AB 1969: Affordable housing: home purchase assistance.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-05-10
Existing law establishes the California Homebuyers Downpayment Assistance Program, which requires the California Housing Finance Agency to, among other things, administer a program that provides downpayment assistance, including deferred-payment, low-interest, junior mortgage loans to reduce principal and interest payments, that makes financing affordable to first-time low- and moderate-income home buyers, pursuant to specified terms.
This bill would appropriate $10,000,000 from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes of the downpayment assistance program described above. The bill would condition the application of these funds on an additional requirement that the home for which assistance is provided be in a development project that is in a designated infill site, close to public transit, and that is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency and would thereby impose a state-mandated local program. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law establishes the California Homebuyers Downpayment Assistance Program, which requires the California Housing Finance Agency to, among other things, administer a program that provides downpayment assistance, including deferred-payment, low-interest, junior mortgage loans to reduce principal and interest payments, that makes financing affordable to first-time low- and moderate-income home buyers, pursuant to specified terms.
This bill would appropriate an unspecified amount $10,000,000 from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes of the downpayment assistance program described above. The bill would condition the application of these funds on an additional requirement that the home for which assistance is provided be in a development project that is in a designated infill site, close to public transit, and that is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency, Agency and would thereby impose a state-mandated local program. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, Program if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law establishes the California Homebuyers Downpayment Assistance Program, which requires the California Housing Finance Agency to, among other things, administer a program that provides downpayment assistance, including deferred-payment, low-interest, junior mortgage loans to reduce principal and interest payments, that makes financing affordable to first-time low- and moderate-income home buyers, pursuant to specified terms.
This bill would appropriate an unspecified amount from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes of the downpayment assistance program described above. The bill would condition the application of these funds on an additional requirement that the home for which assistance is provided be in a development project that is in a designated infill site, close to public transit, and that is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency, and would thereby impose a state-mandated local program. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law establishes the Homebuyer Down Payment California Homebuyers Downpayment Assistance Program of 2002 to provide assistance in the amount of the applicable school facility fee on affordable housing developments. Existing law requires the program to provide purchasers of newly constructed residential structures in development projects with assistance if the development project is located in an economically distressed area and other specified requirements are met, or if the purchaser is a qualified first-time home buyer and other specified requirements are met. Under existing law, the program is funded by bonds sold pursuant to the Housing and Emergency Shelter Trust Fund Act of 2002, which was approved by the voters at the November 5, 2002, statewide general election. Program, which requires the California Housing Finance Agency to, among other things, administer a program that provides downpayment assistance, including deferred-payment, low-interest, junior mortgage loans to reduce principal and interest payments, that makes financing affordable to first-time low- and moderate-income home buyers, pursuant to specified terms.
This bill would appropriate an unspecified amount from the General Fund to the California Homebuyers Downpayment Assistance Program of 2002. Program for the purposes of the downpayment assistance program described above. The bill would condition the application of these funds to the assistance to purchasers of residential structures in development projects located in economically distressed areas, as described above, on an additional requirement that the home for which assistance is provided be in a development project be located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency, and would thereby impose a state-mandated local program. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law establishes the Homebuyer Down Payment Assistance Program of 2002 to provide assistance in the amount of the applicable school facility fee on affordable housing developments. Existing law requires the program to provide purchasers of newly constructed residential structures in development projects with assistance if the development project is located in an economically distressed area and other specified requirements are met, or if the purchaser is a qualified first-time home buyer and other specified requirements are met. Under existing law, the program is funded by bonds sold pursuant to the Housing and Emergency Shelter Trust Fund Act of 2002, which was approved by the voters at the November 5, 2002, statewide general election.
This bill would appropriate an unspecified amount from the General Fund to the California Homebuyers Downpayment Assistance Program of 2002. The bill would condition the programs the application of these funds to the assistance to purchasers of residential structures in development projects located in economically distressed areas, as described above, on an additional requirement that the development project be located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency, and would thereby impose a state-mandated local program.
This bill would appropriate an unspecified amount from the General Fund to the California Homebuyers Downpayment Assistance Program for the Extra Credit Teacher Home Purchase Program and certain other school personnel home ownership assistance programs. program. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law establishes the Homebuyer Down Payment Assistance Program of 2002 to provide assistance in the amount of the applicable school facility fee on affordable housing developments. Existing law requires the program to provide purchasers of newly constructed residential structures in development projects with assistance if the development project is located in an economically distressed area and other specified requirements are met, or if the purchaser is a qualified first-time home buyer and other specified requirements are met. Under existing law, the program is funded by bonds sold pursuant to the Housing and Emergency Shelter Trust Fund Act of 2002, which was approved by the voters at the November 5, 2002, statewide general election.
This bill would condition the programs assistance to purchasers of residential structures in development projects located in economically distressed areas, as described above, on an additional requirement that the development project be located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project, as specified. As part of this additional requirement, the bill would require a local agency to provide verification of the local agencys schedule of local fees, charges, and other exactions to the California Housing Finance Agency, and would thereby impose a state-mandated local program.
