AB 723: Housing: finance.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-09-24
(1)Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.
This bill would authorize the Department of Housing and Community Development to issue a Notice of Funding Availability under which the director of the department could determine that an applicant previously awarded funds is eligible to apply for, and receive, additional funds pursuant to the Community Development Block Grant Program, without regard to whether the applicant has expended at least a certain percentage of funds previously awarded.
(2)Existing law authorizes the Housing Finance Agency to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. Existing law requires no less than 20%, or 15% for those multifamily rental housing developments located in a target area, as defined, of the total number of units in a multifamily rental housing development, financed or for which financing has been extended or committed from the proceeds of sale of each bond issuance of the agency, to be for occupancy on a priority basis by lower income households. Existing law further requires that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households.
This bill would authorize the agency to waive the priority requirements for very low income households upon approval of the board and a specified determination.
Existing law prohibits rental payments on units required for occupancy by very low income households paid by persons occupying the units from exceeding 30% of 50% of the area median income, and sets forth occupancy assumptions for adjusting rents for household size, as specified.
This bill would, commencing September 1, 2016, authorize the agency to also utilize occupancy assumptions that it has determined are appropriate and commercially reasonable for financing extended pursuant to these provisions.
Existing law provides that the authorization to issue revenue bonds for these purposes constitutes an alternative method to issue bonds for making construction loans and mortgage loans for multifamily rental housing.
This bill would instead provide that the authorization to issue revenue bonds for these purposes constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.
This bill would authorize the Department of Housing and Community Development to issue a Notice of Funding Availability under which the director of the department could determine that an applicant previously awarded funds is eligible to apply for, and receive, additional funds pursuant to the Community Development Block Grant Program, without regard to whether the applicant has expended at least a certain percentage of funds previously awarded.
(2)Existing law authorizes the Housing Finance Agency to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. Existing law requires no less than 20%, or 15% for those multifamily rental housing developments located in a target area, as defined, of the total number of units in a multifamily rental housing development, financed or for which financing has been extended or committed from the proceeds of sale of each bond issuance of the agency, to be for occupancy on a priority basis by lower income households. Existing law further requires that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households.
This bill would authorize the agency to waive the priority requirements for very low income households upon approval of the board and a specified determination.
Existing law prohibits rental payments on units required for occupancy by very low income households paid by persons occupying the units from exceeding 30% of 50% of the area median income, and sets forth occupancy assumptions for adjusting rents for household size, as specified.
This bill would, commencing September 1, 2016, authorize the agency to also utilize occupancy assumptions that it has determined are appropriate and commercially reasonable for financing extended pursuant to these provisions.
Existing law provides that the authorization to issue revenue bonds for these purposes constitutes an alternative method to issue bonds for making construction loans and mortgage loans for multifamily rental housing.
This bill would instead provide that the authorization to issue revenue bonds for these purposes constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.
This bill would authorize the Department of Housing and Community Development to issue a Notice of Funding Availability under which the director of the department could determine that an applicant previously awarded funds is eligible to apply for, and receive, additional funds pursuant to the Community Development Block Grant Program, without regard to whether the applicant has expended at least a certain percentage of funds previously awarded.
(2)Existing law authorizes the Housing Finance Agency to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. Existing law requires no less than 20%, or 15% for those multifamily rental housing developments located in a target area, as defined, of the total number of units in a multifamily rental housing development, financed or for which financing has been extended or committed from the proceeds of sale of each bond issuance of the agency, to be for occupancy on a priority basis by lower income households. Existing law further requires that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households.
This bill would authorize the agency to waive the priority requirements for very low income households upon approval of the board and a specified determination.
Existing law prohibits rental payments on units required for occupancy by very low income households paid by persons occupying the units from exceeding 30% of 50% of the area median income, and sets forth occupancy assumptions for adjusting rents for household size, as specified.
This bill would instead prohibit rental payment on units required for occupancy by lower income households paid by persons occupying the units from exceeding 30% of 80% of the area median income, and would would, commencing September 1, 2016, authorize the agency to also utilize occupancy assumptions that it has determined are appropriate and commercially reasonable for financing extended pursuant to these provisions.
Existing law provides that the authorization to issue revenue bonds for these purposes constitutes an alternative method to issue bonds for making construction loans and mortgage loans for multifamily rental housing.
This bill would instead provide that the authorization to issue revenue bonds for these purposes constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.
This bill would authorize the Department of Housing and Community Development to issue a Notice of Funding Availability under which the director of the department could determine that an applicant previously awarded funds is eligible to apply for, and receive, additional funds pursuant to the Community Development Block Grant Program, without regard to whether the applicant has expended at least a certain percentage of funds previously awarded.
(2)Existing law authorizes the Housing Finance Agency to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. Existing law requires no less than 20%, or 15% for those multifamily rental housing developments located in a target area, as defined, of the total number of units in a multifamily rental housing development, financed or for which financing has been extended or committed from the proceeds of sale of each bond issuance of the agency, to be for occupancy on a priority basis by lower income households. Existing law further requires that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households.
This bill would repeal the requirement that at least 15% of the total number of units in a target area development be for occupancy on a priority basis for lower income households. The bill would additionally repeal the requirement that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households. The bill would make conforming changes. authorize the agency to waive the priority requirements for very low income households upon approval of the board and a specified determination.
Existing law prohibits rental payments on units required for occupancy by very low income households paid by persons occupying the units from exceeding 30% of 50% of the area median income, and sets forth occupancy assumptions for adjusting rents for household size, as specified.
This bill would instead prohibit rental payment on units required for occupancy by lower income households paid by persons occupying the units from exceeding 30% of 80% of the area median income, and would authorize the agency to also utilize occupancy assumptions that it has determined are appropriate and commercially reasonable for financing pursuant to these provisions.
Existing law provides that the authorization to issue revenue bonds for these purposes constitutes an alternative method to issue bonds for making construction loans and mortgage loans for multifamily rental housing.
This bill would instead provide that the authorization to issue revenue bonds for these purposes constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law requires the Department of Housing and Community Development to allocate funds under the federal Community Development Block Grant Program to cities and counties. Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used for economic development projects and programs, housing for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for these persons and families, and for cities and counties that apply on behalf of certain Indian tribes. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications.
This bill would authorize the Department of Housing and Community Development to issue a Notice of Funding Availability under which the director of the department could determine that an applicant previously awarded funds is eligible to apply for, and receive, additional funds pursuant to the Community Development Block Grant Program, without regard to whether the applicant has expended at least a certain percentage of funds previously awarded.
(2)Existing law authorizes the Housing Finance Agency to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. Existing law requires no less than 20%, or 15% for those multifamily rental housing developments located in a target area, as defined, of the total number of units in a multifamily rental housing development, financed or for which financing has been extended or committed from the proceeds of sale of each bond issuance of the agency, to be for occupancy on a priority basis by lower income households. Existing law further requires that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households.
This bill would repeal the requirement that at least 15% of the total number of units in a target area development be for occupancy on a priority basis for lower income households. The bill would additionally repeal the requirement that not less than 1/2 of the units required for occupancy on a priority basis by lower income households be for occupancy on a priority basis for very low income households. The bill would make conforming changes.
Existing law prohibits rental payments on units required for occupancy by very low income households paid by persons occupying the units from exceeding 30% of 50% of the area median income, and sets forth occupancy assumptions for adjusting rents for household size, as specified.
This bill would instead prohibit rental payment on units required for occupancy by lower income households paid by persons occupying the units from exceeding 30% of 80% of the area median income, and would authorize the agency to also utilize occupancy assumptions that it has determined are appropriate and commercially reasonable for financing pursuant to these provisions.
Existing law provides that the authorization to issue revenue bonds for these purposes constitutes an alternative method to issue bonds for making construction loans and mortgage loans for multifamily rental housing.
This bill would instead provide that the authorization to issue revenue bonds for these purposes constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
Existing law requires, on and after January 1, 2017, replacement by the property owner of noncompliant plumbing fixtures in any single-family residential real property. Existing law requires, on and after January 1, 2019, replacement of noncompliant plumbing fixtures in multifamily residential real property and commercial real property, as specified.
This bill would require the lease or rental agreement of a single-family residential real property or any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended after July 1, 2016, or January 1, 2017, respectively, to be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017, or January 1, 2019, respectively.
Existing law requires, on and after January 1, 2017, replacement by the property owner of noncompliant plumbing fixtures in any single-family residential real property. Existing law requires, on and after January 1, 2019, replacement of noncompliant plumbing fixtures in multifamily residential real property and commercial real property, as specified.
This bill would require the lease or rental agreement of a single-family residential real property or any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended after January 1, 2016, July 1, 2016, or January 1, 2017, respectively, to contain a provision in which the property owner states his or her be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017, or January 1, 2019, respectively. The bill would authorize any party, including a city, county, or water supplier to enforce that lease provision.
Existing law requires, on and after January 1, 2017, replacement by the property owner of noncompliant plumbing fixtures in any single-family residential real property. Existing law requires, on and after January 1, 2019, replacement of noncompliant plumbing fixtures in multifamily residential real property and commercial real property, as specified.
This bill would require the lease of a single-family residential real property or any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended after January 1, 2016, to contain a provision in which the property owner states his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017, or January 1, 2019, respectively. The bill would authorize any party, including a city, county, or water supplier to enforce that lease provision.
Prior law, until January 1, 2014, required manufacturers selling water closets or urinals in this state to offer high-efficiency models for sale in a specified percentage of all models offered, including 50% by January 1, 2010, 67% by January 1, 2011, 75% by January 1, 2012, 85% by January 1, 2013, and 100% by January 1, 2014. It required these manufacturers, by January 30 of 2010, 2011, 2012, and 2013, to inform, in writing, the California Energy Commission of the percentage of high-efficiency models it is offering for sale that year. A violation of these requirements is a misdemeanor.
This bill would require the California Energy Commission, when setting plumbing fixture water efficiency standards, to consider the performance requirements established by the WaterSense standards set by the federal Environmental Protection Agency.
Prior law, until January 1, 2014, required manufacturers selling water closets or urinals in this state to offer high-efficiency models for sale in a specified percentage of all models offered, including 50% by January 1, 2010, 67% by January 1, 2011, 75% by January 1, 2012, 85% by January 1, 2013, and 100% by January 1, 2014. It required these manufacturers, by January 30 of 2010, 2011, 2012, and 2013, to inform, in writing, the California Energy Commission of the percentage of high-efficiency models it is offering for sale that year. A violation of these requirements is a misdemeanor.
This bill would, beginning January 1, 2017, instead prohibit manufacturers selling water closets, urinals, residential lavatory faucets, and showerheads from installing or selling any of the aforementioned plumbing fixtures that do not meet WaterSense standards set by the federal Environmental Protection Agency, as specified. The bill would remove the requirement that these manufacturers, by January 30 of each year, inform, in writing, the California Energy Commission, the department, and the California Building Standards Commission of the number of WaterSense certified models it is offering for sale.
By changing the definition of a crime, this bill would impose a state-mandated local program.
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 no reimbursement is required by this act for a specified reason.
This bill would require the California Energy Commission, when setting plumbing fixture water efficiency standards, to consider the performance requirements established by the WaterSense standards set by the federal Environmental Protection Agency.
Prior law, until January 1, 2014, required manufacturers selling water closets or urinals in this state to offer high-efficiency models for sale in a specified percentage of all models offered, including 50% by January 1, 2010, 67% by January 1, 2011, 75% by January 1, 2012, 85% by January 1, 2013, and 100% by January 1, 2014. It required these manufacturers, by January 30 of 2010, 2011, 2012, and 2013, to inform, in writing, the California Energy Commission of the percentage of high-efficiency models it is offering for sale that year. A violation of these requirements is a misdemeanor.
This bill would, beginning January 1, 2017, instead prohibit manufacturers selling water closets, urinals, bathroom faucets, and shower heads residential lavatory faucets, and showerheads from installing or selling any of the aforementioned plumbing fixtures that do not meet WaterSense standards set by the federal Environmental Protection Agency, as specified. The bill would require remove the requirement that these manufacturers, by January 30 of each year, to inform, in writing, the California Energy Commission, the department, and the California Building Standards Commission of the number of WaterSense certified models it is offering for sale that year as compared to the years 2010 to 2014, inclusive. sale.
By changing the definition of a crime, this bill would impose a state-mandated local program.
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 no reimbursement is required by this act for a specified reason.
Prior law, until January 1, 2014, required manufacturers selling water closets or urinals in this state to offer high-efficiency models for sale in a specified percentage of all models offered, including 50% by January 1, 2010, 67% by January 1, 2011, 75% by January 1, 2012, 85% by January 1, 2013, and 100% by January 1, 2014. It required these manufacturers, by January 30 of 2010, 2011, 2012, and 2013, to inform, in writing, the California Energy Commission of the percentage of high-efficiency models it is offering for sale that year. A violation of these requirements is a misdemeanor.
This bill would, beginning January 1, 2017, instead prohibit manufacturers selling water closets, urinals, bathroom faucets, and shower heads from installing or selling any of the aforementioned plumbing fixtures that do not meet WaterSense standards set by the federal Environmental Protection Agency, as specified. The bill would require these manufacturers, by January 30 of each year, to inform, in writing, the California Energy Commission, the department, and the California Building Standards Commission of the number of WaterSense certified models it is offering for sale that year as compared to the years 2010 to 2014, inclusive.
By changing the definition of a crime, this bill would impose a state-mandated local program.
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 no reimbursement is required by this act for a specified reason.
(a)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds set aside for economic development that shall be allocated to make economic development planning and technical assistance grants to eligible small cities or counties for business attraction, retention, and expansion programs for the development of local economic development strategies, predevelopment grant feasibility studies, and downtown revitalization programs. Eligible small cities or counties may contract with public agencies or nonprofit economic development corporations and other eligible subgrantees or for-profit corporations or entities to provide these services. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling, under Section 50832, or its ability to apply under the economic development or general program set-asides. The department shall determine and announce in the applicable NOFA the maximum per year grant amount. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year. Funds not applied for or allocated under this section may be used for other economic development purposes under Sections 50832 and 50832.1.
(b)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds not used for economic development that shall be set aside to make technical assistance grants to eligible small cities or counties for purposes including, but not limited to: inventory of housing needing rehabilitation in the district, income surveys of area residents, and any general studies of housing needs in the district. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling or its ability to apply under the economic development or general program set-asides. Unexpended funds allocated under this section shall revert to the general program, but not to the economic development set-aside. The department shall determine and announce in the applicable NOFA the maximum grant amount per application. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year.
