced infrastructure financing district established pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of the Government Code.
(4) An affordable housing authority established pursuant to Division 5 (commencing with Section 62250) of Title 6 of the Government Code.
(5) A community revitalization and investment authority established pursuant to Division 4 (commencing with Section 62000) of Title 6 of the Government Code.
(6) A transit village development district established pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7 of the Government Code.
(7) The University of California, the California State University, or the California Community Colleges.
(d) (1) In order to be eligible to receive funding under the programs described in subdivision (a), an applicant shall comply with all of the following requirements:
(A) If applicable, the applicant has a housing element that the Department of Housing and Community Development has determined to be in substantial compliance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, pursuant to Section 65585 of the Government Code.
(B) If applicable, the applicant has not been found to have violated the Housing Accountability Act (Section 65589.5 of the Government Code) within the past five years, or on or after January 1, 2021, whichever is more recent.
(C) The applicant has not taken any of the actions described in paragraph (2).
(2) An entity described in subdivision (c) shall not be eligible for funding under the programs described in subdivision (a) if the applicant has taken any action, whether by the legislative body of the applicant or the electorate exercising its local initiative or referendum power, that has any of the following effects:
(A) Established or implemented any provision that:
(i) Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the applicant.
(ii) Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii) Limits the population of the applicant.
(B) Imposes a moratorium or enforces an existing moratorium on housing development, including mixed-use development, within all or a portion of the jurisdiction of the applicant, except pursuant to a zoning ordinance that complies with the requirements of Section 65858 of the Government Code.
(C) Requires voter approval of any updates to the applicant’s housing element to comply with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, or any rezoning of sites or general plan amendment to comply with an updated housing element or Section 65863 of the Government Code.
(D) Changes the zoning of a parcel or parcels of property to a less intensive use or reduces the intensity of land use within an existing zoning district below what was allowed under the general plan land use designation and zoning ordinances of the applicant in effect on January 1, 2018. For purposes of this subparagraph, “less intensive use” includes, but is not limited to, reductions to height, density, floor area ratio, or new or increased open space or lot size requirements, for property zoned for residential use in the applicant’s general plan or other planning document.
(e) An applicant for funding under the programs described in subdivision (a) shall submit to the office a plan for outreach to, and retention of, women, minority, disadvantaged youth, formerly incarcerated, and other underrepresented subgroups in coordination with the California Workforce Investment Board and local boards, to increase their representation and employment opportunities in the building and construction trades.
(f) (1) Except as provided in paragraph (3), an applicant for funding under the programs described in subdivision (a) shall certify that a skilled and trained workforce will be used to complete any project funded under those programs.
(2) If the applicant has certified that a skilled and trained workforce will be used to complete the project or projects and the application is approved, the following shall apply:
(A) The applicant shall require every contractor and subcontractor at every tier performing work on a project to provide the applicant with an enforceable commitment that the contractor or subcontractor will individually use a skilled and trained workforce to complete the project.
(B) Every contractor and subcontractor shall individually use a skilled and trained workforce to complete the project.
(C) The applicant shall be considered an awarding body for purposes of Section 2602 of the Public Contract Code.
(3) This subdivision shall not apply to a housing project that meets any of the following criteria:
(A) One hundred percent of the housing project’s units, exclusive of any legally required manager’s unit or units, are affordable to households earning 80 percent or below of the area median income, determined in accordance with Section 50093 of the Health and Safety Code.
(B) The housing project consists of 25 units or less.
(C) The housing project is located in a county with a population of 100,000 or less.
(D) With respect to the Community Economic Development Program described in paragraph (2) of subdivision (a) only, the housing project is for student or faculty housing.
(4) For purposes of this subdivision, “skilled and trained workforce” has the same meaning as set forth in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(g) A project funded pursuant to either of the programs described in subdivision (a) shall be considered a public work and subject to the requirements of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code, regardless of whether an exemption under Section 1720 of the Labor Code applies to the project.

SEC. 6.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.