|
Amended
IN
Assembly
February 22, 2024 |
|
Amended
IN
Senate
May 02, 2023 |
| Introduced by Senator Portantino |
February 17, 2023 |
Existing law, the Veterans and Affordable Housing Bond Act of 2018, which was approved by the voters as Proposition 1 at the November 6, 2018, statewide general election, authorizes the issuance of bonds in the amount of $4,000,000,000 pursuant to the State General Obligation Bond Law and requires the proceeds from the sale of these bonds to be used to finance various housing programs and a specified program for farm, home, and mobilehome purchase assistance for veterans, as provided.
This bill would enact the California Family Home Construction and Homeownership Bond Act of 2023 (bond act), which, if adopted, would authorize the issuance of bonds in the amount of $25,000,000,000 pursuant to the State General Obligation Bond Law to finance the California Family Home Construction and Homeownership Program, established as part of the bond act.
The bill would authorize the California Housing Finance Agency to award California Socially Responsible Second Mortgage Loans to eligible applicants to use as a down payment or to pay closing costs on the purchase of a new home. The bill would also authorize the agency to award Family Homeownership Opportunity Infrastructure Improvement Loans to developers to be used for predevelopment infrastructure improvements and other upfront costs typically incurred in connection with new home construction, under specified conditions. The bill would require that moneys received from a loan recipient for the repayment of financing provided under the program be used to pay debt service when due on bonds issued pursuant to the bond act. The bill would also authorize the agency to issue revenue bonds for the purposes of financing the program, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.
This part shall be known, and may be cited, as the California Family Home Construction and Homeownership Bond Act of 2023.
It is the intent of the Legislature in proposing, and the people of California in adopting, the California Family Home Construction and Homeownership Bond Act of 2023 to achieve all of the following objectives:
(a)Expand homeownership in California and provide an economic pathway for first-time home buyers, renters, workers, moderate and low-income families, and middle-class Californians to purchase newly constructed family residences.
(b)Address the state’s housing shortage and historic inequities in homeownership, remove systematic barriers to homeownership, and create equity-building opportunities for Californians who have
been left behind by targeting a portion of funds to expand homeownership in underserved and economically disadvantaged communities.
(c)Stimulate construction of new sustainable housing development in places close to jobs, schools, transit, services, and other daily destinations, and deliver the long-term economic benefits of new homeownership and construction throughout California without imposing additional costs on taxpayers.
(d)Fund a portfolio of down payment mortgage assistance loans made to qualified moderate and low-income home buyers, primarily consisting of California Socially Responsible Second Mortgages, and expand homeownership in underserved, rural, and economically disadvantaged communities.
(e)Generate hundreds of millions in additional annual property tax revenue for local schools, fire and other special districts, cities, and counties without raising taxes.
For purposes of this part:
(a)“Agency” means the California Housing Finance Agency.
(b)“Bond” means a California Homeownership and Family Home Construction bond, a state general obligation bond, issued pursuant to Chapter 3 (commencing with Section 51580).
(c)“Bond act” means Chapter 3 (commencing with Section 51580) authorizing the issuance of state general obligation bonds and adopting the provisions of the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720)).
(d)“Committee”
means the California Family Home Construction and Homeownership Finance Committee created pursuant to Section 51582.
(e)“Family Home Construction Fund” means the California Family Home Construction Fund created pursuant to Section 51556.
(f)“Homeownership fund” means the California Homeownership Fund created pursuant to Section 51556.
(g)“Home” means a parcel of real estate upon which there is a dwelling house not previously owned or occupied other than on a temporary basis.
(h)“Infrastructure loan” means a Family Homeownership Opportunity Infrastructure Improvement Loan originated pursuant to Section 51562.
(i)“Payment fund” means the California Family Home Construction and Homeownership Bond Payment Fund created pursuant to Section 51557.
(j)“Program administrator” means the executive director of the agency.
(k)“Public transit” means a major transit stop as defined in Section 21064.3 of the Public Resources Code, except that it also includes a major transit stop that is included in an applicable regional transportation plan.
(l)“Purchaser” means any person who has entered into a contract of purchase of a home who has received a Second Mortgage Loan through the California Homeownership Lending Fund.
(m)“Qualified homebuilder” means any entity meeting the eligibility requirements for an infrastructure improvement loan issued through the fund.