(c)If, under federal law, the economic development planning and technical assistance grants and the general allocation planning and assistance grants are considered to be administrative expenditures, the department may reduce the percentages of the set-asides by up to the amount necessary to remain within the allowable limits for administrative expenditures.
(d)Two or more jurisdictions may pool their funds and make a joint application for the same project.
(e)General administrative activity planning studies shall not be counted against allocations under this section.
(f)The department may issue a NOFA under which the director may determine that an applicant with one or more current Community Development Block Grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement or agreements has not yet passed, is eligible to apply for and receive an award of, funds pursuant to this chapter, without regard to whether the applicant has expended at least 50 percent of Community Development Block Grant Funds awarded in 2012 or thereafter. For any applicant that is so determined, the director shall include in the application file a written confirmation of eligibility and any award of funds. An application made pursuant to the directors determination under this section may be evaluated solely on the basis of eligibility, need, benefit, or readiness, without regard to any specific rating criteria provided by Section 7078 of the California Code of Regulations. The awarding of funds to an applicant pursuant to the directors determination under this section does not exempt those funds from consideration under any expenditure requirement under law.
SEC. 2.Section 51335 of the Health and Safety Code is amended to read:51335.(a)(1)Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as described by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households. However, with approval of the board, the agency may waive the priority requirements for very low income households in designated geographic areas of the state upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
The rental payments on the units required for occupancy by very low income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 50 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households and very low income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit, or commencing September 1, 2016, utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter.
(2)The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A)Reductions in construction and design requirements.
(B)Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C)Granting density bonuses.
(D)Providing expedited processing of permits.
(E)Modifying zoning code requirements to allow mixed use zoning.
(F)Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G)Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H)Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3)The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b)As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d)(1)The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2)The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A)Utilize federal housing or development assistance.
(B)Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C)Are sponsored by a nonprofit housing organization.
(D)Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E)Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e)(1)New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2)The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
SEC. 3.Section 51340 of the Health and Safety Code is amended to read:51340.This chapter constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter.
SEC. 4.Nothing in this act shall be interpreted to modify the terms of any regulatory agreement recorded on or before August 31, 2016, including, but not limited to, terms that incorporate Section 51335 of the Health and Safety Code by reference.
SEC. 5.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
The lack of availability of affordable housing is of vital statewide importance and must be addressed as quickly as possible, and therefore this act must take immediate effect.
(a)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds set aside for economic development that shall be allocated to make economic development planning and technical assistance grants to eligible small cities or counties for business attraction, retention, and expansion programs for the development of local economic development strategies, predevelopment grant feasibility studies, and downtown revitalization programs. Eligible small cities or counties may contract with public agencies or nonprofit economic development corporations and other eligible subgrantees or for-profit corporations or entities to provide these services. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling, under Section 50832, or its ability to apply under the economic development or general program set-asides. The department shall determine and announce in the applicable NOFA the maximum per year grant amount. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year. Funds not applied for or allocated under this section may be used for other economic development purposes under Sections 50832 and 50832.1.
(b)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds not used for economic development that shall be set aside to make technical assistance grants to eligible small cities or counties for purposes including, but not limited to: inventory of housing needing rehabilitation in the district, income surveys of area residents, and any general studies of housing needs in the district. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling or its ability to apply under the economic development or general program set-asides. Unexpended funds allocated under this section shall revert to the general program, but not to the economic development set-aside. The department shall determine and announce in the applicable NOFA the maximum grant amount per application. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year.
(c)If, under federal law, the economic development planning and technical assistance grants and the general allocation planning and assistance grants are considered to be administrative expenditures, the department may reduce the percentages of the set-asides by up to the amount necessary to remain within the allowable limits for administrative expenditures.
(d)Two or more jurisdictions may pool their funds and make a joint application for the same project.
(e)General administrative activity planning studies shall not be counted against allocations under this section.
(f)The department may issue a NOFA under which the director may determine that an applicant with one or more current Community Development Block Grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement or agreements has not yet passed, is eligible to apply for and receive an award of, funds pursuant to this chapter, without regard to whether the applicant has expended at least 50 percent of Community Development Block Grant Funds awarded in 2012 or thereafter. For any applicant that is so determined, the director shall include in the application file a written confirmation of eligibility and any award of funds. An application made pursuant to the directors determination under this section may be evaluated solely on the basis of eligibility, need, benefit, or readiness, without regard to any specific rating criteria provided by Section 7078 of the California Code of Regulations. The awarding of funds to an applicant pursuant to the directors determination under this section does not exempt those funds from consideration under any expenditure requirement under law.
SEC. 2.Section 51335 of the Health and Safety Code is amended to read:51335.(a)(1)Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as described by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households. However, with approval of the board, the agency may waive the priority requirements for very low income households in designated geographic areas of the state upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
The rental payments on the units required for occupancy by very low income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 50 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households and very low income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit, or commencing September 1, 2016, utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter.
(2)The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A)Reductions in construction and design requirements.
(B)Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C)Granting density bonuses.
(D)Providing expedited processing of permits.
(E)Modifying zoning code requirements to allow mixed use zoning.
(F)Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G)Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H)Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3)The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b)As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d)(1)The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2)The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A)Utilize federal housing or development assistance.
(B)Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C)Are sponsored by a nonprofit housing organization.
(D)Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E)Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e)(1)New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2)The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
SEC. 3.Section 51340 of the Health and Safety Code is amended to read:51340.This chapter constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter.
SEC. 4.Nothing in this act shall be interpreted to modify the terms of any regulatory agreement recorded on or before August 31, 2016, including, but not limited to, terms that incorporate Section 51335 of the Health and Safety Code by reference.
SEC. 5.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
The lack of availability of affordable housing is of vital statewide importance and must be addressed as quickly as possible, and therefore this act must take immediate effect.
(a)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds set aside for economic development that shall be allocated to make economic development planning and technical assistance grants to eligible small cities or counties for business attraction, retention, and expansion programs for the development of local economic development strategies, predevelopment grant feasibility studies, and downtown revitalization programs. Eligible small cities or counties may contract with public agencies or nonprofit economic development corporations and other eligible subgrantees or for-profit corporations or entities to provide these services. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling, under Section 50832, or its ability to apply under the economic development or general program set-asides. The department shall determine and announce in the applicable NOFA the maximum per year grant amount. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year. Funds not applied for or allocated under this section may be used for other economic development purposes under Sections 50832 and 50832.1.
(b)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds not used for economic development that shall be set aside to make technical assistance grants to eligible small cities or counties for purposes including, but not limited to: inventory of housing needing rehabilitation in the district, income surveys of area residents, and any general studies of housing needs in the district. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling or its ability to apply under the economic development or general program set-asides. Unexpended funds allocated under this section shall revert to the general program, but not to the economic development set-aside. The department shall determine and announce in the applicable NOFA the maximum grant amount per application. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year.
(c)If, under federal law, the economic development planning and technical assistance grants and the general allocation planning and assistance grants are considered to be administrative expenditures, the department may reduce the percentages of the set-asides by up to the amount necessary to remain within the allowable limits for administrative expenditures.
(d)Two or more jurisdictions may pool their funds and make a joint application for the same project.
(e)General administrative activity planning studies shall not be counted against allocations under this section.
(f)The department may issue a NOFA under which the director may determine that an applicant with one or more current Community Development Block Grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement or agreements has not yet passed, is eligible to apply for and receive an award of, funds pursuant to this chapter, without regard to whether the applicant has expended at least 50 percent of Community Development Block Grant Funds awarded in 2012 or thereafter. For any applicant that is so determined, the director shall include in the application file a written confirmation of eligibility and any award of funds. An application made pursuant to the directors determination under this section may be evaluated solely on the basis of eligibility, need, benefit, or readiness, without regard to any specific rating criteria provided by Section 7078 of the California Code of Regulations. The awarding of funds to an applicant pursuant to the directors determination under this section does not exempt those funds from consideration under any expenditure requirement under law.
SEC. 2.Section 51335 of the Health and Safety Code is amended to read:51335.(a)(1)Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as described by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households. However, with approval of the board, the agency may waive the priority requirements for very low income households in designated geographic areas of the state upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
The rental payments on the units required for occupancy by lower very low income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 80 50 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households and very low income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit, or commencing September 1, 2016, utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter.
(2)The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A)Reductions in construction and design requirements.
(B)Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C)Granting density bonuses.
(D)Providing expedited processing of permits.
(E)Modifying zoning code requirements to allow mixed use zoning.
(F)Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G)Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H)Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3)The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b)As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d)(1)The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2)The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A)Utilize federal housing or development assistance.
(B)Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C)Are sponsored by a nonprofit housing organization.
(D)Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E)Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e)(1)New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2)The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
SEC. 3.Section 51340 of the Health and Safety Code is amended to read:51340.This chapter constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter.
SEC. 4.Nothing in this act shall be interpreted to modify the terms of any regulatory agreement recorded on or before August 31, 2016, including, but not limited to, terms that incorporate Section 51335 of the Health and Safety Code by reference.
SEC. 4.SEC. 5.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
The lack of availability of affordable housing is of vital statewide importance and must be addressed as quickly as possible, and therefore this act must take immediate effect.
(a)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds set aside for economic development that shall be allocated to make economic development planning and technical assistance grants to eligible small cities or counties for business attraction, retention, and expansion programs for the development of local economic development strategies, predevelopment grant feasibility studies, and downtown revitalization programs. Eligible small cities or counties may contract with public agencies or nonprofit economic development corporations and other eligible subgrantees or for-profit corporations or entities to provide these services. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling, under Section 50832, or its ability to apply under the economic development or general program set-asides. The department shall determine and announce in the applicable NOFA the maximum per year grant amount. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year. Funds not applied for or allocated under this section may be used for other economic development purposes under Sections 50832 and 50832.1.
(b)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds not used for economic development that shall be set aside to make technical assistance grants to eligible small cities or counties for purposes including, but not limited to: inventory of housing needing rehabilitation in the district, income surveys of area residents, and any general studies of housing needs in the district. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling or its ability to apply under the economic development or general program set-asides. Unexpended funds allocated under this section shall revert to the general program, but not to the economic development set-aside. The department shall determine and announce in the applicable NOFA the maximum grant amount per application. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year.
(c)If, under federal law, the economic development planning and technical assistance grants and the general allocation planning and assistance grants are considered to be administrative expenditures, the department may reduce the percentages of the set-asides by up to the amount necessary to remain within the allowable limits for administrative expenditures.
(d)Two or more jurisdictions may pool their funds and make a joint application for the same project.
(e)General administrative activity planning studies shall not be counted against allocations under this section.
(f)The department may issue a NOFA under which the director may determine that an applicant with one or more current Community Development Block Grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement or agreements has not yet passed, is eligible to apply for and receive an award of, funds pursuant to this chapter, without regard to whether the applicant has expended at least 50 percent of Community Development Block Grant Funds awarded in 2012 or thereafter. For any applicant that is so determined, the director shall include in the application file a written confirmation of eligibility and any award of funds. An application made pursuant to the directors determination under this section may be evaluated solely on the basis of eligibility, need, benefit, or readiness, without regard to any specific rating criteria provided by Section 7078 of the California Code of Regulations. The awarding of funds to an applicant pursuant to the directors determination under this section does not exempt those funds from consideration under any expenditure requirement under law.
SEC. 2.Section 51335 of the Health and Safety Code is amended to read:51335.(a)(1)Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as described by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households. However, with approval of the board, the agency may waive the priority requirements for very low income households in designated geographic areas of the state upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
The rental payments on the units required for occupancy by lower income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 80 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit, or utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter.
(2)The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A)Reductions in construction and design requirements.
(B)Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C)Granting density bonuses.
(D)Providing expedited processing of permits.
(E)Modifying zoning code requirements to allow mixed use zoning.
(F)Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G)Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H)Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3)The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5)It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b)As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d)(1)The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2)The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A)Utilize federal housing or development assistance.
(B)Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C)Are sponsored by a nonprofit housing organization.
(D)Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E)Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e)(1)New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2)The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
SEC. 3.Section 51340 of the Health and Safety Code is amended to read:51340.This chapter constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
The lack of availability of affordable housing is of vital statewide importance and must be addressed as quickly as possible, and therefore this act must take immediate effect.
(a)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds set aside for economic development that shall be allocated to make economic development planning and technical assistance grants to eligible small cities or counties for business attraction, retention, and expansion programs for the development of local economic development strategies, predevelopment grant feasibility studies, and downtown revitalization programs. Eligible small cities or counties may contract with public agencies or nonprofit economic development corporations and other eligible subgrantees or for-profit corporations or entities to provide these services. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling, under Section 50832, or its ability to apply under the economic development or general program set-asides. The department shall determine and announce in the applicable NOFA the maximum per year grant amount. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year. Funds not applied for or allocated under this section may be used for other economic development purposes under Sections 50832 and 50832.1.
(b)The department shall determine and announce in the applicable NOFA the percentage of the total amount of the State Block Grant Program funds not used for economic development that shall be set aside to make technical assistance grants to eligible small cities or counties for purposes including, but not limited to: inventory of housing needing rehabilitation in the district, income surveys of area residents, and any general studies of housing needs in the district. Each applicant shall be required to provide a cash match of up to 25 percent of the total amount requested. A technical assistance grant received under this set-aside is in addition to the city or county ceiling or its ability to apply under the economic development or general program set-asides. Unexpended funds allocated under this section shall revert to the general program, but not to the economic development set-aside. The department shall determine and announce in the applicable NOFA the maximum grant amount per application. Each applicant shall not receive more than two grants per year and shall be eligible to apply each year, although no applicant shall receive grants in excess of the maximum amount determined by the department and announced in the applicable NOFA in any one year.
(c)If, under federal law, the economic development planning and technical assistance grants and the general allocation planning and assistance grants are considered to be administrative expenditures, the department may reduce the percentages of the set-asides by up to the amount necessary to remain within the allowable limits for administrative expenditures.
(d)Two or more jurisdictions may pool their funds and make a joint application for the same project.
(e)General administrative activity planning studies shall not be counted against allocations under this section.
(f)The department may issue a NOFA under which the director may determine that an applicant with one or more current Community Development Block Grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement or agreements has not yet passed, is eligible to apply for and receive an award of, funds pursuant to this chapter, without regard to whether the applicant has expended at least 50 percent of Community Development Block Grant Funds awarded in 2012 or thereafter. For any applicant that is so determined, the director shall include in the application file a written confirmation of eligibility and any award of funds. An application made pursuant to the directors determination under this section may be evaluated solely on the basis of eligibility, need, benefit, or readiness, without regard to any specific rating criteria provided by Section 7078 of the California Code of Regulations. The awarding of funds to an applicant pursuant to the directors determination under this section does not exempt those funds from consideration under any expenditure requirement under law.
