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SB-490 Housing acquisition and rehabilitation: technical assistance.(2021-2022)

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Date Published: 02/17/2021 09:00 PM
SB490:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 490


Introduced by Senator Caballero
(Coauthor: Senator Skinner)
(Coauthor: Assembly Member Cristina Garcia)

February 17, 2021


An act to add Chapter 8.4 (commencing with Section 50709) to Part 2 of Division 31 of to the Health and Safety Code, relating to housing, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 490, as introduced, Caballero. Housing acquisition and rehabilitation: technical assistance.
Existing law establishes the Department of Housing and Community Development in the Business, Consumer Services, and Housing Agency, and requires the department to administer various housing programs throughout the state, including the Affordable Housing Revolving Development and Acquisition Program with the purpose of funding the acquisition of property to develop or preserve affordable housing.
This bill would establish the Housing Acquisition and Rehabilitation Technical Assistance Program, with the purpose of providing technical assistance to qualified entities engaged in acquisition-rehabilitation projects. The bill would defined “acquisition-rehabilitation project” as a project to acquire and preserve unsubsidized housing units and attaching long-term affordability restrictions on the housing units. The bill would define “qualified entity” to include an eligible nonprofit corporation, community land trust, public housing authority, a nonprofit, limited-equity, or workforce housing cooperative, a resident association or organization, and a local or regional government agency administering an acquisition-rehabilitation project funding program.
The bill would require the department, in developing and administering the program, to develop best practices for the development and ongoing operation of acquisition-rehabilitation projects, support qualified entities in applying for state acquisition-rehabilitation funding, and develop technical assistance tools. The bill would require the department to contract with third-party consultants to assist with the development, implementation, and administration of the program, as specified.
The bill would create the Housing Acquisition and Rehabilitation Technical Assistance Fund within the State Treasury and would continuously appropriate all moneys in the fund to the department for purposes of developing, implementing, and administering the program. The bill would additionally transfer $800,000 from the General Fund to the fund for the purpose of implementing and administering the program.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 8.4 (commencing with Section 50709) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER  8.4. Housing Acquisition and Rehabilitation Technical Assistance Program

50709.
 This chapter shall be known, and may be cited as, the Housing Acquisition and Rehabilitation Technical Assistance Program.

50709.1.
 For purposes of this chapter:
(a) “Acquisition-rehabilitation project” means a project to acquire and preserve unsubsidized housing units and attaching long-term affordability restrictions on the housing units, while safeguarding against the displacement of current residents.
(b) “Department” means the Department of Housing and Community Development.
(c) “Program” means the Housing Acquisition and Rehabilitation Technical Assistance Program established pursuant to Section 50709.2.
(d) “Qualified entity” means an entity that conducts acquisition-rehabilitation projects including, but not limited to, any of the following:
(1) An eligible nonprofit corporation, including affordable housing developers, community development corporations, and community-based organizations.
(2) Community land trusts, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(3) Public housing authorities.
(4) Nonprofit, limited-equity, or workforce housing cooperatives.
(5) Resident associations or organizations.
(6) Local and regional government agencies administering acquisition-rehabilitation project funding programs.

50709.2.
 (a) (1) The Housing Acquisition and Rehabilitation Technical Assistance Program is hereby established for the purpose of providing technical assistance to qualified entities.
(2) The department shall develop, implement, and administer the program pursuant to this chapter.
(b) The Housing Acquisition and Rehabilitation Technical Assistance Fund is created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the department without regard to fiscal year to develop, implement, and administer the program.

50709.3.
 (a) The department shall develop best practices for the development and ongoing operation of acquisition-rehabilitation projects.
(b) The program shall support qualified entities in navigating the requirements and processes to apply for acquisition-rehabilitation project funding.
(c) The department shall develop technical assistance tools including, but not limited to, all of the following:
(1) Training modules.
(2) Acquisition-rehabilitation specific financing templates and guidance, such as proformas and worksheets.
(3) Best practice guides for engaging tenants before and after property acquisition, managing safe, accessible rehabilitation of occupied buildings, facilitating resident ownership, and any other topic deemed appropriate by the department.
(d) The program shall support collaboration and peer-to-peer learning amongst qualified entities.
(e) The department shall contract with third-party consultants to assist with the development, implementation, and administration of the program. The department shall contract with consultants possessing specific areas of expertise, including, but not limited to:
(1) Resident engagement and education.
(2) Property assessment and due diligence.
(3) Affordable housing operations management.
(4) Acquisition-rehabilitation project financial assistance.
(5) Construction and property management.
(6) A spectrum of ownership and stewardship models, including rental housing, homeownership, community land trusts, limited-equity housing cooperatives, workforce housing cooperative trusts, and nonprofit affordable housing cooperatives.
(7) Capacity and experience in advancing racial equity.

SEC. 2.

 The Legislature hereby transfers eight hundred thousand dollars ($800,000) from the General Fund to the Housing Acquisition and Rehabilitation Technical Assistance Fund for the purpose of implementing and administering the Housing Acquisition and Rehabilitation Technical Assistance Program established pursuant to Chapter 8.4 (commencing with Section 50709) of Part 2 of Division 31 of the Health and Safety Code.