This bill would appropriate an unspecified amount from the General Fund to the California Homebuyers Downpayment Assistance Program for the Extra Credit Teacher Home Purchase Program and certain other school personnel home ownership assistance programs. The bill would make these moneys available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, if specified requirements are met.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Existing law sets forth provisions relating to the requirements for expending moneys in a Low and Moderate Income Housing Fund to assist housing for specified persons.
This bill would make technical, nonsubstantive changes to these provisions.
Existing law sets forth provisions relating to the requirements for expending moneys in a Low and Moderate Income Housing Fund to assist housing for specified persons.
This bill would make technical, nonsubstantive changes to these provisions.
(a)The agency shall administer a downpayment assistance program that includes, but is not limited to, all of the following:
(1)Downpayment assistance shall include, but not be limited to, a deferred-payment, low-interest, junior mortgage loan to reduce the principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers.
(2)(A)Except as provided in subparagraph (B) or (C), the amount of downpayment assistance shall not exceed 3 percent of the home sale price.
(B)The amount of downpayment assistance for a new home within an infill opportunity zone, as defined in Section 65088.1 of the Government Code, a transit village development district, as defined in Section 65460.4 of the Government Code, or a transit-oriented development specific plan area, as defined in paragraph (6), shall not exceed 5 percent of the purchase price or the appraised value, whichever amount is less, of the new home. The borrower of the downpayment assistance shall provide the lender originating the loan with a certification from the local government agency administering the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area that states that the property involved in the loan transaction is within the boundaries of either the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area.
(C)Notwithstanding paragraph (1), the agency may, but is not required to, provide downpayment assistance that does not exceed 6 percent of the home sale price to first-time low-income home buyers who, as documented to the agency by a nonprofit organization that is certified and funded to provide home ownership counseling by a federally funded national nonprofit corporation, are purchasing a residence in a community revitalization area targeted by the nonprofit organization as a neighborhood in need of economic stimulation, renovation, and rehabilitation through efforts that include increased home ownership opportunities for low-income families. The agency shall not use more than six million dollars ($6,000,000) in funds made available pursuant to Section 53533 for the purposes of this paragraph.
(3)The amount of the downpayment assistance shall be secured by a deed of trust in a junior position to the primary financing provided. The term of the loan for the downpayment assistance shall not exceed the term of the primary loan.
(4)(A)Except as provided in subparagraphs (B) and (C), the amount of the downpayment assistance shall be due and payable at the end of the term or upon sale of or refinancing of the home. The borrower may refinance the mortgages on the home provided that the principal and accrued interest on the junior mortgage loan securing the downpayment assistance are repaid in full. All repayments shall be made to the agency to be reallocated for the purposes of this chapter.
(B)The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agencys underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable.
(C)The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans.
(5)The agency may use up to 5 percent of the funds appropriated by the Legislature for purposes of this chapter to administer this program.
(6)For purposes of this section, transit-oriented development specific plan area means a specific plan that meets the criteria set forth in Section 65451 of the Government Code, is centered around a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and is intended to achieve a higher density use of land that facilitates use of the transit station.
(b)In addition to the downpayment assistance program authorized by subdivision (a), the agency may, at its discretion, use not more than seventy-five million dollars ($75,000,000) of the funds available pursuant to this chapter to finance the acquisition of land and the construction and development of housing developments, as defined in Section 50073.5, and for-sale residential structures through short-term loans pursuant to its authority pursuant to Section 51100. However, the agency shall make downpayment assistance provided pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision (a) the priority use for these funds. A loan made pursuant to this section is not subject to Article 4 (commencing with Section 51175) of Chapter 5.
(c)(1)In addition to the downpayment assistance program authorized by subdivision (a), the agency shall provide downpayment assistance from the funds appropriated by the act adding this subdivision to first-time home buyers pursuant to paragraphs (1), (2), (3), (4), and (6) of subdivision (a) for homes in development projects that are located in designated infill sites, close to public transit, and that are located in cities, counties, or cities and counties that reduce developer or impact fees or reduce or remove regulatory barriers to housing construction for the development projects. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to affordable housing projects. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30-percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Parks and recreation fees.
(XIII)Any other fee that may substitute for the requirements described in subparagraph (D).
(2)Paragraph (1) applies only to the use of funds appropriated by the act adding this subdivision and shall not be construed to apply to the use of any other funds.
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 3.The sum of ten million dollars ($10,000,000) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program.
(a)The agency shall administer a downpayment assistance program that includes, but is not limited to, all of the following:
(1)Downpayment assistance shall include, but not be limited to, a deferred-payment, low-interest, junior mortgage loan to reduce the principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers.
(2)(A)Except as provided in subparagraph (B) or (C), the amount of downpayment assistance shall not exceed 3 percent of the home sale price.
(B)The amount of downpayment assistance for a new home within an infill opportunity zone, as defined in Section 65088.1 of the Government Code, a transit village development district, as defined in Section 65460.4 of the Government Code, or a transit-oriented development specific plan area, as defined in paragraph (6), shall not exceed 5 percent of the purchase price or the appraised value, whichever amount is less, of the new home. The borrower of the downpayment assistance shall provide the lender originating the loan with a certification from the local government agency administering the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area that states that the property involved in the loan transaction is within the boundaries of either the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area.