SEC. 2.Section 51335 of the Health and Safety Code is amended to read:51335.(a) (1) Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter from the proceeds of sale of each bond issuance of the agency shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as defined by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households.
The rental payments on the units required for occupancy by very low lower income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 50 80 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households and very low income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit. unit, or utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter.
(2) The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following:
(A) Reductions in construction and design requirements.
(B) Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required.
(C) Granting density bonuses.
(D) Providing expedited processing of permits.
(E) Modifying zoning code requirements to allow mixed use zoning.
(F) Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges.
(G) Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities.
(H) Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households.
(3) The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants.
(4) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986.
(5) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments.
(b) As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee.
(c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants.
(d) (1) The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development.
(2) The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following:
(A) Utilize federal housing or development assistance.
(B) Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced.
(C) Are sponsored by a nonprofit housing organization.
(D) Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government.
(E) Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years.
(e) (1) New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section.
(2) The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement.
(f) At the option of the agency, the amendments to this section made by Chapter 907 of the Statutes of 1983 may be made applicable to any multifamily rental housing development financed by the issuance, on or after September 3, 1982, of bonds authorized by this chapter.
SEC. 3.Section 51340 of the Health and Safety Code is amended to read:51340.This chapter constitutes an alternative method to issue bonds for making finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
The lack of availability of affordable housing is of vital statewide importance and must be addressed as quickly as possible, and therefore this act must take immediate effect.
SECTION 1.Section 1101.4 of the Civil Code is amended to read:1101.4.(a)On and after January 1, 2014, for all building alterations or improvements to single-family residential real property, as a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department, the permit applicant shall replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures.
(b)On or before January 1, 2017, noncompliant plumbing fixtures in any single-family residential real property shall be replaced by the property owner with water-conserving plumbing fixtures.
(c)On and after January 1, 2017, a seller or transferor of single-family residential real property shall disclose in writing to the prospective purchaser or transferee the requirements of subdivision (b) and whether the real property includes any noncompliant plumbing fixtures.
(d)The lease or rental agreement of any single-family residential real property that is entered into, renewed, or amended on or after July 1, 2016, shall be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017.
(e)The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (d):
Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property, or commercial property may not comply with Sections 1101.4 and 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017, or January 1, 2019.
(f)Single-family residential real properties in compliance with subdivision (a) or (b) shall not be required to comply with the notice requirement prescribed by subdivision (d).
SEC. 2.Section 1101.5 of the Civil Code is amended to read:1101.5.(a)On or before January 1, 2019, all noncompliant plumbing fixtures in any multifamily residential real property and in any commercial real property shall be replaced with water-conserving plumbing fixtures.
(b)An owner or the owners agent may enter the owners property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with notice requirements of Section 1954.
(c)On and after January 1, 2019, the water-conserving plumbing fixtures required by this section shall be operating at the manufacturers rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owners agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturers rated water consumption. The owner or owners agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owners agent.
(d)(1)On and after January 1, 2014, all noncompliant plumbing fixtures in any multifamily residential real property and any commercial real property shall be replaced with water-conserving plumbing fixtures in the following circumstances:
(A)For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.
(B)For building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.
(C)Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.
(2)Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.
(e)On and after January 1, 2019, a seller or transferor of multifamily residential real property or of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (a) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional documents.
(f)The lease or rental agreement of any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended on or after January 1, 2017, shall be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2019.
(g)The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (f):
Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property, or commercial property may not comply with Sections 1101.4 of 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017, or January 1, 2019.
(h)Multifamily residential real properties and commercial real properties in compliance with subdivision (a) or (d), and commercial real properties without plumbing fixtures, shall not be required to comply with the notice requirements prescribed by subdivision (f).
(a)On and after January 1, 2014, for all building alterations or improvements to single-family residential real property, as a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department, the permit applicant shall replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures.
(b)On or before January 1, 2017, noncompliant plumbing fixtures in any single-family residential real property shall be replaced by the property owner with water-conserving plumbing fixtures.
(c)On and after January 1, 2017, a seller or transferor of single-family residential real property shall disclose in writing to the prospective purchaser or transferee the requirements of subdivision (b) and whether the real property includes any noncompliant plumbing fixtures.
(d)The lease or rental agreement of any single-family residential real property that is entered into, renewed, or amended on or after January July 1, 2016, shall contain a provision in which the property owner shall state his or her be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017. That provision may be enforced by a city, county, city and county, water supplier, or any other party.
(e)The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (d):
Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property, or commercial property may not comply with Sections 1101.4 and 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017, or January 1, 2019.
(f)Single-family residential real properties in compliance with subdivision (a) or (b) shall not be required to comply with the notice requirement prescribed by subdivision (d).
SEC. 2.Section 1101.5 of the Civil Code is amended to read:1101.5.(a)On or before January 1, 2019, all noncompliant plumbing fixtures in any multifamily residential real property and in any commercial real property shall be replaced with water-conserving plumbing fixtures.
(b)An owner or the owners agent may enter the owners property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with notice requirements of Section 1954.
(c)On and after January 1, 2019, the water-conserving plumbing fixtures required by this section shall be operating at the manufacturers rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owners agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturers rated water consumption. The owner or owners agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owners agent.
(d)(1)On and after January 1, 2014, all noncompliant plumbing fixtures in any multifamily residential real property and any commercial real property shall be replaced with water-conserving plumbing fixtures in the following circumstances:
(A)For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.
(B)For building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.
(C)Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.
(2)Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.
(e)On and after January 1, 2019, a seller or transferor of multifamily residential real property or of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (a) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional documents.
(f)The lease or rental agreement of any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended on or after January 1, 2016, 2017, shall contain a provision in which the property owner shall state his or her be accompanied by a written disclosure stating the property owners responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2019. That provision may be enforced by a city, county, city and county, water supplier, or any other party.
(g)The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (f):
Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property, or commercial property may not comply with Sections 1101.4 of 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017, or January 1, 2019.
(h)Multifamily residential real properties and commercial real properties in compliance with subdivision (a) or (d), and commercial real properties without plumbing fixtures, shall not be required to comply with the notice requirements prescribed by subdivision (f).
TextPage 5.(a)On and after January 1, 2014, for all building alterations or improvements to single-family residential real property, as a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department, the permit applicant shall replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures.
(b)On or before January 1, 2017, noncompliant plumbing fixtures in any single-family residential real property shall be replaced by the property owner with water-conserving plumbing fixtures.
(c)On and after January 1, 2017, a seller or transferor of single-family residential real property shall disclose in writing to the prospective purchaser or transferee the requirements of subdivision (b) and whether the real property includes any noncompliant plumbing fixtures.
(d)The lease of any single-family residential real property that is entered into, renewed, or amended on or after January 1, 2016, shall contain a provision in which the property owner shall state his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017. That provision may be enforced by a city, county, city and county, water supplier, or any other party.
SEC. 2.Section 1101.5 of the Civil Code is amended to read:1101.5.(a)On or before January 1, 2019, all noncompliant plumbing fixtures in any multifamily residential real property and in any commercial real property shall be replaced with water-conserving plumbing fixtures.
(b)An owner or the owners agent may enter the owners property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with notice requirements of Section 1954.
(c)On and after January 1, 2019, the water-conserving plumbing fixtures required by this section shall be operating at the manufacturers rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owners agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturers rated water consumption. The owner or owners agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owners agent.
(d)(1)On and after January 1, 2014, all noncompliant plumbing fixtures in any multifamily residential real property and any commercial real property shall be replaced with water-conserving plumbing fixtures in the following circumstances:
(A)For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.
(B)For building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.
(C)Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.
(2)Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.
(e)On and after January 1, 2019, a seller or transferor of multifamily residential real property or of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (a) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional documents.
(f)The lease of any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended on or after January 1, 2016, shall contain a provision in which the property owner shall state his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2019. That provision may be enforced by a city, county, city and county, water supplier, or any other party.
SECTION 1.Section 17921.2 is added to the Health and Safety Code, to read:17921.2.When setting plumbing fixture water efficiency standards, the California Energy Commission shall consider the performance requirements established by the United States Environmental Protection Agency WaterSense standards.
When setting plumbing fixture water efficiency standards, the California Energy Commission shall consider the performance requirements established by the United States Environmental Protection Agency WaterSense standards.
SECTION 1.Section 17921.3 of the Health and Safety Code is amended to read:17921.3.(a)Notwithstanding any other law, all tank type water closets, urinals, residential lavatory faucets, and showerheads installed or sold in this state shall meet performance, testing, and labeling requirements established by the United States Environmental Protection Agency (EPA) WaterSense standards, as applicable. No other marking and labeling requirements shall be required by the state. All water closets, urinals, residential lavatory faucets, and showerheads installed or sold in this state shall be listed by an EPA accredited third-party certification agency to the appropriate WaterSense standards set forth in this subdivision. No other listing or certification requirements shall be required by the state.
(b)(1)All tank type water closets sold or installed in this state shall use no more than an average of 1.28 gallons per flush. On and after January 1, 2017, all tank type water closets, other than institutional water closets, sold or installed in this state shall be high-efficiency WaterSense certified water closets.
(2)All urinals sold or installed in this state shall use no more than an average of one-half gallon per flush. On and after January 1, 2017, all urinals, other than blow-out urinals, sold or installed in this state shall be WaterSense certified urinals.
(3)All lavatory faucets sold or installed in this state shall use no more than an average of 1.5 gallons per minute. On and after January 1, 2017, all lavatory faucets, other than institutional faucets, sold or installed in this state shall be WaterSense certified lavatory faucets.
(4)All showerheads sold or installed in this state shall use no more than an average of two gallons per minute. On and after January 1, 2017, all showerheads, other than institutional shower heads, sold or installed in this state shall be WaterSense certified showerheads.
(c)(1)This section does not preempt any actions of cities, counties, cities and counties, or districts that prescribe additional or more restrictive conservation requirements affecting water closets, urinals, bathroom faucets, and showerheads.
(2)This section does not grant any new or additional powers to cities, counties, cities and counties, or districts to promulgate or establish laws, ordinances, regulations, or rules governing the sale, installation, or use of low-consumption water closets, urinals, bathroom faucets, and showerheads.
(d)The California Building Standards Commission or the department may, by regulation, reduce the quantity of water per flush or flow per minute required pursuant to this section if deemed appropriate or not inconsistent in light of other standards referenced in the most recent version of the California Plumbing Code, and may refer to successor standards to the standards referenced in this section if determined appropriate in light of standards referenced in the most recent version of the California Plumbing Code.
(e)As used in this section, the following terms have the following meanings:
(1)Blow-out urinal means a urinal designed for heavy-duty commercial applications that work on a powerful nonsiphonic principle.
(2)WaterSense certified bathroom faucet means a residential lavatory faucet with a maximum flow of 1.5 gallons per minute.
(3)WaterSense certified showerhead means a showerhead with a maximum flow of 2 gallons per minute.
(4)A WaterSense certified water closet means a water closet with an effective flush volume that does not exceed 1.28 gallons. Flush volumes shall be tested in accordance with ANSI Standard ASME A112.19.2/CSA B45.1 and ANSI Standard ASME A112.19.14.
(5)WaterSense certified urinal means a urinal that uses no more than 0.5 gallons per flush, and is tested in accordance with ANSI Standard ASME A112.19.2/CSA B45.1 or ANSI Standard CSA B45.5/IAPMO Z124.
(6)Institutional water closet means any water closet fixture with a design not typically found in residential or commercial applications or that is designed for a specialized application, including, but not limited to, wall-mounted floor-outlet water closets, water closets used in jails or prisons, water closets in hospitals and other medical care operations, water closets used in bariatrics applications, and child water closets used in day care facilities.
(7)Urinal means a water-using urinal.
(f)For purposes of this section, all consumption values shall be determined by the test procedures contained in the WaterSense standards established by the EPA.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Notwithstanding any other law, all tank type water closets, urinals, bathroom residential lavatory faucets, and shower heads showerheads installed or sold in this state shall meet performance, testing, and labeling requirements established by the United States Environmental Protection Agency (EPA) WaterSense standards, as applicable. No other marking and labeling requirements shall be required by the state. All water closets, urinals, bathroom residential lavatory faucets, and shower heads showerheads installed or sold in this state shall be listed by an EPA accredited third-party certification agency to the appropriate WaterSense standards set forth in this subdivision. No other listing or certification requirements shall be required by the state.
(b)(1)All tank type water closets sold or installed in this state shall use no more than an average of 1.28 gallons per flush. On and after January 1, 2017, all tank type water closets, other than institutional water closets, sold or installed in this state shall be high-efficiency WaterSense certified water closets.
(2)All urinals sold or installed in this state shall use no more than an average of one-half gallon per flush. On and after January 1, 2017, all urinals, other than blow-out urinals, sold or installed in this state shall be WaterSense certified urinals.
(3)All bathroom lavatory faucets sold or installed in this state shall use no more than an average of 1.5 gallons per minute. On and after January 1, 2017, all bathroom lavatory faucets, other than institutional bathroom faucets, sold or installed in this state shall be WaterSense certified bathroom lavatory faucets.
(4)All shower heads showerheads sold or installed in this state shall use no more than an average of two gallons per minute. On and after January 1, 2017, all shower heads showerheads, other than institutional shower heads, sold or installed in this state shall be WaterSense certified shower heads showerheads.
(c)Each manufacturer that sells water closets or urinals in this state shall inform the State Energy Resources Conservation and Development Commission, the department, and the California Building Standards Commission, in writing, of the percentage of models of high-efficiency water closets plus high-efficiency urinals offered for sale in this state as compared to the total number of models of water closets plus urinals offered for sale in this state by that manufacturer for each year 2010 to 2013, inclusive, by January 30 of that year.
(d)
(c)(1)This section does not preempt any actions of cities, counties, cities and counties, or districts that prescribe additional or more restrictive conservation requirements affecting water closets, urinals, bathroom faucets, and shower heads. showerheads.
(2)This section does not grant any new or additional powers to cities, counties, cities and counties, or districts to promulgate or establish laws, ordinances, regulations, or rules governing the sale, installation, or use of low-consumption water closets, urinals, bathroom faucets, and shower heads showerheads.
(e)
(d)The California Building Standards Commission or the department may, by regulation, reduce the quantity of water per flush or flow per minute required pursuant to this section if deemed appropriate or not inconsistent in light of other standards referenced in the most recent version of the California Plumbing Code, and may refer to successor standards to the standards referenced in this section if determined appropriate in light of standards referenced in the most recent version of the California Plumbing Code.
