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SB-356 Housing: Code Enforcement Incentive Program: Community Code Enforcement Pilot Program.(2023-2024)

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Date Published: 04/24/2023 09:00 PM
SB356:v96#DOCUMENT

Amended  IN  Senate  April 24, 2023
Amended  IN  Senate  April 20, 2023
Amended  IN  Senate  March 14, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 356

Introduced by Senator Archuleta

February 08, 2023

An act to amend Sections 17998.1 and 17998.2 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 356, as amended, Archuleta. Housing: Code Enforcement Incentive Program: Community Code Enforcement Pilot Program.
(1) Existing law establishes the Code Enforcement Incentive Program pursuant to which the Department of Housing and Community Development, upon appropriation by the Legislature, makes funds available as matching grants to cities, counties, and cities and counties that operate local building enforcement programs for more than 3 years, as provided. specified. Existing law requires the recipient city, county, or city and county to provide a cash or in-kind local match of at least 25% in the first year, 50% in the 2nd year, and 75% in the 3rd year, and limits the maximum grant to a single recipient under the program to $1,000,000. Existing law requires grant recipients to submit a report to the department on the expanded code enforcement efforts, among other things. Existing law requires the department to summarize the reports and transmit the reports to the Legislature within 6 months after the grant recipient’s submission date. Existing law requires the department to award grants under the program on a competitive basis, based on criteria weighted for specified applicants, including local government applicants that propose to identify and prosecute owners with habitual, repeated, and multiple code violations that have remained unabated beyond the period required for abatement.
This bill would revise the cash or in-kind local match requirement, described above, to instead require a recipient city, county, or city and county to match at least 35% of the funds awarded over 3 years. The bill would increase the maximum grant to a single recipient under the program from $1,000,000 to $2,000,000, and require the department to adjust that amount for inflation at least once every 5 years. The bill would require the department to transmit the above-described reports as part of the department’s next annual report one year after the grant recipient’s submission date, as specified. The bill would revise the criteria for awarding grants, as specified, including additionally awarding local government applications applicants that propose to prevent displacement of lower income renter or owner households as a result of code enforcement and local government applicants that have employed, or propose to employ by the end of the grant period, a certified code enforcement officer, as defined. The bill would additionally require the department to provide grant recipients technical assistance to assist grant recipients with local code enforcement efforts.
(2) Existing law also establishes the Community Code Enforcement Pilot Program pursuant to which the Department of Housing and Community Development awards grants to communities that develop a code enforcement pilot program meeting specified criteria. Existing law limits the amount of a grant under these provisions to $450,000, to pay for costs incurred over the life of the program. Existing law requires that each city, county, or city and county receiving a grant develop a code enforcement team consisting of, among others, at least one full-time code enforcement officer. Existing law requires each grantee to provide, and fund at its own expense, at least one city planner, health officer, or comparable specialist for the duration of the pilot program, and requires that the grant funds be used for the code enforcement and related program costs or for capital expenditures, as specified. Existing law requires a grant proposal to include, among other things, a plan demonstrating an intent to ensure cooperative and effective working relationships between code enforcement officials and other specified local officials. Existing law requires pilot program administrators to evaluate the pilot programs and submits submit their evaluations to the department within 6 months after completion of each program cycle approved by the department and funded by the Legislature. Existing law requires the department to report to the Legislature on the findings of the pilot program administrators within 6 months after the grant recipient’s submission date.
This bill would increase the maximum grant under the program from $450,000 to $2,000,000, and require the department to adjust that amount for inflation at least once every 5 years. The bill would require that the full-time code enforcement officer on the code enforcement team, as described above, be a certified code enforcement officer, as defined, and that the team additionally include one representative from a community-based organization. The bill would revise the requirement for a grantee to provide and fund a city planner, health officer, or other specialist to specify that the grantee may provide and fund a building official. The bill would also revise the authorized use of grant funds to include support for the engagement of community-based organizations. The bill would revise the requirement for the plan for cooperative and effective working relationships, as described above, to include cooperative and effective working relationships with local building officials and community-based organizations. The bill would also additionally require the grant proposal to include a plan to prevent displacement of lower income renter or owner households as a result of code enforcement and the number of certified code enforcement officers, as defined, employed by the applicant. The bill would change the above-described reporting requirement to instead require the department to report to the Legislature on the above-described findings findings, as part of its next annual report report, one year after the grant recipient’s submission date, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17998.1 of the Health and Safety Code is amended to read:

17998.1.
 The Department of Housing and Community Development, upon appropriation by the Legislature for this purpose, shall make funds available as matching code enforcement incentive grants to cities, counties, and cities and counties to increase staffing or capital expenditures dedicated to local building code enforcement efforts. The funds shall be subject to all of the following provisions:
(a) Code enforcement incentive grants shall be made to grantees that shall operate local building code enforcement programs for more than three years.
(b) The city, county, or city and county shall provide a cash or in-kind local match of at least 35 percent of the funds awarded over three years.
(c) The maximum grant to a single recipient shall not exceed two million dollars ($2,000,000), adjusted for inflation by the department at least once every five years. The department may establish minimum grant levels and lower maximum grant levels, depending on the amount and uses of funding sources.
(d) Funds may be used to supplement, but shall not supplant, existing local funding for code enforcement related to housing code maintenance. The applicants shall demonstrate an intent to ensure cooperative and effective working relationships between code enforcement officials and local prosecutorial agencies, the local health department, and local government housing rehabilitation financing agencies.
(e) Within six months after completion of each program cycle approved by the department and funded by the Legislature, grant recipients shall submit a report to their local legislative bodies and to the department regarding the results of the expanded housing maintenance code enforcement efforts and recommendations for changes in state or local laws and regulations related to code enforcement. The department shall summarize the results and transmit the reports to the Legislature as part of the department’s next annual report required to be submitted to the Legislature pursuant to Section 50408 of the Health and Safety Code one year after the grant recipient’s submission date. The department may require submission of interim progress reports.
(f) The department may use up to 5 percent of the funds appropriated by the Legislature for administering the programs authorized by this chapter.
(g) (1) The department shall award the grants on a competitive basis with criteria to be established and specified in a “Notice of Funding Availability.” The criteria shall be weighted for all of the following:
(A) Local government applicants with neighborhoods populated by high percentages of lower income renter households, and with significant numbers of deteriorating housing stock containing reported or suspected housing code violations.
(B) Local government applicants that propose to identify and prosecute landlords with habitual, repeated, and multiple code violations that have remained unabated beyond the period required for abatement.
(C) Local government applicants that propose to prevent displacement of lower income renter or owner households as a result of code enforcement.
(D) Local government applicants that have employed, or propose to employ by the end of the grant period, a certified code enforcement officer, as defined in subdivision (c) of Section 26206.
(2) In addition to the criteria described in paragraph (1), the department shall attempt to award grants to cities, counties, and cities and counties in order to obtain a wide range of population sizes and compositions and geographical distribution.
(3) Eligibility criteria, applications, awards, and other program requirements implementing this chapter shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(h) The department shall provide technical assistance to grant recipients to assist grant recipients with local code enforcement efforts described in this section.

SEC. 2.

 Section 17998.2 of the Health and Safety Code is amended to read:

17998.2.
 (a) It is the intent of the Legislature in the enactment of this section to do all of the following:
(1) Initiate a coordinated active community approach to code enforcement.
(2) Create a pilot program in which the department awards grants to communities that develop a code enforcement program pursuant to the criteria established by this section.
(3) Substantially reduce the incidence of substandard housing through the use of creative and coordinated techniques of code enforcement involving an interdepartmental approach at the local government level and partnerships with community-based organizations.
(b) The grant program established pursuant to this section shall be known as the Community Code Enforcement Pilot Program. The Department of Housing and Community Development shall administer the Community Code Enforcement Pilot Program.
(1) The department need not adopt regulations for the program. The department shall publish and distribute a Notice of Funding Availability that contains application forms and instructions, eligibility criteria, criteria for the rating and ranking of applications, outcome evaluation criteria, interim or final reporting requirements, and other information that the department considers necessary or useful for implementation of the program.
(2) The department shall review, rate, and rank applications based on its evaluation of the information provided pursuant to subdivision (f) and their projected program performance as measured by all of the following criteria, considering the size of the applicant community:
(A) The minimum number of housing units affordable to lower income households that will be rehabilitated or otherwise brought into compliance with applicable building and housing codes.
(B) The estimated amount of grants and low interest rehabilitation loan funds, from sources other than this program, that will be made available to the owners of housing units affordable to lower income households that are determined to need rehabilitation or repair pursuant to the program.
(C) The incidence of poverty and deteriorating housing or housing code violations in each target area.
(3) In addition to the other criteria in this subdivision, the department shall attempt to award community code enforcement pilot program grants to cities, counties, and cities and counties with a wide range of population sizes and compositions and geographical distribution.
(c) The department shall award community code enforcement pilot program grants for programs that shall operate for more than three years. The grants shall not exceed two million dollars ($2,000,000), adjusted for inflation by the department at least once every five years. The department may establish minimum grant levels and lower maximum grant levels, depending on the amount and uses of funding sources.
(d) Each city, county, or city and county receiving a grant shall develop a code enforcement team consisting of at least all of the following:
(1) One full-time certified code enforcement officer, as defined in subdivision (c) of Section 26206.
(2) One part-time city planner, health officer, building official, or comparable specialist.
(3) One representative from a community-based organization.
(e) Each grantee shall provide, and fund at its own expense, at least one city planner, health officer, building official, or comparable specialist for the duration of the pilot program, for a minimum of 20 hours per week. The grant funds shall be used for the code enforcement officer, related program costs, which may include full-time or part-time personnel, in addition to the grantee’s contributions, or for capital expenditures, and to support the engagement of community-based organizations.
(f) Grant proposals shall include all of the following:
(1) Demonstration of serious, current housing code enforcement deficiencies within each target area, whether those code deficiencies are in violation of locally enacted ordinances or state codes.
(2) A plan to have high visibility of code enforcement staff and to create close and frequent communication and interaction with residents and property owners of the target area, including in the evenings and on weekends.
(3) A plan to convene community meetings to inform residents of the pilot program.
(4) A plan to conduct ongoing frequent informal and formal community meetings with the code enforcement team and residents of the community involved in the pilot program.
(5) A plan demonstrating an intent to ensure cooperative and effective working relationships between code enforcement officials, local health department officials, local prosecutorial agencies, local building officials, officials operating local programs providing public funds to finance affordable rental housing rehabilitation and repairs, and community-based organizations.
(6) A plan to prevent displacement of lower income renter or owner households as a result of code enforcement.
(7) A plan for timely and effective administrative and judicial enforcement of code violations.
(8) The number of certified code enforcement officers, as defined in subdivision (c) of Section 26206, employed by the applicant.
(g) The administrator of each grantee’s pilot program shall evaluate the pilot program and report the findings and other criteria requested by the department indicating the effectiveness of the pilot program to the department within six months after completion of each program cycle approved by the department and funded by the Legislature. The department may require submission of interim progress reports. The administrator shall evaluate the pilot program based on criteria including, but not limited to, the following:
(1) Results of a participant survey, including owners, residents, and active community leaders.
(2) Comparison of each targeted area with similar neighborhoods with respect to repeat calls for service and other criteria testing the effectiveness of the pilot program.
(3) The extent of any perceived or actual property value change between the commencement and the completion of the pilot program.
(4) The number of cases opened and the number of cases closed, identifying the nature of code violations, the necessity of formal proceedings, the cost and nature of abatement violations, or other factors influencing the effectiveness of the pilot program.
(h) The department shall review and report to the Legislature on the findings of the pilot program administrators, as part of its next annual report required to be submitted to the Legislature pursuant to Section 50408 of the Health and Safety Code Code, one year after the grant recipient’s submission date.