(C)Notwithstanding paragraph (1), the agency may, but is not required to, provide downpayment assistance that does not exceed 6 percent of the home sale price to first-time low-income home buyers who, as documented to the agency by a nonprofit organization that is certified and funded to provide home ownership counseling by a federally funded national nonprofit corporation, are purchasing a residence in a community revitalization area targeted by the nonprofit organization as a neighborhood in need of economic stimulation, renovation, and rehabilitation through efforts that include increased home ownership opportunities for low-income families. The agency shall not use more than six million dollars ($6,000,000) in funds made available pursuant to Section 53533 for the purposes of this paragraph.
(3)The amount of the downpayment assistance shall be secured by a deed of trust in a junior position to the primary financing provided. The term of the loan for the downpayment assistance shall not exceed the term of the primary loan.
(4)(A)Except as provided in subparagraphs (B) and (C), the amount of the downpayment assistance shall be due and payable at the end of the term or upon sale of or refinancing of the home. The borrower may refinance the mortgages on the home provided that the principal and accrued interest on the junior mortgage loan securing the downpayment assistance are repaid in full. All repayments shall be made to the agency to be reallocated for the purposes of this chapter.
(B)The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agencys underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable.
(C)The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans.
(5)The agency may use up to 5 percent of the funds appropriated by the Legislature for purposes of this chapter to administer this program.
(6)For purposes of this section, transit-oriented development specific plan area means a specific plan that meets the criteria set forth in Section 65451 of the Government Code, is centered around a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and is intended to achieve a higher density use of land that facilitates use of the transit station.
(b)In addition to the downpayment assistance program authorized by subdivision (a), the agency may, at its discretion, use not more than seventy-five million dollars ($75,000,000) of the funds available pursuant to this chapter to finance the acquisition of land and the construction and development of housing developments, as defined in Section 50073.5, and for-sale residential structures through short-term loans pursuant to its authority pursuant to Section 51100. However, the agency shall make downpayment assistance provided pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision (a) the priority use for these funds. A loan made pursuant to this section is not subject to Article 4 (commencing with Section 51175) of Chapter 5.
(c)(1)In addition to the downpayment assistance program authorized by subdivision (a), the agency shall provide downpayment assistance from the funds appropriated by the act adding this subdivision to first-time home buyers pursuant to paragraphs (1), (2), (3), (4), and (6) of subdivision (a) for homes in development projects that are located in designated infill sites, close to public transit, and that are located in cities, counties, or cities and counties that reduce developer or impact fees or reduce or remove regulatory barriers to housing construction for the development projects. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to affordable housing projects. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30-percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Parks and recreation fees.
(XIII)Any other fee that may substitute for the requirements described in subparagraph (D).
(2)Paragraph (1) applies only to the use of funds appropriated by the act adding this subdivision and shall not be construed to apply to the use of any other funds.
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 3.The sum of ____ dollars ($____) ten million dollars ($10,000,000) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program.
(a)The agency shall administer a downpayment assistance program that includes, but is not limited to, all of the following:
(1)Downpayment assistance shall include, but not be limited to, a deferred-payment, low-interest, junior mortgage loan to reduce the principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers.
(2)(A)Except as provided in subparagraph (B) or (C), the amount of downpayment assistance shall not exceed 3 percent of the home sale price.
(B)The amount of downpayment assistance for a new home within an infill opportunity zone, as defined in Section 65088.1 of the Government Code, a transit village development district, as defined in Section 65460.4 of the Government Code, or a transit-oriented development specific plan area, as defined in paragraph (6), shall not exceed 5 percent of the purchase price or the appraised value, whichever amount is less, of the new home. The borrower of the downpayment assistance shall provide the lender originating the loan with a certification from the local government agency administering the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area that states that the property involved in the loan transaction is within the boundaries of either the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area.
(C)Notwithstanding paragraph (1), the agency may, but is not required to, provide downpayment assistance that does not exceed 6 percent of the home sale price to first-time low-income home buyers who, as documented to the agency by a nonprofit organization that is certified and funded to provide home ownership counseling by a federally funded national nonprofit corporation, are purchasing a residence in a community revitalization area targeted by the nonprofit organization as a neighborhood in need of economic stimulation, renovation, and rehabilitation through efforts that include increased home ownership opportunities for low-income families. The agency shall not use more than six million dollars ($6,000,000) in funds made available pursuant to Section 53533 for the purposes of this paragraph.
(3)The amount of the downpayment assistance shall be secured by a deed of trust in a junior position to the primary financing provided. The term of the loan for the downpayment assistance shall not exceed the term of the primary loan.
(4)(A)Except as provided in subparagraphs (B) and (C), the amount of the downpayment assistance shall be due and payable at the end of the term or upon sale of or refinancing of the home. The borrower may refinance the mortgages on the home provided that the principal and accrued interest on the junior mortgage loan securing the downpayment assistance are repaid in full. All repayments shall be made to the agency to be reallocated for the purposes of this chapter.