(f)
(e)As used in this section, the following terms have the following meanings:
(1)Blow-out urinal means a urinal designed for heavy-duty commercial applications that work on a powerful nonsiphonic principle.
(2)WaterSense certified bathroom faucet means a residential lavatory faucet with a maximum flow of 1.5 gallons per minute.
(3)WaterSense certified showerhead means a shower head showerhead with a maximum flow of 2 gallons per minute.
(4)A WaterSense certified water closet means a water closet with an effective flush volume that does not exceed 1.28 gallons. Flush volumes shall be tested in accordance with ANSI Standard ASME A112.19.2/CSA B45.1 and ANSI Standard ASME A112.19.14.
(5)WaterSense certified urinal means a urinal that uses no more than 0.5 gallons per flush. flush, and is tested in accordance with ANSI Standard ASME A112.19.2/CSA B45.1 or ANSI Standard CSA B45.5/IAPMO Z124.
(6)Institutional water closet means any water closet fixture with a design not typically found in residential or commercial applications or that is designed for a specialized application, including, but not limited to, wall-mounted floor-outlet water closets, water closets used in jails or prisons, water closets in hospitals and other medical care operations, water closets used in bariatrics applications, and child water closets used in day care facilities.
(7)Urinal means a water-using urinal.
(g)
(f)For purposes of this section, all consumption values shall be determined by the test procedures contained in the WaterSense standards established by the EPA.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)All water closets and urinals Notwithstanding any other law, all water closets, urinals, bathroom faucets, and shower heads installed or sold in this state shall meet performance, testing, and labeling requirements established by the American Society of Mechanical Engineers standard A112.19.2-2003, or A112.19.14-2001, United States Environmental Protection Agency (EPA) WaterSense standards, as applicable. No other marking and labeling requirements shall be required by the state. All water closets and urinals water closets, urinals, bathroom faucets, and shower heads installed or sold in this state shall be listed by an American National Standards Institute EPA accredited third-party certification agency to the appropriate American Society of Mechanical Engineers WaterSense standards set forth in this subdivision. No other listing or certification requirements shall be required by the state.
(b)(1)All water closets sold or installed in this state shall use no more than an average of 1.6 1.28 gallons per flush. On and after January 1, 2014, 2017, all water closets, other than institutional water closets, sold or installed in this state shall be high-efficiency WaterSense certified water closets.
(2)All urinals sold or installed in this state shall use no more than an average of one one-half gallon per flush. On and after January 1, 2014, 2017, all urinals, other than blow-out urinals, sold or installed in this state shall be high-efficiency WaterSense certified urinals.
(3)Each manufacturer selling water closets or urinals in this state shall have not less than the following percentage of models offered for sale in this state of high-efficiency water closets plus high-efficiency urinals as compared to the total number of models of water closets plus urinals offered for sale in this state by that manufacturer:
(A)Fifty percent in 2010.
(B)Sixty-seven percent in 2011.
(C)Seventy-five percent in 2012.
(D)Eighty-five percent in 2013.
(E)One hundred percent in 2014 and thereafter.
(3)All bathroom faucets sold or installed in this state shall use no more than an average of 1.5 gallons per minute. On and after January 1, 2017, all bathroom faucets, other than institutional bathroom faucets, sold or installed in this state shall be WaterSense certified bathroom faucets.
(4)All shower heads sold or installed in this state shall use no more than an average of two gallons per minute. On and after January 1, 2017, all shower heads, other than institutional shower heads, sold or installed in this state shall be WaterSense certified shower heads.
(4)
(c)Each manufacturer that sells water closets or urinals in this state shall inform the State Energy Resources Conservation and Development Commission, the department, and the California Building Standards Commission, in writing, of the percentage of models of high-efficiency water closets plus high-efficiency urinals offered for sale in this state as compared to the total number of models of water closets plus urinals offered for sale in this state by that manufacturer for each year 2010 to 2013, inclusive, by January 30 of that year.
(c)Any city, county, or city and county may enact an ordinance to allow the sale and installation of nonlow-consumption water closets or urinals upon its determination that the unique configuration of building drainage systems or portions of a public sewer system within the jurisdiction, or both, requires a greater quantity of water to flush the system in a manner consistent with public health. At the request of a public agency providing sewer services within the jurisdiction, the city, county, or city and county shall hold a public hearing on the need for an ordinance as provided in this subdivision. Prior to this hearing or to the enactment of the ordinance, those agencies responsible for the provision of water and sewer services within the jurisdiction, if other than the agency considering adoption of the ordinance, shall be given at least 30 days notice of the meeting at which the ordinance may be considered or adopted.
(d)Notwithstanding subdivision (b), on and after January 1, 1994, water closets and urinals that do not meet the standards referenced in subdivision (b) may be sold or installed for use only under either of the following circumstances:
(1)Installation of the water closet or urinal to comply with the standards referenced in subdivision (b) would require modifications to plumbing system components located beneath a finished wall or surface.
(2)The nonlow-consumption water closets, urinals, and flushometer valves, if any, would be installed in a home or building that has been identified by a local, state, or federal governmental entity as a historical site and historically accurate water closets and urinals that comply with the flush volumes specified in subdivision (b) are not available.
(c)
(d)(1)This section does not preempt any actions of cities, counties, cities and counties, or districts that prescribe additional or more restrictive conservation requirements affecting either of the following: water closets, urinals, bathroom faucets, and shower heads.
(A)The sale, installation, or use of low-consumption water closets, urinals, and flushometer valves that meet the standards referenced in subdivision (a), (b), or (c).
(B)The continued use of nonlow-consumption water closets, urinals, and flushometer valves.
(2)This section does not grant any new or additional powers to cities, counties, cities and counties, or districts to promulgate or establish laws, ordinances, regulations, or rules governing the sale, installation, or use of low-consumption water closets, urinals, and flushometer valves. bathroom faucets, and shower heads.
(f)
(e)The California Building Standards Commission or the department may, by regulation, reduce the quantity of water per flush or flow per minute required pursuant to this section if deemed appropriate or not inconsistent in light of other standards referenced in the most recent version of the California Plumbing Code, and may refer to successor standards to the standards referenced in this section if determined appropriate in light of standards referenced in the most recent version of the California Plumbing Code.
(g)
(f)As used in this section, the following terms have the following meanings:
(1)Blow-out urinal means a urinal designed for heavy-duty commercial applications that work on a powerful nonsiphonic principle.
(2)High-efficiency water closet means a water closet that is either of the following:
(2)WaterSense certified bathroom faucet means a faucet with a maximum flow of 1.5 gallons per minute.
(3)WaterSense certified showerhead means a shower head with a maximum flow of 2 gallons per minute.
(A)A dual flush
(4)A WaterSense certified water closet closet means a water closet with an effective flush volume that does not exceed 1.28 gallons, where effective flush volume is defined as the composite, average flush volume of two reduced flushes and one full flush. Flush volumes shall be tested in accordance with ASME A112.19.2 and ASME A112.19.14 gallons.
(B)A single flush water closet where the effective flush volume shall not exceed 1.28 gallons. The effective flush volume is the average flush volume when tested in accordance with ASME A112.19.2.
(3)High-efficiency
(5)WaterSense certified urinal means a urinal that uses no more than 0.5 gallons per flush.
(4)
(6)Institutional water closet means any water closet fixture with a design not typically found in residential or commercial applications or that is designed for a specialized application, including, but not limited to, wall-mounted floor-outlet water closets, water closets used in jails or prisons, water closets used in bariatrics applications, and child water closets used in day care facilities.
(5)Nonlow-consumption flushometer valve, nonlow-consumption urinal, and nonlow-consumption water closet mean devices that use more than 1.6 gallons per flush for toilets and more than 1.0 gallons per flush for urinals.
(6)
(7)Urinal means a water-using urinal.
(7)Wall-mounted/wall-outlet water closets means models that are mounted on the wall and discharge to the drainage system through the wall.
(h)
(g)For purposes of this section, all consumption values shall be determined by the test procedures contained in the American Society of Mechanical Engineers standard A112.19.2-2003 or A112.19.14-2001. WaterSense standards established by the EPA.
(i)This section shall remain operative only until January 1, 2014, or until the date on which the California Building Standards Commission includes standards in the California Building Standards Code that conform to this section, whichever date is later.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Aug 19, 2016 | Read second time. Ordered to third reading. |
| Aug 2, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Aug 3, 2016 | Re-referred to Com. on RLS. |
| Aug 3, 2016 | Withdrawn from committee. |
| Aug 4, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on T. & H. |
| Aug 4, 2016 | Re-referred to Com. on T. & H. |
| Aug 9, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (August 9). Re-referred to Com. on APPR. |
| Aug 11, 2016 | From committee: Do pass. (Ayes 7. Noes 0.) (August 11). |
| Aug 11, 2016 | In committee: Referred to APPR. suspense file. |
| Aug 15, 2016 | Read second time. Ordered to third reading. |
| Aug 18, 2016 | Read third time and amended. Ordered to second reading. |
| Aug 17, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Aug 23, 2016 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. |
| Aug 23, 2016 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5264.). |
| Aug 24, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77. |
| Aug 24, 2016 | Joint Rule 62(a), file notice suspended. |
| Aug 24, 2016 | Joint Rule 62(a), file notice suspended. (Page 6225.) |
| Aug 24, 2016 | Re-referred to Com. on H. & C.D. pursuant to Assembly Rule 77.2. |
| Aug 25, 2016 | From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) . |
| Aug 30, 2016 | Urgency clause adopted. Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 30, 2016 | Urgency clause adopted. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 6424.). |
| Sep 8, 2016 | Enrolled and presented to the Governor at 4 p.m. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. |
| Feb 26, 2015 | From printer. May be heard in committee March 28. |
| Mar 12, 2015 | Referred to Com. on H. & C.D. |
| Apr 16, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 20, 2015 | Re-referred to Com. on H. & C.D. |
| Apr 29, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 29). |
| Apr 30, 2015 | Read second time and amended. |
| May 4, 2015 | Re-referred to Com. on APPR. |
| May 27, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 27). |
| May 28, 2015 | Read second time. Ordered to Consent Calendar. |
| Jun 2, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Feb 25, 2015 | Read first time. To print. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1817.) |
| Jun 11, 2015 | Referred to Com. on E., U., & C. |
| Jun 23, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U., & C. |
| Jun 24, 2015 | Re-referred to Com. on RLS. |
| Jun 24, 2015 | Withdrawn from committee. |
| Jun 29, 2015 | Re-referred to Com. on JUD. |
| Jul 15, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (July 14). |
| Jul 16, 2015 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 27, 2015 | Measure version as amended on July 16 corrected. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2016 | AB 723 CHIU Concurrence - Urgency Added | Assembly Floor |
Passed |
|
| Aug 25, 2016 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Aug 23, 2016 | Assembly 3rd Reading AB723 Chiu By Beall Urgency Clause | Senate Floor |
Passed |
|
| Aug 11, 2016 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 11, 2016 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 9, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Transportation and Housing |
Passed |
|
| Jul 14, 2015 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Judiciary |
Passed |
|
| Jun 2, 2015 | AB 723 RENDON Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 27, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | 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.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Apartment Association of Greater Los Angeles | * Indeterminate | Jul 14, 2015 |
| California Association of Counties | ** Support | Aug 30, 2016 |
| California Association Of Realtors | * Neutral | Jul 14, 2015 |
| California Business Properties Association | * Indeterminate | Jul 14, 2015 |
| California Municipal Utilities Association | ** Support | Apr 29, 2015 |
| City of Dublin | ** Support | Aug 30, 2016 |
| League Of California Cities | ** Support | Aug 23, 2016 |
| San Diego County Apartment Association | * Against Unless Amend | Jul 14, 2015 |
| Santa Barbara Rental Property Association | * Indeterminate | Jul 14, 2015 |
| Santa Monica, City Of | ** Support | Aug 30, 2016 |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 723
Author:(Chiu and Thurmond)
As Amended Ver:August 18, 2016
2/3 vote. Urgency
ASSEMBLY: | 78-0 | (June 2, 2015) | SENATE: | 39-0 | (August 23, 2016) |
COMMITTEE VOTE: | 7-0 | (August 25, 2016) | RECOMMENDATION: | concur |
(H & C.D.)
Original Committee Reference: H. & C.D.
SUMMARY: This bill permits the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, signed in 2012 or later, to apply for and receive an award of funds, at the determination of the HCD director, without regard to whether the applicant has expended at least 50% of their existing awards, and makes changes to California Housing Finance Agency (CalHFA) statutes.
The Senate amendments delete the Assembly version of this bill, and instead:
- Permit HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least 50% of their existing awards. The awarding of funds under these circumstances shall be determined by the HCD director and evaluated on the basis of eligibility, need, benefit, or readiness.
- Give CalHFA the option, after September 1, 2016 to adjust rents for household size, utilizing occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Give the CalHFA board of directors discretion to waive the priority requirements for very low-income households in designated geographic areas upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
- Remove existing references to the use of the sale of bond proceeds to finance CalHFA programs.
- Add an urgency.
FISCAL EFFECT: According to the Senate Appropriations Committee:
- Accelerated expenditure of CDBG funds, likely in the tens of millions annually over several years (federal funds). Staff notes that current regulations appear to be preventing the expenditure of current available federal funds. Absent the bill, future allocations of federal funding may be at risk.
- Minor and absorbable administrative costs to HCD (General Fund) and CalHFA (special funds).
COMMENTS:
CDBG Program. The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). Among the many uses of CDBG funds are infrastructure improvements and activities in support of the construction of housing for persons of low and moderate income.
Congress amended the HCD Act in 1981 to give each state the opportunity to administer CDBG funds for small cities and counties, called "non-entitlement areas." Eligible applicants in "non-entitlement areas" include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year, including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
According to HUD, California currently has five times its most recent grant amount (i.e., $114 million) in balance in the state's CDBG line of credit, which HUD calls "unprecedented." HCD attributes this backlog of unspent funds to the "50% rule." The rule, a state regulation, states that a jurisdiction has to have spent 50% of its program funds before drawing down new funds. This rule was put in place to prevent some local jurisdictions from "sitting on their funds" rather than expending them.
Despite best efforts, some jurisdictions have been unable to expend their awards below the 50% requirement, precluding them from even applying for new funds. HCD believes that the build-up of state funds has occurred for a number of reasons, including the recession; that some projects take longer than others; and that some delayed projects may make up a large share of the funds held by a jurisdiction. While there is no federal rule which requires HCD to expend its grant amount, federal funds are dispensed on a needs basis; if these funds are not expended, California runs the risk of losing future federal funds.