(n)“Secondary mortgage loan” means a California Socially Responsible Second Mortgage Loan originated pursuant to Section 51561.
(o)“State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720)), as it may be amended from time to time.
This part shall only become operative upon adoption by the voters at the next statewide general election following the effective date of the act adding this section.
There is hereby established the California Family Home Construction and Homeownership Program, which the agency shall implement and administer. In implementing this part, the agency shall adopt rules and regulations approved by the board of directors of the agency and consistent with this part to achieve all of the following:
(a)Establish preferences in providing loans pursuant to this part.
(b)Prescribe and determine the qualifications of applicants under the program, consistent with Sections 51561 and 51562.
(c)Establish an application fee, to be
updated from time to time, which shall not exceed the reasonable amount incurred by the agency to process an application under this part.
(d)Identify Californians who have faced discrimination or otherwise faced difficulty in accessing homeownership. Twenty-five percent of bond funds shall be set aside to assist these individuals in purchasing a home. The agency shall retain authority to divert these funds if there is insufficient demand for these populations.
(e)Report annually to the Legislature on the activities of the agency in implementing the program, including the number of loans made, the characteristics of the borrowers, and the performance of the portfolio of loans, including repayment rates.
(a)The California Homeownership Fund is hereby created in the State Treasury.
(b)The California Family Home Construction Fund is hereby created in the State Treasury.
(c)The proceeds of bonds issued pursuant to this part, except for refunding bonds issued pursuant to Section 51590, shall be deposited in either the Homeownership Fund or Family Home Construction Fund and used to provide financing under the program, consistent with the requirements of this part.
(d)Notwithstanding Section 13340 of the Government Code, moneys in the
Homeownership Fund and Family Home Construction Fund are continuously appropriated to the agency for purposes of the program, as provided in this chapter.
(e)Proceeds of bonds issued and sold pursuant to this part and for the purposes of the program shall be allocated in the following manner:
(1)Up to eighteen billion dollars ($18,000,000,000) to be deposited in the Homeownership Fund to increase home ownership opportunities by providing secondary mortgages to qualified homebuyers, including first-time home buyers, renters, and Californians who have historically faced discrimination in accessing homeownership.
(2)Up to seven billion dollars ($7,000,000,000) to be deposited in the Family Home Construction Fund
for targeted home building infrastructure improvement loans, as defined in Section 51552.
(3)Notwithstanding paragraphs (1) and (2), funds not utilized may be transferred between the California Homeownership Fund and the California Family Home Construction Fund by the program administrator.
(a)The California Family Home Construction and Homeownership Bond Payment Fund is hereby created within the State Treasury as a revolving special fund. Notwithstanding Section 13340 of the Government Code, moneys in the payment fund are continuously appropriated, without regard to fiscal year, to the Treasurer for the sole purpose of paying debt service when due on bonds issued pursuant to Chapter 3 (commencing with Section 51580).
(b)All moneys in the payment fund are necessary for immediate use and shall not be considered “surplus money,” for the purposes of Section 16470 of the Government Code.
(c)Moneys in the payment fund shall be used solely as described in subdivision (a), and therefore the moneys in the payment fund shall not be borrowed by, or transferred to, the General Fund pursuant to subdivision (a) of Section 16310 of the Government Code or any other similar authority, or to the General Cash Revolving Fund pursuant to Section 16381 of the Government Code or any other similar authority.
(d)Moneys in the payment fund may be transferred to an account within the Refunding Escrow Fund created by Section 16784 of the Government Code for the purposes of paying debt service in connection with the refunding of bonds issued pursuant to Section 51590.
(e)Moneys in the payment fund not immediately needed for paying principal and interest on the bonds may
be transferred by the program administrator to the California Homeownership Fund or the California Family Home Construction Fund, provided that an adequate reserve is maintained in the payment fund.
It is the intent of the Legislature in enacting, and the intent of the voters in adopting, this act that the bonds issued pursuant to Chapter 3 (commencing with Section 51580) will be backed by the full faith and credit of the State of California, but will be self-liquidating to the extent repayments of mortgage loans from home loan borrowers and infrastructure loan repayments from qualified homebuilders are sufficient over time to retire the housing bonds in full with an effort to ensure no net cost to the state’s general fund or to taxpayers. The general obligation nature of the bonds will consist of the state providing credit enhancement and liquidity support for the bonds issued to provide initial funding for the California Family Home
Construction Fund and the California Homeownership Fund.
