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AB-482 Housing authorities: City of San Diego, County of San Bernardino, and County of Santa Clara: middle-income housing projects pilot program.(2021-2022)

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Date Published: 06/14/2022 09:00 PM
AB482:v97#DOCUMENT

Amended  IN  Senate  June 14, 2022
Amended  IN  Assembly  March 17, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 482

Introduced by Assembly Member Ward

February 08, 2021

An act to amend Sections 34340 and 34341 add and repeal Article 4.5 (commencing with Section 34340) of Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 482, as amended, Ward. Housing authorities: City of San Diego, County of San Bernardino, and County of Santa Clara: middle-income housing projects pilot program.
Existing law, the Housing Authorities Law, authorizes a housing authority of a city or county to, among other things, prepare, carry out, acquire, lease, and operate housing projects and housing developments for persons of low income, as provided. Existing Previously existing law, until January 1, 2022, authorizes authorized a housing authority located in the City of San Diego, the County of San Bernardino, or the County of Santa Clara to implement a pilot program to develop and finance a middle-income housing project, as defined, if the project receives received gap financing, as defined. Existing Previously existing law requires required any gap financing to be approved by the housing authority’s legislative body, as provided. Existing Previously existing law requires required the housing authority to provide a report to the Legislature, as specified, on and before January 1, 2020, and on or before January 1, 2022.
This bill would extend the authority of reenact the above-described authorization for a housing authority located in the City of San Diego, the County of San Bernardino, or the County of Santa Clara to implement the above-described a pilot program from January 1, 2022, to January 1, 2026. to develop and finance a middle-income housing project, as provided. The bill would extend the requirement for require the housing authority to provide a report to the Legislature by requiring the housing authority to provide a report Legislature, as specified, on or before January 1, 2024, and every 2 years after providing the first report, starting with January 1, 2022. thereafter. The bill would repeal these provisions as of January 1, 2027.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Diego, the County of San Bernardino, or the County of Santa Clara.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.Section 34340 of the Health and Safety Code is amended to read:
34340.

(a)A housing authority located in the City of San Diego, the County of San Bernardino, or the County of Santa Clara may implement a pilot program to develop and finance a middle-income housing project as follows:

(1)Middle-income housing projects may receive gap financing from funds received pursuant to Section 34315.3.

(2)Financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to provide gap financing to units that will be occupied at or above market-rate rents.

(3)Any gap financing for middle-income housing projects shall first be approved by the housing authority’s legislative body by resolution after a public hearing. Notice of the time and place of the hearing shall be published in a newspaper of general circulation in the community at least once per week for at least two successive weeks, as specified in Section 6066 of the Government Code, prior to the hearing.

(4)The resolution approving the gap financing agreement shall contain a finding that gap financing will provide housing for low- and middle-income persons and is consistent with this section.

(5)(A)On or before January 1, 2020, and on or before the first of January every two years thereafter starting with January 1, 2022, the housing authority shall provide a report to the Legislature that contains the following information for each calendar year during which the housing authority implemented a pilot program pursuant to this section:

(i)The number of units produced using gap financing.

(ii)The amount of gap financing per regulated unit.

(iii)The levels of affordability of those units produced using gap financing.

(iv)The term of affordability for those units produced using gap financing.

(B)A report submitted to the Legislature pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.

(b)For the purposes of this article, the following terms have the following meanings:

(1)“Middle-income housing project” means a housing project that includes at least 40 percent of units, excluding units available for managers, that are affordable to and will be occupied by persons of low income, as well as at least 10 percent of units that are affordable to and will be occupied by persons and families of middle income.

(2)“Persons of low income” has the same meaning as in Section 34213.

(3)“Persons and families of middle income” has the same meaning as in Section 65008 of the Government Code.

(4)“Gap financing” means a loan from a housing authority to fund the remaining cost of development of a middle-income housing project after other funds have been secured, including, but not limited to, bond funds, tax credits, conventional loans, or other private and public funds.

(c)Nothing in this section shall be construed to change current law regarding housing authority bond authority pursuant to this part or low-income housing tax credits, as described by Section 42(g) of the Internal Revenue Code.

(d)This article does not require a housing authority in the City of San Diego, the County of San Bernardino, or the County of Santa Clara to implement the pilot program described by this section.

SEC. 2.Section 34341 of the Health and Safety Code is amended to read:
34341.

This article shall remain in effect only until January 1, 2026, and as of that date is repealed.

SECTION 1.

 Article 4.5 (commencing with Section 34340) is added to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code, to read:
Article  4.5. Middle-Income Housing Projects

34340.
 (a) A housing authority located in the City of San Diego, the County of San Bernardino, or the County of Santa Clara may implement a pilot program to develop and finance a middle-income housing project as follows:
(1) Middle-income housing projects may receive gap financing from funds received pursuant to Section 34315.3.
(2) Financial or other assistance received from any public source pursuant to Section 34315.3 shall not be used to provide gap financing to units that will be occupied at or above market rate rents.
(3) Any gap financing for middle-income housing projects shall first be approved by the housing authority’s legislative body by resolution after a public hearing. Notice of the time and place of the hearing shall be published in a newspaper of general circulation in the community at least once per week for at least two successive weeks, as specified in Section 6066 of the Government Code, prior to the hearing.
(4) The resolution approving the gap financing agreement shall contain a finding that gap financing will provide housing for low- and middle-income persons and is consistent with this section.
(5) (A) On or before January 1, 2024, and on or before January 1 every two years thereafter starting with January 1, 2026, the housing authority shall provide a report to the Legislature that contains the following information for each calendar year during which the housing authority implemented a pilot program pursuant to this section:
(i) The number of units produced using gap financing.
(ii) The amount of gap financing per regulated unit.
(iii) The levels of affordability of those units produced using gap financing.
(iv) The term of affordability for those units produced using gap financing.
(B) A report submitted to the Legislature pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
(b) For the purposes of this article, the following terms have the following meanings:
(1) “Middle-income housing project” means a housing project that includes at least 40 percent of units, excluding units available for managers, that are affordable to and will be occupied by persons of low income, as well as at least 10 percent of units that are affordable to and will be occupied by persons and families of middle income.
(2) “Persons of low income” has the same meaning as in Section 34213.
(3) “Persons and families of middle income” has the same meaning as in Section 65008 of the Government Code.
(4) “Gap financing” means a loan from a housing authority to fund the remaining cost of development of a middle-income housing project after other funds have been secured, including, but not limited to, bond funds, tax credits, conventional loans, or other private and public funds.
(c) Nothing in this section shall be construed to change current law regarding housing authority bond authority pursuant to this part or low-income housing tax credits, as described by Section 42(g) of the Internal Revenue Code.
(d) This article does not require a housing authority in the City of San Diego, the County of San Bernardino, or the County of Santa Clara to implement the pilot program described by this section.

34341.
 This article shall remain in effect only until January 1, 2027, and as of that date is repealed.

SEC. 3.SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs of the City of San Diego, the County of San Bernardino, or the County of Santa Clara to develop and finance middle-income housing projects.