This bill provides that jurisdictions that do not meet the requirements of the 50% rule may apply for additional CDBG funds. These jurisdictions would be eligible to apply for and draw down from the $114 million balance of funds. These applications would be evaluated based upon eligibility, need, benefit, and readiness and would be determined by the HCD director. This bill does not guarantee an award, but merely provides jurisdictions the opportunity to apply for additional funds.
California Housing Finance Agency (CalHFA). CalHFA is the state's affordable housing lender. CalHFA funds its programs by issuing bonds and then repays the bonds with loan proceeds. The agency is completely self-supporting and receives no General Fund money. The agency provides low interest rate mortgages to low and moderate income homebuyers in California, as well as down payment and closing costs assistance. Since inception, CalHFA has provided $19.6 billion in mortgages to 153,000 first-time homebuyers. CalHFA loans are used for the acquisition, rehabilitation and permanent financing to preserve, maintain and increase the supply of affordable multi-family rental housing. Since its creation, CalHFA has made $192 million in loans for affordable housing.
Purpose. According to the author, HCD has approximately $114 million in CDBG funding that can be used at the local level for infrastructure projects and housing construction. This backlog of unspent funds is a result of a regulation adopted by HCD requiring that a city or county spend 50% of their program funds before drawing down new funds. Since some projects take longer than others, this has become a barrier. To expedite the release of these funds to worthy projects, this bill allows HCD to make grants to cities and counties that have not spent down 50% of an existing grant before receiving new funding without making a regulatory change.
This bill also modernizes CalHFA's occupancy standards to make them consistent with other state housing programs, including the low-income housing tax credit program. In addition, this bill gives CalHFA the flexibility to participate in the funding of projects that reserve at least 20% of their units for households serving between 60-80% area median income (AMI). This change allows CalHFA to participate in financing more mixed-income projects. The subsidies needed for these projects will not be as deep as those needed for lower income housing, and will also contain a percentage of market-rate units that do not need subsidy. This subset of low-income households are almost always excluded from projects that also receive funding from tax credits or other state subsidies, as those programs are limited to the financing of very low- and low-income housing units at or below 60% AMI.
This bill was substantially amended from the previous version which dealt with the replacement of plumbing in rental properties.
Analysis Prepared by: Lisa Engel / H. & C.D. / (961) 319-2085 FN: 0004929
Date of Hearing: August 25, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
ABPCA Bill Id:AB 723 (
Author:Chiu) – As Amended Ver:August 18, 2016
SUBJECT: Housing: finance
SUMMARY: This bill permits the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, signed in 2012 or later, to apply for and receive an award of funds, at the determination of the HCD director, without regard to whether the applicant has expended at least 50% of their existing awards, and makes changes to California Housing Finance Agency (CalHFA) statutes. Specifically, this bill:
- Permits HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least 50% of their existing awards. The awarding of funds under these circumstances shall be determined by the HCD director and evaluated on the basis of eligibility, need, benefit, or readiness.
- Gives CalHFA the option, in adjusting rents for household size, to utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Gives the CalHFA board of directors' discretion to waive the priority requirements for very low-income households in designated geographic areas upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
- Removes existing references to the use of the sale of bond proceeds to finance CalHFA programs.
- Includes intent language stating that nothing in this bill can be interpreted to modify the terms of any regulatory agreement recorded on or before August 31, 2016.
- Includes an urgency clause.
EXISTING LAW:
- Requires at least 20% of the total number of units in a multifamily rental housing development financed from the proceeds of bonds issued by CalHFA to be occupied on a priority basis by lower income households.
- Requires in a targeted area, defined as qualified census tract or an area of chronic economic distress, that not less than 15% of the total number of units financed by CalHFA be occupied on a priority basis by lower income households, and no less than one- half of the units required for lower income households be provide on a priority basis to very low- income households.
- Restricts the rental payments that can be charged to very low-income households to not more than 30% of 50% of the area median income (AMI).
- Requires CalHFAto in determining rents for household size to assume that one person will occupy a studio unit, two people will occupy a one-bedroom unit, three people will occupy a two-bedroom unity, four people will occupy a three bedroom unit, and five people will occupy a four bedroom unit.
FISCAL EFFECT: According to the Senate Appropriations Committee:
- Accelerated expenditure of CDBG funds, likely in the tens of millions annually over several years (federal funds). Staff notes that current regulations appear to be preventing the expenditure of current available federal funds. Absent the bill, future allocations of federal funding may be at risk.
- Minor and absorbable administrative costs to HCD (General Fund) and CalHFA (special funds).
COMMENTS:
CDBG Program. The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). Among the many uses of CDBG funds are infrastructure improvements and activities in support of the construction of housing for persons of low and moderate income.
Congress amended the HCD Act in 1981 to give each state the opportunity to administer CDBG funds for small cities and counties, called “non-entitlement areas.” Eligible applicants in “non-entitlement areas” include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year, including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
According to HUD, California currently has five times its most recent grant amount (i.e., $114 million) in balance in the state’s CDBG line of credit, which HUD calls “unprecedented.” HCD attributes this backlog of unspent funds to the “50% rule.” The rule, a state regulation, states that a jurisdiction has to have spent 50% of its program funds before drawing down new funds. This rule was put in place to prevent some local jurisdictions from “sitting on their funds” rather than expending them.
Despite best efforts, some jurisdictions have been unable to expend their awards below the 50% requirement, precluding them from even applying for new funds. HCD believes that the build-up of state funds has occurred for a number of reasons, including the recession; that some projects take longer than others; and that some delayed projects may make up a large share of the funds held by a jurisdiction. While there is no federal rule which requires HCD to expend its grant amount, federal funds are dispensed on a needs basis; if these funds are not expended, California runs the risk of losing future federal funds.
This bill provides that jurisdictions that do not meet the requirements of the 50% rule may apply for additional CDBG funds. These jurisdictions would be eligible to apply for and draw down from the $114 million balance of funds. These applications would be evaluated based upon eligibility, need, benefit, and readiness and would be determined by the HCD director. This bill does not guarantee an award, but merely provides jurisdictions the opportunity to apply for additional funds.
California Housing Finance Agency (CalHFA): CalHFA is the state's affordable housing lender. CalHFA funds its programs by issuing bonds and then repays the bonds with loan proceeds. The agency is completely self-supporting and receives no General Fund money. The agency provides low interest rate mortgages to low and moderate income homebuyers in California, as well as down payment and closing costs assistance. Since inception, CalHFA has provided $19.6 billion in mortgages to 153,000 first-time homebuyers. CalHFA loans are used for the acquisition, rehabilitation and permanent financing to preserve, maintain and increase the supply of affordable multi-family rental housing. Since its creation, CalHFA has made $192 million in loans for affordable housing.
Purpose: According to the author, HCD has approximately $114 million in CDBG funding that can be used at the local level for infrastructure projects and housing construction. This backlog of unspent funds is a result of a regulation adopted by HCD requiring that a city or county spend 50% of their program funds before drawing down new funds. Since some projects take longer than others, this has become a barrier. To expedite the release of these funds to worthy projects, this bill allows HCD to make grants to cities and counties that have not spent down 50% of an existing grant before receiving new funding without making a regulatory change.
This bill also modernizes CalHFA’s occupancy standards to make them consistent with other state housing programs, including the low-income housing tax credit program. In addition, this bill gives CalHFA the flexibility to participate in the funding of projects that reserve at least 20% of their units for households serving between 60-80% AMI. This change allows CalHFA to participate in financing more mixed-income projects. The subsidies needed for these projects will not be as deep as those needed for lower income housing, and will also contain a percentage of market-rate units that do not need subsidy. This subset of low-income households are almost always excluded from projects that also receive funding from tax credits or other state subsidies, as those programs are limited to the financing of very low- and low-income housing units at or below 60% AMI.
This bill was substantially amended from the previous version which dealt with the replacement of plumbing in rental properties.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Counties
City of Dublin
City of Santa Monica
Opposition
None on file.
Analysis Prepared by: Lisa Engel H. & C.D. / (916) 319-2085
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 723
:
PRIOR VOTES NOT RELEVANT
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 8/9/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
DIGEST: This bill permits the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, signed in 2012 or later, to apply for and receive an award of funds, at the determination of the HCD director, without regard to whether the applicant has expended at least 50% of their existing awards, and makes changes to California Housing Finance Agency (CalHFA) statutes.
Senate Floor Amendments of 8/18/16 clarify that CalHFA’s option to utilize occupancy assumptions for financing shall not be interpreted to modify the terms of any regulatory agreement on or before August 31, 2016, and makes other technical changes.
Existing law:
- Establishes the CDBG Program in HCD. Funds allocated to the state pursuant to the federal CDBG program and administered by HCD shall meet the housing and economic development needs of persons and families of low or moderate income.
- Prohibits, pursuant to HCD regulations and beginning in 2013, an applicant with one or more current CDBG grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement(s) has not yet passed, from being eligible to apply for any additional CDBG funds, unless the applicant has expended at least 50% of CDBG funds awarded.
- Prohibits rental payments on units required for occupancy by very low-income households paid by persons occupying the units from exceeding 30% to 50% of area median income (AMI), and sets forth occupancy assumptions for adjusting rents for household size, as specified.
- Provides that the financing for multifamily rental housing developments through CalHFA may be financed from the proceeds of the sale of tax-exempt bonds.
- Requires that in a multifamily rental housing development located within a federally targeted area, not less than 15% of the units financed by CalHFA shall be occupied by lower income households. Not less than 50% shall be occupied by very low-income households.
This bill:
- Permits HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least 50% of their existing awards. The awarding of funds under these circumstances shall be determined by the HCD director and evaluated on the basis of eligibility, need, benefit, or readiness.
- Adds that CalHFA shall, in adjusting rents for household size, have the option to utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Removes existing references to the use of the sale of bond proceeds to finance CalHFA programs.
Comments
- Purpose. According to the author, HCD has approximately $114 million in CDBG funding that can be used at the local level for infrastructure projects and housing construction. This backlog of unspent funds is a result of a regulation adopted by HCD requiring that a city or county spend 50% of its program funds before drawing down new funds. Since some projects take longer than others, this has become a barrier. To expedite the release of these funds to worthy projects, this bill allows HCD to make grants to cities and counties that have not spent down 50% of an existing grant before receiving new funding without making a regulatory change.
This bill also modernizes CalHFA’s occupancy standards to make them consistent with other state housing programs, including the low-income housing tax credit program. Finally, this bill gives CalHFA the flexibility to participate in the funding of projects that reserve at least 20% of their units for households between 60% and 80% of the area median income (AMI). This change allows CalHFA to participate in the financing of more mixed-income projects. The subsidies needed for these projects will not be as deep as those needed for lower income housing, and will also contain a percentage of market-rate units that do not need subsidy. This subset of low-income households is almost always excluded from projects that also receive funding from tax credits or other state subsidies, as those programs are limited to the financing of very low- and low-income housing units at or below 60% AMI.
- CDBG changes. The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). Among the many uses of CDBG funds are infrastructure improvements and activities in support of the construction of housing for persons of low and moderate income.
Congress amended the HCD Act in 1981 to give each state the opportunity to administer CDBG funds for small cities and counties, called “non-entitlement areas.” Eligible applicants in non-entitlement areas include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year, including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
According to HUD, California currently has five times its most recent grant amount (i.e., $114 million) in balance in the state’s CDBG line of credit, which HUD calls “unprecedented.” HCD attributes this backlog of unspent funds to the “50% rule.” The rule, a state regulation, states that a jurisdiction has to have spent 50% of its program funds before drawing down new funds. This rule was put in place to prevent some local jurisdictions from “sitting on their funds” rather than expending them.
Despite best efforts, some jurisdictions have been unable to expend their awards below the 50% requirement, precluding them from even applying for new funds. HCD believes that the build-up of state funds has occurred for a number of reasons, including the recession; that some projects take longer than others; and that some delayed projects may make up a large share of the funds held by a jurisdiction. While there is no federal rule which requires HCD to expend its grant amount, federal funds are dispensed on a needs basis; if these funds are not expended, California runs the risk of losing future federal funds.
This bill provides that jurisdictions that do not meet the requirements of the 50% rule may apply for additional CDBG funds. These jurisdictions would be eligible to apply for and draw down from the $114 million balance of funds. These applications would be evaluated based upon eligibility, need, benefit, and readiness and would be determined by the HCD director. This bill does not guarantee an award, but merely provides jurisdictions the opportunity to apply for additional funds.
It should be noted that while this change could be made in state regulations, a regulatory change would take at least a year to adopt through the Administrative Procedures Act. Given the real needs at the local level for these funds and potential risk of loss of future federal funds, the change in statute would permit this change to occur more quickly so that the existing funds may be dispersed.
- Gut-and-amend. This bill was gut-and-amended on August 2 in the Senate Appropriations Committee from a bill dealing with the replacement of plumbing in rental properties, so the votes in the Assembly do not apply to this bill.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- Accelerated expenditure of CDBG funds, likely in the tens of millions annually over several years (federal funds). Staff notes that current regulations appear to be preventing the expenditure of current available federal funds. Absent the bill, future allocations of federal funding may be at risk.
- Minor and absorbable administrative costs to HCD (General Fund) and CalHFA (special funds).
City of Santa Monica
League of California Cities
OPPOSITION: (Verified 8/11/16)
None received
8/22/16 9:42:11
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 723
:
PRIOR VOTES NOT RELEVANT
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 8/9/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
DIGEST: This bill permits the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, signed in 2012 or later, to apply for and receive an award of funds, at the determination of the HCD director, without regard to whether the applicant has expended at least 50% of their existing awards, and makes changes to California Housing Finance Agency (CalHFA) statutes.
Existing law:
- Establishes the CDBG Program in HCD. Funds allocated to the state pursuant to the federal CDBG program and administered by HCD shall meet the housing and economic development needs of persons and families of low or moderate income.
- Prohibits, pursuant to HCD regulations and beginning in 2013, an applicant with one or more current CDBG grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement(s) has not yet passed, from being eligible to apply for any additional CDBG funds, unless the applicant has expended at least 50% of CDBG funds awarded.
- Prohibits rental payments on units required for occupancy by very low-income households paid by persons occupying the units from exceeding 30% to 50% of area median income (AMI), and sets forth occupancy assumptions for adjusting rents for household size, as specified.
- Provides that the financing for multifamily rental housing developments through CalHFA may be financed from the proceeds of the sale of tax-exempt bonds.