In addition to the bonds issued pursuant to Chapter 3 (commencing with Section 51580), the agency may, from time to time, issue revenue bonds in the principal amount that the agency determines necessary to provide sufficient funds for financing the activities described in Article 2 (commencing with Section 51560), the payment of interest on these bonds, the establishment of reserves to secure the bonds, and the payment of other expenditures of the agency incident to, and necessary or convenient to, issuance of the bonds.
The agency shall administer the loans originated pursuant to this chapter.
(a)Moneys deposited in the Homeownership Fund from the sale of bonds shall fund California Socially Responsible Second Mortgage Loans, which shall provide secondary mortgage loans to eligible applicants to use as a down payment or to pay closing costs on the purchase of a new home.
(b)Secondary mortgage loans shall be made to applicants who satisfy all of the following criteria:
(1)The applicant has an income below 180 percent of the area median income, adjusted for household size and geographic location, published by the Department of Housing and Community Development pursuant to Section 50093.
(2)The applicant shall be the first owner-occupant of the home being financed by the secondary mortgage loan.
(3)The applicant shall agree to pay all principal, interest, and other amounts due with respect to the secondary mortgage loan upon transferring or refinancing the home financed by the secondary mortgage loan, except as otherwise permitted by the program administrator.
(4)An applicant shall be required to complete homeowner education courses and financial counseling before receiving a secondary mortgage loan.
(c)A secondary mortgage loan shall be made to finance property that meets all of the following requirements:
(1)The property is either of the following:
(A)A newly constructed single-family home, townhome, row-house, condo, or manufactured home.
(B)A condominium or other residential unit in a building that satisfies either of the following:
(i)Within the previous five years the unit was a nonresidential structure, and was retrofitted or repurposed for residential use.
(ii)The unit was vacant for the 12 months prior to the applicant’s purchase and was the subject of “rehabilitation expenditures,” as defined under paragraph (2) of subdivision (e) of Section 42 of the federal Internal Revenue Code, amounting to
at least 10 percent of the building’s most recent sale price.
(2)The final sales price of the property does not exceed the median price for newly constructed homes in the state or the county where the property is located, whichever is lower.
(3)The first mortgage debt of the property shall have a term of at least 15 years.
(4)The terms of the financing provide that the applicant will hold the property in fee simple or hold the property through a
long-term ground lease with a right of first refusal to purchase the property.
(5)All contractors and subcontractors performing work on the residential property being financed were or will be required to use a skilled and trained workforce in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(d)The terms and eligibility of secondary mortgage loans including, but not limited to, loan limits, secondary mortgage interest rates, shared equity loan terms, minimum credit scores, and debt-to-income ratios, may be adjusted at the program administrator’s discretion to support the homeownership fund or to satisfy federal standards and requirements established by Fannie Mae, Freddie Mac, or the Federal Housing
Administration.
(e)The program administrator shall establish consumer protection requirements on secondary mortgage loans, which shall include, but not be limited to, limits on interest rates, limits on bank fees, and a prohibition on early payment penalties.
(a)Moneys deposited in the Family Home Construction Fund from the sale of bonds will fund Family Homeownership Opportunity Infrastructure Improvement Loans, which shall provide secured infrastructure loans to qualified homebuilders to be used for predevelopment infrastructure improvements and other upfront costs typically incurred in connection with new home construction.
(b)A project eligible for a loan under subdivision (a) shall satisfy all of the following:
(1)(A)All contractors and subcontractors performing work on the project were or will be required to pay at least the
general prevailing rate of per diem wages for the type of work and
geographic area, as determined by the Director of Industrial Relations under Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(B)All contractors and subcontractors performing work on the project were or will be required to use a skilled and trained workforce in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(C)Workers and their representatives have a practicable means of monitoring and enforcing compliance with the requirements of this paragraph.
(2)The project
will satisfy all state safety, renewable energy, and efficiency standards applicable to the project.
(3)The qualified homebuilder provides a written commitment to the agency demonstrating that a minimum percentage of the homes being constructed, as determined by the program administrator, are expected to be sold on terms that will qualify purchasers to utilize second mortgage loans originated pursuant to Section 51561. The qualified homebuilder shall enter a binding commitment with the agency to work with the program administrator to ensure secondary mortgage loans are made available to eligible purchasers.