(B)The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agencys underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable.
(C)The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans.
(5)The agency may use up to 5 percent of the funds appropriated by the Legislature for purposes of this chapter to administer this program.
(6)For purposes of this section, transit-oriented development specific plan area means a specific plan that meets the criteria set forth in Section 65451 of the Government Code, is centered around a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and is intended to achieve a higher density use of land that facilitates use of the transit station.
(b)In addition to the downpayment assistance program authorized by subdivision (a), the agency may, at its discretion, use not more than seventy-five million dollars ($75,000,000) of the funds available pursuant to this chapter to finance the acquisition of land and the construction and development of housing developments, as defined in Section 50073.5, and for-sale residential structures through short-term loans pursuant to its authority pursuant to Section 51100. However, the agency shall make downpayment assistance provided pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision (a) the priority use for these funds. A loan made pursuant to this section is not subject to Article 4 (commencing with Section 51175) of Chapter 5.
(c)(1)In addition to the downpayment assistance program authorized by subdivision (a), the agency shall provide downpayment assistance from the funds appropriated by the act adding this subdivision to first-time home buyers pursuant to paragraphs (1), (2), (3), (4), and (6) of subdivision (a) for homes in development projects that are located in designated infill sites, close to public transit, and that are located in cities, counties, or cities and counties that reduce developer or impact fees or reduce or remove regulatory barriers to housing construction for the development projects. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to affordable housing construction. projects. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30-percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)
(XII)Parks and recreation fees.
(XIV)
(XIII)Any other fee that may substitute for the requirements described in subparagraph (D).
(2)Paragraph (1) applies only to the use of funds appropriated by the act adding this subdivision and shall not be construed to apply to the use of any other funds.
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 3.The sum of ____ dollars ($____) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, but may also continue to be available for the purposes set forth in Section 51504 of the Health and Safety Code. Program.
The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing developments. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Housing and Emergency Shelter Trust Fund Act of 2002 (Part 11 (commencing with Section 53500)), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5.
(2) The qualified first-time homebuyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(c)Downpayment assistance from funds appropriated by the act adding this subdivision to provide assistance in the amount of the applicable school facility fee on affordable housing shall be available to the purchaser of any newly constructed residential structure in a development project in an economically distressed area if the following requirements are met:
(1)The downpayment assistance is in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code.
(2)The downpayment assistance is for a residential structure that satisfies the conditions described in paragraphs (1) to (5), inclusive, of subdivision (a).
(3)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
SEC. 2.Section 51451.5 of the Health and Safety Code, as amended by Section 2 of Chapter 553 of the Statutes of 2003, is amended to read:51451.5.The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Kindergarten-University Public Education Facilities Bond Acts of 2002 and 2004 (Part 68.1 (commencing with Section 100600) of the Education Code, and Part 68.2 (commencing with Section 100800) of the Education Code), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(c)Downpayment assistance from funds appropriated by the act adding this subdivision to provide assistance in the amount of the applicable school facility fee on affordable housing shall be available to the purchaser of any newly constructed residential structure in a development project in an economically distressed area if the following requirements are met:
(1)The downpayment assistance is in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code.
(2)The downpayment assistance is for a residential structure that satisfies the conditions described in paragraphs (1) to (5), inclusive, of subdivision (a).
(3)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
SECTION 1.Section 51504 of the Health and Safety Code is amended to read:51504.(a)The agency shall administer a downpayment assistance program that includes, but is not limited to, all of the following:
(1)Downpayment assistance shall include, but not be limited to, a deferred-payment, low-interest, junior mortgage loan to reduce the principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers.
(2)(A)Except as provided in subparagraph (B) or (C), the amount of downpayment assistance shall not exceed 3 percent of the home sale price.
(B)The amount of downpayment assistance for a new home within an infill opportunity zone, as defined in Section 65088.1 of the Government Code, a transit village development district, as defined in Section 65460.4 of the Government Code, or a transit-oriented development specific plan area, as defined in paragraph (6), shall not exceed 5 percent of the purchase price or the appraised value, whichever amount is less, of the new home. The borrower of the downpayment assistance shall provide the lender originating the loan with a certification from the local government agency administering the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area that states that the property involved in the loan transaction is within the boundaries of either the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area.
(C)Notwithstanding paragraph (1), the agency may, but is not required to, provide downpayment assistance that does not exceed 6 percent of the home sale price to first-time low-income home buyers who, as documented to the agency by a nonprofit organization that is certified and funded to provide home ownership counseling by a federally funded national nonprofit corporation, are purchasing a residence in a community revitalization area targeted by the nonprofit organization as a neighborhood in need of economic stimulation, renovation, and rehabilitation through efforts that include increased home ownership opportunities for low-income families. The agency shall not use more than six million dollars ($6,000,000) in funds made available pursuant to Section 53533 for the purposes of this paragraph.