- Requires that in a multifamily rental housing development located within a federally targeted area, not less than 15% of the units financed by CalHFA shall be occupied by lower income households. Not less than 50% shall be occupied by very low-income households.
This bill:
- Permits HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least 50% of their existing awards. The awarding of funds under these circumstances shall be determined by the HCD director and evaluated on the basis of eligibility, need, benefit, or readiness.
- Adds that CalHFA shall, in adjusting rents for household size, have the option to utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Removes existing references to the use of the sale of bond proceeds to finance CalHFA programs.
Comments
- Purpose. According to the author, HCD has approximately $114 million in CDBG funding that can be used at the local level for infrastructure projects and housing construction. This backlog of unspent funds is a result of a regulation adopted by HCD requiring that a city or county spend 50% of their program funds before drawing down new funds. Since some projects take longer than others, this has become a barrier. To expedite the release of these funds to worthy projects, this bill allows HCD to make grants to cities and counties that have not spent down 50% of an existing grant before receiving new funding without making a regulatory change.
This bill also modernizes CalHFA’s occupancy standards to make them consistent with other state housing programs, including the low-income housing tax credit program. Finally, this bill gives CalHFA the flexibility to participate in the funding of projects that reserve at least 20% of their units for households serving between 60-80% AMI. This change allows CalHFA to participate in the financing of more mixed-income projects. The subsidies needed for these projects will not be as deep as those needed for lower income housing, and will also contain a percentage of market-rate units that do not need subsidy. This subset of low-income households are almost always excluded from projects that also receive funding from tax credits or other state subsidies, as those programs are limited to the financing of very low- and low-income housing units at or below 60% AMI.
- CDBG changes. The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). Among the many uses of CDBG funds are infrastructure improvements and activities in support of the construction of housing for persons of low and moderate income.
Congress amended the HCD Act in 1981 to give each state the opportunity to administer CDBG funds for small cities and counties, called “non-entitlement areas.” Eligible applicants in “non-entitlement areas” include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year, including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
According to HUD, California currently has five times its most recent grant amount (i.e., $114 million) in balance in the state’s CDBG line of credit, which HUD calls “unprecedented.” HCD attributes this backlog of unspent funds to the “50% rule.” The rule, a state regulation, states that a jurisdiction has to have spent 50% of its program funds before drawing down new funds. This rule was put in place to prevent some local jurisdictions from “sitting on their funds” rather than expending them.
Despite best efforts, some jurisdictions have been unable to expend their awards below the 50% requirement, precluding them from even applying for new funds. HCD believes that the build-up of state funds has occurred for a number of reasons, including the recession; that some projects take longer than others; and that some delayed projects may make up a large share of the funds held by a jurisdiction. While there is no federal rule which requires HCD to expend its grant amount, federal funds are dispensed on a needs basis; if these funds are not expended, California runs the risk of losing future federal funds.
This bill provides that jurisdictions that do not meet the requirements of the 50% rule may apply for additional CDBG funds. These jurisdictions would be eligible to apply for and draw down from the $114 million balance of funds. These applications would be evaluated based upon eligibility, need, benefit, and readiness and would be determined by the HCD director. This bill does not guarantee an award, but merely provides jurisdictions the opportunity to apply for additional funds.
It should be noted that while this change could be made in state regulations, a regulatory change would take at least a year to adopt through the Administrative Procedures Act. Given the real needs at the local level for these funds and potential risk of loss of future federal funds, the change in statute would permit this change to occur more quickly so that the existing funds may be dispersed.
- Gut-and-amend. This bill was gut-and-amended on August 2 in the Senate Appropriations Committee from a bill dealing with the replacement of plumbing in rental properties, so the votes in the Assembly do not apply to this bill.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- Accelerated expenditure of CDBG funds, likely in the tens of millions annually over several years (federal funds). Staff notes that current regulations appear to be preventing the expenditure of current available federal funds. Absent the bill, future allocations of federal funding may be at risk.
- Minor and absorbable administrative costs to HCD (General Fund) and CalHFA (special funds).
City of Santa Monica
League of California Cities
OPPOSITION: (Verified 8/11/16)
None received
ASSEMBLY FLOOR: 78-0, 6/2/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Chávez, Grove
8/15/16 20:01:56
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 723 (Chiu) - Housing: finance
Version: August 4, 2016 | Policy Vote: JUD. 4 - 2, T. & H. 11 - 0 |
Urgency: Yes | Mandate: No |
Hearing Date: August 11, 2016 | Consultant: Mark McKenzie |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 723, an urgency measure, would (1) authorize the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, as specified, to apply for and receive additional funds without having expended at least 50 percent of their existing awards, and (2) modify California Housing Finance Agency (CalHFA) statutes.
Fiscal Impact:
- Accelerated expenditure of CDBG funds, likely in the tens of millions annually over several years (federal funds). Staff notes that current regulations appear to be preventing the expenditure of current available federal funds. Absent the bill, future allocations of federal funding may be at risk.
- Minor and absorbable administrative costs to HCD (General Fund) and Cal HFA (special funds).
Background:
The California Housing Finance Agency (CalHFA) is an independent entity within HCD that was established in 1975 and makes low-rate housing loans through the sale of taxable and tax exempt bonds. Historically, CalHFA has provided housing assistance in three areas: (1) below-market interest rate mortgages and downpayment assistance for first-time homebuyers, most of whom were low- and moderate income families and ethnic minorities not well-served by market rate products, (2) insurance for single-family home purchase mortgages, and (3) loans for the development of multifamily rental housing. These financial products were funded through sale of revenue bonds secured by the mortgage products and the underlying property. The operating costs of the agency are funded by (1) origination and service fees, and (2) the spread between the interest paid on its outstanding debt and the interest charged on the loans made. Beginning in 2002, passage of Proposition 46 (2002) provided funding for additional activities through sale of general obligation bonds; this source of funding was extended by passage of Proposition 1C in 2006.
The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). In addition to the federal entitlement grants that are provided directly to local agencies, existing federal law authorizes each state to administer CDBG funds for small cities and counties, called “non-entitlement areas.” Eligible applicants in “non-entitlement areas” include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
Current state regulations prohibit an applicant with one or more current CDBG grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement(s) has not yet passed, from being eligible to apply for any additional CDBG funds, unless the applicant has expended at least half of CDBG funds awarded previously (the 50% rule).
Proposed Law:
AB 723, an urgency measure, would do all of the following:
- Permit HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least half of their existing awards. The awarding of funds under these circumstances shall be (1) determined by the Director of HCD, and (2) evaluated on the basis of eligibility, need, benefit, or readiness.
- Specify that CalHFA shall, in adjusting rents for household size, have the option to utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Increase the occupancy eligibility for lower income households from 50 percent to 80 percent area median income (AMI) in multifamily rental housing developments financed by CalHFA.
- Remove existing references to the use of the sale of bond proceeds to finance CalHFA programs.
- Provide that, upon approval of the CalHFA board, CalHFA may waive the priority requirements for very low-income households in federally targeted areas upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
Staff Comments:
According to HUD, California currently has five times its most recent grant amount, approximately $114 million, in the state’s CDBG line of credit, which HUD calls “unprecedented.” HCD attributes this backlog of unspent funds to the 50% rule. This rule is intended to incentivize local jurisdictions to expeditiously spend down their available funds. This bill would authorize the allocation of additional CDBG funds to local agencies that have unspent funds that exceed 50% of their previous allocation. This would accelerate expenditure of the current balance of HCD’s CDBG funds.
The provisions pertaining to CalHFA are not expected to result in additional state costs, but would modernize the agency’s governing statutes, providing additional flexibility in meeting the needs of low- and moderate-income renters and allowing CalHFA to participate in the financing of more mixed income projects.
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: Hearing Date: 8/9/2016
Author: | Chiu | ||
Version: | 8/4/2015 Amended | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Alison Dinmore | ||
SUBJECT: Community Development Block Grant Program and Housing Finance
DIGEST: This bill permits the Department of Housing and Community Development (HCD) to allow an applicant with one or more Community Development Block Grant (CDBG) agreements, signed in 2012 or later, to apply for and receive an award of funds, at the determination of the HCD director, without regard to whether the applicant has expended at least 50% of their existing awards, and makes changes to California Housing Finance Agency (CalHFA) statutes.
ANALYSIS:
Existing law:
- Establishes the CDBG Program in HCD. Funds allocated to the state pursuant to the federal CDBG program and administered by HCD shall meet the housing and economic development needs of persons and families of low or moderate income.
- Prohibits, pursuant to HCD regulations and beginning in 2013, an applicant with one or more current CDBG grant agreements signed in 2012 or later, for which the expenditure deadline established in the grant agreement(s) has not yet passed, from being eligible to apply for any additional CDBG funds, unless the applicant has expended at least 50% of CDBG funds awarded.
- Prohibits rental payments on units required for occupancy by very low-income households paid by persons occupying the units from exceeding 30% to 50% of area median income (AMI), and sets forth occupancy assumptions for adjusting rents for household size, as specified.
- Provides that the financing for multifamily rental housing developments through CalHFA may be financed from the proceeds of the sale of tax-exempt bonds.
- Requires that in a multifamily rental housing development located within a federally targeted area, not less than 15% of the units financed by CalHFA shall be occupied by lower income households. Not less than 50% shall be occupied by very low-income households.
This urgency bill:
- Permits HCD to allow an applicant with one or more CDBG agreements, signed in 2012 or later, to apply for and receive an award of funds without regard to whether the applicant has expended at least 50% of their existing awards. The awarding of funds under these circumstances shall be determined by the HCD director and evaluated on the basis of eligibility, need, benefit, or readiness.
- Adds that CalHFA shall, in adjusting rents for household size, have the option to utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing.
- Increases the occupancy eligibility for lower income households from 50% to 80% AMI in multifamily rental housing developments financed by CalHFA.
- Removes existing references to the use of the sale of bond proceeds to finance CalHFA programs.
- Adds that, upon approval of the CalHFA board, CalHFA may waive the priority requirements for very low-income households in federally targeted areas upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met.
COMMENTS:
- Purpose. According to the author, HCD has approximately $114 million in CDBG funding that can be used at the local level for infrastructure projects and housing construction. This backlog of unspent funds is a result of a regulation adopted by HCD requiring that a city or county spend 50% of their program funds before drawing down new funds. Since some projects take longer than others, this has become a barrier. To expedite the release of these funds to worthy projects, this bill allows HCD to make grants to cities and counties that have not spent down 50% of an existing grant before receiving new funding without making a regulatory change.
This bill would also modernize CalHFA’s occupancy standards to make them consistent with other state housing programs, including the low-income housing tax credit program. Finally, this bill would give CalHFA the flexibility to participate in the funding of projects that reserve at least 20% of their units for households serving between 60-80% AMI. This change would allow CalHFA to participate in the financing of more mixed-income projects. The subsidies needed for these projects will not be as deep as those needed for lower income housing, and will also contain a percentage of market rate units that do not need subsidy. This subset of low income households are almost always excluded from projects that also receive funding from tax credits or other state subsidies, as those programs are limited to the financing of very low- and low-income housing units at or below 60% AMI.
- CDBG changes. The CDBG program was established by the United States Housing & Community Development Act of 1974 (HCD Act) and is administered at the federal level by the U.S. Department of Housing and Urban Development (HUD). Among the many uses of CDBG funds are infrastructure improvements and activities in support of the construction of housing for persons of low and moderate income.
Congress amended the HCD Act in 1981 to give each state the opportunity to administer CDBG funds for small cities and counties, called “non-entitlement areas.” Eligible applicants in “non-entitlement areas” include counties with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 residents that do not participate in the HUD CDBG entitlement program. Since 1983, HCD has administered the state CDBG program in California, and releases a notice of funding availability each year including CDBG-eligible activities. The state program awards grants to non-entitlement areas to develop and preserve decent affordable housing.
According to HUD, California currently has five times its most recent grant amount (i.e., $114 million) in balance in the state’s CDBG line of credit, which HUD calls “unprecedented.” HCD attributes this backlog of unspent funds to the “50% rule.” The rule, a state regulation, states that a jurisdiction has to have spent 50% of its program funds before drawing down new funds. This rule was put in place to prevent some local jurisdictions from “sitting on their funds” rather than expending them.
Despite best efforts, some jurisdictions have been unable to expend their awards below the 50% requirement, precluding them from even applying for new funds. HCD believes that the build-up of state funds has occurred for a number of reasons, including the recession, that some projects take longer than others, and that some delayed projects may make up a large share of the funds held by a jurisdiction. While there is no federal rule which requires HCD to expend its grant amount, federal funds are dispensed on a needs basis; if these funds are not expended, California runs the risk of losing future federal funds.
This bill would provide that jurisdictions that do not meet the requirements of the 50% rule may apply for additional CDBG funds. These jurisdictions would be eligible to apply for and draw down from the $114 million balance of funds. These applications would be evaluated based upon eligibility, need, benefit, and readiness and would be determined by the HCD director. This bill does not guarantee an award, but merely provides jurisdictions the opportunity to apply for additional funds.
It should be noted that while this change could be made in state regulations, a regulatory change would take at least a year to adopt through the Administrative Procedures Act. Given the real needs at the local level for these funds and potential risk of loss of future federal funds, the change in statute would permit this change to occur more quickly so that the existing funds may be dispersed.
- CalHFA’s occupancy standards. State statutes that govern CalHFA regarding income and rent limits (and the related issue of occupancy standards) do not provide CalHFA with the flexibility to adopt criteria that are consistent with federal programs that create and preserve affordable housing. This inconsistency creates a conflict with multifamily rental housing projects that receive federal subsidies. On the other hand, HCD and the Tax Credit Allocation Committee (TCAC) have the flexibility to adopt criteria that allows those programs to be consistent with the requirements for federal subsidies. Because CalHFA lacks this flexibility, it uses income and rent limit requirements that are different from other state programs, which makes it difficult for affordable housing developers to coordinate financing. At a minimum, this leads to confusion and additional effort for developers, and in some instances, means that developers do not or cannot utilize CalHFA financing. In the end, developers will need more gap financing to complete these projects. Alternatively, projects can seek financing from local agencies, which could result in higher rent for some units.
This bill would permit CalHFA’s regulatory requirements to mirror other state and federal regulations and to remain consistent with changes that occur at the federal and state level.
- Financing units for the “missing middle.” Most federal and state affordable housing programs provide rental subsidies to households earning 60% AMI or below. In areas that have particularly high housing costs, families earning between 60% and 80% AMI are having an increasingly difficult time finding housing that they can afford. This population, which earns too much for housing assistance but not enough to afford current market rents, is often referred to as “the missing middle.” Additionally, current CalHFA statutes governing CalHFA’s multifamily lending activity also requires projects funded by CalHFA to have a certain percentage of the units reserved for lower income households and additional targets for very low-income households.