(4)The project shall be located within an urbanized area or urban cluster, as defined by the United States Census Bureau, or located within one mile of a public transit, as
defined in Section 51552, or major transit stop.
(c)A residential mixed-use project may be eligible for a loan under subdivision (a) if at least two-thirds of the square footage of the development is designated for residential use.
An applicant applying for a second mortgage loan or an infrastructure loan under the program shall provide the agency with any information, in the form prescribed by the agency, that will enable the agency to determine the applicant’s eligibility and qualifications under this chapter.
The agency may contract with state or federally chartered banks or savings and loan associations and other financial institutions for originating or servicing financing authorized by this chapter.
The Legislature may amend the provisions of this chapter for the purposes of improving the efficiency and effectiveness of the program or to further the goals of the program.
Notwithstanding clauses (i) and (ii) of subparagraph (B) of paragraph (4) of subdivision (a) of Section 65913.4 of the Government Code, a project that complies with the requirements set forth by subdivision (b) of Section 51562 shall be entitled to the streamlined, ministerial approval process established by Section 65913.4 of the Government Code if it satisfies all of the following:
(a)The project satisfies one of the following:
(1)If clause (i) of subparagraph (B) of paragraph (4) of subdivision (a) of Section 65913.4 of the Government Code would apply, the project seeking approval shall dedicate a minimum of 10 percent of
the total number of units to housing affordable, as determined on a debt-to-income ratio basis, to households making below 100 percent of the area median income. The project shall not be required to comply with any local ordinance that requires the project to dedicate more than 10 percent of the units to housing affordable to households making below 100 percent of the area median income, or that would otherwise modify the unit affordability requirements imposed under this clause.
(2)If clause (ii) of subparagraph (B) of paragraph (4) of subdivision (a) of Section 65913.4 of the Government Code would apply, the project seeking approval shall dedicate a minimum of 25 percent of the total number of units to housing affordable, as determined on a debt-to-income ratio basis, to households making below 100 percent of the area median income. The
project shall not be required to comply with any local ordinance that requires the project to dedicate more than 10 percent of the units to housing affordable to households making below 100 percent of the area median income, or that would otherwise modify the unit affordability requirements imposed under this clause.
(b)The project otherwise meets all of the requirements for streamlined, ministerial approval established in Section 65913.4 of the Government Code.
Notwithstanding any other law, a project that meets the requirements of Section 51562 shall be exempt from the California Environmental Quality Act (Chapter 1 of Division 13 (commencing with Section 21000) of the Public Resources Code) if the project is for the construction of new single-family homes and meets all of the following:
(a)The project consists of the division of property in urbanized areas zoned for residential, commercial, or industrial use into 50 or fewer parcels when the division is in conformance with the General Plan and zoning.
(b)No variances or exceptions are required.
(c)All services and access to the proposed parcels to local standards are available.
(d)The parcel does not have an average slope greater than 20 percent.
Notwithstanding any other law, all causes of action seeking damages arising from the latent defects of a project that meet the requirements of Section 51562 shall be subject to Section 337.1 of the Code of Civil Procedure.
The program administrator shall establish enforcement mechanisms, including the imposition of fines and deed restrictions, to ensure that builders of homes receiving infrastructure improvement loans or who make use of any of the benefits described in Sections 51566, 51567, and 51568 comply with all requirements described in Section 51562.
The agency shall set the interest rates and other payment terms on financing provided pursuant to the program at levels necessary, to the greatest extent possible, to pay the interest on the bonds issued pursuant to this part and to defray costs of administration incurred by the agency pursuant to this part.
(a)The principal balance of the loans made pursuant to the program may be amortized over a period fixed by the agency, not exceeding 40 years, together with interest or other consideration for the state thereon at the rate determined pursuant to Section 51570.
(b)The borrower may pay any or all balance still remaining unpaid on any loan payment date.
(c)On a case-by-case basis, the agency may for good cause defer or extend the payment of the whole or any part of any loan payment, upon any terms the agency determines proper.
(d)Each loan
payment shall include an amount sufficient to pay the principal and interest on the financing pursuant to the contract with the agency.