(3)The amount of the downpayment assistance shall be secured by a deed of trust in a junior position to the primary financing provided. The term of the loan for the downpayment assistance shall not exceed the term of the primary loan.
(4)(A)Except as provided in subparagraphs (B) and (C), the amount of the downpayment assistance shall be due and payable at the end of the term or upon sale of or refinancing of the home. The borrower may refinance the mortgages on the home provided that the principal and accrued interest on the junior mortgage loan securing the downpayment assistance are repaid in full. All repayments shall be made to the agency to be reallocated for the purposes of this chapter.
(B)The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agencys underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable.
(C)The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans.
(5)The agency may use up to 5 percent of the funds appropriated by the Legislature for purposes of this chapter to administer this program.
(6)For purposes of this section, transit-oriented development specific plan area means a specific plan that meets the criteria set forth in Section 65451 of the Government Code, is centered around a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and is intended to achieve a higher density use of land that facilitates use of the transit station.
(b)In addition to the downpayment assistance program authorized by subdivision (a), the agency may, at its discretion, use not more than seventy-five million dollars ($75,000,000) of the funds available pursuant to this chapter to finance the acquisition of land and the construction and development of housing developments, as defined in Section 50073.5, and for-sale residential structures through short-term loans pursuant to its authority pursuant to Section 51100. However, the agency shall make downpayment assistance provided pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision (a) the priority use for these funds. A loan made pursuant to this section is not subject to Article 4 (commencing with Section 51175) of Chapter 5.
(c)(1)In addition to the downpayment assistance program authorized by subdivision (a), the agency shall provide downpayment assistance from the funds appropriated by the act adding this subdivision to first-time home buyers pursuant to paragraphs (1), (2), (3), (4), and (6) of subdivision (a) for homes in development projects that are located in cities, counties, or cities and counties that reduce developer or impact fees or reduce or remove regulatory barriers to housing construction for the development projects. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30-percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
(2)Paragraph (1) applies only to the use of funds appropriated by the act adding this subdivision and shall not be construed to apply to the use of any other funds.
SEC. 3.SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.SEC. 3.The sum of ____ dollars ($____) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51451.5 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51451.5 51504 of the Health and Safety Code that satisfy the requirements of subdivision (c) of that section, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, but may also continue to be available for the purposes set forth in Section 51505 51504 of the Health and Safety Code.
The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing developments. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Housing and Emergency Shelter Trust Fund Act of 2002 (Part 11 (commencing with Section 53500)), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(6)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5.
(2) The qualified first-time homebuyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(c)Downpayment assistance from funds appropriated by the act adding this subdivision to provide assistance in the amount of the applicable school facility fee on affordable housing shall be available to the purchaser of any newly constructed residential structure in a development project in an economically distressed area if the following requirements are met:
(1)The downpayment assistance is in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code.
(2)The downpayment assistance is for a residential structure that satisfies the conditions described in paragraphs (1) to (5), inclusive, of subdivision (a).
(3)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
SEC. 2.Section 51451.5 of the Health and Safety Code, as amended by Section 2 of Chapter 553 of the Statutes of 2003, is amended to read:51451.5.The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Kindergarten-University Public Education Facilities Bond Acts of 2002 and 2004 (Part 68.1 (commencing with Section 100600) of the Education Code; Code, and Part 68.2 (commencing with Section 100800) of the Education Code), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(6)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(c)Downpayment assistance from funds appropriated by the act adding this subdivision to provide assistance in the amount of the applicable school facility fee on affordable housing shall be available to the purchaser of any newly constructed residential structure in a development project in an economically distressed area if the following requirements are met:
(1)The downpayment assistance is in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code.
(2)The downpayment assistance is for a residential structure that satisfies the conditions described in paragraphs (1) to (5), inclusive, of subdivision (a).
(3)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.The sum of ____ dollars ($____) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51505 51451.5 of the Health and Safety Code. Code that satisfy the requirements of subdivision (c) of that section. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51505 51451.5 of the Health and Safety Code, Code that satisfy the requirements of subdivision (c) of that section, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, but may also continue to be available for the purposes set forth in Section 51505 of the Health and Safety Code.
The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing developments. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Housing and Emergency Shelter Trust Fund Act of 2002 (Part 11 (commencing with Section 53500)), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(6)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5.
(2) The qualified first-time homebuyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
SEC. 2.Section 51451.5 of the Health and Safety Code, as amended by Section 2 of Chapter 553 of the Statutes of 2003, is amended to read:51451.5.The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Kindergarten-University Public Education Facilities Bond Acts of 2002 and 2004 (Part 68.1 (commencing with Section 100600) of the Education Code; and Part 68.2 (commencing with Section 100800) of the Education Code), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met:
(1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate.
(2) Five hundred or more residential structures have been constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
(5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. However, if the five-year average exceeds the Governmental-Sponsored Enterprises conforming loan limit, the sales price in that county shall not exceed 100 percent of the median sales price of residential structures in the county during the average of the previous five years.
