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SB-20 Joint powers agreements: regional housing trusts.(2023-2024)

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Date Published: 09/01/2023 09:00 PM
SB20:v95#DOCUMENT

Senate Bill No. 20
CHAPTER 147

An act to add Section 6539.1 to the Government Code, relating to joint powers.

[ Approved by Governor  September 01, 2023. Filed with Secretary of State  September 01, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 20, Rubio. Joint powers agreements: regional housing trusts.
The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed. That act specifically authorizes the creation of the Orange County Housing Finance Trust and the San Gabriel Valley Regional Housing Trust, both joint powers authorities, for the purpose of funding housing to assist the homeless population and persons and families of extremely low, very low, and low income within their respective regions, as specified.
This bill would authorize 2 or more local agencies, as defined, to create a regional housing trust for the purpose of funding housing to assist the homeless population and persons and families of extremely low, very low, and low income within their jurisdictions by entering into a joint powers agreement pursuant to the Joint Exercise of Powers Act. The bill would also authorize a federally recognized tribal government to enter into the joint powers agreement. The bill would require a regional housing trust created pursuant to these provisions to be governed by a board of directors consisting of a minimum of 5 directors, as specified. The bill would authorize a regional housing trust to fund the planning, construction, and acquisition of housing, receive public and private financing and funds, and authorize and issue bonds, as specified. The bill would require the joint powers agreement establishing the regional housing trust to incorporate specified annual financial reporting and auditing requirements.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California has an affordable housing crisis in communities and regions across the state due to the high cost of housing, even in formerly affordable communities.
(b) The establishment of a regional housing trust to receive available public and private funds is a proven solution to help finance affordable housing projects for homeless and low-income populations.
(c) For example, the San Gabriel Valley Regional Housing Trust was created by Senate Bill 751 (Chapter 670 of the Statutes of 2019) and in just a few years, 22 cities have joined together to achieve meaningful progress in financing affordable housing projects. These successes include opening three tiny home bridge housing sites that provide over 100 beds to individuals and families experiencing homelessness in the San Gabriel Valley, and providing funding for 10 shovel-ready affordable housing projects that create over 550 affordable housing units in multiple cities.
(d) In recent years, many different communities around California have supported legislation to form their own regional housing trusts.
(e) The establishment of statewide standards for regional housing trusts can provide local communities with the clarity and guidance necessary to form their own regional housing trusts without further special legislation, allowing them to address any local affordable housing crisis as quickly as possible.

SEC. 2.

 Section 6539.1 is added to the Government Code, to read:

6539.1.
 (a) (1) Notwithstanding any other law, two or more local agencies may enter into a joint powers agreement pursuant to this chapter to create and operate a regional housing trust to fund housing to assist the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, within their jurisdictions.
(2) A federally recognized tribal government may also enter into the joint powers agreement described in paragraph (1). If a tribal government enters into the joint powers agreement, the tribal government shall designate one of its members to join the board of directors described in subdivision (b). The tribal government shall determine how this member is selected.
(b) (1) A regional housing trust created pursuant to this section shall be governed by a board of directors consisting of a minimum of five directors.
(2) At least three members of the board of directors shall be elected members from a local agency that is a party to the joint powers agreement. The local agencies that are party to the joint powers agreement shall determine how these members are selected.
(3) At least two additional board members shall be experts in homeless or housing policy that are not elected officials of a local agency. The board members appointed pursuant to this paragraph shall be selected by a majority vote of the other members of the board of directors.
(4) Any additional members of the board of directors shall meet the requirements of either paragraph (2), paragraph (3), or paragraph (2) of subdivision (a), provided that at least a majority of the board of directors remains elected officials from the local agencies that are a party to the joint powers agreement.
(5) The board of directors shall elect a chairperson and a vice chairperson from among its members at the first meeting held in each calendar year.
(6) Members of the board of directors shall serve without compensation. Members of the board of directors may be reimbursed for actual expenses that are approved before they are incurred.
(7) A member of the board of directors shall serve a term of two years. If a vacancy occurs on the board of directors, the remaining members of the board of directors shall make an appointment to fill that vacancy that shall be effective only for the remainder of the term of the office that became vacated.
(c) Notwithstanding any other law, a regional housing trust created pursuant to this section may do any of the following:
(1) Fund any of the following:
(A) The planning and construction of housing of all types and tenures for the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing.
(B) The acquisition of housing of five or more units for the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing.
(C) The acquisition of housing of any number of units for the purpose of assisting a nonprofit corporation described in subdivision (a) of Section 214.15 of the Revenue and Taxation Code.
(2) Receive public and private financing and funds.
(3) Authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received pursuant to paragraph (2) and pledged by the regional housing trust.
(d) A regional housing trust created pursuant to this section shall incorporate into its joint powers agreement annual financial reporting and auditing requirements that shall maximize transparency and public information as to the receipt and use of funds by the agency. The annual financial report shall show how the funds have furthered the purposes of the regional housing trust.
(e) A regional housing trust created pursuant to this section shall comply with the regulatory guidelines of each specific state funding source received.
(f) Nothing in this section shall prohibit a local agency from requesting a special statute that provides exemptions from the requirements of this section if it believes that unique local circumstances exist.
(g) For purposes of this section, “local agency” means a city, county, or council of governments.