If a borrower indebted to the agency under a contract for financing pursuant to this chapter dies, the borrower’s rights and obligations under a financing contract entered into pursuant to this chapter shall devolve upon the borrower’s heirs, devisees, or personal representatives, subject to all rights, claims, and charges of the agency. If the borrower’s heir, devisee, or personal representative defaults on the financing contract, that default shall have the same effect as would default on the part of the borrower with respect to any right, claim, or charge of the agency.
All moneys received by the agency in receipt of financing provided under this chapter, including, but not limited to, amounts received as loan repayments, loan prepayments, and from the sale or other disposition of loans, shall be deposited in the payment fund and used in accordance with Section 51557.
(a)Bonds in the total amount of twenty-five billion dollars ($25,000,000,000), not including the amount of any refunding bonds issued in accordance with Section 51590, may be issued and sold for the purposes expressed in this chapter and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.
(b)The Treasurer shall issue and sell the bonds authorized in subdivision (a) in the amount determined by the committee to be necessary or desirable pursuant to Section 51583. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731.
(a)The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720)), as amended from time to time, and all of the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter, except that subdivisions (a) and (b) of Section 16727 shall not apply.
(b)For purposes of this chapter, the references to “committee” in the State General Obligation Bond Law shall mean the California Family Home Construction and Homeownership Finance Committee created in
Section 51582, and the references to “board” in the State General Obligation Bond Law shall mean the agency.
(a)Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this chapter, the California Family Home Construction and Homeownership Finance Committee is hereby created.
(b)The committee consists of the Controller, the Treasurer, the Director of Finance, and the executive director of the agency. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present.
(c)The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.
(a)Upon the request of the agency, supported by a statement of its plans and projects approved by the Governor, the committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this chapter in order to carry out the actions specified in this chapter and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.
(b)Whenever the committee deems it necessary for an effective sale of the bonds,
the committee may authorize the Treasurer to sell any issue of bonds at less than their par value, notwithstanding Section 16754 of the Government Code. However, the discount on the bonds shall not exceed 3 percent of the par value thereof.
(a)There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds becoming due each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect this additional sum.
(b)On the dates on which funds are to be remitted pursuant to Section 16676 of the Government Code for the payment of debt service on the bonds issued pursuant to this chapter in each fiscal year,
there shall be transferred from the General Fund to the payment fund that amount, if any, that is necessary in the aggregate with the amount available from the payment fund under Section 51557 to pay the full amount of debt service then due and payable. This subdivision does not grant any lien on, the payment fund, or the moneys therein to the holders of any bonds issued under this article. This subdivision shall not apply in the case of any debt service that is payable from the proceeds of any refunding bonds.
Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this part and without regard to fiscal years, an amount that equals the total of the following:
(a)The sum, if any, that is necessary in the aggregate with the amount available from the payment fund under Section 51557 to annually pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable.
(b)The sum necessary to carry out Section 51587.
The agency may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purpose of carrying out this chapter less any amount withdrawn pursuant to Section 51587 and not yet returned to the General Fund. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this chapter, excluding any refunding bonds authorized pursuant to Section 51590, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 51587 and not yet returned to the General Fund. The board shall
execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter.
For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this chapter, excluding any refunding bonds authorized pursuant to Section 51590, less any amount loaned pursuant to Section 51586 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this
chapter.
(a)As long as any housing bonds authorized under this article are outstanding, the “Program Administrator” shall, at the close of each fiscal year, require a survey of the financial condition of the “Funds,” together with a projection of the “Fund’s” operations, to be made by an independent public accountant of recognized standing. The results of each survey and projection shall be reported in writing by the public accountant to the agency and the appropriate policy committees dealing with housing and consumer finances in the Senate and the Assembly.
(b)The agency shall reimburse the public accountant for these services out of any money that the division may have
available on deposit with the Treasurer.
All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance before any transfer to the General Fund.
The bonds issued and sold pursuant to this chapter may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that
refunded bond.
Notwithstanding any other provision of this chapter, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds or earnings required
or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.
The proceeds from the sale of bonds authorized by this chapter are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
Section 1 of this act shall take effect upon the approval by the voters of the California Family Home Construction and Homeownership Act of 2023, as set forth in Section 1 of this act.
Section 1 of this act shall be submitted to the voters at the next statewide election in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to maximize the time available for the analysis and preparation of the proposed issuance of bonds pursuant to Chapter 3 (commencing with Section 51580) of Part 3.1 of Division 31 of the Health and Safety Code, it is necessary that this act take effect immediately.