(6)The development project is located in a city, county, or city and county that reduces developer or impact fees or reduces or removes regulatory barriers to housing construction for the development project. The agency shall identify and shall objectively measure the types of local agency actions or incentives that the agency determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction. These actions or incentives may include, but are not limited to, modifications to any or all of the following:
(A)Local design review requirements.
(B)Land use controls.
(C)Building codes and enforcement.
(D)Onsite or offsite improvement requirements.
(E)Project design.
(F)Permit processing.
(G)(i)A 30 percent reduction in the schedule of local fees, charges, and other exactions on local developers within the local agencys jurisdiction within 12 months or more prior to the submission of the application for assistance pursuant to this subdivision. The local agency shall provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
(ii)For the purposes of this subparagraph, local fees, charges, and other exactions includes, but is not limited to, all of the following:
(I)Planning and zoning fees.
(II)Environmental documentation fees.
(III)Building permit fees.
(IV)Plan check fees.
(V)School fees.
(VI)School mitigation fees.
(VII)Highway, road, traffic, and transit fees.
(VIII)Water, wastewater, sewer, and drainage fees.
(IX)Utility or water connection fees.
(X)Public safety fees.
(XI)Capital facilities fees.
(XII)Affordable housing fees and assessments.
(XIII)Parks and recreation fees.
(XIV)Any other fee that may substitute for the requirements described in subparagraph (D).
(b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4.The sum of ____ dollars ($____) is hereby appropriated from the General Fund to the California Homebuyers Downpayment Assistance Program for the purposes set forth in Section 51505 of the Health and Safety Code. After 48 months of availability, if the California Housing Finance Agency determines that these moneys will not be utilized for the purposes set forth in Section 51505 of the Health and Safety Code, the moneys shall be available for the general use of the California Housing Finance Agency for the purposes of the California Homebuyers Downpayment Assistance Program, but may also continue to be available for the purposes set forth in Section 51505 of the Health and Safety Code.
SECTION 1.Section 33334.4 of the Health and Safety Code is amended to read:33334.4.(a)Except as specified in subdivision (d), each agency shall expend over each 10-year period of the implementation plan, as specified in clause (iii) of subparagraph (A) of paragraph (2) of subdivision (a) of Section 33490, the moneys in the Low and Moderate Income Housing Fund to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed for each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584 of the Government Code. In determining compliance with this obligation, the agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law.
(b)Each agency shall expend over the duration of each redevelopment implementation plan, the moneys in the Low and Moderate Income Housing Fund to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under age 65 years bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau.
(c)An agency that has deposited in the Low and Moderate Income Housing Fund over the first five years of the period of an implementation plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section.
(d)For the purposes of this section, locally controlled means government assistance where the community or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, HOME Investment Partnerships Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges.
(a)Except as specified in subdivision (d), each agency shall expend over each 10-year period of the implementation plan, as specified in clause (iii) of subparagraph (A) of paragraph (2) of subdivision (a) of Section 33490, the moneys in the Low and Moderate Income Housing Fund to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed for each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584 of the Government Code. In determining compliance with this obligation, the agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law.
(b)Each agency shall expend over the duration of each redevelopment implementation plan, the moneys in the Low and Moderate Income Housing Fund to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under age 65 years bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau.
(c)An agency that has deposited in the Low and Moderate Income Housing Fund over the first five years of the period of an implementation plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section.
(d)For the purposes of this section, locally controlled means government assistance where the community or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, Community Development Block Grant Program (42 U.S.C. Sec. 5301 and following) et seq.) funds allocated to a city or county, Home HOME Investment Partnership Partnerships Program (42 U.S.C. Sec. 12721 and following) et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges.
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Date
|
Status
|
|---|---|
| Apr 20, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 20). |
| May 27, 2016 | In committee: Held under submission. |
| May 18, 2016 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 11, 2016 | Re-referred to Com. on APPR. |
| May 10, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. |
| May 5, 2016 | Re-referred to Com. on APPR. |
| May 4, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. |
| Apr 25, 2016 | Re-referred to Com. on APPR. |
| Apr 21, 2016 | Read second time and amended. |
| Feb 16, 2016 | Read first time. To print. |
| Apr 14, 2016 | Re-referred to Com. on H. & C.D. |
| Apr 13, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 7, 2016 | Re-referred to Com. on H. & C.D. |
| Apr 6, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Mar 28, 2016 | Re-referred to Com. on H. & C.D. |
| Mar 17, 2016 | Referred to Com. on H. & C.D. |
| Mar 17, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Feb 17, 2016 | From printer. May be heard in committee March 18. |
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Date
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Description
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Location
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Votes
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|
|---|---|---|---|---|
| Apr 20, 2016 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Housing and Community Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1969
Author:(Steinorth) – As Amended Ver:May 10, 2016
Policy Committee: | Housing and Community Development | Vote: | 6 - 1 |
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY: This bill appropriates $10 million from the State General Fund to the California Homebuyer's Downpayment Assistance Program (CHDAP) to provide downpayment assistance to homeowners in newly constructed developments in jurisdictions that provide incentives and waive local fees. Specifically, this bill:
- Requires the California Housing Finance Agency (CalHFA) to provide downpayment assistance to first-time homebuyers in development projects located in a city, county, or city and county that provides incentives, reduces developer or impact fees, or reduces or removes regulatory barriers to constructing the development projects.
