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AB-1043 Housing programs: rental housing developments: affordable rent.(2021-2022)

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Date Published: 09/29/2021 02:00 PM
AB1043:v94#DOCUMENT

Assembly Bill No. 1043
CHAPTER 354

An act to amend Section 50053 of, and to add Section 50063.5 to, the Health and Safety Code, relating to housing.

[ Approved by Governor  September 28, 2021. Filed with Secretary of State  September 28, 2021. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1043, Bryan. Housing programs: rental housing developments: affordable rent.
Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act, prohibits “affordable rent” for certain rental housing developments that receive assistance on or after January 1, 1991, from exceeding a specified percentage based on the area median income adjusted for family size and whether the household is an extremely low income household, very low income household, lower income household, or moderate-income household.
This bill, for leases entered into on or after January 1, 2022, would additionally prohibit “affordable rent” for certain rental housing developments that receive assistance from exceeding the product of 30 percent times 15 percent of the area median income adjusted for family size appropriate for the unit if the household is an “acutely low income household,” as defined to mean persons and families whose incomes do not exceed 15 percent of area median income, adjusted for family size, as specified.
By revising the duties of local government officials with respect to administering various programs and requirements that require a determination of “affordable rent,” this 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 50053 of the Health and Safety Code is amended to read:

50053.
 (a)  For any rental housing development that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent” with respect to lower income households shall not exceed the percentage of the gross income of the occupant person or household established by regulation of the department that shall not be less than 15 percent of gross income nor exceed 25 percent of gross income.
(b)  For any rental housing development that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent,” including a reasonable utility allowance, shall not exceed:
(1) (A) For acutely low income households, as defined in Section 50063.5, the product of 30 percent times 15 percent of the area median income adjusted for family size appropriate for the unit.
(B) This paragraph shall apply to a lease entered into on or after January 1, 2022.
(2)  For extremely low income households, the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit.
(3) For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit.
(4) For lower income households whose gross incomes exceed the maximum income for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
(5) For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
(c) The department’s regulation shall permit alternative percentages of income for agency-assisted rental and cooperative housing developments pursuant to regulations adopted under subdivision (f) of Section 50462. The department shall, by regulation, adopt criteria defining and providing for determination of gross income, adjustments for family size appropriate to the unit, and rent for purposes of this section. These regulations may provide alternative criteria, where necessary, to be consistent with pertinent federal statutes and regulations governing federally assisted rental and cooperative housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing developments.
(d) For purposes of this section, “area median income,” “adjustments for family size appropriate to the unit,” and “moderate-income household” shall have the same meaning as provided in Section 50052.5.

SEC. 2.

 Section 50063.5 is added to the Health and Safety Code, to read:

50063.5.
 “Acutely low income households” means persons and families whose incomes do not exceed 15 percent of area median income, adjusted for family size and revised annually. The limits shall be published by the department in the California Code of Regulations for all geographic areas of the state. As used in this section, “area median income” means the median family income of a geographic area of the state.

SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.