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AB-1462 Affordable housing: grant programs: progress payments.(2021-2022)



Current Version: 02/19/21 - Introduced

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AB1462:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1462

Introduced by Assembly Member Fong

February 19, 2021

An act to add Section 50406.4 to the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1462, as introduced, Fong. Affordable housing: grant programs: progress payments.
Existing law establishes various housing programs administered by the Department of Housing and Community Development, including, among others, the CalHome Program to enable low- and very low income households to become or remain homeowners and the California Emergency Solutions Grants Program the purpose of addressing the crisis of homelessness in California.
This bill would require the department to establish and administer a progress payment option for grants distributed pursuant to any program administered by the department that relates to the development of affordable housing, including, among other, the CalHome Program and the California Emergency Solutions Grants Program described above. The bill would authorize a grant award recipient of a program subject to these provisions to, upon request, receive the award pursuant to that progress payment option. The bill would require the department to require a grant award recipient that elects to use the progress payment option to submit a claim for reimbursable work or progress at least once every 6 months and would prohibit the department from disbursing any portion of a grant award until the department verifies that the claim seeks reimbursement for eligible costs under the applicable program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 50406.4 is added to the Health and Safety Code, to read:

50406.4.
 (a) Notwithstanding any other law, the department shall develop and administer a progress payment option for grants distributed pursuant to any program administered by the department that relates to the development of affordable housing, including, but not limited to, all of the following programs:
(1) The Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)).
(2) The CalHome Program (Chapter 6 (commencing with Section 50650)).
(3) The Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)).
(4) The California Emergency Solutions Grants Program (Chapter 19 (commencing with Section 50899.1)).
(5) The Housing for a Healthy California Program (Part 14.2 (commencing with Section 53590)).
(6) The Affordable Housing and Sustainable Communities Program (Chapter 2 (commencing with Section 75210) of Part 1 of Division 44 of the Public Resources Code).
(7) The No Place Like Home Program (Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code).
(b) (1) A grant award recipient under a program subject to this section may, upon request, receive the award pursuant to the progress payment option established pursuant to subdivision (a).
(2) The department shall disclose to a grant award recipient the eligible costs for reimbursement under the applicable program upon receipt of a request to receive a grant award as progress payments.
(3) The department shall require a grant award recipient that elects to receive an award pursuant to paragraph (1) to submit a claim for reimbursable work or progress at least once every six months. The department shall not disburse any portion of a grant award until the department verifies that the claim seeks reimbursement for eligible costs under the applicable program.
(4) A grant award recipient shall submit a final claim for reimbursement of eligible cost no later than 180 days after the completion of the project or other eligible activity.