- Requires local agencies to provide verification of the required reduction in local fees, charges, and other exactions to CalHFA.
- Provides that after 4 years, if CalHFA determines that the funding for this program will not be utilized for the purposes set forth in this bill, then the funding shall be available for the general purposes of the CHDAP.
FISCAL EFFECT:
- This bill contains a $10 million appropriation from the State General Fund to the CHDAP. Existing law provides that 5% of this amount ($500,000) can be used to fund CalHFAs administrative costs.
- Unknown, but likely minor, potentially reimbursable state mandate costs to local agencies, to the extent affected agencies choose to submit a claim to the Commission on State Mandates and the Commission determines that costs associated with this bill are a reimbursable mandate.
COMMENTS:
- Purpose. According to the author, "California is in the midst of a housing crisis. There is a substantial lack of new home construction: according to the California Homebuilding Foundation, the number of annual housing permits in 2015 was similar to the slowest years in the 1980s and 1990s. This shortage is hitting the affordable and middle-class housing markets alike. The cost of housing in California is significant. According to the nonpartisan Legislative Analyst’s Office, California has the second-highest median home price in the nation and residents’ housing costs, as a share of income, remain far above the national average. In fact, more than half of middle-class California families spend more than 30 percent of their income on housing. Increased housing costs lead to significant trade-offs for
the middle class California family including: postponing or foregoing homeownership, living in more crowded housing, commuting farther to work each day, or choosing to work and live elsewhere.”
- CHDAP. CalHFA operates the CHDAP and provides homebuyers between 3% and 6% in downpayment assistance secured as a second mortgage on the home. The program operates as a revolving loan and when a home is sold CalHFA is repaid allowing the funds to go to another homebuyer. There is approximately $150 million available in CHDAP at this time. The program can provide down payments to individuals that make up to 120% of the area median income (AMI) and just recently raised its income limits to 140% of AMI in high cost areas. CalHFA operates independently of the state General Fund and derives the funding for its down payment assistance program from the sale of bonds.
- The Building Equity and Growth in Neighborhoods Program (BEGIN). Administered by HCD, BEGIN provided grants to local governments that provided incentives or reduced regulatory barriers to construction of new for-sale affordable housing (a BEGIN project). The grants could be used by local governments to provide downpayment assistance to qualifying first-time homebuyers of low- and moderate-income purchasing newly constructed homes in a BEGIN project. Homebuyers were required to occupy the home as their principal residence for at least five years. Downpayment assistance was secured as a second mortgage loan and the amount of the loan could not exceed 20% of the purchase price. HCD established the types of objective and measurable incentives and reductions in regulatory barriers to new construction of for-sale, affordable housing units including but limited to standards relating to housing density, project design, parking requirements, permit processing, and fee reductions. There is currently no money available in the BEGIN program.
Similar to the BEGIN program, this bill would reward local governments that provide incentives and or remove or reduce local barriers to construction with down payment assistance. Unlike the BEGIN program, the downpayment assistance will be provided directly by CalHFA through the CHDAP program rather than be administered by local governments.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
ABPCA Bill Id:AB 1969 (
Author:Steinorth) – As Amended Ver:April 13, 2016
SUBJECT: Affordable housing: home purchase assistance
SUMMARY: Creates a program administered by the California Housing Financing Agency (CalHFA) to provide downpayment assistance to homeowners in newly constructed developments in jurisdictions that provide incentives and waive local fees. Specifically, this bill:
- Requires the California Housing Finance Agency (CalHFA) to provide downpayment assistance to first-time homebuyers in development projects located in a city, county, or city and county that provides incentives, reduces developer or impact fees, or reduces or removes regulatory barriers to constructing the development projects.
- Requires CalHFA to identify and objectively measure the types of local agency actions or incentives that it determines appropriately reduce developer or impact fees or reduce or remove regulatory barriers to housing construction.
- Provides these incentives may include but are limited to modifications to any of the following:
- Local design review requirements;
- Building code enforcement;
- Onsite or offsite improvement requirements;
- Project design;
- Permit processing; or
- A 30% reduction in the schedule of local fees, charges, and other exactions on local developers within the local agency's jurisdiction within 12 months or more prior to the submission of the application. Requires the local agency to provide verification of the reduction with supporting documents showing successive annual fee schedules to the agency.
- Defines "local fees, charges and other exactions" to include:
- planning and zoning fees;
- environmental documentation fees;
- plan check fees;
- school fees;
- school mitigation fees;
- highway road, traffic, and transit fees;
- water, wastewater, sewer, and drainage fees;
- utility or water connection fees;
- public safety fees;
- capital facilities fees;
- affordable housing fees and assessments;
- parks and recreation fees; and
- any other fee that may substitute for the requirements of onsite or offsite improvement requirements.
- Appropriates an unspecified amount from the General Fund to CHDAP to fund this program.