This bill provides CalHFA with the flexibility to participate in the funding of projects that reserve at least 20% of their units for households earning 80% AMI or below. This would allow CalHFA to participate in the financing of 100% affordable developments for 80% AMI households and below and more mixed-income projects and low-income developments that do use low-income housing tax credits. These projects often cannot be developed because existing state subsidies, such as low-income housing tax credits, are limited to the financing of units available to incomes below 60% AMI.
- CalHFA’s financing authority. In prior years, CalHFA relied almost entirely on tax-exempt bond proceeds to finance its lending programs. Following the recession, this has not been a reliable source of funding. CalHFA recently developed other business models to achieve its lending goals, including selling loans directly to Fannie Mae and Freddie Mac to minimize financial risk to the Agency. Additionally, CalHFA has been partnering with federal agencies to share the risk associated with lending for affordable multifamily housing.
This bill would update CalHFA’s governing statutes to permit the agency to use these new models, which had not been contemplated when the statute was originally drafted.
- Gut-and-amend. This bill was gut-and-amended on August 2 in Senate Appropriations from a bill dealing with the replacement of plumbing in rental properties, and sent to this committee for a policy hearing.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
August 3, 2016.)
SUPPORT:
None received
OPPOSITION:
None received
-- END --
AB 723 (Rendon)
Page 11 of 11
Senator Hannah-Beth Jackson, Chair
2015-2016 Regular Session
AB 723 (Rendon)
Version: June 23, 2015
Hearing Date: July 14, 2015
Fiscal: Yes
Urgency: No
TH
SUBJECT
Rental Property: Plumbing Fixtures: Replacement
DESCRIPTION
This bill would require the lease of a single-family residential real property or any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended after January 1, 2016, to contain a provision in which the property owner discloses his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017, or January 1, 2019, respectively.
BACKGROUND
California is currently in its fourth year of drought, with rain and snowfall -- the primary sources of water -- well below normal levels. The resulting water shortage, as well as California’s growing population and the effects of long-term climate change, have put pressure on the state’s water storage and delivery system, contributing to California’s current water crisis. On January 17, 2014, Governor Brown proclaimed a State of Emergency due to the ongoing drought, and directed state officials to take all necessary actions to prepare for drought conditions, including calling on all Californians to voluntarily reduce their water usage by 20 percent. On April 1, 2015, for the first time in state history, the Governor ordered mandatory water reductions in cities and towns across California to reduce water usage by 25 percent. (See Executive Order B-29-15.)
According to the California Energy Commission, household water use accounts for approximately 64 percent of total urban water use in California, and 18 percent of indoor water use can be attributed to leaking fixtures. (See California’s Drought
Rebate Program Factsheet, California Energy Commission <http://www.energy.ca.gov/ 2015publications/CEC-400-2015-017/CEC-400-2015-017-FS.pdf> [as of July 4, 2015].) Although there are many ways to reduce water usage and leaks, one of the most effective is to replace older high-water use plumbing fixtures with newer, more efficient models. To facilitate the replacement of older high-water use plumbing fixtures with water conserving fixtures, the Legislature passed SB 407 (Padilla, Ch. 587, Stats. 2009), which established requirements for residential and commercial real property built on or before January 1, 1994, to replace plumbing fixtures that are not water conserving. Among other things, SB 407 required all noncompliant plumbing fixtures in multifamily residential real property and commercial real property be replaced with water-conserving plumbing fixtures by January 1, 2019, and all noncompliant plumbing fixtures in single-family residential real property be replaced with water-conserving plumbing fixtures by January 1, 2017.
This bill would require landlords who lease single-family and multi-family residential real property and commercial real property to contain a provision in leases entered into, renewed, or amended after January 1, 2016, in which the property owner states his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures. This bill would also authorize any party, including a city, county, or water supplier to enforce that lease provision.
CHANGES TO EXISTING LAW
Existing law finds and declares, as the policy of this state, that management of urban water demands and efficient use of water shall be actively pursued to protect both the people of the state and their water resources. (Wat. Code Sec. 10610.4.)
Existing law regulates the terms and conditions of residential and commercial tenancies. (Civ. Code Sec. 1940 et seq.)
Existing law regulates the transfer of real property, including the provision of mandatory disclosures during a transfer. (Civ. Code Sec. 1091 et seq.)
Existing law provides on and after January 1, 2014, for all building alterations or improvements to single-family residential real property, as a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department, the permit applicant shall replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures. (Civ. Code Sec. 1101.4(a).)
Existing law requires on or before January 1, 2017, noncompliant plumbing fixtures in any single-family residential real property to be replaced by the property owner with water-conserving plumbing fixtures. (Civ. Code Sec. 1101.4(b).)
Existing law states that on and after January 1, 2017, a seller or transferor of single-family residential real property shall disclose in writing to the prospective purchaser or transferee the requirements of the above provision and whether the real property includes any noncompliant plumbing fixtures. (Civ. Code Sec. 1101.4(c).)
Existing law requires on or before January 1, 2019, all noncompliant plumbing fixtures in any multifamily residential real property and in any commercial real property to be replaced with water-conserving plumbing fixtures. (Civ. Code Sec. 1101.5(a).)
Existing law states that on and after January 1, 2019, the water-conserving plumbing fixtures required by the above provision shall be operating at the manufacturer’s rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owner’s agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturer’s rated water consumption. The owner or owner’s agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owner’s agent. (Civ. Code Sec. 1101.5(c).)
Existing law requires on and after January 1, 2014, all noncompliant plumbing fixtures in any multifamily residential real property and any commercial real property to be replaced with water-conserving plumbing fixtures in the following circumstances:
for building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent; and
for building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), as specified. (Civ. Code Sec. 1101.5(d).)
Existing law requires on and after January 1, 2019, the seller or transferor of multifamily residential real property or of commercial real property to disclose to the prospective purchaser or transferee in writing, among other things, whether the property includes any noncompliant plumbing fixtures, and specifies that this disclosure may be included in other transactional documents. (Civ. Code Sec. 1101.5(e).)
Existing law defines the following terms:
“noncompliant plumbing fixture” means any of the following: a toilet manufactured to use more than 1.6 gallons of water per flush; a urinal manufactured to use more than one gallon of water per flush; a showerhead manufactured to have a flow capacity of more than 2.5 gallons of water per minute; or an interior faucet that emits more than 2.2 gallons of water per minute; and
“water-conserving plumbing fixture” means any fixture that is in compliance with current building standards applicable to a newly constructed real property of the same type. (Civ. Code Sec. 1101.3(e).)
This bill would provide that the lease of any single-family residential real property that is entered into, renewed, or amended on or after January 1, 2016, shall contain a provision in which the property owner states his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017.
This bill would provide that the lease of any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended on or after January 1, 2016, shall contain a provision in which the property owner states his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2019.
This bill would specify that the above provisions may be enforced by a city, county, city and county, water supplier, or any other party.
COMMENT
Stated need for the bill
According to the author:
In 2007, California passed AB 715 (Laird), which required that all toilets and urinals sold or installed in the state must meet high water-efficiency standards. These standards abide by the federally-set EPA WaterSense qualifications, which are considered some of the most advanced and stringent, in terms of both performance and efficiency measures. In 2008, California began developing the California Green Buildings Standard Code, commonly known as CALGreen, which is the state’s and nation’s first mandated green building code. Plumbing fixtures required by CALGreen must also abide by federally-set EPA WaterSense standards. In 2009, the Legislature directed state agencies and California residents to reduce statewide water consumption by 20 [percent] by 2020. This plan, also known as the 20x2020 Water Conservation Plan, aimed to maximize residential water efficiency and conservation.
SB 407, passed in [2009], aimed to implement a portion of the 20x2020 plan. It called for the replacement of inefficient plumbing fixtures and ensures that by 2020, the building stock in California will be equipped with high-efficiency plumbing fixtures in order to accomplish the administration’s conservation goals. SB 407 was somewhat unclear and did not designate enforcement authority, which resulted in ineffective implementation of the bill. SB 407 . . . has proven to be a challenge to implement for the following reasons:
• Lack of local jurisdictions’ technical capacities or budgets
• No incentive for localities to comply
• Inconsistent and vague language
• Lack of enforcement authority
This bill would require the lease of a single-family residential real property or any portion of a multifamily residential real property or commercial real property that is entered into, renewed, or amended after January 1, 2016, to contain a provision in which the property owner states his or her responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017, or January 1, 2019, respectively. The bill would authorize any party, including a city, county, or water supplier to enforce that lease provision. This provision would add teeth to SB 407, and create an enforcing mechanism, holding landlords accountable for the inefficient fixtures on their property.
Enforcement of Lease Terms
As the author notes in Comment 1, the intent of this bill is to “add teeth” to the efficiency requirements imposed by SB 407 (Padilla, Ch. 587, Stats. 2009). However, it is unclear how the current version of this bill would actually work in situations where a landlord fails to meet SB 407’s efficiency requirements. Would enforcement of this new lease term, for example, authorize a tenant to claim that the presence of inefficient plumbing fixtures amounts to a material breach of the lease? Would a tenant have a right to repair or replace non-compliant fixtures and withhold rent for the amount of the repairs? Would another party unrelated to the landlord-tenant relationship be empowered to seek an injunction to force the landlord to comply with these efficiency requirements?
Under existing law, Civil Code Section 1941 provides that the lessor of a building intended for the occupation of human beings must, in the absence of an agreement to the contrary, put it into a condition fit for such occupation, and repair all subsequent dilapidations thereof, which render it untenantable. Existing law only recognizes certain conditions as amounting to a landlord’s failure to maintain the habitability of a tenancy, including when a unit substantially lacks such things as a “water supply approved under applicable law that is under the control of the tenant, capable of producing hot and cold running water, or a system that is under the control of the landlord, that produces hot and cold running water, furnished to appropriate fixtures, and connected to a sewage disposal system approved under applicable law.” (Civ. Code Sec. 1941.1(a)(3).) When a unit substantially lacks any of the standard characteristics necessary for its habitation as a dwelling, existing law, under specified conditions, prohibits a landlord from demanding or collecting rent from the tenant, or from issuing a three-day notice to pay rent or quit the premises. (See Civ. Code Sec. 1942.2.) Additionally, existing law recognizes a tenant’s right to repair or vacate premises rendered untenantable due to a landlord’s failure to maintain the standard characteristics necessary for habitation. (See Civ. Code Sec. 1942.) Failure to maintain residential premises in a habitable condition also operates as an affirmative defense to an unlawful detainer action when a tenant withholds the payment of rent, provided the defects constitute a “substantial breach” of the landlord’s obligation to maintain the habitability of a dwelling. (See Code Civ. Proc. Sec. 1174.2.)
The policy rationale underlying these existing provisions recognizes that tenants should not be forced to live in, and pay rent for, substandard housing. The law recognizes that forced living in such conditions threatens the health and safety of the residents.
Amendments to Require Disclosure
Recognizing the difficulty of enforcing water efficiency standards in a lease, as discussed in Comment 2, the author offers the following set of amendments to clarify how non-compliance with the efficiency standards imposed by SB 407 should affect the landlord-tenant relationship. These amendments remove the duty to state a property owner’s obligation to provide water-conserving plumbing fixtures as a term of a lease, and instead require the landlord to provide a tenant with a separate disclosure informing them of this duty when entering into, renewing or amending a lease. These amendments provide a sample notice deemed to comply with this new requirement, and extend the date by which this separate notice must be provided to tenants to those leases entered into, amended, or renewed on or after July 1, 2016. These amendments also exempt the landlords of single-family residential real properties, multifamily residential real properties, and commercial real properties from the obligation to provide this separate notice for properties that have complied with the efficiency requirements of SB 407.
Author’s Amendments:
On page 2, line 19, after “lease” insert “or rental agreement”
On page 2, line 20, strike “January,” and insert “July,”
On page 3, strike lines 1 through 5 and insert “shall be accompanied by a written disclosure stating the property owner’s responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2017.”
On page 3, before line 6, insert:
(e) The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (d): “Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property or commercial property may not comply with Sections 1101.4 or 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017 or January 1, 2019.”
(f) Single-family residential real properties in compliance with subdivisions (a) or (b) shall not be required to comply with the notice requirement prescribed by subdivision (d).
On page 4, line 15, after “lease” insert “or rental agreement”
On page 4, line 17, strike “2016” and insert “2017”
On page 4, line 17, strike “shall contain a provision,” strike lines 18 through 22, and insert “shall be accompanied by a written disclosure stating the property owner’s responsibility to replace all noncompliant plumbing fixtures with water-conserving plumbing fixtures on or before January 1, 2019.”
On page 4, after line 22, insert:
(g) The following provision is deemed adequate to satisfy the notice requirement prescribed by subdivision (f): “Section 1101.4 of the Civil Code requires all single-family residences to be equipped with water-conserving plumbing fixtures on or after January 1, 2017. Section 1101.5 of the Civil Code requires all multifamily residential real property and all commercial real property to be equipped with water-conserving plumbing fixtures on or after January 1, 2019. Fixtures in this dwelling, multifamily residential real property or commercial property may not comply with Sections 1101.4 or 1101.5 of the Civil Code. The property owner is responsible for equipping this property with water-conserving plumbing fixtures by January 1, 2017 or January 1, 2019.”
(h) Multifamily residential real properties and commercial real properties in compliance with subdivisions (a) or (d), and commercial real properties without plumbing fixtures, shall not be required to comply with the notice requirement prescribed by subdivision (f).
Amendments to Allow Partial Withholding of Rent
Instead of allowing a tenant to potentially void a tenancy agreement for a property owner’s failure to install water-conserving plumbing fixtures as required by SB 407, the author offers the following amendments which would allow a tenant to withhold a portion of their periodic rent that is directly attributable to utility charges they incur due to the use of non-compliant fixtures in their rental unit. Where it is impractical or extremely difficult to quantify those charges, these amendments would create a presumption that the amount attributable to the non-compliant fixtures is $25 per rental period. These amendments would also protect tenants from eviction actions by prohibiting any person from bringing an unlawful detainer action for withholding rent as authorized by the amendments, and would clarify that remedies provided by this bill are cumulative to remedies provided under a lease agreement or under other law.