- Provides that after 4 years, if CalHFA determines that the funding for this program is no longer needed then the funding shall revert to the general California Homebuyer Downpayment Assistance Program (CHDAP) except that the funding can still be used for this program.
EXISTING LAW:
- Requires the California Housing Finance Agency (CalHFA) to administer a down payment assistance program.
- Creates CHDAP, a deferred-payment, low interest, junior mortgage loan to reduce principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers.
FISCAL EFFECT: Unknown.
COMMENTS:
Background:
CalHFA operates the CHDAP and provides homebuyers between 3% and 6% in downpayment assistance secured as a second mortgage on the home. The program operates as a revolving loan and when a home is sold CalHFA is repaid allowing the funds to go to another homebuyer. There is approximately $150 million available in CHDAP at this time. The program can provide down payments to individuals that make up to 120% of the area median income (AMI) and just recently raised its income limits to 140% of AMI in high cost areas. CalHFA operates independently of the state General Fund and derives the funding for its down payment assistance program from the sale of bonds.
The Building Equity and Growth in Neighborhoods Program (BEGIN), administered by HCD, provided grants to local governments that provided incentives or reduced regulatory barriers to construction of new for-sale affordable housing (a BEGIN project). The grants could be used by local governments to provide downpayment assistance to qualifying first-time homebuyers of low- and moderate-income purchasing newly constructed homes in a BEGIN project. Homebuyers were required to occupy the home as their principal residence for at least five years. Downpayment assistance was secured as a second mortgage loan and the amount of the loan could not exceed 20% of the purchase price. HCD established the types of objective and measurable incentives and reductions in regulatory barriers to new construction of for-sale, affordable housing units including but limited to standards relating to housing density, project design, parking requirements, permit processing, and fee reductions. There is currenlty no money available in the BEGIN program.
Similar to the BEGIN program, this bill would reward local governments that provide incentives and or remove or reduce local barriers to construction with down payment assistance. Unlike the BEGIN program, the downpayment assistance would be provided directly by CalHFA through the CHDAP program rather than administered by local governments.
Purpose of this bill: According to the author, "California is in the midst of a housing crisis. There is a substantial lack of new home construction: according to the California Homebuilding Foundation, the number of annual housing permits in 2015 was similar to the slowest years in the 1980s and 1990s. This shortage is hitting the affordable and middle-class housing markets alike.
The cost of housing in California is significant. According to the nonpartisan Legislative Analyst’s Office, California has the second-highest median home price in the nation and residents’ housing costs, as a share of income, remain far above the national average. In fact, more than half of middle-class California families spend more than 30 percent of their income on housing. Increased housing costs lead to significant trade-offs for the middle class California family including: postponing or foregoing homeownership, living in more crowded housing, commuting farther to work each day, or choosing to work and live elsewhere. AB 1969 will make a one-time appropriation for the California Homebuyer’s Downpayment Assistance Program (CHDAP). Those new funds may be loaned only to homebuyers in cities and counties who have reduced regulatory and fiscal impediments to new home construction. The California Housing Finance Agency will be tasked with determining what local actions would qualify, including changes to land use controls, permit processing, and a 30% reduction in developer fees. Any unused funds would revert to CHDAP for its general use."
Staff comments:
The BEGIN program awarded local governments that encouraged construction of new affordable housing for low- and moderate- income families. Because this bill would require CalHFA to provide downpayment assistance directly to a borrower in a newly constructed unit through CHDAP and CalHFA is limited to providing downpayment assistance to low- and moderate-income buyers then the result would be the same. The committee may wish to clarify with the author that his intent is to encourage the production of housing affordable to low- and moderate-income homebuyers. The committee may wish to amend the bill to require any newly constructed units that are subject to this bill are affordable to low- and moderate- income buyers.
This bill would include as one of the fees that can be waived on the development and "affordable housing fee or assessment" the committee may wish to consider deleting that option.
After four years of operation this bill would allow the funding for this program to be redirected to the general CHDAP program for downpayment assistance statewide. However, it would also allow this program to continue to be available. The committee may wish to consider if that would create administrative challenges for CalHFA and if it would not be better to shut down the program after four years if it is not in demand. The committee may also wish to consider shortening this time to two years.
The committee may wish to consider aligning the funding in this program with other funding sources and state land use policies by requiring all or a portion of the funding to go to projects that are in a designated infill site and are close to public transit.
Committee amendments:
- Amend the bill to require any newly constructed units to be affordable to low- and moderate- income buyers.
- Delete "affordable housing fee or assessment" on the list of fees that can be waived/reduced.
- Delete the language that allows the program to continue to operate after the funding has been transferred to the larger CHDAP program.
- Require the fund to revert back to the larger CHDAP program in two years rather than four.
- Require developments to also be in a designated infill site and are close to public transit.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Realtors
League of California Cities
Opposition
None on File
Analysis Prepared by: Lisa Engel / H. & C.D. / (961) 319-2085, Lisa Engel / H. & C.D. / (916) 319-2085
Bill Author
Bill Co-Author(s):