Author’s Amendments:
On page 3, before line 6, insert:
(g) A tenant of a single-family residential real property who receives residential water service from a water utility under an account established by the tenant may deduct from the payment of rent to the landlord all reasonable charges paid to the water utility that are directly attributable to the property owner’s failure to comply with subdivision (b). Where it would be impracticable or extremely difficult to fix the actual charges attributable to the property owner’s failure to comply with subdivision (b), such charges shall be presumed to be $25 per rental period. No tenant shall be guilty of unlawful detainer pursuant to Section 1161 of the Code of Civil Procedure for deducting from the payment of rent to the landlord the amount authorized by this subdivision, and no person may initiate an unlawful detainer action against a tenant who elects to deduct from the payment of rent an amount authorized by this subdivision. The remedies provided by this subdivision are in addition to any other remedies provided by the lease agreement, or other applicable statutory or common law.
On page 4, after line 22, insert:
(i) A tenant of a multifamily residential real property or commercial real property who receives residential or commercial water service from a water utility under an account established by the tenant may deduct from the payment of rent to the landlord all reasonable charges paid to the water utility that are directly attributable to the property owner’s failure to comply with subdivision (a). Where it would be impracticable or extremely difficult to fix the actual charges attributable to the property owner’s failure to comply with subdivision (a), such charges shall be presumed to be $25 per rental period. No tenant shall be guilty of unlawful detainer pursuant to Section 1161 of the Code of Civil Procedure for deducting from the payment of rent to the landlord the amount authorized by this subdivision, and no person may initiate an unlawful detainer action against a tenant who elects to deduct from the payment of rent an amount authorized by this subdivision. The remedies provided by this subdivision are in addition to any other remedies provided by the lease agreement, or other applicable statutory or common law.
Opposition Concerns
A number of groups have raised concerns about this bill and the amendments described in Comments 3 and 4. The California Association of Realtors, in opposition, articulates these concerns as follows:
The [California Association of Realtors] (C.A.R.) is opposed to AB 723, as proposed to be amended, unless the tenant enforcement provisions are removed from [the] bill. Our concern is the novel, and unworkable, enforcement mechanism proposed to be added to AB 723.
. . .
The proposed mechanism is inappropriate.
C.A.R. opposes the proposed provisions that would empower tenants to act as code enforcement officers or building code officials. Tenants should not be the “watch dog” for building code violations as they do not have the technical knowledge to enforce state standards related to water conserving features. This expertise should remain with those trained to enforce state and local building standards.
As proposed to be amended, AB 723 would encourage tenants to deduct from their rent “reasonable charges paid to the water utility” if the landlord has not updated the dwellings plumbing fixtures. If that amount is unquantifiable, tenants would be permitted to deduct $25 per rental period. Tenants would not be subject to eviction if this deduction is made from their rent. The duty is owed to the water purveyor, not the tenant, and should not become a cheap continuance on every eviction.
AB 723 confuses habitability and regulatory compliance in its remedy.
Under current law, tenants may only withhold rent for habitability or health and safety issues. While water conservation is vital to all residents in California, AB 723 will not achieve its intended goal to reduce water consumption by punishing property owners. AB 723 encourages tenants to “allege” violations and requires landlords to prove they are in compliance.
Existing enforcement provisions in SB 407 are working.
Building alterations and improvements require a property owner to obtain a building permit prior to commencing work. As a condition for issuance of completion for final permit approval by the local building department, permit applicants seeking to alter real property must replace noncompliant plumbing fixtures with low-flow toilets, shower heads and faucets. This requirement has been enforced by local building departments since January 1, 2014.
Additional enforcement is premature.
The remaining requirements in SB 407 do not go into effect immediately, and are phased in over the next few years. There is no immediate urgency to enforce these provisions. It is unfair to assume that property owners will not comply with state mandated requirements before they even take effect.
The Apartment Association of Greater Los Angeles, in opposition, additionally states that the disclosure requirements in AB 723 amount to an effort to “shame” landlords into retrofitting plumbing fixtures as required by SB 407.
Support: Association of California Water Agencies; San Diego County Water Authority
Opposition: Apartment Association, California Southern Cities; Apartment Association of Greater Los Angeles; Apartment Association of Orange County; California Association of Realtors; East Bay Rental Housing Association; Nor Cal Rental Property Owner’s Association; North Valley Property Owner’s Association; Santa Barbara Rental Property Association
HISTORY
Source: Natural Resources Defense Council
Related Pending Legislation: None Known
Prior Legislation:
SB 407 (Padilla, Ch. 587, Stats. 2009) established requirements for residential and commercial real property built on or before January 1, 1994, to replace plumbing fixtures that are not water conserving. Among other things, this bill required, on or before January 1, 2019, that all noncompliant plumbing fixtures in multifamily residential real property and commercial real property be replaced with water-conserving plumbing fixtures. This bill also required, on or before January 1, 2017, that all noncompliant plumbing fixtures in any single-family residential real property be replaced by the property owner with water-conserving plumbing fixtures.
AB 715 (Laird, Ch. 499, Stats. 2007) prohibited the sale, after January 1, 2014, of toilets that exceed 1.28 gallons per flush and urinals that exceed 0.5 gallon per flush.
Prior Vote:
Assembly Floor (Ayes 78, Noes 0)
Assembly Appropriations Committee (Ayes 17, Noes 0)
Assembly Housing and Community Development Committee (Ayes 6, Noes 0)
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AB 723
Page 2
Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 723
(Rendon) – As Amended April 30, 2015
Policy Committee: |
Housing and Community Development |
Vote: |
6 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the California Energy Commission (CEC), when setting plumbing fixture water efficiency standards, to consider the performance requirements established by the United States Environmental Protection Agency (EPA) WaterSense standards.
FISCAL EFFECT:
Negligible costs to the CEC.
COMMENTS:
Purpose. The author notes that "a common criticism of high-efficiency toilets and other high-efficiency fixtures is that they break easily and are ineffective." Federally-set EPA WaterSense qualifications "are considered some of the most advanced and stringent, in terms of both performance and efficiency measures. While the recent updates to the CEC’s Title 20 plumbing fixture standards will achieve, and in some cases exceed, WaterSense efficiency standards for most plumbing fixtures, Title 20 standards do not necessarily have WaterSense high- performance requirements." This bill will encourage the CEC to consider WaterSense performance standards when setting plumbing fixture water efficiency standards.
Background. On April 1, 2015, the Governor issued Executive Order B-29-15, directing the first ever statewide mandatory water reduction. One of the four CEC responsibilities in the executive order is to establish standards that improve the efficiency of water appliances, including toilets, urinals and faucets available for sale and installation in new and existing buildings. According to the CEC, the recently approved energy efficiency and water standards "require water appliances to consume less water thereby using less energy while performing the same function."
Standards for these appliances were adopted on April 8, 2015, and the emergency situation allows the CEC to prohibit the sale and installation of certain toilets, urinals and faucets that do not meet minimum water efficiency requirements as of Jan. 1, 2016, regardless of the manufactured date. While these standards are consistent with WaterSense efficiency standards, they do not specifically align with WaterSense performance requirements.
According to the EPA, "WaterSense, a partnership program by the U.S. Environmental Protection Agency, seeks to protect the future of our nation's water supply by offering people a simple way to use less water with water-efficient products, new homes, and services." Products and services that carry the WaterSense label have been certified to be at least 20% more efficient without sacrificing performance. Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label.
Prior Legislation.
SB 407 (Padilla), Chapter 587, Statutes of 2009, requires the replacement of all non-water conserving plumbing fixtures, as defined, in commercial and residential properties built prior to 1994 with water-conserving fixtures by either 2017 or 2019, depending on the type of property.
AB 715 (Laird), Chapter 499, Statutes of 2007, prohibits the sale, after January 1, 2014, of toilets that exceed 1.28 gallons per flush and urinals that exceed 0.5 gallon per flush.
SB 1224 (Killea), Chapter 1347, Statutes of 1992, requires all water closets (toilets) sold or installed on or after January 1, 1994 to use no more than an average of 1.6 gallons per flush, and requires all urinals sold or installed on or after January 1, 1994 to use no more than an average of one gallon per flush.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
AB 723
Page 4
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 723
Rendon – As Amended April 16, 2015
AS PROPOSED TO BE AMENDED
SUBJECT: Plumbing fixtures: WaterSense standards
SUMMARY: Requires the California Energy Commission (CEC), when setting plumbing fixture water efficiency standards, to consider the performance requirements established by the United States Environmental Protection Agency (EPA) WaterSense standards.
EXISTING LAW:
Establishes minimum energy efficiency standards for water appliances, including toilets, urinals, and faucets (California Code of Regulations, Title 20).
Establishes building standards, including technical standards of design, materials, workmanship and maintenance for plumbing systems (California Code of Regulations, Title 24).
Requires the replacement of all non-water conserving plumbing fixtures, as defined, in commercial and residential properties built prior to 1994 with water-conserving fixtures by either 2017 or 2019, depending on the type of property (Civil Code Section 1101.1 et seq.).
Requires all toilets and urinals sold or installed in this state on or after January 1, 2014 to be high-efficiency (Health & Safety Code Section 17921.3).
Declares that it is the policy of the state that the management of urban water demands and efficient use of water shall be actively pursued to protect both the people of the state and their water resources (Water Code Section 10610.4).
Provides that local governments may adopt more restrictive conservation requirements (Health & Safety Code Section 17921.3).
FISCAL EFFECT: Unknown.
COMMENTS:
Background: California has been a leader in energy efficiency since the 1970s, when the state implemented the first efficiency standards. According to a December 2013 report by the Pacific Institute, standards and codes have been one of the most effective methods to improve energy efficiency statewide. Title 20 of the Code of Regulations sets energy efficiency standards for multiple categories of appliances. The CEC regularly updates and expands these standards through a stakeholder process. Established in 1974, the CEC, formally the Energy Resources Conservation and Development Commission, is the state's primary energy policy and planning agency. The Warren-Alquist Act is the legislation that created and gives statutory authority to the CEC, a division of the California Natural Resources Agency.
WaterSense standards: According to the EPA, "WaterSense, a partnership program by the U.S. Environmental Protection Agency, seeks to protect the future of our nation's water supply by offering people a simple way to use less water with water-efficient products, new homes, and services." The program began in 2006. Products and services that carry the WaterSense label have been certified to be at least 20% more efficient without sacrificing performance. Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label.
Recently adopted CEC energy efficiency and water standards: On April 1, 2015, the Governor issued Executive Order B-29-15, directing the first ever statewide mandatory water reduction. One of the four CEC responsibilities in the executive order is establishing standards that improve the efficiency of water appliances, including toilets, urinals and faucets available for sale and installation in new and existing buildings. According to the CEC, the recently approved energy efficiency and water standards "require water appliances to consume less water thereby using less energy while performing the same function." The standards for each appliance are listed below:
Toilets and urinals, except those designed for prisons or mental health facilities. Toilets shall not consume more than 1.28 gallons per flush and shall have a waste extraction score of no fewer than 350 grams. Urinals shall not consume more than 0.125 gallons per flush.
Residential lavatory faucets shall not exceed 1.2 gallons per minute flow rate.
Kitchen faucets shall not exceed 1.8 gallons per minute flow rate and may have capability to increase to 2.2 gallons per minute momentarily for filling pots and pans.
Public lavatory faucets shall not exceed 0.5 gallon per minute flow rate.
These standards were adopted on April 8, 2015, and the emergency situation also allows the CEC to prohibit the sale and installation of certain toilets, urinals and faucets that do not meet minimum water efficiency requirements as of Jan. 1, 2016, regardless of the manufactured date. While these standards are consistent with WaterSense efficiency standards, they do not specifically align with WaterSense performance requirements.
Existing requirements for plumbing fixtures: In 1992, the Legislature passed SB 1224 (Killea), Chapter 1347, Statutes of 1992, that required all water closets (toilets) sold or installed on or after January 1, 1994 to use no more than an average of 1.6 gallons per flush, and likewise for urinals, to use no more than an average of one gallon per flush. In 2007, AB 715 (Laird), Chapter 499, Statutes of 2007, prohibited the sale, after January 1, 2014, of toilets that exceed 1.28 gallons per flush and urinals that exceed 0.5 gallon per flush. The CBSC adopted this standard for new construction built after 2011. In 2009, SB 407 (Padilla), Chapter 587, Statutes of 2009, required the replacement of all non-water conserving plumbing fixtures, as defined, in commercial and residential properties built prior to 1994 with water-conserving fixtures by either 2017 or 2019, depending on the type of property.
Purpose of this bill: According to the author, "California has embraced a variety of legislation to reduce urban water consumption and expand access to water-efficient fixtures and appliances. There are still steps that the legislature and state agencies can take to improve and synthesize this process, and AB 723 facilitates that conversation."
The author notes that "a common criticism of high-efficiency toilets and other high-efficiency fixtures is that they break easily and are ineffective." Federally-set EPA WaterSense qualifications "are considered some of the most advanced and stringent, in terms of both performance and efficiency measures. While the recent updates to the CEC’s Title 20 plumbing fixture standards will achieve, and in some cases exceed, WaterSense efficiency standards for most plumbing fixtures, Title 20 standards do not necessarily have WaterSense high- performance requirements." This bill will encourage the CEC to consider WaterSense performance standards when setting plumbing fixture water efficiency standards.
Related legislation:
SB 1224 (Killea), Chapter 1347, Statutes of 1992: Requires all water closets (toilets) sold or installed on or after January 1, 1994 to use no more than an average of 1.6 gallons per flush, and requires all urinals sold or installed on or after January 1, 1994 to use no more than an average of one gallon per flush.
AB 715 (Laird), Chapter 499, Statutes of 2007: Prohibits the sale, after January 1, 2014, of toilets that exceed 1.28 gallons per flush and urinals that exceed 0.5 gallon per flush.
SB 407 (Padilla), Chapter 587, Statutes of 2009: Requires the replacement of all non-water conserving plumbing fixtures, as defined, in commercial and residential properties built prior to 1994 with water-conserving fixtures by either 2017 or 2019, depending on the type of property.
As Proposed to be Amended:
Below is a mock-up of the bill as proposed to be amended:
SECTION 1. Section 17921.2 is added to the Health and Safety Code, to read:
17921.2. When setting plumbing fixture water efficiency standards, the California Energy Commission shall consider the performance requirements established by the United States Environmental Protection Agency WaterSense standards.
REGISTERED SUPPORT / OPPOSITION:
Support
California Municipal Utilities Association
Opposition
None on file
Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085
Discussed in Hearing
1MIN
Assembly Floor
4MIN
Senate Floor
18MIN
Senate Standing Committee on Transportation and Housing
13MIN
Senate Standing Committee on Judiciary
2MIN
Assembly Standing Committee on Housing and Community Development
Bill Co-Author(s):